Bliley PM
Tobacco Operations [from "CEO Issues Book"]
Abstract
Provides mock questions and answers from "CEO Issues Book" including headings: "Addiction; Ingredients; Ammonia; Nicotine; 'De-nic'; Genetic engineering; Alternative crops; Alternative uses for tobacco; FTC [Federal Trade Commission] method of measuring 'tar' and nicotine; Waxman/nicotine/'tar'/FTC; Waxman/'tar'/nicotine ratios; New York Times documents; Victor DeNoble; The Wall Street Journal/nicotine/cocaine; Wigand/60 Minutes; Youth; Smoking bans/restrictions; Tobacco processing and cigarette design; Alzheimer's disease; 'Fire-safe' cigarette; 'Date coding'; Warning labels; Plain packaging; Privatization; Article 28; Developing countries; International ramifications of U.S. issues; Sourcing; Crop Protection Agents (CPAS); National Smokers Alliance (NSA); Single source vendor program; [and] Icahn bid to take over RJR Tobacco Operations". Includes extensive editing and comments in marginalia and "approved by MF, A&P - David Polk [sp] - 8/6/96" (similar and related to portions and different versions of report found in Bates 2044747235, 2044747374, 2047623298, 2048537819, and 2061688186).
Fields
- Company
- Philip Morris Cos., Inc.
- Type
- Draft material
- Position statement
- Report- General
- Named Person
- Baldinger, B.
- Battig, Karl (Addiction Researcher, Swiss Fed. Inst. of Tech.)1989 Authority on nicotine and addiction
- Campbell, W.
- Cipollone, Rose Defrancesco (Lung Cancer Victim, Plaintiff in Cipollone v. Liggett))
- Daynard, R.
- DeNoble, Victor J., Ph.D. (PM Behavioral Research (1980-84))Associate Senior Scientist at PM Behavioral Research (83). Senior Researcher at Philip Morris from 1980-1984. Performed in-house PM rat studies on nicotine and addiction; was later fired by PM because of sensitive nature of what studies revealed about nicotine addiction.
- Giuliani, R. Hon.
- Hasenfratz, M.
- Icahn, C.
- Kessler, David A., M.D., J.D. (Former FDA Commissioner)appointed FDA Commissioner by President George Bush in December 1990.
- Sandefur, W.
- Schachter, S. Professor
- Waxman, H. Rep.
- Wigand, J.
- Named Organization
- 60 Minutes
- ABC
- American Medical Association (physicians group)Professional trade group representing American physicians.
- American Dietetic Association
- American Medical Association Education and Research Foundation
- Bakery, Confectionery, and Tobacco Workers Union
- Beer Operations
- Case Western Reserve University
- CBS Television
- Chesterfield County School Board
- CNN
- Columbia University
- Congress
- Congressional Research Service (Criticized 1993 EPA ETS report)Criticized EPA's January 1993 report designating passive smoke as a carcinogen
- Consumer Product Safety Commission
- Day One
- Department of Agriculture
- Department of Health and Human Services
- Department of Justice
- Department of Transportation
- Environmental Protection Agency
- EPA
- EU
- European Union
- FDA
- Federal Trade Commission
- Fire Administration
- Fomento Economico S.A.
- Food and Drug Administration
- Food and Drug Administration Drug Abuse Advisory Committee
- Food Operations
- Federal Trade Commission (Enforcement agency for laws against deceptive advertising)Enforces laws against false and deceptive advertising, including ads for tobacco products. Ensures proper display of health warnings in ads and on tobacco products;collects and reports to Congress information concerning cigarette and smokeless tobacco advertising, sales expenditures, and the tar, nicotine, and carbon monoxide content of cigarettes.
- General Operations
- HHS
- Host/Marriott
- House of Representatives
- House Subcommittee
- International Agency for Research on Cancer (IARC) (WHO cancer research arm)International Agency for Research on Cancer - The cancer research arm of the WHO. Conducted a multi-center epidemiology study on ETS, initiated in 1988, data collection completed in 1994 and results were published in 1998
- International Agency for Research on Cancer
- International Association of Machinists
- International Center for Alcohol Policies
- International Organization for Standards
- Irwindale Brewery
- Justice Department
- Massachusetts Department of Health
- National Cheese Exchange
- National Commission Against Drunk Driving
- National Smokers Alliance
- New York City Council
- New York State Restaurant Association
- New York Times
- Occupational Safety and Health Administration
- Occupational Safety and Health Administration (Held hearings in 1994 to ban smoking in workplaces)OSHA opened hearings in September 1994 on a proposal that amounts to a virtual ban on smoking in every workplace in the nation
- PEMEX
- People for the Ethical Treatment of Animals
- PETA
- PM Asia
- PM Australia
- PM EFTA
- PM European Union
- PM Latin America
- PMCC Operations
- PMKK Japan
- Surgeon General
- Tobacco liability
- Tobacco Operations
- USA Today
- US Dept of Agriculture
- Wall Street Journal
- Wisconsin Department of Agriculture
- Operation/Project
- Action Against Access (Voluntary market/ad restrictions)Frequently referred to in the documents as AAA
- We Card (Reatiler program)Sticker/poster program to encourage retailers to ask for ID prior to sale
- Region
- Portugal
- Singapore
- Spain
- Switzerland
- Turkey
- United Kingdom
- United States
- France
- Germany
- Italy
- Japan
- Keyword
- North American Free Trade Agreement
- PetroBras
- Cigatam
- Clean Air Act
- Clean Water Act
- Day One
- FEMSA
- ISO
- Journal of Experimental Psychology
- Mercosur
- NAFTA
- Subject
- advertising
- Diseases
- Federal level
- Government agencies
- Health effects
- Industry front groups
- industry response
- Industry sponsored prevention programs
- International level
- international trade
- Lawsuits
- legislation
- Legislatures
- mass media
- Regulations
- Taxes
- tobacco industry structure
- youth access
- accommodation
- Brand
- Benson & Hedges (PM)
- De Nic
- Marlboro (PM)
- Merit (PM)
- Next
Document Images
,t
TOBACCO OPERATIONS
ADDICTION
INCREDIEN TS
AMMONIA
NICO TINE
"DE-NIC"
GENETIC ENGINEERING
AL TERNA TIVE CROPS
AL TERNA TIVE USES FOR TOBACCO
FTC METHOD OF MEASURING :'TAR" AND NICOTINE
WAXMAN ~/ NICOTINE //"TAR" / FTC
WAXMAN / "TAR" / NICOTINE RATIOS
NEW YORK TIMES DOCUMENTS
VICTOR DENOBLE
THE WALL STREET./OURNAL / NICOTINE / COCAINE
WlCANO / 60 MINUTES
YOUTH
SMOKING BANS/RESTRICTIONS
TOBACCO PROCESSING AND CIGARETTE DESIGN
ALZHEIMER'S DISEASE
"FIRE-SAFE" CIGARETTE
"DATE CODING"
WARNING LABELS
PLAIN PACKAGING
PRIVA TIZA TION
ARTICLE 28
DEVELOPING COUNTRIES
INTERNATIONAL RAMIFICATIONS OF U.S. ISSUES
SOURCING
CROP PRO TECTION AGENTS (CPAS)
NA TIONAL SMOKERS ALLIANCE (NSA)
SINGLE SOURCE VENDOR PROGRAM
ICAHN BID TO TAKE OVER RJR
PACE
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TOBACCO OPERATIONS
ADDICTION
1. IS CIGARE'FI'E SMOKING "ADDICTIVE?"
MORE THAN 40 MILLION AMERICANS HAVE QUIT SMOKING, THE GREAT MAJORITY
WITHOUT PROFESSIONAL HELP OR TREATMENT.
I WE DO NOT BELIEVE THAT CIGARETTE#SMOKING IS "ADDIC~VE." ,
1 ~" THE TERM "ADDIOTION"~DESCRIBE~/PHYSIOLOGICAL CONDITION,
CHARACTERIZED BY SUCH PHENOM~A AS INTOXICATION, TOLERANCE, AND
WITHDRAWAL. /
SMOKING IS NOT INTOXICATING, NORTOES IT IMPAIR JUDGMENT.
SMOKERS CAN QUIT WITHOUT/NDERGOING "WITHDRAWAL" OF THeE SORT
ACTIVITIES AND SUBSTANCES FROM CAFFEINE TO NICOTINE, TO CHOCOLATE, TO
~NING, IT ~:::S: .~_,.,E" NTIFIC M~NING.~ TODd'," ;T ;S i~3T=
THE 1988 SURGEON GENERAL'S REPORT ON SMOKING CLAIMED CIGARETTES ARE
ADDICTIVE. WHY SHOULD WE BELIEVE YOU AND NOT THE SURGEON GENERAL?
.111 IN 1964 THE SURGEON GENERAL CONCLUDED CIGARETTE SMOKING WAS NOT
"ADDICTIVE," BUT A "HABIT."
"rrHE DEFINiTiON OF "ADD~u]~uN'-' INTRO~)U(~.~ IN THE 1988 US SURGEON
GENE~L'S mmmmm~ m~ .............. ~,~, ~t mmmMmmM
,~=~. ~ ,=~ ,~ ,.~ ...... ~ ~=~,,~,.,~,, OF "ADDICTI~.'
NEW DEFINITION COULD BE USED TO C~SSI~ CAFFEINE IN ~FFEE, CO~,
CH~O~TE, AND MANY L~E-e~L~ C; ;GiC~AS "ADDICTIVE."
THE 1989 SURGEON GENE~L'S REPORT NOTED HALF OF ALL LIVING ADULTS IN
THE U.S. WHO HAVE EVER SMOKED HAVE QUIT.
3. DOESN'T THE USE OF NICOTINE GUM AND NICOTINE PATCHE~ TO HELP PEOPLE QUIT
SMOKING CIGARETTES CONFIRM THAT SMOKING IS ANADDICTIONkTO NICOTINE?
~ '~ " '"- NOT ~EEt',;' TER,'q,',~LY
.'F,'ECT:VE,
NGREDIENT$
WHY DID PM DECIDE TO RELEASE THE LIST OF INGREDIENTS USED IN THE MANUFACTURE
OF ITS CIGARETTES?
[] TO PUT AN END TO FALSE ALLEGATIONS THAT SOME OF THE INGREDIENTS ON THE
LIST ARE HAZARDOUS AS USED IN CIGARETTES.
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WHY DIDN~" YOU RELEASE THE LIST OF INGREDIENTS EARLIER?
[] COMMON FOR COMPANIES TO GUARD SPECIFIC PRODUCT FORMULAS AS TRADE
SECRETS.
• CONGRESS RECOGNIZED THAT WHEN IT PASSED FEDERAL CIGARE-FI'E LABELING
ACT iN 1986.
(NOTE; ACT REQUIRES US ClGARE3-FE MANUFACTURERS TO SUBMIT ANNUAL LISTS OF THEIR
INGREDIENTS TO THE DEPARTMENT OF HEALTH AND HUMAN SERVICES. IT ALSO GUARANTEED
PROTECTION AGAINST DISCLOSURE OF THIS INFORMATION. CONFIDENTIALITY CONSISTENT WITH
THE TREATMENT OF INGREDIENTS USED IN FOODS, DRUGS, COSMETICS AND OTHER CONSUMER
PRODUCTS. E.G., FLAVORS ADDED TO FOODS TREATED AS TRADE SECRETS AND NEED NOT BE
DISCLOSED ON PRODUCT LABELS.)
WHY AREN"F THE INGREDIENTS USED IN CIGARETTES LISTED ON THE PACKAGE? DONOr
CONSUMERS HAVE THE RIGHT TO KNOW WHAT IS IN THE PRODUCTS THEY BUY?
[] THE IDENTITIES OF SPECIFIC INGREDIENTS USED IN A PARTICULAR BRAND OF
ClGAREqq'ES AS WELL AS MANY OTHER CONSUMER PRODUCTS, SUCH AS COCA-
COLA, ARE NOT TREATED AS P~BLIC INFORMATION. THESE FORMULAS OFTEN
HAVE GREAT COMPETITIVE VALUE AND REQUIRE SUBSTANTIAL TIME AND EXPENSE
TO DEVELOP. THE LAW THEREFORE ALLOWS THEM TO BE TREATED AS TRADE
SECRETS.
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ARE THERE ANY SUBSTANCES CURRENTLY ADDED TO THE COMPANY'S CIGARETTES
SOLD ONLY IN OTHER MARKETS, PARTICULARLY THIRD WORLD MARKETS, WHICH ARE
NOT USED IN CIGARETTES SOLD IN THE U.S.?
NO. IN ADDITION, ALL OF PM'S CIGARETTES COMPLY WITH THE REGULATORY
REQUIREMENTS OFTHE COUNTRIES IN WHICH THEY ARE MANUFACTURED OR SOLD.
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ARE THE INGREDIENTS USED IN CIGARIEFFES HARMFUL?
,-• NONE OF THE INGREDIENTS AS USED BY PM IN THE MANUFACTURE OF ITS
CIGARETTES HAS BEEN DEMONSTRATED TO BE HARMFUL.
• IN THE U.S., THE UNITED KINGDOM, AND GERMANY, CIGARETTE INGREDIENTS HAVE
BEEN SCRUTINIZED BY THE APPROPRIATE GOVERNMENTAL AND REGULATORY
ORGANIZATIONS FOR YEARS.
• IN ADDITION, IN THE U.S., AN INDEPENDENT SAFETY ASSESSMENT'RECENTLY
CONDUCTED BY 6 RENOWNED SCIENTISTS CONCLUDED THAT NONE OF THE
INGREDIENTS FROM THE LIST PROVIDED TO THE U.S. DEPARTMENT OF HEALTH
AND HUMAN SERVICES WAS HARMFUL AS USED IN CIGARETTES.
9. DOES PM ADD AMMONIA TO ITS CIGARETTES?
• AMMONIA IS A NATURALLY OCCURRING COMPONENT OF TOBACCO.
• AMMONIA COMPOUNDS ARE USED AS PROCESSING AIDS AND FLAVORANTS IN THE
MANUFACTURING OF CIGARETTES.
• PANEL OF INDEPENDENT SCIENTISTS CONCLUDED AMMONIA COMPOUNDS USED BY
PM ARE NOT HARMFUL TO CONSUMERS AS USED IN THE MANUFACTURING OF
CIGARETTES.
• AMMONIA COMPOUNDS USED COMMONLY AS INGREDIENTS IN MANY FOODS (ICE
CREAM, GELATIN, BAKED GOODS). THESE SUBSTANCES ARE ACCEPTED BY FDA
AS SAFE FOR USE IN FOODS.
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10.
THE WALL STREET JOURNAL, DAVID KESSLER AND OTHERS HAVE ALLEGED THAT
PHILIP MORRIS USA USES AMMONIA IN THE CIGARETTE MANUFACTURING PROCESS TO
INCREASE THE AMOUNT OF NICOTINE INHALED BY THE SMOKER. IS THAT TRUE.'?
• No. THERE is SiiviFL't" TOO LI; ; .'E ~. ,M ,M O.H !.a, !,HVOLVED TO FIAVE ANY EFFECT ON
NICCT',,~,'E DEL;VERY. ( WSJ STORY ON AMMONIA RAN UN OCTOBER i ~, i ~5.) .O_.__
• IF, AS THE WALL STREET JOURNAL ASSERTED, PM USA WERE USING AMMONIA
TO INCREASE NICOTINE DELIVERIES OF LOWER TAR CIGARETTES, ONE WOULD
EXPECT THAT AS "TAR" AND NICOTINE DELIVERIES OF MARLBORO HAVE FALLEN
OVER THE PAST 20 YEARS, AMMONIA LEVELS WOULD HAVE INCREASED. BUT THAT
IS SIMPLY NOT THE CASE; OVER THE PAST 25 YEARS, THE AMOUNT OF AMMONIA
HAS REMAINED NEARLY CONSTANT.
NICOTINE
11. DOES PHILIP MORRIS ADD NICOTINE TO ITS CIGARETTES?
• NO. NICOTINE OCCURS NATURALLY IN TOBACCO. THE AVERAGE NICOTINE YIELD IN
CIGARETTES HAS DECLINED BY OVER 50% OVER THE LAST 40 YEARS. THE "TAR"
AND NICOTINE YIELDS OF LOW DELIVERY CIGARETTES ARE. LOWER IN ABSOLUTE
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TERMS THAN THOSE OF HIGHER DELIVERY CIGARETTES~Wl
IN RESPONSE TO CONSUMER DESIRES FOR "LIGHTER" CIGARETTES, THE
TOBACCO INDUSTRY, INCLUDING PM, HAS DEVELOPED CIGARE-FFES WITH LOWER
YIELDS OF ALL SMOKE CONSTITUENTS, INCLUDING NICOTINE.
THESE REDUCTIONS BEGAN ABOJJT 40 YEARS AGO WITH THE INTRODUCTION OF
H~C"l=u~ D~}~C~IkIT W~TH
FILTER CIGARETTES AND ONTINUED p ............ THE
DEVELOPMENT OF MODERN FILTERS AND TOBACCO PROCESSING TECHNIQUES.
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12. DOES PM "MANIPULATE" THE NICOTINE LEVI=L DURING CIGARETTE PRODUCTION?
13.
~• PM DOES NOT "MANIPULATE" NICOTINE LEVELS IN THE TOBACCO IN
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ITS
CIGARETTES.
WE VOLUNTARILY OPENED OUR MANUFACTURING OPERATIONS TO THE FDA, IN A
GOOD FAITH EFFORT TO RESOLVE THE ALLEGATION THAT WE ADD NICOTINE OR
"MANIPULATE" ITS LEVEL IN OUR CIGARETTES.
PROCESSES USED TO MANUFACTURE CIGARETTES HAVE BEEN PUBLICLY
AVAILABLE FOR MANY YEARS IN THE FORM OF PATENTS AND PUBLISHED
LITERATURE.
THE LEAVES HAVE BEEN C(~~NTO FINISHED CIGARETTES, THAT IS, AFTER
THE TOBAC~THE MANUFACTURING PROCESS, AT_
HE PRor~ ~.T. ~ ~ ......
THE ABC PROGRAM "DAY ONE" ALLEGED THAT TOBACCO COMPANIES WERE "SPIKING"
OR "FORTIFYING" CIGARET['ES WITH NICOTINE FROM OUTSIDE SOURCES.
• PM'S FINISHED CIGARETTES ACTUALLY CONTAIN LESS NICOTINE THAN WAS
CONTAINED IN THE RAW MATERIALS FROM WHICH THEY WERE MADE.
• PM HAS REPEATEDLY STATED THAT IT DOESN'T NOT "SPIKE" OR "FORTIFY" ITS
CIGARETTES WITH ADDITIONAL NICOTINE.
• ABC HAS ADMITTED THAT IT MADE A MISTAKE AND HAS ISSUED AN APOLOGY TO ITS
VIEWERS AND TO PHILIP MORRIS.
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14. WHY DOESN'T PM MAKE A CIGARETTE WITHOUT NICOTINE?
• WE~VE TRIED. PM USA INVESTED $300 MILLION TO DEVELOP AND TEST MARKET
"NEXT" (OR "DE-NIC"), A CIGARETTE WITH VIRTUALLY ALL OF THE NICOTINE
REMOVED.
• SALES WERE DISAPPOINTING.
MAY BE SIMILAR TO EARLY,, UNSATISF:AOTORY R~INI3
DECAFFI=INATED COl=BEE AND COLA PRODUCT~
• WHILE THE INITIAL ATTEMP~"qJSA TO MARKET"NEXT" WAS NOT
S UCCESSFU~ THAT THE COMPANY EVEN MADE THIS EFFORT,
15.
DOES PM ADD TOBACCO EXTRACTS OR USE OTHER PROCESSES TO INCREASE
IICOTINE LEVELS IN CIGARETTI=S?
PM H~NEVER USED TOBACCO EXTRACTS OR ANY OTHER PROCESS FOR THE
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PURPOSE OF INCREASING NICOTINE LEVELS IN CIGARETTES.
NICOTINE IN/FLAVOR PACKAGES WITH TOBACCO EXTRACTS /
:LIMINAT;Ct4-
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16. HAS PM EVER USED GENETIC ENGINEERING TECHNIQUES TO INCREASE THE NICOTINE
CONTENT.OF THE TOBACCO IT USES IN THE MANUFACTURE OF ITS CIGARETTES?
NO. PM HAS NEVER USED GENETIC ENGINEERING PROCESSES TO INCREASE OR
MAINTAIN NICOTINE DELIVERY IN ITS CIGARETTES.
ALTERNATIVE CROPS
17. WHAT ARE YOU DOING TO ENCOURAGE FARMERS TO GROW ALTERNATIVE CROPS?
• WE WANT FARMERS TO GET THE BEST PRICE THEY CAN FOR WHATEVER THEY
DECIDE TO GROW ON THEIR LAND. OUR CONTRIBUTIONS OVER THE YEARS TO
AGRICULTURAL PROGRAMS AND SCHOOLS HAVE HELPED FARMERS MAXIMIZE
THEIR EFFORTS. THEY GROW WHAT THEY DO BECAUSE THEY DECIDE WHAT CROPS
ARE BEST FOR THEM, NOT BECAUSE PM OR ANYONE ELSE TELLS THEM WHAT
THEY SHOULD GROW.
ALTERNATIVE USES FOR TOBACCO "
18. IS PM USA INVESTIGATING ALTERNATIVE USES OF TOBACCO?
• ALL OUR R&D EFFORTS ARE EXTREMELY CONFIDENTIAL, SO WE DONOr COMMENT
ON THEM.
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FTC ME'rH'OD OF MEASURING "TAR" AND NICOTINE
19. WHAT ARE THE U.S. FEDERAL TRADE COMMISSION (FTC) AND INTERNATIONAL
ORGANIZATION FOR STANDARDIZATION (ISO) METHODS FOR MEASURING "TAR" AND
NICOTINE?
[] THE FTC METHOD WAS DEVELOPED THROUGH THE COOPERATION OF THE FTC
STAFF, INDEPENDENT SCIENTISTS, AND TOBACCO COMPANY SCIENTISTS. THE
TEST METHOD IS DESIGNED TO PROVIDE "TAR" AND NICOTINE RATINGS THAT
CONSUMERS CAN USE TO COMPARE BRANDS.
[] THE ISO METHOD, WHICH IS USED IN MANY COUNTRIES, IS NEARLY IDENTICAL TO
THE FTC PROCEDURE. THE SAME BRAND CIGARETTES TESTED UNDER THE FTC
AND ISO METHODS WOUL~ RESUL~ IN VIRTUALLY IDENTICAL "TAR" AND NICOTINE
YIELD RATINGS.
20. IS THE FTC METHOD OF MEASURING "TAR" AND NICOTINE ACCURATE?
[] "TAR" AND NICOTINE FIGURES DETERMINED UNDER FTC METHOD ARE MEANT TO
BE A GUIDE FOR CONSUMERS SIMILAR TO THE "MILES PER GALLON" INFORMATION
PROVIDED TO AUTOMOBILE PURCHASERS. THE FTC RATINGS HAVE PROVIDED
CONSUMERS WITH USEFUL INFORMATION.
21. WHY SHOULDN'T THE PARAMETERS OF THE FTC METHOD BE CHANGED TO MORE
ACCURATELY REFLECT HUMAN SMOKING AS THE FDA AND FTC SUGGEST?.
[] NO STANDARDIZED MEASUREMENT METHOD CAN MIMIC HUMAN SMOKING. THERE
ARE AS MANY DIFFERENT WAYS OF SMOKING AS THERE ARE PEOPLE WHO SMOKE.
/X. ...... , //~ ~ ~,~c~ ~,''="-~-~ "=" .....
.z'~..,,,,.,"~"
22.
23.
l
IF HUMAN BEINGS DON'T SMOKE THE WAY THE MACHINES DO, DOESN"r THAT MEAN THE
FTC MEASUREMENTS ARE USELESS?
NO. RATINGS PROVIDE CONSISTENT AND RELIABLE INFORMATION FOR BRAND
COMPARISON.
CIGARETTE RATINGS ARE NOT MEANT TO REPLICATE HUMAN SMOKING.
• THE RATINGS ARE USEFUL BECAUSE SMOKERS PERCEIVE THAT "TAR" AND
NICOTINE RATINGS RELATE TO IMPORTANT CIGARETTE QUALITIES SUCH AS TASTE,
STRENGTH, MILDNESS, HARSHNESS, EASE OF DRAW, AND SO ON.
• CIGARETTES WITH SIMILAR "TAR" AND NICOTINE RATINGS WILL BE COMPARABLE IN
THESE QUALITIES TO THE CONSUMER. CIGARETTES WITH DIFFERENT "TAR" AND
NICOTINE YIELDS WILL HAVE D)FFERENT SMOKING QUALITIES IN WAYS THAT ARE
PREDICTABLE AND UNDERSTOOD BY THE SMOKER.
ISN'T IT TRUE THAT THE SUPPOSEDLY LOW "TAR" AND NICOTINE LEVELS PRINTED ON
CIGARE3-FE ADS FOR LOW-YIELD CIGARETFES ARE INACCURATE AND MISLEADING
BECAUSE SMOKERS COMPENSATE .BY INHALING DEEPER OR SMOKING
MORE
CIGARETTES?
~- NO. COMFF_NSATION ;SAT MOST A SHORT-TERMFHENOMENON.
[] ~ ALTHOUGH SHORT-T.ERM CHANGES IN SMOKING BEHAVIOR HAVE SOMETIMES
/
BEEN REPORTED WHEN PEOPLE SWITCH TO CIGARETTE BRANDS WITH LOWER
( YIELDS, AS SMOKERS BECOME ACCUSTOMED Z~
~k ~~-~TO THEIR USUAL SMOKING HA~US' zl I'~IR BEHAVIOR DOES N~
~_.~EFLECT MUCH, IF ANY, COMPENSATION.
~----~-8-T4JD','~F LON~q=TEF~vl SiviO~N~ HABITS, RE~LE~ ~N~ A WiDE RANGE OF "TAR"
~D NICOTINE YIELDS, '~ ~^'^~ CONCLUDED THAT ......... no
,,,,,-,^~
eIn-^ ~-" ...... ,-..."r TEND TO COMPENSATE mJn LOWER YI~.~ ,..,, ,,I ........
DESPITE INCREASING POPULARITY OF LOW "TAR" AND NICOTINE CIGARETTES,
AVERAGE DAILY NUMBER OF CIGARETTES SMOKED PER SMOKER HAS STAYED
RELATIVELY CONSTANT.
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IS;4'T~,,,~,~" .~,~,~1~-... .................... ~=U^~I,~D D=^~ I V ~ le~ ^ I=1. Ilkl~TIC}N OF THE
NICOTINE YIELD OF THE
CIGARETTE BEING SMOKED?
~
• ONE OF THE PROBLEMS IN STUDYING WHAT ROLE NICOTINE AN~3~"~A~ MAY HAVE IS
THAT CIGARETTES WHICH ARE LOW IN NICOTINE A~L$(~TTEND TO BE LOW IN "TAR."
THIS MAKES IT DIFFICULT TO SEPARATE ~OLE OF THE TWO CONSTITUENTS.
• IN ONE RECENT STUDY NO C~PENSATION WAS OBSERVED WHEN SMOKERS
SWITCHED TO A C, IGTE WHICH REDUCED NICOTINE, BUT MAINTAINED MEDIUM
LEVELS OF "TA~.~q'HE AUTHORS CONCLUDED THAT THEIR RESULTS SUGGESTED
THAT THE,TASTE AND SMELL RELATED TO THE "TAR" IN CIGARETTE SMOKE "MAY
~~AGREATER ROLE" IN .SMOKING THAN PREVIOUSLY THOUGHT.
(SOURCE:
SENFRATZ, M. BALDINGER, B. AND BATTIG,~Eq~6--
Ha~ 112: 253-258, 1993.)
WAXMAN / NICOTINE / "TAR" / FTC
SITUATION ANALYSIS/EXECUTIVE SUMMARY: IN THE SUMMER OF 1995,
CONGRESSMAN HENRY WAXMAN MADE A SERIES OF CHARGES ON THE FLOOR OF CONGRESS
AGAINST PM BASED ON ALLEGEDLY "SECRET" DOCUMENTS PERTAINING TO PM RESEARCH.
HE STATED THAT PM USA CONDUCTED RESEARCH ON THE PHARMACOLOGICAL EFFECTS OF
NICOTINE ON THIRD-GRADE CHILDREN AND STUDIES OF SMOKING AND STRESS AMONG
COLLEGE STUDENTS WHICH INCLUDED ELECTROSHOCK TREATMENTS.
25.
WHAT IS PM'S RESPONSE TO THE ALLEGATIONS CONCERNING THESE DOCUMENTS?
• MR. WAXMAN'S CHARACTERIZATIONS OF THOSE DOCUMENTS ARE INACCURATE.
REPEATEDLY, MR. WAXMAN ELIMINATED CRITICAL PASSAGES FROM THE
DOCUMENTS HE CLAIMED TO BE QUOTING AND SERIOUSLY MISCHARACTERIZED
BOTH THE PURPOSES AND THE RESULTS OF PM USA'S RESEARCH ACTIVITIES.
THE DOCUMENTS MR. WAXMAN CITED WERE PRODUCED TO THE PLAINTIFFS IN THE
1988 .CIPOLLONE CASE ~ A CASE PHILIP MORRIS USA WON IN COURT.
• MR. WAXMAN EDITED AND MISCHARACTERIZED A SELECTION OF DOCUMENTS TO
ATTACK PM FROM THE HOUSE FLOOR~A FORUM IN WHICH HE CAN CLOAK
HIMSELF IN CONGRESSIONAL IMMUNITY FROM FALSE AND MISLEADING
STATEMENTS.
26.
WHAT ABOUT PM USA'S RESEARCH ON THIRD-GRADERS?
THE PROPOSAL WAS SIMPLY TO CONDUCT A P.RQ.SP.ECTIVIE STUDY DESIGNED TO
TRACK CHILDREN WITH CERTAIN ATTENTION DEFICIT DISORDERS TO SEE WHETHER
THEY WERE MORE LIKELY THAN CHILDREN WITHOUT SUCH DISORDERS TO BECOME
SMOKERS IN LATER YEARS.
• TO THE 9EST OF OUR K.~.~OWLED'-~ THE STUDY WAS NEVER COMPLETED.
ACCORDING TO THE CHESTERFIELD COUNTY SCHOOL BOARD, OFFICIALS COULD
FIND NO EVIDENCE THAT "i'H, ,E S ,T'JDY W:.S ~:ER co~r'}t ICTED.,~ .
• THE STUDY WAS TO BE CONDUCTED IN COLLABORATION WITH RESPECTED,
INDEPENDENT MEDICAL PROFESSIONALS WORKING IN THE RICHMOND AREA WHO
WERE INTERESTED IN LEARNING MORE ABOUT THE BEHAVIOR OF SUCH CHILDREN
WHEN THEY GREW UP.
• SUCH RESEARCH ON THE TYPES OF CHILDREN WHO LATER BECOME SMOKERS
WAS NEITHER UNCOMMON NOR INAPPROPRIATE.~C',F__,",'TISTS ~w w-re,m= OF PH,~
.].
MORRIS HA~ bP'P_.NT DECADES CONSIIJS.HII~L~ W-H/x FEC, FLE START SMC;(;;',;G ANu
PORTIONS OF THE DOCUMENT THAT MR DELETED FROM HIS SPEECH
ALSO SHOW THAT PM HAD .EL.Q INTENTIO GIVING CIGARETTES TO CHILDREN.
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27.
-I
WHAT IS PM'S RESPONSE IN REGARD TO MR. WAXMAN'S CHARACTERIZATIONS OF
PHILIP MORRIS' STUDIES OF SMOKING AND STRESS AMONG COLLEGE STUDENTS?
MR. WAXMAN EDITED OUT PORTIONS OF THE DOCUMENTS WHICH INDICATE THAT
THE COLLEGE STUDENTS--WHO WERE ALL OVER 21--ENGAGED IN THESE
STUDIES VOLUNTARILY AND WERE FREE TO DISCONTINUE PARTICIPATION AT ANY
TIME.
MR. WAXMAN IGNORED THE FACT THAT SUCH RESEARCH IN WHICH SMOKERS WERE
EXPOSED TO MILD ELECTRIC SHOCKS TO SIMULATE A STRESSFUL SITUATION WAS
ALREADY PART OF THE SCIENTIFIC LITERATURE BEFORE PM USA CONDUCTED
THIS RESEARCH. FOR EXAMPLE, IN THE LATE SIXTIES AND EARLY SEVENTIES,
COLUMBIA UNIVERSITY CONDU(~TED JUST SUCH RESEARCH.
THE MILD SHOCK IN THE PM USA STUDY WAS ADMINISTERED TO THE SUBJECTS'
FINGERS.
THIS INDEPENDENT UNIVERSITY RESEARCH INVOLVING MILD SHOCKS WAS HARDLY
A "SECRET." IN" FACT, IN 1972, THE RESEARCH BY PROFESSOR STANLEY
SCHACHTER AT COLUMBIA UNIVERSITY WAS PUBLISHED IN A BOOK ON THE
SUBJECT OF SMOKING BEHAVIOR. PM USA MERELY PROPOSED TO REPLICATE
THE TYPE OF EXPERIMENT CONDUCTED BY SUCH RESEARCHERS AT COLUMBIA
AND OTHER UNIVERSITIES.
PM ' '° ^ ........
,.,,.,,-, ,v~u= I'~J A'TTEMFT TO HiDE THE ~-^ "" "'~ ^~ ~' v',u ~=~'-.u~'~4 w~ RI=ING
2
(-~ 9 z 7 ),,," ~
13
WAX'MAN ,/ "TAR"/NICOTINE RATIOS
SITUATION ANALYSIS/EXECUTIVE SUMMARY: MR. WAXMAN ALSO STATED ON THE
FLOOR OF CONGRESS THAT PM "DOUBLED" THE "NICOTINE LEVELS" OF BENSON & HEDGES
CIGARETTES CITING A MARCH 1981 FTC REPORT. IN ADDITION, THE WALL STREET JOURNAL
STATED ON JULY 14, 1995, THAT "WHILE IT (MERIT) HAD LESS THAN HALF THE CARCINOGENIC
TARS OF REGULAR CIGARETTES, IT HAD 60% OF THE NICOTINE."
28. HOW CAN PM CLAIM THAT THESE CIGARETTES HAVE LOW NICOTINE AND "TAR" YIELDS
WHEN THE RATIOS OF NICOTINE TO "TAR" ARE HIGHER THAN PREMIUM BRANDS?
• CONGRESSMAN WAXMAN IS WRONG. AS INDICATED IN THE OFFICIAL FTO REPORT
FOR MARCH 1981m THE ACTUAL NICOTINE DELIVERY OF THIS PARTICULAR
BENSON & HEDGES ULTRA-LOW CIGARETTE WAS ONLY .12MG. ACCORDING TO THE
FTC, THE B&H 70MM CIGARETTE TIED AS THE SECOND LOWEST CIGARETTE OUT
OF THE 187 TESTED THAT YEAR IN TERMS OF NICOTINE DELIVERY.
THE TRUTH ABOUT THIS PARTICULAR CIGARETTE WAS THAT BOTH ITS "TAR" AND
NICOTINE DELIVERIES WERE REDUCED DURING THE 7 YEARS FROM JUNE 1970
THROUGH JUNE 1977. IN 1977, THE CIGARETFE WAS FURTHER REFORMULATED AS -
AN ULTRA-LOW BRAND, AND THE ALREADY-REDUCED "TAR" AN~ NICOTINE LEVELS
WERE REDUCED AGAIN BY 85-90%.
THE DATA FROM THE OFFICIAL FTC REPORTS PLAINLY SHOW THAT THE NICOTINE
YIELD NEVER ROSE AGAIN TO ANYTHING EVEN APPROACHING THE PRIOR YEARS;
AND THAT IS WHY THAT BRAND TIED FOR SECOND LOWEST IN NICOTINE YIELD OF
THE 187 BRANDS TESTED BY THE FTC IN MARCH 1981mWHEN MR. WAXMAN
CLAIMS ITS "NICOTINE-TO-TAR" RATIOS WERE "HIGHEST."
WITH RESPECT TO MERIT ULTRA LIGHTS, THE FACT IS THAT THE SLIGHTLY
E
DIFFERENT NICOTINE-TO-"TAR" RATIO OF THAT .LOW YIELD BRAND RESULTS FROM
THE FACT THAT ANY ULTRA-LOW FILTER SYSTEM TAKES OUT PROPORTIONATELY
MORE OF THE "TAR" THAN THE NICOTINE~A FACT THAT IS REFLECTED IN VIRTUALLY
EVERY LOW YIELD BRAND MADE BY ALL CIGARETTE COMPANIES. re
THE SLIGHTLY DIFFERING NIcoTINE-TO-"TAR" RATIOS BETWEEN FULL FLAVOR AND ~
LOW YIELD CIGARETTES ARE A MATTER OF PHYSICS AND FILTER EFFICIENCIES.
14
ALL OF THE TOP 20 BRAND PACKINGS IN 1993, FROM THE LATEST FTC REPORT,
HAVE RATIOS BELOW .10.
OVERALL NICOTINE YIELD IN CIGARETI'ES HAS DECLINED BY OVER 50% OVER THE
LAST 40 YEARS, AND "TAR" AND NICOTINE YIELDS OF LOW DELIVERY CIGARETTES
ARE LOWER IN ABSOLUTE TERMS THAN THOSE OF HIGHER DELIVERY CIGARETTES,
WHATEVER THE RATIOS MAY BE.
