Received this morning from my contact at BAT:
Article on FT Online (requires registration): FT.com / Companies / Personal Goods - BAT to market nicotine without the smokes
Coverage on MSN: British American to Market Tobacco-Free Nicotine Products; No Impact Likely on Stock: MorningStar Business News - MSN Money
If you haven't already seen it, I thought you might be interested in this article that was run today in the UK's Financial Times;
UK: BAT aims to smoke out nicotine lovers who find cigarettes a drag British American tobacco is setting up a business to commercialise non-tobacco nicotine products that could help wean smokers off its cigarettes. BATs Nicoventures subsidiary aims to build a substantial consumer business whose earnings could compensate for declining tobacco sales. In a statement to be released on Tuesday BAT says Nicoventures will offer smokers "a range of alternative products, currently unavailable on the market, that offer them the experience they expect to get from a cigarette but without the real and serious health risks of smoking". Adrian Marshall, Nicoventures chief executive, said the first products, which are being developed externally, would not be like existing cigarette substitutes, such as electronic cigarettes, nicotine patches and gums. Yet, Mr Marshall would not say how the products worked. In 2009, Reynolds American, a US company in which BAT has a 42 per cent stake, bought an established Swedish company called Niconovum, which makes products for nicotine replacement therapy including gum, mouth spray and pouches.
However, Mr Marshall said: "Nothing on the market meets the sensorial, emotional and physiological needs of smokers ... In the UK there are about 10m smokers and only 150,000 of them buy nicotine products, so something is not working." David OReilly, head of research and development at BAT, the worlds second-largest tobacco company, said one reason why existing nicotine replacement products did not work well was that they did not deliver nicotine fast enough or in high enough doses. "The [UK] Medicine and Healthcare Products Regulatory Agency [MHRA] has pointed out it is the tobacco smoke not the nicotine that produces the diseases and premature deaths associated with smoking," he said. The success of Nicoventures will depend on the attitude of regulators such as the MHRA, which will be asked to license its products. But BAT may have a hard time winning over anti-tobacco campaigners."This is the latest in a long line of attempts by BAT to give itself an ethical makeover and de-toxify its brand," said Deborah Arnott, chief executive of Action on Smoking and Health. "It will only succeed in doing so when it stops making and marketing smoked products which are highly addictive and kill half all their long-term users. Source Financial Times Online, 5 April 2011
Further to the story it should be noted that Nicoventures is a stand-alone company which will be managed separately from the Groups tobacco businesses. The creation of Nicoventures is an extension of British American Tobaccos approach to tobacco harm reduction that as you know has been developed over the past few years.
If you are interested in any further information, please don't hesitate to ask,
Article on FT Online (requires registration): FT.com / Companies / Personal Goods - BAT to market nicotine without the smokes
Coverage on MSN: British American to Market Tobacco-Free Nicotine Products; No Impact Likely on Stock: MorningStar Business News - MSN Money