The Development History of British American Tobacco Group

1902 On September 29th, in order to quell the fierce trade war, British Imperial Tobacco Company and American Tobacco Company established a joint venture-British American Tobacco Company.

According to the agreement, the two companies will not be allowed to trade in each other's domestic market, but they have the right to use each other's brands and trademarks in their respective markets. The businesses of the two companies outside the "local" market in Britain or the United States are all managed by British American Tobacco Company, so that the business of the new company covers many countries such as Canada, Japan, Germany, Australia, South Africa and China.

The meticulous and self-taught business tycoon James Duke became the first chairman of British American Tobacco. His strategy is to hire the best talents, develop better products, reduce product prices as much as possible, implement mechanized production, rationally organize and promote products.

Before 10, British American tobacco developed rapidly: 1904 entered the West Indies; 1905 into Ceylon and Egypt; 1906 entered the Netherlands, Belgium, Sweden and Norway; 1908 entered Finland, Indonesia and East Africa; 19 1 1 year entered Malaya (now Malaysia).

By the end of 19 10, British American Tobacco's cigarette sales have exceeded 10 billion, and the company's profits have soared.

19 1 1 year, American tobacco company gave up its shares in the joint venture. British American Tobacco is listed on the London Stock Exchange, and British investors subscribe for most of the shares held by its American parent company. Since then, BAT has been able to operate freely and independently around the world-but due to the regional agreement with Imperial Tobacco, BAT cannot operate in the UK.

19 14. With the outbreak of World War I, the army's large demand for tobacco increased the company's production capacity to the limit. 19 15 years, BAT sold 25 billion cigarettes.

During World War I, British American Tobacco established an integrated corporate culture, which changed the previous fragmented situation. At the same time, because the male labor force was transferred to the war, the company began to recruit female employees, which changed the company's employee structure.

The vast market of British American Tobacco benefits from the continuous expansion of the company's business. 192 1 year, Cigarrera Bigott Sucs was established in Venezuela. In the following years, BAT made acquisitions in Chile, Mexico and Central Africa.

Duke resigned on 1923, and his successor was Hugo Cunliffe-Owen, who was also a talented and decisive man. Mr Hugo's first action after taking over as chairman was to acquire the overseas business of 1925 Ardath Tobacco and obtain the trademark right of State Express.

British American Tobacco entered the American market on 1927 after acquiring small companies in North Carolina, Brown and Williamson.

1927, British American Tobacco Company (BAT) celebrated its 25th anniversary. At this time, it has become one of the leading companies in the UK, with 120 subsidiaries and more than 75,000 employees worldwide. The company gained a firm foothold in the American market and merged its only international competitor Ardath. British American Tobacco has established a good business in all continents, with an average annual profit of more than 6 million pounds.

Despite the economic downturn, before 1932, BAT had set up factories in most countries where government monopoly was not implemented. In the same year, the company established an independent distribution network and later developed into a mature subsidiary; British American Tobacco Company planted and processed tobacco leaves in India, China, Brazil and Nigeria, and acquired German House Bogman Company. In 1930s and 1960s, the First World War and the decolonization movement had a great influence on British American Tobacco.

After the drastic changes in World War II and the loss of business in China, the company lost several terminal markets. However, global sales still maintain the growth momentum.

World war ii (1939- 1945)

Like World War I, World War II also had a profound impact on British American Tobacco. The company's business in Europe was seriously damaged. In the Far East, British American Tobacco Company lost contact with Japanese-occupied companies. From 65438 to 0937, the company sold more than 55 billion cigarettes in China. Since then, due to the Japanese invasion, the sales of British American Tobacco in China have been suspended for more than four years.

During the Great Depression, the company's profit remained at around 5.5 million pounds. By 1942, it plummeted to 3 million pounds. Since then, until the end of the war, the company's profits have always remained at this level.