THE NEW YORK TIMES DOCUMENTS
SITUATION ANALYSIS / EXECUTIVE SUMMARY: ON JUNE 8, 1995, THE NEW YORK
TIMES REPORTED THAT IT HAD OBTAINED 2,000 PAGES OF PHILIP MORRIS DOCUMENTS.
ACCORDING TO THE NYTTHESE "SECRET" DOCUMENTS REVEALED THAT THE COMPANY
USED LABORATORY METHODS THAT ARE CUSTOMARILY USED TO ASSESS DRUGS TO STUDY
THE EFFECTS OF NICOTINE ON SMOKERS. THE DOCUMENTS ALLEGEDLY DESCRIBED THE
PHARMACOLOGICAL EFFECTS OF NICOTINE AND HOW IT AFFECTS THE BODY, BRAIN AND
BEHAVIOR OF SMOKERS. IN THE PIECE, RICHARD DAYNARD IS QUOTED AS FOLLOWS: "IT
SEEMS THAT THEIR OWN DOCUMENTS PROVE THEY KNEW ABOUT THE ROLE OF NICOTINE AND
THE ROLE OF PHYSIOLOGICAL NEED VERSUS HABIT, AND THAT THEY DELIBERATELY
MANIPULATED NICOTINE." THE NYTALSO IMPLIED THAT WILLIAM CAMPBELL LIED UNDER
OATH TO THE CONGRESSIONAL SUBCOMMITTEE WHEN HE SAID THAT "PHILIP MORRIS DOES
NOT "MANIPULATE" NOR INDEPENDENTLY CONTROL THE LEVEL OF NICOTINE IN OUR
PRODUCTS."
29.
DOESN'T THIS INFORMATION PROVE THAT PHILIP MORRIS "MANIPULATES" THE LEVEL OF
NICOTINE IN CIGARETTES AND THAT IT SHOULD BE REGULATED AS A DRUG? IF THIS IS
TRUE, DIDN'T WILLIAM CAMPBELL LIE UNDER OATH?
• NO. BILL CAMPBELL TOLD THE TRUTH.
• THIS RESEARCH HAS NEVER RESULTED IN PM ADDING EXTRANEOUS NICOTINE OR
ARTIFICIALLY ALTERING THE RELATIONSHIP BETWEEN "TAR" AND NICOTINE IN OUR
COMMERCIAL PRODUCTS.
NICOTINE OCCURS NATURALLY IN TOBACC(~'-,
~N ALL PM BRANDS, THE AMOUNT OF NICOTINE IN A FINISHED
CIGAR~"I'E IS LESS THAN THE AMOUNT PRESENT IN THE RAW TOBACCO FROM
WHICH IT IS MADE.
WE HAVE NOT BEEN AFFORDED AN OPPORTUNITY BY THE NYTTO VIEW THE 2,000
PAGES OF DOCUMENTS IT WAS SECRETLY PROVIDED, AND IT SELECTIVELY USED IN
ITS REPORT. THOSE CITED TO US BY THE NYTWERE AVAILABLE TO Pk~INTIFFS IN
THE CIPOLI, ONE CASE, WHICH WAS TRIED IN 1988. IN THAT CASE, JUST AS IN
EVERY CASE BEFORE A E
O
O~
16
SliTUATION ANALYSIS/EXECUTIVE SUMMARY: FORMER PHILIP MORRIS RESEARCH
SCIENTIST DR. VICTOR DENOBLE HAS BEEN SPEAKING ACROSS THE COUNTRY ABOUT THE
EFFECTS OF NICCTINE ON SMOKERS AND WAS FEATURED IN A COMMERCIAL FOR THE
MASSACHUSETTS DEPARTMENT OF HEALTH. HE HAS STATED THAT THE COMPANY
"REALIZED THAT NICOTINE WAS NOT JUST CALMING OR STIMULATING, BUT WAS HAVING ITS
EFFECT CENTRALLY, IN THE BRAIN, AND THAT PEOPLE WERE SMOKING FOR BRAIN EFFECTS."
30. IF YOUR RESEARCH SCIENTISTS DISCOVERED THIS, THEN HOW CAN YOU "SAY THAT
NICOTINE IS NOT A DRUG? DOESN'T THIS PROVE THAT THE COMPANY KNEW OF THE
PHYSIOLOGICAL NEED FOR NICOTINE AND DELIBERATELY "MANIPULATED" NICOTINE?
• WHILE DR. DENOBLE MAY NOW BELIEVE THAT NICOTINE IS "ADDICTIVE," THAT WAS
NOT HIS VIEW WHILE HE WORKED AS A RESEARCH SCIENTIST FOR PM.
• IN FACT, DR. DENOBLE CONSISTENTLY TOLD HIS COLLEAGUES WITHIN THE
COMPANY THAT, IN HIS OPINION, NICOTINE WAS NOT "ADDICTIVE" AND THAT
NICOTINE DID NOT CREATE A PHYSICAL DEPENDENCY.
• DR. DENOBLE REPORTED THAT HIS RESEARCH SHOWED THAT STOPPING THE
ADMINISTRATION OF NICOTINE IN RATS DID NOT CREATE SYMPTOMS OF
PHYSIOLOGICAL WITHDRAWAL AND THAT, IN HIS OPINION, NICOTINE DID NOT FIT THE
~CRITERIA FOR DRUG DEPENDENCE.
• LAST YEAR, DR. DENOBLE TESTIFIED UNDER OATH BEFORE A HOUSE
SUBCOMMITTEE AND REAFFIRMED THAT WHILE AT PHILIP MORRIS HE DID NOT FIND
THAT NICOTINE IS "ADDICTIVE."
~1. WHY D~ THE COMPANY SHUT DOWN THE~I~OTINE RESEARC~rO~N WHICH DE'N~LE AND~
OTHERS~ERE WOR~ /
(ANSWER "~K FROM CHU~ WA'~.) / /
17
THE WALL STREET JOURNAL / NICOTINE / COCAINE
SITUATION ANALYSIS/EXECUTIVE SUMMARY: ON DEC. 8, 1995, THE WALL STREET
JOURNAL REPORTED THAT IT HAD AN INTERNAL PHILIP MORRIS USA DOCUMENT THAT
DESCRIBES CIGARETTES AS A "NICOTINE DELIVERY SYSTEM" AND LIKENS NICOTINE TO
ORGANIC CHEMICALS SUCH AS COCAINE, MORPHINE, QUININE AND ATROPINE. THE DOCUMENT
ALSO STATES THAT "NICOTINE IS USED TO CHANGE PSYCHOLOGICAL STATES LEADING TO
ENHANCED MENTAL PERFORMANCE AND RELAXATION."
32. IF NICOTINE IS LIKENED TO THESE OTHER DRUGS, WHICH ARE ADDICTIVE, THEN
WOULDN'T NICOTINE ALSO BE ADDICTIVE?
• DOCUMENT CITED IN THE WSJ DOES NOT STATE PM USA'S VIEWS ON NICOTinE
OR THE NATURE OF cIGARETTE SMOKING. ~ .... -- " ~,F';'--~-
-- "~J
~CE iN THE DOCUMENT. (~
• IN THE COMPANY'S VIEW, THERE IS NO SINGLE ANSWER TO THE QUESTION OF WNY
PEOPLE SMOKE. NICOTINE IS OBVIOUSLY PART OF THE SMOKING EXPERIENCE,
BUT WE DO NOT BELIEVE IT ACCURATE TO SAY--NOR DOES THE DOCUMENT
STATE--- THAT NICOTINE IS "ADDICTIVE."
• FROM TIME TO TIME OVER THE YEARS, SOME PM USA EMPLOYEES HAVE
,
HYPOTHESIZED OR STATED THAT PEOPLE SMOKE PRIMARILY FOR THE
PHARMACOLOGICAL EFFECTS OF NICOTINE. THAT IS NOT THE SAME AS SAYING
THAT NICOTINE IS "ADDICTIVE."
18
33.
DOESN't" THIS SHOW THAT PM CONSIDERS NICOTINE IN CIGARETTES TO BE A "DRUG"
AND THAT IT THEREFORE SHOULD BE REGULATED BY THE FDA?
~ ,,~,~,1
• ~, THE COMPANY MADE A DETAILED SUBMISSION
ON
"ADDICTION"
AND
WHY PEOPLE SMOKE TO THE DRUG ABUSE ADVISORY COMMITTEE OF THE FDA.
• THE SUBMISSION SHOWS THAT PHILIP MORRIS ACKNOWLEDGES THAT NICOTIN
HAS PHARMACOLOGICAL EFFECTS AND EXPLAINS WHY IT IS INCORRECT TO
SUCH EFFECTS WITH "ADDICTION." THE MILD PHARMACOLOGICAL EFFECTS
NICOTINE ARE MUCH THE SAME AS THE EFFECTS OF NATURALLY
COMPOUNDS IN MANY PRODUCTS SUCH AS CAFFEINE AND SUGAR. THIS DOI NOT
MEAN THAT THOSE SUBSTANCES ARE "ADDICTIVE" OR THAT THEIR CONS
=TION
IS INVOLUNTARYmAND CERTAINLY CANNOT BE THE BASIS FOR FDA RE(
• WHILE SOME AUTHORS MAY VIEW NICOTINE AS THE SOLE OR PRIMAF
SMOKING, THE SUBMISSION EXPLAINS THAT PEOPLE DO IN
REASONS OTHER THAN NICOTINE.
:~SON FOR
FOR MANY
19
SIITUATION ANALYSIS / EXECUTIVE SUMMARY: IN NOVEMBER, CBS'S LAWYERS
ORDERED THE NEWS PROGRAM "60 MINUTES" NOT TO BROADCAST ITS INTERVIEWS WITH A
FORMER TOBACCO EXECUTIVE THAT WERE PART OF ITS SEGMENT ON THE TOBACCO
INDUSTRY FOR THE NOVEMBER 12 SHOW. "/'HEDA/LYNEWS LATER REVEALED THE TOBACCO
EXECUTIVE TO BE JEFFREY WIGA'ND, FORMER VICE PRESIDENT OF RESEARCH AND
DEVELOPMENT AT BROWN & WILLIAMSON TOBACCO COMPANY. EVEN THOUGH WIGAND'S
IDENTITY WOULD NOT HAVE BEEN REVEALED ON THE PROGRAM, CBS MADE THE DECISION
BECAUSE THE INTERVIEW WOULD VIOLATE THE AGREEMENT WIGAND HAD WITH B&W. THE
LAWYERS BELIEVED THAT CBS MIGHT BE HELD LEGALLY RESPONSIBLE FOR "TORTIOUS
INTERFERENCE." TORTIOUS INTERFERENCE OCCURS WHEN PERSON A OR COMPANY A
IMPROPERLY INTERFERES WITH A CONTRACT BETWEEN B AND C. CBS'S LAWYERS BELIEVED
THAT CBS COULD BE ACCUSED OF INDUCING WIGAND TO BREAK HIS AGREEMENT.
34.
ACCORDING TO THE DAILY NEWS, JEFFREY WIGAND TOLD~"~0 MINUTES" THAT HE
BELIEVED WILLIAM SANDEFUR, CHAIRMAN AND CEO OF B & W~COMMFI'T'ED PERJURY IN
FRONT OF THE SENATE SUBCOMMITTEE BY SAYING THAT NICOTINE IS NOT ADDICTIVE. IF
THAT IS SO, THEN DID NOT WILLIAM CAMPBELL DO THE SAME?
T-H',N:< THEY, DC, TH TOLu ~- ~ HU] H. YH= PRESENCF_.~iqOT MAKE
CIGARETTES A DRUG OR ~PEOPLE CAN AND DO QUIT
SMOKING.
40 M~ND 90%-d~-THOSE WHO QUIT DID SO
ON TH~-~/~ITHOUT ANY PROFESSIONAL HELP. THIS BEHAVIOR DOES NOT FIT
20
L
L
E
E
E-
YOUTH
35.
WHAT IS PM'S POSITION ON THE ISSUE OF SMOKING BY MINORS?
• IT IS ONE OF OUR CORE BELIEFS THAT SMOKING SHOULD BE AN ADULT CHOICE. WE
DON'T WANT KIDS TO SMOKE AND WE DON'T MARKET OUR CIGARETTES TO KIDS.
• LAST JUNE WE ANNOUNCED A 10-POINT PROGRAM, ACTION AGAINST ACCESS
(AAA), THE GOAL OF WHICH IS A RETAIL ENVIRONMENT WHERE MINORS CANNOT
PURCHASE CIGARETTES.
• AS PART OF THE AAA INITIATIVE, WE STOPPED SAMPLING FREE CIGARETTES,
STOPPED SENDING CIGAREI-FES THROUGH THE MAIL, PUT THE WORDS "UNDERAGE
SALE PROHIBITED" ON ALL OF OUR PACKS AND CARTONS IN THE U.S., AND
CREATED A SYSTEM WHEREBY WE WILL FINANCIALLY REWARD RETAILERS WHO
COMPLY WITH STATE MINIMUM AGE LAWS AND PENALIZE RETAILERS, ON AN
INCREMENTAL BASIS, WHO ARE FINED OR CONVICTED FOR VIOLATING THOSE LAWS.
• PARTICIPATE IN THE COALITION FOR RESPONSIBLE RETAILING'S "WE CARD"
PROGRAM. COALITION IPROVlDES RETAILERS WITH SIGNAGE, EDUCATION AND
INFORMATIONAL MATERIALS TO HELP THEM OBEY MINIMUM AGE LAWS. "WE CARD"
IS A NATURAL SUCCESSOR TO PM USA'S "ASK FIRSTmlT'S THE LAW" RETAIL
EDUCATION PROGRAM.
WE SUPPORT STRICT ENFORCEMENT OF STATE LAWS MAKING IT ILLEGAL TO SELL
CIGARETTES TO MINORS AND WORK WITH O_THERS TO PURSUE REASONABLE
STATE LAWS THAT WILL INSURE THAT MINORS DO NOT HAVE ACCESS TO
CIGARETFES.
NO. AS LO/4Q"~,,~ .~,~,"'~ ^ ~-=~,.,, .- ?.RE LEGAl, A CERTAIN PERCENTAGE OF ADULTS IS
GOING TO CHOOSE TO SMOKE. WE COMPETE FOR THAT ADULT MARKET ....
21
O~
38.
39.
P~E.~!T 'J.~T'.C~ ~:; YOUTH S.M~!.NP- ~ AN A~N~ .THE GENE~L TREND IN
YO~ SMOKING OVER ~ PAST ~O DECADES IS S~RPLY ~O~.
PM'S WORLDWIDE POLICY IS TO ENSURE THAT OUR CIGAR~ES ARE SOLD AND
~RKE TO ADULTS ONLY.
WE ARE CONSTA~Y DEFINING AND EXPANDING INITIATIVES ~ICH ADDRE~ ~E
ISSUES OF YO~ ACCESS INTERNATIONA~Y. IN ~CH CASE, ~E PR~RAMS ARE
DEVELOPED IN CONCERT WITH GOVERNMENT, HEALTH AUTHORITIES, THE
DISTRIBUTION TRADE AND THE LOCAL INDUSTRY. ALTHOUGH THE PR~RAMS ~Y
DIFFER IN D~AIL FROM MARK~ TO ~RK~, THE ARE ALL DESIGNED TO ACHIEVE
~E SAME RESULT--T~T CIGAR~ES BE SOLD AND ~RKEED ONLY TO ADULTS.
WILL PMI ALSO PUT LABELING ON ITS PRODUCTS (LIKE PM USA) INDICATING SALES
PROHIBITED TO YOUTH? i
[] PM'S WORLDWIDE POLICY IS TO ENSURE THAT OUR CIGARETTES ARE SOLD AND
MARKET TO ADULTS ONLY.
[] TNE ViABiLiTY OF FOLLOWING P't~N~IVE ON A BROAD-BASED
INTERNATIONAL SCALE REQUIRES FURTHER STUDY. ANY DECISION TO CHANGE THE
//~T-~O'~L~R PACKAGING REQUIRES A COMPREHENSIVE REVIEW OF THE MANY
(/ DIFFERENT LAWS AND REGULATIONS WHICH GOVERN THE MORE THAN 180
"-~ WE OPERATE.
[] PM COMPLIES WITH ALL APPLICABLE POLICIES AND LAWS.
22
40. WHAT IS PM'S POSITION ON SMOKING BANS AND RESTRICTIONS IN PUBLIC AND THE
WORKPLACE.'?
• WE OPPOSE SMOKING BANS. WE FAVOR SMOKING POLICIES THAT PROVIDE
ACCOMMODATION FOR BOTH NON-SMOKERS AND SMOKERS IN PUBLIC AND THE
WORKPLACE, IN SEPARATE AREAS WHERE NECESSARY.
• WE STARTED THE ACCOMMODATION PROGRAM TO HELP BUSINESSES SERVING
THE PUBLIC ACCOMMODATE BOTH THEIR SMOKING AND NON-SMOKING
CUSTOMERS. TODAY THERE ARE MORE THAN 25,000 ESTABLISHMENTS AROUND
THE COUNTRY PARTICIPATING IN THE ACCOMMODATION PROGRAM.
• LARGE MAJORITY OF AMERICANS AGREE WITH US. RECENT CNN/USA TODAY
POLL FOUND THAT 61% OF RESPONDENTS FAVORED SMOKING SECTIONS IN
RESTAURANTS AND 78% FAVORED ACCOMMODATION IN HOTELS AND MOTELS.
• WE BELIEVE INDIVIDUAL BUSINESSES AND EMPLOYERS SHOULD HAVE THE
FREEDOM TO DETERMINE THE SMOKING POLICIES THAT WORK BEST FOR THEM,
THEIR CUSTOMERS AND/OR EMPLOYEES.
• TECHNOLOGYmNOT SMOKING BANS mMAY BE THE ANSWER TO THE INDOOR AIR
QUALITY PROBLEM. STATE-OF-THE-ART VENTILATION AND FILTRATION SYSTEMS
THAT CORRESPOND TO THE INDOOR AIR QUALITY STANDARD SET BY THE AMERICAN
SOCIETY OF HEATING, REFRIGERATION AND AIR CONDITIONING ENGINEERS CAN
REMOVE 95% OF PARTICULATE MATTER IN THE AIR, INCLUDING TOBACCO SMOKE.
23
41. WHAT ARE YOU DOING TO ADDRESS THE INCREASING NUMBER OF SMOKING BANS IN THE
U.S.?
• WE LAUNCHED AND CONTINUE TO EXPAND THE ACCOMMODATION PROGRAM,
WHICH PROVIDES HOTEL AND RESTAURANT OWNERS, STORE OWNERS, SHOPPING
MALL MANAGEMENT AND OTHER DECISION MAKERS WITH A REASONABLE
ALTERNATIVE TO SMOKING BANS.
• WE PLAN TO PROMOTE THE PROGRAM HEAVILY IN MAJOR MARKETS AROUND THE
COUNTRY, INCLUDING NEW YORK STATE, AND ATLANTA IN CONJUNCTION WITH THE
OLYMPICS.
[] WE INFORM ACTIVIST SMOKERS THROUGH A VARIETY OF CHANNELS INCLUDING OUR
SMOKERS ADVOCATE.AND SMOKERS CAUCUS NEWS LETTERS, WHEN
PROPOSALS TO BAN SMOKING ARISE.
• WE HAVE A VERY ACTIVE GOVERNMENT AFFAIRS FIELD STAFF WHO REPRESENT
OUR INTERESTS TO STATE LEGISLATURES AND LOCAL GOVERNING BODIES.
42. WHAT IS PM'S POSITION ON THE BAN PASSED LAST YEAR BY THE NEW YORK CITY
COUNCIL AND SIGNED BY MAYOR GIULIANI?
• WE OPPOSED THE BAN AS EXCESSIVE, UNNECESSARY AND ECONOMICALLY
HARMFUL TO THE CITY, AS DID SEVERAL OTHER BUSINESS ORGANIZATIONS IN NEW
YORK, INCLUDING THE HOTEL/MOTEL, RESTAURANT AND TOURIST INDUSTRIES.
• A SURVEY TAKEN 30 DAYS AFTER THE NEW RULES WENT INTO EFFECT SHOWED
THAT MORE THAN HALF OF 209 RESTAURANTS SAMPLED SAID THE SMOKING BAN
WAS BAD FOR BUSINESS. 41% REPORTED LOWER RECEIPTS FOR THE MONTH,
WITH 52% REPORTING LOSSES OF 15% OR MORE.
• A STORY IN THE NEW YORK TIMES INDICATED THAT RESTAURATEURS CONTINUE TO
OPPOSE THIS LAW. AN OFFICIAL OF THE NEW YORK STATE RESTAURANT
ASSOCIATION POINTED OUT THAT RESTAURATEURS DO NOT NEED A LAW TO TELL
THEM TO ACCOMMODATE NON-SMOKERS WHO ARE A ANNOYED BY TOBACCO
SMOKE.
24
43.
WILL PM MOVE ITS HEADQUARTERS OUT OF NEW YORK CITY IN RESPONSE TO THE CFFY
SMOKING LAW?
[] WE HAVE NO FIXED PLANS TO RELOCATE OUR CORPORATE HEADQUARTERS.
[] PM HAS ALWAYS BEEN PROUD TO BE A GOOD CORPORATE CITIZEN OF NEW YORK.
WE EMPLOY MORE THAN 1,000 PEOPLE IN NYC AND CONTRIBUTE MORE THAN
$[CHECK] MILLION TO NEW YORK CITY ARTS, EDUCATIONAL AND CIVIC
ORGANIZATIONS.
44.
WHY IS PM BUILDING SMOKING LOUNGES IN AIRPORTS?
[] WE ARE NOT BUILDING SMOKING LOUNGES IN AIRPORTS.
[] IN ATLANTA, WE TOOK EXISTING DOLLARS THAT WERE USED TO PAY FOR
ADVERTISING SPACE IN VARIOUS LOCATIONS AROUND THE AIRPORT AND USED
THOSE DOLLARS TO PAY FOR EXCLUSIVE ADVERTISING SPACE IN THE SMOKING
LOUNGES AND HELP SUBSIDIZE THEIR CONSTRUCTION BY THE CITY.
[] IN DENVER, WE MATCHED UP A VENTILATION FILTER MANUFACTURER WITH
HOST/MARIOTT, WHICH OPERATES A RESTAURANT/BAR AT THE AIRPORT. THEY,
INDEPENDENTLY OF PM, AGREED TO A DEAL WHERE THE FILTER MANUFACTURER
PROVIDES ITS FILTERS FREE TO HOST/MARIOTT ON A TRIAL/DEMONSTRATION
BASIS, AND THE AIRPORT HAS AGREED TO ALLOW SMOKING IN THE BAR WITH THE
ADDITIONAL FILTERS. THERE IS NO PM INVOLVEMENT IN THIS ARRANGEMENT.
25
45.
WHAT IS PHILIP MORRIS DOING TO PREVENT DISCRIMINATION AGAINST SMOKERS?
• THE ACCOMMODATION PROGRAM PROMOTES ACCOMMODATION FOR BOTH
SMOKERS AND NON-SMOKERS AND DISCOURAGES SMOKER DISCRIMINATION IN
THOUSANDS OF RESTAURANTS, HOTELS, BOWLING ALLEYS AND OTHER
BUSINESSES SERVING THE PUBLIC.
• PART OF A BROADLY BASED COALITION THAT HAS SUPPORTED THE PASSAGE OF
PRIVACY LEGISLATION AT THE STATE LEVEL. THAT WORK HAS PAID OFF. TODAY,
29 STATES, INCLUDING THE DISTRICT OF COLUMBIA, HAVE LAWS WHICH PREVENT
EMPLOYERS FROM DISCRIMINATING AGAINST SMOKERS FOR THE CHOICE OF
SMOKING AWAY FROM THE WORKPLACE.
TOBACCO PROCESSING AND CIGARETTE DESIGN
46. DO CIGARETTE MANUFACTURERS ENHANCE NICOTINE LEVELS IN "RECONSTITUTED
LEAF?"
• NO. RECONSTITUTED TOBACCO LEAF ACTUALLY HAS LESS NICOTINE THAN
NORMALLY OCCURS IN TOBACCO LEAVES. MOREOVER, THE RECONSTITUTED
TOBACCO PROCESS ITSELF RESULTS IN LESS NICOTINE IN THE FINAL
RECONSTITUTED TOBACCO THAN EXISTED IN THE RAW MATERIALS AT THE
BEGINNING OF THE PROCESS.
• IN ORDER TO UTILIZE AS MUCH OF THE TOBACCO PLANT AS POSSIBLE, STEMS AND
SMALL TOBACCO PARTICLES ARE COMBINED TO FORM SO-CALLED
RECONSTITUTED LEAF (RL). TO MAKE RL, THE FLAVORFUL AND AROMATIC PARTS
OF THE TOBACCO, INCLUDING NICOTINE, ARE FIRST REMOVED IN ORDER TO FORM A
TYPE OF FIBROUS, FLAVORLESS "PAPER." THESE COMPONENTS ARE THEN ADDED
BACK IN. THIS PROCESS RESULTS IN AN OVERALL LOSS OF THE COMPONENTS
(INCLUDING NICOTINE) THAT CONTRIBUTE TO TOBACCO'S UNIQUE TASTE AND
AROMA.
26
h
47.
WHAT IS "EXPANDED" TOBACCO?
• EXPANDED TOBACCO IS SIMPLY TOBACCO THAT HAS BEEN "ENLARGED" TO TAKE
UP MORE SPACE, MUCH LIKE "PUFFED" RICE OR WHEAT BREAKFAST CEREALS.
EXPANDED TOBACCO INCREASES THE "FILLING POWER" OF CIGARETTES. THE
PROCESSES INVOLVED IN MAKING EXPANDED TOBACCO RESULT IN A REDUCTION IN
NICOTINE CONTENT.
48.
IS NICOTINE ADDED TO CIGARETTES AS A "FLAVORING INGREDIENT?."
• PM DOES NOT ADD NICOTINE TO ITS CIGAREq-FES AT ANY
POINT IN THE
MANUFACTURING PROCESS.
HOWEVER, A SMALL AMOUNT OF NICOTINE SULFATE IS ADDED TO ETHYL ALCOHOL
(A SOLVENT FOR CERTAIN CIGAREqq'E FLAVORING INGREDIENTS) AS REQUIRED BY
REGULATIONS OF THE BUREAU OF ALCOHOL, TOBACCO AND FIREARMS. THIS
PROCESS RENDERS THE ETHYL ALCOHOL DENATURED (I.E., UNDRINKABLE). THE
MINUSCULE AMOUNT OF NICOTINE CONTRIBUTED BY THIS PROCESS IS TOO SMALL
TO BE DETECTED BY STANDAR-~) ANALYTICAL METHODS.
ALZHEIMER'S DISEASE
49. THERE ARE SOME STUDIES INDICATING THAT NICOTINE IS BENEFICIAL IN PREVENTING OR
AMELIORATING THE EFFECTS OF ALZHEIMER'S DISEASE. IS PM DOING ANY RESEARCH IN
THIS AREA?
U WE FUND RESEARCH AT CASE WESTERN RESERVE UNIV., CLEVELAND, OHIO.
• ALL WE KNOW ABOUT THE EFFECT CIGARETTE SMOKING HAS ON ALZHEIMER'S
DISEASE IS THAT WHICH WE HAVE SEEN OR READ FROM THE PUBLIC RECORD.
50. ISN T IT TRUE THAT THE TO/BACCO INDUSTRY HAS THE ABILITY TO MANUFACTURE A "FIRE-
SAFE" CIGARETTE, BUT P~FUSES TO DO SO BECAUSE OF POSSIBLE ADVERSE PRODUCT
LIABILITY CONSEQUENCES?
! Ve - _ _
• NO. PM DOES OT N:C;" HAVE,/NC~:~ i~{~ ,, E.-~"~R,, ;I.~D, THE GAPACITY TO
~ ~144~F~6~klli~ "FIRE-SAFE" CIGARETTE.
• THERE IS NO RELIABLE TEST OR STANDARD TO DETERMINE WHAT IS A "FIRE-SAFE"
CIGARETTE.
51.
WHAT ABOUT THE DOCUMENTS MIKE WALLACE PRODUCED ON "60 MINUTES" THAT
ALLEGEDLY SUPPORT HIS CLAIMS TO THE CONTRARY?
• THOSE DOCUMENTS WERE TAKEN COMPLETELY OUT OF THE CONTEXT, OF A
RESEARCH PROGRAM IN WHICH WE WERE ENGAGED FOR SEVERAL YEARS.
52.
WHAT IS PM USA DOING TO PRODUCE A COMMERCIALLY MARKETABLE "FIRE-SAFE"
CIGARETTE OR AT LEAST A CIGARETTE WITH REDUCED IGNITION PROPENSITY?
IN 1990, CONGRESS INSTRUCTED THE CONSUMER PRODUCT SAFETY
COMMISSION (CPSC) TO PROVIDE A REPORT ON WHETHER A COMMERCIALLY
FEASIBLE "FIRE-SAFE" CIGARETTE COULD BE DEVELOPED.
PM USA, AS WELL AS OTHER MEMBERS OF THE INDUSTRY, PARTICIPATED IN THE
TECHNICAL ADVISORY GROUP TO THE CPSC THAT DID THE FEASIBILITY STUDY.
CPSC HAS SUBMITTED ITS REPORT TO CONGRESS.
• OUR R&D DEPARTMENT CONTINUES TO WORK ON REDUCING THE IGNITION
PROPENSITY OF CIGARETTES.
• WE CONTINUE TO PURSUE IDEAS THAT WE HOPE WILL LEAD TO MEANINGFUL
REDUCTIONS IN IGNITION PROPENSITY IN COMMERCIALLY FEASIBLE CIGARE'FrEs.
28
53.
HOW DO YOU RESPOND TO THE CLAIMS THAT VIRGINIA SLIMS, OR ANY EXTENSION OF
THE VIRGINIA SLIMS BRAND FAMILY, ARE "FIRE-SAFE?"
• PM DOES NOT YET HAVE THE ABILITY TO MANUFACTURE A COMMERCIALLY
FEASIBLE "FIRE-SAFE" CIGARETTE.
54.
55.
JEFFREY WlGAND, FORMER B & W DIRECTOR OF RESEARCH AND DEVELOPMENT,
RECENTLY TESTIFIED IN A MA LAWSUIT AGAINST PHILIP MORRIS IN WHICH THE PLAINTIFF
ALLEGED THAT A FIRE STARTED BY A CIGARETTE WAS RESPONSIBLE FOR KILLING
SEVERAL PEOPLE. IS IT TRUE THAT THE "TECHNOLOGY TO DEVELOP A CIGARETTE WITH
SIGNIFICANTLY REDUCED IGNITION PROPENSITY BY REDUCING TOBACCO PACKING
DENSITY AND/OR PAPER POROSITY AND/OR CIRCUMFERENCE HAS BEEN AVAILABLE FOR
AT LEAST 30 YEARS" AS WlGAND STATED IN HIS DEPOSITION?
• PHILIP MORRIS HAS NOT BEEN ABLE TO OVERCOME THE DIFFICULTIES OF
REALISTICALLY REDUCING IGNITION PROPENSITY AND OBTAINING ACCEPTABLE
CONSTITUENT DELIVERIES AND SUBJECTIVE TASTE.
• WE CONTINUE TO PURSUE IDEAS THAT WE HOPE WILL LEAD TO MEANINGFUL
REDUCTIONS IN IGNITION PROPENSITY.
AREN'T CIGARETTES A MAJOR CAUSE OF FIRES?
• NO. IN 1988, A U.S. FIRE ADMINISTRATION SYMPOSIUM ON "OVERCOMING
BARRIERS TO PUBLIC FIRE EDUCATION" RANKED LACK OF "FIRE-SAFE" CIGAREI-FE
LEGISLATION 19TH ON LIST OF 21 BARRIERS TO FIRE SAFETY.
• KEY IS FIRE EDUCATION. JAPAN AND GERMANY HAVE FAR FEWER FIRES PER
CAPITA THAN THE U.S., DESPITE THE LARGER PERCENTAGE OF PEOPLE WHO
SMOKE IN THOSE COUNTRIES.
29
N
o
56.
WHAT IS PM'S POSITION ON LEGISLATION THAT WOULD MANDATE THE DEVELOPMENT
OF A "FIRE-SAFE" CIGARETTE?
• ADVANCES IN TECHNOLOGY CANNOT BE LEGISLATED. LAWS MANDATING "FIRE-
SAFE" CIGARETTES MUST CONSIDER BOTH TECHNICAL AND COMMERCIAL
FEASIBILITY OF SUCH PRODUCTS.
~HER TOBACCO COMPAN~ PATENTS FOR SEVERg~
• ~T-~-~4~~E~ELOPMENTS IN THE "FIRE-SAPI:" AREA:THOSE PATI:NT£-~:
PUBLICLY AVAILABLE THHOUGH THE U.S. PATENT O~ --------'
WE HAVE YET TO DEVELOP A "FIRE-SAFE" CIGARE'I-FE THAT TASTES GOOD AND
WOULD BE ACCEPTABLE TO CONSUMERS.
57. ISN'T THERE AN AGREEMENT AMONG THE TOBACCO COMPANIES NOT TO DEVELOP A
"FIRE-SAFE" CIGAREFFE?
• NO. TOBACCO INDUSTRY IS INTENSELY COMPETITIVE AND DRIVEN BY CONSUMER
DEMAND.
SMOKE" CIGARETTE. BECAUSE.Z~CCO WAS HEATED RATHER THAN
BURNED, I ED BY SOME AS "FIRE-SAFE."
~WAS UNACCEPTABLE TO CONSUMERS AND QUICKLY WITHDRAWN FROM
L T', ',E MARKET.
58. WOULD YOU COMMENT ON THE JUSTICE DEPARTMENT INVESTIGATION INTO THE
ALLEGATION THAT THE CIGARETTE MANUFACTURER'S ARE CONSPIRING TO KEEP A "FIRE-
SAFE" CIGARETTE OFF THE MARKET?
• PM RECEIVED A CIVIL INVESTIGATION DEMAND FROM THE ANTITRUST DIVISION OF
THE US DEPARTMENT OF JUSTICE IN AN INVESTIGATION OF SUCH AN ALLEGATION.
PM HAS NOT ENGAGED IN SUCH ACTIVITY EITHER WITH OTHERS OR ALONE AND IS
COOPERATING WITH THE JUSTICE DEPARTMENT.
N
30
L
L_
F.,_-
L
L__
E-
"DATE CODING"
59. WHY DOESN'T PM PRINT THE DATE OF MANUFACTURE OR AN "EXPIRATION" DATE ON ITS
CIGAREq-FE PACKS?
~,,~~[ _.1.....-- F'M OPPOses "DATE ....... " "'" ^ ~"-' ~ E ~^ "'~" DECAUSE WE
DOi,,i'T BELIEVE
SUCH iNFORMATiON WOULD BF_ OF ANY BENEFIT O~SUMER.
60. IF FOOD PACKAGES ARE DATE CODED, WHY NOT CIGARETTE PACKS?
• CIGARETTES ARE NOT MANUFACTURED OR CONSUMED AS A FOOD PRODUCT.
CIGARETTES DO NOT SPOIL ON THE SHELF. TOBACCO IS SPECIFICALLY AGED FOR
UP TO TWO YEARS BEFORE IT IS USED IN CIGARE-FI'E MANUFACTURING.
• CIGARE3-FES WON'T STAY FRESH FOREVER, BUT THEY CERTAINLY DON'T HAVE TNE
SHORT SHELF LIFE THAT MAKES DATE CODING APPROPRIATE FOR FOOD
PRODUCTS LIKE MILK AND EGGS.
WARNING LABELS
61. WHY DO YOU PUT ENGLISH LANGUAGE WARNING LABELS ON YOUR CIGARETTE PACKS IN
NON-ENGLISH SPEAKING COUNTRIES?
• OVER 95% OF THE WORLD'S POPULATION LIVES IN COUNTRIES WHICH HAVE
NATIONAL REGULATIONS GOVERNING CIGARETTE PRODUCT LABELING. PM
VOLUNTARILY PLACES THE U.S. SURGEON GENERAL'S WARNING ON CIGAREFFE
PACKS EXPORTED TO COUNTRIES WHICH DO NOT HAVE GOVERNMENT
REQUIREMENTS TO PLACE HEALTH WARNING LABELS ON CIGARETTES PACKS.
(EXCEPTION IS MONOCCO, WHERE THE LOCAL ~OVERNMENT HAS NOT YeT IMPLEMEN~ ,4
LOCAL WARNING AND HAS REFUSED TO ACCEPT CIGARETTES WITH THE SURGEON GENERAL'S
WARNING.,)
31
PLAIN PACKAGING
62. WHY IS PM RESISTING IDEAS SUCH AS PLAIN PACKAGING TO MAKE CIGAR~FTES LESS
APPEALING TO MINORS?
