Illicit vapor products continue to impact the legal market, London-based British American Tobacco (BAT) reported on its Feb. 13 fourth-quarter 2024 earnings call. The company reported that U.S. volumes in the vapor category declined by 4%.
During the call, the company warned that without stronger enforcement, illicit vapors products will continue to impact the legal market.
“Weak enforcement against illicit single-use vapes in the U.S. and Canada has distorted competition,” CFO and Executive Director Soraya Benchikh told investors.
In the U.S., revenue was down 3.4%. In U.S. combustibles, cigarette volume saw a 10.1% drop. Despite these headwinds, the company reported new category revenue growth. Modern oral revenue saw growth of 53% in 2024, the company reported.
“In the U.S. our recovery was driven by a refreshed Velo expression, and the launch of Grizzly Modern Oral,” Benchikh said. “We gained over two percentage points in volume share, reaching 6.6% and 18% in New York in December, where this mix was first introduced.”
Looking ahead, the company said it remains committed to achieving a 3% to 5% revenue growth.
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