A Tobacco CEO Who 'Vapes' Could Alter the Industry

With Reynolds acquisition of Lorillard, CEO Susan Cameron may take tobnacco in new directions.

July 16, 2014

RICHMOND, VA. – Longtime tobacco executive Susan Cameron, CEO of Reynolds American Inc., who yesterday announced plans to acquire Lorillard, is a former smoker who these days puffs, or "vapes," on electronic cigarettes.

According to the Wall Street Journal, that in itself is a hint as to the strategy behind the $25 billion deal, which represents a historic opportunity to reshape the tobacco industry, pushing it more quickly into new avenues like electronic cigarettes.

A decade ago, Cameron shepherded Reynolds Tobacco Holdings Inc. through its $3 billion merger with Brown & Williamson, creating Reynolds American. Once the new Reynolds-Lorillard marriage goes through, Cameron could hold enormous clout in how quickly the tobacco industry switches from combustible smokes to nicotine products like moist snuff, electronic cigarettes and even chewing gum that are viewed as less harmful by much of the scientific community.

Reynolds's "strategic mission to transform the tobacco industry is a fascinating journey. I'm looking forward to the opportunity to not just advance, but accelerate, that momentum,'' Cameron said in a statement announcing her return to Reynolds American earlier this year.

If the past is an indicator, she will push hard to experiment with new products. She has already steered Reynolds, the maker of Camel and Pall Mall cigarettes, more aggressively into alternative smokeless products in recent years, including Camel Strips, Camel Orbs, Camel Snus, and the 2009 purchase of Niconovum AB, a Swedish manufacturer of nicotine gums and sprays, making it the first big tobacco company to move into tobacco-cessation products.

Cameron represents a growing breed of tobacco CEOs that isn't afraid to expand beyond cigarettes, even as they continue to reap most of their revenue and profits from smokes.

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