In order to reduce its dependence on the economic sector of tobacco products, British American Tobacco has just made investments in China to intensify research into advanced technologies. If the tobacco giant talks about “next generation” products, it should be clearly understood that we are talking about vaping products and heated tobacco.
David O'Reilly, who heads the £ 94 billion research and development division of British American Tobacco, said he made his first investment in what he called " venture capital fund To help its investors " secure the latest technologies ».
According to him " There is a stake in being in China for the long term, there are a lot of advanced technology developments" , did he declare. " It helps us engage with the tech ecosystem on site »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 disclosed the size of its investment, it could still reach £ 5million. The tobacco giant hopes the fund will identify a company or technology it can use to develop its line of so-called “next generation” products. With the constant decline in tobacco sales, British American Tobacco is indeed looking for new technology.
British American Tobacco became the world's largest listed tobacco company when it bought rival Reynolds American for $ 49 billion. This acquisition has strengthened its access to the American market, where the use of e-cigarettes and heated tobacco products is taking off.