MEMO SHOWS WORRY ABOUT DECLINE IN TEEN SMOKING.

Byline: Associated Press 

Philip Morris, evidently proud that its cigarette brands had the highest share of young smokers, was alarmed by trends showing a decrease in the number of teen-age smokers, a 1981 company memo states.

The memo's opening summary reads ``the smoking patterns of teenagers are particularly important to Philip Morris,'' and noted that ``it is during the teenage years that the initial brand choice is made.''

``At least a part of the success of Marlboro Red during its most rapid growth period was because it became the brand of choice among teenagers who then stuck with it as they grew older,'' the memo read.

The document appears to contradict the company's claims in recent years that it was not interested in attracting underage smokers.

The 50-page report warned Philip Morris' vice president for research of an industrywide sales slump because the number of teen-age smokers and the teen population overall had declined between 1968 and 1979.

Philip Morris had the largest market share in seven of the 11 cigarette brands whose smokers had a median age of under 30, the memo noted.

The memo appears to lament the perils to the bottom line posed by the teen population decline, saying, ``We will no longer be able to rely on a rapidly increasing pool of teenagers from which to replace smokers lost through normal attrition.''

Another portion of the memo said: ``Because of our high share of the market among the youngest smokers, Philip Morris will suffer more than the other companies from the decline in the number of teenage smokers.''

Michael York, a Washington-based lawyer representing Philip Morris, said the document was based on information already available to the public and was not intended for marketing purposes.

``It was written apparently for long-term planning; it doesn't propose any strategy or marketing. Just the contrary. This memo is absolutely consistent with the company's position that kids should not smoke,'' York said.

Philip Morris spent millions of dollars in an advertising campaign this summer aimed at discouraging children from smoking.

But critics scoffed at York's contention, saying the memo suggests a company keeping track of its market.

``They're telling us how important the market is to them,'' said William Novelli, president of Campaign for Tobacco-Free Kids. The Washington-based organization obtained the memo about a week ago from two different sources.

``What this does say is that they're terribly interested in teen-age smoking and they know quite a bit about it,'' said Ron Todd, director of tobacco control for the American Cancer Society.