PM History/2 - Legacy Tobacco Documents Library

PM history/8
of war, geatly overestimatin g hithe to u s tisfied t r cusdemand,
decision to ackage in war aEes of no cellonhane or Foil so he
rew st e~F ~ves/had to exchange res1~ cigs for stale ~ ove- rstoc 1
Ah bizes
real PM is no Tn a-ao'"6
ecisio_ n e . .'t1i.~T wineed as
e 0re c oRer r r ~en e e et r ini~`ant uire s -orodigy had become
bi bus -- and managemen~~dy w success, was o usy to notice,
thus M7NTSmRAmTVE B F'AKDOWN . . .AL "damn fool in attem ti d ever -
thin~ . includin man tasks di know ~rthin a o t"'"'e *Ri
THE MZSTAKES ET start3ng bl s takin~-~c'e~ off allocations
be£ore planta had reconverted, ~2) acceptin~ Fantas$3ca1Z.v Trd~
~orde ~industrx knew iobbers were~ar~in~ vs . anticipa ed_O_PA inerease
n~ manuf ctu • riees~~~~ oorZ iaison bet . to . m g en an sales &
a in . in NYC . . .A~was of' two minds torn bet lone& close friendst~+i
. &_his own better ~}~gf
~w/dealer_s~at had proven so valuable to the co
ment_. 3 manazement's failure ~dv~.se un erwriters of e c drop
i.n Nov sales-earnings w c oi dicTn't disclose on SEC registration
statements this was admin . irresponsible . . . subscribers to issue
jettisoned it, but ehman was able to ace it ivatel w/Equitable Life//
HEIR APPARENTs O . PARKER MeCO geas mannere tt+tinkle~d__b_ut
toughminded banker~"'•tl , of impecca~-~i5_y, t~St background, .
rrince on,ia been vp at Bankers Trust, dealing w/commercial & foreign
depts, int oduced to L on b Lehman Bros in '4 , hired as exec vp in
'46//REMEDIAL ST s c osing aison holes bet . sales & mfg that
had le to • 5 overproduction + clarification o£ job responsibilities
from the top down + cutting 200 turnover of sales staff via be++ar
salaries & bene£itss lea ing to cut in s`Fa_3T'_handi3.ne 1/ 3 more
s ness w one- ir ewer ', ~gT e~s• buT'Te~,~inventory controls
+ FULL DISCLOSURE OF O . ~o rewin confidence of biz community
+ new promotional blood & Johnny now has four midget understudies +
most a essive adv in PM histor w/'•No C' er" campaign
'~BY DEFY NG THE FTC, WHI H HAS HAD VS . PM'S 'LESS IRRITATION'
THEME $IN 2 as FT argues via its own studies that nobody has ever
roroven one brand to be less irritating or otherwise dele erious '~o-Tne
human system than any other . . .qv ' PM back in stride under Lyon-MeComas
dynamic duo
--BENSON & HEDGES Fortune 5-59s See nice pic oF Joe III w/right hand
on his father s right s oulder in filial devotion . . .Parliaments account
for ca 8 of B&H inco e . . .earnings went up 67% previous yr as stock
price tops 100 at $6 .22 per share net/many remember it as specialty house
playing w/twenty-odd varieties of Turkish, Russian, Brit . gold-tipped,
monogrammed, magnolia-scented brands . . .JosCullman Jr denies suggestions
his co . is fixing to put on roomier britches . . .in its best vr_e3cer3t
made only 1/5 of 1_ ~ of US-consumed ci s . . .its t.n earr,9ngs o iv 600 .000,
e e t from the ab~ le or the biw, boys ISTORY : orig . Brit co . sold
out to Amer cans in M, a openeZ its - first retail shop at 288 Fifth
in •99, moved ead3lv uptown :Lo !F35 Fifth c9r o~ '3oth . DETAILS ON THE
VEDDY BRITISH TONE OF THE FLACE, m .R9 s mornin~ coats, uniformed messengers,
etc . . . .slow, s eawth tTia even epression coul n i, wealthy
carriage trade customers like theatrical promoter EFAlbee, who settled
his $12,000-15,000 bill each Dec 15 . . . _during first 15 Yr_s of 20th ent .,
fashion was for hand-rolled Turkish & Russian ci s+ Havana ci in the
45- range . . . in same ends Turkish
& American to brin ou-E~ ENTS w Elzropean-type mouthpiece, un peu
bizarree rst yr 00,000 cigs, ten yrs later sold 95 million at premium
price w/o adv . . .all of which attracts Jos Cullman, known in the trade as
Joe Junior, who bought control for $850,00 in name of Tobacco & Allied
Stocks, Inc .// out JOE'S~fD'1eA-r R-R~, who emigrated from Germany in
mid-19th cent. + his muc pub a.c ze younger bro . Howard, the theatrical
angel & Port of NY Authority . . .Joe always silent partner in theater deals,
the family also owns sev theaters, substantial holdings in two banks,
also grows & packs Conn tob for cigar wrappers//now 68 (born '82), became
B&H pres . in '43, sma11, informal outfit . . .retail shop, later closed 1p
avoid comvetine w/B&H distributors & dealers:~'ac orWa er °t. .HAD ~~
TO AIT TO EXPS~OIT PARLIAMENT eeause o1 war, hard to get cardboard for o`
its boxes, did B&H Va Rounds, all cigs sold like crazy so by '4~5 g_ross ~
is $5 9 million that same yr FTC makes B&H remove drawin s o3 aes ~
oF Parliament £rom box ~redraw B r~'TemazTT" o Less resem le Br . coat CN
of arms o . ropean-type mouthpiece & cotton filter & sold for about 01%
100 above standard pack price/KEY WAS SNOB APPEALe "Be Lady Astor for an ~
extra dime•'//the mild ble_nd helned, a ma .- nimum of_mo?stAn ;n 0aP-.+s x:
~lavorin~s, perceived as less damagin- ohealth than most other thrands//
Jos ullman Jr moves for wi3er ml"rt but by nat'1 adv, a.3n't scatter
his shots nor hire large sales force (only 11 men), cultivates high-income
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