This document traces the history of Philip Morris from its founding in London in 1854 to its evolution into Altria Group, Inc. It discusses key events such as Philip Morris expanding to the US in 1902, the introduction of popular cigarette brands like Marlboro and Parliament, mergers with companies like Benson & Hedges, and the spin off of Philip Morris International in 2008. The summary also outlines Altria's current business as the leading tobacco company in the US, with brands such as Marlboro, Copenhagen, and Black & Mild. It notes Altria's focus on financially disciplined businesses and responsibly satisfying adult consumers.
2. 1854- Philip Morris Esq., makes his first cigarette
in London.
1870- 22 New Bond St., London Headquarters
begins to produce Philip Morris’ Cambridge and
Oxford Blues products.
1873- 13 Bond St. Richard Benson and William
Hedges opens shop- their first main competitor.
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3. 1887- Company becomes Philip Morris & Co., Ltd.
1899- Benson and Hedges opens branch in New
York.
1902- Philip Morris Co., Ltd. Is incorporated in
New York.
1920- First Philip Morris Annual Report is
published.
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4. 1924-Unfiltered Marlboro and Stephano cigarettes
are introduced.
1926- A series of Marlboro ads showing feminine
hand promotes that cigarette for women.
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5. 1928- Philip Morris begins to make regular
dividend payments.
April 17th
, 1933- “Little Johnny” is introduced on
NBC’s radio station for the first time.
1933- Philip Morris makes the manufacturing
centered in Richmond, VA.
1938- First offering of Philip Morris preferred stock
is placed on market.
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6. 1954- Benson and Hedges Merges with Philip
Morris.
◦ Marlboro is repackaged and test-marketed as a full
flavored man’s cigarette.
1964- Surgeon General’s Report on smoking and
health is issued.
January 1966- Federal Cigarette Labeling Act
goes into effect.
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7. January 2nd
, 1971- Cigarette TV and radio
advertising ban goes into effect.
January 1972- Cigarette manufacturers are
required to include health risks on all advertising,
direct mail, and point-of-sale material.
1985- Philip Morris is incorporated, becomes a
publicly-held holding company and parent of Philip
Morris Inc. and acquires General Foods.
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8. 1988- Philip Morris acquires Kraft.
1989- Kraft and General Foods combine to form
Kraft General Foods.
2003- Philip Morris changes its name to Altria
Group, Inc.
2007- Altria Group, Inc. spins off Kraft to
shareholders and acquires John Middleton.
2008- Altria relocates its headquarters to
Richmond, Va. and spins off Philip Morris
International.
2009- Altria acquires U.S.T. Inc.
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9. Altria Group, Inc. competes within the alcohol and
tobacco industry.
Main competitors are Reynolds American, Lorillard
and Swisher International.
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15. Altria Group Distribution Company’s role is to
provide sales, distribution, and consumer
engagement services for Altria’s tobacco
operating companies.
◦ AGDC Customer and Marketing Services designs and creates trade
marketing and consumer engagement programs to grow Altria’s tobacco
companies businesses.
◦ AGDC Field Sales sells and executes trade programs to grow Altria’s
tobacco companies businesses and their customers’ businesses.
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16. “Our mission is to own and develop
financially disciplined businesses
that are leaders in responsibly
providing adult tobacco and wine
consumers with superior branded
products.”
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17. Invest in Leadership
Align with Society
Satisfy Adult Consumers
Create Substantial Value for Shareholders
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18. Integrity, Trust and Respect
Passion to Succeed
Executing with Quality
Driving Creativity Into Everything We Do
Sharing with Others
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19. This year, FORTUNE magazine ranked Altria 4th
among all companies and 1st
in the tobacco
industry in social responsibility.
Altria Companies Employee Community Fund has
awarded over 1,300 grants totaling over $35
million to community organizations.
Altria’s employee’s actively participate with
building homes for Habitat for Humanity and
battered women.
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20. Altria is involved in the “Keeping America
Beautiful” act since 2002 by designing the
“Nationwide Cigarette Litter Prevention” program.
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21. Ticker Symbol: MO
Current Stock Price as of Friday, November 2nd
:
$31.70
Current dividend: $1.76 per share (5.6% yield)
Chart: 10 year period of stock prices:
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22. Annual Sales Figures: $23.8 billion as of
December 2011.
◦ This is a decrease of 2.3% from 2010
Growth: Altria’s adjusted diluted earnings per
share increased by 7.9% from 2010
Developments:
◦ 2011 Altria total shareholder return was 26.9%
◦ Repurchased $1.3 billion dollars of stock
◦ Increased dividends by 7.9%
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Strengths:
• Management’s Decision Making
• Top Premium Brands
• Steady Dividends
• Consistent Growth
• Cash Rich
Weaknesses:
• Negative perception
• High Taxes due to government
regulations
Opportunities:
• Alternative uses for tobacco
• Cost efficiency
Threats:
• Lawsuits/Litigation
• FDA Regulations
• Economic Pressure
• Generic Brands
• Increase of tobacco alternatives
24. I feel that within Altria, the premium brands will
continue to be maintained and also remain
profitable.
The company will continue to purchase
companies with growing premium brands.
They will continue to cooperate with government
regulatory agencies and society’s expectations.
Also, they will continue to provide excellent
shareholder returns.
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25. Eddie Riggins, Regional Sales Manager for Altria
Group Distribution Company
Altria Group Inc. 2011 Annual Report
http://www.sourcewatch.org/index.php?
title=History_of_Philip_Morris
http://www.altria.com/en/cms/home/default.aspx
http://www.bellhop.org/callforphillip.mp3
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