Tag: Japan Tobacco

  • Japan Tobacco Appoints Executive Members

    Japan Tobacco Appoints Executive Members

    Image: Andrii Yalanskyi

    Japan Tobacco has appointed new executive members to the board of directors.

    Koji Shimayoshi has been appointed as executive vice president (effective Jan. 1, 2024) and representative director (effective March 22, 2024). Shimayoshi is currently executive vice president of JT International. He joined JT in April 1993.

    Shimayoshi will take the place of Kiyohide Hirowatari, who will become a member of the board, effective Jan. 1, 2024. Hirowatari will resign as member of the board upon conclusion of the 39th annual general meeting of shareholders scheduled for March 22, 2024.

    Hiroko Yamashina and Kenji Asakura have been appointed members of the board, effective March 22, 2024. Yamashina is currently a member of the audit and supervisory board, and Asakura is currently representative director and chairman of Nagase and Co. Ltd. Main Kohda will resign as member of the board, effective March 22, 2024. Emiko Takeishi will also join the audit and supervisory board as a member.

    Igo Dzaja will take on the role of senior vice president of marketing and tobacco business for Japan, effective Jan. 1, 2024. Kazuyuki Inui will take on the role of senior vice president of sales and tobacco business for Japan, effective Jan. 1, 2024. The following executive directors will resign effective Dec. 31, 2023: Eiichi Kiyokawa, Chigusa Ogawa and Shuici Hirosue.

  • JT Launches Ploom X Advanced in Japan

    JT Launches Ploom X Advanced in Japan

    Image: JT

    Japan Tobacco announced the launch Ploom X Advanced, a new model of heated tobacco device that has evolved in terms of taste and user comfort.

    The company believes the new device will play a significant role in its mid- to long-term business strategy.

    According to JT, the new device represents a significant improvement over the current model and incorporates advanced features, including:

    • An upgraded heating technology, dubbed “Power Heatflow,” which increases the maximum heating temperature from 295 degrees Celsius to 320 degrees Celsius to provide a richer flavor experience.
    • A new automatic heating function that automatically starts heating when a stick is inserted into the device.
    • Reduced charging time from approximately 110 minutes for the current model to approximately 90 minutes.

    The device will be available at convenience stores and tobacco retailers nationwide in Japan starting on Nov. 21, 2023, at a suggested, tax-included retail price of ¥1,980 ($13.22).

    Following the launch of Ploom X Advanced, JT will discontinue sales of the current Ploom X model in Japan.

  • JT Merges Dutch Subsidiaries

    JT Merges Dutch Subsidiaries

    Photo: Japan Tobacco

    Japan Tobacco merged its JT International Holdings (JTIH) and JT International Group Holdings (JTIGH) on Aug. 23, the company announced on its website.

    JTIGH, which was a pure holding company, will be dissolved, leaving JTIH as the surviving company.

    A wholly owned subsidiary of JT International Group Holding, JTIH is based in the Netherlands. Its chairman and managing director is Biljana Ivosevic.

    Japan Tobacco expects the impact of the merger between its consolidated subsidiaries to be minor.

  • JT Launches ‘With 2’

    JT Launches ‘With 2’

    Image: Japan Tobacco

    Japan Tobacco has launched With 2, its new infused tobacco vapor device, under the company’s respective new brand, With. It will be sold at convenience stores and tobacco stores in Japan beginning Sept. 5, 2023, and will be available for presale online from Aug. 7, 2023.

    With 2 is the first device of the new infused tobacco brand With. It features JT’s unique infused technology, which generates vapor while an atomized liquid passes through a capsule containing granulated tobacco.

    Since tobacco vapor is generated the moment it’s inhaled, there is no delay in delivery, JT explained in a press note. There is almost no tobacco smoke smell with the product since tobacco leaves are not directly heated. The device is equipped with a dual mode that allows consumers to switch between two heating modes at the touch of a button. The high mode produces 1.3 times more vapor than the normal mode, delivering a more intense flavor experience, according to JT.

  • JT Group Reports ‘Solid’ Quarter

    JT Group Reports ‘Solid’ Quarter

    Masamichi Terabatake | Photo: JT Group

    The JT Group’s revenues increased 9.9 percent to ¥1.39 trillion ($9.17 billion) in the second quarter of 2023, up 9.9 percent over the comparable 2022 period. Core revenue at constant exchange rates increased by 6.8 percent to ¥1.3 trillion, while adjusted operating profit at constant exchange rates increased by 4.7 percent to ¥434.3 billion. On a reported basis, adjusted operating profit increased by 6.7 percent to ¥442.8 billion. Operating profit increased by 8 percent to ¥413.6 billion, and profit increased by 8.7 percent to ¥287 billion.

