Difference between revisions of "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. {{r|JT_WEB_ABOUT-US}} According to company's website, 2017 marked 19th consecutive year of profit growth for the company. {{r|JT_WEB_ABOUT-US}} Japan Tobacco, the world’s fourth-biggest cigarette maker by sales, which is 33.35 percent owned by the state. <ref>[https://www.ft.com/content/785b1b46-ffdd-11e6-96f8-3700c5664d30 Japan’s tobacco lobby seeks to head off indoor smoking ban
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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. {{r|JT_WEB_ABOUT-US}} According to company's website, 2017 marked the 19th consecutive year of profit growth for the company. {{r|JT_WEB_ABOUT-US}} Japan Tobacco, is the world’s fourth-biggest cigarette maker by sales, and is 33.35 percent owned by the state. <ref>[https://www.ft.com/content/785b1b46-ffdd-11e6-96f8-3700c5664d30 Japan’s tobacco lobby seeks to head off indoor smoking ban], ''Financial Times'', March 2017, Accessed 12 September 2018 </REF> 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. <ref name="JTI_Sustainability"> Japan Tobacco International website, [https://www.jti.com/sites/default/files/jt-group-sustainability-report-fy-2018.pdf Sustainability Report FY 2018], May 2019, p. 6, Accessed 20 July 2019 </ref>
], ''Financial Times'', March 2017, Accessed September 2018 </REF>
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==Company Overview==
 
==Company Overview==
  
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. <ref>[https://www.forbes.com/companies/japan-tobacco/#7a5a05b6612b Japan Tobacco on the Forbes Top Regraded Companies List], ''Forbes'' June 2018, Accessed September 2018</ref>   
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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. <ref>[https://www.forbes.com/companies/japan-tobacco/#7a5a05b6612b Japan Tobacco on the Forbes Top Regraded Companies List], ''Forbes'', June 2018, Accessed 12 September 2018</ref>   
  
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. {{r|JT_AR_2016|p=49}}
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Japan Tobacco is the former government monopoly and still controls 60 percent of the cigarette market in the country. <ref> [https://www.bloomberg.com/news/articles/2018-05-16/philip-morris-ceo-says-iqos-needs-cultural-rural-spin-for-japan Philip Morris Targets Aging Japan Smokers With Cultural Spin], ''Reuters'', May 2018, Accessed 12 September 2018 </ref> 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. {{r|JT_AR_2016|p=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. <ref> [http://stories.publiceye.ch/tobacco/ The blazing success of Swiss cigarettes in Africa], ''Public Eye'', January 2019, Accessed 10 July 2019 </ref> Japan Tobacco International is planning to cut one quarter of its staff in Geneva over a three-year period as part of restructuring measures. <ref>[https://www.swissinfo.ch/eng/stiff-competition-_japan-tobacco-to-cut-over-250-jobs-in-geneva/45202394 Japan Tobacco to cut over 250 jobs in Geneva], ''Swissinfo'', 3 September 2019, 12 September 2019 </ref> Japan Tobacco International staff members protested outside their Geneva HQ on October 22 against the job cuts. <ref>[https://www.swissinfo.ch/eng/multinationals_japan-tobacco-staff-protest-over-job-cuts/45317158 Japan Tobacco staff complain over Geneva job cuts], ''Swiss Info'', 22 October 2019, Accessed 26 November 2019 </ref> Japan Tobacco announced a plan to establish a global business service center in Manila to serve its markets in the Asia-Pacific region. <ref>[https://manilastandard.net/business/corporate/321875/japan-tobacco-to-set-up-global-center-in-manila.html Japan Tobacco to set up global center in Manila], ''Manila Standard'', 19 April 2020, Accessed 21 May 2020 </ref>
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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. <ref>[https://web.archive.org/web/20210311085136if_/https://the-japan-news.com/news/article/0007136819 JT to move tobacco business headquarters’ functions to Switzerland], ''The Japan News'', Accessed 11 March 2021</ref>
  
 
===Key Executives===
 
===Key Executives===
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! style="font-weight:bold; width:20%" |Name
 
! style="font-weight:bold; width:20%" |Name
 
! style="font-weight:bold; width:20%" |Position
 
! style="font-weight:bold; width:20%" |Position
! style="font-weight:bold; width:40%" |Bio{{r|JT_WEB_OUR-LEADERSHIP}}
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! style="font-weight:bold; width:40%" |Bio
 
|-
 
|-
 
|Eddy Pirard
 
|Eddy Pirard
 
|President and Chief Executive Officer
 
|President and Chief Executive Officer
|Eddy Pirard is a Belgian national, appointed President and Chief Executive Officer in April 2017.
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|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.<ref name="JT_OFFICER"> Japan Tobacco International, [https://www.jt.com/about/officer/ Our leadership], Accessed 31 October 2018 </ref>
 
 
'''A career in tobacco'''
 
 
 
Eddy 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.
 
 
 
'''Previous experience'''
 
 
 
Eddy began his career in consumer marketing at Procter & Gamble in 1986. In 1991, he joined McKinsey & Co, where he specialized in fast moving consumer goods and worked across a wide range of disciplines in both Europe and the US.
 
 
 
Eddy holds a Business degree from Hautes Études Commerciales (HEC) in Belgium and a Master's in Business Administration from Harvard Business School.
 
 
|-
 
|-
 
|Koji Shimayoshi
 
|Koji Shimayoshi
 
|Deputy CEO and Executive Vice President Business Development and Corporate Strategy
 
|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.
+
|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.
  
'''A career in tobacco'''
+
Koji holds a Master’s Degree in Engineering, Metal Science and Technology from Kyoto University.{{r|JT_OFFICER}}
 
 
Koji 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.
 
 
|-
 
|-
 
|Roland Kostantos
 
|Roland Kostantos
 
|Chief Operating and Financial Officer
 
|Chief Operating and Financial Officer
|Roland Kostantos is a Canadian and Greek national. He was appointed Chief Operating and Financial Officer in April 2017.
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|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). {{r|JT_OFFICER}}
 
 
'''A career in tobacco'''
 
 
 
Roland 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, Roland 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, Roland was appointed in 2009 to the position of Senior Vice President Finance, Information Technology and Chief Financial Officer.
 
 
 
'''Previous experience'''
 
 
 
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).
 
 
|-
 
|-
 
|Stefan Fitz
 
|Stefan Fitz
 
|Regional President, Asia Pacific
 
|Regional President, Asia Pacific
|Stefan Fitz is an Austrian national, appointed Regional President Asia Pacific in September 2010.
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|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. {{r|JT_OFFICER}}
 
 
'''A career in tobacco'''
 
 
 
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.
 
 
 
'''Previous experience'''
 
 
 
Stefan 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.
 
 
|-
 
|-
 
|Marchant Kuys
 
|Marchant Kuys
 
|Regional President, Americas
 
|Regional President, Americas
|Marchant Kuys is a South African national, promoted to Executive Committee as Regional President of the Americas in January 2016.
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|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. {{r|JT_OFFICER}}
 
 
'''A career in tobacco'''
 
 
 
Marchant joined us 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.
 
 
 
'''Previous experience'''
 
 
 
Marchant has more than 25 years of experience in Finance and General Management in Southern Africa, Eastern Europe & Asia.
 
 
 
He earned his Chartered Accountant designation after an apprenticeship with Coopers & Lybrand, beginning in 1985.
 
 
 
In 1990 he began his commercial career with finance management positions at Cadbury Schweppes, progressing through the organization before joining Avis Fleet Services as Finance Director in 1998.
 
 
 
Marchant holds a business degree and a post-graduate diploma in Accounting from the University of Port Elizabeth.
 
|-
 
|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.
 
 
 
'''A career in tobacco'''
 
 
 
Jorge joined us 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 for us 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.
 
 
 
'''Previous experience'''
 
 
 
Jorge began his career in 1982 as a marketing trainee at Cadbury in South Africa. Over the next 19 years, he held several increasingly senior positions with many multinationals including Kimberly Clark, SAB Miller and Frito-Lay.
 
 
 
Jorge holds a Bachelor of Commerce degree from the University of the Witwatersrand in South Africa.
 
 
|-
 
|-
 
|Kevin Tomlinson
 
|Kevin Tomlinson
 
|Regional President, Eastern Europe
 
|Regional President, Eastern Europe
|Kevin Tomlinson is a British national, appointed Regional President of Eastern Europe in October 2017.
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|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. {{r|JT_OFFICER}}
 
 
'''A career in tobacco'''
 
 
 
Kevin, a tobacco industry veteran, 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.
 
 
|-
 
|-
 
|Vassilis Vovos
 
|Vassilis Vovos
 
|Regional President, Western Europe
 
|Regional President, Western Europe
|Vassilis Vovos is a Greek national, appointed Regional President of Western Europe in 2014.
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|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. {{r|JT_OFFICER}}
 
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|-
'''A career in tobacco'''
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|Howard Parks
 
+
|Senior Vice President, People and Culture & Chief Compliance Officer
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.
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|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.{{r|JT_OFFICER}}
 
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|-
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.
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|Daniel Torras
 
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|Senior Vice President, Reduced-Risk Products
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.
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|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.{{r|JT_OFFICER}}
 
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|-
From April 2002 he was General Manager of France, until his promotion to the position of Regional President for Central Europe in 2010.
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|Takehiko Tsutsui
 
+
|Senior Vice President, Business Development and Corporate Strategy
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.
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|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.{{r|JT_OFFICER}}
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|-
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|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. {{r|JT_OFFICER}}
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|-
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|Bilgehan Anlas
 +
|Regional President, Middle East, Near East, Africa, Turkey and Worldwide Duty-Free
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|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.{{r|JT_OFFICER}}
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|-
 +
|John Fraser
 +
|Senior Vice President, Legal and Regulatory Affairs
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|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. {{r|JT_OFFICER}}
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|-
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|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.{{r|JT_OFFICER}}
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|-
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|Yves Barbier
 +
|Senior Vice President, Marketing and Sales
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|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.{{r|JT_OFFICER}}
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|-
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|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.{{r|JT_OFFICER}}
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|-
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|Hiroyuki Miki
 +
|Senior Vice President, Research and Development
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|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.{{r|JT_OFFICER}}
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|-
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|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.{{r|JT_OFFICER}}
 
|-
 
|-
 
|}
 
|}
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! style="font-weight:bold; width:20%" |Name
 
! style="font-weight:bold; width:20%" |Name
 
! style="font-weight:bold; width:20%" |Position
 
! style="font-weight:bold; width:20%" |Position
! style="font-weight:bold; width:40%" |Bio {{r|JT_WEB_OUR-LEADERSHIP}}
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! style="font-weight:bold; width:40%" |Bio
 
|-
 
|-
 
|Yasutake Tango
 
|Yasutake Tango
 
|Chairman of the Board
 
|Chairman of the Board
|Mr. 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.
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|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. {{r|JT_WEB_OUR-LEADERSHIP}}
 
 
Mr. 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.
 
 
 
Mr. Tango is a graduate of the University of Tokyo’s Faculty of Law. He is a keen hiker and outdoor enthusiast.
 
 
|-
 
|-
 
|Masamichi Terabatake  
 
|Masamichi Terabatake  
 
|Representative Director and President, Chief Executive Officer
 
|Representative Director and President, Chief Executive Officer
|Mr. 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.
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|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. {{r|JT_WEB_OUR-LEADERSHIP}}
 
 
Returning to Japan in 2002 as Vice President of the Tobacco Business Manufacturing Division, Mr. 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.
 
 
 
Mr. 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.
 
 
 
Mr. Terabatake is a graduate of Kyoto University’s Faculty of Engineering. In his free time he enjoys fishing and playing golf.
 
 
|-
 
|-
 
|Mutsuo Iwai
 
|Mutsuo Iwai
 
|Representative Director and Executive Vice President
 
|Representative Director and Executive Vice President
|Mr. 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.
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|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. {{r|JT_WEB_OUR-LEADERSHIP}}
 
 
Mr. 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.
 
 
 
Mr. 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.
 
 
 
Mr. Iwai is a graduate of the University of Tokyo’s Faculty of Economics. He enjoys cigars and listening to classical music.
 
 
|-
 
|-
 
|Naohiro Minami
 
|Naohiro Minami
 
|Representative Director and Executive Vice President
 
|Representative Director and Executive Vice President
|Mr. 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, Mr. Minami has helped ensure consistent management across the group since JT’s acquisition of Gallaher in 2007.
+
|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. {{r|JT_WEB_OUR-LEADERSHIP}}
 
 
Mr. 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.
 
 
 
Mr. Minami was appointed Executive Vice President in January 2018, and became a Representative Director in March 2018.
 
 
 
Mr. Minami is a graduate of Doshisha University’s Faculty of Law. In his leisure time he enjoys driving and reading.
 
 
|-
 
|-
 
|Kiyohide Hirowatari
 
|Kiyohide Hirowatari
 
|Representative Director and Executive Vice President
 
|Representative Director and Executive Vice President
|Mr. 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.
+
|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. {{r|JT_WEB_OUR-LEADERSHIP}}
 
 
In January 2015, Mr. 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.
 
