Reynolds American, maker of Camel cigarettes, is in talks to buy smaller rival Lorillard. Bloomberg NewsNote: World Lung Foundation united with The Union North America. From January 2016, the combined organization is known as “Vital Strategies.”
(New York, USA) ––World Lung Foundation today issued the following statement regarding the prospective deal to combine tobacco firms Reynolds American and Lorillard.
Peter Baldini, Chief Executive, World Lung Foundation, commented: “It is a real “win” for public health that more and more Americans are realizing the harms of tobacco and beginning to reduce consumption, thanks to aggressive civil society campaigns and federal, state and local regulations. However, tobacco companies are quick to exploit strategies that keep their profit margins healthy. The proposed combination of Reynolds American and Lorillard smells like an attempt to consolidate market share and more aggressively compete to make Americans sick.
“The tobacco industry simply wants to organize itself so it is positioned to capture more American customers, especially young people and minorities, through products like e-cigarettes and menthol cigarettes. These products are specifically designed to feel less harsh to consumers, masking the reality of nicotine addiction. It is no surprise that Blu, the e-cigarette brand with the largest market share in the USA, is at the center of this merger. We may yet find that e-cigarettes will play a major role in re-normalising smoking and un-doing decades of hard work in reducing smoking rates.
“A combined company may also be able to exert price pressure on the market in order to capture share, making tobacco more affordable. We should also be wary of any increased influence the combined organisation would seek to exert over public health policy, and any increased activity to delay and derail tobacco control regulations. Government must be vigilant in enforcing current regulations, tightening them. The fact that British American Tobacco, and Imperial Tobacco have been involved in discussions to smooth the path for this merger should only add to our concern. The tobacco industry, whether in the hands of many players or only a few, is only ever interested profits, not people.”