R. J. Reynolds Tobacco Company
A historic American tobacco manufacturer and the company behind major cigarette brands including Camel, Newport, Winston, and Salem.
Last updated October 16, 2026
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Overview
R. J. Reynolds Tobacco Company is an American tobacco manufacturer headquartered in Winston-Salem, North Carolina. Founded in 1875 by Richard Joshua Reynolds, the company grew from a small tobacco factory into one of the largest cigarette businesses in the United States. Its historical importance is closely connected with the industrial development of Winston-Salem and with the creation and marketing of nationally recognized brands such as Prince Albert, Camel, Winston, and Salem. Reynolds began after Richard Joshua Reynolds sold his interest in his father's tobacco operation in Virginia and moved to Winston-Salem, a railroad-connected town in North Carolina. He established a small factory, initially relying on seasonal labor, and progressively expanded production through mechanization, steam power, electric lighting, national distribution, and mass advertising. By the early twentieth century, the company had acquired or displaced many local competitors. Prince Albert smoking tobacco became a major national product, while Camel cigarettes, introduced in 1913, became one of the most successful cigarette launches in American history. Reynolds imported Turkish tobacco and French cigarette paper in such quantities that Winston-Salem received special federal recognition as an inland port of entry. The company was also a major institution in the social and economic life of Winston-Salem. It constructed housing for workers, supported local suppliers and financial institutions, and became one of North Carolina's most important taxpayers. After Reynolds died in 1918, the company continued to expand under succeeding executives, including William Neal Reynolds and Bowman Gray. During the twentieth century it diversified beyond tobacco, acquiring interests in businesses such as Hawaiian Punch, Sea-Land Service, and Del Monte Foods. This broader corporate structure adopted the name R. J. Reynolds Industries in 1970. A merger with Nabisco Brands in 1985 created RJR Nabisco. The resulting conglomerate became the subject of a highly publicized leveraged-buyout contest, completed by Kohlberg Kravis Roberts in 1988 and later chronicled in the book and film Barbarians at the Gate. Reynolds tobacco operations were separated from the wider food business in 1999 and became R. J. Reynolds Tobacco Holdings. In 2004, the company combined with the U.S. operations of British American Tobacco's Brown & Williamson through the creation of Reynolds American Inc. In the twenty-first century, Reynolds has remained a major U.S. cigarette producer while facing regulation, litigation, public-health criticism, and restrictions on tobacco marketing. Its brands have included Camel, Newport, Doral, Eclipse, Kent, Pall Mall, Winston, and Salem, although brand ownership and geographic rights have changed through corporate transactions. In 2017, British American Tobacco completed its acquisition of Reynolds American, making R. J. Reynolds Tobacco Company a wholly owned operating subsidiary within the BAT group. The company continues to manufacture and market combustible tobacco products and selected oral and other tobacco-related products in the United States, subject to federal and state regulation.
