British American Tobacco

British American Tobacco is one of the leading, multi-category consumer goods companies. It employs over 55,000 people, with market leadership in over 55 countries and factories in 42. Its strategic portfolio is made up of its global cigarette brands and an increasing range of potentially reduced-risk products, comprising vapour and tobacco heating products, as well as oral tobacco and nicotine products such as moist snuff and snus.

Company Overview

British American Tobacco is a publicly traded company based in London. British American Tobacco operates in over 200 markets, is the third largest producer in the global tobacco market, and controls 11.4 percent of the international cigarette market.1,10 Top selling brands include Pall Mall, Rothmans, Kent, Dunhill, and Lucky Strike, and these five brands account for half of all British American Tobacco cigarette sales. In 2017, British American Tobacco generated reported revenue of GBP 20 billion and profit from operations of GBP 6.5 billion. In July 2017, British American Tobacco p.l.c. acquired the remaining 57.8 percent of Reynolds American Inc. that British American Tobacco did not already own.

Key Executives

Name	Position	Bio
Jerome Abelman	Director, Legal And External Affairs And General Counsel	Jerry was appointed Director, Legal and External Affairs and General Counsel in May 2015, having joined the Management Board as Group Corporate and Regulatory Affairs Director in January 2015. He has been with the Group for over 15 years and has held a number of roles in Legal. Jerry was Regional General Counsel, Asia-Pacific from 2010 to 2014, before becoming Assistant General Counsel – Corporate and Commercial. Jerry was a member of the Board of Reynolds American Inc. (RAI) from February 2016 until the acquisition of RAI in July 2017.
Jack Bowles	Chief Operating Officer	Jack became British American Tobacco’s Chief Operating Officer for the International Business in October 2017. Joining the Group in 2004, Jack was Chairman of British American Tobacco France in 2005 before taking up the role of Managing Director of British American Tobacco Malaysia in 2007. He joined the Management Board as Regional Director for Western Europe in October 2009 before becoming Regional Director for the Americas in October 2011. He was appointed Regional Director, Asia-Pacific in January 2013, a position he continued to hold until 1 January 2018 when a new regional structure came into effect.
Alan Davy	Director, Operations	Alan was appointed to the Management Board as Group Operations Director in March 2013. He joined the Group in 1988 and has held various roles in manufacturing, supply chain and general management. Alan previously held the position of Group Head of Supply Chain.
Giovanni Giordano	Director, Group Human Resources	Giovanni joined the Management Board of British American Tobacco in June 2011. He is an international human resources executive with wide experience from senior roles at Procter & Gamble and Ferrero, where he was Chief Corporate Officer.
Andrew Gray	Chief Marketing Officer	Andrew was appointed Chief Marketing Officer (CMO) in October 2017 having previously been British American Tobacco’s Marketing Director. In August 2017, British American Tobacco announced that it was fully integrating its Next Generation Products (NGP) business into the Group’s core operations. The expanded CMO role combines Marketing and R&D (including innovation and product development) across all categories – combustible cigarettes and NGP. Andrew joined the Management Board as Regional Director for Africa and the Middle East in January 2008 before being appointed Regional Director for Eastern Europe, Middle East and Africa (EEMEA) in January 2011 and then Marketing Director in September 2014. Joining Souza Cruz in Brazil as an intern in 1986, he went on to hold a number of senior management positions in South America and the Caribbean (including President of Souza Cruz) and also in Malaysia.
