Philip Morris Appoints a U.S. Chief -- Update
March 02 2020 - 9:04AM
Dow Jones News
By Jennifer Maloney
Philip Morris International Inc. said it was promoting one of
its top executives to a newly created role overseeing the U.S.
market, a signal the tobacco company plans an expanded role on
Altria Group Inc.'s home turf.
Philip Morris's chief financial officer, Martin King, has been
named chief executive officer of PMI America. He will be the point
person for an arrangement in which Altria is selling Philip
Morris's heated tobacco device, IQOS, in the U.S. Mr. King will
also explore new technologies in the U.S. in which to invest
through his company's venture arm.
The company hired an outsider, Emmanuel Babeau, to take over the
finance role. Most recently the deputy CEO of Schneider Electric
S.E. in charge of finance and legal affairs, Mr. Babeau will join
Philip Morris as CFO on May 1. He was previously group CFO at the
spirits company Pernod Ricard SA.
Philip Morris and Altria -- which were split apart in 2008 --
hold the same portfolio of cigarettes, including industry leader
Marlboro. The products are sold by Altria in the U.S. and Philip
Morris elsewhere. The two tobacco giants held talks earlier this
year on a potential merger but called off those discussions in
September amid uncertainty around vaping regulations in the
U.S.
Mr. King said he would focus on increasing his company's
lobbying and engagement with U.S. regulators after a vaping-related
lung illness last year prompted U.S. health officials to warn
against the use of all vaping products. The U.S. Centers for
Disease Control and Prevention later said the illness was linked
not to e-cigarettes but to vaping devices containing marijuana
extracts and vitamin E oil. But the initial warnings reverberated
around the world and prompted Philip Morris to postpone the planned
launch of a new e-cigarette in Europe.
Regulators in the U.S. have powerful influence in setting the
tone globally on issues such as underage vaping and the potential
role of reduced-risk tobacco products for adult cigarette smokers,
Mr. King said in an interview Monday. "All of these topics are
critical to us around the world and the U.S. plays a huge role in
setting that framework and tone," he said.
Altria launched IQOS, a device that heats tobacco sticks but
doesn't burn them, in the U.S. in September through a partnership
with Philip Morris. The device is available in Atlanta and
Richmond, Va., and is expected to go on sale in Charlotte, N.C. in
April.
Write to Jennifer Maloney at jennifer.maloney@wsj.com
(END) Dow Jones Newswires
March 02, 2020 08:49 ET (13:49 GMT)
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