PM History/2 - Legacy Tobacco Documents Library

PM history/63
~OPERATTONS WAS CA 1-i'(>'7 IN '90//scope & geographic spread of future PM
acquisitions now seen as very fluid, but best bet is more in way of the
Jacobs-Suchard deal
--PM TRIES TO BREW INTEP .EST IN LIGHTER RECIPE, WSJ 4'-1L1--91 : Miller
is trying LITE ULTRA in tests aimed at younger crowds & more fast-paced
ssenes in Burnett commercials . . . Coors Light & Bud Light stealing Lite's
mkt share but posting much bigger gains -- 12 .4 and 9•4% respectively
vs . Lite's 1% in '90 growth//not at all lighter beers can sustain taste
& command mkt, see failure of A-B's L .A ., brand (Low Alcohol)
--add MARLBORO MIEnTTrn2 INTRO, WSJ story 5-3-91 e Risky effort to get
Marlboro F4an ra.d~.ng ts.l1 in The saddle again, biggest brand is at di£ficult
juncture & PM needs to get it volume any way it can• . .some feel this
is a fuzzy hybrid/Marlboro d clined_2 . o fro ' ' ~ .here intent
TO STE~ ;_~L Sh=S MYI YE _ .b .same pac `'ezcent for added white
ord " .`:big d"eTiate ainoxSg mYztg `rand-name speciZis s,~fear that P,Sedium
conjures un notion of but others see it as BLAND, ABSTRACT &
INNOCUOUS, "thereby suggesting you can get fuller flavor occasionally
w/o substantial health risk . . .this also a way TO MEET AMBITIOUS UNIT
VOLUME TARGET3 PM's management sets/June the perfect time to get it into
distribution channel//PM also readying Commander as new budget entry//
Advo Institute ACTION ALERT 7-1-91 re MARL . PSEDIUPrI & CANIEL 99s : Mediums
' more clearly resemble the full-strength version than Marl Lights, package
' closer & cork-tip instead of white . . .~4~ million ad.-.pr.pmo. .~}~,ro/Camel 99s :
effort to improve co .'s 28% share of s, h e slogan i.s "long
on smooth" & its emphasis on length aims at stressing slimness as is
common for brands targeting women . . .evi.dence says this may just b
r_eoackaged DAKOTA, the brand introduced in April ~Jd~go s ugged ; young
female m'Tt is ~~ie only growing sector of US cig mkt
--PM 7S3 HOT ~N FASTERN GERP~tEiNY, Preserving Local Smokes' Bad Old Features
purb"- sales, WSJ 2-12-92 : Pang dir of PT+7's German subsidiary explains
overwhelmin sucp~sS ,by_, PIvl, i?'b _eastern . .:G;~rElaany, 'We hammered into
the peop?e°ttiaa"~the.V a good prct here hat ; r,' need to be
chan~ed" . . .so PM bougFi a crum ing factory in Dresden, while competitors
Ks were revamping EGerman brands to make them taste more like milder Amer .
blends, &~_SEPT TURNING :DUT S TRONG-TASTSNG~-i2GH-TAR CIGS w/few changes
~ g includin py packaging the sTaying frum in place ~'- -- a ris y move but it
worked ; `ts h r h-tastin o brand F-6 is #1 w/45% of the re ional
onsumers in EGermany still accus ome o s ron ~ - avored .
;~.~, " and they're not going to give it up overnig`e °'"lair`is` Iia.~iS'~'1uri,
using the industry's code wds for high T/Ns PM rints he
warnin~s~on t~he nacka~es somethinv that hadn't anvea_re
+~- nmm,n,iG,n/
l
EGerman-bran3s seh for about 15'.~~ less than Western brands & _ consumers
realized flirting w/latter was costin ~- 1oca1 iobs . . .~ Q , ~E .~G RllJ4 ~r ,Y
ARE CAUGH~ IN_Ar,TZP~„W1} .R~;L as rest of industrial world moves ~ w*a'r~~Tower
`Fj'TYs wi-E)i f'lavorin~"added/THE DRESDEN FACTORY dates back in part to 1900
& has stained- lass windows & iron s .'¢air.,,X+ai1ln .: PM HAS , + N
(11G IJIKY""d'8' h- acce erata .on was cost-effect` time
& money no needing to be expended for new mac inery & other costly
changes in mfg, but roduction S over ' O/
M will have to lo s in keeping with EC rules requiring it by beginning
of 93 u will be done radual .y//any doubts PM had about its
strategy were wiped away b_ ~R~EE~Y ""{C,`R~, which bought Cabinet,
EGermany's top-selling brT~utoo name onl"y, switched production to
WGerman site & the blend to conform to Western standards ; SALES PLU141P+lETED
as co . appears to have badly misjudged EGerman tastes . . .so PD'f exploits
the debacle to push its brand harder w/ slogan "F-6 : THg,,,T.(,&RE I~~
, --E .C . PARLIAI~YENT APPROVES TOB . ADV BAN, WSJ 2-12t9~ : OKS~Y~~~"a.d
f ban including sports sponsorships by 150-123 vote to carry further the
TV ad ban that went into effect in '91/industry lobbyists denounce it
as a major assault on free speech (the Confederation of European Community
Cig Mfrs is trade group) . .,but not oug bindin on rulemakin Council f Min-
'sters t i s ecision can , e amended by ~ the
par iamentary body ~
--PM REVAMPING S75 FOOD UNIT, PdYT 11-28-91s road restructuri of v
food o~oer tionS n„o„n~Pa RTTm NO nFmn'rrS-g i .. =n, wl result in mil- ~
lion after-tax charge vs . 4th qtr earnings + ;;1 billion charge on re- p~
quired accrual for postretirement benefits of employees . . .KGF says it ~
will discontinue some busineas lines & consolidate its mfg nlan s& dis- N
triT~ution centers . . .analysts cite weakening food mkt . . .Goldman, Sachs p
analyst commends KGF for taking bull by the horns (to cut costs if you
can't raise prices) . . .a1so announcing,~2 billion STOCK REPURCHASE PROGRAM ;
the KGF moves to improve efficiency & yie1T$`'f$ mill ion savings over
next 5yrs . . ."AN EXTRAORDINAR2LY COMPETITIVE MKTPLACE RIGHT NOW" sez co .
spokesman ; Pru e a.a analysta "I£ you can't raise yr prices, you have got
to lower yr costs" *#**#//[9SJ 11-29-91r move represents intensifying con-
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