Tag: reynolds american

Mustafa Named Influential Executive
Shay Mustafa | Photo: Reynolds
Shay Mustafa, senior vice president of business communications and sustainability for Reynolds, has been named one of the 2024 Most Influential Executives in Corporate America by Savoy magazine. Mustafa is among a dynamic and diverse group of CEOs, chief operating officers and top executives who exemplify exceptional leadership and influence in the corporate world.
A member of Reynolds’ U.S. executive team and member of the global leadership community for Reynolds’ parent BAT, Mustafa has a key role in helping to transform the tobacco and nicotine industry. In her current role, Mustafa leads the strategic communications and sustainability agenda for the U.S., the global BAT Group’s largest operating region. Previously, she held commercial leadership positions across the Reynolds organization’s brand portfolio, including launching, commercializing and responsibly marketing next-generation products.
“I am deeply honored to be recognized by Savoy magazine and to be among this highly influential and esteemed group of leaders,” said Mustafa in a press release. “Collectively, our leadership is transforming companies across the globe and ushering in more diversity within the leadership ranks.”
“The Savoy recognition shines a bright spotlight on the careers of accomplished corporate leaders and serves as a beacon to those who are just starting on their career journey and to those who are at a professional midpoint, seeking to break through to the executive level.”
Savoy magazine’s selection process for the Most Influential Executives in Corporate America involved a meticulous review of accomplishments in corporate influence, academic achievement, career growth, community outreach and recognition. This year’s list features over 300 distinguished professionals across various industries, demonstrating breadth and depth of talent in leadership.
Mustafa was a 2023 Global 100 Empower Executive, recognizing efforts to promote diversity and inclusion. She is also the executive sponsor of the African American Employees Resource Group at Reynolds. In 2023, she founded BAT’s Women’s Executive Network to advance and sustain gender diversity and inclusivity within BAT’s executive leadership ranks globally.
April 17, 2024
Clearing the Smoke

James Murphy (Photos: RAI)
Reynolds’ James Murphy discusses the challenges and
opportunities for tobacco harm reduction.
By Stefanie Rossel
In September 2020, James Murphy took over as executive vice president of research and development at Reynolds American Inc. (RAI), a subsidiary of British American Tobacco and the second-largest tobacco company in the U.S. Tobacco Reporter caught up with Murphy to discuss the challenges and opportunities he faces in his position.
Tobacco Reporter: Upon assuming your position, you conducted a poll among 2,000 U.S. consumers. What were the main findings, and what do you make of them?
James Murphy: We did a poll of 21-plus adults to examine issues related to tobacco harm reduction [THR] because it is an incredibly important priority for us. The results were consistent with other published research; there is confusion about whether innovative products—such as e-cigarettes—present less risk, and in particular, the role of nicotine as a cause of harm.
A similarly large proportion misunderstand nicotine as a cause of smoking-related diseases. Many adult smokers simply do not know that the toxicants generated from tobacco combustion—rather than nicotine or tobacco itself—is the leading cause of smoking-related health harm. Lack of information creates steep barriers for adult smokers to consider a switch to smoke-free tobacco and nicotine alternatives that are potentially less harmful to their health.
Misunderstandings about innovative alternative products, and nicotine itself, are a hurdle toward shared progress. The good news is that reducing harm from combustible tobacco products was considered an important public health priority by more than two-thirds—70 percent—of the adults we surveyed. Thus, there is strong public recognition of the need for innovative solutions to the harms caused by smoking.
This data underscores our commitment and focus on building productive working relationships with legislators and regulators around the country in pursuit of our common goal: reducing smoking rates, keeping tobacco products away from teenagers and ultimately reducing the harm from smoking in America.
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Amid all restrictions on tobacco industry communications, what can the sector do to change consumers’ misperceptions on these issues and encourage smokers’ movement to less hazardous products?
This is a significant issue, and we are engaging with policymakers and legislators—many of whom share such misunderstandings—and the larger scientific and regulatory community. Misunderstanding of nicotine impairs harm reduction, and it must be addressed. As is well studied and understood, the toxicants from the combustion of tobacco drive smoking-related morbidity and mortality.
Yet behavioral research confirms consumer confusion on this point, and recent population-level data published by the Society for Research on Nicotine and Tobacco (SRNT) highlight that up to 80 percent of U.S. adults incorrectly believe that nicotine is responsible for most of the cancer caused by smoking.
Similarly, misunderstanding vapor and vapor flavors can lead to detrimental policies banning products, flavors and even categories of products, whose removal from market could create the unintended consequence of indirectly pushing adults and minors toward cigarettes. We saw this recently in the Yale School of Public Health study regarding San Francisco’s ban on flavored products, where the author found that it was associated with a significant increase in youth smoking there but not in other jurisdictions without the ban.
Regulatory policy should be based on the relative risks of tobacco products. We are committed advocates for a legislative and regulatory framework that recognizes the continuum of risk and includes risk-proportionate policies on taxation, public use and flavors and other aspects of the product that are important to encouraging adult smokers unwilling to quit to switch from cigarettes. Where regulation is based on scientific evidence and not opinion, public policy will benefit public health and contribute to better understandings of these important products.

