Lorillard is the company most at risk

The U.S. Food and Drug Administration this month is expected to make its first public statements about whether sales of menthol cigarettes should be restricted.

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Lorillard is the company most at risk. It makes Newport, the top seller in the menthol category, with a 35% market share. Newport, which is also the overall No. 2 cigarette brand in the U.S., accounts for approximately 90% of Lorillard's total sales. Yet, Lorillard (LO) are up nearly 50% since an FDA advisory panel,nfl lanyards, after a year-long review, concluded in late March that "removal of menthol cigarettes from the marketplace would benefit public health in the United States." However,newport coupons, the panel didn't directly recommend a ban. That led investors to boldly assume there would be none. They celebrated by snapping up Lorillard shares,nfl jerseys wholesale, lifting them recently to a 52-week high near $117, versus $76.77 at the end of February. The shares were trading at around 61 when Barron's published a positive story on Lorillard more than two years ago
LORILLARD IS FAIRLY SMALL,Newports cigarettes, compared with the rest of the industry, with a $16 billion stock-market value. Though it has the industry's strongest brand and commands the highest prices-per-pack, it is largely undiversified outside of its Newport line,beats by dr dre, whose core customer base is largely on the East Coast. It recently outlined plans for a major push to extend its Newport franchise into the Western states and to build a nonmenthol brand, Newport Red,Cheap Newport cigarettes, as well as a menthol-light brand. Such growth plans typically come at a cost, and could well cut into margins if the company must offer promotional pricing to build volume.
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