Reynolds American Inc.
) is geared to cement its position in the e-cigarette category with
the nationwide distribution of its flagship e-cigarette brand Vuse
beginning Jun 23.
Vuse received favorable response since its launch in 500 stores
in Colorado in Jul 2013 and gained major market share in Utah where
it was launched earlier in this year. Reynolds launched the brand
in two varieties - Vuse Solo and Vuse System.
Vuse is a "digital" cigarette as it is fitted with a proprietary
computer chip modulating its performance. The chip delivers
consistent flavor giving Vuse an edge over other e-cigarettes.
The Vuse Solo includes a flavor cartridge, which comes in two
flavors - original and menthol -, a rechargeable Vuse power unit
and a USB charger. Moreover, the depleted cartridges and power
units can be returned to Reynolds Vapor Company through a prepaid
mailer available at the online shopping site of the brand.
In order to facilitate smooth distribution, Reynolds' two
subsidiaries - R.J. Reynolds Tobacco Company and R.J. Reynolds
Vapor Company - entered into a service agreement last month to gear
up the production of e-cigarettes within the next four years.
To support the increased supply, Reynolds has announced the
expansion of its manufacturing facility to Tobaccoville, NC. In
addition, Reynolds is planning to install high speed, next
generation e-cigarette manufacturing equipment at the facility.
Reynolds is set to hire 200 positions this summer for the facility
and will pay, on an average, more than $40,000 a year till
The Zacks Rank #3 (Hold) company currently manufactures Vuse at
a contractor's facility in Kansas, which it intends to keep along
with the new one for future use.
Other Stocks to Consider
Other stocks worth considering in the retail/supermarket segment
Ingles Markets, Incorporated
). While Coty sports a Zacks Rank #1 (Strong Buy), Kroger and
Ingles Markets carry a Zacks Rank #2 (Buy).
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REYNOLDS AMER (RAI): Free Stock Analysis Report
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INGLES MARKET A (IMKTA): Free Stock Analysis
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