PHILIP MORRIS SHUFFLES EXEC SUITE

Tobacco Unit Chairman Adds CEO Title; Three Others Promoted

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CHICAGO (AdAge.com) -- Exactly five months after installing a new management team at Philip Morris Cos., the global food and tobacco giant announced the promotion of three Philip Morris veterans to new positions at its domestic cigarette unit, Philip Morris USA.

Michael Szymanczyk, who was promoted in March to chairman of Philip Morris USA from president-CEO of the unit with a directive to focus on long-term strategies, including potential Federal Drug Administration regulation and the development of reduced-harm smokes, reassumes the CEO title.

"Part of what Mike was

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charged with when the change took place six months ago was thinking about the business long term," said Ellen Merlo, senior vice president of corporate affairs at Philip Morris. "Mike felt he should create a structure and put in the people who had the unique qualities to focus on the pieces of that structure."

FDA regulation
Philip Morris USA's previous president-CEO, John Nelson, who was promoted to that position in March from president-CEO of Philip Morris International, assumes the new post of president, operations and technology. Mr. Nelson will focus on preparing the company for FDA regulation as well as bringing a reduced-risk cigarette to market.

David Beran was promoted to executive vice president of strategy, communications and consumer contact, from senior vice president of operations. Mr. Beran will oversee "overall communications and monitor societal trends to make sure to keep the company in alignment, which has been a major commitment for Philip Morris," Ms. Merlo said.

Craig Johnson, promoted to executive vice president of sales and distribution from senior vice president of sales and distribution, is responsible for the company's increased focus on retail merchandising and in-store promotions, which "remain a major focus, especially as more traditional means of media are not available to us," Ms. Merlo said.

"There are traditional marketing programs, which are equity-building, and we're not about to abandon that," she said, "but there is a heavier reliance on price promotions at point-of-sale, working with retailers, and that's really critical, especially in a [potentially] post-regulatory environment."

All three executives will report to Mr. Szymanczyk.

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