Philip Morris International
|Public (NYSE: PM)
S&P 500 Component
|Headquarters||New York City, New York, USA|
|Louis Camilleri (Chairman)
André Calantzopoulos, (CEO)
|Products||Cigarettes, cigars, fine-cut rolling tobacco, snuff, rolling papers and tubes|
|Revenue||US$ 80.029 billion (2013)|
|US$ 13.515 billion (2013)|
|US$ 8.576 billion (2013)|
|Total assets||US$ 38.168 billion (2013)|
|Total equity||US$ -7.766 billion (2013)|
Number of employees
Benson & Hedges
Philip Morris International Inc. (PMI) (NYSE: PM) is an American global cigarette and tobacco company, with products sold in over 200 countries with 15.6% of the international cigarette market outside the United States. The most recognized and best selling product of the company is Marlboro.
Until a spin-off in March 2008, Philip Morris International was an operating company of Altria Group. Altria explained the spin-off, arguing PMI would have more "freedom" outside the constraints of US corporate ownership in terms of potential litigation and legislative restrictions to "pursue sales growth in emerging markets." The shareholders in Altria at the time were given shares in PMI, which was listed on the London Stock Exchange and other markets.
The company is headquartered in New York City, but does not operate in the United States, with Philip Morris brands there still owned by PMI's former owner Altria.
Because tobacco, the main constituent of cigarettes, is the single greatest cause of preventable death globally and is addictive, the company's operations (and its competitors) are highly controversial and are increasingly the subject of litigation and restrictive legislation from governments concerned about the health impacts of its products.
Its brands are Marlboro, Dji Sam Soe 234, L&M, Longbeach, Marathon, Minak Djinggo, ST Dupont Paris, U Mild, Philip Morris, Red and White, Basic, Bond Street, Chesterfield, Parliament, Lark, Merit, Morven Gold, Muratti, Skjold, Multifilter, Virginia Slims, Benson & Hedges (with British American Tobacco, Gallaher Group, and Japan Tobacco), Escort (with British American Tobacco and Imperial Tobacco), John Player & Sons (with British American Tobacco and Imperial Tobacco), and Peter Stuyvesant (with British American Tobacco and Imperial Tobacco).
On January 1, 2005, Philip Morris International acquired PT HM Sampoerna Tbk (1st Indonesian biggest tobacco company), PT Nojorono Tobacco International Indonesia (3rd Indonesian biggest tobacco company), PT Karya Dibya Mahardika, and M Nitisemito. Philip Morris International buy stake the four Indonesian tobacco companies from 60% until 100%. And on January 1, 2005, that four Indonesian tobacco companies is the subsidiaries of Philip Morris International.
In 2007, PMI sold 831 billion cigarettes, or the biggest non-government tobacco company in the world by volume.
With its Operations Center based in Lausanne, Switzerland, it owns 7 of the top 15 tobacco brands in the world  and has a mix of international and local products, which are produced in more than 50 factories around the world. PMI employs 75,600 people worldwide.
In February 2010, Philip Morris Philippines Manufacturing Inc. (PMPMI), an affiliate of PMI, and Fortune Tobacco Corporation (FTC) of Lucio Tan have signed an agreement to unite their respective business activities to a new company to be called PMFTC, with each party holding an equal economic interest. The Chairman of PMFTC will be Mr. Lucio Tan, Chairman of FTC. PMI will manage the day-to-day operations of PMFTC.
In April 2014, Philip Morris announced to close its Moorabbin plant in Australia by the end of 2014 after 60 years operation due to gradual decline sales in the last ten years and difficult to conform with 2010 Australian Government Regulation about reducing fire risks.
Philip Morris International has six multi-billion US$ brands including:
1. Dji Sam Soe 234 was launched on 1913 and the premium brands of Kretek cigarette. Because as the premium product, Dji Sam Soe 234 is valued with the very expensive value around the Indonesia, IDR 10.000,00 for contents of 10 sticks, IDR 12.000,00 for contents of 12 sticks, IDR 16.000,00 for contents of 16 sticks, IDR 20.000,00 for contents of 20 sticks, and IDR 50.000,00 for contents of 50 sticks on tin packaging. This brands is the best seller of Kretek cigarette on Indonesia with 10.000.000.000 sticks.
