R. J. Reynolds Abandons “Smokeless” Cigarette Project
R. J. Reynolds Tobacco Company, a significant player in the American tobacco industry, recently terminated its smokeless cigarette brand, Premiers, which aimed to deliver the experience of smoking without the associated smoke and health risks. Launched in the 1980s amidst growing health concerns regarding tobacco, Premiers represented an ambitious effort to innovate within a struggling industry. However, after investing nearly half a billion dollars in research and development, the product failed due to a significant flaw: lighting the cigarettes with regular matches resulted in an unpleasant odor. This failure prompted R. J. Reynolds to abandon the project rather than invest further resources.
The company faced additional challenges, including a tumultuous period of ownership struggles and increasing scrutiny over the health impacts of tobacco use. Despite its setbacks, R. J. Reynolds shifted focus towards e-cigarettes, which emerged as a potential solution for declining traditional cigarette sales. E-cigarettes operate by vaporizing a nicotine-infused liquid and are marketed as a less harmful alternative to conventional smoking. However, concerns remain about their health implications and accessibility, particularly for minors. As R. J. Reynolds navigates the evolving landscape of tobacco products, the legacy of Premiers serves as a cautionary tale of innovation in an industry grappling with public health and regulatory challenges.
R. J. Reynolds Abandons “Smokeless” Cigarette Project
R. J. Reynolds Abandons “Smokeless” Cigarette Project
On February 28, 1989, the R. J. Reynolds Tobacco Company terminated the brand of cigarettes known as Premiers. Premiers were supposed to give smokers the taste and pleasure of smoking without most of the smoke and other side effects of ordinary cigarettes. It turned out to be one of the most spectacular failures in corporate history.
R. J. Reynolds is one of the oldest and most respected names in the American tobacco industry. By the 1980s, however, the industry was on the defensive due to the health risks of tobacco. RJR responded in part by diversifying, and acquired Nabisco, a major snack food concern whose product lines include Oreo brand cookies. RJR also decided to invest in “healthier” cigarette projects such as Premiers. However, after nearly half a billion dollars in research and development, Premiers proved to be a disaster. The cigarettes used an advanced carbon filter, but if they were lit with an ordinary match, the sulfur in the match flame precipitated a very unpleasant odor.
By early 1989, RJR had decided to abandon the project rather than pump additional funds into improving Premiers. RJR also had other concerns, such as a lengthy and expensive struggle for ownership of the company during the leveraged-buyout mania of the late 1980s.
In 1994, the chief executive officer of R. J. Reynolds Tobacco Co., James Johnston, testified under oath in front of Congress that he did not think that tobacco was addictive. Under increasing pressure from evidence that tobacco use caused multiple health problems and deaths and that it was in fact addictive, the tobacco industry was called to account for its misrepresentation of its product in advertisements and its continued profit making at the expense of its customers. In 1998, R. J. Reynolds Tobacco Co. participated in the Tobacco Master Settlement Agreement with the US government, whereby the company agreed to pay for smoking-related health care costs and to reduce advertising in exchange for immunity to private lawsuits. However, in 2002, the company was caught giving away cigarettes at an event attended by children, resulting in a $20 million fine. Following several mergers and takeovers during the early 2000s, R. J. Reynolds Tobacco Co. accounted for thirty percent of cigarette sales in the United States in 2003. But traditional cigarette sales fell 4.4 percent from 2011 to 2014, so the company looked to a new form of “smokeless” cigarette, e-cigarettes, to increase sales.
R. J. Reynolds was preparing the rollout of its new Vuse e-cigarette in 2014, with sales of e-cigarettes at $1.5 billion and anticipated to reach $10 billion by 2017. E-cigarettes simulate smoking with a battery-powered vaporization of a liquid that contains nicotine and other flavors such as candy or fruit, creating a vapor smoke. Only a handful of states have enacted laws against the sale of e-cigarettes to minors, and they can be bought easily online. There is some debate over whether e-cigarettes are detrimental to the health of the smoker and secondhand smokers. They release varying levels of nicotine and toxic substances compared to traditional cigarettes, at least as much as nicotine gum or inhalers, which is why they are claimed to aid smoking cessation. However, they are still addictive because of their nicotine content.