JAPAN
Demand for British American Tobacco’s Glo tobacco heating devices has overwhelmed its supply in test markets here.
Japan has proven to be a perfect testing ground for alternative products as e-cigarettes are illegal due to the pharmaceutical regulation on nicotine-laced liquid.
BAT started selling Glo at the price of 8,000 yen (about US$70) in the northeastern city of Sendai last December. Customers were reportedly camping outside approximately 600 convenience stores in the city and the Glo flagship store to be the first in line at open in the first week of sales.
Nami Uehara, a brand marketing official at BAT Japan, said, “We are seeing very strong sales. It’s much beyond our expectations.”
Philip Morris also ran out of its IQOS devices in early March in Japan, despite doubling its supply.BAT and Philip Morris have gained a head start on Japan Tobacco Inc. which has about 60% of the total cigarette market in Japan. JTI estimates that its cigarette volumes will decline 9.6% in 2017 and plans to launch its Ploom Tech tobacco-based electronic cigarettes in June.