British American Tobacco
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{{Infobox_Company |
company_name = British American Tobacco|
company_logo = [[Image:British American Tobacco logo.svg|200px|BAT Logo]] |
company_type = [[Public company|Public]] |
company_slogan = N/A|
foundation = [[1902]] |
location = {{flagicon|UK}} [[London]], [[England]], [[UK]]|
key_people = [[Jan du Plessis]], Chairman <br> Paul Adams, Chief Executive|
num_employees = 55,000 ([[2007]])|
revenue = [[Pound sterling|£]]26.234 billion ([[2007]])|
operating_income = [[Pound sterling|£]]2.905 billion ([[2007]])|
net_income = [[Pound sterling|£]]2.287 billion ([[2007]])|
industry = [[Tobacco]]|
products = [[Tobacco]]|
homepage = [http://www.bat.com/ www.bat.com]
}}
'''British American Tobacco Plc''' ({{lse|BATS}}, {{amex|BTI}}, [[KLSE]]: BAT) is the second largest listed tobacco company in the world. It is based in [[London]], [[England]] and is a constituent of the [[FTSE 100 Index]] with a [[market capitalisation]] of over £37 billion as of March 2007.
==History==
Established in 1902, when the [[United Kingdom]]'s [[Imperial Tobacco Company]] and the [[American Tobacco Company]] of the [[USA]] agreed to form a joint venture, the British-American Tobacco Company Ltd.<ref>[http://www.bat.com/group/sites/UK__3MNFEN.nsf/vwPagesWebLive/DO52ADGE?opendocument&SKN=3 British American Tobacco: Our History]</ref> The parent companies agreed not to trade in each other's domestic territory and to assign trademarks, export businesses and overseas subsidiaries to the joint venture. [[James 'Buck' Duke]] became its chairman.<ref name="earlyyears">[http://www.bat.com/group/sites/UK__3MNFEN.nsf/vwPagesWebLive/DO5DTGBV?opendocument&SKN=3 British American Tobacco: The Early Years 1902-1932]</ref> The British American Tobacco business thus began life in countries as diverse as [[Canada]], [[China]], [[Germany]], [[South Africa]], [[New Zealand]] and [[Australia]], but not in the [[United Kingdom]] or [[USA]].
In [[1911]] the American Tobacco Company sold its share of the company. Imperial Tobacco gradually reduced its shareholding, but it was not until [[1980]] that it divested its remaining interests in the company.<ref name="earlyyears"/>
In [[1976]] the group companies were reorganized under a new holding company, '''B.A.T Industries'''. In 1994 BAT acquired its former parent, [[American Tobacco Company]] (though reorganised after anti-trust proceedings). This brought the [[Lucky Strike]] and [[Pall Mall (cigarette)|Pall Mall]] brands into BAT's portfolio.<ref>[http://query.nytimes.com/gst/fullpage.html?res=9A03E3DA1739F936A35751C1A962958260 BAT in Court to defend American Tobacco deal]</ref>
In [[1999]] it acquired [[Rothmans International]],<ref>[http://query.nytimes.com/gst/fullpage.html?res=9A02E3DD1238F93AA35757C0A96F958260 Rothmans acquisition backed by BAT unit]</ref> which included a share in a factory in [[Burma]]. This made it the target of criticism from human rights groups. It sold its share of the factory on [[November 6]], [[2003]] after an "exceptional request" from the British government.<ref>[http://www.commondreams.org/headlines03/1107-07.htm Tobacco Giant withdraws from Burma]</ref>
In [[2003]], BAT acquired '''Ente Tabacchi Italiani (ETI)''' S.p.A, Italy's state tobacco company. The important acquisition would elevate BAT to the number two position in [[Italy]], the second largest [[tobacco]] market in the European Union. The scale of the enlarged operations would bring significant opportunities to compete and grow ETI's local brands and BAT's international brands.<ref>[http://findarticles.com/p/articles/mi_qa3715/is_200310/ai_n9321538 BAT intends to acquire Italian tobacco firm]</ref>
In January [[2007]], BAT closed its remaining UK production plant in [[Southampton]] with the loss of over 600 jobs. However, the global Research and Development operation and some financial functions will continue on the site.<ref>[http://www.forbes.com/home/feeds/afx/2005/07/13/afx2136445.html BAT closing two UK and Ireland factries]</ref>
==Tobacco brands==
International [[Brand]]s include [[Dunhill (cigarette)|Dunhill]], [[Kent (cigarette)|Kent]], [[Lucky Strike]], [[Pall Mall (cigarette)|Pall Mall]], [[Vogue (cigarette)|Vogue]], [[Rothmans International plc|Rothmans]], [[Stuyvesant|Peter Stuyvesant]], [[Benson & Hedges]], [[Winfield (cigarette)|Winfield]], [[John Player & Sons|John Player]], [[State Express 555]], [[KOOL (cigarette)|KOOL]], and [[Viceroy (cigarette)|Viceroy]]. However, British American Tobacco does not necessarily own the rights to all of these brands in every nation they are marketed.
