Difference between revisions of "Philip Morris International"

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|Miroslaw Zielinski
 
|Miroslaw Zielinski
|President, Science & Innovation
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|Chief New Ventures Officer (fmr. President of Science & Innovation)
 
|Mr. Zielinski joined Philip Morris International as a merchandiser in 1991 in his native Poland. He progressed through a number of senior sales and marketing positions at Philip Morris Polska before moving to Kiev, where he was appointed Managing Director of PMI’s Ukrainian affiliate in 1999. In 2002 he became Managing Director, Worldwide Duty Free and served as President, Latin America & Canada from April 2003 until March 2010, when he was named President, Eastern Europe, Middle East & Africa Region and PMI Duty Free. In July 2015 Mr. Zielinski was appointed President, Reduced-Risk Products. 
 
|Mr. Zielinski joined Philip Morris International as a merchandiser in 1991 in his native Poland. He progressed through a number of senior sales and marketing positions at Philip Morris Polska before moving to Kiev, where he was appointed Managing Director of PMI’s Ukrainian affiliate in 1999. In 2002 he became Managing Director, Worldwide Duty Free and served as President, Latin America & Canada from April 2003 until March 2010, when he was named President, Eastern Europe, Middle East & Africa Region and PMI Duty Free. In July 2015 Mr. Zielinski was appointed President, Reduced-Risk Products. 
 
Mr. Zielinski has a master’s degree in economy and foreign trade from the Warsaw School of Statistics and Economics.
 
Mr. Zielinski has a master’s degree in economy and foreign trade from the Warsaw School of Statistics and Economics.
 
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In a press release sent to the media on 22nd May 2019, Philip Morris International announced a creation of four new roles - Chief Consumer Officer (Stefano Volpetti), Chief Life Sciences Officer (Dr. John O’Mullane), Chief Product Officer (TBC) and Chief New Ventures Officer (Mirek Zielinski). All four executive positions will report to the company's CEO André Calantzopoulos. <ref> [https://finance.yahoo.com/news/philip-morris-international-strengthens-organizational-184400779.html Philip Morris International Strengthens Organizational Capabilities to Realize Its Vision for a Smoke-Free Future], ''Yahoo'', 22 May 2019, Accessed 22 May 2019 </ref>
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In April 2019, Philip Morris International promoted J.B. Simko to Vice President of External Affairs. <ref>[https://business.financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/philip-morris-international-bolsters-washington-d-c-presence-with-key-staff-appointments Philip Morris International Bolsters Washington, D.C., Presence with Key Staff Appointments], ''Financial Post'', 2 April 2019, Accessed April 2019 </ref>
  
 
===Board Members===
 
===Board Members===
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===Factory Openings and Closures===
 
===Factory Openings and Closures===
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In 2019, Philip Morris Pakistan, an affiliate of Philip Morris International, announced shutting down one of its cigarettes manufacturing facilities. <ref> [https://www.thenews.com.pk/print/439758-philip-morris-shuts-down-tobacco-manufacturing-facility Philip Morrisshuts down manufacturing facility], The News, 5 March 2019, Accessed April 2019 </ref>
  
 
Russian Daily Kommersant.ru reported Philip Morris International will invest RUB 13 billion at the Philip Morris Izhora plant in the Leningrad Region of Russia. <ref>[http://www.kommersant.ru/doc/3786719 Philip Morris вложит 13 млрд рублей в развитие производства табачных стиков], Kommersant.ru, October 2018, Accessed November 2018 </ref> In May 2018, the factory of Philip Morris International's Greek affiliate (Papastratos) in Aspropyrgos ceased cigarette production and is now exclusively producing HEETS, the tobacco units used with IQOS, the company’s most advanced smoke-free product.<ref> [https://finance.yahoo.com/news/philip-morris-international-shifts-entire-123100038.html Philip Morris International Shifts Entire Capacity of Its Cigarette Factory in Greece to Smoke-Free Products], ''Yahoo! Finance'',  March 2018, Accessed September 2018</ref>
 
Russian Daily Kommersant.ru reported Philip Morris International will invest RUB 13 billion at the Philip Morris Izhora plant in the Leningrad Region of Russia. <ref>[http://www.kommersant.ru/doc/3786719 Philip Morris вложит 13 млрд рублей в развитие производства табачных стиков], Kommersant.ru, October 2018, Accessed November 2018 </ref> In May 2018, the factory of Philip Morris International's Greek affiliate (Papastratos) in Aspropyrgos ceased cigarette production and is now exclusively producing HEETS, the tobacco units used with IQOS, the company’s most advanced smoke-free product.<ref> [https://finance.yahoo.com/news/philip-morris-international-shifts-entire-123100038.html Philip Morris International Shifts Entire Capacity of Its Cigarette Factory in Greece to Smoke-Free Products], ''Yahoo! Finance'',  March 2018, Accessed September 2018</ref>
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==Products==
 
