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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.

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RJ Reynolds first launched Red Kamel cigarettes in 1913 as an up-scale companion to the more plebian Camel. Like many upwardly mobile products, Red Kamels did not survive the depression, and were dropped in 1936. It would be sixty years before Red Kamel came out of the wilderness. In 1996 they resurfaced not in corner stores or smoke-shops, but in the urban-chic watering holes of sophisticated cities.

Red Kamel cigarettes were first launched through bars and clubs in New York, San Francisco, Los Angeles and Dallas. A second wave brought it to bars and clubs in a dozen other North American cities, including Toronto. Red Kamel's cigarette advertisers chose images well-suited to their target market of young urban sophisticates. The Red Kamel cigarette theme is neither completely retro, nor completely futuristic, but in the no-man's land of Generation X.

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