Local brands owned by British American Tobacco include, [[Belmont]] ([[Chile]] and [[Venezuela]]), [[Jockey Club (cigarette)|Jockey Club]] ([[Argentina]]), [[W. D. & H. O. Wills Holdings Limited|Stradbroke]] ([[Australia]]), [[du Maurier (cigarette)|du Maurier]] ([[Canada]]), [[North State]] ([[Finland]]), HB ([[Germany]]), [[Sopianae]] ([[Hungary]]), [[W. D. & H. O. Wills|Wills]] ([[India]]), [[Ardath (cigarette)|Ardath]] ([[Indonesia]]), [[Carrolls]], [[Carrolls Kings]], [[Grand Parade (cigarette)|Grand Parade]], [[Sweet Afton (tobacco)|Sweet Afton]], [[Major (cigarette)|Major]] ([[Ireland]]), [[Boots]],[Alas] ([[Mexico]]), [[Gold Leaf]] ([[Pakistan]]), [[Jan III Sobieski]] ([[Poland]]), [[Yava Gold]] ([[Russia]]), [[Courtleigh]] ([[South Africa]]), [[Parisienne (tobacco)|Parisienne]] ([[Switzerland]]), and [[Xon]] ([[Uzbekistan]]), Craven 'A' ([[Vietnam]] and [[Jamaica]]) as well as BAT [[snus]].
On [[June 11]], [[2006]], [[R. J. Reynolds Tobacco Company]] announced that it would be manufacturing Camel brand [[snus]] in [[Sweden]] in partnership with British American Tobacco; the product would be test-marketed in [[Portland, Oregon]] and [[Austin, Texas]] by the end of the month.<ref>[http://www.salem-news.com/articles/june112006/smokeless_ashtrays_61106.php Reynolds Makes Big Move Into Smokeless Tobacco]</ref>
==Other operations==
BAT has diversified into various fields at different times in its history. Its U.S. retail division, [[BATUS Inc.|BATUS Retail Group]], acquired [[Gimbel's]], [[Kohl's]], and [[Saks Fifth Avenue]] in the 1970s and [[Marshall Field's]] and its divisions in 1982. The United Kingdom retail chain [[Argos (retailer)|Argos]] was purchased in 1979. Kohl's grocery stores were sold to [[The Great Atlantic and Pacific Tea Company|A&P]] in 1983. In 1986, BATUS sold the Kohl's department stores and two Marshall Field's divisions, [[The Crescent]] and [[Frederick & Nelson]]; BATUS closed Gimbel's the same year, with many locations being absorbed by sister division Marshall Field's. In 1990 Marshall Field's was sold to Dayton Hudson Corporation (now [[Target Corporation]]), [[Ivey's]] (another Marshall Field's division) was sold to [[Dillard's]], Saks Fifth Avenue was sold to [[Investcorp|Investcorp S.A.]], and Argos was demerged (Argos was acquired by previous parent company [[GUS plc]] in 1998).
