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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.

Lambert & Butler Cigarettes


Lambert & Butler cigarettes

Lambert & Butler cigarettes

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Originally playing a major role in the development of the cigar market in the UK, Lambert & Butler has developed into a major player on the British cigarette market.

Founded in 1834 by Charles Lambert and Charles Butler, their first store was located St. John Street, Clerkenwell. To cope with increasing demand, the business moved to Dury Lane in 1836. Along with being one of the first British business to manufacture cigars for the UK market Lambert & Butler also sold cigarettes and pipe tobacco.

The partnership was successful, and business volumes soon grew. However, in December 1901 the company merged with Imperial Tobacco to protect itself from being acquired by American Tobacco Company.

The brand subsided from view while under the control of Imperial Tobacco. However, in 1979 Lambert & Butler was relaunched as a king size cigarette. Success was rapid for the brand, and by 1980 over 1 million smokers had tried the new brand.

The company followed up this success in 1985 with the release of cigarettes in the 100s format. To increase market share and counter the ever increasing cost of taxation on the tobacco industry, Lambert & Butler was the first brand to have a complete product line price reduction. To further reduce customer costs Lambert & Butler released their cigarettes in packs of 10 in 1987.

To appeal to changing customer tastes, the brand released a menthol version of their cigarettes in 1997 and an Ultra Mild version in 1998. To celebrate Lambert & Butler's silver anniversary in 2004, the brand underwent a facelift.

Lambert & Butler has been the leading cigarette in the UK since 1999.

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