Altria: Smoking is addictive

The top executive of tobacco giant Altria Group Inc. told shareholders Thursday that smoking is addictive and can be very difficult to quit.

The comment by Michael E. Szymanczyk, Altria's chairman and chief executive officer, came as part of a presentation to shareholders about the company's 2010 business results, though he also focused heavily on the company's philanthropic giving and its programs to prevent youth smoking and to comply with the Food and Drug Administration's regulation of tobacco products.

"Because tobacco use is addictive and it can be very difficult to quit, our tobacco companies help connect adult tobacco consumers who have decided to quit with cessation information from public health authorities," Szymanczyk said during the annual meeting at the Greater Richmond Convention Center.

His comment reflects the company's official position, but stood in contrast to a comment made last week by Louis C. Camilleri, the chief executive officer of Philip Morris International Inc.

Camilleri said cigarette smoking is addictive but is "not that hard to quit" and that former smokers outnumber current smokers in the U.S.

His statement was in response to a shareholder comment at Philip Morris International's annual meeting in New York City. Camilleri is the former CEO of Altria Group, which spun off Philip Morris International as a separate company in 2008.

Philip Morris International sells cigarettes internationally, while Henrico County-based Altria Group, the parent company of top U.S. cigarette-maker Philip Morris USA, sells tobacco products in the U.S. market. The company is a major employer in the Richmond area and a significant buyer of Virginia-grown tobacco.

Three tobacco-control activists at Altria's meeting Thursday pressed Szymanczyk to elaborate on his comment. He referred them to the company's position on smoking and addiction outlined on its website.

"I would simply say that what I said is on our website," Szymanczyk said in response to one activist's question about why his comments contradicted Camilleri's.

"There is nothing new here," Szymanczyk said. "This is the Altria Group shareholders meeting, and we discuss the business of Altria Group."

One shareholder and tobacco-control advocate, Anne Morrow Donley of Richmond, asked Szymanczyk whether he would advise people not to smoke around women of child-bearing age. Donley cited several recently published studies showing that exposure to secondhand smoke by pregnant women can harm the fetus and cause health problems such as low birth weight in infants.

"For some time, our position has been that people should be guided by public health authorities relative to issues of smoking and health, including secondhand smoke," Szymanczyk said. "I also think that our position has been clear that pregnant women shouldn't smoke and that children and pregnant women shouldn't be exposed to smoke."

Altria shareholders overwhelmingly voted to reject a proposal offered by some tobacco-control advocates for the company to stop making tobacco products with added characterizing flavoring unless and until independent research shows that added flavors do not contribute significantly to youth tobacco use.

The Rev. Michael Crosby, a tobacco-control advocate from Milwaukee, argued that adding flavors to tobacco products entices underage users.

Altria's board of directors recommended shareholders reject the proposal, saying it would put the company at a competitive disadvantage because "millions of adult tobacco consumers prefer tobacco products offered in a wide range of flavor varieties."

The FDA has been studying whether to ban or restrict menthol flavoring in cigarettes. An FDA scientific advisory committee concluded in March that removing menthol from cigarettes would benefit public health, but it did not formally recommend a ban.

Szymanczyk told shareholders that the company performed well in 2010.

"2010 was a successful year for Altria as our diverse business platform delivered strong results in a challenging environment," he said.

Altria's overall profit rose to $3.9 billion in 2010 from $3.2 billion in 2009. Operating income increased in its cigarette, smokeless tobacco and wine businesses, but declined slightly in its cigar business.

Altria also reaffirmed its full-year guidance for 2011 for adjusted diluted earnings per share in the range of $2.01 to $2.07, a 6 percent to 9 percent growth rate from 2010.

"This year's business environment is difficult, with high unemployment, low consumer confidence and intense competition," Szymanczyk said. "In addition, our tobacco businesses continue to adapt to FDA oversight and manage a challenging litigation environment.

"Despite these challenges, Altria's businesses are off to a good start" for 2011, he said.

Shareholders re-elected nine members of Altria's board of directors.

Robert Huntley retired from the board after nearly 35 years. Huntley is the retired counsel to the law firm of Hunton & Williams LLP and a former chairman, president and chief executive officer of defunct catalog showroom retailer Best Products Co. Inc.

jblackwell@timesdispatch.com

(804) 775-8123