Japan Tobacco International

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Japan Tobacco International was formed in 1999 when the parent company JT Group acquired the non US operations of R.J. Reynolds. In 2007, Japan Tobacco International acquired UK based Gallaher, doubling in size and adding 11,000 new employees. [1] According to company's website, 2017 marked the 19th consecutive year of profit growth for the company. [1] The company has offices and factories in more than 70 countries and regions, and products sold in more than 130 countries and regions. Japan Tobacco is headquartered in Tokyo and listed on the Tokyo Stock Exchange. [2]

Company Overview[edit]

Japan Tobacco is the former government monopoly and still controls 60 percent of the cigarette market in the country. [3] The JT Act provides that the Government of Japan must continue to hold over one-third of all of the issued shares except for the class shares, which have no voting right against all matters that can be resolved at shareholders’ meeting. [4]:49 The company is based in Geneva in a brand-new building and owns a large factory in the German-speaking part of Switzerland, in Dagmersellen. [5] Japan Tobacco International is planning to cut one quarter of its staff in Geneva over a three-year period as part of restructuring measures. Japan Tobacco International staff members protested outside their Geneva HQ on October 22 against the job cuts. [6]

In February 2021, Japan Tobacco announced a major restructuring of its ailing domestic tobacco business, centering on the transfer of its head office’s functions from Tokyo to Geneva, and integrating operations with its overseas tobacco business. [7]

Key Executives[edit]

Name Position Bio
Eddy Pirard President and Chief Executive Officer Eddy Pirard is a Belgian national, appointed President and Chief Executive Officer in April 2017. He joined Gallaher in January 1998 as Head of Business Development. He left the company after a few years to start up an entrepreneurial venture in the e-procurement area, before rejoining Gallaher in 2002 to create and lead its cigar division. In 2004, he became Managing Director of the Other Tobacco Products (OTP) division. Following the JTI acquisition of Gallaher in 2007, Eddy was appointed President for the UK and Ireland region. He was promoted to the position of Regional President for Western Europe in 2010. Prior to his current role, Eddy was appointed Executive Vice President for Business Development, Corporate Affairs and Corporate Communications in 2014. He holds a Business degree from Hautes Études Commerciales (HEC) in Belgium and a Master's in Business Administration from Harvard Business School.[8]
Koji Shimayoshi Deputy CEO and Executive Vice President Business Development and Corporate Strategy Koji Shimayoshi is a Japanese national, appointed to his current role in January 2018. He joined parent company JT (Japan Tobacco) in 1993. After holding a series of management positions, he became Director of the Manufacturing Division in 2005, then moved to the Tobacco Business Planning Division, Tobacco Business Headquarters in 2007, where he was promoted to Senior Director in 2008. In 2012 he was made Vice President of Human Resources and subsequently appointed Senior Vice President, Human Resources in 2015. He then returned to the Tobacco Business Planning Division, Tobacco Business Headquarters in January 2017, as the Senior Vice President, Business Development & Corporate Strategy, before moving to JTI’s headquarters in Geneva in October 2017.

Koji holds a Master’s Degree in Engineering, Metal Science and Technology from Kyoto University.[8]

Roland Kostantos Chief Operating and Financial Officer Roland Kostantos is a Canadian and Greek national. He was appointed Chief Operating and Financial Officer in April 2017. He joined RJR-Macdonald Inc. as a finance supervisor in 1987 and then held a number of positions before being promoted to Vice President Finance & Chief Financial Officer in 1996. In 1998, he moved to Geneva as Vice President Financial Planning & Analysis and subsequently held various headquarter finance positions including the role of Chief Financial Officer for the Europe Region in 2002. In 2006 he was promoted to the position of Vice President Finance, Corporate Controller. Prior to his current assignment, he was appointed in 2009 to the position of Senior Vice President Finance, Information Technology and Chief Financial Officer. Roland holds an Honors Bachelor of Business Administration from Wilfrid Laurier University and earned his Chartered Accountant designation in 1985 while articling with the accounting and audit service firm of Clarkson Gordon (now Ernst & Young). [8]
Stefan Fitz Regional President, Asia Pacific Stefan Fitz is an Austrian national, appointed Regional President Asia Pacific in September 2010. Stefan was a key driver of the integration of Austria Tabak into Gallaher, and was appointed Managing Director Central Europe for Gallaher in 2001. In 2007, Stefan was appointed Regional President, Central Europe. He started his career working for Henkel Austria in 1992, before joining Austria Tabak in 1995 as Managing Director of the International Business. He was promoted to General Manager, Tobacco Division, in 1999. Stefan graduated from the Vienna Business University. [8]
Marchant Kuys Regional President, Americas Marchant Kuys is a South African national, promoted to Executive Committee as Regional President of the Americas in January 2016. Marchant joined the company in 2001 as Finance Director for South Africa before being promoted to the position of General Manager in 2003. In 2006, he was appointed as Director General of the Ukraine, Caucasus, Moldova, Belarus and Central Asia markets. When JTI acquired Gallaher in 2007, Marchant was appointed as General Manager for Ukraine, overseeing the integration of the Gallaher business in that country. In 2010, Marchant was appointed to the position of General Manager of Taiwan. He holds a business degree and a post-graduate diploma in Accounting from the University of Port Elizabeth. [8]
Kevin Tomlinson Regional President, Eastern Europe Kevin Tomlinson is a British national, appointed Regional President of Eastern Europe in October 2017. He joined R.J. Reynolds International in 1996 from Rothmans International. Kevin has held senior management positions in Ukraine, Caucasus and Moldova, Belarus and Central Asian markets. In 2006 he was appointed General Manager for Russia, playing a key role in securing and maintaining its industry leadership position. He was appointed Regional President of the CIS+ region in 2013. In October 2017 the CIS+ region was expanded and renamed Eastern Europe. Kevin holds a Bachelor of Arts degree from Durham University. [8]
Vassilis Vovos Regional President, Western Europe Vassilis Vovos is a Greek national, appointed Regional President of Western Europe in 2014. Vassilis started his career working for R.J. Reynolds Tobacco Greece in 1991, where he held various positions in the Brand Marketing department. He was appointed Marketing Director in 1995. In 1997, he moved to R.J. Reynolds International in Paris, and became Senior Director, then VP Marketing & Strategic Planning for the Southern Europe & Northern Africa Region. After the acquisition of R.J. Reynolds International by Japan Tobacco Inc. in 1999, he joined the JTI Geneva headquarters as VP Marketing & Sales Europe until he was appointed Vice-President and Deputy General Manager for France in 2001. From April 2002 he was General Manager of France, until his promotion to the position of Regional President for Central Europe in 2010. Vassilis holds a Bachelor of Science in Mechanical Engineering from the Thessalonica Polytechnic School in Greece, and a Masters in Business Administration from the University of Illinois in Chicago. [8]
Howard Parks Senior Vice President, People and Culture & Chief Compliance Officer Howard Parks was appointed Senior Vice President of People and Culture in February 2016. His responsibilities include engaging with employees and developing talent, as well as both the Corporate Security and Compliance functions within JTI.[8]
Daniel Torras Senior Vice President, Reduced-Risk Products Daniel Torras was appointed Senior Vice President, Reduced-Risk Products, in October 2017. His responsibilities include overseeing the expansion and capitalization of e-cigarettes and tobacco vapor products.[8]
Takehiko Tsutsui Senior Vice President, Business Development and Corporate Strategy Takehiko Tsutsui became a member of JTI’s Executive Committee as Senior Vice President, Business Development and Corporate Strategy, in January 2020. His remit covers the entire tobacco business for the Japan Tobacco (JT) Group.[8]
Suzanne Wise Senior Vice President, Corporate Affairs and Communications Suzanne joined JTI’s Executive Committee as Senior Vice President, Corporate Affairs and Communication, in June 2017. She is responsible for Corporate Communications, Corporate & Fiscal Affairs, Corporate Sustainability and Anti-Illicit Trade. [8]
Bilgehan Anlas Regional President, Middle East, Near East, Africa, Turkey and Worldwide Duty-Free Bilgehan Anlas was appointed to his current position in October 2018. He is responsible for the overall MENEAT operations, as well as for Worldwide Duty-Free business.[8]
John Fraser Senior Vice President, Legal and Regulatory Affairs John was appointed to JTI’s Executive Committee as Senior Vice President of Legal and Regulatory Affairs in September 2020. He is responsible for overseeing JTI’s global legal function, intellectual property, product regulation and scientific affairs. [8]
Daniel Sciamma Regional President, Eastern Europe Daniel Sciamma was appointed to the role of Regional President, Eastern Europe in September 2020. He is responsible for all marketing, personnel and operational procedures in the region.[8]
Yves Barbier Senior Vice President, Marketing and Sales Yves joined JTI’s Executive Committee as Senior Vice President, Marketing and Sales, in September 2018. His responsibilities include overseeing the planning and development of all marketing and sales strategies and the global governance of JTI’s portfolio of brands.[8]
Antoine Ernst Senior Vice President, Chief Transformation Officer Antoine Ernst was appointed as JTI’s Chief Transformation Officer in June 2018. He is responsible for preserving the core value of JTI’s expertise and securing its future commercial achievements.[8]
Hiroyuki Miki Senior Vice President, Research and Development Hiroyuki Miki was appointed to JTI’s Executive Committee as Senior Vice President, Research and Development, in January 2016. He oversees the focus of potential future products for the company.[8]
Rob Stanworth Regional President, Asia Pacific Rob Stanworth was appointed to the role of Regional President, Asia Pacific in September 2020. He is responsible for all marketing, personnel and operational procedures in the Region.[8]

