TIDMBATS
RNS Number : 3228O
British American Tobacco PLC
31 January 2023
British American Tobacco p.l.c.
31 January 2023
Driving Faster Transformation at BAT: Management Board Changes
and a New Regional Structure
Following a strategic review of its regions, business units and
global functions, BAT will implement a number of senior management
changes and a new regional structure to both streamline, and
accelerate, the transformation of its business.
Since the launch of the purpose-led A Better Tomorrow(TM)
strategy in 2020, BAT has made significant progress in building a
New Categories consumer base, growing powerful global brands and
developing organisational capabilities for the future.
The new structure will increase the efficiency of BAT's
geographical footprint, optimise market prioritisation and will be
based on fewer, larger business units, enabling even greater
collaboration and accelerated decision-making across BAT.
Jack Bowles, BAT Chief Executive commented:
"As our transformation journey towards our strategic milestones
gathers pace, we need to further sharpen our operating model,
streamline our business to drive agility, and continue to enhance
organisational capabilities. As part of our commitment to building
A Better Tomorrow, the changes we have announced today will drive
increased focus, accelerate our transformation and fuel growth as
we strengthen the foundations of our future as a category-led
enterprise."
Following this strategic review, underpinned by distinct
market-archetypes, the number of regions will be reduced from four
to three, and the number of business units from 16 to 12[1], while
also accelerating the company's market exit plans.
BAT's new structure will consist of three regions:
-- USA (Reynolds American Inc.)
-- Americas & Europe (AME)
-- Asia Pacific, Middle East & Africa (APMEA)
In addition, two new Management Board roles will be created in
order to ensure clarity of ownership, accountability and focus:
Chief Transformation Officer and Director, Combustibles.
The Chief Transformation Officer will be responsible for driving
faster transformation, accelerating greater capability build in key
areas and enabling an even faster, simpler and more agile
organisation. The role of Director, Combustibles will lead the
focus on driving value from combustibles to fuel further investment
in New Categories.
These structural changes and the following appointments and
other changes reflect the quality, depth and diversity of
management within BAT and will take effect from 1 April 2023:
-- Johan Vandermeulen , currently Regional Director, Europe,
will be appointed to the new role of Chief Transformation
Officer
-- Luciano Comin will be appointed to the new role of Director,
Combustibles
-- Frederico (Fred) Monteiro will be promoted to the Management
Board as Regional Director, Americas & Europe Region (AME)
-- Guy Meldrum will continue to lead BAT's largest business in
the USA as President, Reynolds American Inc.
-- Michael Dijanosic will take on an expanded role as Regional
Director, Asia Pacific, Middle East & Africa (APMEA)
-- Javed Iqbal , Director, Digital and Information, will work
with the Regional Directors and Chief Transformation Officer to
ensure that the Digital & Information agenda is fully aligned
with BAT's corporate transformation
The President, Reynolds American Inc., Regional Directors for
AME and APMEA, and the Director, Digital & Information, will
report to the Chief Transformation Officer. The Director,
Combustibles will report to the Chief Growth Officer.
Johan joined the Management Board in 2014 and has extensive
leadership experience across BAT, previously leading the Asia
Pacific and Africa & Middle East Regions, following general and
marketing management roles in Russia, Turkey and as a Global Brand
Director. Johan will report to Jack Bowles, Chief Executive.
Luciano was Regional Director, Americas & Sub-Saharan
Africa, prior to which he held senior general and marketing
management positions in Europe, Mexico and Malaysia.
Fred has spent more than 20 years with BAT, most recently as
Area Director of Central Europe South, based in Romania. Prior to
this role, Fred has held numerous senior leadership positions
including Marketing Director, Next Generation Products, Head of
Marketing for the Europe Region and General Manager, BAT Japan.
Further, Dr. David O'Reilly, Director, Research and Science,
will step down from the Management Board on 28 February 2023 and
leave BAT with effect from 31 May 2023 to pursue other
interests.
David joined the Management Board on 1 January 2012, and has
been instrumental, both internally and externally, in driving the
science agenda that has underpinned BAT's transformation.
David will be succeeded by Dr. James Murphy, currently Executive
Vice President of Scientific Research and Development at Reynolds
American Inc.
James has been with BAT for over 17 years and has held a number
of senior roles in the Centre in R&D, Operations and Marketing
as well as in the Americas and Sub-Saharan Africa region. James
will join the Management Board as the Director, Research and
Science Designate, with effect from 1 February 2023, before
assuming the role of Director, Research and Science, reporting to
the CEO, on 1 March 2023.
