British American Tobacco plc (BAT) is one of the world's largest tobacco and nicotine companies, operating across more than 180 markets globally. The company's business model is centered on the manufacturing, distribution, and sale of combustible tobacco products and a growing portfolio of non-combustible products. BAT generates the majority of its revenue (over 80%) from traditional combustible cigarettes, featuring global brands such as Dunhill, Kent, Lucky Strike, Pall Mall, and Rothmans, as well as Newport and Camel in the United States.
In response to changing consumer preferences and regulatory environments, BAT has shifted focus toward its "New Categories" segment, which accounts for approximately 18% of total revenue. This includes vapour products (Vuse), tobacco heating products (glo), and modern oral nicotine pouches (Velo). The company aims to transition consumers to these non-combustible alternatives, targeting a shift in its revenue mix toward smokeless products.
Geographically, BAT is highly diversified, with operations and revenue streams across the United States, Europe, Asia-Pacific, the Middle East, and Africa. The United States remains a critical market, particularly following the acquisition of Reynolds American, which bolstered BAT's presence in North America. The company's competitive position is supported by its global distribution network, established brand portfolio, and investments in research and development for alternative nicotine products.
