BAT Sees Vuse Recovery in US Amid Crackdown on Illicit Vapes
British American Tobacco (BAT), the company behind Lucky Strike and Dunhill, reports encouraging signs of recovery for its Vuse vape brand in the United States. The group attributes this improvement to recent US government efforts to crack down on the illicit vape market, which has been impacting legal sales.
While BAT still anticipates a high single-digit decline in Vuse revenues for the full year, this marks an improvement from the 13% drop seen in the first half, driven by black market pressures in the US and Canada. Chief Executive Tadeu Marroco expressed optimism, stating, “Over time, we believe Vuse is well positioned to benefit from stronger federal and state level enforcement.” He highlighted particular satisfaction with the company’s momentum in the US, the world’s largest nicotine market.
Globally, BAT’s smokeless division, which includes oral nicotine patches, is performing well, with revenue growth accelerating to double digits in the second half of the year. The group remains on track for overall revenue growth of around 2% and a return to profit growth in the US. Additionally, BAT announced plans for a £1.3 billion share buyback in 2026, signaling confidence in its financial outlook.
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