LONDON, May 1, 2026, 15:19 (BST)
British American Tobacco p.l.c. criticized Britain’s new Tobacco and Vapes Act, arguing it misses the mark on giving adult smokers better alternatives. That stance places the Lucky Strike, Vuse, and Velo maker right in the thick of the UK’s renewed debate over regulating tobacco and nicotine sales.
With Royal Assent on April 29, the law now prohibits tobacco sales to anyone born on or after Jan. 1, 2009—a rolling age restriction that chips away at the cigarette-buying population annually. Ministers also pick up new authority over vape packaging, branding, and in-store displays, shifting the competitive landscape for nicotine products. Gov
The timing is crucial: BAT is leaning hard into smokeless products—think vapes, heated tobacco, nicotine pouches—as it tries to make up for sliding cigarette sales. In February, BAT reported that these next-gen offerings accounted for 18.2% of group revenue in 2025. Looking ahead, global cigarette industry volume for 2026 is seen dropping around 2%. BAT
Asli Ertonguc, who runs BAT UK & Western Europe, argued the Act was supposed to drive the UK faster toward being smoke-free, but she said it “falls short in several key areas.” According to Ertonguc, tighter rules on nicotine-product ads could leave adult smokers less informed about smokeless options. She also flagged that everything depends on how well the law gets enforced—especially when it comes to stopping underage purchases and cracking down on illicit goods. Scottish Local Retailer Magazine
Retailers will need to enforce the new birth-cohort sales ban starting Jan. 1, 2027, as laid out in Local Government Association guidance. Other provisions—like limits on vending machines and fixed-penalty notices—kick in six months after Royal Assent, though the government will determine exact start dates. Gov
There’s movement in the advertising rulebook too. On Friday, the Advertising Standards Authority and Committee of Advertising Practice noted that some ad-related provisions still aren’t live. Even so, the Act’s expanded definition of tobacco products—now part of public advertising bans—could end up sweeping in heated tobacco under tougher rules. ASA
Health officials insisted the Act was about public health rather than market regulation. Health Secretary Wes Streeting described it as a “turning point for the nation’s health.” Hazel Cheeseman, chief executive at Action on Smoking and Health, labeled it a “watershed moment in public health.” Gov
It’s a tug of war. BAT is pushing for more smokers to switch over to its Vuse vapes and Velo pouches. On the other side, ministers and local councils are focused on clamping down on youth uptake and stamping out the illicit market. According to the government, the Act brings tougher enforcement tools and opens the door to possible retail licensing. Gov
Competitive heat remains. Back in April, Imperial Brands flagged slight market-share declines in its top regions—the UK among them—as it tries to juggle cigarette prices with next-gen offerings. According to Reuters, Imperial typically goes lower on price than BAT and Philip Morris International, but those competitors keep pushing premium brands and pour more into innovation. Reuters
BAT’s got its hands full with vapour in the U.S., but over at Altria, first-quarter numbers came in ahead of forecasts on Thursday. Profit and revenue both topped estimates, with Marlboro’s slide slowing and discount brands picking up some of the slack. Citi’s Simon Hales called the quarter a “big beat.” The takeaway: traditional cigarette pricing and value offerings remain key, even as nicotine pouches and vapes crowd the shelves. Reuters
BAT’s latest figures highlight why the product mix is under scrutiny. In February, Chief Executive Tadeu Marroco pointed to triple-digit revenue gains at Velo Plus and noted progress at Vuse, despite persistent pressure from illicit vapour products. The group now expects both revenue and adjusted operating profit in 2026 to land at the lower end of its medium-term guidance, reflecting the cost of investing in its transition. BAT
BAT disclosed in a Friday filing that 19,950 ordinary shares were issued through its Sharesave Scheme. In a different update, the company reported 2,169,936,467 voting shares as of April 30, with another 132,661,545 shares held in treasury—numbers used by shareholders for their own disclosure requirements. Investegate
BAT faces the possibility that strict advertising and display restrictions could dampen public awareness of legal options, even as illegal vapes and tobacco keep slipping through into stores. For policymakers, loosening those rules might open the door for nicotine brands to reignite youth demand. The consultations, not Royal Assent, are shaping up as the real battleground.
