Reynolds American Inc., through its subsidiaries, operates as a tobacco company in the United States. Segments The company’s segments are RJR Tobacco, Santa Fe, and American Snuff. RJR Tobacco This segment consists principally of the primary operations of R. J. Reynolds Tobacco Company. This segment’s brands include three of the major four cigarettes in the United States, such as NEWPORT, CAMEL and PALL MALL. These brands, and its other brands, including DORAL, MISTY and CAPRI, are manufactured in various styles and marketed in the United States. RJR Tobacco manages contract manufacturing of cigarettes and tobacco products through arrangements with BAT affiliates, and manages the export of tobacco products to certain U.S. territories, the U.S. duty-free shops and the U.S. overseas military bases. RJR Tobacco also manages the super-premium cigarette brands, DUNHILL and STATE EXPRESS 555, which are licensed from BAT. RJR Tobacco’s portfolio also includes CAMEL Snus, a smoke-free, heat-treated tobacco product sold in individual pouches that provide convenient tobacco consumption. Competition: RJR Tobacco’s primary competitors include Philip Morris USA Inc.; Imperial Tobacco Group, PLC; and Liggett Group, Inc. Santa Fe This segment consists of the domestic operations of Santa Fe Natural Tobacco Company, Inc. This segment manufactures and markets cigarettes and other tobacco products under the NATURAL AMERICAN SPIRIT brand. American Snuff This segment consists of the primary operations of American Snuff Company, LLC. This segment is a smokeless tobacco products manufacturer in the United States, and offers adult tobacco consumers a range of differentiated smokeless tobacco products, primarily moist snuff. The moist snuff category is divided into premium, price-value and popular-price brands. American Snuff’s primary brands include its moist snuff brands, GRIZZLY, in the price-value category; and KODIAK, in the premium category. Distribution: American Snuff 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: American Snuff’s major competitor is U.S. Smokeless Tobacco Company LLC. All Other R. J. Reynolds Vapor Company is the manufacturer and marketer of VUSE Digital Vapor Cigarette. The national expansion of VUSE began in 2014, and was completed in early 2015. VUSE is the primary vapor product in convenience/gas stores. 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. Customers Sales to McLane Company, Inc., a distributor, constituted approximately 28% of the company’s consolidated revenue in 2015. RJR Tobacco, Santa Fe, and American Snuff segments sales to Core-Mark International, Inc., a distributor, represented approximately 10% of the company’s consolidated revenue in 2015. Strategy The company’s strategy continues to focus on transforming tobacco to deliver sustainable earnings growth and improved long-term shareholder value. This transformation strategy includes improving the core cigarette and moist-snuff businesses, focusing on innovation and engaging with adult tobacco consumers, while maintaining efficient and effective operations. To achieve its strategy, the company encourages the migration of adult smokers to smoke-free tobacco products and other products, which it aligns consumer preferences for new alternatives to traditional tobacco products in view of societal pressure to reduce smoking. Research and Development The company’s operating subsidiaries’ research and development expense was $107 million for the year ended December 31, 2015. History Reynolds American Inc. was founded in 1875. The company was incorporated in the state of North Carolina in 2004.
reynolds american inc
(RQ4:German Stock Exchange)
401 North Main Street
Winston-Salem, NC 27101
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