Japan Tobacco Inc. (JT) announced that it will receive a $1.55 billion (¥252 billion) dividend from its consolidated subsidiary JT International Holding B.V. following a decision by the subsidiary’s board Aug. 24. The dividend was scheduled for receipt Aug. 26 and will be recorded as non-operating income in JT’s nonconsolidated financial statements for fiscal 2026. Because the payment comes from a consolidated subsidiary, JT said it will have no material impact on its consolidated financial results.
Category: Business & Finance
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Article Examines Move Toward Higher-Strength Pouches
An article published today (Aug. 27) by Financial Times reports that major tobacco companies are accelerating their push into higher-strength nicotine pouches as competition intensifies in the U.S. market, valued at about $5.2 billion. Higher-strength products now account for 17% of U.S. pouch volumes, according to Stifel analyst Matt Smith, with Philip Morris International’s 11mg Zyn Ultra becoming the highest-strength nicotine pouch cleared by the FDA. BAT plans to launch Velo Max in 8mg and 12mg strengths, while Altria is preparing a national expansion of its 12mg On! Plus.
Nearly 21 billion pouches were sold in the U.S. last year, according to Euromonitor, while smokeless nicotine product sales increased more than 8% in the first half of 2026 as cigarette sales declined 2.4%, according to NielsenIQ and Goldman Sachs. The companies are also expanding strength and format options as consumers develop preferences for stronger and higher-moisture products, with the FDA’s recent regulatory changes facilitating faster product introductions.
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Riot Labs Cites Cochrane Review Against UK Vape Packaging Plans
British e-liquid manufacturer Riot Labs is citing a new Cochrane review showing that nicotine e-cigarettes produce higher six-month quit rates than nicotine replacement therapy. The review analyzed 80 randomized trials involving nearly 30,000 smokers and found high-certainty evidence that nicotine vapes outperform patches and gum, according to the company.
Riot CEO Ben Johnson said the findings highlight a gap between evidence and public perceptions of vaping, while warning that proposed UK restrictions on vape packaging, appearance and displays could undermine switching from cigarettes. The company noted that the review’s authors specifically advised consumers seeking to quit with e-cigarettes to use products tested and approved by their country’s regulator.
Riot said it will cite the Cochrane findings in its response to the Department of Health and Social Care’s consultation on vape packaging, which closes Oct. 2. The company is calling for a three-tier retailer licensing system that would include enhanced requirements for shops accessible to children and a separate category for age-restricted specialist vape retailers.
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Scandinavian Reports Stable First-Half Sales
Scandinavian Tobacco Group reported net sales of DKK 4.19 billion ($670 million) for the first half of 2026, down 3% year over year, including a 3% negative impact from currency movements. Organic sales at constant currencies declined 0.3%, while handmade cigars grew 6%. Machine-rolled cigars and smoking tobacco declined 4%, while the company said its XQS nicotine pouch business continues to expand into new markets and menthol products.
EBITDA before special items rose 2% to DKK 835 million ($133.6 million), while EBIT before special items fell 2% to DKK 581 million ($93 million). Free cash flow before acquisitions increased 53% to DKK 422 million ($67.5 million). The company said its strategic Focus2030 program is progressing and expects the planned DKK 1.3 billion ($208 million) divestment of the BREAK and Moro fine-cut tobacco brands to close before year-end.
Scandinavian Tobacco Group maintained its 2026 guidance, forecasting constant-currency net sales growth of -2% to 2%, an EBIT margin before special items of 13% to 14.5%, free cash flow before acquisitions of DKK 950 million ($152 million) to DKK 1.2 billion ($192 million), and adjusted EPS of DKK 9 to DKK 11 ($1.44 to $1.76).
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AIR Shareholders Approve $52.5M Share Repurchase
AIR Global announced that its shareholders approved all proposals at an Aug. 24 extraordinary general meeting, including a $52.5 million repurchase of 5 million ordinary shares from Harraden Circle Investors and related entities at $10.49 per share.
The meeting also approved amendments to the company’s articles of association concerning notices of general meetings.
Shareholders also authorized the company to conduct future share repurchases through off-market transactions and open-market purchases. AIR said it has no additional repurchases currently planned beyond the Harraden transaction.
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JT Earns Platinum Kurumin Plus Certification
Japan Tobacco Inc. received Japan’s “Platinum Kurumin Plus” certification for workplace initiatives supporting employees who are balancing infertility treatment with work. The certification is awarded by the Ministry of Health, Labor, and Welfare to companies recognized for advanced childcare support and efforts to accommodate infertility treatment.
