Camel Cigarettes Generates 26% of Reynolds Sales

Published on February 3rd, 2016 00:00
Camel tobacco

Conventional cigarette producers, led by R.J. Reynolds Tobacco Co., remain to take advantage from cigarette users having more extra revenue because of lesser energy and gas prices, a major tobacco expert stated several days ago.
As of October 31 regular cigarette sales increased by 2.9 % over the past declaring period in September. On the other hand, sales rose only 0.1 % year over year.

The major factor continues to be Philip Morris USA and Reynolds being in a position to pass along a common 4 % price boost to adult users. Cigarette volume decreased by 1.1 %. “The tougher tobacco consumer goes on to favorably influence the category as consumers switch to premium cigarette brands,” Herzog stated, like Camel, Newport and Marlboro from discount brands.

Reynolds once more time was the industry head in sales development at 3.6 % year over year, with Newport sales increasing at 6.3 %. Herzog stated Reynolds’s $29.25 billion deal for Lorillard, to get bestselling menthol brand Newport, is assuring great results to the manufacturer even before it launches new line products, advertising and a powerful promotional push. Reynolds finished the megadeal June 12 and took control of Newport on June 15.

Newport comprises about 37 % of Reynolds sales, as well as Camel at 26 %. Camel sales increased by 1.9 % overall. Philip Morris USA sales rose by 2.8 % overall, which include a 2 % increase by Marlboro. Even so, Herzog cautioned that ITG Brands of Greensboro, the U.S. subsidiary of Imperial Tobacco, persists to battle with gaining traction with the four conventional cigarette brands - Kool, Maverick, Salem and Winston - Imperial obtained in June for $7.1 billion.

Sales decreased by 5.1 % year over year and dropped by 1.9 % from September. Winston sales on the contrary were off 0.7 %. Herzog explained Reynolds should advantage from Monday’s ending of a six-month contract with ITG cigarette brands related to its every-day-low-price strategy. Retailers that choose to participate should agree that Pall Mall is the lowest-priced cigarette in their shops. Retailers obtain greater marketing allowances through many of Reynolds’ cigarette brands

By Robert Smith, Staff Writer
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