Tag: Japan

  • Smoking ban foreshadowed

    Smoking ban foreshadowed

    The restaurant chain operator Skylark Holdings said on Tuesday that it would impose a tobacco smoking ban at all of its outlets in Japan from September, according to a story in The Japan Times.

    A Skylark Holdings official was quoted as saying that the group, which is thought to have about 3,200 outlets and which operates the Jonathan’s and Gusto chains, “wants to prevent undesirable passive smoking, and cares about the health of customers and some 100,000 employees”.

    Currently, many Skylark group restaurants have smoking areas that are separated from non-smoking areas, but these are to be removed.

  • Cigarette revenue increased

    Cigarette revenue increased

    Japan Tobacco Inc.’s domestic cigarette sales volume during February, at 5.7 billion, was down by 7.2 percent on that of February 2018, 6.2 billion, according to preliminary figures issued by the company today. The February 2018 figure was down by 16.2 percent on that of February 2017.

    Volume during January-February, at 11.6 billion, was down by 5.5 percent on that of January-February 2018, 12.3 billion. The January-February 2018 volume was down by 15.3 percent on that of January-February 2017.

    JT’s market share stood at 61.7 percent during February, at 61.4 percent during January-February, and at 61.8 percent during January-December 2018.

    JT’s domestic cigarette revenue during February, at ¥36.9 billion, was down by 0.1 percent on its February 2018 revenue, also shown as ¥36.9 billion, which was down by 15.3 percent on its revenue of February 2017.

    Revenue during January-February, at ¥74.8 billion, was increased by 1.7 percent on that of January-February 2018, ¥73.5 billion, which was down by 14.7 percent on its revenue of January-February 2017.

  • Fuming over smoke

    Fuming over smoke

    The Toyota Motor Corp. has said it will ban all its Japanese employees from smoking by the end of this year, according to a story in the English-language daily, The Japan News, quoting the Yomiuri Shimbun newspaper.

    The ban is due to be imposed at its headquarters, and its branch offices and production facilities nationwide.

    The company is said to be planning to do away with all indoor smoking areas and persuade its employees to quit smoking.

    According to a Teikoku Databank survey in October 2017, less than 20 percent of major companies said they had completely banned smoking in all workplaces. The figure for production facilities is about 10 percent.

    But the decision by Toyota is likely to affect other companies’ efforts to introduce total smoking bans.

    Toyota has been organizing classes to encourage employees to quit smoking and handing out medication to treat nicotine addiction.

    The story said the company had banned smoking during working hours in principle in 2013.

    It said that, as a consequence, the smoking rate within the company had fallen from 51 percent in 2004 to 25.4 percent in 2018, but it is likely that a host of other issues were involved; perhaps including the employment over these years of a higher proportion of women, who are less likely than men to smoke.

    The story said that Japan’s revised Health Promotion Law would take full effect in April 2020 ahead of the Tokyo Olympics and Paralympics. ‘The law will, in principle, completely ban smoking at workplaces, restaurants and other facilities,’ it said.

  • JT reducing emissions

    JT reducing emissions

    Japan Tobacco Inc.’s long-term greenhouse gas (GHG) emission reduction target has been approved as a Science Based Target (SBT) by the Science Based Target initiative (SBTi), according to a note posted on the company’s website today.

    SBTi is an international partnership between CDP (formerly the Carbon Disclosure Project), the UN Global Compact (UNGC), the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) that mobilizes companies to set SBTs in the transition to a low-carbon economy.

    ‘Our approved target, developed in line with the Paris agreement on climate change, is to reduce absolute Scope 1 and Scope 2 GHG emissions by 32 percent and absolute Scope 3 Category 1 GHG emissions by 23 percent by 2030,’ the note said. ‘This journey towards a zero-carbon future will be achieved by reducing our energy usage, as well as increasing the proportion of electricity sourced from renewable sources, while constantly looking at innovative ways to achieve and exceed our target.’

    “We are proud that SBTi has approved our target.” Chigusa Ogawa, senior vice president, sustainability management, was quoted as saying. “As a group, we strive to foster a sustainable environment for our business and for future generations. Climate change remains a key environmental challenge for us, as it can have a direct impact on our value chain and the society at large. As a global business, we recognize the opportunity – and the importance – to be part of the solution,” Ogawa added.

    The JTI note said that the company had been strengthening its approach to reducing its environmental impact under the JT Group Long-Term Environment Plan 2020, which had been established in 2014.

    ‘In 2017, the initial target to reduce GHG emission by 20 percent was already achieved and exceeded – three years ahead of schedule,’ the note said. ‘Our new target approved as an SBT demonstrates our ongoing commitment to tackle climate-related issues.

    ‘We are now establishing the JT Group Environment Plan 2030, in which our SBT fits as one of the key targets.

    ‘Further details will be published in the JT Group Sustainability Report FY2018 which will be issued in May 2019.’

