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W. Leo Kiely III Elected to Altria's Board of Directors 

The Board of Directors of Altria Group, Inc. (Altria) (NYSE:MO) today announced the election of W. Leo Kiely III to the Board of Directors. With the addition of Mr. Kiely, the Altria board increases from nine to ten directors.

Mr. Kiely retired as chief executive officer of MillerCoors LLC, a joint venture combining the U.S. and Puerto Rico operations of SABMiller plc and Molson Coors Brewing Company, in July 2011. He served as president and chief executive officer of Molson Coors Brewing Company from 2005 to 2009. From 1993 to 2005, Mr. Kiely held a variety of executive positions at Coors Brewing Company including chief executive officer.

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Can the government's 'responsibility deal' work? 

With the backing of around 150 companies, this week the government unveiled its 'responsibility deal' on public health in England.

It's a series of voluntary pledges by industry designed to tackle big health issues like alcohol abuse and obesity.

But while companies such as the major supermarket chains, big drinks producers and high street food outlets have all signed up, many health groups have walked away from the scheme.

They include Alcohol Concern, the British Medical Association and the Royal College of Physicians, and they argued the pledges were not specific or measurable enough, and that industry had been dictating policy.

Their rejection of the deal raises the wider question - can voluntary agreements with industry really address the huge health problems associated with alcohol abuse and obesity? . . .

Professor Anna Gilmore, a public health expert from Bath University, says there is a fundamental conflict of interest that has been ignored.

"These large corporations, whether they sell tobacco, food or alcohol, are legally obliged to maximise shareholder returns. They therefore have to oppose any policies that could reduce sales and profitability - in other words, the most effective policies." . . .

"There's no evidence that voluntary approaches work. Look at what happened with the tobacco industry.

"The internal records of the tobacco companies became available when they were sued. They show the companies pushed voluntary approaches specifically in order to avoid binding legislation. Yet independent evaluations show that these voluntary approaches were ineffective."

But once legislation on smoking was introduced - from warnings on cigarette packets to bans on smoking in enclosed public places - along with tough tobacco tax policies, the number of smokers fell sharply.

Borrowed tactics

Professor Gilmore says that to sell products and to influence policy makers, the food and drinks industries share many of the tactics used by the tobacco companies before them. . . .

The drinks company SABMiller is one such partner who has signed up to measures that include a general pledge to "foster a culture of responsible drinking".

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Altria Presents at the Consumer Analyst Group of New York Conference 

Altria Group, Inc. (Altria) (NYSE: MO) is participating in the Consumer Analyst Group of New York (CAGNY) conference in Boca Raton, Florida today. The presentation will be webcast live at www.altria.com in a listen-only mode, beginning at approximately 9:15 a.m. Eastern Time.

During the presentation, Mr. Michael E. Szymanczyk, Altria's Chairman and Chief Executive Officer, and Mr. David R. Beran, Altria's Executive Vice President and Chief Financial Officer will discuss Altria's 2009 performance and its 2010 plan to deliver strong returns to Altria's shareholders. "Altria is a compelling investment when measured against other domestic consumer product goods companies," Mr. Szymanczyk said. "Altria offers a unique combination of a high dividend yield with strong earnings growth prospects, which is supported by Altria's solid business model. The tobacco space continues to grow profits, and Altria's tobacco operating companies have leading positions in all the major tobacco categories, with ample opportunities for growth." . . .

Altria's subsidiaries continue to be subject to litigation, including risks associated with adverse jury and judicial determinations, courts reaching conclusions at variance with the companies' understanding of applicable law and bonding requirements in the limited number of jurisdictions that do not limit the dollar amount of appeal bonds.

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UPDATE 1-Altria to keep wine business, SABMIller stake | Reuters 

Tobacco company Altria Group Inc (MO.N) will be staying in the alcoholic beverage business for the foreseeable future.

Top executives with the company, known more for its Marlboro cigarettes and Skoal smokeless tobacco, explained on Thursday why it makes sense to keep its 27.3 percent stake in brewer SABMiller (SAB.L).

It also said it planned to keep the Ste. Michelle Wine Estates business it acquired last year as part of its deal to buy smokeless tobacco maker UST Inc.

