While cigarette tobacco volumes are somewhat declining across the industry, and majors are looking at or entering alternative markets such as smokeless and cigars, Lorillard has made it clear that for the time being they are going to concentrate on their core products–Newport, which has approximately 35% of the menthol market, and a non-menthol Newport, recently introduced in view of the FDA’s advisory panel’s review of the impacts of menthol cigarettes.  Having withdrawn from a brief foray into the smokeless market, Lorillard increased sales in the first quarter by 9.5%, reflecting gains from both Newport and lower priced brands, such as Maverick.  Lorillard’s concentration on the core business of cigarette manufacturing will inevitably lead to the Company’s scrutiny of any market practices that would take away market shares.

For questions and/or comments, please contact Bryan Haynes, at 804.697.1420 or by email.