On the Call Reynolds American CEO Susan Ivey

Source from:  The Associated Press 04/23/2010

With tax increases, smoking bans, health concerns and social stigma still cutting into cigarette sales, Reynolds American Inc. and other tobacco companies are looking to cigarette alternatives for sales growth. Reynolds American is test-marketing dissolvable tablets, strips and a toothpick- shaped tobacco product under the names Camel Orbs, Camel Strips and Camel Sticks. made from finely milled tobacco, they come in mint and other flavors. The Food and Drug Administration voiced concern in February that such tobacco products -- which the agency compared with candy -- could be particularly appealing to kids and young adults. And a Harvard School of Public Health study warned the products could harm kids. The FDA has sought research and marketing information from Reynolds on the products as an advisory committee prepares to study the issue. In a conference call with analysts Thursday regarding Reynolds American's first-quarter earnings, CEO Susan M. Ivey talked about dissolvable tobacco products. QUESTION: Does the recent study and attention being paid to dissolvable tobacco make you concerned about the long-term outlook of those products? RESPONSE: We certainly have gone to great lengths to ensure childproof packaging and on tobacco, behind-the-counter display. … We are working with the FDA and their inquiry about dissolvables. We believe that a harm-reduction strategy and the position from the FDA on that strategy is important to the future of the category. … I do believe the science should really drive the decision. Enditem