OUR STRATEGY

Our 2030 plan will make us more consumer-centric, focused and agile

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Our 2030 strategy has two focused objectives


Drive sustainable value in combustibles

We focus on the five markets that are our largest profit contributors. The United States, Germany, United Kingdom, Spain and Australia represent c.70% of adjusted tobacco operating profit. Within these markets, we have identified specific areas for investment by category, brand and sales channel. We aim to maintain our aggregate market share across these five markets to drive sustainable growth and cash delivery. We apply the same performance-driven, consumer-led approach to our wider portfolio of markets.

Build scale in next generation products

Our fast-growing NGP business is founded on deep insights into our consumers, attractive propositions across all categories, and products available in markets where the category has been created and we have existing distribution. We are further developing our understanding of consumers, creating more differentiated brands and enhancing our sales capabilities. We are committed to annual double-digit net revenue growth in NGP, building a more significant NGP business which contributes profit and cash.




Strategic enablers


1. Differentiated consumer
and brand capabilities

Through blending global FMCG experience with deep tobacco knowledge, we have built a distinctive consumer team, who have developed our capabilities in insights, brand building and innovation. We see opportunities to create further value by refining and focusing our approach. This includes deeper insights into specific target groups, the development of more differentiated, ‘challenger’ brands, and innovation targeted to address the most important needs of our consumers.


2. High-performance culture

Responding to a legacy of global acquisitions which had been loosely integrated, we have been creating a culture where accountabilities are clear, deep collaboration across geographies is fostered and long-term thinking is enabled. Our data shows this emerging performance culture has been a driver of commercial success. We see opportunities to unlock higher performance by investing selectively in leadership skills, improving business planning and introducing more connected ways of working.


3. Simplified, efficient and
data-led organisation

We have begun major data programmes, including the introduction of a new global enterprise resource planning platform, and the full benefits of these will be felt during the next strategic period. We have also now identified further opportunities to create a simpler, leaner and more agile organisation. We will leverage our global scale, drive efficiencies in our supply chain through manufacturing excellence, and enable our people to make more informed decisions through better use of data.


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