TOBACCO: JAPAN TOBACCO INTERNATIONAL
JTI demonstrates ‘continued strong commitment’ to global duty free in 2017
Last year was certainly a successful one for Japan Tobacco International, which is targeting further market gains from its global flagship brands. Andrew Pentol discusses the past, present and future with Simon Warburton, General Manager and Vice President Worldwide Duty Free.
F
or Japan Tobacco International (JTI), 2017 was a positive year for a number of reasons and not
just sales growth. The company is committed to
ensuring it is the fastest growing business of its kind and most responsible and sustainably run, and it excelled on both fronts in 2017. Simon Warbuton, General
Manager and Vice President, Worldwide Duty Free tells TRBusiness: “I believe we continued to demonstrate our strong commitment to the global duty free industry, doing our very best to protect not only the category but defend the industry itself. “In addition, JTI continued to
be a true business partner to retail operators, contributing over and above sales growth, business insights and specialist support.” Business sales performance
was also strong, with JTI making important market share gains worldwide with its global flagship brands. These include Winston, Camel and Mevius. He adds: “Results have been pleasing with
particular highlights from Asian markets. As JTI brands such as Mevius continue to grow in domestic markets we clearly see this success translated into the travel retail
environment. This is accelerated by increasing passenger numbers in duty free channels.” The JTI Worldwide Duty Free team
also increased in 2017. “JTI Worldwide Duty Free
continues to attract top talent internally and externally,” emphasises Warburton. Following a successful 2017, JTI
has enjoyed an ‘excellent half- year so far’ with the second half promising continued growth. The likes of Winston, Camel and Mevius are growing their respective global market share, particularly in Asia.
Research investment Its investment in research has also helped to better understand consumers and what they want to buy. He says: “Our investment in research means we have more insights to share with our retail partners, who in turn deepen their understanding of the category. Together, we are in a better position to respond to consumers in key markets.” The importance of implementing
promotions and offering unique products across the DF&TR tobacco sector must not be underestimated. According to data extracted from m1nd-set’s Business 1ntelligence Service (B1s) travel retail data platform, 34% of consumers buy tobacco products (except cigars) which are on promotion. The figure was based on a survey
of nationals and residents from all continents, which also indicated 38% of buyers purchase unique duty free products. Last year, JTI partnered with Dubai
JTI has launched a Camel Caribbean Limited Edition Pack for its Caribbean business.
SEPTEMBER 2018
Duty Free to offer a limited-edition pack of Camel cigarettes (I Camel Dubai Duty Free) as part of an engaging promotion and JTI is continuing to innovate in 2018. Waburton explains: “Travel retail
is about surprising the consumer. We participate in and conduct hundreds of studies each year and our consumers tell us they are looking for quality, value and something a little different in duty free. “We enjoyed working with Dubai
Duty Free on this activity. It was an ideal opportunity to meet the needs of customer and consumer at one of the busiest airports in the world.
Innovation focus “It is important for us at JTI to listen to our customers and consumers to continue to innovate and evolve what we do.” The launch of the Camel
Caribbean Limited Edition Pack for its Caribbean business is an example of this customer and consumer focus in 2018. Warburton adds: “We continue to demonstrate that we are listening to our consumers, reacting to their desire for destination relevant products and innovating with our brands.”
“It is important for us at JTI to listen to our customers and consumers to continue to innovate and evolve what we do.”
Simon Warburton,
General Manager and Vice President Worldwide Duty Free, JTI
TRBUSINESS 67
Above: Last year, JTI and Dubai Duty Free launched a Camel activation for November and December at Dubai International Airport.
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