BAT Says US Crackdown on Illegal Vapes Critical to Sales Growth

British American Tobacco Plc is seeing early benefits from a US crackdown on illicit vaping products, though it stopped short of upgrading its guidance due to uncertainty around the timeline of enforcement efforts.

The maker of Dunhill cigarettes said Tuesday it sees revenue from its Vuse vapour products dropping by the high-single digits this year, which it blamed on competition from illegal products in the US and Canada. Smokeless products, which also include nicotine pouches, make up about 18% of BAT’s revenue.