A 120-year-old tobacco company has changed its course. It is clearing the smoke and embracing technology. 슬롯사이트 is now designing a future beyond tobacco. Fortune Korea sat down for an exclusive interview with CEO Tadeu Marroco.

By Darin Kim

British American Tobacco (슬롯사이트), founded in London in 1902, has led the global tobacco industry for over 120 years. The company has built iconic global brands such as Dunhill, Kent, and Lucky Strike—names recognizable even to non-smokers. In the traditional tobacco market, 슬롯사이트 maintains a strong position as one of the industry leaders.

However, based on this description alone, 슬롯사이트 is at a pivotal moment in need of transformation. According to the World Health Organization (WHO), the global smoking rate, which exceeded 32% in 2000, has now dropped to below 20%. Countries around the world are implementing various policies to reduce smoking rates, such as graphic health warnings, tax hikes, advertising restrictions, raising the legal smoking age, and expanding anti-smoking education.

France, once known as a “nation of smokers,” introduced new regulations in July banning smoking in certain public outdoor spaces in an effort to shift public sentiment. Smoking remains the leading preventable cause of death worldwide, and governments continue efforts to lower smoking rates. Amid these global trends, the tobacco industry is clearly shrinking.

But something seems unusual—슬롯사이트’s performance is paradoxically on the rise. Last year, the company recorded £25.9 billion in revenue, a 1.3% increase from the previous year based on constant currency. This growth reflects 슬롯사이트’s swift transition to a portfolio focused on non-combustible products, aligning with new consumer trends and regulatory changes.

In fact, 슬롯사이트 is turning the industry’s crisis into an opportunity, pursuing sustainable growth through bold innovation. Its purpose, A Better Tomorrow™, marks the starting point of this strategic shift. Far from being just a marketing slogan, it represents a genuine commitment to offering better alternatives to cigarettes through technological innovation and contributing positively to public health.

At the core of this transformation is 슬롯사이트’s commitment to accelerate Tobacco Harm Reduction (THR). Based on scientific data to date, 슬롯사이트 is developing non-combustible products that emits fewer and lower levels of harmful chemicals than cigarettes. This effort goes beyond product innovation—it contributes to the creation of social value.

In some countries, 슬롯사이트’s non-combustible products have already surpassed traditional cigarettes in market share. Further, some public health bodies globally have advocated smokeless products like vapes as a less harmful alternative to smoking. These initiatives are bringing positive changes to reducing the public health burden associated with smoking.

슬롯사이트’s transformation aligns closely with the broader ESG(Environmental, Social, and Governance) movement spreading throughout the industry. The company is no longer clinging to past methods but is instead leading the way in presenting a new industrial model that combines technology with ethics. This shift is seen as a catalyst for change across the tobacco industry, which has long faced concerns of stagnation.

At the forefront of this strategy is 슬롯사이트 Group CEO Tadeu Marroco. He began his career 30 years ago at 슬롯사이트’s local subsidiary in Brazil and rose through the ranks by working across mergers and acquisitions (M&A), global operations, and new business development.

Marroco defines 슬롯사이트’s transformation not merely as a survival strategy but as an expansion of “better choices.” He is driving consumer-focused product innovation and ethical management. Under his leadership, 슬롯사이트 is redefining the traditional tobacco industry as a responsible, technology-driven future industry and is maintaining steady momentum even amid evolving industry landscape.

I hear this is your first vis슬롯사이트 to Korea.

Yes, that’s right. I had two main objectives for this trip. First, I wanted to meet our excellent Korean team in person and hear directly from the field. Second, I aimed to gain a deeper understanding of the dynamic Korean market. Korea sets a global standard in both technological innovation and consumer sophistication. After this visit, I’m even more convinced that Korea is a strategically critical market for 슬롯사이트 as we transition into a company focused on non-combustible products.

What does it mean, specifically, for 슬롯사이트 to transition into a company focused on non-combustible products?

Our goal is to expand the number of 슬롯사이트’s non-combustible product users worldwide to 50 million by 2030. Currently, around 29 million people use 슬롯사이트’s non-combustible products. We’re also seeing a rapid shift in revenue composition. By 2035, we aim to generate 50% of our total revenue from non-combustible products. Currently, that share stands at approximately 17.5%

There is also the choice of completely letting go of the traditional cigarette business. Some competitors have announced full exits from the said business. Is 슬롯사이트 considering a similar strategy?

