D-Spec Sales Momentum Pushes Two Test-Market Cigarettes to Nationwide Sales
Tokyo, August 10, 2005 --- Japan Tobacco Inc. (JT) (TSE: 2914) announced today that, on September 1, 2005, it would expand the sales area of two D-spec products, which were launched in February 2005 within a limited sales area, to nationwide coverage. Both "Seven Stars Revo Lights Menthol Box," and "Lucia Citrus Fresh Menthol One" have received high marks and sales momentum is continuing.
"Seven Stars Revo Lights Menthol Box" was launched in Nagano and Gunma prefectures where the product gained a 0.7 percent market share (as of June 2005), largely surpassing JT's initial targets and breaking a record for sales in the 300yen or above segment for new products. "Lucia Citrus Fresh Menthol One" was launched in Aichi prefecture where it gained a 0.34 percent market share (as of June 2005), enjoying solid sales since its launch. In addition, consumers nationwide are now beginning to encourage JT to launch a 1mg tar version of a Lucia brand family product.
"D-spec," reduced odor segment products (known as Less Smoke Smell products in abroad), incorporate the company's odor-reducing technology in response to consumer demands for a reduction in the unpleasant smell of smoke. After six years of research and development efforts, JT introduced this new and innovative technology to mask the unpleasant odors. And, in its latest medium-term management plan, "JT PLAN-V," JT stated that the company would, as part of its top-line growth strategies, create a new segment - reduced odor products heralded by "Lucia Citrus Fresh Menthol." Since its announcement, D-spec products have gained a solid share in the Japanese market in line with "JT PLAN-V." In addition, with very encouraging results in Japan, "Lucia Citrus Fresh Menthol" has since been introduced to the Russian and Korean market and "Lucia Citrus Fresh Menthol One" has been introduced to the Korean market. This D-spec momentum has allowed the company to take increased market share back from competitors.
With the nationwide sales expansion for these two products, five D-spec products will be available nationwide and six other D-spec products remain available in limited sales areas. Taking advantage of the nationwide sales expansion, the company will now redesign "Lucia Citrus Fresh Menthol One" to make the brand more attractive to consumers while differentiating the product from other offerings in the Lucia brand family.
Japan Tobacco Inc. is the world's third largest international manufacturer of tobacco products. The company manufactures internationally recognized cigarette brands including Camel, Winston, Mild Seven and Salem. Since its privatization in 1985, JT has actively diversified its operations into pharmaceuticals and foods. The company's net sales were JPY 4.664 trillion in the fiscal year ended March 31, 2005.
