Giant tobacco maker
Reynolds American Inc.'s
) subsidiary, R.J. Reynolds Vapor Company, is expanding its
distribution network of e-cigarette and has announced that its
tailor-made e-cigarette, Vuse, will be available throughout
retail outlets in Colorado from Jul 2013.
The company has put a lot of focus on the e-cigarette category
which is gradually becoming very popular especially among
youngsters. E-cigarettes give the simulating effect of cigarettes
and thus, help people who want to quit smoking.
The company has formed a new subsidiary, R.J. Reynolds Vapor
Company, where it has re-engineered and developed its own
patented vapor technology and is currently testing the new
product, Vuse. Vuse has been designed by R.J. Reynolds' R&D
experts with the help of innovative digital technology and has
been designed and assembled in the U.S.
Vuse will be available in two varieties - Vuse Solo and Vuse
System. The Vuse Solo package will include a flavor cartridge, a
rechargeable Vuse Power Unit and a USB charger. It will be priced
at around $10.00.
The Vuse System will include three flavor cartridges, a
rechargeable Vuse Power Unit, a USB charger and an AC wall
adapter. All these will come in a carrying case. Vuse System will
be priced at $6.00.
On Apr 23, Reynolds delivered a robust first-quarter earnings
of 72 cents per share, surpassing the year-ago earnings by 14.3%.
Earnings improved on the back of cost reduction efforts, positive
pricing and expense management and were ahead of the Zacks
Consensus Estimate by 4.3%.
Although the Tobacco segment suffered volume declines due to
the ongoing anti-tobacco campaigns and rising excise tax imposed
by governments around the globe, the American Snuff segment
reported modest gains on the back of rising market share of the
Other Stocks to Consider
Reynolds American holds a Zacks Rank #3 (Hold). Another
), carries a Zacks Rank #2 (Buy). Others stocks in the consumer
staples sector that are portraying a strong upward trend in the
Flower Foods Inc
Green Mountain Coffee Roasters Inc.
), carry a Zacks Rank #1 (Strong Buy)
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REYNOLDS AMER (RAI): Free Stock Analysis
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