Board Members[edit]

Name Position Bio
Mutsuo Iwai Chairperson of the Board Mutsuo Iwai assumed the position of Deputy Chairperson of the Board of the Company in March 2020.

He has experience of driving the core tobacco business as Representative Director and Executive Vice President of the Company even in unclear and uncertain operating environments, with his forceful execution of business backed by precise decision-making.

In addition, his broad and deep knowledge and insights cultivated through diverse experience both in Japan and overseas in areas such as the Food Business and Corporate Strategy have contributed to the strengthening of the supervisory function of the Group and relationships with stakeholders, which are essential to the improvement of the corporate governance of the Group going forward. [9]

Masamichi Terabatake Representative Director and President, Chief Executive Officer Terabatake joined JT in 1989 and held senior positions in the Manufacturing Division before becoming Director of Corporate Planning in 1998. He played a key role in the acquisition of R.J. Reynolds International (RJRI), and relocated to Geneva in 1999 to lead the JT International-RJRI Integration Project following the transaction. Returning to Japan in 2002 as Vice President of the Tobacco Business Manufacturing Division, Terabatake was directly involved in the formulation of JT’s medium-term plan for April 2003 to March 2006. “Plan V”, as it was known, remains a case study in JT’s ability to anticipate changes in the operating environment and take decisive action, building profitability and expanding globally. Terabatake became Vice President of JT’s Corporate Strategy Division in 2008. He was promoted to Senior Vice President and Chief Strategy Officer in 2011, and two years later returned to Geneva as Deputy CEO and Executive Vice President of Corporate Strategy at JT International. Emerging Products was added to his portfolio in 2014, and in 2017 he was appointed to JT’s Global Tobacco Strategic Committee, a new initiative to facilitate the growth of JT Group’s tobacco business. He was appointed President and CEO of JT in January 2018. Terabatake is a graduate of Kyoto University’s Faculty of Engineering. In his free time he enjoys fishing and playing golf. [9]
Naohiro Minami Representative Director and Executive Vice President Minami joined JT in 1986. In 2005 he was promoted to Vice President, Accounting Division and Controller, positions he continued to hold when he became Deputy Chief Financial Officer in 2010. He was appointed Senior Vice President and CFO in 2012. As a senior executive, Minami has helped ensure consistent management across the group since JT’s acquisition of Gallaher in 2007. Minami was instrumental in laying the groundwork for JT’s adoption of International Financial Reporting Standards in 2012. The initiative placed JT among Japan’s earliest adopters of IFRS and addressed investor demand for a common benchmark with which to evaluate the company against overseas peers. Minami was appointed Executive Vice President in January 2018, and became a Representative Director in March 2018. Minami is a graduate of Doshisha University’s Faculty of Law. In his leisure time he enjoys driving and reading. [9]
Kiyohide Hirowatari Representative Director and Executive Vice President Hirowatari joined JT in 1989. From 1995 to 1997, he was seconded to Japan’s Ministry of Finance where he was involved in industrial policy planning and analysis. Returning to JT in 1997, he worked for 17 years in the Legal Division, playing key roles in numerous M&A and other strategic transactions in the tobacco, food & beverage, and pharmaceutical sectors. In 2010 he was promoted to Vice President of the Legal Division, and became a Senior Vice President in 2012. He also served as Chief Legal Officer from 2012 to 2014. In January 2015, Hirowatari was appointed Senior Vice President, Head of Business Planning Division at the Tobacco Business, and in January 2017 became Senior Vice President of the Human Resources Division. He was appointed Executive Vice President in January 2018, and became a Representative Director in March 2018. Hirowatari is a graduate of Hitotsubashi University’s Faculty of Law. He enjoys American football and is an avid supporter of college football. [9]
Main Kohda Outside Director of the Company Ms. Kohda has a deep understanding of the financial industry developed over a long career on the front lines of international financial and capital markets. Her career included spells at US banks and securities firms, working in fixed income trading and foreign multicurrency bond sales, before taking a new turn when she became a published author in 1995. In parallel with her writing career, Ms. Kohda’s recognized expertise in financial markets led to her appointment to the Financial System Council of Japan’s Ministry of Finance in 2003 and the Tax Commission of the Cabinet Office of the Government of Japan in 2006. She has also served as a Visiting Professor at Shiga University’s Faculty of Economics, a member of the Policy Board of Japan’s Ministry of Land, Infrastructure and Transport, and a member of the Board of Governors of Japan Broadcasting Corporation (NHK). Ms. Kohda has been an Outside Director to JT’s Board of Directors since June 2012. She serves concurrently as an Outside Director at LIXIL Group Corporation and an Outside Director at Japan Exchange Group, Inc. (JPX). [9]
Yukiko Nagashima Member of the Board Ms. Nagashima began her career at Recruit Co., Ltd. (current Recruit Holdings Co., Ltd.) in 1985 and after working in recruitment advertising transferred to the personnel department in 1995. There, she headed recruitment and education and launched an internal business school and other programs to promote exchange study among companies in different industries. She transferred to the bridal business in 2002 and grew it into the largest bridal information service business in Japan before being appointed Corporate Executive Officer in 2006. She subsequently was appointed President and Representative Director of Recruit Staffing Co., Ltd. in 2008, where she promoted smart work that emphasizes per-hour productivity, and promoted work opportunities to enhance employee diversity. She assumed her current role as Audit & Supervisory Board Member, Recruit Holdings Co., Ltd. in June 2016.[9]
Kazuhito Yamashita Member of the Board Kazuhito Yamashita assumed the position of Member of the Board and Senior Vice President of the Company in March 2019. He has served in such roles as Senior Vice President, Chief Corporate, Scientific & Regulatory Affairs Officer, and Head of China Division, focusing on promoting social and environmental issues and on the expansion of the overseas business, and he has leveraged the wide-ranging experience and knowledge thus acquired to contribute to establishing an environment conducive to the Company's business.[9]
Tetsuya Shoji Member of the Board Tetsuya Shoji has considerable experience, track record, and insight into corporate management. [9]
Shigeaki Okamoto Deputy Chairperson of the Board Having served important roles such as Administrative Vice Minister of the Ministry of Finance during his long years of service with ministries and bureaus, Shigeaki Okamoto possesses considerable knowledge and experience in general national policies. [9]
Masato Kitera Member of the Board Masato Kitera assumed the position of Outside Director of the Company in March 2021. He did not engage in corporate management previously other than serving as an outside director or an outside auditor. However, he held important positions over many years of service with the government, primarily in the Ministry of Foreign Affairs. With his extensive international experience and a high level of knowledge of international affairs cultivated during his diplomatic and other activities reflected in the management of the Group as it expands its business outside Japan at a time of globally increasing geopolitical risks, he has worked tirelessly to provide advice and oversight which contribute to the further enhancement of corporate governance.[9]
Member of the Board [9]

Investments in Unconsolidated Subsidiaries[edit]

An unconsolidated subsidiary is a company that is owned by a parent company, but whose individual financial statements are not included in the consolidated or combined financial statements of the parent company to which it belongs. Instead, this type of company appears in the combined financial statement as an investment.[10]

No associates or joint ventures are considered to be material to the Group[4]:135

However, the group has committed to adopt IAS 28, Investments in Associates and Joint Ventures accounting standard which may disclose more information than previously provided.[4]:97

