Position Paper: Marlboro Boycott

Page  1 ACT UP/D.C. AIDS Coalition to Unleash Power P.O. Box 9318 Washington, D.C. 20005 (202) 728-7530 Position Paper: MARLBORO BOYCOTT Dated: April 28, 1990 Research Performed By Michael Petrelis (202) 543-1070 Carl Goodman (202) 543-1070 Emmett Underwood (703) 527-1712 Melinda Daniels (202) 667-8361 This document provides facts about our call for an international boycott of Philip Morris, Inc.'s Marlboro cigarettes, and covers: 1. Date and place of kickoff press conference; 2. Our demands of Philip Morris; 3. How we've communicated those demands to the company; 4. Facts about Philip Morris's corporate support of Sen. Jesse Helms (R.-N.C;); 5. Facts about Helms's voting record; 6. Facts about Philip Morris's corporate structure and products, including the importance of Marlboro within this corporate structure; and 7. Strategic points to make with media contact and in our outreach efforts. 1. PRESS CONFERENCE TO ANNOUNCE ACT UP/D.C. * 'S CALL TO BOYCOTT MARLBORO OCCURRED ON: Thursday, April 26, 1990, at the downtown D.C. office building housing Philip Morris (PM's headquarters is in New York; the PM Washington office performs lobbying work exclusively) IIIIIII IIIIII IIII IIIIIIIIIIIIII IIIIIIIIIIIl5571095.0422 005

Page  2 This April 26 date coincided with the annual Philip Morris shareholders' meeting which took place in Richmond, Va., at the Philip Morris Manufacturing Center. 2. OUR DEMANDS OF PHILIP MORRIS: 1. Cease all corporate donations to or on behalf of Sen. Jesse Helms;.2. Renounce past funding and support of Helms. 3. HOW OUR DEMANDS HAVE BEEN COMMUNICATED TO PHILIP MORRIS: a. Telephone calls in March and April 1990 from Michael Petrelis, acting on behalf of ACT UP/D.C., to Philip Morris D.C. office. Spoke with David I. Greenberg, v.p. in charge of government relations. (His direct line is (202) 637-1510). Philip Morris Political Action Committee (PHIL-PAC) 1341 "G" Street, N.W. Suite 900 Washington, D.C. 20005 (202) 637-1500 (FAX # 202-637-1505) b. Telephone calls in March and April 1990 from Michael Petrelis, acting on behalf of ACT UP/D.C., to New York headquarters of PM. Successively spoke with: (1) Ralph Rogers, administrator of PHIL-PAC and budgets. (His-direct line is (212) 878-2206); (2) Guy L. Smith IV, v.p. in charge of corporate affairs. (His direct line is (212) 878-2530); and (3) Alice T. 'McGillion, director of corporate communications. (Her direct line is (212) 880-3475). Philip Morris Companies, Inc. 120 Park Avenue New York, New York.10017 (212) 880-5000 c. On April 16, 1990, ACT UP/D.C. restated our demands in a letter to Hamish Maxwell, the Chairman and CEO of the Philip Morris Companies, Inc. It was FAXed to the New York headquarters. (Maxwell's FAX # is 212-878-2167). The letter was co-signed by ACT UP/D.C. members Michael Petrelis and Emmett Underwood. -2 -

