{"id":2360,"date":"2014-07-12T19:14:24","date_gmt":"2014-07-12T19:14:24","guid":{"rendered":"https:\/\/pepesnonsmokingpartytimelounge.com\/?p=2360"},"modified":"2014-07-12T19:14:24","modified_gmt":"2014-07-12T19:14:24","slug":"slumping-cigarette-sales-prompts-r-j-reynolds-lorillard-to-talk-merger","status":"publish","type":"post","link":"https:\/\/pepesnonsmokingpartytimelounge.com\/?p=2360","title":{"rendered":"Slumping cigarette sales prompts R.J. Reynolds-Lorillard to talk merger"},"content":{"rendered":"

\"reynolds\"<\/a><\/p>\n

A very interesting story about major changes in the works<\/a> in the tobacco industry.<\/p>\n

The No. 2 tobacco company in America — R.J. Reynolds — is in talks to buy the No. 3 tobacco company in America — Lorillard (which I have misspelled Lollilard more times than I can count.). Imperial\u00a0Tobacco is also involved in the deal.<\/p>\n

This deal would create a $56 billion company and would create a monster rival to the dominant No. 1 tobacco company in America — Altria, otherwise known as Philip Morris (its dominant brand is Marlboro, of course).<\/p>\n

Reynolds and Lorillard would combine for 42 percent of the cigarette market, joining Reynolds’ big product — Camel — what Lorillard’s — Newport. Other Lorillard brands are Kent and Old Gold, while other Reynolds’ other brands are Pall Mall, Winston, Salem and Kool. But, Camel and Newport are the dominant brands.<\/p>\n

\"dbpix-camel-tmagArticle\"<\/a><\/p>\n

The new joint company then would sell off several of their smaller brands to\u00a0Imperial Tobacco, a British-owned company that would then become the No. 3 company in America.<\/p>\n

According to the New York Times, declining cigarette sales are driving this move, as both companies work to restore their past profits. E-cigs are also a factor in this deal, as the e-cig industry is booming (got mixed feelings about that), and Lorillard owns the No. 1 e-cig brand, Blu E-Cigarettes.<\/p>\n

According to the New York Times:<\/p>\n

\n

Still, a takeover of Lorillard by Reynolds would represent the industry\u2019s boldest response yet to a declining, if still profitable, market. A general drop in smoking rates and aggressive public health campaigns aimed at curbing smoking have cut into sales in the United States.<\/p>\n

About 42 million people in the United States, or nearly 18 percent of the adult population, smoke cigarettes, according to the\u00a0Centers for Disease Control and Prevention<\/a>. That compares with about 21 percent of the adult population nearly a decade ago and 43 percent of the adult population in 1965, according to the C.D.C.<\/p>\n

What remains of the traditional cigarette industry is dominated by Altria, whose Philip Morris arm sells one out of every two cigarettes in the United States.<\/p>\n

Opportunity has beckoned in the new business of e-cigarettes. A deal by Reynolds to buy the leading purveyor of e-cigarettes could spur other mergers within the industry as manufacturers jockey for position.<\/p>\n

\u201cThis transaction in our view will be very positive for the global tobacco industry and could be just the beginning of future transactions with e-cigs\/vapor being the underlying catalyst,\u201d\u00a0Wells Fargo<\/a>\u00a0analysts wrote in a note.<\/p>\n<\/blockquote>\n

Anyway, interesting story as the industry adjusts to a rapidly changing and evolving market. This deal is not cast in stone, as it must be approved by federal regulators and could face scrutiny over<\/p>\n","protected":false},"excerpt":{"rendered":"

A very interesting story about major changes in the works in the tobacco industry. The No. 2 tobacco company in America — R.J. Reynolds — is in talks to buy the No. 3 tobacco company in America — Lorillard (which I have misspelled Lollilard more times than I can count.). Imperial\u00a0Tobacco is also involved in … Continue reading Slumping cigarette sales prompts R.J. Reynolds-Lorillard to talk merger<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":2361,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,95,239,49,55],"tags":[581,621,638,611],"class_list":["post-2360","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-altria","category-blu","category-lorillard","category-philip-morris","category-rj-reynolds","tag-altria","tag-blu","tag-lorillard","tag-rj-reynolds"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/pepesnonsmokingpartytimelounge.com\/wp-content\/uploads\/2014\/07\/reynolds.jpg?fit=616%2C164&ssl=1","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p4hpEa-C4","jetpack-related-posts":[{"id":2967,"url":"https:\/\/pepesnonsmokingpartytimelounge.com\/?p=2967","url_meta":{"origin":2360,"position":0},"title":"Breaking: Big Tobacco companies agree to $100 million settlement of Engle cases","author":"Pepe Lepew","date":"February 25, 2015","format":false,"excerpt":"\u00a0 Breaking news! 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The Engle (named after\u2026","rel":"","context":"In "Engle case"","block_context":{"text":"Engle case","link":"https:\/\/pepesnonsmokingpartytimelounge.com\/?cat=24"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/pepesnonsmokingpartytimelounge.com\/wp-content\/uploads\/2015\/02\/Howard-Engle.jpg?fit=600%2C369&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/pepesnonsmokingpartytimelounge.com\/wp-content\/uploads\/2015\/02\/Howard-Engle.jpg?fit=600%2C369&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/pepesnonsmokingpartytimelounge.com\/wp-content\/uploads\/2015\/02\/Howard-Engle.jpg?fit=600%2C369&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":3719,"url":"https:\/\/pepesnonsmokingpartytimelounge.com\/?p=3719","url_meta":{"origin":2360,"position":1},"title":"Federal judge tells Big Tobacco, “quit wasting my damn time”","author":"Pepe Lepew","date":"February 11, 2016","format":false,"excerpt":"This is a great story. I've posted earlier stories about as part of a Justice Department RICO (a federal racketeering law usually used against organized crime) lawsuit, Big Tobacco was ordered some time ago to come up with \"corrective statements,\" ie, full-age newspaper ads admitting that tobacco companies have lied\u2026","rel":"","context":"In "Big Tobacco"","block_context":{"text":"Big Tobacco","link":"https:\/\/pepesnonsmokingpartytimelounge.com\/?cat=10"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/pepesnonsmokingpartytimelounge.com\/wp-content\/uploads\/2016\/02\/jp-tobacco-articleLarge.jpg?fit=600%2C274&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/pepesnonsmokingpartytimelounge.com\/wp-content\/uploads\/2016\/02\/jp-tobacco-articleLarge.jpg?fit=600%2C274&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/pepesnonsmokingpartytimelounge.com\/wp-content\/uploads\/2016\/02\/jp-tobacco-articleLarge.jpg?fit=600%2C274&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":4175,"url":"https:\/\/pepesnonsmokingpartytimelounge.com\/?p=4175","url_meta":{"origin":2360,"position":2},"title":"San Francisco bans flavoured tobacco products","author":"Pepe Lepew","date":"June 7, 2018","format":false,"excerpt":"San Francisco voters, by an extremely wide margin, voted during California's Tuesday election to ban all flavoured tobacco products. This include sugary cigars, menthol cigarettes and most importantly, sugary- or fruity-flavoured e-cig products. 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