RAI’s R&D center
During your recent presentation at the GTNF In Focus event, you hinted at the challenge of assessing the risk profiles of other next-generation products, such as modern oral nicotine, for which no epidemiological data are available yet. Can you elaborate?
The FDA is carefully vetting these products, and I have every confidence that their assessment is science-driven and made against the rigorous statutory standard of “appropriate for the protection of public health.” For newer products, such as THP and modern oral nicotine pouches, like vapor with less than a decade on the market, epidemiological data is still in progress.
In the absence of epidemiology, we use a weight-of-evidence approach comprised of laboratory, clinical and real-world population level studies. In our studies, we include both smokers and smokers who quit smoking as epidemiological gateposts and compare clinical and population outcomes for smokers who switch to the next-generation products (NGPs) against these two smoker statuses.
Consider snus usage in Sweden as a strong illustration of THR in action. Smokers have switched to using snus over several decades, and the country now has the lowest lung cancer rates in the whole of the EU. This epidemiological data is the cornerstone of substantiating the beneficial population health impacts of products like snus in countries like Sweden but also within the USA.
In studies we have conducted and published to date, we have demonstrated that users switching to NGPs have similar biological outcomes to smokers who quit. As quitting has known favorable epidemiological outcomes, we can bridge the switch to NGP to quitting and conclude that both will have similar epidemiological outcomes, which would benefit population health in the long run.
The FDA has announced plans to ban menthol as a characterizing flavor in combustible cigarettes and has suggested that the agency may also reduce the nicotine content in cigarettes. Do you consider such measures as a sufficient incentive for smokers to switch to less harmful alternatives? What else needs to be done?
My concern is that any risk-based product standards on cigarettes will lead to confusion in the marketplace. For example, if a menthol product standard is introduced, smokers might wrongly perceive nonmenthol cigarettes as less risky. We know already that the general population misperceives the risks of nicotine when administered in a combustible product versus a noncombustible product and that there are misperceptions regarding the relative risks of vaping compared to smoking. THR presents a better way of reducing the harms from combustible tobacco use. Today in the U.S., millions of smokers have switched to products like vapor or nicotine pouch products. I have spent my career focused on THR and believe we must enable the introduction of satisfying, reduced harm alternatives that will facilitate the switching of smokers down the risk continuum while at the same time ensuring that adequate safeguards are in place against youth usage.
The FDA has recently spoke of finding this “sweet spot,” and ideally, all stakeholders in the THR debate will collaborate to make that happen.

