Seizure of Russian Assets Creates a Massive Loss to Fair Value; Wide Moat Remains Intact Elsewhere

Japan Tobacco is the second-largest tobacco company by volume globally, excluding China, with a market share of about 20% (unadjusted for the loss of its Russian assets), according to Euromonitor. Its competitive edge is greatest in its home market, where it holds a commanding 63% cigarette market share. Moreover, the popularity of its leading brands, especially Mevius, extends to other Asia-Pacific countries.