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Korea Herald
4 days ago
- Business
- Korea Herald
[KH Interview] Korea central to BAT's smokeless pivot: COO
London-based tobacco giant targets 50% of sales from non-combustibles by 2035 British American Tobacco, one of the world's largest tobacco firms, is reinforcing its commitment to South Korea as a strategic hub for its smokeless transformation, positioning the country as both a key innovation testbed and a competitive frontline for next-generation nicotine alternatives, according to the group's top executive. BAT Group Chief Operating Officer Johan Vandermeulen said Korea's value to the London-based group extends far beyond immediate sales, speaking in an exclusive interview with The Korea Herald at the headquarters of the group's Korean unit, BAT Rothmans, in Seoul on June 20. 'Korea offers a unique blend of sophisticated consumers, cutting-edge technology and a dynamic regulatory environment that makes it an ideal testing ground for our next-generation products,' said Vandermeulen, a 30-year BAT veteran who assumed the role of global COO in 2023. He visited Korea as part of an Asia tour that also included Japan and China. Korea was the second market globally to launch BAT's tobacco heating product Glo in 2017, and is currently the second-largest heated products market globally — two signs that reflect BAT's confidence in Korea as a proving ground for innovation, he said. Since then, the Korean heated tobacco market has become one of the most competitive in the world, with nearly every major global player vying for market share. BAT is aiming to stay ahead by focusing on product innovation, localization strategies and technology enhancements tailored to Korean consumers, who Vandermeulen described as 'distinct and trend-sensitive.' 'BAT Rothmans here possesses exceptional capabilities, and our manufacturing facility in Sacheon (in South Gyeongsang Province) is regarded as one of the best within the entire BAT Group,' he added. 'Innovation, technology and talent — these are the core strengths of the Korean market, and why BAT is so focused on it.' The company's Glo Hyper series was the first device in its lineup to feature a display screen and boost button, both aimed at improving user experience. BAT developed the heating sticks specifically for the Korean consumer palate. BAT has also rolled out its vapor brand, Vuse, in Korea, emphasizing quality, product stewardship and responsible marketing. The devices come in various formats — slim and box types — and exclude flavors and features that could appeal to minors. 'We ensure that our vapor products are first stewarded at an ingredient level. Ingredients to be included in e-liquids must be, at minimum, food grade, with nicotine being pharmaceutical grade. We believe similar standards should be formally introduced and required for vaping products across the industry,' he said. Alongside Glo and Vuse, BAT is expanding globally into nicotine pouches — a category that does not involve inhalation and is now its fastest-growing segment, already launched in over 40 markets. While not yet available in Korea, the company sees opportunity as consumer preferences continue to evolve. At the heart of BAT's strategy is its mission of "A Better Tomorrow," which aims to build "A Smokeless World" by offering science-backed, non-combustible alternatives. The company aims to increase the revenue share from these products to 50 percent of its total by 2035, up from the current 17.5 percent, and to grow its adult user base to 50 million by 2030, from over 29 million today. This transformation aligns with BAT's Tobacco Harm Reduction philosophy. 'We aim to offer alternatives with reduced risk profile to cigarettes to adult smokers who would otherwise continue to smoke, thereby making a positive contribution to reduce the public health burden associated with cigarette smoking,' Vandermeulen said. On regulation, BAT supports clear, fair and consistent policies across the industry. 'We believe regulation should be clear, consistent and fairly applied. Provided these conditions are met, we view regulatory changes positively.' Still, Vandermeulen expressed concern over the rise of illicit vaping products, warning they undermine public trust and legitimate market efforts. 'This is ultimately about corporate responsibility,' he said. 'Proper regulation and enforcement are essential to protect consumers and ensure fair competition.' With nearly one billion smokers still using traditional cigarettes worldwide and only about 115 million having switched to smokeless alternatives, Vandermeulen said the stakes are high. 'We believe vaping has a vital role in encouraging adult smokers, who would otherwise continue smoking, to switch completely to smokeless alternatives. But the category can only thrive if market order is preserved.'
