Tag: Japan Tobacco

Tobacco Companies Recognized for Sustainability

Photo: patpitchaya
British American Tobacco and Japan Tobacco have been recognized for corporate sustainability.
BAT has been named in the Dow Jones Sustainability Indices (DJSI) for the 20th consecutive year and is the only tobacco company to be included in the DJSI World Index. The World Index represents the top 10 percent of more than 10,000 companies assessed.
BAT is the highest-scoring tobacco company in 2021, with industry-leading scores in 11 of the 24 categories assessed, while achieving a top score of 100 percent in six categories, according to a company press release.
“It is an honor to have been recognized by the DSJI every year for the last 20 years and once again be ranked within the DJSI World Index,” said Kingsley Wheaton, chief marketing officer at BAT.
“Sustainability has been central to our business and ethos for decades, starting in 2001 when we established our first group-wide environment, health and safety systems, the BAT Biodiversity Partnership and a program of independently facilitated social dialogue. In March 2022, we will publish our 20th ESG Report.”
Meanwhile, Japan Tobacco has been included in the DJSI Asia Pacific for the eighth consecutive year. JT scored 79 out of 100 in the 2021 S&P Global Corporate Sustainability Assessment, achieving full score in the materiality, risk and crisis management, environmental reporting, operational eco-efficiency, social reporting, and corporate citizenship and philanthropy criteria out of 24 total criteria.
“We are delighted that JT is once again included in the DJSI Asia Pacific this year,” said Kazuhito Yamashita, member of the board and senior vice president, chief sustainability officer, compliance and general affairs, in a statement.
“Participation in international and credible ESG assessments allows us to objectively evaluate our own sustainability measures and disclosure materials. We are committed to promoting transparent and reliable disclosures of nonfinancial information. It is one of the agendas we have been focusing on in recent years and is an important initiative in order to advance dialogue with our stakeholders.”
The DJSI is a recognized worldwide ESG (environmental, social and governance) stock index and a global sustainability benchmark that tracks the stock performance of the world’s leading companies in terms of economic, environmental and social criteria. The DJSI Asia Pacific is an index of companies in the Asia-Pacific region that is reviewed once a year, and its constituents are selected from about 600 major companies in the region.
November 15, 2021
Japan Shrinks Tobacco Cultivation Area

Photo: Teresa Design Room
The Leaf Tobacco Deliberative Council, chaired by Yoshitsugu Minagawa, released its report on the consultation for domestic tobacco cultivation area and purchase prices for 2022 in response to a proposal submitted by Japan Tobacco.
The domestic tobacco cultivation area will be set at 3,889 hectares in 2022, a 34 percent decrease compared to the previous year, according to a JT press note. The leaf tobacco purchase price will remain the same at an average of ¥1,924.15 ($16.90) per kilogram for all leaf types.
The total area of tobacco cultivation will decrease to 1,822 ha as a result of 1,729 Japanese leaf tobacco growers indicating intentions to cease tobacco cultivation. The decision follows the release dated July 29, 2021, stating that the council agreed to JT’s proposal to decrease total Japanese cultivation area.
The Leaf Tobacco Deliberative Council confers on matters concerning the cultivation and purchase of domestically grown leaf tobacco in response to inquiries by JT representatives. The council consists of no more than 11 members, appointed by JT with the approval of the Minister of Finance from among representatives of domestic leaf tobacco growers and academic appointees.
November 11, 2021
JT Group ups Forecast on Robust Nine Months

Masamichi Terabatake
(Photo: JT Group)
The JT Group reported year-to-date revenue of ¥1.77 trillion ($15.5 billion), up 10.9 percent over those in the first nine months of 2020. Adjusted operating profit at constant currency increased 21.9 percent to ¥538.1 billion. On a reported basis, adjusted operating profit increased 23 percent to ¥542.9 billion. The group’s operating profit was ¥480.7 billion, up 23.2 percent over last year’s period. Based on its performance, the JT Group increased its financial forecasts for the full year.
“The JT Group reported a robust year-to-date performance, driven by strong momentum across the tobacco businesses. Our volume performance continued to be strong, driven by market share increases and stable industry volumes from longer than expected travel restrictions,” said JT Group President and CEO Masamichi Terabatake in a statement.
“We revised our full year forecasts upward, reflecting the robust results delivered in the first nine months of 2021 and also favorable currency trends. Following the upward revisions of our forecast, we are pleased to inform our plan to raise our annual dividend guidance by ¥10 to ¥140 per share.
“In Japan, we have received very encouraging feedback from consumers on Ploom X. However, the global semi-conductor shortage is impacting production of heated tobacco devices, so for the remainder of the year, we will prioritize the device supply in the Japanese market where we have already launched Ploom X. We will continue to strive to secure share growth.
“In addition, with our one tobacco business new operating model from January 2022, we will further strengthen our business foundation as well as build a more agile and consumer-centric organization.”
October 29, 2021
JT to Raise Prices of Heating Products

