S&P 500 Component
|Traded as||NYSE: MO|
|Founder(s)||Philip Morris, Kraft Foods , Nabisco Holdings Corporation|
|Headquarters||Henrico County, VA, US|
|Key people||Martin Barrington
(Chairman) & (CEO)
|Products||Tobacco & Wine|
|Revenue||US$ 23.8 Billion (2011)|
|Operating income||US$ 6.06 Billion (2011)|
|Net income||US$ 3.39 Billion (2011)|
|Total assets||US$ 36.9 Billion (2011)|
|Total equity||US$ 3.71 Billion (2011)|
Altria Group, Inc. (previously named Philip Morris Companies Inc.) is an American multinational corporation based in Henrico County, Virginia, United States of America; it is the parent company of Philip Morris USA, John Middleton, Inc., U.S. Smokeless Tobacco Company, Inc., Philip Morris Capital Corporation, and Chateau Ste. Michelle Wine Estates. It is one of the world's largest tobacco corporations. Philip Morris International was spun off in 2008. In addition, Altria Group, Inc. has a 28.7% economic and voting interest in one of the world's largest brewing companies, UK based SABMiller plc, where it has 3 seats on the 11-person board of directors. It is a component of the S&P 500 and was a component of the Dow Jones Industrial Average until February 19, 2008. The company has its headquarters in an unincorporated area within Henrico County, less than five miles west of the city limits of Richmond and less than ten miles from its downtown Richmond buildings.
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 smokeless tobacco manufacturer; UST owned Ste Michelle Wine Estates, a wine company.
|This section requires expansion. (December 2009)|
Altria emerged from Philip Morris. The onset of "rebranding" of Philip Morris Companies to Altria took place in 2003 (Philip Morris would later split, with PM USA remaining Altria's primary and only consistently held asset). Altria was created because Philip Morris wished to emphasize that its business portfolio had come to consist of more than Philip Morris USA and Philip Morris International; at the time, it owned an 84% stake in Kraft, although that business has since been spun off. The name "Altria" is claimed to come from the Latin word for "high" and was part of a trend of companies rebranding to names that previously did not exist, Accenture and Verizon being notable examples, though linguist Steven Pinker suggests that in fact the name is an "egregious example" of phonesthesia - with the company attempting to "switch its image from bad people who sell addictive carcinogens to a place or state marked by altruism and other lofty values". The rebranding took place amidst social, legal and financially troubled circumstances.[vague] In 2003 Altria was ranked Fortune number 11, and has steadily declined since. In 2010 Altria Group (MO) ranked at Fortune number 137, whereas its former asset, Philip Morris International was ranked 94th.
In 2007, Altria began selling all its shares of Philip Morris International to Altria stockholders. The company also began a move to purchase cigar manufacturer John Middleton Co. from Bradford Holdings, Inc., which went into effect in 2008. After Philip Morris International spun off, the foreign Philip Morris companies halted the purchase of tobacco from America, which was a major factor associated with the closing of a newly renovated plant in North Carolina, approximately 50% reduction in manufacturing, large-scale layoffs and induced early retirements.
In 2008, Altria officially moved its headquarters to Richmond. With a few exceptions, all blue collar, white collar, and executive employees had long been based at one of several Philip Morris buildings in Richmond and the greater Richmond area. The move of white collar operations to Richmond had taken place after Philip Morris sold its downtown offices in New York City a decade earlier. Aside from the Philip Morris/Altria headquarters, some of their other buildings included the Philip Morris Center for Research and Technology in downtown Richmond, the Manufacturing Center in South Richmond, and the adjacent Operations Center which began shutting down in 2007-2008, as a result of the loss of demand from PMI member companies. The layoffs beginning in 2007 affected thousands of Altria, Altria Client Services, Philip Morris USA, and contracted employees in Richmond and North Carolina.
In 2009, Altria finalized its purchase of UST Inc., whose products included smokeless tobacco (made by U.S. Smokeless Tobacco Company) and wine (made by Ste. Michelle Wine Estates). This ended a short era of competition between the new Marlboro smokeless tobacco products such as snus, and those produced by UST Inc.
