Liggett Group

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Liggett Tobacco, formerly known as Liggett & Myers Tobacco Company is the smallest of the major U.S. tobacco companies. Its headquarters are located in Durham, North Carolina. Its CEO is Bennett S. LeBow.

[edit] History

John Edmund Liggett's grandfather, Christopher Foulks, was the owner of a snuff mill in New Egypt, New Jersey. During the War of 1812 the mill was razed by British soldiers. Foulks moved west around 1820 and opened a new snuff shop in Belleview, Illinois in 1822. In 1833 he moved his tobacco business to St. Louis, Missouri, where in 1844 - 1847 (dates uncertain) John Edmund Liggett entered his grandfather's business.

By 1858 Foulks's company was known as J. E. Liggett and Brother. Around 1869 the company created the first blended cigarettes, using a mixture of Turkish and Virginia tobaccos. A partnership was formed with George Smith Myers of Missouri, and in 1873 The Liggett & Myers Tobacco Company was incorporated.

In 1876 Liggett & Myers introduced L&M plug chewing tobacco, during the 1880's it entered the cigarette business and by 1885 the company had become the world's largest manufacturer of plug chewing tobacco.

John E. Liggett died in 1897 and two years later Liggett & Myers was acquired by American Tobacco Company, controlled by James B. Duke. George S. Myers died in 1910 and the following year the U.S. Court of Appeals issued a Dissolution Decree to the American Tobacco Company which created the opportunity for Liggett & Myers Tobacco Company to be reborn.

Ligget & Myers continued to release new brands, in 1912 Chesterfield was reintroduced as a Turkish-Virginia blended cigarette and in 1915 Burley and Maryland tobaccos were added to Chesterfield blend. It was in 1916 that Chesterfield became the first cigarette to add a moisture-proof, overall cover to the paper and foil pack.

By 1921 Cigarettes had become the most used form of tobacco. Continuing to innovate, in 1952, Ligget & Myers using Chesterfield became the first to offer cigarettes in two sizes: King and Regular.

In 1963 Lark charcoal filter cigarettes were introduced. In 1968 the company changed its name to Liggett & Myers, Incorporated.

In 1970 the Eve brand was launched in regular and menthol.

The company again changed its name in 1976 to Liggett Group Inc. with Liggett & Myers Tobacco Company as a division.

In 1980 Eve 120's are launched nationally and the same year Liggett was acquired by Grand Metropolitan PLC. In 1981 Liggett introduces generic cigarette concept. Another name change took place in 1983, this time the head company becoming GrandMet USA with the tobacco company officially named Liggett Group Inc.

In 1986 Bennett S. LeBow purchased Liggett from Grand Metropolitan. In 1987 Liggett's stock was offered publicly on New York Stock Exchange. In 1988 Liggett introduces Pyramid cigarettes. In 1990 Liggett became a subsidiary of Brooke Group Ltd., a holding company owned by Mr. LeBow. In 1990 The Wall Street Journal acclaims Pyramid as "one of the most successful cigarette introductions of the decade". 1992 marked the year that Eve & Lark were relaunched with new packaging and backed by large advertising and promotional campaigns. In 1993 Liggett developed its Control Label concept, offering customers exclusivity to market Control Brands owned by Liggett. By 1994 Liggett had expanded its Control Label family to a total of 8 brands.

In 1995-1996 the company attempted unsuccessfully to take over the much larger R.J. Reynolds Tobacco Company.

In 1996 - 1997 Liggett Group had become the first tobacco company to settle smoking related litigation brought by the Attorneys General of several states. In 1998 Liggett signed tobacco litigation Master Settlement Agreement and 1999 saw the formation of Vector Tobacco Inc.

In 1999 Liggett Vector Brands Inc. sold L&M, Lark and Chesterfield brands to Philip Morris Companies Inc., now known as the Altria Group.

In 2004, CEO Bennett S. LeBow was said to be exploring the possibility of consolidating smaller industry players. Rumored takeover targets were S&M brands, Xcaliber International, and Dosal Tobacco Company of Miami, Florida.