Photo: JT
Japan Tobacco has received approval from the Ministry of Finance for its application dated Aug. 23, 2021, to amend retail prices of its heated-tobacco products in Japan in conjunction with the revised tax structure.
The new retail prices will be effective on Oct. 1, 2021, for a total of 50 heated-tobacco products. As a result of the changes, the price of Mevius for Ploom Tech will increase to ¥570 ($5.18) from ¥540, and the price of Mevius for Ploom Tech+ will increase to ¥580 from ¥550. Mevius for Ploom X and Ploom S will increase by ¥30 to ¥570.
In a statement, JT said it will strive to continue to improve the quality of its products and services, and to exceed the expectations of its consumers.
The retail price amendments are already included in the 2021 consolidated forecast announced on July 30, 2021.
August 27, 2021
JT Ups Guidance After Strong Quarter

Masamichi Terabatake (Photo: JT)
Japan Tobacco reported revenue of ¥1.14 trillion ($10.45 billion) in the first six months of 2021, up 11.1 percent from the comparable 2020 period. Adjusted operating profit at constant currency increased 26.9 percent to ¥365.1 billion. On a reported basis, adjusted operating profit increased 24.5 percent to ¥358.2 billion. Operating profit was ¥322.1 billion, up 27.8 percent from the comparable six months in 2020.
JT revised its revenue and adjusted operating forecasts upward by ¥120 billion and ¥10 billion, respectively.
“JT Group delivered a robust performance in the first half, driven by strong business momentum. This was a result of continued market share gains in combustibles in many markets and continued tailwinds of strong industry volume trends due to travel restrictions in some mature markets,” said Masamichi Terabatake, president and CEO of the JT Group, in a statement.
“Considering this robust performance, we have revised our full year guidance upward.
“We have launched Ploom X, our next-generation device for heated-tobacco sticks in Japan, the world’s largest heated-tobacco market. Listening carefully to our consumers around the world, we have developed our first global model, offering a richer and enhanced taste, improved design and a more intuitive user experience. Ploom X will gradually be rolled out across other markets.
“We are also making steady progress on several initiatives announced in February this year, including the rollout of our new operating model for the combined one tobacco business as well as measures to strengthen competitiveness in the Japan market. These initiatives will act as a catalyst for future growth while we continue to offer products and services which exceed our consumers’ expectations.”
July 30, 2021
Japan Tobacco Launches Ploom X

Photo: JT/JTI
Japan Tobacco is launching Ploom X, its next-generation heated-tobacco device, on Aug. 17, 2021. Ploom X will gradually be made available across Japan, including in convenience stores and select tobacco retail stores. Ploom X will also be available for pre-launch sale at the Club JT online shop from July 26, 2021.
The device was jointly developed by JT in Japan and JTI, the group’s international subsidiary headquartered in Switzerland.
“Ploom X is the first global device developed by JT and JTI, bringing together all our resources to offer the best user experience of our time,” said Daniel Torras, senior vice president of reduced-risk products, in a statement.
“We are delighted to be able to offer this new innovative product to adult consumers in Japan, the world’s leading heated-tobacco market and where product standards and quality are of the highest importance. Listening to consumers globally, we have created a proposition that is aligned with today’s lifestyles and choices. This includes a more authentic tobacco taste, new connectivity possibilities and several options to personalize the device to everyday needs.”

