R.J. Reynolds Vapor to Bring Vuse to Tobaccoville

Ramping up electronic cigarette production ahead of summer national rollout

Published in CSP Daily News

WINSTON-SALEM, N.C. -- In a move ahead of the national rollout of its Vuse electronic cigarette, expanded from a pilot in Colorado and Utah, R.J. Reynolds Tobacco Co. said that it will begin production of Vuse digital vapor cigarettes for R.J. Reynolds Vapor Co. in Tobaccoville, N.C., under a services agreement between the two companies.

"VUSE is a game-changing product and a tangible demonstration of our companies' mission to transform the tobacco industry," said Susan M. Cameron, president and CEO of Reynolds American Inc., the parent company of R.J. Reynolds Tobacco and R.J. Reynolds Vapor. "We need additional production capacity for Vuse to support the national rollout of the brand, and the highly trained workforce here in our home state of North Carolina made it the perfect choice for our expansion location."

As reported in a 21st Century Smoke/CSP Daily News Flash, R.J. Reynolds will also make a multi-million dollar investment for high-speed electronic cigarette manufacturing equipment at its Tobaccoville manufacturing complex.

Currently, a contractor's facility in Kansas produces VUSE cartridges and other components for R.J. Reynolds Vapor.

The product has broad distribution and full marketing support in Colorado and Utah. The company will begin a national rollout of Vuse this summer. Susan M. Cameron, president and CEO of Winston-Salem, N.C.-based Reynolds American Inc., said that the company will need both facilities to meet anticipated market demand.

"We'll need new-generation, high-speed equipment and a larger workforce to support market demand," Cameron said.

Installation of the new equipment will begin this summer.

The move will create more than 200 full-time manufacturing jobs in Tobaccoville over the next four years.

North Carolina Governor Pat McCrory said Reynolds, who spoke at a Reynolds American Press conference to announce the move, made the decision to expand in North Carolina without state incentives, reported WGHP-TV. "This is the best long-term sustainable business decision," McCrory said. "The Carolina comeback continues."

Reynolds American is the parent company of R.J. Reynolds Tobacco; American Snuff Co. LLC; Santa Fe Natural Tobacco Co. Inc.; Niconovum USA Inc.; Niconovum AB; and R.J. Reynolds Vapor. R.J. Reynolds Tobacco is the second-largest U.S. tobacco company. Its brands include two of the best-selling cigarettes in the United States: Camel and Pall Mall. These brands, and its other brands, including Winston, Kool, Doral, Salem, Misty and Capri, are manufactured in a variety of styles and marketed in the United States. American Snuff is the nation's second-largest manufacturer of smokeless tobacco products. Its leading brands are Grizzly and Kodiak. Santa Fe manufactures and markets Natural American Spirit 100% additive-free natural tobacco products, including styles made with organic tobacco. Niconovum USA and Niconovum AB market nicotine replacement therapy products in the United States and Sweden, respectively, under the Zonnic brand name. R.J. Reynolds Vapor makes and markets Vuse e-cigarettes.