Altria Group Chief Executive Promises to Keep Offering Products Consumers Enjoy Under New Regs

Source from:  The Associated Press 07/23/2009

New federal legislation allowing the U.S. Food and Drug Administration to reduce nicotine in tobacco products, ban candy flavorings and block labels such "low tar" and "light" is expected to hurt Philip Morris USA least among tobacco companies because tighter regulations could cement its position as market leader. Altria Group Inc., Philip Morris USA's owner, supported the legislation, while its chief rivals - No. 2 Reynolds American Inc. and No. 3 Lorillard Inc., both based in North Carolina - opposed it. The law won't enable FDA to ban nicotine or tobacco but to regulate what goes into tobacco products, make public those ingredients and regulate marketing campaigns. In a conference call with analysts Wednesday regarding its second-quarter earnings, Altria Group CEO Michael E. Szymanczyk talked about the impending regulation. QUESTION: What gives you confidence that the FDA won't make product modification mandates that would impair consumer enjoyment of your tobacco products? RESPONSE: It's going to be an extended process here and I don't think that any of us can predict exactly what things the FDA will focus on. … What I can tell you, whatever it is, it'll be a level playing field. We'll compete on that playing field to try to give our consumers products that they enjoy and certainly I would hope that the decisions the FDA makes would be ones that are focused on allowing consumers to have choice, be informed and hopefully find ways to reduce harm. Enditem