Cigarette volume at RJ Reynolds Tobacco (RJRT) fell 4.9 per cent in the final business quarter of 2014 as key brands Camel gained and Pall Mall contracted, Reynolds American (RAI) said.

Volume contraction in the US industry was placed at 2 per cent in the fourth quarter and 3.2 per cent in 2014. An improved US economy and lower gas prices moderated the decline, RAI said. Volume declined 800,000 sticks to 14.9 billion, with Pall Mall accounting for 300,000 and non-growth brands for 500,000 sticks.
RAI said its proposed acquisition of Lorillard remains on track, and that required government approval should come in time to close the deal in the first half of this year.
Charges for pension and post-retirement mark-to-market adjustments, lawsuits and implementation costs stripped more than USD 400 million (EUR 353 million) from RJRT fourth-quarter operating profit, which was USD 234 million.
Camel and Pall Mall represented three quarters of RJRT’s 26.4 per cent share of the domestic market in the fourth quarter. Camel’s share rose 0.3 percentage points to 10.3 per cent while Pall Mall lost two percentage points to 9.3 per cent.
Volume at American Snuff declined 1 per cent as US volume increased about 1 per cent. Santa Fe Natural Tobacco’s (SFNT) American Spirit continued to gain market share as a super premium. SFNT quarterly operating profit rose 24.2 per cent.