Altria's Not Tobacco's Only Altruist

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For months, Altria (NYSE: MO) has been the tobacco industry's head of all things wholesome. By supporting FDA regulation of cigarette products (with much tighter advertising constraints), Altria became the only member of "Big Tobacco" to back anti-smoking concerns.

But now it's time for Altria to step aside, because Reynolds American (NYSE: RAI) could potentially one-up the former Philip Morris at its own game. According to rumors, Reynolds wants to purchase Swedish-based nicotine-replacement gum and spray provider Niconovum.

Niconovum is really small potatoes in the scope of Reynolds' overall business; the deal has an estimated worth of roughly $44.5 million. But just think of the positive spin that Reynolds could give this acquisition, playing up the company's commitment to consumer health. Combine this little addition with the "all-natural" cigarettes that Reynolds produces through the Santa Fe Natural Tobacco company, and the company could start to market itself as the tobacco industry "wellness" leader.

After all of these open struggles with the new FDA guidelines on tobacco, Reynolds is smart to try to repair its image. Lorillard (NYSE: LO) and Reynolds have been the key players in fighting the new FDA tobacco regulations, and both companies were dealt a big blow last week, when a federal judge ruled that free speech laws most likely do not support the companies' case against the government.

Reynolds' acquisition could also broaden the company's international base, thanks to Niconovum's European business. Reynolds is already partnered up with global tobacco stalwart British American Tobacco (NYSE: BTI), so in the end, this deal could help both companies while weakening rival half-siblings Altria and Philip Morris International (NYSE: PM).

Cigarette companies helping consumers to stop smoking, or actively trying to improve product health, is nothing new. A few years back, Vector Group (NYSE: VGR) introduced Quest Cigarettes, with a focus on moving users to "nicotine-free smoking." Smokeless snus, currently made by British American Tobacco and Altria among others, are just one of the newer tobacco products aimed at decreasing the harmful effects of smoking tobacco.

Big Tobacco will always try to position itself as a collection of somewhat-caring corporate citizens. Now, it looks like Reynolds American may take the top spot as the industry's spin leader.

For related Foolishness:

• Who's Serving Up Smoking Results?
• Is Philip Morris Lost in Translation?
• Altria's Flame Withers