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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.



NEWS SHORT:
 

Tobacco Stocks Gain on Calif. Tax Defeat
17-Nov-2006 NEW YORK ? The Big Tobacco companies came away from Tuesdays midterm election with a collective sense of relief, as Californians voted down a ballot initiative that would have quadrupled the states cigarette taxes to the highest level nationwide.

 "Thank You For Smoking" proves to be witty and hilarious
15-sep-2006 Fox Searchlight Pictures has steadily been increasing its number of independent films that become movie-goer favorites for years. "Bend It Like Beckham," "Garden State," "I Heart Huckabees" and "Sideways," were all produced by the company. The latest movie to hit the silver screen is "Thank You for Smoking."

 Big Tobacco and Big Pharma: same tactics, different chemicals
14-Nov-06 Have you ever thought about the similarities between pharmaceutical and tobacco companies?

Arkansas governor: Day will come when cigarettes no longer sold
01-Oct-06 LITTLE ROCK - Gov. Mike Huckabee, who successfully pushed for a statewide workplace smoking ban earlier this year, predicted Wednesday that cigarettes eventually won’t be sold because of their health risks.



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