BAT waiting for price approval to launch tobacco-heating ‘glo’
KUALA LUMPUR: British American Tobacco (M) Bhd is waiting for price approval before launching its tobacco-heating product called “glo” locally.
BAT managing director Erik Stoel said it was ready to introduce the product in the local market and had obtained the required licences.
He said the company was always looking to introduce harm-reducing products.
“We have a product to launch. We are waiting for the price approval from the Tobacco Control Centre and the Health Ministry,” he said after BAT’s annual general meeting, here, yesterday.
Stoel said the company had submitted the request for the
This (illicit cigarette trade) remains a big concern for the business and deserves the immediate attention of the government.
ERIK STOEL
British American Tobacco (M) Bhd managing director
price approval last December.
glo comprises a battery-powered device that heats speciallydesigned tobacco sticks to about 240° Celsius.
The product is already available in Japan, Italy and the United Kingdom.
Stoel said BAT was also testing its mini cigars priced at RM9 per pack in Sabah and Sarawak in its bid to combat the illicit cigarette trade.
“That is a test to see if we can reduce the illicit trade. We have launched the pilot test two weeks ago in Sabah and Sarawak, purely to learn about the market. That is one of our initiatives to see if we can address the issue of affordability.
“If that goes well, we are going to propose to the government further things.”
Quoting the Illicit Cigarette Study 2018 by Nielsen, Stoel said illegal cigarette trade accounted for about 60 per cent of the cigarette market.
“This remains a big concern for the business and deserves the immediate attention of the government. Better legislation has been put in place in the form of stricter penalties, which need to be capitalised on.”
Stoel said while it was encouraging that the government had stated its intention to fight the illegal cigarette trade and recover RM1 billion in excise duty, it was critical that continuous and intensified enforcement by Customs in tandem with the other law enforcement agencies be maintained.