Reynolds American
Encyclopedia
Reynolds American, Inc. is the second-largest tobacco company
in the United States
. Its holdings include R.J. Reynolds Tobacco Company
, American Snuff Company
(formerly Conwood Company), Santa Fe Natural Tobacco Company
and Niconovum AB. It is 42% owned by British American Tobacco
of the United Kingdom.
Reynolds American's subsidiaries manufacture and market a variety of tobacco products, including cigarettes (Camel
, Pall Mall
, Kool
, Winston
, Salem
, Doral
, Misty, Capri
and Natural American Spirit
brands) and moist snuff (Grizzly and Kodiak
brands).
In 2010, Reynolds American's operating companies sold about 28% of all cigarettes sold in the U.S.
In July 2004 the U.S. business of British American Tobacco
(Brown & Williamson
) was combined with that of R.J. Reynolds Tobacco Company
(R.J. Reynolds), under the R.J. Reynolds name. R.J. Reynolds and Brown & Williamson were the second and third-ranking U.S. tobacco companies prior to the combination. When they combined, R.J. Reynolds became a subsidiary of Reynolds American, with BAT holding a 42% share of RAI. Santa Fe Natural Tobacco Company, which manufactures the additive-free Natural American Spirit brand of tobacco products, also became a subsidiary of Reynolds American at that time.
Prior to becoming RAI operating companies, both R.J. Reynolds and Santa Fe were part of R.J. Reynolds Tobacco Holdings, Inc., which traded on the New York Stock Exchange
as RJR. RJR became a subsidiary of RAI in July 2004. R.J. Reynolds was established as a tobacco company in Winston-Salem, North Carolina in 1875.
In 2006, Reynolds American expanded into the smokeless tobacco category, with the acquisition of Conwood, the second-biggest smokeless tobacco company in the United States. Conwood manufactures and markets moist and dry snuff, loose leaf, plug and twist chewing tobaccos. At the time of the acquisition, 70% of Conwood's sales came from the growing moist-snuff segment, with the Grizzly brand showing the fastest growth. Grizzly’s continued growth since 2006 has made it the best-selling brand in the moist-snuff category.
In 2008, RAI was recognized as a leader in corporate sustainability by being added to the membership in the 2008-2009 Dow Jones Sustainability North America Index
(DJSI North American). RAI is the only U.S. tobacco company and one of 125 North American companies on the index. Selection for the Index is based on performance in a number of economic, environmental and social criteria.
The Wall Street Journal
reported in November 2009 that Reynolds American intended to buy Sweden
-based Niconovum AB, a maker of products such as nicotine gum
, for $44.5 million.
The deal was completed in December.
Former Chairman, President and CEO of Reynolds Tobacco Daniel "Daan" Delen assumed the positions of President and CEO of Reynolds American on March 1, 2011, after former president, CEO and chairwoman Susan Ivey
announced she would retire as chairwoman November 1, 2010 and as President and CEO effective February 28, 2011.
Tobacco industry
The tobacco industry comprises those persons and companies engaged in the growth, preparation for sale, shipment, advertisement, and distribution of tobacco and tobacco-related products. It is a global industry; tobacco can grow in any warm, moist environment, which means it can be farmed on all...
in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. Its holdings include R.J. Reynolds Tobacco Company
R.J. Reynolds Tobacco Company
The R. J. Reynolds Tobacco Company , based in Winston-Salem, North Carolina and founded by R. J. Reynolds in 1875, is the second-largest tobacco company in the U.S. . RJR is an indirect wholly owned subsidiary of Reynolds American Inc...
, American Snuff Company
American Snuff Company
The American Snuff Company, formerly Conwood Sales Company LLC, is a division of Reynolds American, a major tobacco company. The American Snuff Company was acquired by Reynolds American in mid-2006 for $3.5 billion in cash. It now generates nearly 7% of Reynolds American's annual revenue. The...
(formerly Conwood Company), Santa Fe Natural Tobacco Company
Santa Fe Natural Tobacco Company
The Santa Fe Natural Tobacco Company is a tobacco manufacturer based in Santa Fe, New Mexico, best known for its production of the Natural American Spirit cigarette brand....
and Niconovum AB. It is 42% owned by British American Tobacco
British American Tobacco
British American Tobacco p.l.c. is a global tobacco company headquartered in London, United Kingdom. It is the world’s second largest quoted tobacco company by global market share , with a leading position in more than 50 countries and a presence in more than 180 countries...
of the United Kingdom.
Reynolds American's subsidiaries manufacture and market a variety of tobacco products, including cigarettes (Camel
Camel (cigarette)
Camel is a brand of cigarettes that was introduced by American company R.J. Reynolds Tobacco in the summer of 1913. Most current Camel cigarettes contain a blend of Turkish tobacco and Virginia tobacco. Early in 2008 the blend was changed as was the package design.-History:In 1913, R.J...
, Pall Mall
Pall Mall (cigarette)
Pall Mall cigarettes are a brand of cigarettes produced by R. J. Reynolds Tobacco Company in Winston-Salem, North Carolina, and internationally by British American Tobacco at multiple sites.- History :...
, Kool
KOOL (cigarette)
KOOL is a brand of menthol cigarette currently produced by the R. J. Reynolds Tobacco Company, introduced in 1933, that has marketed itself towards the "sophisticated man". Originally introduced as an unfiltered "regular" size cigarette, filtered 85 mm king-size versions were later added to...
, Winston
Winston (cigarette)
Winston cigarettes are manufactured by R.J. Reynolds Tobacco Company or its newer incarnation as RJR Nabisco and/or its affiliates.The brand was introduced in 1954, and became the best-selling brand of cigarettes in the United States...