==Products==
 
Philip Morris International cigarettes are sold in more than 180 markets, and in many of these markets they hold the number one or number two market share position. Philip Morris International have a wide range of premium, mid-price and low-price brands. Philip Morris International portfolio comprises both international and local brands and is led by Marlboro, the world’s highest-selling international cigarette, which accounted for approximately 35 percent  of the company's total 2017 cigarette shipment volume. Marlboro is complemented in the premium-price category by Parliament. Other leading international cigarette brands are Bond Street, Chesterfield, L&M, Lark and Philip Morris International. These seven international cigarette brands contributed approximately 75 percent  of cigarette shipment volume in 2017.<ref name="PMI_2017_FORM_10K">SECURITIES AND EXCHANGE COMMISSION website, [https://www.sec.gov/Archives/edgar/data/1413329/000141332918000007/pm123117form10kwrapinclfsm.htm PHILIP MORRIS INTERNATIONAL INC. 2017 10-K form], Accessed August 2018</ref> {{rp|1}}
 
Philip Morris International cigarettes are sold in more than 180 markets, and in many of these markets they hold the number one or number two market share position. Philip Morris International have a wide range of premium, mid-price and low-price brands. Philip Morris International portfolio comprises both international and local brands and is led by Marlboro, the world’s highest-selling international cigarette, which accounted for approximately 35 percent  of the company's total 2017 cigarette shipment volume. Marlboro is complemented in the premium-price category by Parliament. Other leading international cigarette brands are Bond Street, Chesterfield, L&M, Lark and Philip Morris International. These seven international cigarette brands contributed approximately 75 percent  of cigarette shipment volume in 2017.<ref name="PMI_2017_FORM_10K">SECURITIES AND EXCHANGE COMMISSION website, [https://www.sec.gov/Archives/edgar/data/1413329/000141332918000007/pm123117form10kwrapinclfsm.htm PHILIP MORRIS INTERNATIONAL INC. 2017 10-K form], Accessed August 2018</ref> {{rp|1}}
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  “If we stop selling cigarettes, somebody else is going to sell them because people buy them." Andre Calantzopoulos, Sky News Interview <ref> [https://www.thesun.co.uk/news/8152387/marlboro-vows-phase-out-cigarettes-smoke-free-vapes/ Marlboro vows to phase out cigarettes smoke-free vapes], ''The Sun'', 9 January 2019, Accessed April 2019 </ref>
  
 
===Key Portfolio===
 
===Key Portfolio===
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According to Philip Morris International's website, the company is engaged in the development and commercialization of smoke-free alternatives to cigarettes. Reduced Risk Products (RRPs) is the term Philip Morris International use to refer to products that present, are likely to present, or have the potential to present less risk of harm to smokers who switch to these products versus continued smoking.
 
According to Philip Morris International's website, the company is engaged in the development and commercialization of smoke-free alternatives to cigarettes. Reduced Risk Products (RRPs) is the term Philip Morris International use to refer to products that present, are likely to present, or have the potential to present less risk of harm to smokers who switch to these products versus continued smoking.
  
