July 2026: JT Expands Processed Food Operations and Business Development Pipeline
Japan Tobacco (JT) is expanding its non-tobacco capabilities, positioning its processed food segment as a complementary growth driver alongside its core tobacco and reduced-risk product operations. JT’s processed food segment operates primarily through its subsidiary TableMark, alongside Fuji Foods and KS Frozen Foods. The division specializes in frozen and room-temperature foods, leading market categories in Japan with products such as frozen udon noodles, packaged cooked rice, frozen okonomiyaki, and specialty seasonings. To support product evolution, JT established the Food Research Institute in 2022 to develop alternative food technologies, including plant-based foods designed to address raw material constraints and environmental sustainability.
Within its non-tobacco business development portfolio, JT is focusing on international market scaling and next-generation consumer research:
– International Expansion: JT is prioritizing the overseas expansion of its processed food portfolio, with a focus on scaling frozen noodle products in North America and leveraging global seasoning processing channels.
– Alternative Protein & Sustainability R&D: The group is building out its plant-based food pipeline through proprietary processing and flavor-matching technologies aimed at global dietary trends.
– Corporate R&D (D-LAB): Operating independently of standard business divisions, JT’s corporate R&D unit, D-LAB, is tasked with identifying and incubating new non-nicotine business seeds, researching consumer wellbeing and future lifestyle demand beyond traditional tobacco categories.
May 2025: Japan Tobacco divests its pharmaceutical business
Shionogi, a leading a Japanese pharmaceutical company in infectious disease drugs, will buy Japan Tobacco (JT)’s pharmaceutical business, including a 55% stake in Torii Pharmaceutical, a consolidated subsidiary of JT listed on TSE. The deal is valued at around ¥160 billion ($1.1 billion).
JT stated that the environment surrounding the pharmaceutical business has become more difficult in recent years – in particular, the hurdle for original drugs to meet the medical needs for diseases, that currently lack treatment, has become higher. Additionally, international competition has intensified and joint R&D activities with external partners have been gradually limited due to JT’s presence in tobacco. Following the transfer of the pharmaceutical business to Shionogi, JT’s business portfolio will consist of two segments: the tobacco business and the processed food business.
JT entered the pharmaceutical business in 1987 and since then made consistent investments in R&D aimed at developing small molecule drugs. In 1998, JT acquired a majority stake in Torii, consolidating it as a group company. Over the years, together with Torii, JT built an integrated value chain for the pharmaceutical business, in which JT conducts R&D while Torii handles manufacturing, sales and promotion activities.
In FY24, JT’s pharmaceutical business reported ¥94.5 billion revenue (3% of the Group total) and ¥9.2 billion operating profit (1.2% of the Group total).
March 2025: D-Wave Quantum and Japan Tobacco completed a quantum-hybrid proof-of-concept
D-Wave Quantum and the pharmaceutical division of Japan Tobacco completed a quantum-hybrid proof-of-concept aimed at accelerating the generative design of small-molecule drug candidates. The collaboration integrated D-Wave’s annealing quantum processor into the training loop of large language models (LLMs), such as transformer-based generative architectures. The joint team evaluated whether quantum sampling could improve the generation of chemically valid and drug-like molecules. The Quantum Processing Unit-assisted LLM training produced molecules with higher quantitative estimates of drug-likeness and a broader range of valid structures compared to baseline classical training alone. The annealing quantum computer was used to generate lower-energy samples, which were then incorporated into the model’s learning process. JT reports that this is the first time annealing quantum computing has been shown to outperform classical methods in generative model training for molecular discovery.
Background:
In addition to transformation to Reduced-Risk Products (Next Generation Products, Smokefree products), major tobacco companies are increasingly exploring growth opportunities in adjacent business areas that go beyond tobacco and nicotine. Three main areas explored are:
1. Cannabis
2. Wellness/Well-being & Stimulation
3. Healthcare (Nicotine-replacement therapies, plant-based vaccines, inhaled and oral therapeutics)
