Full Description

Reynolds American Inc. (RAI), incorporated on January 5, 2004, is a holding company for R. J. Reynolds Tobacco Company, the cigarette manufacturer in the United States, and Conwood Company, LLC., the smokeless tobacco products manufacturer in the United States. The Company has two business segments: RJR Tobacco and Conwood. RAI’s wholly owned subsidiaries include R. J. Reynolds Tobacco Company; Santa Fe Natural Tobacco Company, Inc. (Santa Fe); Lane, Limited (Lane); R. J. Reynolds Global Products, Inc. (GPI), Conwood Holdings Inc. and Conwood Company, LLC and Rosswil LLC, collectively referred to as the Conwood companies. The RJR Tobacco segment consists of the primary operations of R. J. Reynolds Tobacco Company. The Conwood segment consists of Conwood Holdings, Inc., the primary operations of the Conwood companies and Lane. On December 31, 2008, Conwood Sales Co., LLC and Scott Tobacco LLC merged into Conwood Company, LLC. The Company’s wholly owned operating subsidiary, Santa Fe manufactures and markets cigarettes and other tobacco products under the NATURAL AMERICAN SPIRIT brand. On January 1, 2008, the management of RJR Tobacco’s brands, including those licensed from BAT, including DUNHILL and STATE EXPRESS 555, was transferred to Santa Fe.

RJR Tobacco

As of December 31, 2008, RJR Tobacco’s selling cigarette brands included CAMEL, KOOL, PALL MALL, DORAL and WINSTON. Those brands, and its other brands, including SALEM, MISTY and CAPRI, are manufactured in a variety of styles and marketed in the United States. RJR Tobacco also manages contract manufacturing of cigarettes and tobacco products through arrangements with British American Tobacco p.l.c. (BAT) affiliates. On January 1, 2008, the contract manufacturing business of GPI was transferred to RJR Tobacco. RJR Tobacco owns its cigarette manufacturing facilities, located in the Winston-Salem, North Carolina area, known as the Tobaccoville manufacturing facility and the Whitaker Park complex.

The Company competes with Philip Morris USA Inc. and Lorillard Tobacco Company.

Conwood

RAI’s other operating segment, Conwood, is a smokeless tobacco product manufacturer in the United States. Conwood’s primary brands include its selling moist snuff brands, GRIZZLY and KODIAK. Conwood’s other products include loose leaf chewing tobacco, dry snuff, plug and twist tobacco products. In addition, Conwood also distributes a variety of other tobacco products, including WINCHESTER and CAPTAIN BLACK little cigars, and BUGLER roll-your-own tobacco. The operations of Lane are included in the Conwood segment.

The Company competes with UST Inc.