Reynolds American to Conquer Western Europe and Asia

Reynolds American

Reynolds American Inc, the tobacco company which produces Winston and Camel cigarettes brands, decided to put its efforts on company’s development on international market and especially on its brand called Natural American Spirit. The company wants to promote its brand in Western Europe and Asia.

Natural American Spirit is most popular and successful cigarettes brand in the USA. The brand is produced by Reynolds subsidiary Santa Fe Tobacco Co., which the company purchased for $340 million in January 2012.

Just like most regular cigarettes, Natural American Spirit is produced in two varieties: classic tobacco flavoring and with menthol aroma. It should be mentioned that one of company’s  manufacturing facilities is located in Oxford.

Compared to Camels, the price for a pack of American Spirit is from 20% to 25% higher. Thus its final price is from $6 to $7 a pack. The makers never sold the brand by discounts as they relied on its quality and ability to attract diirefent categories of smokers.

The manufacturer claims that American Spirit is an organic product which contains no harmful substances that cause addiction in traditional cigarettes. Data by Information Resources Inc. shows that the Natural American Spirit is in top US best selling cigarettes with a 1.8% market share as of December 31, 2014. That is up from 1.3% in 2013 and 0.25% in 2002.

Before Reynolds  bought the brand, it was sold in the Netherlands, Germany, the United Kingdom, Austria, Switzerland, Japan, Australia.

Andrew Gilchrist, the representative of Reynolds company told last week on an  analyst conference that internationally the Natural

American Spirit is most popular in Japan and Germany. The brand was recently launched in South Korea.

American Spirit is most popular cigarettes brand among young people.

Each year  Santa Fe enjoyed sales of  $94 million and a net income of $27 million when the company was acquired by Reynolds.

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