(Bloomberg) -- The UK government should be cracking down on illegal vapes rather than introducing redundant policies on cigarettes, according to a senior executive at British American Tobacco Plc
Kingsley Wheaton, chief corporate officer of Britain’s biggest tobacco company, said its analysis shows by the time a UK plan to stop young British adults buying cigarettes comes into force, smoking rates will have already fallen below 5% in that age category.
BAT, which currently derives about 80% of its revenue from sales of cigarettes, is instead pushing for licensing for retailers selling vapes.
Vapes have surged in popularity among smokers looking to quit and younger adults. Wheaton said licensing, with proper enforcement, will help reduce the number of underage children getting their hands on e-cigarettes and level the playing field for all companies operating in the industry.
The UK’s previous Conservative administration announced plans to create a smoke-free generation by banning the sales of cigarettes in the future to anyone who is currently aged 14 or under. The new Labour government is continuing with the policy and is also concerned about the prevalence of disposable vapes, which are available in candy flavors and bright colors. Many of these are are shipped to the UK from China and sold through independent retailers.
“We need to move on to a more mature dialog with real solutions for the problems that are out there,” Wheaton said in an interview.
Tobacco Alternatives
Wheaton was speaking at an event in London Tuesday where BAT outlined its plan to reduce traditional tobacco cigarette sales to 50% of revenues by 2035, by pushing alternative products such as vapes, nicotine pouches and heated cigarettes.
The world’s biggest tobacco companies are trying generate more sales from tobacco alternative as rates of smoking decline. The World Health Organisation said that one in five adults worldwide smoked in 2022, compared with one in three at the start of the century. Rival Philip Morris International Inc, whose brands include Marlboro cigarettes and IQOS heated tobacco sticks, is targeting two thirds of sales of smokeless alternatives by 2030.
Wheaton said the 2035 target balanced the interests of shareholders with customers. “We’ve got investors to think about, we’ve got dividends to pay, we’ve got debt to pay-down and buybacks to fund,” he said.
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