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BAT lowers outlook for new products on US vaping slowdown

As health concerns abound over e-cigarettes.
A price war has been breaking out in the e-cigarette market as makers of vaping devices try to gain clients after the recent health scare in the US. Image: Gabby Jones/Bloomberg

British American Tobacco, the maker of Lucky Strike cigarettes, lowered its growth outlook for full-year sales growth in smoking alternatives as health concerns and a US regulatory crackdown on vaping weigh on e-cigarette revenue.

Sales growth from the new product categories, which also included heated tobacco, will be in the lower end of BAT’s forecast range of 30% to 50%, the company said. In August BAT was guiding to the midpoint.

Key insights

A price war has been breaking out in the e-cigarette market as makers of vaping devices try to gain clients after the recent health scare in the US. BAT and rival Imperial Brands have run promotions for vaping starter kits for as little as $1 in recent months.

The new forecast means that while sales growth of smoking alternatives is accelerating in the second half, it’s not recovering as fast as BAT had hoped. Still, investors may be calmed by the fact that the company maintained its earnings forecasts.

The 3.5% drop expected in cigarette volumes underlines the importance of the new category. While considered the main driver of future growth, next-generation products like e-cigarettes are coming under scrutiny from the US Food and Drug Administration.

Market reaction
The shares have gained 19% this year.

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BAT-brands names such as Dunhill, Lucky Strike, Pall Mall, Rothmans, Vogue, Viceroy, Peter Stuyvesant…..takes my memories back to the day as a naughty kid, when experimenting and taking the odd puff from a smoker was fun.

Luckily smoking never caught on. Never got the better of me.

What did get me, is the harmful sugary drink & junk food industry, causing overweight issues. Perhaps smoking would’ve helped to reduce my food cravings?? 😉

don’t you know the rule?:

‘if it tastes good, it is bad for you’

therefor, stick to beetroot and greens — you will die sooner, but much more healthy

Dit laat my dink aan ‘n slogan wat ek erens gesien het op ‘n Motorcycle blog:

“Life is not a journey to the grave with the intention of arriving safely in a well preserved body, but rather to violently skid into your grave broadside, thoroughly worn out, totally battered up, and loudly proclaiming, “Heck, what a ride!”


End of comments.





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