British American Tobacco (BAT) has announced the immediate appointment of Tadeu Marroco, their finance director, as the new Chief Executive Officer following Jack Bowles' sudden departure.
Marroco, who has been with BAT for three decades, will now lead the manufacturer of Lucky Strike and Dunhill cigarettes. The change in leadership comes shortly after BAT agreed to pay over $600 million to settle charges of violating U.S. sanctions by selling cigarette materials to North Korea.
The global tobacco industry is currently grappling with decreasing demand for traditional tobacco products, particularly in Western markets, due to increased taxes, smoking bans, and health concerns driving consumers towards alternatives. This puts the spotlight on Marroco's governance, with BAT's focus on new categories of tobacco products attracting increasing regulatory scrutiny, as highlighted by Australia's recent decision to ban imports of non-prescription vapes.
Bowles initiated his tenure as CEO by eliminating 2,300 global jobs, aiming to boost revenues in the contentious e-cigarette sector. Prior to this, in 2017, BAT paid nearly $50 billion for control of Reynolds American to tap into the lucrative U.S. market and its rapidly expanding e-cigarette industry.
Thumbnail source: Skynews
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