Tobacco is a plant that grows in a wide range of soil and climate conditions. Its non-edible leaf is dried and used to produce cigarettes, pipe tobacco, cigars, chewing tobacco and snuff. Companies that manufacture and market cigarettes, snuff, cigars, chewing tobacco, and other tobacco products, are tobacco industries.UST Inc., through its subsidiaries, operates predominantly in the tobacco industry as a manufacturer and marketer of moist smokeless tobacco products, and also produces and markets premium wines. The Company operates primarily in the United States.The Company's principal smokeless tobacco products and brand names are divided into moist and dry categories. Under the moist classification, the Company's brands include Copenhagen, Skoal Long Cut, Skoal, Copenhagen Long Cut, Red Seal, Skoal Bandits and Rooster. The Company's products under its dry category include the brands Bruton, Cc and Red Seal. The Company markets its moist smokeless tobacco products throughout the United States, principally to chain stores and tobacco and grocery wholesalers. Approximately 35% of the Company's gross sales of tobacco products are made to five customers, one of which, McLane Co. Inc., a national distributor, accounts for 19.7% of the Company's consolidated revenue.The Company is a producer of premium varietal and blended wines. Chateau Ste. Michelle and Columbia Crest Varietal Table Wines and Domaine Ste. Michelle sparkling wine are produced by the Company in the state of Washington and marketed throughout the United States. UST Inc. also produces and markets two California premium wines under the labels of Villa Mt. Eden and Conn Creek. Approximately 60% of the Company's wine sales are made to 10 distributors, none of which accounts for more than 26% of total wine sales. Substantially all wines are sold through state-licensed distributors with whom the Company maintains satisfactory relationships.The Company's other operations include t...
