Logic Turns Compact

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JTI’s Logic range of vaping products is known for its sophisticated quality and has been a success in the world’s most important vaping markets. Now the company is in the midst of a global roll-out of the even more convenient, pocket-sized Logic Compact. TOBACCO ASIA takes a closer look.

By Thomas Schmid

While the development of entirely new technology and products may generally involve substantial r&d efforts that sometimes carry on for years, coming up with Logic Compact took just over eight months from concept stage to product readiness and the device’s subsequent pilot launch in the UK, according to Japan Tobacco International (JTI). Logic Compact’s speedy market readiness, of course, benefitted from the circumstance that its design was adapted and tweaked from an already existing product platform. “In technology-driven industries, speed to market is key,” says Xavier Lubino, r&d RRP* strategy & innovation vice president. Since making its first appearance in the UK in August 2018, Logic Compact has accordingly debuted in a quite extensive line-up of further territories (see table).

The consumer: always at the center

But it is not only speed that counts. Consumer trends are just as important. “The consumer is at the center of everything we do. We develop our portfolio based on consumer trends, from cig-alike devices like our Logic Power and Logic Curv to pen formats like the Logic Pro, which at the time actually was one of the first movers in this segment worldwide,” confirms Lubino. “And now Logic Compact answers consumers’ demand for a pocket-sized device,” Ignacio Aguilera, RRP strategy & planning vice president adds, highlighting the fact that user-friendly, smaller, closed-tank system devices are topping the consumer preference list in practically all mature vaping markets these days.

Even the product’s name reflects this, as the suffix “Compact” communicates the device’s pocked-sized design. Consequently, JTI’s latest marketing campaign for Logic Compact carries the tagline, “In your hands”. Not a company that simply rests on its laurels after a successful product launch, JTI has in the meantime also kept busy augmenting the Logic Compact line with additional consumer choices. “Only six months into the launch of Logic Compact, we have already introduced new flavors and device colors, and we are also planning device accessories. Furthermore, the team is preparing steps to working on the next-generation version,” discloses Lubino.

The latest step in commercialization

The release of Logic Compact is of course only JTI’s latest marketing move in a commercialization journey centering on their reduced-risk products (RRPs) category that already began in 2010. “Over the past eight years, we have pursued a deliberate, focused approach to geo-expansion. Today our [RRP] portfolio includes both e-cigarettes and heated-tobacco [HNB] products and we are present in 19 markets worldwide, which together account for more than 85% of the global vaping products category value,” claims Aguilera. As part of the Logic branded group of vaping products, Logic Compact has since its UK launch also been introduced in a further eleven countries.

“And there will be a couple more to follow between now and the end of the year,” Aguilera says.

Pilot launch in the UK

Before JTI launches an RRP in any given market, careful consideration is given to a complex set of factors, including trends, market viability, and the regulatory environment. This also held true in the case of Logic Compact; although selecting the UK as the device’s pilot market was a relatively easy and – please forgive the pun – logic decision: “The United Kingdom is one of the world’s most advanced vaping markets. After having introduced the Logic Pro there earlier, the local JTI team was adamant that Logic Compact would satisfy the strong consumer demand for even more convenient, handheld small devices in the newborn ‘pod’ class, perpetuating the Logic success story,” elaborates Aguilera.

Hello, Romania!

Then, on January 7, 2019, Logic Compact made its debut on the opposite side of Europe, in Romania’s capital, Bucharest. JTI Romania had expressed a strong desire to take competitive advantage by being the first of the multinational tobacco companies to enter the country’s RRP category in the e-cigarette segment. And so it was. The well-orchestrated move helped JTI to effectively differentiate itself from its competitors, all of whom had opted to instead spearhead HNB products in the country. “Romania is now the second country to write the next chapter of the international [Logic Compact] roll-out. Deeply rooted in our Japanese heritage and leveraging on our global expertise, quality is at the heart of all we do. We will adhere to the exact same high standards when now entering the vaping category in Romania,” stated JTI Romania’s general manager, Mark Rock, in a press release at the time.

The first ME territory: Kuwait

A slew of other European territories have subsequently also seen the Logic Compact roll-out in rather quick succession. But the device’s first appearance in Asia only occurred at the end of April 2019, when it was officially launched in Kuwait. On the occasion, JTI Middle East’s general manager, Graham Gibbons, said: “This is an exciting launch for JTI as there is huge growth potential for the vaping market in Kuwait. Our reduced-risk products category offers innovative solutions to meet the changing needs of our customers. For residents of Kuwait who are looking for an alternative to cigarettes, Logic Compact is a premium, stylish product that’s simple, convenient and easy to use.”

But why Kuwait?

As always at JTI, it also was a matter of thorough deliberations to launch in Kuwait. Firstly, the small but wealthy country on the Persian Gulf has seen growth in the RRP segment in recent years, with a massive consumer shift to closed-tank pod devices in 2018, according to Roger Hambleton, RRP brand manager Middle East. The popularity surge for RRPs is probably linked to the circumstance that Kuwaitis have always been extremely avid smokers, lighting up a statistical average of 24 cigarettes per head daily.

