BAT Estimates U.S. Unauthorized Vape Market at $9.4 Billion, Plans New Vuse and Velo Launches After FDA Enforcement Shift
BAT CEO estimates the U.S. unauthorized vape market at $9.4 billion and plans flavored Vuse and updated Velo launches following an FDA enforcement shift.Summary
British American Tobacco (BAT) CEO Tadeu Marroco stated that the U.S. unauthorized vape market is valued at approximately £7 billion, or US$9.43 billion. This assessment follows a significant shift in FDA enforcement policy, where the agency announced it would use "enforcement discretion" against certain unlicensed products. In response, BAT plans to launch flavored Vuse products in the third quarter and an updated Velo pouch in August or September. The company raised its revenue-growth forecast for new category products to the mid-teens, up from its previous low double-digit forecast, while maintaining its group-wide full-year guidance. Despite this positive outlook for new products, BAT faces challenges in its traditional tobacco business, having lost market share across its top seven markets. The company also noted that global tobacco industry volumes are expected to decline 2.5% this year, a steeper drop than previously anticipated. Analysts suggested that the decision to keep group guidance unchanged may reflect caution regarding uncertainty linked to the conflict in the Middle East.
(Source：2Firsts)
