PM History/2 - Legacy Tobacco Documents Library

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pm/27 --CAN A MKTG MAN MAKE IT MILLER TIME AGAIN?/BW 2-1-88s Miller's pres Wm Howell took early retirement at 57 as HMax says Miller's slow growth is "not a verformance we c .be satisfied with_" . . .Howell was Miller chie~~ 8 yrs & 32 w PM . . .new man 3.s heonard Goldstein, 60, sr vp-sales, to come up w/fresh ideas & strength ties to its 717 distributors/"EVERYTHING TECHNICALLY IS VERY GOOD AT MILLER -- EXCEPT FOR ADVERTISING & MKTG," sez Maxwell . . .irony since Miller revolutionized beer mktg . . .but after Lite rocketed to top, it grew only 1% in '87 while Bud jumped 35 & Bud Li ht rocketed 20 .6%/Lite needs a shot in the 1arm . . .High Life off 60 s nce u Genuine Draft is off to good start '& two lower-price brands, Miiwt6ikeetis,best & Meisterbrau, have helped// ' COORS & A-B ASSAULT GENUINE DRAFT AS A CROCK . . .A-B has nearly 4056 of the mkt but Miller spends 1f3,aaore
I I i PM hnm*oJ~y/28 --BEYOND MARLBORO COUNTRY, BW cover stor -- s PM net up 25% in •87 & 31% first half of '88 w 81 of that net from tob . "But beneath the profits & the public bravado, the worries are mounting as the drumbeats of bad news accelerate . .,PM had 7th largest ~rofit o£ v ~lic US~corp la~t r//to defend the cig us3-ness in ~ .ncreasingly hostile environmen~, PM is wielding every legal, PR, & mktg weapon in its considerable arsenal" . . .On 7-25 GF CEO Philin Smith left,._to take the top iob at Pillsburv/GF was eroaninE uncTer weieht of sti£lina bureaucracv that sev shakeups couVn't-dislodge . ., as vac a ed for yrs over how to manage a string of expensive acquisitions, sometimes imposing its ci know-how on vastly diff products, sometimes adopting hands-off policy~/Maxwell a chain-smoker w/lingering trace of English accent . . . he installe~d~~Smith in '86 to move at GF & overcome its "( verana~v HMax . has tried to get them to move more qu c ~y "on things that really have to be done" . . anticipating a $10 billion cash surplus over next 5 yrs, PM is scouting for another big acquisition/ Maxwell still shudders thinking about the 7-Up effort, trying to turn it into another Pepsi, applying massive fundings & big nat'l promo, declining to back local promos by local bottlers, was slow to introduce new products, held up Cherry 7 ;Fp, a hit under new owners//mkt share had drouned-to eTTow TLw from high o .•'IT WAS NOT A O TO MAKE althoug a e me certainly didn't oppose it . . .aggressive adv . & local promos, 7-Up is now thriving under new owners//GF has shown - t11th ua no ow x va tiiiti ac usonsor mos £tf oe decade thdu r Ln whic coa d after having reigne or some 15 yrs . ., misse many oppor n ties, altho it owned Birds Eye veggies, it miss frozen meat boom . . ."While Stouffers was out there estab ishing Lean uisine, F was screwing around w/Pop Rocks," a now defunct novelty candy that fizzed in kids' mouths/for more than a yr PM was a patient parent while Maxwell & Co . were learning the food industry + breathing rm . . .but now t~ie word has come down : ston rt'cot-dragging & start grow~g/ Max . says he pushe3-GF -co invest in an expensive new natural ecaffe3 .nation system because he didn't think Sanka was good enough . . .in Jan '86 Max . replaced longtime GF chairman James erguson, too much a deSegator & o£ten distracte-by outside interes s i e GOP work, with Phili S~i an intense exec who refocused att on packaged foods & sold oi'1' rgina~ operations like toys, seeds & Burger Chef chain . . .SYnith reorganized into 3 units & cut 2,000 jobs corp . & mfg. to save $75 million/each unit has its own CEO so Smith leapt at chance to run Pillsbury & Max . hasn't replaced him . . .GF volume moving ahead though probs w/Maxwell House/Oscar Ma e doin best of the trio . . .GF bought the Madison Wis cold-cuts producer in 181 s nce ts growth has been a compounded 20% a yr . . .doing good things w/turkey via Louis Rich Co ., e .g ., turkey pastrami, also surimi, imitation seafood + new products like Zappetites