London, April 6, 2026, 17:11 BST
British American Tobacco p.l.c.’s U.S. shares ticked up 0.2% in New York on Monday. Investors are still waiting to see when U.S. regulators will give the green light to Velo nicotine pouches—a key question ahead of the group’s April 15 annual meeting. BAT is pressing on with its £1.3 billion share buyback, announced for 2026.
BAT’s push into smoke-free—vapes, heated tobacco, oral nicotine—comes as cigarette volumes slip. Back in February, the company said these alternatives accounted for 18.2% of 2025 sales, sticking with 2026 guidance, though only at the bottom of its targeted range.
The U.S. market for smoking alternatives has climbed to roughly $22 billion, making it the biggest globally. Nicotine pouches—those small packets tucked under the lip for a nicotine kick—have gained outsized attention. Jefferies analyst Andrei Andon-Ionita notes that shares of BAT and Philip Morris are now being valued according to their pouch business, a shift highlighting just how pivotal this segment has become for tobacco investors.
BAT disclosed in its most recent buyback update that it repurchased 159,155 ordinary shares on April 1, paying an average of 4,335.377 pence apiece. The company intends to cancel those shares, which will bring the total number of ordinary shares in issue down to 2,172,683,741, not counting treasury stock.
On March 30, FMR LLC pushed past the 5% mark in BAT, according to a holding notice dated April 2. The firm reported 109.38 million voting rights, translating to a 5.0338% stake.
Last week, BAT argued its Velo products should win FDA approval, citing what it called “robust scientific support,” and said it’s still working closely with the agency. So far, only Altria’s on! PLUS has made it through the FDA pilot program; applications for BAT’s Velo and new Zyn offerings from Philip Morris are still in limbo. Reuters
Philip Morris, owner of Zyn, gained around 0.5% during Monday’s New York session. Altria shares barely moved. Back in February, BAT claimed its Velo product had secured the No. 2 spot among U.S. pouch brands, trailing only Zyn. CEO Tadeu Marroco described Velo’s U.S. run as “extremely encouraged.” Reuters
The route forward isn’t simple. The FDA maintains that nicotine products carry high addiction risks and are not without harm, and Reuters noted that regulators have been considering potential dangers for young people and non-users—even as pouch uptake stays low among middle- and high-schoolers. Any added holdup could, by extension, drag out BAT’s campaign to shift smokers over to new offerings in its top market.