  • Olympic effort on smoking

    Olympic effort on smoking

    The Tokyo Organizing Committee of the 2020 Olympic and Paralympic games intends to impose a tobacco smoking ban at all indoor and outdoor games venues, according to a story in The Japan Times citing The Yomiuri Shimbun.

    Quoting unnamed sources, the Times said it would be the first time that such a measure had been taken at a Summer Olympic Games.

    In 2017, the committee announced plans to ban smoking within buildings used for the games. However, at that time, it was still studying a ban on smoking outside the buildings because there had been smoking areas on the premises of the 2012 London Olympics and the 2016 Rio de Janeiro Olympics.

    According to the sources, the Tokyo committee’s move not to allow smoking areas within the sites of the two games would be line with the wishes of the International Olympic Committee, which promotes smoke-free games.

    At the PyeongChang Winter Olympics in 2018, a total smoking ban was imposed on venue sites, but cigarette butts ended up being scattered around entrances. So the Tokyo committee will discuss with local governments, including the Tokyo metropolitan government, what measures will have to be taken.

  • Rate of volume decline falls

    Rate of volume decline falls

    Japan Tobacco Inc.’s domestic cigarette sales volume during January, at 5.9 billion, was down by 3.8 percent on that of January 2018, 6.1 billion, according to preliminary figures issued by the company today. The January 2018 figure was down by 14.3 percent on that of January 2017.

    JT’s market share stood at 61.1 percent during January, up from 60.3 percent during January 2018. Its December-January 2018 market share was 61.8 percent.

    JT’s domestic cigarette revenue during January, at ¥37.9 billion, was up by 3.6 percent on its January 2018 revenue, ¥36.6 billion, which was down by 14.0 percent on its revenue of January 2017.

  • Acquisitions boost volumes

    Acquisitions boost volumes

    Japan Tobacco Inc. reported today that its domestic cigarette sales volume during the year to the end of December, at 82.0 billion, was down by 11.7 percent on that of the year to the end of December 2017, 92.9 billion.

    This compared with a JT-reported industry-wide decline of 12.4 percent from 151.4 billion to 132.7 billion that was said to have been caused mainly by the expansion of the reduced-risk product (RRP) category and an underlying ‘natural decline trend’.

    As a result, JT’s cigarette market share increased by 0.5 of a percentage point to 61.8 percent.

    JT reported that its RRP sales volume had reached 2.8 billion cigarette-equivalent units in 2018, and it estimated that overall RRP sales in Japan represented about 21 percent of total tobacco-industry volume.

    JT’s domestic tobacco business core revenue was said to have fallen by 1.4 percent due to an unfavorable cigarette volume contribution of ¥64.9 billion, partially offset by a positive cigarette price/mix variance of ¥5.3 billion and a ¥51.3 billion increase in RRP and other factors, resulting in RRP revenue reaching ¥64.6 billion.

    Domestic tobacco business adjusted operating profit declined 10.0 percent due to a negative cigarette volume contribution of ¥54.4 billion and an increase in sales-promotion expenses, partially offset by an increase in RRP-related profit, and a favorable cigarette price/mix variance of ¥5.3 billion.

    Meanwhile, Japan Tobacco International’s total tobacco shipment volume during the year to the end of December, at 427.6 billion, was up by 7.3 percent on that of the year to the end of December 2017, 398.5 billion.

    JTI’s global flagship brand shipment volume was increased by 2.3 percent from 260.4 billion to 266.4 billion.

    JT reported that JTI’s 7.3 percent shipment growth was driven by acquisitions in Bangladesh, Ethiopia, Greece, Indonesia, the Philippines and Russia. Excluding acquisitions, total shipment volume declined by 1.1 percent.  Volume increases and market share gains in the Czech Republic, Germany, Hungary, Iran, Italy, Luxembourg, the Netherlands, Poland, Spain, Sweden, Switzerland, the USA and several emerging markets did not offset the impact of industry volume contraction, notably in France, Russia and Taiwan.

    JTI’s core revenue during the year to the end of December, at ¥1,250.7 billion, was increased by 6.3 percent on that of the year to the end of December 2017, ¥1,177.0 billion. Adjusted operating profit was up by 9.5 percent to ¥384.5 billion.

    JT’s consolidated revenue for the year to the end of December, at ¥2,2216.0 billion, was up by 3.6 percent on that of the year to the end of December 2017, ¥2,139.7 billion.

    Operating profit was up by 0.7 percent to ¥565.0 billion, while adjusted operating profit was up by 1.73 percent to ¥595.5 billion.

    Masamichi Terabatake, president and CEO of the JT group said that in 2018 the Group had increased adjusted operating profit at constant FX by 8.9 percent in a challenging business environment. “We were also able to strengthen our business foundation for sustainable profit growth from 2019 onwards,” he was quoted as saying.

    “In the international tobacco business, market share gains and strong pricing in key markets yielded outstanding performance which was supported by the positive impact of acquisitions.

