3rd Nov 2020 09:09
(Alliance News) - British American Tobacco PLC on Tuesday announced the acquisition the nicotine pouch product assets of US-based oral nicotine product company Dryft Sciences LLC.
The London-based nicotine products manufacturer and seller said the acquisition strengthens its US modern oral portfolio, expanding its range to 28 product variants from the previous four. Financial terms of the deal were not disclosed.
BAT said: "The enhanced portfolio will include a wider range of nicotine strengths and flavours providing adult nicotine consumers with a greater degree of choice, covering all key consumer preferences. This will significantly strengthen BAT's portfolio in a fast-growing nicotine category in the US."
BAT will rebrand Dryft's US portfolio under its global modern oral brand, VELO, and expects to accelerate growth through superior distribution, marketing and channel capabilities.
BAT stressed the acquisition was part of its commitment to reduce the health impacts of its global business, partly through offering less risky nicotine products such as non-combustibles.
BAT Chief Executive Jack Bowles said: "Today's announcement underscores our societal commitment to accelerate our transformation and build a better tomorrow. Our multi-category strategy is key to our transformation.
"The addition of Dryft to our US Velo brand is a major step forward, further enhancing our successful vaping and oral portfolio."
BAT shares were up 0.5% at 2,476.00 pence each on Tuesday morning in London. The stock was up 0.9% in Johannesburg at ZAR518.70 each.
By Greg Roxburgh; [email protected]
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