Philip Morris International market heated tobacco units under the brand names HEETS, HEETS Marlboro and HEETS FROM MARLBORO, defined collectively as HEETS, as well as Marlboro HeatSticks and Parliament HeatSticks. IQOS was first introduced in Nagoya, Japan in 2014. To date, IQOS is available for sale in key cities in 37 markets and nationwide in Japan.{{r|PMI_2017_FORM_10K|p=1}} Japan is the most developed IQOS launch market in terms of geographic coverage. Heated Tobacco Products accounted for USD 823 million of PMI's revenue during the third quarter, or 11 percent of its USD 7.5 billion total revenue. <ref name="PMI_CNBC">[https://www.cnbc.com/2018/10/23/philip-morris-unveils-new-versions-of-iqos-cigarettes-to-boost-sales.html Philip Morris unveils new smokeless cigarettes in a bid to rev up sales], ''CNBC'', October 2018, Accessed October 2018 </ref> On 23 October 2018, Philip Morris International introduced two new IQOS devices — the IQOS 3 and the IQOS 3 Multi — in the markets where IQOS products are already available, Japan and South Korea. {{r|PMI_CNBC}} In November 2018, Philip Morris International paid journalist to attend the global IQOS 3 and IQOS 3 Multi launch in Tokyo. <ref> [https://thefederalist.com/2018/11/14/happened-tried-iqos-heat-sticks-tokyo/ What happened when I tried IQOS heatsticks in Tokto], ''The Federalist'', November 2018, Accessed December 2018 </ref> Earlier in the year, the company flew a group of African journalists from Malawi, Tanzania, Senegal and Zimbabwe to Johannesburg for a day-long media workshop to promote IQOS. <ref> [https://www.dailymaverick.co.za/article/2018-08-19-professionals-co-opted-to-back-tobacco-giants/ Professionals co-opted to back tobacco giants], Daily Maverick, 19 August 2018, Accessed January 2019 </ref>
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Philip Morris International market heated tobacco units under the brand names HEETS, HEETS Marlboro and HEETS FROM MARLBORO, defined collectively as HEETS, as well as Marlboro HeatSticks and Parliament HeatSticks. IQOS was first introduced in Nagoya, Japan in 2014. PMI increased IQOS availability from 41 to 44 countries. <ref>[https://www.pmi.com/investor-relations/overview/event-details?EventId=5277236 News], Philip Morris International website, 20 February 2019, Accessed April 2019 </ref> Japan is the most developed IQOS launch market in terms of geographic coverage. Heated Tobacco Products accounted for USD 823 million of PMI's revenue during the third quarter, or 11 percent of its USD 7.5 billion total revenue. <ref name="PMI_CNBC">[https://www.cnbc.com/2018/10/23/philip-morris-unveils-new-versions-of-iqos-cigarettes-to-boost-sales.html Philip Morris unveils new smokeless cigarettes in a bid to rev up sales], ''CNBC'', October 2018, Accessed October 2018 </ref> On 23 October 2018, Philip Morris International introduced two new IQOS devices — the IQOS 3 and the IQOS 3 Multi — in the markets where IQOS products are already available, Japan and South Korea. {{r|PMI_CNBC}} In November 2018, Philip Morris International paid journalist to attend the global IQOS 3 and IQOS 3 Multi launch in Tokyo. <ref> [https://thefederalist.com/2018/11/14/happened-tried-iqos-heat-sticks-tokyo/ What happened when I tried IQOS heatsticks in Tokto], ''The Federalist'', November 2018, Accessed December 2018 </ref> Earlier in the year, the company flew a group of African journalists from Malawi, Tanzania, Senegal and Zimbabwe to Johannesburg for a day-long media workshop to promote IQOS. <ref> [https://www.dailymaverick.co.za/article/2018-08-19-professionals-co-opted-to-back-tobacco-giants/ Professionals co-opted to back tobacco giants], Daily Maverick, 19 August 2018, Accessed January 2019 </ref>  Philip Morris International is considering a launch of IQOS in India <ref> [http://www.businessworld.in/article/Juul-Labs-Inc-Plans-India-E-Cigarette-Entry-With-New-Hires-Subsidiary/30-01-2019-166628/ Juul Labs Inc Plans India E-Cigarette Entry With New Hires Subsidiary], ''Business World'', 31 January 2019, Accessed April 2019 </ref>, the Philippines <ref>[https://www.philstar.com/business/2019/02/18/1894497/phillip-morris-sell-heat-not-burn-tobacco-product-phl PM sell heat-not-burn tobacco product], ''Philstar'', 18 February 2019, Accessed April 2019 </ref> and the UAE <ref>[https://www.thenational.ae/uae/health/big-tobacco-firms-plan-launch-of-vaping-products-in-uae-1.840201 Big tobacco firms plans launched vaping products in UAE], ''The National'', 25 April 2019, Accessed April 2019 </ref>
  
 
Philip Morris has 70 IQOS shops in 23 countries, {{r|PMI_Stores}} including a flagship IQOS store in Johannesburg, South Africa. <ref>[https://www.fin24.com/Companies/ICT/philip-morris-opens-first-africa-store-to-stoke-demand-for-alternative-cigarettes-20181116 Philip Morris opens first Africa store to stoke demand for alternative cigarettes], ''Fin 24'', November 2018, Accessed December 2018 </ref> The company's salesmen have been previously caught offering potentially illegal incentives to smokers in UK bars. <ref>[https://www.telegraph.co.uk/news/2018/10/15/tobacco-sales-reps-push-free-drinks-sell-wares/ Tobacco sales reps using 'illegal' tactics to sell their products in pubs], ''The Telegraph'', 15 October 2018, Accessed January 2019 </ref>
 
