TobaccoReporter logo

Tag: JTI

  • Canadian Tobacco Settlement a Step Closer to Complete

    Canadian Tobacco Settlement a Step Closer to Complete

    After years of mediation to resolve long-pending tobacco product-related litigation in Canada, the court-appointed Mediator’s and Monitor’s Plan of Compromise and Arrangement was today (March 7) sanctioned by the Ontario Superior Court of Justice in the ongoing proceedings under the Companies’ Creditors Arrangement Act (CCAA). The sanctioning was a significant step in finalizing the $22.7 billion settlement agreement with Imperial Tobacco Canada (a BAT subsidiary), JTI-Macdonald Corp., and Rothmans, Benson & Hedges (a PMI subsidiary). The settlement has been in negotiations since March 2019.

    Following a judicial hearing on the proposed plan, the three companies reached a consensual resolution of all outstanding objections to it. The plan will resolve all Canadian tobacco litigation and provide a full and comprehensive release to the companies.

    “We are pleased that the Court has sanctioned the Mediator’s and Monitor’s Plan of Compromise and Arrangement, a critical milestone in the CCAA process, Imperial Tobacco Canada wrote in a statement. “We look forward to the successful implementation of this plan, which maximizes value for claimants, resolves outstanding tobacco litigation, and allows us to emerge from CCAA protection. While there are still some steps that must be taken to implement the settlement, Imperial Tobacco Canada is committed to continue working with the relevant parties to complete this process as quickly as possible for the benefit of all stakeholders.”

  • JTI and Others Close to Concluding Canadian Lawsuit

    JTI and Others Close to Concluding Canadian Lawsuit

    JTI-Macdonald Corp. (JTI-MC) announced that last week it, along with co-defendants Imperial Tobacco Canada (ITC), and Rothmans, Benson & Hedges (RBH), filed materials with the Ontario Superior Court of Justice in joint support of plans to settle all pending tobacco-related claims in Canada, subject to proposed amendments being approved by the court.  

    The filings stem from a 2019 class-action lawsuit, where in October 2024 the court-appointed mediator proposed the three companies pay a total of 32.5 billion Canadian dollars to settle all litigation. In January, JTI-MC reached an agreement with the other co-defendants on the terms of allocation of payments that were then filed with the Ontario Superior Court Feb. 27, which now awaits court approval.

    As a result, JTI-MC intends to record a provision for litigation losses related to the payment of the settlement amount as an operating expense in fiscal year 2024, for an adjusting subsequent event.

  • JTI in no Hurry to Launch Vape in Malaysia

    JTI in no Hurry to Launch Vape in Malaysia

    Malaysia’s Control of Smoking Products for Public Health Act 2024 has been implemented in stages since it was first launched in October of last year, dictating what can and cannot be done around the sale and use of tobacco and nicotine products. The next stage will be implemented in April when the display of all tobacco and vape products will be banned at retail shops.

    Speaking at a conference this week, JT International’s (JTI Malaysia) managing director, Juliana Mohd Yahaya, was asked if JTI would be introducing Logic, the company’s featured vape device, to the Malaysian market soon.

    “We are not in a hurry,” she said. “If you look at Malaysia’s vaping industry right now, it is not [fully] regulated yet. What we do not want is [for our vape products] to appeal to minors.

    “Once all of the regulations are in place and [the industry is] brought under control, that’s where we will consider that [launching vape products in Malaysia]. We are a responsible company, and we do not want to be selling our vape products to anyone under 18.”

    Until then, Juliana said JTI is more than happy to focus its efforts on promoting Ploom, its heated tobacco product (HTP), that was launched in Malaysia in January.

     “[Ploom has] performed better than what we expected, I guess, also thanks to the fact that HTPs are not a new category,” she said. “If you look at the industry so far, there has been only one choice [Philip Morris’ IQOS]. But now, we have another alternative that we can give the consumers.”