PLAIN PACKAGING WILL NOT LESSEN CONSUMPTION OR MAKE SMOKING LESS
APPEALING. JUVENILE SMOKING IS DUE TO PEER PRESSURE AND PARENTAL
BEHAVIOR. PLAIN PACKAGING IS AN EXPROPRIATION OF OUR INTELLECTUAL
PROPERTY RIGHTS AND OUR ABILITY TO COMPETE FAIRLY. MOREOVER, IT IS
PUNITIVE TO CONSUMERS AS IT REDUCES THEIR ABILITY TO DISTINGUISH BRAND
TYPES OR BRAND ATTRIBUTES. IT WILL ALSO MAKE SMUGGLED CIGARETTES WITH
REGULAR PACKAGING MORE ATTRACTIVE AND MAKE COUNTERFEITING EASIER.
F-
PLA;N PAC}~AG;NG ~-~,tlL-IZGAUSE CIGARI~TI ES TO BECOME A COMMODITY, WITH I~ L
~-ONL-Y~3ASiS FOR COMJ~-IIIIr~N #EiNG PH~Cf=, AND W~L RESULT I~CREA~rER~-
6h~FAR~ l l ES, THEREBY MAKING CIGARETTES MORE ACCESSIBLE TO YO .q~i--~"-~ L__
63. STATE-CONTROLLED TOBACCO COMPANIES STILL EXIST IN ITALY, PORTUGAL, AUSTRIA
I"-~
AND SPAIN. ARE ANY LIKELY TO BE PRIVATIZED? WHAT IS PMI'S POSITION?
PRESS REPORTS THAT SPAIN AND PORTUGAL ARE CONSIDERING SELLING SOME
OR ALL OF THEIR STATE INTERESTS. PRIVATIZATION OF THE ITALIAN MONOPOLY IS
LIKELY TO BE DELAYED FOR SOME YEARS.
PM HAS LONG-STANDING RELATIONSHIPS WITH THESE COMPANIES, THE NATURE
AND EXTENT OF WHICH WOULD HAVE TO BE EVALUATED IN LIGHT OF ANY
PRIVATIZATION. F_~
WE COMPETE SUCCESSFULLY IN ALL EU MARKETS AND WILL CONTINUE TO DO SO
IN THE AFTERMATH OF ANY PRIVATIZATION.
32
ARTICLE 2 8
64. WHAT IS ARTICLE 28 AND PM'S POSITION ON IT?
• PM IS A MOVING FORCE BEHIND ARTICLE 28, WHICH IS AN INDUSTRY JOINT EFFORT
TO STABILIZE, PRESERVE AND PROTECT THE MARKET FOR DOMESTIC TOBACCO
GROWERS AGAINST CHEAPER FOREIGN IMPORTS.
• AT THE URGING OF THE TOBACCO INDUSTRY AND OTHERS, THE USTR NEGOTIATED
WITH OTHER COUNTRIES LIMITS ON THE AMOUNT OF TOBACCO IMPORTS
PERMITTED INTO THE U.S.
• THAT EFFORT WAS SUCCESSFUL, AND INDUSTRY IS NOW ENGAGED IN AN EFFORT
TO INSURE THAT TOBACCO MANUFACTURERS RECEIVE IMPORT LICENSES TO HELP
KEEP ORDER IN THE TOBACCO MARKET.
• THAT EFFORT IS ONGOING AT USTR AND ARTICLE 28 CONTINUES TO BE A TOP
PRIORITY FOR PM.
33
DEVELOPING COUNTRIES
65. MANY CRITICS ACCUSE THE COMPANY OF TAKING ADVANTAGE OF UNSUSPECTING
CONSUMERS IN LESSER DEVELOPED COUNTRIES. HOW DOES PM RESPOND TO SUCH
CRITICISMS?
[] WE FOLLOW THE SAME STRICT CODE FOR MARKETING ALL OUR PRODUCTS
AROUND THE WORLD, AND WE ABIDE BY ALL LOCAL REGULATIONS.
[] PEOPLE HAVE BEEN SMOKING OUTSIDE THE U.S. LONGER THAN THERE'S BEEN A
U.S. CIGARETTE MARKET. FOR CENTURIES, TOBACCO HAS BEEN GROWN IN ALL
PARTS OF THE WORLD, AND PEOPLE WERE SMOKING YEARS BEFORE THE FIRST
NORTH AMERICAN TOBACCO PLANTATION IN 1612 (JAMESTOWN).
[] THERE IS A MISPERCEPTION ABOUT THE SIGNIFICANT OF US. EXPORTS IN THE
INTERNATIONAL CIGARETTE TRADE. CURRENTLY, U.S. CIGARETTES EXPORTS
ACCOUNT FOR LESS THAN 4% OF WORLDWIDE CIGARETTE SALES.
A VAST MAJORITY OF THE WORLD'S CIGARETTES ARE PRODUCED BY LOCAL
GOVERNMENT MONOPOLIES.
[] IF U.S. CIGARETTES WERE NOT PRESENT, PEOPLE WOULD STILL SMOKE. THE
ONLY DIFFERENCE WOULD BE THAT THEY WOULD BE SMOKING CIGARETTES MADE
BY THE BRITISH, GERMAN OR SWISS MANUFACTURERS, OR MONOPOLIES SUCH AS
JAPAN, ITALY OR FRANCE. THERE IS SURPLUS PRODUCTION AND ENOUGH
MANUFACTURING CAPACITY BY NON-U.S. MANUFACTURERS TO ENSURE THAT ANY
VOID LEFT BY EXPORTS WOULO BE QUICKLY FILLED.
[] QUESTION IS NOT WHETHER PEOPLE ARE SMOKING, BUT RATHER WHAT THEY ARE
SMOKING.
E-
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34
[-
[-
INTERNATIONAL RAMIFICATIONS OF U.S. ISSUES
66. MUCH IS PUBLICIZED IN THE UoS. ABOUT THE INCREASED LIMITATIONS ON ONE'S
FREEDOM TO SMOKE. IS THIS ISSUE ON THE RISE GLOBALLY. IF SO, IS THERE ANYTHING
TO BE LEARNED FROM THE U.S. EXPERIENCE?
[] WE FEEL THE SITUATION IN THE U.S. DOES NOT REFLECT THE CURRENT OVERALL
INTERNATIONAL ENVIRONMENT IS MORE ACCOMMODATING TO THE RIGHTS OF
SMOKERS.
[] THAT THERE ARE A FEW COUNTRIES WHERE THE ENVIRONMENT IS EVEN MORE
HOSTILE THAN IN THE U.S. (E.G. SINGAPORE AND CANADA). EVEN SO, WE
CONTINUE TO DO BUSINESS PROFITABLY AND WILL CONTINUE TO VIGOROUSLY
DEFEND THE RIGHTS OF OUR CONSUMERS.
67.
HAS THERE BEEN ANY IMPACT ON OUR INTERNATIONAL EXPORT BUSINESS DUE TO THE
HOSTILE ATMOSPHERE IN THE U.S.
[] THE RECORD YEAR WE'VE HAD IN INTERNATIONAL SPEAKS FOR ITSELF. OUR
EXPORT VOLUME IN 1995 REACHED TK BILLION UNITS, UP TK% FROM 1994.
68,
DOES PM HAVE ANY CRITICAL LAW SUITS PENDING OUTSIDE THE U,S.? IF SO, WHERE
AND WHAT ARE THEY?
[] THERE ARE NO LAWSUITS FOR WHICH WE CAN FORESEE ANY MATERIAL LIABILITY IN
THE NEAR FUTURE.
35
69. WHERE IS TOBACCO LIABILITY FORESEEN TO BE MOVING INTERNATIONALLY?
• EVERY COUNTRY HAS DIFFERENT LAWS AND REGULATIONS CONCERNING LIABILITY.
......... ~U~ ENVIRONMENT WE ....... SEEN '~' THE ' ~ ~ .... ~"~"~ AND
D=~=~=~,,,- OF THE OVERALL iNTERNATIONAL E~, .~\qRO.NMENT.--~'" --~
WE DO NOT SEE NEAR THE LEVEL OF LITIGATION ACTIVITY OUTSIDE THE U.S. THE
U.S. LEGAL SYSTEM DIFFERS FROM OTHERS IN SOME IMPORTANT ASPECTS:
-- CONTINGENCY FEE SYSTEMS GENERALLY DO NOT EXIST OUTSIDE THE U.S.
-- ALMOST NOWHERE ARE PUNITIVE DAMAGES AWARDED TO THE EXTENp THEY
ARE IN THE U.S. SYSTEM
Sou
RCING
IN MANY JURISDICTIONS, THE LOSING
LITIGATION COSTS OF BOTH PARTIES.
PARTY IS RESPONSIBLE FOR THE
70.
PRESENTLY PM IS A SIGNIFICANT CONTRIBUTOR TO THE U.S. TRADING ACCOUNT
THROUGH ITS LARGE EXPORT BASE. WITH THE CONTINUING AGGRESSIVE POSITIONS
TAKEN IN THE U.S. TOWARD THE CIGARETTE INDUSTRY, IS THERE NOT A RATIONALE FOR
MOVING SOURCING OFFSHORE, SAY TO EUROPE OR A LESS HOSTILE CLIMATE?
• AS A U.S. CORPORATION, WE HAVE A STRONG COMMITMENT TO THE U,S.
ECONOMY AND U.S. WORKERS.
[] WE PREFER TO EXPORT FROM THE U.S. WHENEVER POSSIBLE. WE INVESTED
BILLIONS OF DOLLARS IN OUR U.S. FACILITIES , WHICH ARE AMONG THE MOST
EFFICIENT IN THE WORLD. IT MAKES SENSE FOR US TO UTILIZE THE FACILITIES AND
MANPOWER AVAILABLE IN THE U.S. TO THEIR MAXIMUM POTENTIAL, AND WE DO SO.
WE MARKET MAINLY US.-HERITAGE, AMERICAN-BLENDED BRANDS, SO "MADE IN
THE U.S." IS AN IMPORTANT COMPONENT OF OUR PRODUCT OFFERS.
THERE ARE COUNTIES (E.G. TURKEY AND THE EU COUNTRIES) WHICH HAVE HIGH
71.
DUTIES AND OTHER BARRIERS WHICH MAKE U.S. SOURCING NOT REALLY VIABLE
AND THERE WE MANUFACTURE LOCALLY.
PMI'S 1995 U.S. EXPORT VOLUMES ARE AT RECORD LEVELS. DOES PMI EXPECT
EXPORT VOLUMES FROM THE U.S. TO CONTINUE TO INCREASE? WHY?
• YES, AS NEW MARKETS OPEN AND OUR CIGARE~-TES BECOME MORE POPULAR.
36
• OUR TOTAL INTERNATIONAL UNIT VOLUME HAS GROWN AT A COMPOUND ANNUAL
GROWTH RATE OF TK% OVER THE PAST 5 YEARS. OUR EXPORT VOLUME GROW AT
A COMPARABLE GROWTH RATE OVER THE SAME PERIOD. EXPORTS ARE AN
INTEGRAL PART OF OUR BUSINESS WHICH WE ACTIVELY SEEK AND CONSEQUENTLY
EXPECT WILL CONTINUE TO GROW NICELY.
• IN TERMS OF INTERNATIONAL TRADE, AMERICAN CIGARE-1-FES ARE WINNERS. THEY
ARE THE WORLD STANDARD OF QUALITY AND ARE EXTREMELY SUCCESSFUL IN
WORLD MARKETS.
• WE ALSO EXPORT HUGE QUANTITIES OF U.S. LEAF FOR INCLUSION IN OUR
PRODUCTS WHEN THEY'RE MANUFACTURED OVERSEAS, AND OUR NEED FOR U.S.
LEAF WILL NOT DIMINISH.
• U.S. TOBACCO REMAINS THE MAJOR COMPONENT OF OUR PRODUCTS. AS OUR
BUSINESSES HAS GROWN, SO HAS OUR EXPORTS AND OUR OVERALL USE OF U.S.
TOBACCO.
CROP PROTECTION AGENTS
72. WHAT ARE CROP PROTECTION AGENTS?
CPAS INCLUDE MATERIALS APPLIED TO PLANTS OR SOIL FOR THE CONTROL OF
PESTS AND DISEASES AND FOR THE REGULATION OF PLANT GROWTH. CPAS ARE
WIDELY USED IN THE PROTECTION OF AGRICULTURAL CROPS, INCLUDING TOBACCO.
THE USE OF CPA IS STRICTLY REGULATED BY THE U.S. GOVERNMENT.
N
• 37
73.
ARE CPAS DANGEROUS?
•
NO PERSUASIVE SCIENTIFIC STUDIES WHICH ESTABLISH THAT THE SMALL
AMOUNTS OF CPA RESIDUES THAT HAVE BEEN DETECTED IN TOBACCO PRODUCTS
CAUSE DISEASE IN SMOKERS.
TECHNOLOGICAL ADVANCES MAKE IT POSSIBLE TO DETECT EXTREMELY SMALL
QUANTITIES OF CPAS IN FOODS AND OTHER PRODUCTS. SIMPLY BECAUSE IT IS
POSSIBLE TO DETECT SMALL AMOUNTS OF A SUBSTANCE DOES NOT ESTABLISH
THAT IT IS HAZARDOUS.
TOBACCO INDUSTRY IS COMMITTED TO THE SAFEST AND MOST EFFECTIVE USE OF
CPAS IN THE CULTIVATION OF TOBACCO. IT HAS DEMONSTRATED THAT
COMMITMENT BY ADHERING TO ITS OWN VOLUNTARY GUIDELINES AS WELL AS
COMPLYING WITH NATIONAL AND INTERNATIONAL REGULATIONS AND STANDARDS.
NATIONAL SMOKERS ALLIANCE
74. WHAT IS THE NATIONAL SMOKERS ALLIANCE?
• NSA IS A NON-PROFIT NATIONAL ORGANIZATION MADE UP OF A BROAD-SECTION OF
AMERICAN CITIZENS WHO SUPPORT SMOKERS' RIGHTS. NSA MEMBERS ARE
POLITICALLY ACTIVE ADULTS WHO SUPPORT FREEDOM OF CHOICE AND ARE NOT
WILLING TO LET SMOKERS BE TREATED AS SECOND-CLASS CITIZENS.
L
L
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L
[_
[
[-
[-
38
75.
76.
WAS IT CRF_ATED BY AND IS IT A PART OF PHILIP MORRIS?
• AS A RESULT OF INCREASING RESTRICTIONS ON SMOKING, AS WELL AS MORE AND
MORE DISCUSSION OF DISCRIMINATORY TAXATION, PM RECEIVED A NUMBER OF
LETTERS AND PHONE CALLS FROM OUR CONSUMERS LOOKING FOR A CONSUMER
GROUP TO DEFEND AND PROTECT THEIR RIGHTS, MONITOR LEGISLATIVE ACTIVITY,
PROVIDE INFORMATION, AND REPRESENT SMOKERSmNOT THE TOBACCO
INDUSTRYmWITH THE MEDIA AND ELECTED OFFICIALS.
• PHILIP MORRIS TURNED TO COALITION DEVELOPMENT EXPERTS [BURSON-
MARSTELLER, IF ASKED] TO WORK ON BEHALF OF SMOKERS IN SE'r'FING UP AN
ORGANIZATION THAT WOULD MEET BOTH THE CRITERIA OUR CONSUMERS HAVE
BEEN LOOKING FOR IN A SMOKERS' RIGHTS ORGANIZATION AND THE QUALITIES
THAT HAVE BEEN FOUND IN MOST SUCCESSFUL COALITIONS AND ORGANIZATIONS.
• FOR MORE INFORMATION, TALK WITH THE NSA DIRECTLY, 1-800-224-3322.
HOW MUCH HAS PM SPENT ON NSA?
• WE PROVIDED THE ORGANIZATION WITH A MODERATE DEVELOPMENT GRANT. WE
DON'T PROVIDE FURTHER DETAIL ON THIS KIND OF GRANT SUPPORT.
39
REGULATION/LEGISLATION
TOBA CCO
0 SHA
FDA JURISDICTION
ALLEGATIONS THAT TOBACCO is UNDER-REGULA TED
ASSIST
ADAMHA REORGANIZATION ACT
PURCHASING
TOBACCO PROGRAM
ET5 SMOKING BAN
EU CIGARETTE ADVERTISING BAN
FOOD
~ NUTRITION LABELING LAW
~ FDA ENFORCEMENT
~ FDA USER FEES
~ USDA FOOB SAFETY FUNCTIONS
~ "FOOD SAFETY" ~/DELANEY CLAUSE
~ DOWNSIZINC OR "PACKAGE SHORTING"
~ FOOD INDUSTRY POLICY
PAGE
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16
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19
BEER
~ ADVER TISINC WARNING LECISLATION
~ FEDERAL BUDGET CUTS FOR PREVENTION AND TREATMENT
RISK ASSESSMENT
LOBBYING
TORT REFORM
SOLID WASTE LEGISLATION
BOTTLE BILL LEGISLATION
QUEBEC/CANADA: POST REFERENDUM DEVELOPMENTS
20
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25
REGULATION / LEGISLATION
INDOOR SMOKING BAN PROPOSED
ADMINISTRATION (OSHA)
BY OCCUPATIONAL
S AFETY
AND HEALTH
SITUATION ANALYSIS/EXECUTIVE SUMMARY
• THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION (OSHA), A DIVISION OF THE
US LABOR DEPARTMENT, HAS PROPOSED A RULE WHICH WOULD EFFECTIVELY BAN
RESTAURANTS AND BARS.
• UNDER THE OSHA PROPOSe, L, SMOKING WOULD BE #ERMITTED ONLY IN SPECIALLY
DESIGNED ENCLOSED AREAS WHICH HAVE DIRECT EXHAUST TO THE OUTSIDE AND ARE
• COMPANIES THAT ARE FOUND TO BE IN VIOLATION OF THE SMOKING BAN COULD FACE
FINES AS HIGH AS $70,000 PER VIOLATION.
• IF THE RULE BECOMES FINAL, BUILDING OWNERS WOULD BE GIVEN ANOTHER YEAR TO
COME INTO COMPLIANCE.
• THE PUBLIC'S RESPONSE TO THIS PROPOSED RULE WAS UNPRECEDENTED. OSHA
RECEIVED OVER 105,000 WRITTEN COMMENTS FROM THE PUBLIC, WHICH
OVERWHELMINGLY OPPOSED THE PROPOSED SMOKING RESTRICTIONS.
• OVER 200 REPRESENTATIVES OF THE SMALL BUSINESS COMMUNITY TESTIFIED THAT
THE PROPOSAL WOULD HAVE SEVERE ECONOMIC IMPACT ON SMALL BUSINESS.
• POST-HEARING BRIEFS ARF DUE
• A CONGRESSIONAL RESEARCH SERVICE (CRS) REPORT TITLED "ENVIRONMENTAL
TOBACCO SMOKE AND LUNG CANCER" WAS RELEASED IN NOVEMBER 1995. THE
REPORT ~=I~-}~E~THE VALIDITY OF THE EPA RISK ASSESSMENT ON ETS,
CRITICIZED THE SCIENCE UNDERLYING THE PROPOSED OSHA RULE MAKING AND
REINFORCED PREVtO~S CRS TESTIMONY ON ETS MADE BEFORE CONGRESS LAST
YEAR. SUBSEQUENT/TO/ THE REPORT'S RELEASE, SEVERAL SENATORS WROTE OSHA
REQUESTI ATION OF THE RULE MAKING.
o
HOW ~S p~k~ RESPONDING TO THE WORKPLACE SMOKING BAN PROPOSED BY THE
OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION?
o
WE OPPOSE THE RULE BECAUSE IT IS A DE FACTO NATIONAL BAN.
WE BELIEVE THAT OSHA'S POSITION IS NOT SUPPORTED BY SCIENTIFIC DATA,
RELIES ON A FLAWED ECONOMIC ANALYSIS, AND IS LEGALLY INVALID.
OSHA HELD HEARINGS ON THE PROPOSED RULE FROM SEPTEMBER 1994
THROUGH MID-MARCH 1995. PM AND OTHERS IN THE INDUSTRY ACTIVELY
PARTICIPATED IN THE HEARINGS.
MOST OF THOSE TESTIFYING ON THE PROPOSAL--INDEPENDENT EXPERTS,
BUSINESS OWNERS, UNION REPRESENTATIVES, REPRESENTATIVES QF THE
HOSPITALITY INDUSTRY, TRADE ASSOCIATION REPRESENTATIVES AND INTERESTED
INDIVIDUALS--OPPOSED THE RULE AND SUGGESTED MORE RATIONAL
ALTERNATIVES.
WE HOPE THAT THE AGENCY WILL EVENTUALLY PUT FORWARD A REVISED RULE
THAT IS LESS ONEROUS. THE ENTIRE PROCESS WILL MOST LIKELY NOT REACH
RESOLUTION UNTIL LATE THIS YEAR AT THE EARLIEST.
ON AVERAGE, IT TAKES OSHA APPROXIMATELY 7 YEARS TO PRODUCE A FINAL
SET OF REGULATIONS FROM A PROPOSED RULE.
WHY DIDN'T PM TESTIFY AT THE OSHA HEARING?
• PRESENCE OF TOBACCO LIABILITY PLAINTIFFS' ATTORNEYS, WHOSE REAL
INTEREST IS IN SEEKING MONEY DAMAGES IN PROPOSING THEIR OWN CASES,
ALONG WITH TWO ANTI-TOBACCO ACTIVISTS SITTING ON THE OSHA PANEL~
PRECLUDED A FAIR HEARING ON THE RELEVANT ISSUES AND WOULD HAVE
UNFAIRLY SUBJECTED COMPANY WITNESSES TO HOSTILE AND INVASIVE CROSS°
EXAMINATION ON ISSUES HAVING NOTHING TO DO WITH THE HEARING.
2
TO BAN SMOKING IN JUST ABOUT EVERY INDOOR LOCATIO~BY 10 OR
MORE PEOPLE A WEEK?
• CONGRESSMAN W~ ~t~-'I3~NTI-SMOKING BILL OUT ...... OF
SUB-
COMMITFEE ~~
AS
~~ILL BE SUCCESSFUL IN REINTRODUCING THE BILL NOW THAT HE H
CHAIR POSITION .........
(OSHA) PROPOSED ADOPTION OF REGULATIONS TO
WORKPLACE, INCLUDING RESTAt.J~NTS~N~A~t'~.~7
~-'i~'l~E~z REPORT BY THE CONGRESSIONAL RESEARCH SERVICE~'~,~
INDEPENDENT RESEARCH SERVICE CONGRESS, FOUND THAT IF OSHA HAD
:~RFORMED A "META-ANALYSIS," "IT SEEMS MORE LIKEL Y THAT IT WOULD HAVE
EXPOSURE." WE W'.LL CONT:;:'J: TO =^#T,m,U&TF N THE~. OS,HA REG_.ULATORY
• INDOOR AIR QUALITY NEEDS IMPROVEMENT. THE REAL PROBLEM IS BUILDINGS WITH
POOR VENTILATION SYSTEMS OR POOR VENTILATION SYSTEM MAINTENANCE.
WHERE ADEQUATE VENTILATION EXISTS, POLICIES WHICH ACCOMMODATE
SMOKERS AND NON-SMOKERS ARE THE ANSWER. IF VENTILATION IS INADEQUATE, /
/
~..~ANNING SMOKING WELL NOT PREVENT POOR INDOOR AIR QUALITY. /
"~HE F~)A )N|TIATIVE REGARDING ITS JURISDICTION OVER TOBACCO
AS DRUGS UNDER THE FEDERAL FOOD, DRUG AND COSMETIC ACT
PRODUCTS
SlTUA TION A NAL YSIS/EXECUTIVE SUMMA R Y
• ON AUGUST 10, THE FDA ASSERTED JURISDICTION OVER TOBACCO PRODUCTS.
PRESIDENT CLINTON HELD A CEREMONY IN THE OVAL OFFICE WITH CHILDREN TO
ANNOUNCE A PROPOSAL TO CURB YOUTH SMOKING, FOLLOWED BY A PRESS
CONFERENCE TO ANNOUNCE ACCEPTANCE OF THE FINDINGS THAT NICOTINE IN
CIGARE'R-ES RE DECLARED AN "ADDICTIVE DRUG" AND SUBJECTTO FDA
REGULATION.
• THE REGULATIONS WOULD, AMONG OTHER THINGS:
-- BAN ALL CIGARETTE SALES FROM VENDING MACHINES AND
SELF-SERVICE
DISPLAYS, ALLOWING ONLY SALES BY CLERKS.
m FORBID BRAND SPONSORSHIPS AND USE OF TOBACCO LOGOS ON
PRODUCTS LIKE
ASH TRAYS AND HATS.
m FORBID OUTDOOR ADVERTISING WITHIN 1,000 FEET OF SCHOOLS AND
PLAYGROUNDS.
-- LIMIT CIGARETTE ADVERTISING TO MAGAZINES MEETING FDA CRITERIA OF "ADULT
READERSHIP."
~ REQUIRE THE TOBAOCO INDUSTRY TO PAY $150 MILLION ANNUALLY FOR AN ANTI-
SMOKING CAMPAIGN.
• PM AND THE FOUR MAJOR TOBACCO COMPANIES, ALONG WITH COYNE-BEAHM INC., A
NORTH CAROLINA ADVERTISING AGENCY, FILED SUIT TO STOP THE FDA FROM
PROCEEDING WITH ITS PROPOSED REGULATIONS GOVERNING
CIGARETTES.
ADVERTISING ASSOCIATIONS AS WELL AS NACS AND UST HAVE ALSO FILED SUIT.
~N SUBSTANTIAL-~E-SPRE,~,D PUBLIC ©PPOS~T',O,~4 TO FDA'§'
4
0
WHAT IS PM DOING ABOUT THE FDA ASSERTION OF JURISDICTION OVER CIGARE3~ES AS
"DRUGS" AND "MEDICAL DEVICES?",
• IT IS OUR POSITION THA/~IGARETTES DO NOT FALL UNDER THE JURISDICTION OF
THE FDA. CONGRESS HAS NEVER GRANTED FDA SUCH AUTHORITY.
IF TI tC ,~2,^, ',S SGOO~_oor u(_i~"I=~-PANDIN~
CIGARETTES BECAUSE OF THE NICOTI~E~.J-glGH*NA'TURALLY OCCURS IN TOBACCO,
IT WOULD ALSO ~/YV.E-'TO I~CLUDE COFFEE BECAUSE OF THE CAFFEINE WHICH
• WE BELIEVE THAT THE FDA's REAL AGENDA IS TO RESTRICT OR EVEN BAN THE
SALE OF CIGARETTES TO ADULTS.
TO CALL CIGARETTES A "DRUG" LIKE PENICILLIN OR A "MEDICAL DEVICE" LIKE A
PACEMAKER DEFIES COMMON SENSE AND THE LAW.
5
6. HOW DO YOU RESPOND TO THE FDA'S STATEMENT THAT THERE IS GROWING EVIDENCE
THAT TOBACCO COMPANIES DELIBERATELY MAINTAIN THE LEVEL OF NICOTINE IN
CIGAREq-TES AT",ADDICTI~E" LEVELS? - .,
• T,HIS CUT,q~ObS ALLEQA~ION ~0 DEAD 'Tv'RO~&G ..... I,~
TOBACCO IS NOT "ACDICTI;40" AS EVIDENCED u
HAVE QUIT SMOKING, THE VAST MAJORITY WITHOUT ANY PROFESSIO~H£ELP.
DURING PM'S TOBACCO PROCESSING OR CIGAR.~CANUFAOTURING INCREASES
NICOTINE IN THE TOBACCO ABOVE TH~t~ATURALLY OCCURRING LEVELS.
CONVERSELY, THE MANUFACTURI~;~F~OCESS RESULTS IN LESS NICOTINE IN THE
FINAL PRODUCT THAN EXISTS I~N'THE UNPROCESSED TOBACCO.
/
[] PM's PRODUCTS PROVIDE CONSUMERS WITH A RANGE OF CHOICES IN '"TAR" AND
NICOTINE YIELDS: CONSUMER DEMAND HAS LED OVER THE YEARS TO PRODUCTS
WITH LOWI~R YIELDS OF BOTH '~TAR" AND NICOTINE.
• THF_.O~ERALL NICOTINE YIELD OF CIGARETTES HAS DECLINED BY MORE THAN 50%
/,'/IN THE LAST 40 YEARS.
NICOTINE YIELDS FOR ALL CIGARETTES ARE MEASURED
PURSUANT
TO
FTC
~1=~t= I 1 b_.ADVERTISEMENT'_
WILL THE REGULATIONS GO INTO EFFECT PENDING THE OUTCOME OF THE LAWSUIT?
/ WILL YOU TRY TO GET A STAY QF THE REGULATIONS? IF NOT, WILL YOU COMPLY WITH
THE REGULATIONS WHILE THE LAWSUIT IS PENDING?
OUR LAWSUIT ASKS THE COURT TO REQUIRE THAT FDA WITHDRAW ITS ASSERTION
OF JURISDICTION AND PROHIBIT FDA FROM PROCEEDING WITH ITS RULE MAKING
INITIATIVE.
WE WILL PURSUE ALL LEGAL REMEDIES TO PREVENT FDA's ILLEGAL ACTION.
6
o
10.
DOESN'T KESSLER HAVE THE ABILITY TO REGULATE BASED ON EVIDENCE OF "NICOTINE
MANIPULATION .
[] THE CI:-{ARGE IS BOTH FA[~E AND LEGALLY IRRELEVANT,
CONGRESS HAS NOT GRANTED FDA THE LEGAL AUTHORITY TO REGULATE ~
~ ~
.
WHICH IS NOT THE CASE WITH CIGARE~ES, CAN THE FDA REGULATE THE
PRODUCT.
DOESN'T THE "CONSUMER I~ENT" STANDARD PROVI[~E A BASIS FOR JURISDICTION
SINCE THE FDA HAS CONCLUDED THAT NICOTINE IS "ADDICTIVE"?
NO COURT HAS EVER RULED THAT A PRODUCT IS A "DRUG" BECAUSE OF THE WAY
PRODUCT -A ~
CONSUMERS USE THE ~ .,~., CANNU ESTABLISH THAi'
" F~AP
,==~'~, ~ ~,~,~=~' '~"~ "NEARLy- EXCLUSIVELY" ~N nnn~_. TO ACHIEVE 'WHE EU~
WHY ARE YOU SUING WHEN THE FDA HAS SAID IT DOES NOT WANT TO BAN THE
PRODUCT?
[] WE CHALLENGE FDA'S CONCLUSION THAT CIGARETTES ARE A "DRUG" OR
"MEDICAL DEVICE" SUBJECT TO REGULATION UNDER THE FEDERAL FOOD, DRUG
AND COSMETIC ACT.
[] WE BELIEVE THAT FDA HAS ABSOLUTELY NO ROLE IN THE REGULATION OF ~
CIGARETTES.
THIS IS THE POSITION THAT FDA ITSELF HAS TAKEN PREVIOUSLY AND CONGRESS
HAS ACCEPTED. WHEN A FEDERAL REGULATORY AGENCY STEPS ouTSiDE IT9
LEGAL BOUNDARIES, WE ARE OBLIGATED TO CHALLENGE THE ACTION.
7
11,
{£H'T THE FDA'g HIgTOP, ICAL POSITION ON JURISDICTION MOOT IN LIGHT OF ALL THE NEW
EVIDENCE ON "ADDICTION" AND "MANIPULATION"?
No. FDA MAY REGULATE A PRODUCT IF IT IS PROMOTED AND MARKETED T-C .... E
ATHERAPEUTIC F:~F-F-E-~C:: T;;E CCDV~ THAT IS NOT HOW CIGARETTES ARE
MARKETED.
12.
13.
ARE YOU SAYING THAT FDA JURISDICTION WILL NECESSARILY LEAD TO A BAN ON THE
PRODUCT?
• WE ARE CHALLENGING FDA'S ASSERTION THAT IT HAS THE AUTHORITY TO
REGULATE CIGARE'Ft'ES IN ANY WAY.
• MANY AUTHORITIES, INCLUDING FORMER FDA COMMISSIONERS, HAVE SAID THAT
AN ASSERTION OF JURISDICTION OVER ClGARE-FFES AS A "DRUG" WOULD EMPOWER
FDA TO CONTROL ALL ASPECTS OF CIGARETTE MANUFACTURING, LABELING AND
SALES.
DOESN'T THE NEED TO PREVENT MINORS FROM SMOKING JUSTIFY FDA JURISDICTION?
• NO. COMMISSIONER KESSLER'S STATED DESIRE TO PREVENT YOUTH SMOKING
CANNOT CREATE FDA JURISDICTION WHERE NONE EXISTS.
• FDA HAS NO AUTHORITY TO REGULATE OUR CIGARETTES.
• FDA'S PROPOSED REGULATIONS WOULD LARGELY DUPLICATE FEDERAL AND
STATE PROGRAMS ALREADY IN PLACE TO CONTROL YOUTH SMOKING.
• PM HAS LONG BEEN COMMITTED TO CURTAILING MINORS' ACCESS TO TOBACCO
PRODUCTS. RECENTLY, WE ANNOUNCED A PROGRAM CALLED ACTION AGAINST
ACCESS IN THE U.S.
14. WILL YOU PARTICIPATE IN THE FDA'S RULE MAKING?
YES. ~] ITIA n B,LT
~-~--~¢-A--K-~ THE CIGARETTE COMPANIES FILED A I"~9~PAGE
CHALLENGING EVERY ASPECT OF THE FDA'S RULE WITH~5,000 PAGES OF
SUPPORTING MATERIAL.
8
15.
16.
HOW WOULD YOU RATE YOUR CHANCES OF+ SUCCESS.
~ WEan .... , ........ H ....................................
INITIATIVe= £FIMIII mmp W!T.HDRAW.N 9EC.^,USE '.T-EXCEE.D-~ ~-mA~$-L-=~ ~
WHAT IS THE IMPACT OF THE FDA'S REGULATIONS ON YOUR BUSINESS?
•
COMMISSIONER KESSLER'S ASSERTION OF JURISDICTION HAS ALREADY HAD A
~NEGATIVE EFFECT.
CIGARE~ES.
FARMERS, MANUFACTURERS AND RETAILERS ACROSS THE NATION ARE NOW
APPREHENSIVE ABOUT THEIR JOBS AND FEAR THE ECONOMIC IMPACT OF THE
FDA'S DECISION IN THEIR COMMUNITIES.
17. WHAT WILL BE THE IMPACT OF FDA'S REGULATION OF CIGARETTES ON CIGARETTE
EXPORTS?
COMMISSIONER KESSLER'S PROPOSED REGULATIONS ARE DIRECTED AT SALES
AND MARKETING ACTIVITIES IN THE UNITED STATES, AND DO NOT APPLY EITHER TO
18.
EXPORTS OR PRODUCTS MADE(OUTSIDE THE U.S.
WILL SIMILAR INITIATIVES BE TAKEN BY REGULATORY AUTHORITIES IN OTHER
COUNTRIES?
WHITE HOUSE NEGOTIATIONS STATUS?
WE REMAIN WILLING TO MEET WITH ANYONE WHO SHARES A SINCERE INTEREST IN
FINDING APPROPRIATE WAYS TO ACHIEVE THE KEY GOAL -- REDUCING
SMOKING.
9
20.
PUBLIC SUPPORTS FDA REGULATIONS (CO£H POLL)?
[] REGARDLESS OF ONE'S FEELINGS ON TOBACCO, THE ISSUE OF FDA JURISDICTION
IS NOT A MATTER OF PUBLIC REFERENDUM. CONGRESS HAS CREATED A
CAREFULLY BALANCE_D SCHEME OF FEDERAL REGULATION OF TOBACCO WHICH
SPECIFICALLY EXCLUDES A ROLE FOR THE FDA.
[] WHAT CONGRESS AND THE PUBLIC WANT FROM THE FDA IS TO DO A BETTER JOB
WITH ITS EXISTING MANDATES.
21.
ISN'T TOBACCO UNDER-REGULATED?
[] TOBACCO AND CIGARETTES ,~_~.~NC-.'.~,'~ ,~--~,I~9T REGULATED PRODUOT~ Oi'i, '_~.~.
[] CLAIMS OF "UNDER-REGULATION" ARE MADE BY ANTI-SMOKING ACTIVISTS
DETERMINED TO PUT TOBACCO INDUSTRY OUT OF BUSINESS.
22.
WHAT IS THE PROSPECT FOR ENACTMENT OF LEGISLATION TO STOP THE FDA PLAN TO
REGULATE TOBACCO PRODUCTS AS A DRUG/MEDICAL DEVICE?
[] CONGRESS INTRODUCED SEVERAL BILLS TO STOP THE FDA'S ILLEGAL AND
UNPRECEDENTED QUEST TO REGULATE THESE PRODUCTS WITHOUT
CONGRESSIONAL AUTHORIZATION. WE ARE STUDYING THESE BILLS AND PURSUING
OUR LAWSUITS TO OVERTURN THE FDA's ACTION.
[] CONGRESS, THE FTC, THE FCC, THE DEPT. OF HEALTH AND HUMAN SERVICES,
THE TREASURY DEPT., AND THE AGRICULTURE DEPT. ALREADY HAVE EXTENSIVE
REGULATORY AUTHORITY OVER VARIOUS ACTIVITIES OF THE INDUSTRY.
THEREFORE, A STRONG CASE EXISTS FOR FDA'S ACTION TO BE OVERTURNED.
10
[
[
[
[
[
23.
BUT HASN'T FDA COMMISSIONER DAVID KESSLER RECENTLY SAID THAT TOBACCO IS
"ADDICTING," THAT CIGARETTE COMPANIES IN.TEND TO "ADDICT" CONSUMERS TO THEIR
PRODUCTS BY ADDING OR~MANIPULATING,~CONTROLLINC&4NICOTINE, AND THAT
THEREFORE THE FDA SHOULD REGULATE TOBACCO AS A'~DRUG?