Philip Morris has 70 IQOS shops in 23 countries, {{r|PMI_Stores}} including a flagship IQOS store in Johannesburg, South Africa. <ref>[https://www.fin24.com/Companies/ICT/philip-morris-opens-first-africa-store-to-stoke-demand-for-alternative-cigarettes-20181116 Philip Morris opens first Africa store to stoke demand for alternative cigarettes], ''Fin 24'', November 2018, Accessed December 2018 </ref> The company's salesmen have been previously caught offering potentially illegal incentives to smokers in UK bars. <ref>[https://www.telegraph.co.uk/news/2018/10/15/tobacco-sales-reps-push-free-drinks-sell-wares/ Tobacco sales reps using 'illegal' tactics to sell their products in pubs], ''The Telegraph'', 15 October 2018, Accessed January 2019 </ref>
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    “We are building our future on smoke-free products… they are not harmless, they are a much better choice than continued smoking.” Gabriela Wurcel, VP/Corporate Affairs for Latin America and Canada <ref>[https://www.warc.com/newsandopinion/news/philip_morris_seeks_major_transformation/41515 PM seeks major transformation], ''Warc'', 7 January 2019, Accessed April 2019 </ref>
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At the 2018 Consumer Analyst Group of New York Conference, Philip Morris International, CEO André Calantzopoulos read out a statement which said:
 
At the 2018 Consumer Analyst Group of New York Conference, Philip Morris International, CEO André Calantzopoulos read out a statement which said:
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   "2016 was a pivotal year for Philip Morris International, reflecting exciting progress in our transformation from a cigarette company to one that is focused on RRPs. While our cigarette portfolio continued to drive our income growth, we began to see clear signs of the enormous potential for our RRP portfolio.”{{r|PMI_2016_AR}}
 
   "2016 was a pivotal year for Philip Morris International, reflecting exciting progress in our transformation from a cigarette company to one that is focused on RRPs. While our cigarette portfolio continued to drive our income growth, we began to see clear signs of the enormous potential for our RRP portfolio.”{{r|PMI_2016_AR}}
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In february 2019, Philip Morris International said the technology in its new "vaping" products could be used to offer users activity-tracking services and even life insurance rebates. <ref>[https://news.yahoo.com/philip-morris-eyes-tech-gadgets-smoke-free-market-173105773.html PM eyes tea gadgets smoke-are market], ''Yahoo News'', 14 February 2019, Accessed April 2019 </ref> Two months later, the company setup a life insurance venture "Reviti" in the United Kingdom which will see it offer "significant discounts to smokers who quit or switch to one of its alternative products." <ref>[https://www.independent.co.uk/news/health/tobacco-life-insurance-discount-philip-morris-quit-smoking-a8885956.html Tobacco firm Philip Morris launches life insurance company offering discounts to ex-smokers], ''Independent'', 26 April 2019, Accessed April 2019 </ref>
  
 
===Sales of Heated Tobacco products in Japan===
 
===Sales of Heated Tobacco products in Japan===
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===Media and Marketing===
 
===Media and Marketing===
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During the 2019 World Economic Forum gathering in Davos, Wall Street Journal supported a twitter Q&A with Marian Salzman, Senior Vice President Global Communications at Phillip Morris International. <ref> Twitter, [https://twitter.com/mariansalzman/status/1088007584857186304 Wall Street Journal], 23 January 2019, Accessed April 2019 </ref>
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  “You can have all kinds of playbooks and legal guidelines but at the end of the day it comes down to how you engage with people. It’s important that we understand some people are really against cigarettes but they still love people who smoke. So we need to hear that and incorporate it into real time messaging and real-time conversation on Twitter.” Marian Salzman, Senior Vice President Global Communications, Phillip Morris International <ref> [https://www.holmesreport.com/latest/article/cmos-at-davos-the-challenges-of-a-communications-pivot CMOS at Davos the challenges of a communications pivot], ''The Holmes Report'', 23 January 2019, Accessed April 2019 </ref>
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During a fireside chat with Richard James, Philip Morris International’s VP of corporate affairs, North and Northeast Asia, Morris said:  
 
During a fireside chat with Richard James, Philip Morris International’s VP of corporate affairs, North and Northeast Asia, Morris said:  
 
   "These days it is very difficult to separate the corporate brand from the individual product. People will see through anything that isn’t genuine. So what became very important for us was to commit to the conversation about a smoke-free future, and share our aspiration and company vision. This naturally led to consumers, who were smokers, being interested in the new types of products that would help them." <ref>[https://www.marketing-interactive.com/philip-morris-international-how-pr-works-for-a-brand-that-cannot-be-marketed/ Philip Morris International How PR works for a brand that cannot be marketed], ''Marketing Interactive'', November 2018, Accessed December 2018 </ref>
 
