FACTBOX: Altria gains lead in new market with UST Inc deal

Mon Sep 8, 2008 12:57pm EDT
 
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(Reuters) - Cigarette company Altria Group Inc (MO.N) agreed to buy UST Inc UST.N, the maker of Skoal smokeless tobacco, for $10.4 billion to benefit from a growing market as U.S. cigarette consumption declines.

UST is the largest player in the U.S. smokeless tobacco market and gives Altria an immediate lead in the industry over rival Reynolds American Inc (RAI.N), which bought smokeless tobacco maker Conwood in 2006.

Here is a look at the main players in the U.S. cigarette and smokeless tobacco markets and selected retail sales data:

ALTRIA

* Owns Philip Morris USA, cigarette brands include Marlboro, Parliament and Virginia Slims

* U.S. cigarette market share: 51 percent

* Second-quarter shipment volume: 43.6 billion cigarettes

UST

* Owns premium smokeless tobacco brands Skoal and Copenhagen

* U.S. smokeless tobacco market share: 58 percent

* Second-quarter premium brands volume: 143.2 million cans

REYNOLDS AMERICAN INC

* Owns Camel, Pall Mall and Kool cigarette brands under R.J. Reynolds Tobacco Co

* Owns Conwood, home to the Grizzly and Kodiak smokeless tobacco brands

* Conwood smokeless tobacco market share: 27.8 percent

* R.J. Reynolds U.S. cigarette market share: 28.1 percent  Continued...

 

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