R.J. Reynolds Global Products, Inc. Reaches Agreement With Japan Tobacco, Inc. to Purchase the Rights to Sell Cigarette Brands i
December 19 2005 - 10:25AM
PR Newswire (US)
WINSTON-SALEM, N.C., Dec. 19 /PRNewswire-FirstCall/ -- R.J.
Reynolds Global Products, Inc. (GPI) today announced it has entered
into an agreement with Japan Tobacco Inc. (JT) and its group of
companies to purchase the rights to sell several cigarette brands
formerly sold by the JT Group to U.S. duty-free shops and U.S.
overseas military outlets. The companies expect the deal to be
closed by the end of the year. Financial terms of the transaction
are not being disclosed at this time. Brands covered by the
agreement include Camel, Winston, Salem, Now, Vantage, More and
Doral. The JT Group retains its international rights (other than in
U.S. overseas military outlets) to the brands included in today's
agreement. Following the 2004 business combination of R.J. Reynolds
Tobacco Co. and the U.S. business of Brown & Williamson Tobacco
Corp. (B&W), GPI assumed responsibility for managing the brands
formerly distributed by B&W in U.S. duty-free and U.S. overseas
military markets, including Kool, Dunhill, Lucky Strike, Pall Mall,
Silk Cut, Senior Service, State Express 555, Newport and Capri.
"The addition of these strong brands to our portfolio will enable
us to consolidate our marketing efforts to our U.S. adult smokers
who purchase products in these two channels," said John A.
Scarritt, president of GPI. "These are important brands in U.S.
duty-free and U.S. military outlets, and we can leverage our
existing infrastructure more efficiently, while achieving greater
economies of scale, by enhancing our existing strong brand lineup."
R.J. Reynolds Global Products, Inc. (GPI) manufactures, sells and
distributes American-blend cigarettes and other tobacco products to
a variety of customers worldwide. GPI is an indirect wholly owned
subsidiary of Reynolds American Inc. (NYSE:RAI), and is responsible
for managing and developing international business opportunities.
The major lines of business for GPI fall into two areas: portfolio
markets (providing cigarettes for retail sale) and
business-to-business markets (providing cigarettes and components
to other manufacturers). The portfolio markets include Puerto Rico,
R.J. Reynolds- Gallaher International (a joint venture in Europe),
and business in the Pacific U.S. territories, overseas U.S.
military and at U.S. duty free outlets. In the business-to-business
area, GPI manages contract manufacturing for major international
customers and sells tobacco components to cigarette manufacturers
worldwide. DATASOURCE: R.J. Reynolds Global Products, Inc. CONTACT:
Craig Fishel of R.J. Reynolds Tobacco Co., +1-336-741-1674 Web
site: http://www.rjrt.com/
Copyright
Reynolds (NYSE:RAI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Reynolds (NYSE:RAI)
Historical Stock Chart
From Jul 2023 to Jul 2024