These days tobacco companies no longer carry the “sin share” badge but are increasingly given the more ominous “death share” tag. Ethical issues aside, the investment proposition, on paper, is preposterous: imagine investing in a company offering a much maligned product to a shrinking consumer market. It’s even more difficult when you consider that brand marketing opportunities for purveyors of cigarette brands are severely restricted and product pricing is loaded with ever rising excise duties. Dirk van Vlaanderen discusses how pricing and gaining profitable market share are crucial elements for BAT in an industry suffering volume declines.
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