Reynolds American

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Reynolds American, Inc.
Type Public (NYSERAI)
S&P 500 Component
Industry Tobacco
Founded 2004
Headquarters Winston-Salem, North Carolina, USA
Key people Daniel Delen, Chairman, CEO, & President
Revenue Decrease US$8.541 billion (2011)
Operating income Decrease US$2.399 billion (2011)
Net income Increase US$1.406 billion (2011)
Owner(s) British American Tobacco (42%)
Employees 5,400 (2011)
Website www.reynoldsamerican.com
References: [1]

Reynolds American, Inc. (NYSERAI) is the second-largest tobacco company in the United States.[2] Its holdings include R. J. Reynolds Tobacco Company, American Snuff Company (formerly Conwood Company), Santa Fe Natural Tobacco Company and Niconovum AB.

Reynolds American's subsidiaries manufacture and market a variety of tobacco products, including cigarettes (Camel, Pall Mall, Kool, Winston, Salem, Doral, Misty, Capri and Natural American Spirit brands) and moist snuff (Grizzly and Kodiak brands).[3]

In 2010, Reynolds American's operating companies sold about 28% of all cigarettes sold in the U.S.[4]

History[edit]

Reynolds American was formed in January 2004[5] and began trading publicly on the New York Stock Exchange as RAI in August 2004.[3]

In July 2004 the U.S. business of British American Tobacco (Brown & Williamson) was combined with that of R. J. Reynolds Tobacco Company (R. J. Reynolds), under the R. J. Reynolds name. R. J. Reynolds and Brown & Williamson were the second and third-ranking U.S. tobacco companies prior to the combination. When they combined, R. J. Reynolds became a subsidiary of Reynolds American, with BAT holding a 42% share of RAI.[5] Santa Fe Natural Tobacco Company, which manufactures the additive-free Natural American Spirit brand of tobacco products, also became a subsidiary of Reynolds American at that time.[5]

Reynolds American building in Winston-Salem, NC

Prior to becoming RAI operating companies, both R. J. Reynolds and Santa Fe were part of R. J. Reynolds Tobacco Holdings, Inc., which traded on the New York Stock Exchange as RJR. RJR became a subsidiary of RAI in July 2004.[5] R. J. Reynolds was established as a tobacco company in Winston-Salem, North Carolina in 1875.[6]

In 2006, Reynolds American expanded into the smokeless tobacco category, with the acquisition of Conwood, the second-biggest smokeless tobacco company in the United States. Conwood manufactures and markets moist and dry snuff, loose leaf, plug and twist chewing tobaccos. At the time of the acquisition, 70% of Conwood's sales came from the growing moist-snuff segment, with the Grizzly brand showing the fastest growth.[7] Grizzly’s continued growth since 2006 has made it the best-selling brand in the moist-snuff category.[8]

In 2008, RAI was recognized as a leader in corporate sustainability by being added to the membership in the 2008-2009 Dow Jones Sustainability North America Index (DJSI North American). RAI is the only U.S. tobacco company and one of 125 North American companies on the index.[9] Selection for the Index is based on performance in a number of economic, environmental and social criteria.[10]

The Wall Street Journal reported in November 2009 that Reynolds American intended to buy Sweden-based Niconovum AB, a maker of products such as nicotine gum, for $44.5 million.[11] The deal was completed in December.[12]

Former Chairman, President and CEO of Reynolds Tobacco Daniel "Daan" Delen assumed the positions of President and CEO of Reynolds American on March 1, 2011,[13] after former president, CEO and chairwoman Susan Ivey announced she would retire as chairwoman November 1, 2010 and as President and CEO effective February 28, 2011.[14]

American Legislative Exchange Council[edit]

David Powers, representing Reynolds American, sits on the Private Enterprise Board of the American Legislative Exchange Council (ALEC) as Treasurer.[15]

References[edit]

  1. ^ Reynolds American 10-K SEC Filing report. Retrieved November 15, 2012.
  2. ^ "Fortune 500". Fortune. CNNMoney.com. 4 May 2009. Retrieved 6 July 2009. 
  3. ^ a b "Reynolds American, Inc.". Retrieved 10 May 2011. 
  4. ^ "Reynolds American's profits climb". Greensboro News Record. 21 April 2010. Retrieved 10 May 2011. 
  5. ^ a b c d "Reynolds American Inc.". FORM 8-K. Securities and Exchange Commission. 30 July 2004. Retrieved 6 July 2009. 
  6. ^ "R.J. Reynolds Tobacco Co. Inc.". BusinessWeek. The McGraw-Hill Companies. Retrieved 6 July 2009. 
  7. ^ "Reynolds American Moves into Smokeless Tobacco". Convenience Store News. Nielsen Business Media, Inc. 26 April 2006. Retrieved 6 July 2009. 
  8. ^ "Fitch Affirms Reynolds American's IDR at 'BBB-'; Outlook Stable" (Press release). BusinessWire. 2009-06-24. Retrieved 2009-07-06. 
  9. ^ "Sustainability Leaders". Dow Jones Sustainability Indexes. SAM Indexes GmbH. 3 March 2009. Retrieved 6 July 2009. 
  10. ^ "Corporate Sustainability Assessment Criteria". Dow Jones Sustainability Indexes. SAM Indexes GmbH. Retrieved 6 July 2009. 
  11. ^ "Report: Reynolds in Talks to Acquire Swedish Company". Winston-Salem Journal. 2009-11-10. Retrieved 2009-11-10. [dead link]
  12. ^ "Reynolds American closes deal with Swedish company". Winston-Salem Journal. 2009-12-10. Retrieved 2009-12-10. [dead link]
  13. ^ http://reynoldsamerican.com/management.cfm
  14. ^ Craver, Richard (2010-10-15). "Susan Ivey, top executive at Reynolds American, to retire in February". Winston-Salem Journal. Retrieved 2010-10-15. 
  15. ^ http://www.alec.org/about-alec/private-enterprise-board/

External links[edit]