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Tag: JTI

  • JTI Releases White Paper on Tobacco Farmer Supply Chains

    JTI Releases White Paper on Tobacco Farmer Supply Chains

    JTI published a white paper highlighting its evolving relationship with tobacco farmers, focusing on improving yields, product quality, and sustainability. Paulo Saath, Global Head of Leaf Operations, emphasizes balancing business growth with environmental, social, and governance (ESG) goals.

    Titled, “Changes and Innovation in the Tobacco Supply Chain,” the paper details how JTI is tackling challenges like climate change and geopolitical volatility through digitization, AI, and integrated analytics, centralizing 15–20 systems into a unified data platform for better visibility across its global supply chain.

    Saath also stressed that technology succeeds when paired with human engagement, advising leaders to address concerns transparently and support teams through transitions, ensuring sustainable and efficient operations.

    Find the white paper here (e-mail registration required).

  • Bloomberg: JTI Bets on Discount Cigarettes Amid Global Shift to Smoke-Free Products

    Bloomberg: JTI Bets on Discount Cigarettes Amid Global Shift to Smoke-Free Products

    Today (September 25), Bloomberg published an article titled “Japan Tobacco is Doubling Down on Cheap Cigarettes,” examining Japan Tobacco International’s (JTI) revenue strategy since its $2.4 billion acquisition of Vector Group in October 2024.

    “While rivals Philip Morris International Inc. and British American Tobacco Plc have set ambitious targets for ‘smoke-free’ products such as e-cigarettes, heated tobacco sticks and nicotine pouches, JTI has focused more on conventional combustible tobacco products,” the article said. The strategy is paying off, according to the article, as JTI’s cigarette volumes rose 2%, revenue 9%, and profit 10%. While smoke-free products like Ploom and Nordic Spirit are expanding, JTI remains focused on conventional cigarettes in both mature and emerging markets.

    “In the U.S., the Vector acquisition has given JTI an advantageous position, as smokers contend with inflation and higher taxes, and tobacco makers increase prices to help compensate for a decline in cigarette volumes,” the article said. “Since 2021, premium brands have steadily lost share, falling from about 80% of tracked cigarette sales to about 70%, according to Connor Rattigan, analyst at Consumer Edge.”

  • JT Completes €500 Million Subordinated Bond Issuance

    JT Completes €500 Million Subordinated Bond Issuance

    Japan Tobacco International Financial Services B.V. (JTIFS), a subsidiary of Japan Tobacco Inc. (JT), completed the issuance and settlement of €500 million Euro-denominated subordinated bonds due 2055. The transaction was first announced on August 27.

    The securities, which carry equity-like features while being classified as debt, were launched to refinance JTIFS’s existing subordinated bonds due 2081.

    JT said the transaction, which also included the settlement of a related tender offer, will help strengthen the group’s financial foundation. The new securities are callable at the issuer’s discretion from March 2031 and on subsequent interest payment dates.

  • JTI: Mayfair Gold Strengthens Market Position in UK

    JTI: Mayfair Gold Strengthens Market Position in UK

    JTI says its Mayfair Gold continues with strong momentum in 2025, and is the UK’s fastest-growing low-price ready-made cigarette brand. With a 4.4% market share, the brand has established itself as a key player among independents and symbols, driven by strong demand for high-quality products at ultra-value prices since its launch in September 2024, JTI said. The company also said Mayfair Gold’s rolling tobacco is on track to exceed £200 million in retail sales within its first year, underscoring the brand’s rapid ascent in both the RMC and RYO categories.

    The growth comes alongside a series of retailer engagement initiatives on JTI360, including the Mayfair Gold Super Competition, which recently rewarded Salim Patel of The Swan Service Station, Mirfield, England, with a VIP cricket experience at Lord’s Cricket Ground in London.

  • U.S. Judge Grants Recognition to $23B Canadian Tobacco Settlement

    U.S. Judge Grants Recognition to $23B Canadian Tobacco Settlement

    A New York bankruptcy judge yesterday (August 26) approved U.S. recognition of Imperial Tobacco Canada Ltd.’s restructuring plan, a key step in a landmark C$32.5 billion (US$23.6 billion) settlement resolving decades of Canadian tobacco litigation. Judge John P. Mastando III granted Chapter 15 approval without objection, clearing the way for the settlement, one of the largest restructurings in Canadian history, to take effect across both jurisdictions.

    The deal, approved by an Ontario court in March, involves Imperial, JTI-Macdonald Corp., and Rothmans Benson & Hedges Inc. It will be funded over 20 years, beginning with a C$12 billion (US$8.7 billion) upfront payment, followed by profit-sharing contributions.

    The agreement resolves more than a trillion Canadian dollars in claims from class actions and provincial governments over smoking-related health costs.

