Japan Tobacco Inc. said today that it had achieved, three years ahead of schedule the greenhouse gas (GHG) emissions reduction-target as set out in 2014 in the JT group Long-Term Environment Plan.
‘JT has continuously made progress towards the group’s target of reducing absolute GHG emissions … by 20 percent between 2009 and 2020 as part of its commitment to cut down its contribution to climate change,’ JT said in a note posted on its website.
‘In 2017, JT … exceeded this target by reducing its annual GHG emissions to 694 thousand tonnes compared to 880 thousand tonnes in 2009 – a 21.2 percent reduction.’
JT added that its efforts across the group had contributed to a decrease of GHG emissions on a global scale, while market contraction in the Japanese domestic tobacco business had contributed to the reduction. These outcomes had been achieved despite challenges linked to expanding operations in emerging markets and the restructuring of its manufacturing footprint in Europe.
JT said its efforts to achieve its 2020 emissions target included:
・ ‘Aligning our environmental management systems with relevant international standards ISO 14001 and ISO 50001 coupled with our JT Green System, a simplified environmental management system, developed for our smaller and less complex operations in Japan.
・ ‘Implementing the energy saving protocol with broad coverage from the manufacturing process to the office environment.
・ ‘Increasing the proportion of renewable energy use and reducing energy consumption across all operations.’
JT said it would ‘continue to develop its Long-Term Environment Plan including revised emission targets in line with science-based approaches, while taking into account the Paris Agreement on climate change’.
Tag: Japan
Fast-changing climate at JT
Cigarette sales fall
Japan Tobacco Inc.’s domestic cigarette sales volume during April, at 6.7 billion, was down by 13.2 percent on that of April 2017, 7.7 billion, according to preliminary figures issued by the company today. The April 2017 figure was down by 3.4 percent on that of April 2016.
Volume during January-April, at 26.2 billion, was down by 14.6 percent on that of January-April 2017, 30.7 billion. The January-April 2017 volume was down by 12.6 percent on that of January-April 2016.
JT’s market share stood at 61.4 percent during April, at 61.4 percent during January-April, and at 61.3 percent during January-December 2017.
JT’s domestic cigarette revenue during April, at ¥39.9 billion, was down by 13.3 percent on its April 2017 revenue, ¥46.0 billion, which was down by 3.1 percent on its revenue of April 2016.
Revenue during January-April, at ¥156.6 billion, was down by 14.1 percent on that of January-April 2017, ¥182.4 billion, which was down by 9.5 percent on its revenue of January-April 2016.New product promised
Japan Tobacco Inc’s domestic cigarette volume sales during the three months to the end of March, at 19.5 billion, were 15.0 percent down on those of the three months to the end of March 2017, 23.0 billion.
JT reported today that, at the same time, the industry’s cigarette volume, which was impacted by sales of reduced-risk products (RRP), was down by 15.6 percent from 37.7 billion to 31.8 billion.
The company’s market share rose by 0.5 of a percentage point to 61.4 percent.
JT estimated the overall RRP market in Japan during the first quarter at about 20 percent of the total tobacco industry volume. JT’s RRP sales volume was said to be 0.3 billion cigarette equivalent units with Ploom TECH’s market share estimated at between three and four percent where it was available.
JT’s domestic tobacco business core revenue declined by 10.1 percent, from ¥143.9 billion to ¥129.3 billion, while adjusted operating profit declined by 14.4 percent from ¥57.2 billion to ¥48.9 billion.
Meanwhile, Japan Tobacco International’s shipment volume during the three months to the end of March, at 98.4 billion, was increased by 7.3 percent on that of the three months to the end of March 2017, 91.7 billion. At the same time GFB (global focus brands) volume increased by 3.1 percent from 60.2 billion to 62.0 billion.
JT said that JTI’s increase in volumes had been driven by acquisitions in Ethiopia, Indonesia and the Philippines, and favorable inventory movements. Excluding these, total shipment volume declined by 2.2 percent.
‘Volume increases across Iran, Romania, Spain, Turkey and emerging markets were unable to offset the impact of the industry volume contraction, notably in France, Russia and Taiwan,’ JT reported.
‘GFB shipment volume increased 3.1 percent growing across all clusters, mainly driven by the growth of Winston, Camel and LD.
‘Total and GFB market share grew in the key markets of France, Russia, Spain and Taiwan.’
