Brand Portfolio

Building strong brands is essential to the long-term growth of R.J. Reynolds Tobacco Company (R.J. Reynolds). R.J. Reynolds' brand-portfolio strategy divides the company's 21 brands into three categories -- growth brands, support brands and non-support brands -- to focus the organization and resources on the company's highest-potential premium brands.

The company's overall objective is to increase growth brand share-of-market and achieve sustainable profit growth. R.J. Reynolds will do this, for example, by focusing on a few high-potential brands, by being the most innovative tobacco company, and by developing superior relationships with retailers and adult tobacco consumers.

Growth Brands

R.J. Reynolds focuses its investment in Camel, Kool, and Pall Mall to accelerate the brands' market-share growth and to drive the brands for long-term, accelerated growth and profit.

Camel has enjoyed nearly a century of outstanding success, and what was true of the original Camel is just as true today -- it's a "Pleasure to Burn." Introduced in 1913, Camel became R.J. Reynolds' first major cigarette brand and the country's first nationally marketed cigarette. Camel's unique blend of flue-cured, burley and exotic Turkish tobaccos made it the nation's No. 1 selling brand just four years after its introduction.

An authentic original, Camel is a brand with a rich heritage and one that also keeps up with the times. Camel's combination of a classic nature and contemporary flair reinforce the brand's position as a flavorful cigarette with a rich heritage, a colorful personality and an irreverent sense of humor.

Camel promotes two different families of flavor -- Classic and Turkish. The Classic styles, which represent the bulk of the brand's business, offer rich tobacco taste. Camel's Turkish family offers smooth and mellow versions of the brand's distinctive flavor.

Camel is a growth brand because it is R.J. Reynolds' largest and fastest-growing full-price brand and has a track record of consistent share growth and marketplace momentum. And the brand's relevant and unique positioning has made it one of the few full-price brands in the industry that has shown sustained growth.

Launched in 1933, Kool was the first menthol brand to gain nationwide distribution -- and it quickly became one of the world's most famous menthol cigarettes.

Kool is distinctive among menthol cigarettes because it delivers an intense menthol smoking experience that is bold, yet smooth. Kool achieves the perfect balance of rich tobacco taste by combining specially blended tobaccos with the fresh flavor of menthol. The fusion of tobacco and menthol is symbolized by the interlocking "O's" in the Kool logo, which are present today in much the same form as on the original packaging.

Kool's image and brand personality is demonstrated through dynamic advertising and relevant lifestyle programs, which continue to drive its position as a leading premium brand. Kool celebrates the energy created by diverse cultures, music and fashion, and the brand draws its energy and inspiration from the intensity of vibrant, urban life. Kool captures a sense of boldness, confidence and self-expression -- combining it into a unique brand experience.

Kool is a growth brand because its heritage and proven appeal among adult smokers of competitive menthol brands provide an excellent platform for future growth.

Pall Mall
Pall Mall was introduced in 1899 as one of the world's first premium cigarettes. In 1939, Pall Mall launched the first "king-size" (85 millimeter) cigarette; in 1966 the brand launched the first 100-millimeter cigarette -- both giving adult smokers more value for the same amount of money.

In 2001, the brand was re-launched nationally as the "new filtered" Pall Mall -- a savings cigarette that tastes smooth, burns slower and lasts longer. The brand is successful because it offers premium quality combined with smooth smoking satisfaction and a noticeable product point of difference.

Pall Mall is a growth brand because more and more adult smokers are realizing it is a great product with premium qualities and an international heritage. Simply put, it's a less expensive alternative to other premium cigarette brands that gives as much satisfaction.

Support Brands

R.J. Reynolds will put limited marketing support behind these brands and focus on balancing the brands' scale and long-term profit.

Winston was introduced in 1954 and became the first nationally popular filtered cigarette. By 1966, Winston became the best-selling cigarette in the nation, a position it held for 10 years. Today, Winston remains one of the country's top-10 cigarette brands. Winston's "Leave the Bull Behind" attitude is backed by its unique, additive-free product point-of-difference – smooth tobacco taste.

Salem was introduced in 1956 as the first filtered menthol cigarette. Salem eventually dominated the menthol category -- becoming one of the world's best-selling brands. Today, Salem remains one of the best-selling menthol brands in the United States. Salem stands apart from other menthol cigarettes with its imaginative "Stir the Senses" positioning, innovative packaging and distinctive product blends.

Doral was introduced in 1969 and repositioned in 1984 as a savings brand, becoming the first branded cigarette to compete in the growing value segment. Doral quickly became -- and continues to be -- the leading savings brand in the United States. The brand's "Imagine Getting More" positioning builds on Doral's core promise -- offering adult smokers more value for their money. The brand will continue to fulfill this promise through its primary communication vehicles -- the successful and long-running Doral & Company relationship-marketing program and its popular Web site.

Misty was introduced in 1990 as a value-priced brand in the slims segment. Misty rapidly grew to become the country's leading value-priced slims brand, a position it holds today. Its combination of quality and affordability provides Misty a loyal base of consumers.

Launched in 1987 Capri created a new segment in the U.S. cigarette industry - the "super slim" cigarette. Capri cigarettes are 21mm in circumference versus 23mm for a traditional "slim" cigarette. Capri's "Luxury Length" 120mm styles soon followed, providing a unique product for adult smokers wishing to express their own personal style. With a premium tobacco blend and thin, stylish packaging Capri is the leading brand in the super slims segment.


Non-Support Brands

Non support-brands are generally small-share brands, but have very loyal adult smokers who purchase them. Therefore, even though R.J. Reynolds will not provide marketing support for these brands, the company will maintain the brands' distribution where there is consumer demand.

Barclay Lucky Strike Private-Label Brands
Belair Monarch Tareyton
Carlton More Vantage
GPC Now Viceroy