Smoke Signals

CIGARETTE SMOKING is addictive.

Cigarette smoking causes lung cancer, heart disease, emphysema and other serious diseases in smokers.

Smoking is dangerous.

These warnings aren’t just rallying cries for anti-smoking proponents, but also statements from the website of Philip Morris International, producer of cigarette brands Marlboro and Philip Morris, among others. It’s under a section called "a clear and consistent message", under a prominent heading of "Smoking and Health". There is no hedging, no buts about it, no twisting of the issue, just a plain statement of the risks involved in smoking tobacco.

Many would have us believe that the tobacco industry is the enemy, out to make a profit off the lungs and lives of the people they lure into the smoking habit. That the industry clouds the facts with flashy advertising, and throws out lines of influence, using them to stop or slip past legislation and regulation. The industry, and the people in it, are caricatured by some into devious, manipulating monsters.

The reality is much more benign, and much more responsible: Chris Nelson, managing director of Philip Morris International (Philippines) Manufacturing, Inc., casually says, "We are, and always will be, in support of regulation, actually."

The affable Brit smiles, then goes on to explain that regulation is actually good for business: "The key issue in any business is planning. Regulation gives the industry a map with which it can go forward, because it clears up a lot of unknown factors. Because we have the necessary information, we can plan accordingly.

"Take the Tobacco Act (of 2003), for example. In July 2006, warning labels on the cigarettes will move from the side of the pack to the front, taking up 30 percent of it. Even as early as now, we’re planning around that, from material purchases to production and sales. Regulation gives everybody involved a set of clear and definite guidelines to work with."

Philip Morris Philippines is taking the issue of health and smoking seriously, working under Republic Act 9211–the 2003 Tobacco Regulation Act, that restricts the advertising, sale, and distribution of tobacco products. The company is already taking initiative, especially with their youth smoking prevention programs. Philip Morris is pulling out of many sports sponsorships, like golf and basketball, because they are youth-oriented activities. Working with the University of Asia and the Pacific, they’re launching educational programs to inform kids about the dangers of smoking.

"We’re very clear about acknowledging the risks involved," says Nelson. "We believe that, if you have concerns about smoking, you should take the advice of health experts and give it up. But for those adults who choose to continue to smoke, knowing the risks, we want them to choose our product, because we manufacture high-quality cigarettes."

Nelson, managing director in the Philippines for almost three years, took part in the dialog between all the parties involved in the regulation of tobacco in the country. He’s an able representative for his company, having been part of it for almost twenty years. He is also confident about the industry surviving, and even thriving, in the future. Nelson has every reason to be optimistic, as even the recent economic woes hasn’t stopped the growth of Philip Morris Philippines, and the sales of their brands.

He’s also come to love the country he’s working in, and working with our people. Having been overseas as a manager in places like Kuwait, Dubai, Yemen, Saudi Arabia and the Horn of Africa, he’s worked with many people, but he claims it’s a joy to work with Filipinos. "And I’m not saying that just because I married one," Chris quips. "Filipinos are, by definition, a happy people. I can’t think of anyone else who are as happy, in general. It’s great to be able to work where people smile a lot."

As managing director, he is involved in every facet of running the company: in financing, HR, corporate affairs, sales, marketing, and planning. And it’s from his position that one can best watch the growth of his company.

"There’s a lot to be proud of," he says. "We’re the second largest tobacco company in the country. We’ve got a full twenty-five percent of the market share. Philip Morris produces the best-selling brand, both here and in the world, which is Marlboro. We’ve acquired three local value brands: Bowling Gold, Stork, and Miller. In 2003 we opened up a world-class $300-million plant in Batangas, and we’re now exporting tobacco leaf abroad. And we’ve grown, as an organization–now, 99 percent of our employees are nationals."

But while there’s a lot to be proud of–the Batangas plant is the largest PMI investment in Asia–there’s still much to improve on, and achieve. "There’s still the matter of the 75 percent market share," he says, and smiles.

There is also room for improvement in the anti-youth smoking program, but the company is getting there. While Philip Morris Philippines is doing its part in informing the public about the dangers of smoking and working with its retailers, educators and parents also have to do their part. No matter how big the warning the companies put on their cigarette packs or how many retailers they talk to, it all comes to naught if some parents still send their children out to buy cigarettes for them. It’s a complex problem, and the company is working on having everyone cooperate to keep kids away from cigarettes.

While it’s withdrawing from sports, PM Philippines is also branching out into sponsorships for arts and culture. In 1994, the Philip Morris Group of Companies launched the yearly ASEAN Art Awards, one of the most prestigious contests in the region. Locally, it has corporate sponsorships for the Philippine Art Awards, as well as Ballet Philippines. Supporting the local arts is, according to Nelson, part of the Philip Morris ideal of promoting the culture of the countries where they set up shop.

It’s a noble gesture, and good business sense: the Philippines is in the top 20 world cigarette markets today, and in the top five in Asia. We are, it could be said, a suki, a favored customer. And Philip Morris International (Philippines) Manufacturing Inc. is setting up to be a major player in the Asian region, a major hub in the international company’s production.

What direction is Philip Morris Philippines taking in the near future?

"Well, from what I see, it’s all forward and upward, at this point. On the international level, we’re the world’s largest tobacco company. We’re exploring markets in China, which is, needless to say, a huge, huge market. In the Philippines, we’re just cementing Marlboro’s position as a leading brand and we’re working on making Philip Morris cigarettes the leading menthol brand. For now, it’s a good prognosis."

And he’s not just blowing smoke.