Boston Globe
20-06-2025
- Politics
- Boston Globe
Supreme Court allows vape companies to pick courts to hear challenges
Advertisement Liberal Justices Ketanji Brown Jackson and Sonia Sotomayor dissented from the opinion, which sent the case back to a lower court for more proceedings. Jackson wrote that the majority's opinion allows Reynolds to make an 'end run around … venue restrictions.' Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up The FDA had told the justices that R.J. Reynolds and other electronic cigarette manufacturers were gaming court system rules by filing the vast majority of product-denial appeals in the US Court of Appeals for the 5th Circuit, based in New Orleans, even though they were based in other appeals court circuits. The tactic was hindering the FDA's ability to regulate vapes that are used by hundreds of thousands of teenagers, the agency said. In the case before the justices, the 5th Circuit — widely seen as more sympathetic to the companies' arguments than other circuits — overturned the FDA's denial of an R.J. Reynolds application. Advertisement The electronic cigarette ruling was one of six decisions issued Friday, with at least a week left in the Supreme Court's term. Ten decisions remain, including cases involving the legality of age-verification laws to access online pornography and nationwide court orders blocking President Trump's ban on birthright citizenship. In addition to the vape decision, the Supreme Court on Friday revived lawsuits brought by US victims of terrorist attacks in Israel against the Palestine Liberation Organization. The opinion, written by Chief Justice John G. Roberts Jr., upheld a 2019 federal law passed in response to attacks that allows Americans to sue. The court said that law does not violate the rights of the PLO. In a 7-2 decision, the justices also cleared the way for fuel producers to sue the Environmental Protection Agency over California's stricter standards for vehicle emissions. California's efforts are already in flux after being targeted by Trump and Republicans in Congress. Under the 2009 Family Smoking Prevention and Tobacco Control Act, manufacturers must get FDA approval to sell some existing products, as well as new products, that are marketed in more than one state. The Vuse line of menthol vapes are the ones in question in the R.J. Reynolds case. Ryan J. Watson, who is representing R.J. Reynolds, told the justices at oral arguments that the company was permitted to file a challenge in the 5th Circuit because the act allows 'any person adversely affected' by a denial to file a challenge in the District of Columbia Circuit or the 'circuit in which such person resides or has their principal place of business.' Advertisement R.J. Reynolds partnered with a Texas vape store and the Mississippi Petroleum Marketers and Convenience Stores Association to bring the challenge to the FDA ruling. The 5th Circuit covers Texas and Mississippi, while R.J. Reynolds is in the 4th Circuit. Vivek Suri, an assistant to the solicitor general, arguing on behalf of the government, said Congress never meant for retailers or their representatives, rather than manufacturers, to be parties to such litigation when it passed the act. He pointed out that retailers aren't notified when the FDA rejects manufacturers' applications to market vaping products and said the tactic defeats the venue restrictions laid out in the law. But the Supreme Court said Friday it has long established a broad interpretation of what it means to be adversely affected by a law, including in the category anyone even 'arguably within the zone of interests' that the statute regulates. Vape industry groups applauded the ruling. Watson, the attorney for R.J. Reynolds, said the court 'recognized that federal agency action can have downstream effects that can be devastating for parties that are not the most direct target of the agency's action.' The ruling ensures that 'the courthouse doors are not closed for those adversely affected parties,' he said. Yolonda C. Richardson, president and CEO of the Campaign for Tobacco-Free Kids, said the decision will bolster efforts to market addictive products to young people. The ruling 'gives e-cigarette manufacturers an open invitation to forum-shop for friendly courts in their relentless quest to lure and addict kids with flavored, nicotine-loaded products,' she said. In her dissent to Friday's ruling, Jackson noted that two other appeals courts had rejected similar challenges filed by other manufacturers of flavored electronic cigarettes before R.J. Reynolds filed its appeal to the 5th Circuit. Advertisement 'It thus became (perhaps) imperative from RJR Vapor's perspective that its own lawsuit challenging the FDA's denial of its flavored e-cigarette marketing applications be filed somewhere else,' Jackson wrote.
