To reduce its reliance on the economic sector of tobacco products, British American Tobacco has made investments in China to intensify the search for advanced technologies. If the tobacco giant talks about "next-generation" products, it must be clearly understood that they are products of the vape and heated tobacco.
David O'Reilly, who heads the British American Tobacco research and development division with 94 billion pounds, said he had invested for the first time in what he called " venture capital fund To help its investors " secure the latest technologies ».
According to him " There is a challenge to be in China in the long run, there are a lot of advanced technology developments" , did he declare. " This helps us to engage with the on-site technology ecosystem He adds.
The company started investing in the fund China Materialia Venture Capital earlier this year. The fund has also attracted investment from large global multinationals, including Samsung, GE and BASF.
If British American Tobacco has not revealed the size of its investment, it could still reach 5 million pounds. The tobacco giant hopes that the fund will identify a company or technology that it can use to develop its range of so-called "next generation" products. With the steady decline in tobacco sales, British American Tobacco is in search of new technology.
British American Tobacco became the largest listed tobacco company in the world when it bought rival Reynolds American for 49 billion dollars. This acquisition has increased access to the US market, where the use of e-cigarettes and heated tobacco products is taking off.