Только актуальная информация для русскоязычных пользователей из самых разнообразных сфер мирового бизнеса, не забываем комментировать.
Новое на сайте
Reynolds will be forced to add Doral cigarette brand to Federal Trade Commission, to get approval to purchase Lorillard Inc for $27.4 billion because of Newport brand. This will happen if Reynolds wants to complete the deal in the first half of 2015.
In July 15 Reynolds Inc. sold to Imperial Tobacco Group Plc such famous cigarette brands as Kool, Salem and Winston and Maverick cigarettes, blu eCigs electronic cigarette brand from Lorillard. Based on the results of this deal Imperial has committed to paying $7.1 billion for the brands, as well as to acquire Lorillard's headquarters and production operations in Greensboro, its plant in Danville, Va., and the vast majority of its 2,900 workforce.
After the completion of all transactions American cigarette manufacturers will be placed as follows:
- Philip Morris USA would continue to be No. 1 at nearly 51%
- Reynolds would rise to 33% as No. 2
- FTC No. 3 U.S. manufacturer, near 10.3%
Doral cigarette brand will be included if the combined market share of cigarette brands Salem, Winston and Kool will don't represent at least 4.9% of the deal. In July Winston cigarettes was the No. 7 and held a 2.2% U.S. market share, Kool brand - 1.9%, Salem - 1.2% and Lorillard's Maverick held a 2% market share.
Doral represented one of the best financial contributors among the Winston, Kool, Capri, Misty and Salem cigarette brands, its net sales were $278 million in 2013 (or 3.4%), operating income - $114 million, and $70 million of net income.
This year's income of Reynolds American Inc.'s net income rose 4.9%, analysts expected $2.18 billion income. Volumes for such famous cigarette brands as Camel grew 3% but Pall Mall decreased 1.5%, that nevertheless improved the company's position in the market.
Let us remind that in 2004 Reynolds bought Brown & Williamson Tobacco Corp. for $ 4.4 billion and spend a considerable part of equity on marketing such brands as Camel and Pall Mall cigarettes, Grizzly in moist snuff, the Natural American Spirit premium cigarette brand and Vuse, its e-cig brand.
The company's goal with the support brands is to maintain the loyalty of current smokers while reducing spending on marketing aimed at luring smokers to switch brands.