• WE DISAGREE WITH COMMISSIONER KESSLER'S STATEMENTS. TE)B,~,CCO IS ,HOT~--~
.... ,-.~,,1,.-.,, DEigCEu I::SY L..)Vi=H 4-0 MILLION' PP__.~JI-'I_E, THE VAST
MAJO~IT't'
• MANUFACTURERS DO NOT ADD NICOTINE TO THEIR PRODUCTS OR
/'"MANIPULATE/CONTROL NICOTINE TO "ADDICT" CONSUMERS. FDA HAS
REPEATEDLY SAID m AND BEEN UPHELD BY THE COURTS -- THAT IT HAS NO
AUTHORITY TO REGULATE TOBACCO AS A DRUG.
~ALLEGATIONS )-HAT TOdAy;cO .IS UNI~EFI~'~~~
24. ISN'T TOBACCO UNDER-REGULAT..~....~~-
• TOBACCO AND~.R~t::'F~S ARE AMONG THE MOST REGULATED PRODUCTS ON
• ~....~IMS OF "UNDER-REGULATION" ARE MADE BY ANTI-SMOKING ACTIVISTS
DETERMINED TO PUT~.~ BUSINESS. PM AND THE REST OF THE
TOBACCO INDUSTRY OUT OF
11
ASSIST
SITUATION ANALYSIS /EXECUTIVE SUMMARY: PROJECT ASSIST IS A FEDERAL
PROGRAM ESTABLISHED 4 YEARS AGO AND EXPRESSLY DESIGNED TO REDUCE THE INCIDENCE
OF SMOKING IN 17 TARGETED STATES. A TOTAL OF $115 MILLION IS BEING SPENT OVER 7
YEARS ON THE PROJECT, WITH AN ADDITIONAL $35 MILLION CONTRIBUTED BY THE AMERICAN
CANCER SOCIETY. 3 YEARS WERE DEVOTED TO RESEARCH AND PREPARATION; THIS PAST
YEAR AND THE NEXT 3 FEATURE IMPLEMENTATION.
25. WHAT IS THE STATUS OF THE ASSIST PROGRAM'?. ARE ASSIST FUNDS BEING USED
FOR LOBBYING AND IF SO, WHAT ARE WE DOING ABOUT IT?.
• ASSIST FUNDS ARE DISTRIBUTED TO STATE BOARDS OF HEALTH, WHICH THEN
DISBURSE THE FUNDS TO LOCAL ANTI-SMOKING GROUPS THAT APPLY FOR
SUPPORT THROUGH PROJECT PROPOSALS.
• THERE HAS BEEN SOME SUGGESTION THAT ASSIST FUNDS ARE BEING USED FOR
LOBBYING PURPOSES, WHICH WOULD VIOLATE FEDERAL AND, POTENTIALLY,
STATE REGULATIONS ON THE EXPENDITURES OF FEDERAL FUNDS. WE AND
OTHERS ARE LOOKING CAREFULLY AT THIS MATTER.
12
DEPARTMENT OF HEALTH AND HUMAN SERVICES RULES PURSUANT TO THE
1992 ALCOHOL, DRUG ABUSE AND MENTAL HEALTH ADMINISTRATION
(ADAMHA) REORGANIZATION ACT
26. WHAT IS PM'S POSITION ON THE RULES ISSUED RECENTLY BY HHS WHICH ARE
DESIGNED TO CURB TOBACCO SALES TO MINORS?
• PM WELCOMES THE HHS RULES. THEY ARE DESIGNED TO PROMOTE STATE
EFFORTS TO CURB TOBACCO SALES TO MINORS AND ARE CONSISTENT WITH OUR
CORE BELIEF THAT KIDS SHOULD NOT SMOKE AND SHOULD NOT HAVE ACCESS TO
TOBACCO PRODUCTS.
RULES ISSUED PURSUANT TO A 1992 LAW IN WHICH CONGRESS PLACED
RESPONSIBILITY FOR CURBING YOUTH ACCESS TO ClGARE'I-FES WITH THE STATES--
NOT THE FDA.
ESSENTIAL LAW PROVISIONS INCLUDE: MANDATED ENFORCEMENT OF STATE
MINIMUM AGE LAWS; RANDOM UNANNOUNCED INSPECTIONS; AND THE
REQUIREMENT THAT EACH STATE SUBMIT AN ANNUAL REPORT TO HHS ON
ENFORCEMENT ACTIVITIES AND SUCCESSES. WE AGREE WITH ALL THESE
PROVISIONS.
AS PART OF ACTION AGAINST ACCESS INITIATIVE, PM USA IS WORKING WITH
MEMBERS OF THE TOBACCO, RETAIL AND WHOLESALE INDUSTRIES, STATE
LEGISLATORS AND LAW ENFORCEMENT AUTHORITIES TO SUPPORT MORE
VIGOROUS ENFORCEMENT OF EXISTING STATE LAWS. WE ALSO WORK
AGGRESSIVELY FOR PASSAGE OF ADDITIONAL ~q'A~E LEGISLATION T~o MEET THE
REQUIREMENTS OF THE 1992 STATUTE.
_13
27, WHAT IS THE IMPACT OF THE 75 PERCENT DOMESTIC LEAF LEGISLATION ON PM USA?
[] THAT LEGISLATION WAS CHALLENGED IN THE WORLD COURT AND IS NO LONGER
RELEVANT.
[] WE SUPPORTED THE "75/25" LEGISLATION FOR TWO REASONS:
-- FELT IT WAS CRITICAL FOR THE LONG-TERM VIABILITY OF THE FEDERAL
TOBACCO PROGRAM AND DOMESTIC TOBACCO GROWERS; AND
w WE USE SUCH A HIGH PERCENTAGE OF DOMESTIC LEAF IN OUR BRANDS AND
FELT THAT THIS LEGISLATION WOULD INSURE AN ADEQUATE SUPPLY OF U.S.
GROWN LEAF FOR THE LONG TERM. ~
[] TODAY WE ARE WORKING WITH THE UNITED STATES TRADE REPRESENTATIVE
(USTR) ON ARTICLE 28 TO ACCOMPLISH THE SAME GOALS.
TOBACCO PROGRAM
28, WHY DOES PM USA SUPPORT THE FEDERAL TOBACCO PROGRAM?
U.S. FLUE-CURED AND BURLEY TOBACCO IS THE BACKBONE OF OUR BRANDS. THE
TOBACCO SUPPORT PROGRAM ASSURES A STABLE SUPPLY OF TOBACCO AT
RELATIVELY STABLE PRICES, WHICH IS IN PM USA'S BEST INTEREST.
o~
14
]
]
]
]
]
]
]
]
]
]
29.
GIVEN THE ALLEGED HEALTH EFFECTS OF CIGARETTE SMOKING, WHY SHOULD THE
FEDERAL GOVERNMENT SUBSIDIZE TOBACCO FARMERS?
THERE IS NO FEDERAL TOBACCO FARM SUBSIDY.
THERE tS A TOBACCO PRICE SUPPORT PROGRAM TO ENSURE THAT TOBACCO
FARMERS GET A FAIR PRICE FOR THEIR CROPS.
GOVERNMENT-BACKED LOANS MADE UNDER THE PROGRAM ARE PAID BACK TO
THE GOVERNMENTwWITH INTEREST.
THE PROGRAM DOES NOT COST U.S. TAXPAYERS ANYTHING EXCEPT FOR
ADMINISTRATIVE FEES, WHICH ARE MINIMAL.
EVEN FORMER SURGEON GENERAL KOOP ACKNOWLEDGED THAT THE TOBACCO
PRICE SUPPORT PROGRAM IS AN AGRICULTURAL AND ECONOMIC MATTER, NOT A
HEALTH ISSUE.
ETS SMOKING BAN
30. HAS EPA'S R~SK ASSESSMENT ON ENVIRONMENTAL TOBACCO SMOKE (ETS)
INCREASED THE TREND OF BOTH PUBLIC AND PRIVATE SMOKING BANS?
• PUBLIC SURVEYS DEMONSTRATE THAT MOST AMERICANS FAVOR POLICIES OF
ACCOMMODATION INSTEAD OF SMOKING BANS. WHILE THERE HAS BEEN AN INITIAL
TREND TOWARD MORE SMOKING BANS, WE ARE HOPEFUL THE PUBLIC'S DESIRE
FOR ACCOMMODATION POLICIES WILL LEAD TO MORE REASONED DECISIONS BY
PUBLIC OFFICIALS.
• AFTER REVIEWING DATA USED BY THE EPA PLUS 4 MAJOR NEW STUDIES, THE CRS
(CONGRESSIONAL RESEARCH SERVICE) REINFORCED ITS TESTIMONY IN THE LAST
CONGRESS STATING THAT "THE STATISTICAL EVIDENCE DOES NOT APPEAR TO
SUPPORT A CONCLUSION THAT THERE ARE SUBSTANTIAL HEALTH EFFECTS OF
PASSIVE SMOKING."
31. WILL THERE BE EU LEGISLATION TO BAN CIGARETTE ADVERTISING?
• • EUROPEAN COMMISSION PROPOSED AN EU-WIDE ADVERTISING BAN YEARS AGO.
THIS PROPOSAL NEVER ACHIEVED SUFFICIENT SUPPORT AMONG THE MEMBER
STATES TO PASS THROUGH THE EU HEALTH COUNCIL. COUNCIL'S LEGAL SERVICE
CONCLUDED THAT THE EU DOES NOT HAVE THE COMPETENCE TO ENACT BINDING
HEALTH LEGISLATION.
[] WE BELIEVE A NUMBER OF COUNTRIES WILL CONTINUE TO VOTE AGAINST A TOTAL
AD BAN, AND SO BLOCK ANY SUCH LEGISLATION.
[] SPANISH PRESIDENCY RECENTLY PROPOSED COMPROMISE LEGISLATION THAT
WOULD OVERCOME THE OPPOSITION OF THE BLOCKING GROUP. THIS FAILED TO
GENERATE MEANINGFUL SUPPORT.
[] OPTIMISTIC THE PRINCIPLE OF SUBSIDIARITY WILL PREVAIL, AND HEALTH-BASED
LEGISLATION WILL CONTINUE TO BE THE PREROGATIVE OF NATIONAL
GOVERNMENTS.
FOOD
NUTRITION LABELING LAW
32. WHAT IS KF's POSITION ON THE NEW FOOD LABELING LAWS/REGULATIONS? WHAT HAS
BEEN THE IMPACT OF NLEA LABELING?
[] WE SUPPORT MANDATORY NUTRITIONAL LABELING. KRAFT SUPPORTED THE
ORIGINAL LEGISLATION, AND FILED EXTENSIVE COMMENTS IN RESPONSE TO THE
NLEA RULEMAKING.
[] ALL OF OUR FDA REGULATED PRODUCTS WERE IN COMPLIANCE BY THE 1994
DEADLINE.
[] IMPLEMENTATION INVOLVED COSTS.
• SOME OF THE RULES (E.G. HEALTH CLAIMS AND NUTRITION DESCRIPTORS) ARE
UNNECESSARILY RIGID AND INDUSTRY IS SEEKING IMPROVEMENTS TO THEM.)
16
HEALTH
SMOKINC HEALTH ISSUES
ENVIRONMENTAL TOBACCO SMOKE (ETS)
IARC ETS STUDY
COFFEE HEAL TH ISSUES
NITRA TES AND HOT DOCS
DAIRY HEALTH CONCERNS
MEAT HEAL TH CONCERNS
IRRADIA TION
BIO TECHNOLOCY
BST
CHYMOSIN IN CHEESE
FOOD PA THOCENS / E. COLI
HAZARD ANALYSIS CRITICAL CONTROL POINT (HACCP)
FOOD SAFETY AND INSPECTION SERVICE/FDA
DEVELOPINC AREAS
BEER AND ILLICIT DRUCS
DOMESTIC VIOLENCE / HIV AND AIDS
ANIMAL TESTINC
PACE
1
3
6
7
7
8
8
8
9
9
11
11
12
12
13
14
15
HI=ALTH
SMOKING HEALTH ISSUES
IS SMOKING A HEALTH RISK?
•
•
[]
SMOKING IS A RISK FACTOR FOR CERTAIN HUMAN DISEASES.
CONSUMERS ARE AWARE OF TH~SE POTENTIAL RISKS.
WARNING LABELS HAVE BEEN ON CIGARETTE PACKS FOR 30 YEARS AND IN
ADVERTISEMENTS FOR OVER 20 YEARS.
IN LIGHT OF HEALTH STUDIESI WHY DO YOU STAY IN THE TOBACCO BUSINESS?
• THE PURPOSE OF THIS MEETING IS NOT TO DEBATE THE HEALTH ASPECTS OF
TOBACCO.
THAT DEBATE AKI~I PLACE IN THE LEGISLATURE:S, COURTS AND REGULATORY
AGENCIES.
• CIGARETTES REMAIN A LAWFUL PRODUCT ENJOYED BY HUNDREDS OF MILLIONS
OF PEOPLE AROUND THE WORLD.
• THE RISKS OF SMOKING ARE WELL-KNOWN.
• WE BELIEVE WE CAN CONTINUE TO OPERATE OUR BUSINESS SUCCESSFULLY.
I'VE READ THAT THERE ARE CANCER-CAUSING AGENTS IN TOBACCO SMOKE OR
TOBACCO SMOKE "TAR." DOES THAH EXPLAIN THE ASSOCIATION BETWEEN SMOKING
AND CANCER?
• RESEARCHERS HAVE BEEN TRYING FOR YEARS TO DETERMINE WHETHER
CONSTITUENTS OF TOBACCO SMOKE CAUSE HUMAN DISEASE. HOWEVER, AFTER
YEARS OF INTENSIVE RESEARCH, NO CONSTITUENT AS FOUND IN CIGARETTE
SMOKE HAS BEEN SCIENTIFICALLY PROVEN TO CAUSE CANCER OR ANY OTHER
DISEASE IN HUMANS.
I UNDERSTAND THERE ARE MANY SUBSTANCES IN CIGARETTE SMOKE. EVEN IF "TAR,"
NICOTINE, AND CARBON MONOXIDE DON'T CAUSE DISEASE IN SMOKERS, DOESN'T THAT
MEAN ONE OR MORE OF THOSE OTHER SUBSTANCES PROBABLY DO?
IT IS TRUE THAT BY SOME ESTIMATES TOBACCO SMOKE CONTAINS OVER 4,000
CONSTITUENTS, BUT NEARLY 90% OF CIGARETTE SMOKE IS COMPOSED OF SUCH
SUBSTANCES AS OXYGEN, WATER, AND CARBON DIOXIDE, WHICH IS A NATURAL
BY-PRODUCT OF COMBUSTION OR BURNING.
• OF THE REMAINING AMOUNT, ONLY A FEW SUBSTANCES SUCH AS NICOTINE AND
CARBON MONOXIDE (CO) HAVE BEEN MEASURED AS BEING PRESENT AT LEVELS
ABOVE ONE MILLIGRAM (MG.) PER CIGARETTE. THE VAST MAJORITY OFTHE OTHER
CONSTITUENTS ARE PRESENT ONLY IN EXTREMELY SMALL AMOUNTS, BEING
MEASURED IN MICROGRAMS (ONE-MILLIONTH OF A GRAM) OR NANOGRAMS (ONE-
BILLIONTH OF A GRAM). AS WITH "TAR," NICOTINE, AND CO, THESE TINY
QUANTITIES, AS FOUND IN CIGARETTE SMOKE, HAVE NOT BEEN PROVEN TO
CAUSE CANCER OR ANY OTHE HUMAN B4-SEAS~
2
ENVIRONMENTAL
TOBACCO SMOKE (ETS)
WHAT IS PM'S POSITION ON SMOKING IN RESTAURANTS, OFFICES AND OTHER PUBLIC
PLACES IN LIGHT OF THE EPA'S RISK ASSESSMENT?
[] THE PREFERENCES OF BOTH SMOKERS AND NONSMOKERS ALIKE CAN AND
SHOULD BE ACCOMMODATED IN A VARIETY OF PUBLIC SE-I-FINGS.
[] THIS POSITION RECOGNIZES THAT 25% OF ADULT AMERICANS CHOOSE TO
SMOKE AND RESPECTS THE DECISION OF THOSE WHO CHOOSE NOT TO SMOKE.
[] PRACTICAL OPTIONS FOR ADDRESSING THIS ISSUE INCLUDE: SEPARATE SEATING
AREAS FOR SMOKERS AND NONSMOKERS IN RESTAURANTS, DESIGNATED
SMOKING AND NONSMOKING AREAS IN THE WORKPLACE, AND IMPROVED
VENTILATION INDOORS.
[] WE REJECT THE CLAIM THAT ENVIRONMENTAL TOBACCO SMOKE IS A HEALTH
RISK. THAT CLAIM IS NOT SUPPORTED BY VALID EMPIRICAL RESEARCH.
[] IN PARTICULAR, THE EPA'S ASSESSMENT OF ETS HAS COME UNDER INCREASED
SCRUTINY, MOST RECENTLY BY THE CONGRESSIONAL RESEARCH SERVICE, AN
INDEPENDENT AND HIGHLY RESPECTED ARM OF THE UNITED STATES CONGRESS.
[] THE EPA REPORT ONLY CONSIDERED STUDIES OF EXPOSURES IN THE HOME,
WHICH DO NOT PROVIDE AN ADEQUATE BASIS FOR REGULATING SMOKING IN THE
WORKPLACE OR OTHER PUBLIC PLACES.
o
THE EPA REPORT STATED THAT ETS HAS BEEN FOUND TO CAUSE CANCER IN NON-
SMOKERS. UNDER THESE CIRCUMSTANCES, HOW CAN PM OPPOSE SMOKING BANS?
[] THE EPA REPORT IS SERIOUSLY FLAWED, AND ITS CONCLUSIONS ARE NOT
SUPPORTED BY THE SCIENTIFIC EVIDENCE.
[] WE JOINED OTHER MEMBERS OF THE TOBACCO INDUSTRY IN FILING SUIT AGAINST
THE EPA TO OVERTURN THE FINDINGS OF ITS REPORT.
[] WE ARE NOT ALONE IN FINDING FLAWS IN THE EPA'S ANALYSlS. IN NOVEMBER,
,THE CONGRESSIONAL RESEARCH SERVICE (CRS) PUBLISHED A REPORT WHICH
QUESTION T4, ........ OFTHE EPA REPORT.
3
COMMENTING ON WORKER EXPOSURE TO ETS, THE Ci~S CONCLUDED TFIAT:
"MORE EXTENSIVE WORKPLACE EXPOSURE DATA ARE REQUIRED BEFORE THIS
ISSUE CAN BE RESOLVED." THIS WHY WE FEEL IT IS PREMATURE TO PROPOSE
UNREASONABLE BANS AND RESTRICTIONS ON SMOKING IN THE WORKPLACE AND
L
OTHER PUBLIC PLACES.
WHAT IS PM'S RESPONSE TO THE CLAIMS THAT EXPOSURE TO ETS INCREASES THE
RISK OF RESPIRATORY PROBLEMS IN CHILDREN?
• NOT CLEAR WHETHER THE REPORTED ASSOCIATIONS BETWEEN CERTAIN
CHILDHOOD RESPIRATORY PROBLEMS AND ETS ARE IN FACT DUE TO EXPOSURE
TO ETS OR TO OTHER FACTORS.
GROWING NUMBER OF COMPLAINTS OF CHILDHOOD RESPIRATORY PROBLEMS
ARE ASSOCIATED WITH POOR INDOOR AIR QUALITY IN SCHOOLS AND DAY-CARE
CENTERS WHERE ETS IS NOT A FACTOR SINCE SMOKING IS NOT PERMIq-FED.
OTHER STUDIES ALLEGING AN INCREASED RISK OF RESPIRATORY ILLNESS FOR
L
o
CHILDREN EXPOSED TO ETS HAVE BEEN CRITICIZED FOR FAILING TO TAKE INTO
ACCOUNT NUMEROUS SO-CALLED CONFOUNDING FACTORS. THESE FACTORS
INCLUDE NUTRITION, ACCESS TO REGULAR HEALTH CARE AND A VARIETY OF
FACTCRS THAT AFFECT OVERALL INDOOR AIR QUALITY.
WHY SHOULD WE BELIEVE THE TOBACCO INDUSTRY ON ETS, WHEN FOR YEARS YOU
LIED TO THE PUBLIC ABOUT THE ALLEGED HEALTH RISKS OF DIRECT SMOKING?
• WE ACKNOWLEDGE THAT SMOKING IS A RISK FACTOR FOR CERTAIN HUMAN
DISEASES, BUT DO NOT BELIEVE THAT THERE IS EVENA STATISTICAL
ASSOCIATION BETWEEN ETS AND HUMAN DISEASE.
• ENVIRONMENTAL TOBACCO SMOKE IS A COMBINATION OF EXHALED SMOKE AND
THE SMOKE FROM THE TIP OF A CIGARETTE. '~ IS ~,~=n~ ~ ........... ~
.DIFFERE.~,'T FROM THE S,~v~e~E INHALED BY A SMOKER.
- 4
E
[_
9. ~h~NAT ;S THF_ STAT~JS OF THE EPA'S REPORT LABELING ETS A "GROUP A"
CARCINOGEN?
• THE REPORT IS THE SUBJECT OF A LEGAL CHALLENGE BROUGHT BY SEVERAL
MEMBERS OF THE TOBACCO INDUSTRY, INCLUDING PHILIP MORRIS USA.
• WE BELIEVE THE EPA REPORT IS SERIOUSLY FLAWED AND HAVE ENUMERATED
OUR REASONS ON MANY OCCASIONS. "
• BECAUSE THE REPORT IS SUCH BAD SCIENCE AND IS BEING USED
INAPPROPRIATELY TO J~JSTIFY UNREASONABLE AI~D UNNECESSARY BANS AND
RESTRICTIONS ON SMOKING PUBLIC PLACES, WE HAVE JOINED IN SEEKING RELIEF
FROM THE COURTS.
• AS THE MATTER IS STILL THE SUBJECT OF ACTIVE LITIGATION, IT WOULD BE
INAPPROPRIATE TO COMMENT FURTHER ON ITS STATUS.
10. DOESN'T THE CONGRESSIONAL RESEARCH SERVICE REPORT ACTUALLY CONFIRM
THAT THERE ARE EXCESS DEATHS DUE TO PASSIVE SMOKING?
• THE LATEST REPORT BY THE CONGRESSIONAL RESEARCH SERVICE CRITICIZES
THE METHODOLOGY USED BY BOTH THE ENVIRONMENTAL PROTECTION AGENCY
AND THE OCCUPATIONAL HEALTH AND SAFETY ADMINISTRATION.
• THE Ci4S REPORT REINFORCED KEY TESTIMONY IN 1994 BEFORE CONGRESS IN
WHICH CRS RESEARCHERS sTATED: "THE STATISTICAL EVIDENCE DOES NOT
APPEAR TO SUPPORT A CONCLUSION THAT THERE ARE SUBSTANTIAL HEALTH
EFFECTS OF PASSIVE SMOKING."
• THE ORS REPORT OFFERS ESTIMATES FOR PURPOSES OF DISCUSSION BUT
STRESSES THAT THERE ARE MANY UNDERLYING FLAWS IN SUCH CALCULATIONS.
11.
WHAT IS THE STATUS OF THE PROPOSED RULE BY THE OCCUPATIONAL SAFETY AND
H EALTH ADMINISTRATION?
• OSHA RECEIVED OVER 110,000 WRITTEN COMMENTS ON ITS PROPOSED RULE,
A SUBSTANTIAL MAJORITY OF WHICH WERE HIGHLY CRITICAL.
• IN ADDITION, DURING A SIX-MONTH HEARING PROCESS, APPROXIMATELY 800
WITNESSES REPRESENTING A BROAD RANGE OF INTERESTS TESTIFIED BEFORE
THE OSHA PANEL. MOST OF THESE WITNESSES EXPRESSED SERIOUS
CONCERNS ABOUT THE NEED FOR AND EFFECTIVENESS OF THE PROPOSED RULE.
• AFTER THE POST-HEARING BRIEFING PERIOD CLOSES ON FEB. 9, OSHA WILL
REVIEW THE COMPLETE DOCKET. IN LIGHT OF THE NUMEROUS CRITICAL
COMMENTS AND THE RE(~ENT CRS REPORT WHICH CALLS INTO QUESTION THE
EPA REPORT ON WHICH THE OSHA PROPOSAL IS LARGELY BASED, WE ARE
HOPEFUL THAT OSHA WILL RECONSIDER ITS PROPOSAL.
IARC
12.
ETS STUDY
THE INTERNATIONAL AGENCY FOR RESEARCH ON CANCER (IARC) IS CONDUCTING AN
ETS STUDY. WHAT DOES PM EXPECT THE STUDY TO FIND?
• IARC STUDY WILL LIKELY AGGREGATE FINDINGS FROM 7-10 COUNTRY STUDY
CENTERS IN MID-TO LATE 1996. OUR CONCERN IS THAT THIS FLAWED
METHODOLOGY COULD LEAD TO A RELATIVE RISK FINDINGS SIMILAR TO THE~ IN
THE EPA RISK ASSESSMENT. WE ARE PREPARING A RANGE OF RESPONSES.
• PM CONFIDENT THAT PROPERLY-CONDUCTED STUDIES WILL SHOW THERE IS NO
SIGNIFICANT RISK ASSOCIATED WITH ETS.
6
36. WHAT IS THE CORPORATE POSITION ON ANIMAL TESTING. DO YOU DO ANY ANIMAL
TESTING?
• WE DO NOT COMMENT ON DEVELOPMENT ACTIVITIES.
• COMPANY CONTRIBUTES TO RESEARCH AIMED AT TRYING TO IDENTIFY
ALTERNATIVES TO USING LABORATORY ANIMALS.
• CONFIDENTIAL:
KF NORTH AMERICAN DOES NO ANIMAL TESTING, BUT CONTRACTS FOR
TESTING AT FACILITIES THAT MEET OR EXCEED NATIONAL STANDARDS.
-- KF INTERNATIONAL DOES NO ANIMAL TESTING, BUT CONTRACTS FOR
TESTING IN THE U.S. AT NATIONALLY RECOGNIZED FACILITIES.
PM USA DOES ANIMAL TESTING IN EUROPE.
o
O~
o
15
HEALTH
SMOKING HEALTH ISSUES
1. IS SMOKING A HEALTH RISK?
• SMOKING IS A RISK FACTOR FOR CERTAIN HUMAN DISEASES.
• CONSUMERS ARE AWARE OF THESE POTENTIAL RISKS.
• WARNING LABELS HAVE BEEN ON CIGARETTE PACKS
ADVERTISEMENTS FOR OVER 20 YEARS.
FOR 30 YEARS AND IN
IN LIGHT OF HEALTH STUDIES, WHY DO YOU STAY IN THE TOBACCO BUSINESS?
• THE PURPOSE OF THIS MEETING IS NOT TO DEBATE THE HEALTH ASPECTS OF TOBACCO.
• THAT DEBATE HAS TAKEN PLACE IN THE LEGISLATURES, COURTS AND REGULATORY
AGENCIES.
• CIGARETTES REMAIN A LAWFUL PRODUCT ENJOYED BY HUNDREDS OF MILLIONS
OF
PEOPLE AROUND THE WORLD.
• THE RISKS OF SMOKING ARE WELL-KNOWN.
• WE BELIEVE WE CAN CONTINUE TO OPERATE OUR BUSINESS SUCCESSFULLY.
o
I'VE READ THAT THERE ARE CANCER-CAUSING AGENTS IN TOBACCO SMOKE OR TOBACCO
SMOKE "TAR." DOES THAT EXPLAIN THE ASSOCIATION BETWEEN SMOKING AND CANCER?
• RESEARCHERS HAVE BEEN TRYING FOR YEARS TO DETERMINE WHETHER CONSTITUENTS
OF TOBACCO SMOKE CAUSE HUMAN DISEASE. HOWEVER, AFTER YEARS OF INTENSIVE
RESEARCH, NO CONSTITUENT AS FOUND IN CIGARETTE SMOKE HAS BEEN SCIENTIFICALLY
PROVEN TO CAUSE CANCER OR ANY OTHER DISEASE IN HUMANS.
~ LIN~3~RS.T/kN~3 "THERE ARE MANY SUBSTANCES IN CIGARETTE SMOKE. EVEN IF "TAR," NICOTINE,
AND CARBON MONOXIDE DON'T CAUSE DISEASE IN SMOKERS, DOESN'T THAT MEAN ONE OR
MORE OF THOSE OTHER SUBSTANCES PROBABLY DO?
• IT IS TRUE THAT BY SOME ESTIMATES TOBACCO SMOKE CONTAINS OVER 4,000
CONSTITUENTS, BUT NEARLY 90% OF CIGARETTE SMOKE IS COMPOSED OF SUCH
SUBSTANCES AS OXYGEN, WATER, AND CARBON DIOXIDE, WHICH IS A NATURAL
BY-PRODUCT OF COMBUSTION OR BURNING.
• OF THE REMAINING AMOUNT, ONLY A FEW SUBSTANCES SUCH AS NICOTINE AND CARBON
MONOXIDE (CO) HAVE BEEN MEASURED AS BEING PRESENT AT LEVELS ABOVE ONE
MILLIGRAM (MG.) PER CIGARET'I'E. THE VAST MAJORITY OF THE OTHER CONSTITUENTS ARE
PRESENT ONLY IN EXTREMELY SMALL AMOUNTS, BEING MEASURED IN MICROGRAMS (ONE-
MILLIONTH OF A GRAM) OR NANOGRAMS (ONE-BILLIONTH OF A GRAM). AS WITH "TAR,"
NICOTINE, AND CO, THESE TINY QUANTITIES, AS FOUND IN CIGARE'I-FE SMOKE, HAVE NOT
BEEN PROVEN TO CAUSE CANCER OR ANY OTHER DISEASE IN HUMANS.
2
ENVIRONMENTAL
TOBACCO SMOKE (ETS)
WHAT IS PM'S POSITION ON SMOKING IN RESTAURANTS, OFFICES AND OTHER PUBLIC PLACES IN
LIGHT OF THE EPA'S RISK ASSESSMENT?
• THE PREFERENCES OF BOTH SMOKERS AND NONSMOKERS ALIKE CAN AND SHOULD BE
ACCOMMODATED IN A VARIETY OF PUBLIC SETTINGS.
• THIS POSITION RECOGNIZES THAT 25% OF ADULT AMERICANS CHOOSE TO SMOKE AND
RESPECTS THE DECISION OF THOSE WHO CHOOSE NOT TO SMOKE.
• PRACTICAL OPTIONS FOR ADDRESSING THIS ISSUE INCLUDE: SEPARATE SEATING AREAS
FOR SMOKERS AND NONSMOKERS IN RESTAURANTS, DESIGNATED SMOKING AND
NONSMOKING AREAS IN THE WORKPLACE, AND IMPROVED VENTILATION INDOORS.
• WE REJECT THE CLAIM THAT ENVIRONMENTAL TOBACCO SMOKE IS A HEALTH RISK. THAT
CLAIM IS NOT SUPPORTED BY VALID EMPIRICAL RESEARCH.
• IN PARTICULAR, THE EPA'S ASSESSMENT OF ETS HAS COME UNDER INCREASED
SCRUTINY, MOST RECENTLY BY THE CONGRESSIONAL RESEARCH SERVICE, AN
INDEPENDENT AND HIGHLY RESPECTED ARM OF THE UNITED STATES CONGRESS.
• THE EPA REPORT ONLY CONSIDERED STUDIES OF EXPOSURES IN THE HOME, WHICH DO
NOT PROVIDE AN ADEQUATE BASIS FOR REGULATING SMOKING IN THE WORKPLACE OR
OTHER PUBLIC PLACES.
3
o
TNE EPA REPORT STATED TNAT ET$ HAS BEEN FOUND TO CAUSE CANCER IN NON-SMOKERS.
UNDER THESE CIRCUMSTANCES, HOW CAN PM OPPOSE SMOKING BANS?
• THE EPA REPORT IS SERIOUSLY FLAWED, AND ITS CONCLUSIONS ARE NOT SUPPORTED
BY THE SCIENTIFIC EVIDENCE.
• WE JOINED OTHER MEMBERS OF THE TOBACCO INDUSTRY IN FILING SUIT AGAINST THE EPA
TO OVERTURN THE FINDINGS OF ITS REPORT.
• WE ARE NOT ALONE IN FINDING FLAWS IN THE EPA'S ANALYSIS. IN NOVEMBER, THE
CONGRESSIONAL RESEARCH SERVICE (CRS) PUBLISHED A REPORT WHICH CALLS INTO
QUESTION ASPECTS OF THE EPA REPORT.
• COMMENTING ON WORKER EXPOSURE TO ETS, THE CRS CONCLUDED THAT: "MORE
EXTENSIVE WORKPLACE EXPOSURE DATA ARE REQUIRED BEFORE THIS ISSUE CAN BE
RESOLVED." THIS WHY WE FEEL IT IS PREMATURE TO PROPOSE UNREASONABLE BANS
AND RESTRICTIONS ON SMOKING IN THE WORKPLACE AND OTHER PUBLIC PLACES.
WHAT IS PM'S RESPONSE TO THE CLAIMS THAT EXPOSURE TO ETS INCREASES THE RISK OF
RESPIRATORY PROBLEMS IN CHILDREN?
• NOT CLEAR WHETHER THE REPORTED ASSOCIATIONS BETWEEN CERTAIN CHILDHOOD
RESPIRATORY PROBLEMS AND ETS ARE IN FACT DUE TO EXPOSURE TO ETS OR TO
OTHER FACTORS.
• GROWING NUMBER OF COMPLAINTS OF CHILDHOOD RESPIRATORY PROBLEMS ARE
ASSOCIATED WITH POOR INDOOR AIR QUALITY IN SCHOOLS AND DAY-CARE CENTERS
WHERE ETS IS NOT A FACTOR SINCE SMOKING IS NOT PERMITTED.
• OTHER STUDIES ALLEGING AN INCREASED RISK OF RESPIRATORY ILLNESS FOR CHILDREN
EXPOSED TO ETS HAVE BEEN CRITICIZED FOR FAILING TO TAKE INTO ACCOUNT
NUMEROUS SO-CALLED CONFOUNDING FACTORS. THESE FACTORS INCLUDE NUTRITION,
ACCESS TO REGULAR HEALTH CARE AND A VARIETY OF FACTORS THAT AFFECT OVERALL
INDOOR AIR QUALITY.
4
O~
W~4~( SHOULD WE E~EUEVE THE TOBACCO INDUSTRY ON ET£, WHEN FOR YEARS YOU LIED TO
THE PUBLIC ABOUT THE ALLEGED HEALTH RISKS OF DIRECT SMOKING?
• WE ACKNOWLEDGE THAT SMOKING IS A RISK FACTOR FOR CERTAIN HUMAN DISEASES, BUT
DO NOT BELIEVE THAT THERE IS EVEN A STATISTICAL ASSOCIATION BETWEEN ETS AND
HUMAN DISEASE.
• ENVIRONMENTAL TOBACCO SMOKE IS A COMBINATION OF EXHALED SMOKE AND THE
SMOKE FROM THE TIP OF A CIGARE--FFE.
WHAT IS THE STATUS OF THE EPA'S REPORT LABELING ETS A "GROUP A" CARCINOGEN?
• THE REPORT IS THE SUBJECT OF A LEGAL CHALLENGE BROUGHT BY SEVERAL MEMBERS
OF THE TOBACCO INDUSTRY, INCLUDING PHILIP MORRIS USA.
• WE BELIEVE THE EPA REPORT IS SERIOUSLY FLAWED AND HAVE ENUMERATED OUR
REASONS ON MANY OCCASIONS.
• BECAUSE THE REPORT IS SUCH BAD SCIENCE AND IS BEING USED INAPPROPRIATELY TO
JUSTIFY UNREASONABLE AND UNNECESSARY BANS AND RESTRICTIONS ON SMOKING
PUBLIC PLACES, WE HAVE JOINED IN SEEKING RELIEF FROM THE COURTS.
• AS THE MATTER IS STILL THE SUBJECT OF ACTIVE LITIGATION, IT WOULD BE
INAPPROPRIATE TO COMMENT FURTHER ON ITS STATUS.
5
DOESN'T THE CONGRESSIONAL RESEARCH SERVICE REPORT ACTUALLY CONFIRM THAT THERE
ARE EXCESS DEATHS DUE TO PASSIVE SMOKING?
• THE LATEST REPORT BY THE CONGRESSIONAL RESEARCH SERVICE CRITICIZES THE
METHODOLOGY USED BY BOTH THE ENVIRONMENTAL PROTECTION AGENCY AND THE
OCCUPATIONAL HEALTH AND SAFETY ADMINISTRATION.
• THE CRS REPORT REINFORCED KEY TESTIMONY IN 1994 BEFORE CONGRESS IN WHICH
ORS RESEARCHERS STATED: "THE STATISTICAL EVIDENCE DOES NOT APPEAR TO
SUPPORT A CONCLUSION THAT THERE ARE SUBSTANTIAL HEALTH EFFECTS OF PASSIVE
SMOKING."
