RJR to pay C$323 mln

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Canada

R.J. Reynolds Tobacco Co., a unit of Reynolds American Inc., has announced that it will pay the Canadian government C$325 million (US$323.4 million) towards settlement of civil claims related to cigarette smuggling in the 1980s and 1990s.

A subsidiary company, Northern Brands International Inc., also agreed to pay C$75 million based on one count of “conspiracy to aid others in the sale and possession of contraband cigarettes in Canada in the early 1990s.” R.J. Reynolds Tobacco Holdings Inc., whose best-selling brands include Camel and Pall Mall, sold their international businesses, including RJR-Macdonald Inc., to Japan Tobacco Inc. in 1999.

The company said that it will help Canadian authorities fight contraband if it is to sell its tobacco products in the country in the future by implementing packaging and marketing strategies, among other initiatives.

Quarter 4, 2011

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