Page  3 Hamish Maxwell's home address: 1 Pierrepont Street Brooklyn, New York 11201 Philip Morris responded by scheduling a meeting with ACT UP for April 20, 1990, at the Washington lobbying office of Philip Morris. Seven ACT UP/D.C. members attended the meeting: Melinda Daniels, Carl Goodman, Angelo Llau, Jeff Nelson, Michael Petrelis, Bud Turley, and Emmett Underwood. Three Philip Morris executives attended: Guy L. Smith, IV; David I. Greenberg; and Alice T. McGillion. Philip Morris refused to accede to our demands. Instead, they reaffirmed their support of Helms. 4. OVERVIEW OF PHILIP MORRIS'S CORPORATE SUPPORT OF SEN. HELMS: According to the Federal Election Commission, Philip Morris PAC has made the following direct contributions to Helms: Year Amount Donated 1977 $ 600 1978* 1,000 1979-83 0 1984* 5,000 1985 5,000 1986-88 0 1989 7,500 1990*,** 2,000 TOTAL $ 21,100 * Election year ** Through April 15, 1990 Please Note: Federal law limits corporate PAC contributions to $5,000 per Primary election and $5,000 per General election. Philip Morris PAC is entitled to give Helms no more than $10,000 per 6-year period between Senate elections. (Retroactive payments are also permissible to cover any outstanding debt frompast elections.) As the table above shows, Philip Morris PAC has given the absolute maximum to Helms's campaigns. No other corporation comes even close to such strong support of Helms. Philip Morris is also by far the single largest corporate sponsor of the proposed "Jesse Helms Museum," planned to open in 1992. At $200,000, the company has given almost three times the amount of the second highest benefactor. (source: The Raleigh (N.C.) News and Observer, April 11, 1990, p. 1). -3 -

Page  4 5. RECENT VOTES OF SEN. JESSE HELMS: (Note -- Some votes identified were procedural in nature, but were related to the substantive issue) SLESBIAN/GAY ISSUES FOR Override of local District of Colombia law barring discrimination in insurance coverage on the basis of AIDS or HIV (Human Immunodeficiency Virus) status FOR Exempting some institutions from the District of Columbia law barring discrimination on the basis of sexual orientation. AGAINST Bill to bar discrimination on the basis of disability in employment, public services, public accommodations, transportation and telephone communications. Helms voted against this because disability has been defined to include people with AIDS and HIV-infection. FOR Prohibition on federal funding by National Endowment for the Arts for works deemed "obscene" or "homoerotic" FOR Override of local District of Columbia policy barring discrimination on the basis of sexual orientation as it applies to lesbian and gay volunteers who work with children AGAINST Billtt to require FBI to keep hate crimes statistics. Helms voted against the measure because in addition to race and religion, "sexual orientation" was included among the reasons why persons are assaulted * AIDS ISSUES -- Education FOR Prohibition on federal funds to be used for AIDS educational materials that "promote homosexual i ty" FOR Prohibition of federal funds for any materials or programs that "promote homosexuality" or state that homosexuality is "normal," "natural," or "healthy" AGAINST AIDS educational materials to be produced that stress "the public health benefits of a single monogamous relationship and the avoidance of unlawful intravenous drug abuse." Helms voted against this because of additional language that said, "[N]othing shall restrict the ability of the education program to provide accurate information on reducing the risk of becoming infected with the etiologic agent for AIDS." -- Treatment AGAINST Emergency supplemental funding to continue to provide the anti-AIDS drug AZT to needy Americans with AIDS -- Prevention FOR Prohibition on use of f1ederat funds for purchase of hypodermic needles -- Mandatory Testing FOR Requirement that all marriage license applicants be tested for HIV antibody FOR Requirement to test all immigrants for HIV antibody FOR Requirement to test routinely drug and sex offenders for HIV antibody * CIVIL RIGHTS ISSUES AGAINST Federal holiday honoring Rev. Martin Luther King, Jr. AGAINST Cutting cost to elderly of federally subsidized housing FOR Permitting federally funded hospitals to refuse to perform abortions on poor women AGAINST Reparations for Japanese-Americans interned in World War II AGAINST Passing civil rights restoration bill over Reagan veto -4 -

