RAI Selling Natural American Spirit International Rights to JT Group
WINSTON-SALEM, N.C. — Reynolds American Inc. (RAI) announced today that it will sell the international rights to the Natural American Spirit tobacco brand name and associated trademarks, along with the international companies that distribute and market the brand outside the United States, to the Japan Tobacco Group of companies in an all-cash transaction with a value of approximately $5 billion.
The purchase does not include the rights to the Natural American Spirit brand name and associated trademarks in the U.S. market, U.S. duty-free locations, U.S. territories or in U.S. military outlets, all of which will be retained by Santa Fe Natural Tobacco Co. Inc. Santa Fe is a wholly owned subsidiary of RAI.
The international companies, primarily in Europe and Japan, distribute and market Natural American Spirit additive-free and organic styles of cigarettes and roll-your-own tobacco primarily in European and Asian markets. The brand’s largest markets are Japan, Germany and Switzerland.
The transactions must be approved by regulatory authorities in a number of countries.
Japan Tobacco Inc. is a leading international tobacco company. Its sells its products in more than 120 countries, and its brands include Winston, Camel, Mevius and LD.
Winston-Salem, N.C.-based Reynolds American Inc. is the parent company of R.J. Reynolds Tobacco Co.; Santa Fe Natural Tobacco Co. Inc.; American Snuff Co. LLC; Niconovum USA Inc.; Niconovum AB; and R.J. Reynolds Vapor Co.
R.J. Reynolds Tobacco’s brands include Newport, Camel and Pall Mall cigarettes; American Snuff’s brands include Grizzly and Kodiak smokeless tobacco products; Santa Fe Natural Tobacco manufactures and markets Natural American Spirit 100% additive-free natural tobacco products, including styles made with organic tobacco; Niconovum USA and Niconovum AB market nicotine replacement therapy products in the United States and Sweden, respectively, under the Zonnic brand name; and R.J. Reynolds Vapor manufactures and markets Vuse electronic cigarettes.
Watch for details on CSPnet.com and in CSP Daily News.
