Philip Morris USA is the United States tobacco division of Altria Group, Inc.
Philip Morris USA brands include Marlboro, Virginia Slims, Benson &
Hedges, Merit, Parliament, Alpine, Basic, Cambridge, Bucks, Dave's,
Chesterfield, Collector's Choice, Commander, English Ovals, Lark, L&M, and
Players. On January 27, 2003, Philip Morris
Companies Inc. changed its name to Altria Group, Inc. Even under this new
name, Altria continues to own 100% of Philip Morris USA. Some view this name
change as an effort by Altria to deemphasize its historical association
with tobacco products. Philip Morris USA Inc. home offices and
facilities include headquarters, manufacturing, processing and support
facilities in the Richmond, Virginia area; sales offices crisscrossing the
U.S.; and an office in The Commonwealth of Puerto Rico.
History The company's namesake Philip Morris was
born in Whitechapel, United Kingdom in 1835, the son of a recent immigrant from
Germany who had taken the name Bernard Morris. In 1847, the family opened a
shop in London. The first cigarettes that Philip Morris made were in 1854.
In 1902, Philip Morris & Co., Ltd. was incorporated in New York City.
George J. Whelan bought the American division of the company in 1919 and
created Philip Morris & Company Ltd. along with fellow shareholders Reuben M.
Ellis and Leonard B. McKitterick. In 1929, the company made its first
cigarettes in Richmond, using an existing factory the company purchased.
In 1933, this factory was racially integrated more than thirty years before
the law required it. In 1938, the company offered preferred stock to
ordinary buyers. In 1924, Philip Morris began advertising
Marlboros specifically to women. The cigarettes had "new cork-tip filters
housed in a flip-top box with a red roof design."
In 1957, Joseph Cullman III takes over management of the company.
In 1960, George Weissman--credited for making Morris the leading exporter of
tobacco products in the U.S.--is named director of international operations.
In 1970, Philip Morris made the first of several acquisitions with the purchase
of Miller Brewing Company. In 1985, Philip Morris Cos. became a holding
company and the parent of Philip Morris Inc. and bought General Foods. The
acquisition of Kraft Foods came in 1988, after which Kraft and General Foods
became Kraft General Foods. In 1976, Marlboro becomes the leading
brand in the U.S.; Morris operates as the largest seller of tobacco in the
U.S. and the second largest in the world.
In 2001, Kraft Foods launched an IPO for 11.1% of the company that raked in $8.7
billion, making it the 2nd largest IPO in American history at the time.
In 2002, Miller Brewing and South African Breweries became SABMiller, the
second-largest maker of beer in the world, though Philip Morris kept an
interest in the merged company. In 2003, Philip Morris Cos. changed its
name to Altria Group Inc. In the fall of 2003, Philip Morris USA
moved its headquarters from New York City to Richmond, Virginia. On March 30,
2007, the remaining 88.9% stake in Kraft Foods was spun off to share holders.
Philip Morris International was split from Philip Morris USA in March 2008.
This has caused a drop in the needed cigarette production due to no need for
export product. Philip Morris shut down its Concord, North Carolina
manufacturing facility in 2010 and moved all domestic production to Richmond,
which now contains the largest Philip Morris plant in the world, producing 146
billion cigarettes in 2010. Legal Action
Philip Morris takes issue with the strict tobacco restrictions in place
within the nation of Uruguay, and is taking legal action against the country
claiming around $25 million USD in lost revenues opposing the rule demanding 80%
of cigarette packets be covered in health warnings, and restricting all
brands of cigarette to only be able to sell one variety. The nation has seen
tobacco sales drop 30% attributed to these relatively tough measures by the
Uruguayan government. Other similar complaints by Philip
Morris have been made against Norway and Australia.
These actions are unprecedented because tobacco companies are often the targets
of lawsuits, and not the instigators so how these complaints are decided may be
important in how governments try to curb smoking rates.
Swiss tobacco control advocates and alumni from the University of Geneva
revealed the secret ties of Ragnar Rylander, professor of environmental
health, to the tobacco industry. In a public statement made in 2001, Pascal
Diethelm and Jean-Charles Rielle accused Rylander of being "secretly employed by
Philip Morris" and qualified of "scientific fraud without precedent" the
concealment of his links with the tobacco industry for a period of 30
years, during which he publicly presented himself as an independent
scientist, while obeying orders given by Philip Morris executives and lawyers,
publishing articles and organizing symposia which denied or trivialized the
toxicity of secondhand smoke. After a long trial, which went up to the supreme
court of Switzerland, all accusations were found to be true. Following this
judgment, the University of Geneva prohibited its members from soliciting
research subsidies or direct or indirect consultancies with the tobacco industry.
See also Altria
Philip Morris International Marlboro
Tobacco industry Tobacco Master Settlement Agreement
Marlboro Friday Johnny Roventini
Racketeering Notes
References Altria Group, Inc. Our Initiatives &
Programs PhilipMorrisUSA.com. URL accessed on 28 November 2006.
Altria Group, Inc. Policies, Practices & Positions PhilipMorrisUSA.com. URL
accessed on 6 January 2006.