Japan Tobacco to slash cigarette lineup
Japan Tobacco Inc. said Monday it will reduce its range of cigarette brands to around 80 from 108 by the end of March 2009, to focus more on profitable brands in response to falling cigarette demand in the country.
Japan Tobacco will review the price composition of its lineup and reduce the number of brands to around 80 under its medium term business plan through fiscal 2008, Senior Vice President Yoshihisa Fujisaki told a news conference.
Japan Tobacco has launched more than 10 new brands every year since fiscal 2003 to prepare for the setback that was expected to follow the expiry of its domestic manufacturing license for the popular Marlboro brand in April 2005.
But the firm has reviewed its product strategy and decided to limit new product releases for October this year to five brands, of which four will be premium products priced from 320 yen to 350 yen per pack.
Japan Tobacco will launch the four products in specific regions and sound out consumer reactions before deciding whether to sell them in other areas as well.
The new products include the "Sakura" luxury brand, priced domestically at 350 yen, which will be marketed in southwestern Japan, Italy and France.
