Bat – Strong Market Position Driven by Gdbs
StrengthsStrong market position driven by GDBsBAT has built a strong market position over the years. The companys strong market position is builton a diversified GDB portfolio comprising the Dunhill, Kent, Rothmans, Lucky Strike and Pall Mallbrands, which together accounted for 42% of the companys sales volumes in 2014. The companysold 55 billion Dunhill branded cigarettes, 64 billion Kent branded cigarettes, 31 billion Lucky Strikebranded cigarettes, 36 billion Rothmans branded cigarettes and 92 billion Pall Mall branded cigarettesin 2014.The GDB volume grew by 5.8% in 2014, driven by Rothmans and continued strong performance ofthe company’s other GDBs. Dunhill, the companys premium brand, delivered volume growth of2.9% in 2014 across majority of the companys key markets, including Indonesia and Brazil.Furthermore, Pall Mall volumes increased 5.6% in 2014 as a result of significant growth in Pakistan,South Africa, Mexico and Chile. Similarly, Lucky Strike and Rothmans volumes increased 0.8% andBritish American Tobacco p.l.c.
market share as shifts in consumer preferences occur.Strong global footprint reduces business riskBAT is geographically diverse, with a footprint in more than 200 countries across the Americas,Western Europe, Asia-Pacific, and EEMEA regions.The company has 44 cigarette factories locatedin 41 countries. The company has a strong presence in relatively high growth developing marketslike EEMEA and Asia-Pacific. Additionally, the companys revenues across these key regions areevenly spread. In FY2014, BAT generated 27.7% of the total revenues from Asia-Pacific, 26.8%from EEMEA, 24% from Western Europe and 21.4% from the Americas.The companys GDB are marketed in several countries. Dunhill is sold in more than 110 marketsand Pall Mall is sold in more than 100 markets. Kent and Lucky Strike are marketed in more than80 and 70 markets, respectively. In addition, Rothmans is sold in more than 60 countries. BATspresence in several geographical regions ensures a diversified revenue stream and reducesbusiness-related risks. It also makes the company less vulnerable to volatility of a single economy