Tadeu Marroco	Regional Director, Europe And North Africa	Tadeu was appointed Regional Director, Europe and North Africa in January 2018. He joined the Management Board as Director, Business Development, in September 2014 and was appointed Regional Director, Western Europe in December 2016, a position he held until 1 January 2018 when a new regional structure came into effect and Tadeu took up his current role. He joined British American Tobacco in Brazil over 20 years ago and his other previous roles include Regional Finance Controller, EEMEA, and Group Finance Controller.
Dr. David O’reilly	Group Scientific And R&D Director	David was appointed Group Scientific Director in January 2012. He has been with British American Tobacco for over 20 years and has held various positions in Group Research and Development. He has led the Group’s R&D efforts to develop reduced toxicant products and has also been Head of International Public Health and Scientific Affairs, responsible for engagement with the scientific, medical and public health communities.
Ricardo Oberlander	President And Ceo, Reynolds American Inc.	Ricardo became President and CEO of Reynolds American Inc. (RAI) in January 2018. He was appointed to the Management Board as Regional Director for the Americas in January 2013. Ricardo joined Souza Cruz in May 1989 and has held various roles including Marketing Director of British American Tobacco’s Malaysian business, Regional Marketing Manager for the Americas, General Manager in France and Global Consumer Director. Ricardo was a member of the Board of RAI from December 2014 until the acquisition of RAI in July 2017. He is a member of the Chief Marketing Officer (CMO) Council North America Advisory Board.
Naresh Sethi	Director, Business Development	Naresh was appointed Director, Business Development in December 2016 with responsibility for Group Strategy and Planning, IT, Global Business Services and Enterprise Operating Model Transformation. He has been with British American Tobacco for more than 20 years and held Marketing roles in India, Indonesia, West Africa and Australasia before moving to Japan where he was Marketing Director and then General Manager. Naresh was also Group Head of Strategy and Planning before joining the Management Board in January 2012 as Director, Group Business Development and was appointed Regional Director, Western Europe in January 2013.
Johan Vandermeulen	Regional Director, Asia-Pacific And Middle East	Johan was appointed Regional Director, Asia-Pacific and Middle East in January 2018. He joined the Management Board as Regional Director for Eastern Europe, Middle East and Africa in September 2014, a position he held until 1 January 2018 when a new regional structure came into effect and Johan took up his current role. He has been with British American Tobacco for more than 25 years and his previous roles include General Manager in Russia, General Manager in Turkey and Global Brand Director for the Kent brand.
Kingsley Wheaton	Regional Director, Americas And Sub-Saharan Africa	Kingsley was appointed Regional Director, Americas and Sub-Saharan Africa in January 2018. He joined the Group in 1996 and has held a number of roles in Marketing. He was Marketing Director in Nigeria and Russia, before becoming General Manager in Russia. He was Global Brand Director responsible for the Kent and Vogue brands, before joining the Management Board in January 2012 as Deputy Corporate and Regulatory Affairs Director. In June 2012 he was appointed Director, Corporate and Regulatory Affairs. In January 2015, Kingsley became Managing Director, Next Generation Products.