JTI’s core revenue during the first quarter, at ¥294.8 billion, was increased by 6.8 percent on that of the first quarter of 2017, ¥276.0 billion, while adjusted operating profit increased by 4.7 percent from ¥92.0 billion to ¥96.3 billion.
“Our first quarter results illustrate a solid start for achieving our full year profit target in a business environment which remains challenging,” said Masamichi Terabatake, president and CEO of the JT Group.
“Our traditional tobacco products, the platform of the Group’s profitability, delivered robust top-line growth led by pricing in the international tobacco business. We also increased our market share in the Japanese domestic tobacco business driven by MEVIUS.
“M&A activities last year contributed to our top-line growth following our strategic geographical expansion. Our recent decision to acquire Donskoy Tabak companies will reinforce our No.1 position in Russia after the closing.
“We continue to invest in Reduced-Risk Products on a global basis, as these will contribute to our future growth and ensure a wide choice of products for consumers. In Japan, we will increase our presence both geographically and through product diversification.
“Since our operation of production equipment for the tobacco capsules is being stabilized with our effort to increase its output, we will start a nationwide roll-out of Ploom TECH in June and expand to convenience stores as of July. We also are aiming to launch a new heated tobacco product as early as the year-end or early 2019.”Elevating passive smoking
The Ikoma city government in the Nara Prefecture of Japan is forcing smokers to undergo a ‘decontamination’ period before they can enter elevators, a health rule praised by some but described as draconian by others, according to a story in The Asahi Shimbun.
Workers and visitors to the city government’s offices must wait for 45 minutes after they smoke if they want to use elevators on the grounds that ‘exhaled air from smokers could cause passive smoking’, and because the impact of such passive smoking ‘is especially serious in closed spaces’.
The elevator policy started this month.
Violators face no specific penalties, but the city government is asking even visitors to abide by the rule.
Hiroshi Yamato, a health development professor at the University of Occupational and Environmental Health, Japan, believes the move will protect the health of non-smoking elevator riders. It was his research that led to Ikoma’s elevator policy.
One reason for the elevator policy is that the Ikoma city government is getting tough with smokers generally.
Starting in June, the city will impose an administrative fine of 20,000 yen ($187) on those who smoke on public roads around Kintetsu Ikoma Station.
‘City officials must actively engage in countermeasures against the issue of second-hand smoke because the burden is put on the citizens,’ according to the Ikoma government.
A law introduced in 2003 stipulates that proper countermeasures should be taken to prevent second-hand smoke negatively impacting health. The legislation was the first of its kind in Japan.
The story said it was estimated that 15,000 people died each year in Japan of heart attacks, lung cancer and brain and other diseases caused by passive smoking.Cigarette sales fall
Japan Tobacco Inc.’s domestic cigarette sales volume during March, at 7.2 billion, was down by 14.5 percent on that of March 2017, 8.5 billion, according to preliminary figures issued by the company today. The March 2017 figure was down by 20.4 percent on that of March 2016.
Volume during January-March, at 19.5 billion, was down by 15.0 percent on that of January-March 2017, 23.0 billion. The January-March 2017 volume was down by 15.3 percent on that of January-March 2016.
JT’s market share stood at 62.1 percent during March, at 61.4 percent during January-March, and at 61.3 percent during January-December 2017.
JT’s domestic cigarette revenue during March, at ¥43.2 billion, was down by 13.9 percent on its March 2017 revenue, ¥50.1 billion, which was down by 16.4 percent on its revenue of March 2016.
Revenue during January-March, at ¥116.7 billion, was down by 14.4 percent on that of January-March 2017, ¥136.3 billion, which was down by 11.5 percent on its revenue of January-March 2016.JT's domestic volume down
Japan Tobacco Inc.’s domestic cigarette sales volume during February, at 6.2 billion, was down by 16.2 percent on that of February 2017, 7.4 billion, according to preliminary figures issued by the company today. The February 2017 figure was down by 12.4 percent on that of February 2016.
Volume during January-February, at 12.3 billion, was down by 15.3 percent on that of January-February 2017, 14.5 billion. The January-February 2017 volume was down by 12.1 percent on that of January-February 2016.
JT’s market share stood at 61.8 percent during February, at 61.1 percent during January-February, and at 61.3 percent during January-December 2017.
