British American Tobacco Plc ADR (BTI)

Shares of British American Tobacco Plc ADR (BTI) dropped by 8.50% from $31.54 to $28.86 in the trading on Wednesday, December 6, 2023. The reason why BTI is down today is due to the announcement of a significant write-down in the value of its US cigarette brands. British American Tobacco (BAT) revealed it would take a hit of around $31.5 billion as it writes down the value of Camel, Pall Mall, and other US cigarette brands. This decision was made in acknowledgment of the fact that BAT's traditional market has no long-term future. The write-down is attributed to several factors:

• Stricter regulations and growing health awareness have been squeezing tobacco companies' traditional business, leading to declines in cigarette volumes in certain markets.
• Economic challenges in the United States, with some consumers downgrading to cheaper brands.
• The rise of illicit disposable vapes, putting pressure on BAT's US cigarette division. The affected brands include Newport, Camel, Pall Mall, and Natural American Spirit. This write-down reflects the evolving challenges and shifting dynamics in the tobacco industry.