Industry · Industry
VELO Growth Continues as BAT Pushes Modern Oral Nicotine
BAT's half-year report says Modern Oral revenue rose 65.9% at constant currency, making it the group's largest new category.
British American Tobacco (BAT), which owns VELO, published its half-year report for the six months to 30 June 2026 on 30 July 2026. All figures below are the company's own.
What BAT reported
- Modern Oral, the category that includes VELO nicotine pouches, grew revenue by 65.9% at constant currency.
- Modern Oral is now BAT's largest "New Category", and the company reports a 39.2% volume share in its top markets.
- Revenue across all New Categories rose 18.0% at constant currency.
- Smokeless products made up 19.8% of group revenue, up 1.6 percentage points on full-year 2025.
What comes next
BAT says it plans to roll out Velo Max across the US in the second half of 2026. It expects full-year adjusted diluted earnings per share growth towards the middle of its 5 to 8% range.
Why it matters
The results show how central nicotine pouches have become to large tobacco companies. In the UK, the category faces new rules from 29 October 2026 and an advertising ban planned for June 2027.
Sources
- Half-Year Report for the six months to 30 June 2026, British American Tobacco (30 July 2026)
- BAT lifts annual profit growth target as Velo drives US momentum, Reuters (30 July 2026)
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