    “The JT Group posted another strong set of results for the first half, said JT Group President and CEO Masamichi Terabatake in a statement. “In particular, the tobacco business reported solid growth across its indicators, driven by a more resilient industry volume and continued market share gains, as well as robust pricing.

    “Considering the accelerated investment towards heated tobacco sticks (HTS) in the second half of 2023, we have kept the full year forecast for adjusted operating profit at constant FX unchanged. On a reported basis, recognizing the current positive foreign exchange trend, we have revised upward our forecast, including the adjusted operating profit. Dividend per share guidance for full year remains unchanged taking into account our dividend policy at 188 yen per share. The interim dividend is 94 yen per share.

    As announced in February, we are accelerating investment towards HTS to establish the foundation of our future growth. Ploom X is now available in six markets, following the launch in the Czech Republic in June, and will be launched in Switzerland in September. Geographical expansion is on track with the expectation to complete launches in 14 markets by the end of 2023 and 28 markets by the end of 2024.

  • JT Launches New Infused Tobacco Device

    JT Launches New Infused Tobacco Device

    Photo: JT

    Japan Tobacco is launching a new brand named “With” and a new device named “With 2” for infused tobacco capsules in Japan this summer, the company announced on its website.

    The company will discontinue its Ploom TECH, Ploom TECH + and Ploom TECH + With infused tobacco capsule devices, which are only in Japan. They will be available until stocks are sold out.

    Ploom X, which is a device for heated tobacco sticks, is unaffected by this announcement and will continue to be sold and rolled out in a number of markets including Japan.

    JT says it remains committed to investing in reduced-risk products. The company competes in the heated-tobacco segment with its Ploom brand and participates in the e-cigarette market with its Logic brand.

    The discontinued devices
  • JT Boosts Investment in Heating Products

    JT Boosts Investment in Heating Products

    Photo: JI

    Japan Tobacco will invest ¥300 billion ($2.25 billion) in its tobacco-heating products (THPs), with ¥200 billion designated for marketing the sticks internationally, reports Nikkei Asia

    “Last year, we couldn’t make the investment because there were not enough [heated-tobacco] devices due to the semiconductor shortage,” Japan Tobacco President Masamichi Terabatake was quoted as saying. “For 2023, we are back on track for procurements, and we are able to secure more than twice Japan’s supply volume compared to last year.”

    JT plans to roll out its Ploom X THP in more than 10 countries this year, reaching at least 20 new countries by the end of 2024. Currently available only in Japan and the U.K., the product is set to debut in Italy this month.

    To gain name recognition, JT will invest in pop-up shops and digital sales. It will develop flavors that match the tastes of each market.

    In the U.S., JT formed a joint venture with Altria Group. The partners will seek permission from the Food and Drug Administration to market Ploom by early 2025.

    While JT’s THP segment is currently in the red due to the forward investments, the company anticipates turning a profit in 2028 on overseas growth.

    JT will also invest in research and development, looking to develop the second generation and third generation of Ploom X devices.

    Global sales volume for cigarettes shrank 1.5 percent last year, JT said. By contrast, the global market for THPs last year grew 17 percent to $33.4 billion, according to Euromonitor International.

  • Japan Tobacco Urged to Divest Drug Unit

    Japan Tobacco Urged to Divest Drug Unit

    Photo; Taco Tuinstra

    LIM Advisors called on Japan Tobacco to divest its 53 percent stake in Torii Pharmaceutical Co. to boost shareholder value.

    In a letter reviewed by Reuters, the Hong Kong-based activist fund said JT doesn’t have synergies with the drug unit or the expertise to manage its research and development. LIM plans to bring its proposal to the annual general meeting of shareholders in March.

    The proposal by LIM, which holds less than 1 percent of Japan Tobacco shares, comes as Japanese regulators have frowned on so-called parent-child listings on the grounds that they can infringe on minority shareholder rights.

    JT is one-third owned by the Japanese government.

    LIM is also pushing for corporate charter amendments to improve governance, including a prohibition of Japan Tobacco executives retiring to take jobs at Torii.