The group was a major financial services company with the acquisitions of [[Eagle Star]] (1984), [[Allied Dunbar]] (1985) and the [[Farmers Group, Inc.]] (1988). Around 1996 British American Tobacco merged their financial operations into a single operating unit, [[British American Financial Services]] (BAFS). This division was sold and merged with [[Zurich Insurance Company]] in 1998 to form the [[Zurich Financial Services|Zurich Financial Services Group]].
==Advertising and promotion==
British American Tobacco (BAT) has been a stout defender of the principle that if a product is legally on sale in a market then it should also be legal to advertise that product's brands. Increasing restrictions on [[tobacco advertising]] around the world have limited the company's ability to promote their brands in recent times, especially in their traditional developed world markets.
BAT has found many imaginative ways over the years to keep its brands in the public eye. As recently as 1996 they secured an arrangement to sponsor the [[Cricket World Cup]] which was branded the "Wills World Cup" and thereby achieved a high level of brand recognition for the Wills cigarette brand in India where young cricket fans were a key target market.
BAT also sponsor the London Symphony Orchestra.<ref>[http://lso.co.uk/aboutus/supportingthelso/ourpartners London Symphony Orchestra]</ref>
==Motor sport==
The success of [[Formula One]] motor racing has largely been built on tobacco sponsorship, including that of BAT. In 1997 BAT brought its participation in the sport to new levels with the purchase of the [[Tyrrell Racing|Tyrrell]] team for approximately £30 million. The team raced as Tyrrell for the 1998 season before being renamed as [[British American Racing]] (BAR). BAT used the team to advertise major brands, particularly [[Lucky Strike]] and [[State Express 555]].
Although [[Formula One]] is an exceptionally expensive sport, for BAT the high cost of running an [[Formula One|F1]] team was justified as a promotional expense because there were few other opportunities for brand promotion. However in 2005 a [[European Union]] (EU) directive was brought into force which required national governments to legislate to prevent tobacco sponsorship. The livery of cars competing at circuits outside of EU jurisdiction can continue (in some cases) to promote tobacco brands but these opportunities are declining as anti-tobacco legislation begins to bite.
In 2004 BAR announced that technology partner [[Honda]] had purchased a 45% stake and in September 2005 it announced that [[Honda]] would be buying the remaining 55% stake. The team raced as [[Honda F1|Honda Racing F1 Team]] in 2006, the last year of the [[Lucky Strike]] sponsorship before leaving the sport. For the [[2006 Formula One season|2006 season]], the team was renamed as [[Honda F1|Honda F1 Racing Team]], with BAT only advertised at a couple of races. All links between the two companies were severed for [[2007 Formula One season|2007]].
==Controversy==
The company was recently the subject of a BBC2 documentary, in which [[Duncan Bannatyne]] investigated the marketing practices of the company in Africa and specifically the way the company targets younger Africans with branded music events, competitions and the sale of single cigarette sticks. Many of the practices uncovered by Bannatyne appeared to break BAT's own code of conduct and company standards. Towards the end of the programme, Bannatyne interviewed Dr Chris Proctor, Head of Science and Regulation, in which Proctor admitted that advertisements targeting children from three African countries were 'disappointing'.<ref>[http://blogsofbainbridge.typepad.com/africa/2008/06/tobacco-giant-b.html Tobacco Giant breaks Youth Code]</ref>
==References==
{{reflist}}
==External links==
* [http://www.bat.com British American Tobacco]
*[http://biz.yahoo.com/ic/57/57280.html Yahoo! - British American Tobacco plc Company Profile]
*[http://www.gstock.com/quote/bti.html British American Tobacco plc historical stock chart]
* [http://www.guardian.co.uk/business/story/0,3604,1079749,00.html BAT 'dragged out' of Burma]; The Guardian; November 7, 2003
* [[George Monbiot]], ''[[The Guardian]]'', [[23 August]] 2005, [http://www.guardian.co.uk/comment/story/0,3604,1554302,00.html "Smoke and mirrors"]
{{FTSE 100 Index constituents}}
[[Category:Companies established in 1902]]
[[Category:Tobacco companies of the United Kingdom]]
[[Category:Companies listed on the London Stock Exchange]]
[[Category:Companies based in London]]
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