On 21 May, BAT welcomed members of its My BAT Rewards program to a night of dinner, entertainment and insight into the next-gen nicotine category at Manchester’s Kimpton Clocktower Hotel.
Over the course of the evening, five attendees also went home as raffle winners, with prizes including an iPhone, iPad, MacBook Pro, as well as hospitality packages for the F1 at Silverstone and for Manchester City FC.
Interspersed with the merrymaking was a series of presentations from leading figures at BAT outlining how the supplier planned to approach upcoming legislative challenges that will influence the next-gen category, as well as new launches in its Vuse vape and Velo nicotine pouch ranges.
The legislative landscape
After an introductory speech from BAT’s UK head of sales Marcin Mielcarz, Stephen Little, BAT’s senior external engagement manager, explained the specifics behind the proposed generational smoking ban and the Tobacco and Vapes Bill – both of which subsequently are now on hold due to the announcement of the UK general election. “The main change starts on 1 January 2027, when the legal smoking age will increase annually,” he said. “Today’s 15-year-olds will never be able to buy tobacco products, they won’t be old enough. It’s a gradual ambition to reach a smoke-free generation. For responsible retailers, the impact is small but the age verification process for selling tobacco products will be a challenge in 2027.”
He went on to discuss the proposed disposable vape ban: “Concerns about underage access and environmental impact have driven this policy. Disposable vapes, while popular with adult smokers, do pose significant challenges. Sadly they’re often marketed in ways that appeal to young audiences and their single-use nature creates substantial waste.
“The definition of a disposable vape is still being consulted on but it’s very likely that any vape that isn’t refillable or rechargeable will be banned and the sale of those products will lead to prosecution, fines and potentially imprisonment.”
Throughout, Little stressed BAT’s commitment to ensuring it kept its retailer partners up to date on both pieces of legislation, and that it would continue engaging to ensure the effects on retailers were minimised. “If there’s any training or information you’d like, we’re here to help ensure that when it comes to pass, there’s a smooth transition for the products you sell alongside us,” he said. “The key thing is nothing is going to change overnight, there’s plenty of time to prepare, and the government will allow time for transitions, so there’s nothing to panic about.”
The latest in Velo
BAT’s regional manager for London, Warren Scanlan, was frank in his assessment of the role of convenience stores: “Our vision is centred around you guys, because without you, we’re kind of nothing.” He went on to highlight the importance of educating customers on what nicotine pouches are, due to the category’s importance in driving incremental sales. “Education and visibility drive traffic and footfall, they drive frequency of purchase, which in turn drives up basket spend,” he said.
“We used to talk about tobacco consumers shopping every day and if they buy something else every day, be it a Coke or a bottle of milk or a sandwich, it drives basket spend. That adds up to margin, pounds and pence in your till, and the same for us. If we work together we all win.”
Scanlan also spoke about Velo’s growth trajectory, with the brand currently occupying the number one spot for market share in the nicotine pouch category in the UK with 56%[1]. “Comparing Velo total coverage sales figures from 2021 we saw an increase of 35% by 2022, and by 2023 we saw another 60% increase in sales. Our brand is growing rapidly and if you’re not on board already, you should be .”
Scanlan went on to talk about some of the developments driving Velo’s growth, including its ‘Pop Tuck Feel’ marketing messaging to help explain to consumers how to use the product, as well as its increasing variety of flavours and strengths. This includes the new Icy Fruits range, which Scanland described as aimed at adults who are looking to move away from disposables. “Once someone has found the strength they like, they dash between flavours,” he said. “So it’s important to have the right range of strengths on board to satisfy adult nicotine consumers, but then flex with different flavours to keep people interested.”
What’s new in Vuse?
It was then the turn of BAT Regional Manager of the North Eddie Devine to talk about new developments in BAT’s Vuse vape range. He unveiled the new Vuse Go Reload 1000, which has a new 2ml pod allowing for the increased puff count. It also has a design that evokes the feel of a disposable device. Other features include USB-C charging, child-lock, a longer-lasting battery, and backwards compatibility with older Vuse Pro & ePod refills. Vuse Go Reload 1000 has launched with starter kits across five flavours, refills sold in a two-pod pack offering up to 2,000 puffs* comparable to that of a single disposable.
Despite these new pod-based developments, Devine reaffirmed the supplier’s commitment to disposables while they are still viable for retailers. Its Vuse Go 700 and 800 ranges will change to Vuse Go 1000 available in a pen and box format with increased puff counts up to 1,000** per device, and now have a ceramic coil and a child-lock. “We know consumers are still going to use disposables, and we know when they’re using them, it makes the transition to closed systems a lot simpler,” said Devine. “We know people still want to sell and increase margins, basket spend and profit.”
Supplier viewpoint
Marcin Mielcarz, head of sales, BAT UK: “I’ve worked at BAT for 20 years, but have only been in the UK as of mid-February. This event was a great way for us to define our Better Tomorrow vision: we want to grow but we want to have a positive impact on society, bringing less harmful products to consumers. Both Velo and Vuse are performing fantastically in the UK, so we need to keep the ball rolling.
It was a great event. I’m really happy we had important retailer partners at this event, because we need their help to drive our Better Tomorrow agenda, and it was great that we emphasised several times that BAT is all about sustainable value growth. We are not thinking from one quarter to the next, we want to drive our business in a long-lasting, responsible way.
We are grateful for them because the UK has a huge independent retail aspect, and I’ve realised that consumers’ trust in their local independent shops is very big. These retailers can drive strategy with us, such as properly educating their customers that potentially less risky alternatives to combustible tobacco products exist.”
* Based on laboratory testing of newly manufactured pods in a Vuse Go Reload 1000 (including recharging) at a puff duration of one second may vary depending on individual’s usage behaviour.
** Based on laboratory testing of newly manufactured product and may vary depending on individuals usage behaviour. For further information, see https://www.vuse.com/gb/en/puffcount
[1] NielsenIQ RMS data for Nicotine Pouches, 18 months ending 30/12/2023, UK total retail market
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