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BAT: H1 2026 Trading Update
British American Tobacco (BAT) has re-iterated its full-year guidance, expecting performance to land at the lower end of its medium-term targets of 3-5% revenue and 4-6% adjusted profit growth. While the company is navigating a decline in heated tobacco, it confidently upgraded its overall New Category growth forecast from low double-digits to the mid-teen. BAT revised its global cigarette industry volume decline from 2% to 2.5%, mainly due to the headwinds in Bangladesh, and underlined that the bottom-line delivery will be skewed toward the second half of the year. Additionally, BAT plans to launch VELO Max and flavored VUSE vapes in the U.S. later this year.
Read More: BAT: H1 2026 Trading Update
Philip Morris International: News
Philip Morris International (PMI) has updated its full-year 2026 reported EPS forecast to $7.18–$7.33, primarily to reflect currency shifts and a $500 million non-cash impairment charge from its Canadian affiliate. Nevertheless, PMI’s core operational strength remains intact with underlying organic growth securely anchored at 7.5% to 9.5%, excluding adjustments and FX.
Read More: Philip Morris International: News
ZYN USA
Philip Morris International (PMI) has confirmed the U.S. launch of ZYN ULTRA in June 2026, a strategic move to combat recent market share losses to rivals like VELO Plus. To better compete in the fast-growing moist segment, ZYN ULTRA will feature 9mg and 11mg strengths in a slim, moist format, delivering 20 pouches per can at a lower price-per-pouch than the flagship ZYN lineup. PMI noted that additional portfolio extensions are slated for the remainder of the year. In parallel, the company is rolling out a limited-edition, stars-and-stripes themed America250 ZYN Metal Storage Can to commemorate the upcoming national milestone.
Read More: ZYN USA
USA: Nicotine Pouch Tax
New York has officially signed a steep 75% wholesale tax on nicotine pouches into law, a move projected to generate $50 million annually for the state’s Health Care Reform Act fund by fiscal year 2028. While public health advocates support the tax as a crucial step to curb youth nicotine use, the industry has fiercely pushed back. Philip Morris International (PMI) and retail representatives call the hike excessive, warning it will make smoke-free alternatives less affordable for adult smokers trying to quit while inadvertently fueling an unregulated illicit market.
Read More: USA: Nicotine Pouch Tax
UK: Vapes
One year after the UK’s June 2025 single-use vape ban, vape waste has declined by 23%, yet a staggering 6.3 million devices and pods are still thrown away weekly. Environmental non-profit Material Focus reports that while the ban successfully pushed consumers toward rechargeable models, many users are simply treating these new devices as disposables and tossing them out entirely. This ongoing discarding poses severe fire risks in waste facilities due to lithium-ion batteries, leading to urgent calls for stricter retailer take-back enforcement and expanded public recycling access.
Read more: UK: Vapes
Patents Wars
The U.S. International Trade Commission has revived a major vaping battle by agreeing to review a ruling that previously invalidated a key JUUL nicotine-salt patent. If JUUL wins this review, it could continue to block U.S. imports of Altria-owned NJOY’s flagship devices. The outcome is critical for Altria, which needs to neutralize JUUL’s legal leverage to re-launch NJOY in the U.S. market.
Read More: Patents Wars
Australia: Cigarette Market
Australia’s illicit market for tobacco and nicotine products has exploded, with unregulated options now accounting for a staggering 80% of total consumption – up from just 12% in 2017. In addition to commercial market for new nicotine products being fully illicit, new data from the Australian Bureau of Statistics reveals that heavy taxes pushing legal cigarette packs past A$50 have driven consumers to cheaper A$25 smuggled alternatives. Consequently, while legal sales have plummeted, overall nicotine consumption actually jumped nearly 40%, highlighting a massive shift entirely into unregulated channels.
Read More: Australia: Cigarette Market
International: Illegal Cigarettes
Europe’s illicit cigarette market has climbed past the 11% threshold, fueled by a surge in sophisticated counterfeit operations. According to KPMG’s latest annual report, this surge in unregulated trade cost governments an estimated €22.4 billion in lost tax revenues in 2025, with France, Ireland, and the UK reporting the highest consumption rates. Meanwhile, alternative categories like heated tobacco remain overwhelmingly legitimate, with illicit products accounting for a mere 1.2% of that market.
Read More: International: Illegal Cigarettes
ITC: News
ITC shares have tumbled past the critical ₹300 support level to around ₹280, marking their lowest point since mid-2022. The sharp sell-off comes despite stable FY26 results, as investors are concerned with a massive cigarette tax shock from February 2026 that forces a tough corporate choice between shrinking profit margins or dropping sales volumes. This pressure is further compounded by the rising threat of illicit trade and the reality that ITC’s growing FMCG arm isn’t yet profitable enough to cushion a tobacco slowdown. Moving forward, the stock’s recovery will heavily depend on whether upcoming quarters prove cigarette volume resilience and sustained FMCG margin expansion.
Read More: ITC: News
Tobacco Regulation: European Union
The European Parliament’s ECON committee has backed a more gradual overhaul of the EU Tobacco Excise Directive, proposing lower tax increases and longer transition periods than the European Commission’s original plan. While the framework will still introduce first-time EU minimum taxes on vapes and nicotine pouches, the committee opted for lower rates to prevent a surge in illicit trade. The committee also recommended pushing the start of an automatic inflation-adjusted tax mechanism back to 2036, ahead of a full parliamentary vote scheduled for June 17, 2026.
Read More: Tobacco Regulation: European Union
