Tag: Japan

  • Japan’s leaf gets all clear

    Japan’s leaf gets all clear

    Japan Tobacco Inc. said today that testing for radioactive materials in this year’s domestic Burley tobacco had been completed and had shown that none of the leaf tested had exceeded the JT standard value.

    JT has been conducting pre-purchase and other tests at each stage of its production process for radioactive materials in Japanese domestic leaf tobacco, using a standard value, since the accident at the TEPCO Fukushima Daiichi nuclear plant in 2011.

    ‘Prior to this year’s Japanese domestic tobacco harvest, the company has again been conducting radioactive material testing on leaf tobacco before purchase, with the support of tobacco growers,’ JT said in a note posted on its website.

    ‘Testing of this year’s Burley has now been completed, showing none of the leaf tobacco tested exceeded the JT standard value (Radioactive cesium: 100Bq/kg).

    ‘Furthermore, JT will continue with its scheme of testing domestic leaf tobacco after purchase, and testing and monitoring a number of times at each stage of the production process.’

  • New role for JT executive

    New role for JT executive

    Japan Tobacco Inc. says that Koji Shimayoshi will move from his current position as senior vice president, head of the Tobacco Business Planning Division on September 30, to take up his new role as senior vice president of Japan Tobacco International’s executive committee on October 1.

  • JT’s domestic volume down

    JT’s domestic volume down

    Japan Tobacco Inc.’s domestic cigarette sales volume during August, at 8.1 billion, was down by 13.0 percent on that of August 2016, 9.3 billion, according to preliminary figures issued by the company on Friday. The August 2016 figure was increased by 0.8 percent on that of August 2015.

    Volume during January-August, at 62.8 billion, was down by 11.6 percent on that of January-August 2016, 71.0 billion. The January-August 2016 volume was down by 1.5 percent on that of January-August 2015.

    JT’s market share stood at 61.2 percent during August, at 61.1 percent during January-August, and at 61.1 percent during January-December 2016.

    JT’s domestic cigarette revenue during August, at ¥48.3 billion, was down by 12.7 percent on its August 2016 revenue, ¥55.3 billion, which was increased by 5.8 percent on its revenue of August 2015.

    Revenue during January-August, at ¥373.7 billion, was down by 9.9 percent on that of January-August 2016, ¥414.9 billion, which was increased by 1.6 percent on its revenue of January-August 2015.

  • JT on sustainability index

    JT on sustainability index

    Japan Tobacco Inc. has been selected for the fourth consecutive year by the Dow Jones Sustainability Indices Asia/Pacific (DJSI Asia/Pacific), the worldwide index for socially responsible investment (SRI).

    ‘The DJSI is a collaborative initiative by S&P Dow Jones Indices of the United States and RobecoSAM of Switzerland,’ JT said in a note posted on its website.

    ‘It assesses the sustainability performance of companies, based on economic, environmental and social criteria.

    ‘From among approximately 600 major companies in the Asia-Pacific region, including Japan, 152 companies (72 Japanese companies) were named to the DJSI Asia/Pacific this year.

    ‘In accordance with the management principles of the JT Group, we strive to fulfill our responsibilities to our valued consumers, shareholders, employees and the wider society, carefully considering the respective interests of these four key stakeholder groups, and exceeding their expectations wherever we can.

    ‘With this in mind, we carry out various initiatives in countries where we operate, and will continue to contribute to the societies’ sustainability through the businesses.’

  • JT’s Mighty deal completed

    JT’s Mighty deal completed

    Japan Tobacco Inc. said yesterday that the JT group had completed the acquisition of assets related to the tobacco business of the Philippines-based Mighty Corporation.

    The agreement to acquire the assets was announced by the company on August 22.

    ‘The acquisition is in line with JT Group’s geographic expansion for sustainable growth,’ JT said in a note posted on its website.