• THE ORS REPORT OFFERS ESTIMATES FOR PURPOSES OF DISCUSSION BUT STRESSES
THAT THERE ARE MANY UNDERLYING FLAWS IN SUCH CALCULATIONS.
IARC ETS STUDY
1 1. THE INTERNATIONAL AGENCY FOR RESEARCH ON CANCER (IARC/IS CONDUCTING AN ETS
STUDY. WHAT DOES PM EXPECT THE STUDY TO FIND?
• IARC STUDY WILL LIKELY AGGREGATE FINDINGS FROM 7-10 COUNTRY STUDY CENTERS IN
MID- TO LATE 1996. OUR CONCERN IS THAT THIS FLAWED METHODOLOGY COULD LEAD TO
A RELATIVE RISK FINDINGS SIMILAR TO THOSE IN THE EPA RISK ASSESSMENT. WE ARE
PREPARING A RANGE OF RESPONSES.
• PM CONFIDENT THAT PROPERLY-CONDUCTED STUDIES WILL SHOW THERE IS NO
SIGNIFICANT RISK ASSOCIATED WITH ETS.
6
12. A RECENT STUDY SAID THAT COFFEE PRODUCES DEPENDENCY SYMPTOMS SIMILAR TO THOSE
ASSOCIATED WITH DRUGS. IS THAT TRUE?
• MOST RESEARCH SHOWS THAT CAFFEINE IS NOT A SUBSTANCE OF DEPENDENCE.
• THIS STUDY'S RESULTS WERE BASED ON ONLY 16 SUBJECTS, MANY OF WHOM SUFFERED
FROM OTHER DISORDERS AND DID NOT REPRESENT AVERAGE CONSUMERS.
• WHILE SOME PEOPLE EXPERIENCE MILD, TEMPORARY EFFECTS WHEN THEY STOP
CONSUMING CAFFEINE, THESE EFFECTS ARE EASILY AVOIDED IF CAFFEINE IS REDUCED
GRADUALLY.
13. A RECENT STUDY SAID LIFELONG COFFEE CONSUMPTION CAN INCREASE THE RISK OF
OSTEOPOROSlS. IS THAT TRUE?
STUDY SHOWED BONE LOSS OCCURRED IN SUBJECTS ONLY WHEN CALCIUM INTAKE WAS
BELOW ADEQUATE LEVELS.
RESEARCH SHOWS NO RELATIONSHIP BETWEEN COFFEE AND OSTEOPOROSlS.
NITRITi::S AND HOT DOGS
14. IS IT TRUE HOT DOGS CAUSE CANCER/LEUKEMIA IN CHILDREN?
• NO. NUTRITION EXPERTS SAY THERE IS NO SCIENTIFIC BASlS TO SUPPORT THESE
STUDIES.
• EXPERTS SAY PEOPLE CAN STILL EAT HOT DOGS AS PART OF A BALANCED DIET.
DAIRY HEALTH CONCERNS
15. WHAT IS KRAFT DOING ABOUT ADDRESSING HEALTH CONCERNS RELATED TO DAIRY
PRODUCTS? WHAT PLANS DOES KRAFT HAVE FOR "HEALTHY" CHEESE PRODUCTS?
• BETTER-FOR-YOU CHEESE PRODUCTS NOW REPRESENT 18% OF VOLUME. WITHIN THE
BETTER-FOR-YOU CATEGORY, KF MAINTAINED A 62% MARKET SHARE.
• EVERY KF BRAND HAS A REDUCED FAT VERSION AND MANY HAVE A FAT FREE VERSION.
• KRAFT IS ACTIVE IN PROMOTING THE POSITIVES OF CHEESEmTASTE, VERSATILITY AND
GOOD NUTRITION m TO BUILD DEMAND.
O
O~
7
~_lk~ H~_~kL~4 CONCERNS
16. HOW IS OSCAR MAYER DEALING WITH TRENDS TO HEALTHFUL EATING?
• ALL OM PRODUCTS CAN FIT INTO A HEALTHY DIET.
• OM HAS A NUMBER OF NATURALLY LEAN HAM AND TURKEY ITEMS, AS WELL AS REDUCED
FAT ITEMS.
• IN 1995, OM INTRODUCED ITS LINE OF FAT FREE MEATS, WHICH HAVE BEEN DOING
EXTREMELY WELL.
IRRADIATION
17. ARE YOU CONCERNED IRRADIATION IS UNSAFE?
• BELIEF IT IS SAFE, WHEREVER THE FDA HAS SAID SO.
• WE HAVE NOT YET FOUND A NEED TO USE IRRADIATION.
18.
DOES KF SELL
POSITION?
IRRADIATED FOOD ANYWHERE IN THE WORLD? WHAT IS THE CORPORATE
WE HAVE NO NEED TO USE IRRADIATION AND THEREFORE SELL NO IRRADIATED FOODS.
HOWEVER, THE WORLD HEALTH ORGANIZATION ESTIMATES THAT WIDESPREAD USE OF
IRRADIATION WOULD SAVE $1 BILLION ANNUALLY IN COSTS NOW ASSOCIATED WITH THE
TREATMENT OF TRICHINOSIS.
FOOD IRRADIATION SHOWN TO BE SAFE AND EFFECTIVE MEANS TO REDUCE OR ELIMINATE
BACTERIAL CONTAMINATION.
WE SUPPORT CONTINUED RESEARCH IN THIS TECHNOLOGY AND EDUCATION TO INCREASE
CONSUMER UNDERSTANDING AND SUPPORT.
CONSUMER ACCEPTANCE REMAINS LOW.
8
~l ~0"~" E~ ~ ~10 LO ~Y
19. WHAT IS THE COMPANY'S POSITION ON BIOTECHNOLOGY? ARE YOU SELLING ANY FOOD IN
WHICH CELLS HAVE BEEN ALTERED.'?
• WE DON'T DO RESEARCH OR DEVELOPMENT ON BIOTECHNOLOGY.
• HOWEVER, BIOTECHNOLOGY OFFERS POTENTIAL TO REDUCE THE NEED FOR PESTICIDES
AND FERTILIZERS, INCREASE THE EFFICIENCY AND QUALITY OF CROPS, INCREASE SHELF
LIFE AND IMPROVE FOOD FLAVOR AND TEXTURE.
• BENEFITS OF BIOTECHNOLOGY ARE NOT UNIVERSALLY EMBRACED.
BST
20. DOES KRAFT USE MILK FROM BST-TREATED HERDS?
• YES, BECAUSE KRAFT DOES NOT REJECT MILK FROM BST-TREATED HERD.
• FDA HAS FOUND THE MILK IS THE SAME AND SAFE, AND A NUMBER OF HEALTH
ORGANIZATIONS AGREE WITH THE SCIENCE BEHIND THE FDA'S ABILITY TO DECIDE FOOD
SAFETY--INCLUDING THE AMERICAN MEDICAL ASSOC. AND THE AMERICAN DIETETIC
ASSOC.
21. WHY DOESN'T KRAFT LABEL ITS PRODUCTS AS CONTAINING BST?
• FDA SAID LABELING IS NOT NECESSARY AND COULD BE MISLEADING.
• NO TEST TO DETERMINE IF MILK CAME FROM BST-TEATED HERDS.
22.
WHY IS KRAFT OPPOSED TO STATES
PRODUCTS?
REQUIRING LABELING FOR BST IN MILK OR DAIRY
PATCHWORK OF STATE LABELING REQUIREMENTS WOULD IMPEDE NATIONAL MARKETING
OF OUR PRODUCTS.
FDA DOES NOT REQUIRE LABELING.
LABELING WOULD IMPLY THAT THE PRODUCTS ARE DIFFERENT, AND THEY ARE NOT.
N
9
YOU CITE THE CREDENTIALS OF THE FDA REGARDING THE SAFETY OF BST, YET YOU CRITICIZE
THE ORGANIZATION FOR ITS POSITION ON TOBACCO. ISN'T THIS CONTRADICTORY?
• NO. FDA HISTORY AND EXPERTISE IN DEALING WITH FOOD AND DRUGS, NOT THE
REGULATION OF TOBACCO.
• FDA HAS THOROUGHLY STUDIED BST FOR MANY YEARS BEFORE APPROVING IT FOR
COMMERCIAL SALE.
• FDA HAS APPROPRIATE RESOURCES AND REVIEW PROCESS FOR DETERMINING FOOD
SAFETY. ALSO, A NUMBER OF HEALTH ORGANIZATIONS (I.E., AMA, AMER. DIETETIC
ASSOC.) SUPPORT FDA'S ABILITY TO DECIDE FOOD SAFETY ISSUES.
CNYMOSIN IN CHEESE
24. DOES KRAFT USE GENETICALLY ENGINEERED CHYMOSIN IN ITS CHEESE?
• YES, LIKE MANY OTHER CHEESE COMPANIES, WE USE A FORM OF THE ENZYME MADE
THROUGH A FERMENTATION PROCESS WHICH PROVIDES A MORE CONSISTENT, SAFER,
HIGHER QUALITY INGREDIENT.
• FDA APPROVED CHYMOSIN FOR USE IN CHEESE MAKING. IT DOES NOT CHANGE THE
TASTE, TEXTURE, APPEARANCE OR NUTRITIONAL VALUE OF CHEESE.
• CHYMOSIN IS AN ENZYME WHICH COAGULATES OR CLOTS MILK, AND HAS BEEN USED IN
CHEESE MAKING FOR CENTURIES.
Food PATHOGENS/E. COLI
25. HAVE YOU DETECTED E. COLI 0157:H7 IN ANY OF YOUR OSCAR MAYER PRODUCTS?
• NO POSITIVE FINDING IN ANY OF OUR PRODUCTS.
10
WHAT ARE YOU DOING TO ENSURE THAT KRAFT PRODUCTS DO NOT CONTAIN I:. OOLI OR ANY
OTHER FOOD-BORNE PATHOGEN?
• WE HAVE HACCP (HAZARD ANALYSIS CRITICAL CONTROL POINT) PLANS IN PLACE
WHICH ENSURE THAT POTENTIAL PATHOGENS ARE ELIMINATED.
• ADDITIONAL QUALITY PROGRAMS (GOOD MANUFACTURING PRACTICES, SANITATION
PROGRAMS, ETC.) FURTHER ENSURE THE QUALITY AND SAFETY OF OUR PRODUCTS.
• MONITOR ADVANCES IN TECHNOLOGICAL RESEARCH AND SCIENTIFIC UNDERSTANDING OF
FOOD SAFETY AND QUALITY TO MAINTAIN THE HIGHEST STANDARDS FOR OUR PRODUCTS.
HAZARD ANALYSIS CRITICAL CONTROL POINT (HACCP)
27. DOES KRAFT SUPPORT THE FDA (USDA) HACCP FOOD SAFETY PROGRAMS WHICH HAVE
PROPOSED BY THOSE AGENCIES?
• KRAFT SUPPORTS THE USE OF THE HACCP THROUGHOUT THE FOOD CHAIN AND
ADOPTED HACCP AS PART OF OUR OVERALL QUALITY PROGRAM THROUGHOUT OUR
MANUFACTURING FACILITIES.
• IN GENERAL, HACCP SHOULD NOT BE MADE MANDATORY EXCEPT FOR THOSE PRODUCTS
OR PROCESSES WHICH CONSTITUTE A SIGNIFICANT HEALTH OR SAFETY RISK ABSENT
ADEQUATE PROCESS CONTROLS.
11
FOOD SAFETY AND INSPECTION SERVICE / FDA
28. DOES KRAFT SUPPORT THE SUGGESTIONS THAT FSIS AND THE FDA CENTER FOR FOODS BE
COMBINED IN A SINGLE FOOD AGENCY?
• BOTH FDA AND FSIS PERFORM THEIR FUNCTIONS WELL.
• THERE IS MUCH OVERLAP IN THE FUNCTIONS OF THE 2 AGENCIES AND A NUMBER OF
AREAS IN WHICH EFFICIENCY COULD BE IMPROVED.
• MAKES SENSE TO EXPLORE THE POSSIBILITY OF INCREASING EFFICIENCY AND POOLING
RESOURCES THROUGH THE MERGER OF THE 2 AGENCIES FOCUSING ENTIRELY ON THE
FOOD SUPPLY.
• JUST AS INDUSTRY IS REQUIRED TO CONSTANTLY EXPLORE WAYS TO BECOME MORE
EFFICIENT AND COST-EFFECTIVE, GOVERNMENT SHOULD ALSO ASSES THE EFFICIENCIES
OF SEPARATE AGENCIES VERSUS A COMBINED AGENCY. IN TIMES OF CONTINUING
PRESSURE TO FUNCTION WITH FEWER RESOURCES, SUCH A MERGER SHOULD BE
CONSIDERED ALONG WITH OTHER POSSIBLE STRUCTURES.
DEVELOPING AREAS
29. DOESN'T YOUR EXPANSION INTO DEVELOPING AREAS OF THE WORLD MEANS YOU ENCOURAGE
PEOPLE TO ADOPT THE UNHEALTHY EATING HABITS OF AMERICANS?
• WE ARE IN THE BUSINESS OF GIVING CONSUMERS WHAT THEY WANT, NOT DICTATING THEIR
NEEDS AND PREFERENCES.
• WE PRODUCE FOOD PRODUCTS OF THE HIGHEST QUALITY, SAFETY, HYGIENE AND
NUTRITION FOR CONSUMERS WHO WISH TO BUY THEM, WHEREVER THEY LIVE.
• AS STANDARDS OF LIVING INCREASE IN DEVELOPING, SO DOES THE DESIRE FOR MORE
ACCESS TO WESTERN GOODS AND SERVICES.
BEE[~ &NO ILLICIT DRUGS
30. IS BEERA DRUG?
• TECHNICALLY, NO. A "DRUG" IS ANYTHING THAT CAN CHANGE THE WAY OUR MIND OR BODY
WORKS.
• ALCOHOL CAN BE CONSIDERED A LEGAL DRUG AND IS COMPLETELY DIFFERENT FROM
ILLICIT DRUGS.
• BEER IS A LEGAL BEVERAGE WHICH CONTAINS ALCOHOL.
31.
MMHY IS BEER LINKED WITH ILLICIT DRUGS?
• TO STRESS THE POTENTIAL HARM
THAT CAN COME TO CHILDREN WHO ARE NOT
EMOTIONALLY OR PHYSICALLY MATURE ENOUGH TO HANDLE AN ADULT PRODUCT LIKE
BEER.
EXPERTS SAY A MORE EFFECTIVE APPROACH IS TO TEACH CHILDREN THAT ANY USE OF
ILLICIT DRUGS MAY BE HARMFUL, WHILE DRINKING IN MODERATION IS SAFE FOR ADULTS
WHO CHOOSE TO DO SO.
32.
WHAT IS THE RESPONSE YOU GIVE TO SOMEONE WHO LINKS BEER WITH ILLICIT DRUGS?
• CAN LEGALLY AND SAFELY CONSUME A CAN OF BEER AND NOT CHANGE THE WAY YOUR
MIND OR BODY WORKS. CAN'T SAY THAT ABOUT ILLICIT DRUGS, WHICH ARE ILLEGAL AND
DANGEROUS.
• BEER GENERALLY ENJOYED WITH MEALS OR CONSUMED SOCIALLY.
• ILLICIT DRUGS HAVE NO LEGITIMATE USE AT ALL.
• NO LONG-TERM NEGATIVE EFFECTS FOR THE MAJORITY OF ADULTS WHO DRINK BEER, AS
LONG AS THEY DO SO RESPONSIBLY.
• SMALL AMOUNTS OF ILLICIT SUBSTANCES AFFECT YOU QUICKLY AND DRASTICALLY. BODY
HAS MUCH STRONGER ADVERSE REACTION TO ILLICIT DRUGS WITHOUT FEELING THE NEED
TO HAVE MORE.
13
DOMESTIC VIOLENCE/HIV AND AIDS
33.
ISN'T MILLER AND THE BEER INDUSTRY CONTRIBUTING FACTORS IN THE SPREAD OF DOMESTIC
VIOLENCE AND ABUSE?
ISSUES SURROUNDING FAMILY VIOLENCE ARE MULTI-FACETED.
CRITICS FAIL TO TAKE INTO ACCOUNT INCIDENTS THAT LEAD TO VIOLENCE.
BLAMING BEER INDUSTRY IS A QUICK FIX TO A SOCIETAL PROBLEM.
LIMITING SALE AND AVAILABILITY OF BEER WILL NOT CURB INCIDENCE OF FAMILY VIOLENCE
OR SPOUSAL ABUSE.
34.
ISN'T MILLER AND THE BEER INDUSTRY PARTLY TO BLAME FOR SEXUAL PROMISCUITY, THE
SPREAD OF HIV AND AIDS?
NO LINK BETWEEN ALCOHOL CONSUMPTION AND SEXUAL PROMISCUITY.
NO FACT-BASED DATA CONCLUDES BEER CONSUMPTION LEADS
TRANSMITTED DISEASES OR THE HIV VIRUS.
TO SEXUALLY
• MILLER SPENDS MILLIONS OF DOLLARS TO PROMOTE RESPONSIBLE USE OF ITS
PRODUCTS.
ANIMAL TESTING
35. WHAT IS THE CORPORATE POSITION ON ANIMAL TESTING. DO YOU DO ANY ANIMAL TESTING?
• WE DO NOT COMMENT ON DEVELOPMENT ACTIVITIES.
• COMPANY CONTRIBUTES TO RESEARCH AIMED AT TRYING TO IDENTIFY ALTERNATIVES TO
USING LABORATORY ANIMALS.
• CONFIDENTIAL:
KF NORTH AMERICAN DOES NO ANIMAL TESTING, BUT CONTRACTS FOR TESTING AT
FACILITIES THAT MEET OR EXCEED NATIONAL STANDARDS.
KF INTERNATIONAL DOES NO ANIMAL TESTING, BUT CONTRACTS FOR TESTING IN
THE U.S. AT NATIONALLY RECOGNIZED FACILITIES.
PM USA DOES ANIMAL TESTING IN EUROPE.
14
REGULATION / LEGISLATION
INDOOR SMOKING BAN PROPOSED BY OCCUPATIONAL SAFETY AND
HEALTH
ADMINISTRATION (OSHA)
SITUATION A NA L YSIS/EXECUTIVE SUMMA R Y
• THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION (OSHA), A DIVISION OF THE US
LABOR DEPARTMENT, HAS PROPOSED A RULE WHICH WOULD EFFECTIVELY BAN SMOKING IN
ALL WORKPLACES, INCLUDING RESTAURANTS AND BARS.
• UNDER THE OSHA PROPOSAL, SMOKING WOULD BE PERMITTED ONLY IN SPECIALLY DESIGNED
ENCLOSED AREAS WHICH HAVE DIRECT EXHAUST TO THE OUTSIDE AND ARE NEGATIVELY
PRESSURED. BUT NO WORK WOULD BE ALLOWED.
• COMPANIES THAT ARE FOUND TO BE IN VIOLATION OF THE SMOKING BAN COULD FACE FINES AS
HIGH AS $70,000 PER VIOLATION.
• IFTHE RULE BECOMES FINAL, BUILDING OWNERS WOULD BE GIVEN ANOTHER YEAR TO COME
INTO COMPLIANCE.
• THE PUBLIC'S RESPONSE TO THIS PROPOSED RULE WAS UNPRECEDENTED. OSHA RECEIVED
OVER 105,000 WRITTEN COMMENTS FROM THE PUBLIC, WHICH OVERWHELMINGLY OPPOSED
THE PROPOSED SMOKING RESTRICTIONS.
• OVER 200 REPRESENTATIVES OF THE SMALL BUSINESS COMMUNITY TESTIFIED THAT THE
PROPOSAL WOULD HAVE SEVERE ECONOMIC IMPACT ON SMALL BUSINESS.
POST-HEARING BRIEFS WERE FILED ON FEBRUARY 9.
A CONGRESSIONAL RESEARCH SERVICE (CRS) REPORT TITLED "ENVIRONMENTAL TOBACCO
SMOKE AND LUNG CANCER" WAS RELEASED IN NOVEMBER 1995. THE REPORT CALLS INTO
QUESTION THE VALIDITY OF THE EPA RISK ASSESSMENT ON ETS, CRITICIZED THE SCIENCE
UNDERLYING THE PROPOSED OSHA RULE MAKING AND REINFORCED PREVIOUS ORS
TESTIMONY ON ETS MADE BEFORE CONGRESS LAST YEAR. SUBSEQUENT TO THE REPORT'S
RELEASE, SEVERAL SENATORS WROTE OSHA REQUESTING A RE-EVALUATION OF THE RULE
MAKING.
HOW IS PM RESPONDING TO THE WORKPLACE SMOKING
OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION?
BAN PROPOSED BY THE
WE OPPOSE THE RULE BECAUSE IT IS A DE FACTO NATIONAL BAN.
WE BELIEVE THAT OSHA'S POSITION IS NOT SUPPORTED BY SCIENTIFIC DATA, RELIES ON
A FLAWED ECONOMIC ANALYSIS, AND IS LEGALLY INVALID.
OSHA HELD HEARINGS ON THE PROPOSED RULE FROM SEPTEMBER 1994 THROUGH MID-
MARCH 1995. PM AND OTHERS IN THE INDUSTRY ACTIVELY PARTICIPATED IN THE
HEARINGS.
MOST OF THOSE TESTIFYING ON THE PROPOSAL--INDEPENDENT EXPERTS, BUSINESS
OWNERS, UNION REPRESENTATIVES, REPRESENTATIVES OF THE HOSPITALITY INDUSTRY,
TRADE ASSOCIATION REPRESENTATIVES AND INTERESTED INDIVIDUALS~PPOSED THE
RULE AND SUGGESTED MORE RATIONAL ALTERNATIVES.
WE HOPE THAT THE AGENCY WILL EVENTUALLY PUT FORWARD A REVISED RULE THAT IS
LESS ONEROUS. THE ENTIRE PROCESS WILL MOST LIKELY NOT REACH RESOLUTION UNTIL
LATE THIS YEAR AT THE EARLIEST.
ON AVERAGE, IT TAKES OSHA APPROXIMATELY 7 YEARS TO PRODUCE A FINAL SET OF
REGULATIONS FROM A PROPOSED RULE.
A RECENT REPORT BY THE CONGRESSIONAL RESEARCH SERVICE, AN INDEPENDENT
RESEARCH SERVICE CONGRESS, FOUND THAT IF OSHA HAD PERFORMED A "META-
ANALYSIS," "IT SEEMS MORE LIKELY THAT IT WOULD HAVE FOUND NO INCREASE LUNG
CANCER RISK FROM OCCUPATIONAL ETS RISK EXPOSURE. N
INDOOR AIR QUALITY NEEDS IMPROVEMENT. THE REAL PROBLEM IS BUILDINGS WITH POOR
VENTILATION SYSTEMS OR POOR VENTILATION SYSTEM MAINTENANCE. WHERE
ADEQUATE VENTILATION EXISTS, POLICIES WHICH ACCOMMODATE SMOKERS AND NON-
SMOKERS ARE THE ANSWER. IF VENTILATION IS INADEQUATE, BANNING SMOKING WILL NOT
PREVENT POOR INDOOR AIR QUALITY.
2
VVHY DIDN'T PM TESTIFY AT THE OSHA HEARING?
• PRESENCE OF TOBACCO LIABILITY PLAINTIFFS~ A3-FORNEYS, WHOSE REAL INTEREST IS IN
SEEKING MONEY DAMAGES IN PROPOSING THEIR OWN CASES, ALONG WITH TWO ANTI-
TOBACCO ACTIVISTS SITTING ON THE OSHA PANEL, PRECLUDED A FAIR HEARING ON THE
RELEVANT ISSUES AND WOULD HAVE UNFAIRLY SUBJECTED COMPANY WITNESSES TO
HOSTILE AND INVASlVE CROSS-EXAMINATION ON ISSUES HAVING NOTHING TO DO WITH THE
HEARING.
o
WHAT IS THE STATUS OF THE PROPOSED RULE BY THE OCCUPATIONAL SAFETY AND HEALTH
ADMINISTRATION?
• OSHA RECEIVED OVER 110,000 WRITTEN COMMENTS ON ITS PROPOSED RULE, A
SUBSTANTIAL MAJORITY OF WHICH WERE HIGHLY CRITICAL.
• IN ADDITION, DURING A SIX-MONTH HEARING PROCESS, APPROXIMATELY 800 WITNESSES
REPRESENTING A BROAD RANGE OF INTERESTS TESTIFIED BEFORE THE OSHA PANEL.
MOST OF THESE WITNESSES EXPRESSED SERIOUS CONCERNS ABOUT THE NEED FOR
AND EFFECTIVENESS OF THE PROPOSED RULE.
• AFTER THE POST-HEARING BRIEFING PERIOD CLOSES ON FEB. 9, OSHA WILL REVIEW THE
COMPLETE DOCKET. IN LIGHT OF THE NUMEROUS CRITICAL COMMENTS AND THE RECENT
CRS REPORT WHICH CALLS INTO QUESTION THE EPA REPORT ON WHICH THE OSHA
PROPOSAL IS LARGELY BASED, WE ARE HOPEFUL THAT OSHA WILL RECONSIDER ITS
PROPOSAL.
3
THE FDA INITIATIVE REGARDING ITS JURISDICTION OVER TOBACCO PRODUCTS
DRUGS UNDER THE FEDERAL FOOD, DRUG AND COSMETIC ACT
AS
SITUA T/ON A NA L YSIS/EXECUTIVE S UMMA R Y
• ON AUGUST 10, THE FDA ASSERTED JURISDICTION OVER TOBACCO PRODUCTS. PRESIDENT
CLINTON HELD A CEREMONY IN THE OVAL OFFICE WITH CHILDREN TO ANNOUNCE A PROPOSAL
TO CURB YOUTH SMOKING, FOLLOWED BY A PRESS CONFERENCE TO ANNOUNCE ACCEPTANCE
OF THE FINDINGS THAT NICOTINE IN CIGARETTES BE DECLARED AN "ADDICTIVE DRUG" AND
SUBJECT TO FDA REGULATION.
• THE REGULATIONS WOULD, AMONG OTHER THINGS:
-- BAN ALL CIGARETTE SALES FROM VENDING MACHINES AND SELF-SERVICE DISPLAYS,
ALLOWING ONLY SALES BY CLERKS.
-- FORBID BRAND SPONSORSHIPS AND USE OF TOBACCO LOGOS ON PRODUCTS LIKE ASH
TRAYS AND HATS.
m FORBID OUTDOOR ADVERTISING WITHIN 1,000 FEET OF SCHOOLS AND PLAYGROUNDS.
m LIMIT CIGARETTE ADVERTISING TO MAGAZINES MEETING FDA CRITERIA OF "ADULT
READERSHIP."
m REQUIRE THE TOBACCO INDUSTRY TO PAY $150 MILLION ANNUALLY FOR AN ANTI-SMOKING
CAMPAIGN.
• PM AND THE FOUR MAJOR TOBACCO COMPANIES, ALONG WITH COYNE-BEAHM INC., A NORTH
CAROLINA ADVERTISING AGENCY, FILED SUIT TO STOP THE FDA FROM PROCEEDING WITH ITS
PROPOSED REGULATIONS GOVERNING CIGARETTES. ADVERTISING ASSOCIATIONS AS WELL AS
NACS AND UST HAVE ALSO FILED SUIT.
WHAT IS PM DOING ABOUT THE FDA ASSERTION OF JURISDICTION OVER CIGARETTES AS
"DRUGS" AND "MEDICAL DEVICES?"
• IT IS OUR POSITION THAT OUR CIGARE3-FES DO NOT FALL UNDER THE JURISDICTION OF THE
FDA. CONGRESS HAS NEVER GRANTED FDA SUCH AUTHORITY.
• WE BELIEVE THAT THE FDA'S REAL AGENDA IS TO RESTRICT OR EVEN BAN THE SALE OF
CIGARETTES TO ADULTS.
• TO CALL CIGARETTES A "DRUG" LIKE PENICILLIN OR A "MEDICAL DEVICE" LIKE A
PACEMAKER DEFIES COMMON SENSE AND THE LAW.
4
O
WILL THE REGULATIONS GO INTO EFFECT PENDING THE OUTCOME OF THE LAWSUIT? WILL YOU
TRY TO GET A STAY OF THE REGULATIONS? IF NOT, WILL YOU COMPLY WITH THE REGULATIONS
WHILE THE LAWSUIT IS PENDING?
• OUR LAWSUIT ASKS THE COURT TO REQUIRE THAT FDA WITHDRAW ITS ASSERTION OF
JURISDICTION AND PROHIBIT FDA FROM PROCEEDING WITH ITS RULE MAKING INITIATIVE.
• WE WILL PURSUE ALL LEGAL REMEDIES TO PREVENT FDA'S ILLEGAL ACTION.
HOW DO YOU RESPOND TO THE FDA'S STATEMENT THAT THERE IS GROWING EVIDENCE THAT
TOBACCO COMPANIES DELIBERATELY MAINTAIN THE LEVEL OF NICOTINE IN CIGARETTES AT
"ADDICTIVE" LEVELS?
• WE BELIEVE THAT THE FDA HAS UNFAIRLY MISCHARACTERIZED THE WAY WE MAKE AND
SELL CIGARETFES.
• WE HAVE FILED EXTENSIVE COMMENTS WITH THE FDA TO CORRECT THE RECORD.
DOESN'T KESSLER HAVE THE ABILITY TO REGULATE BASED ON EVIDENCE OF "NICOTINE
MANIPULATION"?
•
•
THE CHARGE IS BOTH FALSE AND LEGALLY IRRELEVANT.
CONGRESS HAS NOT GRANTED FDA THE LEGAL AUTHORITY TO REGULATE OUR
CIGARETTES.
ONLY WHEN A MANUFACTURER MAKES AN EXPRESS CLAIM OF THERAPEUTIC BENEFIT,
WHICH IS NOT THE CASE WITH CIGARETTES, CAN THE FDA REGULATE THE PRODUCT.
DOESN'T THE "CONSUMER INTENT" STANDARD PROVIDE A BASIS FOR JURISDICTION SINCE THE
FDA HAS CONCLUDED THAT NICOTINE IS "ADDICTIVE"?
• NO COURT HAS EVER RULED THAT A PRODUCT IS A "DRUG" BECAUSE OF THE WAY
CONSUMERS USE THE PRODUCT.
VVHY ARE YOU SUING WHEN THE FDA HAS SAID IT DOES NOT WANT TO BAN THE PRODUCT?
• WE CHALLENGE FDA'S CONCLUSION THAT CIGARETTES ARE A "DRUG" OR "MEDICAL
DEVICE" SUBJECT TO REGULATION UNDER THE FEDERAL FOOD, DRUG AND COSMETIC
ACT.
• WE BELIEVE THAT FDA HAS ABSOLUTELY NO ROLE IN THE REGULATION OF OUR
CIGARETTES.
• THIS IS THE POSITION THAT FDA ITSELF HAS TAKEN PREVIOUSLY AND CONGRESS HAS
ACCEPTED. WHEN A FEDERAL REGULATORY AGENCY STEPS OUTSIDE ITS LEGAL
BOUNDARIES, WE ARE OBLIGATED TO CHALLENGE THE ACTION.
10.
ISN'T THE FDA'S HISTORICAL POSITION ON JURISDICTION MOOT IN LIGHT OF ALL THE NEW
EVIDENCE ON "ADDICTION" AND "MANIPULATION"?
• NO. FDA MAY REGULATE A PRODUCT IF IT IS PROMOTED AND MARKETED FOR
THERAPEUTIC PURPOSE. THAT IS NOT HOW CIGARE~ES ARE MARKETED.
11.
ARE YOU SAYING THAT FDA JURISDICTION WILL NECESSARILY LEAD TO A BAN ON THE
PRODUCT?.
WE ARE CHALLENGING FDA'S ASSERTION THAT IT HAS THE AUTHORITY TO REGULATE
CIGAREq~ES IN ANY WAY.
• MANY AUTHORITIES, INCLUDING FORMER FDA COMMISSIONERS, HAVE SAID THAT AN
ASSERTION OF JURISDICTION OVER CIGARETTES AS A "DRUG" WOULD EMPOWER FDA TO
CONTROL ALL ASPECTS OF CIGAR~E MANUFACTURING, LABELING AND SALES.
6
o
o
12.
13.
14.
15.
16.
DOESN"I" THE NEED TO PREVENT MINORS FROM SMOKING JUSTIFY FDA JURISDICTION?
• No. COMMISSIONER KESSLER'S STATED DESIRE TO PREVENT YOUTH SMOKING CANNOT
CREATE FDA JURISDICTION WHERE NONE EXISTS.
• FDA HAS NO AUTHORITY TO REGULATE OUR CIGARE'FrES.
• FDA's PROPOSED REGULATIONS WOULD LARGELY DUPLICATE FEDERAL AND STATE
PROGRAMS ALREADY IN PLACE TO CONTROL YOUTH SMOKING.
• PM HAS LONG BEEN COMMITTED TO CURTAILING MINORS' ACCESS TO TOBACCO
PRODUCTS. RECENTLY, WE ANNOUNCED A PROGRAM CALLED ACTION AGAINST ACCESS IN
THE U.S.
WILL YOU PARTICIPATE IN THE FDA'S RULE MAKING?
• YES. THE CIGARETTE COMPANIES FILED A 2,000-PAGE DOCUMENT CHALLENGING EVERY
ASPECT OF THE FDA'S RULE WITH 45,000 PAGES OF SUPPORTING MATERIAL.
HOW WOULD YOU RATE YOUR CHANCES OF SUCCESS?
• WE BELIEVE THAT THE LAW AND COMMON SENSE SHOULD PREVAIL AND THAT FDA'S
ACTION WILL NOT BE ALLOWED TO STAND.
WHAT IS THE IMPACT OF THE FDA'S REGULATIONS ON YOUR BUSINESS?
• COMMISSIONER KESSLER'S ASSERTION OF JURISDICTION HAS ALREADY HAD A NEGATIVE
EFFECT.
• FARMERS, MANUFACTURERS AND RETAILERS ACROSS THE NATION ARE NOW
APPREHENSIVE ABOUT THEIR JOBS AND FEAR THE ECONOMIC IMPACT OF THE FDA'S
DECISION IN THEIR COMMUNITIES.
WHAT WILL BE THE IMPACT OF FDA'S REGULATION OF CIGARE'I-rES ON CIGARETTE EXPORTS?
• COMMISSIONER KESSLER'S PROPOSED REGULATIONS ARE DIRECTED AT SALES AND
MARKETING ACTIVITIES IN THE UNITED STATES, AND DO NOT APPLY EITHER TO EXPORTS
OR PRODUCTS MADE AND SOLD OUTSIDE THE U.S.
7
17. WILL SIMILAR INITIATIVES BE TAKEN BY REGULATORY AUTHORITIES IN OTHER COUNTRIES?
• IT IS DIFFICULT TO PREDICT.
18.
WHITE HOUSE NEGOTIATIONS STATUS?
• WE REMAIN WILLING TO MEET WITH ANYONE WHO SHARES A SINCERE INTEREST IN FINDING
APPROPRIATE WAYS TO ACHIEVE THE KEY GOAL m REDUCING YOUTH SMOKING.
19.
PUBLIC SUPPORTS FDA REGULATIONS (COSH POLL)?
• REGARDLESS OF ONE'S FEELINGS ON TOBACCO, THE ISSUE OF FDA JURISDICTION IS NOT
A MATTER OF PUBLIC REFERENDUM. CONGRESS HAS CREATED A CAREFULLY BALANCED
SCHEME OF FEDERAL REGULATION OF TOBACCO WHICH SPECIFICALLY EXCLUDES A ROLE
FOR THE FDA.
• WHAT CONGRESS AND THE PUBLIC WANT FROM THE FDA IS TO DO A BET~R JOB WITH ITS
EXISTING MANDATES.
ALLEGATIONS THAT TOBACCO IS UNDER-REGULATED
20. ISN'T TOBACCO UNDER-REGULATED?
• TOBACCO AND CIGARETTES ARE REGULATED ACCORDING TO A PROGRAM CAREFULLY
DEVELOPED BY CONGRESS OVER MANY YEARS.
• CLAIMS OF "UNDER-REGULATION" ARE MADE BY ANTI-SMOKING ACTIVISTS DETERMINED TO
PUT TOBACCO INDUSTRY OUT OF BUSINESS.
8
21. WHAT IS THE PROSPECT FOR ENACTMENT OF LEGISLATION TO STOP THE FDA PLAN TO
REGULATE TOBACCO PRODUCTS AS A DRUG/MEDICAL DEVICE?
• CONGRESS INTRODUCED SEVERAL BILLS TO STOP THE FDA'S ILLEGAL AND
UNPRECEDENTED QUEST TO REGULATE THESE PRODUCTS WITHOUT CONGRESSIONAL
AUTHORIZATION. WE ARE STUDYING THESE BILLS AND PURSUING OUR LAWSUITS TO
OVERTURN THE FDA'S ACTION.
• CONGRESS, THE FTC, THE FCC, THE DEPT. OF HEALTH AND HUMAN SERVICES, THE
TREASURY DEPT., AND THE AGRICULTURE DEPT. ALREADY HAVE EXTENSIVE
REGULATORY AUTHORITY OVER VARIOUS ACTIVITIES OF THE INDUSTRY. THEREFORE, A
STRONG CASE EXISTS FOR FDA'S ACTION TO BE OVERTURNED.
