Tag: Japan

  • Visitor warnings

    Visitor warnings

    The Japanese Finance Ministry plans to expand the size of health warnings on cigarette packs, according to a story in The Japan Times quoting ‘sources with knowledge of the matter’.
    The Ministry reportedly plans to implement the change before the 2020 Tokyo Olympics and Paralympics.
    The move was said to be designed to increase people’s awareness of the health hazards related to smoking.
    And it was said, without explanation, that the move ‘takes into consideration visitors to Japan’.
    Currently, cigarette manufacturers are obliged to display health warnings on both the front and the back of cigarette packages, covering 30 percent or more of each surface.
    But the Ministry plans to increase the coverage to 50 percent or more.
    And it plans also to make the health warnings easier to comprehend by adding extra information, such as that relating to recent medical findings.
    Meanwhile, the Ministry intends to create a new mandatory warning for heat-not-burn tobacco products.

  • JT's market share improved

    JT's market share improved

    Japan Tobacco Inc.’s domestic cigarette sales volume during November, at 6.1 billion, was down by 12.8 percent on that of November 2017, 7.0 billion, according to preliminary figures issued by the company today. The November 2017 figure was down by 15.0 percent on that of November 2016.
    Volume during January-November, at 75.2 billion, was down by 11.4 percent on that of January-November 2017, 84.9 billion. The January-November 2017 volume was down by 12.1 percent on that of January-November 2016.
    JT’s market share stood at 61.8 percent during November (up from 60.3 percent during October), at 61.8 percent during January-November, and at 61.3 percent during January-December 2017.
    JT’s domestic cigarette revenue during November, at ¥39.2 billion, was down by 6.7 percent on its November 2017 revenue, ¥42.0 billion, which was down by 14.7 percent on its revenue of November 2016.
    Revenue during January-November, at ¥453.0 billion, was down by 10.3 percent on that of January-November 2017, ¥505.2 billion, which was down by 10.9 percent on its revenue of January-November 2016.

  • Survey stubbed out

    Survey stubbed out

    Japan Tobacco Inc. said today that it would no longer conduct its annual Japan Smoking Rate Survey, making the 2018 survey, whose results were published on July 30, the last.
    JT said it had conducted the independent survey since 1965 better to understand the incidence of smoking nationwide.
    The results it added had been utilized in a variety of ways.
    However, in line with personal data protection policies, several municipal governments had restricted companies’ ability to access the Basic Resident Register.
    JT had decided to terminate the survey after considering a number of factors, including the difficulty in ensuring the credibility of the results and the resource required to conduct the survey.
    ‘The Company is of the view that the smoking rate in Japan has been declining,’ JT said in a note posted on its website. ‘The decrease is due to various factors, including an aging society, increasing awareness about the health risks associated with smoking, the tightening of smoking-related regulations and rising taxes on tobacco products.’
    JT said it would continue its efforts to build a society in which smokers and non-smokers could co-exist in harmony.
    The results of the Japan Smoking Rate Survey that were compiled in May and published on July 30 showed that the incidence of tobacco-smoking in Japan had fallen by 0.3 of a percentage point: from 18.2 percent in 2017 to 17.9 percent.
    The incidence of smoking among men was down by 0.4 of a percent point to 27.8 percent, while that among women was down by 0.3 of a percent point to 9.0 percent.
    Using figures from the Statistics Bureau of the Ministry of Internal Affairs, JT calculated that Japan’s smoking population stood at 18.80 million in May, down from 19.17 million in 2017.
    The male smoking population was reckoned to be down from 14.26 million to 14.06 million, while the female smoking population was estimated to be down from 4.91 million to 4.74 million.
    The survey was conducted in May using a stratified two-stage sampling method, by mailing questionnaires to about 32,000 adult men and women using ‘tobacco products, including cigarettes, T-vapor products, pipe, cigar and other tobacco products’ nationwide. It said it had collected 19,442 (60.6 percent) valid responses from the population surveyed.

