Reynolds American recently acquired Lorillard for $25 billion.  The merger combined Reynolds’ Pall Mall and Camel brands with 8.1 percent market share each in the USA, with Lorillard’s Newport brand with 12.2 market share, to combat industry leader Altria’s Marlboro brand that commands 40.2 percent market share in the USA.  As part of the transaction, to combat antitrust concerns, Reynolds CEO Susan Cameron said her company will divest Lorillard’s Blu e-cigarette to Imperial Tobacco (another rival firm) while keeping and growing Reynolds’ Vuse e-cigarette.  Reynolds’ also divested its Kool, Winston, Salem, and Maverick brands to Imperial.

Current Cigarette Consumption in the USA by Brand

Brand              Market Share               Relative Market Share Position

Marlboro           40.2                                                 1.000

Newport            12.2                                                   .303

Pall Mall              8.1                                                   .201

Camel                  8.1                                                   .201

Winston               2.4                                                   .059

Pyramid               2.3                                                   .057

Doral                   2.0                                                   .049

USA Gold           1.9                                                   .047

Kool                    1.8                                                   .044

Other                 21.0                                                   .522

Total                100.0

Source:  Based on Mike Esterl and Peter Evans, “Reynolds, Lorillard Strike a Match,” Wall Street Journal, 7-6-14, B4.