22. BUT HASN'T FDA COMMISSIONER DAVID KESSLER RECENTLY SAID THAT TOBACCO IS
"ADDICTING," THAT CIGARETTE COMPANIES INTEND TO "ADDICT" CONSUMERS TO THEIR
PRODUCTS BY ADDING OR "MANIPULATING'P'CONTROLLING" NICOTINE, AND THAT THEREFORE
THE FDA SHOULD REGULATE TOBACCO AS A "DRUG".'?
• WE DISAGREE WITH COMMISSIONER KESSLER'S STATEMENTS.
• M ANUFACTURERS DO NOT ADD NICOTINE TO THEIR
PRODUCTS OR
"MANIPULATE"/"CONTROL" NICOTINE TO "ADDICT" CONSUMERS. FDA HAS REPEATEDLY
SAID m AND BEEN UPHELD BY THE COURTS m THAT IT HAS NO AUTHORITY TO REGULATE
TOBACCO AS A DRUG.
9
ASSIST
SITUATION ANALYSIS /EXECUTIVE SUMMARY: PROJECT ASSIST IS A FEDERAL PROGRAM
ESTABLISHED 4 YEARS AGO AND EXPRESSLY DESIGNED TO REDUCE THE INCIDENCE OF SMOKING IN
17 TARGETED STATES. A TOTAL OF $115 MILLION IS BEING SPENT OVER 7 YEARS ON THE PROJECT,
WITH AN ADDITIONAL $35 MILLION CONTRIBUTED BY THE AMERICAN CANCER SOCIETY. 3 YEARS
WERE DEVOTED TO RESEARCH AND PREPARATION; THIS PAST YEAR AND THE NEXT 3 FEATURE
IMPLEMENTATION.
23. WHAT IS THE STATUS OF THE ASSIST PROGRAM? ARE ASSIST FUNDS BEING USED FOR
LOBBYING AND IF SO, WHAT ARE WE DOING ABOUT IT?.
• ASSIST FUNDS ARE DISTRIBUTED TO STATE BOARDS OF HEALTH, WHICH THEN DISBURSE
THE FUNDS TO LOCAL ANTI-SMOKING GROUPS THAT APPLY FOR SUPPORT THROUGH
PROJECT PROPOSALS.
THERE HAS BEEN SOME SUGGESTION THAT ASSIST FUNDS ARE BEING USED FOR
LOBBYING PURPOSES, WHICH WOULD VIOLATE FEDERAL AND, POTENTIALLY, STATE
REGULATIONS ON THE EXPENDITURES OF FEDERAL FUNDS. WE AND OTHERS ARE
LOOKING CAREFULLY AT THIS MAq-FER.
10
DEPARTMENT OF HEALTH AND
ALCOHOL, DRUG ABUSE AND
REORGANIZATION ACT
24.
HUMAN SERVICES RULES PURSUANT TO THE 1992
MENTAL HEALTH ADMINISTRATION (ADAMHA)
WHAT IS PM'S POSITION ON THE RULES ISSUED RECENTLY BY HHS WHICH ARE DESIGNED TO
CURB TOBACCO SALES TO MINORS?
• PM WELCOMES THE HHS RULES. THEY ARE DESIGNED TO PROMOTE STATE EFFORTS TO
CURB TOBACCO SALES TO MINORS AND ARE CONSISTENT WITH OUR CORE BELIEF THAT
KIDS SHOULD NOT SMOKE AND SHOULD NOT HAVE ACCESS TO TOBACCO PRODUCTS.
• RULES ISSUED PURSUANT TO A 1992 LAW IN WHICH CONGRESS PLACED RESPONSIBILITY
FOR CURBING YOUTH ACCESS TO CIGARETTES WITH THE STATES NOT THE FDA.
• ESSENTIAL LAW PROVISIONS INCLUDE: MANDATED ENFORCEMENT OF STATE MINIMUM AGE
LAWS; RANDOM UNANNOUNCED INSPECTIONS; AND THE REQUIREMENT THAT EACH STATE
SUBMIT AN ANNUAL REPORT TO HHS ON ENFORCEMENT ACTIVITIES AND SUCCESSES. WE
AGREE WITH ALL THESE PROVISIONS.
• AS PART OF ACTION AGAINST ACCESS INITIATIVE, PM USA IS WORKING WITH MEMBERS OF
THE TOBACCO, RETAIL AND WHOLESALE INDUSTRIES, STATE LEGISLATORS AND LAW
ENFORCEMENT AUTHORITIES TO SUPPORT MORE VIGOROUS ENFORCEMENT OF EXISTING
STATE LAWS. WE ALSO WORK AGGRESSIVELY FOR PASSAGE OF ADDITIONAL STATE
LEGISLATION TO MEET THE REQUIREMENTS OF THE 1992 STATUTE.
TOBACCO PROGRAM
25. WHY DOES PM USA SUPPORT THE FEDERAL TOBACCO PROGRAM?
• U.S. FLUE-CURED AND BURLEY TOBACCO IS THE BACKBONE OF OUR BRANDS. THE
TOBACCO SUPPORT PROGRAM ASSURES A STABLE SUPPLY OF TOBACCO AT RELATIVELY
STABLE PRICES, WHICH IS IN PM USA'S BEST INTEREST.
11
PURCHASING
26. WHAT IS THE IMPACT OF THE 75 PERCENT DOMESTIC LEAF LEGISLATION ON PM USA?
• THAT LEGISLATION WAS CHALLENGED IN THE WORLD COURT AND
IS NO LONGER
RELEVANT.
• WE SUPPORTED THE "75/25" LEGISLATION FOR TWO REASONS:
-- FELT IT WAS CRITICAL FOR THE LONG-TERM VIABILITY OF THE FEDERAL TOBACCO
PROGRAM AND DOMESTIC TOBACCO GROWERS; AND
m WE USE SUCH A HIGH PERCENTAGE OF DOMESTIC LEAF IN OUR BRANDS AND FELT
THAT THIS LEGISLATION WOULD INSURE AN ADEQUATE SUPPLY OF U.S. GROWN LEAF
FOR THE LONG TERM.
• TODAY WE ARE WORKING WITH THE UNITED STATES TRADE REPRESENTATIVE (USTR) ON
ARTICLE 28 TO ACCOMPLISH THE SAME GOALS.
TOBACCO SUBSIDIES
27. GIVEN THE ALLEGED HEALTH EFFECTS OF CIGAREI-~E SMOKING, WHY SHOULD THE FEDERAL
GOVERNMENT SUBSIDIZE TOBACCO FARMERS?
• THERE IS NO FEDERAL TOBACCO FARM SUBSIDY.
• THERE IS A TOBACCO PRICE SUPPORT PROGRAM TO ENSURE THAT TOBACCO FARMERS
GET A FAIR PRICE FOR THEIR CROPS.
• GOVERNMENT-BACKED LOANS MADE UNDER THE PROGRAM ARE PAID BACK TO THE
GOVERNMENT--WITH INTEREST.
• THE PROGRAM DOES NOT COST U.S. TAXPAYERS ANYTHING EXCEPT FOR ADMINISTRATIVE
FEES, WHICH ARE MINIMAL.
• EVEN FORMER SURGEON GENERAL KOOP ACKNOWLEDGED THAT THE TOBACCO PRICE
SUPPORT PROGRAM IS AN AGRICULTURAL AND ECONOMIC MAq-FER, NOT A HEALTH ISSUE.
12
ETS SMOKING BAN
28. HAS EPA'S RISK ASSESSMENT ON ENVIRONMENTAL TOBACCO SMOKE (ETS) INCREASED THE
TREND OF BOTH PUBLIC AND PRIVATE SMOKING BANS?
• PUBLIC SURVEYS DEMONSTRATE THAT MOST AMERICANS FAVOR POLICIES OF
ACCOMMODATION INSTEAD OF SMOKING BANS. WHILE THERE HAS BEEN AN INITIAL TREND
TOWARD MORE SMOKING BANS, WE ARE HOPEFUL THE PUBLIC'S DESIRE FOR
ACCOMMODATION POLICIES WILL LEAD TO MORE REASONED DECISIONS BY PUBLIC
OFFICIALS.
• AFTER REVIEWING DATA USED BY THE EPA PLUS 4 MAJOR NEW STUDIES, THE CRS
(CONGRESSIONAL RESEARCH SERVICE) REINFORCED ITS TESTIMONY IN THE LAST
CONGRESS STATING THAT "THE STATISTICAL EVIDENCE DOES NOT APPEAR TO SUPPORT
A CONCLUSION THAT THERE ARE SUBSTANTIAL HEAL TH EFFECTS OF PASSIVE SMOKING."
EU CIGARETTE ADVERTISING BAN
29. WILL THERE BE EU LEGISLATION TO BAN ClGARE'rTE ADVERTISING?
• EUROPEAN COMMISSION PROPOSED AN EU-WIDE ADVERTISING BAN YEARS AGO. THIS
PROPOSAL NEVER ACHIEVED SUFFICIENT SUPPORT AMONG THE MEMBER STATES TO
PASS THROUGH THE EU HEALTH COUNCIL. COUNCIL'S LEGAL SERVICE CONCLUDED THAT
THE EU DOES NOT HAVE THE COMPETENCE TO ENACT BINDING HEALTH LEGISLATION.
• WE BELIEVE A NUMBER OF COUNTRIES WILL CONTINUE TO VOTE AGAINST A TOTAL AD BAN,
AND SO BLOCK ANY SUCH LEGISLATION.
• SPANISH PRESIDENCY RECENTLY PROPOSED COMPROMISE LEGISLATION THAT WOULD
OVERCOME THE OPPOSITION OF THE BLOCKING GROUP. THIS FAILED TO GENERATE
MEANINGFUL SUPPORT.
• OPTIMISTIC THE PRINCIPLE OF SUBSlDIARITY WILL PREVAIL, AND HEALTH-BASED
LEGISLATION WILL CONTINUE TO BE THE PREROGATIVE OF NATIONAL GOVERNMENTS.
FOOD
FDA ENFORCEMENT
80. WHAT IS KF'S POSITION ON PROPOSALS THAT WOULD GIVE ADDITIONAL ENFORCEMENT
AUTHORITY TO THE FDA OVER THE FOQD INDUSTRY?
• THE FDA HAS SHOWN THAT ITS EXISTING POWERS AND ENFORCEMENT MECHANISMS CAN
BE MOST EFFECTIVE IN ENSURING INDUSTRY COMPLIANCE.
• STRONG LEADERSHIP, AGGRESSIVE RISK-BASED ENFORCEMENT AND EFFICIENT
MANAGEMENT OF RESOURCES ARE THE KEYS TO AN EFFECTIVE FDA.
• UNPRECEDENTED AND EXTREME NEW FDA ENFORCEMENT POWERS ARE AN
UNNECESSARY INTRUSION INTO MANUFACTURING OPERATIONS.
FDA
31.
USER FEES
DOES KF BELIEVE THAT FOOD INDUSTRY USER FEES ARE A PROPER WAY TO HELP FUND FDA
OPERATIONS?
• NO. SINCE THE FDA REGULATES INDUSTRIES WHICH COMPRISE NEARLY 25% OF GNP,
WE FEEL THAT MORE REALISTIC BUDGETING AND A GREATER FEDERAL FUNDING
COMMITMENT, NOT ILL-CONCEIVED USER FEE SCHEMES, ARE NEEDED TO IMPROVE THE
AGENCY'S OPERATIONS.
• USER FEES ARE A DISGUISED ATFEMPT TO RAISE TAXES, WHICH ARE ALREADY TOO HIGH.
USDA FOOD SAFETY FUNCTIONS
32.
DOES KF SUPPORT THE RECOMMENDATIONS OF THE VICE PRESIDENT'S TASK FORCE ON
REINVENTING GOVERNMENT THAT CALLS FOR TRANSFERRING THE FOOD SAFETY
RESPONSIBILITIES OF USDA, NOW CARRIED OUT BY THE FOOD SAFETY AND INSPECTION
SERVICE (FSIS), TO THE FDA?
• KF BELIEVES THE CURRENT MEAT AND POULTRY INSPECTION SYSTEM IS OUTMODED,
DOES NOT PROVIDE ADEQUATE PUBLIC HEALTH PROTECTION AND IS GREATLY IN NEED OF
REFORM.
REQUIRED REFORM CAN BE CARRIED OUT EFFECTIVELY BY THE USDA.
14
"FOOD SAFETY" / DELANEY
33.
CLAUSE
WHAT IS KF'S POSITION ON 'FOOD SAFETY' LEGISLATION THAT SEEKS TO BAN OR SEVERELY
LIMIT THE USE OF PESTICIDES IN THE PRODUCTION OF FOOD?
• KF IS COMMITTED TO PROVIDING A SAFE, PLENTIFUL AND AFFORDABLE FOOD SUPPLY FOR
CONSUMERS, AND OPERATES IN COMPLIANCE WITH ALL APPLICABLE LAWS AND
REGULATIONS GOVERNING PUBLIC HEALTH AND SAFETY.
• ZERO-TOLERANCE APPROACH OF THE SO-CALLED 'DELANEY CLAUSE" IS BASED ON
ANTIQUATED NOTIONS OF FOOD SAFETY.
• LEGISLATIVE EFFORTS TO RESOLVE THE PROBLEMS CREATED BY THE DELANEY CLAUSE
SHOULD BE GUIDED BY MODERN SCIENTIFIC AND RISK ASSESSMENT PRINCIPLES, AND
SHOULD ALLOW THE FDA TO APPROVE SAFE FOOD INGREDIENTS AND THE EPA TO SET
PESTICIDE TOLERANCES BASED ON A RISK STANDARD WHERE BOTH THE ECONOMIC AND
HEALTH BENEFITS OF PESTICIDE USE ARE CONSIDERED.
DOWNSlZING OR "PACKAGE SHORTING"
34. WHAT IS KF'S POSITION ON "DOWNSIZING" LEGISLATION WOULD REQUIRE MANUFACTURERS TO
PLACE A NOTICE ON A PACKAGE OR SHELF IF PRODUCT CONTENTS ARE REDUCED BUT THE
PACKAGE REMAINS THE SAME?
• KF BELIEVES THAT LEGISLATION IS UNNECESSARY AND GROCERY PRODUCTS ARE
ACCURATELY LABELED AS TO WEIGHT, SERVING SIZE AND PRICE.
• NO BASIS FOR BELIEVING THAT CONSUMERS ARE MISLED BY CHANGES IN PACKAGE SlZES.
• IF A PACKAGE OR LABELING HAS THE CAPACITY OR POTENTIAL TO MISLEAD CONSUMERS
REGARDING THE CONTENT OR VALUE OF PURCHASE, CURRENT LAW PROVIDES FDA WITH
THE AUTHORITY TO CORRECT THE MISLEADING PACKAGE OR LABEL THROUGH SEIZURE OR
CRIMINAL PROSECUTION.
15
FOOD INDUSTRY POLICY
35.
WHAT ARE SOME OF THE LEGISLATIVE AND REGULATORY CHALLENGES FACING THE FOOD
INDUSTRY?
• SOLID WASTE MANAGEMENT.
• NATIONALLY UNIFORM LABELING REQUIREMENTS AND RESTRICTIONS.
• UNIFORM APPLICATION OF A SCIENTIFICALLY SOUND NEGLIGIBLE RISK STANDARD FOR
ADDITIVES AND PESTICIDE RESIDUES IN FOODS.
• FDA USER FEE IMPLEMENTATION.
• PROPOSALS FOR DETAILED SAFETY CONTROLS OF PROCESSING.
• FORCED DEPOSIT LAWS.
• VARIETY OF TAXATION INITIATIVES (EXCISE, SELECTIVE FOOD, CORPORATE, FOREIGN
SOURCE ROYALTY INCOME, LIMITATIONS ON THE DEDUCTIBILITY OF ADVERTISING,
AMORTIZATION OF INTANGIBLES, INCLUDING GOODWILL).
BEER
ADVERTISING WARNING LEGISLATION
36. COULD YOU DETAIL YOUR OPPOSITION TO LEGISLATION WHICH WOULD MANDATE HEALTH
WARNINGS ON ALCOHOL ADVERTISING?
• NUMEROUS STUDIES DEMONSTRATI=D THAT THESE WARNING MESSAGES DO NOT REDUCE
ALCOHOL ABUSE AMONG ANY SEGMENT OF THE POPULATION. THESE PROPOSALS DIVERT
ATTENTION AND RESOURCES FROM OTHER EFFECTIVE PROGRAMS THAT WE SUPPORT TO
COMBAT ABUSE. ADVERTISING DOES NOT CAUSE ALCOHOL ABUSE, AND THERE IS NO
EVIDENCE TO SUPPORT THAT LINK.
N
O
16 -
FEDERAL BUDGET CUTS FOR PREVENTION AND TREATMENT
37. LAST YEAR, CONGRESS FORCED THE FEDERAL GOVERNMENT TO SPEND LESS MONEY FOR
ALCOHOL ABUSE TREATMENT AND PREVENTION. MEDIA REPORTS HIGHLIGHTED THE ACTIVITIES
OF THE ALCOHOL INDUSTRY IN SUPPORT OF THESE CUTS. WHAT IS THE POSITION OF P M
REGARDING THESE PROGRAMS?
• MILLER SUPPORTS HEALTH CARE PROGRAMS THAT PROVIDE FOR ACTUAL TREATMENT OF
INDIVIDUALS WHO USED ALCOHOL PRODUCTS IN AN IRRESPONSIBLE FASHION. WE SEE
ALCOHOL ABUSE TREATMENT AS AN IMPORTANT PART OF OUR RESPONSIBLE
CONSUMPTION CAMPAIGN.
• DO NOT SUPPORT FUNDING OF ADMINISTRATIVE ACTIVITIES OF ANTI-ALCOHOL GROUPS
WHO CARRY THE NEO-PROHIBITIONIST MESSAGE. WE BELIEVE THE GOVERNMENT'S
POSITION AND ITS PROGRAMS REGARDING ALCOHOL USE SHOULD BE FAIR AND
INFORMATIVE TO ALL ADULTS.
RISK ASSESSMENT
38. WHAT IS PHILIP MORRIS° POSITION ON LEGISLATION TO REQUIRE RISK ASSESSMENT AND
COST/BENEFIT ANALYSIS FOR FEDERAL REGULATIONS?
• WE SUPPORT IT. USE OF UNBIASED, OBJECTIVE RISK ASSESSMENT BASED ON SOUND
SCIENCE CAN PLAY AN IMPORTANT ROLE TO HELP ENSURE FEDERAL REGULATORY
EFFORTS ACCURATELY IDENTIFY SIGNIFICANT RISKS TO PUBLIC HEALTH AND THE
ENVIRONMENT.
• ASSESSMENT OF THE COSTS OF REGULATORY PROPOSALS AND THE BENEFITS EXPECTED
FROM SUCH REGULATION WOULD PROVIDE A BASIS FOR PRIORITIZlNG FEDERAL ACTION
AND ENSURING THAT SCARCE RESOURCES ARE TARGETED TO PRODUCE MAXIMUM
BENEFIT TO THE PUBLIC.
17
LOBBYING
39. THERE HAVE BEEN NUMEROUS REPORTS OF TOBACCO INDUSTRY "INFLUENCE PEDDLING."
SPECIFICALLY, PM HAS BEEN ACCUSED OF USING SUBSTANTIAL CORPORATE MONEY TO
DEFEAT HEALTH LEGISLATION AT STATE AND FEDERAL LEVELS. AREN'T WE ENTITLED TO KNOW
HOW MUCH PM SPENDS TO INFLUENCE PUBLIC POLICY?
• PM COMPLIES WITH ALL REQUIRED DISCLOSURES FOR LOBBYING EXPENSES.
• LAW REVISED FOR 1996. PM WILL COMPLY FULLY WITH THOSE CHANGES.
TORT REFORM
40. WILL CONGRESS PASS PRODUCT LIABILITY REFORM LEGISLATION?
• FOR OVER 14 YEARS, CONGRESS CONSIDERED UNIFORM PRODUCT LIABILITY LEGISLATION
WITHOUT PASSING A BILL. WITH THE NEW CONGRESS, PROSPECTS FOR PASSAGE HAS
SIGNIFICANTLY INCREASED. CONGRESS CURRENTLY CONSIDERING FINAL PASSAGE OF
LEGISLATION THAT WOULD HELP THE BUSINESS COMMUNITY.
• WE BELIEVE PROSPECTS FOR REASONABLE, BALANCED TORT REFORM LEGISLATION ARE
VERY GOOD AT THE STATE LEVEL AS A RESULT OF THE RECENT ELECTIONS.
41.
WHAT IS PM'S POSITION ON TORT REFORM AND HOW ARE WE TRYING TO IMPACT LEGISLATIVE
DECISIONS?
• BELIEVE LIABILITY DOCTRINES SHOULD BE FAIR AND REASONABLE TO CONSUMERS AND
MANUFACTURERS. CURRENTLY THE UNPREDICTABILITY OF THE U.S. LEGAL SYSTEM
INCREASES CONSUMER COSTS, STIFLES COMPETITION AND INHIBITS INNOVATION.
• WE PARTICIPATE IN NATIONAL AND STATE TORT REFORM COALITIONS ALONG WITH THE
REST OF THE BUSINESS COMMUNITY TO REDRESS THIS IMBALANCE.
18
42.
WHY DOES PHILIP MORRIS OPPOSE LEGISLATION TO LIMIT THE ABILITY OF TRIAL COURTS TO
ISSUE PROTECTIVE ORDERS IN LITIGATION THAT KEEPS INFORMATION ABOUT PRODUCT
DEFECTS OR OTHER PUBLIC HAZARDS AWAY FROM THE PUBLIC?
• EXISTING COURT RULES GENERALLY GRANT TRIAL JUDGES DISCRETION TO KEEP
INFORMATION CONFIDENTIAL. THIS ALLOWS PROTECTION OF TRADE SECRETS, PERSONAL
MEDICAL RECORDS OR OTHER INFORMATION PRODUCED DURING THE DISCOVERY
PROCESS AND NOT INTRODUCED AT TRIAL WHICH COULD BE TAKEN OUT OF CONTEXT.
• THE PLAINTIFFS' BAR HAS NOT SHOWN THAT TRIAL JUDGES ARE ABUSING THIS DISCRETION,
SO SUCH LEGISLATION IS SIMPLY UNNECESSARY.
SOLID WASTE LEGISLATION
43. DO WE ANTICIPATE MORE "RATES AND DATES" PROPOSALS FOR MANDATED RECYCLING DURING
THE NEXT YEAR?
• ENVIRONMENTALISTS CONTINUE TO PRESS FOR ADOPTION OF PACKAGING LEGISLATION
AS A SOLUTION TO MUNICIPAL SOLID WASTE PROBLEMS. WE EXPECT A NUMBER OF
STATES MAY CONSIDER PACKAGING LEGISLATION WHICH WOULD SEEK TO RESTRICT OR
BAN THE USE OF FOOD PACKAGING. THE MOST PREVALENT KIND OF PACKAGING
LEGISLATION, SO-CALLED "RATES AND DATES" PROPOSALS, WOULD REQUIRE PACKAGING
TO MEET ONE OF FOUR OPTIONS BY CERTAIN DATE: RECYCLED CONTENT, REUSE/REFILL,
RECYCLING RATE OR SOURCE REDUCTION. PACKAGING WHICH DOES NOT COMPLY WITH
ONE OF THESE REQUIREMENTS WOULD BE BANNED IN THAT STATE.
19
44.
WHAT OTHER KINDS OF SOLID WASTE LEGISLATION CAN WE EXPECT IN 1996?
• TREND TO EXPAND BOTTLE DEPOSIT LEGISLATION OF ALL KINDS. STATES SEE BOTTLE
DEPOSITS AS A WAY TO RAISE FUNDS BY CLAIMING ALL OR A PORTION OF THE ESCHEAT.
LIKELY OREGON BALLOT INITIATIVE TO EXPAND THE EXISTING BOTTLE BILL IN THE STATE.
• ADVANCE DISPOSAL FEE (ADF) LEGISLATION ALSO MAY BE PROPOSED IN SOME STATI=S.
SOME; STATES SEE ADF PROGRAMS AS A WAY TO RAISE REVENUE FOR NON-SOLID
WASTE PROJECTS. = -
• PROPOSED LEGISLATION TO REQUIRE LABELING OF RECYCLED CONTENT IN ALL
PACKAGES WOULD REQUIRE KF TO LABEL EVERY PACKAGE ACCORDING TO HOW MUCH
RECYCLED MATERIAL IS INCLUDED IN THAT PACKAGE EVEN IF IT WERE 0%.
ENVIRONMENTAL ACTIVISTS CLAIM THAT THIS IS THE ONLY WAY TO FORCE PRODUCT
MANUFACTURERS TO INVEST IN RECYCLING MARKETS, A VIEW WHICH WE BELIEVE IS
WHOLLY MISGUIDED.
BOTTLE DEPOSIT LEGISLATION
45. WHY DOES PHILIP MORRIS OPPOSE BOTFLE DEPOSIT LEGISLATION?
• BOTTLE DEPOSITS ARE AN ECONOMICALLY INEFFICIENT MEANS OF DEALING WITH SOLID
WASTE, PLACING AN UNFAIR BURDEN ON CERTAIN PACKAGING TYPES WHILE DOING LITTLE
TO REDUCE OVERALL SOLID WASTE.
• SOLID WASTE SHOULD BE MANAGED USING A COST-EFFECTIVE AND NON-DISCRIMINATORY
SYSTEM INTEGRATING SOURCE REDUCTION, RECYCLING, ENERGY RECOVERY, AND LAND.
DISPOSAL AS NECESSARY.
20
QUEBEC/CANADA:
46.
POST REFERENDUM DEVELOPMENTS
THE CLOSE OUTCOME OF THE QUEBEC REFERENDUM VOTE OPENED THE DOOR TO SIGNIFICANT
CONSTITUTIONAL REFORM IN CANADA AND WEAKENED THE FEDERAL GOVERNMENT. THERE IS
EVIDENCE THAT ONTARIO, ALBERTA, AND BRITISH COLUMBIA COULD JOIN WITH QUEBEC TO
SEEK REFORMS AIMED AT GREATER DEVOLUTION OF FEDERAL POWERS TO PROVINCES. HOW
IS KRAFT CANADA RESPONDING TO THIS RISK OF BALKANISATION WHICH COULD WEAKEN THE
CANADIAN DOLLAR, HINDER THE FEDERAL GOVERNMENT'S ABILITY TO REDUCE THE DEFICIT AND
REDUCE CONSUMER AND INVESTOR CONFIDENCE?
• WILL NOT COMMENT ON THE CITIZENS' RIGHTS TO DETERMINE THEIR FUTURE IN A
DEMOCRATIC SOCIETY.
• KCI WILL ENCOURAGE THE FEDERAL AND PROVINCIAL GOVERNMENTS TO WORK
TOGETHER TOWARD SOLUTIONS WHICH AVOID SIGNIFICANT DISRUPTIONS TO NATIONAL,
PROVINCIAL AND INTERNATIONAL BUSINESS ACTIVITIES.
• WORK WITH GOVERNMENT TO MAINTAIN COMMON NATIONAL STANDARDS AND TO REMOVE
INTER-PROVINCIAL TRADE BARRIERS.
• WORK WITH GOVERNMENT AND BUSINESS COMMUNITY TO FOSTER UNDERSTANDING OF
THE RISKS OF POLITICAL UNCERTAINTY IN INVESTMENTS, EMPLOYMENT, PLANT LOCATION
AND BUSINESS EXPANSION.
21
N
TOBACCO OPERATIONS
PRODUCT RECALL
1. VVHY DID PHILIP MORRIS INITIATE A RECALL OF BILLIONS OF ITS CIGARETTES LAST MAY?
• THE VOLUNTARY RECALL WAS INITIATED AS A PRE-EMPTIVE AND PRECAUTIONARY
MEASURE BECAUSE A TASTE AND ODOR PROBLEM WAS DETECTED IN MANUFACTURING IN
SOME CIGARETTES SHORTLY BEFORE THE MEMORIAL DAY WEEKEND. WE HAVE NO
EVIDENCE THAT ANY OF THE AFFECTED CIGARETTES EVER REACHED RETAIL.
• DESPITE THE FACT THAT WE HAD NO EVIDENCE ANY OF THE AFFECTED PRODUCT WAS
BEING SOLD AT RETAIL, WE DECIDED, OUT OF AN ABUNDANCE OF CAUTION, TO RECALL ALL
BRAND PACKINGS THAT COULD POSSIBLY BE INVOLVED.
• WE IMMEDIATELY SENT RECALL NOTICES TO OUR MORE THAN 300,000 WHOLESALERS
AND RETAILERS THAT CARRY OUR BRANDS.
• WE ALSO TOOK OUT FULL-PAGE ADS IN MAJOR NEWSPAPERS AND POSTED AN 800
NUMBER WHERE CONSUMERS, RETAILERS AND WHOLESALE CUSTOMERS COULD GET
INFORMATION. WE LOGGED MORE THAN 500,000 CALLS ON THE 800 NUMBER OVER
MEMORIAL DAY WEEKEND ALONE.
• WE BELIEVE THIS WAS THE LARGEST CONSUMER PRODUCT RECALL IN HISTORY.
THOUSANDS OF PM EMPLOYEESmlNCLUDING COLLEAGUES FROM KRAFT AND OUR
OTHER SISTER COMPANIES--GAVE UP THEIR MEMC~RIAL DAY WEEKEND TO HELP. MANY
CANCELED VACATION PLANS AWAY FROM HOME TO DO SO. OTHERS CONTINUED TO WORK
18-HOUR DAYS AND WEEKENDS FOR THE NEXT SEVERAL WEEKS UNTIL THE RECALL WAS
COMPLETE.
• BY THE DAY AFTER MEMORIAL DAY, PHILIP MORRIS HAD RETRIEVED AND REPLACED MORE
THAN 3-1/2 BILLION CIGARETTES. BY JUNE 20TH, THE RECALL WAS COMPLETE, AND
MORE THAN 350,000 RETAIL OUTLETS HAD BEEN VISITED AND RESTOCKED WITH FRESH
PRODUCT THAT MET OUR HIGH QUALITY STANDARDS.
WHAT CAUSED THE TASTE AND ODOR PROBLEM? CAN IT HAPPEN AGAIN?
• THE TASTE AND ODOR PROBLEM WAS A~RIBUTABLE TO SOME PLASTICIZER FURNISHED
BY AN OUTSIDE SUPPLIER FOR USE IN MANUFACTURING FILTERS. THE PROBLEM WAS SOON
CORRECTED BY USING ANOTHER SUPPLIER'S PLASTICIZER. THE MATERIALS IN THE
PLASTICIZER, WHICH CAUSED THE TASTE AND ODOR PROBLEM, PRESENTED NO SAFETY
PROBLEM.
• OUR COMPREHENSIVE QUALITY ASSURANCE DEPARTMENT CONTINUES TO MONITOR THE
MANUFACTURING PROCESS SO THAT CONSUMERS RECEIVE THE QUALITY PRODUCT THEY
HAVE COME TO EXPECT.
HOW MUCH DID THE RECALL COST?
• AT THE TIME WE ANNOUNCED THE RECALL, WE ESTIMATED IT WOULD COST BETWEEN
$100 AND $200 MILLION. ACTUAL COSTS WERE $100 MILLION.
• WE BELIEVE THAT THE EXPENSE OF THE RECALL WAS WORTH IT SO THAT THE QUALITY OF
OUR PRODUCT WAS NOT DIMINISHED ONE IOTA--EITHER IN FACT OR IN THE MINDS OF OUR
CUSTOMERS.
HAVE THERE BEEN ANY NEGATIVE OR LINGERING AFTER-EFFECTS FROM TNE RECALL?
• PREDICTABLY, THERE HAVE BEEN SOME LAW SUITS, WHICH WE ARE NOW VIGOROUSLY
DEFENDING. OTHERS ALREADY HAVE BEEN DISMISSED. AS YOU KNOW, OUR SHARE
GROWTH HAS RESUMED ITS UPWARD TREND.
WAS THE RECALL A SUCCESS?
• IN THE LARGER PICTURE, THE RECALL WAS A SUCCESS BY ANY STANDARD.
• I THINK THE SUCCESS OF THE RECALL IS THE WAY IT WAS MANAGED. WE TRANSMITTED
THE BEST INFORMATION WE HAD AS WE RECEIVED IT. WE ACTED QUICKLY AND
RESPONSIBLY, AND THE ISSUE OF THE QUALITY OF OUR PRODUCTS HAS BEEN
COMPLETELY RESOLVED.
• OUR STOCK PRICE, WHICH DIPPED UPON NEWS OF THE RECALL, REBOUNDED ALMOST
IMMEDIATELY.
2
ADDICTION
6. IS CIGARETf'E SMOKING "ADDICTIVE?"
• MORE THAN 40 MILLION AMERICANS HAVE QUIT SMOKING, THE GREAT MAJORITY WITHOUT
PROFESSIONAL HELP OR TREATMENT.
• WE DO NOT BELIEVE THAT CIGARETTE SMOKING IS "ADDICTIVE."
• THE TERM "ADDICTION" IS NOW SO POPULARLY USED TO DESCRIBE MANY ACTIVITIES AND
SUBSTANCES FROM CAFFEINE TO NICOTINE, TO CHOCOLATE, TO RUNNING, IT HAS LOST
SCtENTIRC MEANING.
• THE TERM "ADDICTION" HAS HAD MANY MEANINGS OVER THE YEARS. WE THINK THE
FAIREST WAY TO USE IT IS T~ DESCRIBE A PHYSlOLOGICAL CONDITION, CHARACTERIZED BY
SUCH PHENOMENA AS INTOXICATION, TOLERANCE, AND WITHDRAWAL.
• SMOKING IS NOT INTOXICATING, NOR DQES IT IMPAIR JUDGMENT.
• SMOKERS CAN QUIT WITHOUT UNDERGOING "WITHDRAWAL" OF THE SORT ASSOCIATED
WiTH DRUGS LIKE HEROIN.
THE 1988 SURGEON GENERAL'S REPORT ON SMOKING CLAIMED CIGARETTES ARE ADDICTIVE.
WHY SHOULD WE BELIEVE YOU AND NOT THE SURGEON GENERAL?
• IN 1964 THE SURGEON GENERAL CONCLUDED CIGAREttE SMOKING WAS NOT "ADDIC~VE,"
BUT A "HABIT."
• THE 1988 U.S. SURGEON GENERAL'S REPORT INTRODUCED A NEW DEFINITION OF
"ADDIC~ON."
• NEW DEFINITION COULD BE USED TO CLASSIFY CAFFEINE IN COFFEE, COLA, CHOCOLATE,
AND MANY BEHAVIORS AS "ADDICTIVE."
• THE 1989 SURGEON GENERAL'S REPORT NOTED HALF OF ALL LIVING ADULTS IN THE U.S.
WHO HAVE EVER SMOKED HAVE QUIT.
o
DOESN~ THE USE OF NICOTINE GUM AND NICOTINE PATCHES TO HELP PEOPLE QUIT SMOKING
CIGARETTES CONFIRM THAT SMOKING IS AN "ADDICTION" TO NICO~NE?
• MILUONS OF PEOPLE HAVE QUIT WITHOUT USING PATCHES OR GUM.
3
WHY DID PM DECIDE TO RELEASE THE LIST OF INGREDIENTS USED IN THE MANUFACTURE OF ITS
CIGARETTES?
TO PUT AN END TO FALSE ALLEGATIONS THAT SOME OFTHE INGREDIENTS ON THE LiST ARE
HAZARDOUS AS USED IN CIGAREq-FES.
10.
WHY DIDN"F YOU RELEASE THE LIST OF INGREDIENTS EARLIER?
• COMMON FOR COMPANIES TO GUARd) SPECIFIC PRODUCT FORMULAS AS TRADE SECRETS.
• CONGRESS RECOGNIZED THAT WHEN IT PASSED FEDERAL CIGARE3-FE LABELING ACT IN
1986.
(NOTE; ACT REQUIRES US CIGARETTE MANUFACTURERS TQ SUBMIT ANNUAL LISTS OF THEIR INGREDIENTS
TO THE DEPARTMENT OF HEALTH AND HUMAN SERVICES. IT ALSO GUARANTEED PROTECTION AGAINST
DISCLOSURE OF THIS INFORMATION. CONFIDENTIALITY CONSISTENT WITH THE TREATMENT OF INGREDIENTS
USED IN FOODS, DRUGS, COSMETICS AND OTHER CONSUMER PRODUCTS. E.G., FLAVORS ADDED TO FOODS
TREATED AS TRADE SECRETS AND NEED NOT BE DISCLOSED ON PRODUCT LABELS.)
11.
WHY AREN'T THE INGREDIENTS USED IN ClGAREq~TES LISTED ON THE PACKAGE? DON'T
CONSUMERS HAVE THE RIGHT TO KNOW WHAT IS IN THE PRODUCTS THEY BUY?
• THE IDENTITIES OF SPECIFIC INGREDIENTS USED IN A PARTICULAR BRAND OF CIGARETTES
AS WELL AS MANY OTHER CONSUMER PRODUCTS, SUCH AS COCA-OOLA, ARE NOT
TREATED AS PUBLIC INFORMATION. THESE FORMULAS OFTEN HAVE GREAT COMPETITIVE
VALUE AND REQUIRE SUBSTANTIAL TIME AND EXPENSE TO DEVELOP. THE LAW
THEREFORE ALLOWS THEM TO BE TREATED AS TRADE SECRETS.
