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Letter from Rick Berman to Philip Morris

Date: 05 Sep 1995
Length: 3 pages
2072148834-2072148836
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Abstract

In this 1995 letter to Philip Morris, Rick Berman (of the public affairs company Berman & Company) proposes PM form a front group called the "Guest Choice" network to do what Philip Morris' Accomodation Program had been unable to do: motivate restaurant owners to aggressively fight smoking restrictions while appearing to be acting on their own.

Berman says to PM, "...if you want to gain more ground quickly for the smokers' rights issue, the [Guest Choice] program must create a proactive, aggressive mentality by [restaurant] operators regarding government smoking bans..."

Berman describes how hiding Philip Morris' involvement in the group's creation would increase the group's ability to take more aggressive action:

"Additional benefit -- if externally perceived as driven by restaurant interests, there will be more flexibility and creativity allowed than if it is 'owned' by Phlip Morris. The American Beverage Institute, which opposes overly aggressive DWI laws, enjoys this profile."

PM took Mr. Berman's suggestions and formed the "Guest Choice Network." The group later changed its name to the "Center for Consumer Freedom," which also fights the organic food movement and promotes genetically engineered food. Rick Berman has also been associated with the American Beverage Institute, which also fronts for the tobacco industry.

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The web site www.consumerdeception.com has an extensive expose' on Rick Berman, including his profile, exploits on behalf of industry and businesses that have associated with him. The profile begins on page http://www.consumerdeception.com/public.html The web site has also done an extensive job tracking payments from Philip Morris to Rick Berman, as documented in tobacco industry documents: Sep. 5, 1995 Berman’s initial approach to Philip Morris 2072148834-8836 Oct. 19,1995 Interoffice correspondence about Berman, plus Berman’s résumé 2072395887-5888 Nov. 3, 1995 Berman’s pitch to Philip Morris, “Change the Debate”plus Guest Choice Network’s structure 2047824004-4032 Nov. 25, 1995 Berman asks Philip Morris for $500,000 2072395949 Dec. 11, 1995 Berman asks Philip Morris for $600,000 2072395962 Dec. 15, 1995 Interoffice correspondence suggests that Philip Morris should back Berman 2072148761 Dec. 21, 1995 Philip Morris pledges $600,000 to Berman 2072395963 May 24, 1996 Berman asks Philip Morris for $300,000 2072395886 Mar. 26, 1996 A Philip Morris internal memo indicates plans to include Berman in the Philip Morris budget 2048257604 Mar. 28, 1996 Berman asks Philip Morris for $300,000 2048257603 May 29, 1996 Philip Morris voucher to Guest Choice for $200,000 2072395885 Jun. 5, 1996 Philip Morris acknowledges $200,000 to Guest Choice 2072395971 Jun. 25, 1996 Interoffice memo indicating that payments to Berman are “dues” and that no more than 10 percent is allowed for lobbying use 2072395955 Aug. 19, 1996 Berman asks Philip Morris for $200,000 to $300,000 2072395965 Aug. 20, 1996 Philip Morris voucher to Guest Choice for $200,000 2072395883 Aug. 22, 1996 Philip Morris contributes $200,000 to Guest Choice 2072395970 Dec. 10, 1996 Philip Morris contributes $500,000 to Guest Choice 2072395969 Dec. 16, 1996 Philip Morris voucher to Guest Choice for $250,000 2072395948 Apr. 1997 Guest Choice members, advisors, and agenda for 1997 to 1999; Guest Choice becomes the CCF 2072396001-6003 Jun. 23, 1997 Philip Morris contributes $350,000 to Guest Choice 2072395968 Oct. 24, 1997 Philip Morris contributes $350,000 to Guest Choice 2072395967 Nov. 8, 1998 Philip Morris contributes $300,000 to Guest Choice 2072396007

Quotes

If you're interested in a suggested change in program direction, I suggest it first be tested as a supplement to current activity without loss of momentum in the Accommodation Porgram

While the AP is a good idea to expand protection of smokers rights, it has not met your goal of widespread acceptance by the restaurant community. The restaurant business is highly diverse with many niche markets and different customer bases. Obviously, a projected broad-based (or localized) smoking ban presents these operations with vastly different visions of impact.