   "These days it is very difficult to separate the corporate brand from the individual product. People will see through anything that isn’t genuine. So what became very important for us was to commit to the conversation about a smoke-free future, and share our aspiration and company vision. This naturally led to consumers, who were smokers, being interested in the new types of products that would help them." <ref>[https://www.marketing-interactive.com/philip-morris-international-how-pr-works-for-a-brand-that-cannot-be-marketed/ Philip Morris International How PR works for a brand that cannot be marketed], ''Marketing Interactive'', November 2018, Accessed December 2018 </ref>
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  "In a heavily-regulated environment you have some help from lawyers, so a lot of your message comes from guidelines. But the gutsy part is deciding how far you are going to push it. We’ve re-entered civilised society, but the one thing that we can’t change is that – whether we sell cigarettes or somebody else does – people are going to buy cigarettes." Marian Salzman, Senior Vice President Global Communications, Phillip Morris International  <ref> [https://www.holmesreport.com/latest/article/cmos-at-davos-the-challenges-of-a-communications-pivot CMOS at Davos the challenges of a communications pivot], ''The Holmes Report'', 23 January 2019, Accessed April 2019 </ref>
  
 
Sampoerna (a Phillip Morris International subsidiary in Indonesia) held the Expo 2018 Sampoerna Entrepreneur Training Center in Denpasar, Bali, in December 2018 to help SMEs respond to disruptive conditions in the digital era to open opportunities while expanding the marketing range of their products. <ref> [https://photos.google.com/share/AF1QipPdkD4nXhQga_DHgtBXaBSxZlXcxjTX5V6pUgBH4D8B1YBzzDyvSWA8w7e7jOIV8w?key=V2k3aTNycWhoekNhajRDek9MMWg1OFFGaFdiMEp3 Dukung Transformasi Digital UMKM SAmpoerna Komit Bakal Gelar Pameran & Pelatihan Tahunan], Rakyat Merdeka, 15 January 2019, Accessed April 2019 </ref>
 
Sampoerna (a Phillip Morris International subsidiary in Indonesia) held the Expo 2018 Sampoerna Entrepreneur Training Center in Denpasar, Bali, in December 2018 to help SMEs respond to disruptive conditions in the digital era to open opportunities while expanding the marketing range of their products. <ref> [https://photos.google.com/share/AF1QipPdkD4nXhQga_DHgtBXaBSxZlXcxjTX5V6pUgBH4D8B1YBzzDyvSWA8w7e7jOIV8w?key=V2k3aTNycWhoekNhajRDek9MMWg1OFFGaFdiMEp3 Dukung Transformasi Digital UMKM SAmpoerna Komit Bakal Gelar Pameran & Pelatihan Tahunan], Rakyat Merdeka, 15 January 2019, Accessed April 2019 </ref>
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Philip Morris International, through its parent company Philip Morris Fortune Tobacco Corp Inc., organises Bright Leaf Award for journalists in the Philippines, specifically for agriculture journalism from which the comapny gets its stock of feature stories and photos on tobacco growing to promote in the media all year round. <ref> Tobacco Watch, [https://tobaccowatch.seatca.org/index.php/2018/08/04/philippines-philip-morris-enlists-doa-journalists-for-bright-leaf-award/ Philippines: Philip Morris enlists DOA, journalists for Bright Leaf Award], 4 August 2018, Accessed January 2019 </ref>
 
Philip Morris International, through its parent company Philip Morris Fortune Tobacco Corp Inc., organises Bright Leaf Award for journalists in the Philippines, specifically for agriculture journalism from which the comapny gets its stock of feature stories and photos on tobacco growing to promote in the media all year round. <ref> Tobacco Watch, [https://tobaccowatch.seatca.org/index.php/2018/08/04/philippines-philip-morris-enlists-doa-journalists-for-bright-leaf-award/ Philippines: Philip Morris enlists DOA, journalists for Bright Leaf Award], 4 August 2018, Accessed January 2019 </ref>
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Philip Morris International presented IQOS World exhibition at Milan Design Week in 2019. <ref>[https://en.antaranews.com/news/123274/philip-morris-international-presents-iqos-world-revealed-by-alex-chinneck-at-milan-design-week-2019 Philip Morris International presents IQOS World revealed by Alex Chinneck at Milan Design Week 2019], ''Antara News'', 4 April 2019, Accessed 30 April 2019 </ref>
  