“So there has emerged a genuine desire for RRPs [in Kuwait] and locals hold a strong belief in the potential health benefits of vaping,” says Hambleton. Despite that, the distribution of vaping devices is still very limited in the country. RRPs are only available at some petrol stations, as well as in a number of vape shops located in two small areas of Kuwait City. “Due to that limited availability, we recognized a key need for consumers; a closed-tank pod system that they can buy anywhere,” Hambleton elaborates. And that is exactly what happened with the Logic Compact launch.

Advocating regulated markets in the ME

Despite increasing consumer demand, authorities in a slew of Middle East countries are still hesitant to allow vaping products. Many markets are not regulated at all or have outright bans in place. “We advocate for open and regulated markets, because adult consumers should have the opportunity to opt for alternatives to [conventional] smoking,” says Denis Fichot, RRP corporate affairs director. “However, starting from comprehensive product standards, a proportionate and evidence-based legislative framework is to protect consumers by stipulating high quality and safety levels and thus create a level playing field for competition amongst a broad spectrum of manufacturers.” The UAE, for instance, has just been adopting product standards, thereby legalizing vaping products as of April 2019.

The rest of Asia: complicated

The situation in the rest of Asia (and by extension, Asia-Pacific) is even more complicated than in the Middle East. Apart from a few exceptions such as Japan – the world’s biggest vaping market with about 66% of the global t-vapor segment value (although e-cigarettes are still banned) - and South Korea, the region is extraordinarily restrictive when it comes to vaping.

A long list of countries have either banned vaping devices altogether or are enacting very stringent controls. The latest East Asian territory that currently considers a draft bill for banning vaporizers and HNB devices alike is Hong Kong, for example. Meanwhile, the whole of Southeast Asia is almost universally averse to vaping, too.

So how is JTI handling that rather hostile landscape, especially with regards to Logic Compact? “Our [legal] experts are closely monitoring the regulatory situation and developments in the region, and the picture is diverse. Some countries - like New Zealand - have lifted the ban; others - such as Malaysia - are considering lifting it, while in yet many others the outright ban persists,” explains Fichot. However, the reality across Asia is that in spite of all bans there exists strong demand for vaping products nevertheless. That causes gray markets to flourish, fueled by illegal imports of cheap uncontrolled products.

“To protect consumers from hazardous and harmful products we would prefer to see more markets lift their bans, and we support proportionate and evidence-based vaping regulations,” Fichot says. “[Such regulations] start with and include strict product safety and quality standards.”

Logic Compact: modern and trendy

Logic Compact is a modern vape with pre-filled, closed-tank system liquid pods that magnetically attach to the sleek, pocket-sized device. Coming in trendy metallic colors and being equipped with a long-lasting 350mAh battery, the product’s user-friendly, pocket-sized design provides a high vapor volume, making it a viable alternative to traditional cig-alike and refillable devices. “In terms of design and engineering the team invested significant efforts into Logic Compact, making it better and more convenient than similar competitor vape pod products,” Xavier Lubino claims.

Indeed it is the more “behind-the-scenes” technical details that let Logic Compact stand out. For example, its pressure drop “is closer to a cigarette-like experience,” according to Lubino. Optimized internal airflow and the carefully designed mouthpiece also help create an outstandingly pleasant vaping experience. Additionally, JTI has only recently launched a nicotine salt formulation for selected markets to complement the product’s conventional e-liquid portfolio. “E -liquids containing nicotine salts can provide a sensory experience which some consumers perceive as more enjoyable and satisfying,” Lubino explains. “Logic Compact delivers the perfect combination of flavor, power, simplicity, and style, making it a unique device that fully meets consumer needs.”

Logic Compact: An Overview

The device is presently available in six colors: slate grey, steel blue, rose gold, scarlet red, emerald green, and champagne gold.

There are two types of e-liquids, pre-filled into disposable pods that magnetically click into the device module:

- Conventional e-liquid with nicotine concentrations of 0, 6, 12, and 18 mg/ml (in EU TPD2 markets)

- Nicotine salt e-liquid with nicotine concentrations of 34 and 58/59 mg/ml nicotine (in selected markets)

(The nicotine strengths available in any given territory are always decided under the sole discretion of the respective JTI market organization.)          

The current flavor portfolio is grouped in accordance with the e-liquid type:

- Conventional e-liquid: tobacco, menthol, berry-mint, cherry, strawberry

- Nicotine salt e-liquid: tobacco, menthol, mixed berries, caramel-banana

Pods are not refillable and only Logic Compact branded pods fit into the Logic Compact module. Battery charging is accomplished with a charger cable, which is part of each starter kit and like the pod itself clicks into place magnetically. One full charge of the in-built 350mAh lithium-ion battery is good for approximately 200 puffs*. A single LED light indicates battery status. In line with current trends, Logic Compact is easy to operate and doesn’t require any complicated calibrations or settings. The device activates automatically whenever a puff is taken.

*Actual amount of puffs will depend on the user’s personal vaping behavior.