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 19th consecutive year of profit growth for the company. [1] Japan Tobacco, the world’s fourth-biggest cigarette maker by sales, which is 33.35 percent owned by the state. [2] 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. [3]

Company Overview[edit]

Japan Tobacco, Inc. engages in the manufacture and sale of tobacco, pharmaceutical, beverage and processed food products. It operates through the following segments: Domestic Tobacco Business, International Tobacco Business, Pharmaceutical Business, Beverage Business, Processed Food Business and Others. The Domestic Tobacco Business segment deals with the production and sale of tobacco products in domestic areas. [4]

Japan Tobacco is the former government monopoly and still controls 60 percent of the cigarette market in the country. [5] 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. [6]: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. [7] Japan Tobacco International is planning to cut one quarter of its staff in Geneva over a three-year period as part of restructuring measures. [8]

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.[9]
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.[9]

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). [9]
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. [9]
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. [9]
Jorge da Motta Regional President, Middle East, Near East, Africa, Turkey and Worldwide Duty Free Jorge da Motta is a dual South African/ Belgian national, appointed as Regional President, Middle East, Near East, Africa, Turkey and Worldwide Duty Free in February 2016. Jorge joined the company in Tanzania in 2005 as Sales and Marketing Director and progressed to General Manager later that year. In 2007, he moved to Moscow to lead the Sales and Marketing function in Russia, and in 2010, he moved further east to Hong Kong as Regional Sales and Marketing Vice President for the Asia Pacific Region. In 2013, Jorge was appointed General Manager for the UK. He moved to Geneva in 2014 when he was appointed as Regional President of Central Europe. He holds a Bachelor of Commerce degree from the University of the Witwatersrand in South Africa. [9]
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. [9]
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. [9]

Japan Tobacco International Korea named Jose Luis Amador as its new general manager in 2019. [10]

Board Members[edit]

Name Position Bio
Yasutake Tango Chairman of the Board Tango began his career at Japan’s Ministry of Finance in 1974. He served as Executive Secretary to Prime Minister Junichiro Koizumi from 2001 to 2006, and in 2008 was appointed Director-General of the Budget Bureau. He was promoted to Administrative Vice Minister of the Ministry of Finance in 2009. Tango became Chairman of the Board of Directors of JT in 2014 after having served as Corporate Auditor for The Yomiuri Shimbun Holdings from 2010 to 2012. He also serves as Outside Director for The Ogaki Kyoritsu Bank, Ltd. and is Chairman and Principal of Kaisei Junior & Senior High School, one of Japan’s leading preparatory schools. Tango is a graduate of the University of Tokyo’s Faculty of Law. He is a keen hiker and outdoor enthusiast. [11]
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. [11]
Mutsuo Iwai Representative Director and Executive Vice President Iwai joined JT (Japan Tobacco and Salt Public Corporation) in 1983, and over the past thirty-five years has held senior positions across divisions and business units. In 1997, he was part of the committee that developed the 4S Model, which identifies and commits to serving JT’s four stakeholder groups. More than 20 years later, the model’s principles still guide the Group’s strategic direction. In 2002 and 2003, he again played a key role in the formulation of JT’s management strategy, contributing to the development of “Plan V”, JT’s pivotal medium-term plan for April 2003 to March 2006. Iwai served as Vice President of the Corporate Planning Division in 2003. He was appointed to the Board in June 2006 and promoted to Executive Vice President and President of the Food Business. After serving a series of management positions, including Senior Vice President and Chief Strategy Officer, he moved to Switzerland in 2011 to take a position at JT International. Returning to Japan in 2013, he became Senior Executive Vice President and Chief Strategy Officer. Iwai took up his current position as Executive Vice President, Representative Director, and President, Tobacco Business Headquarters in March 2016. He is also Chairman of JT International Group Holding B.V. Iwai is a graduate of the University of Tokyo’s Faculty of Economics. He enjoys cigars and listening to classical music. [11]
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. [11]
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. [11]
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). [11]
Koichiro Watanabe Outside Director of the Company Watanabe began his career at The Dai-ichi Mutual Life Insurance Company in 1976. He became a member of that company’s Board in 2001 and pursued a multi-stakeholder management style through company-wide social responsibility initiatives. Appointed Director, Managing Executive Officer in July 2007, Watanabe worked to accelerate the growth of the company’s global business through overseas M&A. In 2010, Watanabe led The Dai-ichi Mutual Life Insurance Company’s reorganization as a joint-stock company and its subsequent listing on the First Section of the Tokyo Stock Exchange. He was appointed Representative Director and President of the newly formed The Dai-ichi Life Insurance Company, and in 2015 oversaw its acquisition of Protective Life Corporation. In 2016, he led Dai-ichi’s transition to a holding company structure, creating an operating framework that responds more flexibly to changes in the business environment. He became Representative Director and President of Dai-ichi Life Holdings that same year and has been Chairman of the Board at both The Dai-ichi Life Insurance Company and Dai-ichi Life Holdings since 2017. Watanabe was appointed to JT’s Board of Directors as an Outside Director in March 2018. Watanabe is a graduate of Tohoku University’s Faculty of Economics. In his spare time, he enjoys playing golf. He holds dan ranks in both kendo and karate. [11]

