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Philip Morris International

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Philip Morris International Inc.
Company typePublic
IndustryTobacco
Founded1900; 124 years ago (1900)
HeadquartersNew York City, New York, USA
Area served
Worldwide (excluding the United States)
Key people
Louis Camilleri (Chairman)
André Calantzopoulos (CEO)
ProductsCigarettes, cigars, Codentify, fine-cut rolling tobacco, snuff, rolling papers and tubes
RevenueIncrease US$80.106 billion (2014)[1]
Decrease US$11.702 billion (2014)[1]
Decrease US$7.658 billion (2014)[1]
Total assetsDecrease US$35.187 billion (2014)[1]
Total equityDecrease US$12.629 billion (2014)
Number of employees
82,500 (2014)[1]
SubsidiariesSampoerna
PMFTC, Inc.
Benson & Hedges
Papastratos Philip Morris International
Websitewww.pmi.com

Philip Morris International Inc. (PMI) (NYSE: PM) is an American global cigarette and tobacco company, with products sold in over 180 countries 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.", while Altria focuses on the United States.[2] 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's operational headquarters are in Lausanne, Switzerland, although the corporate headquarters remain in New York. It 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[3] 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.

Philip Morris is a long-term main sponsor of the Scuderia Ferrari Formula One team.[4]

History

The company states its history is traced to Mr. Philip Morris’s 1847 opening of a single shop on London’s Bond Street which sold tobacco and cigarettes.[5]

The current Operations Center of the company is located in Lausanne, Switzerland,[6] it owns 7 of the top 15 tobacco brands in the world.[7]

In April 2014, Philip Morris announced that it would close its Moorabbin plant in Australia by the end of 2014 after operating for 60 years, due to the gradual decline of sales in the last ten years and difficulties conforming to 2010 Australian government regulation about reducing fire risks.[8]

In 2015 it sold 850 billion cigarettes.[9]

Brands

Philip Morris factory in Russia

Philip Morris International has six multi-billion US$ brands including:
1. Dji Sam Soe 234 was launched on 1913 and is a brand of Kretek cigarettes. It is the best seller of Kretek cigarettes in Indonesia.
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.[10]
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 a Mild Kretek cigarette sold in 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, Good Companion, 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

Information from company website.[11]

Charitable giving

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.[12]

R&D

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." It says the focus of the program is reducing the levels of toxic chemical compounds.[13] There is so far no independent research which confirms the production of a reduced risk product.

Controversies and public health disputes

In 2010, the company lobbied against Uruguay's strong anti-smoking laws[14] and filed a complaint against the country (Philip Morris v. Uruguay) under the Switzerland-Uruguay bilateral investment treaty.[15] On July 8, 2016, the International Centre for Settlement of Investment Disputes ruled in favour of Uruguay.[16]

The Australian Government announced it would introduce 'Tobacco Plain Packaging Laws' on April 29, 2010. Philip Morris International (PMI), arranged for its wholly owned Hong Kong subsidiary Philip Morris Asia (PMA) to 'takeover' two Australian subsidiaries - Philip Morris Australia Limited and Philip Morris Limited on February 23, 2011. 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.[17] It was one of several tobacco companies to launch legal action against the Australian Government.[18] 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 is doing this to lower the rate of deaths related to smoking.

Two challenges to the tobacco plain packaging legislation were heard by the High Court of Australia between 17–19 April 2012: British American Tobacco Australasia Limited and Ors v. Commonwealth of Australia and J T International SA v. Commonwealth of Australia.

On 15 August 2012, the High Court handed down orders for these matters, and found that the Tobacco Plain Packaging Act 2011 is not contrary to s 51(xxxi) of the Constitution. On 5 October 2012 the Court handed down its reasons for the decision. By a 6:1 majority (Heydon J in dissent) the Court held that there had been no acquisition of property that would have required provision of 'just terms' under s51(xxxi) of the Constitution.[19]

On 18 December 2015 the Tribunal instituted by the United Nations Commission on International Trader Law (UNCITRAL)issued a unanimous decision (3-0) agreeing with Australia's position that the Tribunal has no jurisdiction to hear PMA's claim. This was due to the fact that PMI used its wholly owned subsidiary PMA to takeover the Australian-based PM subsidiaries in order to specifically sue the Australian Government for bringing in Plain Packaging laws. PMI was unable to do this itself as the Australia-United States FTA agreement signed in 2004 did not have any ISDS clauses included - by design.[19]

The WTO's Dispute Settlement Body will issues its findings in 'late 2016'.

Philip Morris also sued Norway over the country's ban on displaying tobacco products in stores. It lost the case in 2012.[20] 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.[21]

Philip Morris International has announced an overhaul of its human rights protections of tobacco workers in Kazakhstan and 30 other countries after critical reports.[22]

The company runs a health information web site outlining the health issues of tobacco. However, it has been criticised as merely a "public relations effort" intended to "undermine public health".[23]

In the 1930s, the company's tobacco advertisements 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)).[24]

In February 2015, John Oliver highlighted the company's many international legal cases on an episode of his television show Last Week Tonight. He also attempted to raise awareness for his campaign using the hashtag #JeffWeCan.[25]

Sponsorship

Philip Morris Sports

Philip Morris sponsored sports event include Racing, Football, Badminton, Golf, Cricket, and Ice Hockey.

