Newsclips  1991 - 1996

 

 

WASHINGTON AP - Job growth disappeared in March, leaving the unemployment...

819 words
2 April 1993
The Associated Press


WILMINGTON, Del. AP - RJR Nabisco Inc. pledged to improve cigarette sales despite pleas from some shareholders, including the grandson of founder R.J. Reynolds, that the company become a leader in the anti-smoking campaign.

The differences emerged at the tobacco and food conglomerate's annual meeting here on Friday.

Five anti-smoking shareholders, including Patrick Reynolds, failed in a bid for seats on the board of directors.

 

 

RJR Nabisco Set to Gain Market Share in Tobacco Sales

THERESA HUMPHREY
623 words
2 April 1993
The Associated Press


WILMINGTON, Del. AP - RJR Nabisco Inc. pledged Friday to improve cigarette sales despite pleas from some shareholders, including the grandson of founder R.J. Reynolds, that the company become a leader in the anti-smoking campaign.

The differences emerged at the tobacco and food conglomerate's annual meeting here.

Five anti-smoking shareholders, including Patrick Reynolds, failed in a bid for seats on the board of directors.

Some of the dissidents targeted the company's popular Camel brand for particular criticism and the cartoon character "Old Joe" Camel, which they said targets cigarettes toward young people.

Nonetheless, Karl von der Heyden, co-chairman and chief executive, told shareholders that, despite declining sales in the United States, the company's overall tobacco sales have grown 27 percent over the past two years.

Von der Heyden said the increase was due to expansions into new international markets and growth in established businesses in western Europe, Asia, Canada and Latin America.

"We're committed to making the most of every new strategic opportunity that arises in the international market," von der Heyden said. "But we're also continuing to build our core, global business around our key brands - Winston, Camel and Salem, which provide the lion's share of sales and profits in this business."

Camels were the focus of complaints from the shareholders who wanted the company to participate in the anti-smoking campaign.

"If my grandfather saw the Joe Camel campaign, I truly believe he would be shocked, dismayed and saddened," Reynolds said.

Reynolds urged the company "moral leaders in the tobacco industry" and push for a ban on all cigarette advertising.

And he suggested the company send him on a tour to colleges and public schools to talk to youths about smoking.

Others decried the Joe Camel advertisements for allegedly targeting young people, but co-chairman Lawrence Ricciardi assured shareholders the company does not condone underage smoking.

"The company actually discourages underage smoking. We do not want underage people smoking anywhere in the world," Ricciardi said.

The annual meeting came a week after RJR chief Louis V. Gerstner Jr. left the company to take the helm at International Business Machines Inc. RJR's board then took the unusual step of naming co-chief executives - von der Heyden, who was chief financial officer, and Ricciardi, RJR's general counsel and executive vice president.

Ricciardi assured shareholders "we haven't skipped a beat at RJR Nabisco" since Gerstner's departure. He also noted Gerstner remains a member of the board, although he was absent from the meeting. In addition, shareholders approved an expansion of the board from 15 to 16 members to include Ricciardi.

In its domestic tobacco business, von der Heyden said R.J. Reynolds is coming off a decade of decline in volume and market share, especially for top full-priced cigarettes. Factors contributing to the decline were the possibility of new federal cigarette taxes and a shift by consumers from full-price brands to lower-priced brands, including generics, he said.

There has been rapid growth for the lowest-priced cigarettes and "our performance in that tier will be an important part of our overall share of retail position," von der Heyden said.

On Nabisco Foods, von der Heyden said 1992 was an ambitious year for new products. He said two new lines of reduced-fat snacks are aimed at "aging Baby Boomers" who make up one of the fastest-growing market segments.

The new snacks, Mr. Phipps Tater Crisps and SnackWell's, have generated more than $100 million in sales since their introduction in August.

"They're a terrific new source of business for us," von der Heyden said.

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© 2003 Dow Jones Reuters Business Interactive LLC (trading as Factiva). All rights reserved.

 

 

BUSINESS

RJR NABISCO PLANNING EFFORT TO INCREASE SALE OF CIGARETTES

Theresa Humphrey Associated Press
356 words
3 April 1993
Los Angeles Daily News
Valley
B3

 

RJR Nabisco Inc. pledged Friday to improve cigarette sales despite pleas from some shareholders, including the grandson of founder R.J. Reynolds, that the company become a leader in the anti-smoking campaign.

The differences emerged at the tobacco and food conglomerate's annual meeting here.

Five anti-smoking shareholders, including Patrick Reynolds, failed in a bid for seats on the board of directors.

Some of the dissidents targeted the company's popular Camel brand for particular criticism and the cartoon character "Old Joe" Camel, which they said influences young people to smoke.

Nonetheless, Karl von der Heyden, co-chairman and chief executive, told shareholders that, despite declining sales in the United States, the company's overall tobacco sales have grown 27 percent over the past two years.

Von der Heyden said the increase was due to expansions into new international markets and growth in established businesses in Western Europe, Asia, Canada and Latin America.

"We're committed to making the most of every new strategic opportunity that arises in the international market," von der Heyden said. "But we're also continuing to build our core, global business around our key brands - Winston, Camel and Salem, which provide the lion's share of sales and profits in this business."

Camels were the focus of complaints from the shareholders who wanted the company to participate in the anti-smoking campaign.

"If my grandfather saw the Joe Camel campaign, I truly believe he would be shocked, dismayed and saddened," Reynolds said.