 
 
Mr. Hirowatari is a graduate of Hitotsubashi University’s Faculty of Law. He enjoys American football and is an avid supporter of college football.
 
 
|-
 
|-
 
|Main Kohda
 
|Main Kohda
 
|Outside Director of the Company
 
|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.
+
|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). {{r|JT_WEB_OUR-LEADERSHIP}}
 
 
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).
 
 
|-
 
|-
 
|Koichiro Watanabe
 
|Koichiro Watanabe
 
|Outside Director of the Company
 
|Outside Director of the Company
|Mr. 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, Mr. Watanabe worked to accelerate the growth of the company’s global business through overseas M&A.
+
|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. {{r|JT_WEB_OUR-LEADERSHIP}}
 
+
|-
In 2010, Mr. 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.
+
|Yukiko Nagashima
 
+
|Member of the Board
Mr. Watanabe was appointed to JT’s Board of Directors as an Outside Director in March 2018.
+
|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.{{r|JT_WEB_OUR-LEADERSHIP}}
 
+
|-
Mr. 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.
+
|Kazuhito Yamashita
 +
|Member of the Board
 +
|Mr. Yamashita joined JT in 1986 and over the course of his career to date has built up considerable experience in tobacco markets globally through postings in Los Angeles, London and Dubai. This front-line experience was crucial to his role in integrating sales activities in the Middle East and Europe following JT's acquisition of RJ Reynolds International (current JTI) in 1999.{{r|JT_WEB_OUR-LEADERSHIP}}
 
|-
 
|-
 
|}
 
|}
Line 220: Line 138:
 
===Investments in Unconsolidated Subsidiaries ("significant" > 20 percent management control):===
 
===Investments in Unconsolidated Subsidiaries ("significant" > 20 percent management control):===
  
<blockquote>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.<ref>https://www.investopedia.com/terms/u/unconsolidated-subsidiary.asp</ref>
+
<blockquote>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.<ref>Investopedia, [https://www.investopedia.com/terms/u/unconsolidated-subsidiary.asp Unconsolidated Subsidiary], Accessed 29 December 2018</ref>
 
</blockquote>
 
</blockquote>
  
Line 227: Line 145:
 
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.{{r|JT_AR_2016|p=97}}
 
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.{{r|JT_AR_2016|p=97}}
  
===List of Significant Subsidiaries===
+
===List of Significant Subsidiaries (JT)===
 +
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.{{r|JT_WEB-COMPANY-OVERVIEW}}
 +
 
{| class="wikitable sortable"
 
{| class="wikitable sortable"
! style="font-weight:bold;" | Subsidiary Name<REF>Japan Tobacco International, [https://www.jt.com/about/outline/ Company Overview, JTI Website], Accessed September 2018</REF>
+
! style="font-weight:bold;" | Subsidiary Name{{r|JT_WEB-COMPANY-OVERVIEW}}
 
! style="font-weight:bold; width: 30%;" |State or Country of Organization
 
! style="font-weight:bold; width: 30%;" |State or Country of Organization
! style="font-weight:bold; width: 30%;" |Holding rate of voting rights (percentage)
+
! style="font-weight:bold; width: 30%;" |Holding rate of voting rights^ (percentage)
 
|-
 
|-
 
| TS Network Co., Ltd.
 
| TS Network Co., Ltd.
Line 302: Line 222:
 
|}
 
|}
  
===2018 Forecast===
+
^ The percentage of an entities voting rights (through equity/shares) held by Japan Tobacco (either directly or indirectly).
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.
+
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.{{r|JT_WEB-COMPANY-OVERVIEW}}
* Enhancing business foundations in traditional tobacco products, such as cigarettes, by investing in brand equity and geographical expansion.
+
 
 +
===Forecast===
 +
Total shipment volume in 2020 is expected to decline circa 3%, due to industry volume contraction. <ref name="JTI_2020">JTI website, [https://www.jti.com/jt-group-2019-financial-results-2020-forecast JT GROUP 2019 FINANCIAL RESULTS & 2020 FORECAST], p. 1, 6 February 2020, Accessed 11 February 2020 </ref> In 2019, total shipment volume declined 0.3% due to industry volume contraction. Excluding acquisitions and favorable inventory movements, total shipment volume decreased 1.9%. Quarterly market share gains continued across many geographies, most notably in Cambodia, Canada, Czech Republic, Iran, Kazakhstan, Malaysia, Poland, Taiwan and the UK.{{r|JTI_2020|p=5}}
 +
Japan Tobacco Inc cut its annual profit outlook and now expects a full-year operating profit of 505 billion yen (USD 4.65 billion) compared with a previous forecast of 518 billion yen. For the third quarter, operating profit fell 26 percent year-on-year to 129 billion yen. <ref>[https://in.reuters.com/article/japan-tobacco-outlook/japan-tobacco-cuts-profit-outlook-on-weakness-in-reduced-risk-cigarettes-idINL3N27G2AH Japan Tobacco cuts profit outlook on weakness in reduced-risk cigarettes], ''Reuters'', 31 October 2019, Accessed 26 November 2019 </ref>
 +
 
 +
===COVID-19 response===
 +
====Azerbaijan====
 +
The Azerbaijan Industrial Corporation is working with Japan Tobacco International to increase tobacco production in the Oguz district. <ref>[https://www.trend.az/business/economy/3241194.html В Азербайджане планируется увеличить производство табака], ''Trend'', 18 May 2020, 18 June 2020 </ref>
 +
 
 +
====Bangladesh====
 +
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. <ref>[http://www.protidinersangbad.com/whole-country/215312/%E0%A6%A4%E0%A6%BE%E0%A6%AE%E0%A6%BE%E0%A6%95-%E0%A6%AA%E0%A7%8D%E0%A6%B0%E0%A6%A4%E0%A6%BF%E0%A6%B7%E0%A7%8D%E0%A6%A0%E0%A6%BE%E0%A6%A8%E0%A6%95%E0%A7%87-%E0%A6%B8%E0%A6%B9%E0%A6%BE%E0%A7%9F%E0%A6%A4%E0%A6%BE-%E0%A6%95%E0%A6%B0%E0%A6%BE%E0%A7%9F-%E0%A6%B6%E0%A6%BF%E0%A6%B2%E0%A7%8D%E0%A6%AA-%E0%A6%AE%E0%A6%A8%E0%A7%8D%E0%A6%A4%E0%A7%8D%E0%A6%B0%E0%A6%A3%E0%A6%BE%E0%A6%B2%E0%A7%9F%E0%A7%87%E0%A6%B0-%E0%A6%AA%E0%A7%8D%E0%A6%B0%E0%A6%A4%E0%A6%BF-%E0%A6%95%E0%A7%8D%E0%A6%B7%E0%A7%8B%E0%A6%AD তামাক প্রতিষ্ঠানকে সহায়তা করায় শিল্প মন্ত্রণালয়ের প্রতি ক্ষোভ], ''protidinersangbad'', 8 May 2020, Accessed 19 May 2020</ref>
 +
In response to COVID-19, JTI Foundation provided food, hygiene products and protective gear to different parts of Bangladesh. <ref> [https://www.thedailystar.net/online/news/jti-bangladesh-continues-invest-govt-efforts-covid-19-response-community-support-1905154 https://www.thedailystar.net/online/news/jti-bangladesh-continues-invest-govt-efforts-covid-19-response-community-support-1905154], ''The Daily Star'', 22 May 2020, Accessed 18 June 2020 </ref>
 +
 
 +
====Malaysia====
 +
JTI Malaysia delivered RM 150,000 worth of personal protective equipment to Polis DiRaja Malaysia. <ref>[https://www.malaysiakini.com/news/539545 Japan Tobacco International Malaysia contributes RM150,000 worth of PPE to police frontliners], Malaysia Kini, 21 August 2020, Accessed 6 October 2020 </ref>
 +
 
 +
====The Philippines====
 +
Japan Tobacco International President John Freda donated 20,000 face masks for hospitals in Batangas, Philippines. <ref>[https://www.pna.gov.ph/articles/1099172 Ecozone locators lauded for helping Covid-19 front-liners], ''PNA'', 7 April 2020, Accessed 19 May 2020 </ref>
 +
 
 +
====Turkey====
 +
Japan Tobacco International Turkey was among those companies who participated in the ""We Are Enough With Us"" campaign launched by Turkey's AKP President Tayyip Erdoğan. Tobacco companies in Turkey are forbidden to donate to political campaigns. <ref> [http://www.samanyoluhaber.com/tutun-sirketleri-yasagi-boyle-deldi-jti-erdogan-in-kampanyasina-yuklu-bagis-yapti-haberi/1345723/ Tütün şirketleri yasağı böyle deldi: JTI Erdoğan’ın kampanyasına yüklü bağış yaptı], ''samanyoluhaber'', Accessed 21 May 2020 </ref>
  
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
+
====United Kingdom====
brands will grow volume by approximately 2 percent, keeping the GFB mix in total volume above 60 percent.
+
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. <ref>[https://www.talkingretail.com/news/industry-news/nfrn-hardship-fund-hits-200000-mark-28-04-2020/ NFRN Hardship Fund hits £200,000 mark], ''Talking Retail'', 28 April 2020, Accessed 21 May 2020 </ref>
  
 
==Profitability==
 
==Profitability==
 +
In Q1 of 2021, the company’s core revenue of their international tobacco business increased 14.6 percent to USD 2,9 billion (2,866 million) as compared to previous year. The total shipment volume of tobacco increased by 5.8 percent from Q1 in 2020 to 104.1 billion units. Total shipment grew in France, Italy, Germany, UK (where specifically cigarette shipment slightly decreased), Romania, Russia, Iran, Taiwan and Turkey. <ref> Japan Tobacco International, [https://web.archive.org/save/https://www.jti.com/sites/default/files/press-releases/documents/2021/jt-group-2021-first-quarter-financial-results.pdf 2021 First Quarter Results], 30 April 2021, Accessed 10 May 2021 </ref>
 +
 
===Revenue===
 
===Revenue===
 
 
{| class="wikitable"
 
{| class="wikitable"
 
! Fiscal year  
 
! Fiscal year  
''in Billions of yen''
+
in Billions of YEN
! 2017 (IFRS){{r|JT_AR_2017|p=45}}
+
! 2020 <ref>Japan Tobacco International, [https://www.jti.com/sites/default/files/press-releases/documents/2021/jt-group-2020-financial-results-2021-forecast-v1.pdf 2020 Earnings Report], 9 February 2021, Accessed 20 April 2021</ref>
! 2016 (IFRS){{r|JT_AR_2017|p=45}}
+
! 2019 {{r|JTI_2020|p=8}}
! 2015 (IFRS){{r|JT_AR_2017|p=45}}
+
! 2018  IFRS <ref name="JTI_2018AR"> Japan Tobacco International website, [https://www.jti.com/sites/default/files/global-files/documents/jti-annual-reports/jt-annual-report-2018.pdf Annual Report 2018 Year ended December 31, 2018], March 2019, p. 3, Accessed 19 July 2019 </ref>
! 2014 (Jan-Dec){{r|JT_AR_2017|p=45}}
+
! 2017 IFRS{{r|JTI_2018AR|}}
! 2013 (IFRS){{r|JT_AR_2017|p=45}}
+
! 2016 IFRS{{r|JTI_2018AR|}}
 +
! 2015 IFRS{{r|JTI_2018AR|}}
 +
! 2014
 +
(Jan-Dec){{r|JTI_2018AR|}}
 
|-
 
|-
 
| Net Revenue
 
| Net Revenue
| 1,237.6
+
| 2,092.6
| 1,199.2
+
| 2,175.6
| 1,317.2
+
| 2,216.0
| 1,328.0
+
| 2,139.7
| 1,270.0
+
| 2,143.3
 +
| 2,252.9
 +
| 2,259.2
 +
|-
 +
|Net Revenue - International Tobacco
 +
|1,172
 +
|1,300.0
 +
|1,312.3
 +
|1,237.6
 +
|1,199.2
 +
|1,317.2
 +
|1,328.0
 
|-
 
|-
| Reported Profit
+
| Net Revenue - Domestic Tobacco
| 325.6
+
|515.7
| 301.8
+
|568.9
| 346.9
+
|621.4
| 379.5
+
|626.8
| 376.4
+
|684.2
 +
|677.3
 +
|687.4
 
|}
 
|}
  
===Profits per Segment===
+
===Acquisitions===
 
 
 
 
  
{| class="wikitable sortable"
+
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.<ref>[https://www.reuters.com/article/us-akij-m-a-japan-tobacco/japan-tobacco-buying-bangladesh-akijs-tobacco-business-for-1-5-billion-idUSKBN1KR0O1 Japan Tobacco buying Bangladesh Akij's tobacco business for $1.5 billion], ''Reuters'', August 2018, Accessed 8 September 2018</ref> 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.<REF>Japan Tobacco International, [https://www.jti.com/our-views/newsroom/jt-group-agrees-acquire-tobacco-business-akij-group-bangladesh JT Group Agrees to Acquire Tobacco Business of Akij Group in Bangladesh], Accessed 12 September 2018</REF> 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.<ref> [https://www.thedailystar.net/business/news/japan-tobacco-closes-147b-acquisition-akij-venture-1667071 Japan Tobacco closes $1.47b acquisition of Akij venture], ''The Daily Star'', 30 November 2018, Accessed 30 December 2018</ref>
|-
 
! International Tobacco !! 2013{{r|JT_AR_2015|p=4}} !! 2014{{r|JT_AR_2015|p=4}} !! 2015{{r|JT_AR_2015|p=4}} !! 2016{{r|JT_AR_2017|p=12}} !! 2017{{r|JT_AR_2017|p=12}}
 
|-
 
| Total revenue ||  1,270.0 || 1,328.0|| 1,317.2|| 1,229,470 || 1,269,042
 
|-
 
| Adjusted operating profit || 410.8 || 447.1 || 394.4 || 336,227 ||  351,302
 
|}
 
  
===Acquisitions===
 
 
{| class="wikitable"
 
{| class="wikitable"
! Recent acquisitions <ref>Japan Tobacco International: To ‘be the most successful and respected tobacco company in the world’
+
! Recent acquisitions <ref>Eckhart, J., & Prastyani, A.W. (2016). [https://www.tandfonline.com/doi/ref/10.1080/17441692.2016.1273368?scroll=top Japan Tobacco International: To ‘be the most successful and respected tobacco company in the world’, ''An International Journal for Research, Policy and Practice''], pp. 281-299, Accessed 12 December 2018 </ref>  
Ross MacKenzie, Jappe Eckhardt & Ade Widyati Prastyani PUBLISHED ONLINE:
 