Jack Bowles, BAT Chief Executive, said:
"I am pleased that the changes we will be making to the
Management Board reflect our new, streamlined Regional and Business
Unit structure.
"I would like to welcome Fred and James to the Management Board
and look forward to their energy, contribution and continued
leadership.
"I would also like to thank David for his significant
contribution to BAT over the last 30 years. He has consistently
been at the forefront of BAT's transformation agenda, and under his
leadership BAT has created and developed world-class R&D
capabilities in New Categories, and beyond.
"I am excited about the path that lies ahead for BAT, as we work
together to write the next chapter in our corporate story and
continue building the BAT of the future."
S
Enquiries
Media Centre
+44 (0) 20 7845 2888 (24 hours) | @BATplc
Investor Relations
Victoria Buxton: +44 (0)20 7845 2012
John Harney: +44 (0)20 7845 1263
About BAT
BAT is a leading, multi-category consumer goods business with a
purpose to build A Better Tomorrow(TM) by reducing the health
impact of its business through offering a greater choice of
enjoyable and less risky products for adult consumers.
BAT continues to be clear that combustible cigarettes pose
serious health risks, and the only way to avoid these risks is not
to start or to quit. BAT encourages those who would otherwise
continue to smoke to switch completely to
scientifically-substantiated, reduced-risk alternatives* . In order
to deliver this, BAT is transforming into a truly consumer-centric
multi-category consumer products business.
BAT's ambition is to have 50 million consumers of its
non-combustible products by 2030 and to generate GBP5billion of New
Categories revenue by 2025. BAT has set stretching ESG targets
including achieving carbon neutrality for Scopes 1 & 2 by 2030
and eliminating unnecessary single-use plastic and making all
plastic packaging reusable, recyclable or compostable by 2025.
BAT employs over 52,000 people and operates in over 175
countries. The BAT Group generated revenue of GBP25.68 billion in
2021 and profit from operations of GBP10.2 billion.
BAT's Strategic Portfolio is made up of its global cigarette
brands and a growing range of reduced-risk* New Category tobacco
and nicotine products and traditional non-combustible tobacco
products. These include vapour, tobacco heating products, modern
oral products including tobacco-free nicotine pouches, as well as
traditional oral products such as snus and moist snuff. In the
first half of 2022, we had 20.4 million consumers of our
non-combustible products, a rise of 2.1 million on full year
2021.
References in this statement to 'BAT', 'we', 'us' and 'our'
refer to the British American Tobacco Group.
* Based on the weight of evidence and assuming a complete switch
from cigarette smoking. These products are not risk free and are
addictive.
Our products as sold in the US, including Vuse, Velo, Grizzly,
Kodiak, and Camel Snus, are subject to Food and Drug Administration
(FDA) regulation and no reduced-risk claims will be made as to
these products without FDA clearance.
Forward-looking statements
This release contains certain forward-looking statements,
including "forward-looking" statements made within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995. These
statements are often, but not always, made through the use of words
or phrases such as "believe," "anticipate," "could," "may,"
"would," "should," "intend," "plan," "potential," "predict,"
"will," "expect," "estimate," "project," "positioned," "strategy,"
"outlook", "target" and similar expressions. These include
statements regarding our customer target ambition, New Categories
revenue targets and our ESG targets.
All such forward-looking statements involve estimates and
assumptions that are subject to risks, uncertainties and other
factors. It is believed that the expectations reflected in this
release are reasonable but they may be affected by a wide range of
variables that could cause actual results to differ materially from
those currently anticipated. A review of the reasons why actual
results and developments may differ materially from the
expectations disclosed or implied within forward-looking statements
can be found by referring to the information contained under the
headings "Cautionary Statement" and "Group Principal Risks " in the
2021 Annual Report and Form 20-F of British American Tobacco p.l.c.
(BAT PLC).
Additional information concerning these and other factors can be
found in BAT PLC's filings with the U.S. Securities and Exchange
Commission ("SEC"), including the Annual Report on Form 20-F and
Current Reports on Form 6-K, which may be obtained free of charge
at the SEC's website, http://www.sec.gov and BAT's Annual Reports,
which may be obtained free of charge from the BAT website
www.bat.com .
Past performance is no guide to future performance and persons
needing advice should consult an independent financial adviser. The
forward-looking statements reflect knowledge and information
available at the date of preparation of this release and BAT
undertakes no obligation to update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise. Readers are cautioned not to place undue reliance on
such forward-looking statements.
[1] Subject to applicable information and consultation
requirements in some jurisdictions
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