rubentito/OCR-IDL huggingface dataset:
abisco Biscuit Company effectiveness. The company has N markets the nation's developed new merchandising eight top brands of cookies and databases and information crackers through a direct store systems to gain added delivery system that is widely advantages by analyzing sales acknowledged to be the best in promotion performance on a the food industry. The customer-by-customer basis. RITZ company's 4,500-person sales Nabisco also designs account- CRACKERS FRESH FROM NABISCO force enables it to provide specific programs on a individually tailored service to geographic, and store-by-store G more than 100,000 retail outlets basis, to combine the right mix each week and to work with of cookie, cracker and snack those outlets to maintain products with the right promo- up several times weekly to on its way to Hosfeld's General inventory and product displays tional activity to maximize major retailers like Safeway, Store in Stony Run. Like thai penerate sales for Nabisco sales. All Nabisco sales Kroger, Stop & Shop, Wal-Mart thousands of other family- and the retailer. representatives are equipped and Kmart. But the familiar owned retailers, it plays an During the year, Nabisco with hand-held computers to Ritz or Oreo logos also can be important role in bringing launched several initiatives to collect and access data. seen on a truck rolling along a Nabisco products to consumers increase its sales force Nabisco delivery trucks pull road in rural Pennsylvania in every market in the country. KOREO as (COOKIES 9 Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
NABISCO FOODS GROUP N abisco's Fleischmann's as to enhance product quality growth strategy. Most signifi- Division, the nation's and to gain cost advantages cantly, it launched nationally second-largest margarine pro- through improved manufac- - "Move Over Butter," a spread MoreOver ducer, began construction in turing efficiency. that combines the nutritional 1992 of a 300,000-square-foot In 1992, the Fleischmann's characteristics of margarine factory in Indianapolis. When Division introduced several with the taste attributes and completed, it will be North new products as part of its visual appearance of butter. America's largest margarine production facility. The $40 million project, which is scheduled to begin production in mid-1993, consolidates operations of two older plants. The new plant will provide Nabisco with the II' technological capabilities to continue expanding its Fleischmann's and Blue Bonnet margarine franchises, as well I n May 1992, Nabisco Foods and Stoned Wheat Thins Group acquired the trade- crackers. Plans are underway to Chips marks and certain assets of the expand the New York Bagel New York Style Bagel Chip Chip franchise, which holds Company, Inc., the country's over a 40 percent market share leading producer and marketer of this small but rapidly of bagel and pita chips. growing category. Programs are The acquisition gives Nabisco in the works to add a variety of a new presence in the deli new products to the 20-item section of the grocery store, line of bagel and pita chips, to where bagel chips often are broaden their reach into new sold, while it also expands markets in the U.S. and to the company's portfolio of introduce them in Canada. snack products. Nabisco is marketing the products through Christie NEW YORK SIYLE Brown USA, a division of its Bagel Canadian unit, Nabisco Brands Chips Ltd. which already sells a number of popular specialty Sarile products in the United States, including Peek Freans cookies 10 Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
N abisco's Planters Division has embarked on a com- Planters began an ambitious year prehensive campaign to revitalize and expand its for new products by introducing packaged-nuts franchise with new products, new "Munch 'N Go Snacks," which packaging and an aggressive push into the targets convenience store portable snack arena. shoppers with eight Planters capitalized on the popularity varieties of nuts offered in of spicy foods with a new long, tubular packages that are "Planters Heat" line of displayed in soda-cooler spicy peanuts. merchandising racks. Research Launched in a new 11 shows that 80 percent of nut sales in foil pouch that allows 11 convenience stores are made with the product to be beverage purchases. Even Mr. Peanut displayed standing up on has a "new look.' Instead of his usual, store shelves, it competes cross-legged pose, he's depicted directly with other salty snacks like potato chips running in the displays - and corn chips. The new recloseable pouch also highlighting the portability of gives consumers the advantage of portability. Planters' new snacks. N abisco Foods Group acquired one of the nation's best-known independent bakers of breadsticks, breakfast treats and specialty cookies when it bought the Stella D' oro Co. in 1992. Stella D'oro, which means "gold star" in Italian, was founded in 1932 as a small, family-owned bakery in Bronx, Stella Drive N.Y. It now has plants in New York; St. Elmo, III.; and San Leandro, Calif. In 1991, the company generated sales of $67 million. Stella D'oro's products are unique in the baked-goods market and add a new introduce Stella D'oro to additional dimension to Nabisco's cookies and consumers throughout the country, crackers. For decades, Stella D'oro has as well as to enhance the popularity had a loyal following of consumers, of the brand in current markets. particularly in the Northeast and on the West Coast, The acquisition provides new opportunities for Nabisco to use its marketing and distribution strengths to 11 Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