Investments in Unconsolidated Subsidiaries ("significant" > 20 percent management control):[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.[12]

No associates or joint ventures are considered to be material to the Group[6]: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.[6]:97

List of Significant Subsidiaries (JT)[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.[13]

Subsidiary Name[13] 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.[13]

Forecast[edit]

The tobacco business will remain Japan Tobacco International's profit growth engine. The company also expects contribution from the pharmaceutical and processed food businesses to complement the JT Group’s profit growth. In February 2018, the tobacco company's priorities for 2018 were identified as:

  • Accelerating investment in Reduced-Risk Products as future growth drivers of the tobacco business.
  • Enhancing business foundations in traditional tobacco products, such as cigarettes, by investing in brand equity and geographical expansion.

Japan Tobacco’s third quarter for 2018 results met expectations but showed stronger performance in its International Tobacco Business segment as a result of completing acquisition activity (Ethiopia, Indonesia, Philippines, and Russia) which helped balance the Japanese Domestic Tobacco segment's weaker performance. The key sensitivity in the International Tobacco Business segment continues to be unfavorable currency movements. [14] According to the 2017 financial report, the company will narrow its global flagship brand (GFB) focus from nine to four brands: Winston, Camel, LD and Mevius. These four brands will grow volume by approximately 2 percent, keeping the GFB mix in total volume above 60 percent.

Profitability[edit]

Revenue[edit]

Fiscal year

in Billions of YEN

2018 IFRS [15] 2017 IFRS[15] 2016 IFRS[15] 2015 IFRS[15] 2014

(Jan-Dec)[15]

Net Revenue 2,216.0 2,139.7 2,143.3 2,252.9 2,259.2
Net Revenue - International Tobacco 1,312.3 1,237.6 1,199.2 1,317.2 1,328.0
Net Revenue - Domestic Tobacco 621.4 626.8 684.2 677.3 687.4

Acquisitions[edit]

Recent acquisitions [16] Acquired Organization Name Acquiring Organization Name Announced Date Value
Mighty Corporation (Philippines) acquired by Japan Tobacco International Mighty Corporation Japan Tobacco International 2017 936 million[17]
Karyadibya Mahardhika (Indonesia) acquired by Japan Tobacco International Karyadibya Mahardhika Japan Tobacco International 2017 USD 1 billion [17]
La Tabacarela (Dominican Republic) acquired by Japan Tobacco International[18] La Tabacarela Japan Tobacco International 2016 NA
Fluxo Brasil Distribuidora do Produtos (Brazil) acquired by Japan Tobacco International[19] 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 [20]
Logic Technology Development LLC (U.S.) acquired by Japan Tobacco International Logic Technology Development LLC Japan Tobacco International 2015 NA
Arian Tobacco Industry (Iran) acquired by Japan Tobacco International Arian Tobacco Industry Japan Tobacco International 2015 "undisclosed amount"[21]
Ploom, Inc. (U.S.) acquired by Japan Tobacco International Ploom, Inc. Japan Tobacco International 2015 "undisclosed amount"[22]
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]

In August 2018, Japan Tobacco purchased Akij Group (Bangladesh) for around USD 1.5 billion. Reuters reported it is Japan Tobacco International's second major purchase in five months.[23] At thay 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 the JT Group’s overall volume.[24] 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.[25]

