The History of a Factory: Rothmans, Benson & Hedges — An In-Depth Historical Excursion | Cigstore.ca

The History of a Factory: Rothmans, Benson & Hedges

An In-Depth Historical Excursion from 1899 to the Present Day

🏭 For over a century, the factory at the heart of Quebec City has been a silent witness to the rise, fall, and transformation of the Canadian tobacco industry. From its humble beginnings as the Rock City Tobacco Company in 1899 to its current incarnation as Rothmans, Benson & Hedges (RBH) — a subsidiary of Philip Morris International — this facility’s story is a microcosm of the broader historical, economic, and legal shifts that have shaped Canada[citation:1][citation:4].

🔑 Rothmans Benson & Hedges history 🔑 Rock City Tobacco Quebec 🔑 Canadian tobacco factory 🔑 Philip Morris Canada 🔑 tobacco industry history
1899–1936: The Rock City Era “The Birth of a Quebec Institution”
📅 Key Dates: Founded in 1899 by Olivier-Napoléon Drouin and his brothers, along with friend Joseph Picard[citation:1].

The story begins not with Rothmans, but with the Rock City Tobacco Company. Founded in 1899, it quickly grew into one of Canada’s largest tobacco manufacturers[citation:1]. At its peak, the factory employed around 500 people — mostly women — and maintained about twenty sales representatives across the country, with assets in both Quebec and Ontario[citation:1].

Rock City became best known for brands like Craven “A”, Black Cat, and Sportsman[citation:4]. However, by the 1930s, the company began to struggle. In 1936, the British Carreras Tobacco Company purchased Rock City, setting the stage for the next chapter[citation:1][citation:4].

  • 👷 Workforce: Approximately 500 employees, predominantly women, reflecting the era’s manufacturing workforce demographics[citation:1].
  • 🏷️ Key Brands: Craven “A”, Black Cat, and Sportsman were the flagship products[citation:4].
  • 📉 Decline: The 1930s brought financial difficulties, leading to the sale to Carreras[citation:1].
1956–1986: The Rothmans Era “A Global Player Arrives”

While Rock City was changing hands, another giant was stirring. Rothmans of Pall Mall, founded by Louis Rothman in 1890 on London’s Fleet Street, began operations in Canada in 1956[citation:5][citation:7]. In 1958, Rothmans International acquired Carreras Limited of London[citation:4]. This acquisition gave Rothmans a controlling interest in Rock City Tobacco Company, which it held through Carreras. Finally, in 1963, Rothmans of Pall Mall Canada Ltd. purchased all remaining outstanding stock of Rock City, fully integrating the historic Quebec factory into its global network[citation:1][citation:4][citation:5].

This period marked the beginning of a new era. The factory, now part of a global tobacco empire, saw the introduction of the Rothmans brand to the Canadian market. The company enjoyed decades of growth, becoming a dominant force. By 1975, Rothmans (in its various forms) held a staggering 43% market share in Canada[citation:8].

  • 🌍 Global Connection: The factory in Quebec became a link in the chain of Rothmans International, a company with a royal warrant from King Edward VII[citation:7].
  • 📈 Market Dominance: Rothmans held 43% of the Canadian market in 1975, before a long decline[citation:8].
  • 🏷️ Brand Portfolio: The merger brought together Rothmans, Craven A, and later, the flagship Benson & Hedges brand[citation:10].
📖 Interesting Fact: The Quebec factory is notable for having produced Craven “A” cigarettes, a brand that was closely associated with Canadian entertainment events, including the “Just for Laughs” comedy tour, until sponsorship was banned in 2003[citation:10].
1986–Present: Benson & Hedges, PMI, and a New Direction “A Canadian Institution in the 21st Century”

In 1986, the Canadian operations were formally reorganized, becoming Rothmans, Benson & Hedges Inc. (RBH)[citation:5]. This was followed by a period of intense corporate restructuring. When British American Tobacco (BAT) acquired Rothmans International in 1999, it spun off the 60% stake in the Canadian operations to create a separate public company, Rothmans Inc.[citation:1]. In 2008, Philip Morris International (PMI), which already owned 40%, acquired the remaining 60% of Rothmans Inc. for approximately $2,000 million USD, making RBH a wholly-owned subsidiary of PMI[citation:1][citation:2].

Today, RBH is the second-largest tobacco manufacturer in Canada, employing approximately 780 people across its headquarters, sales offices, and the historic Quebec City factory[citation:5]. Its brand portfolio includes legacy names like Benson & Hedges, Belmont, Craven A, Rothmans, Canadian Classics, Number 7, and Accord, alongside newer products like IQOS and HEETS, reflecting PMI’s stated commitment to a “smoke-free future”[citation:2][citation:5].

  • 🏢 Corporate Structure: RBH is now a subsidiary of Philip Morris International[citation:1].
  • 👥 Workforce: Approximately 780 employees in Canada[citation:5].
  • 🚀 New Products: The introduction of IQOS and HEETS represents a pivot toward reduced-risk products (RRPs)[citation:5].
📖 A Shadow of the Past: The company is still dealing with the legacy of past misdeeds. In 2008, RBH pleaded guilty to charges of aiding cigarette smuggling in the 1990s and paid a $100 million fine[citation:10]. More recently, it has been entangled in a long-running legal battle with Canadian provinces and class-action lawsuits, having filed for bankruptcy protection in 2019. As of 2024, a proposed $32.5 billion settlement is under consideration[citation:6].

📊 Key Milestones in the Factory’s History

YearEventSignificance
1899Rock City Tobacco Company founded in Quebec City[citation:1]Birth of the factory that would later become RBH
1936Rock City purchased by British Carreras Tobacco Company[citation:1]First step toward international ownership
1956Rothmans of Pall Mall begins Canadian operations[citation:5]Introduction of the Rothmans brand to Canada
1963Rothmans acquires full control of Rock City[citation:1]Factory becomes part of Rothmans International
1986Formation of Rothmans, Benson & Hedges Inc.[citation:5]Creation of the modern corporate entity
1999BAT acquires Rothmans International, spins off Canadian operations[citation:1]RBH becomes a standalone public company
2008Philip Morris International acquires full ownership of RBH[citation:1]RBH becomes part of the world’s largest tobacco company
2019RBH files for bankruptcy protection amid lawsuits[citation:6]Legal battles over health and smuggling claims

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