Susan Ivey, CEO of Reynolds Tobacco Company Lauren Lightcap, Marcus Mills, Thom Otroba Reynolds is transforming itself into a company that also offers an array of smokeless alternatives including strips, lozenges and snuff. They are the second largest producer of tobacco in the United States with 28.3% of the market share One in five American adults smokes today Down from one in three in 1980 70% of smokers say they want to quit Last year, sales volumes for smokeless tobacco products rose about 7%, while cigarette volumes fell about 9%, according to industry estimates Ms. Ivey, a smoker since college, is the first woman to run a major tobacco company She was hired in 1981 as a salesperson for Brown & Williamson Tobacco Corp. In 2001, Brown & Williamson, the No. 3 player in the U.S., named Ms. Ivey CEO. Ms. Ivey developed an interest in dissolvable- tobacco products Brown & Williamson was acquired by R.J. Reynolds Tobacco Holdings Inc. in 2004 Tapped as CEO of the newly named Reynolds American, Ms. Ivey embarked on a two- pronged strategy she called "total tobacco." reduce costs in its cigarette operations and invest part of the savings in the smokeless tobacco category. Ivey has cut Reynolds' stable of cigarette products by nearly 600 items, or 70%, including "soft-pack" varieties of Kool, Winston and Doral. She made her first big move in 2006, buying Conwood Co., the maker of Grizzly moist snuff, for $3.5 billion. The company was apprehensive about a move towards smokeless tobacco with the fear that they would be forgoing the company tradition of producing cigarettes. Reynolds is banking on support from scientists and public-health professionals who argue that lives could potentially be saved by encouraging smokers to switch to smokeless tobacco. Federal rules prohibit companies from marketing the products as a safer alternative to cigarettes. These rules are not expected to change in the near future. The new smokeless products are designed to appeal to women. Camel Snuspouches of spit-free oral tobacco popularized in Sweden. Camel Orbstiny oval-shaped lozenges Camel Stripsthin tobacco wafers that melt on the tongue after three minutes Reynolds promotes them as options when lighting up is impractical or illegal. Some tobacco-control advocates have criticized Reynolds' dissolvable products as nicotine candies designed to appeal to children. adolescents may be drawn to the products' "brightly colored packaging" and "easily concealable size New products [give] smokers a mechanism for maintaining their addiction when they work in smoke-free locations," which actually decreases "the incentive to quit." Reynolds Tobacco Company is currently moving towards a smokeless tobacco market. Cut cigarette products by 70% Smokeless tobacco sales volumes have risen 7% Smokeless tobacco products are met with mixed reviews.