Board Members

Name	Position	Bio
Richard Burrows	Chairman	Richard Burrows joined the Board of British American Tobacco as a Non-Executive Director in September 2009 and became Chairman in November 2009. He is also Chairman of the Nominations Committee.
Nicandro Durante	Chief Executive	Nicandro Durante became British American Tobacco’s Chief Executive in March 2011. Nicandro has extensive leadership skills developed in various senior international roles in the Group. He originally joined the British American Tobacco as Chief Operating Officer in January 2008 after almost two years in the role of Regional Director for Africa & Middle East. Nicandro was appointed Chief Executive Designate in September 2010. Nicandro, who is Brazilian / Italian, holds degrees in finance, economics and business administration. He joined British American Tobacco’s Brazilian subsidiary Souza Cruz in 1981, after three years working in finance in two Brazilian companies and built a successful finance career. In 1995 he was seconded to the UK head office. In 1997 Nicandro was appointed Finance Director in Hong Kong before returning to Brazil in 2000 as Finance Director for Souza Cruz. In April 2002 he was appointed President of Souza Cruz. Nicandro was appointed as a Non-Executive Director of Reckitt Benckiser Group plc in December 2013.
Ben Stevens	Finance Director	Ben joined the Board of British American Tobacco p.l.c. in March 2008 and was appointed to the role of Finance Director in April 2008. He was previously Director of British American Tobacco’s Europe region, a position he had held since 2004. Ben has broad international experience spanning both senior finance and general management roles. He joined British American Tobacco in 1990 as Regional Finance Controller with responsibilities for Europe, East Africa and South Asia and in 1994 moved to Switzerland where he worked in a variety of marketing roles. In 1995 Ben became Chairman and Managing Director of the Pakistan Tobacco Company before being appointed Chairman and Managing Director of British American Tobacco Russia in 1997. In 1998 he returned to the UK as Head of Corporate Affairs for the newly listed British American Tobacco p.l.c. and in the following year was appointed Head of Merger Integration following the merger with Rothmans. He was appointed to the Management Board as Development Director in April 2001 where his responsibilities included corporate strategy, mergers and acquisitions and IT. Ben was elected as a member of the Board of Directors of ISS A/S on 5 April 2016. Ben, a graduate of Manchester University and the Manchester Business School, is married with two children.
Kieran Poynter	Senior Independent Director	Kieran Poynter became a Non-Executive Director of British American Tobacco p.l.c. in July 2010. He became Senior Independent Director in October 2016. He is Chairman of the Audit Committee and a member of the Nominations Committee.
Sue Farr	Non-Executive Director	Sue Farr was appointed to the Board of British American Tobacco p.l.c. as a Non-Executive Director in February 2015. She is a member of the Nominations and Remuneration Committees.
Dr. Marion Helmes	Non-Executive Director	Dr. Marion Helmes joined the Board of British American Tobacco p.l.c. as a Non-Executive Director on 1 August 2016. She is a member of the Audit and Nominations Committees.
Luc Jobin	Non-Executive Director	Luc Jobin was appointed to the Board of British American Tobacco p.l.c. as a Non-Executive Director on 25 July 2017 following completion of the acquisition of Reynolds American Inc. He is a member of the Nominations and Remuneration Committees
Holly Keller Koeppel	Non-Executive Director	Holly Keller Koeppel was appointed to the Board of British American Tobacco p.l.c. as a Non-Executive Director on 25 July 2017 following completion of the acquisition of Reynolds American Inc. She is a member of the Audit and Nominations Committees.
Savio Kwan	Non-Executive Director	Savio Kwan was appointed to the Board of British American Tobacco p.l.c. as a Non-Executive Director in January 2014. He is a member of the Nominations and Remuneration Committees.
Lionel L. Nowell, III	Non-Executive Director	Lionel Nowell, III was appointed to the Board of British American Tobacco p.l.c. as a Non-Executive Director on 25 July 2017 following completion of the acquisition of Reynolds American Inc. He is a member of the Audit and Nominations Committees.
Dimitri Panayotopoulos	Non-Executive Director	Dimitri Panayotopoulos was appointed to the Board of British American Tobacco p.l.c. as a Non-Executive Director in February 2015. He is Chairman of the Remuneration Committee and a member of the Nominations Committee.

Investments in Unconsolidated Subsidiaries ("significant" > 20 percent management control):

An unconsolidated subsidiary is a company that is owned by a parent company, but whose individual financial statements are not included in the consolidated or combined financial statements of the parent company to which it belongs. Instead, this type of company appears in the combined financial statement as an investment.

Subsidiary Name	Country	Interest amount (percentage)
Tisak d.d.	Croatia	41.86
Országos Dohányboltellátó Korlátolt Felelosségu Társaság	Hungary	49
ITC Limited	India	29.69
VST Industries Limited	India	32.16
Surya Nepal Pvt. Limited	Nepal	61
Veletabak d.o.o.	Serbia	25
Uganda Tobacco Processors Limited	Uganda	50
Kamaran Industry and Investment Company	Yemen	31
United Industries Company Limited	Yemen	32

