Tobacco Asia

Volume 20, Number 4

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26 tobaccoasia PRODUCT NEWS 产品新闻 Japan Mevius Premium Menthol Option Red Japan Tobacco Inc. (JT) has announced the nationwide launch of three new products from Mevius in late August. Since the name change from Mild Seven to Mevius, JT has been developing Mevius Premium Menthol products featuring its "100% natural menthol"1 proposition. The Mevius Premium Menthol line offers consumers pure refreshing sensation delivered by 100% natural menthol, while "Mevius Premium Menthol Option"2 and "Mevius Premium Menthol Option Yellow"3 lines allow consumers to enjoy flavored menthol, by crushing the aroma-changing capsule. All of cigarettes), as it is only available in limited test markets in Europe and Asia and not expected to come to the United States until 2017 at the earliest. That changed in March, when New York-based PMI presented a number of studies and data from iQOS' international trial markets at the Society for Research on Nicotine and Tobacco Conference and the Con- sumer Analyst Group of New York Conference. Later that month, Cowen Group conducted its own research, surveying more than 100 retailers currently selling iQOS in Tokyo and Mevius Traffic these products so far have been very well received by its consumers. To meet diversified needs of adult smokers, JT is launching three new Mevius Premium Menthol Option Red products with a new aroma-changing capsule developed by JT. Before crushing the capsule consumers will enjoy pure refreshing coolness through 100% natural menthol, which is unique to all Mevius Premium Menthol lines. The capsule itself activates a new "fresh" sensation which consumers have never experienced before. The packaging features the streamline motif of Mevius with red light emitting from the capsule emblem, which represents the mix of pure natural menthol refreshment and new "fresh" aroma sensation. US Premier Manufacturing Introduces Traffic Cigarettes into Circle K The consumer products division of US Tobacco Cooperative Inc. (USTC), Premier Manufacturing of Chesterfield, MO, is now supplying Traffic brand cigarettes to Circle K stores in 40 states. Circle K is a subsidiary of Alimentation Couche- Tard which operates over 4,700 convenience stores in the United States. "We are extremely pleased to be partnering with Circle K," said USTC chief executive officer Stuart Thompson. "We look forward to supply- ing Circle K convenience stores with the highest quality U.S. tobacco products as they continue their growth here. The national roll-out of Traffic cigarettes into Circle K convenience stores was completed in June 2016. Traffic cigarettes will be supported with a national advertising campaign and on-going promotional support in Circle K retail stores. "The combination of high-quality US flue-cured tobacco, manufactured in Timberlake, NC and a value price should make Traffic cigarettes a huge success with Circle K adult age consumers," said Thompson. Six Telling Stats on the iQOS Tobacco analysts such as Bonnie Herzog of Wells Fargo Securities and Vivien Azer of Cowen Group have long speculated about the potential of Philip Morris International's (PMI) iQOS product to revolutionize the e-vapor industry. But until recently, there was little data on the product, which heats actual tobacco instead of liquid nicotine (as with electronic Milan. The early results reveal a strong case for iQOS' revolutionary reputation. Here's six revealing statistics from that data: • iQOS' share of the Japanese cigarette market is 2.4% in less than one year after launching nationally. "Given the strong start iQOS has seen in Japan, we expect that over time Japan will account for approximately 25% of iQOS sales by 2020," Text. • 85% of 50 Tokyo retailers surveyed said they were positive about the long-term outlook for iQOS. "Across a variety of measures, our the potential for iQOS and strong consumer adoption in the early days," said the report, which is consistent with data from Philip Morris. • 90% of these Tokyo retailers described consumer retention of iQOS as "somewhat good," with 80% reporting that consumers have found the heat sticks easy to start. "In large part, this optimism seems to reflect better consumer adoption and retention in Japan," said the report. • 45% of smokers surveyed by PMI said reduced exposure labels (similar to the warning label a FDA-approved modified-risk product might get) meant they would "definitely" or "very likely" use iQOS regularly. • 70% of iQOS users in Switzerland who describe themselves as "fully converted" or "predominantly converted" away from cigarettes to exclusive iQOS use as of December 2015. In Japan, that figure was 57%. "The totality of Philip Morris' clinical evidence gathered to date suggests iQOS approaches a 'gold standard' of cessation," Herzog wrote in a research note on iQOS. • Herzog predicts iQOS could disrupt a 30% share of global combustible cigarette market by 2025: "We believe iQOS represents the industry's first legitimate step toward mainstreaming reduced-risk products and reshaping the global smoking industry and in the process, offering a way to potentially improve smoker health trajectories significantly and rapidly worldwide." VaporFi

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