Reynolds America moving ahead with dissolvable tobacco products..

November 18, 2008 - Reynolds American (RA) gave details to investors Monday, 11/17/2008 about its latest smokeless tobacco products, saying that it would begin selling Camel brand dissolvable tobacco products in mid- to late January in three trial markets. R.J. Reynolds Dissolvables - it looks like candy..

Anti-tobacco groups objected last month when Reynolds first said it would begin selling dissolvable tobacco.

"These new products pose serious threats to the nation's health," a statement from the Campaign for Tobacco-Free Kids. "They are likely to appeal to children because they are flavored and packaged like candy, are easy to conceal even in a classroom and carry the Camel brand that is already so popular with underage smokers."

Reynolds defended the new dissolvable tobacco in part by saying the products come in child-resistant packs. IS THIS ENOUGH - WE'RE NOT TALKING ABOUT TWO YEAR OLD KIDS..

Brice O'Brien, a senior vice president of growth and innovation at RA, told investors, "We're very excited about the potential of these modern smoke-free products." O'Brien said it was too early to tell if dissolvable tobacco would prove to be a breakthrough innovation, like menthol or filtered cigarettes. But he said focus group testing on adult smokers showed greater interest for dissolvable tobacco than for snus.

Camel Snus, RA to take it national early next year, is also spitless, but some smokers said they didn’t care for loose tobacco or pouched smokeless products, particularly ones they had to remove from their mouth after use.

Advertising is still being developed, but a company rep said print ads, direct marketing, sampling (at bars and nightclubs) and POP will support. The Reynolds American unit currently has a company policy that restricts advertising cigarettes in consumer publications. That self-imposed ban does not apply to other tobacco products and trade publications. Gyro, Philadelphia, and Agent 16, New York, are the lead agencies.

A 2007 study by the American Cancer Society found that male smokers who switched to smokeless had higher death rates than men who quit or never smoked.

Reference: Reynolds American to sell dissolvable tobacco by Vinee Tong, AP Business Writer, 11/17/2008 and R.J. Reynolds Preps Dissolvable Tobacco by Mike Beirne, Brandweek, 10/8/2008.