A worker collects cannabis
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LONDON – British American Tobacco is looking to sell cannabis products while trying to find new sources of revenue in addition to cigarettes and vaping.
Kingsley Wheaton, the company’s chief marketing officer, told CNBC’s “Squawk Box Europe” on Wednesday that CBD, or cannabidiol, is one of the consumer hotspots it is looking forward to.
CBD is an active ingredient in cannabis derived from the hemp plant, which is a cousin of the marijuana plant. Manufacturers have strongly influenced its health benefits, but scientists say more research is needed.
“We’re definitely going to think, and we’re going further, just to replace tobacco and nicotine,” said Wheaton, who added that CBD is an “exciting growth area for our industry in the future. “
Wheaton’s comments come shortly after two cannabis companies are listed on the London stock exchange, but BAT remains cautious.
“It’s a very different regulatory perspective as you go around the world and many markets are still accessible for regulatory purposes,” Wheaton said.
“We make a big difference between CBD and other types of cannabis,” he said. “We are interested in CBD. But I think the biggest point is that we’re trying to build the portfolio of the future for our business. We are trying to build the logos of the future. We strive to meet the needs of our customers. that smoking would meet a new transformation package. “
BAT launched a CBD vaping product called Vuse in January that comes in a mint, mango, and lizard flavor, and has two strengths – 50mg and 100mg.
Vuse’s product is being sold through a pilot in Manchester. “It’s there now,” Wheaton said. “We’re experimenting and learning and understanding that.”
British American tobacco shares fell 5.7% on Wednesday morning despite the world’s second-largest tobacco company releasing profit estimates ahead of the bell.
He said the pandemic had allowed BAT to “radically shake” the way it does business and transformed from a “tobacco company into a more technology-intensive company.” “