British American Tobacco Plc 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 percent off its target for revenue from electronic and noncombustible cigarettes this year. BAT now forecasts 900 million pounds ($1.2 billion) after it recalled a device in the U.S. and Japanese demand for so-called heat-not-burn tobacco has gone flat.