2. L&M was launched by Liggett & Myers on 1953 with tagline : "American cigarettes of the highest quality with the best filter". L&M variants include full flavor shorts, full flavor 100s, lights, ultra lights, menthol shorts, menthol 100s, menthol light shorts, menthol light 100s, Turkish Blend shorts, Turkish Blend 100s, and L&M Mild Kretek.
3. Longbeach include on Australia and Indonesia on 1999. Longbeach variant include : Longbeach Filter and Longbeach Mild.
4. Marlboro was launched on 1904. Marlboro is the premium brand. Marlboro variants include : Marlboro Special, Marlboro Menthol, Marlboro Lights, Marlboro Lights Menthol, Marlboro Mix-9 Filter Kretek, Marlboro Flavor Plus, Marlboro Black Menthol, and Heatsticks, a heated tobacco product.
5. ST Dupont Paris is the brand cigarette designed by Simon Tissot Dupont on 1902. With the black packaging. ST Dupont Paris variants include : filter, lights, menthol, and menthol lights.
6. U Mild was launched on Indonesia on May 22, 1998 after Indonesian revolution. U Mild is the Mild Kretek cigarette and the premium brand of Indonesia.
Its main brands are Dji Sam Soe 234, L&M, Longbeach, Marlboro, Minak Djinggo, ST Dupont Paris, U Mild, Philip Morris, Red and White, Basic, Bond Street, Chesterfield, Parliament, Lark, Merit, Morven Gold, Muratti, Skjold, Multifilter, Virginia Slims, Benson & Hedges (with British American Tobacco, Gallaher Group, and Japan Tobacco), Escort (with British American Tobacco and Imperial Tobacco), John Player & Sons (with British American Tobacco and Imperial Tobacco), and Peter Stuyvesant (with British American Tobacco and Imperial Tobacco)..
Local brands include : Rym, Gauloises (with Imperial Tobacco), Dji Sam Soe 234, L&M, Longbeach, Marlboro, Minak Djinggo, ST Dupont Paris, U Mild, Nassim, and Winston (with Japan Tobacco) (Algeria), Philip Morris and Marlboro (Argentina), Marlboro and L&M (Belgium), Marlboro, L&M, Shelton, Dallas, Muratti, Luxor, Sampoerna A, Chancellor, and Fortuna (Brazil), Marlboro, Parliament, Muratti, Assos, L&M, Eve, and Virginia Slims (Bulgaria), Benson & Hedges (with British American Tobacco, Gallaher Group, and Japan Tobacco), Belmont, Craven A, Rothmans International (with British American Tobacco), Canadian Classics, Number 7, Accord, and Mark Ten (Canada), Marlboro (China), Boston, Caribe, Green, Derby, Marlboro, Pielroja, and American Gold (Colombia), Derby, Marlboro, and Next (Costa Rica), Marlboro, L&M, and Skjold (Denmark), Nacional, Marlboro, Next, and Lider (Dominican Republic), Marlboro, Líder, Lark, and Philip Morris (Ecuador), L&M, Marlboro, Next, and Merit (Egypt), L&M, Next, and Marlboro (Estonia), Marlboro and ST Dupont Paris (France), Marlboro (Finland), Marlboro, L&M, and F6 (Germany), Marlboro, Wismilak Diplomat (with Japan Tobacco), Rubios, and Lider (Guatemala), Marlboro, Virginia Slims, Multifilter, and Bond Street (Hungary), Dji Sam Soe 234, L&M, Longbeach, Marlboro, ST Dupont Paris, Sampoerna A, and U Mild (bold font meaning Philip Morris International's main brands) (Indonesia), Marlboro, Merit, Philip Morris, Chesterfield, Virginia Slims, and Diana (Italy), Marlboro, Lark, Parliament, Philip Morris, and Virginia Slims (Japan), Marlboro, Parliament, L&M, Bond Street, Astra, Prima, Polet, Medeo, Kazakhstanskye, and Souz Apollon (Kazakhstan), Marlboro, Parliament, Chesterfield, L&M, Bond Street, and Red & White (Latvia), Marlboro, Bond Street, Merit, Chesterfield, Virginia Slims, and Parliament (Lebanon), Marlboro, L&M, Chesterfield, Parliament, Bond Street, Red & White, and Partner (Lithuania), Dji Sam Soe 234, L&M, Longbeach, Marlboro, ST Dupont Paris, and U Mild (Philip Morris International's main brands) (Malaysia), Marlboro, Delicados, Benson & Hedges (with British American Tobacco, Gallaher Group, and Japan Tobacco), Faros, Elegantes, and Chesterfield (Mexico), Fortuna, Gauloises (with Imperial Tobacco, Marlboro, and Marquises, (Morocco), Chesterfield, L&M, and Marlboro, (Netherlands),Philip Morris Red.
