RJ Reynolds Tobacco market share contracted 1.1 percentage points to 27 percent as cigarette shipping volume fell 7.4 per cent in the fourth quarter, said parent company Reynolds American.

“Fourth-quarter cigarette volume was negatively impacted by the introduction of heavily promoted competitive line extensions, the timing of the company’s promotional activity, and the decision to move away from the company’s private label brands,” Reynolds said in a statement today.
For the full year, market share dipped 0.3 percentage points to 27.3 per cent.
Camel and Pall Mall increased their combined fourth-quarter
market share by 0.3 percentage points from the prior-year quarter to 16.5 per cent, Reynolds said.
An internal review is underway to determine whether the company is pursuing activities that are out of synch with the current economic and competitive landscape, Reynolds said. Findings are due by the end of March.
Fourth-quarter adjusted operating income at USD 594 million (EUR 451.5 million) was up 9.2 per cent from the prior-year quarter, as higher pricing and productivity improvements continued to offset lower cigarette volumes, the company said.
At Reynold’s subsidiary American Snuff, volume rose but profit fell. Moist snuff shipments in the fourth quarter increased 6.1 per cent. The sale of bulk tobacco maker Lane Limited last year and a USD 5 million charge for trademark impairments helped lower operating profit 15.4 per cent to USD 88 million, Reynolds said.
Operating income at Santa Fe, maker of American Spirit, rose 39 per cent to USD 50 million. (ci)