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Altria Group, Inc. (NYSE: MO) (previously named Philip Morris Companies Inc.), based in New York City, is the parent company of Philip Morris International, Philip Morris USA, John Middleton, Inc. and Philip Morris Capital Corporation, and is one of the world's largest tobacco corporations. In addition, Altria Group, Inc. has a 28.7% economic and voting interest in one of the world's largest brewing companies, UK based SABMiller plc. It is a component of the S&P 500, and was a component of the Dow Jones Industrial Average until February 19, 2008.
On January 27, 2003, Philip Morris Companies Inc. changed its name to Altria Group, Inc. On March 30, 2007, a spin out of Kraft Foods subsidiary (publicly traded since 2001) was concluded through distribution of the remaining stake of shares (88.1%) to Altria shareholders. As a result, Altria no longer holds any interest in Kraft Foods.
Holdings
Altria Group, Inc. owns 100 percent of Philip Morris USA, Philip Morris International, John Middleton, Inc. and Philip Morris Capital Corporation. It also owns 28.7% of SABMiller PLC.
Before the recent restructuring, the net revenue (and operating income) of Altria Group, Inc. came predominantly from its tobacco business, as is shown in the following table. Altria's share of SABMiller's revenue and profits is not included in the table below because its holding is too small to be consolidated in the group accounts. [1]
| Activity |
Net revenue
in 2006
(millions USD) |
Net revenue
in 2006
(%) |
Operating
income
in 2006
(millions USD) |
Operating
income
in 2006
(%) |
| USA tobacco |
18,474 |
18.2% |
4,812 |
26.5% |
| International tobacco |
48,260 |
47.6% |
8,458 |
46.5% |
| North American food |
23,118 |
22.8% |
3,753 |
20.7% |
| International food |
11,238 |
11.1% |
964 |
5.3% |
| Financial services |
317 |
0.3% |
176 |
1.0% |
| Total |
101,407 |
100% |
18,163 |
100% |
Philip Morris component
Altria's tobacco subsidiary, Philip Morris, is the world's largest commercial tobacco company by sales. Their flagship Marlboro is the world's most popular tobacco brand. Other popular tobacco brands owned by Philip Morris are Parliament, Virginia Slims, and Benson & Hedges (licensed in some markets).
Philip Morris was founded by a London tobacconist of the same name. He was one of the first people to sell hand-rolled cigarettes in the 1860s, selling them under the brand names Oxford and Cambridge Blues, following the adoption of cigarette smoking by British soldiers returning from the Crimean War. The company opened its New York office in 1902 and soon became part of James Duke's American Tobacco Company monopoly.
Though Altria's headquarters are still in New York, in 2004 its Philip Morris USA division completed a move of its 682 New York based employees to Richmond, Virginia. Of the 682 offered relocation, only a handful accepted and relocated. Over 500 New York based employees accepted an early retirement or severance package and did not make the move to Richmond.[citation needed]
History
Altria's history at a glance
- 1847: Philip Morris opens a shop in London, selling tobacco and ready-made cigarettes.
- 1881: Philip Morris goes public in London.
- 1887: The company becomes Philip Morris & Co., Ltd.
- 1902: Philip Morris & Co. Ltd. is incorporated in New York.
- 1919: Acquisition of Philip Morris & Co. in the US by a new firm owned by American stockholders and incorporation in Virginia under the name of Philip Morris & Co., Ltd., Inc.
- 1924: Introduction of the Marlboro brand
- 1951: Philip Morris becomes the highly visible sponsor of CBS's "I Love Lucy" TV Show.
- 1954: The first major affiliate outside the USA is created: Philip Morris (Australia) Ltd.
- 1955: Philip Morris & Co. Ltd., Inc. changes its name to Philip Morris Incorporated.
- 1955: Philip Morris Overseas is established as an international division within Philip Morris (to be renamed Philip Morris International in 1967).
- 1963: Philip Morris acquires its first factory in Europe, Switzerland's Fabriques de Tabac Réunies (FTR).
- 1967: Philip Morris reorganizes to create three internal operating divisions within Philip Morris Incorporated: Philip Morris Domestic, Philip Morris International and Philip Morris Industrial.
- 1968: Philip Morris Domestic changes its name to Philip Morris USA.
- 1969: Philip Morris Inc. acquires Miller Brewing Company from W.R. Grace and Company
- 1970: Philip Morris GmbH set up as an affiliate in Germany.
- 1985: Philip Morris Companies, a holding company, becomes the publicly-held parent of Philip Morris Incorporated.
- 1987: Philip Morris International, newly incorporated operating company, acquires the international business division of Philip Morris, Inc.
- 1988: Philip Morris Companies Inc. acquires Kraft Foods.
- 2000: Philip Morris Companies Inc. merges Nabisco, a spin-off from RJR Nabisco, into Kraft Foods.
- 2001: Philip Morris International headquarters are relocated from the USA to Lausanne, Switzerland.
- 2002: Philip Morris Companies Inc. sells Miller Brewing Company to South African Breweries, retaining a 36% share.
- 2003: Philip Morris Companies Inc. changes its name to Altria Group, Inc., the parent company of Kraft Foods, Philip Morris USA, Philip Morris International and Philip Morris Capital Corporation.
- 2007: The company announces the spin-off of Kraft Foods, and will concentrate on its tobacco activity [2]
- 2007: The company announces the plan to phase out production and eliminate all jobs at the Concord, North Carolina plant, ultimately shutting the plant down by 2010.[3]
- 2007: Altria announces the planned spin-off of Philip Morris International
Products
Tobacco
Philip Morris brands:
- Alpine
- Basic
- Benson & Hedges
- Best
- Bond Street (non-US brand)
- Bristol
- Bucks
- Cambridge
- Chesterfield
- Classic
- Collector's Choice
- Commander
- Drina
- English Ovals
- F6
- Lark
- Longbeach
- L&M
- Marlboro
- Merit
- Morava
- Next
- Parliament
- Players
- Saratoga
- Sampoerna (a brand of Indonesian kretek cigarettes)
- Virginia Slims
- West
Corporate governance
Board of directors
Current members of the board of directors of Altria Group are:
Executive staff
- Louis C. Camilleri, Chairman and Chief Executive Officer, Altria Group, Inc.
- André Calantzopoulos, President and Chief Executive Officer, Philip Morris International Inc.
- Michael E. Szymanczyk, Chairman and Chief Executive Officer, Philip Morris USA Inc
- John J. Mulligan, President and Chief Executive Officer, Philip Morris Capital Corporation.
Political influence
According to the Center for Public Integrity, Altria spent around $101 million on lobbying the United States government between 1998 and 2004, making it the second most active organization in the nation. [4] [5]
Altria contributes to the furthering of opinions critical of the impact of global warming and climate change, through the funding of astroturf organizations such as The Advancement of Sound Science Coalition. [6]
See also
External links
References
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