Tobacco Documents Online

Ellen Merlo Issues Talking Points to PM Usa Trade Council

Abstract

In this 1994 speech to the Philip Morris USA Trade Council, Ellen Merlo (Senior Vice President of Corporate Affairs at PM) states of public health efforts:

"For each of our major issues, we have strategies in place designed to insure that our opponents are not successful."

Merlo laments that increased cigarette taxes will cause too many people to quit smoking, saying

"When the [cigarette] tax goes up, industry loses volume and profits as many smokers cut back...If smokers can't smoke on the way to work, at work, in stores, banks, restaurants, they are going to smoke less. A large percentage of them are going to quit. Overall cigarette purchases will be reduced and volume decline will accelerate."

Merlo describes a major PM strategy to thwart public health efforts to restrict indoor smoking: shift the argument away from the health effects of tobacco smoke exposure and onto "accommodation" and indoor air quality in general. She describes PM's strategy to enact what the company calls "accommodation legislation," which will "serve to pre-empt local smoking restrictions which tend to be more severe." Merlo describes public health advocates' use of the "Pac-Man approach" to enacting advertising bans, and discusses "battling the antis" [public health authorities] on enforcement of the Synar Amendment to restrict marketing to youth. She urges support of PM's programs to defeat public health initiatives.

Merlo concludes the speech by urging PM USA Trade Council members to join PM in fighting its "war" against public health:

"The simple fact is we are at war, and we currently face the most critical challenges out industry has ever met. We have to get together and join forces to successfully defend our business right now--today."

This document shows Philip Morris' warlike dedication to opposing public health initiatives, and describes a multitude of corporate programs, strategies and front groups created specifically to oppose tobacco control efforts. Despite the company's repeated claims that it has changed, Ellen Merlo was still with the company as of November, 2002, according to press releases on Philip Morris' corporate web site.

Fields

Quotes

Ballot initiatives and referendums are particularly hard to defeat, because the majority of non-smoking voters usually support the tax increase...When the tax goes up sharply, industry loses volume and profits as many smokers cut back or switch to discount brands...

Smoking Bans - The Second Major Threat.

...If smokers can't smoke on the way to work, at work, in stores, banks, restaurants, malls and other public places, they are going to smoke less. A large percentage of them are going to quit. Overall cigarette purchases will be reduced and volume decline will accelerate...

STATE EARMARKED TAX LAWS-

The third potent force in marketing restrictions. • Typically passed through ballot initiative, these laws tax cigarettes and earmark the revenues for further anti- smoking activities, including the development of legislation to restrict our marketing practices. Essentially, the laws force smokers to pay for their own harassment...

• At present, California in the West with Prop. 99 passed in 1989, and Massachusetts in East with Question 1, are both funding multi-million dollar anti-smoking programs through state excise taxes on cigarettes. These two states -- one on either coast -- are incubators for anti-marketing strategies. We expect the antis to attempt to export successful programs and tactics to other states. [PAUSE] "NOW FOR THE GOOD NEWS." For each of our major issues, we have strategies in place designed to insure that our opponents are not successful...

[From Page 28, Bates No. 2022811735]:

STRATEGY-- SMOKING BANS

...• To attack EPA junk science, we are part of a newly formed national coalition -- TASSC -- stands for The Advancement of Sound Science Coalition -- that's educating the media, the public and legislators to the dangers of junk science.

• Philip Morris and several other members of the tobacco family have filed suit against the EPA in a federal court in North Carolina over the procedures the EPA used that resulted in ETS being put on the agency's Group A carcinogen list. • Shifting the focus from ETS to indoor air quality in general, showing potential allies in business how they might be the next victim of the EPA's shoddy science. In doing so, we hope to discredit the EPA and prevent smoking ban legislation wherever it is proposed. • Also shifting the argument to accommodation of both non-smokers and smokers, and promote the adoption of ventilation standards ensuring both groups can be served. We are developing model IAQ legislation and targeting initial test states, including California, Arizona and Georgia.

The Accommodation Program.

• Successful model accommodation program in Pittsburgh. Elements of this program are now being implemented in cities throughout the country.

When we reach the mobilization phase of The Accommodation Program, if we've done our job right, we think we'll have a very effective coalition of hospitality industry businesses who will be positioned to take action in defense of accommodation. Accommodation Legislation. We began promoting the adoption of accommodation legislation in selected states in 1993, and we will continue this effort on a broader scale in 1994. These laws attempt to strike a balance by ensuring that reasonable steps are taken to accommodate both non-smokers and smokers in workplaces, restaurants and other public places...In every state where we think it's realistic to try, we will be pushing for pre-emptive accommodation legislation

Company

Philip Morris

Author

R, J.G.

Type

SPCH, SPEECH, PRESENTATION

Named Organization

21 Club

American Cancer Society

Amusement + Music Operators Assn

American Stop-Smoking Intervention Study (Six year effort to reduce smoking rate in 17 U.S. states nat)

ASSIST was funded with approximately $114 million over six years in the early to mid 1990's by the American Cancer Society and the National Cancer Institute for a period of approximately 6 years.

Citizens for Tax Justice (Tobacco industry 3rd party/ally)

Listed as TI ally in TIMN0379714

Congress

Debartolo

Ebony

*EPA ( use United States Environmental Protection Agency)

Family Circle

*Health and Human Services (use United States Department of Health and Human Ser

Mccalls

Mi Legislature

National Association of Convenience Stores (Long-time tobacco industry proxy/surrogate group)

Stands up for tobacco industry causes

Natl Assn of Mfg

NSA (National Smoker's Alliance)

1994 National Smoker's Alliance 1994 - to present. Front group formed by Philip Morris Tobacco Company to oppose smoke-free laws without its corporate involvement being detected.

Palm

Peat Marwick (Audit, tax and financial advisory firm)

Later became KPMG

PM US Trade Council

Price Waterhouse (Accounting firm)

Pump Room

RJR, R.J.Reynolds

Ruths Chris Steak House

Advancement of Sound Science Coailition, The (Industry front to discredit public health/environmental effo)

TI, Tobacco Institute

Tv Guide

Named Person

Clinton, William Jefferson "Bill" (U.S. President (1993-2001))

Called for Dept. of Justice action against the tobacco industry.

Kennedy, Senator Ted (U.S. Senator from MA)

U.S. Senator from Massachusetts, has advocated against tobacco and for public health.

Merlo, Ellen (PM Corp. Affairs VP)

Marketing Services prior to 1986. Understood use of nicotine addiction in selling PM products.

Synar, Mike Rep. (U.S. Representative (D-OK) c. 1994)

Mike Synar was a U.S. Representative (D-OK). He spoke on ABC's "Day One" program. (D-CA0 91994) (DJ 5/27/94). In May 1994, U.S. representative Martin Meehan wrote a letter to U.S. Attorney General Janet Reno signed by six other congress members (Hansen, Stark, Viscolsky, Durbin, Synar, Foglietta, and Meehan signed). The letter suggested the U.S. Department of Justice investigate whether the tobacco Executives violated RICO laws or committed perjury before the Waxman subcommittee in 1994 (BNA TLR 6/29/94; DJ 5/27/94). The contact in 1994 was Amy Tobe at (202) 225-2701.

Litigation

Stmn/Produced

Operation/Project

Accommodation

Preemption

Subject

secondhand smoke

secondhand smoke strategy (Corporate strategy to deal with ETS issue)

Corporate strategy

Front groups

taxation

accommodation

marketing