Tag: Japan Tobacco

  • JT Group Completes Vector Group Acquisition

    JT Group Completes Vector Group Acquisition

    Image: somchaij

    The JT Group completed the acquisition of Vector Group (VGR) on Oct. 7, following a tender offer, initially announced on Aug. 21.

    The tender offer period, initiated on Sept. 4, 2024, expired at one minute after 23:59 Eastern Daylight Time, on Oct. 4, 2024. The conditions of the tender offer having been satisfied, the JT Group has accepted all such tendered shares, and, following a statutory merger on Oct. 7, 2024, VGR became a wholly owned subsidiary of the JT Group and was delisted from the New York Stock Exchange on Oct. 7, 2024.

    In a statement, the JT Group said it expects the acquisition to improve the company’s return-on-investment in combustibles by significantly increasing the group’s presence and distribution network in the U.S, the second largest tobacco market in net sales and one of the most profitable.

  • Quarterly Revenue and Profit up at Japan Tobacco

    Quarterly Revenue and Profit up at Japan Tobacco

    The JT Group reported revenue of ¥1.6 trillion ($10.63 billion) for the second quarter of 2024, up 12.7 percent over the comparable 2023 period. Profit increased by 6.3 percent to ¥305.2 billion.

    “The JT Group posted another strong set of results for the first half, driven by continued market share gains and solid pricing in the tobacco business,” said President and CEO Masamichi Terabatake in a statement.

    “Total volume increased by 2 percent year-on-year, with combustibles growing 1.7 percent and RRP [reduced risk products] up by a strong 25.5 percent. RRP volume was mainly driven by Ploom in the HTS segment, our investment priority, resulting in RRP-related revenue increasing by approximately 29 percent year-on-year.

    “In the Japanese market, Ploom volume increased approximately 36 percent year-on-year, growing at a faster pace than total HTS demand in the market. Additionally, the geo-expansion of Ploom has now reached 21 markets, with sales volumes in markets outside Japan also steadily increasing.

    “For the full-year performance forecast, we have revised our adjusted operating profit at constant FX [foreign exchange rates] upward, reflecting the positive momentum in the first half. On a reported basis, we have also revised our forecast upward, considering the continued impact of the current positive foreign exchange trend.”

  • JTI Launches its H-n-B Ploom X Advanced in Italy

    JTI Launches its H-n-B Ploom X Advanced in Italy

    TR Archive

    The Ploom X Advanced, Japan Tobacco Group’s most advanced heated tobacco device, has made its debut in Italy’s travel retail market at Milan Malpensa Airport in partnership with Avolta. The launch is supported by high-impact marketing aimed at driving traffic to the store, particularly with the influx of global travelers attending Milan Design Week.

    The product, previously launched in duty-free stores in Japan and Switzerland, is available in a variety of device colors, sticks and accessories, according to a press release.

    Japan Tobacco’s subsidiary Japan Tobacco International (JTI) noted that the Italy debut marks the brand’s continued expansion in the channel throughout 2024 and beyond, underlining its long-term commitment to travel retail and its partners.

    Ploom X Advanced represents the group’s move to expand its portfolio by entering the reduced-risk product (RRP) category to cater to the needs of adult tobacco consumers and vapers while reaffirming its place among the most innovative global brands, JTI added.

    “As an Italian myself, I was excited to see JTI’s premium offer in the RRP category taking off in Milan,” said Simone Mammi, JTI’s Global Travel Retail Sales director. “Our Ploom X Advanced device has been launched in Italy travel retail, alongside Camel heated tobacco sticks, available in four flavors and tobacco intensities (gold, bronze, burgundy, and teal).”

    JTI noted that with Avolta as one of its long-standing retail partners at Milan Malpensa Airport, it optimized the premium front-of-category space to provide impactful showcasing that, when coupled with ongoing consumer engagement, “should deliver promising results.”

    The Ploom X Advanced device was named the best product available in the heated tobacco category at the U.K. Product of The Year Awards 2024.

  • JT Launches Ploom X Advanced H-n-B in Japan

    JT Launches Ploom X Advanced H-n-B in Japan

    Image: JT

    Japan Tobacco announced the launch Ploom X Advanced, a new model of heated tobacco device that has evolved in terms of taste and user comfort.

