Tag: Reynolds

  • Reynolds Launches Non-Nicotine Vape

    Reynolds Launches Non-Nicotine Vape

    Image: Wall Street Journal

    R.J. Reynolds Vapor Company (RJRVC), an operating company of Reynolds American Inc. (Reynolds American), BAT Group’s U.S. subsidiary, is expanding its innovative vapor portfolio with SENSA, a zero-nicotine vapor product.

    As the market leader in vapor with its Vuse products, RJRVC is joining the growing marketplace for zero-nicotine vapor products and aims to establish the highest standards in the industry, according to an emailed press release.

    SENSA products include a locking feature to prevent unintended usage, and adult consumers of the device will have access to Call2Recycle’s battery recycling program, which will facilitate the responsible disposal of SENSA batteries.

    “Adult tobacco and vapor consumers across the retail marketplace are looking for more options,” said Valerie Mras, senior vice president for RJRVC. “Adding a zero-nicotine product to our growing vapor portfolio is driven by deep adult vapor consumer insights and enables us to responsibly compete within a category that is already well established in many countries.”

    The SENSA portfolio of flavors is intended for adult tobacco and vapor consumers and does not include flavors intended to appeal to those who are underage. The product will be responsibly marketed to adult tobacco and vapor consumers consistent with the Reynolds American organization’s marketing practices for tobacco and nicotine products, according to the release. All web properties will be age-gated.

  • Nicotine Market Shares Flat in December

    Nicotine Market Shares Flat in December

    Tobacco Reporter Archive

    Consumer demand for nicotine products has fluctuated due to inflation and rising cigarette prices over the past 13-19 months. However, the Neilsen report covering the four-week period ending Dec. 30 shows that market shares are holding steady for both next-generation and traditional tobacco brands.

    The market share of R.J. Reynolds’ top-selling Vuse e-cigarette remained flat at 42 percent in December at convenience stores, according to the report. While Vuse’s market share was unchanged, No. 2 Juul dropped from 24.3 percent to 24.2 percent for the report covering the four-week period ending Dec. 30.

    As recently as May 2019, Juul held a 74.6 percent share in the U.S. electronic cigarette market. That’s when a series of regulatory actions led to product-reduction concessions, according to media reports.

    Meanwhile, Altria Group’s ownership of No. 3 NJoy hasn’t resulted in a meaningful market-share increase so far. Nielsen cited a research error by why it did not include an update for NJoy in the latest report. It was at 2.6 percent in the previous report.

    Fontem Ventures’ blu eCigs, an affiliate of Imperial Brands Plc, was unchanged at 1.2 percent.

    The overall e-cigarette category was down 9.9 percent.

    In traditional cigarettes, Philip Morris’ top market share was at 50.6 percent in the latest Nielsen report with top-selling Marlboro representing 45.6 percent of overall market share.

    Meanwhile, Reynolds was at 33.2 percent with Newport at 12.9 percent and followed by Camel (7.8 percent), Natural American Tobacco (3.7 percent) and Pall Mall (3.7 percent).

    ITG was at 8.5 percent overall, although ITG has said its market share is closer to 10 percent. Its No. 7 Winston brand remained at 2 percent, while Kool and Maverick remained tied for No. 8 at 1.8 percent.

    Goldman Sachs analyst Bonnie Herzog said that “in terms of specific company trends, total nicotine sales declines improved across the board for Altria, BAT, Imperial and Juul, while decelerating for all other manufacturers broadly in the latest period.”

    The decline in cigarette sales continues at a strong pace, said David Sweanor, an adjunct law professor at the University of Ottawa and the author of several e-cigarette and health studies.

    “Yet, as Altria results showed and Barclays recently highlighted, much of this is due to cross-category migration,” Sweanor said.

    “People are switching to far lower-risk options. But disposable vaping products appear to currently be the greatest factor in this migration.”

    TD Cowen analyst Vivian Azer said consumers’ cigarette “downtrading to discount and deep discount continues to benefit Imperial’s share trends.”

  • Reynolds Breaks Ground on WaterHub

    Reynolds Breaks Ground on WaterHub

    Image: Reynolds

    Reynolds American Inc., the BAT Group’s U.S. subsidiary, broke ground on the WaterHub at the Reynolds Operations Center in Tobaccoville, North Carolina. The WaterHub is an advanced water recycling facility and product of a subsidiary of NextEra Energy Resources. Several city and state leaders, NextEra Energy Resources and Reynolds representatives and others involved in the WaterHub project gathered Thursday as Reynolds demonstrated progress on its commitment to excellence in environmental stewardship with the project’s official groundbreaking celebration.

