On the Call: Reynolds American CEO Susan Ivey

Source from:  The Associated Press 10/23/2009

After a federal cigarette tax took effect in April and as the U.S. Food and Drug Administration's authority over the industry increases, tobacco companies are wary of the impact on their products and looking to cigarette alternatives such as smokeless tobacco for future growth. Reynolds American Inc. has introduced Camel-branded moist smokeless tobacco and snus - small teabag-like pouches that users stick between their cheek and gum. The company also has introduced dissolvable tobacco products - finely milled tobacco shaped into orbs, sticks and strips - in test markets. In a conference call with analysts Thursday regarding Reynolds American's third-quarter earnings, CEO Susan M. Ivey talked about the FDA's authority and her company's smokeless products. QUESTION: What do you think will be the benchmarks that give you insight into the regulatory impact the FDA will have as it relates to the product itself? Are you considering proposing current smokeless tobacco product on the market as a reduced-risk or reduced-harm product? RESPONSE: I think it's too early to determine that. … We continue to encourage the FDA to take a harm-reduction approach that will be good for public health. … The facts around snus and the science around it are quite clear, and dissolvables clearly fall near that science. Our believe is that consumers have a right to know the differences in potential harm in these categories and so certainly we're encouraging the FDA to enable us to give those facts to consumers. Enditem