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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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A series of letters that Altria submitted to the F.D.A. as part of that process argues that the government should, effectively, sign off on the notion that smokeless tobacco products are less harmful than cigarettes — and that Altria and other companies should be allowed to market them as such to consumers.
It is a pivotal and divisive claim. While public health doctors agree that the smokeless products are far less hazardous to individuals than cigarettes, they still have concerns because all tobacco products contain nicotine and carcinogens. They also contend that promoting smokeless products — some in tiny packages in the shape of cigarette packs — would attract new, perhaps younger customers and maintain the addiction for smokers who might otherwise quit. They note that Altria is adding flavorings to its smokeless products that have long been used in candy.
Furthermore, critics say, Altria’s suggestion to the F.D.A. that it be allowed to market its products as less risky is part of an effort to dodge indoor-smoking laws (which are credited with encouraging more smokers to quit) and to encourage smokers to use oral tobacco products as supplements. . . .
While manufacturers are required by the new law to drop words like “light,” low” and “mild” from their labels by this summer, the companies may still be able to use pale blue, green or silver packaging, which critics say signifies the same thing to consumers.
“They’re taking the F.D.A. debate and making it on smokeless rather than ‘light’ cigarettes, which is where the real harm is,” says Gregory N. Connolly, a professor at the Harvard School of Public Health who was head of tobacco control for Massachusetts. “It’s brilliant, in a way.” . . .
EARLY this month, Mr. Connolly, the Harvard public health professor who is also a dentist and an adviser to the World Health Organization, fired off an e-mail message to 48 leading scientists, doctors and other people who have long tracked the tobacco debate, to alert them to the letters Altria had filed with the F.D.A. The letters have fueled a firestorm over Altria’s position on “reduced-harm products.” . . .
On the other side of the debate are people like Dr. Joel L. Nitzkin, chairman of a tobacco control task force of the American Association of Public Health Physicians and a consultant in New Orleans. Dr. Nitzkin, who supports the tobacco industry argument on this issue and adds that he has never been paid by the industry, says the new law places unfair burdens on companies like Altria because it makes it too hard for them to promote smokeless products as safer alternatives to cigarettes.
A University of Alberta researcher who came to the university's School of Public Health with a $1.5-million grant from a U.S. tobacco firm has left his position.
"As part of the mutually agreeable settlement, I voluntarily completely ended my affiliation with the UASPH and moved my research lab from there," Carl Phillips wrote in an email to the CBC.
Phillips began his research at the university in November 2005 with a grant from U.S. Smokeless Tobacco Company. At the time, it was wholly owned by tobacco giant Phillip Morris International.
Altria's wholly owned subsidiary, U.S. Smokeless Tobacco Manufacturing Co. LLC (USSTMC), maker of moist smokeless tobacco products including Copenhagen, Skoal, Red Seal and Husky, along with U.S. Smokeless Tobacco Brands Inc. (USSTB), filed a lawsuit in a federal district court against New York City, seeking to overturn a flavored tobacco ban ordinance scheduled to take effect Feb. 25, 2010, according to the National Association of Tobacco Outlets (NATO).
In the fall of 2009, the New York City Council adopted and Mayor Michael Bloomberg signed an ordinance banning the sale of all tobacco products -- excluding cigarettes -- that contain a characterizing flavor other than menthol, mint or wintergreen.
Two tobacco companies are suing the city over a law banning retailers from selling candy-flavored tobacco products, Council Speaker Christine Quinn said Tuesday.
But the city is determined to snuff out such products across all five boroughs, the speaker said.
"It is clearly another example of the unfettering greed of the tobacco industry," Quinn said at a press conference Tuesday afternoon.
"But it is not something we are afraid of. This is a solid law. This is a smart law. So go ahead big tobacco, you can bring it on."
The ban goes into effect on Feb. 25
The City Council sent a message to big tobacco this afternoon: put it out.
U.S. Smokeless Tobacco Manufacturing Company and U.S. Smokeless Tobacco Brands filed a lawsuit against the city in December over a law approved by the City Council last year that bans the sale of favored tobacco products in the five boroughs.
In response to the suit, Council Speaker Christine Quinn, health care advocates and several members of the City Council gathered at City Hall today to let "big tobacco" know they wouldn't be backing down, settling or negotiating anytime soon.
"What we did was legally right, but, more importantly, it was morally right, and we are not going to let this lawsuit threaten us," said Quinn, who compared the tobacco product's packaging to a tube of lip gloss. "Tobacco yet again has shown itself to be nothing but greedy and only interested in hurting the public health of New Yorkers."
SAN DIEGO: A veterans legal assistance clinic at Thomas Jefferson School of Law has received a $50,000 grant as the result of the settlement of a class-action lawsuit against U.S. Smokeless Tobacco.
The lawsuit, which was settled for $96 million, alleged that U.S. Smokeless Tobacco, which manufactures Skoal and Copenhagen chewing tobacco, attempted to monopolize the market in violation of state consumer protection laws.
After all known plaintiffs were paid, $40 million was available to be paid to charitable legal organizations.
The clinic provides legal assistance and legal representation to the residents and alumni of Veterans Village of San Diego, a residential program that provides substance abuse, mental health and job training services to formerly homeless veterans. The clinic has been operating for four years and has served about 300 veterans. —A.K.