NABISCO FOODS GROUP generations of families to enjoy is about double the food the company's products. industry's average. A significant investment in Nabisco also introduced research and development-wa Mr. Phipps Tater Crisps. critical to creating the high- This baked potato snack comes quality products that enabled in three flavors and has less Nabisco to expand into this than half the fat of traditional new product area of enormous potato chips. consumer appeal. SnackWell's and Mr. Phipps Due in large part to the Tater Crisps round out a variety results of consumer taste-tests of fat-free and reduced-fat and technological research products introduced in the last conducted at its Schaeberle two years, including Fat Free Technology Center in East Fig Newtons, Mr. Phipps N abisco Foods Group green packaging. For shoppers, Hanover, N.J., Nabisco consis- Pretzel Chips, Fat Free launched one of the they represent the combination tently ranks at the top of the Mr. Phipps Pretzel Chips, most ambitious new product of good taste and low-fat food industry in new product and Fat Free Premium efforts in its history in 1992, content. introductions. More than Saltine Crackers. introducing two new lines of Research shows that, while 10 percent of its sales comes snack foods for nutrition- many customers want lower- from new items every year. conscious consumers: fat content in snacks, they're Over the past four years, the Shackneus SnackWell's and Mr. Phipps unwilling to sacrifice taste. company's R&D efforts have Tater Crisps. The challenge for Nabisco was led to its receiving 219 patents, SnackWell's six fat-free and to develop a line of products to the highest in the food reduced-fat cookies and appeal to new consumers and industry. As a percent of crackers stand out on grocers' also to follow in the tradition sales, Nabisco's spending on shelves because of their vivid of superior taste that has led research and development D uring the year, the supplies more premium frozen margarines and Egg Beaters Nabisco Foods Group pies to supermarket bakeries egg alternatives. PLUSH PIPPIN acquired the Plush Pippin than any other company. Nabisco's Food Service Corporation, a leading supplier Nabisco is looking to Plush Division is broadening Plush of premium quality frozen pies Pippin to broaden the scope of Pippin's distribution into other to in-store supermarket its well developed food service parts of the country and is bakeries. Plush Pippin, based portfolio. The Food Service using Plush Pippin's expertise near Seattle in Kent, Wash., Division markets Nabisco with the in-store bakery also sells pies to wholesale cookies and crackers to restau- business to assess new clubs and food service rant chains and institutions, distribution channels for accounts. A major portion of its along with such other well other Nabisco products. 1991 sales of $22 million were known products as Grey generated in the Western part Poupon mustard, A.1. Steak of the U.S., where Plush Pippin Sauce, and Fleischmann's 12 Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
NABISCO INTERNATIONAL In 1992, we made tremendous progress on our plan to build an important RJR Nabisco international food business that has consistent, high rates of profit growth through a combination of internal growth and acquisitions. At year-end, total sales had crossed the $750 million threshold and we expect to generate sales of approximately $1 billion in 1993. In Latin America, we are one of the largest U.S. multinational consumer food companies with businesses in 18 countries, more than 17,000 employees and 47 factories. We have strong regional brand franchises, particularly under the Nabisco, Royal, and Fleischmann names, as well as important local brands; such as Lance and Yemina in Mexico, and Gloria and Maguary in Brazil. In 1992, we made significant investments in new businesses) plants and equipment in Mexico, Brazil and Venezuela as well as in expanded and upgraded distribution systems and increased advertising levels in our key markets. These investments are critical to building a high-quality, global consumer branded foods business in Latin America that draws heavily from the expertise in baked goods, marketing and distribution of its affiliates in North America and provides an important strategic outlet for RJR Nabisco. Although mich of our management resources and investment dollars have been G. RICHARD THOMAN focused on Latin America, we see opportuhities in other parts of the world as well PRESIDENT and expect to be actively expanding in the Asian and European markets. NABISCO INTERNATIONAL, INC. D uring the year, Nabisco acquired an and Fleischmann brands. The company also additional 43 percent interest in markets canned fruits and vegetables under Nabisco La Favorita, its Venezuelan biscuit license from Del Monte, and affiliate, increasing its ownership Life Savers candy products. interest to 93 percent. Nabisco Nabisco also began a major La Favorita markets Club Social, expansion of its bakery in the leading cracker brand in the Barquisimento to accommodate country, às well as Oreo and other the high level of demand in Nabisco brands. In addition to a Venezuela for premium cookies 41 percent share of the Venezuelan and crackers and to enable biscuit market, Nabisco International Nabisco La Favorita to increase market holds the leading market positions in baking share. The first line started up at year-end, and powder, dry desserts and yeast with the Royal the other two will be operational by mid-1993. 13 Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