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What are your current research priorities?
Topline, we’re focused on reducing the health impact of our business based on scientifically substantiated reduced-risk products. These products will improve public health and ensure we have a sustainable future. That means establishing and supporting the weight of scientific evidence that appropriately stewarded noncombustion tobacco and nicotine products manufactured to high-quality standards have a role in THR.
In the U.S., we believe that the FDA will play a key role with their stewardship of the PMTA process to ensure that products which are appropriate for the protection of public health remain on market. This regulatory verification will improve smokers’ confidence in these products and facilitate the mass migration of smokers down the risk continuum. There is a large and growing body of evidence—including from Reynolds’ scientists—to support the reduced-risk potential of these categories.
We take two approaches for assessing the risk profile of noncombustible products: if a product has robust epidemiological data, then that data is used as a basis for risk assessment, but for newer products, in the absence of epidemiology—such as THP, vapor and modern oral products—we use a three-stage assessment of emissions, exposure and risk.
Judging from the results of your poll and from recent FDA moves, such as the proposed ban on menthol and planned maximum, nonaddictive nicotine levels in combustible cigarettes, which direction is THR taking in the U.S.?
We believe our broad portfolio of alternatives to combustible cigarettes can accelerate the population-level health benefits supported by the Family Smoking Prevention and Tobacco Control Act and envisioned by the FDA in its consistent endorsement of a comprehensive nicotine regulatory framework.
Potentially less harmful products must be able to compete effectively with the most harmful products, thus moving smokers down the risk continuum of nicotine products. Vaping bans and high taxes on alternatives that may present less risk than cigarettes will not help us reduce the harm from cigarette smoking.

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What are the gaps in THR science from your point of view?
The biggest gap in THR science is caused by an ongoing boycott by various scientific conferences to publicize and share the latest THR research. The recent news from SRNT banning the tobacco industry from future conferences is particularly disappointing. The largest U.S. scientific conference on nicotine and tobacco research banning industry scientists seems counterintuitive. Moreover, the learning process is not merely what we share, but what we can learn from others. Personally, some of the most valuable professional insights I have received were from other U.S.-based academics commenting on our research during SRNT poster sessions.
Science—particularly science that underpins such important public health goals—deserves to be debated on its merits, particularly when the science on those same products is under scientific review by the FDA.
There is room for more consistent methodologies to ensure the consistent assessment of products as there is sometimes conflicting data published on both sides of the THR debate. There is also a gap in evidence for assessing THR products in that we do not have epidemiological data for newer products like THP, vapor [and] modern oral, which have only been on market for five [years] to ten years. That data gap points to a need for agreed proxies to assess individual risk reduction, such as biomarkers of potential harm and quality-of-life measurements, and other real-world evidence which may play a role.
Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.

August 1, 2021
Reynolds American Appoints Senior Leaders

Photo: RAI
Reynolds American Inc. has appointed two senior leaders.
Shay Mustafa, currently senior vice president of modern oral, will assume the role of senior vice president of business communications and sustainability, reporting to Reynolds’ president and CEO, Guy Meldrum. Mustafa will serve on the Reynolds management team and will also serve on the global business communication and sustainability leadership team.
Mustafa has successfully held leadership roles within the corporate sector and as co-founder of a technology start-up. Within the Reynolds companies, she has held a range of positions, including leading the Newport, Pall Mall and Grizzly brands. She has also set up the new modern oral business unit, which includes the Velo brand.
Leila Medeiros, currently senior vice president of vapor, will become senior vice president of new categories, which combines the leadership of the Reynolds companies’ Vuse vapor and Velo modern oral brands.
Medeiros joined the BAT Group in 2001 in Brazil and has successfully served in numerous leadership roles in different BAT geographies before assuming her current position in the U.S.
March 3, 2021
BAT-Led Price Hike Hints at Strength U.S. Market

