Tadeu Marroco has been BAT’s Chief Executive since May 2023, following his role as Finance Director from 2019. Since joining BAT in 1992, he has held various leadership roles and contributed to key transformation and acquisition initiatives. On his professional road he has encountered many different cultures, experiencing wide range of markets, each of which had its own challenges and opportunities, enlightening diversity of the business.
During his visit to Serbia, Marroco highlighted the BAT’s excellent performance in the market and emphasized Serbia’s significant role within the Group.
BAT has been successfully operating in Serbia for more than two decades and the Vranje factory delivering great results. What role does Serbia play in BAT’s global strategy?
I’m truly pleased that during my visit I had the opportunity to confirm that Serbia plays an important role within the BAT Group and is recognized as one of the most promising and strategically significant markets in the region. Since the acquisition, which is still regarded as one of the most successful in Serbia, BAT has invested over 280 million euros in the factory located in Vranje. Furthermore, BAT employs more than 700 people in Serbia and has contributed over 4.5 billion euros to the Serbian budget through taxes and excises.
At the same time, factory in Vranje stands as one of the key facilities within the BAT Group, distinguished by its exceptional performance and recognized as the only European factory to have received the prestigious Global Award for Excellence in Quality for four consecutive years.
The importance of the Serbian market to our company is also underscored by the fact that in November last year we chose Serbia as the launch site for our latest innovation from the heating products category HILO and HILO Plus. This visit has provided an opportunity to gather valuable insights and define our future plans, particularly given Serbia’s significant role in our focus on new generation product categories. Our long-term goal is to predominantly produce smokeless products by 2035, and Serbia, alongside the Adria Cluster, is integral in realizing this ambitious vision.
During your visit to Serbia, what are your impressions of how consumers are responding to BAT’s new category products?
We are fortunate that the future of smokeless products has started in Serbia and we believe that this moment is crucial in shaping a new era for the consumption of next-generation product. The response to our latest devices HILO and HILO Plus, which was first introduced to the Serbian market, has been more positive than ever before. All the data we’ve gathered shows that consumers recognize the innovation we’ve brought to the market, which motivates us to continue improving our products.
Technology has given us the tools to provide adult consumers with better alternatives to cigarettes and our brands like Velo, Vuse and Glo Hilo are not only innovative. They are built on trust and transparency in our product quality.
Could you tell us more about the Omni platform and how it reflects BAT’s long-standing commitment to tobacco harm reduction?
As a resource, Omni brings together hundreds of independent scientific studies, BAT’s own research into its innovations, and examples of Tobacco Harm Reduction (THR) in action, such as Sweden, which is on the cusp of becoming the first country to go smokeless, as defined by the World Health Organization.
The platform is crafted as an evidence-based manifesto through an unprecedented collaboration, and it’s open to everyone interested in the science and regulatory foundations of THR. Additionally, Omni is designed to address key information about smokeless products.
Also, we have strict measures in place to prevent underage access to tobacco and nicotine products, ensuring that our products are only available to adults.
For those interested in knowing more we created https://asmokelessworld.com/gb/en where Omni can be downloaded.
Sustainability in line with ESG standards is one of BAT’s key focuses. What are the latest highlights and achievements in this area?
Sustainability is a core part of our Group transformation strategy, and we are proud to be one of the global leaders in terms of the ESG agenda. We are working hard to fulfill the global ambition of achieving carbon neutrality by 2030, as well as ensuring that by 2050, the entire value chain of the group will be carbon neutral. When it comes to ESG goals in Serbia, the factory in Vranje has been achieving outstanding results year after year.
Our factory in Vranje received a certificate for carbon neutrality (Carbon Neutral Factory for scope 1&2 emissions) and a certificate for sustainable water resource management (Alliance for Water Stewardship). We have also set extremely high standards locally in water and waste management, as well as in worker safety protection.
Sustainability and inclusion are deeply interconnected, guiding our efforts to create a responsible, equitable, and forward-thinking business climate. By fostering a diverse and respectful work environment where all our employees feel valued and heard, we strengthen our responsibility and ethical governance. Integrating inclusion into our ESG framework helps us build stronger teams, drive innovation, and ensure long-term positive impact on both people and environment.
For BAT, embedding sustainability into its operations isn’t just good ethics, it’s good business. That’s exactly why I’m glad that BAT has been so successful in this area in Serbia, and I truly believe we will achieve even greater results in the years to come.
What are BAT’s future plans on a global scale, and what would you consider the key focus areas moving forward?
In the last three years, BAT has invested more than 1.4 billion EUR in the development, commercialization and scientific research of new products. This is part of our ongoing commitment to transforming the company and advancing our purpose to build A Better Tomorrow. Looking ahead, our ambition is to deliver 50 % of our revenue in Non-Combustible products by 2035. We are focusing heavily on research and development, expanding into new markets, and continuously innovating to offer healthier alternatives to traditional tobacco products. This transformation is a key part of our long-term strategy to create sustainable, consumer-focused solutions while also reducing the environmental impact of our operations.
To conclude – our success globally is built on the strength of our people, exactly like I saw here in Serbia. We take great pride in our highly skilled employees, whose commitment makes our achievements possible. Their dedication at every level drives our ongoing growth, enabling us to uphold the highest quality standards while continually investing in employee development and wellbeing.