Lucky Strike manufacturer relies on e-cigarettes
More health awareness, less money: British American Tobacco fights globally with falling sales. Nevertheless, the Group makes 5.5 billion pounds of profit – and is expanding the business with e-cigarettes.
LondonLucky Strike manufacturer British American Tobacco is setting the stage for the massive expansion of e-cigarettes in face-to-face weakening heels in the classic cigarette business. In this and next year, the company is planning to double the number of countries it offers electronic cigarettes in each case, announced British American Tobacco Manager Jerry Abelman on Thursday. Currently his group sells e-cigarettes in ten countries, especially in the UK and Poland.
Increased health awareness and poor economic conditions in many countries of the world make tobacco sales more and more difficult. For example, cigarette sales in British American Tobacco in 2016 rose by only 0.2 percent to 665 billion. Overall, the industry is likely to have even declined three percent. But the bottom line was British American Tobacco. Price increases and the weak British pound pushed sales up by almost 13 percent to 14.75 billion pounds in 2016. Operating profit climbed by almost ten percent to 5.5 billion pounds.
British American Tobacco is currently completing the full takeover of the US rival Reynolds, which produces among other things the brand Camel. The price: nearly 50 billion dollars. As a result of the merger, British American Tobacco is the world’s largest listed tobacco company. Brands such as Pall Mall, Dunhill, Lord and Prince also belong to the group. Altogether, six tobacco companies share the world market to a large extent.