According to a recent report by Reuters, the reduced brand value of British American Tobacco in the U.S. market is estimated to have caused losses of US$31.5 billion to British American Tobacco.
This is the first time that British American Tobacco has reduced its brand value in an important market. Due to inflation, U.S. cigarette consumers are switching to cheaper cigarette brands. At the same time, illegal disposable e-cigarette transactions have increased, and tobacco regulatory measures have been further strengthened. The combination of various factors has caused the brand value of British American Tobacco in the U.S. market to decline. British American Tobacco's affected brands include Newport, Camel, Pall Mall, Natural American Spirit, etc. British American Tobacco expects revenue and adjusted operating profit to achieve single-digit growth in 2024.
In addition to the reduction in brand value, a headache for British American Tobacco is the 107 million euros (1 euro is approximately RMB 7.85) fine issued by the Dutch court. A Dutch court said British American Tobacco underreported profits by 1.8 billion euros from 2013 to 2016 and fined it for false tax returns. British American Tobacco called the decision "disappointing" and believed it complied with tax regulations and was considering an appeal.
