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“Reynolds American’s operating companies are strategically focused on key brands in the cigarette, moist-snuff and modern smoke-free categories of the tobacco business, so this is an opportunity to maximize the potential of the Lane business and brands under an owner who is focused on the ‘other tobacco products’ (OTP) category,[link widoczny dla zalogowanych],” said Susan M. Ivey, president and CEO of Reynolds American.
“The sale allows RAI and its operating companies to devote their energy and resources to the primary growth categories within their businesses,” Ivey added.[link widoczny dla zalogowanych].
Lane has about 110 employees at two facilities in Tucker–a manufacturing and office facility, and a leased warehousing facility. Under terms of the agreement, STG will take over Lane’s facilities and expects to continue to operate them.
Winston-Salem, N.C.-based RAI is the parent company of R.J. Reynolds Tobacco Co.; American Snuff Co. LLC; Santa Fe Natural Tobacco Co. Inc.; and Niconovum AB.
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,[link widoczny dla zalogowanych], 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,[link widoczny dla zalogowanych], 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.
That’s an issue with the planned Al Narah Hookah Lounge “because its wall bumps up to the wall of the next building, and the two share roof flashing, but officially they’re separate,” Young-Peterson said. “And even though their exhaust dumps right by the other building’s intake vent, the law says it has to be ‘active smoke’ entering the vent.”
That’s potentially a serious problem, because the adjacent building houses several health-related practices such as massage therapy, naturopathy,[link widoczny dla zalogowanych], acupuncture and chiropractics, she said.[link widoczny dla zalogowanych].
The original smoke shop exemption was intended to accommodate old-fashioned cigar and tobacco shops “where someone occasionally might want to try a sample” but not linger there specifically to smoke,[link widoczny dla zalogowanych], Young-Peterson said. “But these new businesses understand the exemption and know how to get around it. They’re creating a bar or club atmosphere that targets 18- to 25-year-olds — and even younger kids because research shows they’re not really enforcing the age limits — and that’s what creates so much concern.”
From 2008 to 2009,[link widoczny dla zalogowanych],[link widoczny dla zalogowanych], cigarette use had dropped by about 1 percent among 11th-graders in Oregon, according to a clean air compliance study by the Oregon Tobacco Prevention and Education Program of the state Public Health Division. During the same period,[link widoczny dla zalogowanych], hookah use jumped by 3 percent.