Mission Statement, Vision, & Core Values of British American Tobacco p.l.c. (BTI)

Ever wondered what drives a global giant like British American Tobacco (BTI), which generated over £27 billion in revenue in 2024? What are the guiding principles behind their strategic decisions and long-term goals?

Understanding a company's mission, vision, and core values offers insights into its operations and future direction. Ready to explore the foundational elements that shape British American Tobacco's identity and strategic objectives in the ever-evolving tobacco industry?

British American Tobacco p.l.c. (BTI) An Overview of

British American Tobacco p.l.c. (BAT), established in 1902, has evolved into a leading global consumer goods company. With a presence in over 175 markets, BAT manufactures and sells a diverse portfolio of products. These include cigarettes, tobacco heating products, vapor products, and modern oral products, catering to a wide range of consumer preferences. Some of their well-known brands include Dunhill, Kent, Lucky Strike, and Pall Mall. As of April 2025, BAT continues to adapt to the evolving landscape of the tobacco industry, focusing on innovation and sustainability to drive future growth.

In its latest financial reports, British American Tobacco demonstrated a resilient performance. The company reported revenue of £27.28 billion for the year 2024. Revenue from new categories, including vapor, heated products, and modern oral nicotine, reached £3.269 billion, demonstrating substantial growth and reflecting the company's strategic focus on innovative products. This growth is particularly notable in key markets, highlighting the increasing consumer acceptance of these alternatives. These figures underline BAT's strong financial health and its ability to capitalize on emerging trends in the market.

British American Tobacco stands as one of the foremost companies in the tobacco industry, marked by its extensive global reach, diverse product portfolio, and commitment to innovation. Its long-standing history and adaptation to changing consumer preferences have solidified its position as a leader. To delve deeper into the factors that contribute to BAT's success and its appeal to investors, explore: Exploring British American Tobacco p.l.c. (BTI) Investor Profile: Who’s Buying and Why?

British American Tobacco p.l.c. (BTI) Mission Statement of

British American Tobacco p.l.c. (BAT), doesn't have a traditional mission statement. Instead, they operate with a clear purpose and a set of strategic priorities. Their purpose is to build A Better Tomorrow™ by reducing the health impact of their business. This involves offering a greater choice of enjoyable and less risky products for their consumers. BAT focuses on driving value for shareholders and reducing the health impact of its business by offering a wide range of enjoyable and less risky products. You can gain additional insights into BAT's financial performance and stability by visiting: Breaking Down British American Tobacco p.l.c. (BTI) Financial Health: Key Insights for Investors

BAT's strategic priorities, which guide their actions and decisions, include:

• Transforming Tobacco: This involves accelerating the growth of their New Categories business, which includes vapor, tobacco heating products, and modern oral products.
• Strengthening Combustibles: While shifting towards new categories, BAT aims to maintain a strong performance in their traditional cigarette business.
• Simplifying the Business: BAT focuses on improving efficiency and effectiveness across their operations.
• Building a Thriving Organisation: This priority centers on fostering a culture of innovation, collaboration, and high performance within the company.

Examining these priorities reveals several core components of BAT's overarching goals:

1. Harm Reduction:

At the heart of BAT's purpose is a commitment to reducing the health impact of their business. This is primarily achieved by providing adult consumers with a range of alternative, less risky products compared to traditional cigarettes. This commitment is reflected in their investment in and expansion of their New Categories business. As of the full year 2024, New Categories revenue reached £3.677 billion, with a volume of 28.8 billion, demonstrating substantial growth and consumer adoption of these alternatives.

2. Consumer Choice:

BAT emphasizes providing adult consumers with a wide variety of choices to cater to different preferences and needs. This includes a range of products, from traditional cigarettes to vapor products, tobacco heating products, and modern oral products. In 2024, BAT highlighted the strong performance of Velo, its modern oral nicotine pouch brand, which saw volume growth of over 50%. This illustrates the company's dedication to meeting evolving consumer demands.

3. Value Creation:

While harm reduction is a key focus, BAT also recognizes the importance of delivering value to its shareholders. This involves achieving sustainable revenue and profit growth, improving efficiency, and effectively managing capital allocation. In the fiscal year 2024, BAT reported revenue of £27.28 billion and adjusted profit from operations of £12.46 billion, showcasing their ability to balance harm reduction with financial performance.

British American Tobacco p.l.c. (BTI) Vision Statement

A vision statement serves as a long-term aspiration, guiding a company's strategic direction. For British American Tobacco (BTI), understanding its vision provides insights into its ambitions and how it positions itself in the global tobacco and nicotine industry. As of April 2025, analyzing BTI's vision involves considering its strategic goals, market positioning, and commitment to evolving consumer preferences.

Evolving Consumer Preferences and Innovation

BTI's vision addresses the evolving preferences of consumers by focusing on innovation and a portfolio of potentially reduced-risk products. This includes:

• New Categories: BTI is expanding beyond traditional tobacco products into new categories like vapor products, tobacco heating products, and modern oral nicotine pouches.
• Investment in R&D: Significant investments are being made in research and development to create innovative products that appeal to changing consumer tastes and preferences. In 2024, BTI invested £349 million in research and development.
• Sustainability: A focus on sustainability and responsible consumption is also part of addressing consumer expectations, with goals to reduce environmental impact and promote responsible practices.

