[Intl-tobacco] Philippines/Asia: Marlboro Man heads out East for greener pastures

[Robert Weissman]

 Marlboro Man heads out East for greener pastures - Business Report/AFP

 Monday, May 12, 2003

 By AFP

 Tanauan, Philippines - Burnt by multibillion-dollar US lawsuits and
hounded by a burgeoning western anti-smoking lobby, an
 older, wiser Marlboro Man was hoping for an easier ride through the
greener pastures in the East.

 Philip Morris, the owner of the smoking cowboy that is one of the most
recognisable icons and cigarette brand names in
 American popular culture, accepts that children and cigarettes do not
mix, and that adults should be warned of the health hazards
 of their lifestyle choice.

 "Is it possible to be in the tobacco business and still be a
responsible corporate citizen? We certainly believe so," said Andre
 Calantzopoulos, the president and chief executive of Philip Morris International.

 The global tobacco operations boss opened a $300 million factory in
this Philippine city last week, two months after an Illinois
 court ordered Philip Morris USA to pay $10.1 billion in damages for
misleading smokers for 30 years about the dangers of
 "light" cigarettes.

 That came on top of a 1998 settlement by Philip Morris and other
manufacturers to pay $246 billion over 25 years to help US
 state governments care for sick smokers.

 "We're working to communicate openly about tobacco products, including
clear messages about their serious health effects. It is a
 fundamental obligation," Calantzopoulos said.

 "Our position on smoking is consistent and firm: Children should not
smoke and should be kept away from cigarettes. We also
 believe that tobacco regulation is necessary."

 An intensified global effort against tobacco products, blamed for
diseases the World Health Organisation (WHO) says kills 4.9
 million people every year, is looming as member states meet in Geneva
on May 19 to consider the final text of the world's first
 treaty against tobacco.

 It would commit countries to "undertake a comprehensive ban of all
tobacco advertising, promotion and sponsorship", provided
 such a ban is allowed by their constitutions. It would come into effect
if at least 40 countries ratify it.

 Asia is key to the future of the tobacco business of Philip Morris,
which claims a global market share of more than 14 percent.

 China, Indonesia and Japan are three of the world's five biggest
tobacco consumers - the US and Russia are the other two.

 The WHO predicts that the increase in the 10 years to 2008 will mostly
be accounted for by women and the developing world.

 The modern, air-conditioned Philippines tobacco processing and
cigarette manufacturing plant in Tanauan near Manila will serve
 as the company's southeast Asian hub, rolling out an annual 40 billion
cigarette sticks of a global output estimated by the WHO to
 be at 5.5 trillion sticks.

 The Philippines has a centuries-old tobacco farming industry, a
government keen on drawing foreign investment and a rapidly
 growing population of 80 million - 45 percent of which is 19 years old
or younger.

 There are no restrictions on tobacco sales and advertising.

 "Smoking for adults is like going to the movies, which is not
prohibited by moral and other standards," said vice-president
 Teofisto Guingona.

 "Life is affected by tobacco, but as long as it is a scientific
product, as long as it helps build the economy, mailto:[Manila
 welcomes itmailto:]," he told employees at the factory launch.

 Philip Morris, which also built a school for the locals, is now one of
Tanauan's biggest investors and employers.

 Guingona said excise taxes from tobacco of about 18 billion pesos
(R2.47 billion) help shore up Manila's narrow tax base.

 He said Manila was looking to Philip Morris to help boost domestic leaf
production, which slid to 68 200 tons, worth 2.6 billion
 pesos in 2001 - a meagre 1.74kg per hectare. - AFP

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