JT’s domestic cigarette revenue during February, at ¥36.9 billion, was down by 15.3 percent on its February 2017 revenue, ¥43.6 billion, which was down by 9.1 percent on its revenue of February 2016.
Revenue during January-February, at ¥73.5 billion, was down by 14.7 percent on that of January-February 2017, ¥86.2 billion, which was down by 8.4 percent on its revenue of January-February 2016.Smoking bill adopted
The Japanese government on Friday adopted a bill aimed at strengthening restrictions on tobacco smoking in public places, according to a story in The Japan Times.
With one eye on the 2020 Tokyo Olympics and Paralympics, the government will submit the bill to the ongoing parliamentary session, aiming for its early enactment.
If enacted, the bill would revise the health promotion law by banning smoking inside such facilities as schools, hospitals and public office buildings.
The bill calls for banning smoking inside restaurants and bars that are newly opened and in existing facilities with eating and drinking areas greater than 100 square meters in area.
At those restaurants and bars, the use of heat-not-burn cigarettes would be allowed in separated smoking spaces, while the consumption of traditional cigarettes would be allowed only in closed spaces.Ploom sales heating up
Japan Tobacco Inc. said on Tuesday it would expand from March 19 the sales area of Ploom TECH starter kits and tobacco capsules to five prefectures: Kanagawa, Chiba, Saitama, Osaka, and Fukuoka.
In addition to being sold in tobacco stores, the products would be available also in convenience stores in the same prefectures, and in four cities: Sapporo, Sendai, Nagoya and Hiroshima, from April 16.
JT, which has suffered capacity problems with its heated-tobacco device, has nevertheless been selling Ploom TECH in a number of shops in Fukuoka city and online since March 2016, and has been gradually expanding its sales area.
‘The tobacco capsules have been available in convenience stores in Tokyo since November, 2017, and their off-take share of market has reached 3.3 percent,’ JT said in a note posted on its website.
Ploom TECH is described as a tobacco infused vapor product with low-temperature heating technology unique to JT. ‘The technology, which does not involve combustion nor direct heating of tobacco, allows Ploom TECH to offer clear taste with no smoke, smoke smell or ash and no negative impact on surrounding air quality,’ the note said.
‘JT aims to gain a leading position in the tobacco vapor category in the Japanese market, by providing a wider range of choice that satisfies the varying needs of our customers.’Debating smoking bans
The Ministry of Health, Labor and Welfare is set to exclude from its third basic plan to tackle cancer, numerical targets for preventing passive smoking, according to a story in the Mainichi Daily News.
The targets were in the second plan that ran from fiscal 2012 to 2016, but will be left out of the third in line with a draft revision of the Health Promotion Act, which does not include a blanket ban on smoking in public spaces but states only that ‘unwanted passive smoking will be eliminated’. The draft revision is due to be submitted during this year’s regular Diet session.
As a result, the second-hand-smoke prevention measures in the third anti-cancer plan will take a step back from specific numbers in favor of more abstract targets.
The third plan was approved by the Cabinet in October after numerical targets concerning passive smoking were put on the back burner because the health ministry and the ruling Liberal Democratic Party could not agree on a figure.
The second plan had included aims such as reducing the ratio of people exposed to second-hand smoke in restaurants and bars to 15 percent by fiscal 2022.
And an expert panel that discussed the contents of the third plan urged the government to bring in a ‘zero passive smoking’ target.
However, new measures proposed by the health ministry in January list several exemptions such as allowing smoking in existing small-scale restaurants and bars if they display a relevant sign.
Nevertheless, the anti-cancer plan states that ‘anti-passive smoking measures will be implemented thoroughly ahead of the 2020 Tokyo Olympics and Paralympics, and a society with zero unwanted second-hand smoke exposure will be realized as early as possible during the third plan’.Volume down, share up
Japan Tobacco Inc.’s domestic cigarette sales volume during January, at 6.1 billion, was down by 14.3 percent on that of January 2017, 7.1 billion, according to preliminary figures issued by the company today. The January 2017 figure was down by 11.9 percent on that of January 2016.
JT’s market share stood at 60.3 percent during January, up from 59.8 percent during January 2017. Its December-January 2017 market share was 61.3 percent.
JT’s domestic cigarette revenue during January, at ¥36.6 billion, was down by 14.0 percent on its January 2017 revenue, ¥42.6 billion, which was down by 7.6 percent on its revenue of January 2016.
