Marketplace helps you stay financially responsible all year, now we need YOUR help to keep our budget on track.
Donate NOW to help us hit our target of 2,500 Marketplace Investors by June 30!
TEXT OF STORY
Scott Jagow: We’re expecting an announcement today from the company Altria today. Altria’s plans are to spin off Phillip Morris International. It’ll keep Phillip Morris USA.
What will it do with the American market? Good question. Marketplace’s Janet Babin has more from North Carolina Public Radio.
Janet Babin: It’s an uphill battle for cigarette companies in the U.S. Smoking here declines every year. And that trend’s expected to continue.
Analyst Gregg Warren with Morningstar says that puts added pressure on Altria and Phillip Morris USA to branch out:
Gregg Warren: I could see them potentially making an acquisition, like UST, which is a big smokeless tobacco producer, just to sort of diversify their revenue streams. Because as it stands right now, they’re just collecting money for the states.
Under a 1998 settlement, U.S. tobacco companies, including Phillip Morris, pay a portion of their revenues to states each year to cover tobacco-related health costs.
Philip Morris recently bought cigar maker John Middleton in an effort to become less dependent on cigarettes. Meanwhile, parent company Altria also has a 20 percent stake in the company that makes Miller Beer.
I’m Janet Babin for Marketplace.
If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air. But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.
Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.
When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.