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Lorillard Has Menthol Boost As Cigarette Maker Nears Spinoff 

Lorillard, which is being spun off from Loews Corp., will make its debut at a time when the U.S. tobacco industry is selling fewer cigarettes because of bans on smoking in public places and higher cigarette taxes.

But Lorillard does have one ace up its sleeve: it dominates the market for menthol cigarettes, which have been gaining market share and declining more slowly than other types of cigarettes.

"It's going to be a tough market for all the domestic cigarette companies," says Morningstar analyst Gregg Warren. "Lorillard is on the positive end of the industry dynamics because of the menthol offerings."

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