Regulatory environments vary significantly from country to country. If we were to ex슬롯사이트 a particular market, that gap would simply be filled by other manufacturers—or worse, by illic슬롯사이트 trade networks. Smoking rates do not decline overnight simply because a company w슬롯사이트hdraws. In fact, such moves can lead to an increase in illegal distribution.

슬롯사이트’s approach is not just driven by business logic but also reflects the realities of national regulatory environments. While some governments have implemented strict measures to reduce smoking rates, these policies have at times resulted in unintended consequences on the ground.

He brought up South Africa in 2020 as a real-world example. At the time, the South African government imposed a total ban on tobacco sales to prevent the spread of COVID-19. However, the result was a complete loss of control. W슬롯사이트h legal distribution channels shut down, consumers turned to cheaper, unregulated smuggled products, and the government faced significant tax revenue losses.

“In the end, the government lost control of the market and failed to protect public health. Simply w슬롯사이트hdrawing from the market or enforcing outright bans doesn’t solve the problem,” he said.

With the traditional smoking market expected to shrink, how is 슬롯사이트 adapting its business strategy?

The global number of smokers is clearly declining – a trend that could pose a challenge to 슬롯사이트’s traditional business model. This decrease is particularly pronounced in countries that have introduced progressive regulations and where non-combustible products have gained a stable foothold in the market.

슬롯사이트, however, views this as a sign that the environment is increasingly favorable for smokers, who would otherwise continue to smoke, to make a complete switch to alternatives with reduced risk profiles. Rather than seeing it solely as a threat, the company sees an opportunity to lead this transition by providing scientifically backed, smokeless alternatives with reduced risk profile to smoking.

Wouldn’t 슬롯사이트 be better to simply encourage smokers to qu슬롯사이트 smoking?

We have been very clear that qu슬롯사이트ting, or not starting, smoking is the best choice. However, for those who choose to continue smoking, there needs to be an access to alternatives w슬롯사이트h reduced risk profile to smoking they can make a sw슬롯사이트ch to. Considering that the global population is steadily increasing, if practical alternatives like non-combustible products are not offered to adult smokers who choose to continue, the number of conventional cigarette users may remain largely unchanged even a decade from now. Therefore, to accelerate the decline in smoking rates, 슬롯사이트 is essential to strike the right balance between regulation and innovation.

What do you think is the fundamental reason people still seek trad슬롯사이트ional cigarettes, even today?

Nicotine is a substance that has been familiar to humans for a long time, and people will continue to seek it for various reasons. What’s important, however, is that there is no longer a need to consume it through combustion. 슬롯사이트 aims to provide alternatives with reduced risk profiles to smoking, made possible by technology and innovation.

Many people perceive nicotine 슬롯사이트self as dangerous. How do you view this?

Many people mistakenly believe that nicotine is the main cause of smoking-related diseases, when in fact, the real problem lies in the harmful substances produced during combustion. That’s why 슬롯사이트 focuses on finding ways to deliver nicotine without combustion of tobacco, specifically through non-combustible products. Products that, while addictive and not risk-free, have reduced risks compared to cigarettes, based on the weight of available scientific evidence and assuming a complete switch from smoking. This is at the core of our mission. To create better choices for smokers.

How is 슬롯사이트 performing in the non-combustible product market?

We are pursuing a multi-category strategy and investing over 300 million pounds annually in research and development. Our key brands include the vaping product VUSE, the heated product glo™, and the nicotine pouch VELO. VUSE is sold in 60 countries worldwide and currently holds the No. 1 value share (as of 2024). 슬롯사이트 was first introduced in Korea in 2023 and is expanding 슬롯사이트s presence by emphasizing a premium experience. glo™ is available in over 30 countries, w슬롯사이트h more than 10 million users as of this year. VELO has launched in more than 40 countries and is rapidly growing in the U.S., especially w슬롯사이트h VELO Plus.

Clearly, those are impressive results. However, some say 슬롯사이트's presence in the Korean market has weakened compared to the past. What is your strategy in response?

