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ef TOBACCO STRATEGY REVIEW TEAM
BRUARY 26TH 1992
PHILIP MOMS
Financial Tobacco Operating Profits up by 16% to
$6.5bns for 1991.
-A, Us domestic share up to 43.3% and profits
ahead by 14%
to $4.8bn. International volume up by 13 % and
profits
ahead by 245P. to $1.7bn.
A E. Europe Acquisition of EGRI in Hungary
together with Austrian
Monopol
y.
Export orders for Russia in 1992 of I I bns
minimum
Continued search for further acquisition and
export
opportunities.
Public Affairs Pack health warnings to be
voluntarily added to all Philip
Morris brands globally, the wording being that
currently
used in the USA.
Italy The suspension of Marlboro, Muratti and
Merit by Monital
for one month which has resulted in rapid legal
action by
Philip Morris both in the European Court and with
the
Commission.
Spain Philip Morris held a meeting with the Board
of Tabacalera
in New York recently. They currently have a small
shareholding only.
US Exports Volume ahead by 9.5% in 1991. Exports
now at 107 bn
compared with less than 50bn five years ago.
Progress International progress in 1991 came
primarily from share
growth in Europe, exports to E. Europe and Russia,
the
Middle East, Japan and Argentina.
REYNOLDS
Financial Results for 1991 continued to be
dominated by the KKR
debt alrhou-h net interest expenses fell to $2.1
billion fTom
$3.0 billion in 1990.
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BATCo document for Province of British Columbia 25
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Tobacco contributed $2.7 billion in 1991, showing
no
growth from the previous year following volumes
lpssii~
and higher marketing expenses in the US market.
Expansion Plans for a Polish factory and a Turkish
factory have
recently been announced.
USA Camel Wides will be launched on March lst 1992
by RJR
with an 80mm length but enhanced circumference.
This
'Magnum' product concept is not new but is the
first time it
has been applied in the US. Product
differentiation remains
a key strategy for RJR in this market.
Winston Medium Launched in Hong Kong to pre-empt
any launch of
Marlboro Medium. It is too early to assess
progress.
REMBRAINDT
Financial Pre tax profit for the six months to
September rose by 10%
to L266m while tobacco operating profit grew by 8%
to
L180m on a static sales volume.
Operational The European re-organisation continues
with the
appointment of Mr. P. Kaiser of Turmac as Head of
Rothmans International Europe and the
restructuring of
Brinkmann within this, including a name change to
Rothmans.
The recently acquired Niemeyer business will be
merged
with their German RYO interests and the planned
closure
of the Dutch plant, although without redundancies.
Marketing Johan Rupert has started a value/price
war in some
European markets :
Rothmans Royals at L2 per 25 in the UK
A planned low price brand launch in Germany
Application for a new low price brand in France.
The redesign of the Dunhill range continues with
the launch
of Dunhill Ultimate Lights in the now familiar
bevilled
edge pack.
P. M. Bingham
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BATCo document for Province of British Columbia 25
October 1999