WINSTON-SALEM, N.C. -- Susan Cameron, who has twice held the title of CEO at Reynolds American Inc., is no stranger to the scrutiny of mergers. Retiring in 2011 after successfully overseeing the 2004 acquisition of Brown & Williamson, Reynolds American's board asked Cameron to return to the company last year to oversee the $25 billion deal with Lorillard Inc.
Though the U.S. Federal Trade Commission (FTC) must still approve the Reynolds-Lorillard deal, Reynolds CEO Susan Cameron is moving forward with plans for the future--plans she discussed at length in an interview with The Wall Street Journal. Cameron hit on not only the merger, but the future of vapor and regulations, as well.
Here are some key takeaways for tobacco retailers:
- On the Merger: Newports Will Be Available Immediately. "A customer wants to order Newports from us, day one," said Cameron. "We set up planning teams right after this transaction was announced. You appoint people, and it's their full-time job for two years. Somebody who is the project manager for the manufacturer integration—that is (his) job. You don't leave it to chance."
- On Electronic Cigarettes: Vaping Products Could Garner Similar Margins to Combustibles. "Over time, we are very confident we will be able to have the same margin in vapor as we have in combustibles," she said. "We can actually have a win-win strategy in terms of being able to continue the revenue stream with a different product category. We're not just making a strategy that sounds good for the environment but is actually going to put us out of business."
- On Regulations: They Weaken the Ability to Compete Globally. "This country is constipated with regulation," said Cameron, adding that it's not just in tobacco. "For every sector, I hear about extraordinary regulatory burdens: slowness in response rates, dealing with multiple agencies that don't talk to each other. To improve our global competitiveness as a nation, the regulatory burden needs addressing."
- On Consumers: People Might Eventually Forgo Combustibles Entirely. "Everybody understands what's in that vapor and what's not in that vapor—burning plant," said Cameron. "I'm hopeful that education process will help people make choices. A decade from now, you could have people only vaping."
That's not to say Cameron thinks—or hopes—everyone will do so.
"I would love to see a world where people who would like to enjoy or desire to use nicotine could change the curve of public health on that choice," she said. "That would be exciting for me. Our decision is we're giving consumers choices along that whole continuum."
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