슬롯사이트’s market position varies significantly by country. For instance, we’ve maintained a leading presence in key markets like Brazil and Romania for over two decades, with Romania remaining one of our strongest markets to date. In contrast, some European markets have seen a sharp decline in traditional cigarette consumption due to progressive regulations. However, this shift actually aligns with 슬롯사이트’s transformation strategy. Our goal is to support adult smokers in transitioning from traditional cigarettes to non-combustible alternatives. It’s a reflection of 슬롯사이트’s commitment to meeting the evolving needs of the market. In Korea as well, we plan to introduce product innovations that match these changes.

What is the strategic significance of the Korean market to 슬롯사이트?

Korea is a strategically important market for 슬롯사이트 globally. Performance in Korea is seen as having a direct impact on the company’s global competitiveness. 슬롯사이트 is strengthening its position in Korea through a diverse product portfolio. A prime example is the launch of Global Editions by Dunhill in May. This product was developed to reflect the preferences of Korean consumers and was first introduced in Korea before any other market, underscoring the importance 슬롯사이트 places on the Korean market.

VUSE seems to be the key to turning around 슬롯사이트's market share in Korea. However, the vaping category is still a relatively small part of the market.

슬롯사이트 views VUSE as a pivotal driver in enhancing our market position in Korea. We are committed to establishing VUSE as a high-quality brand through continuous innovation, with a particular focus on delivering diverse and sophisticated flavour profiles that align with adult Korean consumers’ refined preferences.

This strategy extends to our heated product portfolio as well. We are systematically expanding an integrated product ecosystem encompassing devices and consumables. Notably, the glo™ HILO—already launched in Serbia and Japan—is being considered for introduction to the Korean market. Designed w슬롯사이트h a modern aesthetic, intu슬롯사이트ive usabil슬롯사이트y, and features that reflect contemporary lifestyles, we believe glo™ HILO has strong potential to gain traction w슬롯사이트h Korean users.

Can we expect new technologies that go beyond products like VUSE or glo?

슬롯사이트 has already developed innovative products that go beyond glo™, VUSE, and VELO, with some of them being piloted in overseas markets. We are also expanding beyond nicotine into the realm of functional products. A prime example is 'Ryde'—an energy shot–style product that delivers fast-acting liquid formula. Depending on its formulation, it can promote relaxation, focus, or an energy boost. Ryde is currently available in Australia and Canada and is being tested in select regions of the United States.

So 슬롯사이트’s not a nicotine product.

Over the mid to long term, 슬롯사이트 aims to evolve beyond nicotine to become a company that offers a wider range of stimulating products tailored to different purposes. This goes beyond simply expanding the product portfolio—it’s a strategic move to propose new forms of stimulating products aligned with diverse consumer lifestyles.

슬롯사이트’s rapid strategic shift is largely driven by the dual nature of the tobacco industry. For decades, tobacco has been the subject of stringent regulations due to its impact on public health, facing restrictions in advertising, sales, and consumption.

However, the industry plays a significant role in national economies through tax revenue and employment. Tobacco taxes remain a major source of government income, and the value chain—from raw material cultivation to manufacturing, distribution, and retail—generates a substantial number of jobs. The tobacco industry continues to s슬롯사이트 at the intersection of public health concerns and economic contribution.

슬롯사이트 itself operates on this delicate balance. Globally, it is active in around 175 countries, runs manufacturing facilities in over 40, and employs approximately 50,000 people. The company pursues co-growth with a wide network of partners, from tobacco farmers to logistics providers and retailers. Its goal is to foster an ecosystem that goes beyond transactional relationships toward long-term shared growth.

슬롯사이트 Rothmans, the Korean subsidiary of 슬롯사이트, was honoured for the third consecutive year with seven awards at the 2025 Korea Great Place to Work Awards, hosted by the global workplace culture organization GPTW (Great Place To Work®).

The awards are given only to companies that receive over 60% positive responses in employee surveys. 슬롯사이트 Rothmans earned high satisfaction scores thanks to its family-friendly welfare programs and flexible work systems.

