Money smells of menthol at Lorillard, a
Change in Company Type
Lorillard was purchased by rival
Lorillard serves customers in the US, including its possessions and territories, and the UK.
Sales and Marketing
Lorillard supplies about 500 direct buy customers, primarily wholesale distributors that service more than 400,000 retail outlets, chain stores and government agencies, such as the US Armed Forces.
Lorrilard's revenues grew by 1% in 2014. Net sales from Lorillard's cigarette segment increased by 1.6% in 2014 thanks to higher prices, partially offset by lower unit sales volumes.
Electronic cigarette sales decreased by 28%, as a result of the impact of a lower price on rechargeable kits that were introduced in 2013, partially offset by sales from 2014 product launches, (including blu eCigs PLUS+ kit and tank products and cherry disposable products).
In 2014 Lorrilard's net income increased by 1% due to higher sales and a decrease in selling, general, and administrative costs (down 2.6% due to the absence of the $20 million in estimated costs to comply with or otherwise resolve the U.S. Government Case judgment incurred in the first quarter of 2013).
Cash flow from operating activities increased by 11% in 2014, due to a decrease in inventory and pension and post-retirement contributions, and higher depreciation and amortization, partially offset by a decline in accounts payable and accrued liabilities, a decrease in accrued settlement costs, and higher tax payments.
The tobacco company is also chasing after the fast-growing electronic cigarette market as more restaurants, companies, and municipalities implement non-smoking rules.
Mergers and Acquisitions
Delving into the fast-growing market for electronic cigarettes, Lorillard acquired the assets and operations of SKYCIG, a UK-based electronic cigarette business in October 2013 for about £30 million ($48.6 million). Lorillard plans to pay another $48.6 million in 2016 if certain financial benchmarks are achieved. SKYCIG operates as a subsidiary of Lorillard.
Lorillard and its rivals face an ever challenging regulatory environment following the passage of the Family Smoking and Tobacco Control Act by the US Congress in June 2009. The landmark legislation grants the
Responding, the cigarette maker, along with
An equally significant legal challenge that Lorillard and other cigarette makers face is small scale civil litigation from individual plaintiffs seeking significant judgments. For example, a Florida court in spring 2012 ordered Lorillard to pay a widow $25 million in punitive damages after she was awarded $16 million in compensatory damages. The company planned to appeal.
The company was founded in 1760 by French immigrant Pierre Lorillard.
714 GREEN VALLEY RD
Greensboro, NC 27408-7018
Phone: 1 (336) 335-6600
Employer Type: Privately Owned
Chairman, President, and CEO: Murray S. Kessler
EVP Legal and External Affairs, General Counsel, and Secretary: Ronald S. Milstein
EVP Marketing and Sales: Randy B. Spell
Employees (This Location): 380
Employees (All Locations): 2,700