Tobacco analysts from Citigroup believe that Reynolds American (RAI) will be entering the smokeless tobacco category in the near future with its Camel brand, potentially using the Daytona 500 on 19 February as its foray.

"Our probability that Reynolds American will be launching/sampling its new Camel smokeless product during this very popular sporting event this weekend has increased given more conversations we have had with our industry trade contacts," says analyst Bonnie Herzog. "Although possibly introduced at the Daytona 500 this weekend, it will likely take Reynolds anywhere from two to four weeks to get this product on the shelves for consumers." She also believes that Philip Morris is close on RAI’s heels and will enter the smokeless category soon. "Our conviction in this was increased recently during Altria Group’s conference call when the CEO, Louis Camilleri, suggested that Philip Morris USA is close to entering this category." (cg)