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List of Organizations Signed On |
February 1, 2007 Louis Camilleri Dear Mr. Camilleri: Yesterday, your company
announced that it will spin off Kraft Foods Inc on March 30, 2007. Many
analysts are predicting that Philip Morris International and Philip Morris
USA will separate soon after, possibly later this year. A related article
reports your view that "[Philip Morris's] numerous and greatest opportunities
[are] in developing economies such as China and India, where western cigarette
makers have yet to make significant inroads." "Less than 5
per cent of Philip Morris International's income today comes from markets
that represent more than 60 per cent of world consumption of cigarettes,"
you are quoted as saying. "Last year our share of the world market
was only 15.5 per cent so that gives you a sense of what we believe is
our growth potential across the world." Such statements imply
that Philip Morris International plans to more aggressively target these
international markets, something that groups around the world fear will
exacerbate the already devastating global epidemic of death and disease
caused by tobacco products. In light of these
concerns, last year, over 100 groups in 50 countries urged Philip Morris
International to make commitments - in advance of a breakup - to ensure
that the separation of Philip Morris International and Philip Morris USA
does not worsen the tobacco epidemic. Specifically, they called on Philip
Morris to refrain from: tobacco advertising and misleading descriptors
like "light and mild"; lobbying on the Framework Convention
on Tobacco Control and against 100% smokefree places; invoking trade agreements
to challenge tobacco control legislation; policies that encourage, facilitate,
or enable tobacco smuggling; secrecy about advertising expenditures, political
contributions, and lobbying costs; sponsoring youth prevention programs;
and smoking and product placement in movies and other media. Please find
attached the full text of the demands and a list of groups that have endorsed
them. At the 2006 Altria
shareholders meeting on April 27, 2006, a youth advocate from Wisconsin
addressed you on behalf of these 100 groups, listed the demands, and asked
if you would agree to them. You responded by saying you "won't agree
to all of these demands." With the Kraft spin off imminent and the separation of Philip Morris International in the foreseeable future, we would like to give you an opportunity to reconsider your answer and provide a more formal response to the nine demands that over 100 groups worldwide have endorsed. We would appreciate your response by February 23, 2007. Sincerely, Anna White GLOBAL
DEMANDS TO ADDRESS The prospect of a breakup of Altria that would split Philip Morris USA and Philip Morris International into separate companies raises significant concerns about how an independent Philip Morris International will operate. Decisions that Philip Morris International makes will have major public health ramifications:
Philip Morris International
must make commitments -- in advance of a breakup -- to ensure that the
separation of Philip Morris International and Philip Morris USA does not
worsen the tobacco epidemic. We call on Philip
Morris International 1) Adhere to the provisions
of the Framework Convention on Tobacco Control, including by ending all
advertising and marketing of tobacco products, and ending the use of misleading
and deceptive terms such as "mild," "light" and "low."
2) Not lobby or work
-- directly or indirectly through sponsored organizations or otherwise
-- on any national or subnational legislative or regulatory proposals
to ratify the FCTC and/or implement the terms of the FCTC. 3) Not lobby or work
-- directly or indirectly through sponsored organizations or otherwise
-- against legislation or regulation requiring 100 percent smokefree places.
4) Not invoke provisions
of any trade or investment agreement, or urge any government to invoke
such provisions, to challenge any tobacco control-related law or regulation. 5) Extend the European
tobacco smuggling agreement to include every country in which they operate.
** 6) Fully disclose
all political contributions, lobbying costs, and charitable/educational
donations in every country in which they operate. 7) Fully disclose
all advertising and marketing expenditures -- as the company now is required
to do in the United States -- in every country in which they operate.
8) End all sponsorship
of "youth smoking prevention programs." 9) Refrain from directly or indirectly placing tobacco products or promoting depictions of smoking in movies or other media produced anywhere in the world. *** ** This should be achieved by enacting tracking, tracing, labeling and record-keeping requirements to help law enforcement determine the source and track the path of contraband cigarettes; implementing better monitoring of its sales and distribution practices, including by tightly controlling and regulating the contractors it supplies with cigarettes, and to stop supplying them if they are found to be complicit in smuggling and vendors to ensure they are in compliance with legal requirements; and pledging not to oppose legislation establishing monetary penalties against tobacco companies if their cigarettes continue to be smuggled in large quantities. *** Philip Morris USA is prohibited from paying for product placements in movies and other media by the U.S. Master Settlement Agreement, but this does not apply to Philip Morris International. Philip Morris International states in its marketing code that it will not pay for product placement, but it does not address: indirect efforts to facilitate product placement; direct or indirect placement of unbranded tobacco products; or direct or indirect efforts to promote smoking in movies or other media. ORGANIZATIONS SIGNED
ON TO THESE DEMANDS: International Algeria Australia Barbados Benin Burkino Faso Cambodia Cameroon Canada Chad Chile China (Hong Kong) Colombia Congo Cote d'Ivoire France Gabon Georgia Ghana Honduras India Indonesia Jordan Kenya Kyrgyzstan Malaysia Mauritius Mexico Nepal New Zealand Niger Nigeria Pakistan Romania Senegal Serbia Sri Lanka Switzerland
Taiwan Tanzania Togo Thailand Uganda Ukraine United Kingdom United States Uruguay Vietnam Zimbabwe |
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