Tobacco

New RJR, PM USA Dissolvable Tests

Tobacco companies launch sticks, more in new markets
WINSTON-SALEM, N.C. & RICHMOND, Va. -- R.J. Reynolds Tobacco Co. and Philip Morris USA are launching dissolvable tobacco products in March in new test markets, reported The Winston-Salem Journal.

Reynolds told the newspaper that it has chosen Charlotte and Denver as markets for its second phase of testing for Camel Sticks, Camel Strips and Camel Orbs. The products will be sold in three mint styles, as well as a variety pack of all three.In December, Reynolds exited test markets in Columbus, Ohio; Indianapolis; and Portland, Ore., after two years to evaluate [image-nocss] the feedback it got from tobacco consumers.(Click here for previous CSP Daily News coverage of Reynolds' efforts. Andclick here for additional coverage of dissolvable tobacco.)

Reynolds spokesperson David Howard said the company has made adjustments to the packaging, marketing and product mix of its dissolvable products. Reynolds took a similar phased approach before its national launch of Camel Snus, another spit-free smokeless product.

And PM USA told the paper that it will test Marlboro and Skoal smokeless tobacco sticks in unidentified markets in Kansas.

PM USA spokesperson Ken Garcia said the Marlboro and Skoal stick products are aimed at giving smokers and moist-snuff dippers another tobacco option. The Skoal product is being marketed through US Smokeless Tobacco Co. LLC.

Altria Group Inc.'s PM USA and U.S. Smokeless Tobacco operating companies are planning to test market a new type of smokeless tobacco product in "limited distribution" in stores in Kansas starting in March, said The Richmond Times-Dispatch. The product, called a smokeless tobacco stick, is designed for smokers or snuff tobacco users looking for a spit-free alternative to traditional oral tobacco such as snuff.
The company will test market the product under the brand name of its most popular cigarette, Marlboro, said the report. Altria's smokeless tobacco subsidiary, U.S. Smokeless Tobacco Co., will test-market a smokeless tobacco stick using the Skoal name, its top-selling brand.

"We know that about a quarter of adult smokers have said they are interested in smokeless tobacco alternatives to cigarettes," Ken Garcia, a spokesperson for Altria Client Services, told the newspaper. "There is obviously an opportunity in the marketplace there with adult smokers, so we want to gain understanding of how this product connects with adult smokers."

The smokeless tobacco sticks consist of finely milled tobacco that is coated on roughly 2.5-inch-long wooden sticks, Garcia said. About two-thirds of the stick is coated with tobacco. The consumer places the stick in their mouth and "enjoys the tobacco flavor," as Garcia described it, and discards the stick when done.

The product will be sold in packs of 10 sticks, priced roughly equivalent to a premium moist smokeless tobacco brand, Garcia said. The Skoal and Marlboro products will be sold in four flavors.

Altria directly or indirectly owns 100% of each of PM USA, U.S. Smokeless Tobacco Co., John Middleton, Ste. Michelle Wine Estates and Philip Morris Capital Corp. PM USA cigarette brands include Marlboro, Alpine, Basic, Benson & Hedges, Bristol, Cambridge, Chesterfield, Commander, Dave's, English Ovals, Lark, L&M, Merit, Parliament, Players, Saratoga and Virginia Slims.. Moist smokeless tobacco brands include Copenhagen, Cope, Copenhagen Pouches, Skoal, Skoal Bandits, Skoal Pouches, Red Seal and Husky. Cigar brands include Black & Mild, Middleton's, Gold & Mild and Prince Alberts.

Winston-Salem, N.C.-based R.J. Reynolds is the second-largest U.S. tobacco company. The company's brands include five of the 10 best-selling U.S. cigarettes: Camel, Pall Mall, Winston, Doral and Kool. American Snuff (formerly Conwood Co.) is the nation's second-largest manufacturer of smokeless tobacco products. Its leading brands are Kodiak, Grizzly and Levi Garrett. Santa Fe manufactures Natural American Spirit cigarettes and other additive-free tobacco products, and manages and markets other super-premium brands. Niconovum markets nicotine replacement therapy products in Sweden and Denmark under the Zonnic brand name.

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