    Established in 1995 by investment fund veteran George Long, LIM has launched several governance motions in Japan in recent years.

  • Branching Out

    Branching Out

    Photo: JTI

    Ploom X debuts in the United Kingdom.

    By George Gay

    Many people find it difficult to understand why not all smokers have experimented with reduced-risk vaping devices and subsequently used them to cut down or quit their consumption of combustible cigarettes, but there are, in fact, any number of reasons. What is more difficult to understand is why some smokers have never tried vaping devices. Though, again, it is not hard to come up with a few reasons. Smokers might, for instance, eschew disposable vaping devices on environmental grounds but find other types of devices rather daunting. While some people like gadgets, especially when they come with lots of options controlled by multiple buttons, lights and digital displays, other people see these options and their controlling levers as overly complex—as providing more options for things to go wrong.

    Japan Tobacco International perhaps had this sort of thing in mind when it developed its Ploom X heated-tobacco product (HTP), an updated version of its Ploom S. Ploom X, which has been available in Japan for almost 18 months and which made its beyond-Japan debut when it was launched* by JTI U.K. at the beginning of November, is a sleek, compact, minimalist HTP that, at first glance, has no buttons, lights or displays—just a USB port at the bottom of the device and, at the top, a slider that, when moved to the side, reveals a hole—the entrance to the device’s “oven”—into which tobacco sticks, called EVO sticks, are placed.

    Of course, there is a “button,” one activated by touching the button area of the front panel of the device, and, when the device is in use, there is an LED display supported by a vibration function, which together provide notifications of such things as battery charge level, heating time, vaping time and possible malfunctions. But the thing is, even I, an aged technophobe, was able to master the device in no time at all because of a simplicity of operation made possible in part by its having only one heating mode. This is basically how it goes: Move the slider to the right, insert the tobacco stick, wait briefly for one flash of the LED display and two short vibrations, and you’re ready to vape.

    In fact, two of the main things I took away from going through the simple process of taking a new Ploom X device out of its box, reading the instructions, inserting a tobacco stick and taking a few puffs were that this was a product that, with its sleek look and accessories, would appeal especially to young adults while, because of its operational simplicity, also  being comprehensible to us older folk. And this is important if the aim is to encourage as many smokers as possible to switch from combustible cigarettes to less risky products. It is easy to forget that smokers come in all shapes and sizes across the adult age spectrum, and while, arguably, younger adult smokers have more to lose by continuing to smoke, older smokers should not, in my view, be left behind.

    This need to cover all bases seems to be at the heart of JTI U.K.’s strategy. While it already had a range of alternative products on the U.K. market, it has launched Ploom X even though HTPs have played second fiddle to other vaping devices in the country—though a second fiddle that is starting to make more noise, perhaps.

    Ploom is said to have been improved by using a higher heating temperature—up from the 230 degrees Celsius of Ploom S to 295 degrees Celsius of Ploom X—and a redesigned heat-flow system to ensure a more consistent nicotine delivery and a more enhanced flavor delivery from the first puff. Adjustments made to the airflow system are said to have enabled a more consistent vapor delivery and increased vapor volume. And the new device is said to provide for longer (about 30 seconds) session times of up to five minutes and the possibility of using more tobacco sticks per charge: up to 22 sessions with one charge. At the same time, it requires minimal cleaning, amounting to about five seconds of effort after the consumption of 20 sticks.

    Of course, what is written above describes only half the story. If higher temperatures and redesigned heat-flow systems are to be meaningful, the tobacco sticks that are put into the devices must play their part, a part that is largely to do with providing choice. So while the device is simple to operate, choosing your EVO stick is more challenging, at least for the newcomer. EVO sticks, which contain a blend manufactured from “microground and fine-cut tobacco,” come in three broad categories: tobacco flavors, of which there are two, EVO Bronze and EVO Amber; menthol tobacco flavors, of which there are two, EVO Green and EVO Green Option; and fruit and menthol flavors, of which there are four, EVO Purple, EVO Purple Option, EVO Magenta and EVO Ruby. This sounds a little daunting but is less so once you know that the presence of the word “option” indicates the stick has a flavor capsule and once you know that “purple” means berry, “magenta” means grape and “ruby” means apple.

    There is further help at hand too because each product is given a five level rating on various aspects of its delivery: intensity and flavor in the case of the tobacco products; intensity, flavor and cooling in the case of the menthol tobacco products; and intensity, aroma and cooling in the case of the fruit and menthol products.

