Reynolds Banks on Smokeless
Reynolds American Inc. intends to focus more resources on evolving rationalization smokeless tobacco products.
The tobacco company assures that smokeless tobacco products will raise its net profit by 35 percent, the Winston-Salem Journal informs. Daniel Delen, CEO/President, found out few details in the course of a recent talk with analysts, but he said that the tobacco company would launch products in vapor (like electronic cigarettes), nicotine extract items (like lozenges) and nicotine-replacement therapy (NRT) within six months.
Pat Shehan, owner of the Tarheel Tobacco, reported that the company has bounded produced Vuse electronic cigarette brand, alongside Viceroy, smokeless pouches and pellets. While Reynolds is maintaining silence about the products for now, Shehan said that the tobacco brands can be bought by customers at his stores.
Shehan said that he was asked to not display the new products and that is why most of the sales have gone to Reynolds employees. But the news of the products are not announced there.
Delen said that Reynolds American Inc. considers smokeless tobacco as the next move in the company’s becoming “a total tobacco company.” Delen added that the company possesses a wide range of products at various price points, along with changing brands according to preferences of the adult tobacco consumers.
As well, the company represents other smokeless products of Camel series like Camel Crush, Camel Snus and dissolvable Camel film strips, orbs and chew sticks. Delen added that together with their long-term method to transform the tobacco industry and lessen the harm caused by smoking, Reynolds have been working strenuously on developing a pipeline of new smokeless and other product innovation.
Convenience stores say that smokeless tobacco products provide benefit. More and more retail dealers dedicate more shelf space to the items. Jeff Lenard, NACS spokesman, said that now it is possible to see that there are more smokeless products sold in convenience stores as there is more demand for it, largely because of the shame attached to cigarettes or demands where smokers can not light up in certain places.
“It is a developing display landscape. But the question – who buys these smokeless products and what the liability exposure is – still remains unclear. “There is some worry and fault with retail dealers seeing what is best for their stores, but it is expected that consumers will see something more standardized over time,” said Lenard.
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