List of Significant Subsidiaries

Subsidiary Name	State or Country of Organization	Region
British American Tobacco (Algérie) S.P.A.	Algeria	Eastern Europe, Middle East and Africa
British American Tobacco Argentina S.A.I.C.y F.	Argentina	Americas
British American Tobacco Australia Limited	Australia	Asia-Pacific
British American Tobacco Bangladesh Company Limited	Bangladesh	Asia-Pacific
British American Tobacco Belgium S.A.	Belgium	Western Europe
Souza Cruz LTDA	Brazil	Americas
British American Tobacco (Cambodia) Limited	Cambodia	Americas
Imperial Tobacco Canada Limited	Canada	Americas
British American Tobacco Chile Operaciones S.A.	Chile	Americas
British American Tobacco Colombia S.A.S.	Colombia	Americas
British American Tobacco (Czech Republic), s.r.o.	Czech Republic	Western Europe
British American Tobacco Denmark A/S (House of Prince A/S)	Denmark	Western Europe
British American Tobacco Egypt LLC	Egypt	Eastern Europe, Middle East and Africa
British American Tobacco France SAS	France	Western Europe
BATIG Gesellschaft fur Beteiligungen m.b.H.	Germany	Western Europe
British American Tobacco (Germany) GmbH	Germany	Western Europe
British American Tobacco (Industrie) GmbH	Germany	Western Europe
PT Bentoel Internasional Investama, Tbk	Indonesia	Asia-Pacific
B.A.T. Pars Company (Private Joint Stock)	Iran, Islamic Republic of	Eastern Europe, Middle East and Africa
British American Tobacco Italia S.p.A.	Italy	Western Europe
British American Tobacco Japan, Ltd.	Japan	Asia-Pacific
British American Tobacco Kazakhstan Trading LLP	Kazakhstan	Eastern Europe, Middle East and Africa
British American Tobacco Korea Limited	Korea, Republic of	Asia-Pacific
British American Tobacco Korea Manufacturing Limited	Korea, Republic of	Asia-Pacific
British American Tobacco (Malaysia) Berhad	Malaysia	Asia-Pacific
British American Tobacco Mexico, S.A. de C.V. (iv)	Mexico	Americas
British American Tobacco Exports B.V.	Netherlands	Western Europe
British American Tobacco Holdings (The Netherlands) B.V.	Netherlands	Western Europe
British American Tobacco Nederland B.V.	Netherlands	Western Europe
British American Tobacco Western Europe Region B.V.	Netherlands	Western Europe
British American Tobacco (New Zealand) Limited	New Zealand	Asia-Pacific
British American Tobacco (Nigeria) Limited	Nigeria	Eastern Europe, Middle East and Africa
British American Tobacco Marketing Nigeria Limited	Nigeria	Eastern Europe, Middle East and Africa
Pakistan Tobacco Company Limited	Pakistan	Asia-Pacific
British American Tobacco Polska Trading sp. zo.o.	Poland	Western Europe
British-American Tobacco Polska S.A.	Poland	Western Europe
British American Tobacco (Romania) Trading SRL	Romania	Western Europe
JSC ‘British American Tobacco-SPb’	Russia	Eastern Europe, Middle East and Africa
JSC ‘International Tobacco Marketing Services’	Russia	Eastern Europe, Middle East and Africa
British-American Tobacco (Singapore) Private Limited	Singapore	Asia-Pacific
British American Tobacco Holdings South Africa (Pty) Limited	South Africa	Eastern Europe, Middle East and Africa
British American Tobacco España, S.A.	Spain	Western Europe
British American Tobacco Switzerland S.A.	Switzerland	Western Europe
British American Tobacco Tütün Mamulleri Sanayi ve Ticaret Anonim Sirketi	Turkey	Eastern Europe, Middle East and Africa
LLC “British American Tobacco Sales and Marketing Ukraine”	Ukraine	Western Europe
PJSC “A/T B.A.T. – Prilucky Tobacco Company”	Ukraine	Western Europe
B.A.T (U.K. and Export) Limited	United Kingdom	Western Europe
B.A.T Services Limited	United Kingdom	Western Europe
British American Tobacco (GLP) Limited	United Kingdom	Western Europe
British American Tobacco (Investments) Limited	United Kingdom	Western Europe
British American Tobacco Global Travel Retail Limited	United Kingdom	Western Europe
British American Tobacco Western Europe Commercial Trading Limited	United Kingdom	Western Europe
B.A.T. International Finance p.l.c.	United Kingdom	Western Europe
BATMark Limited	United Kingdom	Western Europe
British American Tobacco (Brands) Limited	United Kingdom	Western Europe
British-American Tobacco (Holdings) Limited	United Kingdom	Western Europe
British American Tobacco UK Limited	United Kingdom	Western Europe
R.J. Reynolds Tobacco Company	United States	United States
RAI Services Company	United States	United States
RAI Trade Marketing Services Company	United States	United States
Reynolds American Inc.	United States	United States
B.A.T Capital Corporation	United States	United States
British American Tobacco (Brands) Inc.	United States	United States
American Snuff Company, LLC	United States	United States
Santa Fe Natural Tobacco Company, Inc	United States	United States
Compania Anonima Cigarrera Bigott Sucesores	Venezuela	Americas

2018 Forecast

According to the 2018 annual report, by the end of the year 2018, the company's objective is to generate over GBP 1 billion revenue from Next Generation Products and by 2022 to have increased that figure fivefold to GBP 5 billion. The company expects that by 2030, a very significant percentage of Group revenue will be generated by a suite of potentially reduced-risk products.

