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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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{!!!start promo text}Cigarettes manufactured in Eastern Europe are bottom of quality cigarettes. The production of cigarettes in this area of the globe is of a lesser standard. Therefore the prices and demand for cigarettes made from Eastern Europe are significantly less. Many brands of cigarettes manufactured in Eastern Europe are unrecognisable to smokers in the Western parts of the world. Being of lesser quality and popularity doesn’t mean that they do not sell though. There are less popular brands of cigarettes from Eastern Europe that sell quite well among the online market for cigarettes. aste is a major factor that completely changes the image of the quality of a cigarette in a smoker’s eyes. The type of tobacco and the tobacco blend ultimately determine the taste of a cigarette. Smokers have become very familiar with original American tobacco down the years, making it harder for European cigarettes that use different tobacco blends to really gain a greater a market share. The labelling and packaging is near enough identical, but the tobacco used in cigarettes from different countries makes a big difference to smokers. There are although types of cigarettes from Eastern Europe that have appeal to consumers in the west. Again, taking Marlboro as example, they have a complete replica range of their products but are manufactured in Philippines. This whole range is a lot cheaper and they taste very similar to that of which Marlboro produce in America. With Eastern European cigarettes being cheaper and similar, online buyers of cigarettes are opting to order in from these areas of the world regardless of their lower standards of quality. In general a lot of cigarettes from Eastern Europe are growing in sales despite their known lesser quality of manufacture and tobacco blend. Low prices has meant quality and brand of cigarette doesn’t really matter that much to smokers, in particular with the online market for cigarettes.{end of promo text!!!}

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