In August 2017, Japan Tobacco International purchased Indonesia’s PT Karyadibya Mahardhika for USD677 million and [26] Japan Tobacco International also agreed to pay 52.6 billion Philippine pesos (USD1.02 billion), including tax, for assets belonging to Mighty, which commands a 23 percent share of the Southeast Asian nation's tobacco market. JT aims to build up its share there, which currently sits at less than 5 percent. [27]

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. [28]

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.[29]

According to Euromonitor International data, Japan Tobacco had an 8.4 percent share of the global cigarette market in 2016. [30]

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." [31] 

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,”[32]

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."[31]


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." [33]

Factory Openings and Closures[edit]

Japan Tobacco has 35 international and six Japanese domestic factories. [3]:7

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.[34]

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. [35]

In 2014, Japan Tobacco International closed factories in Northern Ireland, Belgium and Germany. Financial Times cited declining volumes and growing regulatory pressures as the reason. The company moved its operations to Poland and Romania. [36]

Dividends[edit]

In July 2019, Japan Tobacco International announced the interim dividend of JPY 77 per share. [37]

Table below provides review of dividend payment history since 2014:

Dividend per share

in Millions YEN

2018 [38] 2017 [38] 2016 [38] 2015 [38] 2014 [38]
Interim 75 70 64 54 50
Year-end 75 (Estimated) 70 66 64 50
Annual 150 (Estimated) 140 130 118 100
Dividend payout ratio 71.3 (Estimated) 63.9 55.2 53.2 50.1

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.[3]:7 In July 2019, Japan Tobacco International launched in Korea launched PLOOM TECH in Korea. [39] Japan Tobacco International in Korea said Ploom Tech will be sold at duty-free stores Lotte and Shilla Duty Free from mid-September. [40]

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". [3]: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). [3]: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.[41]: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. [29]

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 Tovbacco launched Ploom shops and expanded the sales of Ploom TECH in Tokyo.[41]:2 In August 2019, Japan Tobacco International will be launching nationwide sales of Ploom S and three types of Ploom S tobacco sticks. Sales will start in approximately 57,000 convenience stores and 2,200 tobacco retail stores. [42]

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 Promoting ecological agricultural practices and responsible marketing is a brand priority for this premium tobacco product.
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.

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 unparalleled equity of the company's Global Flagship Brands. [15]:34

Japanese Domestic Tobacco[edit]

Japan Tobacco International are 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. [41] Male smoking rates in Japan have dropped by more than half since 1985. The Financial Times reported in 2018, domestic sales of traditional cigarettes in the quarter to March were down 15 percent from the previous year, driven by competition from electronic cigarette alternatives. [43] For Japanese domestic tobacco, total sales volume excludes sales volume of Japanese domestic duty free, the Chinese business and emerging products.

in Billion Units 2018[15]:28 2017[41]:16 2016[6]:14 2015[6]:14 2014[6]:14
Tobacco Units (in billions) 82.0 92.9 106.2 109.2 112.4

In August 2018, Japan Tobacco International filed for Finance Ministry approval of its plans to raise the prices of most of its products in line with the tobacco tax hike set for Oct. 1. [44]

International tobacco[edit]

For the international tobacco business, total shipment volume includes fine cut, cigars, pipe tobacco and snus, but excludes contract manufactured products, waterpipe tobacco products and emerging products.[6]:14

in Billion Units 2018[15]:28 2017 [41]:16 2016 [6]:14 2015 [6]:14 2014 [6]:14
Tobacco Units (in billions) 427.6 398.5 389.7 393.9 398.0

Innovative Product Portfolio[edit]

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).[3]:56

In early 2019, Japan Tobacco International unveiled two “heat-not-burn” products and started selling Ploom TECH+ and Ploom S in Japan from January 29. [45] [46] Japan Tobacco International introduced the Logic Compact vape in Canada across Ontario and British Columbia. Logic Compact is a high-nicotine, closed-tank vape, offering adult smokers the alternative they have been asking for. [47]

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.[48]
Logic PRO Logic Pro is Japan Tobacco International's closed tank system. This pairs pre-filled e-liquid capsules to specific devices.[48]
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.[48]

Sales of Heated Tobacco products in Japan[edit]

