Today: is "Big Tobacco" actually small?

#Transformation. I recently heard that if companies mention this enough times in their external communications, it could positively increase their share price. That’s not what I am seeking to do here, you’ll be reassured.

However, if there was ever a sector that is in transformation, tobacco should be considered at the forefront. While cars are shifting from advanced engineering in gasoline and moving into electric battery propulsion, tobacco is on a completely higher plane of transformation. We now both grow and commercialize what is essentially an agricultural product and conduct advanced research and development in consumer electronics, with a view to reducing harm. This is an outstanding journey.

Did I think, only 10 years ago, that we would be hiring experts in electronics and industrial design? No, I didn’t. And, if that transformation is expected to continue at the same rate, the question that occupies my mind is what will we need to succeed in the next 10 years and beyond? 

For JTI, the transformation is twofold: it is both external, and internal. Externally, how do we respond to the changes in consumer demand to provide potentially reduced-risk products, driven by affordability, social pressure, and of course, health consciousness? Internally, how do we build an organization of like-minded people who will work efficiently, with increased agility and speed, and who see themselves growing in our business?

In both areas, the shift is profound, but we are choosing to transform in our own way, and not simply copy our peers. JTI is not the type of company that wants to, nor needs to, follow the herd. Our unique heritage, culture, and long-term view gives us the space and perspective to think differently.

Indeed, a few years ago, we asked people to describe JTI as if our company was a person and they were meeting “JTI” for the first time. As you can imagine, the responses were diverse, but also many similar. Those in common thought that JTI would not be the loudest, or even the first to strike up a conversation. This person would do more listening than speaking. But importantly, the JTI person would act with integrity, have deep empathy for others, and would want to do the right thing, always.

In JTI, we have decided not to bully, cajole or push people into reduced-risk products – we believe in diversity and that everyone is unique. We passionately believe in choice. The choice of people to live their lives as they want, the choice of the individual to smoke or vape, the choice for her or him to make informed decisions. And, if they choose to smoke or vape, we hope that they will come to us, as we will know them better, and offer them something that they want but can’t get elsewhere. This is reflected in our commercial strategy and future path.

Another thing that came out of the interviews was the fact that JTI was very quiet. Indeed, until recently, this has been the position of the industry. We have previously had a ‘bunker mentality’ – the feeling that “we are damned if we speak” and “damned if we don’t”. So, at JTI, while we have prided ourselves in being ‘humble’, it has in fact sometimes supported an industry perception that we are distant, or even in hiding.

This is a shame, as we have many important things that we need to communicate to the outside world, not least: helping to eliminate child labour in farming, combatting the illegal trade in tobacco, and also communicating about potentially reduced-risk products, among many other things.

I hope to change that. I am humbled by the enormity of the transformation that JTI is embarking on. But I am very excited about this too. In fact, the term “Big Tobacco” does not really apply in the 21st century. Relative to the opportunity ahead of us, we are quite small… but in the process of transformation.

Eddy Pirard