31 January 2017 https://doi.org/10.1080/17441692.2016.1273368</ref>
 
 
! Acquired Organization Name
 
! Acquired Organization Name
 
! Acquiring Organization Name
 
! Acquiring Organization Name
Line 365: Line 310:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2017
 
| 2017
| 936 milion<ref>[https://www.ft.com/content/e0cc418c-8723-11e7-8bb1-5ba57d47eff7 Japan Tobacco snaps up Philippines’ Mighty for $1bn], ''FT'', August 22, 2017, Accessed September 2018</ref>
+
| 936 million<ref name="PMI_FT1">[https://www.ft.com/content/e0cc418c-8723-11e7-8bb1-5ba57d47eff7 Japan Tobacco snaps up Philippines’ Mighty for $1bn], ''FT'', August 22, 2017, Accessed 14 September 2018</ref>
 
|-
 
|-
 
| Karyadibya Mahardhika (Indonesia) acquired by Japan Tobacco International
 
| Karyadibya Mahardhika (Indonesia) acquired by Japan Tobacco International
Line 371: Line 316:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2017
 
| 2017
| USD 1 billion <ref>[https://www.ft.com/content/e0cc418c-8723-11e7-8bb1-5ba57d47eff7 Japan Tobacco snaps up Philippines’ Mighty for $1bn], ''FT'', August 22, 2017, Accessed September 2018</ref>
+
| USD 1 billion {{r|PMI_FT1}}
 
|-
 
|-
| La Tabacarela (Dominican Republic) acquired by Japan Tobacco International<ref>[https://asia.nikkei.com/Business/JT-buys-half-of-Dominican-producer-in-Latin-American-push JT buys half of Dominican producer in Latin American push], ''Nikkei Asian Review'', March 22, 2016, Accessed September 2018</ref>
+
| La Tabacarela (Dominican Republic) acquired by Japan Tobacco International<ref>[https://asia.nikkei.com/Business/JT-buys-half-of-Dominican-producer-in-Latin-American-push JT buys half of Dominican producer in Latin American push], ''Nikkei Asian Review'', 22 March 2016, Accessed 15 September 2018</ref>
 
| La Tabacarela
 
| La Tabacarela
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2016
 
| 2016
| -
+
| NA
 
|-
 
|-
| Fluxo Brasil Distribuidora do Produtos (Brazil) acquired by Japan Tobacco International<ref>[https://asia.nikkei.com/Business/Japan-Tobacco-buys-Brazilian-cigarette-distributor Japan Tobacco buys Brazilian cigarette distributor], ''Nikkei Asian Review'', February 12, 2016, Accessed September 2018</ref>
+
| Fluxo Brasil Distribuidora do Produtos (Brazil) acquired by Japan Tobacco International<ref>[https://asia.nikkei.com/Business/Japan-Tobacco-buys-Brazilian-cigarette-distributor Japan Tobacco buys Brazilian cigarette distributor], ''Nikkei Asian Review'', 12 February 2016, Accessed 14 September 2018</ref>
 
| Fluxo Brasil Distribuidora do Produtos
 
| Fluxo Brasil Distribuidora do Produtos
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2016
 
| 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.) (U.S.) acquired by Japan Tobacco International
Line 389: Line 334:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2016
 
| 2016
| YEN 600 billion <ref>[https://asia.nikkei.com/Business/Japan-Tobacco-lights-up-industry-with-new-purchase Japan Tobacco lights up industry with new purchase], ''Nikkei Asian Review'', October 30, 2015, Accessed September 2018</ref>
+
| YEN 600 billion <ref>[https://asia.nikkei.com/Business/Japan-Tobacco-lights-up-industry-with-new-purchase Japan Tobacco lights up industry with new purchase], ''Nikkei Asian Review'', October 30, 2015, Accessed 19 September 2018</ref>
 
|-
 
|-
 
| Logic Technology Development LLC (U.S.) acquired by Japan Tobacco International
 
| Logic Technology Development LLC (U.S.) acquired by Japan Tobacco International
Line 395: Line 340:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2015
 
| 2015
| -
+
| NA
 
|-
 
|-
 
| Arian Tobacco Industry (Iran) acquired by Japan Tobacco International
 
| Arian Tobacco Industry (Iran) acquired by Japan Tobacco International
Line 401: Line 346:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2015
 
| 2015
| "undisclosed amount"<ref>[https://www.ft.com/content/626e5c5a-7576-11e5-a95a-27d368e1ddf7 Japan Tobacco buys Iranian cigarette maker to boost dominance], ''FT'', October 18, 2015, Accessed September 2018</ref>
+
| "undisclosed amount"<ref>[https://www.ft.com/content/626e5c5a-7576-11e5-a95a-27d368e1ddf7 Japan Tobacco buys Iranian cigarette maker to boost dominance], ''FT'', 18 October 2015, Accessed 19 September 2018</ref>
 
|-
 
|-
 
| Ploom, Inc. (U.S.) acquired by Japan Tobacco International
 
| Ploom, Inc. (U.S.) acquired by Japan Tobacco International
Line 407: Line 352:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2015
 
| 2015
| "undisclosed amount"<ref>[https://www.businesswire.com/news/home/20150216005085/en/JTI-Acquires-%E2%80%9CPloom%E2%80%9D-Intellectual-Property-Rights-Ploom JTI Acquires “Ploom” Intellectual Property Rights from Ploom, Inc.], ''Business Wire'', Feburary 16, 2016, Accessed September 2018</ref>
+
| "undisclosed amount"<ref>[https://www.businesswire.com/news/home/20150216005085/en/JTI-Acquires-%E2%80%9CPloom%E2%80%9D-Intellectual-Property-Rights-Ploom JTI Acquires “Ploom” Intellectual Property Rights from Ploom, Inc.], ''Business Wire'', 16 February 2016, Accessed 21 September 2018</ref>
 
|-
 
|-
 
| Zandera Ltd. (UK) acquired by Japan Tobacco International
 
| Zandera Ltd. (UK) acquired by Japan Tobacco International
Line 419: Line 364:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2013
 
| 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 (Egypt) acquired by Japan Tobacco International
Line 425: Line 370:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2013
 
| 2013
| -
+
| NA
 
|-
 
|-
 
| Gryson NV (Belgium) acquired by Japan Tobacco International
 
| Gryson NV (Belgium) acquired by Japan Tobacco International
Line 431: Line 376:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2012
 
| 2012
| -
+
| NA
 
|-
 
|-
 
| Haggar Cigarette & Tobacco Factory Ltd. (North Sudan) acquired by Japan Tobacco International
 
| Haggar Cigarette & Tobacco Factory Ltd. (North Sudan) acquired by Japan Tobacco International
Line 437: Line 382:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2011
 
| 2011
| -
+
| NA
 
|-
 
|-
 
| Haggar Cigarette & Tobacco Factory Ltd. (South Sudan) acquired by Japan Tobacco International
 
| Haggar Cigarette & Tobacco Factory Ltd. (South Sudan) acquired by Japan Tobacco International
Line 443: Line 388:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2011
 
| 2011
| -
+
| NA
 
|-
 
|-
 
| Tribac Leaf Limited (UK) acquired by Japan Tobacco International
 
| Tribac Leaf Limited (UK) acquired by Japan Tobacco International
Line 449: Line 394:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2009
 
| 2009
| -
+
| NA
 
|-
 
|-
 
| Kannenberg & Cia. Ltda. (Brazil) acquired by Japan Tobacco International
 
| Kannenberg & Cia. Ltda. (Brazil) acquired by Japan Tobacco International
Line 455: Line 400:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2009
 
| 2009
| -
+
| NA
 
|-
 
|-
 
| Barker, Hall & Cotton Tabacos Ltds. (Brazil) acquired by Japan Tobacco International
 
| Barker, Hall & Cotton Tabacos Ltds. (Brazil) acquired by Japan Tobacco International
Line 461: Line 406:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2009
 
| 2009
| -
+
| NA
 
|-
 
|-
 
| Gallaher Group Plc. (remaining shares) (UK) acquired by Japan Tobacco International
 
| Gallaher Group Plc. (remaining shares) (UK) acquired by Japan Tobacco International
Line 467: Line 412:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2007
 
| 2007
| -
+
| NA
 
|-
 
|-
 
| AD Duvanska Industrija Senta (Serbia) acquired by Japan Tobacco International
 
| AD Duvanska Industrija Senta (Serbia) acquired by Japan Tobacco International
Line 473: Line 418:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2007
 
| 2007
| -
+
| NA
 
|-
 
|-
 
| CRES Nev Ltd.a (Russia) acquired by Japan Tobacco International
 
| CRES Nev Ltd.a (Russia) acquired by Japan Tobacco International
Line 479: Line 424:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2005
 
| 2005
| -
+
| NA
 
|-
 
|-
 
| Austria Tabaka (Austria) acquired by Japan Tobacco International
 
| Austria Tabaka (Austria) acquired by Japan Tobacco International
Line 485: Line 430:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2001
 
| 2001
| -
+
| NA
 
|-
 
|-
 
| Liggett-Ducata (Russia) acquired by Japan Tobacco International
 
| Liggett-Ducata (Russia) acquired by Japan Tobacco International
Line 491: Line 436:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 2000
 
| 2000
| -
+
| NA
 
|-
 
|-
 
| RJR Nabisco (non-U.S. operations) (U.S.) acquired by Japan Tobacco International
 
| RJR Nabisco (non-U.S. operations) (U.S.) acquired by Japan Tobacco International
Line 497: Line 442:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 1999
 
| 1999
| -
+
| NA
 
|-
 
|-
 
| Tanzania Cigarette Company (Tanzania) acquired by Japan Tobacco International
 
| Tanzania Cigarette Company (Tanzania) acquired by Japan Tobacco International
Line 503: Line 448:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 1995
 
| 1995
| -
+
| NA
 
|-
 
|-
| Yelets Tobaccob (Russia) acquired by Japan Tobacco International
+
| Yelets Tobacco (Russia) acquired by Japan Tobacco International
| Yelets Tobaccob
+
| Yelets Tobacco
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 1994
 
| 1994
| -
+
| NA
 
|-
 
|-
| Manchester Tobaccob (UK) acquired by Japan Tobacco International
+
| Manchester Tobacco (UK) acquired by Japan Tobacco International
| Manchester Tobaccob
+
| Manchester Tobacco
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 1992
 
| 1992
| -
+
| NA
 
|-
 
|-
 
| AS-Petrob (Russia) acquired by Japan Tobacco International
 
| AS-Petrob (Russia) acquired by Japan Tobacco International
Line 521: Line 466:
 
| Japan Tobacco International
 
| Japan Tobacco International
 
| 1992
 
| 1992
| -
+
| NA
 
|}
 
|}
  
 
===Investments===
 
===Investments===
  
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.<ref>[https://www.reuters.com/article/us-akij-m-a-japan-tobacco/japan-tobacco-buying-bangladesh-akijs-tobacco-business-for-1-5-billion-idUSKBN1KR0O1 Japan Tobacco buying Bangladesh Akij's tobacco business for $1.5 billion], ''Reuters'', August 2018, Accessed September 2018</ref> Akij holds 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-onyear. This transaction will add around 17 billion units to the JT Group’s overall volume.<REF>Japan Tobacco International, [https://www.jti.com/our-views/newsroom/jt-group-agrees-acquire-tobacco-business-akij-group-bangladesh, JT Group Agrees to Acquire Tobacco Business of Akij Group in Bangladesh], Accessed September 2018</REF> Earlier in the month, Japan Tobacco International purchased Indonesia’s PT Karyadibya Mahardhika for USD677 million and <ref>[https://www.japantimes.co.jp/news/2017/08/23/business/corporate-business/japan-tobacco-targets-emerging-markets-fewer-health-controls-rivals-go-high-tech/#.W8jWoRMzbOQ Japan Tobacco targets emerging markets with fewer health controls as rivals go high-tech], ''Japan Times'', August 2017, Accessed September 2018 </REF> 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. <ref>[https://asia.nikkei.com/Business/Japan-Tobacco-staking-growth-on-emerging-markets Japan Tobacco staking growth on emerging markets], ''Nikkei Asian Review'', August 2018, Accessed September 2018 </REF>
+
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. <ref> Tobacco Business website, [https://tobaccobusiness.com/japan-tobacco-international-sells-its-shares-of-ktg/ Japan Tobacco International Sells Its Shares of KT&G], 10 December 2019, Accessed 30 December 2018</ref>
 +
 
 +
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.<ref>[https://www.reuters.com/article/us-akij-m-a-japan-tobacco/japan-tobacco-buying-bangladesh-akijs-tobacco-business-for-1-5-billion-idUSKBN1KR0O1 Japan Tobacco buying Bangladesh Akij's tobacco business for $1.5 billion], ''Reuters'', August 2018, Accessed 8 September 2018</ref> 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.<REF>Japan Tobacco International, [https://www.jti.com/our-views/newsroom/jt-group-agrees-acquire-tobacco-business-akij-group-bangladesh JT Group Agrees to Acquire Tobacco Business of Akij Group in Bangladesh], Accessed 12 September 2018</REF> 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.<ref> [https://www.thedailystar.net/business/news/japan-tobacco-closes-147b-acquisition-akij-venture-1667071 Japan Tobacco closes $1.47b acquisition of Akij venture], ''The Daily Star'', 30 November 2018, Accessed 30 December 2018</ref>
 +
 
 +
In August 2017, Japan Tobacco International purchased Indonesia’s PT Karyadibya Mahardhika for USD677 million and <ref>[https://www.japantimes.co.jp/news/2017/08/23/business/corporate-business/japan-tobacco-targets-emerging-markets-fewer-health-controls-rivals-go-high-tech/#.W8jWoRMzbOQ Japan Tobacco targets emerging markets with fewer health controls as rivals go high-tech], ''Japan Times'', 23 August 2017, Accessed 14 September 2018 </REF> 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. <ref>[https://asia.nikkei.com/Business/Japan-Tobacco-staking-growth-on-emerging-markets Japan Tobacco staking growth on emerging markets], ''Nikkei Asian Review'', August 2018, Accessed 12 September 2018 </REF>
 +
 
 +
===Shareholders===
 +
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. <ref>[https://www.granthamjournal.co.uk/news/county-council-invests-45-million-of-its-pension-fund-in-tobacco-companies-9058351/ Lincolnshire County Council invests £45 million from pension fund in tobacco companies], ''Grantham Reporter'', 5 January 2019, Accessed 25 January 2019 </ref>
  
 
===Market Share===
 
===Market Share===
In 2017, Japan Tobacco International's nine "iconic" brands accounted accounted for more than 72 percent of the company's, amounting to approximately 14 percent global market share.{{r|JT_WEB_OUR-BRANDS}}
+
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.{{r|JT_WEB_OUR-BRANDS}}
  
According to Euromonitor International data, Japan Tobacco had an 8.4 percent share of the global cigarette market in 2016. <ref>[https://www.businesslive.co.za/bd/companies/2018-01-17-new-markets-call-to-japan-tobacco/ New markets call to Japan Tobacco], ''Business Day'', January 2018, Accessed September 2018 </REF>
+
According to Euromonitor International data, Japan Tobacco had an 8.4 percent share of the global cigarette market in 2016. <ref>[https://www.businesslive.co.za/bd/companies/2018-01-17-new-markets-call-to-japan-tobacco/ New markets call to Japan Tobacco], ''Business Day'', 17 January 2018, Accessed 25 September 2018 </REF>
  
 
===Emerging Markets===
 
===Emerging Markets===
Mutsuo Iwai, Executive Vice President and President of the Tobacco Business said in August 2018 that with the recent investment into Akij, the organisation 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."<ref>[https://www.japantimes.co.jp/news/2017/08/23/business/corporate-business/japan-tobacco-targets-emerging-markets-fewer-health-controls-rivals-go-high-tech/#.W8jWoRMzbOQ Japan Tobacco targets emerging markets with fewer health controls as rivals go high-tech], ''Japan Times'', August 2017, Accessed September 2018 </REF> 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." <ref>[https://www.japantimes.co.jp/news/2017/08/23/business/corporate-business/japan-tobacco-targets-emerging-markets-fewer-health-controls-rivals-go-high-tech/#.W8jWoRMzbOQ Japan Tobacco targets emerging markets with fewer health controls as rivals go high-tech], ''Japan Times'', August 2017, Accessed September 2018 </REF>
+
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." <ref name="JTI_JTarticle">Japan Tobacco International, [https://www.jti.com/our-views/newsroom/jt-group-agrees-acquire-tobacco-business-akij-group-bangladesh JT Group Agrees to Acquire Tobacco Business of Akij Group in Bangladesh], Accessed 12 September 2018 </REF>
 +
 
 +
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,”<ref> [https://www.thedailystar.net/business/news/japan-tobacco-closes-147b-acquisition-akij-venture-1667071 Japan Tobacco closes $1.47b acquisition of Akij venture], ''The Daily Star'', 30 November 2018, Accessed 30 December 2018</ref>
 +
 