    ‘It also provides a nationwide distribution network in the Philippines and strengthens the group’s brand portfolio with the addition of local brands such as “Mighty” and “Marvels”.

    ‘The total amount of the acquired assets is PHP46.8 billion (approximately US$936 million).’

    JT said the transaction would not have any material impact on the group’s consolidated performance for the fiscal year 2017.

    Meanwhile, a GMA News story published today had it that Mighty Corp. had said previously that it intended to use the proceeds from the deal to settle its tax liabilities amounting to P25billion, other fees, and value-added tax.

  • Only a minor change

    Only a minor change

    In Japan, even some adults might not be allowed to smoke in the future, according to a Kyodo News story relayed by the TMA.

    A bill to amend the country’s Civil Code to lower the legal age of adulthood from 20 to 18 is likely to be submitted to the Diet’s extraordinary session this fall.

    But the National Police Agency said last week that even if the legislation were approved, the legal age for smoking or drinking would remain 20.

    Two laws under the agency’s jurisdiction ban minors, currently those aged below 20, from smoking or drinking.

    The wording of these two laws are likely to be changed because they contain the term ‘minor’, which could be interpreted as meaning people under 18 if the nation’s legal age of adulthood is changed.

    About 200 other laws would be affected by the amendment to the code, and changes to each would have to be debated individually.

  • JT acquires Mighty Corp

    JT acquires Mighty Corp

    The JT group has signed agreements to acquire the assets of the Philippines-based Mighty Corporation.

    In a note posted on its website today, Japan Tobacco Inc. said the group had signed agreements ‘related to the tobacco business of Mighty Corporation (MC) for a total of PHP46.8 billion (approximately US$936 million)’.

    ‘The assets include MC’s distribution network, manufacturing equipment, inventories and intellectual property,’ the note said.

    ‘The transaction is expected to be completed in the third quarter of this year following regulatory clearances.’

    MC has been involved in a long-running dispute over tax payments but, last month, the Manila Times reported that the Philippines’ government had agreed to accept an initial payment of about P3.5 billion toward the company’s tax liabilities. The Department of Finance (DOF) said it had been informed that a check for P3.44 billion would be issued by JT International Philippines.

    The Times story said the DOF had ‘stressed’ that such acceptance did not yet mean it was agreeing to the company’s total settlement offer of P25 billion. Nevertheless, the DOF said also that MC would pay the balance of P21.5 billion on or after the closing of its proposed deal with the JT group.

    Meanwhile, in describing why it was making the acquisition, JT said that MC, with 23 percent of the market, was the second largest tobacco company in the Philippines, the 10th largest tobacco market in the world.

    ‘MC holds a leading position in the value segment, which accounts for more than 50 percent of the industry volume, with strong local brands such as Mighty and Marvels,’ JT said. ‘Its established distribution network reaches outlets nationwide.

    ‘The JT Group has been in the market for an extended period of time and increasing its presence mainly driven by Winston, a sub-premium product, notably in the urban areas of the Philippines.

    ‘The transaction enables the JT Group to consolidate its business foundation through expanded distribution and a strengthened brand portfolio, providing the JT Group with more than a quarter of market share in a country with robust economic growth.’

    “This transaction is another example of our geographic expansion for sustainable growth in the mid- to long-term,” said Mutsuo Iwai, executive vice president and president of the Tobacco Business. “This major acquisition in South-East Asia adds to our recently announced full-scale entry into Indonesia, and will further enhance our business base in the region.”

  • Times changing in Japan

    Times changing in Japan

    The Neighborhood Second-Hand Smoke Victims Society (NSSVS), which is based in Yokohama, Japan, is seeking national or local requirements that, in the case of a complaint about a person smoking on her balcony, landlords and building managers would be obligated to rectify the situation, according to a piece by Casey Baseel on RocketNews24.

    Baseel said that while Japan was often referred to as a smoker’s paradise, times were changing, leading to discussions about placing new limits on when and where Japanese smokers could light up.

