Tobacco Documents Online

Industry Strategy No. 1

Abstract

This Philip Morris memo was selected as a Trial Exhibit by the state of Minnesota in its lawsuit against the industry. In it, George Weissman, Chairman of Philip Morris, discusses where the industry's stance on the health issue has led them, and where it may take them in the future. (The stance was essentially that "the case is not proven" against cigarettes.) Weissman says the company's position had been a plus saying "We bought time, in the past and for the future."

Weissman says one negative of the stance has been the company's lost credibility in government, scientific and public circles, and laments the "morale problem" is has caused "among our own employees and prospective employees to some degree." He admits that

"...the credibility gap has been incurred because fundamentally we have nothing positive to offer...Instead, our answers for 15 years have been 'not proven' or quoting favorable surveys which were in the minority of so-called scientific reports. But even the favorable surveys always have some element our enemies can turn against us..."

Still, Weissman says the company shouldn't abandon its disastrous stance, but says that he is simply pointing out "the difficulties posed when a manufacturer moves against an avalanche of government and do-gooders."

Weissman points out that the company needs to appear responsible and credible, and portray smoking "as an adult habit."

Contrary to what the tobacco industry usually says about advertising (that the purpose of cigarette ads is to get people to change brands rather than to get them to take up smoking), Weissman says,

"If you want to stretch a legal point, any ad we put in is an invitation for people to smoke."

Fields

Quotes

TO: Mr. Joseph P. Cullman, 3rd- FROM: George Weisman SUBJECT: Industry Strategy No. l December 23, 1969 CONFIDENTIAL

We have time, over the next several months, to think, out thoroughly and plan an Industry strategy for the future. I say this because I don't believe any action should be taken on by the industry until:

1. The new legislation is passed. 2. We have had an opportunity to establish a dialogue with the new F.T.C. Chairman.

However, in looking to the future, one is reminded of Winston Churchill's admonition to know the past.. What have we achieved in the past 15 years?

1. We are still in business and people will continue to smoke. We did not get the prohibition of the cyclamates. ~

2. We bought time--in the past and for the future.

3. We have s£ate preemption and at least a set of ground rules we can work with.

4. We will still be able to continue advertising and promoting, although not in the electronic media. As you know, this concerns me, less than it does others, because I have seen the overseas experience. The above is on the plus side of the balance sheet. On the minus side, we have lost a considerable about of confidence and credibility in government, scientific and public circles. We have even lost some amount of confidence among these circles and have incurred a morale problem among our own emplioyees and prospective employees to some degree.

The credibility gap has been incurred because fundamentally we have had nothing positive to offer. We were never able to use the obesity control or the psychological benefits. Instead, our answers for 15 years have been "not proven" or quoting favorable surveys which were in the minority of so-called scientific reports. But even the so-called favorable surveys always have some element which our enemies can turn against us, such as even the Twin Studies.

I am not proposing that we abandon our stance, which I belleve is based on truth and integrity and even more scientific truth than our opponents use. I merely wish to point up the difficulties posed when a manufacturer moves agalnst the avalanche of government and do-gooders.

As I noted in the first paragraph, we are entering into an era where timing will be of utmost importance. Let us be cautious and judicious and see if we can, accomplish the following:

1. Reduce the noise level of the attacks upon us.

2. Establish our industry's responsibility and credibility.

3. Give evidence of our public responsibility.

4. Make the appropriate and meaningful gestures of cooperation.

5. Establish the necessary dialogues.

6. Test out programs on moderation and "smoking is an adult habit."

7. Let's not box our opponents in corners from which we cannot get out.

I realize that the above may entail some legal risks, but they are far less than the continued alienation of government and public support. If you want to stretch a legal point, any ad we put in is an invitation for people to smoke.

It would be most unfortunate at the beginning of Weinberger's term at the F.T.C. and just after legislation has passed to come out with a campaign that will force the government and our opponents to react most vigorously. I wouldn't mind doing this, if I thought we had a chance of winning, but I don't, at this stage of our scientific knowledge.

Let us think for a while about which way we are going and let us consider the possibility of trying a new approach. I am not sure it will work any more than the other approach will work. However, we will have tried it. If it does work, we are in clover as have been the liquor and beer people since 1932. If it doesn't work and the noise level against us continues, and we can have no dialogues or cooperation, then we can always use the kind of material we saw this morning.

I know you will be getting many points of view on this matter and I would appreciate the opportunity of further discussion when you deem it appropriate.

Company

Philip Morris

Author

Weissman, George (PM Chairman & CEO '79-84)

Vice President of Philip Morris from 1954 to 1956. Vice President and Assistant to the President in 1957. Vice President of Marketing from 1958-59. Executive Vice President of Marketing in 1960. Exec. VP Overseas in 1961, Exec. VP PM International 1962-66. President from 1967 to 1972. President and Chief Operating Officer in 1973. Vice Chairman from 1974-78. Chair and CEO from '79-84 and on the Board of Directors from 1959-84. "Mastermind" of Philip Morris' direction.

Recipient

Cullman, Joseph Frederick III (PM President & CEO (1957-1970))

Executive vice president and senior marketing executive of Philip Morris in the 1950s. Exec. VP 1955-57. President in 1958, held that position until 1967. Chairman from 1968-1972 and acquired title of CEO. Chairman of the Executive Committee, 1979-85. On the Board of Directors from 1954-1985.

Region

United States

Named Organization

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.

Litigation

Stmn/Produced

Stmn/Trial Exhibit P-10707

Stmn/Trial Exhibit P-2664

Stmn/Selected

Named Person

Churchill, W.

Weinberger

Type

MEMO, MEMORANDUM

Subject

industry strategy

credibility (pertains to credibility levels of of tobacco industry)

advertising