British American Tobacco p.l.c. (NYSE: BTI) reported that the US business of the BAT Group has acquired the nicotine pouch product assets of Dryft Sciences, LLC, a US Modern Oral nicotine product company. With this acquisition, BAT expands its Modern Oral portfolio within the US from 4 to 28 product variants. The company plans to accelerate growth of its New Category revenues at an increased rate than its total revenue by projecting revenue of £5bn in 2025.
Jack Bowles, CEO of BAT, said:
“Today’s announcement underscores our societal commitment to accelerate our transformation and build A Better Tomorrow. Our multi-category strategy is key to our transformation.
“The addition of Dryft to our US Velo brand is a major step forward, further enhancing our successful vaping and oral portfolio.”
Guy Meldrum, CEO of Reynolds American Inc., said:
“The modern oral category in the US is developing rapidly. We are excited to expand the portfolio of Velo products to meet the evolving preferences of adult consumers.
“We are confident that, leveraging our strong in-market execution capability, the new Velo portfolio will contribute to accelerated growth.”
Jason Carignan, President of DRYFT Sciences, LLC, said:
“We’re proud of the tremendous momentum we’ve built with Dryft and thrilled that our strong product portfolio will now serve to enhance the Velo brand. We remain confident that modern oral innovations like Dryft and Velo will continue to find an adult consumer base seeking alternatives to traditional products.”
The products will be sold under BAT’s global Modern Oral nicotine brand, VELO.