Check Out U.S. company’s efforts to improve their results by expanding into new businesses.
 
Altria Group said on Thursday that it’s acquiring cigar maker John Middleton for $2.9 billion, breaking into the U.S. cigar business as it tries to expand beyond the shrinking U.S. cigarette market.
 
U.S. cigarette consumption has declined steadily since 1981 as more bans on smoking in public places are put in place and health messages against cigarettes become more prevalent.
 
But Altria said the market for machine-made cigars, where Middleton participates, has increased at a compound annual rate of about 4 percent from 2003 to 2007 — meaning it could provide an attractive new source of sales growth.
    
Breaking into a new business appears to be working for CVS, which is now CVS Caremark.
    
CVS bought Caremark in March and on Thursday, CVS Caremark reported a higher-than-expected quarterly profit, helped by the addition of Caremark’s pharmacy benefits business and increased sales at drugstores open at least a year.

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(Photo: Reuters)