Price Number of Tobacco Brands Available Available Areas
Ploom Tech [49]

(Japan Tobacco International)

4,000 5 Tokyo, Osaka, Sapporo,Sendai, Yokohama, Nagoya, Hiroshima, Fukuoka
IQOS [49]

(Philip Morris International)

10,980 6 Nationwide
GLO [49]

(British American Tobacco)

8,000 8 Nationwide

Marketing and External Relations[edit]

Global Campaigns[edit]

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. [50]

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. [51]

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. [52]

In December 2018, Dubai Duty Free has 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. [53]

In response to a study by the Coalition of Public Health Groups, that claimed tobacco companies pay social media and social media stars who have thousands of followers to subtly promote their tobacco products on Instagram, Twitter and other platforms, Japan Tobacco responded with:

  "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 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." [54]

JTI Encounters[edit]

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, and the audiences eagerly await each annual edition. [55]

Sponsorships[edit]

Belgian authorities are alooking into an event organised in the European Parliament last year, which was sponsored by Japan Tobacco International. [56]

Japan Tobacco International provides funding to the British Museum’s Asia department. [57] According to TobaccoTactics, Japan Tobacco funded Consumer Choice Center's launch event in 2018. [58]

Japan Tobacco was one of the sponsors of the 2018 Middle East & Africa Duty Free Association (MEADFA) Conference was held in November 2018under the patronage of H.E. Mr. Saad Hariri, Lebanese President of the Council of Ministers, in Beirut, Lebanon. [59]

In June 2018, the government of Japan passed tough anti-smoking law ahead of 2020 Summer Olympics Games, banning smoking in most of the city’s bars and restaurants in the run-up to the games. [60]

Japan Tobacco International is a special partner of the International Theatre Festival in Sibiu (FITS), the most important annual theatre 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”. [55]

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. [61]

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. [61]

In 2011, anti-smoking campaigners accused Japan Tobacco International of marketing products to teenage girls at World Cup volleyball. Japan Tobacco's logo appeared on the national team uniforms, court-side digital billboards, TV ads and “gift” packages handed out to schoolgirls, mothers and children entering Yoyogi National Stadium and arenas across Japan during the World Cup. Japan Tobacco also sponsored a national team starring the country’s top player, Yoshie Takeshita. [62]

Research and Development[edit]

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." [63]

Corporate Social Responsibility[edit]

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, United Republic of Tanzania and Zambia, and throughout its supply chain. The JTI is a member of the Eliminating Child Labour in Tobacco Growing Foundation (ECLT). To date, the amount of funding received from the 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. [64] 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. [65] 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. [66] 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. [67] 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". [68]

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. [69]

Marketing to Kids[edit]

Campaign for 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. [70] 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. [71]

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 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." [72]

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. [73]

Political Spending[edit]

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

Reporting and Regulation[edit]

Investigations[edit]

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. [74]

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”. [75]

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. [76]

Tobacco Litigation[edit]

A full list of tobacco industry litigation cases can be found here.

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. [77]

In 2016, Japan Tobacco International and Others v. Ministry of Health (plain packaging laws), Japan Tobacco International, Philip Morris International, British American Tobacco and others brought six legal challenges against France's plain packaging regulations. The Conseil d’Etat (the highest administrative jurisdiction in France) dismissed all six challenges, holding that to the extent there is any infringement of property rights, the infringement is justified by the public health objective.

In 2015, Japan Tobacco International Ireland told Irish Ministers James Reilly and Leo Varadkar that it will take legal action if they fail to promise that no further steps will be taken to enact the draft plain packaging law. [78]

In 2014, Japan Tobacco International (Thailand) v. Minister of Public Health, Japan Tobacco challenged a requirement of 85 percent pack warnings. The Supreme Administrative Court found that the requirements are not outside the intended scope of the tobacco control law and allowed implementation of the pack warnings while the case is ongoing. Japan Tobacco challenged a requirement of 85 percent pack warnings. The Supreme Administrative Court found that the requirements are not outside the intended scope of the tobacco control law and allowed implementation of the pack warnings while the case is ongoing.

