Philip Morris International Inc. engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States of America. The company’s products are sold in approximately 180 markets. Its portfolio comprises both international and local brands. The company’s portfolio of international and local brands is led by Marlboro, an international cigarette. Marlboro is complemented in the premium-price category by Merit, Parliament, and Virginia Slims. Its major mid-price brands include L&M and Chesterfield. Other major international brands include Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also owns various primary local cigarette brands, such as Sampoerna, Dji Sam Soe, and U Mild in Indonesia; Fortune, Champion, and Hope in the Philippines; Diana in Italy; Optima and Apollo-Soyuz in Russia; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. Geographic Regions The company divides its markets into four geographic regions, including the European Union (EU) Region is headquartered in Lausanne, Switzerland and covers all the EU countries except for Slovenia, Bulgaria, Croatia and Romania, and also comprises Switzerland, Norway and Iceland, which are linked to the EU through trade agreements; the Eastern Europe, the Middle East & Africa (EEMA) region is also headquartered in Lausanne and includes Eastern Europe, the Balkans (including Slovenia, Bulgaria, Croatia and Romania), Turkey, the Middle East and Africa and its international duty free business; the Asia Region is headquartered in Hong Kong and covers all other Asian markets, as well as Australia, New Zealand and the Pacific Islands; and the Latin America & Canada Region is headquartered in New York and covers the South American continent, Central America, Mexico, the Caribbean, and Canada. Distribution The four main types of distribution that the company uses worldwide include direct sales and distribution, where the company has set up its own distribution directly to retailers; distribution through single independent distributors who are responsible for distribution in a single market; zonified distribution, where distributors are assigned a territory within a market to enable them to obtain a suitable return on their investment; and distribution through national or regional wholesalers that then supply the retail trade. In various markets, the company also directly supplies key accounts, including gas stations, retail chains, and supermarkets. Intellectual Property The company owns the trademark rights to its principal brands, including Marlboro, or has the right to use them in various countries where the company uses them. In addition, it has approximately 4,200 granted patents worldwide and approximately 3,400 pending patent applications. Seasonality The company’s business segments are not significantly affected by seasonality, although in certain markets cigarette consumption trends rise during the summer months due to longer daylight time and tourism. Significant Events In 2013, the company established a strategic framework with Altria under which Altria will make available its e-cigarette products to it for commercialization outside the United States, and it would make available two of its candidate reduced-risk tobacco products exclusively to Altria for commercialization in the United States. In 2013, the company acquired from Megapolis Investment BV a 20% equity interest in Megapolis Distribution BV, the holding company of CJSC TK Megapolis, the company’s distributor in Russia. In 2013, the company acquired a 49% equity interest in the United Arab Emirates-based Arab Investors-TA (AITA). The company holds an approximate 25% economic interest in Societe des Tabacs Algero-Emiratie (STAEM), an Algerian joint venture which is 51% owned by AITA and 49% bthe Algerian state-owned enterprise Societe Nationale des Tabacs et Allumettes SpA. In October 2014, Philip Morris International, Inc. opened its first pilot plant for the production of potentially reduced-risk products. History Philip Morris International Inc., a Virginia holding company, was incorporated in 1987.
philip morris international
(PMI:SIX Swiss Ex)
120 Park Avenue
New York, NY 10017
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