The development history of British American Tobacco Group

On September 29th, 192, in order to quell the fierce trade war, British Imperial Tobacco Company and American Tobacco Company jointly established a joint venture-British American Tobacco Company.

according to the agreement, the two companies will not be allowed to trade in each other's domestic market, but they have the right to use each other's brands and trademarks within their respective markets. The businesses of the two companies outside the "local" market in Britain or the United States are all managed by British American Tobacco Company, so that the new company's business covers many countries such as Canada, Japan, Germany, Australia, South Africa and China.

James Duke, a meticulous and self-taught business tycoon, became the first chairman of British American Tobacco. His strategy is to hire the best talents, develop better products, reduce product prices as much as possible, implement mechanized production, organize reasonably and promote products.

In the first 1 years, British American Tobacco developed rapidly: it entered the West Indies in 194; Entered Ceylon and Egypt in 195; In 196, he entered the Netherlands, Belgium, Sweden and Norway; In 198, it entered Finland, Indonesia and East Africa; He entered Malaya (today's Malaysia) in 1911.

By 191, British American Tobacco had sold more than 1 billion cigarettes, and the company's profits soared.

in p>1911, American tobacco company gave up its share in the joint venture. British American Tobacco is listed on the London Stock Exchange, and British investors have subscribed for most of the shares held by its American parent company. Since then, BAT has been free to operate independently around the world-but due to the regional agreement with Imperial Tobacco, BAT cannot operate in the UK.

In p>1914, when World War I broke out, the army's large demand for tobacco pushed the company's production capacity to the limit. In 1915, British American Tobacco sold 25 billion cigarettes.

during the first world war, British American Tobacco established an integrated corporate culture, which changed the previous situation of fragmented management. At the same time, because the male labor force was transferred to participate in the war, the company began to recruit female employees, which changed the company's employee structure.

The vast market of British American Tobacco benefits from the continuous expansion of the company's business. In 1921, Cigarrera Bigott Sucs was founded in Venezuela. In the following years, BAT made acquisitions in Chile, Mexico and Central Africa.

Duke resigned in 1923 and was succeeded by Hugo Cunliffe-Owen, who was also a talented and decisive leader. Mr. Hugo's first move after he took over as chairman was to acquire the overseas business of Ardath Tobacco in 1925 and obtain the trademark right of State Express.

British American Tobacco entered the American market in 1927 after acquiring Brown and Williamson, small companies in North Carolina.

In p>1927, the 25th anniversary of the founding of British American Tobacco Company (BAT), it has become one of the leading companies in Britain, with 12 subsidiaries and more than 75, employees worldwide. The company established itself in the American market and annexed Ardath, its only international competitor. British American Tobacco has established a good business in all continents, with an average annual profit of more than 6 million pounds.

Although the economy was sluggish, before 1932, BAT had set up factories in most countries where there was no government monopoly. In the same year, the company established an independent distribution network and later evolved into a mature subsidiary; British American Tobacco has grown and processed tobacco leaves in India, China, Brazil and Nigeria, and acquired German company Haus Bergmann. During the 193s and 196s, the First World War and the decolonization movement had a great impact on British American tobacco.

after the drastic changes in World War II and the loss of business in China, the company lost several terminal markets one after another. However, global sales still maintain the growth momentum.

World War II (1939-1945)

Like World War I, World War II had a profound impact on British American Tobacco. The company's business in Europe was seriously damaged. In the Far East, British American Tobacco lost contact with companies occupied by the Japanese. In 1937, the company sold more than 55 billion cigarettes in China. Since then, due to the Japanese invasion, the sales of British American Tobacco in China have been suspended for more than four years.

during the great depression, the company's profit remained at around 5.5 million pounds. By 1942, it had plummeted to 3 million pounds. Since then, until the end of the war, the company's profits have always remained at this level.

Post-war society

After World War II, the trade environment was extremely difficult. British American Tobacco needs to face inflation, high tobacco prices and rebuild assets lost in the war, all of which have frustrated the company's profits.

in p>1952, the 5th anniversary of the founding of British American Tobacco, the company's operating environment began to change. The war turmoil eventually caused the company to lose several end markets, including Egyptian, Indonesian and China. Despite the political turmoil in some areas, the company has achieved good results.

new leadership

in p>1953, Duncan Oppenheim became the chairman of the company, which opened a new era of development for British American Tobacco. Oppenheim's courteous demeanor and extraordinary legal wisdom enabled the company to maintain steady development in the following 13 years.

from p>1953 to 1955, British American Tobacco ranked third among companies in Britain, France and Germany in terms of company profits. In 196, the company's global sales volume was 28 billion pieces, and its trade profit exceeded 58 million pounds.

In p>1956, British American Tobacco acquired Benson &; Hedges' overseas business. Like State Express, Benson &; Hedges has developed into the cornerstone of the Group's leading position in the international brand market.

diversified development

in the early 196s, British American Tobacco began to set foot in the paper, pulp, cosmetics and food industries. The company first bought shares in Wiggins Teape and Mardon Packaging. In 1964, the company also acquired Tonibell Ice Cream Company and Lenthéric Perfume Company in Britain. Brown Williamson and British American Tobacco Company in South Africa and Australia also started to invest in the food industry.

in p>1966, British American Tobacco acquired the cigar manufacturer Henri Wintermans, and the company's profit exceeded 1 million pounds for the first time. In the same year, the new chairman of the company, Denzil Clarke, took over as chairman, which further accelerated the acquisition of the company. By 197, the business of British American Tobacco had spread to 5 countries and regions around the world.

In the late 197s, BAT Industries was established and promoted diversified development. Entered the field of financial services in the 198s. In 1989, the group abandoned its business in these fields and re-adjusted its focus to tobacco business.

