THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, March 22, 1996 TAG: 9603220544
SECTION: BUSINESS PAGE: D3 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: RICHMOND LENGTH: Short : 50 lines
Philip Morris Cos. Inc. plans to run advertisements in national newspapers today to challenge claims that the company manipulates nicotine levels in its cigarettes to keep smokers addicted.
``What does Philip Morris have to say about the allegation of `nicotine manipulation?' . . . Plenty, '' the ads say in bold letters.
They say the company works hard to maintain the consistency and quality of its products but ``quality control . . . does not constitute `manipulation.' '' The ads invite customers to call the company for information on how cigarettes are made.
The Food and Drug Administration on Monday released affidavits in which three former research and production employees from Philip Morris' Richmond operations alleged the company systematically adjusts and tests nicotine levels to keep smokers ``hooked.''
The new disclosures prompted the FDA to reopen a public comment period for 30 days on its proposal to regulate nicotine as a drug.
In an interview to be broadcast on CBS News' ``60 Minutes'' Sunday, Ian Uydess, who resigned as Philip Morris senior scientist in 1989, said the company resisted making a safer cigarette because of worries about lawsuits and losing market share. CBS released an excerpt from the interview Thursday.
In the affidavits released Monday, Uydess said Philip Morris used nicotine to keep smokers buying its products.
Meanwhile, Philip Morris Chairman and Chief Executive Officer Geoffrey C. Bible sent a two-page memo to 151,000 employees in which he said the allegations are nothing new. ``We've been through this before and we'll go through this again,'' Bible said. ``We do not `manipulate' nicotine levels in our cigarettes.'' Of the affidavits, Bible wrote, ``Much of what is contained in them is not new and, in fact, a great deal of it has been in the public literature for years.''
As the allegations sent shock waves from Wall Street to the White House, Bible sought to reassure employees that the world's largest tobacco company would survive its latest challenge.
``I am proud to be a part of this great company and I promise you we will continue to fight for Philip Morris,'' Bible said.
Philip Morris' stock dropped by 9 percent Monday and Tuesday. It regained some ground Wednesday, but on Thursday lost 2 7/8 to close at 86 5/8. by CNB