List of Significant Subsidiaries[edit]

As Japan Tobacco International's financial accounts are consolidated in its parent companies (Japan Tobacco's) financial accounts, visibility of subsidiaries and affiliates are not readily available. Below is a partial list of stated Subsidiaries related to the Tobacco segment of Japan Tobacco's business.[11]

Subsidiary Name[11] State or Country of Organization Holding rate of voting rights^ (percentage)
TS Network Co., Ltd. Taito-ku, Tokyo 74.5
JT Logistics Co., Ltd. Chuo-ku, Tokyo 100
Japan Filter Technology Co., Ltd. Sumida-ku, Tokyo 88.6
Fuji Flavor Co., Ltd. Hamura-shi,Tokyo 100
JT Engineering Inc. Sumida-ku,Tokyo 100
TRUE SPIRIT TOBACCO COMPANY Minato-ku, Tokyo 100
JT International Group Holding B.V. Netherlands 100
JT International Holding B.V. Netherlands 100

(100)

JT International S.A. Switzerland 100

(100)

LLC JTI Russia Russia 100

(100)

Gallaher Ltd. U.K. 100

(100)

LLC Petro Russia 100

(100)

JTI Polska Sp. z o. o. Poland 100

(100)

JT International Germany GmbH Germany 100

(100)

JTI Tütün Urunleri Sanayi A.S. Turkey 100

(100)

^ The percentage of an entities voting rights (through equity/shares) held by Japan Tobacco (either directly or indirectly).

Notes: In addition to the above, JT has 191 consolidated subsidiaries and 13 companies accounted for by the equity method. The figures in parentheses in the "Holding rate of voting rights" column are indirect holding rates included in the figures outside the parentheses.[11]

COVID-19 Response[edit]

Azerbaijan[edit]

The Azerbaijan Industrial Corporation is working with Japan Tobacco International to increase tobacco production in the Oguz district. [12]

Bangladesh[edit]

Anger is mounting in Bangladesh over concerns the Minister of Finance is giving British American Tobacco and Japan Tobacco International special benefits to tobacco companies during the COVID19 lockdown. [13]

Malaysia[edit]

JTI Malaysia delivered RM 150,000 worth of personal protective equipment to Polis DiRaja Malaysia. [14]

The Philippines[edit]

Japan Tobacco International President John Freda donated 20,000 face masks for hospitals in Batangas, Philippines. [15]

United Kingdom[edit]

Federation of Independent Retailers Covid-19 Hardship Fund has soared to GBP 200,000 in just under three weeks following contribution from key partners, including Japan Tobacco International. [16]

Profitability[edit]

Profits[edit]

Fiscal year

in Billions of YEN

2021 [17] 2020 [18] 2019 [18]:8 2018 IFRS [19]
Net Revenue 2,324.8 2,092.6 2,175.6 2,216.0
Core Revenue - International Tobacco 1,482.1 1,250.8 1,300.0 1,312.3

Acquisitions[edit]

In August 2018, Japan Tobacco purchased Akij Group (Bangladesh) for around USD 1.5 billion. Reuters reported it as Japan Tobacco International's second major purchase in five months.[20]In November 2018 Japan Tobacco completed its acquisition of Akij Group's tobacco business, at the time, the largest single foreign direct investment in Bangladesh.[21]

Recent acquisitions [22] Acquired Organization Name Acquiring Organization Name Announced Date Value
La Tabacarela (Dominican Republic) acquired by Japan Tobacco International[23] La Tabacarela Japan Tobacco International 2016 NA
Fluxo Brasil Distribuidora do Produtos (Brazil) acquired by Japan Tobacco International[24] Fluxo Brasil Distribuidora do Produtos Japan Tobacco International 2016 NA
Natural American Spirit (international, non-U.S. operations from Reynolds American Inc.) (U.S.) acquired by Japan Tobacco International Natural American Spirit (international, non-U.S. operations from Reynolds American Inc.) Japan Tobacco International 2016 YEN 600 billion [25]
Logic Technology Development LLC (U.S.) acquired by Japan Tobacco International Logic Technology Development LLC Japan Tobacco International 2015 NA
Ploom, Inc. (U.S.) acquired by Japan Tobacco International Ploom, Inc. Japan Tobacco International 2015 "undisclosed amount"[26]
Zandera Ltd. (UK) acquired by Japan Tobacco International Zandera Ltd. Japan Tobacco International 2014 -
Megapolis (20 percent stake) (Russia) acquired by Japan Tobacco International Megapolis (20 percent stake) Japan Tobacco International 2013 NA
Al Nakhla Tobacco Company S.A.E. & Al Nakhla Tobacco Company (Egypt) acquired by Japan Tobacco International Al Nakhla Tobacco Company S.A.E. & Al Nakhla Tobacco Company Japan Tobacco International 2013 NA
Gryson NV (Belgium) acquired by Japan Tobacco International Gryson NV Japan Tobacco International 2012 NA
Haggar Cigarette & Tobacco Factory Ltd. (North Sudan) acquired by Japan Tobacco International Haggar Cigarette & Tobacco Factory Ltd. Japan Tobacco International 2011 NA
Haggar Cigarette & Tobacco Factory Ltd. (South Sudan) acquired by Japan Tobacco International Haggar Cigarette & Tobacco Factory Ltd. Japan Tobacco International 2011 NA
Tribac Leaf Limited (UK) acquired by Japan Tobacco International Tribac Leaf Limited Japan Tobacco International 2009 NA
Kannenberg & Cia. Ltda. (Brazil) acquired by Japan Tobacco International Kannenberg & Cia. Ltda. Japan Tobacco International 2009 NA
Barker, Hall & Cotton Tabacos Ltds. (Brazil) acquired by Japan Tobacco International Barker, Hall & Cotton Tabacos Ltds. Japan Tobacco International 2009 NA
Gallaher Group Plc. (remaining shares) (UK) acquired by Japan Tobacco International Gallaher Group Plc. (remaining shares) Japan Tobacco International 2007 NA
AD Duvanska Industrija Senta (Serbia) acquired by Japan Tobacco International AD Duvanska Industrija Senta Japan Tobacco International 2007 NA
CRES Nev Ltd.a (Russia) acquired by Japan Tobacco International CRES Nev Ltd.a Japan Tobacco International 2005 NA
Austria Tabaka (Austria) acquired by Japan Tobacco International Austria Tabaka Japan Tobacco International 2001 NA
Liggett-Ducata (Russia) acquired by Japan Tobacco International Liggett-Ducata Japan Tobacco International 2000 NA
RJR Nabisco (non-U.S. operations) (U.S.) acquired by Japan Tobacco International RJR Nabisco (non-U.S. operations) Japan Tobacco International 1999 NA
Tanzania Cigarette Company (Tanzania) acquired by Japan Tobacco International Tanzania Cigarette Company Japan Tobacco International 1995 NA
Yelets Tobacco (Russia) acquired by Japan Tobacco International Yelets Tobacco Japan Tobacco International 1994 NA
Manchester Tobacco (UK) acquired by Japan Tobacco International Manchester Tobacco Japan Tobacco International 1992 NA
AS-Petrob (Russia) acquired by Japan Tobacco International AS-Petrob Japan Tobacco International 1992 NA

Investments[edit]

Japan Tobacco International offloaded its entire stake in Korean tobacco maker KT&G on Dec. 4, 2019. Reasons for JTI’s move are unknown but some experts have suggested that the company is moving its Korean production to the Philippines two years ago is said to have removed the incentive for the company to invest in KT&G. [27]

In August 2018, Japan Tobacco purchased Akij Group (Bangladesh) for around USD 1.5 billion. Reuters reported it as Japan Tobacco International's second major purchase in five months.[28] At the time Akij held about a 20 percent share of the cigarette market in Bangladesh, the eighth largest cigarette market in the world, with volumes exceeding 86 billion units and growing by about 2 percent year-on year. This transaction was projected to add around 17 billion units to JT Group’s overall volume.[29] In November 2018 Japan Tobacco completed its acquisition of Akij Group's tobacco business, at the time, the largest single foreign direct investment in Bangladesh.[30]

In August 2017, Japan Tobacco International purchased Indonesia’s PT Karyadibya Mahardhika for USD677 million and [31] Japan Tobacco International also agreed to pay 52.6 billion Philippine pesos (USD1.02 billion), including tax, for assets belonging to Mighty, which commanded a 23 percent share of the Southeast Asian nation's tobacco market. JT aims to build up its share there, which sat at less than 5 percent in 2018. [32]

