British American Tobacco plc (New York Stock Exchange: BTI) is selling heat bars made from nicotine-infused substances, such as rooibos tea, as it strategizes around a European Union ban on flavored heated tobacco products. The company said the heat bars will help provide adults to nicotine users and smokers the widest possible range of reduced risk products.
The tobacco giant is offering bars containing Rooibos tea with nicotine instead of tobacco in nine European markets, including Germany and Greece. Looking ahead, British American Tobacco (BTI) plans to launch the product globally.
The tobacco industry has for years produced reduced-risk products, such as sticks that contain tobacco and do not burn. Reduced risk products have helped British American Tobacco (BTI) and other cigarette powerhouses find a way to offset falling demand for traditional cigarettes due to growing health awareness and heavy taxes in some markets. The sale of thermal bars by British American Tobacco (BTI) is considered a further step in that strategy.
Across the sector, Philip Morris International (PM) is expected to launch a non-tobacco stick product later this year. In general, tobacco companies say their new alternative products are aimed at smokers, rather than people who do not currently use nicotine.
British American Tobacco (BTI) shares rose 1.70% in London trading on Monday.