 
===Sponsorship===
 
===Sponsorship===
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The Centre for Substance Use Research has taken money from Philip Morris International and [[British American Tobacco]]. <ref> [https://www.heraldscotland.com/news/17539768.critic-of-snp-government-anti-drugs-strategy-in-row-over-tobacco-industry-funding/ Critic SNP government anti drugs strategy in row over tobacco industry funding], ''Herald Scotland'', 31 March 2019, Accessed April 2019 </ref>
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In 2015, Phillip Morris International has removed its name as a sponsor of the Rock Nation concert in Bangladesh, following media and NGO pressure. <ref>LinkedIn Mehedi Hasan, [https://www.linkedin.com/pulse/pmi-removes-its-name-sponsor-mehedi-hasan/?forceNoSplash=true PMI removes its name as sponsor], 15 March 2015, Accessed January 2019 </ref>
 
In 2015, Phillip Morris International has removed its name as a sponsor of the Rock Nation concert in Bangladesh, following media and NGO pressure. <ref>LinkedIn Mehedi Hasan, [https://www.linkedin.com/pulse/pmi-removes-its-name-sponsor-mehedi-hasan/?forceNoSplash=true PMI removes its name as sponsor], 15 March 2015, Accessed January 2019 </ref>
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According to Financial Times, Philip Morris International has agreed a GBP 5 million deal with Vice where the online medium will produce sponsored content endorsing e-cigarettes. <ref> [https://www.ft.com/content/9015a516-4b1d-11e9-8b7f-d49067e0f50d Marlboro maker teams up with Vice for vaping push], ''Financial Times'', April 2019, Accessed April 2019 (paywall) </ref>
  
 
===Global Campaigns===
 
===Global Campaigns===
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In April 2019, Philip Morris International launched “The Year of Unsmoke” marketing campaign. The campaign was branded as “an urgent call to action to smokers, nonsmokers, regulators and agents of change across the world to drive a better future for the world’s 1.1 billion smokers and their families, loved ones and communities.” <ref> [https://www.apnews.com/Business%20Wire/732e8686e6924fa0928ad54fc28378e2 Philip Morris International Enters the ‘Year of Unsmoke’—Calls on All Those Who Can Empower a Smoke-Free Future], ''AP News'', 8 April 2019, Accessed April 2019 </ref>
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In February 2019, Campaign For Tobacco Free Kids and Netnografica LLC published the results of a two-year investigation into how the big tobacco companies, including [[Philip Morris International|Philip Morris]], [[British American Tobacco]], [[Japan Tobacco International|Japan Tobacco]], and [[Imperial Brands]] used social media influencers to promote their products online. <ref>[https://www.dazeddigital.com/life-culture/article/43290/1/big-tobacco-smoking-industry-young-people-social-media-influencers-instagram How the tobacco industry targets young people with social media influencers], ''Dazed & Confused'', 13 February 2019, Accessed 7 May 2019 </ref>
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In October 2018, Philip Morris International hired Aaron Sherinian as VP of global communications transformation, reporting to Marian Salzman — who became global communications SVP earlier this year. <ref> [https://www.holmesreport.com/latest/article/philip-morris-hires-aaron-sherinian-as-agency-revamp-takes-shape Philip Morris Hires Aaron Sherinian As Agency Revamp Takes Shape], The Holmes Report, October 2018, Accessed October 2018 </ref> {{#ev:youtube|https://www.youtube.com/watch?v=ebWtPthdqcw|300|right|Marian Salzman, Senior Vice President, Communications at the 2018 Cannes Lions International Festival of Creativity. Salzman spoke to the company’s goals for being at the event and setting up the PMI Science Beach.|frame}}
 
In October 2018, Philip Morris International hired Aaron Sherinian as VP of global communications transformation, reporting to Marian Salzman — who became global communications SVP earlier this year. <ref> [https://www.holmesreport.com/latest/article/philip-morris-hires-aaron-sherinian-as-agency-revamp-takes-shape Philip Morris Hires Aaron Sherinian As Agency Revamp Takes Shape], The Holmes Report, October 2018, Accessed October 2018 </ref> {{#ev:youtube|https://www.youtube.com/watch?v=ebWtPthdqcw|300|right|Marian Salzman, Senior Vice President, Communications at the 2018 Cannes Lions International Festival of Creativity. Salzman spoke to the company’s goals for being at the event and setting up the PMI Science Beach.|frame}}
  