Shareholders[edit]

Tobacco companies have received more than GBP 45 million investment from the United Kingdom's Lincolnshire County Council’s pension fund. The current investment (as of January 2019) for British American Tobacco sits at GBP 411,943. [33]

Market Share[edit]

In 2017, Japan Tobacco International's nine "iconic" brands accounted accounted for more than 72 percent of the company's sales, amounting to approximately 14 percent global market share.[34]

Emerging Markets[edit]

Mutsuo Iwai, Executive Vice President and President of the Tobacco Business said in August 2018 that with the recent investment into Akij, the organization continues:

  "to accelerate our expansion in emerging markets that matter, a key component of the JT Group’s growth strategy. Akij’s substantial market share places us straight at the number two position in Bangladesh, which will expand our quality top-line growth. This transaction will also support our sustainable profit growth objectives in the mid- to long-term." [35] 

After acquisition of Akij was completed in November 2018, a Japan Tobacco press release was quoted as saying:

    “With this investment, the company will continue to accelerate its expansion in emerging markets, a key component of the Japan Tobacco Group's growth strategy,”[36]

Company's spokesperson Kana Miyauchi stated that Japan Tobacco International:

  “want to establish [ourselves] in markets like Brazil, Bangladesh, Indonesia, Philippines, and grow sustainably to strengthen our business foundations."[35]


In 2018, Japan Tobacco International started to expand its presence in ASEAN countries where it previously had low sales. In August 2017, JTI acquired a Filipino tobacco company, Mighty Corporation, for P45 billion (about USD 900 million). According to Tobacco Industry Watch, Japan Tobacco International sees "the Philippines as a growth market where it can increase its profits substantially." [37]

Factory Openings and Closures[edit]

Japan Tobacco International plans to merge Donskoy Tabak JSC with JTI Russia. [38]

Japan Tobacco International will invest EUR 60 million to upgrade the production capacities of its factory in Romania. It will result in an increase in the volume of cigarettes manufactured in Romania. [39]

In 2020, Tabak-invest LLC began production of Winston XS Fresh Mix cigarettes in Belarus under the Japan Tobacco International license. [40]

Japan Tobacco International plans to launch a global business services centre in Poland that would hire more than 850 people. [41] Japan Tobacco International has leased about 6,000 square meters in the Senator Business Center in St. Petersburg. The tobacco company plans to open a global business support center. [42]

Japan Tobacco has 35 international and six Japanese domestic factories. [2]:7 SEKAP plant in Xanti, Greece, announced in October 2018 that production of the products of new owner Japan Tobacco International has started, just two-and-a-half months after the Greek tobacco company’s takeover. [43] Japan Tobacco International has commenced production of its Winston brand for Greece and another nine countries at the once state-owned Sekap facility. [44]

In November 2018, after closing its last manufacturing plant in Ireland a year earlier, the Irish subsidiary of Japan Tabacco International posted a jump in profits to €34 million on slightly lower revenues of €702 million.[45]

Products[edit]

Japan Tobacco's main markets include France, Italy, Russia, Spain, Taiwan, Turkey, and the United Kingdom. The portfolio includes leading brands in cigarettes and fine cut, such as Winston, Mevius, Camel, and LD, as well as in Reduced-Risk Products, such as Ploom and Logic.[2]:7 In July 2019, Japan Tobacco International launched PLOOM TECH in Korea. [46] Japan Tobacco International in Korea said Ploom Tech will be sold at duty-free stores Lotte and Shilla Duty Free from mid-September. [47]

The company is the market leader in Japan - one of the largest markets in the world. The Japanese portfolio includes key brands such as Winston, Mevius, Seven Stars, and Natural American Spirit as well as Ploom TECH for "Reduced-Risk Product". [2]:7

At the end of 2018, our Reduced-Risk Product portfolio was present in 13 countries with a choice of tobacco vapor products (T-Vapor) and e-cigarettes (E-Vapor). [2]:56

Key Portfolio[edit]

Japan Tobacco International portfolio includes leading international brands in cigarettes and fine cut, such as Winston, MEVIUS, Camel and LD, as well as in Reduced-Risk Products, such as Ploom TECH and Logic.[48]:2 In 2017, the comapany's flagship brands accounted for more than 72 percent of Japan Tobacco International's sales. According to the company's website, Japan Tobacco International have approximately 14 percent global market share. [34] In a press release, Japan Tobacco announced that it would officially launch Ploom X on August 17, 2021 in stores and online. [49]

Japan Tobacco is the market leader in Japan, which is one of the largest markets in the world, generating about 40 percent of the company's consolidated adjusted operating profit. During 2017, the company's share of market reached 61.3 percent, due the solid performance of the company's core brands, such as MEVIUS and Natural American Spirit. In 2017, Japan Tobacco launched Ploom shops and expanded the sales of Ploom TECH in Tokyo.[48]:2 In August 2019, Japan Tobacco International launched the Ploom S and three types of Ploom S tobacco sticks. Sales were slated to start at approximately 57,000 convenience stores and 2,200 tobacco retail stores. [50]

Japan Tobacco International announced on that it will enter Portugal with its ‘e-cigarettes’ and aims to operate nationwide by 2020. [51] Japan Tobacco International launched its Logic Compact e-cigarette in Spain in November 2019 after being available in 19 countries. [52] The company halved the price of starter kits for its Ploom S reduced-risk cigarettes. [53] Japan Tobacco International’s Logic Compact electronic vaporizer will be available in 27 countries by the end of 2019. [54]

Brand Name Description
Winston As JTI’s leading brand, Winston was first introduced in 1954 in the United States by R.J. Reynolds. It is the no. 2 international tobacco brand in the world (130 countries around the world selling Winston).
Mevius Mevius was launched in 1977 and became the number one selling cigarette brand in Japan just a year after its launch. Today, Mevius is the Japan Tobacco Group’s leading brand in Asia and expanding internationally.
Camel The history of Camel began in 1913 and its sold in 100+ countries around the world.
LD LD was launched in 1999 as an international value brand. Today LD is one of the leading international value cigarette brands, sold in more than 50 countries throughout Europe, Asia, Africa and the Americas.
Benson & Hedges Established in 1873 in Old Bond Street, London, by Richard Benson and William Hedges.
Natural American Spirit Promotes ecological agricultural practices and responsible marketing.
Sobranie Japan Tobacco International markets Sobranie as "luxurious smoking taste experience."
Glamour Glamour was introduced in 2005.
Silk Cut Launched in 1964, Silk Cut has an established position as a leading brand with a reputation for quality and innovation.

Menthol tobacco[edit]

Despite menthol tobacco sales ban, Japan Tobacco International launched a "replacement range" called “New Dual” across its Benson & Hedges, Mayfair and Silk Cut products, which reportedly still contains menthol. To this effect, the UK Government has launched an investigation. [55]

In July 2021, Daily Mail revealed that Japan Tobacco International has sold over GBP 1billion worth of menthol-tasting cigarettes in the year since menthol cigarettes were banned. According to the newspaper, Japan Tobacco International "replaced several of its brands with an almost identically named and marketed range of 'menthol reimagined' cigarettes which launched the very day the menthol ban came into force in May last year. Figures produced by data analytics firm Nielsen and leaked to the Mail show JTI sold more than 100 million packs of the new minty-tasting cigarettes, which accounts for more than 2 billion individual cigarettes and total sales topping GBP1billion." [56]

Volumes[edit]

Total shipment volume growth in 2018 exceeded 7 percent, benefitting from acquisitions and organic share progression in both mature and emerging markets. This volume increase was complemented by significant pricing gains, which were realized by leveraging the equity of the company's Global Flagship Brands. [19]:34

International Tobacco Business[edit]

Product Category 2021 [17]:6 2021 [17]:6
Total shipment volume(billions of Units, billions of JPY) 460.2 435.7
GFB shipment volume (billions of Units, billions of JPY) 311.7 282.0
Core revenue(billions of Units, billions of JPY) 1,482.1 1,250.8 1
Core revenue(millions of USD) 13,468 11,724

Innovative Product Portfolio[edit]

Japan Tobacco Inc said it plans to launch a new heated tobacco device in the second half of 2021. [57]

Japan Tobacco launched Ploom Tech+ with” a new, more compact device from the Ploom Tech+ series. [58] At the end of 2018, the company's "Reduced-Risk Product" portfolio was present in 13 countries with a choice of tobacco vapor products (T-Vapor) and e-cigarettes (E-Vapor).[2]:56

