The local market seemed reassured by yesterday’s quarterly management statement from cigarette giant British American Tobacco (BAT) in spite of a further drop in volumes, with the share falling 0.7% to R656.60. BAT’s business model is built on being able to counter dwindling cigarette volumes with pricing power — especially in its Global Drive Brands (GDB) such as Kent, Lucky Strike, Pall Mall, Dunhill and Rothmans. Dirk van Vlaanderen comments.