Acquisition

In p>197, under the leadership of new chairman Richard Dobson, BAT opened 14 factories in 5 countries and regions. Two years later, British American Tobacco revoked the geographical restriction agreement signed with Imperial Tobacco Company in 192, thus gaining the exclusive ownership of its original brands (including State Express) in Britain and Western Europe.

British American Tobacco devoted itself to developing new business, and finally decided to develop the retail industry. In the 197s, it acquired Argos in Britain and Saks Fifth Avenue in the United States.

in p>1976, the group was completely reorganized. Under the leadership of the new chairman, Peter Macadam, the operation of the group began to be controlled by the new holding company, British American Tobacco Industry Group. In two years, the British American Tobacco Industry Group has developed into the third largest enterprise in Britain and the largest tobacco dealer in the free world, selling 5 billion cigarettes every year.

In p>1977, the 75th anniversary of the founding of British American Tobacco, Ma Kadam commented: "We experienced the baptism of two world wars and lost our business in China and real estate in many other places ... But we have become stronger, and I think our current situation is better than ever."

Meanwhile, Brown Williamson Company invested 15 million US dollars to open a new factory in Macon, Georgia, USA. By the end of 197s, British American Tobacco exported cigarettes to China, which was the first time that British American Tobacco returned to China cigarette market after its cigarette business was nationalized in China 3 years ago.

in the late 197s, by acquiring Lorillard's international business, BAT gained several important brands, including brand building.

restructuring business

in p>1981, the group's production capacity increased steadily, and the trade profit of tobacco business has tripled in the previous 1 years, exceeding 463 million pounds.

In p>1984, British American Tobacco Industry Group acquired Eagle Star; Acquired Allied Dunbar； a year later; In 1988, it acquired Farmers Group. In 1989, Anglo-American Group became the largest insurance group in Britain. In the same year, Anglo-American Group's pre-tax profit rose by 24%, exceeding 2 billion pounds, but it was acquired by malicious means. Subsequently, the Group decided to re-focus on tobacco and financial services and divest other businesses.

new opportunities

in the 199s, the economy gradually opened up, the state monopoly system began to disintegrate, and many new trade opportunities appeared in Central Europe, Eastern Europe and the Far East. In 1992, British American Tobacco acquired Pecsi Dohanygyar in Hungary, and since then, it has carried out a large number of acquisition activities and established many joint ventures, including Ukraine, Uzbekistan, Czech Republic, Russia, Romania and Poland.

in p>1994, British American Tobacco acquired American Tobacco Company, completed another important acquisition, and acquired the ownership of Lucky Strike and Pall Mall brands.

Back to basics

In p>1998, Anglo-American Group spun off its financial services business. In the same year, the group acquired Cigarrera La Moderna, a leading tobacco company in Mexico.

In p>1998, British American Tobacco Pte Ltd became an independent listed company on the London Stock Exchange, with Martin Broughton as its chairman. In 1999, British American Tobacco, the world's second largest tobacco company, announced the merger with Lofumen International Tobacco Company, the world's fourth largest tobacco company. Through this merger, BAT has absorbed several important brands (including Dunhill).

In the new millennium

After the merger with Lok Fu Men, the group's equity in the Canadian market has undergone major changes. Now Canada has become the group's most profitable market. In 2, Love Gate sold its shares in Canada, acquired the remaining shares of Imasco, a British American tobacco joint venture, and sold its non-tobacco business. Now, the Canadian business has been reorganized into a pure tobacco subsidiary wholly owned by British American Tobacco, called Imperial Tobacco Canada.

in p>21, the group announced a series of new investment plans involving Turkey, Egypt, Vietnam, South Korea and Nigeria.

in p>22, the centenary of the founding of British American Tobacco. The Group reaffirmed its confidence in its employees, its own products and the tobacco industry, and announced that it would start new investments in Nigeria, South Korea and Turkey.

In the same year, British American Tobacco became the first tobacco company to publish a social report.

In p>23, BAT acquired the control of Tabacalera Nacional in Peru, and won the bid for ETI, the former Italian State Tobacco Monopoly Bureau, and Duvanska Industrija Vranje Tobacco Company in Serbia. In addition, British American Tobacco also proposed a plan to merge the American business of its American subsidiary Brown Williamson with RJ Renault Tobacco Company.

in November p>23, Martin Brighton announced that he would retire from British American Tobacco in June 24. As of June, 24, Barrington had worked for British American Tobacco for ten years, including the first five years as the group president and the last five years as the chairman of the group board.

paul adams took over as the group president in July 24, and Jan du Plessis served as the non-executive chairman.

In p>24, Brown Williamson's American business was formally merged with RJ Reynolds Tobacco Company, and Reynolds American Company was established. The new company has a stronger and more stable business, and British American Tobacco owns 42% of the shares.

In p>25, British American Tobacco tried to sell snus, a Swedish smokeless product, in Sweden and South Africa, which gave smokers a chance to enjoy smokeless tobacco with lower risk.

In p>26, the shops selling snus in Sweden and South Africa were further expanded, and Toscano cigars were sold in Italy. In October of the same year, the Group withdrew from the sponsorship of F1 racing cars as a long-term commitment to the International Marketing Guidelines signed in 21.

in p>27, snus expanded to the Canadian market for trial sale, and we sold some trademarks of pipe tobacco to Danish Orlik tobacco company. In May 27, we sold the Belgian cigar factory and its related brands to the cigar department of Skandinavisk Tobakskompagni Company.

in p>28, the group won the auction of cigarette assets of Turkish state-owned tobacco company Tekel at a high price of $1.72 billion. Subsequently, it obtained the right to sell Skandinavisk Tobakskompagni cigarettes and smokeless products snus.