Japan Tobacco International introduced the Logic Compact vape in Canada across Ontario and British Columbia. Logic Compact is a high-nicotine, closed-tank vape. [59] JTI Ukraine announced the withdrawal of its Logic Compact e-cigarettes from the country in December 2020. [60]

Brand Name Description
Logic LQD Logic LQD is Japan Tobacco International's open tank system, which lets users refill the device with Logic LQD e-liquids.[61]
Logic PRO Logic Pro is Japan Tobacco International's closed tank system. This pairs pre-filled e-liquid capsules to specific devices.[61]
Ploom Tech PLOOM TECH is Japan Tobacco International's latest product in the reduced-risk category. It uses technology where vapor is created by heating a liquid. This is then drawn through a capsule containing tobacco, creating a distinctive and smooth taste but with no smoke, smoke smell or ash.[61]

Marketing and External Relations[edit]

Marketing to Kids[edit]

Tobacco-Free Kids investigation into over 100 social media campaigns by Philip Morris International, British American Tobacco, Japan Tobacco International and Imperial Brands revealed tobacco companies pay social media influencers on platforms like Instagram, Facebook and Twitter to advertise their products. The investigation also exposed how tobacco companies market cigarettes on social media in the U.S. and globally revealed all four major tobacco companies are violating their own internal marketing standards. These standards state that Japan Tobacco International requires age verification in online ads. [62]

Response from Japan Tobacco International:

  "JTI aims to switch existing adult smokers to our brands from those of our competitors responsibly. We operate in a legal and responsible way within each country’s regulations and our own global marketing principles require age verification on every occasion where JTI has contact with smokers to promote our products, including our adult-only events. The same age-verification principles apply to any event where we are (sic) feature our vapor products. In the US, we do not have a dedicated social media presence for our Logic vapor products, but if adult smokers or vapors choose to share their social activity, it is completely their choice." [63]

In a separate investigation, Japan Tobacco International brands Winston and Camel were seen around schools in eight countries, while Imperial Tobacco were visible from schools in five countries. [64]

Global Campaigns[edit]

Japan Tobacco International and its affiliated organisations use the following marketing campaigns and partnerships to promote its heated cigarettes (novel and emerging nicotine and tobacco products):

  • RETHINK tobacco
  • It’s time to rethink tobacco
    1. ReThinkMusic [65]

In February 2019, Campaign For Tobacco Free Kids and Netnografica LLC published the results of a two-year investigation into how the big tobacco companies, including Philip Morris, British American Tobacco, Japan Tobacco, and Imperial Brands used social media influencers to promote their products online. [66]

Japan Tobacco International launched of a nationwide anti-illicit tobacco campaign in the United Kingdom called " Don’t Be Complicit In Illicit", which calls on retailers to join the fight against the illicit tobacco trade. [67]

The Department of Health published in May of 2018, Japan Tobacco International paid for a radio advert encouraging the public to protest against the proposals restricting smoking in public places, introducing plain packaging, banning point-of-sale advertising and displays, and scrapping the sale of single cigarettes. [68]

In December 2018, Dubai Duty Free partnered with Japan Tobacco International in a campaign that culminated in two sets of winners receiving a trip to London’s leading music destinations. The promotion, which took place at selected duty free locations around the world, was built around Winston’s associations with music and its existing partnership with London’s Ministry of Sound. [69]

Nordic Spirit, a tobacco-free nicotine pouch brand owned by Japan Tobacco International, hosted an "immersive experience" in London. Visitors were guided through the multi-sensory experience inspired by the brand's Swedish heritage and flavours of the products. Attendees were able to sample the pouches. [70] An ad for Nordic Spirit has been banned for implying that it had a stimulant effect that made gaming more enjoyable. The video ad was seen in December on the Crunchyroll anime streaming service app and featured people getting ready to play an online video game together and putting the pouches in their mouths. The players were then shown reacting enthusiastically to the game and online text read: “A new nicotine experience”, “great flavours”, “pocket-sized convenience”, and “never miss a moment”. [71]

JTI Encounters began as an event in Romania 2000 and hosted famous choreographers and ballet companies, including the Béjart Ballet Lausanne in 2000 and 2007, Alvin Ailey American Dance Theater, Les Ballets de Monte-Carlo, El Banch Ballet Nacional Chileno and Akram Khan Company. Over the years, “JTI Encounters”, which is a registered trademark, has become a firm fixture in Romania’s cultural calendar.[72]

Sponsorships[edit]

In 2021, Japan Tobacco International’s sponsorship of the volleyball World Cup and of the JT Marvelous women’s team in Japan’s national volleyball league were scrutinized, endangering Japan’s bid for the Olympics 2020. [73]

Japan Tobacco International is currently advertising a 6-month paid global internship plus USD 2,000 towards learning & development to winners of its global challenge. The company also offers additional cash and product prizes for runners up of the challenge. [74]

Japan Tobacco International President John Freda donated 20,000 face masks for hospitals in Batangas, Philippines in response to Covid-19 . [75]

Belgian authorities are looking into Parliament Magazine's 'Transparency and Better Regulation' event, hosted by Sajjad Karim, a British Conservative MEP, and held in the European Parliament last year, which was sponsored by Japan Tobacco International.[76]

Japan Tobacco International provides funding to the British Museum’s Asia department. [77] The company is also one of Premier supporters of the British Royal Academy of Art. [78]

Japan Tobacco was one of the sponsors of the 2018 Middle East & Africa Duty Free Association (MEADFA) Conference held in November 2018 under the patronage of H.E. Mr. Saad Hariri, Lebanese President of the Council of Ministers, in Beirut, Lebanon. [79]

In June 2018, the government of Japan passed tough anti-smoking laws ahead of 2020 Summer Olympics Games, banning smoking in most of the city’s bars and restaurants in the run-up to the games. [80]

Japan Tobacco International is a special partner of the International Theatre Festival in Sibiu (FITS), the most important annual theater festival in Romania and the third in Europe. The company also support Transylvania International Film Festival in Cluj and RADIRO International Festival of Radio Orchestras. The company contributes to the following classical music national tours: “The Duel of Violins”, “Travelling Piano” and “Golden Flute”. The company is the official sponsor of “Gigi Caciuleanu Romania Dance Company”. [72]

In Czech Republic, Japan Tobacco International is a long-term partner of the Život 90 organization, which operates a community center for seniors and their loved ones in the center of Prague. In cooperation with Život 90, the organization supports a crisis helpline called Senior Telephone. It offers free unlimited help to seniors in crisis situations, when they feel alone, or are subject to domestic violence. [81]

Japan Tobacco International also contribute to another organization called Bílý kruh bezpečí (White Circle of Safety), which provides legal and psychological assistance to victims and witnesses of crimes. The organization consists of 12 branches in 9 regions. [81]

Corporate Social Responsibility[edit]

In 2021, Japan Tobacco International introduced the #IGiveAButt campaign to encourage smokers to dispose of their cigarette butt litter in a responsible way by using our newly created Stub Tidy. [82]

An employee of Japan Tobacco International spoke at a side event at the UN-organised 5th Global Conference on the Elimination of Child Labour in Durban, South Africa. The International Labour Organization remains listed as “non-executive advisor” to the ECLT Board, as of 2022. As of June 2022, the ECLT Foundation remains a member of the Child Labour Platform of the voluntary UN Global Compact (UNGC) Human Rights and Labour Working Group – for which the ILO provides the secretariat. It became a member in 2015. [83]

The International Labour Organization has an existing public-private partnership with Japan Tobacco International to end child labour and promote fundamental principles and rights at work and occupational safety and health in Brazil, Malawi, The United Republic of Tanzania and Zambia, and throughout its supply chain. JTI is a member of the Eliminating Child Labour in Tobacco Growing Foundation (ECLT). To date, the amount of funding received from JTI is over USD 10 million. The ECLT Board members include: International Tobacco Growers Association; Alliance One International; Altria Client Services; British American Tobacco; Contrax-Nicotex Tobacco; Hail & Cotton; Imperial Tobacco Group; Japan Tobacco International; Philip Morris International; Premium Tobacco; Scandinavian Tobacco Group; Sunel Ticaret Turk; Swedish Match; and Universal Leaf Tobacco. [84] The partnership has been ongoing since 2002 and seeks to eliminate child labour and promote workers’ rights in tobacco-growing communities in Brazil, Malawi, Tanzania, Uganda and Zambia. [85] In November 2018, over 100 health, development, labor, and corporate accountability organizations around the world called on the International Labour Organization to cut ties with the tobacco industry. [86] According to a news article by France 24, the organization will not renew funding from tobacco companies for expiring charitable programmes, but refrained from saying it would cut ties to the tobacco industry altogether. [87] In August 2018, Eddy Pirrad, President and CEO of Japan Tobacco International published a LinkedIn blog post on the company's ethical code of conduct, claiming that Japan Tobacco International operates "with the highest ethical standards". [88]

