Difference between revisions of "RJ Reynolds"

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== Background==
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R.J. Reynolds is a tobacco company based in the United States (U.S). [[British American Tobacco]] (BAT) bought the company and its holding company Reynolds American Inc. (RAI) 2017.<ref> British American Tobacco, [https://web.archive.org/web/20191015072958/https://www.bat.com/group/sites/uk__9d9kcy.nsf/vwPagesWebLive/DOAPKCXS BAT completes Acquisition of Reynolds], 25 July 2017, accessed October 2019</ref>
  
RJ Reynolds Tobacco is the second-largest tobacco company in the United States, which makes Camel, Pall Mall, Doral, Kool, Winston and Salem cigarettes. <ref> RJ Reynolds Tobacco, [http://www.rjrt.com/aboutus.aspx About Us,] Website </ref>
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Before the takeover by BAT, [http://www.rjrt.com RJ Reynolds Tobacco] was the second-largest tobacco company in the US, making Camel, Pall Mall, Doral, Kool, Winston and Salem cigarettes.
  
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]].<ref>M.J. De la Merced, C. Bray, [http://dealbook.nytimes.com/2014/07/15/reynolds-american-to-buy-lorillard-for-27-4-billion/?_php=true&_type=blogs&_php=true&_type=blogs&_php=true&_type=blogs&_r=2 To Compete With Altria, Reynolds American Is Buying Lorillard], ''The New York Times'', 15 July 2014, accessed July 2014</ref> 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.  
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==Acquired Lorillard==
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On 15 July 2014, after over a year and a half of discussions, the company announced it had signed a deal to acquire its smaller competitor, Lorillard. The sale, said to cost US$27.4 billion, was made in hopes that it would help Reynolds compete with market leader [[Altria]].<ref name= merced>M.J. De la Merced, C. Bray, [http://dealbook.nytimes.com/2014/07/15/reynolds-american-to-buy-lorillard-for-27-4-billion/?_php=true&_type=blogs&_php=true&_type=blogs&_php=true&_type=blogs&_r=2 To Compete With Altria, Reynolds American Is Buying Lorillard], ''The New York Times'', 15 July 2014, accessed October 2019</ref> The two companies combined also strengthened its geographical distribution as Reynolds had 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.<ref>M.J. De la Merced, C. Bray, [http://dealbook.nytimes.com/2014/07/15/reynolds-american-to-buy-lorillard-for-27-4-billion/?_php=true&_type=blogs&_php=true&_type=blogs&_php=true&_type=blogs&_r=2 To Compete With Altria, Reynolds American Is Buying Lorillard], ''The New York Times'', 15 July 2014, accessed July 2014</ref> Reynolds chief executive Susan M. Cameron said when speaking of the merger: “It takes us to the next chapter of transforming the tobacco industry."
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With the acquisition of Lorillard, Reynolds held about 33% of the cigarette market in the US at the time. Reynolds Chief Executive Susan M. Cameron said at the time: “It takes us to the next chapter of transforming the tobacco industry."<ref name= merced/>
  
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.
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==Sold Tobacco and E-Cigarette Brands to Imperial==
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To minimise antitrust concerns that the acquisition would give Reynolds an unfair advantage in the market, Reynolds agreed to sell the blu line of e-cigarettes along with the Kool, Salem, Winston and Maverick cigarette brands, and a manufacturing plant to [[Imperial Tobacco]]. The acquisition was completed in June 2015 for a reported US$7 billion (GB£4.2bn).<ref> Imperial Brands, [https://web.archive.org/web/20191023130146https://www.imperialbrandsplc.com/about-us/our-history.html About Us: History], website, undated, accessed October 2019</ref><ref> A. Armstrong, [https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11632692/Imperial-Tobacco-breathes-easy-after-US-regulator-approves-cigarette-deal.html Imperial Tobacco breathes easy after US regulator approves cigarette deal], ''The Telegraph'', 27 May 2015, accessed October 2019</ref>
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* For more information see [[Imperial Tobacco]]
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==Vuse E-Cigarettes==
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Reynolds launched Vuse e-cigarettes in the US in 2013.<ref> D. Mangan, [https://www.cnbc.com/id/100796458 Reynolds American Sees E-Cigarette Launch as ‘Game Changer’], ''CNBC'', 6 June 2013, accessed October 2019</ref> In July 2014, BAT formed a “strategic partnership” with RAI in order to commercialise each other’s e-cigarette and [[Heated Tobacco Products | heated tobacco products]] (HTPs).<ref name= surgeon> US Department of Health and Human Services, [https://www.cdc.gov/tobacco/data_statistics/sgr/e-cigarettes/pdfs/2016_SGR_App_4-1_508.pdf E-Cigarette Use Among Youth and Young Adults: A Report of the Surgeon General. Appendix 4.1: Major E-Cigarette Manufacturers], Centers for Disease Control and Prevention, 2016</ref>
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When BAT bought RAI in 2017 it also acquired Vuse.<ref> British American Tobacco, [https://web.archive.org/web/20190702154045/https://www.bat.com/group/sites/UK__9D9KCY.nsf/vwPagesWebLive/DOAPKCXS BAT Completes Acquisition of Reynolds], BAT press release, 25 July 2017, accessed June 2019</ref>
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* For more information see [[E-Cigarettes: British American Tobacco]]
 
    
 
    
 
== Personnel ==
 
== Personnel ==
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After its acquisition by BAT, there were significant changes to senior staff at RAI.  [[Ricardo Oberlander]] became President and Chief Executive Officer. Oberlander was previously on the Board of Directors for RAI from December 2014 until the acquisition by BAT, and Chair of the Board at BAT Souza Cruz between 2013 and 2016. In 2019 he reported to [[Jack Bowles]], CEO of BAT.
  