  • Malaysia’s Illicit Tobacco Trade Down, But Evolving 

    Malaysia’s Illicit Tobacco Trade Down, But Evolving 

    Officials in Malaysia announced that 55% of the cigarettes being purchased are illegal, a decline for the fourth consecutive year since 2020’s peak of 63.8%. JT International Bhd (JTI Malaysia) managing director Juliana Mohd Yahaya said law enforcement efforts in curbing illegal tobacco smuggling and a ban on trans-shipments of tobacco products are helping the cause.

    “We expect the incidence of illicit cigarettes to continue to decline this year,” she said at a news conference discussing the nation’s annual Illicit Cigarettes Study for 2024. “What has also contributed to the reduction in illicit cigarette incidence is the ongoing tobacco tax moratorium by the Ministry of Finance. But we know that at some point, [the moratorium] will end, so if the government were to impose an excise increase on tobacco products, we hope that it would be a moderate and predictable one.”

    Another finding from the study was that an ever-increasing number, 13.8%, of illicit cigarettes bore fake tax stamps, leading companies like JTI Malaysia to advocate for the government’s transition from paper-based tax stamps to digital tax codes, aligning with the government’s digitalization drive.

    Malaysia’s nicotine makeup consists of consumers using 23.8% legal cigarettes, 29.9% illicit cigarettes, 25.3% e-cigarettes/vapes/HTPs, and 20.4% of users who use both traditional and alternative products.

  • JTI Expands Nordic Spirit Line

    JTI Expands Nordic Spirit Line

    JTI UK has expanded its Nordic Spirit nicotine pouch range with the introduction of two variants designed to elevate the consumer experience: Frosty Berry and Frosty Mint flavors. Available now for independent retailers and symbol groups, both products feature higher menthol and moisture content combined with an improved flavor recipe, delivering an instant and intensified flavor burst, according to the company.

    “Increased flavor intensity and mentholated products are the top priorities for consumers in this category,” said Bruce Terry, Portfolio Brand Manager at JTI UK. “That’s why we focused on these elements when developing our new Frosty range.

    “The improved taste and intensified experience of our Frosty variants position us to drive growth in the category, offering retailers an exciting opportunity to boost sales and profits.”

    As the UK nicotine pouch market continues to grow, this launch addresses consumer preferences for stronger strengths and refreshing flavors. Strong and extra-strong variants now account for 60.1% of the nicotine pouch market, while mint flavors dominate with an 83.6% share. Meanwhile, fruit flavors hold a notable 15.5% share, making these new variants perfectly aligned with market trends.

    As the UK’s No.1 nicotine pouch in the independent channel, Nordic Spirit generates £4.5 million in monthly sales.

  • JTI Sees Shift to Cheaper Cigarettes Continuing

    JTI Sees Shift to Cheaper Cigarettes Continuing

    To combat decreasing volumes, many cigarette companies are forced to increase prices to keep the needed revenue margins. That, combined with continuously rising federal and state taxes, has made buying a pack of cigarettes in the United States quite expensive. As a result, many smokers are leaving traditional premium name brands and trading down to the value and super-vale segment of the market.

    Japan Tobacco International’s finance chief Vassilis Vovos said he expects pricier brands to continue losing ground even as affordability improves, and that the shift toward cheaper cigarette brands in the U.S. will top 42% of the market by 2027.

    JTI completed the acquisition of U.S. tobacco company Vector Group last year, which pushed its share of the super-value segment to 40% by the fourth quarter of 2024.

    “This is a hard trend and we see it continuing over time,” Vovos said, adding steep price increases will continue to push consumers to trade down, a trend visible in many markets where big price gaps emerge.

    Industry giants such as Altria and BAT hope the trend away from premium brands is temporary and will recede as economic pressures ease. BAT, which does not produce a product for either of the value markets, saw its U.S. volume fall 10.1% last year.

  • Japan Tobacco Investing Heavy on RRPs

    Japan Tobacco Investing Heavy on RRPs

    Japan Tobacco Group, the parent company of Japan Tobacco International (JTI), announced that it will be investing 450 billion yen (USD $3 billion) on reduced-risk products (RRPs) by the end of 2026. The parent company is based in Tokyo and invests in various fields including pharmaceuticals and foods, while JTI is based in Switzerland.

