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Countries with high tobacco taxes and strict smoking laws, such as Finland, Norway, Italy, and Israel, have higher cigarette prices than countries with lower taxes and less strict laws, such as Poland and the Czech Republic

As smoking rates have fallen, the use of vapes has risen, with about 5.1 million people using a vape or e-cigarette in 2023

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And the reason for this is that BAT is historically strongest in Europe in the value for money and the low segments of combustibles, which make the size of the prize for BAT particularly high to convert combustibles consumers to smokeless offers. Looking at the entire world, in three years BAT has turned the new category business from unprofitable to break-even: And now, as Soraya Benchikh, CFO, points out, the new categories business is profitable: And by H1 2024, new category contribution had already reached 8%, as we announced in our first half results. Unsurprisingly, she can say: The transformation is working. Because: New Categories are more than offsetting the decline in combustibles and they are further driving superior profit growth