Japan Tobacco may consider US manufacturing of Ploom devices, executive says
JTI, a subsidiary of Japan Tobacco (2914.T), opens new tab which makes Benson & Hedges and Winston cigarettes, plans to launch its Ploom X heated tobacco device in the United States under a joint venture with Marlboro maker Altria (MO.N), opens new tab.
Heated tobacco devices heat up sticks of ground tobacco without burning them in an attempt to avoid the harmful chemicals produced via combustion. Currently, the companies only plan to manufacture the Ploom X tobacco sticks in the United States.
The devices themselves are mostly manufactured in Indonesia, with components coming from elsewhere, JTI's executive vice president for reduced-risk products, Takehiko Tsutsui, told Reuters in an online interview.
"There might be a possibility to think about assembling in the U.S," he said, after announcing the Japanese launch of a new iteration of Ploom, dubbed Ploom Aura.
However, such a shift could only be considered once Ploom had meaningful sales in the United States and until then, it may make more sense to look at other locations, he said.
U.S. President Donald Trump's threatened 32% tariff on Indonesian imports is currently on pause. Washington hopes its sweeping tariff regime will see manufacturing facilities and jobs return to the United States.
JTI and Altria need authorisation from the U.S. Food and Drug Administration in order to sell Ploom in the United States - a process that can take years.
Tsutsui said the companies are set to submit their FDA application for Ploom X around the middle of this year.
JTI also sells its Logic e-cigarette brand in the United States. The devices it sells are produced in China, Tsutsui said, currently subject to a 30% tariff.
U.S. sales of Logic are relatively small, so the impact of tariffs affecting the brand is "very marginal", he continued. He declined to discuss mitigation actions the company might take for competitive reasons.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
26 minutes ago
- Reuters
Onsemi posts quarterly revenue drop, sees dull third-quarter profit on market uncertainty
Aug 4 (Reuters) - U.S. automotive chipmaker Onsemi on Monday forecast lackluster profit for the third quarter, after reporting a sharp decline in second-quarter revenue, sending its shares down by more than 10%. Sales growth in battery electric vehicles has slowed due to an uncertain economic environment, brought on by global import duties, and elevated borrowing costs in the U.S. Consumers have hit the breaks on big-ticket spending as tariffs threaten to increase the costs of automobiles by thousands of dollars and drive up inflation. This has been forcing automakers to reassess production plans and withhold financial investments, affecting companies such as Onsemi. The company acknowledged during its earnings call that the EV market remains soft, especially in North America and Europe, with recovery being slower than hoped. However, Onsemi said it sees "signs of stabilization" across its end markets, after a prolonged slump in demand due to excess chip supply. The company is among a select group of suppliers providing silicon carbide chips, which are critical for extending the range of EVs. It added that it has not yet seen a broad-based recovery in automotive and expects only low single-digit growth in the third quarter. An end to the $7,500 federal tax credit for electric cars has also cast a cloud over the EV industry's outlook, with some firms expecting a hit to the market growth, opens new tab. Onsemi expects third-quarter adjusted earnings between 54 cents and 64 cents per share, compared with analysts' average estimate of 59 cents, according to data compiled by LSEG. It forecast revenue of $1.47 billion and $1.57 billion for the third quarter, the midpoint of which is slightly above estimates of $1.50 billion. The company's second-quarter revenue of $1.47 billion beat expectations of $1.45 billion, but fell about 15% from a year ago.
