Conwood Expansion - the bright spot for Reynolds American, Inc..

January 20, 2009 - Conwood, the smokeless-tobacco subsidiary of Reynolds American Inc. (RAI), is preparing for its second major production expansion in less than two years in Clarksville, TN. RAI on May 31, 2006 completed its $3.5 billion acquisition of a holding company (from business interests of the Pritzker family) that owns Conwood Company. Conwood traces its roots back to 1782 the founding of the Garrett Snuff Company) Conwood and its predecessor, the American Snuff Co., have been in Clarksville for 101 years (1907). Our Company - A 200 Year Tradition Of Quality Smokeless Tobacco)

Recently, Conwood completed the construction of a $30 million, 88,000-square-foot plant.

Conwood is the second-largest smokeless-tobacco manufacturer in the country, most known for its Kodiak and Grizzly moist snuff brands. In the third quarter 2008 Conwood posted a 10 percent increase in operating profit in the third quarter, with its Grizzly brand delivering double-digit volume growth. RAI - Revenues by Segment 2006.

In addition to making the Conwood brands at the new plant, Reynolds also is making Camel Snus there, said David Howard, a spokesman for Conwood and R.J. Reynolds Tobacco Co. This is interesting, regarding the making of Camel Snus - it was made in Sweden under contract, by British American Tobacco PLC, which owns 42 percent of R.J. Reynolds Tobacco. Then it was made in the Reynolds plant in Winston-Salem. and now by Conwood. The making of Camel snus has always been under the control of R.J. Reynolds Tobacco separate from all Conwood products.

Reference: Reynolds' smokeless subsidiary to expand
Conwood Co. is moving ahead on a $115 million plan in Clarksville, Tenn.
by Richard Craver, Winston-Salem Journal, 1/16/2009.



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