12.
ARE THERE ANY SUBSTANCES CURRENTLY ADDED TO THE COMPANY'S CIGARETTES SOLD ONLY
IN OTHER MARKETS, PARTICULARLY THIRD WORLD MARKETS, WHICH ARE NOT USED IN
CIGAREq-rES SOLD IN THE U.S.?
• NO. IN ADDITION,. ALL OF PM'S CIGARETTES COMPLY WITH THE REGULATORY
REQUIREMENTS OF THE COUNTRIES IN WHICH THEY ARE MANUFACTURED OR SOLD.
4
13.
ARE THE INGREDIENTS USED IN CIGARE3"FES HARMFUL?
• NON 7PM IN THE MANUFACTURE OF ITS CIGARETTES HAS BEEN DEMONSTRATED TO BE
HARMFUL.
• IN THE U.S., THE UNITED KINGDOM, AND GERMANY, CIGARETTE INGREDIENTS HAVE BEEN
SCRUTINIZED BY THE APPROPRIATE GOVERNMENTAL AND REGULATORY ORGANIZATIONS
FOR YEARS.
• IN ADDITION, IN THE U.S., AN INDEPENDENT SAFETY ASSESSMENT RECENTLY CONDUCTED
BY 6 RENOWNED SCIENTISTS CONCLUDED THAT NONE OF THE INGREDIENTS FROM THE LIST
PROVIDED TO THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES WAS HARMFUL
AS USED IN CIGARETTES.
~,I~I~ONIA
14. DOES PM ADD AMMONIA TO ITS CIGARET3"ES?
• AMMONIA IS A NATURALLY OCCURRING COMPONENT OF TOBACCO.
• AMMONIA COMPOUNDS ARE USED AS PROCESSING AIDS AND FLAVORANTS IN THE
MANUFACTURING OF CIGARE'I-FES.
• PANEL OF INDEPENDENT SCIENTISTS CONCLUDED AMMONIA COMPOUNDS USED BY PM
ARE NOT HARMFUL TO CONSUMERS AS USED IN THE MANUFACTURING OF CIGARE'I-I'ES.
[] AMMONIA COMPOUNDS USED COMMONLY AS INGREDIENTS IN MANY FOODS (ICE CREAM,
GELATIN, BAKED GOODS). THESE SUBSTANCES ARE ACCEPTED BY FDA AS SAFE FOR USE
IN FOODS.
5
TIlE WALL STREET JOURNAL, DAVID KESSLER AND OTHERS HAVE ALLEGED THAT PHILIP
MORRIS USA USES AMMONIA IN THE CIGAREqq'E MANUFACTURING PROCESS TO INCREASE THE
AMOUNT OF NICOTINE INHALED BY THE SMOKER. IS THAT TRUE?
NO.
IF, AS THE WALL STREET JOURNAL ASSERTED, PM USA WERE USING AMMONIA TO
INCREASE NICOTINE DELIVERIES OF LOWER TAR CIGARE~FES, ONE WOULD EXPECT THAT
AS "TAR" AND NICOTINE DELIVERIES OF MARLBORO HAVE FALLEN OVER THE PAST 20
YEARS, AMMONIA LEVELS WOULD HAVE INCREASED. BUT THAT IS SIMPLY NOT THE: CASE;
OVER THE PAST 25 YEARS, THE AMOUNT OF AMMONIA HAS REMAINED NEARLY CONSTANT.
NICOTINE
16. DOES PHILIP MORRIS ADD NICOTINE TO ITS CIGARETTES?
• NO. NICOTINE OCCURS NATURALLY IN TOBACCO. THE AVERAGE NICOTINE YIELD IN
CIGARETTES HAS DECLINED BY OVER 50% OVER THE LAST 40 YEARS. THE "TAR" AND
NICOTINE YIELDS OF LOW DELIVERY CIGARETTES ARE LOWER IN ABSOLUTE TERMS THAN
THOSE OF HIGHER DELIVERY CIGARETTES.
• IN RESPONSE TO CONSUMER DESIRES FOR "LIGHTER" CIGARETTES, THE TOBACCO
INDUSTRY, INCLUDING PM, HAS DEVELOPED CIGARETTES WITH LOWER YIELDS OF ALL
SMOKE CONSTITUENTS, INCLUDING NICOTINE.
• THESE REDUCTIONS BEGAN ABOUT 40 YEARS AGO WITH THE INTRODUCTION OF FILTER
CIGARETTES AND CONTINUED WITH THE DEVELOPMENT OF MODERN RLTERS AND TOBACCO
PROCESSING TECHNIQUES.
6
17.
DOES PM "MANIPULATE" THE NICOTINE LEVEL DURING CIGARETFE PRODUCTION?
• PM DOES NOT "MANIPULATE" NICOTINE LEVELS IN THE TOBACCO IN ITS CIGAREFFES.
• WE VOLUNTARILY OPENED OUR MANUFACTURING OPERATIONS TO THE FDA, IN A GOOD
FAITH EFFORT TO RESOLVE THE ALLEGATION THAT WE ADD NICOTINE OR "MANIPULATE" ITS
LEVEL IN OUR CIGARETi'ES.
• PROCESSES USED TO MANUFACTURE CIGARETTES HAVE BEEN PUBLICLY AVAILABLE FOR
MANY YEARS IN THE FORM OF PATENTS AND PUBLISHED LITERATURE.
18.
THE ABC PROGRAM "DAY ONE" ALLEGED THAT TOBACCO COMPANIES WERE "SPIKING" OR
"FORTIFYING" CIGARETTES WITH NICOTINE FROM OUTSIDE SOURCES.
• PM'S FINISHED CIGAREq-rES ACTUALLY CONTAIN LESS NICOTINE THAN WAS CONTAINED IN
THE RAW MATERIALS FROM WHICH THEY WERE MADE.
• PM HAS REPEATEDLY STATED THAT IT DOESN'T NOT "SPIKE" OR "FORTIFY" ITS CIGARETTES
WITH ADDITIONAL NICOTINE.
• ABC HAS ADMITTED THAT IT MADE A MISTAKE AND HAS ISSUED AN APOLOGY TO ITS
VIEWERS AND TO PHILIP MORRIS.
19. WHY DOESN'T PM MAKE A CIGARETTE WITHOUT NICOTINE?
• WE'VE TRIED. PM USA INVESTED $300 MILLION TO DEVELOP AND TEST MARKET "NEXT"
(OR "DE-NIC"), A CIGARETTE WITH VIRTUALLY ALL OF THE NICOTINE REMOVED.
• SALES WERE DISAPPOINTING.
20.
DOES PM ADD TOBACCO
LEVELS IN CIGARE'I-FES?
•
EXTRACTS OR USE OTHER PROCESSES TO INCREASE NICOTINE
PM NO LONGER USES FLAVOR PACKAGES CONTAINING NICOTINE.
PM NEVER USED TOBACCO EXTRACTS OR ANY OTHER PROCESS FOR THE PURPOSE OF
INCREASING NICOTINE LEVELS IN CIGAREFFES.
AMOUNT OF NICOTINE IN FLAVOR PACKAGES WITH TOBACCO EXTRACTS WAS
IMMEASURABLE IN THE FINISHED CIGARIEFFES OR CIGARETTE SMOKE.
7
GENETIC ENGINEERING
21. HAS PM EVER USED GENETIC ENGINEERING TECHNIQUES TO INCREASE THE NICOTINE CONTENT
OF THE TOBACCO IT USES IN THE MANUFACTURE OF ITS CIGARETTES?
• NO. PM HAS NEVER USED GENETIC ENGINEERING PROCESSES TO INCREASE OR MAINTAIN
NICOTINE DELIVERY IN ITS CIGARE-FFES.
ALTERNATIVE CROPS
22. WHAT ARE YOU DOING TO ENCOURAGE FARMERS TO GROW ALTERNATIVE CROPS?
• WE WANT FARMERS TO GET THE BEST PRICE THEY CAN FOR WHATEVER THEY DECIDE TO
GROW ON THEIR LAND. OUR CONTRIBUTIONS OVER THE YEARS TO AGRICULTURAL
PROGRAMS AND SCHOOLS HAVE HELPED FARMERS MAXIMIZE THEIR EFFORTS. THEY GROW
WHAT THEY DO BECAUSE THEY DECIDE WHAT CROPS ARE BEST FOR THEM, NOT BECAUSE
PM OR ANYONE ELSE TELLS THEM WHAT THEY SHOULD GROW.
ALTERNATIVE USES FOR TOBACCO
23. Is PM USA INVESTIGATING ALTERNATIVE USES OF TOBACCO?
• ALL OUR R&D EFFORTS ARE EXTREMELY CONFIDENTIAL, SO WE DON'T COMMENT ON
THEM.
FTC
24.
METHOD OF MEASURING "TAR" AND NICOTINE
WHAT ARE THE U.S. FEDERAL TRADE COMMISSION (FTC) AND INTERNATIONAL ORGANIZATION
FOR STANDARDIZATION (ISO) METHODS FOR MEASURING "TAR" AND NICOTINE?
• THE FTC METHOD WAS DEVELOPED THROUGH THE COOPERATION OF THE FTC STAFF,
INDEPENDENT SCIENTISTS, AND TOBACCO COMPANY SCIENTISTS. THE TEST METHOD IS
DESIGNED TO PROVIDE "TAR" AND NICOTINE RATINGS THAT CONSUMERS CAN USE TO
COMPARE BRANDS.
• THE ISO METHOD, WHICH IS USED IN MANY COUNTRIES, IS NEARLY IDENTICAL TO THE Fro
PROCEDURE. THE SAME BRAND CIGARETTES TESTED UNDER THE FTC AND ISO METHODS
WOULD RESULT IN VIRTUALLY IDENTICAL "TAR" AND NICOTINE YIELD RATINGS.
8
25.
IS THE FTC METHOD OF MEASURING "TAR" AND NICOTINE ACCURATE?
• "TAR" AND NICOTINE FIGURES DETERMINED UNDER FTC METHOD ARE MEANT TO BE A
GUIDE FOR CONSUMERS SIMILAR TO THE "MILES PER GALLON" INFORMATION PROVIDED TO
AUTOMOBILE PURCHASERS. THE FTC RATINGS HAVE PROVIDED CONSUMERS WITH
USEFUL INFORMATION.
26.
WHY SHOULDN~F THE PARAMETERS OF THE FTC METHOD BE CHANGED TO MORE ACCURATELY
REFLECT HUMAN SMOKING AS THE FDA AND FTC SUGGEST?
• NO STANDARDIZED MEASUREMENT METHOD CAN MIMIC HUMAN SMOKING. THERE ARE AS
MANY DIFFERENT WAYS OF SMOKING AS THERE ARE PEOPLE WHO SMOKE.
27. IF HUMAN BEINGS DON'T SMOKE THE WAY THE MACHINES DO, DOESN'T THAT MEAN THE FTC
MEASUREMENTS ARE USELESS?
• NO. RATINGS PROVIDE
CONSISTENT AND RELIABLE INFORMATION FOR BRAND
COMPARISON.
ClGARE3-rE RATINGS ARE NOT MEANT TO REPLICATE HUMAN SMOKING.
THE RATINGS ARE USEFUL BECAUSE SMOKERS PERCEIVE THAT "TAR" AND NICOTINE
RATINGS RELATE TO IMPORTANT CIGARETTE QUALITIES SUCH AS TASTE, STRENGTH~
MILDNESS, HARSHNESS, EASE OF DRAW, AND SO ON.
ClGARE3-FES WITH SIMILAR "TAR" AND NICOTINE RATINGS WILL BE COMPARABLE IN THESE
QUALITIES TO THE CONSUMER. CIGARETTES WITH DIFFERENT "TAR" AND NICOTINE YIELDS
WILL HAVE DIFFERENT SMOKING QUALITIES IN WAYS THAT ARE PREDICTABLE AND
UNDERSTOOD BY THE SMOKER.
9
28.
ISN"F IT TRUE THAT THE SUPPOSEDLY LOW "TAR" AND NICOTINE LEVELS PRINTED ON CIGARETTE
ADS FOR LOW-YIELD CIGARETTES ARE INACCURATE AND MISLEADING BECAUSE SMOKERS
COMPENSATE BY INHALING DEEPER OR SMOKING MORE CIGARETTES?
• SMOKERS' BEHAVIOR DOES NOT REFLECT MUCH, IF ANY, COMPENSATION. ALTHOUGH
SHORT-TERM CHANGES IN SMOKING BEHAVIOR HAVE SOMETIMES BEEN REPORTED WHEN
PEOPLE SWITCH TO CIGARETTE BRANDS WITH LOWER YIELDS, AS SMOKERS BECOME
ACCUSTOMED TO THEIR NEW BRAND, THEY TEND TO GO BACK TO THEIR USUAL SMOKING
HABITS.
• DESPITE INCREASING POPULARITY OF LOW "TAR" AND NICOTINE CIGARETTES, AVERAGE
DAILY NUMBER OF CIGARETTES SMOKED PER SMOKER HAS STAYED RELATIVELY
CONSTANT.
WAXMAN / NICOTINE / "TAR" / FTC
SITUATION ANALYSIS/EXECUTIVE SUMMARY: IN THE SUMMER OF 1995, CONGRESSMAN
HENRY WAXMAN MADE A SERIES OF CHARGES ON THE FLOOR OF CONGRESS AGAINST PM BASED ON
ALLEGEDLY "SECRET' DOCUMENTS PERTAINING TO PM RESEARCH. HE STATED THAT PM USA
CONDUCTED RESEARCH ON THE PHARMACOLOGICAL EFFECTS OF NICOTINE ON THIRD-GRADE
CHILDREN AND STUDIES OF SMOKING AND STRESS AMONG COLLEGE STUDENTS WHICH INCLUDED
ELECTROSHOCK TREATMENTS.
29. WHAT IS PM'S RESPONSE TO THE ALLEGATIONS CONCERNING THESE DOCUMENTS?
• MR. WAXMAN'S CHARACTERIZATIONS OF THOSE DOCUMENTS ARE INACCURATE.
REPEATEDLY, MR. WAXMAN ELIMINATED CRITICAL PASSAGES FROM THE DOCUMENTS HE
•
CLAIMED TO BE QUOTING AND SERIOUSLY MISCHARACTERIZED BOTH THE PURPOSES AND
THE RESULTS OF PM USA'S RESEARCH ACTIVITIES.
• THE DOCUMENTS MR. WAXMAN CITED WERE PRODUCED TO THE PLAINTIFFS IN THE 1988
CIPOLLONE CASE m A CASE PHILIP MORRIS USA WON IN COURT.
• MR. WAXMAN EDITED AND MISCHARACTERIZED A SELECTION OF DOCUMENTS TO ATTACK
PM FROM THE HOUSE FLOORmA FORUM IN WHICH HE CAN CLOAK NIMSELF IN
CONGRESSIONAL IMMUNITY FROM FALSE AND MISLEADING STATEMENTS.
10
30.
WHAT ABOUT PM USA'S RESEARCH ON THIRD-GRADERS?
• THE PROPOSAL WAS SIMPLY TO CONDUCT A PROSPECTIVE STUDY DESIGNED TO TRACK
CHILDREN WITH CERTAIN AT-FENTION DEFICIT DISORDERS TO SEE WHETHER THEY WERE
MORE LIKELY THAN CHILDREN WITHOUT SUCH DISORDERS TO BECOME SMOKERS IN LATER
YEARS.
• THE STUDY WAS NEVER COMPLETED. ACCORDING TO THE CHESTERFIELD COUNTY
SCHOOL BOARD, OFFICIALS COULD FIND NO EVIDENCE THAT ANY TRACKING EVER TOOK
PLACE.
• THE STUDY WAS TO BE CONDUCTED IN COLLABORATION WITH RESPECTED, INDEPENDENT
MEDICAL PROFESSIONALS WORKING IN THE RICHMOND AREA WHO WERE INTERESTED IN
LEARNING MORE ABOUT THE BEHAVIOR OF SUCH CHILDREN WHEN THEY GREW UP.
• SUCH RESEARCH ON THE TYPES OF CHILDREN WHO LATER BECOME SMOKERS WAS
NEITHER UNCOMMON NOR INAPPROPRIATE. THE GOVERNMENT ITSELF HAS SPONSORED
SUCH STUDIES.
• PORTIONS OF THE DOCUMENT THAT MR. WAXMAN DELETED FROM HIS SPEECH ALSO SHOW
THAT PM HAD NO INTENTION OF GIVING CIGARETTES TO CHILDREN.
11
31.
WH/k3" ~S PM's RESPONSE ~N REGARD TO MR. WA×MAN'£ CHARACTERIZATIONS OF PHILIP
MORRIS' STUDIES OF SMOKING AND STRESS AMONG COLLEGE STUDENTS?
• MR. WAXMAN EDITED OUT PORTIONS OF THE DOCUMENTS WHICH INDICATE THAT THE
COLLEGE STUDENTS--WHO WERE ALL OVER 21wENGAGED IN THESE STUDIES
VOLUNTARILY AND WERE FREE TO DISCONTINUE PARTICIPATION AT ANY TIME.
• MR. WAXMAN IGNORED THE FACT THAT SUCH RESEARCH IN WHICH SMOKERS WERE
EXPOSED TO MILD ELECTRIC SHOCKS TO SIMULATE A STRESSFUL SITUATION WAS ALREADY
PART OF THE SCIENTIFIC LITERATURE BEFORE PM USA CONDUCTED THIS RESEARCH. (I.E.,
IN THE LATE '60S AND EARLY '70S, COLUMBIA UNIV. CONDUCTED JUST SUCH RESEARCH. )
• THE MILD SHOCK IN THE PM USA STUDY WAS ADMINISTERED TO THE SUBJECTS' FINGERS.
• THIS INDEPENDENT UNIVERSITY RESEARCH INVOLVING MILD SHOCKS WAS HARDLY A
"SECRET." IN FACT, IN 1972, THE RESEARCH BY PROFESSOR STANLEY SCHACHTER AT
COLUMBIA UNIVERSITY WAS PUBLISHED IN A BOOK ON THE SUBJECT OF SMOKING
BEHAVIOR. PM USA MERELY PROPOSED TO REPLICATE THE TYPE OF EXPERIMENT
CONDUCTED BY SUCH RESEARCHERS AT COLUMBIA AND OTHER UNIVERSITIES.
WAXMAN / "TAR" / NICOTINE RATIOS
SITUATION ANALYSIS/EXECUTIVE SUMMARY: MR. WAXMAN ALSO STATED ON THE FLOOR OF
CONGRESS THAT PM "DOUBLED" THE "NICOTINE LEVELS" OF BENSON & HEDGES CIGARETTES CITING
A MARCH 1981 FTC REPORT. IN ADDITION, THE WALL STREET JOURNAL STATED ON JULY 14, 1995,
THAT "WHILE IT (MERIT) HAD LESS THAN HALF THE CARCINOGENIC TARS OF REGULAR CIGARETTES, IT
HAD 600/0 OF THE NICOTINE."
32. HOW CAN PM CLAIM THAT THESE CIGARETTES HAVE LOW NICOTINE AND "TAR" YIELDS WHEN THE
RATIOS OF NICOTINE TO "TAR" ARE HIGHER THAN PREMIUM BRANDS?
• CONGRESSMAN WAXMAN IS WRONG. AS INDICATED IN THE OFFICIAL FTC REPORT FOR
MARCH 1981-- THE ACTUAL NICOTINE DELIVERY OF THIS PARTICULAR BENSON & HEDGES
ULTRA-LOW CIGARETFE WAS ONLY. 12MG. ACCORDING TO THE FTC, THE B&H 70MM
CIGARE'FFE TIED AS THE SECOND LOWEST CIGARETTE OUT OF THE 187 TESTED THAT YEAR
IN TERMS OF NICOTINE DELIVERY.
12
THE TRUTH ABOUT THIS PARTICULAR CIGARETTE WAS THAT BOTH ITS "TAR" AND NICOTINE
DELIVERIES WERE REDUCED DURING THE 7 YEARS FROM JUNE 1970 THROUGH JUNE 1977.
IN 1977, THE CIGARETTE WAS FURTHER REFORMULATED AS AN ~ BRAND, AND
THE ALREADY-REDUCED "TAR" AND NICOTINE LEVELS WERE REDUCED AGAIN BY 85-90%.
DATA FROM THE OFFICIAL FTC REPORTS PLAINLY SHOW THAT THE NICOTINE YIELD NEVER
ROSE AGAIN TO ANYTHING EVEN APPROACHING THE PRIOR YEARS; AND THAT IS WHY THAT
BRAND TIED FOR SECOND LOWEST IN NICOTINE YIELD OF THE 187 BRANDS TESTED BY THE
FTC IN MARCH 1981--WHEN MR. WAXMAN CLAIMS ITS "NICOTINE-TO-TAR" RATIOS WERE
"HIGHEST."
WITH RESPECT TO MERIT ULTRA LIGHTS, THE FACT IS THAT THE SLIGHTLY DIFFERENT
NICOTINE-TO-"TAR" RATIO OF THAT LOW YIELD BRAND RESULTS FROM THE FACT THAT ANY
ULTRA-LOW FILTER SYSTEM TAKES OUT PROPORTIONATELY MORE OF THE "TAR" THAN THE
NICOTINE--A FACT THAT IS REFLECTED IN VIRTUALLY EVERY LOW YIELD BRAND MADE BY
ALL CIGARETTE COMPANIES.
THE SLIGHTLY DIFFERING NICOTINE-TO-"TAR" RATIOS BETWEEN FULL FLAVOR AND LOW
YIELD CIGARETFES ARE A MATrER OF PHYSICS AND FILTER EFFICIENCIES.
ALL OF THE TOP 20 BRAND PACKINGS IN 1993, FROM THE LATEST FTC REPORT, HAVE
RATIOS BELOW. 10.
OVERALL NICOTINE YIELD IN CIGARETTES HAS DECLINED BY OVER 50% OVER THE LAST 40
YEARS, AND "TAR" AND NICOTINE YIELDS OF LOW DELIVERY CIGAREFrES ARE LOWER IN
ABSOLUTE TERMS THAN THOSE OF HIGHER DELIVERY CIGARETTES, WHATEVER THE RATIOS
MAY BE.
13
THE NEW YORK TIMES DOCUMENTS
SITUATION ANALYSIS / EXECUTIVE SUMMARY: ON JUNE 8, 1995, THE NEW YORK TIMES
REPORTED THAT IT HAD OBTAINED 2,000 PAGES OF PHILIP MORRIS DOCUMENTS. ACCORDING TO THE
NYTTHESE "SECRET" DOCUMENTS REVEALED THAT THE COMPANY USED LABORATORY METHODS
THAT ARE CUSTOMARILY USED TO ASSESS DRUGS TO STUDY THE EFFECTS OF NICOTINE ON
SMOKERS. THE DOCUMENTS ALLEGEDLY DESCRIBED THE PHARMACOLOGICAL EFFECTS OF NICOTINE
AND HOW IT AFFECTS THE BODY, BRAIN AND BEHAVIOR OF SMOKERS. IN THE PIECE, RICHARD
DAYNARD IS QUOTED AS FOLLOWS: "IT SEEMS THAT THEIR OWN DOCUMENTS PROVE THEY KNEW
ABOUT THE ROLE OF NICOTINE AND THE ROLE OF PHYSIOLOGICAL NEED VERSUS HABIT, AND THAT
THEY DELIBERATELY MANIPULATED NICOTINE." THE NYTALSO IMPLIED THAT WILLIAM CAMPBFtl LIED
UNDER OATH TO THE CONGRESSIONAL SUBCOMMr'I-r'EE WHEN HE SAID THAT "PHILIP MORRIS DOES
NOT 'MANIPULATE' NOR INDEPENDENTLY CONTROL THE LEVEL OF NICOTINE IN OUR PRODUCTS."
33.
DOESN'T THIS INFORMATION PROVE THAT PM "MANIPULATES" THE LEVEL OF NICOTINE IN
CIGAREI-FES AND THAT IT SHOULD BE REGULATED AS A DRUG? IF THIS IS TRUE, DIDN'T WILLIAM
CAMPBELL LIE UNDER OATH?
NO. BILL CAMPBELL TOLD THE TRUTH.
THIS RESEARCH HAS NEVER RESULTED
IN PM ADDING EXTRANEOUS NICOTINE OR
ARTIFICIALLY ALTERING THE RELATIONSHIP BETWEEN "TAR" AND NICOTINE IN OUR
COMMERCIAL PRODUCTS.
NICOTINE OCCURS NATURALLY IN TOBACCO. IN ALL PM BRANDS, THE AMOUNT OF NICOTINE
IN A FINISHED CIGARETTE IS LESS THAN THE AMOUNT PRESENT IN THE RAW TOBACCO FROM
WHICH IT IS MADE.
WE HAVE NOT BEEN AFFORDED AN OPPORTUNITY BY THE NYTTO VIEW THE 2,000 PAGES
OF DOCUMENTS IT WAS SECRETLY PROVIDED, AND IT SELECTIVELY USED IN ITS REPORT.
THOSE CITED TO US BY THE NYTWERE AVAILABLE TO PLAINTIFFS IN THE CIPOLLONE
CASE, WHICH WAS TRIED IN 1988. IN THAT CASE, JUST AS IN EVERY CASE BEFORE AND
SINCE CIPOLLONE, PHILIP MORRIS WON.
14
VICTOR DENOBLE
SITUATION ANALYSIS/EXECUTIVE SUMMARY: FORMER PHILIP MORRIS RESEARCH SCIENTIST
DR. VICTOR DENOBLE HAS BEEN SPEAKING ACROSS THE COUNTRY ABOUT THE EFFECTS OF
NICOTINE ON SMOKERS AND WAS FEATURED IN A COMMERCIAL FOR THE MASSACHUSETTS
DEPARTMENT OF HEALTH. HE HAS STATED THAT THE COMPANY "REALIZED THAT NICOTINE WAS NOT
JUST CALMING OR STIMULATING, BUT WAS HAVING ITS EFFECT CENTRALLY, IN THE BRAIN, AND THAT
PEOPLE WERE SMOKING FOR BRAIN EFFECTS."
34.
IF YOUR RESEARCH SCIENTISTS DISCOVERED THIS, THEN HOW CAN YOU SAY THAT NICOTINE IS
NOT A DRUG? DOESN'T THIS PROVE THAT THE COMPANY KNEW OF THE PHYSIOLOGICAL NEED
FOR NICOTINE AND DELIBERATELY "MANIPULATED" NICOTINE?.
WHILE DR. DENOBLE MAY NOW BELIEVE THAT NICOTINE IS "ADDICTIVE," THAT WAS NOT HIS
VIEW WHILE HE WORKED AS A RESEARCH SCIENTIST FOR PM.
IN FACT, DR. DENOBLE CONSlSTENTLY TOLD HIS COLLEAGUES WITHIN THE COMPANY
THAT, IN HIS OPINION, NICOTINE WAS NOT "ADDICTIVE" AND THAT NICOTINE DID NOT CREATE
A PHYSICAL DEPENDENCY.
DR. DENOBLE REPORTED THAT HIS RESEARCH SHOWED THAT STOPPING THE
ADMINISTRATION OF NICOTINE IN RATS DID NOT CREATE SYMPTOMS OF PHYSIOLOGICAL
WITHDRAWAL AND THAT, IN HIS OPINION, NICOTINE DID NOT FIT THE CRITERIA FOR DRUG
DEPENDENCE.
LAST YEAR, DR. DENOBLE TESTIFIED UNDER OATH BEFORE A HOUSE SUBCOMMI3-rEE
AND REAFFIRMED THAT WHILE AT PHILIP MORRIS HE DID NOT FIND THAT NICOTINE IS
"ADDICTIVE."
C,
15
THE WALL STREET JOURNAL I NICOTINE / COCAINE
SITUATION ANALYSiS/EXECUTIVE SUMMARY: ON DEC. 8, 1995, THE WALL STREET JOURNAL
REPORTED THAT IT HAD AN INTERNAL PHILIP MORRIS USA DOCUMENT THAT DESCRIBES CIGARETTES
AS A "NICOTINE DELIVERY SYSTEM" AND LIKENS NICOTINE TO ORGANIC CHEMICALS SUCH AS COCAINE,
MORPHINE, QUININE AND ATROPINE. THE DOCUMENT ALSO STATES THAT "NICOTINE IS USED TO
CHANGE PSYCHOLOGICAL STATES LEADING TO ENHANCED MENTAL PERFORMANCE AND
RELAXATION."
35. IF NICOTINE IS LIKENED TO THESE OTHER DRUGS, WHICH ARE ADDICTIVE, THEN WOULDN'T
NICOTINE ALSO BE ADDICTIVE?.
• DOCUMENT CITED IN THE WSJ DOES NOT STATE PM USA'S VIEWS ON NICOTINE OR THE
NATURE OF CIGARETTE SMOKING.
IN THE COMPANY'S VIEW, THERE IS NO SINGLE ANSWER TO THE QUESTION OF WHY PEOPLE
SMOKE. NICOTINE IS OBVIOUSLY PART OF THE SMOKING EXPERIENCE, BUT WE DO NOT
BELIEVE IT ACCURATE TO SAYwNOR DOES THE DOCUMENT STATEm THAT NICOTINE IS
"ADDICTIVE."
FROM TIME TO TIME OVER THE YEARS, SOME PM USA EMPLOYEES HAVE HYPOTHESIZED
OR STATED THAT PEOPLE SMOKE PRIMARILY FOR THE PHARMACOLOGICAL EFFECTS OF
NICOTINE. THAT IS NOT THE SAME AS SAYING THAT NICOTINE IS "ADDICTIVE."
16
DOESN'T THIS SHOW THAT PM CONSIDERS NICOTINE IN CIGARETTES TO BE A "DRUG" AND THAT IT
THEREFORE SHOULD BE REGULATED BY TNE FDA?
• IN 1994, THE COMPANY MADE A DETAILED SUBMISSION ON "ADDICTION" AND WHY PEOPLE
SMOKE TO THE DRUG ABUSE ADVISORY COMMITTEE OF THE FDA. (IN 1996, PM AND
OTHER CIGAREq-FE COMPANIES MADE A SIMILAR SUBMISSION TO THE FD~)
• THE SUBMISSION SHOWS THAT PHILIP MORRIS ACKNOWLEDGES THAT NICOTINE HAS
PHARMACOLOGICAL EFFECTS AND EXPLAINS WHY IT IS INCORRECT TO EQUATE SUCH
EFFECTS WITH "ADDICTION." THE MILD PHARMACOLOGICAL EFFECTS OF NICOTINE ARE
MUCH THE SAME AS THE EFFECTS OF NATURALLY OCCURRING COMPOUNDS IN MANY
PRODUCTS SUCH AS CAFFEINE AND SUGAR. THIS DOES NOT MEAN THAT THOSE
SUBSTANCES ARE "ADDICTIVE" OR THAT THEIR CONSUMPTION IS INVOLUNTARY--AND
CERTAINLY CANNOT BE THE BASIS FOR FDA REGULATION.
• WHILE SOME AUTHORS MAY VIEW NICOTINE AS THE SOLE OR PRIMARY REASON FOR
SMOKING, THE SUBMISSION EXPLAINS THAT PEOPLE DO IN FACT SMOKE FOR MANY
REASONS OTHER THAN NICOTINE.
WlGAND / 60 MINUTES
SITUATION ANALYSIS /EXECUTIVE SUMMARY: IN NOVEMBER, CBS'S LAWYERS ORDERED
THE NEWS PROGRAM "60 MINUTES" NOT TO BROADCAST ITS INTERVIEWS WITH A FORMER TOBACCO
EXECUTIVE THAT WERE PART OF ITS SEGMENT ON THE TOBACCO INDUSTRY FOR THE NOVEMBER 12
SHOW. THE DAILY NEWS LATER REVEALED THE TOBACCO EXECUTIVE TO BE JEFFREY WlGAND,
FORMER VICE PRESIDENT OF RESEARCH AND DEVELOPMENT AT BROWN & WlLLIAMSON TOBACCO
COMPANY. EVEN THOUGH WlGAND'S IDENTITY WOULD NOT HAVE BEEN REVEALED ON THE PROGRAM,
CBS MADE THE DECISION BECAUSE THE INTERVIEW WOULD VIOLATE THE AGREEMENT WlGAND HAD
WITH B&W. THE LAWYERS BELIEVED THAT CBS MIGHT BE HELD LEGALLY RESPONSIBLE FOR
"TORTIOUS INTERFERENCE." TORTIOUS INTERFERENCE OCCURS WHEN PERSON A OR COMPANY A
IMPROPERLY INTERFERES WITH A CONTRACT BETWEEN B AND C. CBS'S LAWYERS BELIEVED THAT
CBS COULD BE ACCUSED OF INDUCING WlGAND TO BREAK HIS AGREEMENT.
17
/kCCOP, OtNC= TO TIlE DAILY NEWS, JEFFREY WIGAND TOLD "60 MINUTES" THAT HI:: BELIEVED
WILLIAM SANDEFUR, CHAIRMAN AND CEO OF B&W, COMMITTED PERJURY IN FRONT OF THE
SENATE SUBCOMMITTEE BY SAYING THAT NICOTINE IS NOT ADDICTIVE. IF THAT IS SO, THEN DID
NOT WILLIAM CAMPBELL DO THE SAME?
• I AM CONFIDENT THAT BILL CAMPBELL TOLD THE TRUTH BEFORE CONGRESS.
• NOT ABLE TO ADDRESS ASSERTIONS ABOUT OTHER COMPANIES.
YOUTH
38. WHAT IS PM'S POSITION ON THE ISSUE OF SMOKING BY MINORS?
• IT IS ONE OF OUR CORE BELIEFS THAT SMOKING SHOULD BE AN ADULT CHOICE. WE DON'T
WANT KIDS TO SMOKE AND WE DON'T MARKET OUR CIGARE]-FES TO KIDS.
• LAST JUNE WE ANNOUNCED A 10-POINT PROGRAM, ACTION AGAINST ACCESS (AAA), THE
GOAL OF WHICH IS A RET~IL ENVIRONMENT .WHERE MINORS CANNOT PURCHASE
CIGARETTES.
• AS PART OF THE AAA INITIATIVE, WE STOPPED SAMPLING FREE CIGARETTES, STOPPED
SENDING CIGAREqq'ES THROUGH THE MAIL, PUT THE WORDS "UNDERAGE SALE PROHIBITED"
ON ALL OF OUR PACKS AND CARTONS IN THE U.S., AND CREATED A SYSTEM WHEREBY WE
WILL FINANCIALLY REWARD RETAILERS WHO COMPLY WITH STATE MINIMUM AGE LAWS AND
PENALIZE RETAILERS, ON AN INCREMENTAL BASIS, WHO ARE FINED OR CONVICTED FOR
VIOLATING THOSE LAWS.
• PARTICIPATE IN THE COALITION FOR RESPONSIBLE RETAILING'S "WE CARD" PROGRAM.
COALITION PROVIDES RETAILERS WITH SIGNAGE, EDUCATION AND INFORMATIONAL
MATERIALS TO HELP THEM OBEY MINIMUM AGE LAWS. "WE CARD" IS A NATURAL
SUCCESSOR TO PM USA'S "ASK FIRST--IT'S THE LAW" RETAIL EDUCATION PROGRAM.
• WE SUPPORT STRICT ENFORCEMENT OF STATE LAWS MAKING IT ILLEGAL TO SELL
CIGARETTES TO MINORS AND WORK WITH OTHERS TO PURSUE REASONABLE STATE LAWS
THAT WILL INSURE THAT MINORS DO NOT HAVE ACCESS TO CIGARETTES.
O
C~
0
18
39.
DON'T YOU HAVE TO RECRUIT MINORS TO MAKE UP FOR THE MORE THAN 400,000 SMOKERS YOU
LOSE EVERY YEAR TO SMOKING RELATED DISEASE?
• NO. A CERTAIN PERCENTAGE OF ADULTS IS GOING TO CHOOSE TO SMOKE. WE COMPETE
FOR THAT ADULT MARKET.
40.
ISN"r TEENAGE SMOKING ON THE RISE?
• THE GENERAL TREND IN YOUTH SMOKING OVER THE PAST TWO DECADES IS SHARPLY
• WE ARE WORKING TO PREVENT YOUTH SMOKING.
41.
WHAT IS PM DOING INTERNATIONALLY TO PREVENT YOUTH FROM SMOKING?
• PM'S WORLDWIDE POLICY IS TO ENSURE THAT OUR CIGARETTES ARE SOLD AND MARKET
TO ADULTS ONLY.
• WE ARE CONSTANTLY DEFINING AND EXPANDING INITIATIVES WHICH ADDRESS THE ISSUES
OF YOUTH ACCESS INTERNATIONALLY. IN EACH CASE, THE PROGRAMS ARE DEVELOPED IN
CONCERT WITH GOVERNMENT, HEALTH AUTHORITIES, THE DISTRIBUTION TRADE AND THE
LOCAL INDUSTRY. ALTHOUGH THE PROGRAMS MAY DIFFER IN DETAIL FROM MARKET TO
MARKET, THE ARE ALL DESIGNED TO ACHIEVE THE SAME RESULT--THAT CIGARETTES BE
SOLD AND MARKETED ONLY TO ADULTS.
42.