, Salem
Salem (cigarette)
Salem is a brand of cigarettes introduced in 1956 by the R.J. Reynolds Tobacco Company as the first filter-tipped menthol cigarette. Its name derives from Winston-Salem, North Carolina, the city where RJR was founded and headquartered...
, Doral
Doral (cigarette)
Doral is a savings brand cigarette introduced in 1969 by R.J. Reynolds Tobacco. It is available nationwide in the United States.Doral's current slogan is "Premium Taste, Guaranteed." An early slogan was "Taste me!"; this was lampooned by George Carlin in a stand-up routine.-Variations:All are...
, Misty, Capri
Capri (cigarette)
Capri is a brand of cigarette manufactured by R.J. Reynolds. Introduced in 1987, it is the first widely-available cigarette having an extremely slim shape, at 17 mm in circumference and 100 mm in length, specifically marketed towards women as a way to increase or enhance their sexual...
and Natural American Spirit
Natural American Spirit
Natural American Spirit is a brand of cigarette and tobacco products manufactured in the United States by the Santa Fe Natural Tobacco Company, a wholly owned independent subsidiary of Reynolds American, in turn 42% owned by British American Tobacco...
brands) and moist snuff (Grizzly and Kodiak
Kodiak tobacco
Kodiak is a brand of dipping tobacco manufactured by American Snuff Company, a U.S. smokeless tobacco manufacturer that also produces the Grizzly tobacco and Levi Garrett brands...
brands).
In 2010, Reynolds American's operating companies sold about 28% of all cigarettes sold in the U.S.
History
Reynolds American was formed in January 2004 and began trading publicly on the New York Stock Exchange as RAI in August 2004.In July 2004 the U.S. business of British American Tobacco
British American Tobacco
British American Tobacco p.l.c. is a global tobacco company headquartered in London, United Kingdom. It is the world’s second largest quoted tobacco company by global market share , with a leading position in more than 50 countries and a presence in more than 180 countries...
(Brown & Williamson
Brown & Williamson
Brown & Williamson was an American tobacco company and subsidiary of the giant British American Tobacco, that produced several popular cigarette brands. It became infamous as the focus of investigations for chemically enhancing the addictiveness of cigarettes...
) was combined with that of R.J. Reynolds Tobacco Company
R.J. Reynolds Tobacco Company
The R. J. Reynolds Tobacco Company , based in Winston-Salem, North Carolina and founded by R. J. Reynolds in 1875, is the second-largest tobacco company in the U.S. . RJR is an indirect wholly owned subsidiary of Reynolds American Inc...
(R.J. Reynolds), under the R.J. Reynolds name. R.J. Reynolds and Brown & Williamson were the second and third-ranking U.S. tobacco companies prior to the combination. When they combined, R.J. Reynolds became a subsidiary of Reynolds American, with BAT holding a 42% share of RAI. Santa Fe Natural Tobacco Company, which manufactures the additive-free Natural American Spirit brand of tobacco products, also became a subsidiary of Reynolds American at that time.
Prior to becoming RAI operating companies, both R.J. Reynolds and Santa Fe were part of R.J. Reynolds Tobacco Holdings, Inc., which traded on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
as RJR. RJR became a subsidiary of RAI in July 2004. R.J. Reynolds was established as a tobacco company in Winston-Salem, North Carolina in 1875.
In 2006, Reynolds American expanded into the smokeless tobacco category, with the acquisition of Conwood, the second-biggest smokeless tobacco company in the United States. Conwood manufactures and markets moist and dry snuff, loose leaf, plug and twist chewing tobaccos. At the time of the acquisition, 70% of Conwood's sales came from the growing moist-snuff segment, with the Grizzly brand showing the fastest growth. Grizzly’s continued growth since 2006 has made it the best-selling brand in the moist-snuff category.
In 2008, RAI was recognized as a leader in corporate sustainability by being added to the membership in the 2008-2009 Dow Jones Sustainability North America Index
Dow Jones Sustainability Index
Launched in September 1999, the Dow Jones Sustainability Indexes are a family of indexes evaluating the performance of the world’s leaders in sustainability. They are the longest-running global sustainability benchmarks worldwide and have become the key reference point in Sustainability Investing...
(DJSI North American). RAI is the only U.S. tobacco company and one of 125 North American companies on the index. Selection for the Index is based on performance in a number of economic, environmental and social criteria.
The Wall Street Journal
The Wall Street Journal
The Wall Street Journal is an American English-language international daily newspaper. It is published in New York City by Dow Jones & Company, a division of News Corporation, along with the Asian and European editions of the Journal....
reported in November 2009 that Reynolds American intended to buy Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
-based Niconovum AB, a maker of products such as nicotine gum
Nicotine gum
Nicotine gum is a type of chewing gum that delivers nicotine to the body. It is used as an aid in nicotine replacement therapy , a process for smoking cessation and quitting smokeless tobacco. The nicotine is delivered to the bloodstream via absorption by the tissues of the mouth.It is currently...
, for $44.5 million.
The deal was completed in December.
Former Chairman, President and CEO of Reynolds Tobacco Daniel "Daan" Delen assumed the positions of President and CEO of Reynolds American on March 1, 2011, after former president, CEO and chairwoman Susan Ivey
Susan Ivey
Susan M. Ivey is an American business person who is the chairman, president and CEO of Reynolds American, Inc.-Early life and education:...
announced she would retire as chairwoman November 1, 2010 and as President and CEO effective February 28, 2011.