On the Call: Altria Group Inc. CEO Michael E. Szymanczyk

Source from:  AP 01/28/2011

Altria Group Inc.'s Marlboro brand continues serve the owner of the largest U.S. cigarette maker, Philip Morris USA, as the top-selling cigarette in the nation. Marlboro has gained more of the cigarette market as the number of cigarettes sold has declined industrywide in the face of recent tax increases, smoking bans and rising health concerns and social stigma. The Richmond-based company said Marlboro accounted for 42.3 percent of cigarettes sold in the U.S. in the fourth quarter. Altria has introduced several line extensions of the Marlboro brand with products such as special blends of both menthol and nonmenthol cigarettes to help keep the brand growing and attract its competitor's smokers. In a conference call with analysts on Altria's fourth-quarter earnings, CEO Michael E. Szymanczyk talked about Marlboro's future. QUESTION: You're using these line extensions to really help the Marlboro brand. Are they going after different consumer segments? RESPONSE: Marlboro's a big brand and, in a declining category. The way that brand grows is that it has to get competitive smokers to join its franchise and it needs to keep its adult smoker consumers that are in that brand that are continuing to participate in the category. The kinds of extensions that we do are designed to reach out to competitive adult smokers and give them an opportunity to join the brand franchise called Marlboro. … This brand is a brand that continues to show the equity strength to grow out into the future, but to grow it has to reach out to competitive adult smokers. Enditem