Japan Tobacco International estimates the share of the illegal cigarette market in Russia at 9 percent. The data was announced by the company's Vice President on taxation and fight illegal trade protection Brendan Lemul during the World Summit on Illegal Trade. [89]

Japan Tobacco International fund the JTI Foundation (Stiftung JT International), a charitable organization registered under Swiss law and financially endowed by JT International SA. It was set up in 2001, and is a member of SwissFoundations – the Association of Swiss grant-making Foundations. The President of the Foundation is Eddy Pirard, President and Chief Executive Officer of Japan Tobacco International. [90]

Portal Chemical & Engineering News reported that representatives from British American Tobacco, Japan Tobacco International, Philip Morris International, and Reynolds American attended the annual meeting of the American Society for Cellular & Computational Toxicology focused on non-animal toxicology testing. The website cited the ultimate goal to:

  "to convince officials at the U.S. Food & Drug Administration’s Center for Tobacco Products (CTP) that in vitro methods for predicting respiratory toxicology in humans are ready for prime time." [91]

Political Spending[edit]

For a list of political contributions in the United States look here.

Reporting and Regulation[edit]

Investigations[edit]

New research co-authored by University of Bath details tax avoidance tactics used by the world’s four largest publicly-traded tobacco companies. Japan Tobacco International appears to send large dividends and interest payments straight back to its parent company in Japan. [92]

Japan Tobacco International Singapore was fined SGD 15,000 in February 2020 for distributing cigarettes at an outdoors electronic music festival without a licence. Japan Tobacco International one of the sponsors of Ultra 2016, had come to an agreement with organisers of the music festival to provide two booths with menus stating the range of cigarettes it had. Staff manning the booth would then take orders from partygoers and buy cigarettes from a 7-Eleven store nearby. [93]

Japan Tobacco International Korean unit has resolved a labor-management dispute over wages and working conditions after nearly three years of negotiation, signing an agreement with the union. The agreement will guarantee wage increases that exceed inflation rates over the next three years until 2021. The company will also provide student funds for employees' children from kindergarten to university. [94]

The US House of Representatives committee has asked e-cigarette manufacturers to hand over details about the health impact of products, heaping renewed scrutiny on the popular devices. The energy and commerce committee wrote to Fontem Ventures, a subsidiary of Imperial Brands, the tobacco manufacturer, which owns the Blu vaping brand, Reynolds American, the US business of British American Tobacco, Japan Tobacco International and Juul. [95]

Japan Tobacco International was listed amongst 59 foreign companies that have joint ventures or other commercial ties with military-owned firms. New UN report states these firms "risk contributing to, or being linked to, violations of international human rights and humanitarian law”. [96]

According to the Independent, British American Tobacco, Imperial Brands, Japan Tobacco International and Philip Morris International have all shifted their corporate structures to minimise their tax bills in the United Kingdom, researchers from the University of Bath found. Despite being headquartered in Britain, Imperial Brands paid an effective rate of just 13 per cent over the past seven years, during which corporation tax has varied between 20 per cent and 28 per cent. British American Tobacco is also based in the UK but paid “virtually no” corporation tax over the same period, including four consecutive years (2011-14) where it paid nothing at all, the paper found. [97]

Tobacco Litigation[edit]

Japan Tobacco International has removed its gantries from three retailers’ stores in the United kingdom after they were convicted of selling illegal tobacco. The removal of gantries from NJ Food & Wine in Staines, Kenton Superstores in Harrow and KS News in Bilston took the total number of gantries removed to 43. [98]

A Canadian court has upheld the bulk of a decision that ordered three tobacco companies to pay billions in damages. The judgment involves class action suits that were consolidated against Imperial Tobacco Canada, Rothmans Benson & Hedges and JTI-MacDonald. [99] An Ontario court extended an order suspending legal proceedings until March 31, 2021.

Partners and Allies[edit]

According to Transparency Register, in 2017 Japan Tobacco International disclosed it was a member of the following associations:

  • Confederation of European Community Cigarette Manufacturers [100]
  • European Smoking Tobacco Association [100]
  • European Cigar Manufacturers Association [100]
  • Business Europe [100]
  • Japan Business Council in Europe [100]
  • British Chamber of Commerce in Belgium [100]
  • American European Community Association [100]
  • Center for European Policy Studies [100]
  • The Kangaroo Group [100]
  • Ambrosetti Club Europe [100]
  • EURACTIV [100]
  • Public Affairs Council [100]
  • Forest EU (Freedom Organisation for the Right to Enjoy Smoking Tobacco) [100]
  • EPICENTER (European Policy Information Center) [100]
  • Consumer Choice Center [100]

Lobbying[edit]

Think-tanks from multiple countries received funding from British American Tobacco, Japan Tobacco International and Philip Morris International, alongside governments as they argued against tobacco controls. [101]

Bangladesh[edit]

In January 2021, the Ambassador of Japan to Bangladesh lobbied the government of Bangladesh on behalf of Japan Tobacco International.The letter criticised the country's taxation changes in 2019 which “significantly hit Japan Tobacco International” and restrictions on the importation and selling of certain JTI products. The Ambassador also complained of "anti-competitive activities" by competitors and “undue” demands by a licensing authority.

Belgium[edit]

The Belgian Competition Authority charged Philip Morris (PM.N), Imperial Brands (IMB.L), Japan Tobacco (2914.T) and British American Tobacco (BATS.L) with breaching competition law by exchanging information of future prices to wholesalers. [102]

Canada[edit]

Imperial Tobacco Canada and JTI Canada Tech, together with Juul Labs Canada have launched the Vaping Industry Trade Association (VITA) with the intention of fighting against proposed government regulations to tighten cigarette regulations amidst the ever increasing number of “vape-related” lung disease cases in the United States. VITA was officially launched in November 2019, and president Daniel David said that the aim is ensuring that regulations aimed at preventing youth access, do not come in the way of adults smokers being able to make use of the devices. [103]

European Union[edit]

Civil society organisations have urged EU commissioners to withdraw their participation from the European Business Summit - organised in partnership with Japan Tobacco International. The event featured at least six EU commissioners and dozens of EU top officials. [104] Oleksandr Kryvosheyev, Vice President Corporate Affairs at Japan Tobacco International spoke at the event. [105]

In the European Union, Japan Tobacco International monitors a large number of European Union policies and actively engages in customs, justice and home affairs, enlargement, taxation, consumer affairs, public health, internal market, external trade and anti-illicit trade. Japan Tobacco International engages with European Union institutions either on its own or via trade associations. [106]

As of November 2021, the following persons are accredited for access to European Parliament premises for Japan Tobacco International: [107]

First name Surname Start Date End Date
Ksenija Barysiene 28/09/2021 27/09/2022
Philipp HANSEN 28/09/2021 27/09/2022
Efi ANASTASIOU 28/09/2021 27/09/2022
Adriana VALLE 23/10/2021 21/10/2022
Miroslaw GAJEWSKI 26/11/2021 25/11/2022

As of May 2021, there are no British American Tobacco-affiliated persons accredited for access to European Parliament premises. Anthony Hemsley, Engagement Director is in charge of EU relations. As of May 2021, Japan Tobacco International employs three person Ksenija Barysiene, Adriana Valle, and Philipp Hansen. In 2020, the estimate of the annual costs related to activities covered by the register was around EUR 800,000 - 899,999. [108]

In December 2018, Japan Tobacco International's VP of Global Corporate Development for reduced Risk Products Ramunas Macius published a sponsored column in Politico, asking EU regulator to "... [look] how to enforce current requirements, develop new product standards and create an environment where adult smokers have access to an enlarged choice of better, safer products." [109] Japan Tobacco International is one of three full members of Tobacco Europe (previously CECCM). [110]

Forest EU, is funded by Japan Tobacco International, British American Tobacco and members of the European Smoking Tobacco Associations. [111]

Gibraltar[edit]

