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72TOBACCOOUTLETBUSINESSJANUARYFEBRUARY2011100percentU.S.-grownstyleswesawanopportunityforaproductthatsupportsU.S.farmersandlocalbusinessesandhasrelevancybecauseitkeepsbusinessinourownbackyardatatimewhentheeconomycanuseallthehelpitcanget.TetobaccogrownintheU.S.alsoreducestheamountofenergyandemissionstotransportthematerialitisnotshippedfromoverseas.InadditionAmericantobaccohashistoricallybeenknownasthebestintheworld.Basedon28yearsofsolidgrowthyesthereiscontinuedandgrowinginterestinnaturaladditive-freeproductsincludingsometobaccoproductsmadewithorganicallygrowntobacco.SantaFeNaturalobaccohasalwayshadacommitmenttosustainabilityhenceourall-naturalproductsandourleadershipindevelopinginnovativeearth-friendlygrowingprograms.Conventionallygrowntobaccocropsdepletesoilnutrientsatamuchhigherratethanmostothercropsasaresultconventionaltobaccofarmersuseanabundanceoffertilizers.Tisdepletesnutrientsfromsoilandleavesfertilizerresiduebehindwhichmayreducebiodiversityandthrowothebalanceofthelocalecosystem.SantaFeNaturalhasactivelyengagedintheresearchanddevelopmentoftobaccoproductsthatnotonlycontainnoadditivesbutthatalsoeliminateagriculturalchemicalsfromtheharvestedcrop.InotherwordsSantaFeNaturalhascultivatedorganicallygrownandPurityResidueCleanPRCtobacco.Eachyearsince1989thecompanyhascontractedwithcertiedorganicfarmerstogroworganictobaccoontheirfarmsexclusivelyforSantaFeNaturalobaccoCo.WebeganourPRCgrowingprogramtominimizetheuseofchemicals.GrowersinourPRCprogramuseonlycertainchemicalswhichbreakdownquickly.Tistobaccolikealltobaccosweuseinourproductsistestedforchemicalresidue.In2011alltobaccowecontractforwillbeeitherPRCororganicallygrown.SFNChasalsorecentlyworkedwithanagribusinessinNorthCarolinatodevelopasuckercidethathasbeenapprovedforusewithcropsgrownaccordingtoorganicstandards.Suckersaresmallshootsthatsproutfromtobaccoplantsrobbingtheleavesofnutrientsanddecreasingthequalityoftheleaf.Removingsuckersbyhandisextremelylabor-intensivebuttheneworganicallyapprovedsuckercidethatwehelpeddevelopismakingiteasierandlessexpensiveforgrowerstoproducetop-qualityorganictobaccoleaf.Weremakingthissuckercideavailabletogrowersatcost.SFNCmakesthesecommitmentsbecausewebelieveinoperatingastransparentlyaspossible.Webelieveconsumersoftobaccoproductshavetherighttoknowwhattheyareconsumingwiththeirtobaccoandthatonceinformedasignicantnumberofconsumerswillchoosetosmokeadditive-freetobaccoproducts.Tereforeouradvertisingisstraightforwardandinformation-basedwiththegoalofeducatingsmokersaboutournaturaltobaccoproductsandhowtheydierfromtheproductsofothertobaccocompanies.Wedonotencouragenonsmokerstostartsmokingnordoweencouragecurrentsmokerstosmokemore.Wealsoactivelyworktoreducetheuseoftobaccoproductsbyanyoneunderage.Infactattheirrequestwerecentlyprovided100AmericanIndiannationswithRightDecisionsNowBeobaccoFreekitswhichcontaincurriculatoteachyouthhowtomakeresponsiblechoicesandhowtoresistpeerpressuretosmoke.OurcustomersareadultsmokerswhohavemadeaninformeddecisiontosmokeNaturalAmericanSpirit.Wemakenoclaimsthatanadditive-freetobaccoproductislessaddictiveorbetterforyoubutwehavefoundthatmanyadultsmokerswanttousenaturalandorganicproductsduetoecologicalandenvironmentalconcerns.Webelievetheseconsumersappreciateoureortsandourtransparency.AlthoughsomethingsmayhavechangedovertheyearsourvaluesWhattrendsorpreferenceshaveyouobservedintobaccoIstheregrowinginterestinnaturalproductsRelativelyearlyonSantaFeNaturalTobaccobegananearth-friendlytobacco-growingprogram.WhatledtothatinitiativeHowdoesitworkWhatdoeshavingprogramslikethatandpoliciessuchaspledgingnevertotestproductsonanimalsanddiscouragingnonsmokersfromsmokingbringtothecompanyHowimportantaretheytoyouremployeesandcustomersInJanuary2002SantaFeNaturalTobaccoCo.becameanindependentoperatingunitofReynoldsAmericanInc.HowhasbecomingapartofReynoldsaectedyouroperations