PM History/2 - Legacy Tobacco Documents Library

PM history/22
--WHITNEY AT PHILIP MORRIS SET TO OPEN, NYT 4-4-83//see Geo W file
--THE NEW MEDICI, Forbes 5-9-83= alludes to PM's "massive" spending
on the arts but NO NUMBER CITED . . .said to be one of most generous
corp. patrons//but, $3 million £o Vatican art show of Feb-June In direct
costs + robabl ano er m llion for v . . . o o elssman quo e
on w a s e n e policye "By pu ting ourselves in a creative mode,
we say something about ourselves"=encouraging PM to be creative, °to
come up w/things like Miller Lite ., .and Va Slims . . . . "THERE ARE PRnPT•F'
WHO TH BUSINESSES AS S N INDUST EVERY CORP . LIKES A GOOD
IMAGE TO GET GOOD PEOPLE TO WORK FOR IT" . . .noting his craggy looks that
make oro man look like a tenderfoot
--ANOTHER RDBALL CAMPASGN FROM 7-UP, Fbrbes 6-6-83= New campaign
promoting absence o3 artifioial ~ avors & colorings in 7-Up (RK : EVEN
AS IT ADDS ARTIFICIAL FLAVORS TO MERIT) . . . comparing w/20 competitive
brands/following up to '82 campaign vs . caffeine in rivals, who fought
back with their own caffeine-free entries . . .also . : Like does ~p,~,kain
g~ flavors _T~a .& it's even include3 i?r '~e`Tis~ of brands
7-Up is com~5~ed`'toc~] . . .some, latitude for argumente CARAMEL, merely burnt
sugar (1), is major ingredient in root beers & colas but is judged to
be artificial by FDA//not a popular move, plainly, witness comment by ,
head of Wometco Enterprises, a bottling group w/a single 7-Up franchises
^'17iis_tr.+.,nking ~ of every oroduct~round is BAD FOR THE ENTIRE SOFT- DR --
INDUSTAY", ___ 0
. .BUT, -U has broke its slide & inched up in mkt share
.~+~ last yr to 6 .5 -- BUT, co . still in red by $1 .2 (operating loss)
& hasn't turned a vr_ofit si
=--= ys PM, RAMA MO V DS DIRE BW - -8 = Last
six mos called trauma c fo the ci indust w/fed . tax doubling, pushing
prices past 1 in most cities cu Ing shipments ca . 8% In first
qtr w/drop-off of 3-4% for yr expected + Congress may toughen the warning
label + GENERIC C , pooh-P oohed when introduced 3yrs ago, have won
nearly 3 of domestic mkt//a1l of which spurring new moves for the VALUE-
ONSCIOUS SE TOR OF THE MKT : R.~$ haS O,,~ . e,~y
line in 65 of nation while gM- has moved " upsac`le jbut not`up in pricee)
oi"`r i`CS"BBdY°~'leivxe--U3tr~'T,ights and Players by fancy new packaging &
adv . . . . Century features 25 CIG PACKSL or,_.a_ .,2Q~6,d3,sCp .u~t,,,ae. .76' .m„c,ig,,, .,e,pmpared
T1~?t' ~C51Z GEIVERSC5 - ;-:RJR"pres Gerald tong says there•s
new kind of customer "interestecT"-in getting something that's not cMeap,
but e est value for his or her money" . . .Centur;y's constFuction re uires
about 10% less tob, , than n3gst,_,~?ranS~S, plan is'~to"1'r`mY'`~' susta'iii3ng aIv= '
promo"~oir'entiiry"af~er"" ~ig intro=same profits as from core brands . . .
Wall St rout followed announeement of Century over fea~ o~ ci rice war
im?4~u~~E .it~__apgrcdaacTi>aa S~ia equ3va1sa3t o£ oi~eiin~C,~N~~fi°
EER PRIC ~&Ii~ ISeluXe U tra Liahts came ou fG ~$Y °'88~ ~ .n iLver-~gold
box emblazoxned w crest & `ned w embosse~ .~o~7,, ...-~rabb~e'~`an 3muressive
o£ the mx 12,'
.t .~t d~ ~, ek~ R.,^Sa~x ~~-~ ?n e. ng .
rM decided ~ " ~ goar,tes
e - YERS
" - ` = te ~ " in
ine
:cr~es'~i~'Ys3~`°58~alne Sn Eold seriot, imparting ready LD, t sense
of uxury -- US ciE in~ustrv has shied away from black "because o£_7
erceived all In to the controvers over S&H . .,&H - e uxCpaek is
aimed at q~rea those ~ ave it .ma wha . ~~-"
mo"LSiI'E; `2'htter rushed Ti~~ ibution & seems to be starting well . . .
RJ'R-a`ol9TOwT'e`d~'e"s ~ii~l`ra ` c,mP„ nackagin~" & beat RJR into that mkt . . . but
PM and B&W expected to join RJR in 25-cig packs//GENERICS =AT .& ,hg~
grabbed 96% of the m'~ k~~'~~"**#*2OOg6 sales growth in 182, L&M pres KV Dey \~O
involved in generics "But we've doubled our CY\
share" w/them v
--BOTTLENECK. 'rb 1-16-84s With a Miller man ned-h
th`ego for mkt share first for 7-Up, then go~for"co'~a mkt which is 63% of~
9~bil~ion ga'i:Y'om-°stiY-3"e'=drink mkt/after 5~ yrs 7-Up mkt share is 7~5%
or ri ht where it was on the takeover + the ca3rfeine panic as major mktg~
coup rony .> .a__ vA,-, operation .-at_.best_now . . .Like not sold in big
aszern mxts since moF ~ tn _ .,, hq~ ~g $ (4~l ;~~ , B€z~
g„k~ eometing
~ ;, . . .options s put'y~ up cash'to- . ~ , colas buy major bottiers or put up'-ftb 'own
re onal plants £or Like . . .58yro1d Edw Frantel, ..ex vn sales a. ..Mill er,
~ .,I~';'A3~f?1~.~ . . .
., .a ing US o . is aYso w horserae_ ei ht-conscious so soda mkt not boom-
`- ~ "~ ~ ownrom f annu h grow thillif rate an ee van thd oe soa
9.ndustr caffeine scare discussed . . .whereas B seh sa on its
i e was intr duced eve one ' mnpiy_12~nn5_i,p „~& In'~'delastic floor
space n supermkt_ Weissman= doesn't know if 7-Up can work_& ependsif Coke wents to drive everyone else to the wall
. . .$620 million tied uD
in 7-Up & not a penny of profits so far
http://legacy.library.ucsf.edu/tid/fmw44c00/pdf