NABISCO INTERNATIONAL I n 1992, Nabisco International acquired consumers, where the company already has a Industrias Alimenticios Maguary, Brazil's major business with its Fleischmann's dry yeast, largest producer and marketer of packaged Royal dessert mixes, baking powder and and bottled fruit juices. Maguary had drink mixes, and Gloria packaged milk sales of approximately $50 million in products. The company's grocery products 1991, the year before the acquisition, business generates more than half of and has manufacturing plants in Nabisco International's sales in Brazil, three locations in Brazil. The much of it in giant urban "super company markets such fruit juice stores" such as the one shown here, varieties as Passionfruit, Tamarind, where a group of Nabisco sales Mango, Pineapple, Grape and MAGUARY representatives have just com- Cashew, under the Maguary and pleted a new product Tamba brand names. display. In addition to its A typical leadership in Brazil, Brazilian Maguary "super store" exports about is the size of 20 percent of an American its juices to countries as far away as Japan. football field and has up to one hundred cash The acquisition expanded Nabisco register lines serving thousands of customers International's presence in the large grocery each day. Price checkers in the stores use roller products business serving Brazil's 150 million skates to move about. E H. WA ment) 14 Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
Matisco N abisco International's Brazilian sub- and consumer promotions. sidiary, Fleischmann e Royal Limitada, As the world's fourth-largest biscuit market, increased its volume of cookie and cracker sales Brazil is central to the company's objective of by 31 percent in 1992. The dramatic increase was category growth in Latin America. The company the result of a successful began a major expansion of its effort to grow its line of bakery in Piracicaba, about SABOR HOCOLATE top-quality, premium- 100 miles northwest of priced cookies and crackers by introducing a São Paulo, to double biscuit production capacity. variety of new products, and supporting new The first of the new production lines is scheduled and existing products with aggressive advertising to begin operating in the second quarter of 1993. N abisco International are an important base for The combined businesses, took two major steps in Nabisco International's which have sales of more than Mexico in 1992 to provide the expansion in Mexico's high- $140 million, provide Nabisco (company with a strong biscuit growth food business. International with a strong base on which to expand in Nabisco International also biscuit base in Mexico, the Latin America's second-largest agreed to acquire several leading market position in and recond-fastèst-growing important food brands from pasta with the Yemina-brand, economy. Mexico's largest biscuit com- and critical mass in a number The company acquired pany, including its Ritz and of other product lines that have Lance, a rapidly growing Premium brands, which had significant growth potential Mexican manufacturer of been distributed under license. cookies and crackers, pasta, flour and cake mixes based in Mexico City. Lance markets its products under the brand name "Tres Estrellas," which is Spanish for "Three Stars." Lance's established brands 15 Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
TOBACCO OPERATIONS RJR Nabisco's worldwide tobacco operations are volume rose 3 percent from 1991, net sales managed in the U.S. by R.J. Reynolds Tobacco Co. increased 6 percent to $9.03 billion from and in the rest of the world's markets by $8.54 billion, and business unit contribution R.J. Reynolds Tobacco International, Inc. was $2.69 billion, slightly less than $2.73 billion In 1992, the company's worldwide tobacco the year before. Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
