At the end of the Civil War, the company continued to prosper and by the early 1870s had more than five hundred employees. During this period, William Macdonald bought out his brother's stock position.
Deeply proud of his Scottish heritage, William C. Macdonald used the image of a Scottish Lass on the packaging of Macdonald tobacco products for nearly a century.
A lifelong bachelor who actually disliked tobacco, on his death in 1917 Macdonald bequeathed his company to Walter and Howard Stewart, the two sons of company manager David Stewart. Walter Stewart became president and under his guidance the company extended production to cut pipe tobacco and tobacco for "roll your own" cigarettes. In 1922, packaged cigarette production was added which quickly became the mainstay of the business. During the 1960s, David M. Stewart (1920-1984), expanded the business into the manufacturing of cigars.
The Macdonald Tobacco company remained in the Stewart family until 1974 when David M. Stewart sold it to the American tobacco giant R.J. Reynolds Tobacco Company who, in light of the uncertainty created by the Quebec separatist movement, relocated the head office to Toronto, Ontario.
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