We sold our position in the third-largest listed tobacco company, Japan Tobacco (TSE:2914, Financial), which has a 17% global share excluding China. Market share in Japan is 61%, but we have grown increasingly concerned about the threat of heat-not-burn products to their market share and, in particular, the IQOS product from rival Philip Morris. This, and the increasing scrutiny of ethical and responsible investors, is likely to limit the potential for multiple expansion.
From the T. Rowe Price Japan Fund (Trades, Portfolio)'s 2019 annual shareholder letter.