microwave snacks & Lunchables convenience meals . . .combining resources like Jell-O hooking into Oscar Mayer•s refrigerated distrbution system to launch ready-to-eat refrigerated desserts (Jell-O instant pudding took time to prepare) thus Pudding Snacks) . . . coffee biz a nagging weakness though acctg for1./_'i-Qf _GF r~s, US demand decS'in3ng a ou a yr (RKs 1 ke cigs , fierce com etition, dropping mkt share & profits . . . ILLER= mkt share has an u she at 2-22% while A-B is wa out ont ougTt~ii -powered mktg to e rowsy eer iz5,~ segmenting the mkt -tobacco-style w/Lite & then flashy adv campaigns . . .A-B beat M~i_ll a~t its own game, but dependence on Bud seen as potebt~.al soft spo-t . . .b311er tFirowing~i3'3~a'83's' innE0 t~Tie~mktplace & better ads . . . uFt can a£ford to be patient : PM sales_keev boomine, int'l revs up 25 .4% in '87 & net up 28.2 ut depen ence st there : cigs pro~uce~53r- of P1Yf's_'8?,_,yo7.,,but 81~,of, profits//~BACKGRO .?TND,ON H.9NJISH MAXWELL : His ~'g-~tEr ~ex: a~ £iY~st'g~ne'ration tob . ~.eaP~ea~er in`~on~on early in century . . .Cambridge grad . in history, Royal AF vet ., still wanted to aee the world so joined w/Thos Cook/married an Amer . & via £ather got salesman job in R'schmond w/PM . . .he helped get co . heavily into int'1 ~ in '60s -- PM•s First "and to some extent, most successful, diversifica- 111 tion," he says . . .in Aust alia from '68-• 4 laid foundation for PM's strong presence in Asia he pus e the cowboy image everywhere desp te %10 s ron" g resis ancicenseese "It was a great strategic move," says CN Weissman/"The co . is at a crossrds," says Geo Thompson of Prudential- -*-3 Bache Securities & what HMax . does in next couple of yrs will set the 4~- decade's patterns i M can e e a e si ific s011 J outside the tob . biz PERSONAL : not a flash , has soothing voice ~ ~syo es Mar oros but tri.es competitors when no one 3.s oo ng . . .a ~ term thinker w eve for detail- . .PM•s art patronatrea ca . $13 million -' in '87 from Amer can Crafts Museum to an ce Theater of Harlem http://legacy.library.ucsf.edu/tid/fmw44c00/pdf
Page 1 and 2: PHILIP MORRIS HISTORY VIA CLIPS & D
Page 3 and 4: PM history/3 OVERALL PM SALES DROPP
Page 5 and 6: PM history/5 "Come to where the fla
Page 7 and 8: PBfI history/6A --INFLUENCE OF HYGR
Page 9 and 10: PM history/8 of war, geatly overest
Page 11 and 12: PM history/10 I Camel to PM) . . .b
Page 13 and 14: PM history/12 --CIG EXPORTS RISE SH
Page 15 and 16: I PM history/13 --MORE THAN SMOKE,
Page 17 and 18: PM history/15 INVESTORS HAVE GRABBE
Page 19 and 20: 15 INSERT (cont .) of chemical comp
Page 21 and 22: I PM history/17 ' had to build mktg
Page 23 and 24: PM history/18 INSERi LETTER FROM PM
Page 25 and 26: I A>, I PM-history/20 for the passi
Page 27 and 28: PM history/22 --WHITNEY AT PHILIP M
Page 29 and 30: pm/z4 tl- ' remaining dependent on
Page 31: pm/26 PM tries to sell at upper end
Page 35 and 36: PM history/30 pr9.ce . . .twice a y
Page 37 and 38: I PM history/32 in '30 Ellis & MeKi
Page 39 and 40: PM history/}4 --POTPOURRI FROM "THE
Page 41 and 42: PM history/36 --PM, EEOC SETTLE CIV
Page 43 and 44: PM history/38 PM OFFICIAL LINEz we
Page 45 and 46: PM history/40 Wal1 St thinks PM PAI
Page 47 and 48: PM history/4-1 chooses, but key pt
Page 49 and 50: PM history/42A , --NYT CASE STUDY f
Page 51 and 52: PM history/43 I --KRAFT SOLD TO PM
Page 53 and 54: PM history 44 INSERT ' --FORBES JAN
Page 55 and 56: PM history/46 --PM, MOVING SWIFThY,
Page 57 and 58: PM history/48 --CLASSIC PM & INDUST
Page 59 and 60: PM history/50 million 2 c ai b O1 i
Page 61 and 62: I I r PM history/52 -OPPONENTS AIM
Page 63 and 64: I I PM history/54 ~ Cote d'Or~rom_u
Page 65 and 66: PM history/56 in '87-'89 crisis . .
Page 67 and 68: PM history/58 co . that looked like
Page 69 and 70: PM history/60 his office figured ou
Page 71 and 72: PM history/62 I of '88 was launchin
Page 73 and 74: PM history/64 ' cern by #1 food co

PM History/2 - Legacy Tobacco Documents Library

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