Philip Morris Seeks to Change Name;Critics Claim Move Is a Smokescreen
By GORDON FAIRCLOUGH
Staff Reporter of THE WALL STREET JOURNAL
NEW YORK -- Big Mo may be no more.
Philip Morris Cos., whose corporate name has become synonymous with Big Tobacco, wants to shuck its 150-year-old moniker and go with a neologism: Altria.
Altria Group Inc., to be exact.
The maker of Marlboro cigarettes, Kraft foods and Miller beer says the new name is derived from the Latin word "altus," meaning high, and is designed to evoke the company's commitment to peak performance as well as its muscular finances.
It also is meant to give the parent company an identity separate from that of its most troublesome -- and most profitable -- product: cigarettes.
The name Philip Morris has been badly tarnished by decades of assaults by antismoking activists. The company says two years and $200 million worth of feel-good corporate-image ads that describe all of Philip Morris's businesses and charitable efforts have helped to improve its public image. But consumers still think of Philip Morris as a tobacco company.
The company says the name change isn't meant to distance itself from tobacco. Rather, it says, the change shows how Philip Morris has outgrown a narrow definition, especially since last year's purchase of cookie maker Nabisco Holdings Corp.
"Over the years, the business has changed and evolved. We're so much more than just a tobacco company now," says Steven C. Parrish, the company's senior vice president for corporate affairs.
Mr. Parrish insists the name change isn't a prelude to a split-up or spinoff of any part of the company. He says Philip Morris never considered changing its name to Kraft: "People would have criticized us for trying to hide behind our food business, and that is not what this is about."
Antitobacco activists say that is just what Philip Morris is trying to do. "This is clearly a company that is trying to run away from who they are," says Matthew L. Myers, president of the Washington-based Campaign for Tobacco-Free Kids. The domestic and international tobacco units will still use the Philip Morris name. Kraft and Miller will keep their names. The name Altria won't appear on packages of company products, just as the Philip Morris name doesn't today.
Martin Feldman of Salomon Smith Barney says the new name brings back unpleasant associations with high-school Latin class. "For both investors and the general public, I think English is better than Latin," he says, adding that the name switch won't erase investors' worries about the company's potential legal liabilities.
Philip Morris Cos. began life as a tobacco shop in London, before shifting its headquarters to the U.S. in the early 1900s. It started to diversify outside tobacco in the 1950s and bought Kraft and General Foods in the mid-1980s.
The company considered other names, including Marcade and Consumarc, before settling on Altria. Philip Morris will ask its shareholders to approve the new name at its annual meeting in April. If they OK the choice, Altria will join a growing list of nouveau corporate names such as Bcom3, Accenture, Agilent, Aventis, Novartis and Diageo. Woolworth, having focused its business on sports retailing, changed its name to the Latin-derived Venator. The company recently switched again to the more descriptive Foot Locker Inc.
Some top Philip Morris executives, including Chairman Geoffrey C. Bible, have had business cards printed to try out the new name. The other day Mr. Bible walked into Mr. Parrish's office, handed him a card and said, "Hi, I'm the chairman of Altria." |