Reynolds urged the company to be "moral leaders in the tobacco industry" and push for a ban on cigarette advertising.

And he suggested the company send him on a tour to colleges and public schools to talk to youths about smoking.

Others decried the Joe Camel advertisements for allegedly focusing on young people, but co-chairman Lawrence Ricciardi assured shareholders the company does not condone underage smoking.

"The company actually discourages underage smoking. We do not want underage people smoking anywhere in the world," Ricciardi said.

Main story: Philip Morris to boost Marlboro.

 

© 2003 Dow Jones Reuters Business Interactive LLC (trading as Factiva). All rights reserved.

 

 

MONEY

Old Joe must go

3 April 1993
The New Orleans Times-Picayune
THIRD
C1


WILMINGTON, Del. - The grandson of R.J. Reynolds on Friday urged RJR Nabisco Holdings Corp. to kill off "Old Joe Camel," the cigarette ad gimmick that critics say targets children and teen-agers. Patrick Reynolds said that, were his grandfather alive today, "I sincerely believe that he would be shocked and dismayed and saddened" at the ad campaign.

 

 

BUSINESS

RJR WON'T QUIT TOBACCO SALES PUSH

The Associated Press
214 words
3 April 1993
The Record, Northern New Jersey
All Editions.=.Two Star B. Two Star P. One Star
a08

 

RJR Nabisco Holdings Corp. pledged Friday to improve cigarette sales despite pleas from some shareholders, including the grandson of founder R.J. Reynolds, that the company become a leader in the anti-smoking campaign.

The differences emerged at the tobacco and food conglomerate's annual meeting here.

Five anti-smoking shareholders, including Patrick Reynolds, failed in their bid for seats on the board of directors.

"If my grandfather saw the Joe Camel campaign, I truly believe he would be shocked, dismayed, and saddened," Reynolds said.

Some of the dissidents singled out the company's popular Camel brand for particular criticism. They said the cartoon character "Old Joe" Camel targets young people.

Nonetheless, Karl von der Heyden, co-chairman and chief executive, told shareholders that, despite declining sales in the United States, the company's overall tobacco sales have grown 27 percent during the past two years.

The annual meeting came a week after RJR chief Louis V. Gerstner Jr. left the company to take the helm at International Business Machines Corp. RJR's board then took the unusual step of naming co-chief executives _ Von der Heyden, who was chief financial officer, and Lawrence Ricciardi, RJR's general counsel and executive vice president.

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© 2003 Dow Jones Reuters Business Interactive LLC (trading as Factiva). All rights reserved.

 

 

BUSINESS

TALK OF PRICE CUT FIRES UP RJR

1993, Bloomberg Business News
366 words
3 April 1993
St. Louis Post-Dispatch
FIVE STAR
08C

 

The top tobacco executive at RJR Nabisco Holdings Corp. predicted "full-scale war" Friday after his archrival, Philip Morris Cos. Inc., said it would cut cigarette prices.

James W. Johnston, chairman and chief executive of R.J. Reynolds Tobacco Co., RJR Nabisco's tobacco unit, made the remark to a colleague after his company's annual meeting.

Speaking in earshot of reporters, Johnston said, "You hear about Philip Morris? It's full-scale war. You'll be hearing more about it."

Philip Morris announced it will cut the price of its Marlboro cigarettes to halt erosion of the flagship brand's market share to discounted brands. Philip Morris said it will expand an existing Marlboro promotion, increase distibution of its discount brands, and avoid further price increases on premium brands for now.

The Philip Morris news upstaged anything RJR officials had to say about their company at their shareholders meeting.

Anti-smoking activists at the meeting accounted for almost all the comments from the floor, led by Patrick Reynolds, grandson of R.J. Reynolds.

Reynolds told RJR officials they should "take the moral lead" and hire a lobbyist who would press Congress to enact a ban on cigarette advertising.

Reynolds said he was taking a "conciliatory approach," recognizing that he couldn't hope to end smoking in the country or persuade one tobacco company to stop advertising if competitors continued. He suggested, though, that a total advertising ban would provide a level playing field for tobacco companies while eliminating media images that influence the young to smoke.

An eerie silence fell over the audience as anti-smoking board candidate David Bresnick, a laryngectomy patient, criticized RJR for using the cartoon character Joe Camel, which critics have said targets young smokers.

Bresnick held a microphone to his neck, and the buzzing, mechanically reproduced monotone reverberated in the high recesses of the rococo Gold Ballroom.

"I don't want this to happen to anyone else," Bresnick said. "I am amazed and appalled at the recognition by the young of Joe Camel. What is wrong with you that you can't admit what everybody knows is harmful?"

 

 

PART-A; Metro Desk

Smoking Ban Kicks In at All L.A. Restaurants

JAMES RAINEY; RICHARD SIMON
TIMES STAFF WRITERS
1,383 words
3 August 1993
Los Angeles Times
Home
1

The Times Mirror Company; Los Angeles Times 1993  

Los Angeles' long-contested ban on smoking in restaurants suddenly went into effect Monday, when the city clerk's office declared that a coalition of restaurant owners had failed in a petition drive to put the issue before voters.

While nonsmokers declared victory and the city attorney's office said it would begin enforcing the ban immediately, opponents vowed to go to court to seek an order allowing smokers to continue lighting up in the city's nearly 7,000 enclosed eateries.

The petitions were invalidated because many of those signing or circulating them were found not to be registered Los Angeles city voters.