Philip Morris USA offers two primary trade programs, one for wholesalers who directly buy from us and distribute our products to other wholesalers or to retailers; and one for retailers who sell our products. These programs are designed to help us and our trade partners succeed in the cigarette category in a responsible manner.
Wholesale Leaders is a performance-based trade program designed to support the responsible, timely and efficient distribution of PM USA’s products to retail stores.
Wholesale Leaders was developed on the following principles:
- Offer the wholesale community a pay-for-performance program
- Obtain accurate and timely shipment data for all tobacco products
- Support PM USA’s brands and promotions
- Continue to promote the responsible distribution of PM USA’s products
Retail Leaders is a merchandising program that is designed to create retailer alignment with PM USA by offering incentives to best present our brands to adult smokers. Retail Leaders is developed on the following category management principles, each of which is designed to help retailers best meet the preferences of adult cigarette smokers:
Our trade program has a variety of merchandising options for retailers to choose from. These options are designed to offer retailers flexible choices to best meet the needs of each store. Retail Leaders includes several features to help prevent underage access to tobacco products and to manage the category in a responsible manner. The Food and Drug Administration regulates the marketing and sale of cigarettes at retail, including requiring retailers to merchandise cigarettes in a non-self-service manner.
However, in addition to requiring that retailers comply with applicable laws and regulations, the Retail Leaders program also requires retailers to take additional measures that are not mandated by federal law, including:
- training store personnel who sell tobacco products using We Card® or equivalent training;
- displaying We Card or equivalent signage;
- using an age verification tool;
- placing retail signage that tells adults not to buy tobacco products for kids; and
- adhering to the Master Settlement Agreement.
To encourage retailers to take further responsible retailing measures, we offer additional financial incentives to retailers who refrain from placing any cigarettes, cigarette signs or brand imagery associated with cigarettes on top of or below the front of the selling counter that is closest or in front of the primary location in which cigarettes are merchandised. The Retail Leaders Program also includes limits on the location, size and the amount of PM USA interior and exterior signs at retail.
We believe by engaging with our business partners and maintaining a strong focus on satisfying adult tobacco consumers, we will continue to support our mutual success.