BAT’s 2020 vision touts ‘less risky’ products

British American Tobacco announced Monday a new corporate strategy for 2020 to present less risky products for customers, while setting a new environment goal, according to BAT Korea.

Under the new corporate aim dubbed, “Building a better tomorrow,” the company said it will target establishing 50 million non-combustible product consumers by 2030, to achieve carbon neutrality by 2030 and bring forward its existing 2030 environment targets to 2025.

BAT Chief Executive Jack Bowles presented the new goals, new corporate identity and logo for 2020 via webcast, the company said.

“We are now challenging ourselves with a clear purpose to build A Better Tomorrow by reducing the health impact of our business through offering a greater choice of enjoyable and less risky products for our consumers,” Bowles said.

BAT said it made progress last year with a strong operational performance and cash generation driving deleveraging of the balance sheet.

To maintain its performance, BAT said it will invest about 1 billion pounds ($1.24 billion) over the next three years to fuel New Category investment, and to accelerate the development of products including beyond nicotine products.

In 2019, the company recruited over 300 new specialist management hires in 2019, and women represent 37 percent of the management population.

Over the ongoing outbreak of COVID-19, the company said it has seen no material impact yet, and that its business remains resilient.

“New category revenue growth in the first half of this year will be difficult and, although supply chains in China are recovering, it has postponed certain launches and it is seeing some disruption in activation,” BAT said. 

“Nevertheless, in 2020 the company expects to make further progress towards the ambition of £5 billion New Category revenue in 2023 to 2024.”

By Jo He-rim (herim@heraldcorp.com)