Introduction - THR: A Global Transformation

There are examples all over the world of how Tobacco Harm Reduction and adoption of Smokeless Products have and are expected to further impact smoking rates and disease incidence. The case in Sweden is a fantastic example. Additionally, extrapolating from that Swedish data through population modelling, researchers have suggested that had other EU Member States had the same rate of tobacco attributed mortality as Sweden, potentially 2.9 million premature deaths could have been averted over a 20-year period^[1].

As I travel to our various markets around the globe, I think of how those policies could impact lives in those countries, like Mexico, Brazil—all of those adult smokers who otherwise would continue to smoke could be given access to legal Smokeless Products as options to move down the risk continuum in these and other countries. 

Smokeless Products have accelerated THR progress in regions with diverse regulatory, cultural, and market landscapes. When access to Smokeless Products is expanded, so too will be the opportunity to deliver even larger THR outcomes.

I think we can always do more. I think it’s also a matter of how we leverage new innovations, such as predictive modelling and other new technologies that can optimise our research—making it more effective and more efficient. We also should be inquisitive and open-minded in considering what we can be doing differently. And we don’t have to do everything ourselves: how can we collaborate with third parties to tap into innovation and the latest evolutions?  And that's where we should focus on breakthrough innovation, too: this is the way to take our products to the next level and advance THR.

I know we can. I think sometimes we undervalue what we have done so far. I have been with BAT for 32 years, and we’ve been innovating throughout that period, but advances in technology in the past decade have fuelled our ability to evolve and transform.

We must remain focused on our ambition to achieve 50 million adult consumers^[2] of our Smokeless Products by 2030, and we want at least 50% of our revenue to come from Smokeless Products by 2035. The North Star is focusing on how to achieve that strategic ambition, to determine what are the enablers, and we're making very good progress there. 

A key enabler is our continued advocacy for Tobacco Harm Reduction to be embedded in regulatory frameworks around the world. THR should not be seen as only for developed countries or the developed world. The introduction of progressive, sustainable regulation everywhere the BAT Group sells cigarettes would enable adult smokers who otherwise would continue to smoke to access a wide range of smokeless alternatives to cigarettes.

I believe we were correct in saying that the right approach to Tobacco Harm Reduction includes different options and different choices, as there is no one-size-fits-all product that will appeal to adult smokers who otherwise would continue to smoke. In terms of strategic thinking, that of course puts constraints and stress on resources. But we understand that THR is the right thing to do. 

We want to be the undisputed leader, ultimately, in terms of this transformation and migration to Smokeless Products. And we know we’ve made the right decisions, as Smokeless Products now account for 17.5% of Group revenue, and that number will continue to grow.

It’s a very compelling story, and an enormous opportunity. That is why I am so passionate about it. 

I would tell them to look at the numbers—our investments in Smokeless Products, the accelerated declines in smoking rates in countries across the globe, the number of Smokeless Product consumers who are former smokers.  We are actively encouraging adult smokers who would otherwise continue to smoke to switch completely to smokeless alternatives. 

While some scepticism is to be expected, I think one of the issues with certain government bodies and public health organisations is that they don't understand the products at all. They haven't actually talked to the consumers that use them. That perspective is of crucial importance. 

As an engineer with an affinity for science, I believe in fact-based evidence. Because of that, I have a strong, passionate belief in Tobacco Harm Reduction. Governments, policymakers, and the public health community have a shared responsibility to educate adult consumers and broader society. Regulators’ acceptance of Tobacco Harm Reduction is essential to enable adult consumers who otherwise would continue to smoke to switch completely to Smokeless Products. Displacing combustibles will require policymakers to take the step of translating the science of toxicants, emissions, and product risk into something accessible and understandable, and to align policies and regulations with the science and data supporting THR. 

BAT has the drive to keep on innovating and moving the needle. The biggest breakthrough has happened with the introduction of Smokeless Products; from here, we all need to take it to the next level to transform to A Smokeless World.