- Tobacco smoking has decreased in the US over the past years. The decreasing trend in smoking is recorded among both adult and high school students.
- With the growing awareness about the harmful effects of smoking, Reynolds is facing a stagnating top line. Its share price return lagged the indices during the past year.
- The acquisition of Lorillard will add the Newport brand to Reynolds’ portfolio.
- However, the Newport brand appears to be a sinking ship with a large market share but little growth potential.