The Sampoerna products include Sampoerna A Kretek Teman Yang Asyik (English : Passionate Friends), Sampoerna A Kretek Yang Spesial (English : Most Special), Sampoerna Hijau, Go Ahead (A Mild, Avolution, A Flava Click Mint), Sampoerna A King Size, Sampoerna A International, Sampoerna A Medium, Sampoerna A Exclusive, Sampoerna A King, Sampoerna A Menthol, Sampoerna A Slims, Sampoerna X-Tra, Sampoerna Classics, and Sampoerna Special Edition Millennium 2000.
The Bentoel Group products on 1980-2005 include Bentoel Biru, Bentoel Sejati, Bentoel Merah, Bentoel Mild, Star Mild, X Mild, Rawit, Pr1nsip, and Country.
PMFTC, Inc.'s products include Champion, Fortune and Hope.
Board of Directors
- Harold Brown
- Mathis Cabiallavetta
- Louis C. Camilleri – Chairman
- J. Dudley Fishburn
- Graham Mackay, Chairman and CEO of SABMiller plc
- Sergio Marchionne
- Lucio A. Noto
- Carlos Slim Helú
- Stephen Wolf
The company gives $25 million per year (approximately 0.29% of 2013 net income) to charitable causes worldwide including domestic violence, emergency housing, education, combating extreme poverty, teaching sustainable agriculture techniques in Africa and others.
PMI has a research and development program, and declares its priority to be "developing products with the potential to reduce the risks of smoking-related diseases." They explain the focus of the R&D program is reducing the levels of toxic chemical compounds produced during the process of burning tobacco within a cigarette with what they describe as "new, next generation products."
Controversies and public health disputes
The company has lobbied against Uruguay's strong anti-smoking laws and in 2010 filed a complaint against the country (Philip Morris v. Uruguay) under the Switzerland-Uruguay bilateral investment treaty.
In June 2011, Philip Morris International announced it was using ISDS provisions in the Australia-Hong Kong Bilateral Investment treaty (BIT) to demand compensation for Australia's plain cigarette packaging anti-smoking legislation. It was one of several tobacco companies to launch legal action against the Australian Government. British American Tobacco, Philip Morris, Imperial Tobacco and Japan Tobacco International are taking the Australian government to the High Court of Australia to try to stop the elected government of Australia from introducing plain packaging for tobacco products. The government thinks that by doing this it will lower the death rates of smokers.
Philip Morris also sued Norway over the country's ban on displaying tobacco products in stores. It lost the case in 2012. In August 2014 the company foreshadowed legal action against the UK Government if it went ahead with plans to introduce plain packaging. In a submission to the government, Philip Morris International said it would seek compensation running into "billions of pounds," if the proposed legislation went ahead.
Philip Morris International has announced an overhaul of its human rights protections of tobacco workers in Kazakhstan and 30 other countries after critical reports.
