British American Tobacco PLC
BATS: XLON (GBR)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| GBX 1,394.00 | Vdp | Rfkyjnjcx |
British American Tobacco’s Diversified Alternatives Approach Fails to Buoy Its Competitive Edge
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Business Strategy and Outlook
British American Tobacco is the world’s second largest tobacco company by volume, with cigarette sales to over 180 countries. But with global cigarette consumption declining about 5% per year, BAT has invested in several next-generation products that can deliver nicotine with reduced risk. This strategy makes sense, but we think the firm has placed too many bets, leading to it becoming a “jack of all trades, master of none.”