According to a recent report by Teleborsa, British American Tobacco (BAT) Italy held a major launch event in Milan, officially unveiling its new heated tobacco device, glo Hilo. Officially defined as a "technological revolution in heated tobacco," this product not only features 100% Italian-made tobacco cartridges but also reveals BAT's ambitious strategy in the Italian market-an investment of over €500 million over five years, the expansion of its only new-type tobacco production base globally, and the addition of 16 production lines. These moves target both the local market's potential and accelerate global exports.
1. New product launch: Italy becomes one of the first markets globally, with e-cigarette cartridges manufactured entirely locally.
As a key move by British American Tobacco (BAT) in the new tobacco market, the launch of glo Hilo carries multiple significances. From a product perspective, its cartridges are 100% made in Italy, continuing the brand's commitment to "local quality." From a market perspective, Italy is one of the first countries globally to introduce this device's ecosystem to the BAT Group, demonstrating its core strategic importance.
The choice of Italy as a key market is no accident. According to Fabio de Petris, CEO of BAT Italy, the Italian new tobacco market is extremely mature-currently, about one-third of Italian consumers are already using new tobacco products, a proportion far exceeding the European average. Data shows that the total number of new tobacco consumers in Europe is approximately 30 million, with Italy alone accounting for 25 million. This large user base and high acceptance make it an "ideal testing ground" for new product launches.
2. Increased production capacity: Investing 500 million to expand production by 16 lines, the Trieste base becomes a core hub.
To support the mass production and global export of glo Hilo, British American Tobacco (BAT) had already planned ahead in terms of production capacity. In 2023, the group opened its only global production base dedicated to new tobacco products in Trieste, Italy, and formulated a five-year investment plan exceeding €500 million.
Recently, the group further announced the addition of 16 heated tobacco production lines to the base, specifically for the glo Hilo platform. In fact, the base's capacity evolution had already begun: initially focusing on the production of oral nicotine pouches, it has now expanded to the heated tobacco sector, forming a "multi-category coverage, full-chain production" structure. Currently, the base's oral nicotine pouches are supplied to 14 countries worldwide, and the workforce has steadily grown from its initial stage to 350 people. With the new production lines coming online, the workforce will continue to expand.
3. Employment and exports: a "double benefit" that drives the local economic cycle.
British American Tobacco's (BAT) investment in Italy is not merely a business decision; it also injects vitality into the local economy. According to the plan, a €500 million investment over five years will indirectly create approximately 2,700 jobs, while simultaneously generating 600 direct and indirect positions through collaborations with local partners, covering management, production, and the supply chain.
In the long term, the Trieste site will become BAT's "global export hub" for new tobacco products. With the 16 new production lines in operation, in addition to meeting domestic Italian demand, a large quantity of glo Hilo products will be shipped to the global market from here, further strengthening BAT's global competitiveness in the heated tobacco industry.
4. Global Expansion: Starting in Italy, followed by Poland and Serbia.
The launch of glo Hilo in Italy is just the first step in British American Tobacco's global expansion. According to previously disclosed plans, the product line will gradually enter the Polish and Serbian markets.
With new tobacco products becoming a core engine of industry growth, British American Tobacco, through a model of "localized production + global export," is both consolidating its advantages in mature markets and laying the foundation for future expansion into emerging markets. The launch and expansion of glo Hilo may become a "key variable" in its competition within the heated tobacco market.