Some analysts have pushed Altria to sell of its SABMIller stake, since it is not part of the company's core tobacco business.

But CEO Michael Szymanczyk and CFO Dave Beran said that it made sense to keep the business because it is a strong asset to have on the balance sheet -- helping reduce Altria's borrowing costs -- and it also contributes to earnings.

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UPDATE 2-Altria sees plan for alcohol assets by year end  

Tobacco company Altria Group Inc (MO.N) on Wednesday said it hopes to have a strategy in place for $8 billion in alcohol assets by the end of the year, and stuck by its 2009 profit forecast.

The company is looking at what to do with a wine business it bought along with smokeless tobacco maker UST Inc, as well as its stake in SABMiller Plc (SAB.L). Altria acquired the Ste. Michelle Wine Estates business when it bought UST in January.

The purpose of the acquisition was to get UST's smokeless tobacco brands like Copenhagen and Skoal to expand in that segment, which is growing while the U.S. cigarette market continues to shrink.

With the wine business, along with its 28.6 percent stake in SABMiller, Altria has about $8 billion in alcohol assets that it has to develop a strategy for, Altria CEO Michael Szymanczyk said on Wednesday.

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BRIEF OF AMERICAN MEDICAL ASSOCIATION, AMERICAN CANCER SOCIETY, INC., CAMPAIGN FOR TOBACCO-FREE KIDS, AMERICAN HEART ASSOCIATION, AMERICAN LUNG ASSOCIATION, AMERICAN PUBLIC HEALTH ASSOCIATION,  

In conclusion, there is now a consensus among governments and public health leadersworld-wide. No government authorized Philip Morris’ “lights” fraud, but now people both in Maine and throughout the rest of the world are living with the consequences of that fraud and deception.

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Altria’s former CEO weighs in on UST - Postcards 

Remember Geoff Bible, the swashbuckling Aussie who led Philip Morris until 2002? I ran into him at the U.S. Open just as rumors were flying that Altria (MO), as the the tobacco giant is now known, was about to buy UST.

Now Altria has announced its $10.3 billion deal to acquire UST, the smokeless tobacco leader that markets Copenhagen and Skoal. And Bible, who is still an Altria shareholder, offers his take: "In principle, UST is a savvy deal, especially given the slowing U.S. cigarette market. I'm too removed from the businesses these days to talk about price, but they are clever managers. They do not do dumb things, do their homework thoroughly, and have a great balance sheet. They ought be able to wring out very good revenue and overhead synergies."

Actually, the U.S. cigarette business is more than slow. It's declining-at an accelerating rate, say analysts. Actually, the U.S. cigarette business is more than slow. It's declining-at an accelerating rate, say analysts. Perhaps this is because diehards are kicking the habit? Newsflash: Bible, for one, finally quit. . . .

"I'm old," Bible told me, suggesting that it's time. He's 71, still feisty, and he appears quite fit.

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Newsworthy Trends: Handi-Hut Announces Sale of 20,000th Smoking Shelter  

Handi-Hut Inc. http://www.handi-hut.com announced the sale of their 20,000th Smoking Shelter to Miller Brewing Company, to be utilized by Miller employees at their corporate offices.

Mel Cohen, CEO of Handi-Hut, stated, "We are pleased that Miller Brewing sees the benefits of smoking shelters. This is a win-win solution for all: smokers' rights and workers' rights. ... Non-smokers are protected from second hand smoke. Many employers and business owners find that accommodating both the smoker and non-smoker is more than just fair, it's good business. Workplaces that don't offer a designated smoking area have reported a substantial loss of productivity. Their entranceways are often crowded with smokers and are littered with cigarette butts."

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Anheuser-Busch ceases alcoholic energy drink sales; Miller doesn't follow suit  

Anheuser-Busch Cos. Inc. said Thursday it agreed to stop selling its caffeinated alcoholic drinks after allegations that the products were being illegally marketed to underage people, but Miller Brewing Co. has yet to announce a similar move.

Miller Brewing, which is included in the same investigation, issued a statement saying that it has and continues to cooperate with investigators. Miller sells the Sparks and SparksPlus alcoholic energy drinks.