The company operates a flexible working system that allows employees to adjust their commuting hours freely. It also offers 120 days of maternity leave—well above the legal minimum of 90 days. While Korean law mandates only 2 days of paid leave for infertility treatment, 슬롯사이트 extends paid support to 5 days. The company also supports children’s education expenses and offers personalized psychological counselling services.

In addition, 슬롯사이트 Rothmans offers a range of initiatives such as remote work, a smart office environment, flexible benefits, and special summer leave. The company also provides opportunities for overseas assignments, leadership and job competency development programs, and a performance-based compensation system.

슬롯사이트 Rothmans is actively addressing the issue of cigarette butt litter through initiatives such as the ‘GGOT 슬롯사이트 (Flower Garden)’ campaign and the ‘Eco Plogging Campaign,’ contributing to the improvement of local environments. As a company committed to sustainability, 슬롯사이트 is clearly aiming to drive lasting lifestyle changes rather than simply holding one-off events. It continues to practice social responsibility through cultural and artistic sponsorships in Sacheon and regular local plogging activities.

Moving beyond the label of a “regulated industry,” 슬롯사이트 is building a new identity as a great place to work. So what philosophy and principles guide the leader of this global company at the center of change? We sat down with him to find out.

What do you believe is the common tra슬롯사이트 of successful global companies?

A solid strategy is essential, but the true key lies in organizational culture. At 슬롯사이트, we have spent years redefining our core values in collaboration with our employees, and those values have become our DNA. Shortly after I took office, we formed focus groups with thousands of employees to identify six core values: Truly Inclusive, Empowered through Trust, Stronger Together, Love our Consumer, Passion to Win, and Do the Right Thing. These six words are not just slogans — they form the backbone of how 슬롯사이트 operates.

That philosophy must be closely tied to your own career as well.

Absolutely. I started my journey with 슬롯사이트 30 years ago as a new graduate through the Global Graduate Program (GGP) in Brazil. From there, I worked across various regions before arriving at my current position. 슬롯사이트 has always been, and continues to be, an organization of opportunities.

Looking back on the past 30 years, what achievement stands out the most?

My 30 years at 슬롯사이트 have been a truly meaningful journey. Among them, one of the most memorable achievements was during my time leading the M&A team, when we acquired a company that was practically a startup and developed it into what is now known as ‘VELO.’ It was a period where I had to think through both strategy and execution simultaneously.

Looking back, is there anything you would have done differently?

Yes, there is. One regret I have is not making bolder decisions during the early stages of our new business investments. Strategically, our choice to pursue all three non-combustible categories at once was absolutely the right call, considering evolving consumer preferences and diverse market landscapes. However, from an execution standpoint, I believe we could have made better choices. Had we more thoroughly analysed the efficiency and prof슬롯사이트abil슬롯사이트y of investments by region and product category—and focused accordingly—we might have achieved even better outcomes. That said, we learned from this experience, made necessary strategic shifts, and fortunately, the results were strong. We reached our break-even point two years ahead of schedule.

To conclude, he was asked to choose one word that best represents 슬롯사이트’s identity. After a brief pause, he replied: Resilience.

“We have always faced challenges. Whether it was changes in the market, pressure from regulations, or shifts in technology, we constantly had to readjust our direction and look for better solutions. This ability to adapt is where 슬롯사이트 finds its strength. Our current focus on regulation, technology, and innovation has been made possible because of this resilience. I believe it is the core of who we are and something we must continue to uphold in the future.”

Career History

Tadeu Marroco, CEO of 슬롯사이트 Group
Tadeu Marroco is the Chief Executive Officer of the 슬롯사이트 Group. Under the company’s purpose of “A Better Tomorrow™,” he is leading the transformation toward a “Smokeless World,” focusing on transitioning to non-combustible products. With over 30 years of experience in finance, operations, and business development, he has held key leadership roles across various markets, driving 슬롯사이트 Group’s continued growth.

1992: Joins 슬롯사이트 Brazil (formerly Souza Cruz) in Brazil
2003: Finance Director in 슬롯사이트 Venezuela
2006: Management Finance Controller at 슬롯사이트 HQ in London
2007: Group Head of Operations Finance
2012: Group Finance Controller
2019: Group Transformation and Deputy Finance Director
2019: Group Finance Director
2023: Chief Executive from 15 May 2023