London, April 30, 2026, 17:10 BST
- On April 29, Britain’s Tobacco and Vapes Bill cleared its final hurdle and became law, laying out a sweeping, generational ban: no tobacco sales to anyone born from Jan. 1, 2009, onward.
- British American Tobacco p.l.c. is working to ramp up growth in its smokeless lineup, including Vuse vapes and Velo nicotine pouches, just as the law takes effect.
- BAT ended the session in London 1.5% higher, finishing at 4,323 pence on Thursday.
British American Tobacco p.l.c. is staring at a tougher road ahead in its domestic tobacco business, now that Britain has granted Royal Assent to the Tobacco and Vapes Bill—officially making it law. Under the new measure, anyone born on or after Jan. 1, 2009, will never be legally able to buy tobacco, according to the government.
Timing is key here. BAT, the company behind Lucky Strike and Dunhill, still relies on cigarette sales to bankroll its push into non-combustibles. The UK’s new law doesn’t flip the switch, but it does set a firmer course—expect fewer legal cigarette buyers ahead, stricter rules for vapes, and sharper focus on how nicotine products get marketed.
Health Secretary Wes Streeting described the law as “a turning point for the nation’s health”. The government added that the act hands ministers authority to clamp down on vape packaging, branding and displays targeting children, and allows for broader smoke-free rules in certain public spaces. Gov
BAT’s stance is clear: they want adult smokers to have access to lower-risk products, but they’re pushing for tougher measures to clamp down on youth vaping. The company’s UK regulatory campaign page lays it out—support for stricter rules on illegal vapes, calls for retailer licensing, and a ban on vape flavours inspired by sweets, desserts, or popular soft drinks. Still, they argue for keeping certain flavours available, aiming to give adult smokers alternatives.
This pivot sits at the heart of BAT’s investment story. Back in February, Chief Executive Tadeu Marroco pointed to a return to double-digit growth for BAT’s New Categories revenue—covering vapes, oral nicotine pouches, and heated tobacco—in the second half of 2025, with Velo making a difference. He flagged that growth for 2026 is likely to land at the low end of BAT’s medium-term expectations as the company spends to accelerate the shift.
BAT counted 34.1 million smokeless brand users by the end of 2025, a gain of 4.7 million. Smokeless products made up 18.2% of group revenue. Cigarettes still dominate the bottom line, but the company pitch to investors has shifted—Vuse, Velo, and heated products now carry the growth narrative, not cigarettes.
Competition is shifting in that direction, too. Philip Morris International trimmed its annual profit outlook last week, citing tougher regulation and rising rivalry as factors; its Zyn nicotine pouches go head-to-head with BAT’s Velo. Jefferies analyst Andrei Andon-Ionita told Reuters Velo could pick up speed with Zyn losing traction.
BAT closed out Thursday at 4,323 pence, gaining 64 pence, or 1.5%. Volume hit 3.41 million shares, according to LSEG data cited by Investors Chronicle. The stock remains up 33.1% for the year, but still hasn’t revisited recent peak levels.
A minor governance update surfaced as well. According to a regulatory filing, Javed Iqbal—serving as BAT’s interim CFO and director of digital and information—shifted 31,502 ordinary shares between his personal accounts on April 29, with no payment involved. The move wasn’t executed through a trading venue.
Iqbal will stay on as interim CFO until Sept. 1, when Dragos Constantinescu is set to take over. Earlier in the month, BAT announced Constantinescu’s appointment—he’s the CEO of Asahi Europe & International and previously worked at BAT—as the next chief financial officer and executive director. Marroco described the timing as hitting an “important stage in BAT’s transformation.” BAT
BAT faces more than just declining cigarette sales. Lax enforcement could leave the door open for illicit tobacco and off-the-books vapes, eating into the market for regulated brands. On the flip side, if vape and pouch regulations get much tougher, BAT’s shift away from cigarettes could hit a wall. The government claims the new act beefs up enforcement, with potential for a retail licensing system aimed at cracking down on illegal tobacco and vape sales.