    “One of our ambitions is to recoup by 2028 our investments in RRPs and reach profitability,” said Kazuhito Sumimoto, JT investor and media relations vice president, who noted the investment covers capital expenditures, sales promotions, and research and development.

    This investment stands on the shoulders of JTI’s 2021 launch of Ploom X—the latest generation of its heated tobacco product line designed to meet the changing needs of smokers.

    “The geo-expansion of Ploom, our investment priority, has now reached 23 markets, and in Japan, the largest Ploom market, we continued to gain share in this segment, reaching 11.8 percent quarter-to-date,” said Masamichi Terabatake, JT Group’s president and chief executive officer, who added that Ploom’s overall sales grew 40% in the third quarter of 2024

    JT investor and media relations director Ichiro Kawai said the company expects combustibles to decline 2% by 2035, but heated tobacco products to rise by 8%.

    It took two years for Ploom X to expand to 12 markets outside of Japan, including being introduced in the Philippines in November 2024. Its success in the Philippines gives JTI momentum and confidence that it can reach its goal of being in 40 global markets by 2026.

  • Report: E-Cig Market to Reach $23B by 2029

    Report: E-Cig Market to Reach $23B by 2029

    The E-cigarette market is projected to grow from its current $18.98 billion to $23.15 billion by 2029, an increase of 3.4%, that according to the “E-Cigarette Market Research Report 2020-2029” that was released today.

    The global e-cigarette market is highly competitive, characterized by the presence of key players such as Altria Group, British American Tobacco (BAT), Imperial Brands, and Japan Tobacco International (JTI). With the declining sale of traditional cigarettes due to increasing health awareness and regulatory pressures, such companies have aggressively entered the e-cigarette market, pushing innovation and technology.

    The global e-cigarette market continues to see user-friendly products introduced that are popular with beginners, as well as open systems including mods that offer greater customization options for experienced vapers. Advancements in battery technology and improvements in e-liquid formulation have likewise helped advance the vaping experience.

    Governments, non-profit organizations, and healthcare providers have for decades been pushing awareness against the health risks of smoking, which is positively impacting the e-cigarette market.

  • Celebrating Diversity

    Celebrating Diversity

    Diversity and equal opportunities are an integral part of JTI’s business success.

    By Stefanie Rossel

    According to studies, diversity in the workplace can contribute to smarter decision-making, greater productivity and reduced rates of employee turnover, along with improved corporate reputations. In recent years, companies around the world have increasingly implemented diversity, equity and inclusion (DEI) programs—a collection of practices and policies intended to support people from varying backgrounds and give them the resources they need to thrive in the workplace.

    More precisely, diversity is embracing the differences everyone brings to the table, whether it’s someone’s race, age, ethnicity, religion, gender, sexual orientation, physical ability or other aspects of social identity. With different backgrounds come different perspectives, which ultimately lead to better ideas and solutions and better outcomes—or products, for that matter.

    To ensure equal circumstances for all individuals across the organization, employers must recognize that not everyone is starting at the same level. Rather than giving everybody the same tools, companies that strive for equity provide employees with what they individually need to have an equal opportunity for success.

    Inclusion means that while the workplace requires professionalism and etiquette, employees should not be barred from being themselves; they should not worry about “code-switching” or shielding part of their identity when going to work. Inclusion is what maintains diversity.

    Research conducted by McKinsey shows that in 2020, companies worldwide spent an estimated $7.5 billion on DEI-related efforts, a number that was projected to double by 2026. According to a LinkedIn analysis, the number of chief diversity and inclusion officer positions grew by 168.9 percent in the U.S. between 2019 and 2022. However, DEI programs have been under siege from some quarters recently, with U.S. state lawmakers launching efforts to restrict DEI efforts in public schools and universities and companies rolling back their efforts. DEI initiatives, opponents argue, are an overly political, damaging waste of time or a distraction from organizations’ primary activities.

