Lower Trademark Value of Reynolds' Kool cigarette brand. .


October 13, 2008 - Back on September 10th we reported that R.J. Reynolds Tobacco Company (RJR) subsidiary of Reynolds American, Inc. would be scaling back marketing and promotional support for its Kool menthol brand cigarettes.

As a result, RJR has moved Kool from a "growth" brand to a "support" brand. Under accounting rules, that triggered an analysis of the trademark's value. The reduction in Kool's value is due to the reduced marketing support the brand will receive going forward. With this change, R.J. Reynolds has two growth brands, Camel and Pall Mall.

Reynolds American Inc. said on October 9, 2008 that RJR will record a third-quarter pre-tax non-cash charge of approximately $175 million associated with the lower trademark value of its Kool cigarette brand.

Reference:
Change in Focus for Kool Triggers R.J. Reynolds Charge
, MarketWatch.com, 10/9/2008.

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