sarah riggins altria group inc

Sarah RigginsNovember 5th, 2012

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1854- Philip Morris Esq., makes his first cigarette in London.

1870- 22 New Bond St., London Headquarters begins to produce Philip Morris’ Cambridge and Oxford Blues products.

1873- 13 Bond St. Richard Benson and William Hedges opens shop- their first main competitor.

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1887- Company becomes Philip Morris & Co., Ltd.

1899- Benson and Hedges opens branch in New York.

1902- Philip Morris Co., Ltd. Is incorporated in New York.

1920- First Philip Morris Annual Report is published.

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1924-Unfiltered Marlboro and Stephano cigarettes are introduced.

1926- A series of Marlboro ads showing feminine hand promotes that cigarette for women.

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1928- Philip Morris begins to make regular dividend payments.

April 17th, 1933- “Little Johnny” is introduced on NBC’s radio station for the first time.

1933- Philip Morris makes the manufacturing centered in Richmond, VA.

1938- First offering of Philip Morris preferred stock is placed on market.

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1954- Benson and Hedges Merges with Philip Morris. ◦ Marlboro is repackaged and test-marketed as a

full flavored man’s cigarette. 1964- Surgeon General’s Report on smoking

and health is issued. January 1966- Federal Cigarette Labeling

Act goes into effect.

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January 2nd, 1971- Cigarette TV and radio advertising ban goes into effect.

January 1972- Cigarette manufacturers are required to include health risks on all advertising, direct mail, and point-of-sale material.

1985- Philip Morris is incorporated, becomes a publicly-held holding company and parent of Philip Morris Inc. and acquires General Foods.

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1988- Philip Morris acquires Kraft. 1989- Kraft and General Foods combine to

form Kraft General Foods. 2003- Philip Morris changes its name to

Altria Group, Inc. 2007- Altria Group, Inc. spins off Kraft to

shareholders and acquires John Middleton. 2008- Altria relocates its headquarters to

Richmond, Va. and spins off Philip Morris International.

2009- Altria acquires U.S.T. Inc.

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Altria Group, Inc. competes within the alcohol and tobacco industry.

Main competitors are Reynolds American, Lorillard and Swisher International.

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Marlboro: #1 cigarette brand in the country and also in every state.

Basic Parliament L&M Virginia Slims

Copenhagen Skoal Red Seal

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Black & Mild Prince Albert Carter Hall Middleton’s Kentucky Club

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Chateau Ste. Michelle Columbia Crest Northstar Stag’s Leap Wine Cellars

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Altria Group Distribution Company’s role is to provide sales, distribution, and consumer engagement services for Altria’s tobacco operating companies. ◦ AGDC Customer and Marketing Services designs and creates

trade marketing and consumer engagement programs to grow Altria’s tobacco companies businesses.

◦ AGDC Field Sales sells and executes trade programs to grow Altria’s tobacco companies businesses and their customers’ businesses.

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“Our mission is to own and develop financially disciplined businesses that are leaders in

responsibly providing adult tobacco and wine consumers

with superior branded products.”

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Invest in Leadership Align with Society Satisfy Adult Consumers Create Substantial Value for Shareholders

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Integrity, Trust and Respect Passion to Succeed Executing with Quality Driving Creativity Into Everything We Do Sharing with Others

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This year, FORTUNE magazine ranked Altria 4th among all companies and 1st in the tobacco industry in social responsibility.

Altria Companies Employee Community Fund has awarded over 1,300 grants totaling over $35 million to community organizations.

Altria’s employee’s actively participate with building homes for Habitat for Humanity and battered women.

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Altria is involved in the “Keeping America Beautiful” act since 2002 by designing the “Nationwide Cigarette Litter Prevention” program.

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Ticker Symbol: MO Current Stock Price as of Friday, November

2nd: $31.70 Current dividend: $1.76 per share (5.6%

yield) Chart: 10 year period of stock prices:

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Annual Sales Figures: $23.8 billion as of December 2011.◦ This is a decrease of 2.3% from 2010

Growth: Altria’s adjusted diluted earnings per share increased by 7.9% from 2010

Developments: ◦ 2011 Altria total shareholder return was 26.9%◦ Repurchased $1.3 billion dollars of stock◦ Increased dividends by 7.9%

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Strengths:• Management’s Decision Making• Top Premium Brands• Steady Dividends• Consistent Growth• Cash Rich

Weaknesses:• Negative perception• High Taxes due to government regulations

Opportunities:• Alternative uses for tobacco• Cost efficiency

Threats:• Lawsuits/Litigation• FDA Regulations• Economic Pressure• Generic Brands• Increase of tobacco alternatives

I feel that within Altria, the premium brands will continue to be maintained and also remain profitable.

The company will continue to purchase companies with growing premium brands.

They will continue to cooperate with government regulatory agencies and society’s expectations.

Also, they will continue to provide excellent shareholder returns.

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Eddie Riggins, Regional Sales Manager for Altria Group Distribution Company

Altria Group Inc. 2011 Annual Report http://www.sourcewatch.org/index.php?

title=History_of_Philip_Morris http://www.altria.com/en/cms/home/

default.aspx http://www.bellhop.org/callforphillip.mp3

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