PM History/2 - Legacy Tobacco Documents Library

PM history/ 6
"NOW only fifteen cents" conce at new blend is uite dif . from
01 , co . s INTAIN T , is a big break
for reta ers in v ew of the Big Four's "TYRANNICAL DOMINATION OF THE
RETAIL END OF THE TRADE," t111 . . .In old da,,,va t7,e co .s needed the distributors
to sell wide range of products s ni ce no single brand was strong
enough to support massive adv, campaigns of latter day, so there were many
r ,
secret discounts, bonuses, free-goods deals, wide margins all became commons
i was en possible for the tobacconist to_PUSH ONE BRAND OvfiR
ANOTHER, thus possible or him to ma e a ecent living on the extra margins
he ex-Er-acted . . . Co .s thus showed genuine interest in helping dealers maintain
prices vs . cost-cutters, price-slashers, undercutting outlets like
, the Liggett chain . . .BUTs uge 'um in consumtion + vast adv outla s since
arlic _' 20s "reduced = Pm A*+*+ rer s s0 cltude - fOT the distr r' as
Big 3 among em were oing some 90 of the cig u ese titans
develo ed `?a ..su mri.sin wunanin their nrices to dealers" & indifference
o tht e prices acompeting dealers forced each other to sell at,
111 . . .thus Big 4 seemed to have formed monolithic opposition to all fo=i8
( th co e~~3 150 s em cigTJDETAILBOF exce t e ~-DISCOUNT
PHILIP MORRIS OFFERED as a resu , as A&P began selling cigs as loss
leaders very tough to boost retailing margins or even to sell cigs at a
r profit//the Bie Four "AST~.NISHED THE TRADE.BY ABRUPTLY RAISING THEIR
PRICES TOGETHER" desp3te Palling ~eaf prices in June '31/acc ions of
collusion ^ow as prices fluctuate togethers perversion of the trus e
pr ncip e of low prices & large volume t where co .s were gettin their
distribut+nn v ;ri-nally ee#+-u#~x'~c'#t112/McKitter c re se
rice-cu outlets his mar in amount
double Bi as al
he retail old Rube" & MeKitter
Was
o0 o1d Mac" LYO s embodiment of,•thedvelve - ove s es -
n~a.g~ue, 2 th s price maintenance has made PM a favor te w ndependent
retailers, preferential treatment in counter & window displays . . .but even
I if the seller's margin was over a penny more than for Camels, per pack,
not worth the s ecial treatme if the ci • ' ove .the
jo ers oo mi on in Feb, up to 2 million in May, O million in
July -- and it was off & running~-~##*tL114 . . .RICHMOND PLANT MODERNIZED,
though not a big one & running only 8 hrs a day/smart moves bv 'Pne ieaf
j~uver HatcYcer when leaf prices were v ruinousl lowTl'P I BIG G ENl)Bs 4 BL
55 5 a br~gh o ar ,'2j Ky burley, 357.Purkish &~j as -brning
leaf . . .various additives & casings cited, tR114, aromas adding to smell
as well as taste of eigs//PM'S D~FF . HYGROSCOPIC AGENTs McK heard about
diethylene glycol, "one of t e hi~gher mem e'~s of -tTF~amily of alcohols,
said to be more effective than its distant relative, glycerin, used as
moistener/gets his new chemist Richard Cone to try it out at the PM
~ Richmond plant, who told boss not only was it better as humidifier but
t also "chemiealk ~.a;•in a~ ab ~~e~.of givin o mb ' an irri.tant kn
as ACROL . .so swi c ma e or 1 PM ci s MeK hires f rm of chem sts
to tes Cone s repor & • ra io commercials w commendin
sm s to " la safe w & avoid all c a ce e .t en c
prevails on Dr ic ael Mulinas of Columbia's dept of pharmacology to
devise tests on irritant properties of his cigs w/PM paying all his expenses
penses & Dr M free to publish results, good or bad, DETAILS HERE A MUST_
tL116'~##*##->