Philip Morris International

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Philip Morris International Inc.
Public
Traded as NYSE: PM
S&P 500 Component
Industry Tobacco
Founded 1900; 115 years ago (1900)
Headquarters Lausanne, Switzerland
Area served
 Worldwide (excluding the United States)
Key people
 Louis Camilleri (Chairman)
André Calantzopoulos, (CEO)
Products Cigarettes, cigars, fine-cut rolling tobacco, snuff, rolling papers and tubes
Revenue Increase US$ 80.106 billion (2014)[1]
Decrease US$ 11.702 billion (2014)[1]
Decrease US$ 7.658 billion (2014)[1]
Total assets Decrease US$ 35.187 billion (2014)[1]
Total equity Decrease US$ -12.629 billion (2014)
Number of employees
 82,500 (2014)[1]
Subsidiaries Sampoerna
PMFTC, Inc.
Benson & Hedges
Website www.pmi.com

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.", 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 is headquartered in Lausanne, Switzerland. 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.

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).

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

History[edit]

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]

Brands[edit]

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 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.[9]
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.
Benson & Hedges 
Dji Sam Soe 234 
L&M 
Longbeach 
Marlboro 
ST Dupont Paris 
Basic 
Bond Street 
Lark 
Merit 

Board of Directors[edit]

Charitable giving[edit]

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.[10]

R&D[edit]

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.[11] There is so far no independent research which confirms the production of a reduced risk product.

Controversies and public health disputes[edit]

In 2010, the company has lobbied against Uruguay's strong anti-smoking laws[12] and filed a complaint against the country (Philip Morris v. Uruguay) under the Switzerland-Uruguay bilateral investment treaty.[13]

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.[14] It was one of several tobacco companies to launch legal action against the Australian Government.[15] 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 rate of deaths related to smoking.

Philip Morris also sued Norway over the country's ban on displaying tobacco products in stores. It lost the case in 2012.[16] 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.[17]

Philip Morris International has announced an overhaul of its human rights protections of tobacco workers in Kazakhstan and 30 other countries after critical reports.[18]

Philip Morris's health information web site appears responsible but undermines public health.[19]

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)).[20]

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 [21]

Sponsorship[edit]

Philip Morris Sports[edit]

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.[22] 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.[23] 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.[24]

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[edit]

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[edit]

  1. ^ a b c d e PMI 2014 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. ^ http://www.pmi.com/eng/about_us/pages/our_history.aspx
  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. ^ Felberbaum, Michael (June 26, 2014). "Philip Morris Int'l to Sell Marlboro HeatSticks". Richmond, Virginia: ABC News. AP. Retrieved June 28, 2014. 
  10. ^ "Our Charitable Giving Program". PMI. Retrieved 19 December 2011. 
  11. ^ "R&D at PMI". PMI. Retrieved 19 December 2011. 
  12. ^ Rory Carroll. Uruguay Bows to pressure over anti-smoking legislation. Guardian 27 July 2010
  13. ^ BBC (12 March 2010). "Tabacalera Philip Morris demanda a Uruguay" (in Spanish). Retrieved 15 November 2010. 
  14. ^ Klya Tienhaara and Thomas Faunce Gillard Must Repel Big Tobacco's Latest Attack. Canberra Times 28 June 2011
  15. ^ "Plain packaging challenge faces High Court". ABC News. Retrieved 12 July 2012. 
  16. ^ "Norway: Prohibition on the visible display of tobacco products at the points of sale". WHO. 
  17. ^ "Plain cigarette packing plan sees Philips Morris threaten legal action". London Mercury. 12 August 2014. Retrieved 14 August 2014. 
  18. ^ Philip Morris International Overhauls Labor Protections. Human Rights Watch May 22, 2011
  19. ^ 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. 
  20. ^ Martha N. Gardner, PhD and Allan M. Brandt, PhD, The Doctors’ Choice Is America’s Choice, Am J Public Health. 
  21. ^ "#jeffwecan Campaign Launch". John Oliver Last Week Tonight. 
  22. ^ "Philip Morris International". Scuderia Ferrari. Retrieved 30 March 2015. 
  23. ^ Day, Julia (23 February 2001). "Philip Morris strengthens Ferrari ties". The Guardian. Retrieved 31 March 2015. 
  24. ^ ESPN F1 Staff (14 June 2011). "Ferrari extends deal with tobacco company Philip Morris". Retrieved 31 March 2015. 

External links[edit]

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