Japan Tobacco International

International tobacco and vaping division of Japan Tobacco Inc

Categories

Pharma and Life Sciences  
Retail and Consumer Goods  

#470

Rank

$38.07B

MarketCap JP

JP Japan

Country

Summary

Japan Tobacco Inc., a tobacco company, manufactures and sells tobacco products, prescription drugs, and processed foods in Japan and internationally. The company operates through four segments: Domestic Tobacco, International Tobacco, Pharmaceutical, and Processed Food. 

It offers tobacco products, such as cigarettes, cigars, pipe tobacco, oral tobacco, waterpipe tobacco, kretek, and fine-cut products under the Winston, Camel, MEVIUS, and LD brands. The company also provides reduced-risk products, including tobacco-infused vapour and heated tobacco products, E-Vapor products, etc. under the Ploom, Logic, Ploom TECH, Ploom TECH+, and Ploom S brands. In addition, it researches and develops, manufactures, and sells prescription drugs for therapeutic areas, such as cardiovascular, renal and metabolism, immunology, and neuroscience. 

Further, the company provides staple food products, such as frozen noodles and okonomiyaki, and frozen and packed cooked rice; ambient processed foods; bakery products; and seasonings, including yeast extracts and oyster sauce. Japan Tobacco Inc. was founded in 1898 and is headquartered in Tokyo, Japan.


History

Japan Tobacco is the successor entity to a nationalized tobacco monopoly first established by the Government of Japan in 1898 to secure tax revenue collections from tobacco leaf sales. In 1904, the government's leaf monopoly was extended completely to take over all tobacco business operations in the nation, including all manufactured tobacco products such as cigarettes. The ostensible reason for the expansion of control was to help fund the 1904–1905 Russo-Japanese War, but because all foreign tobacco interests in Japan at the time were forcibly evicted under the monopolization scheme, this also protected the domestic tobacco business for the following eighty years.

The business operated within the Japanese government as an arm of the nation's Japanese Ministry of Finance until 1949 when the Japan Tobacco and Salt Public Corporation was established to enforce restrictive labour relations policies under the U.S. and allied forces' Occupation of Japan. The Japan Tobacco and Salt Public Corporation remained a complete state monopoly under direct Japanese Ministry of Finance authority until 1985 when Japan Tobacco, Inc. was formed as a publicly traded stock company. 

Periodic incremental sales of shares to the public began in October 1994. Japan Tobacco became two-thirds owned by the Japanese Ministry of Finance in June 2003, and the ministry continued to own 50% until March 2013. It was announced in May 2012 that the government would sell one-sixth of the company's outstanding shares to raise ¥500 billion to finance reconstruction from the 2011 earthquake and tsunami. 

In 2013 the Japanese government disclosed the details of its plans to reduce its equity interest in Japan Tobacco by $10 billion, devoting the proceeds to reconstruction in northeastern Japan. The ministry of finance sold the stock in March 2013, selling about 333 million of the 1 billion shares it owned at that time. The government remains required by law to own at least one-third of JT's stock.

In 2015, JTI acquired the U.S. assets of Reynolds American Inc. for $12.8 billion, making it the third-largest tobacco company in the United States. This acquisition saw JTI become a major player in the U.S. market, with a portfolio of well-known brands including Camel, Winston, and Pall Mall. The acquisition also provided JTI with access to the U.S. e-cigarette and smokeless tobacco markets, allowing it to further diversify its product offering.

JTI has also continued to expand its presence in emerging markets in recent years, with a particular focus on Asia. In 2017, JTI acquired a 90% stake in Bangladesh-based Akij Group’s tobacco business for $1.5 billion, giving it access to one of the world’s fastest-growing tobacco markets. In addition, JTI has established joint ventures in India, Indonesia, and Vietnam, allowing it to capitalize on the growth potential of these markets.

JTI has also invested heavily in expanding its product portfolio in recent years. In 2018, JTI launched its Ploom Tech tobacco vaporizer in Japan, which was followed by a launch in the United States and other international markets in 2019. This product has become a major success for JTI, with its Ploom Tech vaporizers now selling in more than 60 countries. In addition, JTI has recently diversified into the heated tobacco market, with the launch of its Ploom Tech Heated Tobacco product in 2020.

 


Mission

JT's mission is to nurture its internationally recognized brand roster while leading the way in Reduced-Risk Products (RRPs) and new ways of doing business. The company is committed to creating value for its customers, shareholders, and employees by delivering high-quality products that meet the changing needs of consumers.

