Tobacco value chain

Overview

Our value chain is large and diverse, with more than 43,500 directly contracted farmers supplying us with half of our tobacco leaf requirements, the other half coming from merchants, and around 26,500 suppliers providing non-tobacco materials and other products and services, including for Reduced-Risk Products. Managing sustainability across our value chain is a complex operation, which includes, among other things, manufacturing, processing, warehousing, and distribution.

Tobacco business value chain

Tobacco business value chain

JT Group’s supply chain is managed in accordance with the JT Group Responsible Procurement Policy and the JT Group Principles in Leaf Tobacco Production.

All our tobacco leaf growers, both directly and indirectly contracted, must adhere to our Agricultural Labor Practices (ALP). In our international tobacco business, suppliers of non-tobacco materials and other products and services are managed by the newly established Supplier Life Cycle (SLC) management tool.

In the Japanese market, tobacco leaf growers are now also subject to ALP, and this program was rolled-out in Japan in 2017. Suppliers of non-tobacco materials and other products and services are subject to screening against the JT Group Supplier Standards, with key suppliers being monitored regularly through surveys. We also encourage our suppliers to share information and we educate them to raise their awareness.