1/ RJ REYNOLDS TOBACCO COMPANY At R.J. Reynolas, we continue to aggressively pursue strategies to stabilize market share for our U.S. tobacco business and restore operating income growth. In 1992, amidst a highly competitive environment and recessionary pressures on consumers, we increased our overall share of the domestic tobacco market. Although this improved market performance positions us well for the long term, our financial performance last year reflected the impact of an intense price war coupled with investments in retail sales and marketing capabilities. Improving the performance of our full-price brands - particularly Winston, Salem and Camel - continues to be our number-one priority, and we strengthened these brands in 1992 with successful marketing programs and product introductions. But last year many consumers flocked to the rapidly growing lower-priced segment of the market, and we decided it was necessary to defend our overall market position by competing more aggressively in that segment. We have done this by promoting our Doral brand to defend its leadership position among discount brands and by introducing new brands in the lowest-price category in response to competitors' moves. These efforts enabled us to out-execute our competitors in these categories and successfully grow market share in the savings segment. Perhaps the most important accomplishment in 1992, however, was in strengthening our capabilities at R.J. Reynolds. We instituted innovative marketing programs, developed new processes to tailor our promotional efforts to specific geographies and retail outlets, and created new information systems to execute and evaluate these programs. We also increased our ability to manufacture products more efficiently through quality and cost control initiatives in our plants. JAMES w. JOHINSTON CHAIRMAN & CEO We're confident that 1992's improved marketplace performance and strengthened R. J. REYNOLDS internal capabilities represent a strong base for the future. TOBACCO COMPANY O ver the past two years, Reynolds Tobacco has among smokers of competitors' brands. Winston Select made more than 100 separate improvements to provides smokers with a smoother, milder flavor its flagship Winston brand to enhance brand Winston that the company believes will give smokers of quality, attract adult smokers of competitors' SELECT competitors' brands a new reason to rethink their brands and provide tangible incentives to brand choice and try Winston. Select's advertising preserve the loyalty of current smokers. and promotional activity reinforce the overall In 1992, the company introduced Winston Select, a emphasis on product quality, innovation and leader- line with a completely different tobacco blend and taste ship that are central to successfully repositioning the signature from Winston that is designed to attract interest entire Winston line as the nation's premium cigarette brand. 18 Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
R JJ Reynolds Tobacco's attributes of Salem's FreshWrap than conventional packaging Salem brand is the best- aluminum coated polyester and is viewed as a special selling menthol cigarette in the overwrap, modeled after competitive advantage among U.S. The company began test- Winston's successful FlavorSeal menthol smokers, who are even ing a new advertising and packaging. FreshWrap more sensitive to freshness promotional campaign in maintains Salem at peak fresh- issues than smokers of non- selected markets as part of an ness up to three times longer menthol brands. effort to update the brand's imagery and better address the lifestyles and taste preferences of contemporary adult smokers. The campaign, "Escape to the FreshSide," emphasizes leisure activities Salem that bring to mind many of the most pleasurable moments in life - travel, outdoor activities, and music. The FreshSide campaign also builds on the product quality S ome 15,000 retailers agreed in 1992 to use a thousand stores, in both English and Spanish GREAT Winston TASTES! comprehensive program designed by versions. Major retail chains, including Dairy Reynolds Tobacco to make it harder for those Mart and Sap-On Drugs, already have started - = who are under-age to purchase tobacco prod- using the program, and numerous retail trade ucts. The program, called "Support the Law- - organizations, including the New England It Works," provides training Convenience Store Associa- and instructional materials tion and CAL-PAC South for store managers to help CHECK LD3 Association in California them comply with also have endorsed it. minimum-age laws on The "Support the Law - cigarettes and other age- It Works" program is part of restricted products. It was Reynolds Tobacco's overall developed jointly by the youth non-smoking effort. company and retailers Other programs under the nationwide and includes company's "Right Decisions, in-store signs alerting Right Now" campaign customers that age include in-school instruc- identification is required to purchase age- tional materials for the use of educators, public restricted products, including tobacco. service announcements, and parental "coaching" Reynolds Tobacco is making the training pro- materials - all of which actively support the gram available free-of-charge to several hundred company's position that kids should not smoke. 2073272527 ig Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
