Philip Morris
Remarks by Michael A. Miles Chairman and Ceo Philip Morris Companies Inc. Union League Club Public Affairs Forum New York City Thursday, 920625
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Related Documents: - Date Loaded
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includes latest MAM edits. 6/25/92. jgr
Remarks by Michael A. Miles
Chairman and CEO
Philip Morris Companies Inc.
Union League Club
Public Affairs Forum
New York City
Thursday, June 25, 1992
1. 1
REMARKS BY MICHAEL A. MILES
CHAIRMAN AND CEO
PHILIP MORRIS COMPANIES INC.
Union League Club
Public Affairs Forum
New York City
June 25, 1992
Thank you. It's a pleasure to be here.
When I was invited to speak to you, I asked
what you might like to hear me talk about. I
was told that I could talk about anything I
wanted to, as long as I said something
i nteresti ng .
This reminded me of an occasion back
in the 1960's, where the ultra-liberal
comedian Mort Sahl was introduced by a
master of ceremonies who said, "Come on
out, Mort, and say something really funnX."
2. 2.
This kind of introduction is, of course, a
comedian's kiss of death, but Sahl was up
to the occasion. He came out, looked at the
MC, looked at the audience, and said "John
Foster Dulles." This brought down the
house.
Well, I've been called on to say
something interesting, and while it's
probably not house-bringing-down material,
I hope some of it will be interesting to you.
There are two subjects I'd like to touch
on today. First, I'd like to provide you with a
brief overview of Philip Morris, including a
look at the company's growth, present
position and strategies for success in the
f utu re.
3. 3.
Second, I'd like to take a few minutes to
talk about "science fiction," and its impact
on businesses in general and our business
in particular.
Let me begin by touching on some of the
highlights that led to Philip Morris's present
position as what is probably the world's
largest consumer packaaed goods
company.
The company's modern history dates
from 1918 when a group of American
businessmen acquired the U.S. Philip
Morris Company and incorporated it in
Virginia.
In the late 1920's, Philip Morris
introduced a new cigarette whose
packaging and advertising were designed to
appeal to women.
The brand had modest sales in what
was then a very small segment of the
market, and it was called "Marlboro."
Fast forward now to 1954, when
Marlboro was repositioned with a new,
rugged, masculine image, and was
introduced nationally in the flip-top box with
the red roof design. One particularly
popular ad in the "filter/flavor/flip top box"
campaign featured a weather-beaten
cowboy.
5. 5
In 1962, the familiar, if not to say
classic, "Marlboro Country" ad campaign
was launched. On TV and radio, the
campaign featured the stirring theme music
from the mega-hit film, "The Magnificent
Seven," and nothing has been the same
since.
Today, Marlboro is the world's leading
branded, consumer packaged good, having
passed Coca-Cola for that honor in 1986,
and Philip Morris's combined tobacco
operations make it the world's largest
international cigarette company.
Our other leading domestic cigarette
brands include Virginia Slims, Merit,
Benson & Hedges and Parliament, and in
international markets we sell Chesterfield,
Lark, and L&M as well. Worldwide, our
cigarette production now exceeds 1.75
billion units per day.
In addition, through a carefully
orchestrated program of strategic
acquisitions -- including Miller Brewing in
1970, General Foods in 1985, Kraft Foods
in 1989, and the Swiss coffee and
confectionery company Jacobs Suchard in
1990 -- Philip Morris has also become the
world's second largest food company, and
the world's third largest beer company.
7. 7.
Last year, our combined operating
revenues totaled slightly more than 56
billion dollars. About 58 percent of those
revenues come from our food and beer
operations, while 42 percent come from
tobacco.
And, because Philip Morris was one of
the first U.S. package goods companies to
recognize and capitalize on the international
opportunities for our kinds of products, we
can today lay a legitimate claim to being a
truly global corporation.
_ We now have more than 166,000
employees working in 1,100 facilities in 160
countries around the world.
8. 8.
Last year our overseas businesses
accou nted fo r 36 pe rce nt of total P M
Companies revenues, up from 28 percent
five years ago.
At 20 billion dollars, these international
revenues were greater than the combined
overseas revenues of Coca-Cola, PepsiCo
and CPC International, three major
consumer packaged goods companies
known for their large international
operations.
Looking to the future, our objective -- not
surprisingly, perhaps -- is to continue to
build on the company's success, to ensure
that our shareholders, employees, and the
communities in which we do business,
continue to benefit.
9. 9.
In that context, let me try to give you
some sense of the futu re of ou r busi ness by
highlighting the five major strategies we are
following to continue the company's
successfu l reco rd .
Ou r fi rst strategy is to protect and bu i ld
our brand franchises. We are blessed with
some of the world's most recognizable and
most popular brands.
That's partly because, even back when
it was primarily a tobacco company, Philip
Morris recognized the importance of strong
brand names.
Out of that recognition came Marlboro --
which, as I said earlier, may be today the
strongest global brand name in existence in o
N
any consumer product category. AA
~
~
9. 9.