Philip Morris International has launched an initiative called “[https://www.missionwinnow.com Mission Winnow]” to get around tobacco marketing ban laws and to endorse innovation "driving towards a better future". <ref name="PMI_f1"> Philip Morris International, [https://www.missionwinnow.com Mission Winnow], November 2018, Accessed November 2018 </ref>. It is tied closely with Formula 1 racing, but there are numerous images of Philip Morris International scientists, and the [https://www.missionwinnow.com website] openly mentions Philip Morris International and its "goal" of reducing smoking. {{r|PMI_f1}}
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Philip Morris International has launched an initiative called “[https://www.missionwinnow.com Mission Winnow]” to get around tobacco marketing ban laws and to endorse innovation "driving towards a better future". <ref name="PMI_f1"> Philip Morris International, [https://www.missionwinnow.com Mission Winnow], November 2018, Accessed November 2018 </ref>. It is tied closely with Formula 1 racing, but there are numerous images of Philip Morris International scientists, and the [https://www.missionwinnow.com website] openly mentions Philip Morris International and its "goal" of reducing smoking. {{r|PMI_f1}} Philip Morris International claimed “Mission Winnow” fully complied with tobacco advertising laws, despite an investigation being launched in Australia over the matter. <ref>[https://uk.motor1.com/news/304692/ferrari-mission-winnow-investigation-australia/ Ferrari Mission Winnow investigation in Australia], ''Motor 1'', 10 February 2019, Accessed April 2019 </ref> Ferrari was later forced to remove the branding from its vehicles and racing uniforms. The team's official race entry was listed as "Scuderia Ferrari Mission Winnow". <ref>[ https://www.theage.com.au/national/victoria/ferrari-drops-big-tobacco-branding-from-name-ahead-of-grand-prix-20190305-p511s1.html Ferrari drops big tobacco branding from name ahead of Grand Prix], ''The Age'', 5 March 2019,  Accessed April 2019 </ref>
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In October 2018, Philip Morris International set up a “PMI Science Engagement Hub” during the World Health Organization’s tobacco treaty conference in Geneva to explain the company’s transformation from maker of Marlboro cigarettes to maker of Marlboro HeatSticks, and watch a machine compare cigarette smoke and heatstick vapor. New York Times reported that a group of people stood outside the convention hall handing out a report titled N''o Fire, No Smoke: Global State of Tobacco Harm Reduction''. It was written by [https://kachange.eu/ Knowledge-Action-Change], an organization that receives funding from the Philip Morris Foundation for a Smoke-Free World. Its message was 'There is “a third way beyond quit or die.' <ref> [https://www.nytimes.com/2018/10/07/health/tobacco-e-cigarettes-treaty.html Flashy Science Hub and Vaping Parties Fail to Win Friends at W.H.O. Tobacco Talks], ''The New York Times'', October 2018, Accessed October 2018 </ref> In 2019, PMI Science released new data that claims that “clinical studies provide human data on the use and acceptance of our smoke-free products as well as their potential to reduce exposure to harmful chemicals and the potential to reduce the risk of smoking-related diseases as compared to continued smoking." <ref> PMI Science website, [https://pmiscienceusa.com/scientific-approach-research-methodology/clinical-assessment-trials-research/ Clinical Assessment], 19 February 2019, Accessed April 2019 </ref>
  
In October 2018, Philip Morris International set up a “PMI Science Engagement Hub” during the World Health Organization’s tobacco treaty conference in Geneva to explain the company’s transformation from maker of Marlboro cigarettes to maker of Marlboro HeatSticks, and watch a machine compare cigarette smoke and heatstick vapor. New York Times reported that a group of people stood outside the convention hall handing out a report titled N''o Fire, No Smoke: Global State of Tobacco Harm Reduction''. It was written by [https://kachange.eu/ Knowledge-Action-Change], an organization that receives funding from the Philip Morris Foundation for a Smoke-Free World. Its message was 'There is “a third way beyond quit or die.' <ref> [https://www.nytimes.com/2018/10/07/health/tobacco-e-cigarettes-treaty.html Flashy Science Hub and Vaping Parties Fail to Win Friends at W.H.O. Tobacco Talks], ''The New York Times'', October 2018, Accessed October 2018 </ref>
 
  
 
{{#ev:youtube|https://www.youtube.com/watch?v=Nco9D4FT8fE|300|right|In October 2018, Philip Morris launched "Hold my light" with a campaign website and a film in which a woman navigates a maze of lasers to relinquish her cigarette lighter to a group of friends.|frame}}
 
{{#ev:youtube|https://www.youtube.com/watch?v=Nco9D4FT8fE|300|right|In October 2018, Philip Morris launched "Hold my light" with a campaign website and a film in which a woman navigates a maze of lasers to relinquish her cigarette lighter to a group of friends.|frame}}
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In July 2017, The Guardian published a series of stories which detailed large tobacco companies, including Philip Morris International, have fought tobacco control efforts throughout Africa. <ref>[https://www.theguardian.com/world/2017/jul/12/big-tobacco-dirty-war-africa-market Threats, bullying, lawsuits: tobacco industry's dirty war for the African market], ''The Guardian'', July 2017, Accessed September 2018</ref>
 