RJ REYNOLDS TOBACCO COMPANY I n today's competitive envi- As part of a company-wide number of manufacturing ronment, R.J. Reynolds effort to reduce costs while product rejects by more than Tobacco Co. is committed to continuing to improve product 20 percent and also reduced using all of its financial and service quality, teams of tobacco processing waste by resources as wisely as possible Reynolds Tobacco employees more than 12 percent through in order to be able to invest as have embarked on business changes in equipment needed in marketing programs process reengineering configuration and control to continue to improve market- programs throughout the monitoring procedures. share performance. The company that rely on their Employee-led total quality company continued an recommendations to increase efforts generated some aggressive effort to reduce productivity and reduce costs. $65 million in cost savings for costs in manufacturing, raw In cigarette manufacturing Reynolds Tobacco in 1992. materials and administration operations, such as those in 1992, while maintaining its shown here, employee teams commitment to producing the have identified new ways to highest-quality tobacco improve productivity and qual- products possible. ity. Their efforts in 1992 cut the (i) E 20 Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
R J. Reynolds's Camel a cost-effective means for the purchases have come from brand was one of only company to generate excite- smokers of competitors' CAMICL two full-price brands in the ment among adult smokers brands. WIDES U.S. tobacco industry to post and prompt them to Most importantly, both volume gains in 1992 and, in switch brands. Camel Wides and the new fact, finished the year as the Camel Wides, which are promotional programs have country's fastest-growing smoother and wider than the contributed to an overall full-price brand. average cigarette, were intro- marketing campaign that has Much of Camel's success can duced in March 1992. So far, helped the Camel brand family be attributed to the appealing the results are encouraging: show strength in an extremely brand personality Reynolds has More than half of Camel Wides competitive environment. developed for it in recent years with creative advertising, innovative promotions like the successful Camel Cash premium merchandise cata- logue, and responsive new product line extensions, such as Camel Wides, which were introduced during the year. The Camel Cash catalogue, which offers adult smokers il premium, brand-logo merchandise including Carnel mugs, cigarette lighters and fishing lures, has proven to be I instead of following a marketing and merchandising strategy Reynolds Tobacco representatives today develop tailor-made that dictates a one-size-fits-all approach to marketing in-store programs to take advantage of that interest and maximize nationally, Reynolds Tobacco decentralized its marketing the sales potential of the company's most popular products there. decision-making to allow its sales force to be With more than 450 cigarette brand styles more responsive to local market dynamics. The currently competing for the attention of smokers, company rolled out its new marketing strategy, Winston retailers are very selective in stocking the right FREC called account-specific marketing. on a national WINSTON product mix for their customers. For most stores, basis during 1992. cigarettes represent their largest inventory invest- Account-specific marketing empowers ment. Reynolds Tobacco made major investments Reynolds marketing and sales managers to make in computer technology in 1992 to support the decisions about brand placement, display and more complicated logistics of account-specific in-store advertising placement that more closely marketing programs. The company made this fit consumption patterns of each store. So, in markets or outlets commitment because the program gives retailers another reason where there is an especially strong demand for the company's to give the company's brands the most attractive retail space, Winston brand (as shown here) over, say, Camel or Vantage. which is central to rebuilding its full-price brand portfolio. 2073272529 2 Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
RJ REYNOLDS TOBACCO INTERNATIONAL Without question, 1992 was the most eventful year in the history of our company. It was a year of unparalleled business growth, as we staked out positions in a number of attractive markets and dramatically expanded our world- wicle business base. We finished the year a far different company than we were going in, with half again as many employees and a sales base fully one-third larger. Yet our objective for the company remains the same and that is to grow this business as rapidly as possible while continuing to deliver strong earnings and cash flow growth. During the year, we responded to openings in Eastern Europe and other regions by acquiring or building manufacturing facilities and developing integrated operations in Russia, Ukraine, Poland, Hungary, and Turkey. At the same time we continued to invest heavily in building brand franchises and strengthening market positions in Europe, Asia, the Middle East and Latin America. These investments add. a whole.new dimension to our business and significantly increase future earnings potential. While our primary focus in the past year has been on business building, we were again able to deliver solid sales and earnings growth. That growth was due in large part to continued global emphasis on our international brands - Camel, Winston and Salem -- which are three of the strongest selling brands in the world and the backbone of our company. This solid pérformance reflects the core strengths of our