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All of The News Stations and Commercial Talk Radio and All of Sports TV stations Across America Can't Broadcast or Show any Marlboro or Tobacco Products.... They are band from Advertising Marlboro... However this does not include the Patcnews ~ The Patriot Conservative News Tea Party Network; We can can This because I'm not under contact with the Gov. however all the News Networks stations who supports obama can't air or show Marlboro or Tobacco Products....
you can read More about this Report on Thw Wall Street The Wall Street Journal - http://www.wsj.org
Why Marlboro Maker Bet on Juul, the Vaping Upstart Aiming to Kill Cigarettes
Tobacco-giant Altria says its $12.8 billion investment in the hot e-cigarette company will give it a piece of the fast-growing segment of the market. FDA scrutiny poses risks.
RICHMOND, Va.—The biggest U.S. tobacco company has made a $12.8 billion bet on a company whose stated goal is to get smokers to drop cigarettes. The calculated gamble: The move will help the Marlboro maker keep up with a quickly changing market. The risk: It could hasten its own decline.
Facing an accelerating fall in cigarette sales, Altria Group Inc. in December put billions into Juul Labs Inc., a controversial startup whose sleek, nicotine-packed vaporizers have fueled a surge in the e-cigarette market.
Addressing employees gathered at the company’s headquarters after the deal, CEO Howard Willard said a bold change was necessary. Smokers were switching to vaping, and Altria’s own e-cigarettes were unlikely ever to catch up to Juul. But some workers were worried the new boss was undermining the company’s core business, which churns out more than 300 million sticks a day.
The investment for a 35% stake in Juul—plus a $1.8 billion bet on a Canadian marijuana grower the same month—upended a century-old company known for its steady share price and reliable, generous dividends. Altria’s credit rating was downgraded. Investors dumped the stock. Hundreds of scientists, designers, lawyers and other staff lost their jobs in restructuring after the partnership.
The deal also intensified scrutiny of Altria by federal regulators, who blame Juul’s products for an increase in underage vaping and who have already moved to restrict their sales.
It’s the dilemma facing many established companies in mature markets. How should one respond to new entrants that are disrupting the status quo, when the classic strategy—buy the disrupter—could potentially speed the decline of the legacy business? PepsiCo Inc. and Coca-Cola Co. have shifted away from sugary sodas by scooping up coconut water, coffee and kombucha. Big media companies such as Walt Disney Co. and AT&T Inc. are launching their own streaming services as they chase consumers who are cutting the cord. Walmart Inc. has invested billions in e-commerce sites such as Jet.com and India’s Flipkart as the retail giant works to fend off Amazon.com Inc.
Mr. Willard, 55 years old, said the leap into fast-growing Juul is the surest way to preserve the profits the company generates today by making 5 out of every 10 cigarettes sold in the U.S. “At a time when e-vapor is going to grow rapidly and likely cannibalize the consumers we have in our core business, if you don’t invest in the new areas you potentially put your ability to deliver that financial result at risk,” he said in an interview.
By Altria’s count, there are already 12 million adult vapers in the U.S., and the number is growing quickly. Many of those are cigarette smokers looking for a less harmful way to get their nicotine fix. Other vapers are children and teenagers who have never smoked before, and who acquire the devices even though sales are legally restricted to adults at least 18 years old. Youth use of e-cigarettes jumped 78% between 2017 and 2018—to one out of every five high-school students—thanks largely to the popularity of Juul.
The FDA this month announced new restrictions on retail sales of e-cigarettes in the fruity and sweet flavors the agency said appeal to youngsters. If underage use continues to increase, the agency could institute an outright ban on devices such as Juul’s, said Scott Gottlieb, the outgoing Food and Drug Administration chief.
Tobacco's New Landscape
E-cigarette sales are booming, while cigarette sales are shrinking, and Juul is the biggest player.
Retail volume growth
Juul’s share
E-cigarette
Cigarette
Note: Sales from retail stores tracked by Nielsen for the 52-week period ended on each date; web sales not included. Volume growth for four-week period.
Sources: Wells Fargo analysis of Nielsen data
The longtime Altria insider, who took over as CEO in May 2018, said he did it because the future is coming faster than he or his colleagues expected.
“I’ve never believed this before: 10 years from now the majority of the tobacco products that are sold could very well be noncombustible products,” said Mr. Willard, his 6-foot-6-inch frame folded into a white leather chair at Altria’s headquarters.
That would mark a major consumer shift. U.S. sales of cigarettes, cigars and smoking tobacco were nearly $107 billion last year, compared with about $15 billion in sales of smokeless tobacco and vaping products, according to Euromonitor International estimates, which include web sales. Vaping products made up $5.6 billion of those sales.
Although fewer and fewer Americans smoke each year, Altria has squeezed growing profits out of a market it has dominated for decades. Price increases have offset lower volumes, and the Marlboro brand has kept its grip on a U.S. market that for years has been shrinking 3% or 4% a year.
