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Tag: Japan Tobacco

  • JT Launches EVO Honey Lemon for Ploom

    JT Launches EVO Honey Lemon for Ploom

    Japan Tobacco (JT) introduced the EVO Honey Lemon Crystal, a new flavored smoke stick for its Ploom heated tobacco brand, that will be available in Japan beginning today (December 16) through the CLUB JT online shop and Ploom Shops, followed by a nationwide rollout in convenience stores and tobacco retailers on January 16, 2026.

    The EVO Honey Lemon Crystal “combines lemon-flavored capsules with honey sweetness to offer a balanced, dual-profile sensory experience.” It is compatible with all Ploom devices, sold in packs of 20 sticks at a retail price of JPY 550 ($3.70).

    The launch follows recent additions to the Ploom EVO lineup, including Evo Black Menthol and Evo Fresh Mint (released December 1) and a formula upgrade for Evo Cold Menthol in November, expanding the EVO mint range. JT’s Ploom smoke stick portfolio now totals 27 variants, catering to diverse flavor preferences in Japan’s heated tobacco market.

  • JT Expands Ploom Aura EVO Menthol Line

    JT Expands Ploom Aura EVO Menthol Line

    Japan Tobacco Inc. launched two new EVO menthol sticks—Evo Black Menthol and Evo Fresh Mint—for its Ploom Aura heated tobacco device, along with an upgraded Evo Cold Menthol variant, Japanese media outlet Kakakumag reported today (December 1). The additions bring the EVO menthol series to three distinct options, offering varying cooling intensities and flavor profiles.

    According to the company, Evo Black Menthol delivers the strongest cooling sensation in the EVO portfolio, while Evo Fresh Mint provides a milder mint aroma with a moderate cooling effect and a prominent tobacco flavor. The upgraded Evo Cold Menthol balances menthol freshness with tobacco body more effectively than before.

    JT has also released a limited-edition Aqua Green Ploom Aura device, complementing the expanded EVO menthol lineup and giving users new design and flavor options.

  • JTI to Open New Romanian Factory in 2027

    JTI to Open New Romanian Factory in 2027

    JTI Romania announced it will build a new state-of-the-art factory in Ștefăneștii de Jos, Ilfov County, replacing its space-constrained Bucharest plant. Groundwork is scheduled to begin in the coming weeks, with completion slated for 2027.

    The Bucharest facility currently exports 75% of its output to more than 70 countries, making it one of JTI’s key European production hubs. Senior VP Philip Livingston said the investment supports JTI’s drive to optimize its global manufacturing footprint, while factory lead Klaus-Walter Thul highlighted continual upgrades since operations began in 1994.

    JTI has invested heavily in Romania, including €25m in 2012 and a €60m program launched in 2021. The company employs 630 staff at the Bucharest factory and more than 1,500 nationwide.

  • JT Announces Board, Leadership Changes

    JT Announces Board, Leadership Changes

    Japan Tobacco Inc. (JT) announced several resolutions from its Board of Directors concerning the company’s new and revised executive appointments, including changes among its Representative Directors. The most notable change is that Takehiko Tsutsui is being promoted from executive vice president of JT International to assume the office as president and Chief Executive Officer, replacing Masamichi Terabatake, who will become the deputy chairperson of the Board. The move will be effective January 1, 2026, subject to ratification at the company’s shareholders’ meeting and approval of the Board of Directors. Tsutsui joined JT in 1997 and has been a vice president since 2012.

    The company also announced that Shigeaki Okamoto will become the new chairperson of the Board, appointed Yukiko Uchida to the Board, and announced the resignations of Yukiko Nagashima and current chair Mutsuo Iwai. The Board changes will be effective at the conclusion of the shareholders’ meeting scheduled for March 25, 2026.

    In other moves, Adam Vilalta was named senior vice president of marketing of Tobacco Business in Japan with the resignation of Igor Dzaja, and Hisashi Shimobayashi was promoted to senior vice president, Chief Technology & Information Security Officer.

