History and Operations
- The British-American Tobacco Company Ltd. was formed in 1902 as a joint venture between Imperial Tobacco Company and American Tobacco Company.
- James Buchanan Duke became the chairman of the company.
- The company began its operations in various countries such as Canada, China, Germany, South Africa, New Zealand, and Australia.
- BAT inherited a factory in Shanghai, China from W.D. & H.O. Wills.
- In 1911, the American Tobacco Company sold its share of the company.
- BAT's Shanghai factory was producing over 243 million cigarettes per week by 1919.
- BAT's principal Chinese partner was the Wing Tai Vo Tobacco Company.
- Imperial Tobacco gradually reduced its shareholding in BAT and divested its remaining interests in 1980.
- BAT's assets in China were seized by the Japanese in 1941 and the company was ejected from China in 1949.
- In 1994, BAT acquired its former parent, American Tobacco Company.
- BAT lost a lawsuit in 2002 regarding the right to sell cigarettes under the Marlboro brand name in the UK.
- BAT acquired Ente Tabacchi Italiani (ETI) S.p.A. in 2003, elevating its position in the Italian tobacco market.
- BAT acquired a majority holding in the Serbian tobacco company Duvanska Industrija Vranje (DIV) in 2003.
- BAT combined its U.S. business with R. J. Reynolds Tobacco Company in 2004.
- BAT acquired various companies and brands in countries such as Turkey, Indonesia, Colombia, and Croatia.
- BAT offers a range of international brands including Dunhill, Kent, Lucky Strike, Pall Mall, Vogue, and Rothmans International.
- BAT owns local brands such as Benson & Hedges, John Players Gold Leaf, Hollywood, Derby, and State Express 555 in different countries.
- BAT has diversified into other fields such as retail, acquiring companies like Gimbels, Kohls, and Saks Fifth Avenue.
- BAT also acquired the United Kingdom retail chain Argos.
- BAT has engaged in partnerships and test-marketing of new products, such as the manufacture of Camel brand snus.
Affiliates and Sponsorships
- British American Tobacco Ghana Limited is a public limited company operated by British American in Ghana.
- The company is listed (GSE: BAT) on the stock index of the Ghana Stock Exchange, the GSE All-Share Index.
- It was formed in 1999 out of a merger between the Pioneer Tobacco Company and Meridian Tobacco.
- ITC Limited, in which BAT holds a minority share, sponsored the Cricket World Cup in 1996, achieving brand recognition for the Wills cigarette brand in India.
- BAT sponsors the London Symphony Orchestra.
- BAT established The British American Tobacco Internship programme to help new graduates gain experience.
- McLaren signed a multi-year partnership deal with BAT, bringing the company back into Formula 1 in 2019.
- BAT and McLaren announced an enhanced partnership deal in 2019, with increased branding position.
- BAT purchased the Tyrrell team in 1997 and renamed it British American Racing (BAR).
- Honda purchased a stake in BAR in 2004 and later became the sole owner, renaming the team Honda Racing F1 Team.
- McLaren signed a partnership deal with BAT in 2019, marking BAT's return to Formula 1.
- Vuse partnered with McLaren F1 Team for bespoke liveries in the Abu Dhabi Grand Prix.
Controversies and Lawsuits
- BAT had information as early as 1958 that cigarettes cause cancer.
- Tobacco companies were concerned about smoking fatwas in Muslim majority countries.
- The Nigerian federal government filed a lawsuit against BAT and two other tobacco companies in 2007.
- BAT's marketing practices in Africa were investigated and found to potentially violate company standards.
- BAT invested in a North Korean state-owned enterprise in 2001, allegedly producing cigarettes for consumption and smuggling.
- The three largest Canadian tobacco companies, including BAT, faced a class action lawsuit in 2012.
- Quebec smokers were awarded over $15 billion in damages in a landmark case against Canadian cigarette giants.
- BAT, along with other tobacco companies, sued the Australian government over plain packaging legislation.
- BAT was fined by HMRC in 2014 for oversupplying the Belgian market and contributing to tobacco smuggling.
- BBC Panorama alleged that BAT bribed officials in Rwanda, Burundi, and Kenya to limit the implementation of tobacco control measures.
- Whistleblower Paul Hopkins provided documents showing BAT's involvement in bribery.
- BAT denied the allegations.
- BAT and other tobacco companies used threats and bullying to hinder anti-smoking legislation in African countries.
- Documents revealed BAT's request to quash anti-smoking legislation in Kenya.
- British High Commissioner to Pakistan, Philip Barton, was accused of lobbying for BAT interests.
- Barton attended a meeting where BAT executives tried to convince Pakistani ministers to veto health warnings on cigarette packets.
- This activity went against Foreign and Commonwealth Office policy.
- Similar incidents involving British ambassadors supporting BAT were reprimanded.
- BAT actively marketed and sold its products in unstable and impoverished nations and conflict zones.
- Internal documents revealed plans to sell black-market cigarettes in parts of Somalia controlled by Al-Shabaab.
- BAT pursued volume growth in South Sudan just before its independence.
- The Kent cigarette brand was actively marketed in Iraq and Syria during the Iraq War and Syrian Civil War.
- OCCRP investigation revealed that BAT's cigarette trafficking helped finance jihadist and separatist groups in northern Mali.
- A BAT subsidiary admitted to selling cigarettes to North Korea, violating US sanctions.
- US authorities investigated the activity spanning from 2007 to 2017.
- BAT was fined $635 million and described as the DOJ's largest single North Korean sanctions penalty.
- Attorney General Matthew Olsen commented on the settlement fee.
- The violation required BAT to pay the fine and interests to US authorities.
Acquisitions and Investments
- British American Tobacco buys TDR for €550 million.
British American Tobacco Data Sources
Reference | URL |
---|---|
Glossary | https://www.alternix.com/blogs/glossary-of-terms/british-american-tobacco |
Wikipedia | http://en.wikipedia.org/wiki/British_American_Tobacco |
Wikidata | https://www.wikidata.org/wiki/Q856411 |
Knowledge Graph | https://www.google.com/search?kgmid=/m/04m_wqz |