Vuse

The company is the largest tobacco company in the world and is the owner of some of the biggest cigarette brands like Dunhill and Winfield.

To offset the declining use of tobacco products, they've also built a large non-smoke business with vape brands like Vuse.

Recently, they announced they're aiming for 50% of revenue to be from smokeless products by 2035.

Since 2017, the stock has been a disaster.

Uh, sorry, my mic was muted, but our outlook for Carreras is really contextualized around its dominance in the tobacco industry, as well as how well management has managed costs and really shifted to consumers' needs, seeing that vaping has become a popular thing amongst younger and, um, older people.

As we know, they've introduced their Vuse line of vape products, and that com- in con- conjunction with their positioning as well as, you know, uh, efficiency that they, that they, that they operate with, that's really what dri- what's driving their outlook.

Moreover, they also have, um, dominant market positioning, so they're able to adjust their prices as they see fit, and they've also been working with government agencies to crack down on the illicit trade, ci- ille- illicit tra- cigarette trade, sorry, which has been, uh, threatening their margins for, for quite some time.

Now, should Carreras be one of those companies, and we, we spoke about it just now with your colleague, should Carreras be one of those companies that investors consider for dividend replacement? And what are the risks of that?