Japan Tobacco will invest 300 billion yen ($2.25 billion) in its NBH, including 200 billion yen to market the product internationally, Nikkei Asia reported .
“Last year, we were unable to invest because there were not enough [heated tobacco] equipment due to semiconductor shortages.” JT President Masamichi Terabatake was quoted as saying: “By 2023, our procurement is back on track, and compared to last year, we Can secure more than twice the supply of Japan.”
Japan Tobacco JT plans to launch its new Ploom X machine in more than 10 countries this year, with coverage in at least 20 new countries by the end of 2024. Currently only available in Japan and the UK, the product will debut in Italy this month.
To gain visibility, Japan Tobacco JT will invest in pop-up stores and digital sales. It will develop flavors that match the tastes of each market.
In the US, Japan Tobacco JT has a joint venture with Altria Group. The partners will seek clearance from the Food and Drug Administration to bring Ploom to the U.S. market by early 2025.
Although Japan Tobacco JT’s HNB unit is currently in the red due to forward investments, the company expects to turn a profit in 2028 due to overseas growth.
JT Japan Tobacco will also invest in research and development, seeking to develop second and third generation Ploom X devices.
Global cigarette sales fell 1.5 percent last year, JT said. In contrast, the global market for HNBs grew 17 percent last year to $33.4 billion, according to Euromonitor International.
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