In JT Group’s Business Plan 2018, we redefined Emerging Products as Reduced-Risk Products (RRP). RRP are products that have the potential to reduce the risks associated with smoking. Health risks associated with smoking are believed to be caused primarily by potentially harmful constituents found in smoke from burning of tobacco. We believe therefore that RRP, which do not involve combustion or smoke, have risk reduction potential. We believe that RRP offer real benefits to consumers, society and for our business. It is therefore our duty to develop RRP with demonstrable risk reduction potential that satisfy consumer expectations. We market them as alternative choices for existing adult smokers. By providing easy to understand and easily accessible factual information about RRP, we allow adult consumers to make informed choices from our full portfolio.
JT Group Committed to reducing health risks
Currently, there are no globally agreed standards for assessing risk reduction of tobacco products and e-cigarettes among the scientific community or the regulators, although some countries have set guidelines in this field.
Our Group has engaged in research and development of evaluation methods that would provide scientific evidence of risk reduction through RRP. We will continue with our studies and communicate our progress via our science website - JT Science.
Our RRP portfolio
The RRP market is comprised of several categories. We offer product choice in T-Vapor (Heated Tobacco and Tobacco Infused-Vapor), and E-Vapor (e-cigarettes*1).
Heated Tobacco has an affinity with tobacco and consumer behavior similar to traditional tobacco smoking, while E-Vapor is often characterized by its usability. The Tobacco Infused Vapor is a hybrid of these two categories.
As for T-Vapor (tobacco vapor) products*2, we currently have Ploom TECH, which is a Tobacco Infused Vapor product, available in four markets including Japan. We are currently upgrading existing Ploom TECH products and are working on the development of a heated tobacco product, which heats at a high temperature. Our E-Vapor focus is on our Logic branded e-cigarettes, which are sold in markets such as the USA, UK, France, Ireland, Belgium, Italy, Germany, Russia, South Korea, Greece and in a number of airports (World-Wide Duty Free).
To ensure ongoing business success in the RRP sector, and to keep meeting and exceeding consumer demands, our approach is to deliver new and inspiring RRP as well as driving the development of technologies.
Consumer electronics, involving the use of batteries, is a new area for our business. We plan to invest time and effort to ensure that best practices are applied.
- * 1 E-cigarettes are electronic devices that contain a typically nicotine-based liquid. The liquid is heated electronically and released as a vapor. There is no combustion involved. ‘Logic’ is our flagship e-cigarette brand.
- * 2 T-Vapor products, unlike e-cigarettes, contain tobacco and create a tobacco-enriched vapor that can be inhaled. Importantly, the tobacco is not combusted during the use of such products.
Our progress in 2017
In 2017, we experienced another year of strong performance with Logic e-cigarettes in terms of geo-expansion and rolled out Ploom TECH to new retail outlets in Tokyo, while introducing it in Switzerland, the USA and Canada.
After just one month, Ploom TECH enjoyed outstanding sales in the Swiss market, with a fast uptake of this new product.
In the USA, Ploom TECH is available under the name ‘Vapeleaf’*. Vapeleaf has been introduced into four states, including New York, Texas, New Jersey, and Florida.
In July 2017, we also launched ‘JT Science,’ a dedicated website that showcases scientific progress in the realm of Reduced-Risk Products. This comprehensive website is a valuable resource to inform, educate and collaborate with all those interested in learning about the science behind RRP - from consumers to scientists and the regulatory community.
Visit www.jt-science.com for more.
- * In the USA, Ploom TECH is sold by Logic Technology Development LLC, a member of the JT Group.
Latest developments in RRP regulation
We witnessed two key regulatory developments in 2017. Firstly, the US FDA released a guidance for industry, providing an extension of compliance deadlines for ‘newly deemed’ products, such as e-cigarettes. As a result, manufacturers have been given an additional four years to submit applications to sell these products in the US. Secondly, several EU countries included reduced-risk related provisions in their national legislations to lay down requirements to substantiate reduced-risk claims for the novel tobacco products.
The JT Group remains committed to working with regulatory authorities, public health bodies, and the scientific community to create the best possible frameworks allowing these products to reach their full potential.
Disposal and recycling of electronic products
E-cigarettes and Ploom TECH products contain physical components that require responsible waste management. While it remains a challenge, we continue to investigate more sustainable solutions for recycling and waste management.
Currently, we encourage consumers to dispose of these products responsibly. Depending on the market, dedicated recycling schemes allow consumers to return items to points of sale, or to JTI either directly or via a specialist collaboration partner/organization, to be recycled responsibly.
The Ploom TECH online store (in Japan) provides disposal guidelines, as do the local Ploom and Logic websites. In Japan, following a pilot recycling program in Fukuoka in 2016, we carried out a second pilot program in November 2017. Recycling boxes were sent out to almost 16,000 people who purchased Ploom TECH online. The boxes can take up to 10 cartridges and 50 capsules.
＊Reduced-Risk Products (RRP) are products with the potential to reduce the risks associated with smoking.