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The world's fourth-largest tobacco company is considering entering the United States, a move that could have a big impact on two large Triad companies. Imperial Tobacco Group plc, a British company, sees the United States as a potentially profitable market with less risk of lawsuits than there was three or four years ago. CEO Gareth Davis told news agency Bloomberg last week that he considered the U.S. an attractive market. Such a move would likely shake up the U.S. cigarette market, and could pose new challenges to Winston-Salem-based Reynolds American Inc. (NYSE: RAI) and Greensboro-based Lorillard Tobacco Co. (NYSE: CG). Imperial is considerably larger than either of those companies, earning revenues of about $21.5 billion in 2005, based on Monday's exchange rates. By comparison, Reynolds, the second-largest U.S. tobacco company, had total revenues of $8.3 billion in 2005 and Lorillard, the No. 3 cigarette company, had revenues of $3.6 billion. Philip Morris USA, the country's biggest cigarette maker, had sales of $18.1 billion in 2005, though that was just a fraction of its overall business, as its parent company, Altria Group, brought in another $45.3 billion in overseas cigarette sales and $34.4 billion from its food operations. Imperial's cigarette brands include West and Davidoff. It already does business in 130 countries.


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Manufacturer:

Benson&Hedges Cigarettes


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Benson & Hedges cigarettes are registered in Old Bond Street in London. They are manufactured by Gallahers PLC in Lisnafillen, Ballymena, Northern Ireland for the UK market and by British American Tobacco PLC in England for other markets. The cigarettes are available in Gold or Silver forms. Benson and Hedges is one of the most popular brands of cigarettes available in the UK, particularly amongst the 16-30 age range of smokers. At £5.08 for 20 (at the time of writing), they are relatively expensive compared to other brands. However, many believe this particular brand of cigarettes to be more pleasant. Benson & Hedges cigarettes was founded in 1873 by Richard Benson and William Hedges as Benson and Hedges Ltd. The company was formed to make cigarettes for the then Prince of Wales, Albert Edward. Alfred Paged Hedges succeeded his father in the business in 1885, the same year which Richard Benson left the business. The 1900s saw branches of Benson & Hedges Ltd. opening in the United States and Canada. In 1928, the American branch became independent, it was bought by Philip Morris in 1958 who also purchased the Canadian branch in 1960. Benson & Hedges Ltd in the UK was acquired by Gallaher Limited in 1955. In the 1930s, Benson & Hedges (Overseas) Ltd. was established by Abraham Wix to handle overseas trade. This branch was acquired by British American Tobacco in 1956. Today, British American Tobacco markets Benson & Hedges throughout Asia and the Pacific, including Australia and New Zealand, but excepting Taiwan and the Philippines. They also own branches in the Middle East and Africa. B&H is popular amongst young smokers in Australia. For ten years (1990-2000) Benson and Hedges cigarettes sponsored the until tobacco advertising restrictions were legislated by the Canadian federal government. From 1878 until 1999, a Royal Warrant was issued to Gallaher on behalf of the product, however this was removed with the reasoning that the products were no longer used by the Royal Family. The Warrant seal, which had previously been on the flip lid of the box, was removed. Popular slang for Benson & Hedges in the UK is 'B&H', as in "I'll have 20 B&H please". In addition to this some smokers will request "20 Bensons please.";

 

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