British American Tobacco $BATS (-0.24%) launches Glo HILO, its first premium HTP product.

In the HTP category, the share of the premium segment is around 80%, while BAT's share is 2%. HILO is intended to close a large gap in the portfolio and compete directly with IQOS.

So far, Glo has focused primarily on the discount segment, but BAT seems to have realized that the discount segment is not nearly as lucrative as the traditional cigarette market.

HILO will first be launched in Serbia at the end of November.