  • JT Reports Strong Q3 2025 Results, Raises Full-Year Forecasts

    JT Reports Strong Q3 2025 Results, Raises Full-Year Forecasts

    Japan Tobacco Inc. (JT) reported robust growth for the first nine months of 2025, with revenue up 13.2% to ¥2.63 trillion ($17.1 billion) and adjusted operating profit at constant FX up 27.2% to ¥849 billion ($5.5 billion), driven by solid pricing and higher tobacco volumes. The company also completed the transfer of its pharmaceutical business to Shionogi & Co., Ltd. and its subsidiary TORII PHARMACEUTICAL, marking a strategic shift to focus on its core tobacco operations.

    At the end of September 2025, total assets stood at ¥8.2 trillion ($53.2 billion), down ¥175.7 billion ($1.1 billion) year-to-date, mainly due to lower cash holdings, while equity increased to ¥4.17 trillion ($27.1 billion) on higher retained earnings. Operating cash flow remained strong at ¥287 billion ($1.9 billion), supported by steady contributions from the tobacco business, despite payments related to the Canadian litigation settlement.

    Reflecting strong performance, JT raised its full-year forecasts across all metrics, projecting a 13.1% rise in revenue and a 24.3% increase in adjusted operating profit at constant FX. CEO Masamichi Terabatake credited growth in the Ploom heated tobacco segment, with Ploom AURA and EVO premium sticks boosting Japan’s HTS market share to 15.5%. JT also announced a revised annual dividend of ¥234 ($1.52) per share, up ¥26 ($0.17), in line with record-high earnings and its shareholder return policy.

  • JT Completes €500 Million Subordinated Bond Issuance

    JT Completes €500 Million Subordinated Bond Issuance

    Japan Tobacco International Financial Services B.V. (JTIFS), a subsidiary of Japan Tobacco Inc. (JT), completed the issuance and settlement of €500 million Euro-denominated subordinated bonds due 2055. The transaction was first announced on August 27.

    The securities, which carry equity-like features while being classified as debt, were launched to refinance JTIFS’s existing subordinated bonds due 2081.

    JT said the transaction, which also included the settlement of a related tender offer, will help strengthen the group’s financial foundation. The new securities are callable at the issuer’s discretion from March 2031 and on subsequent interest payment dates.

  • JTI Sees Shift to Cheaper Cigarettes Continuing

    JTI Sees Shift to Cheaper Cigarettes Continuing

    To combat decreasing volumes, many cigarette companies are forced to increase prices to keep the needed revenue margins. That, combined with continuously rising federal and state taxes, has made buying a pack of cigarettes in the United States quite expensive. As a result, many smokers are leaving traditional premium name brands and trading down to the value and super-vale segment of the market.

    Japan Tobacco International’s finance chief Vassilis Vovos said he expects pricier brands to continue losing ground even as affordability improves, and that the shift toward cheaper cigarette brands in the U.S. will top 42% of the market by 2027.

    JTI completed the acquisition of U.S. tobacco company Vector Group last year, which pushed its share of the super-value segment to 40% by the fourth quarter of 2024.

    “This is a hard trend and we see it continuing over time,” Vovos said, adding steep price increases will continue to push consumers to trade down, a trend visible in many markets where big price gaps emerge.

    Industry giants such as Altria and BAT hope the trend away from premium brands is temporary and will recede as economic pressures ease. BAT, which does not produce a product for either of the value markets, saw its U.S. volume fall 10.1% last year.

  • JT Not Adjusting Russian Business

    JT Not Adjusting Russian Business

    In a statement issued to This Week in Asia, a Japan Tobacco (JT) official said: “As announced in early 2022, the JT Group has suspended all new investments and marketing activities in Russia. At present, the group continues its manufacturing and sales operations in the country in full compliance with all applicable regulations, including but not limited to economic sanctions and export controls. We continue to closely monitor legislative developments as well as the situation on the ground and review our options.”

    JT announcing that it was not pulling out of the lucrative Russian market makes news as the Ukrainian government continues its efforts to get some of the world’s largest companies to exit its combative neighbor. A Ukrainian report said JT contributed $182.3 million in taxes to the Russian government in 2023, fourth among taxpaying companies behind only Austria’s Raiffeisen Bank International ($491 million), China’s Chery Automobile, and Philip Morris, the world’s leading tobacco company.

