New changes at BAT aim to streamline and accelerate its transformation. Photo credit: BAT
Following a strategic review of its regions, business units, and global functions, BAT will implement a number of senior management changes and a new regional structure to both streamline, and accelerate, the transformation of its business.
Since the launch of the purpose-led A Better Tomorrow™ strategy in 2020, BAT has made significant progress in building a New Categories consumer base, growing powerful global brands and developing organizational capabilities for the future.
The new structure will increase the efficiency of BAT’s geographical footprint, optimize market prioritization and will be based on fewer, larger business units, enabling even greater collaboration, and accelerated decision-making across BAT.
Jack Bowles, BAT c.e.o. commented: “As our transformation journey towards our strategic milestones gathers pace, we need to further sharpen our operating model, streamline our business to drive agility, and continue to enhance organizational capabilities. As part of our commitment to building A Better Tomorrow, the changes we have announced today will drive increased focus, accelerate our transformation, and fuel growth as we strengthen the foundations of our future as a category-led enterprise.”
Following this strategic review, underpinned by distinct market-archetypes, the number of regions will be reduced from four to three, and the number of business units from 16 to 121, while also accelerating the company’s market exit plans.
BAT’s new structure will consist of three regions: USA (Reynolds American Inc.), Americas & Europe (AME), and Asia Pacific, Middle East & Africa (APMEA).
In addition, two new management board roles will be created in order to ensure clarity of ownership, accountability and focus; chief transformation officer (c.t.o.); and director, combustibles.
The c.t.o. will be responsible for driving faster transformation, accelerating greater capability build in key areas, and enabling an even faster, simpler and more agile organization. The role of director, combustibles will lead the focus on driving value from combustibles to fuel further investment in new categories.
These structural changes and the following appointments and other changes reflect the quality, depth, and diversity of management within BAT and will take effect from 1 April 2023:
Johan Vandermeulen, currently regional director, Europe, will be appointed to the new role of c.t.o.
Luciano Comin will be appointed to the new role of director, combustibles. Frederico (Fred) Monteiro will be promoted to the management board as regional director, Americas & Europe Region (AME). Guy Meldrum will continue to lead BAT’s largest business in the USA as president, Reynolds American Inc.
Michael Dijanosic will take on an expanded role as regional director, Asia Pacific, Middle East & Africa (APMEA). Javed Iqbal, director, digital and information, will work with the regional directors and c.t.o. to ensure that the digital & information agenda is fully aligned with BAT’s corporate transformation.
The president, Reynolds American Inc., regional directors for AME and APMEA, and the director, digital & information, will report to the c.t.o. The director, combustibles will report to the chief growth officer.
Further, Dr. David O’Reilly, director, research and science, will step down from the management board on 28 February 2023 and leave BAT with effect from 31 May 2023 to pursue other interests.
O’Rielly joined the management board on 1 January 2012, and has been instrumental, both internally and externally, in driving the science agenda that has underpinned BAT’s transformation. He will be succeeded by Dr. James Murphy, currently executive vice president of scientific research and development at Reynolds American Inc.
Murphy has been with BAT for over 17 years and held a number of senior roles in the Centre in r&d, operations, and marketing as well as in the Americas and Sub-Saharan Africa region. He joined the management board as the director, research and science designate, with effect from 1 February 2023, and will assume the role of director, research and science, reporting to the c.e.o., on 1 March 2023.