184745 Smokeless tobacco temptations: RJ Reynolds and Phillip Morris' interests in entering the smokeless tobacco market

Tuesday, October 28, 2008: 1:06 PM

Adrienne Mejia, MPH , Center for Tobacco Control Research and Education, University of California San Francisco, San Francisco, CA
Pamela Ling, MD, MPH , Division of General Internal Medicine, Center for Tobacco Control Research and Education, University of California, San Francisco, San Francisco, CA
Background: Camel and Marlboro Snus were introduced in 2006 and 2007. RJ Reynolds purchased Conwood Company in 2006 and Philip Morris may soon acquire smokeless tobacco companies Swedish Match or US Smokeless Tobacco (USST).

Objective: Describe internal decision-making processes cigarette companies used to analyze the smokeless tobacco market to gain insight into current activities.

Methods: Analysis of previously secret tobacco industry documents and internal financial reports.

Results: R.J. Reynolds and Phillip Morris considered developing their own spit products or acquiring publicly traded companies since at least 1978. Chewing tobacco and snuff consumption increased beginning in the 1970s; financial reports attributed much of this rise both to the tobacco policy environment (recognizing the dangers of cigarette smoke, spread of smoking restrictions, and increased cigarette taxes) and changes in tobacco use (declining cigarette consumption, and growing use of moist snuff). The high cost of a smokeless tobacco company acquisition, inconsistent sales trends, US Smokeless Tobacco (USST) Company's dominance in the market, and the risk of failure of new products were barriers to entering the market. To compete with leading USST brands, cigarette companies deployed their strongest youth-oriented cigarette brands (Marlboro and Camel) for new smokeless products.

Conclusion: Both the tobacco policy environment and changing patterns of tobacco use strongly influenced cigarette companies' decisions to enter the spit tobacco market, not intentions for harm reduction. These efforts may discourage tobacco cessation, recruit new users, and encourage dual smokeless and cigarette use to increase tobacco use overall.

Learning Objectives:
1. Describe patterns in the decision-making processes of cigarette companies for entering the smokeless tobacco industry. 2. Recognize three reasons for RJ Reynolds and Phillip Morris’ entry into the spit tobacco market. 3. Recognize three barriers that discouraged cigarette companies from developing spit tobacco products.

Keywords: Tobacco Industry, Spit Tobacco

Presenting author's disclosure statement:

Qualified on the content I am responsible for because: I will submit 2 first-author papers on smokeless tobacco for publication, with Dr. Pamela Ling, as a research specialist at UCSF Center for Tobacco Control Research and Education. I will also submit a first-author publication on an innovative approach to harm reduction with Dr. Stanton Glantz and Dr. Pamela Ling.
Any relevant financial relationships? No

I agree to comply with the American Public Health Association Conflict of Interest and Commercial Support Guidelines, and to disclose to the participants any off-label or experimental uses of a commercial product or service discussed in my presentation.