BAT writes down $31.5 bn from value of US cigarette brands

British American Tobacco (BAT) said it would take a hit of around $31.5 billion as it writes down the value of some US cigarette brands, acknowledging on Wednesday that its traditional market has no long-term future.

BAT's move comes as ever stricter regulation and growing awareness of health risks squeeze tobacco companies' traditional business, driving declines in cigarette volumes in some markets.

The maker of Lucky Strike and Dunhill cigarettes also pointed to economic challenges in the US, where some inflation-weary consumers are downgrading to cheaper brands, and the rise of illicit disposable vapes putting pressure on its US cigarette division.

These factors contributed to the around 25 billion pound ($31.50 billion) non-cash adjusting impairment charge relating to some US cigarette brands, BAT said. Its Newport, Camel, Pall Mall and Natural American Spirit brands were affected, a spokesperson added.