British American Tobacco Takes Massive Hit as US Cigarette Brands Plummet in Value

British American Tobacco (BAT) is writing down the value of its US cigarette brands, including Camel and Pall Mall, by approximately $31.5 billion, acknowledging the declining future of the traditional tobacco market. BAT cited stricter regulations, health risks, economic challenges, and the rise of illicit disposable vapes as factors contributing to the decline in cigarette volumes. The company will adjust the treatment of these brands on its balance sheet, recognizing their value for a finite lifetime of 30 years. BAT's shares fell over 8% following the announcement. The company aims to generate 50% of its revenues from non-combustibles by 2025.