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Susan Cameron elected President and CEO of Reynolds American Inc.; Daniel Delen to retire
Reynolds American Inc.
P.O. Box 2990Winston-Salem, NC 27102-2990
Contact: Investor Relations: Morris Moore
(336) 741-3116
Media:
Maura Payne
(336) 741-6996
Related Interviews
RAI 2014-06
Susan Cameron elected President and CEO of Reynolds American Inc.; Daniel Delen to retire
WINSTON-SALEM, N.C. - April 16, 2014 - The board of directors of
Reynolds American Inc. (NYSE: RAI) has elected Susan M. Cameron
president and chief executive officer, effective May 1. She will also
remain a member of the RAI board of directors.
Cameron served as president, CEO and a member of the RAI board from 2004
to 2011. She also served as chairman of the board of RAI between 2006
and 2010. In 2011, she retired from the company and the board. She
rejoined RAI's board of directors in December 2013.
Cameron replaces Daniel M. Delen, who has chosen to retire and resign
from the RAI board. Delen has served as president and CEO of RAI since
2011. Delen will continue to consult with the company for two years to
ensure a smooth transition and provide strategic insights and other
services to management.
"Susan's 30 years of experience with our companies and her previous
service in this role make her an exemplary choice for this key
leadership position," said Thomas C. Wajnert, non- executive chairman of
RAI's board of directors. "Susan was the architect of RAI's 'total
tobacco' strategic direction more than 10 years ago, and we're pleased
to have her back with the company to further our vision of transforming
tobacco," Wajnert said.
"Under Daan Delen's leadership, RAI and its operating companies have
demonstrated that their strategic plans to transform tobacco are sound,
and their ability to operationally deliver against those strategies is
excellent. On behalf of the board and RAI's shareholders, I thank him
for his leadership and his commitment to providing outstanding returns
to our investors. We wish him nothing but the best in his future
endeavors," Wajnert said.
"I'm excited about returning to RAI," Cameron said. "Daan has provided
tremendous leadership over the last three years, and as a result, RAI
and its operating companies are foundationally very strong. Being back
on the board of directors for the last five months gave me the
opportunity to dive back into the businesses. RAI's strategic mission to
transform the tobacco industry is a fascinating journey. I'm looking
forward to the opportunity to not just advance, but accelerate, that
momentum as CEO," she said.
"I am confident that RAI and its operating companies will continue to
reach new levels of success - both commercially and in their influence
on the future of the tobacco industry," Delen said. "After 25 years in
this industry, I have the opportunity to pursue new interests, and I
will do so knowing that the RAI companies and their employees are in the
best possible hands to see that journey through," he said.
Web Disclosure
RAI's website, www.reynoldsamerican.com,
is the primary source of publicly disclosed news about RAI and its
operating companies. We use the website as our primary means of
distributing quarterly earnings and other company news. We encourage
investors and others to register at www.reynoldsamerican.com to receive alerts when news about the company has been posted.
ABOUT US
Reynolds American Inc. (NYSE: RAI) is the parent company of R.J.
Reynolds Tobacco Company; American Snuff Company, LLC; Santa Fe Natural
Tobacco Company, Inc.; Niconovum USA, Inc.; Niconovum AB; and R.J.
Reynolds Vapor Company.
? R.J. Reynolds Tobacco Company is the second-largest U.S. tobacco company. R.J.
Reynolds' brands include two of the best-selling cigarettes in the U.S.: Camel and Pall
Mall. These brands, and its other brands, including Winston, Kool,
Doral, Salem, Misty and Capri, are manufactured in a variety of styles
and marketed in the U.S.
? American Snuff Company, LLC is the nation's second-largest
manufacturer of smokeless tobacco products. Its leading brands are
Grizzly and Kodiak.
? Santa Fe Natural Tobacco Company, Inc. manufactures and markets
Natural American Spirit 100% additive-free natural tobacco products,
including styles made with organic tobacco.
? Niconovum USA, Inc. and Niconovum AB market innovative nicotine
replacement therapy products in the U.S. and Sweden, respectively, under
the Zonnic brand name.
? R.J. Reynolds Vapor Company makes and markets VUSE e-cigarettes, a highly differentiated vapor product.
Copies of RAI's news releases, annual reports, SEC filings and other
financial materials, including risk factors containing forward-looking
information, are available at www.reynoldsamerican.com. To learn how RAI and its operating companies are transforming the tobacco industry, go to the RAI website, Transforming Tobacco.
Teens say vaping deaths, potential flavor ban not stopping them from smoking e-cigarettes
MIAMI –– Charles Penichet has heard about the
dangers of vaping. But he's dismissive. After all, the practice is
quite popular among his friends at Florida International University
(FIU).