    Once construction is complete, the WaterHub is expected to reclaim more than 60 million gallons of water per year, equivalent to the annual water supply of approximately 550 average U.S. households. This installation aims to reduce Reynolds’ environmental footprint and conserve water in Forsyth County’s Yadkin Pee Dee River Basin.

    “Through the WaterHub, we expect to reduce water withdrawn at the Reynolds Operations Center by over 40 percent, which in turn would reduce the water withdrawn across our global operations sites by approximately 6 percent,” said Bernd Meyer, executive vice president of operations at the Reynolds organization, in a statement. “We are doing our part in preserving precious natural resources, and today celebrates a significant investment and long-term commitment to environmental sustainability.”

    The WaterHub at the Reynolds Operations Center will be one of the few projects of its size in the U.S. using advanced water reclamation technologies, allowing Reynolds’ operating facilities to reduce their dependence on potable water for factory utility operations. 

    “At NextEra Energy Resources, we are dedicated to offering innovative solutions that help businesses like Reynolds in achieving their sustainability and environmental responsibility objectives,” said Gary Morris, vice president of distributed generation for NextEra Energy Resources. “The WaterHub not only actively conserves water resources but also bolsters operational resilience.”

    This project complements Reynolds’ work to use water efficiently across its operations facilities. The American Snuff Company facility in Clarksville, Tennessee, and R.J. Reynolds Tobacco Company Whitaker Park site in Winston-Salem, North Carolina, both recently earned Alliance for Water Stewardship (AWS) Certification. Reynolds’ Operations Center in Tobaccoville earned this AWS designation in 2022.

  • Reynolds Expands American Snuff Facility

    Reynolds Expands American Snuff Facility

    Image: Reynolds

    Reynolds American Inc. announced the opening of the recently expanded American Snuff Company (ASC) operations facility in Clarksville, Tennessee. The investment in the facility will position the company for future growth and has already added over 70 roles to the facility’s workforce, with plans to add more in the coming months.

    ASC celebrated the newly enhanced space with a ribbon-cutting ceremony on Tuesday, Sept. 26, 2023. ASC’s significant investment in the property will increase certain production capabilities, optimize existing processes and allow for the installation of additional processing and packaging lines.

    “American Snuff Company has a long history of operations in Clarksville, and we are proud to further invest in our workforce and production capabilities at the site,” said David Waterfield, president and CEO of Reynolds, in a statement. “This expansion and considerable investment reflect our focus on delivering long-term, sustainable growth for the future of our business.”

    The site will further accommodate research and development and create capacity for additional shipping, receiving and tobacco curing. Additionally, the expanded site will include modernized quality labs, maintenance shops and employee areas.

    The Clarksville site expansion follows a strategic review of Reynolds’ U.S. operations that spanned several years. Historically, the facility used processed tobacco from regional farmers before being sent to other ASC factories for production. This move will bring processing and finished goods production under one roof.

    ASC Clarksville is the Reynolds organization’s second-largest production facility in the U.S.

  • Countermove: Altria Sues Reynolds Over Patent Infringement

    Countermove: Altria Sues Reynolds Over Patent Infringement

    Photo: Reynolds Vapor Co.

    Altria Group has filed suit against competitor R.J. Reynolds Vapor Co. for patent infringement on e-cigarettes and associated products.

    Earlier, Reynolds filed its own patent-infringement suit against Altria and Philip Morris International over their IQOS heat-not-burn cigarette, a competitor of Reynolds’ Eclipse.

    Filed in the U.S. District Court for the Middle District of North Carolina, USA, Altria’s suit claims that Reynolds Vapor, owned by Reynolds American Inc. (RAI), violated nine patents held by Altria Client Services in producing its Vuse Vapor e-cigarette line. Altria contends that Reynolds’ Vuse brand of e-cigarettes uses heating technology, mouthpieces, batteries and liquid-filled pods covered by Altria’s patents for its Juul e-vapor products.

    “Reynolds Vapor has infringed on Altria’s intellectual property, and we are seeking financial damages for each of these violations,” Altria Client Services spokesman George Parman said Thursday, according to the story.

    Altria seeks unspecified monetary compensation but asks for “treble damages” for “defendant’s willful infringement” of the patents, as well as awards of compensation, supplemental damages after discovery cutoff and attorneys’ fees and expenses.