London, May 15, 2026, 11:05 BST
- The WHO is calling on governments to impose tougher restrictions on nicotine pouches, a fast-growing category for BAT.
- BAT shares touched a 52-week high Thursday as investors cheered the softer U.S. FDA enforcement guidance.
- BAT now faces a wider regulatory threat globally, though its path into the U.S. market looks clearer after the split.
Friday brought new pressure from the World Health Organization, which called on governments to strengthen regulation of nicotine pouches—a move that lands just as British American Tobacco p.l.c. hit a 52-week high and accelerated its Velo rollout. The warning adds a fresh twist for the Lucky Strike maker.
Now, BAT is counting on its smokeless lineup—Velo pouches, Vuse vapes—to make up for shrinking cigarette demand. But just as BAT leans harder on these products, investors sent tobacco shares higher this week after the U.S. Food and Drug Administration relaxed its enforcement for certain vapes and nicotine pouches still under review.
British American Tobacco shares in London finished Thursday up 3.22% at £49.62—a fresh 52-week high, according to MarketWatch. That performance outpaced the FTSE 100. But by 10:58 a.m. Friday, Google Finance had BAT at 4,879p, down 1.67% for the session after an earlier move to 5,004p.
Nicotine pouches — tiny sachets tucked under the lip, no tobacco leaf involved — deliver nicotine in a different form. The WHO flagged concerns over these products, pointing out high nicotine levels, flavorings, and packaging that could attract younger users. The agency called for steps like nicotine limits, bans on advertising, and tighter controls on flavors.
Etienne Krug, who heads the WHO’s Department of Health Determinants, Promotion and Prevention, told Reuters, “These products are engineered for addiction.” The agency pointed out that nearly 160 countries lack regulations targeting pouches. Reuters
Industry representatives maintain these products target adult nicotine users seeking cigarette alternatives. “Pouches are primarily being used by adults who want lower-risk products,” said Laura Leigh Oyler, Nicokick’s vice president of regulatory affairs, in comments to Reuters. Reuters
BAT and rivals are getting a break in the U.S. The FDA said it won’t put enforcement at the top of its list for some electronic nicotine delivery systems and oral nicotine pouches that lack full marketing approval, as long as their premarket applications have been accepted or are pending and the products stick to agency requirements. Premarket authorisation is the FDA green light required before any new tobacco item hits shelves.
The sector got a boost. BAT’s U.S.-listed shares jumped 4.87% Monday according to Investing.com, with Philip Morris International up 4.26% and Altria up 2.57%. Jefferies analysts called the FDA guidance a plus for BAT, Philip Morris, and Japan Tobacco.
Bastien Agaud at BofA Securities bumped his price target on BAT up to £53 from £47 on Wednesday, according to a report from StreetInsider. That’s another hint the market is starting to reflect a more favorable U.S. outlook for regulated pouches and vapes.
The rivalry hasn’t let up. BAT’s Velo has clawed away some U.S. share from Philip Morris’s Zyn and Altria’s On!, with CEO Tadeu Marroco saying in February he was “extremely encouraged” by Velo’s showing stateside. Back then, Reuters reported that BAT’s newer smoking alternatives accounted for 18.2% of total sales in 2025, a bump from 17.5% the previous year. Reuters
BAT isn’t sounding any more optimistic. Back in February, the company stuck to its earlier guidance for 2026, saying it expects results to land at the lower end of its constant-currency targets: revenue up 3% to 5%, adjusted operating profit increasing 4% to 6%, and growth in adjusted diluted EPS of 5% to 8%.
There’s a catch: the FDA’s approval isn’t a blank check, and the WHO’s recent warning could push other regulators to get stricter. Any clampdown on flavors, marketing, or nicotine content would go straight for the products BAT is banking on for its next growth chapter.
