London, April 6, 2026, 17:11 BST
British American Tobacco p.l.c.’s U.S.-listed shares edged up about 0.2% in New York on Monday as investors headed toward the group’s April 15 annual meeting with a bigger question still hanging over the stock: when U.S. regulators will clear Velo nicotine pouches. The company is also carrying out a £1.3 billion share buyback announced for 2026. 1
The timing matters because BAT is leaning more heavily on smoke-free products such as vapes, heated tobacco and oral nicotine as cigarette volumes ease. In February, the company said those newer products made up 18.2% of 2025 sales and reaffirmed 2026 guidance at the lower end of its medium-term ranges. 2
The U.S. is the world’s largest market for smoking alternatives, worth about $22 billion. Nicotine pouches are small packets placed under the lip to deliver nicotine, and Jefferies analyst Andrei Andon-Ionita said BAT and Philip Morris shares now trade on pouches, showing how much the category has come to matter to tobacco investors. 3
In BAT’s latest buyback notice, the company said it bought 159,155 ordinary shares on April 1 at an average 4,335.377 pence each and planned to cancel them. That would leave 2,172,683,741 ordinary shares in issue, excluding treasury shares. 4
A separate holding notice published on April 2 showed FMR LLC had crossed the 5% threshold on March 30, ending with 109.38 million voting rights, or 5.0338% of BAT. 5
BAT said last week its Velo applications deserve FDA authorization because they are backed by “robust scientific support” and that it continues to “engage constructively” with the agency. Only Altria’s on! PLUS has been cleared under the FDA pilot so far; BAT’s Velo and newer Zyn variants from Philip Morris remain pending. 3
Philip Morris, which owns Zyn, was up about 0.5% in New York trade on Monday, while Altria was little changed. BAT said in February Velo had become the No. 2 pouch brand by U.S. market share behind Zyn, and Chief Executive Tadeu Marroco said he was “extremely encouraged” by its U.S. performance. 2
But the path is not straightforward. The FDA says nicotine products are highly addictive and not risk-free, and Reuters reported reviewers had been weighing possible risks to youth and non-users even though pouch use among middle- and high-school students remains low. Any further delay could, by inference, slow BAT’s push to move smokers to newer products in its most important market. 3