Before the recent restructuring, the net revenue (and operating income) of Altria Group, Inc. came predominantly from its tobacco business, as is shown in the following table. Altria's share of SABMiller's revenue and profits is not included in the table below because its holding are too small to be consolidated in the group accounts.
|North American food||23,118||22.8%||3,753||20.7%|
|This article is outdated. (September 2013)|
The corporation's brands include:
- Benson & Hedges (American Version)
- Black & Mild
- Bond Street
- English Ovals
- Sampoerna (a brand of Indonesian kreteks)
- Virginia Slims
Board of directors
- Elizabeth E. Bailey (1989- ), Professor Emerita, The Wharton School, University of Pennsylvania
- Gerald L. Baliles (2008- ), Director, Miller Center of Public Affairs at University of Virginia; former Virginia governor
- Martin J. Barrington - Chairman and Chief Executive Officer, Altria Group, Inc.
- John T. Casteen III (2010- ), President Emeritus, University of Virginia
- Dinyar S. Devitre (2008- ), Special Advisor, General Atlantic Partners, Greenwich, CT; former SVP and CFO of Altria
- Thomas F. Farrell II (2008- ), Chairman, President and CEO, Dominion Resources, Richmond, VA
- Thomas W. Jones (2002- ), Senior Partner, TWJ Capital LLC, Stamford, CT; formerly with Citigroup, Travelers and TIAA-CREF
- Debra J. Kelly-Ennis (2013- ), former president and CEO of Diageo Canada, Inc.; also formerly with RJR Nabisco, Inc., Coca-Cola, General Motors and Grand Metropolitan
- W. Leo Kiely III (2011- ), retired CEO, MillerCoors LLC, Golden, CO; formerly with Frito-Lay
- Kathryn B. McQuade (2012- ), retired EVP and CFO, Canadian Pacific Railway Limited; formerly with Norfolk Southern Corporation
- George Muñoz (2004- ), Principal, Muñoz Investment Banking Group, LLC, Washington, DC; Partner, Tobin & Muñoz, Chicago, IL; formerly Overseas Private Investment Corporation and Assistant Secretary of the United States Treasury Department
- Nabil Y. Sakkab (2008- ), retired SVP, Corporate Research and Development, Procter & Gamble, Cincinnati, OH
Prior to being based in Virginia, Philip Morris had its headquarters in Midtown Manhattan, New York City. In 2003 Philip Morris announced that it would move its headquarters to Virginia. The company said that it planned to keep around 750 employees in its former headquarters. Brendan McCormick, a spokesperson for Philip Morris, said that the company estimated that the move would save the company over $60 million each year. The company now has its head offices in an unincorporated area of Henrico County, Virginia, in Richmond. In addition, the company has a 450,000-square-foot, $350 million Center for Research and Technology located in downtown Richmond at the Virginia BioTechnology Research Park that employs approximately 600 scientists, engineers and support staff.
According to the Center for Public Integrity, Altria spent around $101 million on lobbying the United States government between 1998 and 2004, making it the second most active organization in the nation.
American Legislative Exchange Council
- Altria Group (MO) annual SEC income statement filing via Wikinvest
- Altria Group (MO) annual SEC balance sheet filing via Wikinvest
- Philip Morris completes its rebranding to Altria Group - Brand Republic News - Brand Republic
- Coca-Cola vs. Altria: Altria
- "Altria Director Discusses Rebranding Company, CNNfn". Finance Wire. November 11, 2003.
- Pinker, Steven (2007). "The Stuff of Thought". Penguin Books. p. 304.
- US TOBACCO giant Philip Morris changed the name of its parent company to Altria last week but the rebranding failed to hide the weak state of its business.
- "Fortune 500 2010: Top 1000 American Companies - Altria Group - MO - FORTUNE on CNNMoney.com". Money.cnn.com. Retrieved 2011-03-16.
- Walker, Dionne (2007-06-26). "Altria closing North Carolina plant". Usatoday.Com. Retrieved 2011-03-16.
- "Our History - Altria: 2001-Present". altria.com. Archived from the original on 2 September 2010. Retrieved 2010-09-16.
- US Securities and Exchange Commission, Altria Group, Inc. Annual report 2006
- "Board of Directors", Altria webpage; with associated bio pages. Retrieved 2013-02-26.
- "Contact Us." Philip Morris Companies. April 9, 2001. Retrieved on October 19, 2009.
- "Philip Morris to Move Headquarters from New York City to Richmond, Va.." New York Daily News. March 5, 2003. Retrieved on October 19, 2009.
- "Contact Us." Altria. Retrieved on October 19, 2009.
- The Center for Public Integrity: Altria Group, Inc.
- The Center for Public Integrity: Top 100 Companies and Organizations
- Monbiot, George (September 19, 2006). "George Monbiot on climate change and Big Tobacco". The Guardian (London).