Reuters
26 minutes ago
- Reuters
Oil falls as OPEC+ output hike adds to oversupply concerns
NEW YORK/LONDON, Aug 4 (Reuters) - Oil prices fell to their lowest in a week on Monday after OPEC+ agreed to another large output increase in September, adding to oversupply concerns after U.S. data showed lacklustre fuel demand in the top consuming nation. Brent crude futures fell 43 cents, or 0.6%, to $69.24 a barrel by 11:39 a.m. ET (1539 GMT), while U.S. West Texas Intermediate crude declined by 48 cents, or 0.7%, to $66.85 a barrel. Both contracts were down more than 2% earlier in the session and hit the lowest in a week, after declining close to 3% on Friday. The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, agreed on Sunday to raise oil production by 547,000 barrels per day (bpd) for September. The latest in a series of accelerated output increases aimed at capturing market share was in line with market expectations and marks a full and early reversal of the group's largest tranche of output cuts, amounting to about 2.5 million bpd, or about 2.4% of global demand. While the group cited healthy market fundamentals to back its decision, data released by the U.S. government last week showed the weakest gasoline demand in May, the start of the country's summer driving season, since the COVID-19 pandemic of 2020. The data also showed U.S. oil production at a monthly record in May, adding to global oversupply concerns. Oil traders are now hedging for the possibility of further supply increases from OPEC+, with potential discussions to unwind a further 1.65 million bpd of cuts at the group's next meeting on September 7 adding pressure to oil prices. "OPEC+ retains a substantial amount of spare production capacity, and markets are now watching closely to see whether the group will tap into it," StoneX analyst Alex Hodes said. "So far, there are no clear signals that OPEC+ intends to deploy this additional capacity, but the possibility remains on the table," he added. Analysts at Goldman Sachs expect that the actual increase in supply from the eight OPEC+ countries that have raised output since March will be 1.7 million bpd because other members have cut output after overproducing. Investors also continued to digest the impact of the latest U.S. tariffs on exports from dozens of trading partners and remain wary of further U.S. sanctions on Russia. U.S. President Donald Trump has threatened to impose 100% secondary tariffs on Russian crude buyers as he seeks to pressure Moscow into halting its war in Ukraine. Trump on Monday said he will substantially raise tariffs on India over its purchases of Russian oil, after two Indian government sources told Reuters over the weekend that the country will keep buying oil from Moscow despite Trump's threats. That helped limit oil's losses. About 1.7 million bpd of crude supply will be at risk if Indian refiners stop buying Russian oil, ING analysts said in a note.
Reuters
27 minutes ago
- Reuters
Amazon overhauls Wondery podcast studio, cuts 110 jobs
Aug 4 (Reuters) - (AMZN.O), opens new tab is restructuring the Wondery podcast studio by shifting its award-winning narrative podcasts such as "Business Wars" to Audible and consolidating creator-led shows into a new unit, according to a memo seen by Reuters. About 110 employees will be laid off as part of the process, while many Wondery employees will transition to other parts of Amazon, the company said in an emailed statement on Monday. Wondery CEO Jen Sargent will depart the company following a transition period, the memo said. Intense competition in the expensive podcast industry as well as a growing focus on creator-led video content have prompted audio streaming companies including Spotify (SPOT.N), opens new tab to diversify their podcasts as they look to lower costs and attract more users to their platforms. "As video podcasting has grown in popularity, we have learned that creator-led, video-integrated shows have different audience needs and require distinct discovery, growth and monetization strategies compared to audio-first, narrative series," Steve Boom, vice president of audio, Twitch and games at Amazon, wrote in the memo. Wondery was acquired by Amazon in 2021 and has seen podcast revenue quadruple since then as the studio expanded its slate to include video podcasts and creator-driven series, according to the memo. Under the new structure, Wondery's narrative podcast studio - home to shows such as "Dr. Death" and "American Scandal" - along with the Wondery+ subscription service, will move to Audible, the e-commerce giant's audio platform. Its creator-focused podcast team that produces shows including "Mind the Game", "New Heights", and "Armchair Expert" will join a new Creator Services group within Amazon's Talent Services division. This new team will continue to operate the creator-focused podcast studio under the Wondery brand. "By making these changes, we can better support creators in monetizing their content across multiple channels," Amazon said. Bloomberg News first reported on the Wondery overhaul.