 +
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."{{r|JTI_JTarticle}}
 +
 
 +
 
 +
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." <ref> Tobacco Industry Watch, [https://tobaccowatch.seatca.org/index.php/2018/02/16/jti-targets-the-poor-and-fights-tobacco-control-in-asean-region/ JTI targets the poor and fights tobacco control in ASEAN region], 16 February 2018, Accessed 23 December 2018 </ref>
  
 
===Factory Openings and Closures===
 
===Factory Openings and Closures===
 +
Japan Tobacco International plans to merge Donskoy Tabak JSC with JTI Russia. <ref>[https://web.archive.org/save/https://www.google.com/url?q=https://gorodn.ru/online_news/35418/&sa=D&source=editors&ust=1632141189339000&usg=AOvVaw11CPCYP1yAiMby8vUYte2i «Донской табак» объединят с «Дж.Т.И. Россия»], Gorodn, 6 August 2021, Accessed 20 September 2021 </ref>
 +
 +
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. <ref>[https://seenews.com/news/tobacco-manufacturer-jti-to-invest-60-mln-euro-in-romanian-factory-736447 Tobacco manufacturer JTI to invest 60 mln euro in Romanian factory], ''See News'', 31 March 2021, Accessed 21 April 2021 </ref>
 +
 +
In 2020, Tabak-invest LLC began production of Winston XS Fresh Mix cigarettes in Belarus under the Japan Tobacco International license. <ref>[https://primepress.by/news/kompanii/v_belarusi_nachalos_proizvodstvo_sigaret_winston_xs_fresh_mix_po_litsenzii_jti-18722/ В Беларуси началось производство сигарет Winston XS Fresh Mix по лицензии JTI], ''Prime Press'', 20 March 2020, Accessed 21 April 2020 </ref>
 +
 +
Japan Tobacco International plans to launch a global business services centre in Poland that would hire more than 850 people. <ref>[https://www.reuters.com/article/poland-factors/poland-factors-to-watch-nov-5-idUSL8N27L1OJ Poland - Factors to Watch Nov 5], 5 November 2019, Accessed 26 November 2019 </ref> 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. <ref>[https://abnews.ru/2019/11/27/japan-tobacco-international-otkroet-v-peterburge-globalnyj-czentr-podderzhki-biznesa/ Japan Tobacco International откроет в Петербурге глобальный центр поддержки бизнеса], ''AB News'', 11 November 2019, Accessed 27 November 2019 </ref>
 +
 +
Japan Tobacco has 35 international and six Japanese domestic factories. {{r|JTI_Sustainability|p=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. <ref> [http://www.ekathimerini.com/234019/article/ekathimerini/business/sekap-plant-starts-making-jti-tobacco-products SEKAP plant starts making JTI tobacco products], ''Ekathimerini.com'', October 2018, Accessed 15 December 2018</ref> Japan Tobacco International has commenced production of its Winston brand for Greece and another nine countries at the once state-owned Sekap facility. <ref>[https://www.tornosnews.gr/en/tourism-businesses/new-investments/37380-jti-to-produce-winston-cigarette-brand-at-sekap-facility-in-northeastern-greece.html JTI to produce Winston cigarette brand at Sekap facility in northeastern Greece], ''Tornos News'', 30 October 2019, Accessed 26 November 2019 </ref>
 +
 +
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.<ref> [https://www.irishtimes.com/business/retail-and-services/benson-hedges-owner-boosts-irish-profit-to-34m-1.3716171 Benson & Hedges owner boosts Irish profit to €34m], ''The Irish Times'', 30 November 2018, Accessed 15 December 2018</ref>
  
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. <ref>[https://www.ft.com/content/ec286170-4e44-11e4-bfda-00144feab7de Japan Tobacco set to close last UK plant], ''Financial Times'', October 2014, Accessed September 2018 </REF>
+
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. <ref>[https://www.ft.com/content/ec286170-4e44-11e4-bfda-00144feab7de Japan Tobacco set to close last UK plant], ''Financial Times'', October 2014, Accessed 19 September 2018 </REF>
  
 
===Dividends===
 
===Dividends===
 +
In July 2019, Japan Tobacco International announced the interim dividend of JPY 77 per share. <ref name=“JTI_HY_2019”> JTI website, [https://www.jti.com/our-views/newsroom/jt-group-2019-second-quarter-financial-results JT Group 2019 second quarter financial results], 31 July 2019, Accessed 9 August 2019 </ref>
 +
 +
==Products==
 +
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.{{r|JTI_Sustainability|p=7}} In July 2019, Japan Tobacco International launched PLOOM TECH in Korea. <ref> [http://www.koreatimes.co.kr/www/tech/2019/07/694_272145.html JTI launches PLOOM TECH in Korea], ''Korea Times'', 11 July 2019, Accessed 9 August 2019 </ref> Japan Tobacco International in Korea said Ploom Tech will be sold at duty-free stores Lotte and Shilla Duty Free from mid-September. <ref>[http://www.koreaherald.com/view.php?ud=20190911000683 JTI’s Ploom Tech enters duty-free stores], ''Korea Herald'', 11 September 2019, Accessed 10 October 2019 </ref>
  
Table below provides review of dividend payment history since 2014: <ref> Japan Tobacco International,[https://www.jt.com/investors/shareholders/ For Shareholders], March 2018, Accessed September 2018 </ref>
+
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". {{r|JTI_Sustainability|p=7}}
  
{| class="wikitable"
+
At the end of 2018, our Reduced-Risk Product portfolio was present in 13 countries with a choice of tobacco
! Dividend per share
+
vapor products (T-Vapor) and e-cigarettes (E-Vapor). {{r|JTI_Sustainability|p=56}}
''in Millions YEN''
 
! 2018  
 
! 2017
 
! 2016
 
! 2015
 
! 2014
 
|-
 
| 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==
 
 
===Key Portfolio===
 
===Key Portfolio===
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.{{r|JT_AR_2017|p=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. {{r|JT_WEB_OUR-BRANDS}}
+
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.{{r|JT_AR_2017|p=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. {{r|JT_WEB_OUR-BRANDS}} In a press release, Japan Tobacco announced that it would officially launch Ploom X on August 17, 2021 in stores and online. <ref>[http://web.archive.org/save/https://www.vapingpost.com/2021/07/28/japan-tobacco-launches-ploom-x-heated-tobacco-products/ Japan Tobacco Launches Ploom X Heated Tobacco Products], ''Vaping Post'', 28 July 2021, Accessed 2 August 2021 </ref>
 +
 
 +
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.{{r|JT_AR_2017|p=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. <ref> Japan Tobacco International, [https://www.jt.com/media/news/2019/0704_01.html JT expands Ploom S sales area nationwide from August 5], Accessed 10 July 2019 </ref>
  
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.{{r|JT_AR_2017|p=2}}
+
Japan Tobacco International  announced on that it will enter Portugal with its ‘e-cigarettes’ and aims to operate nationwide by 2020. <ref>[https://www.theportugalnews.com/news/japan-tobacco-to-enter-portuguese-market/51818 Japan tobacco to enter Portuguese market], ''The Portugal News'', 1 November 2019, Accessed 26 November 2019 </ref> Japan Tobacco International launched its Logic Compact e-cigarette in Spain in November 2019 after being available in 19 countries. <ref>[https://www.europapress.es/economia/noticia-jti-lanza-espana-cigarrillo-electronico-logic-20191024115449.html JTI lanza en España su cigarrillo electrónico Logic], ''Europa Press'', 24 October 2019, Accessed 26 November 2019 </ref> The company halved the price of starter kits for its Ploom S reduced-risk cigarettes. <ref>[https://japantoday.com/category/business/japan-tobacco-halves-price-of-reduced-risk-cigarette-starter-kit Japan Tobacco halves price of reduced-risk cigarette starter kit], Japan Today, ''14 November 2019'', Accessed 26 November 2019 </ref> Japan Tobacco International’s Logic Compact electronic vaporizer will be available in 27 countries by the end of 2019. <ref>[https://open4business.com.ua/japan-tobacco-international-brings-logic-compact-electronic-vaporizer-product-to-ukrainian-market/ JAPAN TOBACCO INTERNATIONAL BRINGS LOGIC COMPACT ELECTRONIC VAPORIZER PRODUCT TO UKRAINIAN MARKET],''open4business'', 29 November 2019, Accessed 15 December 2019</ref>
  
 
{| class="wikitable"
 
{| class="wikitable"
Line 608: Line 553:
 
|-
 
|-
 
|Natural American Spirit
 
|Natural American Spirit
|Promoting ecological agricultural practices and responsible marketing is a brand priority for this premium tobacco product.
+
|Promotes ecological agricultural practices and responsible marketing.
 
|-
 
|-
 
|Sobranie
 
|Sobranie
Line 620: Line 565:
 
|-
 
|-
 
|}
 
|}
 +
 +
===Menthol tobacco===
 +
Sales data shows that the four replacement brands introduced by Japan Tobacco following the European Union's prohibition on menthol cigarettes had scooped up more than 5 per cent of the market by the middle of June. The brands are among those now being scrutinised as part of an investigation into the industry by the Health Service Executive, which is examining whether tobacco companies have acted legally in relation to the menthol ban. <ref>[https://www.irishtimes.com/business/health-pharma/tobacco-giant-s-menthol-ban-substitutes-take-5-share-of-irish-market-1.4302742 Tobacco giant’s menthol-ban substitutes take 5% share of Irish market], ''Irish Times'', 13 July 2020, 20 July 2020</ref> Despite the 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. <ref> Vaping Post, [https://www.vapingpost.com/2020/07/27/uk-phe-to-investigate-new-dual-range-replacing-menthol-tobacco/ K: PHE to Investigate ‘New Dual’ Range Replacing Menthol Tobacco], 27 July 2020, Accessed 24 August 2020</ref>
 +
 +
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." <ref>[http://web.archive.org/save/https://www.dailymail.co.uk/news/article-9824439/Tobacco-giant-sold-1billion-worth-menthol-tasting-cigarettes-ban.html Tobacco giant is STILL making a mint after selling £1billion worth of menthol-tasting cigarettes since ban], ''The Guardian'', 26 July 2021, Accessed 2 August 2021 </ref>
  
 
===Volumes===
 
===Volumes===
  
====Volume of Cigarettes by Region====
+
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. {{r|JTI_2018AR|p=34}}  
{| class="wikitable"
 
! Region
 
! 2017 (Billions)
 
! 2016 (Billions)
 
! 2015 (Billions)
 
! 2014 (Billions)
 
! 2013 (Billions)
 
|-
 
| South & West Europe
 
| 64.2
 
| 65.2
 
| 63.2
 
| 59.8
 
| 60.9
 
|-
 
| North & Central Europe
 
| 51.8
 
| 54.2
 
| 53.0
 
| 51.6
 
| 50.4
 
|-
 
| CIS+
 
| 133.0
 
| 141.4
 
| 152.5
 
| 165.7
 
| 185.2
 
|-
 
| Rest-of-the-World
 
| 149.5
 
| 137.9
 
| 125.2
 
| 120.8
 
| 119.8
 
|-
 
| Total
 
| 398.5
 
| 398.7
 
| 393.9
 
| 398.0
 
| 416.4
 
|}
 
  
 
=====Japanese Domestic Tobacco=====
 
=====Japanese Domestic Tobacco=====
  
 
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. {{r|JT_AR_2017}}
 
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. {{r|JT_AR_2017}}
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. <ref>[https://www.ft.com/content/1794a9a2-4d44-11e8-8a8e-22951a2d8493 Japan Tobacco: securing the brand in a disrupted market], ''Financial Times'', May 2018, Accessed September 2018 </REF> For Japanese domestic tobacco, total sales volume excludes sales volume of Japanese domestic duty free, the Chinese business and emerging products.
+
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. <ref>[https://www.ft.com/content/1794a9a2-4d44-11e8-8a8e-22951a2d8493 Japan Tobacco: securing the brand in a disrupted market], ''Financial Times'', May 2018, Accessed 18 September 2018 </REF> For Japanese domestic tobacco, total sales volume excludes sales volume of Japanese domestic duty free, the Chinese business and emerging products.
{| class="wikitable"
+
 
!
+
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. <ref>[https://www.japantimes.co.jp/news/2018/08/14/business/corporate-business/japan-tobacco-seeks-approval-price-hikes-finance-ministry/#.W9gSORMzZTZ Japan Tobacco seeks approval for price hikes from Finance Ministry], ''The Japan Times'', 14 August 2018, Accessed 31 October 2018 </REF>
! 2017{{r|JT_AR_2017|p=16}}
 
! 2016{{r|JT_AR_2016|p=14}}
 
! 2015{{r|JT_AR_2016|p=14}}
 
! 2014{{r|JT_AR_2016|p=14}}
 
! 2013{{r|JT_AR_2013|p=14}}
 
|-
 
| Tobacco Units (in billions)
 
| 109.2
 
| 106.2
 
| 109.2
 
| 111.4
 
| 116.2
 
|-
 
|}
 
  
 
=====International tobacco=====
 
=====International tobacco=====
 
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.{{r|JT_AR_2016|p=14}}
 
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.{{r|JT_AR_2016|p=14}}
  
 +
===Innovative Product Portfolio===
 +
 +
Japan Tobacco Inc said it plans to launch a new heated tobacco device in the second half of 2021. <ref>[https://web.archive.org/save/https://finance.yahoo.com/news/japan-tobacco-launch-heated-tobacco-061003954.html Japan Tobacco to launch new heated tobacco device later this year],''Yahoo'', 9 February 2021, Accessed 11 March 2021 </ref>
 +
 +
Japan Tobacco launched Ploom Tech+ with” a new, more compact device from the Ploom Tech+ series. <ref>Tobacco Reporter, [https://tobaccoreporter.com/2020/10/07/japan-tobacco-launches-more-compact-ploom-tech/ Japan Tobacco Launches More Compact Ploom Tech], 7 October, Accessed 19 November 2020</ref>
 +
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).{{r|JTI_Sustainability|p=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. <ref>[https://www.nst.com.my/world/2019/01/451551/japan-tobacco-ratchets-smokeless-war-new-products Japan Tobacco ratchets up smokeless war with new products], ''The New Straits Times'', 17 January 2019, Accessed 21 April 2019 </ref> <ref> [https://www.reuters.com/article/us-japan-tobacco-products/japan-tobacco-ratchets-up-smokeless-war-with-new-products-idUSKCN1PB090 Japan Tobacco ratchets up smokeless war with new products], ''Reuters'', 17 January 2019, Accessed 27 April 2019 </ref> Japan Tobacco International introduced the Logic Compact vape in Canada across Ontario and British Columbia. Logic Compact is a high-nicotine, closed-tank vape. <ref>[https://www.newswire.ca/news-releases/jti-shakes-up-canada-s-vape-market-862015235.html JTI shakes up Canada’s vape market], ''Newswire'', 7 February 2019, Accessed 29 April 2019 </ref> JTI Ukraine  announced the withdrawal of its Logic Compact e-cigarettes from the country in December 2020. <ref> [https://web.archive.org/web/20210311084549/https://www.unian.net/economics/other/tabak-uhodit-v-ten-poslednie-novosti-11286242.html Табак уходит в тень Подробности читайте на УНИАН: https://www.unian.net/economics/other/tabak-uhodit-v-ten-poslednie-novosti-11286242.html] Unian, 19 January 2021, Accessed 11 March 2021 </ref>
 
