BAT

British American Tobacco (BAT) has raised its growth outlook for smokeless products, forecasting “mid-teens” growth for its new category portfolio, including vaping and nicotine pouch products, while global cigarette volumes are expected to decline further.

According to Bloomberg, Philip Morris International’s Zyn is facing growing competition in the U.S. nicotine pouch market as consumers shift toward moister alternatives such as British American Tobacco’s Velo Plus.

British American Tobacco’s London-listed shares rose 13.99% last week, as investors focused on the U.S. Food and Drug Administration’s recent authorization of flavored Glas e-cigarette products, the dismissal of a U.S. sanctions-related criminal case against BAT, and the company’s previously announced share buyback plan and newer nicotine business performance.

British American Tobacco (BAT) shares rose sharply on May 12 after the U.S. Food and Drug Administration signaled it would deprioritize enforcement against certain unauthorized e-cigarette and nicotine pouch products with accepted premarket applications. Investors viewed the move as favoring established players such as BAT’s Vuse and Velo brands.

The U.S. International Trade Commission (ITC) has terminated Investigation 337-TA-1410 after invalidating key vape patent claims asserted by R.J. Reynolds Vapor Company, removing the immediate risk of import bans for dozens of companies. However, a new case—337-TA-1486—has already opened a more consequential legal front, shifting the focus from patent disputes to regulatory compliance across the vape supply chain, including PACT Act reporting, tax compliance, and FDA marketing authorization.

The EPO Technical Board of Appeal 3.2.02 (T 1319/24) revoked VMR Products LLC’s EP3613453 “VAPORIZER” patent after finding that a 2012 YouTube video of the Innokin iTaste VV (D3) disclosed the claimed electrical contact arrangement. Opponents Nicoventures Trading Ltd (BAT subsidiary) and Philip Morris Products S.A. prevailed.

The payoff is here: BAT’s Vuse has seized a rare regulatory vacuum to reverse its U.S. slide, capitalizing on a crackdown that seemingly compressed the illicit market to 54%. But the victory is fragile. A record $590 million export shock in October signals the gray market is striking back—pitting a fleeting compliance dividend against a massive inventory wall.

BAT announces annual financial results with revenue of 258.67 billion pounds, down 5.2% from last year, driven by new product categories.