British American Tobacco's Next-Generation Portfolio Is Unfocused but Should Still Deliver Growth

British American Tobacco is the world’s second-largest tobacco company by volume, with cigarette sales to over 180 countries. But with global cigarette consumption declining about 5% per year, BAT has invested in several next-generation products that can deliver nicotine with reduced risk. This strategy makes sense, but we think the firm has placed too many bets, leading to it becoming a “jack of all trades, master of none.”