Government of Gibraltar in tandem with HM Customs Gibraltar has signed an agreement with Japan Tobacco International to "protect the legitimate trade in tobacco products and foster a stable and transparent tobacco market in Gibraltar". JTI Spain is one of the largest manufacturers and importers of cigarettes and rolling tobacco in Europe which are popular with smugglers trying to move cigarettes from Gibraltar into Spain. [112]

Malawi[edit]

In November 2020, Japan Tobacco International handed over 15 Village Clinics to the Ministry of Health. The clinics has been constructed in seven districts across the country. [113]

South Africa[edit]

Japan Tobacco International and British American Tobacco South Africa, together with The South Africa Tobacco Transformation Alliance (SATTA) claim the COVID-19 tobacco sale ban represents an unwarranted and unfair infringement of citizens’ rights. [114]

Ukraine[edit]

The Anti-Monopoly Committee of Ukraine fined four cigarette manufacturers and distributors, UAH 6.5 billion (USD 265 million), including Philip Morris, JTI Ukraine, Imperial Tobacco, British American Tobacco, as well as the Tedis-Ukraine distributor. The AMCU claimed there was a producers' conspiracy to prevent new potential participants from entering the tobacco distribution market. [115]

United Kingdom[edit]

Japan Tobacco International is a "Full member" of the UK Vaping Industry Association (UKVIA), the largest trade body in the United Kingdom representing the vaping sector. [116]

Dean Gilfillan, the UK general manager of Japan Tobacco International, has urged the government to enact legislation to regulate the sale of nicotine pouches, which were introduced to the British market in 2019. [117]

Ian Paisley of the Democratic Unionist party, held a tea with Japan Tobacco International (JTI) in a parliamentary dining room in July 2017. [118] Japan Tobacco International treated Tory MPs GBP 50,000 worth of freebies at top events like the Wimbledon men’s final and the Chelsea Flower Show. [119] Scottish National Party accepted conference fees from Japan Tobacco International and Imperial Brands. Both companies were at the SNP Party Conference after buying "business day" passes advertised at GBP 1,750 each. [120]

In July 2020, Charlie Cunningham-Reid, Corporate Affairs & Communications Vice President at Japan Tobacco International received a letter from Rebecca Pow MP, Parliamentary Under Secretary of State in response to the company's June 15th letter related to littering. She mentioned in the letter that "the [UK] Government is prepared to extend the offer of a roundtable discussion between various stakeholders, including tobacco product manufacturers as well as Keep Britain Tidy, to discuss progress on the commitments the industry made." [121]

Unites States[edit]

Lobbying expenses for 2019 reported by Japan Tobacco International and Japan Tobacco International USA:

Firms Hired Total Reported by Filer Reported Contract Expenses

(in USD) [122]

Lobbyist Hired [123]
Jenkins Hill Consulting 35,000 Claunch, Michael; Eckart, ScottRogers, Hayden; Sosnoff, Hadley
Emergent Strategies 45,000 Edwards, J Brad

List of issues lobbied on in 2019 [122]:

Issue Specific Issues No. of Reports*
Tobacco 2 2
Trade 2 2
Taxes 1 1

Professional Services[edit]

Organization/Company Tobacco company relationship Relationship type Evidence of past or present formalized relationship
Deloitte Audit Deloitte Touche Tohmatsu Ltd are Japan Tobacco International's independent auditors. [48]:139 2021
KPMG Research A KPMG conducted study for British American Tobacco, Imperial Tobacco, Japan Tobacco International and Philip Morris International that revealed one in every ten cigarettes consumed in the European Union in 2013 were illicit. [124] 2014
Institute for Democracy and Economic Affairs Lobbying According to Tobacco Watch, the Institute for Democracy and Economic Affairs started receiving funds from Japan Tobacco International and Philip Morris in 2015. That same year, the organization started publicly opposing tobacco control measures. [125] 2015
WeWork Office Space Leasing Japan Tobacco International opened its global business services centre in WeWork’s coworking centre the Mennica complex in Warsaw, Poland. [126] 2019
Raja, Darryl & Loh Litigation Law firm for JT International Tobacco Sdn Bhd Malaysia. [127] 2018
Crime Stoppers International Litigation Ian Monteith, Japan Tobacco International Senior Global Director for Anti Illicit Trade ( Diversion, and Seizure Investigations) was invited to give a presentation at the Crime Stoppers International conference in October 2018. [128] 2018
Villaraza & Angangco Law Office (formerly CVC Law Center) Litigation Law firm for Japan Tobacco International Philippines. [127] 2018

Marketing, Public Relations and Events[edit]

Organization/Company Tobacco company relationship Relationship type Evidence of past or present formalized relationship
EY Consulting The Japan Tobacco International has received Ernest and Young’s new Global Equality Standard certificate, achieving several of the highest assessment scores possible on equal opportunities and equal pay. [129] 2021
Indonesian Social Investment Foundation CSR Japan Tobacco International Indonesia, in collaboration with the Indonesian Social Investment Foundation, inaugurated the freshwater fishery conservation program, PAK WALI (River Fish Conservation) in Sukun Hamlet, Bakalan Village, Pasuruan. [130] 2021
Letzpact Lobby group Letzpact is a new non-profit organisation whose mission is to represent public affairs professionals in Luxembourg. In other words, lobbyists. Letzpact's board of directors includes Gerry Wagner (House of Automobiles), Frédérique Dell (Political Intelligence, in Brussels), Mark De Zutter (Bepact, in Belgium), Sonia Franck (secretary general of the Luxembourg Pharmaceutical Association), Mathilde Brasseur (Letzpact’s secretary general and corporate affairs manager for Japan Tobacco International) and Laurence Ponchaut (Distinct Communication). [131] 2021
THE ELIZABETH@HURLOCK BECKMAN AWARD TRUST Stock holder Nonprofit Explorer by Propublica revealed the Foundation holds Japan Tobacco stocks with the end of Year Fair Market Value of USD 3,158. [132] 2021
Robert F Schumann Foundation Stock holder Nonprofit Explorer by Propublica revealed the Foundation holds Japan Tobacco stocks with the end of Year Fair Market Value of USD 11,715. [133] 2021
Goulder Family Foundation Stock holder Nonprofit Explorer by Propublica revealed the Foundation holds Japan Tobacco stocks with the end of Year Fair Market Value of USD 5,270. [134] 2021
Moscow Museum of Modern Art Sponsorship According to Tobacco Tactics, In 2021 The Moscow Museum of Modern Art presented Double Vision: Contemporary Art from Japan in collaboration with the Japan Foundation. The event from 14 March to 6 May was supported by JTI. [135] 2021
Bangladesh Brand Summit 2020 Event Bangladesh Brand Summit 2020 featured Shahriar Amin, the Head of Portfolio at Japan Tobacco International. [136] 2020
The Economist Event Ian Monteith, Global senior director of anti-illegal trade, spoke at a virtual panel on "Global Illict Trade: Profiteering from Pandemic'. [137]

JTI Senior Vice President Corporate Affairs and Communications Suzanne Wise appeared at the virtual Economist Sustainability Week summit on behalf of JTI in March 2021. [138]

2021
Grey PR WPP's agency Grey won Japan Tobacco International pitch for ‘borderless’ way of working, which will be rolled out fully in 2020 with an internal platform launch. [139] 2020
Vapetech Sponsorship In partnership with Japan Tobacco International, Plug And Play is running a call for applications twice per year to each select 10 new startups to join Vapetech. Startups will have a 3-month access to the Vapetech in Silicon Valley, pilot opportunities with strategic partners, and ecosystem resources at Plug and Play with the backing of a large international player in the industry. The exact details of the partnership are unclear. [140] 2020
Grey MENA PR Grey Group Middle East and North Africa (MENA), has won Japan Tobacco Interntional's account, to develop its brand management and communication in the GCC region, with focus on Saudi Arabia. The Grey team will oversee JTI’s brand management and communication. [141] Grey’s Beirut team has enlarged its portfolio in the tobacco industry, as it already holds the account of Nakhla Tobacco Company. [141] Grey won one of the agency’s bigger pitches in Japan Tobacco International—a win it credits to its new ‘borderless’ way of working, which will be rolled out fully in 2020 with an internal platform launch. [142] 2018
Kantar Media Research In 2018, Kantar was contracted to conduct an "independent" research for Japan Tobacco International on the national public opinion survey on the perception of plain packaging on tobacco one year after its implementation in the UK. [143] 2018
Ogilvy Action Taiwan PR Jeevan Jayakumar played a strategic role in the development and expansion of Ogilvy Action Taiwan while leading the British American Tobacco business relationship across APAC. [144] 2019
Global Tobacco and Nicotine Forum Events The event is run by the Tobacco Merchants Association, a US-based organization which hosts discussions regarding nicotine and tobacco issues. The organization also owns and runs the Tobacco Reporter magazine. [145] 2020
InvestGR Events The InvestGR Forum on Monday announced the start of its three-year strategic partnership with Japan Tobacco International (JTI) with this year’s event, titled “Greece in the Pole Position,” which due to the coronavirus pandemic will be online.[146] 2021
Moodie Davitt Virtual Travel Retail Expo Events Japan Tobacco International (JTI) has become the latest Platinum Partner for the Moodie Davitt Virtual Travel Retail Expo in October. JTI Worldwide Duty Free General Manager Simon Warburton expressed his excitement at taking part in the industry’s first digital initiative on this scale. He said: “We are delighted to have the opportunity to connect with our partners, and will focus our attention on discussion, ideas and innovations that drive as swift a recovery as possible. [147] 2020