  • Packaging redesigned

    Packaging redesigned

    Japan Tobacco Inc. is to launch in Japan redesigned packaging for 17 products under the Winston brand name.
    In a note posted on its website, the company said the new-look products would be rolled out nationwide in late January.
    Winston is estimated by JT to be the world’s second biggest cigarette brand by sales volume.
    To convey more clearly the main features of the Winston brand, taste and flavor, 17 products would be rejuvenated with new designs, the note said.
    ‘This will include six products from Winston Caster White line, five products from Winston Cabin Red line, three products from Winston Inazma Menthol line, and three products from Winston Sparkling Menthol line,’ JT said.
    ‘The packaging has a simple, bold and modern design; the Winston logo, an icon of quality and taste satisfaction, is set against a background color corresponding to each product to visually express taste character of each Winston line.’
    JT said the taste and aroma of the products would remain the same.
    Each of the Winston products whose packaging is being redesigned is sold in 20-piece packs for ¥450.
    The products’ tar ratings vary from 1 mg to 8 mg, while their nicotine ratings vary from 0.1 mg to 0.7 mg.

  • Cigarette sales plummet

    Cigarette sales plummet

    Japan Tobacco Inc.’s domestic cigarette sales volume during October, at 4.9 billion, was down by 35.1 percent on that of October 2017, 7.5 billion, according to preliminary figures issued by the company today. The October 2017 figure was down by 12.5 percent on that of October 2016.
    Volume during January-October, at 69.1 billion, was down by 11.3 percent on that of January-October 2017, 77.9 billion. The January-October 2017 volume was down by 11.9 percent on that of January-October 2016.
    JT’s market share stood at 60.3 percent during October, at 61.8 percent during January-October, and at 61.3 percent during January-December 2017.
    JT’s domestic cigarette revenue during October, at ¥30.8 billion, was down by 30.8 percent on its October 2017 revenue, ¥44.6 billion, which was down by 12.4 percent on its revenue of October 2016.
    Revenue during January-October, at ¥413.8 billion, was down by 10.7 percent on that of January-October 2017, ¥463.2 billion, which was down by 10.5 percent on its revenue of January-October 2016.

  • Healthy results for Ploom

    Healthy results for Ploom

    Japan Tobacco Inc. said today that the results of a clinical study had demonstrated a reduction in exposure to, and uptake of, selected harmful and potentially harmful constituents (HPHCs) in Japanese healthy adult smokers who switched to Ploom TECH, JT’s tobacco vapor product.
    The study was conducted in consultation with a medical advisor, Yuji Kumagai, MD, PhD, a professor at the Kitasato Clinical Research Center.
    The researchers randomly assigned 60 Japanese healthy adult smokers for five days to one of three groups: (a) a group whose members switched to Ploom TECH (PT); (b) a group whose members continued to smoke their own brand of combustible cigarette (CC); or (c) a smoking abstinence group (SA).
    After the five-day study period, the levels of 15 biomarkers of exposure (BoEs) to selected HPHCs were found to have been significantly reduced in the PT group compared to those in the CC group.
    And, significantly, the magnitude of the reduction in BoE levels observed in the PT group was similar to that observed in the SA group.
    ‘The study results show that completely switching to Ploom TECH from combustible cigarettes leads to significant reductions in exposure to, and uptake into the body of, selected HPHCs,’ JT said in a note posted on its website. ‘Although further research is required, these results strongly support the potential of Ploom TECH use to reduce the health risks associated with smoking.’
    JT pointed out that, currently, there were no globally-agreed standards for assessing the relative risks to health associated with the use of different tobacco or other nicotine-containing products, though some countries had set guidelines in this field.
    ‘JT continues to engage in research and development to develop new methodologies to substantiate, through objective science, product risk reduction,’ the company said. ‘As we continue with our studies, we will communicate our progress via our science website – JT Science.’