    In fact, there has been little scientific research to evaluate the effects of DEI, which emerged at the time of the U.S. Civil Rights Movement in the 1960s. A 2023 review by Boston University researchers found that successful programs were composed of trainings that were grounded in theory. Effective trainings were longitudinal instead of one-time and not only focused on defining concepts but also provided additional support, trainings and skills, such as how to navigate challenging conversations. In successful programs, DEI was not limited to diversity but also emphasized inclusion, meaning companies engaged individuals or groups who had been historically excluded from decision-making activities. This, in turn, drove equity.

    Culture of Inclusivity

    Fernando Bonaduce

    Geneva-headquartered Japan Tobacco International has had a comprehensive DEI program in place since 2018. “We foster an environment that embraces diversity, ensures equal opportunities and provides a safe space for everyone to contribute,” says Fernando Bonaduce, JTI’s DEI director. “This commitment is integral to our business success. I am proud that all JTI branches worldwide have adopted DEI principles. Our employees play a crucial role in this endeavor. Starting from the highest levels of the organization and extending through our global team, we are nurturing a culture of inclusivity. This gives everyone the freedom to choose, think, express themselves and be authentic.”

    In 2020, JTI launched its first employee resource group (ERG), PRIDE, for the LGBTIQ+ community. “Today, we have four ERGs with hundreds of change agents involved in key DEI areas such as gender equality, race and ethnic inclusion, gender identity and sexual orientations or diverse thinking,” says Bonaduce. Changes in corporate culture, he notes, require both time and effort and are “anything but an easy road.”

    In 2021, the company committed to increasing women in leadership roles to 30 percent by the end of 2023. “We achieved this ambition in August of that year, well ahead of schedule,” says Bonaduce. “Our commitment to gender equality reflects our efforts to foster a diverse, equitable and inclusive workplace, creating an environment where female colleagues are set up for success.”

    One year later, the company’s DEI division was merged with the human resources department, an initiative that has been guided by a DEI strategy focusing on four strategic pillars: strategic commitment, value diversity, building inclusion and nurturing employees’ well-being. “This strategic focus has influenced talent attraction, retention and promotion processes by ensuring all our decisions are geared toward bringing out the human best in our organization. For instance, embedding the DEI principles means that talent management needs to develop a diverse representation in leadership roles,” says Bonaduce.

    The company’s DEI-rooted approach, he says, implies that JTI constantly seeks to identify and remove barriers that prevent underrepresented groups from fully participating in the whole recruitment process. Initiatives to achieve this objective include encouraging and monitoring language to not exclude potential applicants based on their background and designing interviews and panels in a way to provide every candidate with the best chance for success. “This approach helps us remove biases from the selection process as best we can,” says Bonaduce.

    Work-Life Balance

    JTI uses channels and platforms that directly address underrepresented groups, like myGwork, to attract a more diverse applicant pool. The remarkable increase in the number of women in leadership roles, Bonaduce says, is a direct result of the company’s efforts, which aim to enhance the visibility of its top female talents and provide mentorship for them. “Every year, each member of JTI’s global executive committee, except for the CEO, sponsors a senior female talent from around the globe for a period of 12 months. This program aids our talented individuals in their career development, fostering an inclusive and diverse culture from the very top of our organization.”

    To help employees recognize and overcome unconscious biases and ensure managers become a catalyst for inclusion and nurture individuals as they are, the company offers various training programs.

    Mental health is also an important element in JTI’s DEI strategy. “Our employees dedicate a significant portion of their day to work-related activities,” says Bonaduce. “We know how important physical fitness is for our health and well-being. Unfortunately, people can still hesitate to openly seek psychological guidance or support with mental health due to uncertainty about others’ reactions or feelings of shame. At JTI, we are committed to helping people remove the stigma that still exists in some parts of society.”

    The company therefore offers its employees a mental fitness test so that they can check how balanced and healthy they are, live training sessions and a global employee assistance program that provides round-the-clock access to over 40,000 counselors, mental health trainers and specialists 365 days a year. “This service is free, confidential and professional, with assistance available in 200 different languages.” Additional mental health first-aid program modules promote peer-to-peer support on various mental health and personal well-being topics.

