[Intl-tobacco] Altria breakup demands -- Deadline for signing on: WEDNESDAY, APRIL 19

[robert weissman]

Dear Friends,

As mentioned in a previous email to this list, the breakup of Altria
Group (parent company of Philip Morris International, Philip Morris USA,
and Kraft) is looking increasingly likely sometime in the next couple
years, and perhaps as soon as later this year.

Industry analysts are discussing not just a spin off of Kraft, but a
separation of Kraft, Philip Morris International (PMI) and Philip Morris
USA into three separate companies =96 the value of which may be almost a
third higher than the current value of Altria. Altria itself notes at
the beginning of its latest annual report that "for significant business
reasons, the Board of Directors is looking at a number of restructuring
alternatives, including the possibility of separating Altria Group, Inc.
into two, or potentially three, independent entities." See:
http://www.sec.gov/Archives/edgar/data/764180/000119312506051165/d10k.htm

We fear that such a spin off would have a dramatic impact on PMI,
enabling the company to operate effectively as a stateless corporation =96
with increased free rein to peddle death and disease around the world
and near zero accountability. Given the serious risks a spin off of PMI
poses for public health, we think it would be worthwhile to make some
public demands of Altria/PMI to mitigate the potential damage.

During the past couple months, we have circulated a list of possible
demands to this and other lists for feedback and comment. Below please
find the final version of the demands, based on the input received, and
the initial list of organizations that have signed on. The plan is to
launch a global campaign around these demands at Altria's annual meeting
of shareholders on Thursday, April 27.

While we have limited leverage to push these demands, we figure that, at
very least, we can raise awareness of the threat that an increasingly
=93rogue=94 PMI poses to the world -- and encourage more rapid passage and
implementation of strong tobacco control legislation. We also think an
effective campaign may push the company to agree to at least some of the
demands.

Here's how your organization can support the campaign:

1) SIGN ON! To sign your organization on to the list of Altria breakup
demands, send an email to <awhite@essential.org> (backup address:
<awhite@essentialinformation.org>). Please include your organization's
name and location. Deadline: WEDNESDAY, APRIL 19.

2) ENCOURAGE OTHER GROUPS TO SIGN ON. Please forward this email to other
organizations in your country and/or international networks and
encourage them to sign on.

3) HELP GENERATE MEDIA COVERAGE. If your group is based in a country in
which Philip Morris operates, we encourage you to issue a press release
about the demands on April 27, the day of Altria's 2006 meeting of
shareholders. Better yet, consider organizing a media event on that day,
such as a press conference, a small rally in front of a Philip Morris
building or advertisement, etc. Later this month, we will prepare and
distribute a sample press release that groups can modify for local
purposes. This could be a good opportunity to push for strong tobacco
control legislation in your country.

Best wishes,
Anna White & Robert Weissman

Essential Action
P.O. Box 19405
Washington, DC 20036
Tel: +1-202-387-8030
Fax: +1 202-234-5176
Email: awhite@essential.org (or awhite@essentialinformation.org)
rob@essential.org


*********************************************
GLOBAL DEMANDS OF PHILIP MORRIS INTERNATIONAL
(in preparation for Altria's breakup)
*********************************************

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:

* Tobacco is a uniquely harmful product, which kills consumers when
used as intended;
* The World Health Organization estimates that 10 million people
will die annually from tobacco-related disease by 2030, 70 percent
in developing countries;
* The combined Philip Morris is the world's largest tobacco
multinational;
* Measured by units, 80 percent of Philip Morris' sales are outside
of the United States.

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 and its subsidiaries to commit to:

=B7 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."

=B7 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.

=B7 Not lobby or work -- directly or indirectly through sponsored
organizations or otherwise -- against legislation or regulation
requiring 100 percent smokefree places.

=B7 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.

=B7 Extend the European tobacco smuggling agreement to include every
country in which they operate. **

=B7 Fully disclose all political contributions, lobbying costs, and
charitable/educational donations in every country in which they operate.

=B7 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.

=B7 End all sponsorship of =93youth smoking prevention programs.=94

=B7 Refrain from directly or indirectly placing tobacco products or
promoting depictions of smoking in movies or other media produced
anywhere in the world. ***

INITIAL ORGANIZATION SIGN ONS:

International
* International Union Against Cancer (UICC)
* South East Asia Tobacco Control Alliance

Canada
* Physicians for a Smoke-Free Canada
* PATH Canada

China (Hong Kong)
* Asian Consultancy for Tobacco Control

India
* Action Council Against Tobacco =96 India

Indonesia
* Indonesian Smoking Control Foundation (LM 3)
* Indonesian Medical Students Association
* Smoking Control Task Force - Indonesian Public Health Association

Nigeria
* Nigerian Tobacco Control Alliance
* Environmental Rights Action/Friends of the Earth - Nigeria

Romania
* Aer Pur Romania

Uganda
* The Environmental Action Network

United Kingdom
* Action on Smoking or Health - UK

United States
* Corporate Accountability International
* Essential Action

** 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.