As part of its commitment to offering smoking pleasure for adult smokers, R.J. Reynolds Tobacco Co. will be making available Platinum styles of its Newport brand in the United States, starting this week.
According to Reynolds, Newport Platinum styles offer adult smokers a fresh take on Newport cigarettes with a refreshingly smooth menthol taste that is different from the traditional Newport family.
Newport Platinum will be available in two styles—Newport Platinum (Kings and 100’s), featuring a smooth taste; and Newport Platinum Blue (Kings and 100’s), featuring a full-bodied taste.
Newport Platinum is being offered in direct response to demand from adult menthol smokers for a different menthol product offering from the brand.
Newport is R.J. Reynolds’ top-selling cigarette brand. It is the No. 1 selling menthol cigarette brand in the U.S. and the second-bestselling cigarette brand in the U.S.
R.J Reynolds Tobacco’s US domestic cigarette volume during the year to the end of December, at 79.4 billion, was increased by 11.3 percent on that of the year to the end of December 2015, 71.3 billion.
Newport (acquired from Lorillard in June 2015) volume was increased from 18.9 billion to 34.4 billion, Camel volume was down by 2.2 percent to 20.3 billion, and Pall Mall volume was down by 5.2 percent to 18.9 billion; so the company’s total ‘drive brands’ volume was increased by 23.5 percent to 73.5 billion.
Volume shipments of RJR’s other brands (some of which were sold off in June 2015) were down by 50.0 percent to 5.9 billion.
During the three months to the end of December, RJR’s domestic cigarette volume, at 19.6 billion, was down by 2.3 percent on that of the three months to the end of December 2015, 20.0 billion.
Newport volume, at 8.6 billion, was down by 0.4 percent, Camel volume, at 5.0 billion, was increased by 0.8 percent, and Pall Mall volume, at 4.6 billion, was down by 5.8 percent; so .
the company’s total drive brand volume, at 18.2 billion, was down by 1.5 percent.
Volume shipments of RJR’s other brands during the fourth quarter were down by 11.4 percent to 1.4 billion.
Reynolds American Inc, whose business sectors take in RJR, Santa Fe and American Snuff, announced its full-year and fourth-quarter results yesterday.
In announcing its results, Reynolds said that industry cigarette volume had been down by 4.2 percent in the fourth quarter, which was slightly impacted by changes to wholesale inventory levels. ‘When adjusted for these wholesale inventory changes, fourth-quarter industry shipments were down approximately 4.5 percent compared to the prior-year quarter, and were down approximately 2.5 percent for the full year versus 2015,’ it said.
RJR’s share of the US cigarette market during the year to the end of December, at 32.0 per cent, was down from 32.2 percent during 2015.
Newport’s share was up from 13.5 percent to 13.9 percent, Camel’s share was down from 8.3 percent to 8.2 percent, and Pall Mall’s share was down from 7.9 percent to 7.7 percent.
The share held by the company’s other brands fell from 2.6 percent to 2.4 percent.
Meanwhile, Santa Fe’s cigarette (Natural American Spirit) volume during the year to the end of December, at 5.4 billion, was increased by 13.6 percent on that of that of the year to the end of December 2015, 4.8 billion, while its volume during the three months to the end of December, at 1.3 billion, was 7.4 percent up on that of the three months to the end of December 2015, 1.2 billion.
Santa Fe’s share of the retail market during 2016, at 2.2 percent, was up from 1.9 percent during 2015.
American Snuff’s volume during the year to the end of December, at 502.9 million cans, was up by 0.8 percent on that of the 12 months to the end of December 2015, 499.1 million.
Grizzly volume increased by 1.4 percent to 460.6 million cans, while sales of the company’s other moist snuff products fell by 5.2 percent to 42.4 million.
American’s volume during the three months to the end of December, at 125.9 million cans, was down by 1.5 percent from that of the three months to the end of December 2015, 127.8 million.
Grizzly volume was down by 0.8 percent to 115.4 million cans, while the volume of the company’s other brands fell by 8.1 percent to 10.5 million cans.
American’s share of the moist snuff market during the year to the end of December, at 33.4 percent, was down from 33.7 percent during the year to the end of December 2015.
Grizzly’s share was down from 30.9 percent to 30.8 percent, while the share of other brands was down from 2.8 percent to 2.6 percent.
RAI had net sales of $12,503 million during the 12 months to the end of December, 17.1 percent up on those of 2015.
Reported operating income was increased by 52.0 percent to $10,569 million, while adjusted operating income was up by 32.4 percent to $5,874 million.
Reported net income increased by 86.7 percent to $6,073 million, while adjusted net income was up by 31.6 percent to $3,303 million.
And reported net income per diluted share was increased by 65.4 percent to $4.25, while adjusted net income per diluted share was up by 16.7 per cent to $2.31.
“I’m pleased to report that Reynolds American concluded another milestone year with strong growth in fourth-quarter earnings and margin,” said Debra A. Crew, president and CEO of RAI. “Our companies’ continued delivery of excellent operating performance, including the impact of Newport’s successful integration, allowed us to accelerate returns to our shareholders in 2016.”
As part of its commitment to offering smoking pleasure for adult smokers, R.J. Reynolds Tobacco Co. will be making available Platinum styles of its Newport brand in the United States, starting this week.
