Top 10 FMCG Companies in United Kingdom (UK) 2015

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2. British American Tobacco

Commonly known as BAT was formed in 1901.

Sales ($ Bn): 23

Profits ($ Bn): 5.1

Assets ($ Bn): 40.8

Market Value ($ Bn): 99.6

When initially the industry started consolidating with major players expanding, a territory clash begun between the two biggest player at that time. BAT was formed to mutually benefit both the companies and all trademarks and export operations in other countries were marketed under BAT. It is headquartered in London, United Kingdom. In India BAT owns significant stake in ITC, and market some of the products through it. The campaign of Wills brand of BAT for Indian cricket team was conducted by ITC. Since under the alliance major overseas operations of selling were performed under BAT, BAT became one of the major global players with operations ranging in over 180 markets. Its famous brands include Lucky Strike, Dunhill, Wills etc which are a combination of acquisition and in-house development. Till 2002 it was also marketing Marlboro brand itself in U.K whose rights it acquired but was contested by Philip Morris. Since its long history of over 100 years, BAT has diversified into various operations like Retail, financial services etc and currently it owns major stakes into server financial services companies which is one of the reasons for high market capitalization and higher earnings from ancillary business. BAT business model includes procuring raw materials through contracted farmers rather than owning its own field and servicing those farmers through their in-house technicians hence minimizing the supply liability risk. In 2014 it had revenues of $23 billion. World-wide it has 44 factories present in 41 countries and has centralized supply chain management operations, exporting to countries where it does not have factories.

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