  • Japan Tobacco to Issue Euro-Denominated Subordinated Bonds

    Japan Tobacco to Issue Euro-Denominated Subordinated Bonds

    Japan Tobacco Inc. said today (August 27) its foreign subsidiary, JT International Financial Services B.V. (JTIFS), will issue Euro-denominated Ordinary Subordinated Guaranteed Fixed Rate Resettable Capital Securities due 2055. The new hybrid-style subordinated bonds, which combine debt and equity characteristics, will be offered in international markets. Proceeds will be used to refinance JTIFS’s outstanding Euro-denominated deeply subordinated guaranteed bonds due 2081, for which a tender offer has been launched.

    JT said the move will help strengthen the group’s financial base, noting that rating agencies may recognize the new issuance as having partial equity credit.

  • Tanzania Tobacco Farmers Near Tree-Planting Target

    Tanzania Tobacco Farmers Near Tree-Planting Target

    Tanzania’s tobacco farmers have achieved 97.3% of their three-year tree-planting goal, planting 145 million trees out of the 150 million targeted since 2022, the Tanzania Tobacco Board (TTB) said. TTB Director General Stanley Mnozya said the initiative combats deforestation caused by tobacco curing with firewood, with each farmer required to plant at least 500 trees per hectare. Companies including Japan Tobacco International and Alliance One have supported the effort, contributing 20 million trees.

    The government has also allocated 4 billion shillings ($1.6 million) for modern drying facilities and introduced tobacco seed varieties that can be dried with solar or electricity instead of wood. This season, tobacco output rose to 183 million kilograms worth 1.3 trillion shillings ($520 million), up from 117 million kilograms last season. Tanzania exports up to 97% of its crop annually.

  • JTI Launches Lemon-Flavored Cigarillo in UK

    JTI Launches Lemon-Flavored Cigarillo in UK

    Today (July 1), JTI launched its Sterling Dual Capsule Xtra Yellow, a UK-first lemon-flavored cigarillo. In addition to the existing peppermint capsule, the product features a lemon capsule in the filter that users can click to release flavor. This adds a new, popular flavor to the brand that JTI says already holds a 93.6% share (£14 million per month) of the UK cigarillo market.

    “JTI is committed to supporting retailers by meeting consumer demand with innovative products like Sterling Dual Capsule Xtra Yellow,” said Lisa Anderson, marketing director at JTI UK.

    Sterling Dual Capsule Xtra Yellow retails for a suggested £6.95 for a 10-stick pack, and JTI offers retailers an introductory 20% profit on return wholesale.

  • JTI Philippines Eyes Expansion into RRP Manufacturing for Export

    JTI Philippines Eyes Expansion into RRP Manufacturing for Export

    Japan Tobacco International (JTI) Philippines said it is exploring plans to expand its manufacturing operations in Batangas to include reduced-risk products (RRPs), with an eye on exporting to more markets across the Asia-Pacific region and beyond.

    Currently, JTI’s facility in Malvar, Batangas, produces traditional cigarettes for at least 17 countries, mostly in Asia, according to General Manager Guilherme Silva. As demand for alternatives to combustible cigarettes rises, Silva confirmed JTI is considering producing RRPs—such as heated-tobacco products—at the Philippine facility.

    “It’s a factory that has a huge footprint, but also that still has a lot of space to be increased,” Silva said. “These new categories of RRPs are becoming more and more important, not only in the Philippines but also across different markets in the Asia-Pacific region. We’re definitely exploring which of these categories [we could] produce from the Philippines, [and how we can] export them.”

    Last year, the company introduced its heated-tobacco device Ploom X Advanced to the Philippine market, mirroring its success in Japan. While current production of Ploom’s tobacco sticks remains in Japan and Poland, JTI has signaled openness to expanding manufacturing based on market growth.

  • JTI Philippines Sees 23% Growth in Nicotine Pouches

    JTI Philippines Sees 23% Growth in Nicotine Pouches

    According to JTI, Nordic Spirit, the first nicotine pouch brand in the Philippines, is enjoying 23% monthly growth across the country. At a recent briefing in JTI’s office in Stockholm, Sweden, that included visiting journalists from the Philippines, Karin Tan, JTI’s director of reduced-risk products, said the product’s growth has been robust since it was introduced in May 2023.

    “There is actually traction in the market,” Tan said, citing data from major convenience stores such as 7-Eleven and Uncle John’s. “It is all about giving consumers pleasurable choices.”

    In a recent JTI survey of 7,000 consumers, 80% reported a positive experience using nicotine pouches. Consumers in the Philippines cited convenience, taste, and satisfaction in the product, and noted it was convenient to use in a country that contains so many no-smoking areas.

    Against this backdrop, JTI’s Vårgårda facility, located in Västra Götaland County on Sweden’s western coast, is gearing up for increased demand for nicotine pouches. The facility will soon produce Nordic Spirit for the UK, Canada, France, and the Philippines, according to factory lead Serkan Karasulu.