Profitability

Annual Trends

Fiscal year in billions GBP	2017	2016	2015	2014	2013
Net Revenue	20.3	14.8	13.1	13.9	15.8
Reported Profit	6.5	4.7	4.6	4.9	6.1

Profits per Region (in millions GBP)

Asia-Pacific

Geographic region covers: Australia, Bangladesh, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines, South Korea, Taiwan, Vietnam

in millions GBP	2017	2016	2015	2014	2013
Net Revenues	4,509	4,266	3,773	4,253	4,203
Adjusted profit	1,638	1,432	1,361	1,548	1,693

Americas

Geographic region covers: Argentina, Brazil, Canada, Chile, Colombia, Mexico

in millions GBP	2017	2016	2015	2014	2013
Net Revenues	3,125	2,868	2,720	1,286	3,317
Adjusted profit	3,125	2,868	2,720	1,286	1,364

Western Europe

Geographic region covers: Belgium
, Czech Republic, Denmark, France, Germany
, Italy, Netherlands, Poland
, Romania
, Spain, 
Sweden, Switzerland, United Kingdom

in millions GBP	2017	2016	2015	2014	2013
Net Revenues	4,532	3,867	3,203	3,546	3,635
Adjusted profit	1,127	1,044	990	1,189	1,273

EEMEA

Geographic region covers: Algeria, Morocco, Egypt, Nigeria, GCC, Russia
, Iran, South Africa, Iraq, Turkey, Kazakhstan, Ukraine

in millions GBP	2017	2016	2015	2014	2013
Net Revenues	3,915	3,750	3,408	4,337	4,105
Adjusted profit	1,246	1,182	1,127	1,380	1,490

Acquisitions

On October 21, 2016, British American Tobacco CEO Nicandro Durante publicly announced an offer for the 57.8 percent of Reynolds American, Inc. that British American Tobacco did not already own. According to media reports, Reynolds American, Inc. rejected British American Tobacco’s initial buyout offer of $47 billion as being too low.1 On January 17, 2017, Reynolds American, Inc. accepted an increased offer of $49 billion and the tobacco companies hope to close the deal in the Third Quarter of 2017.

Recent acquisitions	Acquired Organization Name	Acquiring Organization Name	Announced Date	Value
Ente Tabacchi Italiani S.p.A acquired by British American Tobacco	Ente Tabacchi Italiani S.p.A	British American Tobacco	1/1/2003	-
British American Tobacco Denmark A/S acquired by British American Tobacco	British American Tobacco Denmark A/S	British American Tobacco	7/2/2008	-
Tekel AS acquired by British American Tobacco	Tekel AS	British American Tobacco	6/24/2008	-
Bentoel Group acquired by British American Tobacco	Bentoel Group	British American Tobacco	6/17/2009	USD 494M
Productora Tabacalera de Colombia acquired by British American Tobacco	Productora Tabacalera de Colombia	British American Tobacco	5/26/2011	USD 452M
Reynolds American acquired by British American Tobacco	Reynolds American	British American Tobacco	1/17/2017	USD 54.5B
CN Creative acquired by British American Tobacco	CN Creative	British American Tobacco	12/1/2012	GBP 50M
TDR acquired by British American Tobacco	TDR	British American Tobacco	6/1/2015	EUR 550M
Ten Motives acquired by British American Tobacco	Ten Motives	British American Tobacco	4/29/2016	-

Investments

At 31 December 2015, the following substantial interests (3 percent or more) in the Company’s ordinary share capital (voting securities) had been notified to the Company in accordance with Section 5.1.2 of the Disclosure Rules and Transparency Rules. As at 24 February 2016, the Company had not received notification either of any change in the interests below or that any other person holds 3 percent or more of its ordinary shares.

