Tobacco Asia

Volume 19, Number 3

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tobaccoasia 29 NDC TM710e On-Line Tobacco Gauge T E C H N O L O G I E S MEASURE MOISTURE. MEASURE QUALITY. MEASURE FOR SUCCESS. Measured by Commitment CHINA: +86 20 2887 3860 AMERICAS: +1 626 960 3300 EUROPE: +44 1621 852244 ► Comprehensive – measures from very low moistures up to 60% with factory-set calibration ► Proven – performs reliably under any ambient lighting, relative humidity and temperature conditions ► Expandable – can be upgraded to measure nicotine, sugars and even temperature See us at TABEXPO 2015, Oct 20-23 Stand Number A3 Learn more Get the quality advantage. Contact us today! The most accurate and reliable on-line tobacco gauge on the market today. Fewer Smokers, Fewer Sales Naturally enough, a major factor contributing to diminishing sales is the de- crease in the consumer base that has been afflicting the industry for several FY2014 Sales Volume Sales Value* [billion sticks] (% of prev. year) [billion Yen] (% of prev. year) Mar 2015 15.0 (73.5) 320.6 (76.1) Feb 2015 13.7 (94.1) 292.8 (97.4) Jan 2015 13.9 (95.7) 297.6 (99.2) Dec 2014 16.9 (99.6) 361.4 (103.1) Nov 2014 14.4 (92.4) 308.3 (95.8) Oct 2014 16.1 (96.6) 344.8 (100.1) Sep 2014 15.7 (100.0) 335.5 (103.7) Aug 2014 15.7 (92.2) 336.7 (95.5) Jul 2014 16.6 (96.1) 355.8 (99.5) Jun 2014 14.8 (94.6) 316.4 (97.9) May 2014 15.4 (91.1) 329.1 (94.3) Apr 2014 11.3 (71.0) 242.9 (73.6) Table 2. Monthly Cigarette Sales in FY2014 Source: Tobacco Institute of Japan *Approximate exchange rate: JPY100 = US$0.82 years. While long-term smokers – encouraged and perhaps even frightened by ongoing health warnings and anti-smoking campaigns – are quitting while many younger citizens do not pick it up in the first place. Although the pro- portion of smokers among a population of almost 127 million (2015 estimate) is still comparatively sizeable, it has experienced a creeping but steady decline MEVIUS: The Reincarnation of Mild Seven Announced as early as 2012, Japan Tobacco changed the name of its long-standing flagship brand Mild Seven to MEVIUS in 2013. The company explained at the time that each letter of the new brand name conveyed a particular meaning and was not randomly chosen: "M" supposedly represented the first letter of "Mild Seven"; the subsequent letter combination "EV" stood for "evolution, while the "I" was to literally imply "I" (as in "I, myself", in this case referring to the company, Japan Tobacco Inc.). The "U", on the other hand, was to be understood as "you", i.e. the end consumer. And finally, the ending-"S" again represented the "S" in the second part of the erstwhile "Mild Seven" brand name. Tobacco Japan said the main reason for the rebranding was the brand name particle "Mild" in "Mild Seven". The brand was sold globally, and in some overseas markets the use of terms such as "mild" in relation to tobacco products is strictly prohibited, as they're being construed as "misleading". Since more than half of Japan Tobacco's revenues are generated from its overseas operations, the company needed to take action to remove potential risks for its flagship brand, including ossible sales bans in certain countries. While some consumers reportedly were not happy with the name change because the new name was unfamiliar and they felt they'd lost their brand attachment, the company decid- ed to go ahead anyway. As one of the industry's biggest surprises of the year, the rebranding proved successful against all odds, perhaps also because Japan Tobacco invested a lot of money into rigorous product launches – or in this case, re-launches. In the event, Mild Seven in its reincarnation as MEVIUS was able to retain its volume share both at home and abroad.

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