{| class="wikitable"
 
{| class="wikitable"
!  
+
! style="font-weight:bold;width=10%" |Brand Name
! 2017 {{r|JT_AR_2017|p=16}}
+
! style="font-weight:bold;width=10%" |Description
! 2016 {{r|JT_AR_2016|p=14}}
+
|-
! 2015 {{r|JT_AR_2016|p=14}}
+
|Logic LQD
! 2014 {{r|JT_AR_2016|p=14}}
+
|Logic LQD is Japan Tobacco International's open tank system, which lets users refill the device with Logic LQD e-liquids.<REF name="JTI_RRP">Japan Tobacco International, [https://www.jti.com/about-us/what-we-do/our-brands Reduced-Risk Products – our vaping products], Accessed 21 September 2018</REF>
! 2012 {{r|JT_AR_2013|p=14}}
+
|-
 +
|Logic PRO
 +
|Logic Pro is Japan Tobacco International's closed tank system. This pairs pre-filled e-liquid capsules to specific devices.{{r|JTI_RRP}}
 
|-
 
|-
| Tobacco Units (in billions)
+
|Ploom Tech
| 393.9
+
|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.{{r|JTI_RRP}}
| 398.0
 
| 393.9
 
| 398.7
 
| 436.5
 
 
|-
 
|-
 
|}
 
|}
  
===Innovative Product Portfolio===
+
===Sales of Heated Tobacco products in Japan===
  
 
{| class="wikitable"
 
{| class="wikitable"
! style="font-weight:bold;width=10%" |Brand Name
+
! style="font-weight:bold;width=10%" |
! style="font-weight:bold;width=10%" |Description <REF>Japan Tobacco International, [https://www.jti.com/about-us/what-we-do/our-brands Reduced-Risk Products – our vaping products], Accessed September 2018</REF>
+
! style="font-weight:bold;width=10%" |Price
 +
! style="font-weight:bold;width=10%" | Number of Tobacco Brands Available
 +
! style="font-weight:bold;width=10%" |Available Areas
 
|-
 
|-
|Logic LQD
+
|Ploom Tech <ref name="JTI_REUTERART"> [https://asia.nikkei.com/Business/Business-Trends/New-rules-in-Japan-take-aim-at-heated-tobacco New rules in Japan take aim at heated tobacco], ''Reuters'', February 2018, Accessed  30 October 2018 </ref>
|Logic LQD is Japan Tobacco International's open tank system, which lets users refill the device with Logic LQD e-liquids.
+
(Japan Tobacco International)
 +
|4,000
 +
|5
 +
|Tokyo, Osaka, Sapporo,Sendai, Yokohama, Nagoya, Hiroshima, Fukuoka
 
|-
 
|-
|Logic PRO
+
|IQOS {{r|JTI_REUTERART}}
|Logic Pro is Japan Tobacco International's closed tank system. This pairs pre-filled e-liquid capsules to specific devices.
+
([[Philip Morris International]])
 +
|10,980
 +
|6
 +
|Nationwide
 
|-
 
|-
|Ploom Tech
+
|GLO {{r|JTI_REUTERART}}
|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.
+
([[British American Tobacco]])
 +
|8,000
 +
|8
 +
|Nationwide
 
|-
 
|-
 
|}
 
|}
  
 
==Marketing and External Relations==
 
==Marketing and External Relations==
 +
===Global Campaigns===
 +
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
 +
*#ReThinkMusic <ref>GGTC website, [https://web.archive.org/save/https://ggtc-bucket.s3-ap-southeast-1.amazonaws.com/uploads/2021-05-27/21-59-03-008933/Cessation%20V6.pdf?utm_source=BenchmarkEmail&utm_campaign=31_May_Special_Edition_Final&utm_medium=email HOW THE TOBACCO INDUSTRY UNDERMINES CESSATION], p.4, May 2021, Accessed 12 July 2021</ref>
 +
 +
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 International|Philip Morris]], [[British American Tobacco]], Japan Tobacco, and [[Imperial Brands]] used social media influencers to promote their products online. <ref>[https://www.dazeddigital.com/life-culture/article/43290/1/big-tobacco-smoking-industry-young-people-social-media-influencers-instagram How the tobacco industry targets young people with social media influencers], ''Dazed & Confused'', 13 February 2019, Accessed 7 May 2019 </ref>
 +
 +
Japan Tobacco International launched of a nationwide anti-illicit tobacco campaign in the United Kingdom called [http://www.jtiadvance.co.uk/DontBeComplicit Don’t Be Complicit In Illicit], which calls on retailers to join the fight against the illicit tobacco trade. <ref>[https://forecourttrader.co.uk/news/fullstory.php/aid/15775/JTI_campaign_urges_retailers_to_join_fight_against_illicit_trade.html JTI campaign urges retailers to join fight against illicit trade], ''Forecourt Trader'', 10 October 2018, Accessed 31 October 2018</ref>
 +
 +
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. <ref>[https://www.enca.com/news/campaign-against-anti-smoking-bill-intensifies Campaign against anti-smoking bill intensifies], ''ENCA'', August 2018, Accessed 19 October 2018</ref>
 +
 +
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. <ref> The Moodie Davitt Report website, [https://www.moodiedavittreport.com/dubai-duty-free-partners-with-winston-for-sound-of-london-campaign/ Dubai Duty Free partners with Winston for ‘Sound of London’ campaign], 26 December 2018, Accessed 21 December 2018</ref>
 +
 +
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." <ref>[http://www.cbs8.com/story/39420380/how-big-tobacco-is-using-social-media-to-lure-teens How Big Tobacco is using social media to lure teens], ''CBS 8'', 6 November 2018, Accessed 30 November 2018 </ref>
 +
 +
===Marketing Campaigns===
 +
 +
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. <ref>[https://www.campaignlive.co.uk/article/nordic-spirit-creates-immersive-forest-soho/1696499 Nordic Spirit creates immersive forest in Soho], ''Campaign Live'', 7 October 2020, Accessed 19 November 2020</ref> 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”. <ref>[ https://web.archive.org/save/https://www.standard.co.uk/news/uk/japan-tobacco-international-advertising-standards-authority-b929550.htmlNicotine pouch ad banned for implying stimulant effect for gamers], ''The Standard'', 14 April 2021, Accessed 10 May 2021 </ref>
 +
 +
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.{{r|JT_WEB_OUR-VIEWS_JTI-ENCOUNTERS}}
 +
 
===Sponsorships===
 
===Sponsorships===
“JTI Encounters” began as an event in Romania 2000 and hosted famous choreographers and ballet companies, including the Béjart Ballet Lausanne in 2000 (our debut event) 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. <REF>Japan Tobacco International, [https://www.jti.com/our-views/jti-encounters-trademark-excellence-local-cultural-life "JTI Encounters" – a trademark of excellence in local cultural life], Accessed September 2018</REF>
+
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. <ref>Expose Tobacco, [https://web.archive.org/save/https://exposetobacco.org/wp-content/uploads/Women-and-the-Tobacco-Industry-4.6.2021.pdf Women and the Tobacco Industry], p.2, April 2021, Accessed 14 July 2021</ref>
 +
 
 +
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. <ref> Make It Bright, [https://web.archive.org/save/https://www.makeitbright.com/en REGISTRATION FOR JTI'S GLOBAL INTERNSHIP CHALLENGE 2021 IS NOW OPEN Arrow down], Accessed 10 May 2021 </ref> 
 +
 
 +
Japan Tobacco International President John Freda donated 20,000 face masks for hospitals in Batangas, Philippines in response to Covid-19 .  <ref>[https://www.pna.gov.ph/articles/1099172 Ecozone locators lauded for helping Covid-19 front-liners], ''PNA'', 7 April 2020, Accessed 21 April 2020 </ref>
 +
 
 +
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.<ref> [https://euobserver.com/health/145285 Belgium prepares probe into Politico tobacco sponsorship], ''EU Observer'', 27 June 2019, Accessed 9 July 2019 </ref>
 +
 
 +
Japan Tobacco International provides funding to the British Museum’s Asia department. <ref>[https://www.theartnewspaper.com/news/why-is-the-british-museum-still-accepting-tobacco-sponsorship Why is British Museum still accepting tobacco sponsorship?], ''The Art Newspaper'', 4 April 2019, Accessed 12 April 2019 </ref>  According to TobaccoTactics, Japan Tobacco funded Consumer Choice Center's launch event in 2018. <ref> TobaccoTactics, [https://tobaccotactics.org/index.php?title=Consumer_Choice_Center#cite_note-faq-10 Consumer Choice Center], Accessed 18 September 2019 </ref> The company is also one of Premier supporters of the British Royal Academy of Art. <ref> Royal Academy, [https://web.archive.org/web/20201130033600/https://www.royalacademy.org.uk/corporate-support Corporate Support], December 2020, Accessed 8 December 2020</ref>
 +
 
 +
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. <ref>[https://www.moodiedavittreport.com/more-than-400-delegates-expected-at-meadfa-2018-in-beirut-this-november/ More than 400 delegates expected at MEADFA 2018 in Beirut this November], ''The Moodie Davitt Report'', October 2018, Accessed 30 October 2018</ref>
 +
 
 +
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. <ref> [https://www.reuters.com/article/us-japan-smokingban-tokyo/tokyo-passes-tough-anti-smoking-law-ahead-of-2020-olympics-idUSKBN1JN1LP Tokyo passes tough anti-smoking law ahead of 2020 Olympics], ''Reuters'', June 2018, Accessed 23 October 2018</ref>  
 +
 
 +
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”. {{r|JT_WEB_OUR-VIEWS_JTI-ENCOUNTERS}}
  
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.
+
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. {{r|JT_WEB_OUR-VIEWS_RESPONSIBLE-COMPANY}}
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”. <REF>Japan Tobacco International, [https://www.jti.com/our-views/jti-encounters-trademark-excellence-local-cultural-life "JTI Encounters" – a trademark of excellence in local cultural life], Accessed September 2018</REF>
 
  
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 organisation 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. {{r|JT_WEB_OUR-VIEWS_RESPONSIBLE-COMPANY}}
+
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. {{r|JT_WEB_OUR-VIEWS_RESPONSIBLE-COMPANY}}
  
We also contribute to another organistion 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. {{r|JT_WEB_OUR-VIEWS_RESPONSIBLE-COMPANY}}
+
===Research and Development===
 +
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." <ref> [https://cen.acs.org/biological-chemistry/toxicology/Big-tobacco-embraces-vitro-toxicology/96/i43 Big tobacco embraces in vitro toxicology], ''Chemical & Engineering News'', October 2018, Accessed 12 October 2018 </ref>
  
 
===Corporate Social Responsibility===
 
===Corporate Social Responsibility===
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 US$10,114,200. 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. <ref> ILO, [https://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_545944.pdf ILO cooperation with the tobacco industry in the pursuit of the Organization’s social mandate], November 2017, page 3, Accessed September 2018 </ref>
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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. <ref>JTI website, [https://web.archive.org/save/https://ukrb-jti.com/jti-sustainability-giveabutt.html #IGiveAButt], May 2021, Accessed 11 July 2021</ref>
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 +
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 Brands|Imperial Tobacco Group]]; Japan Tobacco International; [[Philip Morris International]]; Premium Tobacco; Scandinavian Tobacco Group; Sunel Ticaret Turk; Swedish Match; and Universal Leaf Tobacco. <ref> ILO, [https://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_545944.pdf ILO cooperation with the tobacco industry in the pursuit of the Organization’s social mandate], November 2017, p. 3, Accessed 30 September 2018 </ref> 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. <ref> [https://www.swissinfo.ch/eng/international-geneva_should-the-ilo-maintain-financial-ties-to-the-tobacco-industry-/44506474 Should the ILO maintain financial ties to the tobacco industry?], ''Swiss Info'', October 2018, Accessed 30 September 2018 </REF> 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. <ref> Campaign for Tobacco-Free Kids, [https://www.tobaccofreekids.org/press-releases/2018_10_31_ilo Organizations Around the World Call on International Labour Organization to Sever Ties with Tobacco], November 2018, Accessed 15 November 2018 </ref> 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. <ref>[https://www.france24.com/en/20181108-ilo-postones-decision-cutting-ties-tobacco-industry-again ILO postones decision on cutting ties to tobacco industry again], ''France 24'', 8 November 2018, Accessed 19 November 2018 </ref> 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". <ref>[https://www.linkedin.com/pulse/so-what-guides-someone-working-our-industry-eddy-pirard-1e/ LinkedIn], So, what guides someone working in our industry?, 8 August 2018, Accessed 24 March 2019</ref>
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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. <ref> [http://tass.ru/ekonomika/5738826 Эксперты: доля нелегальных сигарет в России в 2018 году оценивается в 9%], ''TASS.ru'', 31 October 2018, Accessed 28 November 2018 </ref>
  
 
===Marketing to Kids===
 
===Marketing to Kids===
  
An investigation exposing 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. <ref> Campaign for Tobacco-Free Kids, [https://www.tobaccofreekids.org/press-releases/2018_08_27_ftc New Investigation Exposes How Tobacco Companies Market Cigarettes on Social Media in the U.S. and Around the World], August 2018, Accessed September 2018 </REF>
+
[https://www.tobaccofreekids.org/ 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. <ref>Campaign for Tobacco-Free Kids, [https://www.tobaccofreekids.org/press-releases/2018_08_27_ftc PRESS RELEASE New Investigation Exposes How Tobacco Companies Market Cigarettes on Social Media in the U.S. and Around the World], August 2018, Accessed 20 October 2018 </ref> 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. <ref>Campaign for Tobacco-Free Kids, [https://www.tobaccofreekids.org/press-releases/2018_08_27_ftc New Investigation Exposes How Tobacco Companies Market Cigarettes on Social Media in the U.S. and Around the World], August 2018, Accessed 19 September 2018 </REF>
 +
 
 +
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." <ref> [http://www.cbs8.com/story/39420380/how-big-tobacco-is-using-social-media-to-lure-teens How Big Tobacco is using social media to lure teens], ''CBS 8'', 6 November 2018, Accessed 30 November 2018 </ref>
  
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. <ref>[https://www.washingtontimes.com/news/2011/nov/24/japan-tobacco-accused-of-marketing-to-girls-at-wor/ Japan Tobacco accused of marketing to girls at World Cup volleyball], ''The Washington Times'', November 2011, Accessed September 2018 </REF>
+
In a separate investigation, Japan Tobacco International brands Winston and Camel were seen around schools in eight countries, while [[Imperial Brands|Imperial Tobacco]] were visible from schools in five countries. <ref> [https://www.cnbc.com/2018/03/09/cigarettes-children-are-being-exposed-to-tobacco-advertising.html Children around the world are being exposed to cigarette advertising near their schools], ''CNBC'', March 2018, Accessed 29 September 2018 </REF>
  
 
===Political Spending===
 
===Political Spending===
 
For a list of political contributions in the United States look [[Political_Spending|here]].
 
