A flat market in Japan and product recall in the U.S. is being blamed for British American Tobacco (BAT) cutting its full-year revenue target for vaping pens and tobacco heating devices, Reuters is reporting.
BAT has invested much time and resources to growing its next-generation products in response to the waning demand for traditional combustible products like cigarettes. Previously, BAT estimated profits from next-generation products would reach near $1.3 billion but now that amount has been adjusted to $1.18 billion. This is due to stagnant growth of the heat-not-burn market in Japan and the recall impacting the company’s Vuse Vibe e-cigarette product in the U.S. earlier this year [read more here].
BAT still expects heat-not-burn products like glo to catch on in Japan but admit that there’s a slower adoption rate among consumers that smoke, who have not fully embraced the product but are instead going in between heat-not-burn products and traditional combustible ones.