    “In the Japanese domestic tobacco business, we completed the nationwide expansion of Ploom TECH and solidified our leading position in cigarettes by increasing our market share.

    “Our 2019 Business Plan reaffirms our strategic direction. Our goal is to deliver mid- to high-single-digit annual average profit growth in the mid- to long-term. To achieve this, we will deliver sustainable earnings growth in the total tobacco business, by offering a wide portfolio of conventional products and RRPs to meet diverse consumer needs.”

  • JT’s domestic sales down

    JT’s domestic sales down

    Japan Tobacco Inc.’s domestic cigarette sales volume during December, at 6.8 billion, was down by 15.1 percent on that of December 2017, 8.0 billion, according to preliminary figures issued by the company today. The December 2017 figure was down by 16.5 percent on that of December 2016.

    Volume during January-December, at 82.0 billion, was down by 11.7 percent on that of January-December 2017, 92.9 billion. The January-December 2017 volume was down by 12.5 percent on that of January-December 2016.

    JT’s market share stood at 62.1 percent during December (up from 61.8 percent during November), at 61.8 percent during January-December, and at 61.3 percent during January-December 2017.

    JT’s domestic cigarette revenue during December, at ¥43.7 billion, was down by 8.4 percent on its December 2017 revenue, ¥47.7 billion, which was down by 16.3 percent on its revenue of December 2016.

    Revenue during January-December, at ¥496.7 billion, was down by 10.2 percent on that of January-December 2017, ¥552.9 billion, which was down by 11.4 percent on its revenue of January-December 2016.

  • Huge fall in smoking

    Huge fall in smoking

    The proportion of tobacco smokers is dropping in Japan, with the figure for last year down by half on that of 1989, 36 percent, according to a story in The Japan Times.

    Japan Tobacco Inc. attributes the decline to increasing health awareness, an aging population, tougher smoking regulations and higher cigarette prices due chiefly to tax hikes.

    According to a JT survey, the smoking rate among people aged 20 and older fell from 36.1 percent in 1989 to 17.9 percent in 2018. The proportion of smokers among adult men fell from 61.1 percent to 27.8 percent, while the rates for both men and women have hit their lowest levels since the survey was launched in 1965.

    The Times said the smoking rate had continued falling since peaking in 1966, at 49.4 percent in total and at 83.7 percent for men.

    Fumisato Watanabe, head of a center for information on tobacco issues, was quoted as saying that almost no public facilities had smoking regulations when he started a movement for non-smokers’ rights about 40 years ago.

    But in 1987, railway stations started banning smoking in phases and later smoking became prohibited inside trains as well. In 1999, airlines banned smoking on all passenger planes.

    And under the revised health promotion law that was enacted in July 2018, smoking will be prohibited in principle from April 1, 2020, at facilities that many people use, such as offices, restaurants and hotel lobbies. But such facilities will be allowed to set up special rooms, where no food or drink will be served, that can be used exclusively by smokers.

    Starting on July 1, 2019, smoking will be prohibited inside all buildings at schools, hospitals and government establishments.

    Ordinances with tougher regulations on tobacco smoking have been established also in some municipalities, including Tokyo and the city of Chiba.

    Watanabe, 81, said the movement for non-smokers’ rights began with the wish to prevent passive smoking. “It was good that the law was revised and ordinances were established, although they are still weak,” he said.

    Meanwhile, smokers have seen tobacco prices rise. In 1989, the price of a pack of JT’s Mild Seven cigarettes, the predecessor of the Mevius brand, stood at ¥220. Now the cost is ¥480.

    And major cigarette makers are now focusing on heat-not-burn products. A JT official said such products smelt less and were considered to pose lower health risks than did combustible cigarettes, an idea that seems to have some official blessing. Restaurants will be allowed to set up special rooms for people using heat-not-burn tobacco products where food or drink will be served.

  • Bans now in the running

    Bans now in the running

    The Japanese athlete, Naoko Takahashi, who won the gold medal in the women’s marathon at the 2000 Sydney Olympics, has been appointed as an ambassador to promote a Tokyo ordinance aimed at preventing passive tobacco smoking, according to a Maiinichi Daily News story.

    Japan has struggled to bring in public-places tobacco smoking regulations and most of the efforts to do so have centered on a perceived need to enact such legislation before the Tokyo Olympics, which are due to run from July 24 to August 9, 2020.

    Tokyo’s ordinance, which partially came into force at the start of this month, asks smokers to pay attention to what they are doing to prevent those around them from being exposed to second-hand smoke.

    At the same time, parents and guardians are urged to try to protect children from passive smoking.

    Later this year, smoking will be prohibited on the premises of schools, hospitals and other public facilities in Tokyo.

    The story said that, on April 1, 2020, all aspects of the ordinance were scheduled to become effective so that smoking at restaurants that hire employees would be ‘basically banned’.

    Takahashi received a letter of appointment to her ambassadorial role from Tokyo Governor Yuriko Koike.