Philip Morris is a long-term main sponsor of Formula One team Scuderia Ferrari.[26] The sponsorship is subliminal in the logo these days due to restriction in tobacco sponsorship, but Marlboro-branded Ferrari and McLaren cars won several world titles with famous drivers such as Alain Prost, Ayrton Senna and Michael Schumacher. Philip Morris also sponsored several title winners in MotoGP in road racing and Indy Cars. The Ferrari Formula One deal before direct sponsorships was banned was estimated to be worth £45 million a year as well as paying the multi-million salary of Schumacher.[27] The current deal is estimated to be even more lucrative, in spite of its logo not being legally allowed to be displayed on the car.[28]

Philip Morris Racing Team outside the global series' sponsored by Marlboro & Dji Sam Soe 234, include 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.

Philip Morris Football is sponsored by Dji Sam Soe 234 include Copa Indonesia (now Piala Indonesia)

Philip Morris Badminton is sponsored by Marlboro include Thomas Cup and Uber Cup from 1984 until 1988 and sponsored by Sampoerna include Thomas Cup and Uber Cup 1996.

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 Cricket is sponsored by Benson & Hedges include Benson & Hedges Cup.

Philip Morris Ice Hockey is sponsored by Benson & Hedges since 1992 until 2000 include 8th Autumn Cup.

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.

Philip Morris Concert is sponsored by Dji Sam Soe 234 Super Premium include Jazz Concert.

References

  1. ^ a b c d e "PMI.com Annual Report".
  2. ^ "Altria to spin off Philip Morris International". AP/MSNBC. 29 August 2007. Retrieved 19 December 2011.
  3. ^ WHO Report on the Global Tobacco Epidemic, 2008: the MPOWER package (PDF). Geneva: World Health Organization. 2008. ISBN 978-92-4-159628-2.
  4. ^ "Philip Morris International". Scuderia Ferrari. Retrieved 31 March 2015.
  5. ^ "PMI.com Our History". {{cite web}}: line feed character in |title= at position 9 (help)
  6. ^ "Where to find us." Philip Morris International. Retrieved on 19 October 2009.
  7. ^ "PMI Factsheet" (PDF). PMI. Retrieved 19 December 2011.
  8. ^ Michael Janda. "Philip Morris to quit Australian cigarette manufacturing". Retrieved September 9, 2014.
  9. ^ "Cigarettes: Smoke signals".
  10. ^ Felberbaum, Michael (June 26, 2014). "Philip Morris Int'l to Sell Marlboro HeatSticks". Richmond, Virginia: ABC News. AP. Retrieved June 28, 2014.
  11. ^ "PMI.com Board of Directors". {{cite web}}: line feed character in |title= at position 9 (help)
  12. ^ "Our Charitable Giving Program". PMI. Retrieved 19 December 2011.
  13. ^ "R&D at PMI". PMI. Retrieved 19 December 2011.
  14. ^ Rory Carroll. Uruguay Bows to pressure over anti-smoking legislation. Guardian 27 July 2010
  15. ^ BBC (12 March 2010). "Tabacalera Philip Morris demanda a Uruguay" (in Spanish). Retrieved 15 November 2010.
  16. ^ "Phillip Morris loses tough-on-tobacco lawsuit in Uruguay". Reuters. 8 July 2016. Retrieved 9 July 2016.
  17. ^ Klya Tienhaara and Thomas Faunce Gillard Must Repel Big Tobacco's Latest Attack. Canberra Times 28 June 2011
  18. ^ "Plain packaging challenge faces High Court". ABC News. Retrieved 12 July 2012.
  19. ^ a b Australian Government Attorney-Generals Department, retrieved 20 December 2015
  20. ^ "Norway: Prohibition on the visible display of tobacco products at the points of sale". WHO.
  21. ^ "Plain cigarette packing plan sees Philips Morris threaten legal action". London Mercury. 12 August 2014. Retrieved 14 August 2014. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  22. ^ Philip Morris International Overhauls Labor Protections. Human Rights Watch May 22, 2011
  23. ^ Elizabeth A. Smith and Ruth E. Malone, R.N., F.A.A.N., Philip Morris’s Health Information Web Site Appears Responsible but Undermines Public Health, Public Health Nurs.{{citation}}: CS1 maint: multiple names: authors list (link)
  24. ^ Martha N. Gardner; Allan M. Brandt, The Doctors’ Choice Is America’s Choice, Am J Public Health., PMC 1470496 {{citation}}: Unknown parameter |lastauthoramp= ignored (|name-list-style= suggested) (help)
  25. ^ "#jeffwecan Campaign Launch". John Oliver Last Week Tonight.
  26. ^ "Philip Morris International". Scuderia Ferrari. Retrieved 30 March 2015.
  27. ^ Day, Julia (23 February 2001). "Philip Morris strengthens Ferrari ties". The Guardian. Retrieved 31 March 2015.
  28. ^ ESPN F1 Staff (14 June 2011). "Ferrari extends deal with tobacco company Philip Morris". Retrieved 31 March 2015.{{cite news}}: CS1 maint: numeric names: authors list (link)
  • Official website
  • Business data for Philip Morris International:
  • Philip Morris International Profile at Wikinvest
  • CNN Money (2001, July 16). "Morris study blasted: Commissioned study found smokers' early deaths helped Czech Republic."
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