For a list of political contributions in the United States look [[Political_Spending|here]].
 +
 +
===Corporate Social Responsibility===
 +
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. <ref>JTI Foundation, [https://web.archive.org/web/20201208033951/http://jtifoundation.org/about-us/ About Us], Accessed 8 December 2020</ref>
  
 
==Reporting and Regulation==
 
==Reporting and Regulation==
 +
 +
===Investigations===
 +
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. <ref name="BATH"> University of Batch, [https://web.archive.org/web/20201207072922/https://www.bath.ac.uk/announcements/big-tobacco-big-avoidance/ Big Tobacco, Big Avoidance], 5 November 2020, Accessed 7 December 2020 </ref>
 +
 +
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. <ref>[https://sg.news.yahoo.com/cigarette-maker-fined-15-k-for-distributing-advertising-products-at-music-festival-without-licence-044859010.html  Cigarette maker fined $15k for distributing, advertising products at music festival without licence], ''Yahoo!'', 21 February 2020, Accessed 15 March 2020</ref>
 +
 +
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. <ref>[https://www.koreatimes.co.kr/www/tech/2019/12/694_279729.html JTI Korea resolves 3-year disputes with union], ''Korea Times'', 3 December 2019, Accessed 20 January 2020 </ref>
 +
 +
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. <ref> [https://www.thetimes.co.uk/edition/business/e-cigarette-brands-quizzed-by-house-of-representatives-over-risk-to-young-smokers-56d62hdgf E-cigarette brands quizzed by House of Representatives over risk to smokers], ''The Times'', 23 August 2019, Accessed 12 September 2019 </ref>
 +
 +
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”. <ref>[https://www.aljazeera.com/news/2019/08/calls-sanctions-arms-embargo-myanmar-army-190806011519378.html Calls sanctions arms embargo Myanmar army], ''Al Jazeera'', 6 August 2019, Accessed 9 August 2019</ref>
 +
 +
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. <ref> [https://www.independent.co.uk/news/business/news/tobacco-companies-uk-corporation-tax-profits-university-bath-study-a8764841.html Tobacco companies uk corporation tax profits university bath study], ''Independent'', 16 February 2019, Accessed 23 April 2019 </ref>
 +
 
===Tobacco Litigation===
 
===Tobacco Litigation===
 +
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. <ref> [https://forecourttrader.co.uk/news/fullstory.php/aid/17926/JTI_removes_gantries_from_three_stores_for_selling_illicit_tobacco.html JTI removes gantries from three stores for selling illicit tobacco], ''FORECOURT Trader'', 8 January 2020, Accessed 19 February 2020 </ref>
  
 
A full list of tobacco industry litigation cases can be found [https://takeapartwiki.tobaccofreekids.org/index.php?title=Tobacco_Control_Litigation here].
 
A full list of tobacco industry litigation cases can be found [https://takeapartwiki.tobaccofreekids.org/index.php?title=Tobacco_Control_Litigation here].
  
In 2016, Japan Tobacco International and Others v. Ministry of Health (plain packaging laws), Japan Tobacco International, Philip Morris International, British American Tobacco Ltd. 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.
+
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, [[Philip Morris International|Rothmans Benson & Hedges]] and [[Japan Tobacco International|JTI-MacDonald]]. <ref>[https://www.bbc.com/news/world-us-canada-47409916 Canada appeals court orders tobacco firms to pay billions in damages], ''BBC'', 1 March 2019, Accessed 12 April 2019 </ref> An Ontario court extended an order suspending legal proceedings until March 31, 2021. <ref>[https://www.kamloopsthisweek.com/news/ontario-court-again-extends-stay-of-proceedings-for-three-tobacco-giants-1.24211784 Ontario court again extends stay of proceedings for three tobacco giants], ''Kamloops This week'', 29 September 2020, Accessed 19 November 2020</ref>
 +
 
 +
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. <ref> [https://www.irishtimes.com/news/politics/tobacco-giant-issues-legal-threat-over-plain-packaging-1.2106300 Tobacco giant issues legal threat over plain packaging], ''The Irish Times'', 17 February 2015, Accessed 29 December 2018 </ref>
  
 
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 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.
Line 762: Line 740:
  
 
==Partners and Allies==
 
==Partners and Allies==
According to Transparency Register, in 2017 Japan Tobacco International disclosed it was a member of the following associations: <ref name="JT_TransparencyRegister"> Transparency Register, [http://ec.europa.eu/transparencyregister/public/consultation/displaylobbyist.do?id=71175716023-03 JT International], August 2018, Accessed September 2018 </REF>
+
According to Transparency Register, in 2017 Japan Tobacco International disclosed it was a member of the following associations:
* Confederation of European Community CigaretteManufacturers
+
* Confederation of European Community Cigarette Manufacturers  <ref name="JTI_TREG"> Transparency Register, [http://ec.europa.eu/transparencyregister/public/consultation/displaylobbyist.do?id=71175716023-03 JT International], August 2018, Accessed 19 September 2018 </REF>
* European Smoking Tobacco Association  
+
* European Smoking Tobacco Association {{r|JTI_TREG}}
* European Cigar Manufacturers Association  
+
* European Cigar Manufacturers Association {{r|JTI_TREG}}
* Business Europe
+
* Business Europe {{r|JTI_TREG}}
* Japan Business Council in Europe  
+
* Japan Business Council in Europe {{r|JTI_TREG}}
* British Chamber of Commerce in Belgium  
+
* British Chamber of Commerce in Belgium {{r|JTI_TREG}}
* American European Community Association  
+
* American European Community Association {{r|JTI_TREG}}
* Center for European Policy Studies
+
* Center for European Policy Studies {{r|JTI_TREG}}
* The Kangaroo Group
+
* The Kangaroo Group {{r|JTI_TREG}}
* Ambrosetti Club Europe
+
* Ambrosetti Club Europe {{r|JTI_TREG}}
* EURACTIV
+
* EURACTIV {{r|JTI_TREG}}
* Public Affairs Council  
+
* Public Affairs Council {{r|JTI_TREG}}
* Forest EU (Freedom Organisation for the Right to Enjoy Smoking Tobacco)
+
* Forest EU (Freedom Organisation for the Right to Enjoy Smoking Tobacco) {{r|JTI_TREG}}
* EPICENTER (European Policy Information Center)  
+
* EPICENTER (European Policy Information Center) {{r|JTI_TREG}}
* Consumer Choice Center  
+
* Consumer Choice Center {{r|JTI_TREG}}
 +
 
 +
In October 2018, Japan Tobacco International rejoined the Association of the Tobacco Industry of Cambodia. <ref> [https://www.phnompenhpost.com/business/japan-tobacco-rejoins-kingdoms-atic Japan Tobacco rejoins Kingdom’s ATIC], ''The Phnom Penh Post'', October 2018, Accessed 20 October 2018 </ref>
 +
 
 +
[http://www.tobaccotactics.org Tobacco Tactics] reported a number of tobacco companies, including Japan Tobacco International as 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." <ref> Tobacco Tactics, [http://www.tobaccotactics.org/index.php?title=Atlas_Network#cite_note-six-8 Atlas Network], Accessed 21 November 2018 </ref>. Full profile on the organization can be found [http://www.tobaccotactics.org/index.php?title=Atlas_Network#cite_note-six-8 here].
 +
 
 +
Japan Tobacco International is a Platinum member of the [https://www.scottishshop.org.uk 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. <ref> Scottish Grocers Federation, [https://www.scottishshop.org.uk/about/corporate-members-sgf Corporate Members], Accessed 23 December 2018 </ref>
  
 
===Lobbying===
 
===Lobbying===
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. {{r|JT_TransparencyRegister}}
 
  
In 2017, the organisation has paid between EUR 1,250,000 and EUR 1,499,999 on activities related to lobbying and registration fees within the EuropeanUnion.{{r|JT_TransparencyRegister}}
+
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. <ref> [https://www.theguardian.com/world/2019/jan/23/tobacco-industry-free-market-thinktanks-cigarette-controls Tobacco industry free market thinktanks cigarette controls], ''The Guardian'', 23 January 2019, Accessed 17 April 2019 </ref>
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 +
====Bangladesh====
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 +
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. 
 +
  “When respected Cabinet Secretary became aware if the issue, he stepped in and solved the issue in rapid speed”. <ref> Tobacco Tactics, [https://tobaccotactics.org/wp-content/uploads/2021/03/Ambassador-of-Japans-Letter-for-JTI_.pdf I. Noki, Ambassador of Japan Re: Japan International’s (JTI) Landmark Investment in Bangladesh and Repeated Challenges Posed Due to Policy Shifts and Anti-Competitive Activities], 19 January 2021, Accessed 19 April 2021 </ref>
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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. <ref>[http://www.protidinersangbad.com/whole-country/215312/%E0%A6%A4%E0%A6%BE%E0%A6%AE%E0%A6%BE%E0%A6%95-%E0%A6%AA%E0%A7%8D%E0%A6%B0%E0%A6%A4%E0%A6%BF%E0%A6%B7%E0%A7%8D%E0%A6%A0%E0%A6%BE%E0%A6%A8%E0%A6%95%E0%A7%87-%E0%A6%B8%E0%A6%B9%E0%A6%BE%E0%A7%9F%E0%A6%A4%E0%A6%BE-%E0%A6%95%E0%A6%B0%E0%A6%BE%E0%A7%9F-%E0%A6%B6%E0%A6%BF%E0%A6%B2%E0%A7%8D%E0%A6%AA-%E0%A6%AE%E0%A6%A8%E0%A7%8D%E0%A6%A4%E0%A7%8D%E0%A6%B0%E0%A6%A3%E0%A6%BE%E0%A6%B2%E0%A7%9F%E0%A7%87%E0%A6%B0-%E0%A6%AA%E0%A7%8D%E0%A6%B0%E0%A6%A4%E0%A6%BF-%E0%A6%95%E0%A7%8D%E0%A6%B7%E0%A7%8B%E0%A6%AD তামাক প্রতিষ্ঠানকে সহায়তা করায় শিল্প মন্ত্রণালয়ের প্রতি ক্ষোভ], ''protidinersangbad'', 20 April 2020, Accessed 21 May 2020 </ref> Customs, Excise and VAT Commission suggested British American Tobacco and Japan Tobacco International are under investigation for unfair market advantage.<ref>[https://bonikbarta.net/home/news_description/241852/%E0%A6%A8%E0%A6%BF%E0%A6%AE%E0%A7%8D%E0%A6%A8%E0%A6%B8%E0%A7%8D%E0%A6%A4%E0%A6%B0%E0%A7%87%E0%A6%B0-%E0%A6%B8%E0%A6%BF%E0%A6%97%E0%A6%BE%E0%A6%B0%E0%A7%87%E0%A6%9F%E0%A7%87%E0%A6%B0-%E0%A6%AC%E0%A6%BE%E0%A6%9C%E0%A6%BE%E0%A6%B0-%E0%A6%A7%E0%A6%B0%E0%A6%A4%E0%A7%87-%E0%A6%AA%E0%A7%8D%E0%A6%B0%E0%A6%A4%E0%A6%BF%E0%A6%AF%E0%A7%8B%E0%A6%97%E0%A6%BF%E0%A6%A4%E0%A6%BE%E0%A7%9F-%E0%A6%AC%E0%A6%B9%E0%A7%81%E0%A6%9C%E0%A6%BE%E0%A6%A4%E0%A6%BF%E0%A6%95-%E0%A6%95%E0%A7%8B%E0%A6%AE%E0%A7%8D%E0%A6%AA%E0%A6%BE%E0%A6%A8%E0%A6%BF- নিম্নস্তরের সিগারেটের বাজার ধরতে প্রতিযোগিতায় বহুজাতিক কোম্পানি], ''Bonik Karta'', 20 September 2020, Accessed 8 October 2020</ref>
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====Canada====
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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. <ref>Vaping Post website, [https://www.vapingpost.com/2019/12/03/canada-three-tobacco-companies-launch-vaping-trade-association/ Canada: Three Tobacco Companies Launch Vaping Trade Association], 3 December 2019, Accessed 24 January 2020 </ref>
 +
 
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====China====
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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”. <ref>Mary Assunta, [http://www.globaltobaccoindex.org Global Tobacco Industry Interference Index 2019], Global Center for Good Governance in Tobacco Control (GGTC), September 2019, p. 15 </ref>
 +
 
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====European Union====
 +
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. <ref name="JT_TR"> European Transparency Register, [http://ec.europa.eu/transparencyregister/public/consultation/displaylobbyist.do?id=71175716023-03 JT International], Accessed 19 October 2018 </ref>
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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. <ref name="BAT_TB"> European Transparency Register, [https://web.archive.org/save/https://ec.europa.eu/transparencyregister/public/consultation/displaylobbyist.do?id=71175716023-03 Imperial Brands], Accessed 10 May 2021</ref>
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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." <ref>[https://www.politico.eu/sponsored-content/time-to-reassess-vaping-regulations/ Time to reassess vaping regulations], ''Politico'', December 2018, Accessed 6 March 2019 </ref> Japan Tobacco International is one of three full members of Tobacco Europe (previously CECCM). <ref name="JT_TransparencyRegister"> European Transparency Register, [https://ec.europa.eu/transparencyregister/public/consultation/displaylobbyist.do?id=1496873833-97 Tobacco Europe], Accessed 27 July 2020 </ref>
 +
 
 +
Forest EU, is funded by Japan Tobacco International, British American Tobacco and members of the European Smoking Tobacco Associations. <ref>[https://www.theparliamentmagazine.eu/articles/partner_article/efa/making-europe-smoke-free-environment  Making Europe a smoke-free environment], ''The Parliament Magazine'', 21 October 2019, Accessed 26 November 2019 </ref>
 +
 
 +
====Gibraltar====
 +
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. <ref>[https://www.euroweeklynews.com/2020/02/14/gibraltar-signs-deal-with-spanish-tobacco-company-to-unite-against-smuggling/ Gibraltar signs deal with Spanish tobacco company to unite against smuggling], ''Euro Weekly News'', 14 February 2020, Accessed 19 February 2020 </ref>
 +
 
 +
====Japan====
 +
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.  <ref name="GTII_2019"> Global Tobacco Index, [https://globaltobaccoindex.org/ DOWNLOAD REPORT], p. 10, Accessed 24 February 2020 </REF>
 +
 
 +
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. {{r|GTII_2019|p=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. {{r|GTII_2019|p=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}}
 +
 
