Japan Tobacco (JT) (TSE: 2914) has announced today that it has formed a joint venture with Altria Group (Altria) through its subsidiary, Nippon Tobacco International. The joint venture will market and commercialize heating tobacco stick (HTS) products using Ploom brand devices and Marlboro tobacco consumables in the United States through its subsidiary, PM USA. The two companies have also signed a long-term, non-binding global memorandum of understanding to explore various opportunities to reduce potential risks for their products.
As part of our strategy to reduce the risks associated with heated tobacco products, we are excited to partner with market leader Altria to introduce our Ploom brand in the largest reduced-risk product market in the world, the United States. We also look forward to a long-term strategic partnership with Altria to explore global business opportunities in the reduced-harm product category. I believe this collaboration will increase the possibility of adult consumers reducing harm worldwide, and bring incremental value to both Japan Tobacco Group and Altria," said Masamichi Terabatake, CEO and President of Japan Tobacco Group's tobacco business.
Japan Tobacco believes that this newly established partnership will support its strategic ambition of establishing global influence through a strong focus on reduced-risk products such as heated tobacco sticks, while driving sustainable growth for all stakeholders in the 4S model. Teaming up with leading US tobacco company Altria to enter the emerging market of heated tobacco in the US will provide growth opportunities for both companies and strengthen their goal of providing a wide range of reduced-risk products to adult consumers worldwide.
This joint venture will exist for the long term and establish Horizon Innovations LLC (Horizon) as the exclusive joint venture responsible for commercializing any current and future heated tobacco products developed by either party in the United States. Horizon will commercialize heated tobacco products in the United States under the Ploom and Marlboro trademarks.
Japanese tobacco firm, 日烟国际, will acquire a 25% stake in Horizon to reflect its contribution to the profits of the heated tobacco products. PM USA will have 75% economic interest in Horizon to reflect its strong distribution network and infrastructure, and $150m initial capital contribution. Future investments in Horizon will be allocated based on their respective economic interests. Both 日烟国际 and PM USA will maintain independent ownership of their respective intellectual property, including any IP developed to support future heated tobacco product development by the joint venture.
As part of their joint venture, Japan Tobacco International and PM USA will combine their scientific and regulatory expertise to prepare documents for the US Food and Drug Administration, including the latest version of a pre-market tobacco product application (PMTA) for the Ploom heated tobacco product. The two companies currently anticipate submitting the PMTA for these products in the first half of 2025. Upon authorization of the pre-market application, Japan Tobacco International will provide the heated tobacco devices while PM USA will produce the Horizon heated tobacco consumables. Additionally, Japan Tobacco International and PM USA have agreed on commercial milestones for Horizon, including minimum distribution requirements and cumulative marketing investments.
By establishing this joint venture, we will combine the marketing, innovation, research and scientific capabilities that Japan Tobacco International has developed over the years, with Altria's scientific, U.S. regulatory experience and vast infrastructure, to create a very strong proposition for adult smokers in the United States," said Japan Tobacco International CEO Eddy Pirard.
Apart from their joint venture, Japan Tobacco Group and Altria have announced the signing of a non-binding memorandum of understanding. According to this memorandum, their goal is to establish a strategic partnership to reduce potential market and commercialization risks and enhance their joint development capabilities and geographical coverage. The two companies believe that this cooperation will accelerate global initiatives to reduce the harms of tobacco and bring significant value to their respective businesses.
Statement:
This article is compiled from third-party information and is only intended for industry exchange and learning.
This article does not represent the viewpoint of 2FIRSTS and we cannot verify the authenticity and accuracy of the content. The translation of this article is only intended for industry research and communication.
Due to limitations in translation skills, the translated article may not fully express the same meaning as the original. Please refer to the original article for accuracy.
2FIRSTS is completely aligned with the Chinese government on any domestic, Hong Kong, Macao, Taiwan, and foreign-related statements and positions.
The copyright of compiled information belongs to the original media and author. If there is an infringement, please contact us for deletion.
Disclaimer
This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.
Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.
The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.
This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.
Copyright Notice
This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.
No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.
For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.
AI-Assisted Translation and Editing Notice
Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.
Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.