Photo: CarolRobert – Dreamstime.com
British American Tobacco (BAT) announced an average cigarette list price hike of $0.13 per pack, according to Goldman Sachs. The move reflects a price increase of between 2 percent and 3 percent.
According to the investment bank, it is the first time in recent history that BAT and its subsidiary, RAI, have led a price increase in the U.S. The price increase is BAT’s third this year.
Morgan Stanley said BAT’s move underscores the strength of the U.S. cigarette market. “U.S. cigarette fundamentals have been unusually strong throughout 2020, with industry volumes declining 2.5 percent in 2020 year-to-date within measured channels and MO [Altria Group] estimating the industry will decline by 2 percent to 3.5 percent year-on-year in 2020, the best performance since 2016,” the financial firm wrote in an statement.
“Unlike the last several years in which a higher rate of volume declines necessitated greater pricing, we believe manufacturers are being opportunistic in taking pricing this year given the strength of the category. BAT’s pricing decisions may also be influenced by its confidence in its U.S. brand portfolio, fundamentals outside of the U.S., and RRP [reduced-risk products] investments.”
Pricing is a critical driver of revenue and earnings growth in the tobacco industry, particularly as manufacturers realize almost three times the leverage on earnings from a point of pricing than a point of volume, according to Goldman Sachs.
The bank expects other cigarette manufacturers to follow with similar price increases soon.
“We had been expecting a price increase since several of our wholesaler contacts had informed us that they had started loading recently in anticipation of an increase,” the investment bank wrote in a note to investors.
“Given that this price increase is not effective until after 9/28, we expect more loading by the trade (both wholesalers and retailers) in the next couple of weeks, which should have a clear positive impact on Q3 volumes.”
September 15, 2020
Meldrum to Succeed Oberlander at RAI

Guy Meldrum (Photo: BAT)
Ricardo Oberlander
Ricardo Oberlander will step down as president of Reynolds American Inc. (RAI) and from the management board on Aug. 31, 2020. He will leave the BAT group at the end of the year. Oberlander has been with the group for almost three decades, over seven years of which as a member of the management board, firstly as regional director of the Americas and then latterly leading Reynolds American. Oberlander steps down to pursue other opportunities.
Guy Meldrum, currently regional director of Asia-Pacific and Middle East, will succeed Oberlander as president of Reynolds American effective Sept. 1, 2020.
Michael (Mihovil) Dijanosic, currently area director of Asia-Pacific, will be appointed regional director of Asia-Pacific and Middle East, replacing Meldrum.
“I am grateful for the drive and leadership that Ricardo has brought to the group throughout his career and for leaving the Reynolds American business in such robust shape,” said BAT Chief Executive Jack Bowles. “I would like to thank Ricardo for his significant contribution over the last three decades, including over seven years as a member of the management board. We all wish him the very best for the future.
“Guy’s extensive experience with BAT over the last 26 years, including a number of senior roles in Australasia, the North Asia Area, Russia and his recent experience in leading the Asia-Pacific and Middle East Region, will serve him well to further drive the transformation of Reynolds American.
“I am delighted to welcome Michael, who has over two decades of experience with the group, to the management board. He has held a number of senior leadership roles in Asia-Pacific across different markets and has been a member of the regional leadership team since 2012. This in-depth knowledge of the region positions him extremely well to succeed Guy.”
August 5, 2020
Court to Hear Arguments Over Disputed Florida Settlement Payments

Photo: Michal Kalasek | Dreamstime.com
A U.S. appeals court will hear arguments today in a dispute about $100 million in payments related to a landmark legal settlement between the state of Florida and tobacco companies, reports Florida Politics.
R.J. Reynolds Tobacco Co. wants the 4th District Court of Appeal to overturn a ruling that said the company is responsible for making payments to the state related to the Salem, Winston, Kool and Maverick cigarette brands.
R.J. Reynolds was part of the 1997 settlement in which cigarette makers agreed to pay hundreds of millions of dollars a year to the state because of smoking-related health costs and, in exchange, received liability protections.
In 2015, Reynolds’ parent company sold the four brands to ITG Brands to gain regulatory approval for its acquisition of Lorillard Tobacco Co. As a result of the sale, R.J. Reynolds contends it is no longer responsible for making payments linked to the four brands.
A Palm Beach County circuit judge, however, ruled in 2017 that R.J. Reynolds remained responsible for the payments. Reynolds appealed that ruling, and its arguments will be heard today.
ITG Brands, which was not part of the 1997 legal settlement agreement, contends the appeals court should uphold the circuit judge’s ruling that R.J. Reynolds is responsible for the disputed payments.
June 9, 2020
Trade Commission to Probe Altria and Philip Morris