Postwar society

After World War II, the trade environment was extremely difficult. British American Tobacco needs to face inflation, high tobacco prices and rebuild assets lost in the war, all of which have frustrated the company's profits.

1952, the 50th anniversary of the founding of British American Tobacco, the company's business environment began to change. The war turmoil eventually caused the company to lose several end markets, including Egyptian, Indonesian and China. Despite the political turmoil in some areas, the company has achieved good results.

New leadership

From 65438 to 0953, Duncan oppenheim became the chairman of the company, which opened a new era for the development of British American Tobacco. Oppenheimer's polite manner and extraordinary legal wisdom enabled the company to maintain steady development in the following 13 years.

From 1953 to 1955, British American Tobacco ranked third in corporate profits in Britain, France and Germany. From 65438 to 0960, the company's global sales volume was 280 billion pieces, and its trade profit exceeded 58 million pounds.

1956, BAT acquired Benson &；; Overseas business of hedge funds. Like national express, Benson &; Hedges has developed into the cornerstone of the Group's leading position in the international brand market.

Diversified development

In the early 1960s, British American Tobacco began to set foot in the paper, pulp, cosmetics and food industries. The company first bought shares in Wiggins Teape and Mardon Packaging. 1964, the company also acquired Tony Bell Ice Cream Company and Lenthéric Perfume Company. Brown Williamson and British American Tobacco also started to invest in food industry in South Africa and Australia.

1966, British American Tobacco acquired the cigar manufacturer Henri Wintermans, and the company's profit exceeded 6,543.8+billion pounds for the first time. In the same year, Denzil Clarke, the new chairman of the company, took over as chairman, further accelerating the acquisition of the company. By the end of 1970, BAT's business has spread all over 50 countries and regions around the world.

At the end of 1970s, BAT Industries was established and promoted diversified development. Entered the field of financial services in the 1980s. From 65438 to 0989, the group gave up its business in these fields and re-adjusted its focus to tobacco business.

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From 65438 to 0970, BAT opened 140 factories in 50 countries and regions under the leadership of new chairman Richard Dobson. Two years later, British American Tobacco revoked the geographical restriction agreement signed with Imperial Tobacco Company in 1902, thus obtaining the exclusive ownership of its original brand (including Guoyun) in Britain and Western Europe.

British American Tobacco devoted itself to developing new business and finally decided to develop retail industry. In 1970s, Argos in Britain and Saks Fifth Avenue in America were acquired.

1976, the group was completely reorganized. Under the leadership of the new chairman, Peter Macadam, the operation of the group began to be controlled by the new holding company, British American Tobacco Industry Group. In two years, British American Tobacco Industry Group has developed into the third largest enterprise in Britain and the largest tobacco distributor in the free world, selling 500 billion cigarettes every year.

1977, the 75th anniversary of the founding of British American Tobacco, Ma Kadam commented: "We have experienced the baptism of two world wars, lost our business in China and lost our real estate in many other places ... but we have become stronger, and I think our current situation is better than ever."

At the same time, Brown Williamson Company invested 65.438+0.5 billion US dollars to open a new factory in Macon, Georgia, USA. By the end of 1970s, British American Tobacco exported cigarettes to China, which was the first time that British American Tobacco returned to the China cigarette market after the nationalization of its cigarette business in China 30 years ago.

In the late 1970s, British American Tobacco acquired several important brands, including brand building, by acquiring the international business of Lorillard Company.

Reorganize business

In 198 1 year, the group's production capacity grew steadily, and the trade profit of tobacco business has tripled to over 463 million pounds in the previous year.

1984 British American Tobacco Industry Group acquired Eagle Star; Acquired the allied Dunbar; A year later; 1988 acquisition of farmers' groups. From 65438 to 0989, Anglo-American Group became the largest insurance group in Britain. In the same year, Anglo-American Group's pre-tax profit rose by 24% to over 2 billion pounds, but it was acquired in bad faith. Subsequently, the group decided to re-focus on tobacco and financial services and divest other businesses.