company: Our strong trademarks and clear-cut strategies; our ability to identify and capitalize on new opportunities; and the dedicated, committed people who are the driving force behind our success These DALE F. SISEL PRESIDENT & CED strengths will remain the cornerstone of our business as we look ahead to a future R. J. REYNOLDS TOBACCO of unbounded opportunities in a large and growing world cigarette market. INTERNATIONAL, INC. I n 1992. R.J. Reynolds Tobacco International entered into a La Palma, Canary [slands, and its employees became part of joint venture with the government-owned manufacturing the joint venture. The new joint venture gives RJR Tobacco company Tabacalera S.A. of Spain to pro- International a substantial equity interest duce, distribute and market two of its flag- in the business and provides it with a ship cigarette brands, Camel and Winston, greater share in future profit growth. It Estatua in Spain. These brands had been produced also enables the company to step up the under license by Tabacalera since 1983. Libertad. level of marketing investment and assure As part of the agreement, RJR Tobacco future growth for the company in an International's manufacturing facility in important European market. 22 Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
C onstruction began in 10 billion cigarettes annually. 1992 on RJR Tobacco The $50 million construction CAMEL A International's new 135,000- project represents the start of a IMEL square-foot manufacturing $100 million investment the company plans to make in Turkey over the next decade. After years of state control, the Turkish tobacco market only recently was opened to foreign manufacturers. Because the country is an 83-billion-unit market with little penetration from western R.j. Reynolds Reklam Ve facility in Turkey. When companies, Turkey is an espe- Pazarlama A.S., to oversee completed in 1993, the factory, cially attractive development marketing and sales of its which is located in Torbali, opportunity for RJR Tobacco Camel and other American- some 12 miles from the International. blend brands. Total employ- Aegean port of Izmir, will The company has estab- ment is expected to reach have production capacity of lished a new subsidiary, 300 people. I n June of 1992, the plant and equipment upgrades Hungary is a 26-billion-unit Hungarian State Property to accommodate local manu- cigarette market of which the Agency accepted RJR Tobacco facturing of RJR-trademarked Satoraljujhely factory's output International's bid to acquire cigarettes. accounts for about 20 percent. the Satoraljujhely cigarette factory, providing the company with a unique opportunity to expand its presence in an Eastern European market where its international brands, CAMEL such as Camel, are already ROZMARING known. ESZPRESSZO The factory, located in north- eastern Hungary near the Slovakian and Ukrainian bor- ders, has an annual production capacity of 5.5 billion cigarettes. Under new RJR ownership, it will continue to produce well-known Hungarian cigarette brands while investment begins in 23 Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
RJ REYNOLDS TOBACCO INTERNATIONAL T he whirlwind of political RJR Tobacco International is company with controlling and economic reform in making a substantial interests in the Lviv Tobacco what was once known as the investment in new, modern Factory in the western Soviet Union changed the face equipment as part of a long- Ukrainian town of Vinniki, and of the world and opened up a term commitment to improve the Kremenchug Tobacco wide range of possibilities for product quality and signifi- Factory, located in the city of western businesses. cantly increase production of the same name in the south RJR Tobacco local cigarettes in Russia. When central region of the Ukraine. International launched installation of new machinery The remaining interests in the business ventures in in the factory is completed, two factories are owned by the two of the former Soviet RJR-Petro's annual capacity Ukrainian government. republics - Russia and will increase to 22 billion units, As in Russia, the company's SPETERBURG the Ukraine - in 1992, making the venture the largest investments in the Ukraine will marking the first time cigarette producer in Russia. include the purchase and that an American Russia currently has a deficit installation of technologically tobacco of 100 billion cigarettes annual- advanced equipment and other company had ly and RJR-Petro will play a plant improvements to increase begun a major major role in alleviating the production and product quality nezac manufacturing chronic shortage of cigarettes in the two factories. Upon - venture in either available to consumers there. completion of the moderniza- of the republics. In addition to investing in new tion project, total annual In Russia, the equipment and plant improve- production capacity in the company acquired ments at the factory, factories is expected to increase a majority interest RJR Tobacco International is to nearly 25 billion units, with in a new providing experienced the potential for additional partnership with technicians for on-site training expansion. AS-Petro, one of in all areas of cigarette The joint ventures in both the