Market Leadership and Growth

A core element of BTI's vision is to maintain and strengthen its market leadership while achieving sustainable growth. This involves:

• Global Presence: Leveraging its global footprint to reach diverse markets and consumer segments.
• Strategic Acquisitions: Pursuing strategic acquisitions and partnerships to expand its product portfolio and market reach.
• Financial Performance: Aiming for consistent financial performance, including revenue growth, profitability, and shareholder value. In 2024, BTI reported revenue of £27.28 billion.

Sustainability and Responsibility

Sustainability and corporate responsibility are increasingly important aspects of BTI's vision, reflecting a commitment to operating ethically and minimizing its impact on society and the environment. This includes:

• Environmental Targets: Setting targets to reduce carbon emissions, water usage, and waste generation.
• Social Responsibility: Implementing programs to combat illicit trade, prevent youth access to tobacco products, and promote responsible marketing practices.
• Governance: Adhering to high standards of corporate governance and transparency in its operations.

Understanding BTI's vision statement provides valuable context for investors and stakeholders. For further insights into the company and its investors, consider reading: Exploring British American Tobacco p.l.c. (BTI) Investor Profile: Who’s Buying and Why?

British American Tobacco p.l.c. (BTI) Core Values of

British American Tobacco (BTI) operates with a set of core values that guide its business conduct and strategic decisions. While specific values might evolve or be emphasized differently over time, the following represents a synthesis of their publicly stated commitments and principles as of 2024:

Integrity

Integrity is a cornerstone of British American Tobacco's operations. This value emphasizes honesty, transparency, and ethical conduct in all aspects of the business. For British American Tobacco, maintaining integrity means adhering to the highest standards of corporate governance and compliance, ensuring that all activities are conducted in a responsible and accountable manner. This commitment extends to relationships with stakeholders, including employees, customers, investors, and the communities in which it operates.

British American Tobacco demonstrates its commitment to integrity through various initiatives:

• Compliance Programs: Robust compliance programs are in place to prevent unethical behavior and ensure adherence to laws and regulations.
• Transparent Reporting: British American Tobacco is committed to transparent reporting of its financial performance, environmental impact, and social responsibility efforts. For example, their annual reports provide detailed information on these areas.
• Stakeholder Engagement: Engaging with stakeholders to understand their concerns and address them in a responsible manner is a key aspect of maintaining integrity.

Innovation

Innovation is crucial for British American Tobacco, especially as it navigates a changing industry landscape. This value drives the company to explore new products, technologies, and business models. British American Tobacco invests heavily in research and development to create innovative products that meet evolving consumer preferences and address harm reduction. This includes a focus on potentially reduced-risk products (PRRPs) such as vapor products, heated tobacco, and oral nicotine.

Examples of how British American Tobacco demonstrates innovation:

• Investment in R&D: In 2024, British American Tobacco invested £342 million in research and development.
• New Product Development: The company continues to launch new and improved PRRPs.
• Digital Transformation: British American Tobacco is leveraging digital technologies to enhance its operations, marketing, and customer engagement.

Responsibility

Responsibility is a key value for British American Tobacco, given the nature of its products. This entails taking a proactive approach to addressing the health and environmental impacts associated with tobacco consumption. British American Tobacco aims to minimize harm through product innovation, responsible marketing practices, and support for evidence-based tobacco control measures. The company also focuses on reducing its environmental footprint and promoting sustainable business practices.

British American Tobacco demonstrates its commitment to responsibility through:

• Harm Reduction: Developing and promoting potentially reduced-risk products (PRRPs) as alternatives to traditional cigarettes.
• Environmental Sustainability: Initiatives to reduce carbon emissions, conserve water, and minimize waste. For example, British American Tobacco aims to achieve carbon neutrality in its operations by 2030.
• Responsible Marketing: Adhering to strict marketing standards to prevent underage tobacco use and promote responsible consumption.

Diversity and Inclusion

British American Tobacco values diversity and inclusion as essential to its success. This means creating a workplace where all employees feel valued, respected, and empowered to contribute their best. British American Tobacco is committed to promoting diversity at all levels of the organization and fostering an inclusive culture that embraces different perspectives and backgrounds. This commitment extends to its supply chain and partnerships, where British American Tobacco seeks to work with diverse suppliers and promote inclusive business practices.

British American Tobacco demonstrates its commitment to diversity and inclusion through:

• Diversity Targets: Setting targets for increasing representation of women and underrepresented groups in leadership positions.
• Inclusive Policies: Implementing policies and programs that support work-life balance, flexible working, and equal opportunities.
• Employee Resource Groups: Supporting employee resource groups that provide a platform for employees to connect, share experiences, and advocate for diversity and inclusion.

British American Tobacco's commitment to these values is integral to its long-term success and sustainability. By upholding integrity, driving innovation, acting responsibly, and promoting diversity and inclusion, the company aims to create value for its shareholders while making a positive impact on society.