Joining AATAC means that our retailers will meet quality companies with products and services that will help you prosper.

Reynolds American’s Newport News

WINSTON-SALEM, N.C. — Following the purchase of Lorillard Inc. and the related divestures to ITG Brands, “the integration of the Newport brand is going very well,” Susan Cameron, president and CEO of Reynolds American Inc., said Tuesday during the company’s second-quarter 2015 earnings call. R.J. Reynolds strategy going forward will be to “energize and reinforce this powerful brand.”

The Winston-Salem, N.C.-based tobacco company acquired Lorillard, the maker of the Newport brand, for $25.9 billion in June. It has divested the KOOL, Salem, Winston, Maverick cigarette and blu eCigs brands to U.K.-based Imperial Tobacco Group’s new U.S. subsidiary, ITG Brands LLC, Greensboro, N.C.

“Now we’re poised for new growth following the acquisition,” she said. “The addition of the Newport brand will give R.J. Reynolds increased scale and improved operational efficiencies as well as higher sales volume resulting from the complementary nature of Newport and the rest of R.J. Reynolds cigarette portfolio.”

She said, “We are getting to know the Newport consumer. We’ve picked up 50,000 additional retail contracts, many new customers and a significant database of those customers. And so we are working on our strategies to optimize our performance, and I think that you’ll see a great run going forward.”

Cameron provided an update on the company’s progress. She said that RJR Vapor VUSE Digital Vapor Cigarette “continued to perform well in the second quarter.” VUSE is now in national distribution in more than a 100,000 retail outlets and has solidified its position as a top-selling electronic cigarette in the convenience-store channel.

“We continue to see great promise in the vapor category, and we will continue to innovate and invest” in Vuse and the marketplace, she said.

The company also contines to make “good progress” with the national expansion of Niconovum’s Zonnic nicotine-replacement-therapy (NRT) gum, and the brand will be in about 25,000 outlets. Zonnic is a leading NRT in the convenience-store and gas-station channel, “and we expect its phase expansion to continue into next year.”

Also, R.J. Reynolds expanded Revo heat-not-burn cigarettes into Wisconsin in February “to gain learning on consumer interest in heat-not-burn products,” she said. “Revo has seen consumer interest and trial, but actual adoption rates of the product have not met our expectation. As a result, R.J. Reynolds has decided to discontinue marketing support for Revo in Wisconsin; however, we do remain optimistic about the long-term potential for heat-not-burn, and we continue to work to improve this technology.”

R.J. Reynolds new portfolio of growth brands, Newport, Camel and Pall Mall “performed well” in the second quarter.

Newport continued to advance in the second quarter, we share of retail shipments increasing four-tenths of a percentage point from the prior year quarter to 13.2%. Newport’s gains were driven by its strength in menthol, said Cameron.

Camel also continue to benefit from its menthol styles that use capsule technology, and the brands total cigarette retail market share was in line with the prior year quarter at 8.2%.

R.J. Reynolds Pall Mall value brand “is playing an essential role in the company’s portfolio strategy by providing the right balance between market share and profitability. … This true value proposition is expected to benefit from additional brand equity building efforts going forward resulting in increased trial and conversion.”

Reynolds American is the parent company of R.J. Reynolds Tobacco Co.; American Snuff Co. LLC; Santa Fe Natural Tobacco Co. Inc.; Niconovum USA Inc.; Niconovum AB; and R.J. Reynolds Vapor Co.

Author(s): 
Greg Lindenberg

jota

About jota

Vendor Application

 

Toll Free: 888-662-7780

Here at AATAC we are always looking for companies that may enhance our member’s businesses and better the industry as a whole. If you are interested in becoming a preferred vendor within our network please fill out this information form.

Send info and materials to our receivables office:

503 E. Jackson St. STE# 141
Tampa, FL. 33602

×

Answer

Answer the Question of the Day by filling in the information below and send it to us for your chance to win the prizes and exclusive discounts offered only to our members!

×

QOD

Located on the front page of our national website is a field called “Question Of The Day” (QOD). Each day we post a different question about the products and services that are presented through our website. The answer to this question can be found on one of our partner’s web pages. Our members will navigate through the preferred vendors page to find the answer to your question while subconsciously educating themselves about your company! AATAC effectively selects members who answer the question correctly to win rewards which include; rebates, complimentary services, cash, promotional offers from vendors, prizes, giveaways, etc. *Your QOD should be 1-2 sentences in length and can not name a specific product or company within the question. 

Here are some examples:

Which preferred vendor offers your customers a 99% accurate drug test that reads results in five minutes?  

One of our partner’s provides important compliance training classes in a virtual setting for a low cost. Who is it?

×

Your Vendor Category

When your logo and redirect are added to our preferred vendors catalog it offers two very important elements to members:

  1. It tells them that your company has been vetted and approved for business within our network. 
  2. It encourages them to visit your website where they can learn more about your company. 

*IMPORTANT:

 

 

×