Philip Morris USA

Philip Morris USA.
Subsidiary
Industry
Headquarters United States
Area served
 United States
Parent Altria Group
Website www.philipmorrisusa.com

Philip Morris USA is the United States tobacco division of Altria Group.

History

Creation

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 and were known as "Philip Morris English Ovals," a non-filter brand of oval-shaped cigarettes that are still manufactured today in very limited quantities.[1]

Philip Morris

Philip Morris (1835–1873) was a British tobacconist and cigarette importer whose name was later used for Philip Morris Inc. Ltd. established in New York City in 1902.

Early years

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.[2]

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 30 years before the law required it. In 1938, the company offered preferred stock to ordinary buyers.[3]

Philip Morris advertisement

An advertisement displaying a Philip Morris brand of cigarettes.

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."[4]

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.[4]

In the 1970s, in response to smokers’ health concerns, Philip Morris introduced the “Light” cigarette - which was later found to be no safer than any others.[5]

In 1976, Marlboro became the leading brand in the U.S.; Morris operated as the largest seller of tobacco in the U.S. and the second-largest in the world.

In 2001, Kraft Foods launched an initial public offering (IPO) for 11.1% of the company that took in $8.7 billion, making it the second-largest IPO in American history at the time.[6]

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.

Altria

On January 27, 2003, Philip Morris Companies Inc. changed its name to Altria Group, Inc.[7] Even under this new name, Altria continues to own 100% of Philip Morris USA (abbreviated PM USA). Some view this name change as an effort by Altria to de-emphasize its historical association with tobacco products.

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 shareholders.[8] 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.[9]

In 2009, Philip Morris dropped the use of “Light” after many felt the word misrepresented the products as a healthier cigarette.[10]

Brands

Philip Morris USA brands include Marlboro, Virginia Slims, Benson & Hedges, Merit, Parliament, Alpine, Basic, Cambridge, Bucks, Dave's, Chesterfield, Collector's Choice, Commander, Lark, L&M, Players, Greensmoke, and MarkTen.

See also

References

  1. ↑ "Our History – Altria: 1800–1900". altria.com. Retrieved 2010-09-16.
  2. ↑ Martin, Jonathan; Shelton, Pamela L. "Philip Morris Companies Inc" (PDF). Industry Documents Digital Library. University of California, San Francisco. Retrieved July 24, 2015.
  3. ↑ "Our History – Altria: 1900–1950". altria.com. Retrieved 2010-09-16.
  4. 1 2 "Our History – Altria: 1951–2000". altria.com. Retrieved 2010-09-16.
  5. ↑ ""Light" Cigarettes and Cancer Risk". National Cancer Institute. Retrieved 2016-05-20.
  6. ↑ "The 11 Largest Ipos In U.S. History". Time. 2012-02-02.
  7. ↑ "Our History – Altria: 2001–Present". altria.com. Retrieved 2010-09-16.
  8. ↑ http://investor.altria.com/phoenix.zhtml?c=80855&p=irol-faq_kraft_tkd
  9. ↑ "The Shameful Past" (PDF). tobaccocontrol.bmj.com. Retrieved 2013-12-09.
  10. ↑ "Cigarette Companies Sidestep 'Light' Ban With Colored Packaging: 'A Long History Of Deception'=International Business Times". Retrieved 2016-05-20.
  11. ↑ "CNN.com - Judge finds tobacco racketeering - Aug 17, 2006". CNN.
  12. ↑ Bartz, Diane (2011-06-01). "U.S. judge declines to shut tobacco racketeering case". Reuters.
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