SEPTEMBER 18, 2003

BAT to increase US presence?

The competition over tobacco sales in the US, where discounting is become a big problem, has resulted in the announcement that RJ Reynolds Tobacco is to cut 40% of its US workforce.

The competition over tobacco sales in the US, where discounting is become a big problem, has resulted in the announcement that RJ Reynolds Tobacco is to cut 40% of its US workforce. The cuts will mean the elimination of 2,600 jobs. The company says it is cutting back on the Winston brand and will be pushing its Camel and Salem brands in order to cut spending by $1bn by the end of 2005. The announcement led to a huge jump in the company's share price but added to speculation that the move is in preparation for a bid for the company by British American Tobacco. This would increase BAT's involvement in the USA and give the company access to the Camel brands in the USA. It is unlikely that there would any change in BAT's F1 strategy as Camel is owned internationally by Japan Tobacco, the sponsors of Renault Sport. It might however result in more demand for a US driver at BAR...