Reynolds American

Operates tobacco companies

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Headquarters: 401 North Main St.
Winston-Salem, NC 27102
Employees: 6,400
CEO: Susan Ivey
Stock Symbol: RAI


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Reynolds American is the parent company of R.J. Reynolds Tobacco Company, American Snuff Company, Santa Fe Natural Tobacco Company, Inc. and Conwood Company.

R.J. Reynolds Tobacco Company is the second-largest cigarette manufacturer in the United States, manufacturing about one of every three cigarettes sold in the United States. The company makes several of the nation's best-selling cigarette brands: Camel, Kool, Pall Mall, Winston, Doral and Salem.

American Snuff Company
American Snuff Co. is the nation's second-largest manufacturer of smokeless tobacco products. American Snuff also sells and distributes a variety of tobacco products manufactured by Lane, Limited, including little cigars and roll-your-own tobacco.

Santa Fe Natural Tobacco Company
SFNTC manufactures Natural American Spirit additive-free tobacco products.

Niconovum AB
Niconovum markets innovative nicotine replacement therapy (NRT) products under the Zonnic brand name in Sweden and Denmark. Its nicotine gum, mouth spray and pouches use proprietary technology for nicotine delivery.

In 2009, Reynolds reported revenues of $8.41 billion, a 4.8% decline, and net income of $962 million.


R.J. Reynolds Tobacco Company was founded in 1875, when 25-year-old Richard Joshua Reynolds started a chewing-tobacco manufacturing operation in the town of Winston, N.C. (Winston would later merge with the nearby village of Salem, creating the city known today as Winston-Salem.)

Although the town of Winston had only a few hundred residents and no paved roads, Mr. Reynolds saw two potential keys to business success: Winston was a production center for flue-cured tobacco leaf, and the town sat on a newly built railroad line.

Around the same time, in the late 1870s, Brown Brothers Tobacco Manufacturing Co. was the largest tobacco company in nearby Mocksville, N.C. It was operated by George Brown and his brother, Rufus, who were sons of a tobacco merchant. In 1893, George Brown formed a new partnership with his brother-in-law, Robert Williamson, whose father owned two tobacco factories. One of these factories was located in the same town as Mr. Reynolds' factory, the town of Winston, and the other one was in Caswell County, N.C. Initially, the partnership took over Robert's father's business. Then the new company, Brown & Williamson, leased a small facility, hired 30 employees, and began manufacturing in February 1894.

In 1913, Reynolds Tobacco introduced Camel cigarettes, containing a blend of several different types of tobacco - a blend that would come to be called "the American blend." Supported by a unique introductory "teaser" advertising campaign, Camel became the first nationally popular cigarette in the United States.

Reynolds Tobacco established virtually every packaging standard in the U.S. cigarette industry. The 20-cigarette pack was introduced by Reynolds Tobacco in 1913, and in 1915 the company introduced the one-piece, 10-pack carton. In 1931, Reynolds Tobacco became the first company to package its cigarettes with a moisture-proof, sealed cellophane outerwrap to preserve freshness.

In 1933, B&W launched KOOL cigarettes, the first U.S. menthol brand to gain nationwide distribution.

In 1936, B&W introduced Viceroy as the industry's first cork-tipped filter product. In 1952, B&W began marketing Viceroy with a new "cellulose acetate" filter.

In 1954, Reynolds Tobacco introduced Winston - the first filter cigarette to achieve a major success in the marketplace.

Reynolds Tobacco introduced Salem - the first filter-tipped menthol cigarette, in 1956.

The Belair menthol brand was launched nationally by B&W in 1960.

The Doral brand was first introduced by Reynolds Tobacco in 1969. (It was repositioned and re-introduced in 1984.)

Reynolds Tobacco began diversifying into foods and other non-tobacco businesses in the 1960s. In 1970, the corporation formed a new parent company called R.J. Reynolds Industries, Inc.

In September 1985, Reynolds Industries acquired Nabisco Brands. In 1986, the parent company was re-named RJR Nabisco, Inc.

In November 1988, RJR Nabisco entered a merger agreement with Kohlberg Kravis Roberts & Co. (KKR) for the acquisition of RJR Nabisco by KKR. The merger was completed in April 1989. The acquisition was valued at $25 billion, marking the largest corporate transaction in history at that time. After being privately held for a period, the company's common stock returned to the stock market in 1991. In early 1995, KKR divested its remaining holdings in RJR Nabisco.

As a result of BAT's acquisition of American Tobacco Company in 1994, the Carlton, Pall Mall, Misty, Tareyton and Lucky Strike brands were added to the B&W brand family, as those operations were integrated into B&W in 1995.

Prior to 1999, RJR was a subsidiary of RJR Nabisco Holdings Corp. (RJRN). In 1999, following the sale of the company's international tobacco business to Japan Tobacco, Inc., the remaining tobacco and food businesses were separated, and RJRN was renamed Nabisco Group Holdings Corp. (NGH).

On June 15, 1999, the former parent company, RJR Nabisco, Inc., was renamed R.J. Reynolds Tobacco Holdings, Inc., and became an independent, publicly traded company again, with R.J. Reynolds Tobacco Company as its wholly owned subsidiary. The separation was accomplished through a spin-off of the domestic tobacco business, on a tax-free basis in the United States, to RJR Nabisco's stockholders. In a stock distribution on June 14, 1999, RJR Nabisco stockholders of record as of May 27, 1999, received one share of RJR for every three shares of RJR Nabisco they owned.

Reynolds American became the parent company on July 30, 2004, following a business deal that combined the nation's No. 2 and No. 3 tobacco companies, R.J. Reynolds Tobacco Company and the U.S. operations of Brown & Williamson Tobacco Corp., under the Reynolds Tobacco name.

The company acquired Niconovum AB in 2009.


The following benefits are for R.J. Reynolds Tobacco employees:

- Generous annual bonus program for all employees.
- Daily-valued 401(k) plan that offers opportunity to save on pre- and post-tax basis up to 50 percent of eligible compensation. Company matches 100 percent of employee pre-tax contribution up to six percent.

Comprehensive health- and welfare-benefits package, including:
­  Choice of medical and dental programs;
­  Option to purchase vision coverage;
­  Company-paid term-life insurance;
­  Option to purchase additional life insurance for employee and dependents;
­  Company paid short- and long-term disability benefits;
­  Option to purchase supplemental disability coverage;
­  Dependent day-care and health-care spending accounts;
­  Option to purchase long-term care insurance; and,
­  Child-care and elder-care resource and referral services available to employees in the Winston-Salem area.

- 11 paid company holidays annually, plus a generous paid vacation plan based on length of service.
- Company-paid sick and personal days, funeral leave and jury duty leave. ·

Education initiative plans, including:
­  Tuition reimbursement;
­  Scholastic loan program;
­  Scholarships for dependent children; and,
­  Company-paid volunteer time at local schools

Updated October 27, 2010