New opportunities

In the 1990s, the economy gradually opened up, the state monopoly system began to disintegrate, and many new trade opportunities appeared in Central Europe, Eastern Europe and the Far East. From 65438 to 0992, British American Tobacco acquired Pecsi Dohanygyar in Hungary, and since then, it has carried out a lot of acquisition activities and established many joint ventures covering Ukraine, Uzbekistan, Czech Republic, Russia, Romania and Poland.

1994, British American Tobacco acquired American Tobacco Company, completed another important acquisition, and obtained the ownership of the brand of Haocai and Peier Mall.

Return to the root

From 65438 to 0998, Anglo-American Group spun off its financial services business. In the same year, the group acquired Cigarrera La Moderna, a leading tobacco company in Mexico.

From 65438 to 0998, British American Tobacco Pte Ltd became an independent listed company on the London Stock Exchange, with Martin broughton as the chairman. 1999, British American Tobacco, the second largest tobacco company in the world, announced the merger with Lofumen International Tobacco Company, the fourth largest tobacco company in the world. Through this merger, BAT absorbed several important brands (including Dunhill Road).

Entering the new Millennium

After the merger with Aimen, the group's equity in the Canadian market has undergone major changes. Now, Canada has become the group's most profitable market. In 2000, Love Gate sold its shares in Canada, acquired the remaining shares of Imasco, a British American tobacco joint venture, and sold its non-tobacco business. Now, the Canadian business has been reorganized into a pure tobacco subsidiary wholly owned by British American Tobacco, named Imperial Tobacco Company of Canada.

In 200 1 year, the group announced a series of new investment plans involving Turkey, Egypt, Vietnam, South Korea and Nigeria.

In 2002, British American Tobacco celebrated its centenary birthday. The group reaffirmed its confidence in employees, products and tobacco industry, and announced that it would start new investments in Nigeria, South Korea and Turkey.

In the same year, British American Tobacco became the first tobacco company to publish a social report.

In 2003, British American Tobacco Company acquired the control of Tabacalera Nacional in Peru, and won the bid for ETI Company, the former Italian National Tobacco Monopoly Bureau, and Duvanska Industrija Vranje Tobacco Company in Serbia. In addition, British American Tobacco also proposed a plan to merge the American business of its American subsidiary Brown Williamson with RJ Reynolds Tobacco Company.

In June 2003, Martin Burlington announced that he would retire from British American Tobacco Company in June 2004. As of June, 2004, barrington had worked for British American Tobacco for ten years, including the first five years as President of the Group and the last five years as Chairman of the Board of Directors of the Group.

Paul adams took over as the group president in July 2004, and Jan du plessy served as the non-executive chairman.

In 2004, Brown Williamson's American business was formally merged with RJ Renault Tobacco Company, and Renault America Company was established. The business of the new company is stronger and more stable, and British American Tobacco owns 42% of the shares.

In 2005, British American Tobacco Company tried to sell Swedish smokeless product snuff in Sweden and South Africa, which gave smokers a chance to enjoy low-risk smokeless tobacco.

In 2006, shops selling snuff in Sweden and South Africa further expanded, and toscano cigars were sold in Italy. On June 5438+1October of the same year, the group withdrew its sponsorship of racing car F 1 as a long-term commitment to the international marketing standards signed by 200 1.

In 2007, snus expanded to the Canadian market for trial sale, and we sold some trademarks of pipe tobacco to Orlik Tobacco Company in Denmark. In May 2007, we sold the Belgian cigar factory and its related brands to the cigar department of Skandinavisk Tobakskompagni Company.

In 2008, the group won the auction of cigarette assets of Turkish state-owned tobacco company Tekel at a high price of $65.438+72 billion. Subsequently, it obtained the right to sell Skandinavisk Tobakskompagni cigarettes and smokeless product snus.