Tobacco Companies: Reynolds American Inc.

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Reynolds American Inc. is a holding company with multiple subsidiaries like R. J. Reynolds Tobacco Company, American Snuff Company, Santa Fe Natural Tobacco Company, and Niconovum. Reynolds American Inc. also manages various licensed brands like Dunhill, Captain Black, and State Express 555. The company and its subsidiaries operate in manufacturing and selling of many tobacco products in United States and international markets. Each of the subsidies has their own brand of products that they manage. The RJR Tobacco manufactures cigarettes under the brand names of Camel, Pall Mall, Winston, Kool, Doral, Salem, Misty, Capri, and Camel Snus, a smoke-free tobacco product. The American Snuff segment provides smokeless tobacco products, such as moist snuff under Grizzly and Kodiak brand names. The Santa Fe subsidiary offers cigarettes and organic tobacco products under the Natural American Spirit brand name. The company expanded into new tobacco related markets with acquisitions such as the Niconovum, which markets and distributes nicotine replacement therapy products under the brand name Zonnic and digital vapor cigarettes under Vuse brand name. The company currently employs approximately 5,200 full time employees.
The company was first incorporated at 1899 under the name RJ Reynolds Tobacco Co. During the years after that the company had multiple acquisitions and takeovers. Some of the notable points in the company’s history are; In April 1970 RJ Reynolds Tobacco Co. became RJ Reynolds Industries Inc. April 1986, became RJR Nabisco, Inc. after acquiring Nabisco Brands, Inc. On April 1989, The Company was taken private in a leveraged buyout by Kholberg, Kravis, Roberts. In 1991, RJR Nabisco Holdings Corp. began trading again on the New ...

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... on it. (Refer to Appendix figure 4). And another fourth threat is the legalization of weed. As a study conducted by the University of Michigan illustrates, more 12th grade students report marijuana use rather than cigarette use. (Refer to appendix figure 5).
As a whole, the tobacco industry will be facing more and more lawsuits and regulations imposed on them by state and federal governments, and Reynolds American Inc. will be directly affected by these changes. The company adjusted and moved quickly to the technological changes by adapting the e-cigarette manufacturing and improvement projects to compensate a declining market in the smoke cigarette market. The company’s revenues has been declining (-0.82% between 2012 and 2013) and taxation increased by (50.22%) these two figures lead to more questions about the company and the tobacco manufacturing industry.

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