British American Tobacco (BAT) has acquired the nicotine pouch product assets of Dryft Sciences, expanding its product variants from 4 to 28, according to the company’s press release. The acquisition is a demonstration of BAT’s commitment to its purpose to build A Better Tomorrow by reducing the health impacts of its global business.  

  • BAT will rebrand Dryft’s US portfolio under its global Modern Oral Brand VELO and expects to accelerate growth through superior marketing, distribution, and channel capabilities. 
  • The acquisition of Dryft expands BAT’s portfolio in Modern Oral nicotine, a fast-growing category in the US. 
  • BAT aims to accelerate the growth of its New Category revenues at a faster rate than its total revenues, attaining 5 billion pounds in 2025. 
  • BAT has the ambition to reach 50 million consumers of non-combustibles by 2030 across the globe.
  • The acquisition has no impact on BAT’s commitment to previously stated deleverage targets.

BAT stock is gaining. BAT: LON is up 1.42%, BTI: NYSE is up on premarket 1.13%