Page  5 SJUSTICE ISSUES FOR Confirmation of Robert Bork as Supreme Court justice FOR Military aid to the Nicaraguan contras AGAINST Notification requirement for workers before-ctosing factories 6. CORPORATE FACTS ABOUT PHILIP MORRIS: a. Annual sales (Philip Morris is the largest cigarette company in the world; Marlboro is the world's largest selling brand): For 1989 OPERATING REVENUES (Note that most of these dotllar figures are in the bitllions) Domestic tobacco International tobacco Food. Beer Financial services and real estate $ 9,489,000,000 8,375,.000,000 22,933,000,000 3,435,000,000 527,000,000 $ 44,759,000,000 TOTAL OPERATING REVENUES OPERATING COMPANIES INCOME Domestic tobacco International tobacco Food Beer Financial services and real estate TOTAL OPERATING COMPANIES INCOME Please Note: "Operating Revenues" refers to gross revenues. refers to the gross revenues minus direct costs. (Indirect expenses or corporate debt, are not included.) $ 3,606,000,000 1,007,000,000 2,138,000,000 226,000,000 173,000,000 $ 7,150,000,000 "Operating Companies Income" costs, such as administrative TOBACCO ACCOUNTS FOR 40% OF PHILIP MORRIS'S GROSS REVENUES, BUT 65% OF PHILIP MORRIS'S PROFITS. (Source: Phit Wilbur, Media Programs Director, the Advocacy Institute [a D.C.-based public-4nterest think tank], tet. 202-659-r84- )' 4' b. Importance of Marlboro (1) Share of domestic cigarette market: Share of Marlboro Share of all other Philip Morris brand names Total share of Philip Morris 26.3% 15.6% 41.9% (2) A single share of the domestic U.S. tobacco market is worth between $250 and $300 million per year. If -5 -

Page  6 Marlboro drops from 26% to 25% of the domestic market, Philip Morris would lose more than $250 million. (3) If the single name brand of Marlboro were a separate corporation, it would rank 45th on the Fortune 500 list of industrial companies (Marlboro had retail sales of at least $9.4 billion in 1989). (Source: "The Marlboro Man's Dominance," New York Times, March 8, 1990 p. 0-1). c. Other products: Philip Morris Companies, Inc., is the parent company of: (1) Other brand names of cigarettes -- Virginia Slims, Merit, Benson & Hedges, Parliament, Cambridge, Alpine, Chesterfield, Lark (2) General Foods -- Post cereals, Minute Rice, Oroweat, Jell-O, Sanka, Maxwell House, Entenmann's, Tang, Kool-Aid (3) Kraft -- Miracle Whip, Velveeta, Parkay, Philadelphia Cream Cheese, Cracker Barrel, Breyer's Ice Cream, Cool Whip (4) Oscar Mayer Foods -- luncheon meats, Louis Rich (5) Miller Brewing Company -- Miller, Lite, Sharp's, Lowenbrau Light, Milwaukee's Best d. Toll-free "800" numbers: (1) The Philip Morris Smokers' Advocate Hotline (based at New York headquarters): 1-800-343-0975 (2) Philip Morris cigarette order number for retailers (based in Richmond, Va.) 1-800-446-7030 7. STRATEGIC POINTS TO RAISE BOTH WITH MEDIA AND IN OUTREACH TO GET OTHERS TO ENDORSE THE ACTION: a. Why Philip Morris? (1) Philip Morris is by far the single largest corporate contributor to the election campaigns of Helms. Philip Morris boasts that its support of Helms is longer (at least 13 years) and more consistent than any other company. (2) Excluding indirect contributions from Philip Morris board members and executives (given to Helms in their individual capacities), and excluding indirect contributions funneled by Philip Morris to Helms from sources such as the Tobacco Institute PAC, the recent direct contributions from Philip Morris PAC to Helms total $21,100. (This figure includes Philip Morris's -6 -