  • Working on discrimination

    Working on discrimination

    A request by a health organization in Japan that its job openings in nursing and related occupations were specified as being limited to non-smokers has been declined by a local public employment agency after it deemed smoking ‘a matter of personal choice,’ according to a Mainichi Daily News story. The original, Japanese-language story was written by Yoshihiko Saito.
    The Chiba Foundation for Health Promotion & Disease Prevention, which is based in Chiba Prefecture’s Mihama Ward, east of Tokyo, expressed disappointment at the job center’s refusal because, it said, the request ‘was for the promotion of health’.
    Meanwhile, the Hello Work employment office countered that ‘individuals should be selected based on their skills and competency’.
    The foundation, which conducts medical examinations, has made public on its website since last year its policy of limiting job opportunities to non-smokers as part of its efforts to curb smoking.
    However, an official at the employment office said that smoking was a personal choice and that it was not possible publicly to announce such requirements.
    The official said the Ministry of Health, Labor and Welfare sought a “fair selection process” based on individuals’ skills and competency.
    “We wanted to open the door to as many applicants as possible,” the official said.
    Professor Hiroshi Yamato at the University of Occupational and Environmental Health, Japan, who studies measures to prevent smoking, said the employment office had made a mistake in its decision. “Patients face the possibility of suffering from second-hand smoke if people who smoke are hired,” said Yamato. “It’s essential for such health industries to hire only non-smokers.”
    But economist Takuro Morinaga, a regular smoker, said that the job center had acted appropriately. “Just as it’s wrong to discriminate against people because of their origin, it’s also not right to exclude individuals because they smoke,” Morinaga said.
    Meanwhile, the employment security section of the Ministry of Health, Labor and Welfare said that requiring non-smokers for certain jobs ‘cannot categorically be considered discrimination, if there are rational reasons behind such moves’.
    At Public Employment Security Offices across Japan, there had been at least 20 job postings for nurses, restaurant workers, and other occupations that specifically required non-smokers.

  • JT's cigarette volumes up

    JT's cigarette volumes up

    Japan Tobacco Inc.’s domestic cigarette sales volume during the three months to the end of September, at 23.8 billion, increased by 1.3 percent on that of July-September 2017, 23.5 billion.
    In announcing its consolidated results today, JT said that despite increased demand ahead of a tax-led retail price revision, cigarette industry volume had decreased 1.1 percent during the quarter, impacted by the expansion of the reduced-risk product (RRP) category and the underlying ‘natural decline trend’.
    But JT’s cigarette sales volume had increased 1.3 percent led by a solid performance by the MEVIUS brand and the extra demand ahead of the price revision, estimated by JT as equivalent to about 0.4 of a month’s sales.
    JT’s cigarette market share during the third quarter increased by 1.5 percentage points to 62.5 percent from that of the third quarter of the previous year, and increased by 0.9 of a percentage point on that of the second quarter of this year. JT said that it had achieved cigarette market share gains for three consecutive quarters.
    Core revenue during the third quarter, at ¥172.2 billion, was increased by 15.8 percent on that of the third quarter of 2017, ¥148.7 billion. At the same time, adjusted operating profit increased by 19.5 percent to ¥69.3 billion.
    Meanwhile, Japan Tobacco International’s total shipment volume during the three months to the end of September, at 114.5 billion, was increased by 9.3 percent on that of the July-September 2017, 104.8 billion.
    Within that total, GFBs (global flagship brands) shipment volume was increased by 2.1 percent to 70.6 billion, from 69.2 billion.
    The shipment volume growth of 9.3 percent was said to have been driven by acquisitions in Ethiopia, Greece, Indonesia, the Philippines and Russia.  ‘Excluding acquisitions and inventory adjustments, total shipment volume declined 1.1 percent,’ JT said. ‘Quarterly volume increases and market share gains in France, Germany, Iran, Poland, the UK, the USA and several emerging markets did not offset the impact of industry volume contraction, notably in Russia and Taiwan. GFB shipment volume increased 2.1 percent, driven by Winston (+ 4.8 percent) and Camel (+ 0.9 percent).
    ‘Core revenue and adjusted operating profit core revenue increased 9.0 percent driven by volume contribution from acquisitions and a strong price/mix. Adjusted operating profit grew 9.5 percent including investments to strengthen the business foundation in the markets where we made acquisitions.’
    Including the results of its other businesses, JT’s July-September revenue increased by 9.7 percent to ¥600.5 billion, while its adjusted operating profit increased by 12.7 percent to ¥193.2 billion. Operating profit increased by 11.8 percent to ¥174.8 billion.
    In announcing the three-month and nine-month results, JT group president and CEO, Masamichi Terabatake, said that the group’s solid performance in the third quarter was mainly driven by robust pricing gains in the international tobacco business, leading it to revise upwards its forecast for adjusted operating profit at constant foreign exchange for the full year.
    “With strong momentum in our business, I am confident that the JT group is well positioned to achieve its mid- to long-term objectives, but we will continue to monitor the impact of currency movements and geopolitical risks,” he was quoted as saying.
    “Our total market share increased in Japan, demonstrating the resilience of our business and the strength of our brands. As for reduced-risk products, establishing a low-temperature heating category is taking longer than expected. We are therefore increasing our efforts to communicate the differences and benefits of the product compared to a high-temperature heating category.
    “In light of a changing regulatory environment and consumer trends, we are convinced that demand for the low-temperature heating products will grow further. Establishing this category remains our first priority to achieve a leading position, and as we expect the RRP market to be more competitive, we will invest for future growth.
    “We will continue to provide a range of choices within our portfolio strategy, including conventional tobacco products as the platform of the group’s profitability and RRP as our future growth driver.”