WILL PMI ALSO PUT LABELING ON ITS PRODUCTS (LIKE PM USA) INDICATING SALES PROHIBITED
TO YOUTH?
PM'S WORLDWIDE POLICY IS TO ENSURE THAT OUR CIGARETTES ARE SOLD AND MARKET
TO ADULTS ONLY.
PM COMPLIES WITH ALL APPLICABLE POLICIES AND LAWS.
PMI ON AN ON-GOING BASIS WILL REVIEW ITS POLICIES AND PRACTICES.
19
o
SMOKING, BANS / RESTRICTIONS / ACCOMMODATION PROGRAM
43. WHAT IS PM's POSITION ON SMOKING BANS AND RESTRICTIONS IN
WORKPLACE?
PUBLIC AND THE
WE OPPOSE SMOKING BANS. WE FAVOR SMOKING POLICIES THAT PROVIDE
ACCOMMODATION FOR BOTH NON-SMOKERS AND SMOKERS IN PUBLIC AND THE
WORKPLACE, IN SEPARATE AREAS WHERE NECESSARY.
WE STARTED THE ACCOMMODATION PROGRAM TO HELP BUSINESSES SERVING THE
PUBLIC ACCOMMODATE BOTH THEIR SMOKING AND NON-SMOKING CUSTOMERS. TODAY
THERE ARE MORE THAN 25,000 ESTABLISHMENTS AROUND THE COUNTRY PARTICIPATING
IN THE ACCOMMODATION PROGRAM.
LARGE MAJORITY OF AMERICANS AGREE WITH US. RECENT CNN/USA TODAYPOLL FOUND
THAT 61% OF RESPONDENTS FAVORED SMOKING SECTIONS IN RESTAURANTS AND 78%
FAVORED ACCOMMODATION IN HOTELS AND MOTELS.
WE BELIEVE INDIVIDUAL BUSINESSES AND EMPLOYERS SHOULD HAVE THE FREEDOM TO
DETERMINE THE SMOKING POLICIES THAT WORK BEST FOR THEM, THEIR CUSTOMERS
AND/OR EMPLOYEES.
TECHNOLOGY--NOT SMOKING BANS nMAY BE THE ANSWER TO THE INDOOR AIR QUALITY
PROBLEM. STATE-OF-THE-ART VENTILATION AND FILTRATION SYSTEMS THAT
CORRESPOND TO THE INDOOR AIR QUALITY STANDARD SET BY THE AMERICAN SOCIETY OF
HEATING, REFRIGERATION AND AIR CONDITIONING ENGINEERS CAN REMOVE 95% OF
PARTICULATE MATTER IN THE AIR, INCLUDING TOBACCO SMOKE.
20
44.
45.
WHAT ARE YOU DOING TO ADDRESS THE INCREASING NUMBER OF SMOKING BANS IN THE U.S.?
• WE LAUNCHED AND CONTINUE TO EXPAND THE ACCOMMODATION PROGRAM, WHICH
PROVIDES HOTEL AND RESTAURANT OWNERS, STORE OWNERS, SHOPPING MALL
MANAGEMENT AND OTHER DECISION MAKERS WITH A REASONABLE ALTERNATIVE TO
SMOKING BANS.
• WE PLAN TO PROMOTE THE PROGRAM HEAVILY IN MAJOR MARKETS AROUND THE
COUNTRY, INCLUDING NEW YORK STATE, AND ATLANTA IN CONJUNCTION WITH THE
OLYMPICS.
• WE INFORM ACTIVIST SMOKERS THROUGH A VARIETY OF CHANNELS INCLUDING OUR
SMOKERS ADVOCATE AND SMOKERS CAUCUS NEWS LETTERS, WHEN PROPOSALS TO
BAN SMOKING ARISE.
• WE HAVE A VERY ACTIVE GOVERNMENT AFFAIRS FIELD STAFF WHO REPRESENT OUR
INTERESTS TO STATE LEGISLATURES AND LOCAL GOVERNING BODIES.
WHAT IS PM's POSITION ON THE BAN PASSED LAST YEAR BY THE NEW YORK CITY COUNCIL AND
SIGNED BY MAYOR GIULIANt?
WE OPPOSED THE BAN AS EXCESSIVE, UNNECESSARY AND ECONOMICALLY HARMFUL TO
THE CITY, AS DID SEVERAL OTHER BUSINESS ORGANIZATIONS IN NEW YORK, INCLUDING
THE HOTEL/MOTEL, RESTAURANT AND TOURIST INDUSTRIES.
• A SURVEY TAKEN 30 DAYS AFTER THE NEW RULES WENT INTO EFFECT SHOWED THAT
MORE THAN HALF OF 209 RI~STAURANTS SAMPLED SAID THE SMOKING BAN WAS BAD FOR
BUSINESS. 41% REPORTED LOWER RECEIPTS FOR THE MONTH, WITH 52% REPORTING
LOSSES OF 15% OR MORE.
• A STORY IN THE NEW YORK TIMES INDICATED THAT RESTAURATEURS CONTINUE TO
OPPOSE THIS LAW. AN OFFICIAL OF THE NEW YORK STATE RESTAURANT ASSOCIATION
POINTED OUT THAT RESTAURATEURS DO NOT NEED A LAW TO TELL THEM TO
ACCOMMODATE NON-SMOKERS WHO ARE A ANNOYED BY TOBACCO SMOKE.
21
46.
47.
WHY ~s PM ~,~J|LDtNG SMOKING LOUNGES IN AIRPORTS?
• WE ARE NOT BUILDING SMOKING LOUNGES IN AIRPORTS.
• IN ATLANTA, WE TOOK EXISTING DOLLARS THAT WERE USED TO PAY FOR ADVERTISING
SPACE IN VARIOUS LOCATIONS AROUND THE AIRPORT AND USED THOSE DOLLARS TO PAY
FOR EXCLUSIVE ADVERTISING SPACE IN THE SMOKING LOUNGES AND HELP SUBSIDIZE
THEIR CONSTRUCTION BY THE CITY.
• IN DENVER, WE MATCHED UP A VENTILATION FILTER MANUFACTURER WITH
HOST/MARRIOTT, WHICH OPERATES A RESTAURANT/BAR AT THE AIRPORT. THEY,
INDEPENDENTLY OF PM, AGREED TO A DEAL WHERE THE FILTER MANUFACTURER
PROVIDES ITS FILTERS FREE TO HOST/MARRIO'I-r ON A TRIAL/DEMONSTRATION BASIS, AND
THE AIRPORT HAS AGREED TO ALLOW SMOKING IN THE BAR WITH THE ADDITIONAL FILTERS.
THERE IS NO PM INVOLVEMENT IN THIS ARRANGEMENT.
VVHAT IS PHILIP MORRIS DOING TO PREVENT DISCRIMINATION AGAINST SMOKERS?
• THE ACCOMMODATION PROGRAM PROMOTES ACCOMMODATION FOR BOTH SMOKERS AND
NON-SMOKERS AND DISCOURAGES SMOKER DISCRIMINATION IN THOUSANDS OF
RESTAURANTS, HOTELS, BOWLING ALLEYS AND OTHER BUSINESSES SERVING THE PUBLIC.
• PART OF A BROADLY BASED COALITION THAT HAS SUPPORTED THE PASSAGE OF PRIVACY
LEGISLATION AT THE STATE LEVEL. THAT WORK HAS PAID OFF. TODAY, 29 STATES,
INCLUDING THE DISTRICT OF COLUMBIA, HAVE LAWS WHICH PREVENT EMPLOYERS FROM
DISCRIMINATING AGAINST SMOKERS FOR THE CHOICE OF SMOKING AWAY FROM THE
WORKPLACE.
22
TOBACCO PROCESSING AND CIGARETTE DESIGN
48. DO CIGARETFE MANUFACTURERS ENHANCE NICOTINE LEVELS IN "RECONSTITUTED LEAF?."
• NO. RECONSTITUTED TOBACCO LEAF ACTUALLY HAS LESS NICOTINE THAN NORMALLY
OCCURS IN TOBACCO LEAVES. MOREOVER, THE RECONSTITUTED TOBACCO PROCESS
ITSELF RESULTS IN LESS NICOTINE IN THE FINAL RECONSTITUTED TOBACCO THAN EXISTED
IN THE RAW MATERIALS AT THE BEGINNING OF THE PROCESS.
• IN ORDER TO UTILIZE AS MUCH OF THE TOBACCO PLANT AS POSSIBLE, STEMS AND SMALL
TOBACCO PARTICLES ARE COMBINED TO FORM SO-CALLED RECONSTITUTED LEAF (RL).
TO MAKE RL, THE FLAVORFUL AND AROMATIC PARTS OF THE TOBACCO, INCLUDING
NICOTINE, ARE FIRST REMOVED IN ORDER TO FORM A TYPE OF FIBROUS, FLAVORLESS
"PAPER." THESE COMPONENTS ARE THEN ADDED BACK IN. THIS PROCESS RESULTS IN AN
OVERALL LOSS OF THE COMPONENTS (INCLUDING NICOTINE) THAT CONTRIBUTE
TO
TOBACCO'S UNIQUE TASTE AND AROMA.
49.
WHAT IS "EXPANDED" TOBACCO?
• EXPANDED TOBACCO IS SIMPLY TOBACCO THAT HAS BEEN "ENLARGED" TO TAKE UP MORE
SPACE, MUCH LfKE "PUFFED" RiCE OR WHEAT BREAKFAST CEREALS. EXPANDED TOBACCO
INCREASES THE "FILLING POWER" OF CIGARETTES. THE PROCESSES INVOLVED IN MAKING
EXPANDED TOBACCO RESULT IN A REDUCTION IN NICOTINE CONTENT.
50.
IS NICOTINE ADDED TO CIGARETTES AS A "FLAVORING INGREDIENT?"
• PM DOES NOT ADD NICOTINE TO ITS CIGARETTES AT ANY POINT IN THE MANUFACTURING
PROCESS.
• HOWEVER, A SMALL AMOUNT OF NICOTINE SULFATE IS ADDED TO ETHYL ALCOHOL (A
SOLVENT FOR CERTAIN CIGARETTE FLAVORING INGREDIENTS) AS REQUIRED BY
REGULATIONS OF THE BUREAU OF ALCOHOL, TOBACCO AND FIREARMS. THIS PROCESS
RENDERS THE ETHYL ALCOHOL DENATURED (I.E., UNDRINKABLE). THE MINUSCULE AMOUNT
OF NICOTINE CONTRIBUTED BY THIS PROCESS IS TOO SMALL TO BE DETECTED BY
STANDARD ANALYTICAL METHODS.
23
ALZHEIMER'S DISEASE
51. THERE ARE SOME STUDIES INDICATING THAT NICOTINE IS BENEFICIAL IN PREVENTING OR
AMELIORATING THE EFFECTS OF ALZHEIMER'S DISEASE. IS PM DOING ANY RESEARCH IN THIS
AREA?
• WE FUND RESEARCH AT CASE WESTERN RESERVE UNIV., CLEVELAND, OHIO.
• ALL WE KNOW ABOUT THE EFFECT CIGARETTE SMOKING HAS ON ALZHEIMER'S DISEASE iS
THAT WHICH WE HAVE SEEN OR READ FROM THE PUBLIC RECORD.
"FIRE-SAFE" CIGARETTE
52. ISN'T IT TRUE THAT THE TOBACCO INDUSTRY HAS THE ABILITY TO MANUFACTURE A 'FIRE-SAFE'
CIGARETTE, BUT REFUSES TO DO SO BECAUSE OF POSSIBLE ADVERSE PRODUCT LIABILITY
CONSEQUENCES?
• NO. PM DOES NOT YET HAVE THE ABILITY TO MANUFACTURE A COMMERCIALLY FEASIBLE
"FIRE-SAFE" CIGAREI-rE.
• THERE IS NO RELIABLE TEST OR STANDARD TO DETERMINE WHAT IS A "FIRE-SAFE"
CIGARETFE.
53.
WHAT ABOUT THE DOCUMENTS MIKE WALLACE PRODUCED ON "60 MINUTES" THAT ALLEGEDLY
SUPPORT HIS CLAIMS TO THE CONTRARY?
• THOSE DOCUMENTS WERE TAKEN COMPLETELY OUT OF THE CONTEXT OF A RESEARCH
PROGRAM IN WHICH WE WERE ENGAGED FOR SEVERAL YEARS.
24
54.
WHAT IS PM USA DOING TO PRODUCE A COMMERCIALLY MARKETABLE "FIRE-SAFE" CIGARETTE
OR AT LEAST A CIGARETTE WITH REDUCED IGNITION PROPENSITY?
• IN 1990, CONGRESS INSTRUCTED THE CONSUMER PRODUCT SAFETY COMMISSION
(CPSC) TO PROVIDE A REPORT ON WHETHER A COMMERCIALLY FEASIBLE "FIRE-SAFE"
CIGARETTE COULD BE DEVELOPED.
• PM USA, AS WELL AS OTHER MEMBERS OF THE INDUSTRY, PARTICIPATED IN THE
TECHNICAL ADVISORY GROUP TO THE CPSC THAT DID THE FEASIBILITY STUDY. CPSC
HAS SUBMITTED ITS REPORT TO CONGRESS.
• OUR R&D DEPARTMENT CONTINUES TO WORK ON REDUCING THE IGNITION PROPENSITY OF
ClGARE-I-FES.
• WE CONTINUE TO PURSUE IDEAS THAT WE HOPE WILL LEAD TO MEANINGFUL REDUCTIONS IN
IGNITION PROPENSITY IN COMMERCIALLY FEASIBLE CIGARETTES.
55.
HOW DO YOU RESPOND TO THE CLAIMS THAT VIRGINIA SLIMS, OR ANY EXTENSION OF THE
VIRGINIA SLIMS BRAND FAMILY, ARE "FIRE-SAFE?"
• PM DOES NOT YET HAVE THE ABILITY TO MANUFACTURE A COMMERCIALLY FEASIBLE "FIRE-
SAFE" CIGARETFE.
56.
JEFFREY WlGAND, FORMER B & W DIRECTOR OF RESEARCH AND DEVELOPMENT, RECENTLY
TESTIFIED IN A MA LAWSUIT AGAINST PHILIP MORRIS IN WHICH THE PLAINTIFF ALLEGED THAT A
FIRE STARTED BY A CIGARETTE WAS RESPONSIBLE FOR KILLING SEVERAL PEOPLE. IS IT TRUE
THAT THE "TECHNOLOGY TO DEVELOP A CIGARETTE WITH SIGNIFICANTLY REDUCED IGNITION
PROPENSITY BY REDUCING TOBACCO PACKING DENSITY AND/OR PAPER POROSITY AND/OR
CIRCUMFERENCE HAS BEEN AVAILABLE FOR AT LEAST 30 YEARS" AS WlGAND STATED IN HIS
DEPOSITION?
• PHILIP MORRIS HAS NOT BEEN ABLE TO OVERCOME THE DIFFICULTIES OF REALISTICALLY
REDUCING IGNITION PROPENSITY AND OBTAINING ACCEPTABLE CONSTITUENT DELIVERIES
AND SUBJECTIVE TASTE.
• WE CONTINUE TO PURSUE IDEAS THAT WE HOPE WILL LEAD TO MEANINGFUL REDUCTIONS
IN IGNITION PROPENSITY.
25
r~
57.
58.
59.
60.
AREN'T CIGARETTES A MAJOR CAUSE OF FIRES?
• NO. IN 1988, A U.S. FIRE ADMINISTRATION SYMPOSIUM ON "OVERCOMING BARRIERS TO
PUBLIC FIRE EDUCATION" RANKED LACK OF "FIRE-SAFE" CIGARETTE LEGISLATION 19TH ON
LIST OF 21 BARRIERS TO FIRE SAFETY.
• KEY IS FIRE EDUCATION. JAPAN AND GERMANY HAVE FAR FEWER FIRES PER CAPITA THAN
THE U.S., DESPITE THE LARGER PERCENTAGE OF PEOPLE WHO SMOKE IN THOSE
COUNTRIES.
WHAT IS PM'S POSITION ON LEGISLATION THAT WOULD MANDATE THE DEVELOPMENT OF A
"FIRE-SAFE" CIGARETTE?
• ADVANCES IN TECHNOLOGY CANNOT BE LEGISLATED. LAWS MANDATING "FIRE-SAFE"
CIGARETTES MUST CONSIDER BOTH TECHNICAL AND COMMERCIAL FEASIBILITY OF SUCH
PRODUCTS.
• WE HAVE YET TO DEVELOP A "FIRE-SAFE" CIGARETTE THAT TASTES GOOD AND WOULD BE
ACCEPTABLE TO CONSUMERS.
ISNIT THERE AN AGREEMENT AMONG THE TOBACCO COMPANIES NOT TO DEVELOP A "FIRE-SAFE"
CIGARETTE?
• NO. TOBACCO INDUSTRY IS INTENSELY COMPETITIVE AND DRIVEN BY CONSUMER DEMAND.
WOULD YOU COMMENT ON THE JUSTICE DEPARTMENT INVESTIGATION INTO THE ALLEGATION
THAT THE CIGARETTE MANUFACTURER'S ARE CONSPIRING TO KEEP A "FIRE-SAFE" CIGARETTE
OFF THE MARKET?
• PM RECEIVED A CIVIL INVESTIGATION DEMAND FROM THE ANTITRUST DIVISION OF THE US
DEPARTMENT OF JUSTICE IN AN INVESTIGATION OF SUCH AN ALLEGATION. PM HAS NOT
ENGAGED IN SUCH ACTIVITY EITHER WITH OTHERS OR ALONE AND IS COOPERATING WITH THE
JUSTICE DEPARTMENT.
26
"DATE CODING"
61. IF FOOD PACKAGES ARE DATE CODED, WHY NOT CIGARE'I-FE PACKS.'?
CIGARETFES ARE NOT MANUFACTURED OR CONSUMED AS A FOOD PRODUCT. CIGARETTES
DO NOT SPOIL ON THE SHELF. TOBACCO IS SPECIFICALLY AGED FOR UP TO TWO YEARS
BEFORE IT IS USED IN CIGARIEFFE MANUFACTURING.
CIGARETTES WON't STAY FRESH FOREVER, BUT THEY CERTAINLY DON'T HAVE THE SHORT
SHELF LIFE THAT MAKES DATE CODING APPROPRIATE FOR FOOD PRODUCTS LIKE MILK AND
EGGS.
WARNING LABELS
62.
WHY DO YOU PUT ENGLISH LANGUA,GE WARNING LABELS ON YOUR CIGARETTE PACKS IN NON-
ENGLISH SPEAKING COUNTRIES?
• OVER 95°/0 OF THE WORLD'S POPULATION LIVES IN COUNTRIES WHICH HAVE NATIONAL
REGULATIONS GOVERNING CIGARE-FrE PRODUCT LABELING. PM VOLUNTARILY PLACES THE
U.S. SURGEON GENERAL'S WARNING ON CIGARETTE PACKS EXPORTED TO COUNTRIES
WHICH DO NOT HAVE GOVERNMENT REQUIREMENTS TO PLACE HEALTH WARNING LABELS
ON CIGARETFES PACKS. (EXCEPTION IS MOROCCO, WHERE THE LOCAL GOVERNMENT HAS NOT YET
IMPLEMENTED A LOCAL WARNING AND HAS REFUSED TO ACCEPT CIGARETTES WITH THE SURGEON
GENERAL'S WARNING.)
DOMESTIC MARKET DECLINE
63. THERE ARE SOME INDICATIONS THAT THE DECLINE OF SMOKING IN THE U.S. HAS BEEN SLOWING.
WHAT ARE THE IMPLICATIONS FOR PM USA'S BUSINESS?
• ALTHOUGH THE DOMESTIC CIGARETTE MARKET HAS BEEN DECLINING MODERATELY FOR
MORE THAN A DECADE, PM HAS SUBSTANTIALLY INCREASED VOLUME BY COMPETING
VIGOROUSLY AND SUCCESSFULLY FOR MARKET SHARE. THAT WILL CONTINUE TO BE OUR
POLICY.
27
PLAIN PACKAGING
64. WHY IS PM RESISTING IDEAS SUCH AS PLAIN PACKAGING TO MAKE CIGAREq-FES LESS APPEALING
TO MINORS?
• PLAIN PACKAGING WILL NOT LESSEN CONSUMPTION OR MAKE SMOKING LESS APPEALING.
JUVENILE SMOKING IS DUE TO PEER PRESSURE AND PARENTAL BEHAVIOR. PLAIN
PACKAGING IS AN EXPROPRIATION OF OUR INTELLECTUAL PROPERTY RIGHTS AND OUR
ABILITY TO COMPETE FAIRLY. MOREOVER, IT IS PUNITIVE TO CONSUMERS AS IT REDUCES
THEIR ABILITY TO DISTINGUISH BRAND TYPES OR BRAND ATTRIBUTES. IT WILL ALSO MAKE
SMUGGLED CIGARETTES WITH REGULAR PACKAGING MORE ATTRACTIVE AND MAKE
COUNTERFEITING EASIER.
PRIVATIZATION
65. STATE-CONTROLLED TOBACCO COMPAI~ES STILL EXIST IN ITALY, PORTUGAL, AUSTRIA AND
SPAIN. ARE ANY LIKELY TO BE PRIVATIZED? WHAT IS PMI'S POSITION?
• PRESS REPORTS THAT SPAIN AND PORTUGAL ARE CONSIDERING SELLING SOME OR All OF
THEIR STATE INTERESTS. PRIVATIZATION OF THE ITALIAN MONOPOLY IS LIKELY TO BE
; DELAYED FOR SOME YEARS. ~
• PM HAS LONG-STANDING RELATIONSHIPS WITH THESE COMPANIES, THE NATURE AND
EXTENT OF WHICH WOULD HAVE TO BE EVALUATED IN LIGHT OF ANY PRIVATIZATION.
• WE COMPETE SUCCESSFULLY IN ALL EU MARKETS AND WILL CONTINUE TO DO SO IN THE
AFTERMATH OF ANY PRIVATIZATION.
28
ARTICLE 28
66. WHAT IS ARTICLE 28 AND PM'S POSITION ON IT?
• PM IS A MOVING FORCE BEHIND ARTICLE 28, WHICH IS AN INDUSTRY JOINT EFFORT TO
STABILIZE, PRESERVE AND PROTECT THE MARKET FOR DOMESTIC TOBACCO GROWERS
AGAINST CHEAPER FOREIGN IMPORTS.
• ATTHE URGING OFTHE TOBACCO INDUSTRY AND OTHERS, THE USTR NEGOTIATED WITH
OTHER COUNTRIES LIMITS ON THE AMOUNT OF TOBACCO IMPORTS PERMI'I-FED INTO THE
U.S.
• THAT EFFORT WAS SUCCESSFUL, AND INDUSTRY IS NOW ENGAGED IN AN EFFORT TO
INSURE THAT TOBACCO MANUFACTURERS RECEIVE IMPORT LICENSES TO HELP KEEP
ORDER IN THE TOBACCO MARKET.
• THAT EFFORT IS ONGOING AT USTR AND ARTICLE 28 CONTINUES TO BE A TOP PRIORITY
FOR PM.
29
DEVELOPING COUNTRIES
67. MANY CRITICS ACCUSE THE COMPANY OF TAKING ADVANTAGE OF UNSUSPECTING CONSUMERS IN
LESSER DEVELOPED COUNTRIES. HOW DOES PM RESPOND TO SUCH CRITICISMS?
• WE FOLLOW THE SAME STRICT CODE FOR MARKETING ALL OUR PRODUCTS AROUND THE
WORLD, AND WE ABIDE BY ALL LOCAL REGULATIONS.
• PEOPLE HAVE BEEN SMOKING OUTSIDE THE U.S. LONGER THAN THERE'S BEEN A U.S.
CIGARETTE MARKET. FOR CENTURIES, TOBACCO HAS BEEN GROWN IN ALL PARTS OF THE
WORLD, AND PEOPLE WERE SMOKING YEARS BEFORE THE FIRST NORTH AMERICAN
TOBACCO PLANTATION IN 1612 (JAMESTOWN).
• THERE IS A MISPERCEPTION ABOUT THE SIGNIFICANT OF US. EXPORTS IN THE
INTERNATIONAL CIGARETTE TRADE. CURRENTLY, U.S. CIGARETTES EXPORTS ACCOUNT
FOR LESS THAN 4% OF WORLDWIDE CIGARETTE SALES.
• A VAST MAJORITY OF THE WORLD'S CIGARETTES ARE PRODUCED BY LOCAL GOVERNMENT
MONOPOLIES.
• IF U.S. CIGARETTES WERE NOT PRESENT, PEOPLE WOULD STILL SMOKE. THE ONLY
DIFFERENCE WOULD BE THAT THEY WOULD BE SMOKING CIGARETTES MADE BY THE BRITISH,
GERMAN OR SWISS MANUFACTURERS, OR MONOPOLIES SUCH AS JAPAN, ITALY OR
FRANCE. THERE IS SURPLUS PRODUCTION AND ENOUGH MANUFACTURING CAPACITY BY
NON-U.S. MANUFACTURERS TO ENSURE THAT ANY VOID LEFT BY EXPORTS WOULD BE
QUICKLY FILLED.
• QUESTION IS NOT WHETHER PEOPLE ARE SMOKING, BUT RATHER WHAT THEY ARE
SMOKING.
30
INTERNATIONAL RAMIFICATIONS OF U.S. ISSUES
68. MUCH IS PUBLICIZED IN THE U.S. ABOUT THE INCREASED LIMITATIONS ON ONE'S FREEDOM TO
SMOKE. IS THIS ISSUE ON THE RISE GLOBALLY. IF SO, IS THERE ANYTHING TO BE LEARNED FROM
THE U.S. EXPERIENCE?
• WE FEEL THE SITUATION IN THE U.S. DOES NOT REFLECT THE CURRENT OVERALL
INTERNATIONAL ENVIRONMENT IS MORE ACCOMMODATING TO THE RIGHTS OF SMOKERS.
• THAT THERE ARE A FEW COUNTRIES WHERE THE ENVIRONMENT IS EVEN MORE HOSTILE
THAN IN THE U.S. (E.G. SINGAPORE AND CANADA). EVEN SO, WE CONTINUE TO DO
BUSINESS PROFITABLY AND WILL CONTINUE TO VIGOROUSLY DEFEND THE RIGHTS OF OUR
CONSUMERS.
69.
HAS THERE BEEN ANY IMPACT ON OUR INTERNATIONAL EXPORT BUSINESS DUE TO THE HOSTILE
ATMOSPHERE IN THE U.S.
• THE RECORD YEAR WE'VE HAD IN INTERNATIONAL SPEAKS FOR ITSELF. OUR EXPORT
VOLUME IN 1995 REACHED 164 BILLION UNITS, UP 22.8% FROM 1994.
70.
DOES PM HAVE ANY CRITICAL LAW SUITS PENDING OUTSIDE THE U.S.? IF SO, WHERE AND WHAT
ARE THEY?
• THERE ARE NO LAWSUITS FOR WHICH WE CAN FORESEE ANY MATERIAL LIABILITY IN THE
NEAR FUTURE.
71.
WHERE IS TOBACCO LIABILITY FORESEEN TO BE MOVING INTERNATIONALLY?
• EVERY COUNTRY HAS DIFFERENT LAWS AND REGULATIONS CONCERNING LIABILITY.
• WE DO NOT SEE NEAR THE LEVEL OF LITIGATION ACTIVITY OUTSIDE THE U.S. THE U.S.
LEGAL SYSTEM DIFFERS FROM OTHERS IN SOME IMPORTANT ASPECTS:
CONTINGENCY FEE SYSTEMS GENERALLY DO NOT EXIST OUTSIDE THE U.S.
ALMOST NOWHERE ARE PUNITIVE DAMAGES AWARDED TO THE EXTENT THEY ARE IN
THE U.S. SYSTEM
IN MANY JURISDICTIONS, THE LOSING PARTY IS RESPONSIBLE FOR THE LITIGATION
COSTS OF BOTH PARTIES.
31
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SOURCING
72.
PRESENTLY PM IS A SIGNIFICANT CONTRIBUTOR TO THE U.S. TRADING ACCOUNT THROUGH ITS
LARGE EXPORT BASE. WITH THE CONTINUING AGGRESSIVE POSITIONS TAKEN IN THE U.S.
TOWARD THE CIGARETTE INDUSTRY, IS THERE NOT A RATIONALE FOR MOVING SOURCING
OFFSHORE, SAY TO EUROPE OR A LESS HOSTILE CLIMATE?
• AS A U.S. CORPORATION, WE HAVE A STRONG COMMITMENT TO THE U.S. ECONOMY AND
U.S. WORKERS.
• WE PREFER TO EXPORT FROM THE U.S. WHENEVER POSSIBLE. WE INVESTED BILLIONS OF
DOLLARS IN OUR U.S. FACILITIES , WHICH ARE AMONG THE MOST EFFICIENT IN THE WORLD.
IT MAKES SENSE FOR US TO UTILIZE THE FACILITIES AND MANPOWER AVAILABLE IN THE
U.S. TO THEIR MAXIMUM POTENTIAL, AND WE DO SO.
• WE MARKET MAINLY US.-HERITAGE, AMERICAN-BLENDED BRANDS, SO "MADE IN THE U.S."
IS AN IMPORTANT coMPONENT OF OUR PRODUCT OFFERS.
• THERE ARE COUNTIES (E.G. TURKEY AND THE EU COUNTRIES) WHICH HAVE HIGH DUTIES
AND OTHER BARRIERS WHICH MAKE U.S. SOURCING NOT REALLY VIABLE AND THERE WE
MANUFACTURE LOCALLY.
32
EXPORT
73.
VOLUME
PMI'S 1995 U.S. EXPORT VOLUMES ARE AT RECORD LEVELS. DOES PMI
VOLUMES FROM THE U.S. TO CONTINUE TO INCREASE? WHY?
•
[]
•
EXPECT EXPORT
YES, AS NEW MARKETS OPEN AND OUR CIGARETTES BECOME MORE POPULAR.
IN 1995 OUR EXPORT VOLUME WAS 164 BILLION UNITS (+22.8% FROM 1994).
TRADITIONALLY, OUR BASE-BUSINESS VOLUME HAS GROWN 5-6% A YEAR. RECENTLY, AS
WE HAVE EXPANDED IN EMERGING MARKETS, OUR VOLUME HAS BEEN GROWING AT ALMOST
TWICE THAT RATE.
WE DO NOT EXPECT TO SUSTAIN THIS EXTRAORDINARY PACE. BUT EVEN AS OUR BASE
GETS BIGGER, WE ARE CONFIDENT THAT OUR GROWTH WILL MATCH -- OR MORE THAN
MATCH -- OUR HISTORICAL GROWTH TREND.
AMERICAN CIGARETTES ARE WINNERS ARE THE WORLD STANDARD OF QUALITY AND ARE
EXTREMELY SUCCESSFUL IN WORLD MARKETS.
WE EXPORT HUGE QUANTITIES OF U.S. LEAF FOR INCLUSION IN OUR PRODUCTS WHEN
THEY'RE MANUFACTURED OVERSEAS, AND OUR NEED FOR U.S. LEAF WILL NOT DIMINISH.
U.S. TOBACCO REMAINS THE MAJOR COMPONENT OF OUR PRODUCTS. AS OUR
BUSINESSES HAS GROWN, SO HAS OUR EXPORTS AND OUR OVERALL USE OF U.S.
TOBACCO.
CROP PROTECTION AGENTS (CPAS)
74. WHAT ARE CROP PROTECTION AGENTS?
[] CPAS INCLUDE MATERIALS APPLIED TO PLANTS OR SOIL FOR THE CONTROL OF PESTS AND
DISEASES AND FOR THE REGULATION OF PLANT GROWTH. CPAS ARE WIDELY USED IN THE
PROTECTION OF AGRICULTURAL CROPS, INCLUDING TOBACCO.
[] THE USE OF CPA IS STRICTLY REGULATED BY THE U.S. GOVERNMENT.
33
ARE CP AS DANGEROUS?
• No PERSUASIVE SCIENTIFIC STUDIES WHICH ESTABLISH THAT THE SMALL AMOUNTS OF
CPA RESIDUES THAT HAVE BEEN DETECTED IN TOBACCO PRODUCTS CAUSE DISEASE IN
SMOKERS.
• TECHNOLOGICAL ADVANCES MAKE IT POSSIBLE TO DETECT EXTREMELY SMALL
QUANTITIES OF CPAS IN FOODS AND OTHER PRODUCTS. SIMPLY BECAUSE IT IS POSSIBLE
TO DETECT SMALL AMOUNTS OF A SUBSTANCE DOES NOT ESTABLISH THAT IT IS
HAZARDOUS.
• TOBACCO INDUSTRY IS COMMITTED TO THE SAFEST AND MOST EFFECTIVE USE OF CPAS IN
THE CULTIVATION OF TOBACCO. IT HAS DEMONSTRATED THAT COMMITMENT BY ADHERING
TO ITS OWN VOLUNTARY GUIDELINES AS WELL AS COMPLYING WITH NATIONAL AND
INTERNATIONAL REGULATIONS AND STANDARDS.
NATIONAL SMOKERS ALLIANCE
76. WHAT IS THE NATIONAL SMOKERS ALLIANCE?
NSA IS A NON-PROFIT NATIONAL ORGANIZATION MADE UP OF A BROAD-SECTION OF
AMERICAN CITIZENS WHO SUPPORT SMOKERS' RIGHTS. NSA MEMBERS ARE POLITICALLY
ACTIVE ADULTS WHO SUPPORT FREEDOM OF CHOICE AND ARE NOT WILLING TO LET
SMOKERS BE TREATED AS SECOND-CLASS CITIZENS.
34
78.
WAS tT CREATED BY A~ID IS IT A PART OF PHILIP MORRIS?
• AS A RESULT OF INCREASING RESTRICTIONS ON SMOKING, AS WELL AS MORE AND MORE
DISCUSSION OF DISCRIMINATORY TAXATION, PM RECEIVED A NUMBER OF LETTERS AND
PHONE CALLS FROM OUR CONSUMERS LOOKING FOR A CONSUMER GROUP TO DEFEND
AND PROTECT THEIR RIGHTS, MONITOR LEGISLATIVE ACTIVITY, PROVIDE INFORMATION, AND
REPRESENT SMOKERS--NOT THE TOBACCO INDUSTRY--WITH THE MEDIA AND ELECTED
OFFICIALS.
• PHILIP MORRIS TURNED TO COALITION DEVELOPMENT EXPERTS [BURSON-MARSTELLER, IF
ASKED] TO WORK ON BEHALF OF SMOKERS IN SETTING UP AN ORGANIZATION THAT WOULD
MEET BOTH THE CRITERIA OUR CONSUMERS HAVE BEEN LOOKING FOR IN A SMOKERS'
RIGHTS ORGANIZATION AND THE QUALITIES THAT HAVE BEEN FOUND IN MOST SUCCESSFUL
COALITIONS AND ORGANIZATIONS.
• FOR MORE INFORMATION, TALK WITH THE NSA DIRECTLY, 1-800-224-3322.
HOW MUCH HAS PM SPENT ON NSA?
• WE PROVIDED THE ORGANIZATION WITH A MODERATE DEVELOPMENT GRANT. WE DON'T
PROVIDE FURTHER DETAIL ON THIS KIND OF GRANT SUPPORT.
35
SINGLE SOURCE VENDOR
79.
PROGRAM
THE PM SINGLE SOURCE VENDOR PROGRAM IS COSTING SMALL VENDORS IN THE RICHMOND
AREA THOUSANDS OF DOLLARS WORTH OF BUSINESS. CAN YOU EXPLAIN THE RATIONALE
BEHIND MOVING TO LARGE SINGLE SOURCE VENDORS, AT THE EXPENSE OF SMALL LOCAL
VENDORS?
• CORPORATIONS DEVELOP PARTNERSHIP ARRANGEMENTS WITH THEIR VENDORS IN AN
EFFORT TO REDUCE CYCLE TIME AND COSTS WHILE ENSURING A HIGH LEVEL OF QUALITY.
• A SINGLE-SOURCE VENDOR SYSTEM DOES NOT NECESSARILY HURT SMALL BUSINESSES.
• BUSINESS THAT IS SHIFTED TO FEWER, LARGER VENDORS MEANS THOSE VENDORS WILL
BE PURCHASING MORE GOODS AND SERVICES AND CREATING MORE JOBS TO PROVIDE US
WITH THE GOODS AND SERVICES WE NEED. IN MANY INSTANCES, LARGE VENDORS
PURCHASE THEIR GOODS FROM SMALLER COMPANIES.
• THERE MAY BE SOME SHORT-TERM DISRUPTION. HOWEVER, LONG-TERM, AS OUR
BUSINESS BECOMES MORE EFFICIENT AND PROFITABLE, WE BUY MORE GOODS AND
SERVICES, THEREBY CREATING A POSITIVE ECONOMIC CLIMATE IN THE COMMUNITIES IN
WHICH WE OPERATE.
ICAHN BID TO TAKE OVER RJR
80.
IF CARL ICAHN SUCCEEDS IN HIS ATTEMPT TO TAKE OVER R JR/NABISCO, WHAT IMPACT WILL IT
HAVE ON PHILIP MORRIS?
• WE WILL CONTINUE TO COMPETE VIGOROUSLY AND SUCCESSFULLY AGAINST ALL OTHER
U.S. TOBACCO COMPANIES, NO MATTER WHO owNs THEM.
36