Page  7 most recent contribution of $2,000 made on March 30, 1990.) Runners up in contributions to Helms's campaign coffers (A/K/A, "the corporate roll of infamy"), during the same period of time, include Burlington Industries (textiles) @ $13,000; Amaco (petroleum) @ $12,000; RJR Nabisco (tobacco and food) @ $10,000; and Coors (beer) @ $5,000. Philip Morris has contributed almost twice as much as Helms's second biggest corporate sponsor. (3) At $200,000, Philip Morris is by far the largest corporate contributor to the Jesse Helms Museum, an attempt to glorify Helms's extremism and bigotry. b. I'm still not convinced that Marlboro is the best Philip Morris target. What about going after other Philip Morris products too? (1) It is best to start a boycott by focusing on a single product. Hence, Marlboro. (2) Marlboro dovetails between both Philip Morris (as its most profitable single product) and Helms (as a proponent of federal tobacco-subsidies for farmers and the industry, an unpopular issue during these budget-cutting times). To many people, North Carolina means two things: tobacco and Helms. (3) Tobacco is Philip Morris's most profitable product. Marlboro is Philip Morris's (and the world's) most profitable cigarette brand. Hit 'em where it hurts the most! (4) Smoking has become a nationally unpopular habit. (5) Marlboro advertising appears on billboards, in print media, and on transit displays -- perfectly accessible to the guerilla tactics of ACT UP. (6) The best politics are when the issues hit home. Many lesbians, gay men, people with AIDS, and their supporters smoke Marlboro. By forcing ourselves to stop smoking Marlboro, we can demonstrate personal commitment to our goals, and in so doing, try to hold Philip Morris accountable for its slavish support and funding of the demagogic and bigoted Helms. (7) No matter how stoic he appears, the Marlboro Man is vulnerable. The Real Marlboro Man Is The Bigoted Helms. (8) Philip Morris products are ubiquitous. It would be difficult to boycott them all. If the boycott is to expand, realistically it would only be able to encompass one additional product -- Lite Beer by Miller (modeled after the boycott of Coors beer). However, the effort to -7 -

Page  8 kick off an expanded boycott would consume twice as much energy as the effort to boycott Marlboro alone. c. Where's the connection between buying Marlboros and supporting Helms? (1) Dollars spent by consumers to smoke Marlboros are used by Philip Morris's Political Action Committee to finance Helms's Senate campaigns. Philip Morris thereby supports Helms's appalling efforts to thwart effective governmental responses to stem the AIDS epidemic. Philip Morris must also be held blameworthy for promoting Helms's agenda against civil liberties for lesbians and gay men, as well as against women and racial and ethnic minorities. (2) Philip Morris's conduct is not to be excused merely because Helms is from a tobacco-growing region. By both the size and length of Philip Morris's contributions to Helms, the company is directly contributing to Helms's extremist positions on urgent issues of health and civil rights. The Senator is nothing short of a raving madman. It is time that corporate America becomes accountable for supporting and giving credibility to such a villainous demagogue. (3) The money that Philip Morris reaps from lesbians, gay men, and people with AIDS is then reinvested into projects such as the Jesse Helms Museum, an attempt to glorify Helms's bigotry. Philip Morris must exhibit Corporate responsibility to the lesbian, gay and AIDS communities, and invest its monies into projects that would enhance (instead of annihilate) the hopes of this country's diverse peoples. d. What about other tobacco- companies who finance Helms? No other tobacco company -- or corporate entity of any kind-- finances and supports Helms to the extent that Philip Morris does. Philip Morris, up to now, has had to give no corporate accountability for its enormous support and funding of Helms. It is well-nigh time that Philip Morris's egregious actions are given a broad public airing. Consumers have a right to decide whether they want hundreds of thousands of their dollars to be used to fund the efforts of a bigoted demagogue. e. But Philip Morris is a tobacco concern. Helms is an effective tobacco advocate. Doesn't it make economic sense for Philip Morris to fund Helms? Yes, profit is the motivating factor in Philip Morris's funding of Helms. But Philip Morris is practicing the worst kind of pork-barrel politics: "You scratch my back and I'll scratch yours." Ajy senator from North Carolina would be an -8 -