    Unfortunately, I’m not sure that these ratings are generally available. I believe they can be provided only to somebody who has demonstrated an interest, and this, I think, is a pity. The U.K. government has been generally progressive in its rule-making around vaping products, but this is an area where things perhaps need to be revisited. It is often said that the key to getting as many smokers to switch to less risky tobacco and nicotine products is to provide them with the information they need to make informed choices. It would be a tragedy if some smokers gave up on Ploom or other devices and products simply because, for instance, they had to choose sticks on the basis of insufficient information and therefore never arrived at the product best suited to them.

    That is perhaps unlikely. Having paid £39 ($47.63) for a device (there was an offer at the time of writing by which consumers could buy a device and two packs of sticks for £29), consumers are likely to persevere and maybe run the gamut of stick options until they find the flavor or flavors they like. Another reason to persevere is that a pack of 20 sticks sells for a recommended retail price of £4.50, about half the price of a pack of 20 combustible cigarettes, so, providing a 20-a-day consumer can afford the initial outlay for the device, she will more than recoup that outlay within about 10 days.

    *Ploom X was launched in the U.K. online nationwide at www.ploom.co.uk and in a limited number of stores in the Greater London area and elsewhere.
  • Companies Strengthen Sustainability Creds

    Companies Strengthen Sustainability Creds

    Photo: Deemerwha studio

    Leading cigarette makers are strengthening their sustainability credentials.

    Philip Morris International, for example, recently announced new ambitions to “preserve nature” via biodiversity and water stewardship.

    These ambitions include protecting nature by achieving no net loss on ecosystems connected to PMI’s value chain by 2033; contributing toward a net positive impact on nature by 2050; scaling solutions toward a positive impact on water resources, measured as volume of water optimized and restored, by 2033; and contributing toward a positive impact on water resources by 2050.

    “As our new ambitions demonstrate, PMI understands that decarbonization, biodiversity protection, forestry management and water stewardship are deeply connected. We aspire to lead by example in the responsible and sustainable management of natural resources that can allow the promotion and protection of natural ecosystems,” said Jennifer Motles, chief sustainability officer, in a statement.

    PMI’s strategies to “tackle climate change” and “preserve nature” have been recognized by CDP, a not-for-profit charity that runs a global disclosure system for investors, companies, cities and regions to manage their environmental impacts. On Dec. 13, 2022, PMI received the Triple A score for its efforts across climate, forests and water stewardship.

    Imperial Brands, meanwhile, recently received a CDP Climate A score for a fourth successive year. The company has committed to reaching science-based net zero emissions by 2040 through a five-step approach outlined in its 2022 annual report. Earlier this year, the business was named as a Supplier Engagement Leader by CDP for a third successive year and as a Climate Leader by the Financial Times.

    “There is no other path than for all companies, all governments and all of society to pull together and get behind the decarbonization commitments that have been made,” said Tony Dunnage, global ESG (environmental, social and governance) director at Imperial, in a statement. “Our A score reflects our commitment to reducing our impact on the climate throughout our value chain, and we know that we can make a meaningful contribution.”

    Imperial was also rated A- by CDP for water security—an improvement on the B rating achieved a year earlier—and a C for its first response in a number of years to the forests survey.

    Japan Tobacco, too, has strengthened its commitment to sustainability. The company has been included in the Dow Jones Sustainability Asia-Pacific Index (DJSI Asia-Pacific) for the ninth consecutive year.

    The DJSI is a globally recognized ESG stock index and sustainability benchmark that tracks the stock performance of the world’s leading companies in terms of governance and economic, environmental and social dimensions, with constituents selected on the basis of the S&P Global Corporate Sustainability Assessment. The DJSI Asia-Pacific is an index of companies in the Asia-Pacific region, which is reviewed once a year and whose constituents are selected from approximately 600 major companies in the region.

    “We are honored that this year, again, JT has been selected in the DJSI Asia-Pacific,” said JT Senior Vice President and Chief Sustainability Officer Hisato Imokawa in a statement. “We believe that our inclusion in the index for the ninth consecutive year is the recognition of our earnest efforts to address ESG issues across our value chain. We are committed to promoting transparent and accurate disclosure of nonfinancial information, which has been a vital part of our agenda in recent years, and we recognize
    that this is an important initiative to promote stakeholder engagement and dialogue.”