Reynolds American Financial Report for Q3 2010

Published on December 1st, 2010 11:52

During the RAI Earnings Conference, CEO and President Susan M. Ivey, who is set to retire early in 2011, said that the company’s key brands performed excellent, achieving share growth in the three months to September, while Reynolds’ overall market share remained unchanged at 28.2 % versus the same period last year.

R.J. Reynolds – flagship cigarette brands grow

RJR key brands Camel cigarettes and Pall Mall cigarettes, account for 55% of the cigarette-maker’s 20.1 billion cigarette shipments during the third quarter. Overall, cigarette shipments dropped 2.5 percent compared to the same period in 2009, however, according to RJR, higher prices and promotional campaigns of Camel and Pall Mall helped to compensate the drop in shipment volumes. Although Camel remains the flagship brand of Reynolds, Pall Mall maintains its magnificent growth. Camel share is up by 0.3%, from 7.7& last year, to 8% during Q3 2010, while Pall Mall achieved 7.8 percent market share, 2.8 percent growth from the last year’s 5 percent. Pall Mall is the fourth largest brand in the U.S, and the fastest-growing one.

Reynolds American

Daan Delen, CEO of R.J. Reynolds Tobacco, also mentioned strong performance of Camel menthol styles during the third quarter, as they offer unique menthol flavor and have been strong competitors in menthol segment. The company’s latest style, Camel Crush also boosted the brand’s market share, as adult smokers expressed significant interest in its revolutionary capsule technology that allows smokers to choose between regular and menthol flavors in every cigarette. Camel market share in menthol segment grew by 0.5% to 1.9 percent in third quarter.

Smokeless tobacco - American Snuff and R.J.Reynolds

American Snuff maintained its growth tendency in total moist-snuff shipments, adding 1.2% percent during the three months to September, and increasing by 5.0% during the first nine months versus comparable period in 2009.

The shipment volume of Grizzly, the company’s key brand, grew in the Q3 by 2.3 percent, mainly due to promotions and package change.

Grizzly also continued to boost its presence in the fast-growing pouch segment that accounts for approximately 9 percent of total moist-snuff segment. Grizzly sales equaled 23.6 percent of all sales in this category during the three months, and in addition, its wintergreen style is the top-seller in the market.

Camel Dip, American Snuff latest addition to premium brand family, was relatively stable during the Q3. The company said it still studies opportunities to enhance Camel Dip’s performance.

Another innovative product, Camel SNUS, the first smoke-free tobacco product, performed strongly as well, despite lower promotional levels. R.J.Reynolds recently launched two new styles - Robust and Winterchill – and they have attracted consumer’s attention, as they offer a more intense tobacco flavor. All styles of Camel Snus are still sold in limited number of stores across the nation.

R.J. Reynolds continues to collect valuable consumer feedback on Camel’s dissolvable tobacco products — Orbs, Sticks and Strips. This feedback will allow the company to refine its dissolvable products.

By Kevin Lawson, Staff Writer. Copyright © 2010 All rights reserved.

Related tags: reynolds american | camel cigarette | camel crush | business | tobacco Industry

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