History
Richard Joshua Reynolds founded the company in Winston-Salem in 1875 after leaving his family's tobacco business in Virginia. His first factory, acquired from the Moravian Church, was a relatively small operation known locally as the little red factory. Production expanded rapidly: the company introduced mechanized production, used steam power and electric lighting, and grew from a seasonal manufacturer into a national tobacco enterprise. By the 1890s it was producing several million pounds of tobacco each year. At the beginning of the twentieth century, Reynolds consolidated much of Winston-Salem's tobacco manufacturing capacity. Prince Albert, introduced in 1907, became an important national smoking-tobacco brand and was promoted through prominent advertising. Camel cigarettes, launched in 1913, combined domestic and imported tobaccos and became the company's signature cigarette brand. Reynolds's large purchases of Turkish tobacco and French cigarette paper contributed to Winston-Salem's designation as an inland U.S. port of entry during the 1910s. Reynolds died in 1918. William Neal Reynolds succeeded him, and Bowman Gray later became chief executive. The company remained one of North Carolina's dominant businesses, supporting local suppliers, banks, professional firms, and worker housing. It also diversified during the postwar period. Acquisitions included Pacific Hawaiian Products, producer of Hawaiian Punch, in 1962; Sea-Land Service in 1969; and Del Monte Foods in 1979. The expanding corporation changed its name to R. J. Reynolds Industries in 1970, while the tobacco company operated as a subsidiary. The 1985 merger with Nabisco Brands produced RJR Nabisco. A heavily contested leveraged buyout in 1988 transferred control to Kohlberg Kravis Roberts. The transaction became a prominent example of late-1980s corporate finance and was later portrayed in Barbarians at the Gate. Reynolds's tobacco business was separated in 1999, while the former food company was subsequently reorganized and sold. In the same period, RJR sold its non-U.S. tobacco operations to Japan Tobacco, meaning that many Reynolds brands sold outside the United States became part of Japan Tobacco International rather than the American company. Regulatory and legal pressure increased from the 1990s onward. A congressional statement by chief executive James Johnston in 1994 concerning nicotine addiction became part of the wider public debate over tobacco-industry knowledge and disclosure. The 1998 Master Settlement Agreement imposed substantial financial and promotional obligations. Reynolds also faced criticism over the Joe Camel campaign, youth-oriented marketing allegations, labor conditions in tobacco farming, cigarette smuggling cases, and product-liability litigation. In 2004, Reynolds merged with Brown & Williamson's U.S. operations, creating Reynolds American. The company later closed or consolidated manufacturing facilities, acquired selected smokeless-tobacco rights, and agreed in 2014 to acquire Lorillard, with certain brands sold to Imperial Tobacco as part of the transaction. British American Tobacco completed its acquisition of Reynolds American in 2017. R. J. Reynolds Tobacco Company therefore continues as a U.S.-focused tobacco operating company within BAT, while brand ownership outside the United States may differ.
- 2017
Acquired by British American Tobacco
[1]BAT completed its acquisition of Reynolds American.
- 2014
Lorillard acquisition agreed
[1]Reynolds American agreed to acquire Lorillard while divesting selected brands to Imperial Tobacco.
- 2004
Reynolds American created
[1]RJR combined with Brown & Williamson's U.S. business.
- 1999
Tobacco business spun out
[1]The tobacco operations became R. J. Reynolds Tobacco Holdings.
- 1998
Tobacco Master Settlement Agreement
[1]Reynolds accepted settlement payments and marketing restrictions with 46 states.
- 1985
Merger with Nabisco Brands
[1]The transaction created RJR Nabisco.
- 1970
Parent company renamed R. J. Reynolds Industries
[1]Diversification led the broader corporation to adopt an industrial holding-company structure.
- 1913
Camel cigarettes introduced
[1]Camel became the company's defining cigarette brand and one of the leading cigarettes in the United States.
- 1907
Prince Albert becomes a national showcase brand
[1]The smoking-tobacco product helped establish Reynolds as a nationally advertised tobacco company.
- 1875
Company founded in Winston-Salem
[1]Richard Joshua Reynolds established a tobacco factory after moving from Virginia to Winston-Salem, North Carolina.
Products and positioning
A mass-market and premium-segment tobacco manufacturer with a portfolio spanning legacy cigarette brands, menthol products, value brands, and selected smokeless tobacco products.
Cigarettes · 1913
Camel
Introduced in 1913, Camel is Reynolds's best-known historical cigarette brand. Its early identity was built around a blend associated with Turkish and domestic tobaccos, distinctive packaging, and extensive national advertising. The brand has also been associated with the Joe Camel mascot campaign, which attracted significant criticism over its alleged appeal to minors.
Menthol cigarettes · 1957
Newport
Newport is a major menthol cigarette brand in the U.S. portfolio. It became especially significant in the menthol segment and was acquired by Reynolds American through the Lorillard transaction.
Cigarettes · 1954
Winston
Winston is a major American cigarette brand historically marketed by Reynolds. It has been associated with national advertising and sports sponsorship, including NASCAR's Winston Cup, although ownership and geographic rights can vary by market.
