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Non-Tech : Philip Morris - A Stock For Wealth Or Poverty (MO) -- Ignore unavailable to you. Want to Upgrade?

To: Hopkins who wrote (3601)	4/8/1999 6:05:00 AM
From: Duker	Read Replies (1) \| Respond to of 6439

Philip Morris Dismisses MacDonough, Two Top Lieutenants at Miller Brewing By GORDON FAIRCLOUGH and SALLY BEATTY Staff Reporters of THE WALL STREET JOURNAL NEW YORK -- Food and tobacco giant Philip Morris Cos. dismissed the head of its Miller Brewing Co. unit, John N. MacDonough, and two of his top lieutenants after a series of advertising flip-flops and disappointing new-product launches hurt sales. "We feel we needed to make a change in order to upgrade Miller's performance," said Philip Morris spokesman Christopher Kircher. In addition to Mr. MacDonough, the company said it let go John P. Rooney, 41 years old, Miller's vice president for marketing, and Christopher R. Moore, 46, vice president, sales. None of the three executives could be reached for comment. Mr. MacDonough, 55, will be succeeded by John D. Bowlin, 48, chief executive officer of Philip Morris's Kraft Foods International division and a former president and chief operating officer of Miller, the company said. One ad-industry executive who knows Mr. Bowlin called him a "boy wonder" who is on Philip Morris's "fast track." Skills Face a Test Mr. Bowlin's skills are certain to be tested as he tries to regain ground that Miller, America's No. 2 brewer, has lost to industry leader Anheuser-Busch Cos., maker of Budweiser. Miller Lite's market share, for example, fell to 7.9% in 1998, while Bud Light's rose to 12.9%. Wall Street analysts said they believe the leadership change was overdue. "Miller for many, many years now has been poorly managed," said Skip Carpenter, an analyst at Donaldson, Lufkin & Jenrette. Mr. Carpenter said the company lost its way, focusing on new products at the expense of its main Miller Lite and Miller Genuine Draft brands. A round of price cuts Miller initiated in 1997 also didn't help, leaving the company weakened financially while failing to deliver any lasting market-share gains, Mr. Carpenter said. The company has also alienated distributors and retailers, analysts say, and one of Mr. Bowlin's most important tasks will be to rebuild those relationships. One of the sorest points with distributors has been Miller's advertising campaigns. The beer company recently pulled the plug on a series of ads for Miller Lite that featured women with rodent hair growing under their arms and a man dressed like a woodchuck devouring a log cabin. Dusting Off Old Page In its place, Miller dusted off an old strategy: using celebrities to debate the merits of Miller Lite. Critics have panned the new ads as nothing more than a watered-down version of the company's well-known "Tastes Great, Less Filling" ads. Michael Bellas, chairman of Beverage Marketing Corp., a New York consulting firm, said the executive shuffle raises questions about how long Miller Lite's new ad campaign may run. "The tea leaves say this may not do it," he said. Madison Avenue is already bracing for a shakeup. Miller Lite's current agency is Fallon McElligott in Minneapolis. Wieden & Kennedy, which creates ads for Miller Genuine Draft, the company's No. 2 brand, was recently told to redo ads after Miller distributors panned its new campaign. Agencies with close ties to Philip Morris that could conceivably benefit from the management change include Young & Rubicam and Leo Burnett. Responding to a question about any changes in Miller's agency lineup, a spokeswoman for Miller said it would be "premature to even try to discuss it." Philip Morris also said it named Roger K. Deromedi, 45, to succeed Mr. Bowlin at Kraft. Mr. Deromedi was previously group vice president at the unit.