republic's largest and most manufacturing. RJR-Petro is countries produce high-quality HOCMOC ... modern cigarette factories, to also working with western and affordable local filtered manufacture many of the suppliers to implement pro- and non-filtered cigarettes, country's leading cigarette grams for improving Russian primarily using local tobacco brands. Based in St. Petersburg, tobacco, and manufacturing and materials. RJR American- the new partnership is known supplies such as paper, filter blend brands, such as Camel as RJR-Petro. AS-Petro and packaging materials. and Winston, will be (formerly the Uritski Tobacco In the Ukraine, the second- introduced in the future. Factory) was the first Russian largest of the former Soviet cigarette company to return to republics, RJR Tobacco private ownership after being International entered into state-owned for 72 years. two joint ventures in 1992 to produce cigarettes in that 80-billion-unit market. The joint ventures provided the 24 Source: ttps://www.industrydocuments.ucsf.edu/docs/ffbb0067
R JR Tobacco International began construction in 1992 on a $33-million-cigarette production facility in Warsaw that will be one of the most modern factories in Poland. The new facility, which will encompass 132,000-square-feet and be equipped with technologically advanced manufacturing equipment, is scheduled to begin production in mid-1993. While awaiting completion of the project, the company has already started to build a market presence - and in the process has become the first Western cigarette company to begin manufacturing in Poland - by using a temporary pilot plant near Warsaw to produce its Camel brand. RJR Tobacco International has already established its own marketing and sales company in the city to handle its growing Polish business. Capacity at the factory is expected to reach some 8 billion units annually. Kamienne WGK 2178 25 Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
CORPORATE INITIATIVES During 1992, RJR Nabisco made significant progress on a number of company-wide initiatives intended to better position the company for the future. The company undertook a multi-billion-dollar debt refinancing effort and launched an employee education and training initiative that was singled out by a variety of labor relations experts for its responsiveness and level of commitment. The company also completed the third year of its funding commitment of a $30 million investment program in public school reform intended ILEFT TO RIGHTI KARL M. VON DER HEYDEN to move the country toward a better educational system. EUGENE R. CROISANT Some of the highlights follow. LAWRENCE R. RICCLARDI I n March 1992, RJR Nabisco denied post-secondary training for all employees who became the first corpora- education for lack of funds. The need it and release time to tion ever to launch an all-out financing program is part of an enable parents to accompany effort to put post-secondary effort to ensure that all of the their children to school when education financially within company's employees are necessary. The company also the reach of the children of all prepared to meet today's sponsors employee workshops of its U.S. employees. The workplace challenges, and that that help employees become program is part of a compre- future employees will have the more active in reforming local hensive initiative to put the school programs and awards company's commitment to cash grants of up to $2,000 to improving America's help employees fund special educational system and work- programs or major changes in force into practice with its their local school systems. own employees. So far, more than 2,500 As part of the initiative, the RJR Nabisco employees have company offers employees a taken advantage of the new variety of financial aids, includ- program, which the company ing matched savings, loan necessary skills to succeed in a views as an important invest- subsidies and scholarships to more competitive, global ment in its ability to compete provide that no child of an economy. Other parts of the in the future. RJR Nabisco employee will be program include work skills 28 Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
T he company's RJR Nabisco Foundation awarded $9 million to 14 public schools in 1992 to develop promising new educational initiatives aimed at reforming elementary, middle and secondary education in the U.S. The grants, part of the foundation's Next Century Schools program, brought the total funding committed to these programs to $30 million, and made the foundation's program the largest corporate cash contribution ever made to public schools. The Next Century Schools program supports the efforts of pioneering educators by bypassing government bureaucracy and directly providing schools with venture capital for bold ideas with the potential to bring solutions to the nation's educational crisis. The program challenges front-line educators to devise revolutionary proposals to improve student achievement and demonstrate the potential for adaptation of the proposals by other communities throughout the country. Over the three-year duration of the program, the foundation has invested in the pioneering efforts of 43 different schools in 24 states and the District