BAT Malaysia Pins Hopes on Dunhill to Reverse Sales Decline in SA Countries

BAT by 2FIRSTS.ai
Feb.07.2024
BAT Malaysia Pins Hopes on Dunhill to Reverse Sales Decline in SA Countries
British American Tobacco's Malaysian subsidiary hopes that the Vuse e-cigarette will boost sales in Southeast Asia.

British American Tobacco Malaysia is hopeful that its brand "Dunhill" cigarettes will help reverse the decline in sales in Southeast Asian countries.

 

Nedal Louay Salem, the General Manager of British American Tobacco (Malaysia) Company, has stated that a rule reform introduced last year has enabled the company to start selling the Vuse brand of e-cigarettes in Malaysia. This has doubled the potential market size for the tobacco company locally, leading to significant confidence in the Vuse brand.

 

During an interview with Dow Jones Newswires, Salim expressed his ambition, stating, "Our objective is to establish Vuse as the e-cigarette equivalent of Dunhill in the cigarette industry. Our aim is to become Malaysia's leading vape brand.

 

He stated that these efforts have laid the foundation for an increase in sales. "In 2024, our sales will definitely be better than in the past.

 

As the manufacturer of one of Malaysia's most popular cigarette brands, Dunhill, British American Tobacco is facing formidable challenges in the country. The increasingly intense competition from unregulated vape products and illicit tobacco products has significantly eroded the market share of traditional cigarettes.

 

For most of the past decade, the company has experienced a continuous decline in profits, with its stock price falling by approximately 76% over the past five years. This year, the company's stock price has further dropped by 2.1%, leading BAT Malaysia's market value to fall below $550 million.

 

Analysts predict that during BAT Malaysia's financial report release on Tuesday evening, its sales for 2023 are expected to reach MYR 2.36 billion (approximately USD 496.8 million), which is lower than MYR 2.6 billion in 2022 and MYR 2.64 billion in 2021.

 

Salim highlighted that in the short term, the company's bottom line may continue to face pressure due to its investment in the "right mix of channels" to gain market share in the smoking accessories industry, following the launch of Vuse in Malaysia last August.

 

It is crucial for BAT to increase the sales of Vuse to the level of its competitor Dunhill cigarettes. According to their 2022 annual report, British American Tobacco's Malaysian branch, Dunhill, holds a 32% market share in the Malaysian tobacco market, dominating 62% of the country's high-end market.

 

Simultaneously, the company plans to continue improving its traditional products. Salim mentioned that consumption of the affordable Luckies cigarettes, introduced by BAT last year, has experienced rapid growth, while inflation risks are high at this time, particularly with impending subsidy cuts and tax increases.

 

Salim stated that BAT has a series of new product plans to be launched in the next nine months. He further added that the expansion into the e-cigarette sector supports the company's intent to not delist or go private, which was previously speculated by market analysts in the case of prolonged decline in the company's stock price.

 

"We are facing tremendous opportunities," he stated. "This is where the company's focus should lie, rather than privatization."

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

ATF Cancels Webloc Contract, Raising Questions Over Commercial Location Data in Enforcement
ATF Cancels Webloc Contract, Raising Questions Over Commercial Location Data in Enforcement
The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has stopped using Webloc, a commercial phone-tracking tool, after lawmakers, a prosecutor and a judge raised legal and privacy concerns over warrantless use of ad-tech location data, a development that may affect data-use boundaries in U.S. enforcement against illicit tobacco, nicotine products and cross-border distribution networks.
Jun.29
South Korea Rejects 16 Trillion Won Tax-Evasion Claim Over Chinese Synthetic Nicotine
South Korea Rejects 16 Trillion Won Tax-Evasion Claim Over Chinese Synthetic Nicotine
The South Korean government rejected allegations that Chinese synthetic-nicotine e-liquids were linked to about 16 trillion won in tobacco tax evasion, saying China does not ban synthetic nicotine exports and the estimate is difficult to verify, while acknowledging that pre-law synthetic-nicotine inventory is effectively difficult to tax.
Market
Jun.25
BAT's VELO Partners With McLaren F1 Team for Global Fan Campaign to Expand Nicotine Pouch Brand Reach
BAT's VELO Partners With McLaren F1 Team for Global Fan Campaign to Expand Nicotine Pouch Brand Reach
BAT-owned nicotine pouch brand VELO and the McLaren Mastercard Formula 1 Team have launched a global fan engagement campaign offering motorsport enthusiasts opportunities to win exclusive team-related experiences. The initiative aims to connect racing culture, fan interaction and VELO’s brand experience across global markets. The partnership reflects BAT’s broader strategy of expanding modern nicotine product brands beyond traditional tobacco categories through lifestyle and cultural marketing.
Jul.23
Philip Morris Romania Executive on Smoke-Free Strategy: How IQOS Spaces Are Moving Beyond Retail to Consumer Connection
Philip Morris Romania Executive on Smoke-Free Strategy: How IQOS Spaces Are Moving Beyond Retail to Consumer Connection
In an interview with Romanian marketing publication IQads, Marek Gębski, Director of Smoke-Free Products at Philip Morris Romania, said IQOS experience spaces are evolving from traditional retail locations into platforms for consumer engagement and brand connection. Through locations such as IQOS Boutique Victoriei, PMI aims to use design, culture and consumer experiences to strengthen communication with adult consumers about smoke-free products. The interview highlights how tobacco companies are expanding smoke-free strategies beyond products toward experiential marketing and consumer relationships.
Aug.11
BREAKING | China’s Tobacco Regulator Summons iMiracle Over Suspected Compliance Breaches
BREAKING | China’s Tobacco Regulator Summons iMiracle Over Suspected Compliance Breaches
Based on public records reviewed by 2Firsts, this is the first time China’s State Tobacco Monopoly Administration has publicly announced regulatory talks with an e-cigarette company.
Jul.29
South Korea Vape Strategies Diverge as BAT Reconsiders Exit and PMI Takes VEEV to About 14,000 Stores
South Korea Vape Strategies Diverge as BAT Reconsiders Exit and PMI Takes VEEV to About 14,000 Stores
BAT Rothmans says it previously considered exiting South Korea's vaping market because of competitive pressure from unregulated products, but is now reassessing conditions following changes to the country's nicotine regulatory framework. Vuse and other BAT vaping products remain available through existing distribution channels. The statement followed a South Korean media report that interpreted BAT's broader withdrawal from selected Vapour markets as a full exit from South Korea. Meanwhile, Philip Morris International launched VEEV inPRIME in the country in June and began expanding distribution to around 14,000 convenience stores and other retail channels in July. The contrasting moves highlight differing investment strategies as South Korea's regulated vaping market evolves.
Aug.14