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I write as the President of Niconovum USA, Inc., to respond to some of the concerns raised by Kostygina et al. for our ZONNIC products. Our goal at Niconovum is to provide an appealing and accessible nicotine gum to adult smokers who do not want to smoke anymore. Many smokers do not see smoking as a medical condition and, thus, have not been reached by traditional nicotine replacement therapy marketing and channels of distribution. By distributing ZONNIC primarily, where more than 70% of smokers buy cigarettes (convenience stores), we are overcoming barriers to change as outlined by the National Tobacco Cessation Collaborative. We are offering evidence-based treatments to smokers "where they are."2
Our business strategy at Reynolds American Inc., the parent company of Niconovum, is to transform the tobacco market from one dominated by traditional cigarettes to one where noncombustion products, including regulated medicines, such as nicotine gum, play a dramatically larger role. There are three synergistic foundations for this strategy:
* Business: we believe we can provide more attractive returns to our shareholders by shifting demand for nicotine to higher margin products. As a concrete example, the operating margin for our smokeless tobacco company, American Snuff Company, was 58.7%, whereas the margin for our cigarette (predominantly) operating company, R. J. Reynolds Tobacco Company, was 38.9%.3
* Consumers: consumers are increasingly seeking alternatives to the traditional cigarette. If we aim to meet and exceed our goals, we will be well served to attend to these changing desires and move to offer products that meet these needs.
* Health: I appreciate that many readers will be unwilling or unable to accept any health-related information from me, but authorities from the US Surgeon General in his 2014...