    As part of that discussion, the NSSVS had been formed in the late spring with the aim of protecting people from the dangers and discomfort of passive smoke in and around their homes.

    Recently the NSSVS had taken aim at the demographic referred to as ‘firefly’ smokers – smokers who get their name from their custom of going out onto their apartment or condominium balconies to smoke, where the tips of their cigarettes are said to resemble the luminescent insects.

    Unless firefly smokers lived on the top floor of their buildings, their smoke naturally rose towards the tenants who lived directly above them.

    In the past, Baseel said, this was largely a situation for which the only recourse was to say nothing could be done. But with smoking rates dropping and greater awareness of the health risks associated with second-hand smoke, people who were unhappy about a firefly smoker living below them had become more vocal.

    The NSSVS accepts that firefly smokers are indulging their habit while standing on their own property and that making firefly smoking illegal would be difficult. ‘However, it is seeking national or local requirements that, in the case of a complaint about a firefly smoker, landlords and building managers be obligated to take some action to rectify the situation,’ Baseel said.

    Baseel’s piece is at: http://en.rocketnews24.com/2017/08/22/japanese-organization-wants-stricter-regulations-against-people-smoking-on-their-own-balconies/

  • JT’s domestic volume down

    JT’s domestic volume down

    Japan Tobacco Inc.’s domestic cigarette sales volume during July, at 7.9 billion, was down by 12.4 percent on that of July 2016, 9.0 billion, according to preliminary figures issued by the company today. The July 2016 figure was down by 7.9 percent on that of July 2015.

    Volume during January-July, at 54.7 billion, was down by 11.3 percent on that of January-July 2016, 61.7 billion. The January-July 2016 volume was down by 1.8 percent on that of January-July 2015.

    JT’s market share stood at 61.3 percent during July, at 61.0 percent during January-July, and at 61.1 percent during January-December 2016.

    JT’s domestic cigarette revenue during July, at ¥46.9 billion, was down by 12.2 percent on its July 2016 revenue, ¥53.4 billion, which was down by 3.4 percent on its revenue of July 2015.

    Revenue during January-July, at ¥325.3 billion, was down by 9.5 percent on that of January-July 2016, ¥359.5 billion, which was increased by 1.0 percent on its revenue of January-July 2015.

  • JT acquires kretek firms

    JT acquires kretek firms

    Japan Tobacco Inc. said today that the JT Group had signed an agreement to purchase all the outstanding shares of the Indonesian kretek company PT. Karyadibya Mahardhika (KDM), and its distributor, PT. Surya Mustika Nusantara (SMN), for US$677 million.

    The transaction is expected to be completed during the fourth quarter of the 2017 fiscal year following regulatory clearance.

    In setting out its reasons for the acquisition, JT said Indonesia’s cigarette market, which was the second largest, was dominated by kreteks, or ‘clove cigarettes’.

    Currently, JT was involved mainly in the conventional cigarette business in Indonesia, it added, and the acquisition would give the group immediate scale and presence on a nationwide level in the kretek sector.

    “We are excited to enter the Indonesian kretek market nationwide by leveraging KDM’s supply chain, including procurement and production, as well as SMN’s broad-scale distribution network,” said Mutsuo Iwai, executive vice president and president of the JT Group’s tobacco business.

    “This will be an important expansion of our geographic footprint in emerging markets for our future sustainable growth. Notably, this is our first significant acquisition in South-East Asia and an excellent opportunity for us to further develop our business in a thriving region.”

    KDM has nine kretek production facilities in Java and sells its products across Indonesia through SMN. The two companies employ about 7,500 people.

    “I am confident that KDM’s excellent kretek products and local expertise and SMN’s strong distribution platform, together with JTI’s international know-how, will further strengthen our growth in Indonesia,” said Eddy Pirard, JTI’s president and CEO. “We look forward to welcoming all employees into our organization.”