  • Leaf price increased

    Leaf price increased

    The grower price for leaf tobacco produced during Japan’s 2019 harvest has been set at an average of ¥1,912.32 per kg for all leaf types, an increase of 1.33 percent on the 2018 price of ¥1,887.14 per kg, which was 0.51 percent up on the 2017 price of ¥1,877.57 per kg.
    But the 2019 price has been set 0.40 percent lower than it was in 2015. The 2017 price was the same as that for 2016 tobacco, but the 2016 price was down by 2.2 percent on that of 2015, ¥1,920.10 per kg, which was up 0.71 percent on that of the 2014, ¥1,906.47 per kg. The 2014 price was the same as that of 2013 but up by 0.84 percent on that of 2012.
    Japan Tobacco Inc. said yesterday that the Leaf Tobacco Deliberative Council (LTDC), chaired by Yoshio Kobayashi, had released its annual determinations for the domestic leaf-tobacco cultivation area and grower prices for 2019 in response to a proposal submitted by JT earlier in the day.
    The Council was said to have been in general agreement with JT’s proposal, and determined that, in 2019, the domestic tobacco cultivation area should be set at 6,886 ha, a decrease of 4.8 percent compared to the contracted area of the previous year, which included inactive areas in Fukushima.
    The domestic tobacco-cultivation area for 2018 was set at 7,436 ha, a decrease of 4.7 percent compared to the contracted area of the previous year.
    The council went along too with JT’s price recommendation of ¥1,912.32 per kg for all leaf types.
    The LTDC was described as a council that confers on important matters concerning the cultivation and purchase of domestically-grown leaf tobacco in response to inquiries by JT. It comprises 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 academics.

  • New IQOS versions

    New IQOS versions

    Philip Morris International said yesterday that it had launched the next generation of its heated-tobacco product, IQOS.
    ‘The new IQOS 3 and IQOS 3 MULTI integrate extensive consumer insights and feedback to improve design and user experience while maintaining signature taste, sensory attributes and ritual — all underpinned by strong scientific substantiation,’ PMI said in a note posted on its website.
    ‘The new versions aim to further encourage a growing number of smokers to switch, to the benefit of their health, public health and, ultimately, society.
    ‘The new iterations were launched today in Tokyo, Japan – the country considered the birthplace of IQOS.’
    “Our dream was to create a better alternative for smokers, and IQOS has made this dream a reality; it’s a revolution for the 1.1 billion people who smoke,” André Calantzopoulos, PMI’s CEO, was quoted as saying. “IQOS 3 and IQOS 3 MULTI deliver significant improvement and innovation and mark another step toward convincing all men and women who would otherwise continue to smoke to switch to smoke-free alternatives. IQOS consumers know that this product changes many things in their lives – we thank them, and we thank Japan for leading this positive change.”
    PMI said that robust science underpinned every development at PMI. ‘Its scientific assessment program is based on longstanding practices of the pharmaceutical industry and is in line with US Food and Drug Administration (FDA) guidance,’ the note said.
    ‘IQOS produces an aerosol that contains on average 90 percent lower levels of harmful chemicals than cigarette smoke. The totality of PMI’s preclinical and clinical evidence indicates that switching completely to IQOS presents less risk of harm than continued smoking.
    ‘Evidence also shows that IQOS does not negatively affect indoor air quality. On average, 70 to 80 percent of IQOS users have quit cigarettes, which makes IQOS the most compelling smoke-free alternative today.’
    PMI said it had filed a Modified Risk Tobacco Product Application (MRTPA) for IQOS with the FDA, which was still under review.