British American Tobacco devalues its acquired Reynolds American brands by more than a third

The British second largest multinational tobacco company British American Tobacco PLC devalued the value of cigarette brands it sells in America, such as Camel and Pall Malls, by £25 billion to cope with lower market demand, with many Americans quitting smoking or switching to cheaper cigarettes than they were buying. The supply and use of clandestine disposable vaporizers is also mentioned as a source of competition leading to the same decision.

The value of cigarettes manufactured by BAT amounted to £67 billion and were devalued by more than a third to £42 billion. The brands subject to devaluation relate to those transferred when Reynolds American, American second largest producer after Philip Morris International, was bought by BAT in 2017 for £40 billion.

BAT’s subsidiary tobacco industry Reynolds American is based in South Carolina and provides brands such as Newport, Camel and Pall Malls, all of which were subject to a devaluation of more than a third by 37.31% and £25 billion to £42 billion from £67 billion.

“I am encouraged to see that our commercial plans are giving an early signal of portfolio recovery,” said the Brazilian chief executive of the second-largest multinational tobacco company Tadeu Marroco, having recently been appointed to his position on the 15th of May, 2023 taking over from Jack Bowles. Tadeu Marroco also said the move is in line with the company’s vision to rebuild a smoke-free world in which half of its profits by 2035 will come from alternative products to cigarettes.