RAI moves to unite brand strategy

Reynolds American Inc. is putting in place a new, wholly-owned subsidiary to facilitate the sales, distribution and retail/wholesale strategy execution for R.J. Reynolds Tobacco Company, American Snuff Company, Santa Fe Natural Tobacco Company, and R.J. Reynolds Vapor Company brands, under service agreements.

RAI Trade Marketing Services Company (RAI TMS) will start operations on January 1.

“With the creation of RAI TMS, the industry’s leading trade marketing teams will be united in purpose behind the industry’s best brand portfolio,” said Mike Auger, president of RAI TMS.

“This new organization capitalizes on an opportunity to create an even stronger team, and to accelerate the marketplace momentum and long-term growth of RAI operating company brands.”

“It also offers benefits to business partners as they will have a single point of contact, and the field trade marketing team will continue to offer valuable guidance on business growth across the total tobacco category to retail partners.”

In a note posted on its website, RAI said that the new trade marketing structure would not result in ‘job eliminations’ among current trade marketing employees.

‘All trade marketing employees interested in moving forward with RAI TMS will have the opportunity to do so,’ it said.