Archrivals Reynolds American and Philip Morris Unite Forces to Promote Innovative Product

Published on January 18, 2010 6:39 AM

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The efforts to increase sales of low-risk smokeless tobacco have prompted major enemies Philip Morris and Reynolds American on the same side of the fence – lobbying for their respective products.

Though, experts don’t believe that the two largest tobacco companies will cooperate to achieve their aim – convincing the Food and Drug Administration to regulate smokeless products as a sort of the golden mean between conventional tobacco products and nicotine-replacement therapies, such as patches and sprays.

However, industry analysts admit that having these tobacco giants eager to amend regulations could work in the opposite way as they exert too much pressure on the FDA and it could be considered suspicious.

William Godshall, the vice-president of SmokeFree Pennsylvania admitted that it has been a major shock that the major tobacconists started lobbying for implementing regulations to decrease cigarette consumption to prevent health complications among smokers.

During the last couple of year largest tobacco companies have made several important acquisitions that permitted them to gain leading positions in smokeless tobacco market segment. Reynolds American acquired Conwood while Philip Morris purchased UST Inc. These investments are considered to be they key strategy in offsetting the declining cigarette market.

Reynolds American is a recognized leader in innovating its brand portfolio and developing smokeless tobacco products, whereas Philip Morris is trying to keep pace with Reynolds, as they recently began test-marketing Marlboro Snus.

The Marlboro maker’s decision gives an interesting turn to the issue, as the company was the only tobacconists to support new FDA regulations. At the same time Reynolds has sought special place for smokeless tobacco for a long time.

Reynolds American communications manager David Howard said they were surprised to find out that company that backed rigorous federal laws is currently having the same opinion about the position of smokeless tobacco as Reynolds has.

The position of US tobacco giants irritates the National Campaign for Tobacco-Free Kids, which worked together with Altria pushing the FDA latest set of regulatory measures. The Campaign spokesman said that they have been strongly against marketing any form of tobacco product as a healthier substitution of another tobacco product.

Danny McGoldrick, legilaslative director of this anti-smoking group said that they have done so much to reduce the consumption of tobacco products, and this is a major hypocrisy that tobacco companies are trying to undermine their efforts by claiming they have created a hazard-free tobacco product.

Public Health advocating groups state that consumption of smokeless tobacco could be a direct path to taking up cigarette, especially for younger generations as they are willing to try these sweet-flavored items.

Nevertheless, a report issued last year by the coalition of more than 25 advocating group and scientists admitted that smokeless tobacco products are an alternative for reducing health complications among smokers.