Japan Tobacco International Strengthens Presence in Caucasus, Threatens Tobacco Control Progress in the Region

Japan Tobacco International (JTI) has announced an agreement to manufacture its cigarette brands in Azerbaijan for export to Georgia. Under the new agreement, JTI’s brands will be manufactured by Azerbaijani cigarette maker Tabaterra, which also produces cigarettes for British American Tobacco and Imperial Brands.

Under the partnership, world-famous brands such as Winston, Camel and Sobranie, sold in Georgia and owned by JTI, will now be produced by Tabaterra in Azerbaijan. The aim of the deal seems to be to provide cigarettes to Georgians faster.[1]The tobacco company’s expansion into the Georgian market threatens recent progress in reducing tobacco use in a country that has had and continues to have one of the highest smoking rates in Europe. Furthermore, the deal contradicts JTI’s claims that the tobacco company supports the United Nations Sustainable Development Goals (SDGs).

Expansion threatens Georgia's tobacco control progress

In 2020, an estimated 29,133 Georgian adults were tobacco users, with the prevalence being particularly high among men: 55,133. While smoking rates in Georgia remain among the highest in the World Health Organization (WHO) European Region, they have been steadily declining since 2000, and this downward trend is expected to continue through 2025.

Part of this continued decline is attributable to changes to the country's tobacco control legislation adopted in 2017, the first measures of which came into force in 2018. The current tobacco control legislation is now considered one of the most comprehensive in the WHO European Region.

A series of new measures were introduced that significantly strengthened the implementation of the provisions of the WHO Framework Convention on Tobacco Control (FCTC). These include the development of smoke-free places, the introduction of plain packaging for tobacco products, including heated tobacco, and a ban on tobacco advertising, promotion and sponsorship, including the removal of product displays at points of sale and a ban on the sale of tobacco products online. It also strengthened the regulation of new tobacco and nicotine products by classifying nicotine-containing vaping products as tobacco products. However, due to strong interference from the tobacco industry, several measures have been delayed, including the legislation on plain packaging for tobacco, which was postponed from January 2018 to January 2024.

A partnership that goes against JTI's commitments to sustainable development

In addition to threatening public health in Georgia, JTI’s new agreement runs counter to its stated commitment to the Sustainable Development Goals (SDGs). In its 2021 Integrated Report, the manufacturer identified nine SDGs to which the manufacturer claims to contribute through its operations. In reality, at least five of these SDGs are being undermined by the manufacturer: Goal 3: Good Health and Well-being, Goal 10: Reduced Inequality, Goal 12: Responsible Consumption and Production, Goal 13: Climate Action, and Goal 15: Life on Land and Sustainable Development. This new agreement is thus likely to aggravate the tobacco company’s negative impact on the SDGs.

On its website, environmental preservation and support for vulnerable populations are the major arguments of Japan Tobacco's corporate social responsibility (CSR) communication. The latter highlights the funding and actions it supports in an image strategy that is all the more essential since legislation prohibits any other form of advertising, promotion and sponsorship.[2]. By publicizing its commitment to CSR and the SDGs, the tobacco company is striving to remain an attractive company for investors and to convince policymakers and the public that it is a socially responsible company. The tobacco company's expansion in the region and the development of cigarette manufacturing highlight the real purpose pursued, which is to make profits. Japan Tobacco's objectives have also been clearly stated in a presentation made to investors in May 2023, one of the slides of which was titled “Fuels: Maximizing Profitable Growth.”

Keywords: Georgia, Azerbaijan, Japan Tobacco International, SDGs, CSR.

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[1] JTI's New Manufacturing Deal Is an Affront to the SDGs and Public Health, Expose Tobacco, published August 10, 2023, accessed August 16, 2023

[2] Tobacco-free generation, Japan Tobacco actively communicates its CSR activities in Japanese media, published October 5, 2022, accessed August 16, 2023