Did you know that the tobacco companies are continuing to fool our children into getting hooked on tobacco at an early age? All of the tobacco companies are making tobacco products with cool and tasty favors and with vibrant colors to draw our children attention. Here is a list of a few of the products on the shelves:
* RJ Reynolds, who formerly used cartoon character Joe Camel to market their products, has a new line of flavored Camel cigarettes with names like Twista' Lime, and seasonal flavored cigarettes like Bayou Blast Mardi Gras Berry Blend.
* Kool cigarettes now come in a special version called Smooth Fusion. . . .
Are we going to stand back and let these tobacco companies hurt our children and youth?
The next time you are in a store look around and see all the favors of tobacco. This year the Wakulla County Health Department - Tobacco Prevention program/ SWAT (Students Working Against Tobacco) will be working toward getting these products removed or placed behind the counters at the local stores
Your editorial and its headline did not acknowledge the different actions taken by the nation's leading tobacco companies with regard to regulation of tobacco products by the Food and Drug Administration.
Altria Group, parent company of Philip Morris USA, the nation's largest cigarette manufacturer, and U.S. Smokeless Tobacco Company, the largest smokeless tobacco manufacturer, supported the enactment of legislation granting the F.D.A. such authority for more than eight years.
Further, while we have repeatedly voiced concerns about the constitutionality of certain provisions in the bill, none of our companies are party to the lawsuit filed by other tobacco companies. We are currently monitoring the litigation and seeking ways to work constructively with the F.D.A. in resolving those concerns.
We feel that it is a disservice that you did not mention that two of the largest tobacco operating companies in the United States are not a part of the "Big Tobacco" action about which you wrote. We respectfully ask that any future articles reflect the differences between the positions and actions of companies in our industry.
In the new world of big tobacco, Altria (NYSE: MO) seems to be marching to the beat of its own drummer.
Reynolds American (NYSE: RAI) and Lorillard (NYSE: LO) have joined forces to continue their fight with the government over increased tobacco regulation. Last week, the dynamic duo launched a lawsuit questioning the free speech (i.e., advertising) ramifications of FDA control over the tobacco industry. Kissing cousin Philip Morris International (NYSE: PM) is fighting its own battles with British American Tobacco (NYSE: BTI) for the title of big-time international tobacco player.
Meanwhile, Altria announced plans to expand its product portfolio with Copenhagen-brand wintergreen smokeless tobacco. The new product could drive Copenhagen's share of the segment from 23% to 32%, according to a company spokesperson. In addition, the company is introducing a value-priced L&M menthol cigarette product, and it continues to look for growth opportunities with its Marlboro Snus.
It's been a year since Altria bought snuff-and-wine connoisseur UST, so it's about time for the product development and overall integration synergies to kick into gear with the new Copenhagen product. Interestingly, Altria says that it has no plans to sell off UST's wine business, although the recent problems that wine and spirits makers like Diageo (NYSE: DEO) face probably make it an inopportune time to divest the booze business. Besides, Altria owns 28% of SABMiller (OTC: SBMRY), so the company isn't completely uninformed on the alcohol market. . .
In the end, though, Altria comes out smelling more like a rose than a burned-out cigarette. The company gets to support the new FDA legislation of the tobacco industry and maintain a relatively decent public image. It thus avoids the costs of an expensive lawsuit, while continuing to introduce new products and expand its share in a declining market. With this scenario playing out, and a P/E of 12.2 and annual yield of 7.3%, I'd say that Altria has smoldering growth potential for investors in the short and long terms.
At least 15,000 purchasers of chewing tobacco in Massachusetts could be eligible for a piece of a $10.65 million class action settlement with U.S. Smokeless Tobacco Co., according to a lawyer for plaintiffs who sued the company.
The plaintiffs’ legal team, which had alleged that UST artificially inflated the cost of chewing tobacco through its large market share, has launched a Web site to explain to consumers how they can access their share of the settlement.
Frequent purchasers of chewing tobacco could be eligible to get up to $700 depending on how many UST products – which include the Copenhagen and Skoal brands – they purchased from Jan. 1, 1990, through May 21. Infrequent purchasers could get $25 to $100.
Robert Bonsignore, one of the lawyers who represented the plaintiffs, said he was initially approached by chewing-tobacco users about filing a lawsuit after Conwood, a competitor of UST’s, had made similar claims against the company.
* UST CEO to leave Altria at the end of June
* Altria says integration cost savings on track
* Altria shares fall 0.7 percent
CHICAGO, June 26 (Reuters) - Smokeless tobacco maker UST's top executive will leave Altria Group Inc (MO.N) at the end of June after working on integrating the business into Altria for the past five months.
Suffolk Superior Court Judge Stephen Neel is expected to approve a $10.65 million Mass. settlement today of a class-action lawsuit filed against the U.S. Smokeless Tobacco Co. for price fixing.
"This is the largest settlement per consumer in the country in a case involving price fixing for smokeless tobacco," said Robert Bonsignore, the attorney who represented Massachusetts consumers. "It wasn't bad enough that they have more than 80 percent of the market share on a product that is more addictive than heroin, they also fixed the price."