    International companies that did not exit the Russian market immediately after the invasion of Ukraine began but later pulled out from bad press include Heineken, Citigroup, and Kraft-Heinz.

    JT, which is still one-third owned by the government, faces minimal criticism in Japanese media and as a result, the public – which is strongly supportive of Ukraine – is offering few objections.

    “There has been no comment from the government, no pushback from the public, and nothing in the media,” said James Brown, a professor of international relations at the Tokyo campus of Temple University who specializes in Russian affairs. “So the sense at [JT] headquarters appears to be ‘why should we walk away from it?’

    “The position in Japan was that if being there was not explicitly sanctioned, then it was fine to carry on. And that meant it was not a problem for the company, which was open about what it was doing.”

    In May 2024, Japan Tobacco CEO Masamichi Terabatake made that stance clear when he told the Financial Times that the company’s supply chains had been adjusted to meet international sanctions and that it would remain active in Russia to protect investors’ interests.

    “If worse comes to worst, there is even the risk of a shareholder lawsuit if we were to discontinue a business that we are able to continue,” he said.

  • Japan Tobacco Investing Heavy on RRPs

    Japan Tobacco Investing Heavy on RRPs

    Japan Tobacco Group, the parent company of Japan Tobacco International (JTI), announced that it will be investing 450 billion yen (USD $3 billion) on reduced-risk products (RRPs) by the end of 2026. The parent company is based in Tokyo and invests in various fields including pharmaceuticals and foods, while JTI is based in Switzerland.

    “One of our ambitions is to recoup by 2028 our investments in RRPs and reach profitability,” said Kazuhito Sumimoto, JT investor and media relations vice president, who noted the investment covers capital expenditures, sales promotions, and research and development.

    This investment stands on the shoulders of JTI’s 2021 launch of Ploom X—the latest generation of its heated tobacco product line designed to meet the changing needs of smokers.

    “The geo-expansion of Ploom, our investment priority, has now reached 23 markets, and in Japan, the largest Ploom market, we continued to gain share in this segment, reaching 11.8 percent quarter-to-date,” said Masamichi Terabatake, JT Group’s president and chief executive officer, who added that Ploom’s overall sales grew 40% in the third quarter of 2024

    JT investor and media relations director Ichiro Kawai said the company expects combustibles to decline 2% by 2035, but heated tobacco products to rise by 8%.

    It took two years for Ploom X to expand to 12 markets outside of Japan, including being introduced in the Philippines in November 2024. Its success in the Philippines gives JTI momentum and confidence that it can reach its goal of being in 40 global markets by 2026.

  • Japan Tobacco Reports Third-Quarter Results

    Japan Tobacco Reports Third-Quarter Results

    Masamichi Terabatake (Photo: JT Group)

    Japan Tobacco reported revenue of ¥2.21 trillion and adjusted operating profit of ¥681.7 billion at constant currency exchange rates for the third quarter of fiscal 2024, up 6.8 percent and 2.6 percent, respectively, from the comparable 2023 quarter. On a reported basis, core revenue increased 11 percent to ¥2.39 trillion and adjusted operating profit increased 1.2 percent to ¥672.5 billion. Operating profit increased 0.8 percent to ¥636.6 billion, and profit rose 0.1 percent to ¥442.4 billion.

    “The JT Group posted another set of strong results for the third quarter, mainly driven by solid pricing in the tobacco business,” said JT Group President and CEO Masamichi Terabatake in a statement.

    “Our solid market share momentum, combined with better-than-expected overall demand in a number of markets and the significant Ploom volume growth of 40 percent, resulted in total volume increasing by 2.2 percent year-on-year.

    “The geo-expansion of Ploom, our investment priority, has now reached 23 markets, and in Japan, the largest Ploom market, we continued to gain share in the HTS segment, reaching 11.8 percent quarter-to-date. Overall, RRP-related revenue increased by approximately 22 percent year-on-year.

    “Following the successful acquisition of Vector Group, I am very pleased to welcome the employees of VGR to the JT Group. I am confident that our expanded presence in the highly profitable U.S. market will improve the JT Group’s returns in combustibles and strengthen our mid[term] to long-term financial position through sustainable hard currency profit and cash flows.”