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Economic Moat

British American Tobacco has no economic moat

Customers can choose competing cigarettes and nicotine pouches without costly retraining or long-term commitments. British American Tobacco’s established brands and large operations help it compete, but do not prevent rivals from offering substitutes and competing for its customers.

Why British American Tobacco has no moat

Little cost to switch

Brand protection has limits

Large rivals can compete

The explanation behind each reason