Philip Morris's health information web site appears responsible but undermines public health.
In 1930's, company's tobacco ads were a steady source of income for numerous medical organizations and journals, including the New England Journal of Medicine and the Journal of the American Medical Association (JAMA (journal)).
Philip Morris Sports
Philip Morris Racing Team is sponsored by Marlboro & Dji Sam Soe 234, include Formula One Car Racing, MotoGP Motorcycle Racing (for prohibited motorcycle racing, see on Malaysian Wikipedia : Lumba haram, and see Mat Rempit), Rally Car, and Bicycle Racing Tour d'Indonesia (sponsored by Dji Sam Soe 234). Jordan Grand Prix Car Racing Team is sponsored by Benson & Hedges (with British American Tobacco, Gallaher Group, and Japan Tobacco) from 1996-2005 with tagline : "Be On Edge" (BENSON & HEDGES). Philip Morris Dragon Boat is sponsored by Dji Sam Soe 234.
BRM P180, a member of Philip Morris Racing Team sponsored by Marlboro
Philip Morris Golf is sponsored by Benson & Hedges (with British American Tobacco, Gallaher Group, and Japan Tobacco) include Benson & Hedges International Open and sponsored by Sampoerna include Sampoerna Indonesian Open.
Philip Morris Event
In Jakarta, Indonesia, on 2002, Philip Morris International sponsored Prevention Of Teen Smoking sponsored by Philip Morris International's main brands include Dji Sam Soe 234, L&M, Longbeach, Marlboro, ST Dupont Paris, and U Mild.
- "Altria to spin off Philip Morris International". AP/MSNBC. 29 August 2007. Retrieved 19 December 2011.
- WHO Report on the Global Tobacco Epidemic, 2008: the MPOWER package. Geneva: World Health Organization. 2008. ISBN 978-92-4-159628-2.
- "Where to find us." Philip Morris International. Retrieved on 19 October 2009.
- "PMI Factsheet". PMI. Retrieved 19 December 2011.
- Maria Kiselyova (4 December 2013). "Philip Morris, Japan Tobacco spend $1.5 billion on Russian distributor". Reuters.
- Michael Janda. "Philip Morris to quit Australian cigarette manufacturing". Retrieved September 9, 2014.
- Felberbaum, Michael (June 26, 2014). "Philip Morris Int'l to Sell Marlboro HeatSticks". Richmond, Virginia: ABC News. AP. Retrieved June 28, 2014.
- Philip Morris International Board of Directors
- "Our Charitable Giving Program". PMI. Retrieved 19 December 2011.
- "R&D at PMI". PMI. Retrieved 19 December 2011.
- Rory Carroll. Uruguay Bows to pressure over anti-smoking legislation. Guardian 27 July 2010
- BBC (12 March 2010). "Tabacalera Philip Morris demanda a Uruguay" (in Spanish). Retrieved 15 November 2010.
- Klya Tienhaara and Thomas Faunce Gillard Must Repel Big Tobacco's Latest Attack. Canberra Times 28 June 2011
- "Plain packaging challenge faces High Court". ABC News. Retrieved 12 July 2012.
- "Norway: Prohibition on the visible display of tobacco products at the points of sale". WHO.
- "Plain cigarette packing plan sees Philips Morris threaten legal action". London Mercury. 12 August 2014. Retrieved 14 August 2014.
- Philip Morris International Overhauls Labor Protections. Human Rights Watch May 22, 2011
- Elizabeth A. Smith, Ph.D. and Ruth E. Malone, R.N., Ph.D., F.A.A.N., Philip Morris’s Health Information Web Site Appears Responsible but Undermines Public Health, Public Health Nurs.
- Martha N. Gardner, PhD and Allan M. Brandt, PhD, The Doctors’ Choice Is America’s Choice, Am J Public Health.
- Official website
- Philip Morris International Profile at Wikinvest
- CNN Money (2001, July 16). "Morris study blasted: Commissioned study found smokers' early deaths helped Czech Republic."