Science & Innovation

Quarterly Update

Q4 2021

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An important year for Tobacco Harm Reduction

Never has Tobacco Harm Reduction been more important. In the wake of the COVID-19 pandemic, public health bodies are beginning to shift their focus back onto broader health issues and determine how they can optimise their resources to improve outcomes at a national level.  Minimising the harm caused by cigarettes continues to be a major challenge that many authorities are trying to tackle, with some countries, such as the UK, setting themselves ambitious targets to eliminate cigarettes entirely1. The real question is, how can they effectively deliver on this goal?

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What’s new
in Tobacco Heating Products?

With regulators and public health bodies renewing their pivotal efforts to tackle the harm caused by smoking, 2021 has been an important year for Tobacco Harm Reduction (THR). As the need for scientific evidence, which can inform public health policy, grows, never has research and development been more important.  In the area of Tobacco Heating Products (THP), it is acknowledged that there are currently only limited data globally compared to vapour products and there is a need for further evidence to scientifically-substantiate the reduced-risk*† potential of this category of alternative tobacco products.

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What's new in Vapour?

Vaping is an increasingly popular option for adult smokers looking for a reduced risk* alternative to cigarettes, which can offer comparable satisfaction in nicotine delivery, use, and sensorial aspects. The serious health risks associated with cigarettes is one of the main reasons people want satisfying alternatives. That is why BAT is investing in research and development of new or improved products, backed by science, to provide adult smokers with less risky* alternatives.

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What’s new in Modern Oral?

While vapour products are often the first category that spring to mind when thinking about Tobacco Harm Reduction and the role of alternative tobacco and nicotine products, Modern Oral (MO) Products are another convenient way for adult consumers to enjoy nicotine without smoke or tobacco. As MO products are a relatively new innovation, there is a growing need for, and interest in, data generated about these products to determine their reduced-risk*† potential compared to conventional cigarettes and traditional oral tobacco products.

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Our people

I enjoyed all of my science lessons, but I was particularly fascinated by chemistry. I loved all the colours and smells in our practical chemistry lessons. I always seemed to do well at the subject, so, when it came round to organising my work experience, I knew I wanted to do something in science.

Nathan Gale
Senior Clinical Research Scientist
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Our people

It’s easy to underestimate the impact that representation can have.  I know how much it would have meant to me to have people like me that I could look up to when I was growing up.

Jay Morris
Senior Technologist
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An important milestone

A significant milestone for Tobacco Harm Reduction was achieved in October, when the US Food and Drug Administration (FDA) made an historic decision by granting the first ever marketing authorisation for a vapour product under its Premarket Tobacco Product Application (PMTA) process for Vuse Solo product in Original flavour.  The authorisation confirms FDA’s conclusion that the marketing of Vuse Solo is appropriate for the protection of the public health in the US and demonstrates how BAT is making progress towards building A Better TomorrowTM.

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Forward-looking
statements

This is a report by British American Tobacco p.l.c.;associate companies are excluded. References to ‘British American Tobacco’, ‘BAT’, ‘we’, ‘us’ and ‘our’ when denoting opinion refer to British American Tobacco p.l.c. (the Company, and together with its subsidiaries, the ‘Group’), and when denoting tobacco business activity refer to Group operating companies, collectively or individually as the case may be.

This report contains certain forward-looking statements, including “forward-looking” statements made within the meaning of the US Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as “believe,” “anticipate,” “could,” “may,” “would,” “should,” “intend,” “plan,” “potential,” “predict,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy,” “outlook”, “target” and similar expressions. These include statements regarding our intentions, beliefs or current expectations reflecting knowledge and information available at the time of preparation, and concerning our results of operations, financial condition, liquidity, prospects, growth, strategies and the economic and business circumstances occurring from time to time in the countries and markets in which the Company operates, including the projected future financial and operating impacts of the COVID-19 pandemic.

All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors. It is believed that the expectations reflected in this report are reasonable but they may be affected by a wide range of variables that could cause actual results to differ materially from those currently anticipated.

Among the key factors that could cause actual results to differ materially from those projected in the forward looking statements are uncertainties related to the following: the impact of adverse domestic or international legislation and regulation; the inability to develop, commercialise and deliver the Group’s New Categories strategy; the impact of significant increases or structural changes in tobacco, nicotine and New Categories-related taxes; changes or differences in domestic or international economic or political conditions; the impact of serious injury, illness or death in the workplace; adverse decisions by domestic or international regulatory bodies; and the inability to lead the development and roll-out of BAT innovations (New Category products and combustibles), including as a result of unsuccessful research and development or a failure to develop robust scientific risk assessment frameworks.

The forward-looking statements reflect knowledge and information available at the date of preparation of these materials, and the Company undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements.

The material in this report is provided for the purpose of giving information about the Company to stakeholders only and is not intended for general consumers. The Company, its directors, officers, employees, agents or advisers do not accept or assume responsibility to any other person to whom this material is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.

The material in this Report is not provided for product advertising, promotional or marketing purposes. This material does not constitute and should not 
be construed as constituting an offer to sell, or a solicitation of an offer to buy, any of our products. Our products are sold only in compliance with the laws of the particular jurisdictions in which they are sold.

Additional information concerning these and other factors can be found in BAT’s filings with the USSecurities and Exchange Commission (“SEC”), including the Annual Report on Form 20-F and Current Reports on Form 6-K, which may be obtained free of charge at the SEC’s website, http://www.sec.gov.

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