A leading global brand of Modern Oral nicotine pouches
Nicotine pouches placed under the lip so nicotine can be effectively absorbed.
What is Velo?
Originating in Scandinavia, our flagship Modern Oral brand Velo is now a leading global brand of nicotine pouches. These typically appeal to a broader audience than traditional oral tobacco (snus) because of their attractive price positioning.
Nicotine pouches are small bags that are placed in the mouth between the upper lip and gum, which contain nicotine but no tobacco. They’re a modern and unobtrusive way for smokers and vapers to use nicotine. They also come in a variety of nicotine strengths and flavours to suit a variety of tastes and preferences.
The expansion of the Modern Oral category is driven by a specific set of unique benefits which compliments our New Categories portfolio. It combines discretion, which is important for today’s consumers, and satisfaction of nicotine and flavours in a unique format that can be used anytime, anywhere.
Strengthened by BAT’s proprietary nicotine delivery technology and unique design, our Modern Oral products offer a unique experience and outperform the competition on key attributes such as aroma, flavour and satisfaction.
2022 was a year of further growth in volume (up 21.7% to 4.0 billion pouches) and value for modern oral with revenue up 45% to £398 million. Excluding the impact of foreign exchange, this was an increase of 46% in 2022.
We believe that Modern Oral is an exciting longer-term opportunity to unlock reduced risk products*† in Emerging Markets. We are particularly proud of Velo’s performance in Pakistan, now our third largest Modern Oral market by volume, where we have rapidly achieved national coverage. Enabled by powerful, consumer-centric digital activations, Velo has reached a monthly volume in the country of over 40 million pouches.
* Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.
† Our Vapour product Vuse (including Alto, Solo, Ciro and Vibe), and certain products, including Velo, Grizzly, Kodiak, and Camel Snus, which are sold in the U.S., are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.
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