In 2015, the organization has completed the acquisition of TDR in Croatia, the leading independent cigarette manufacturer in Central Europe. British American Tobacco also acquired the rest of the shares in its Brazilian subsidiary, Souza Cruz, not currently owned by the Group and de-listed the company the same year.

In 2015, British American Tobacco signed a vapour products technology-sharing agreement with R.J. Reynolds Tobacco Company. The agreement provides a framework for collaboration and mutual cross-licensing of the parties’ vapour product technologies up to 31 December 2022. British American Tobacco completed the acquisition of the CHIC Group, the market-leading Vapour Product (e-cigarette) business in Poland.

In 2015, British American Tobacco continued to grow market share of Vype in the UK and expanded the geographical footprint of its Next Generation Product business beyond the UK, with launches of Vype in France, Germany, Italy, Poland and Colombia. Additionally, British American Tobacco’s first Tobacco Heating Product, the ‘glo iFuse’, was launched in Romania, with excellent initial levels of consumer acceptance.

In August 2018, Guardian reported more than GBP 1.7 billion has been directly invested in tobacco company stocks by healthcare providers, fire authorities and schools via UK council pension funds. Council retirement schemes in the UK are major investors in firms including British American Tobacco, Imperial Brands and Philip Morris, according to data compiled from more than 100 freedom of information requests.

Market Share

The Group’s cigarette market share in its Key Markets continued to grow strongly (up 40 bps). This was powered by another excellent performance by the comapny's GDBs, which grew 110 bps (ex US) and now account for more than 50 percent of Group cigarette and THP volume outside the US. Over the year, market share in the US also grew strongly and was up 20 bps, with the RAI Strategic Brands growing 40 bps. Total Group cigarette and THP volume grew 3.2 percent to 686 billion, or on an organic basis fell 2.6 percent, outperforming the industry, which was estimated to have declined by around 3.5 percent. Flagship THP, glo, first launched in Japan in December 2016, reached 3.6 percent market share by the end of 2017 – having been rolled out nationally from October 2017. Since then, 50 percent of the overall category growth in Japan has been from glo – demonstrating its strong consumer appeal in a very short period. Good initial progress is also being made in other launch markets of South Korea, Russia, Canada, Romania and Switzerland.

Emerging Markets

British American Tobacco has a significant presence in emerging markets across South America, Africa, the Middle East and Asia. According to the company's website emerging markets will account for 60 percent of volume in the enlarged group. Over the last 5 years, revenue per pack in emerging markets has grown at more than twice the rate compared to developed markets. With generally low cigarette pack prices and expectations of continued growth in consumer disposable income over the long term, the future profit growth opportunity remains strong. Nik Oliver, consumer goods analyst at UBS said in a March 2017 interview with Financial Times, British American Tobacco derives more than 50 per cent of its total revenues from emerging markets with the strongest emerging market portfolio of the company's peers.

Factory Openings and Closures

In June 2018, British American Tobacco announced it will invest €800 million over the next five years in its factory in Ploiești, Romania. The investment, which will generate 200 new jobs in Romania, will support the expansion of innovative tobacco heating product – glo – in countries across Europe during the second half of 2018. The unit in Ploiesti will be the third in the world (after South Korea and Russia) to produce Neosticks for glo and the first in Europe.

Dividends

As announced in April 2017, the Group has moved to quarterly dividends with effect from 1 January 2018. In order to effect the transition to quarterly dividends, we committed to ensuring shareholders would receive an equivalent cash amount in 2018 under the quarterly dividend approach as they would have done under the previous methodology.

As part of this process, a second interim dividend of 43.6p (equivalent to 25 percent of the cash dividend paid in 2017) was declared in December 2017 and paid in February 2018. The Board has declared an interim dividend of 195.2p per ordinary share, payable in four equal dividend payments of 48.8p per ordinary share, to shareholders registered on the UK main register or the South Africa branch register and to ADS holders, each on the applicable record dates. The dividends receivable by ADS holders in US dollars will be calculated based on the exchange rate on the applicable payment dates." - Page 37, British American Tobacco Annual Report

Products

The 1.9 billion stick cigarette market is entirely dependent on imports and is dominated by three key multinationals: Philip Morris International (PMI), Imperial Tobacco and British American Tobacco. These companies together account for 87 percent of the market.

