The nation’s leading cigarette manufacturer, Philip Morris USA, boasts the highest revenues, income and market share for more than 20 consecutive years.
Marlboro began as a British company and can trace its history back to the early 1800s when Philip Morris opened as a single British shop on London’s Bond Street selling tobacco and ready-made cigarettes.
It was 1902 when Philip Morris & Company incorporated as a small tobacco company in New York City and by 1924 was advertising Marlboro as a cigarette for women with the catchphrase “Mild as May”. In 1938 Philip Morris & Company offered preferred stock to the public.
The brand was sold until World War II when it was temporarily removed from the market. In 1954 Philip Morris repositioned Marlboro cigarettes as a cigarette brand for men. By the mid 1950s Philip Morris became famous for its billboard advertisements and ads with the introduction of the first of many rugged cowboys they dubbed the Marlboro Man.
While Philip Morris was the smallest among the six major tobacco companies in the US in 1960, it became the largest cigarette company in the country by 1983. In 2003, Philip Morris changed its name to Altria Group, Inc. and by 2008 completed the spin-off of 100 percent of the shares of Philip Morris International to Atria’s shareholders.
Cigarette Brand Portfolio
Marlboro Red Pack; Marlboro Silver Pack; Marlboro Menthol; Marlboro Menthol Smooth 100’s; Marlboro Virginia Blend; Marlboro Medium; Marlboro Ultra Lights; Blend No. 54; Marlboro Mild and various lengths such as King Size or 100s of Marlboro hard and soft pack varieties.
Additional tobacco products include Alpine, Basic, Benson & Hedges, Bristol, Cambridge, Chesterfield, Commander, Dave’s, English Ovals, Lark, L&M, Merit, Parliament, Players, Saratoga and Virginia Slims. Marlboro also manufactures and markets Marlboro Snus, a sit-free, tobacco pouch product designed for adult smokers who are interested in smokeless tobacco alternatives to cigarettes.
The following ingredients found in Marlboro cigarettes are identified in descending order by weight: tobacco, water, sugars, propylene glycol, glycerol, licorice extract, diammonium phosphate, ammonium hydroxide, cocoa and cocoa products, carob bean and extract and natural and artificial flavors.
What’s more, there are other ingredients added to tobacco at levels less than 0.1 percent in Philip Morris USA cigarettes, including the natural and artificial flavors that give each brand its unique characteristics or the brand recipe and ingredients in the non-tobacco components.
* In 2009, Philip Morris USA market share was 41.8 percent
* Marlboro is the No. 1 cigarette brand in every state in the country
* Marlboro is the No. 1 brand for men and women across all adult age groups
* Marlboro’s share was larger than the next 12 cigarette brands combined in 2009
Philip Morris is searching for ways to reduce the health risks of smoking. For example, the company has developed a type of cigarette paper with banded paper technology that helps reduce the ignition strength of cigarettes as measured by certain test methods.
Marlboro, in order to comply with new regulations from the Food and Drug Administration, had until June 22, 2010 to rebrand tobacco products marketed as lights, ultra-lights, medium, mild or any similar brand.
As part of the Family Smoking Prevention and Tobacco Control Act, the FDA will
enforce other restrictions on cigarettes and smokeless tobacco products including eliminating free samples of cigarettes and requirements that new, larger health warning labels for smokeless tobacco products begin to rotate on labels, labeling and advertising. It also prohibits tobacco companies from sponsoring athletic, musical or cultural events.
Philip Morris, in compliance with Federal regulations on the subject of the sales of tobacco products, markets their products to adults who are legally eligible to smoke.
Research & Development
* It is developing new product technologies that may reduce the risk of cigarette smoking.
* It is exploring a number of reduced harm initiatives and monitoring public literature and information.
* The company actively engages with the public health community on topics such as developing potentially reduced-harm tobacco products.
Philip Morris runs contests, sweepstakes and coupons to promote their tobacco products. The company will even send you a gift on your birthday. The Marlboro website is the main source of discount codes and printable coupons. You must be a registered member of the site. To sign up for special offers and promotions, including coupons from Marlboro, go directly to the company at www.Marlboro.com. Marlboro occasionally has direct mail campaigns during which it mails coupons to registered users.
Typical discount coupons from Philip Morris are for four dollars off a carton and/or one dollar off a pack of cigarettes. Promotion codes, which can be used to obtain some extra offers, can be found on some packs of Marlboro cigarettes as well as on other promotional materials.
Marlboro coupons can be found both online and offline. For example, Cigarette.com and Articlesnatch.com/coupons offer coupons for a variety of brands, including Marlboro and also visit www.cigarettes-below-cost.com and www.cigarettecoupons.us and www.cigarettecoupons.org.
Public health authorities have not yet determined that any cigarette is less risky. While it can be difficult to quit, Philip Morris USA offers a free information resource called QuitAssist to help smokers quit. The voluntary effort connects smokers who have decided to quit to expert quitting information from public health authorities and others.
In addition, the company provides five steps to help people quit. Get ready, get support, learn new skills and behaviors, get medication and use it correctly and be prepared for relapses or difficult situations. Marlboro maintains studies have shown these five steps will help individuals quit especially if they are used together.
Philip Morris is a wholly-owned subsidiary of holding company, Altria Group today.
Other Altria Group companies:
* U. S. Smokeless Tobacco Company LLC, founded in 1822, produces smokeless tobacco.
* John Middleton Company, founded in 1856, manufactures cigars and pipe tobacco.
* Ste. Michelle Wine Estates Ltd., founded in 1934, produces classic European varietal wines.
* Philip Morris Capital Corporation, formed in 1982, built a diversified portfolio of assets including leveraged and direct finance lease investments.
Philip Morris Forecasts
In late June, Philip Morris revised its earnings outlook and expects to earn $3.70- $3.80 per share. Analysts, on average, were expecting full-year earnings of $3.77 a share. The higher projection, compared to the April 2010 guidance, reflects an improved business outlook, in particular with regard to Japan, as well as the positive impact of the reversal of certain tax provisions.
US cigarette industry volume declined about 8 percent in 2009, according to Philip Morris. Yet the cigarette industry accounted for an estimated $77 billion in consumer expenditures in 2009 and had an estimated industry profit pool of roughly $9.4 billion.