Mitt Romney's Bain Helped Philip Morris Get U.S. High Schoolers Hooked On Cigarettes

[onehandle]

Source: Huffington Post



WASHINGTON -- When Mitt Romney served as CEO of Bain & Co., his consulting firm helped tobacco giant Philip Morris develop a groundbreaking sales strategy that researchers say has been linked to an unprecedented spike in youth smoking.

On Friday April 2, 1993, Philip Morris stunned Wall Street and tobacco experts by the slashing price on its flagship Marlboro brand by 40 cents a pack, to $1.80. It was a landmark day for the tobacco industry, one that became known as "Marlboro Friday" to public health experts.

The radical move was deemed by top Philip Morris executives as necessary based in part on more than two years of Bain research. Marlboro sales were slumping amid pressure from an expanding discount cigarette market, and the prospect of higher cigarette taxes had the company concerned about long-term profitability.

Investors initially pummeled Philip Morris for the price cut, chopping more than 20 percent from the company's stock price in a day. But within weeks, a cigarette price war was raging, with R.J. Reynolds slashing the price of Camels to compete with the cheaper Marlboro varieties. A year later, Philip Morris stock had fully recovered, and continued to make steady gains over the coming four years. Marlboro Friday ultimately proved to be the tobacco industry's most successful effort to increase domestic profit in the face of heavier regulations.

Read more: http://www.huffingtonpost.com/2012/10/16/mitt-romney-bain-philip-morris_n_1968152.html

---

This is in GD, but I think it needs the LBN spotlight.

[global1]

1. A Year Later Philip Morris Stock Fully Recovered - Which Again Points To Rmoney's .......

business acumen and his ability to turn a profit. He is a master businessman. (sarcasm) That's how this will be spun.

No mention of all the lung cancer that was caused by this move and all the people that wound up costing the health care system more money. Also no mention of the young kids that got hooked on this deadly habit. Way to go Mitt!!!!!!!

[Galraedia]

6. Yeah, but are those the kind of values people want in a president?

Wall Street Willard is all about PROFIT, even at the expense of American workers. He still to this day is profiting off of Bain shipping jobs over to China.

[beac]

2. More proof that Mitt Romney is bad for your health. n/t

[heaven05]

3. So?!!!!!!!

with all this clown has done to tear down this country and to STILL have a chance to steal this election, shows the inherent weakness of the electorate and the election system in our democracy. very small 'd'. Derisive laughs from this corner. Yeah I'm going to vote, but really does it matter? If the fascist corporatist gods deem it, no amount of votes will keep SCOTUS from giving another election away. A rovian checkmate!

[valerief]

4. That's because he *cares* about people.

[sofa king]

5. Evil.

There it is. I said it. Now, what's the evil guy going to do when he's only a wheelbarrow full of money and a handful of bullets away from the White House?

[SDjack]

7. Rmoney = family values

[Berlum]

8. What scuzzy values the Republicans have

[Kolesar]

11. ^Honey Boo Boo's grandpa in 1970 ... eom

[Berlum]

12. "Spray tan's like poop in a can." - Honey Boo Boo (R)

[wordpix]

9. I'm sure he was in on getting young people hooked in other countries, too

that's another way the cigarette stocks recovered quickly

[onehandle]

10. Yep. Romney/Bain personally tripled the smoking rate in Russia.

http://www.democraticunderground.com/1014260519

[elleng]

13. also,

In 1954, Philip Morris began advertising Marlboros specifically to men. The cigarettes had "new cork-tip filters housed in a flip-top box with a red roof design."[3]

In 1970, Philip Morris made the first of several acquisitions with the purchase of Miller Brewing Company. In 1985, Philip Morris Cos. became a holding company and the parent of Philip Morris Inc. and bought General Foods. The acquisition of Kraft Foods came in 1988, after which Kraft and General Foods became Kraft General Foods.[3]

In 2002, Miller Brewing and South African Breweries became SABMiller, the second-largest maker of beer in the world, though Philip Morris kept an interest in the merged company. In 2003, Philip Morris Cos. changed its name to Altria Group Inc.[4]

In the fall of 2003, Philip Morris USA moved its headquarters from New York City to Richmond, Virginia. Philip Morris USA split from Philip Morris International in 2004. This has caused a drop in the needed cigarette production due to no need for export product. Philip Morris shut down its Concord, North Carolina manufacturing facility in 2008 and moved all domestic production to Richmond.

http://en.wikipedia.org/wiki/Philip_Morris_USA

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. On March 28, 2008, a similar spin out of Philip Morris International was completed with 100% of shares being distributed to Altria shareholders.

On January 6, 2009, Altria Group, Inc. completed the acquisition of UST Inc., a moist smokeless tobacco manufacturer; UST owned Ste Michelle Wine Estates, a wine company.

http://en.wikipedia.org/wiki/Altria

[tartan2]

14. Mitt Romney's Bain Capitol also

assisted MONSANTO become the successful disgusting company that it is. GMO folks GMO!!!!!!!!!!!!!!!

[We People]

15. So when people of the 47% get cancer, whether from tobacco or from ingesting GMOs,

Obamacare and Medicare, as we know it, won't be there for them*



*that is, if Romney & the GOP get their way

[drm604]

16. Isn't smoking against his religion?