Romania is poised to become a key part of British American Tobacco’s (BAT) supply chain for its booming “Next Generation” products, a press release informs. The company has become the largest manufacturer of next generation vapor products in the world outside of the United States. Already covering 12 markets worldwide, it plans to enter 8 new markets later this year and Romania will be at the forefront in enabling the expansion.
BAT now says it is moving production for BAT’s glo iFUSE capsules to its factory in Ploiesti to meet surging demand for its state-of-the-art new products. The EUR 21 million BAT will invest in the Ploiesti factory in 2017 will add to the EUR 250 million already invested in the factory since its creation in 1997, reflecting Romania’s leading status as a hub for research and innovation.
Romania was chosen as the first country in the world where BAT’s glo iFUSE went on sale reflecting the demand from Romanian consumers for groundbreaking new products, the release reads. It is now available across hundreds of shops throughout Romania cementing Romania’s place as a key market for BAT.
“This is a further vote of confidence in Romania from BAT,” company’s official stated.
The global next generation vapor market had doubled its size in the last 3 years and consumers are increasingly using next generation products as an alternative to smoking. Some of the leading medical organizations in the world have stated that next generation products are much safer than traditional tobacco products.
Romanian consumers are helping to drive global demand for these next generation products and BAT has invested nearly EUR 1 billion in research and development in response to this growing global demand.
“I see this as having the potential to offer a triple win: a win for society in reducing the public health impact of smoking; a win for consumers in offering a choice of exciting, less risky products; and a win for our business and our shareholders in generating sustainable value”, said Nicandro Durante, Chief Executive of British American Tobacco.
Romania will continue to play an important role for BAT as the global company implements its plans to double its market footprint in next generation products in 2017 and double it again in 2018, the release concluded.