BAT Romania: “By 2030, we want that 30% of revenues to come from new generation products” | Progresiv
British American Tobacco aims that, globally, by 2030, about 30% of revenues to be generated by new generation products in the portfolio (not just glo).
Also, at local level, the producer expanded its distribution of the product launched in December 2017, glo, to seven major cities in the country and intends to hold the first position in the future ranking of next generation of tobacco products.
As of last week, Neostiks's tobacco consumables are available in approximately 2,000 stores, international supermarket chains and gas stations in Bucharest, Constanta, Craiova, Cluj-Napoca, Timisoara, Brasov and Iasi. In addition to the chain of stores, the glo device is available online at www.glo.ro, in the glo ™ store in Baneasa Shopping City in Bucharest and through the ambassadors network. The glo distribution will be expanded in the future based on market demand.
"Expansion is a vital part of our company commitment and efforts to raise awareness of these new-generation products. By increasing access to low-risk products and through our ambassadors informing consumers about how glo ™ works, we can better support any smoker who might be considering switching to this alternative with low-risk potential", said Asli Ertonguc, Southern Central Europe Area Marketing Director at British American Tobacco.
As far as the production of glo consumables is concerned, this is done at the factories in Russia and South Korea, currently the only ones to manufacture Neosticks. Asked if the BAT plant in Romania (Ploiesti), the second largest in Europe, will produce supplies for the glo in the future, the company officials said: "If production is needed, the Ploiesti factory will be a top candidate to produce consumables in the future".
The promotional price of the first purchase of the device, along with 10 packages of Kent Neostiks, is 200 lei. A package of Kent Neostiks will be sold at a price comparable to that of a pack of cigarettes (17 lei).
British American Tobacco (BAT) Romania launched glo locally in December 2017, a 240 ° C tobacco heating product for adult smokers and made up of a special device and special tobacco bottles. For researching and then creating this product, BAT has invested about 2.5 billion dollars over the past six years.
In Romania, BAT is the largest player in the tobacco product market, its main brand being Kent. In 2016, BAT Romania reached a business of 8.1 billion lei, up by 11% from the previous year, and the company's profit last year was over 672 million lei, an increase of about 55% compared to 2015.