(Oct 16): British American Tobacco said revenue from smoking alternatives will miss expectations this year as it issued a more pessimistic outlook for the tobacco industry’s new products than rival Philip Morris International Inc.

The maker of Lucky Strikes lopped 10% off its target for revenue from electronic and noncombustible cigarettes this year. BAT now forecasts 900 million pounds ($1.6 billion) after it recalled a device in the US and Japanese demand for so-called heat-not-burn tobacco has gone flat. The stock fell as much as 1.3%, trading near its lowest level in four years.

So-called heat-not-burn technology like BAT’s Glo is “not a complete substitute for smoking,” Ben Stevens, BAT’s financial director, said in a phone interview. “It’s not going to sweep the world as some of our competitors say it will.”

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