Ploom X is the first global device developed by JT and JTI, bringing together all our resources to offer the best user experience of our time.
Daniel Torras, senior vice president of reduced-risk products, JTI
The new device adopts the aesthetic and innovative “Nastro” design with a more intuitive user experience, with no buttons on its surface. In addition to allowing users to precisely control heating temperature, Ploom X is equipped with a new heating technology, Heatflow, which focuses on airflow.
Ploom X is also equipped with Bluetooth functionalities that connect with users’ smartphones, enable consumers to see the battery status, lock the device and much more.
Along with the device, improved heated-tobacco sticks are being rolled out. The regular tobacco stick flavor is blended with lamina, the most aromatic part of the tobacco leaf. There is a range of 12 different heated-tobacco sticks.
July 15, 2021
JT Publishes Human Rights Report

Japan Tobacco has published its first Human Rights Report, showcasing the group’s contributions over the past decade to the U.N. Guiding Principles on Business and Human Rights, marking the 10th anniversary of their inception.
The report sets out the pillars of JT Group’s human rights strategy, which is an essential part of the group’s business activities and one of three absolute requirements of its sustainability strategy.
“This important milestone for the U.N. and the global business community is an opportunity to highlight our progress and the ongoing process of embedding human rights into every area of our business,” said Masamichi Terabatake, president and CEO of JT Group, in a statement.
June 16, 2021
Japan Tobacco Releases Integrated Report

Photo: JTI
Japan Tobacco (JT) has released its 2020 Integrated Report.
In full year 2019, JT began publishing its Integrated Report as a substitute for its Annual Report and Sustainability Report.
The report provides stakeholders with both key financial and nonfinancial information in order to have clearer and deeper understanding of the JT Group’s sustainable corporate value growth.
March 24, 2021
JT Recognized for Employee Health
Japan Tobacco (JT) has been recognized under the 2021 Certified Health & Productivity Management Outstanding Organizations Recognition Program, also commonly known as the “White 500,” in the large enterprise category for the fifth consecutive year.
The program, conducted by the Japanese Ministry of Economy, Trade and Industry and the Nippon Kenko Kaigi, recognizes the top 500 organizations that view their employees’ health as essential from a business management perspective, implementing various initiatives to support the improvement of their health.
“We are honored to be recognized on the ‘White 500’ yet again,” said Koichi Mori, senior vice president of human resources, in a statement. “JT is committed to ensuring the physical and mental well-being of all our employees, which we believe is essential for our sustainable growth. Even during the Covid-19 pandemic, our commitment remained unchanged. We have been promoting new ways of working, including active utilization of remote work and online meetings and continuing our business operations while taking all necessary health-related measures. We prioritized the health and safety of all of our colleagues, their families and all of the stakeholders.”
JT believes that its inclusion in the “White 500” reinforces its commitment toward continuously adapting its workplace to ensure all colleagues can work comfortably.
March 4, 2021
Japan Tobacco to Close Two Domestic Factories

Photo: Taco Tuinstra
Japan Tobacco (JT) will close two factories in Japan and shed 3,000 jobs as the company restructures its domestic tobacco operations to meet falling demand, reports The Japan Times, citing JT President and CEO Masamichi Terabatake.
The facilities slated for closure are a tobacco plant and a filter-making facility in Fukuoka Prefecture. Both will cease operations at the end of March 2022.
The company will shed about 20 percent of its 13,500 workers. It will offer buyout packages to 1,000 full-time and 150 postretirement workers while asking about 1,600 part-timers to quit. All of them are expected to leave the company at the end of March 2022.
The measures are part of a comprehensive restructuring plan announced on Feb. 9.
The company will consolidate its domestic and overseas tobacco businesses while unifying its headquarters functions into Geneva in January 2022. The Japanese headquarters will be left with domestic marketing and product development functions.
Japan Tobacco’s new domestic headquarters
In Japan, JT will reorganize its operations into 47 branch offices from the current combination of 15 branch offices and 145 outposts covering smaller areas.
JT said its sales fell 3.8 percent to ¥2.09 trillion ($19.95 billion) in 2020 from the previous year. The coronavirus pandemic dragged down tobacco sales at airport duty-free shops while restaurant demand for processed food products sagged, the company said in its 2020 financial report.
Net profit dropped 10.9 percent to ¥310.2 billion, although the company booked ¥41.3 billion in proceeds from the sale of its old headquarters building.
In October, JT relocated its Japanese headquarters to a new location in Tokyo.
February 11, 2021