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Cigarette co Reynolds taking nicotine gum national

By WTOP Staff

MICHAEL FELBERBAUM
AP Tobacco Writer

RICHMOND, Va. (AP) — Cigarette maker Reynolds American Inc. is taking its Zonnic brand nicotine gum nationwide, challenging the pharmaceutical industry’s hold and pricing power of the market for products to help people stop smoking.

The nation’s second-largest tobacco company announced the expansion plans Thursday following test markets in Iowa and Nebraska over the last two years following its 2009 purchase of Swedish company Niconovum AB, which makes nicotine gum, pouches and spray products. The move by the maker of Camel and Pall Mall cigarettes and Grizzly smokeless tobacco comes as tax increases, health concerns, smoking bans and social stigma cut into demand for cigarettes and more smokers try to quit.

Smoking is the leading cause of preventable illness and death in the U.S. and is responsible for the majority of the nation’s lung cancer deaths. It’s also a factor in heart attacks and a variety of illnesses. More than 42 million U.S. adults smoke cigarettes and about half try to quit every year, according to the Centers for Disease Control and Prevention.

The company is offering Zonnic in a smaller package and lower price than what’s typically available in the nicotine replacement market and more in line with the cost of a pack of cigarettes — lowering the buy-in price for smokers who want to take a shot at quitting.

Zonnic is being sold in packages of 10 pieces in mint, fruit and cinnamon flavors in two different nicotine strengths for about $3.70 per pack, compared with the national average price for premium cigarettes of $5.80 for a pack of 20. Other nicotine gums that are sold in packs of a minimum of 20 pieces for about $10 and are offered in packages of up to 300 pieces.

“We want to invite people who have made the decision they want to quit to find the best solution for them to achieve that goal,” Tommy Payne, president of Niconovum USA Inc., said in an interview with The Associated Press. “We’re quite serious about it and hopefully we’ll be successful with it.”

While Payne notes there will be critics, “the only thing that we ask is that we’re judged by our actions … even if you don’t like past behaviors” from some of Reynolds American’s operating companies, he said.

According to market researcher Euromonitor International, the U.S. nicotine-replacement therapy market accounts for nearly 40 percent of the $2.4 billion in global annual retail sales, which grew nearly 3 percent over the last year. By comparison, retail cigarette sales worldwide grew 3 percent to $721.6 billion in 2013 but volumes fell more than 1 percent to about 5.71 trillion cigarettes.

While the U.S. is the world’s third-largest consumer of cigarettes, retail volume sales have dropped 22 percent since 2007, indicating a strong movement to quit smoking, Euromonitor analyst Mark Strobel wrote in a report earlier this year. The growing health and wellness trend, as well as educational campaigns, tax hikes, and restrictions on smoking, have all helped to drive sales of nicotine replacement products.

It is also the most mature and competitive market, led by store brands and GlaxoSmithKline, the seller of nicotine-replacement therapy products under the Nicorette and NicoDerm CQ brands, Strobel said.

Reynolds’ foray into the nicotine replacement market is bolstered by moves by the Food and Drug Administration last year to improve quit rates using the products designed to help people stop smoking by supplying controlled amounts of nicotine to ease the withdrawal symptoms. In recent years, a number of stakeholders in public health have noted that smokers that are trying to quit would relapse if they stopped using the nicotine-replacement products after a suggested time period, and they’d abandon their attempt to quit if they had a cigarette while using them, the agency said.

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Michael Felberbaum can be reached at http://www.twitter.com/MLFelberbaum .

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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