Cigarette giant British American Tobacco has warned that it could take two years longer than expected to reach a major milestone in the business unit which includes its vape pens.
It also warned that revenue from its overall business is likely to miss expectations.
Covid-19 has slowed the growth of vaping products, which are touted as the big saviour in western countries for under-pressure tobacco companies.
BAT said that it could now take until 2025 before it starts making £5 billion in revenue from its new categories business unit, which includes vape pen Vype.
“Covid-19 has disrupted consumer activation plans, reducing overall industry growth rates in new categories,” BAT told shareholders on Tuesday.
“It has also led to the scaling back or postponement of some launches, as well as causing supply disruption and out-of-stocks earlier in the year.
“While the vapour category continues to recover following the global slowdown in the second half last year, the US market remains below historical levels.”
Sourced from: www.independent.ie
British American Tobacco seem to be hitting the market pretty hard