Some of these differing (and low-level) fears of economic impact from a ban are evidenced by operator lack of interest in the AP. Perhaps more tellingly, operators do not see any offset to legislative/regulatory bans from a program that makes smokers comfortable.

In any event, objective analysis and research with key industry operators over the last two weeks suggest the folowing profile of the AP:

Positive:

Helpful early leadership "White hat" theme Soft, non-intrusive image Sharing information Promote society acceptance of smoking

NEGATIVE

Perceived as a "tobacco" program Pro-smoking theme Unaggressive image Minimal level of useful information No connection to government smoking bans

Our analysis and recommendatons are based on much more information than is capsulated above. It general, we suggest a new test approach that operates alongside AP.

We believe that if you want to gain more ground quickly for the smokers' rights issue, the program must create a proactive, aggressive mentality by operators regarding government smoking bans.

Specifically, we recommend that we establish a restaurant-driven program that connects instantly with restaurant operators. (Additional benefit--if externally perceived as driven by restaurant interests, there will be more flexibility and creativity allowed than if it is "owned" by Philip Morris. The American Beverage Institute, which opposes overly-aggressive DWI laws, enjoys this profile.)

The program would obviously carry a different name which we suggest should be "Guest Choice" (GC). While "Accommodation is perceived to accept smoking, "Guest Choice" defends consumer rights. As one CEO suggested to me, "Accommodation starts wou on its heels. "Guest Choice" starts out on its toes." (The RJR program that uses the "Lifestyle Police" to defend consumer rights is overdone in this regard. We believe it's too cute and too transparent to appeal to moderate interests).

GC has other attributes as well. Its acceptance will be partially driven by the pre-selling of its identity. "Guest focus" is a common mantra in the restaurant industry./ "Choice" is the positives operative work in many current contexts, e.g, abortion, health care. You immediate access the high road by being associated with "choice."

While one may have to initially ask "who?" or "What?" is associated with AP, GC is easily understoon.

GC has another big advantage over AP. It can be sold to industry operators as being potentiallly broader than smoking. Food and drink issues are continually being toyed with by government. GC therefore becomes easily understood as another "Government Choice vs. Guest Choice" paradigm that taps into existing strongly held beliefs.

...In the end, our observations and analysis have led us to see the AP as a pro-smoking program. GC can be established as a program but more properly positioned as a consumer philosophy. As one operator reflected to me, he could comfortably say, "Proudly known as an establishment that protects "Guest Choice."...

Company
Philip Morris
Author
Berman, Rick (PM Consultant, Guest Choice Network Head)
Recipient
Trach, Barbara (PM Corp. Affairs '90-94; Senior Program Manager, 1995)
Contact person listed on promotional letters for Philip Morris' "Ask First, It's the Law" program. Worked in PM Public Affairs, circa 1990-94, was PM Senior Program Manager, Public Affairs department in 1995.
Region
United States
Named Organization
American Beverage Inst
General Mills
Guest Choice Network (Philip Morris/ TI front group)
Formed by Rick Berman of Berman & Co.
Philip Morris
RJR, R.J.Reynolds
Litigation
Feda/Produced
Named Person
McDaniel, Janice (PM Political Mobilizations Administrator)
120 Park Ave. c. 1993
Xxjean
Type
LETT, LETTER
Subject
Front groups
smoking restriction