    The company believes the new device will play a significant role in its mid- to long-term business strategy.

    According to JT, the new device represents a significant improvement over the current model and incorporates advanced features, including:

    • An upgraded heating technology, dubbed “Power Heatflow,” which increases the maximum heating temperature from 295 degrees Celsius to 320 degrees Celsius to provide a richer flavor experience.
    • A new automatic heating function that automatically starts heating when a stick is inserted into the device.
    • Reduced charging time from approximately 110 minutes for the current model to approximately 90 minutes.

    The device will be available at convenience stores and tobacco retailers nationwide in Japan starting on Nov. 21, 2023, at a suggested, tax-included retail price of ¥1,980 ($13.22).

    Following the launch of Ploom X Advanced, JT will discontinue sales of the current Ploom X model in Japan.

  • Japan Tobacco Boosts Investment in Heated Products

    Japan Tobacco Boosts Investment in Heated Products

    Photo: JI

    Japan Tobacco will invest ¥300 billion ($2.25 billion) in its tobacco-heating products (THPs), with ¥200 billion designated for marketing the sticks internationally, reports Nikkei Asia

    “Last year, we couldn’t make the investment because there were not enough [heated-tobacco] devices due to the semiconductor shortage,” Japan Tobacco President Masamichi Terabatake was quoted as saying. “For 2023, we are back on track for procurements, and we are able to secure more than twice Japan’s supply volume compared to last year.”

    JT plans to roll out its Ploom X THP in more than 10 countries this year, reaching at least 20 new countries by the end of 2024. Currently available only in Japan and the U.K., the product is set to debut in Italy this month.

    To gain name recognition, JT will invest in pop-up shops and digital sales. It will develop flavors that match the tastes of each market.

    In the U.S., JT formed a joint venture with Altria Group. The partners will seek permission from the Food and Drug Administration to market Ploom by early 2025.

    While JT’s THP segment is currently in the red due to the forward investments, the company anticipates turning a profit in 2028 on overseas growth.

    JT will also invest in research and development, looking to develop the second generation and third generation of Ploom X devices.

    Global sales volume for cigarettes shrank 1.5 percent last year, JT said. By contrast, the global market for THPs last year grew 17 percent to $33.4 billion, according to Euromonitor International.

  • Japan Tobacco Launching Ploom X in August

    Japan Tobacco Launching Ploom X in August

    Photo: JT/JTI

    Japan Tobacco is launching Ploom X, its next-generation heated-tobacco device, on Aug. 17, 2021. Ploom X will gradually be made available across Japan, including in convenience stores and select tobacco retail stores. Ploom X will also be available for pre-launch sale at the CLUB JT online shop from July 26, 2021.

    The device was jointly developed by JT in Japan and JTI, the group’s international subsidiary, headquartered in Switzerland.

    “Ploom X is the first global device developed by JT and JTI, bringing together all our resources to offer the best user experience of our time,” said Daniel Torras, senior vice president of reduced-risk products, in a statement.

    “We are delighted to be able to offer this new innovative product to adult consumers in Japan, the world’s leading heated-tobacco market and where product standards and quality are of the highest importance. Listening to consumers globally, we have created a proposition that is aligned with today’s lifestyles and choices. This includes a more authentic tobacco taste, new connectivity possibilities and several options to personalize the device to everyday needs.”

    Ploom X is the first global device developed by JT and JTI, bringing together all our resources to offer the best user experience of our time.

    Daniel Torras, senior vice president of reduced-risk products, JTI

    The new device adopts the aesthetic and innovative “Nastro” design with a more intuitive user experience, with no buttons on its surface. In addition to allowing users to precisely control heating temperature, Ploom X is equipped with a new heating technology, Heatflow, which focuses on airflow.

    Ploom X is also equipped with Bluetooth functionalities that connect with users’ smartphones, enables consumers to see the battery status, lock the device and much more.

    Along with the device, improved heated-tobacco sticks are being rolled out. The regular tobacco stick flavor is blended with lamina, the most aromatic part of the tobacco leaf. There is a range of 12 different heated-tobacco sticks.

