Japan Tobacco Sees No Quick Fix for Heat-Not-Burn Shortage
- Capacity shortage has hampered sales of heated tobacco device
- Delays boost Philip Morris’s market leadership in Japan
Japan Tobacco Inc. Mevius brand cigarettes are arranged for a photograph in Tokyo, Japan, on Monday, Feb. 1, 2016.
Photographer: Kiyoshi Ota/BloombergThe capacity constraints that have dogged the domestic launch of Japan Tobacco Inc.’s heated tobacco device will take a while yet to resolve, according to a company executive, handing a further boost to Philip Morris International Inc. in the world’s most advanced market for next-generation tobacco products.
Japan Tobacco underestimated the level of demand for its Ploom Tech device since releasing the product in March in its home market, Yasuhiro Nakajima, vice president of emerging products, said in an interview. The cigarette maker is spending tens of billions of yen to relieve the capacity constraints that are preventing it from selling Ploom Tech nationwide.