"I have friends now that are 19. …
They've been smoking for, like, two to three years, and they're like
pretty hardcore addicts," said Charles Penichet, 23, a senior on campus.
Paulina Nunez, a 21-year-old FIU senior, said what started as a casual habit for many teens has become an heavy addiction."A lot of my friends do smoke it," said Nunez. "It is just very accessible, very easy to use, and I feel like it's more socially acceptable than cigarettes."
Though e-cigarettes have come under fire following a growing number of vaping-connected deaths across the country, its use among teens continues to soar. Politicians are now trying to curb the practice by banning some flavored products popular among teens and offering treatment programs so addicts can kick the habit.
But a generation that has grown up "smoke-free" is becoming increasingly hooked on the Big Tobacco alternative: vaping. Researchers say what was once advertised as a way to get cigarette smokers to put down their smokes has become the first step on a road to youth addiction.
Vaping has become a nationwide epidemic that is filling rooms and lungs with smoke. Sleek, pencil-shaped electronic cigarettes loaded with nicotine and chemicals have many young adults hooked. Trendy brands offer "choices." Flavors such as watermelon and grape line the shelves, promising a healthier alternative to traditional cigarettes, and a way to blow off some steam.
But health officials say vaping could cost people their lives. The epidemic has caused numerous lung injuries, killing seven people so far, and sickening hundreds.
About 4.9 million middle and high school students were "current users" of some type of tobacco product in 2018, according to the Center for Disease Control and Prevention, meaning they had used a tobacco product within the last 30 days. That number was up from 3.6 million in 2017. College students in Florida explained why they got hooked on the habit.
"I like it because it has a delicious flavor. It has high amounts of nicotine. But it doesn't have the bad components of the cigarettes," said Abdullaziz Kawiyani, a sophomore at Florida International University.
Joseph Martinez, a sophomore, explained the appeal.
"It helps satiate a little fidget they might have," Martinez said. "It's portable. It's popular, you can do it anywhere, it doesn't produce any smoke. You can hide it from anyone."
Wasim Maziak, a professor and researcher in epidemiology at FIU, has been conducting research on e-cigarette users and their preferences. He says his studies show smokers have a noticeable preference for flavored items over generic tobacco flavors.
"Last year we had a sharp increase of about 80 percent from the year before in e-cigarettes. … This is not a casual hobby," Maziak said. "They are kind of really getting into the serious business of nicotine addiction."
CDC CORRECTS NUMBER OF VAPING-LINKED LUNG ILLNESS CASES
Cases of vaping-related illnesses have been reported in at least 36 states. The Centers for Disease Control and Prevention (CDC) is looking into at least 380 confirmed cases.
"Once they try it, the nicotine takes care of the rest, because they're going to be hooked. So the flavor, the varieties, the design, the social network, the kind of campaigning, all that, is just to entice young people to start it or try it," Maziak explained.
Joseph Martinez, a sophomore, explained its appeal.
"It helps satiate a little fidget they might have," Martinez said. "It's portable. It's popular, you can do it anywhere, it doesn't produce any smoke, you can hide it from anyone."
About 20,000 vape and smoke shops have popped up across the country over the last several years. Florida ranks as one of the top states selling the products in convenience stores. In party cities like Miami, vape shop owners say business is booming.
"It's a very touristic place, everybody wants to have fun, and when they want to have fun, they want to smoke a little," said Zayra Morales, a manager at the Vape and Smoke Shop in Miami.
E-CIGARETTES DAMAGE BLOOD VESSELS EVEN IF DEVICES DON’T CONTAIN NICOTINE, STUDY FINDS
While many states have passed some sort of law to regulate vaping, many are going after the flavors that appeal to youngsters. New York became the first state in the nation to ban the sale of flavored e-cigarettes. States including Michigan and California have also announced bans. Florida currently has pending legislation to ban flavored e-cigs. Now, even the feds are stepping in.
The Trump administration is working with the Food and Drug Administration to remove all non-tobacco flavors, including mint and menthol, from the national market. After the shelves are cleared, companies may be able to reintroduce their flavors if they submit a formal application and get the green light from the FDA.
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"I think you're depriving the industry from one of the most important recruiting tools for youth by removing flavor," Maziak said. "But as we know from the tobacco industry, it is going to be a complex story."
E-cigarette Basics More People Have Health Issues With E-cigarette They Are More Dangerous Than Marlboro E-cigarettes are devices that heat a liquid into an aerosol that the user inhales. The liquid usually has nicotine and flavoring in it, and other additives. The nicotine in e-cigarettes and regular cigarettes is addictive. E-cigarettes are considered tobacco products because most of them contain nicotine, which comes from tobacco.
Besides nicotine, e-cigarettes can contain harmful and potentially harmful ingredients, including:ultrafine particles that can be inhaled deep into the lungs flavorants such as diacetyl, a chemical linked to serious lung disease volatile organic compounds heavy metals, such as nickel, tin, and lead
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