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%