Energy Reduction Projects at American Snuff Co.

In 2015, American Snuff Co.’s Memphis facility partnered with ENERGY STAR®, a program of the U.S. Department of Energy and U.S. Environmental Protection Agency. The program provides American Snuff Co.’s facilities with tools to measure and track energy performance, develop and implement energy efficiency programs, and educate employees on energy conservation.

As part of the program, the facility developed an energy team and energy policy. The energy team meets monthly to discuss and present new projects for consideration to reduce energy usage. Through its actions in 2015, our Memphis facility reduced energy intensity, measured in kilowatt hours per case of product, by 10.8 percent over 2014. Additionally, this is the first year the Memphis facility has operated with a new white roof, which reduces energy costs associated with temperature control by reflecting sunlight. In its first year, the project increased energy savings by 10 percent. For their work in energy conservation, the Memphis facility was awarded an Energy Excellence Award from the state of Tennessee, and is a contender for ENERGY STAR Partner of the Year.

Overall, our Memphis location realized a 20 percent reduction in energy use over the course of 18 months.

American Snuff Co. partnered with the University of Memphis to perform energy audits at our Clarksville and Memphis facilities. Taylor Brothers, our manufacturing facility in Winston-Salem, partnered with its local utility provider to perform an energy audit, as well. These audits led to several projects that will return medium- to long-term energy reductions, including:

• Modifying the compressed air system at the Clarksville facility to improve efficiency
• Equipping office, break room, and bathroom lighting with sensors in Clarksville
• Upgrading 20 dock doors, door sweeps, shelters and levelers to make them more efficient at the Memphis facility
• Replacing metal halide lighting with LED bulbs in production and warehouse areas in Memphis
• Upgrading compressed air systems at the Taylor Brothers facility to improve efficiency and reliability.