TOBACCO INTERNATIONAL

TI March 2016

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MARCH 2016 TOBACCO INTERNATIONAL 19 In September 2015, BAT completed a $550 million purchase of Croatia-based Tvornica Du- hana Rovinj (TDR), the leading independent cigarette manufacturer in Central Europe and the market leader in Croatia. It also commands a strong presence in Bosnia and Serbia. In October 2015, BAT purchased nearly all of the shares of Brazil's Souza Cruz that it didn't already own—22.4 percent—raising its stake in the Brazilian market leader to 97.7 percent. Cigarette making and pack- aging is now almost fully automated. Above: Automated distribution operations in Brazil. In December 2015, BAT signed a vapor products technology-sharing agreement with R.J. Reynolds Tobacco Company, providing a framework for collaboration and mutual cross-licensing of each other's vapor prod- uct technologies through the end of 2022. BAT currently produces the Vype e-pen.

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