British American Tobacco Namibia has a market share of about 85 percent of the Namibian tobacco market, selling just over 330 million cigarettes every year in the country.

Key Portfolio

British American Tobacco offers three core product ranges:

• Fine Cut (roll-your-own and make-your-own tobacco)
• Swedish-style snus
• Cigars

Innovative Product Portfolio

The Next Generation Products include:

• Vapour Products (e-cigarettes), a battery-powered electronic devices which heat a solution to create a vapour which can be inhaled;
• Tobacco Heating Products, devices designed to work with specifically engineered cartridges, containing tobacco, to deliver a real tobacco taste and aroma;
• Licensed Medicinal Products, licensed nicotine products to help smokers reduce, replace or stop.

Volumes

Volume of Cigarettes by Region

Region	2017 (Billions)	2016 (Billions)	2015 (Billions)	2014 (Billions)	2013 (Billions)
Asia-Pacific	193	196	198	-	197
Americas	36	-	-	-	134
Western Europe	122	120	112	-	119
Eastern Europe, Middle East and Africa (EEMEA)	228	236	229	-	226
Total	686	665	663	667	676

Product Unit Volume

Product Category	2017	2016	2015	2014	2013
Tobacco Units	686	665	663	667	676
Percentage	3.2	0.2	(0.5)	(1.3)	-

Marketing & Campaigns

Controversies

Two new studies from the Tobacco Control Research Group, published in the BMJ journal, Tobacco Control, expose evidence that big tobacco companies are still facilitating tobacco smuggling, while attempting to control a global system designed to prevent it and funding studies that routinely overestimate levels of tobacco smuggling.

In August 2018, Guardian reported that British American Tobacco has promoted sales of its cigarettes in some of the most fragile, war-torn and unstable countries of Africa and the Middle East. Documents acquired by Guardian describe how cartons of cigarettes were distributed to traders hidden in black bags in Somalia after Al-Shabaab banned sales and threatened punishments under Sharia law between late 2008 and early 2009. The documents also show that British American Tobacco made plans to launch in South Sudan just two days before it gained independence from the north after years of destruction from a civil war that left 4 million people displaced.

Internal British American Tobacco documents revealed that illicit trade was both profitable and integral to British American Tobacco operations in the People’s Republic of China over the span of two decades. British American Tobacco involvement in cigarette smuggling in Africa and Lebanon has also been documented.

A 2015 BBC investigation has uncovered evidence of bribery when British American Tobacco illegally paid politicians and civil servants in countries in East Africa. Independent further reported British American Tobacco recruited and paid for a union to disrupt production at one of its chief rivals. Emails reveal British American Tobacco made illegal payments to two members and one former member of the World Health Organization's Framework Convention on Tobacco Control. British American Tobacco lobbyist Julie Adell-Owino arranged bribes totalling USD 26,000 for three public officials in Rwanda, Burundi and the Comoros Islands. All three officials were connected to a United Nations effort to reduce the number of tobacco related deaths, the Framework Convention on Tobacco Control. British American Tobacco's respose to the allegations stated: "The truth is that we do not and will not tolerate corruption, no matter where it takes place." But the evidence, as presented, looks damning. In 2016, lawyers investigating bribery and corruption allegations against one of the world’s leading tobacco firms have been urged to expand their investigation after fresh international accusations emerged. According to court documents seen by The Independent on Sunday, two former police officers who went to work for private corporate investigation companies paid cash to South African law enforcement officials to disrupt British American Tobacco’s competitors’ business operations.

Marketing to Kids

For a full list of Marketing to Kids instances look here.

Advertisements and Bad Acts Review

In August 2018, Campaign for Tobacco-Free Kids reported British American Tobacco is behind several high profile influencer marketing campaigns for its Lucky Strike and Dunhill cigarette brands. An influencer paid to promote British American Tobacco brands explained, “I put the pack of cigarettes here on the table and I take a photo. Because it’s obviously illegal. So they have this group of people in every city… They try to create this thing where they give packets of cigarettes to people with a certain number of followers, so that they post a picture with the packet. The final image they want to give is that smoking Lucky Strike is cool."

Political Spending

For a list of political contributions in the United States look here.

