A worker cuts cannabis
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LONDON – British American Tobacco is looking at selling cannabis products as it seeks to find new sources of income beyond cigarettes and vaping.
Kingsley Wheaton, the company’s head of marketing, told CNBC’s “Squawk Box Europe” on Wednesday that CBD, or cannabidiol, is one of the consumer spaces he considers.
CBD is an active ingredient in cannabis that is derived from the hemp plant, which is a cousin of the marijuana plant. Its health benefits have been widely reported by manufacturers, but scientists say more research is needed.
“In fact, we will think, and go beyond, just about the tobacco and nicotine space,” said Wheaton, who added that CBD is an “exciting growth area for our business for the future.”
Wheaton’s comments come shortly after two cannabis companies listed on the London Stock Exchange, but BAT remains cautious.
“It’s a very different regulatory landscape as it goes around the world and currently many markets remain inaccessible for regulatory reasons,” Wheaton said.
“We draw a very big distinction between CBD and other forms of cannabis,” he said. “We are interested in the CBD. But I think the most important point is that we try to build the portfolio of the future for our business. We try to build the brands of the future. We try to meet the needs of consumers who used to meet a new transformed portfolio. “.
BAT launched a CBD vaporization product in January called Vuse, which has mint, mango, and berry flavors, and has two strengths: 50 mg and 100 mg.
The Vuse product is sold through a pilot in Manchester. “It’s there now,” Wheaton said. “We’re testing, learning and understanding this.”
Shares of British American Tobacco fell 5.7% on Wednesday morning even though the world’s second-largest tobacco company exceeded earnings forecasts before the bell.
He added that the pandemic has allowed BATs to “more radically shake up” their way of doing business and transform from a “tobacco company to a company that is more dedicated to technology.”