of Columbia. The most successful programs, now in their third year, have been invited to apply for a one-year grant to fund their ideas for replicating the programs in other schools. A fter completing a 1992 by substantially reducing well as other borrowings, were company would have been dramatic drive to reduce its interest costs. The company primarily applied to repurchas- able to redeem the debt. debt, add equity and gain accomplished this by success- ing the company's high-cost The program also will reduce financial and operating flexibil- fully completing seven major debt and thereby lower the the level of refinancing needed ity in 1991 that left it with a offerings of senior notes total- company's overall cost of capital. in the future to retire the debt-to-equity ratio of a com- ing $3.1 billion. The invest- The refinancings completed remaining debt related to fortable 1.7-to-1, RJR Nabisco ment-grade bonds have an in 1992 will significantly reduce the company's leveraged continued to take major steps average coupon interest rate of RJR Nabisco's net interest costs buyout in 1989. to improve its balance sheet in 8.1 percent. These proceeds, as through 1994, when the TOTAL INTEREST EXPENSE RJR NABISCO HOLDINGS CORP. is MILLION$) 1990 $3,000 1990. 1991 1992 $3,000 $2,113 $1,429 1991 $2,113 1992 $1,429 29 Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
CONSOLIDATED CONDENSED FINANCIAL INFORMATION CONSOLIDATED CONDENSED 1992 1991 STATEMENTS OF INCOME Net sales YEARS ENDED DECEMBER 31 $ 15,734 $ 14,989 Cost of products sold 6,326 6.088 RJR Nabisco Holdings Corp. (S millions, except per share) Selling, advertising, administrative and general expense 5,894 5,358 See Book2 for consolidated financial statements, related footnotes and Amortization of trademarks and goodwill 616 609 management's discussion and analysis of financial condition and results of operations. Operating income 2,898 2,934 Interest expense (1,429) (2,113) Amortization of debt issuance costs (20) (104) Other income (expense), net 7 (69) Income before income taxes 1,456 648 Provision for income taxes 680 280 Income before extraordinary item 776 368 Extraordinary item - loss on early extinguishments of debt, net of income taxes (477) - Net income 299 368 Preferred stock dividends 31 173 Net income applicable to common stock $ 268 $ 195 Net income per common and common equivalent share $ 0.20 $ 0.22 Average number of shares (in thousands) 1,363,549 887,622 CONSOLIDATED CONDENSED 1992 1991 STATEMENTS OF FREE CASH FLOW Operating income $ 2,898 $ 2,934 YEARS ENDED DECEMBER 31 Amortization of intangibles 616 609 Restructuring expense, net of gain on the sale RJR Nabisco Holdings Corp. of the ready-to-eat cold cereal business 8 ($ millions) See Book 2 for consolidated financial Business unit contribution 3,522 3,543 statements, related foomo(es and management's discussion and Depreciation and other amortization 530 515 analysis of financial condition and results of operations. Other income (expense), net (1) (69) Earnings before interest, taxes, depreciation and amortization 4,051 3,989 Increase in operating working capital (196) (445) Capital expenditures (519) (459) Change in other assets and liabilities (297) 192 Operating cash flow* 3,039 --- 3,277 Taxes paid (116) (368) Interest paid (1,102) (1,397) Dividends paid (214) (205) Other, net 31 (208) Free cash flow $ 1,638 $ 1,099 . Operating eash flow. which is used as an internal measurement for evaluating business performance, includes, in addition to net cash flow from (used in operating activities as recorded in the Consolidated Statement of Cash Flows, proceeds from the sale of capital assets less capital expenditures, and is adjusted to exclude inconte taxes and items of a financial nature (such as interest paid. interest income, and other miscellaneous financial income or expense Itemy 2073272538 30 Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
CONSOLIDATED CONDENSED Assets 1992 1991 BALANCE SHEETS Current assets: YEARS ENDED DECEMBER 31 Cash and cash equivalents $ 99 $ 434 RJR Nabisco Holdings Corp Accounts and notes receivable, net 1,356 800 (S millions) Inventories 2,776 2,704 See Book 2 for consolidated financial statements, related faotnotes and Prepaid expenses and excise taxes 345 282 management's discussion and analysis of financial condition Total current assets 4,576 4,220 and results of operations. Property, plant & equipment. net 4,858 4,816 Trademarks, net 8,959 9,290 Goodwill, net 13,062 13,250 Other assets and deferred charges 586 555 Total assets $ 32,041 $ 32,131 Liabilities and stockholders' equity 1992 1991 Current liabilities: Notes payable $ 298 $ 369 Accounts payable and accrued accounts 2,869 2,795 Current maturities of long-term debt 379 819 Income taxes accrued 300 72 Total current liabilities 3,846 4,055 Long-term debt (less current maturities) 13,541 13.343 Other noncurrent liabilities 2,203 2,313 Deferred income taxes 4,075 4,001 Stockholders' equity 8,376 8,419 Total liabilities and stockholders' equity $ 32,041 $ 32,131 31 Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067
RIR NABISCO 1301 AVENUE OF THE AMERICAS NEW YORK, NEW VORK 10019 Adams DUNB AR * Printed on Source: https://www.industrydocuments.ucsf.edu/docs/ffbb0067