 +
====Malawi====
 +
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. <ref>[https://web.archive.org/web/20201129114350/https://malawi24.com/2020/11/21/jti-constructs-15-village-clinics-in-seven-districts/ JTI constructs 15 village clinics in seven districts], ''Malawi 24'', 21 November 2020, Accessed 13 January 2021 </ref>
 +
 
 +
====Philippines====
 +
The government of the Philippines 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), the committee tasked with the implementation of tobacco control law. In 2018, the 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}}
 +
 
 +
====South Africa====
 +
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. <ref>[https://africatimes.com/2020/07/22/big-tobacco-accused-of-hypocrisy-over-south-africa-ban/ Big Tobacco accused of hypocrisy over South Africa ban], ''Africa Times'', 22 July 2020, Accessed 24 August 2020 </ref>
 +
 
 +
====Ukraine====
 +
 
 +
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. <ref>[https://korrespondent.net/business/companies/4148556-tabachnye-kompanyy-budut-sudytsia-s-amku-yz-za-shtrafa-v-65-mlrd-hrn Табачные компании будут судиться с АМКУ из-за штрафа в 6,5 млрд грн], ''Korrespondent'', 10 October 2019, Accessed 26 November 2019 </ref>
 +
 
 +
====United Kingdom====
 +
 
 +
[[Philip Morris International]], [[British American Tobacco]], [[Japan Tobacco International]], [[Imperial Brands]] and Juul are all members if the UK Vaping Industry Association (UKVIA), United Kingdom's leading forum for supporting, developing and promoting the vaping industry. <ref> UKVIA website, [http://www.ukvia.co.uk/who-we-are/ Who we are], 12 February 2020 </ref>
 +
 
 +
Ian Paisley of the Democratic Unionist party, held a tea with Japan Tobacco International (JTI) in a parliamentary dining room in July 2017. <ref> [https://www.theguardian.com/politics/2017/dec/29/tory-and-dup-mps-criticised-wining-dining-tobacco-firms Tory and DUP MPs criticised for ‘wining and dining’ tobacco firms], ''The Guardian'', 29 November 2017, Accessed 12 February 2020 </ref> 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. <ref> [https://www.mirror.co.uk/news/uk-news/cigarette-firm-gives-tory-mps-4067079 Cigarette firm gives Tory MPs £50k worth of freebies as industry fights plain box laws], ''Mirror'', Accessed 23 December 2018 </ref> 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. <ref> [https://www.heraldscotland.com/news/16981736.snp-in-row-over-conference-fees-from-tobacco-giants/ SNP in row over conference fees from tobacco giants], ''The Herald'', October 2018, Accessed 31 October 2018 </ref>
 +
 
 +
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." <ref> Department for Environment, Food & rural Affairs,  [https://web.archive.org/web/20201207080745/https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/909420/smoking-litter-letter-to-philip-morris.pdf Rebecca Pow MP, Personal Correspondence to PMI], 3 August 2020, Accessed 7 December 2020 </ref>
  
The organisation employs five part-time and two full-time lobbyists. The European Union Register lists the following employees: {{r|JT_TransparencyRegister}}
+
====Unites States====
 +
Lobbying expenses for 2019 reported by Japan Tobacco International and Japan Tobacco International USA:
  
 
{| class="wikitable"
 
{| class="wikitable"
! style="font-weight:bold;width=10%" |Name
+
! style="font-weight:bold;width=10%" |Firms Hired
! style="font-weight:bold;width=10%" |Contract Status
+
! style="font-weight:bold;width=10%" |Total Reported by Filer Reported Contract Expenses 
! style="font-weight:bold;width=20%" |Start Date
+
(in USD) <ref> Open Secrets website, [https://www.opensecrets.org/lobby/clientsum.php?id=D000052512&year=2018 Japan Tobacco International], 19 March 2019, Accessed 20 July 2019 </ref>
! style="font-weight:bold;width=30%" |End Date
+
! style="font-weight:bold;width=10%" | Lobbyist Hired <ref> Open Secrets website, [https://www.opensecrets.org/lobby/clientlbs.php?id=D000052512&year=2019 Client Profile: Japan Tobacco International], Accessed 20 July 2019 </ref>
 
|-
 
|-
|Paolo Bochicchio
+
|Jenkins Hill Consulting
|Active
+
|35,000
|3 May 2018
+
|Claunch, Michael; Eckart, ScottRogers, Hayden; Sosnoff, Hadley
|2 May 2019
 
 
|-
 
|-
|Ksenija Barysiene
+
|Emergent Strategies
|Active
+
|45,000
|15 September 2018
+
|Edwards, J Brad
|30 September 2019
 
 
|-
 
|-
|Brian Dunphy
+
|}
|Active
+
 
|19 May 2018
+
List of issues lobbied on in 2019 <ref> Open Secrets website, [https://www.opensecrets.org/lobby/clientissues.php?id=D000052512&year=2019 Issues, 2019], Accessed 23 July 2019 </ref>:
|17 May 2019
+
 
|-
+
{| class="wikitable"
|Vlad Olteanu
+
! Issue || Specific Issues || No. of Reports*
|Active
 
|30 January 2018
 
|29 January 2019
 
 
|-
 
|-
|Benedict Robert James Townsend
+
| Tobacco || 2 || 2
|Active
 
|3 May 2018
 
|2 May 2019
 
 
|-
 
|-
|Delia Andreea Voica
+
| Trade || 2 || 2
|Active
 
|15 September 2018
 
|30 September 2019
 
 
|-
 
|-
 +
| Taxes || 1 || 1
 
|}
 
|}
  
In the United States, website Open Secrets lists one lobbyist: <ref>[https://www.opensecrets.org/lobby/clientsum.php?id=D000052512&year=2018 Japan Tobacco International], Accessed September 2018 </ref>  
+
===Human Resources===
 +
[https://www.top-employers.com/en-US/ Top Employers Institute] recognised Japan Tobacco International as a leading employer of the year in three regions - Europe, Middle East and Asia Pacific in 2018
 +
<ref>Japan Tobacco International, [https://www.jti.com/our-views/newsroom/jti-certified-global-top-employer-third-consecutive-year JTI Certified Global Top Employer for the Third Consecutive Year], March 2017, Accessed 31 October 2018 </ref> and 2019. <ref> [https://www.prnewswire.com/news-releases/jti-certified-global-top-employer-for-the-6th-consecutive-year-300995722.html JTI Certified Global Top Employer for the 6th Consecutive Year], ''PR News Wire'', 30 January 2020, Accessed 19 February 2020 </ref>
  
 +
===Legal and Crime===
 
{| class="wikitable"
 
{| class="wikitable"
! style="font-weight:bold;width=10%" |Name
+
! style="font-weight:bold;width=10%" |Organization/Company
! style="font-weight:bold;width=10%" |Contract Status
+
! style="font-weight:bold;width=10%" |Tobacco company relationship
! style="font-weight:bold;width=20%" |Start Date
+
! style="font-weight:bold;width=20%" |Relationship type
! style="font-weight:bold;width=30%" |End Date
+
! style="font-weight:bold;width=20%" |Evidence of past or present formalized relationship
 +
|-
 +
|[[rajadarrylloh.com.my/|Raja, Darryl & Loh]]
 +
|Litigation
 +
| Law firm for JT International Tobacco Sdn Bhd Malaysia. <ref name="JTI_TI"> Tobacco Industry Watch, [https://tobaccowatch.seatca.org/index.php/fact-figure/tobacco-industry/ti-supporter/law-firms/ Lawyers and Law Firms], Accessed 29 December 2018 </ref>
 +
|2018
 +
|-
 +
|[https://csiworld.org/ 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. <ref> Crime Stoppers International website, [https://csiworld.org/news/crime-stoppers-international-hosts-39th-annual-conference Crime Stoppers International Hosts 39th Annual Conference], 2018, Accessed 19 February 2020 </ref>
 +
|2018
 +
|-
 +
|[https://www.thefirmva.com/ Villaraza & Angangco Law Office] (formerly CVC Law Center)
 +
|Litigation
 +
| Law firm for Japan Tobacco International Philippines. {{r|JTI_TI}}
 +
|2018
 
|-
 
|-
|Jenkins Hill Consulting,Brad J Edwards, Tax issues
 
|Active
 
|NA
 
|NA
 
 
|}
 
|}
  
===Marketing, Communications and PR Companies===
+
===Think-tanks & International Organizations===
 +
 
 +
{{JTIPartnerTableThinkTankInternational}}
 +
 
 +
===Consultancies & Leasing===
  
 
{| class="wikitable"
 
{| class="wikitable"
! style="font-weight:bold;width=10%" |Name
+
! style="font-weight:bold;width=10%" |Organization/Company
! style="font-weight:bold;width=10%" |Contract Status
+
! style="font-weight:bold;width=10%" |Tobacco company relationship
! style="font-weight:bold;width=20%" |Notes
+
! style="font-weight:bold;width=20%" |Relationship type
! style="font-weight:bold;width=30%" |Other Clients
+
! style="font-weight:bold;width=20%" |Evidence of past or present formalized relationship
 +
|-
 +
|[https://www2.deloitte.com/au/en.html Deloitte]
 +
|Audit
 +
| Deloitte Touche Tohmatsu Ltd are Japan Tobacco International's independent auditors. {{r|JT_AR_2017|p=139}}
 +
|2021
 +
|-
 +
|[https://home.kpmg.com/us/en/home.html 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. <ref> Japan Tobacco International, [https://www.jti.com/our-views/newsroom/one-ten-cigarettes-consumed-eu-2013-were-illegal-dramatic-rise-consumption One in Ten Cigarettes Consumed in the EU in 2013 Were Illegal; Dramatic Rise in Consumption of ‘Illicit Whites’], June 2014, Accessed October 2018 </ref>
 +
|2014
 
|-
 
|-
|Grey (2018)
+
|[http://www.ideas.org.my/ Institute for Democracy and Economic Affairs]
|Active
+
|Lobbying
|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. With this win, Grey’s Beirut team has enlarged its portfolio in the tobacco industry, as it already holds the account of Nakhla Tobacco Company. The Grey team will oversee JTI’s brand management and communication. <ref> The Arabian Marketer, [https://arabianmarketer.ae/jti-awards-creative-mandate-to-grey-mena/ JTI Awards Creative Mandate To Grey MENA], April 2018, Accessed September 2018 </ref>
+
| 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. <ref>Tobacco Watch, [https://tobaccowatch.seatca.org/index.php/fact-figure/tobacco-industry/ti-supporter/research-institutions/ Research Institutions and Researchers], Accessed 30 November 2018 </ref>
| With this win, Grey’s Beirut team has enlarged its portfolio in the tobacco industry, as it already holds the account of Nakhla Tobacco Company. <ref> The Arabian Marketer, [https://arabianmarketer.ae/jti-awards-creative-mandate-to-grey-mena/ JTI Awards Creative Mandate To Grey MENA], April 2018, Accessed September 2018 </ref>
+
|2015
 
|-
 
|-
 +
|[https://www.wework.com/ WeWork]
 +
|Office Space Leasing
 +
|Japan Tobacco International opened its global business services centre in WeWork’s coworking centre the Mennica complex in Warsaw, Poland.  <ref>[http://english.eurobuildcee.com/?page=news&id=29024&link=-record-coworking-lease-sealed ”Record” coworking lease sealed], ''Eurobuild CEE'',  Accessed 15 December 2019</ref>
 +
|2019
 
|}
 
|}
 +
 +
===Marketing, Conferences and PR Companies===
 +
 +
{{JTIPartnerTableMarketingAndPR}}
  
 
==References==
 
==References==
 
{{Reflist|
 
{{Reflist|
refs=<ref name="JT_AR_2013">[https://www.jt.com/investors/results/annual_report/pdf/2013/annual2013_E_all.pdf Japan Tobacco Inc., 2013, ''Japan Tobacco Inc. Annual Report 2013''] Accessed: September, 2018</ref>
+
refs=
<ref name="JT_AR_2014">[https://www.jt.com/investors/results/annual_report/pdf/2014/annual.fy2014_E_all.pdf Japan Tobacco Inc., 2014, ''Japan Tobacco Inc. Annual Report 2014''] Accessed: September, 2018</ref>
+
<nowiki><ref name="JT_AR_2014">Japan Tobacco International, [https://www.jt.com/investors/results/annual_report/pdf/2014/annual.fy2014_E_all.pdf Annual Report 2014], Accessed September 2018</ref></nowiki>
<ref name="JT_AR_2015">[https://www.jt.com/investors/results/annual_report/pdf/2015/annual.fy2015_E_all.pdf Japan Tobacco Inc., 2015, ''Japan Tobacco Inc. Annual Report FY2015''] Accessed: September, 2018</ref>
+
<ref name="JT_AR_2016">Japan Tobacco International, [https://www.jt.com/investors/results/annual_report/pdf/2016/annual.fy2016_E_all.pdf Annual Report FY2016], Accessed September 2018</ref>
<ref name="JT_AR_2016">[https://www.jt.com/investors/results/annual_report/pdf/2016/annual.fy2016_E_all.pdf Japan Tobacco Inc., 2016, ''Japan Tobacco Inc. Annual Report FY2016''] Accessed: September, 2018</ref>
+
<ref name="JT_AR_2017">Japan Tobacco International, [https://www.jt.com/investors/results/annual_report/pdf/2017/annual.fy2017_E_all.pdf Annual Report FY2017], Accessed September 2018</ref>
<ref name="JT_AR_2017">[https://www.jt.com/investors/results/annual_report/pdf/2017/annual.fy2017_E_all.pdf Japan Tobacco Inc., 2017, ''Japan Tobacco Inc. Annual Report FY2017''] Accessed: September, 2018</ref>
+
 
 +
<ref name="JT_WEB_ABOUT-US"> Japan Tobacco International, [https://www.jti.com/about-us About Us], Accessed September 2018</REF>
 +
 
 +
<ref name="JT_WEB_OUR-LEADERSHIP"> Japan Tobacco International, [https://www.jti.com/about-us/our-business/our-leadership Our Leadership], Accessed September 2018</REF>
 +
 
 +
<ref name="JT_WEB-COMPANY-OVERVIEW"> Japan Tobacco International, [https://www.jt.com/about/outline/ Company Overview], Accessed September 2018</REF>
 +
 
 +
<ref name="JT_WEB_OUR-BRANDS"> Japan Tobacco International, [https://www.jti.com/about-us/what-we-do/our-brands Our Brands], Accessed September 2018</REF>
 +
 
 +
<ref name="JT_WEB_OUR-VIEWS_JTI-ENCOUNTERS"> Japan Tobacco International, [https://www.jti.com/our-views/jti-encounters-trademark-excellence-local-cultural-life JTI encounters trademark excellence local cultural life], Accessed September 2018</REF>
  
<ref name="JT_WEB_ABOUT-US">[https://www.jti.com/about-us About Us, JTI Website], Japan Tobacco International, Accessed September 2018</REF>
 
