Altria Group, Inc. (Altria) today announced that Murray S. Kessler, Vice
Chair of Altria and President and Chief Executive Officer of UST LLC
(UST), will leave the company at the end of June, having overseen the
completion of the key elements of UST’s integration into Altria.
Following Altria’s acquisition of UST, Mr. Kessler agreed to stay on to
oversee the integration and help complete the transition.
Since closing the transaction in January, Altria has successfully
completed several important integration milestones, including:
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Identifying an additional $50 million in integration cost savings,
taking Altria’s estimated integration cost savings target to $300
million;
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Consolidating the U.S. Smokeless Tobacco Brands and Philip Morris USA
(PM USA) sales forces into a new entity, the Altria Sales &
Distribution Inc., which now services all of Altria’s tobacco
businesses with an organization approximately the same size as PM
USA’s sales force prior to the acquisition; and
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Relocating the U.S. Smokeless Tobacco Company’s (USSTC) headquarters
to Richmond, Virginia.
“Thanks to Murray’s leadership, the integration of UST and its
subsidiaries into the Altria family of companies has gone smoothly,”
said Michael E. Szymanczyk, Chairman and Chief Executive Officer of
Altria, “and we remain on-track to deliver an estimated $300 million in
integration cost savings by 2011. We thank Murray for his efforts and
wish him well in the future.”
"The UST integration has gone exceptionally well thanks to a tremendous
team effort by all involved," said Mr. Kessler. “I am confident that
USSTC and Ste. Michelle Wine Estates are in great hands and have a
bright future.”
Upon Mr. Kessler’s departure, Dan Butler, President of USSTC, will
report to Craig Johnson, Executive Vice President, Altria, who will
continue to lead PM USA as its President and also will provide oversight
to Altria’s other tobacco operating companies and the newly created
sales and distribution and consumer engagement companies.
About Altria
Altria directly or indirectly owns 100% of each of Philip Morris USA (PM
USA), U.S. Smokeless Tobacco Company (USSTC), John Middleton Co.
(Middleton), Ste. Michelle Wine Estates (SMWE), and Philip Morris
Capital Corporation. In addition, Altria holds a continuing economic and
voting interest in SABMiller plc. The brand portfolios of Altria’s
tobacco operating companies include such well-known names as Marlboro,
Copenhagen, Skoal and Black & Mild. SMWE produces and
markets premium wines sold under 20 different labels including Chateau
Ste. Michelle, Columbia Crest, Stag’s Leap Wine Cellars and Erath,
as well as exclusively distributes and markets Antinori products in the
United States. Trademarks and service marks related to Altria or its
operating companies referenced in this release are the property of, or
licensed by, Altria or its subsidiaries. More information about Altria
is available at www.altria.com.
ALCS Media Relations
804-484-8897
