Reynolds American Inc., through its subsidiaries, operates as a tobacco company in the United States. Segments The company’s segments include RJR Tobacco, American Snuff and Santa Fe. All Other includes R. J. Reynolds Vapor Company (RJR Vapor); Niconovum USA, Inc.; Niconovum AB; SFR Tobacco International GmbH (SFRTI) and various foreign subsidiaries affiliated with SFRTI. RJR Tobacco segment The RJR Tobacco segment consists principally of the primary operations of R. J. Reynolds Tobacco Company. This segment’s brands include two cigarettes in the United States: CAMEL and PALL MALL. These brands, and its other brands, including WINSTON, KOOL, DORAL, SALEM, MISTY and CAPRI, are manufactured in various styles and marketed in the United States. This segment manages contract manufacturing of cigarettes and tobacco products through arrangements with British American Tobacco p.l.c. (BAT) affiliates, and manages the export of tobacco products to certain U.S. territories, U.S. duty-free shops and U.S. overseas military bases. This segment also manages the cigarette brands, DUNHILL and STATE EXPRESS 555, which are licensed from BAT. This segment’s portfolio also includes CAMEL Snus, a smoke-free, heat-treated tobacco product sold in individual pouches that provide convenient tobacco consumption. This segment also introduced the REVO cigarette, which utilizes heat-not-burn technology. Sales and Distribution: This segment has a total production capacity of approximately 110 billion cigarettes per year. It distributes cigarettes primarily through a combination of direct wholesale deliveries from a local distribution center and public warehouses located throughout the United States. Competition: This segment’s primary competitors include Philip Morris USA Inc.; Lorillard Tobacco Company; Liggett Group; and Commonwealth Brands, Inc. American Snuff segment The American Snuff segment consists of the primary operations of American Snuff Company, LLC (American Snuff Co.). This segment is a smokeless tobacco products manufacturer in the United States. This segment offers adult tobacco consumers a range of differentiated smokeless tobacco products, primarily moist snuff. The moist snuff category is divided into premium and price-value brands. Its primary brands include its moist snuff brands, GRIZZLY, in the price-value category; and KODIAK, in the premium category. Sales and Distribution: This segment distributes its products primarily through a combination of direct wholesale deliveries from a distribution center in North Carolina and public warehouses located throughout the United States. Competition: This segment’s major competitor is U.S. Smokeless Tobacco Company LLC, referred to as USSTC. Santa Fe segment The Santa Fe segment consists of the domestic operations of Santa Fe Natural Tobacco Company, Inc. (SFNTC). This segment manufactures and markets cigarettes and other tobacco products under the NATURAL AMERICAN SPIRIT brand. Competition: This segment competes in the U.S. cigarette market with its NATURAL AMERICAN SPIRIT brand. All Other R. J. Reynolds Vapor Company (RJR Vapor) is a manufacturer and marketer of VUSE Digital Vapor Cigarette. Niconovum AB is a marketer of nicotine replacement therapy products in Sweden under the ZONNIC brand name. SFR Tobacco International GmbH (SFRTI) and various foreign subsidiaries affiliated with SFRTI distribute the NATURAL AMERICAN SPIRIT brand outside the United States. Strategy The company’s strategy focuses on transforming tobacco to deliver sustainable earnings growth, strong cash flow and enhanced long-term shareholder value. To achieve its strategy, the company encourages the migration of adult smokers to smoke-free tobacco products and other products. Customers Sales to McLane Company, Inc., a distributor, constituted approximately 31% of the company’s consolidated revenue in 2014. Sales to Core-Mark International, Inc. represented approximately 11% of the company’s consolidated revenue in 2014. Research and Development The company’s research and development expenses, as of December 31, 2014, included $88 million. History Reynolds American Inc. was founded in 1875. The company was incorporated in the state of North Carolina in 2004.
reynolds american inc (RQ4:Frankfurt)
401 North Main Street
Winston-Salem, NC 27101
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