RJ Reynolds

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Background

RJ Reynolds Tobacco is the second-largest tobacco company in the United States, which makes Camel, Pall Mall, Doral, Kool, Winston and Salem cigarettes. [1]

On 15 July 2014, after over a year and a half of merger discussions, the company announced it had signed a deal to acquire its smaller competitor, Lorillard. The sale, said to cost $27.4 billion, was made in hopes that the merger would help Reynolds compete with Altria.[2] The two companies combined also strengthens its geographical distribution as Reynolds has a strong market presence in the western US and Lorillard in the eastern.

With the acquisition of Lorillard, Reynolds now represents about 33% of the cigarette market in the US.[3] Reynolds chief executive Susan M. Cameron said when speaking of the merger: “It takes us to the next chapter of transforming the tobacco industry."

To minimise antitrust concerns that the merger would give Reynolds an unfair advantage in the market, Reynolds agreed to sell the Blu line of e-cigarettes along with the Kool, Salem and Winston brands, and a manufacturing plant to Imperial for $7.1 billion.

Personnel

  • Andrew Gilchrist - President - Chief Commercial Officer
  • Walton Carpenter - Senior Vice President, Strategy and Planning
  • Robert Dunham - Executive Vice President, Public Affairs
  • Jeffery Gentry - Executive Vice President, Operations and Chief Scientific Officer
  • Daniel Herko - Senior Vice President, Research and Development
  • Tommy Hickman - Senior Vice President, Operations
  • Martin Holton]- Executive Vice President, General Counsel
  • J. Brice O'Brien - Executive Vice President, Consumer Marketing
  • Mark Peters - Chief Financial Officer
  • Robert Stowe - Executive Vice President, Trade Marketing

Related TobaccoTactics Resources

Notes

  1. RJ Reynolds Tobacco, About Us, Website
  2. M.J. De la Merced, C. Bray, To Compete With Altria, Reynolds American Is Buying Lorillard, The New York Times, 15 July 2014, accessed July 2014
  3. M.J. De la Merced, C. Bray, To Compete With Altria, Reynolds American Is Buying Lorillard, The New York Times, 15 July 2014, accessed July 2014