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• How big UK groups paid no corporation tax in 2007 

Some of Britain’s biggest listed companies, including several that have threatened to redomicile abroad, paid little or no corporation tax in Britain in 2007.

Research by The Times shows that FTSE-100 companies – Cadbury, Standard Chartered and British American Tobacco, which have a combined market capitalisation of £75 billion, employed almost 11,000 UK staff and generated more than £6 billion in global profits, – paid zero corporation tax in Britain last year.

Although there is no suggestion of impropriety, the research indicates that some of Britain’s biggest and best-known companies contribute startlingly little to the Exchequer in corporation tax. Most of the companies earn the bulk of their profits overseas, meaning that they also pay most or all of their taxes outside the UK, allowing them to offset these against domestic tax liabilities. In some cases, this allows them to pay no British corporation tax at all. . . .

A spokeswoman for BAT, the twelfth-biggest company in the UK by market value and the owner of the cigarette brands Lucky Strike and Pall Mall, said that its head office operated at a loss and that 99 per cent of its profits were earned overseas. She said that the company welcomed the Treasury’s decision to examine the UK’s tax laws.

A spokesman for SABMiller, the brewing group, which paid less than £100,000 in corporation tax in Britain last year, said: “We have a very small commercial operation in the UK that employs about 70 people and is only a developing business. All other profits are taxed at source.”

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UPDATE 2-Altria units set post-spinoff long-term targets  

Philip Morris International expects earnings per share to rise 10 percent to 12 percent annually in the long-term after the cigarette company gets spun off from Altria Group Inc later this month, it said on Tuesday.

At the same time, Altria said its remaining businesses -- Marlboro cigarette maker Philip Morris USA and a 28.6 percent stake in beer maker SABMiller PLC -- should post long-term annual earnings per share growth of 8 percent to 10 percent.

The forecasts came in a news release ahead of an analysts' meeting to lay out plans for the companies after the March 28 spinoff of Philip Morris International.

The remaining Altria business should provide annual shareholder returns of more than 12 percent, including its dividend, the company said.

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SABMiller And Molson Coors to Combine U.S. Operations 

Brewers SABMiller <SAB.L> and Molson Coors Brewing <TAP.N> have agreed to combine their U.S. operations to create a business that will have annual sales of $6.6 billion and be the second-biggest market player behind Anheuser-Busch <BUD.N>.

The venture, MillerCoors, will generate around $500 million of annual cost savings by the third year after completion of the deal, which is subject to the approval of the U.S. competition authorities, the two groups said on Tuesday.

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Britain's smoking ban sends brewers east as western markets go flat 

Smoking bans are likely to accelerate the shift already under way. S&N estimates that the ban in England that begins on Sunday will hit beer sales in pubs and bars by 5% and cut operating profits by £10m in the next six months. Smoking bans in Ireland and Scotland have knocked beer sales by up to 7%, and England will not fare any better, reckons Mark Hastings at the Beer and Pub Association.

Market researchers predict that more than a third of the global beer consumption will move to Russia and China.

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Wis. man says beer choice cost him job 

A man may have found out firsthand just how nasty the competition is between the world's two biggest beermakers.

Isac Aguero, 24, said he was fired from his job with a Miller Brewing distributor, the same day a picture appeared in The Journal Times of Racine of him drinking a Bud Light, which is brewed by Anheuser-Busch Co.

The photo, taken Feb. 5, was part of the newspaper's weekly "On the Town" feature, which depicts the city's night life. . . .

"It was a Saturday and I wasn't at work," he told The Journal Times. "They can't tell me what beverages I can drink.

"Bud Light's my beer of choice, I always drink that. Just because I work there, do I have to change what I drink?"

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A Breakup's Value 

INVESTORS IN ALTRIA GROUP GOT GOOD NEWS Thursday when the tobacco giant, parent of Philip Morris, said it likely will split itself into two or three parts once its legal problems recede.

Wall Street cheered the unexpected announcement. Altria's shares rose 5 points to 54 last week, and in a breakup, its pieces could be worth over $70 a share.

At a Morgan Stanley consumer conference in New York, Altria Chief Executive Louis Camilleri called the company's tobacco business "significantly undervalued"

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