Japan Tobacco moves to sharpen tobacco focus

In announcing today its decision to withdraw from the beverage business, Japan Tobacco Inc said that enhancing the competitiveness of its tobacco business was the priority for its resource allocation.

In a note posted on its website, JT said that its board of directors had resolved to withdraw from the manufacture and sale of beverage products in Japan and that it expected to discontinue such operations by September.

‘After carefully considering the growth strategy for the manufacture and sale of JT beverage products, the company has concluded that it will be difficult to make a profitable contribution to the JT Group in the mid- to long-term,’ the note said in part.

JT entered the beverage business in 1988.