<ref name="JT_WEB_OUR-LEADERSHIP">[https://www.jti.com/about-us/our-business/our-leadership Our Leadership, JTI Website], Japan Tobacco International, Accessed September 2018</REF>
 
<ref name="JT_WEB_OUR-BRANDS">[https://www.jti.com/about-us/what-we-do/our-brands Our Brands, JTI Website], Japan Tobacco International, Accessed September 2018</REF>
 
<ref name="JT_WEB_OUR-VIEWS_JTI-ENCOUNTERS">[https://www.jti.com/our-views/jti-encounters-trademark-excellence-local-cultural-life JTI encounters trademark excellence local cultural life], Japan Tobacco International, Accessed September 2018</REF>
 
 
<ref name="JT_WEB_OUR-VIEWS_RESPONSIBLE-COMPANY">[https://www.jti.com/our-views/we-are-responsible-company We are a responsible company], Japan Tobacco International, Accessed September 2018</REF>
 
<ref name="JT_WEB_OUR-VIEWS_RESPONSIBLE-COMPANY">[https://www.jti.com/our-views/we-are-responsible-company We are a responsible company], Japan Tobacco International, Accessed September 2018</REF>
 
}}
 
}}

Revision as of 11:34, 20 September 2021

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] Japan Tobacco, is the world’s fourth-biggest cigarette maker by sales, and 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

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] Japan Tobacco International staff members protested outside their Geneva HQ on October 22 against the job cuts. [9] Japan Tobacco announced a plan to establish a global business service center in Manila to serve its markets in the Asia-Pacific region. [10]

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. [11]

Key Executives

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.[12]
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.[12]

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). [12]
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. [12]
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. [12]
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. [12]
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. [12]
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.[12]
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.[12]
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.[12]
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. [12]
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.[12]
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. [12]
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.[12]
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.[12]
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.[12]
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.[12]
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.[12]

Board Members

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. [13]
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. [13]
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. [13]
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. [13]
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. [13]
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). [13]
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. [13]
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.[13]
Kazuhito Yamashita Member of the Board Mr. Yamashita joined JT in 1986 and over the course of his career to date has built up considerable experience in tobacco markets globally through postings in Los Angeles, London and Dubai. This front-line experience was crucial to his role in integrating sales activities in the Middle East and Europe following JT's acquisition of RJ Reynolds International (current JTI) in 1999.[13]

Investments in Unconsolidated Subsidiaries ("significant" > 20 percent management control):

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.[14]

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)

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.[15]

Subsidiary Name[15] 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.[15]

Forecast

Total shipment volume in 2020 is expected to decline circa 3%, due to industry volume contraction. [16] In 2019, total shipment volume declined 0.3% due to industry volume contraction. Excluding acquisitions and favorable inventory movements, total shipment volume decreased 1.9%. Quarterly market share gains continued across many geographies, most notably in Cambodia, Canada, Czech Republic, Iran, Kazakhstan, Malaysia, Poland, Taiwan and the UK.[16]:5 Japan Tobacco Inc cut its annual profit outlook and now expects a full-year operating profit of 505 billion yen (USD 4.65 billion) compared with a previous forecast of 518 billion yen. For the third quarter, operating profit fell 26 percent year-on-year to 129 billion yen. [17]

COVID-19 response

Azerbaijan

The Azerbaijan Industrial Corporation is working with Japan Tobacco International to increase tobacco production in the Oguz district. [18]

Bangladesh

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. [19] In response to COVID-19, JTI Foundation provided food, hygiene products and protective gear to different parts of Bangladesh. [20]

Malaysia

JTI Malaysia delivered RM 150,000 worth of personal protective equipment to Polis DiRaja Malaysia. [21]

The Philippines

Japan Tobacco International President John Freda donated 20,000 face masks for hospitals in Batangas, Philippines. [22]

Turkey

Japan Tobacco International Turkey was among those companies who participated in the ""We Are Enough With Us"" campaign launched by Turkey's AKP President Tayyip Erdoğan. Tobacco companies in Turkey are forbidden to donate to political campaigns. [23]

United Kingdom

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. [24]

Profitability

In Q1 of 2021, the company’s core revenue of their international tobacco business increased 14.6 percent to USD 2,9 billion (2,866 million) as compared to previous year. The total shipment volume of tobacco increased by 5.8 percent from Q1 in 2020 to 104.1 billion units. Total shipment grew in France, Italy, Germany, UK (where specifically cigarette shipment slightly decreased), Romania, Russia, Iran, Taiwan and Turkey. [25]

Revenue

Fiscal year

in Billions of YEN

2020 [26] 2019 [16]:8 2018 IFRS [27] 2017 IFRS[27] 2016 IFRS[27] 2015 IFRS[27] 2014

(Jan-Dec)[27]

Net Revenue 2,092.6 2,175.6 2,216.0 2,139.7 2,143.3 2,252.9 2,259.2
Net Revenue - International Tobacco 1,172 1,300.0 1,312.3 1,237.6 1,199.2 1,317.2 1,328.0
Net Revenue - Domestic Tobacco 515.7 568.9 621.4 626.8 684.2 677.3 687.4

Acquisitions

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]

Recent acquisitions [31] 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[32]
Karyadibya Mahardhika (Indonesia) acquired by Japan Tobacco International Karyadibya Mahardhika Japan Tobacco International 2017 USD 1 billion [32]
La Tabacarela (Dominican Republic) acquired by Japan Tobacco International[33] La Tabacarela Japan Tobacco International 2016 NA
Fluxo Brasil Distribuidora do Produtos (Brazil) acquired by Japan Tobacco International[34] 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 [35]
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"[36]
Ploom, Inc. (U.S.) acquired by Japan Tobacco International Ploom, Inc. Japan Tobacco International 2015 "undisclosed amount"[37]
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

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. [38]

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.[39] 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.[40] 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.[41]

In August 2017, Japan Tobacco International purchased Indonesia’s PT Karyadibya Mahardhika for USD677 million and [42] 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. [43]

Shareholders

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. [44]

Market Share

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.[45]

According to Euromonitor International data, Japan Tobacco had an 8.4 percent share of the global cigarette market in 2016. [46]

Emerging Markets

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." [47] 

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,”[48]

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."[47]


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." [49]

Factory Openings and Closures

Japan Tobacco International plans to merge Donskoy Tabak JSC with JTI Russia. [50]

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. [51]

In 2020, Tabak-invest LLC began production of Winston XS Fresh Mix cigarettes in Belarus under the Japan Tobacco International license. [52]

Japan Tobacco International plans to launch a global business services centre in Poland that would hire more than 850 people. [53] 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. [54]

Japan Tobacco has 35 international and six Japanese domestic factories. [3]: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. [55] Japan Tobacco International has commenced production of its Winston brand for Greece and another nine countries at the once state-owned Sekap facility. [56]

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.[57]

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. [58]

Dividends

In July 2019, Japan Tobacco International announced the interim dividend of JPY 77 per share. [59]

Products

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 PLOOM TECH in Korea. [60] Japan Tobacco International in Korea said Ploom Tech will be sold at duty-free stores Lotte and Shilla Duty Free from mid-September. [61]

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

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.[62]: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. [45] In a press release, Japan Tobacco announced that it would officially launch Ploom X on August 17, 2021 in stores and online. [63]

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.[62]: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. [64]

Japan Tobacco International announced on that it will enter Portugal with its ‘e-cigarettes’ and aims to operate nationwide by 2020. [65] Japan Tobacco International launched its Logic Compact e-cigarette in Spain in November 2019 after being available in 19 countries. [66] The company halved the price of starter kits for its Ploom S reduced-risk cigarettes. [67] Japan Tobacco International’s Logic Compact electronic vaporizer will be available in 27 countries by the end of 2019. [68]

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

Sales data shows that the four replacement brands introduced by Japan Tobacco following the European Union's prohibition on menthol cigarettes had scooped up more than 5 per cent of the market by the middle of June. The brands are among those now being scrutinised as part of an investigation into the industry by the Health Service Executive, which is examining whether tobacco companies have acted legally in relation to the menthol ban. [69] Despite the 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. [70]

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." [71]

Volumes

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. [27]:34

Japanese Domestic Tobacco

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. [62] 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. [72] For Japanese domestic tobacco, total sales volume excludes sales volume of Japanese domestic duty free, the Chinese business and emerging products.

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. [73]

International tobacco

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

Innovative Product Portfolio

Japan Tobacco Inc said it plans to launch a new heated tobacco device in the second half of 2021. [74]

Japan Tobacco launched Ploom Tech+ with” a new, more compact device from the Ploom Tech+ series. [75] 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. [76] [77] Japan Tobacco International introduced the Logic Compact vape in Canada across Ontario and British Columbia. Logic Compact is a high-nicotine, closed-tank vape. [78] JTI Ukraine announced the withdrawal of its Logic Compact e-cigarettes from the country in December 2020. [79]

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.[80]
Logic PRO Logic Pro is Japan Tobacco International's closed tank system. This pairs pre-filled e-liquid capsules to specific devices.[80]
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.[80]

Sales of Heated Tobacco products in Japan

Price Number of Tobacco Brands Available Available Areas
Ploom Tech [81]

(Japan Tobacco International)

4,000 5 Tokyo, Osaka, Sapporo,Sendai, Yokohama, Nagoya, Hiroshima, Fukuoka
IQOS [81]

(Philip Morris International)

10,980 6 Nationwide
GLO [81]

(British American Tobacco)

8,000 8 Nationwide

Marketing and External Relations

Global Campaigns

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 [82]

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. [83]

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. [84]

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. [85]

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. [86]

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." [87]

Marketing Campaigns

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. [88] 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”. [89]

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.[90]

Sponsorships

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. [91]

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. [92]

Japan Tobacco International President John Freda donated 20,000 face masks for hospitals in Batangas, Philippines in response to Covid-19 . [93]

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.[94]

Japan Tobacco International provides funding to the British Museum’s Asia department. [95] According to TobaccoTactics, Japan Tobacco funded Consumer Choice Center's launch event in 2018. [96] The company is also one of Premier supporters of the British Royal Academy of Art. [97]

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. [98]

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. [99]

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”. [90]

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. [100]

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. [100]

Research and Development

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." [101]

Corporate Social Responsibility

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. [102]

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. [103] 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. [104] 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. [105] 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. [106] 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". [107]

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. [108]

Marketing to Kids

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. [109] 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. [110]

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." [111]

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. [112]

Political Spending

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

Corporate Social Responsibility

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. [113]

Reporting and Regulation

Investigations

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. [114]

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. [115]

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. [116]

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. [117]

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”. [118]

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. [119]

Tobacco Litigation

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. [120]

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. [121] An Ontario court extended an order suspending legal proceedings until March 31, 2021. [122]

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. [123]

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

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

  • Confederation of European Community Cigarette Manufacturers [124]
  • European Smoking Tobacco Association [124]
  • European Cigar Manufacturers Association [124]
  • Business Europe [124]
  • Japan Business Council in Europe [124]
  • British Chamber of Commerce in Belgium [124]
  • American European Community Association [124]
  • Center for European Policy Studies [124]
  • The Kangaroo Group [124]
  • Ambrosetti Club Europe [124]
  • EURACTIV [124]
  • Public Affairs Council [124]
  • Forest EU (Freedom Organisation for the Right to Enjoy Smoking Tobacco) [124]
  • EPICENTER (European Policy Information Center) [124]
  • Consumer Choice Center [124]

In October 2018, Japan Tobacco International rejoined the Association of the Tobacco Industry of Cambodia. [125]

Tobacco Tactics reported a number of tobacco companies, including Japan Tobacco International as 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." [126]. 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. [127]

Lobbying

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. [128]

Bangladesh

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.

 “When respected Cabinet Secretary  became aware if the issue, he stepped in and solved the issue in rapid speed”. [129]


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. [130] Customs, Excise and VAT Commission suggested British American Tobacco and Japan Tobacco International are under investigation for unfair market advantage.[131]

Canada

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. [132]

China

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”. [133]

European Union

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. [134]

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. [135]

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." [136] Japan Tobacco International is one of three full members of Tobacco Europe (previously CECCM). [137]

Forest EU, is funded by Japan Tobacco International, British American Tobacco and members of the European Smoking Tobacco Associations. [138]

Gibraltar

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. [139]

Japan

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. [140]

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. [140]: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. [140]: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. [140]:15

Malawi

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. [141]

Philippines

The government of the Philippines 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), the committee tasked with the implementation of tobacco control law. In 2018, the 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. [140]:10

South Africa

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. [142]

Ukraine

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. [143]

United Kingdom

Philip Morris International, British American Tobacco, Japan Tobacco International, Imperial Brands and Juul are all members if the UK Vaping Industry Association (UKVIA), United Kingdom's leading forum for supporting, developing and promoting the vaping industry. [144]

Ian Paisley of the Democratic Unionist party, held a tea with Japan Tobacco International (JTI) in a parliamentary dining room in July 2017. [145] 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. [146] 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. [147]

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." [148]

Unites States

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) [149]

Lobbyist Hired [150]
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 [151]:

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

Human Resources

Top Employers Institute recognised Japan Tobacco International as a leading employer of the year in three regions - Europe, Middle East and Asia Pacific in 2018 [152] and 2019. [153]

Legal and Crime

Organization/Company Tobacco company relationship Relationship type Evidence of past or present formalized relationship
Raja, Darryl & Loh Litigation Law firm for JT International Tobacco Sdn Bhd Malaysia. [154] 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. [155] 2018
Villaraza & Angangco Law Office (formerly CVC Law Center) Litigation Law firm for Japan Tobacco International Philippines. [154] 2018

Think-tanks & International Organizations

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. [156] 2022
Scottish Grocers’ Federation Lobbying Japan Tobacco International is a Platinum member of Scottish Grocers’ Federation. [157] 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. [158] 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. [159] 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. [160] 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. [161] 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. [162] 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. [163] 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.[164] 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.[165] 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.[166] 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. [166] 2016
Cato Institute Sponsorship

In response to questions from the Guardian, Japan Tobacco disclosed it donated to Cato, but not which years.[166]

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.[166] 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.[166] 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. [166] 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.[166] 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.[166] 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". [166] 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.[166] 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.[166] 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.[166] 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. [167] 2017

Consultancies & Leasing

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. [62]: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. [168] 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. [169] 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. [170] 2019

Marketing, Conferences and PR Companies

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. [171] 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. [172] 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). [173] 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. [174] 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. [175] 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. [176] 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. [177] 2021
Bangladesh Brand Summit 2020 Event Bangladesh Brand Summit 2020 featured Shahriar Amin, the Head of Portfolio at Japan Tobacco International. [178] 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'. [179]

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. [180]

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. [181] 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. [182] 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. [183] Grey’s Beirut team has enlarged its portfolio in the tobacco industry, as it already holds the account of Nakhla Tobacco Company. [183] 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. [184] 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. [185] 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. [186] 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. [187] 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.[188] 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. [189] 2020

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