In 2012, Japan Tobacco International SA v. Commonwealth of Australia, Tobacco companies challenged the constitutionality of a law requiring "plain" packaging of tobacco products, including large pictorial health warnings. The High Court upheld the constitutionality of the law. The Court ruled that although the government had "taken" the property of the tobacco companies, there had been no "acquisition" because neither the Government nor any third party acquired any benefit as a result.

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 [79]
  • European Smoking Tobacco Association [79]
  • European Cigar Manufacturers Association [79]
  • Business Europe [79]
  • Japan Business Council in Europe [79]
  • British Chamber of Commerce in Belgium [79]
  • American European Community Association [79]
  • Center for European Policy Studies [79]
  • The Kangaroo Group [79]
  • Ambrosetti Club Europe [79]
  • EURACTIV [79]
  • Public Affairs Council [79]
  • Forest EU (Freedom Organisation for the Right to Enjoy Smoking Tobacco) [79]
  • EPICENTER (European Policy Information Center) [79]
  • Consumer Choice Center [79]

In October 2018, Japan Tobacco International rejoined the Association of the Tobacco Industry of Cambodia. [80]

Tobacco Tactics reported a number of tobacco companies, including Japan Tobacco International were a donors to the Atlas Network in 2015 and 2016. According to the organization's Wiki "internal tobacco industry documents show the Atlas Network has had a longstanding funding relationship with the tobacco industry." [81]. Full profile on the organization can be found here.

Japan Tobacco International is a Platinum member of the Scottish Grocers Federation, a front group 'promoting responsible community retailing by lobbying, communication, networking and advice.' As of 2018, British American Tobacco and Imperial were both listed as members on the organization's website. [82]

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 (James to enter individual countries). [83]

China[edit]

In China and Japan, the tobacco industry takes CSR activities to a different level by conducting public education on how smokers can exercise “good manners” in smoking to reconcile with public health. The Chinese National Bureau issued guidance on the creation of a “civilized smoking environment” to help develop “beautiful China” over five years, to fulfill both governmental requirements and to “satisfy public health needs”. [84]

European Union[edit]

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. [85] In 2017, the organization has paid between EUR 1,250,000 and EUR 1,499,999 on activities related to lobbying and registration fees within the European Union.[85]

The organization employs five part-time and two full-time lobbyists. The European Union Register lists the following employees:

Name Contract Status Start Date End Date
Ksenija Barysiene [85] Active 15 September 2018 30 September 2019
Brian Dunphy [85] Active 19 May 2018 17 May 2019
Vlad Olteanu [85] Active 30 January 2018 29 January 2019
Delia Andreea Voica [85] Active 15 September 2018 30 September 2019

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." [86]

Japan[edit]

Japan’s “Tobacco Business Act” protects the tobacco business, establishes a direct link between Japan Tobacco and the Government (through a 33 percent ownership), and enables Japan Tobacco to interfere in policy development in the country. A 2018 proposal for pictorial health warnings on packs was dismissed by a pro-industry committee under the Ministry of Finance, which recommended a 50 percent text-only warning instead. [87]:10

When senior Japanese finance officials retire from government service, they often move to top leadership positions in Japan Tobacco. The current Chairman of Japan Tobacco started his career in the Ministry of Finance, rising to the position of the Administrative Vice Minister in 2009. He was later promoted to a Special Advisor to the Cabinet (2012 – April 2014), before joining Japan Tobacco in June 2014. [87]:26

Draft legislation proposing 100 percent smoke-free public places was defeated in 2017. However, in 2018, Tokyo Governor Yuriko Koike, in consultation with experts from the public health community, successfully implemented a Passive Smoking Prevention Ordinance in Tokyo. The federal government has since followed through with a 100 percent smoke-free indoor law. [87]:10

In China and Japan, the tobacco industry takes CSR activities to a different level by conducting public education on how smokers can exercise “good manners” in smoking to reconcile with public health. In Japan, Japan Tobacco has established “smoking spaces”, giving the impression that this is how to “satisfy both smokers and non-smokers”. Currently, Japan Tobacco has implemented this initiative at 943 locations in collaboration with 212 municipalities around the country. {{r|GTII_2019|p=15}

Philippines[edit]