The U.S. International Trade Commission (ITC) will investigate Altria and Philip Morris after a complaint was filed by R.J. Reynolds. The ITC will look into certain tobacco heating elements and components.
The ITC has not made a decision on the case but has said it will make its “final determination … at the earliest practicable time.”
May 13, 2020
Merger clears hurdle
The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 relating to British American Tobacco’s proposed acquisition of Reynolds American Inc. has expired without a request for additional information by the U.S. Department of Justice or the U.S. Federal Trade Commission.
The expiration of the Act’s waiting period satisfies the transaction closing condition related to U.S. antitrust approval.
The transaction still requires approval by RAI and BAT shareholders and regulatory clearance from Japan, and is subject to the satisfaction or waiver of the other closing conditions specified in the merger agreement.
The companies expect the transaction to close in the third quarter of 2017.
March 9, 2017
Thornburgh resigns from RAI board of directors
Richard E. Thornburgh resigned from the Reynolds American (RAI) board of directors and the board’s audit and finance committee, effective Dec. 7. Thornburgh had served on the RAI board as an independent director since December 2011.
“RAI’s shareholders, board and management have greatly benefited from Dick’s financial acumen and strategic advice and counsel over the last four years,” Thomas C. Wajnert, non-executive chairman of RAI’s board, said in a press release. “RAI has made tremendous progress on its mission to transform not only the company but our industry, including the successful completion of the acquisition of Lorillard, Inc. We are very grateful to Dick for the role he played in advancing key initiatives at RAI and contributing to our commitment to deliver outstanding shareholder value.”
December 11, 2015
Executive changes announced at RAI and its operating companies
Reynolds American Inc. (RAI) has announced several executive changes at both RAI and its largest subsidiary, R.J. Reynolds Tobacco Company. All the changes will be effective Oct. 1.
Debra Crew, who is currently president and chief commercial officer of R.J. Reynolds, will become president and chief operating officer of the company. She will assume management responsibility for the company’s manufacturing operations and research and development functions, in addition to her ongoing responsibility for the consumer and trade marketing functions.
Nancy Hawley, who is currently senior vice president of operations at R.J. Reynolds, will be promoted to executive vice president of operations for the company.
Daniel J. Herko, who is currently senior vice president of research and development for R.J. Reynolds, will be promoted to executive vice president of research and development for the company. Herko will also become an executive vice president of RAI Services Company and will be responsible for managing regulatory oversight for RAI’s subsidiaries.
When Crew assumes her new responsibilities, Jeffery Gentry, who is currently R.J. Reynolds’ executive vice president of operations and chief scientific officer, will move to a project role overseeing the ongoing integration of Lorillard operations into subsidiaries of RAI. Gentry plans to retire in the first half of 2016.
Thomas Adams, who served as RAI’s executive vice president and chief financial officer from 2008 to March 2015 and has been overseeing the integration of Lorillard operations, now plans to retire on Oct. 1, when Gentry assumes responsibility for overseeing the integration.
“Reynolds American places great importance on its talent-development and succession-planning processes,” says Susan Cameron, RAI’s president and CEO. “As a result, we have a talented pool of top-notch executives ready to move into key leadership roles for our companies. Strong people and strong brands are the keys to success in consumer packaged-goods businesses, and Reynolds American and its subsidiaries are fortunate to have both.”
September 14, 2015