Ahead of World No Tobacco Day on 31 May, Eurotoday sat down with BAT’s Eric Sensi-Minautier to talk about where the tobacco industry is headed in 2025. And it is not quite what one would think.
He is not a man to get lost in the niceties of diplomatic small talk. Eric Sensi-Minautier, director for EU Public Affairs, British American Tobacco, doesn’t try to hide a certain degree of impatience with the lack of understanding of how the tobacco industry has changed. To sum it up. The industry is transforming itself, but the world refuses to acknowledge it:
“There is a consumer-led revolution going on – away from cigarettes and to smokeless products. For this reason, we are making major investments across Europe in our portfolio of new category products, all of it with the aim of reducing the health impact of our business”.
Concretely, between 2023 and 2028, BAT will invest 500 million euro in its recently opened innovation hub in Trieste, Italy. Rising demand for new category products including vaping, pouches and heated tobacco products is already kicking in and new nicotine products helped support 137,000 jobs and €17 billion in GDP across the EU-27 in 2021. Already the industry has a major positive impact on the EU economy by driving job creation, innovation and growth. The most recent data – from 2021 – shows the industry contributing to EU budgets in the form of taxes and VAT payments to the tune of 107,5 billion euros in 2021 – near the double of French defence spending that year.
“The news is that there is a real innovation happening in our industry. It has already delivered a choice of harm-reduced nicotine products. We intend to develop more such innovative products in Trieste. There is a real transformation going on. The industry is now a part of the solution and no longer just the problem,”
Sensi-Minautier insists, while adding that innovation is what will help the EU meet its policy goal of a tobacco-free generation by 2040, not market restrictions and administrative forms.
The claim is backed by the PLACEHOLDER1fd797efaeb05f4e’s own Eurobarometer data which shows that the primary reason to start vaping for the majority of vapers is to quit or to reduce their cigarette consumption. The PLACEHOLDER1717262329316820 has endorsed tobacco harm reduction on two occasions, and a public consultation for evaluating the EU’s framework for tobacco control, revealed that 77% of respondents strongly agree or agree that novel nicotine products can help to quit smoking. Yet, this is a not always an easy message to get across:
“The public debate mistakenly tends to get stuck on the flavours of vaping products as a gateway for new smokers. The reality is that the overwhelming number of cases show that smokeless products are a gateway out of smoking. We honestly feel that policy makers are barking up the wrong tree here,” says Sensi-Minautier and explains that flavours are really about attracting adult smokers to less harmful smokeless products.
“Like all products which have a taste, flavour is important. It has also been showed that flavours are important for reducing the risk of a former smokers relapsing as they don’t trigger the same taste as a cigarettes, thus playing a key role to help smokers make the switch,”
Argues Sensi-Minautier.
He underlines that the predictable side effect of banning flavours and limiting access to harm reduced products is to drive products and trade to illegal markets where all quality control and safety disappear out the window. In the process, it leads to important losses in tax revenues and drives consumers towards illegal products supplier by criminal networks.
“If we look at the results in markets with different approaches to the availability of harm reduced products, the differences are striking. When we compare the situation in Australia, where until very recently the sale of such products was prescription based, with that of neighbouring New Zealand, the latter’s much more progressive approach has secured significantly better results with decreasing number of smokers. We see the same results in Sweden, the Czech Republic and the UK”.
All this said, there is still the difficult issue of vaping flavours that appeal to minors who may never become cigarette smokers, but vapers. How will the industry tackle that?
“Our unflinching view is that nicotine products are for adults only, underage access is not tolerable. It is a complicated issue which will require a wide range of stakeholders to come together. At BAT we are working through retail controls, responsible marketing, and collaborating with business partners. We think technology and innovation can play a big role to prevent underage access and usage,”
Says
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