The latest cost cutting plan at British American Tobacco, including 9,000 global job cuts and a push toward more digital and AI focused operations, is a reminder that even mature tobacco companies can face sharp shifts in how they run and spend. For investors watching Consumer Defensive stocks, that kind of restructuring can change risk, cash flow priorities, and appetite for nicotine alternatives. This article looks at 3 stocks from our Tobacco & Nicotine Alternatives screener that appear most exposed to this news, to help you decide whether they belong on your watchlist or warrant extra caution right now.

Molson Coors Beverage (TAP)

Overview: Molson Coors Beverage is a global brewer and drinks company based in Golden, Colorado, producing and distributing a wide range of beer, flavored malt beverages, spirits, ready to drink cocktails and non alcoholic drinks across the Americas, Europe, the Middle East, Africa and Asia Pacific under brands such as Coors Light, Miller Lite, Blue Moon, Peroni and Topo Chico Hard Seltzer.

Operations: Molson Coors generates most of its revenue from the Americas at about US$8.7b, with a further US$2.5b from EMEA & APAC and a small amount of inter segment eliminations.

Market Cap: US$7.8b

Molson Coors Beverage offers exposure to a large, diversified drinks portfolio that reaches beyond beer into higher margin premium, non beer and non alcoholic categories, at a time when big tobacco groups are also rethinking how they allocate capital toward reduced risk products. Analysts have published views that earnings may recover from current losses over the next few years, supported by cost discipline, restructuring in the Americas and an emphasis on stronger brands. Some commentary also notes that the current valuation indicates a wide gap to certain estimates of fair value, and that ongoing share buybacks could reduce that gap. On the other hand, the company carries meaningful debt, pays a dividend that is not yet covered by earnings and faces pressure in mature beer markets, so the potential opportunity depends on any strategic reset translating into sustained profitability and cash generation.

Molson Coors Beverage looks like a classic value story, where cost discipline, brand focus and share buybacks could be masking a deeper shift in the business. It is worth reading the 3 key rewards and 2 important warning signs

Turning Point Brands (TPB)

Overview: Turning Point Brands is a Louisville based tobacco and nicotine alternatives company that sells Zig-Zag rolling papers, cigar wraps, and accessories, along with Stoker’s moist snuff and chewing tobacco, plus cannabis related products across US and Canadian retail channels. It positions itself at the intersection of traditional tobacco and newer formats, serving convenience stores, tobacco outlets, mass merchants, and alternative retailers.

Operations: Turning Point Brands generates about US$167.9m from Zig-Zag Products and US$313.0m from Stoker’s Products, with roughly US$443.1m from the United States and US$37.9m from foreign markets.

Market Cap: US$1.7b

Turning Point Brands stands out in this Consumer Defensive group because it is leaning heavily into modern oral nicotine pouches and hemp based accessories. This comes at a time when large incumbents such as BAT are cutting costs and refocusing on reduced risk products. Analysts have highlighted the company’s focus on earnings and revenue growth. However, its reliance on Modern Oral products, the active regulatory backdrop, and heavy competition in pouches mean that changes in execution or policy could affect margins and cash flow. Turning Point Brands also pays a regular dividend, runs ongoing cost and supply chain efficiency efforts, and has used buybacks to shrink its share count. These factors may encourage investors to look more closely at how its NewGen strategy is positioned in the current shake up in global tobacco.

Turning Point Brands’ push into modern oral and hemp products could be reshaping its earnings story faster than many investors realize, and the full picture only comes into focus in the analysis report for Turning Point Brands

RLX Technology (RLX)

Overview: RLX Technology is a Shenzhen based company that develops, manufactures, and sells e-vapor and other smokeless nicotine products, offering rechargeable and disposable devices across several house brands that are distributed through local and third party channels in China and overseas, as well as directly to online and offline users.

Market Cap: US$2.3b

RLX Technology sits at the heart of the shift away from traditional cigarettes, with a focused smoke free portfolio that lines up closely with British American Tobacco’s renewed push toward digital, AI driven and reduced risk products. The company has reported strong recent earnings momentum, solid cash resources, and a commitment to returning a large share of non GAAP profit through buybacks and dividends, yet still trades on a P/E below the broader US market and below some peers. At the same time, investors need to weigh regulatory uncertainty, illegal competition in China, and dependence on ongoing international expansion. How those forces intersect with BAT’s cost cutting and changing competitive posture could be critical for anyone considering RLX as part of a nicotine alternatives watchlist.

RLX Technology’s earnings momentum, cash pile, and low P/E hint at a story the market may not be pricing in, and the analysis report for RLX Technology could reveal how regulatory risks tilt that balance

The three Consumer Defensive stocks in this article are only a starting point, as the full Consumer Defensive (Tobacco & Nicotine Alternatives) Stocks screener flags 23 more companies across the US, UK, Canada, and Australia with equally compelling narratives around tobacco and nicotine alternatives. Use Simply Wall St to identify and analyze the specific catalysts, financial health factors, and business narratives that matter most so you can focus on the highest conviction opportunities in this space.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.