Reynolds American Inc.'s third-quarter profit rose 16 percent on sales of smokeless tobacco and higher cigarette pricing

October 25, 2007 - Reynolds American Inc.'s third-quarter profit rose 16 percent on sales of smokeless tobacco and higher cigarette pricing. Conwood Co., the smokeless tobacco business the company acquired in May 2006, continued to deliver strong results, as its brand Grizzly, led the way. The Conwood Division had a 0.3 basis-point increase in market share to 25.9 percent, with increased sales of Grizzly offsetting a decrease in sales of Kodiak. To further build on Grizzly's momentum, the company said will continue testing two new styles, Grizzly Pouches and Grizzly Snuff. Reynolds reported its overall market share in cigarettes declined 0.76 basis points to 29 percent. But the market share of its growth brands - Camel, Kool and Pall Mall - rose 0.59 basis points to 13.2 percent. Regarding Camel SNUS: The company said it has seen "significant interest" in Camel Snus, in the expanded test market. Chief Financial Officer Dianne M. Neal said the product is "getting a lot of repeat business," with high interest from cigarette smokers, but added, "this is a new category in the U.S. and the education (behind the product) is very important." See related SNUS results 3rd quarter 2007Rush to Judgement.Click on Image to Enlarge.. Grizzly may have been discounted because of the NEW DEEP DISCOUNT SMOKELESS BRAND BOBCAT IS MAKING WAVES. (TobaccoWatch.org)