JT has supported work-family balance through childcare and nursing care programs and workplace improvements. The company received its first Kurumin certification in 2008 and was recognized as a Platinum Kurumin company in 2018.
JT said it has expanded its employee health initiatives to address issues including menstrual symptoms, menopause, fertility, and gender-specific cancers. The latest certification recognizes its efforts to create a workplace where employees can pursue infertility treatment while continuing their careers.
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Altria, PMI Strike Manufacturing Deal to Boost U.S. Tobacco Operations
Altria Group Inc. and Philip Morris USA announced that they have entered into a contract manufacturing arrangement with non-U.S. affiliates of Philip Morris International (PMI), aimed at improving the efficiency of PM USA’s traditional tobacco operations. The companies have operated independently since their 2008 separation.
Altria said the agreement supports its 2028 Enterprise Goals by enhancing manufacturing capabilities, generating economic benefits to support investment in its broader strategy, and strengthening capabilities that could eventually be transferred to its international nicotine efforts. “The arrangement supports our 2028 Enterprise Goals by enhancing operational capabilities, generating economic benefits to support investment in our vision, and strengthening capabilities that could be transferable to our international nicotine efforts,” Altria said. The company does not expect the deal to have a material impact on its 2026 financial results.
The arrangement does not change the companies’ independence. “Altria and PMI will continue to operate independently and maintain responsibility for their own commercialization, distribution, and regulatory activities,” Altria said. The agreement comes as Altria continues its push to expand beyond cigarettes while maintaining PM USA’s traditional tobacco business. The company said the manufacturing capabilities developed through the arrangement could support its longer-term international nicotine ambitions.
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PMI to Launch VEEV E-Vapor Product in South Korea
Philip Morris Korea announced that it will launch its VEEV e-vapor product in South Korea on Aug. 26 as the company expands its smoke-free portfolio in the country. KT&G currently leads South Korea’s non-combustible tobacco segment with a 48% market share, followed by Philip Morris and British American Tobacco.
Philip Morris International said 42% of its $11 billion in second-quarter revenue came from smoke-free products. The company has invested 22.5 trillion won ($16 billion) in research and development for smoke-free products since 2008 and is targeting a two-thirds share of sales from smoke-free products by 2030.
PMI Korea consumer experience director Kim Tae-hyung said the company ultimately aims to replace combustible cigarettes with smoke-free products.
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PMI Launches Airport-Exclusive IQOS
Philip Morris International launched a limited-edition IQOS ILUMA i Prime Skylens, its first device created exclusively for airport travel retail. Inspired by aviation and the “above the clouds” experience, the premium device features a metallic blue design and is being introduced through activations at selected duty-free locations.
The launch debuted at Tokyo’s Narita International Airport with a pop-up featuring product discovery, augmented reality, and a lounge-style environment. PMI has since expanded Skylens to selected airports across Europe, including Germany, Italy, Spain, Greece, Switzerland, and Serbia, as well as South Korea, Qatar, Saudi Arabia, Egypt, Morocco, Lebanon, and Malaysia.
Beste Ermaner, PMI’s vice president of global travel retail, said the initiative is designed to make smoke-free products more accessible to adult smokers in travel environments. PMI said IQOS is used by more than 35 million adults worldwide who would otherwise continue to smoke.
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AIR Global Reports 3.7% Increase Despite Strait of Hormuz Disruption
AIR Global PLC reported first-half revenue of $206.9 million, up 3.7% from a year earlier, while adjusted EBITDA was essentially unchanged at $71.7 million. The flavored shisha molasses company, which listed on Nasdaq in May, said performance was affected by supply-chain disruptions following the closure of the Strait of Hormuz, through which about 70% of its historical shipment volumes had traveled. FSM shipment volumes fell 9%, although volumes recovered after a 38.6% decline in March and returned to growth in June.
AIR posted a net loss of $81.8 million, compared with a profit of $32 million in the first half of 2025. The loss included $48.2 million in listing-related equity expenses, $47.7 million in IPO-related cash costs, $12.4 million in share-based compensation, and $3.8 million in supply-chain disruption costs. Higher logistics and raw-material costs also pressured results.
For 2026, AIR expects revenue growth of 4% to 6%, stable shipment volumes and low- to mid-single-digit adjusted EBITDA growth. The company said higher logistics and raw-material costs, accelerated factory footprint changes and incremental public-company expenses will weigh on earnings. Over the medium term, AIR expects low-single-digit organic FSM volume growth, mid-single-digit revenue growth and high-single-digit adjusted EBITDA growth.