* Andrew Gilchrist - President - Chief Commercial Officer
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Details of the current Reynolds Management Team can be found on the [https://www.rjrt.com/transforming-tobacco/leadership/ R.J. Reynolds website] and the [https://www.reynoldsamerican.com/about-us/who-we-are/management-team/default.aspx RAI website].
* Walton Carpenter - Senior Vice President, Strategy and Planning
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== TobaccoTactics Resources ==
* Robert Dunham - Executive Vice President, Public Affairs
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* [[British American Tobacco]]
* 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 ==
 
 
 
 
* [[IEA: Working with RJ Reynolds, BAT and Philip Morris on Environmental Risk]]
 
* [[IEA: Working with RJ Reynolds, BAT and Philip Morris on Environmental Risk]]
 
* [[Duke University and the Tobacco Industry]]
 
* [[Duke University and the Tobacco Industry]]
* [[European Science and Environment Forum]]
 
* [[Confederation of European Community Cigarette Manufacturers]]
 
 
* [[Center for Indoor Air Research (CIAR)]]
 
* [[Center for Indoor Air Research (CIAR)]]
* [[Global Reporting Initiative]]
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* [[Kantar]]
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==Relevant Links==
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*[https://www.reynoldsamerican.com/Home/default.aspx Reynolds American website]]
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*[https://www.rjrt.com/ R.J. Reynolds website]
  
 
== Notes ==
 
== Notes ==

Latest revision as of 11:04, 28 October 2019

R.J. Reynolds is a tobacco company based in the United States (U.S). British American Tobacco (BAT) bought the company and its holding company Reynolds American Inc. (RAI) 2017.[1]

Before the takeover by BAT, RJ Reynolds Tobacco was the second-largest tobacco company in the US, making Camel, Pall Mall, Doral, Kool, Winston and Salem cigarettes.

Acquired Lorillard

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

With the acquisition of Lorillard, Reynolds held about 33% of the cigarette market in the US at the time. Reynolds Chief Executive Susan M. Cameron said at the time: “It takes us to the next chapter of transforming the tobacco industry."[2]

Sold Tobacco and E-Cigarette Brands to Imperial

To minimise antitrust concerns that the acquisition would give Reynolds an unfair advantage in the market, Reynolds agreed to sell the blu line of e-cigarettes along with the Kool, Salem, Winston and Maverick cigarette brands, and a manufacturing plant to Imperial Tobacco. The acquisition was completed in June 2015 for a reported US$7 billion (GB£4.2bn).[3][4]

Vuse E-Cigarettes

Reynolds launched Vuse e-cigarettes in the US in 2013.[5] In July 2014, BAT formed a “strategic partnership” with RAI in order to commercialise each other’s e-cigarette and heated tobacco products (HTPs).[6] When BAT bought RAI in 2017 it also acquired Vuse.[7]

Personnel

After its acquisition by BAT, there were significant changes to senior staff at RAI. Ricardo Oberlander became President and Chief Executive Officer. Oberlander was previously on the Board of Directors for RAI from December 2014 until the acquisition by BAT, and Chair of the Board at BAT Souza Cruz between 2013 and 2016. In 2019 he reported to Jack Bowles, CEO of BAT.

Details of the current Reynolds Management Team can be found on the R.J. Reynolds website and the RAI website.

TobaccoTactics Resources

Relevant Links

Notes

  1. British American Tobacco, BAT completes Acquisition of Reynolds, 25 July 2017, accessed October 2019
  2. 2.0 2.1 M.J. De la Merced, C. Bray, To Compete With Altria, Reynolds American Is Buying Lorillard, The New York Times, 15 July 2014, accessed October 2019
  3. Imperial Brands, About Us: History, website, undated, accessed October 2019
  4. A. Armstrong, Imperial Tobacco breathes easy after US regulator approves cigarette deal, The Telegraph, 27 May 2015, accessed October 2019
  5. D. Mangan, Reynolds American Sees E-Cigarette Launch as ‘Game Changer’, CNBC, 6 June 2013, accessed October 2019
  6. US Department of Health and Human Services, E-Cigarette Use Among Youth and Young Adults: A Report of the Surgeon General. Appendix 4.1: Major E-Cigarette Manufacturers, Centers for Disease Control and Prevention, 2016
  7. British American Tobacco, BAT Completes Acquisition of Reynolds, BAT press release, 25 July 2017, accessed June 2019