The government has made strides towards limiting tobacco industry involvement in decision-making. The Tobacco Regulation Act 2003 (RA9211) has given the tobacco industry representatives a seat in the Inter-Agency Committee -Tobacco (IAC-T). This committee tasked with the implementation of the tobacco control law. In 2018, Committee on Health in the House of Representatives discussed seven bills to amend the Act. One of the key amendments was to restructure the IAC-T, including removal of the Philippine Tobacco Institute (PTI) from the Committee and assigning the Department of Health as chair of the Committee. The PTI, a tobacco industry front group in the Philippines, Philip Morris Fortune Tobacco Corporation, and Japan Tobacco International attended the hearings as resource persons and provided their comments on the proposed measures. The bills are still under consideration. {{r|GTII_2019|p=10}

Ukraine[edit]

In March 2017, Cabinet of Ministers approved a draft bill on ratification of the WHO FCTC Protocol to Eliminate Illicit Trade in Tobacco Products2 and the Ministry of Health submitted a draft bill to the Presidential Administration for ratification; however, the Administration returned the draft bill twice citing “technical issues”. The bill still remains unratified. In 2018, Ukraine's Fiscal Service signed a Memorandum of Understanding with “Ukrtiutiun” (Ukrainian Association of Tobacco Producers, which represents Philip Morris International, British American Tobacco, Japan Tobacco International, and Imperial Tobacco), showing the Government's acceptance of the tobacco industry’s assistance to tackle the illicit trade in tobacco. [87]:12

United Kingdom[edit]

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. [88] 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. [89]

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) [90]

Lobbyist Hired [91]
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 [92]:

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

Human Resources[edit]

Top Employers Institute recognised Japan Tobacco International as a leading employer of the year in three regions - Europe, Middle East and Asia Pacific. [93]

Law firms[edit]

Name Contract Status Notes
Raja, Darryl & Loh NA Law firm for JT International Tobacco Sdn Bhd Malaysia. [94]
Villaraza & Angangco Law Office (formerly CVC Law Center) NA Law firm for Japan Tobacco International Philippines. [94]

Think-tanks & International Organizations[edit]

Name Years Funded Notes
Americans for Tax Reform 2015-2017 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.[95]
Atlas Network 2016 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. [95]
Cato Institute 2010, 2012-2013

In response to questions from the Guardian, Japan Tobacco disclosed it donated to Cato, but not which years.[95]

Institute for Democracy and Economic Affairs (Ideas) 2015-2017 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.[95]
Adam Smith Institute 2011, 2013 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.[95]
Austrian Economics Center NA 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. [95]
Center for Liberal Democratic Studies NA In response to questions from the Guardian, Japan Tobacco disclosed it also donated to the Center, though did not disclose which years.[95]
Center for Social and Economic Research NA 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 fron 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.[95]
Ekonomichna Pravda NA 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". [95]
Hibernia Forum NA The Hibernia Forum repeatedly opposed plain packaging, which removes branding from cigarettes 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.[95]
TaxPayers' Alliance NA 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.[95]
Ukrainian Economic Freedoms Foundation 2017 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.[95]
Forrest EU 2018 Forest EU is supported by the Confederation of European Community Cigarette Manufacturers (CECCM), whose members are Japan Tobacco International (JTI), British American Tobacco (BAT) and Imperial Brands PLC (IMB) and by the members of the European Smoking Tobacco Association (ESTA). Our annual budget in 2018 is EUR 165,000. [96]
The Kangaroo Group 2017 - onging 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. [97]

Consultancies[edit]

Name Contract Status Notes
Deloitte (2017) Active Deloitte Touche Tohmatsu Ltd are Japan Tobacco International's independent audtitors. [41]:139
KPMG (2014) NA A KPMG conducted a 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. [98]
Institute for Democracy and Economic Affairs (2015) NA 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 to tobacco control measures. [99]

Marketing, Conferences and PR Companies[edit]

Name Contract Status Notes
Grey MENA (2018) Active 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. [100] Grey’s Beirut team has enlarged its portfolio in the tobacco industry, as it already holds the account of Nakhla Tobacco Company. [100]
Kantar Media (2018) NA 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. [101]
Ogilvy Action Taiwan NA 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. [102]
Global Tobacco and Nicotine Forum Active Christiane Bisanzio (VP of diversity and inclusion, people and culture) and Jim Howard (VP of Environment, health and safety) at Japan Tobacco International will be among the speakers at the 2019 Forum in Washington DC. [103]

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