Japan Tobacco domestic cigarette sales volume fell 27.1 per cent to 8.1 billion sticks in June, although revenue from those sales decreased only 1.8 per cent, the company said.

In the three months following the 11 March earthquake, which comprise the first business quarter for JT, domestic volume plummeted 48.8 per cent to 18.4 billion sticks. In addition to earthquake-related supply disruptions, JT sales have suffered from a record increase last October in the cigarette excise tax that raised the cost of a pack by as much as 40 per cent. Japan reportedly is considering hiking the levy again to fund the earthquake recovery.
June revenue of JPY 48.7 billion (EUR 438 million) represent almost half of JT first-quarter cigarette sales, which at JPY 100.1 billion fell 31.3 per cent from the same three months in 2010.
JT said it will remove limits on purchase orders for 57 domestic products one week earlier than planned. The limits were imposed after the earthquake and partially lifted in early July.
Products to which Japanese retailers will have unrestricted access beginning 25 July include the Seven Stars and Mild Seven brands. Super-slim menthol cigarettes, the first super-slim product for the top-selling Seven Stars line, will be introduced in late August, the company said. JT’s share of the Japanese market was 50.9 per cent in June, the company said.
Purchase order limits on JT’s remaining 16 domestic products will be removed 1 Aug. JT said it will announce first-quarter earnings on 28 July. (ci)