  • Japan Tobacco to Focus on Heat-not-Burn Products

    Japan Tobacco to Focus on Heat-not-Burn Products

    After forecasting an unexpected slump in profits for this year, Japan Tobacco Inc (JT) said on Tuesday it planned to cut around 1,000 jobs and focus its efforts on winning market share in heat-not-burn (HnB) products such as the Ploom S brand.

    pllom device
    Credit: JT

    Operating profits for 2021 are expected to fall 23 percent to 363 billion yen ($3.46 billion), compared with the market’s forecast for a slight recovery to 476 billion yen, according to Refinitiv data. JT, despite commanding over half of the domestic cigarette market, has lagged rival Philip Morris in the increasingly popular category of HnB products.

    The company said it was looking to cut around 1,000 jobs, offering voluntary and early retirement packages, citing declining sales of conventional cigarettes. At the same time, it said it will bolster investment in what it calls reduced risk products (RRP), including its heat-not-burn Ploom sticks which compete with Philip Morris’ IQOS.

    It plans a new heat stick product later this year, aiming to boost its position in Japan, the world’s biggest market for such products as regular e-cigarettes with e-liquids containing nicotine are banned.

    “The RRP category in Japan is the most mature and competitive in the world,” JT Group President and CEO Masamichi Terabatake said in a press release. “Reflecting this and the decline of sales volume in recent years… we had to take some difficult yet necessary decisions.”

  • Japan Tobacco to Expand Sales of ‘Ploom TECH+ With’

    Japan Tobacco to Expand Sales of ‘Ploom TECH+ With’

    Japan Tobacco (JT) plans to expand in Japan sales of “Ploom TECH+ with,” the more compact version of JT’s tobacco-infused vapor series, Ploom TECH+. The new device will gradually be available nationwide starting at Ploom shops and select tobacco retail stores from Feb. 1, 2021, along with convenience stores from Feb. 2, 2021.

    To commemorate the nationwide expansion, JT is offering a limited time discount for the “Ploom TECH+ with” starter kit.

    “After receiving positive feedback from our consumers since its launch last November, we are delighted to announce the nationwide expansion of ‘Ploom TECH+ with,’” said Toru Takahashi, vice president of the marketing group product and brand division for reduced risk products, in a statement.

    “While still retaining the features of Ploom TECH+, such as producing less smell than cigarette smoke and not requiring wait time to start or finish using the device, ‘Ploom TECH+ with’ is more compact and easy to use, and we believe our consumers will find this device to enrich their experience than ever before.”

  • Japan Tobacco to Launch Ploom S 2.0

    Japan Tobacco to Launch Ploom S 2.0

    Image: Japan Tobacco

    Japan Tobacco (JT) is rolling out its Ploom S 2.0, an upgraded heated-tobacco device specialized for menthol. In addition, JT will launch two new menthol tobacco stick products under the Camel brand—Camel Menthol Red and Camel Menthol Yellow. These products will gradually be available at convenience stores and select tobacco retail stores across Japan beginning July 2, 2020.

    Ploom S 2.0 is equipped with a new heating mode that lengthens the duration of the peak heating temperature compared to that of the current Ploom S. According to JT, this allows for a balance among the freshness of menthol, rich vapor and clear tobacco taste.

    “The two biggest factors that influence the flavor of T-Vapor products are heating temperature and its duration,” explained Toru Takahashi, vice president of the marketing group product and brand division for reduced-risk products.

    “Ploom S 2.0 is capable of tailoring the device to heat the sticks at an optimal temperature and for an optimal duration with respect to the different stages from the first inhalation to the last rather than heating at a steady temperature,” he said. “This is the key to delivering the best flavor in T-Vapor products.”
     

  • Ploom Tech Study Shows Reduced Harm

    Ploom Tech Study Shows Reduced Harm

    The biomarkers of potential harm in Ploom Tech users were closer to those of never-smokers than they were to those of combustible cigarette smokers, according to a recent study cited by Japan Tobacco.

    The study was conducted in consultation with Yuji Kumagai, professor at the Kitasato Clinical Research Center.

    “Although further research is required, this new clinical study again highlights that Ploom Tech has the potential of reducing the health risks associated with smoking,” said Ian Jones, vice president and R&D principal scientist at Japan Tobacco International.