Shaping the Future: Johan Vandermeulen on Innovation, Strategy, and Serbia’s Role in BAT’s Vision

Johan Vandermeulen has over three decades of experience in various managerial positions within BAT, where he played a pivotal role in the company’s transformation process

Currently serving as Chief Operating Officer (COO), he is responsible for implementing BAT’s global strategy and accelerating the transition towards a smoke-free world. Johan’s career at BAT began in 1992 in the marketing sector in Belgium. Over the years, he has held diverse roles in markets worldwide, including General Manager positions in Turkey and Russia. His leadership has been instrumental in managing key acquisitions and expanding BAT’s presence in emerging markets.

Serbia is one of the markets where BAT has been successfully operating for many years. How would you assess the importance of this market within BAT’s regional and global strategy?

The Serbian market has proven to be highly open to innovation and aligned with global trends that BAT consistently implements in its operations. The best example is the factory in Vranje, which is now considered one of the most successful within the BAT Group. We continuously invest in production modernization, the application of cutting-edge technologies, employment, and the development of exports, all of which have further strengthened Serbia’s strategic position—both within the region and within our global network.

The new HILO and HILO Plus devices were first introduced in Serbia. What influenced the decision to make this market the first, and what role does it play in promoting BAT’s innovations?

The results we have achieved year after year in Serbia clearly showed that this market is ready for the next step—an approach that promotes a smoke-free world, where cigarettes are gradually becoming a thing of the past.

This is the reason why we decided to launch HILO and HILO Plus in Serbia. These devices represent a result of science, technology, and innovation, featuring advanced heating technology, extended session duration, and a modern EasyView LED screen that gives users full control over their consumption. Our goal was to offer adult smokers who would otherwise continue to smoke, a product that not only brings technological and design innovation, but also has a reduced-risk profile compared to cigarettes.

The concept of Tobacco Harm Reduction (THR) is at the core of BAT’s transformation strategy. How do you explain the significance of this approach for the end consumer, as well as for society as a whole?

For us at BAT, this concept is not just an industry trend, but a fundamental shift in the way we think about the future of the tobacco and nicotine industry. Through science, innovation and a responsible approach, we aim to offer products with a reduced-risk profile compared to cigarettes. This means that we provide adult smokers, who would otherwise continue to smoke, with a realistic alternative – a choice that is both based on science and technological innovation.

This is the reason why we have invested more than €1.4 billion in the development, commercialization, and scientific research of smokeless products.

This approach has the potential to generate meaningful benefits for society at large, and our goal is to continue raising awareness about THR among relevant stakeholders.

How important is the Omni™ platform to BAT’s business transformation and the realization of its smoke-free future vision?

Our idea behind the Omni™ platform was to bring together all relevant data and scientific research related to the concept of THR in one place.

The platform consolidates over a decade of BAT’s work and that of others in science, innovation, and analysis, serving as a knowledge hub to provide a deeper understanding of the principles and regulations behind THR.

It is evidence-based and draws from hundreds of scientific studies, with the goal of contributing to better understanding, education, and a more open dialogue amongst relevant stakeholders around public health and tobacco and nicotine policy regulation.

What are BAT’s future business plans in Serbia, as well as globally?

Our plans, both in Serbia and globally, remain focused on achieving the vision of building a smokeless world.

This means that we will continue to invest in people – through education, knowledge and skills development, but also through the continuous building of teams that understand the preferences of modern consumers. We will also call on regulators and public health authorities in Serbia to support science-based public health strategies and educate and raise awareness amongst adult smokers, who would otherwise continue to smoke, about THR and the risks of smokeless products compared to cigarettes.

Our priority remains the further development and enhancement of products that meet consumer needs — through innovations grounded in science, technology and the highest quality standards. Serbia will continue to play a key role in our regional strategy, while on the global level, BAT remains committed to reaching 50 % of our revenue in Non-Combustible products in 2035.

We believe that transforming the industry goes beyond the products themselves — it’s about a comprehensive approach. And we are ready to lead that change.

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