    Taking Pride in Being Different

    Rene Staebe

    PRIDE is a particular success story within the company’s DEI approach. “Having an LGBTIQ+ ERG like PRIDE at JTI is crucial for fostering an inclusive and supportive workplace,” says Rene Staebe, co-founder of PRIDE. “Such groups provide a safe space where individuals can express their true selves, share their experiences and find solidarity among peers. This sense of belonging not only boosts individual well-being and job satisfaction but also enhances overall company performance.” According to research, a third of LGBT+ people in the European Union hide their identity from co-workers, and even more have faced discrimination at work because of who they are.

    “Our initiatives focus on educating colleagues, promoting understanding and encouraging open dialogue,” says Staebe. He says he has witnessed remarkable and positive changes across the company since PRIDE’s creation, one of the most significant shifts being the noticeable increase in active allies. “Employees from all levels and departments have stepped up to show their support, especially at senior management level, who have been instrumental in setting a powerful example for others to follow whilst their endorsement has helped embed the values of PRIDE into the fabric of our corporate culture, making inclusivity a core component of our identity,” says Staebe. “We have seen a substantial increase in the number of internal webinars and educational sessions focused on LGBTIQ+ issues providing valuable platforms for sharing knowledge, raising awareness and fostering open dialogue. This has been aided by the implementation of more inclusive policies and practices to include more comprehensive nondiscrimination clauses and more inclusive healthcare and parental leave benefits.”

    Meanwhile, PRIDE has a global ERG footprint, with chapters in Canada, the U.S., Switzerland, the Philippines and 13 other countries. Staebe highlights that continuous support is being provided to employees in regions that are not friendly toward the queer community. PRIDE is exploring ways to empower local markets, such as the Middle East, by setting up resource groups while complying with local regulations.

     

    “We are always striving to create a confidential environment where LGBTIQ+ employees can feel safe and valued, which is why it’s so important to have a presence within countries where there are challenges for community members. For this to be possible, we are supported by JTI’s “embassy” model, which enables us to have a presence despite the challenges that people may face,” says Staebe.

    In 2023, the company was honored with the Swiss LGBT Label award for the second time. Its progress was also awarded with EY’s Global Equality Standard certification in 2021, in which JTI received several of the highest assessment scores for equal opportunities and equal pay in the workplace. The company has also been recognized as a Global Top Employer.

    For a DEI program to be successful, it is important to maintain constant dialogue with underrepresented groups, Bonaduce says. “Feedback from our employees confirms that management is becoming increasingly inclusive. Almost 90 percent of our global employees experience a full sense of belonging to the organization. We also observe our leadership bench becoming even more diverse, with talent from different genders and cultural backgrounds.”

    Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.
  • JTI Awarded Global Top Employer

    JTI Awarded Global Top Employer

    Image: Nuthawut

    Japan Tobacco International was certified Global Top Employer for the 10th year in a row.

    “This recognition acknowledges that our people are at the heart of everything we do and shows the progress we continue to make in improving our environment, caring about the well-being of our employees as well as our focus on diversity, equity and inclusion. Being awarded Top Employer 10 years in a row demonstrates to our future employees that JTI is a great place to work. This certification is a key component in attracting and retaining top talent,” said Guergana Andreeva, senior vice president of people and culture, in a statement.

    JTI is one of 17 companies to be honored with the Global Top Employer award. Eleven countries where JTI has a presence were ranked No. 1. Globally, JTI ensures that its employees and their families have best-in-class support thanks to its global family leave policy aiming to provide equal opportunities for both parents to spend time with their newborn, according to JTI.

    JTI has also implemented new flexible working measures, which allow employees to choose how, when and where they work, and with the help of the employee resource groups, the company provides great support to various underrepresented groups, including, but not limited to, supporting females in leadership roles and LGBTQ+ communities.

    “While we are very pleased to have received the Global Top Employer certification for the 10th consecutive year, we are even more delighted that the various initiatives we have put in place in our locations across the world have helped improve our employees’ well-being, job satisfaction and opportunities to continue to develop their careers. JTI was awarded the Top Employer certification thanks to its 46,000 employees of 119 different nationalities who set goals and commit to achieving them,” Andreeva added.