Tobacco Industry News

Reports

Earnings for Greensboro based Lorillard fell 3 percent
Lorillard, the third-largest cigarette company in the United States, reported that its third-quarter profits were down almost three percent compared to its third quarter 2010 profits. Although the company’s revenue rose 4% to $1.1 billion, the costs of promoting the new non-menthol Newport cigarettes, user fees charged by the Food and Drug Administration, and other fees reduced the company’s net profits to $267 million. Although cigarette sales were down last quarter overall, Lorillard saw increased sales of Newport cigarettes and its value-priced Maverick brand, evidence that smokers are trading down to lower-priced alternative brands to save money. Click here for more details.

Reynolds American 3Q profit falls on charges
Reynolds American, manufacturer of Camel, Pall Mall and Natural American Spirit brand cigarettes, reported a nearly 4% decline in its third quarter profits, compared to the third quarter of 2010. Legal costs associated with lawsuits brought by smokers and other costs brought down the value of shares by 70 cents. Although Reynolds American saw a 6.8% drop in cigarette sales, sales of its smokeless tobacco brands increased by 7%, an indication that the company’s increased emphasis on selling alternatives to cigarettes is thriving amid health concerns about smoking and prohibitions on smoking in public places. Click here to read the full story.

R.J. Reynolds rejects request to stop testing "dissolvable" tobacco in Colorado
The Colorado Board of Health has requested that R.J. Reynolds stop using the state as a test market for dissolvable tobacco products, but R.J. Reynolds has declined the state’s request. Health officials are worried that because the dissolvable tobacco products look like candy, children will want to try tobacco. The FDA is currently determining whether it has the same regulatory power over the dissolvable products that it holds with other tobacco products. Read more here. Click here to view the resolution from the state board of health.

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