Menthol cigarettes · 1956
Salem
Salem is a menthol cigarette brand historically associated with Reynolds. The brand formed part of the company's mass-market cigarette portfolio and was also involved in major sports and event sponsorship activity.
Cigarettes · 1899
Pall Mall
Pall Mall is a long-running cigarette brand in Reynolds's U.S. portfolio, generally positioned toward the value and mainstream segments. It is among the company's nationally distributed legacy brands.
Smoking tobacco · 1907
Prince Albert
Prince Albert smoking tobacco became Reynolds's national showcase product after its 1907 introduction. Its advertising helped demonstrate the company's ability to build a nationally recognized packaged-tobacco brand before cigarette sales became dominant.
Smokeless tobacco · 2010
Kodiak and Grizzly
Kodiak and Grizzly are smokeless-tobacco products associated with Reynolds's U.S. portfolio. Reynolds acquired rights to these products in 2010, expanding beyond cigarettes into oral tobacco.
Controversies
2026
Albuquerque sues eight tobacco companies over cigarette butt litter
The City of Albuquerque filed a lawsuit against eight tobacco companies, including Philip Morris USA, Altria Group, R.J. Reynolds Tobacco Company, Reynolds American, Santa Fe Natural Tobacco Company, British American Tobacco P.L.C, Liggett Group and BSR Distributing, seeking to recover costs of cleaning up cigarette butts from streets, sidewalks, waterways, arroyos and public places. The city alleges the companies continue to produce non-biodegradable filters despite knowing they create waste.
2006
Canadian cigarette-smuggling case
Former sales vice-president Stan Smith pleaded guilty to participating in a cigarette-smuggling operation while employed by Reynolds. The case concerned tax avoidance and black-market distribution in Canada.
2002
Youth marketing and free-cigarette penalties
The company faced fines for distributing free cigarettes at events attended by children and for violating restrictions connected with the Master Settlement Agreement.
1994
Congressional testimony on nicotine addiction
Chief executive James Johnston testified under oath that he did not believe nicotine was addictive, a statement later cited in criticism of tobacco-industry positions on health risks and addiction.
1991
Joe Camel youth-marketing controversy
A study found that young children recognized Joe Camel at unusually high rates, leading critics to argue that the campaign attracted minors. Reynolds rejected the allegation and said its research and campaign were directed at adults.
Farm labor campaign
The Farm Labor Organizing Committee criticized conditions and bargaining arrangements in Reynolds's tobacco procurement system and sought direct engagement with the company, growers, and farmworkers.
Marketing campaigns
- 2005Marshall McGearty Lounge
United States
Reynolds opened a Chicago lounge promoting a superpremium cigarette concept through an upscale hospitality environment offering specialty cigarettes, alcohol, and food.
Outcome. The Chicago location closed after indoor-smoking restrictions took effect, and a planned Winston-Salem location was abandoned.
- 1987Joe Camel
United States
Reynolds revived Camel's cartoon camel mascot in a campaign intended by the company to appeal to adult smokers. Public-health critics argued that the character and creative style attracted children. Reynolds denied targeting minors and later ran advertisements asserting that smoking was an adult activity.
Outcome. The campaign became a major subject of youth-marketing criticism and was later discontinued under increasing legal and regulatory pressure.
- 1972Winston and Camel motorsports sponsorships
United States
Reynolds used Winston and Camel branding in major motorsports properties, including NHRA drag racing, NASCAR, IMSA Camel GT, and Formula One sponsorship of Team Lotus.
Outcome. The Master Settlement Agreement restricted tobacco sports sponsorship; NHRA sponsorship ended in 2001 and NASCAR sponsorship continued through 2003.
Brand decisions
2017
Acquisition by British American TobaccoM&ABackground
BAT sought full ownership of Reynolds American and a larger position in the U.S. tobacco market.
Action taken
BAT completed its takeover of Reynolds American.
Aftermath
R. J. Reynolds became a wholly owned subsidiary within British American Tobacco.
Acquisition value. $49.4 billion (2017)
2014
Acquire LorillardM&ABackground
Reynolds American sought to strengthen its cigarette portfolio, particularly through Lorillard's Newport brand, but competition authorities required divestitures.
