Japan Tobacco: Business Update

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May 2024: US HQ

Japan Tobacco International (JTI) plans to relocate its US headquarters from Teaneck, New Jersey to Raleigh, North Carolina, bringing more than 100 new jobs to the city. JTI’s new office will open later in 2024 at Kane Realty’s One North Hills Tower at North Hills in Midtown. JTI Leaf Services already contracts with hundreds of tobacco farms in North Carolina and has a large purchasing center in Wilson.

JTI sells Winston, Camel, Mevius and LD in the international markets and the LD brand in the U.S. The Geneva, Switzerland-based JTI was formed in 1999 when Tokyo-based Japan Tobacco acquired the non-US operations of Winston-Salem-based RJ Reynolds. Recall that Reynolds American, now part of BAT group, is still located in Winston-Salem, North Carolina.

JTI follows other Japanese companies, such as Ricoh and Fujifilm, to set up operations in North Carolina – highlighting the increasing business ties between Japan and the US State.

May 2023: Investor Day

Key Highlights1

– JT aims to maximize the top-line and ROI in combustibles to invest in RRPs (with priority on heated tobacco)

– JT realizes “where the money is” – almost a decade after PMI

JT projects heated tobacco to reach 16% of the industry volume and 22% of the industry net revenue in 2035 (bigger than e-vapor & oral tobacco combined)

In this period [2022-35], JT expects heated tobacco to generate $33Bn additional revenue vs. $17Bn by the combustibles and $15Bn by e-vapor and oral tobacco combined (i.e. HTP to generate more than half of the additional industry revenue in the long-term)

– JT expects HnB to double from 2002 to 2008, while JT HnB volume to grow to >6x (leading to mid-teens SoS in key markets, including Japan and Italy)

– JT will invest ¥300+Bn ($2.2Bn) in RRPs in the 2023-25 period – two thirds of which will be on commercialization, mainly to support HnB geographical expansion and share gains

– RRP break-even in 2028; HnB unit revenue: 1.5x cigarettes, HnB unit gross margin: 1.6x cigarettes

Ploom X Update

– Significant improvement in consumer metrics

– In 4 market (Japan, Italy, UK, Lithuania). 10 more markets by the end of 2023. 14 markets next year


  1. https://www.jt.com/investors/results/forecast/index.html ↩︎

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