Japan Tobacco (JT) (TSE: 2914) announced today that the JT Group, through its subsidiary JTI, has entered into a joint venture (JV) with Altria Group (Altria), through its subsidiary PM USA, to market and commercialize heated tobacco sticks (HTS) products in the U.S. with Ploom branded devices and Marlboro branded consumables. The two Groups also signed a long-term, non-binding global memorandum of understanding (MOU) to explore commercial opportunities for a wide range of potentially reduced-risk products (RRP).
“As part of our strategic focus on HTS, we’re very enthusiastic to launch our Ploom brand in the U.S., the world’s largest RRP market in value, through our partnership with the market leader, Altria. We also look forward to entering into a long-term strategic collaboration with Altria to further explore global commercial opportunities in the RRP category. I strongly believe that this cooperation will increase the global harm reduction possibilities for adult consumers and drive incremental value for the JT Group and Altria,” said Masamichi Terabatake, JT Group CEO and President of the Tobacco Business.
The JT Group believes that this newly formed partnership will support its strategic ambition to build a global presence in RRP, through a strong focus on HTS, and drive sustainable growth for all stakeholders of the 4S model. Joining forces with Altria, the leading U.S. tobacco company, to enter the nascent HTS segment in the U.S. will increase growth opportunities for both companies, enhancing the JT Group’s and Altria’s objectives to provide a wide range of harm reduction products to adult consumers around the world.[…]