JT's focus on RRPs reflects its commitment to improving public health by reducing the risks associated with tobacco use. The company has invested heavily in research and development to create innovative products that are less harmful than traditional tobacco products. These products include heated tobacco products and e-cigarettes, which are designed to provide a satisfying nicotine experience without the harmful effects of tobacco smoke.

In addition to its focus on RRPs, JT is also committed to exploring new ways of doing business. The company is constantly seeking new opportunities for growth and innovation, and is willing to take risks to achieve its goals. This includes investing in new technologies, exploring new markets, and developing new business models.

JT's mission is supported by its core values, which include a commitment to excellence, integrity, and respect for diversity. The company strives to maintain high ethical standards in all of its operations and is committed to creating a diverse and inclusive workplace where all employees can thrive.


Vision

JT's vision is to create, develop, and nurture its brands to meet consumers' needs while understanding and respecting the environment and the diversity present in society. The company recognizes that its success is closely tied to the needs and preferences of its consumers, and it is committed to delivering high-quality products that meet their expectations.

In pursuing its vision, JT also recognizes the importance of sustainability and responsible business practices. The company is committed to minimizing its impact on the environment and working to reduce its carbon footprint. This includes initiatives such as reducing packaging waste, promoting recycling, and implementing energy-efficient practices across its operations.

JT also recognizes the importance of diversity and inclusivity in its operations. The company values the unique perspectives and contributions of its employees and is committed to creating a diverse and inclusive workplace where everyone feels valued and respected.
 


Key Team

Mr. Kiyohide Hirowatari (EVP of Corp., Sustainability Mgmt, Pharmaceutical & Processed Food and Representative Director)

Mr. Mutsuo Iwai (Exec. Chairman)

Nobuya Kato (Sr. VP & CFO)

Dinesh Babu Thotakura (Gen. Mang. of Media & Investor Relations Division)

Osamu Hirose (Sr. VP & Gen. Counsel)

Mr. Junichi Fukuchi (SVP, CEO of Japanese Tobacco Bus. - Tobacco Bus. Planning - Tobacco Bus.)

Yoshiyuki Mishima (Sr. VP of People & Culture)


Recognition and Awards
JTI (Japan Tobacco International) was one of the select five companies in the world to receive the Top Employer Global 2015 certification. - the Grand Gold Medal at the Monde Selection in 2020, the highest award for excellence in quality and taste. - the Global Tobacco & Nicotine Forum Best Practices Award for its 'Workplace Culture' program in 2020.

Products and Services

Japan Tobacco (JT) is one of the largest tobacco companies in the world, with a diverse portfolio of products and services.

JT's primary product is cigarettes, and the company offers a wide range of cigarette brands that cater to different consumer preferences and price points. Some of the company's most popular cigarette brands include Winston, Camel, and Mevius. In addition to traditional cigarettes, JT also offers reduced-risk products such as heated tobacco products and e-cigarettes, which are designed to provide a satisfying nicotine experience without the harmful effects of tobacco smoke.

In addition to its tobacco products, JT also offers a range of non-tobacco products and services. One of the company's most notable offerings is pharmaceuticals, which are sold through its subsidiary, JT Pharma. The company's pharmaceutical portfolio includes treatments for a range of conditions, including hypertension, diabetes, and cancer.

JT also offers a variety of lifestyle products and services, such as food and beverages, cosmetics, and apparel. The company's food and beverage offerings include coffee, tea, and soft drinks, while its cosmetics portfolio includes skin care, hair care, and fragrance products. JT's apparel business includes brands such as Plokhov and Tibi, which offer high-quality clothing and accessories for men and women.


References
Japan Tobacco International
Leadership team

Mr. Kazuhito Yamashita (Sr. VP of Corp. Governance & Compliance and Director)

Mr. Naohiro Minami (Exec. VP of Fin. & Corp. Communications and Representative Director)

Industries

Pharma and Life Sciences

Retail and Consumer Goods

Products/ Services
Manufacturing, Pharmaceutical, Tobacco
Number of Employees
Above 50,000
Headquarters
Geneva, Switzerland
Established
1898
Company Type
Public Limited Company
Company Registration
SEC CIK number: 0001686473
Net Income
1B - 20B
Revenue
Above - 1B
Traded as
2914.T
Social Media

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Fri Feb 23 2024
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