Page  9 effective tobacco advocate. Philip Morris would not fund a KKK member, no matter how advantageous the person was on tobacco issues. Helms is an extremist and a bigot. Philip Morris must weigh these factors along with the economic ones. Philip Morris's funding of Helms, on such a massive scale, translates into genuine credibility for his hateful agenda. f. What's the big deal of Philip Morris's $21,100 worth of campaign contributions to Helms? Didn't Helms raise $16,000,000 during his last Senate re-election campaign in 1984? It is true that Philip Morris has contributed less than 1% of Helms's total campaign revenues. However, our call to boycott Marlboro is symbolic of the need for Philip Morris and other corporations to stop providing concrete encouragement to such a resolute hatemonger. Helms is an extremist, and is undeserving of any deference owing to his position as a U.S. Senator. He is opposed to any and all AIDS education measures. He deploys filibusters on the Senate floor to block effective responses to stem the AIDS epidemic. Helms has never supported a single piece of legislation to advance effective responses to AIDS, whether educational, or treatment- or prevention-oriented. Since 1986, Helms has had 29 chances to vote on issues that directly affect the lives of lesbians, gays and people with HIV. He has voted wrong each time. On 8 votes, Helms has blocked efforts to provide AIDS information materials specifically targeted to prevent HIV infection. On 4 votes, Helms tried to invoke mandatory HIV testing. On January 13, 1990, Helms announced his reelection campaign for this year's May 8, 1990 North Carolina Republican Primary, and November 6, 1990 General Election. At his kickoff press conference, Helms tried to portray himself as the savior of heterosexuals by invoking his common technique of vilifying gay men and lesbians, decrying us as "disgusting people." But as the daily Charlotte (N.C.) Observer stated in a January 18, 1990 editorial: "([Sen. Helms ' s ] choice of that description Saturday reminds us again that Sen. Helms is not only mean-spirited, but that he relishes being mean-spirited. He gleefully flaunts his mean-spiritedness. He glories in being mean-spirited. "Maybe Jesse Helms can no more help being mean-spirited than a homosexual can help being homosexual, so we won't describe him as a ' disgusting person. ' We would suggest, however, that anyone who takes such joy in -9 -

Page  10 meanness comes very close to exemplifying what is meant by 'evil.'" [Emphasis added]. ACT UP/D.C. would suggest as well that Helms finds joy in being evil because it is profitable. At least up to now. We aim to reduce the profitability of his contemptible behavior. The likelihood is that Helms would become less evil the less corporations reward him. Philip Morris is the only corporate contributor to Helms that has reached the maximum funding limits set by the Federal Election Commission. Philip Morris can't have it both ways. Those of us in the lesbian, gay and AIDS communities will simply stop buying Marlboro to let Philip Morris know that we are seeking to hold them accountable for their actions. g. But doesn't Philip Morris give thousands of dollars to AIDS service organizations? And what about the fact that Philip Morris also gives thousands of dollars to pro-gay and lesbian political candidates? Yes, it is true that Philip Morris supports AIDS and gay organizations, and pro-gay political candidates. However, the peanuts that they give these individuals and groups is more than offset by their funding of Helms. Helms is an enormously effective bigot. Helms blocks AIDS education funding efforts, and uses vulgar scare tactics to thwart the progress of lesbian and gay liberation. His reelection to the Senate would not only make the jobs of AIDS and gay advocates increasingly difficult and expensive. Helms's reelection would insure more deaths from AIDS. This is the cost his bigotry extracts. The pittance that Philip Morris throws at us would hardly help rectify the damage Helms is continuing to cause. The largest ekample of Philip Morris's support of AIDS organizations is its contributions to the American Foundation for AIDS Research (AmFAR). In 1987, Philip Morris gave AmFAR $2,000. In 1988, it gave $50,000. Simultaneously, however, Helms was blocking the federal government from performing any effective role in educating the public about AIDS. AmFAR and other groups were directly prohibited from using government money to make effective outreach to gay men and IV-drug users, the two groups most at risk of contracting AIDS. AmFAR and the other groups must fund such educational efforts without federal money. Philip Morris's schizophrenic funding of both Helms and AIDS organizations leaves the AIDS groups with absolutely no advantage. Instead, their jobs are enormously harder and more expensive to perform. Philip Morris can expect no gratitude from the lesbian, gay and AIDS communities for this kind of cover-all-bases tactic. -10 -