Not too long ago, Philip Morris changed its name to Altria in order to distance itself from those pesky little cancer sticks it did such a great job of selling—specifically, Marlboro brand cigarettes. But apparently it wasn’t the cigarettes that were the dead weight. Altria is spinning off its Krafts Foods division, which makes Oreos, Tang, and a bunch of other products cigarettes are too good to associate themselves with. The split was originally announced in October; today, Altria’s chief executive, Louis c. Camilleri will set a timetable for the spinoff’s completion (shares have risen 10% since the split was announced).
An analyst from Citigroup, which just can’t seem to catch a break, told the New York Times “The exciting part for me…is that tobacco use today will evolve. It’s unlikely that there will ever be a 100 percent safe cigarette, but we feel that a reduced-risk cigarette is on the horizon.” Sounds like dropping the Kraft Foods fatties was a shrewd move for Altria. With advent of cigarettes that don’t-cause-cancer-but-will-most-likely-still-cause-things-like- Emphysema-discolored-nails-ashtray-smelling-breath-etc, shares are sure to shoot through the roof.
Tobacco’s Stigma Aside, Wall Street Finds a Lot to Like [NYT]