Toronto Sun
18-06-2025
- Business
- Toronto Sun
Tobacco firm Reynolds rolls back DEI plans after activist attack
Published Jun 18, 2025 • 2 minute read A Reynolds American Inc. Camel brand cigarette. Photo by Daniel Acker / Bloomberg Reynolds American Inc., the 150-year-old maker of Camel cigarettes and Vuse vapes, said it is rolling back U.S. diversity, equity and inclusion programs, two weeks after anti-DEI crusader Robby Starbuck singled out the company for action. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Reynolds, which was purchased by London-listed British American Tobacco Plc in 2017, will cease participation in the Human Rights Campaign Foundation's Corporate Equality Index which measures LGBTQ workplace practices, end sponsorship of Pride events, and end affirmative action programs that were mandated by President Joe Biden's administration, the company said in a letter to employees Wednesday that was shared with Bloomberg. Starbuck announced the rollback on social media and the company confirmed it worked with the activist on timing and communication after he launched his attack, although it said many changes were already under consideration. 'We respect differing opinions, but we are taking these steps because they are necessary to ensure the company's and our employees' success,' David Waterfield, president and CEO of Reynolds, said in the letter. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. Reynolds American owns famous tobacco brands like Camel, Newport, Lucky Strike, Pall Mall, American Spirit, Grizzly & I exposed their woke policies but as a result of talks we held, they're now ENDING those policies. Specifics ⬇️ • No more Pride event donations… — Robby Starbuck (@robbystarbuck) June 18, 2025 Reynolds is among dozens of mostly American companies that have announced plans to scale back or end DEI programs over the last year, first under pressure from activists and other conservatives and more recently President Donald Trump. The president issued a series of executive orders in January that banned DEI in the federal government and seeks to identify 'illegal DEI' in companies and organizations. The company said in the letter that it dropped affirmative action programs, other than those for veterans or disabled employees, that were in effect under the Biden administration and removed by Trump. It also said that it will end mandatory trainings that focused largely on what it called 'DEI issues' and is reviewing healthcare policies related to gender affirming care for minor dependents. It does not currently offer coverage for gender affirming surgery for minors. This advertisement has not loaded yet, but your article continues below. The company will also end its allyship guide and instead maintain a 'focus on building a supportive workplace for all employees.' A Reynolds subsidiary gave $8.5 million to the super political action committee Make America Great Again Inc., according to federal records first reported by the Washington Post. The cigarette maker confirmed to Bloomberg that it also gave $1 million for the inauguration ball, which was attended by a company representative. Within days of starting his second term, Trump withdrew a proposed ban on menthol cigarettes and flavored cigars, boosting shares of tobacco companies. Reynolds' main manufacturing base is in Tobaccoville, North Carolina, where it has invested $200 million to increase manufacturing during 2024 and 2025. — With assistance from Sabah Meddings. NHL Columnists Editorial Cartoons Canada Basketball
North Wales Chronicle
03-06-2025
- Business
- North Wales Chronicle
Demand for oral nicotine pouches growing fast, British American Tobacco says
The Velo brand is growing the fastest within its so-called 'new category', which includes non-tobacco products like vapes, the business said. The pouches come in a variety of flavours and strengths and are designed to be placed between the gum and lip so nicotine can be absorbed through the mouth. Tadeu Marroco, BAT's chief executive, said he was 'excited' by the launch of loyalty scheme Velo Plus in the US. 'Globally, Velo continues to gain volume share in this fast-growing category, driven by the US and our continued leadership position in AME (Americas & Europe),' he said, highlighting a strong performance in the UK, Scandinavia and Poland. BAT said it was expecting full-year revenues to grow between 1% and 2% following a stronger-than-expected half-year performance. It had previously forecast growth of 1%. The company continues to make the bulk of its sales from traditional cigarettes, which include the Pall Mall and Camel brands. It said the segment remained 'under pressure' with the volume of sales about 9% lower across the industry over the year to date, but that it was gaining market share for brands including Lucky Strike. Mr Marroco said BAT's vape sales were being affected by 'illicit' products in the US and Canada, which were driving down sales of legal devices. BAT has previously warned that customers turning to illegal disposable vapes was hurting sales of its own vape product, Vuse, and urged a government crackdown on the market.
Leader Live
03-06-2025
- Business
- Leader Live
Demand for oral nicotine pouches growing fast, British American Tobacco says
The Velo brand is growing the fastest within its so-called 'new category', which includes non-tobacco products like vapes, the business said. The pouches come in a variety of flavours and strengths and are designed to be placed between the gum and lip so nicotine can be absorbed through the mouth. Tadeu Marroco, BAT's chief executive, said he was 'excited' by the launch of loyalty scheme Velo Plus in the US. 'Globally, Velo continues to gain volume share in this fast-growing category, driven by the US and our continued leadership position in AME (Americas & Europe),' he said, highlighting a strong performance in the UK, Scandinavia and Poland. BAT said it was expecting full-year revenues to grow between 1% and 2% following a stronger-than-expected half-year performance. It had previously forecast growth of 1%. The company continues to make the bulk of its sales from traditional cigarettes, which include the Pall Mall and Camel brands. It said the segment remained 'under pressure' with the volume of sales about 9% lower across the industry over the year to date, but that it was gaining market share for brands including Lucky Strike. Mr Marroco said BAT's vape sales were being affected by 'illicit' products in the US and Canada, which were driving down sales of legal devices. BAT has previously warned that customers turning to illegal disposable vapes was hurting sales of its own vape product, Vuse, and urged a government crackdown on the market.