Action taken
Reynolds American agreed to acquire Lorillard for $27.4 billion and sold Kool, Winston, Salem, and blu to Imperial Tobacco for $7.1 billion.
Aftermath
The transaction expanded Reynolds American's U.S. market presence while transferring selected brands to Imperial.
Transaction value. $27.4 billion acquisition; $7.1 billion brand divestiture (2014)
2010
Manufacturing consolidationStrategyBackground
Reynolds American reviewed its manufacturing footprint in response to production and operational considerations.
Action taken
It announced the closure of plants in Winston-Salem and Puerto Rico and planned to transfer production to Tobaccoville, North Carolina.
Aftermath
The decision concentrated manufacturing in fewer facilities.
2004
Merge with Brown & Williamson's U.S. operationsM&ABackground
The transaction combined two major U.S. tobacco businesses owned by Reynolds and British American Tobacco.
Action taken
A new parent company, Reynolds American Inc., was established.
Aftermath
R. J. Reynolds became the principal operating tobacco company within Reynolds American.
1999
Separate U.S. tobacco operations from RJR NabiscoStrategyBackground
The company was reorganized after the conglomerate's tobacco and food businesses had followed different strategic paths.
Action taken
R. J. Reynolds Tobacco Holdings was spun out as a separate tobacco company.
Aftermath
The separation restored a tobacco-focused corporate structure before the later creation of Reynolds American.
Recent events
Reported
Albuquerque sues eight tobacco companies over cigarette butt litter[2]
The City of Albuquerque filed a lawsuit against eight tobacco companies, including Philip Morris USA, Altria Group, R.J. Reynolds Tobacco Company, Reynolds American, Santa Fe Natural Tobacco Company, British American Tobacco P.L.C, Liggett Group and BSR Distributing, seeking to recover costs of cleaning up cigarette butts from streets, sidewalks, waterways, arroyos and public places. The city alleges the companies continue to produce non-biodegradable filters despite knowing they create waste.
- Unconfirmed
Reported
Denver sues tobacco companies over cigarette butt litter cleanup costs[3]
The City of Denver filed a 72-page lawsuit against 10 cigarette companies, including Philip Morris USA and R.J. Reynolds Tobacco Co., accusing them of creating a public nuisance by selling cigarettes with environmentally persistent synthetic plastic filters. The lawsuit seeks unspecified damages and a court order requiring the companies to prevent, reduce, manage, remove, or remediate cigarette-filter impacts.
- Unconfirmed
Reported
Denver sues tobacco companies over cigarette butt litter cleanup costs[4]
Denver filed a lawsuit in district court against Philip Morris USA, Altria Group, R.J. Reynolds Tobacco Company, Reynolds American, Santa Fe Natural Tobacco Company, British American PLC, ITC Brands, Liggett Group, Liggett Vector Brands and Peerless Products, seeking to recover costs for cleaning up discarded cigarette butts and damage to city infrastructure, stormwater systems and waterways. The city alleges public nuisance, trespass, negligence and product liability violations related to non-biodegradable cellulose acetate filters.
Reported
Denver sues tobacco companies over cigarette butt litter cleanup costs[5]
The City and County of Denver filed a lawsuit in state court on Aug. 7, 2026, against nine major tobacco manufacturers and one distributor, including companies behind Marlboro, Newport and Camel, seeking compensation for environmental damage caused by non-biodegradable plastic cigarette filters to municipal property, infrastructure, stormwater systems and waterways.
Sources5 sources
- 1R. J. Reynolds Tobacco Companyen.wikipedia.org
- 2Albuquerque sues eight tobacco companies over cigarette butt litterkob.com
- 3Albuquerque sues eight tobacco companies over cigarette butt litterindependent.co.uk
- 4Albuquerque sues eight tobacco companies over cigarette butt littergazette.com
- 5Albuquerque sues eight tobacco companies over cigarette butt litterwestword.com
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