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Page 1: ewk06c00
BL•'RMAN AND COMPANY Su YL t 110 607 14Tn brwev. N.W. WnrnINaroN. D.C.2000D-2000 (xex) 347-9800 Paxr (xo2) 347-'32'30 September 5, 1995 Ms. Barbara Trach Senior Program Manager/Public Affairs PHILIP MORRIS U.S.A. 120 Park Avenue New York, NY 10017-5592 Dear Barbara, While you read this fax I should be on my way to New York. I'm sending it ahead so that you and Janice have an opportunity to reflect on my "research^ and some resulting recommendations that were not available when we last spoke. If you're interested in the suggested change in program direction, I suggest it first be tested as a supplement to current activity without loss of momentum in the Accommodation program. Accc®od.atioa ProQram (]18) w8aayshot" While the AP is a good idea to expand protection of smokers rights, it has not me-- your goal of widespread acceptance by the restaurant community. The restaurant business is highly diverse with many niche markets and different customer bases. Obviously, a projected broad-based (or localized) smoking ban presents these operations with vastly different visions of impact. Some of these differing (and low-level) fears of economic impact from a ban are evidenced by operator lack of interest in the AP. Perhaps more tellingly, operators do not see any offset to legislative/regulatory bans from a program that makes smokers comfortable. In any event: objective analysis and research with key industry operators over the last two weeks suggest the following profile of the AP: POSITIVE NEGATIVE Helpful early leadership Perceived as a•tobacco" program •White hat° theme Pro-smoking theme Soft, non-intrusive image Unaggrassive image Sharin.5f informatLon Minimal level of useful information Promote societal acceptance No connection to government smoking bans Ct of smoking . 6m I(,,115_~ N 0 I _~-~- a~r `b d+r~ W ' t po tct ~ b Ga-, aA,~ RroHSn ll. SzXMwx Ouev+ Dw,. ., a4?-ei so zee In Zf__-gV ss/se/se
Page 2: ewk06c00
Ms. Barbara Trach Page Two our analysis and recommendations are based on much more information than is capsulated above. In general, we suggest a new test approach that operates alongside the AP. we believe that if you want to gain more ground quickly for the smokers' rig.ots issue, the program must create a proactive, aggressive mentality by operators regarding government smoking bans. Specifically, we recommend that we establish a restaurant-driven program that connects instantly with restaurant operators. (Additional benefit--if externally perceived as driven by restaurant in:erests, there will be more flexibility and creativity allowed than if it is "owned" by Philip Morris. The American Beverage Institute, which opposes overly aggressive DWI laws, enjoys this profile.) The program would obviously carry a different name which we suggest should be ^Guest Choice" (GC) . While "Accommodation" is perceived to accept smoking, "Guest Choice" defends consumer rights. As one CEO suggested to me, "Accommodation" starts out on its heels. "Guest Choice" starts on its toes." (The RJR program that uses the "Lifestyle Police" to defend consumer rights is overdone in this regard. We believe it's too cute and too transparent to appeal to moderate interests.) GC has other attributes as well. Its acceptance will be partially driven by the pre-selling of its identity. "Guest focus" is a common mantra in the restaurant industry. "Choice" is the positive operative word in many current contexts, e.g., abortion, health care. You immediately access the high road by being associated with "choice." While one may have to initially ask "Who?• or "What?" is associated with the AP, GC is easily understood. GC has another big advantage over the AP. It can be sold to industry operators as being potentially broader than smoking. Food and drink issues are continually being toyed with by government. GC therefore becomes easily understood as another "Government Choice vs Guest Choice" paradigm that taps into existing strongly held beliefs. The information flow that the AP provides through newsletters is good but should be improved on in many ways that are sensitive to the industry. With a better communication tool, the eventual goal of successful grass roots activism can be leveraged much more successfully. N 0 V N ~ a 00 so W N £001n £b; 90 46i40i60
Page 3: ewk06c00
Ms. Barbara Trach Page Three in the end, our observations and analysis have led us to see the AP as a vro-ssokinflr vroaram. GC can be established as a program but more properly positioned as a coasumer philosophy. As one operator reflected to me, he could comfortably say, "Proudly known as an establishment that protects 'Guest Choice'." He was not so inclined on "Accommodation." I recognize all of this as a new tack and not a substitute for a our more in-depth discussion. I'll see you in a few hours and we can discuss all of this as well as your proposal for us to help on the AP if these (admittedly brief) ideas have not resonated with you. RBB/dlb cc: Janice McDaniel "00 £b:80 46i9ei60

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