British American Tobacco PLC ADR
BTI: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$59.00 | Xmzw | Phnrncb |
BAT’s Strategy to Diversify Into Nicotine Categories Lacks Focus
Business Strategy and Outlook
The advent of e-cigarettes has created the most significant change in the tobacco industry since the 1960s. Early forms of e-cigarettes have existed for a generation, but with the consumer arguably less brand-loyal and more aware of health issues than ever before, the industry is undergoing a shift to next-generation nicotine-based products. It seems likely that cigarettes will remain the driving force of the industry profit pool for the next decade, but Big Tobacco manufacturers are nevertheless placing their bets on new categories most likely to win share of smokers.