U.S. Smokeless Tobacco Co. Begins Operations

Source from:  WWBT 04/02/2009

Altria is rolling out the red carpet for its newest acquisition. The US Smokeless Tobacco Company, formerly known as UST, is beginning operations in Henrico county. The deal was months in the making, but now it's complete. The goal is for Altria to have the "total tobacco company" with products that serve all types of consumers. Altria is welcoming US Smokeless Tobacco, at a time when business is growing. "And that's largely due to the fact that many adult smokers are choosing smokeless tobacco as a viable alternative to smoking," said Dan Butler, President of U.S. Smokeless Tobacco Company. Eighty corporate employees, mostly from Connecticut, are getting established here. A development, that analysts say, is not often easy in the first few years. "I have seen acquisitions distract management from their core purpose. I don't think this is a distraction in that sense," said University of Richmond Prof. Jeffrey S. Harrison. Another challenge, the facts. The president of US Smokeless Tobacco doesn't hide from them. "The Surgeon General has determined that smokeless tobacco specifically causes serious disease in humans and is highly addictive. At the same time, we recognize that not all tobacco products carry equal health burdens to them," said Butler. He's focused on bringing success to the company. Along with lower prices, to smokeless tobacco's six million consumers. "We believe our moist smokeless tobacco consumers will actually be seeing a better value at retail," said Butler. There are 45 million adult smokers. Only six million smokeless tobacco users. But that's the group that's growing. A key reason why Altria paid eleven billion dollars to own that market. Enditem