PM History/2 - Legacy Tobacco Documents Library

pm/23
--CALL FOR HIGHER TAXES, Forbes 2-13-84 : RJR's 25-pack Century doing
well, but in ca. 15 states like NY & Md cigs are taxed by the 10 so
Century gets the 30 tax rate & there"s no consumer saving so RJR hasn't
even tried in those states . .,the eco . mkt is about 5% of total//in Ohio
where taxes are on the 10, the rate is 7¢ per 10 but if individually
taxed, it would be a 17¢ tax per pack, so PM is in there fighting toothand-nail,
but tried to keep a low profile in Columbus . . . PM's man argues
state revs would be lost if Ohio changed . . .PM lost
--NOT ON TOP, JUST ON TAP, profile of Geo Weissman as he retires,
Charlotte Curtis in NYT 3-27-84
--LINE OF SUCCESSION AT PMs Maxwell named . NYm ~2-1=8~
--PM TO BUY UP 4 MILLION SHARES, ST~5-31-84s Plans periodic buy up
of common, of which 122 million outstanding for employee stock option
program "and for other corpp purposes," unelaborated on
--PM-U T U TS WS 6- -8 s Shepard P . Pollack to be replaced
by Frank E . Resnic Pollack had been for 6 rs . . .Resnick is 55,
reports to Hugh Cullman, c airman & CEO of the un t
--AT PM, SODA & BEER ARE STILL FALLING FLAT . BW 12-17-81ys Cigs have
best yr ever but-increasin vo~Eh nomv_=hurtine 7-Uv, about to report
1--s 5th strai ht Ir o£ losses + writedown announced in late Nov of the
new 7fi1 er 50 million brewery in Ohio ($140 million after taxes) . . .yet
Wall St has not punished PM for its non-tob . failures (as HMax declines
to be interviewed by BW) . . . . FM's share-of-cig mkt rises FOR 22ND STRAIGHT
Y$***"'***it has increased didends 19 times n past 17 yrs pa~ .d down
long-term debt to 26% of capitalization/capital spending is down so cash
is abundant ., .MILLERs Hi h Life is hurting, the Miller Time message be-
came generic, as in et s ave a dr3.~nTc'aive e a u*****ba
Timong on price rises=H~igh~ ~i~fe shi ments off 3-5% in past Svrs . .a revitalization
plan in wor sbran~s for economy mkt, low-alcohol & a
draft-style brand + new ad agency/bia OVERSUP~'r,Y OF GAPACITY prob . . .
7-UPs colas off to below 60% of mkt as fruity drinks rise, so 7-Up ought
to be hel ed but Coke' up & avv+^oa hin o-iin & P vs''
Sl~.ce f to o t
--LIVING W THE LIMITS OF AaARLBORO MAGIC, Fortune -18-~s PM's 35~
of cig mkt iggest share since Am~lob dominated 'n th-e-`74os ., .Miller's
al r ro its ave covere onS the nterestton the rou 1 1 billion
borrowed n Os ui reweries rumors on t t at PM wi
7- n& M~ller ., HMax is o.n._ s quie ~ s3t-spoken, tenac~.ously
protects his pr~va te' Li e, he wres ed CEO's job from "the boisterous
& aggressive former Miller CEO JMurph, named PM pres . while HMax celebrated
by buying a Maserati . . . HMax c~g,~,~ril].aant _H.nalvs'~ nos . ` a d
of toug ec s ons, is £ather~exan er n c arge o rationin tob
in UK during WWII/his .ear137.~iox Y~~es paring HQ corp staff by 13~,
putting industrial packag ng un3"t on sales block & written down Miller's
new unused plant//ENDURIN PARADOix .even as ci sales ta er off under
soei ressures ~y"
_oli Ro oy°^': ::~fo"new entriesin th"i'`s e er more~unpopu ar product mkt on
grouncTs of who would want to enter & spend necessary bucks to penetrate
a terminal-case mkt?//"THE MARLBORO COWBOY MAY BE THE GREATEST IMAGE
EVER CREATED" says Waggoner of Bear Stearns, now is 21 .5% of US mkt . . .
people who are willing to risk smkg say theyr want a real cig, £ull-flavored
onei astonishing 40% of smkrs under 24 go for Maribo ..~os (to be
continued . . .)
--CIGS LIGHT UP PM, BW 10-29-84iPM stock rising because PM can keep ~o
raising cig prices w/o hurting volumes hikes of 10~ in '84 a£tQ+~ 2% in ~
!83 ..,,a7.so costs are_do_wn & these factors matter more than declining or `3
Ipla
eaue -A
--I°M'S NEW MENTHOL W/RED PACKAGING, WSJ 3-7-85s using Marlboro colors ~
fio lavnnh R~n 3 n Mi nh .& Fl a a4-F.or ci~a-voar~ ~hnw nnnai~mor hnrwAnm w i~i 1 iw -~T
& reens PM h s onl . . _ - 1n.e t . .v . . . '
r oesn e '° 'aY! e'oressures are intensi . na 'k' * s g ./ 0N
! surprise ahead)s "What I Peei is that LIVING IS HAZARDOUS . Most of the
things you want to do are more hazardous than jus reathing . As time
goes by, smkg will be seen more in that context"/92 .°6 of PM profits from
tob . in '84 ., . -U narrowl in t
--G IRMAN STUDI D SEV . OPTIONS, NYT 9-3O-85s
.,bi~~,~~o~n in cash biggest merger outside the oil business . . .HMax
has met~io"~~C`~1"`'~"~h'"&ffough approach" as he makes first bi after
15 months as CF~., (and 3Oyrs w/PM) . . .PM had updated expanded its c g
product on acilities, adding factories in Europe, modernizing US units,
but that was 2 yrs ago & excess cash now had to be ut to k„