Think-tanks & International Organizations[edit]

Organization/Company Tobacco company relationship Relationship type Evidence of past or present formalized relationship
Consumer Choice Center Lobbying MBritish American Tobacco and Japan Tobacco International are funding an anti-regulatory, libertarian-leaning organization, Consumer Choice Center, that is working to restrict global Covid-19 vaccine access. CCC is mobilizing to defeat a proposal at the World Trade Organization to suspend intellectual property rules related to Covid-19 tests, treatments and vaccines. [148] 2022
Scottish Grocers’ Federation Lobbying Japan Tobacco International is a Platinum member of Scottish Grocers’ Federation. [149] 2022
Ernest and Young Professional Services The Japan Tobacco International has received Ernest and Young’s new Global Equality Standard certificate, achieving several of the highest assessment scores possible on equal opportunities and equal pay. [150] 2021
CDP Foundation CSR JTI has once again been recognized for its leadership in corporate sustainability by global environmental non-profit CDP. JT achieved a place on CDP's prestigious "A List" for tackling climate change and acting to protect water security for the third consecutive year. [151] 2021
The Swiss Association for Search and Rescue Dogs Redog of the Red Cross Charity he Swiss Association for Search and Rescue Dogs Redog of the Red Cross comes into play when people have been buried by earthquakes or floods. To finance the training and equipment, Redog relies on donations – and they come from Japan Tobacco International (JTI), which has been making regular donations for eleven years. [152] 2021
Japan Foundation Sponsorship The Foundation has previously received funding from Japan Tobacco International. In 2021, Japan Tobacco International and Philip MOrris International were sponsor of the Foundation's Future of Asia conference. [153] 2021
Intrinsic Insight Research Intrinsic Insight Ltd verified Japan Tobacco's report entitled 'The Gathering Storm', on how the illegal tobacco trade are operating during the Covid-19 global pandemic and preparing to reap the rewards in the economic aftermath that will follow. [154] 2020
Sauber Engineering AG Contractor japan Tobacco International has a technology partnership agreement with Sauber Engineering AG. Through this partnership, both companies collaborate on the development of precision engineering projects aimed at increasing the performance of the "next generation" of JT Group products. [155] 2020
Retailers Against Smuggling Lobbying Retailers Against Smuggling is an Irish organization that gathers retailers' efforts to prevent illicit trade in the country. It is funded by the Irish Tobacco Manufacturers Advisory Committee, composed of JTI Ireland, Imperial Tobacco and British American Tobacco subsidiaries.[156] 2020
Digital Coding & Tracking Association (DCTA) Lobbying The Digital Coding and Tracking Association (DCTA) is a front group, launched in 2013 by the four multinational tobacco companies: British American Tobacco, Imperial Tobacco, Japan Tobacco International and Philip Morris International. The DCTA has promoted the industry’s tobacco tracking and tracing technology, Codentify, often without disclosing its relationship to the tobacco industry.[157] 2020
Americans for Tax Reform Sponsorship In response to questions from the Guardian, Japan Tobacco and British American Tobacco both disclosed it donated to Americans for Tax Reform, though did not disclose which years.[158] 2017
Atlas Network Sponsorship In 2016, its named donors also included JTI-Macdonald Corp, also known as Japan Tobacco International. Atlas Network did not disclose the amount of those donations. [158] 2016
Cato Institute Sponsorship

In response to questions from the Guardian, Japan Tobacco disclosed it donated to Cato, but not which years.[158]

2013
Institute for Democracy and Economic Affairs (Ideas) Sponsorship It also received funds from Japan Tobacco International in 2015 and 2017. In response to questions from the Guardian, British American Tobacco said it donated to Ideas, but did not disclose which years.[158] 2017
Adam Smith Institute Sponsorship In response to questions from the Guardian, Japan Tobacco and British American Tobacco both disclosed they had also donated to the Adam Smith Institute, though they did not disclose which years. The Adam Smith Institute was rated "highly opaque" by watchdog group Transparify, which campaigns for more disclosure of thinktank funding.[158] 2013
Austrian Economics Center Lobbying Dozens of free-market thinktanks, including the the Austrian Economics Center, signed open letters to the World Health Organization opposing plain packaging in 2016 and 2018. In response to questions from the Guardian, Japan Tobacco and British American Tobacco both disclosed they donated to the Austrian Economics Center, but did not disclose which years. [158] 2018
Center for Liberal Democratic Studies Sponsorship In response to questions from the Guardian, Japan Tobacco disclosed it also donated to the Center, though did not disclose which years.[158] 2020
Center for Social and Economic Research Sponsorship In response to questions from the Guardian, Japan Tobacco disclosed it paid the Center, though did not disclose which years or in what amounts. The Center for Social and Economic Research denied it received money from Japan Tobacco, despite disclosures by Japan Tobacco. The group said it "stands for predictable taxation policy", which "should consider smuggling trends in the region". The group said it has "no idea" about plain packaging.[158] 2019
Ekonomichna Pravda Sponsorship In response to questions from the Guardian, Japan Tobacco disclosed it had paid Ekonomichna Pravda but not which years. In response to questions from the Guardian, editor of Ekonomichna Pravda Dmytro Dienkov said the group had not received "donations" from Japan Tobacco. Instead, it said the group partnered with Japan Tobacco in an advertising campaign. "The goal of the project is to show how difficult it is to run a business in Ukraine and how many documents, unnecessary permits and licenses they need," the group said. "This project is not about the tobacco industry, and tobacco products are not advertised." The group said it believed tobacco controls, including plain packaging, were not necessarily bad policy, "if it leads to a reduction in the number of smokers". [158] 2019
Hibernia Forum Lobbying The Hibernia Forum repeatedly opposed plain packaging, which removes branding from cigarette packs. Dozens of Atlas thinktanks, including the Hibernia Forum, signed open letters to the World Health Organization opposing plain packaging in 2016 and 2018. In response to questions from the Guardian, Japan Tobacco disclosed it donated to the Hibernia Forum, though did not disclose which years.[158] 2018
TaxPayers' Alliance Lobbying The TaxPayers' Alliance was among a handful of Atlas affiliates which co-signed a letter to the editor of the Telegraph calling for a "halt to the relentless campaign to 'denormalise' smoking" and pushing against plain packaging. In response to questions from the Guardian, Japan Tobacco disclosed it also donated to the TaxPayer's Alliance, though did not disclose which years, and British American Tobacco said it currently supports this organization.[158] 2019
Ukrainian Economic Freedoms Foundation Sponsorship Philip Morris donated $150,000 to the Ukrainian Economic Freedoms Foundation in 2017. In response to questions from the Guardian, Japan Tobacco disclosed it donated to the Foundation, though did not disclose which years. British American Tobacco said it currently supports this organization. In 2016 and 2018, the foundation was one of dozens of Atlas-affiliated thinktanks which signed a letter to the World Health Organization opposing plain packaging, which removes branding from cigarette packs.[158] 2017
The Kangaroo Group Lobbying The Kangaroo Group promotes free trade across the European Union. In 2017, the Group’s tobacco industry members were listed as Barry Ronan from British American Tobacco, Mario Muller from the Confederation of European Community Cigarette Manufacturers, Alan Hardacre from Imperial Tobacco, Kristof Doms from Philip Morris International and Paolo Bochicchio from Japan Tobacco International. [159] 2017

References[edit]

  1. 1.0 1.1 Japan Tobacco International, About Us, Accessed September 2018
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