Partners and Allies

According to Transparency Register, in 2017 British American Tobacco disclosed it was a member of the following associations:

• The American Chamber of Commerce to the European Union
• American European Community Association
• British Chamber of Commerce in Belgium
• BusinessEurope
• European Policy Centre
• Confederation of British Industry
• European Risk Forum
• Ad Hoc Council (The European Government Business Relations Council)
• Confederation of European Community Cigarette Manufacturers (CECCM)
• European Smoking Tobacco Association (ESTA)
• European Smokeless Tobacco Council (ESTOC)
• International Chamber of Commerce (ICC)
• International Trademark Association
• ICC Business Action to Stop Counterfeiting and Piracy (BASCAP)
• Kangaroo Group
• The Mentor Group
• Tobacco Industry Platform (TIP)
• Transatlantic Business Dialogue
• Tobaksproducenterne (Tobacco Manufacturers Denmark)
• Tobacco Manufacturers' Association (TMA)

Full list of memberships and associations is available on Tobacco Tactics wikipedia by clicking here.

In addition to the aforementioned memberships, BAT has provided financial support to:

• Alliance of Australian Retailers
• Anti-Counterfeiting Group
• Benkert
• Business Action for Africa
• Associate Parliamentary Corporate Responsibility Group
• Business in the Community (UK)
• Commonwealth Business Council
• Conference Board
• European Council on Research, Development and Innovation
• European Science and Environment Forum
• Forest
• Forum for EU/US Legal-Economic Affairs
• Global Reporting Initiative
• Institute of Business Ethics
• International Tax and Investment Center
• International Tobacco Growers Association
• The Common Sense Alliance
• Rural Shops Alliance
• VNO-NCW

Lobbying

According to Politico, among the lobbyists on the EU Transparency Register, representing British American Tobacco are Bernstein Public Policy and Red Flag.

Front Groups

The Eliminating Child Labor in Tobacco-Growing is a front group for tobacco industry interests under the guise of a corporate social responsibility initiative. ECLT was co-founded by British American Tobacco and represents an alliance of tobacco companies and growers - led exclusively by members of the tobacco industry. In 2016 every member of the board came from tobacco.

Marketing, Communications and PR Companies

Name	Contract Status	Notes	Other Clients
FTI (2017)	Active	FTI Consulting is an independent global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. Individually, each practice is a leader in its specific field, staffed with experts recognized for the depth of their knowledge and a track record of making an impact.	Yahoo! Inc Jackson Walker LLP Liquidation Trustee - Bernard L. Madoff Investment Securities Sportsman's Warehouse TXCO Resources
Sard Verbinnen (2017)	Active	Sard Verbinnen & Co., LLC provides strategic communications advice and services that help clients in managing their position and specific events affecting their reputation, business, and market value. The company also provides services in the areas of corporate positioning that include development of strategies and initiatives based on research, judgment, and thinking for individuals and institutions; and offers communication advisory services to boards and senior management of public and private organizations, as well as small and mid-cap companies.	SoftBank Alibaba Group Didi Chuxing Nikon HNA Group Grab KKR
EUK Consulting (2017)	Active	EUK Westminster and Brussels based consultancy, bespoke public affairs, lobbying and issues-management services, political consultants, politics, british politics, London parliament.	Stubhub Emergent BioSolutions Inc McCain Foods (GB) Ltd Colgate Palmolive SARL SC Johnson EURAFNE Nicoventures Limited (also owned by BAT) United Technologies Corporation Lonza Limited
Red Flag (2017)	Active	Red Flag is an international consultancy specialising in strategic communications, government relations, crisis management and regulatory engagement. The company was listed as lobbyists for BAT in 2016 EU talks regarding implementation of FCTC.	ESTA Anitox EDiMA NuFarm Barclay Chemicals Manufacturing North American Meat Institute Irish Distillers Limited (Pernod Ricard) Anitox Monsanto National Coffee Association of USA
Ogilvy Hong Kong (2016)	NA	According to company's website, Ogilvy has been working with British American Tobacco for 15 years.	Google Nestlé VW Melco Crown Entertainment Calvin Klein CompareAsia Galaxy Macau American Express (22 years) IBM (20 years) UPS (10 years) Coca-Cola (nine years) Yum (five years) MetLife (five years) Nike (three years) Huawei (three years).