In July 2017, The Guardian published a series of stories which detailed large tobacco companies, including Philip Morris International, have fought tobacco control efforts throughout Africa. <ref>[https://www.theguardian.com/world/2017/jul/12/big-tobacco-dirty-war-africa-market Threats, bullying, lawsuits: tobacco industry's dirty war for the African market], ''The Guardian'', July 2017, Accessed September 2018</ref>
  
To help mark NHS 70th birthday, Philip Morris International wanted to mark this anniversary by helping "the NHS staff quit smoking." MPs and advocacy groups branded this campaign as "entirely inappropriate". <ref>[https://www.theguardian.com/business/2018/jul/19/worlds-biggest-tobacco-firm-under-fire-over-disgraceful-pr-stunt World's biggest tobacco firm under fire over 'disgraceful' PR stunt], ''The Guardian'', 19 July 2018, Accessed January 2019 </ref>  
+
To help mark NHS 70th birthday, Philip Morris International wanted to mark this anniversary by helping "the NHS staff quit smoking." MPs and advocacy groups branded this campaign as "entirely inappropriate". <ref>[https://www.theguardian.com/business/2018/jul/19/worlds-biggest-tobacco-firm-under-fire-over-disgraceful-pr-stunt World's biggest tobacco firm under fire over 'disgraceful' PR stunt], ''The Guardian'', 19 July 2018, Accessed January 2019 </ref>
 +
  “If we stop selling cigarettes, someone else is going to sell them because people buy them… So I don’t think that will have any impact on public health or the health of people.” Andre Calantzopoulos Phillip Morris CEO <ref>[https://www.simplemost.com/marlboros-parent-company-stop-making-cigarettes/ Marlboro parent company stop making cigarettes], ''Simple Most'', 19 February 2019, Accessed April 2019 </ref>
  
 
===Corporate Social Responsibility===
 
===Corporate Social Responsibility===
  
Philip Morris International is listed as one of side event organisers for the Global Forum on Migration and Development. Among the expected outcomes from side events are the launch of publications, such as the 'European Refugee and Migrant Health Report' from the WHO Regional Office for Europe, and announcement of commitments by global and local companies from Mexico, Nigeria, Philippines, the United Arab Emirates and the US. <ref>United Nations, [http://www.un.org/en/conf/migration/ Migration], November 2018, Accessed December 2018 </ref> In March 2018, a Philip Morris representative was invited to participate in the Mexican Forum on Electronic Cigarettes and New Products Regulation which contravenes the Article 5.3 of the FTCT agreement. <ref> [https://www.opendemocracy.net/democraciaabierta/guadalupe-de-la-torre/uncontested-power-of-tobacco-industry-in-mexico Tobacco lobby and smugling in Mexico], ''Open Democracy'', November 2018, Accessed November 2018</ref>  
+
In a disclosure to CDP, a nonprofit that asks companies about their environmental impact, Phillip Morris International said it could save USD10 million from heavy rains and USD 1 million per year from warmer temperatures. The report submission was reported as “Phillip Morris International  has identified a way to profit from climate change. <ref> [https://www.businessinsider.com.au/philip-morris-thinks-climate-change-is-good-for-tobacco-2019-1?r=US&IR=T PM thinks climate change is good for tobacco], ''Business Insider'', 21 January 2019, Accessed April 2019 </ref>
  
In September 2017, Philip Morris International announced a pledge of USD 80 million dollars a year for 12 years beginning in 2018 for the creation of its latest “independent” research effort, the [https://www.smokefreeworld.org/ Foundation for a Smoke-Free World]. <ref>[http://fortune.com/2017/09/13/philip-morris-billion-smoke-free-foundation/ Philip Morris Pledges Almost $1 Billion to Anti-Smoking Fight], ''Fortune'', September 2017, Accessed September 2018</ref> According to the Foundation's website, it has four focus areas and works to reduce health impacts and deaths from smoking, with the ultimate goal of eliminating smoking worldwide.<ref> Foundation for a Smoke-Free World, [https://www.smokefreeworld.org/our-areas-focus Our areas of focus], Accessed September 2018</ref> In October 2018, a statement by a number of anti-tobacco organisations and universities called for the [https://www.conradchallenge.org/conrad-foundation/ Conrad Foundation] to severe its ties with the Philip Morris International-funded Foundation for a Smoke-Free World on an initiative working with high school students in the United States. <ref> Cision, [https://www.prnewswire.com/news-releases/conrad-foundation-should-sever-ties-with-philip-morris-funded-foundation-for-a-smoke-free-world-300736373.html Conrad Foundation Should Sever Ties with Philip Morris-Funded Foundation for a Smoke-Free World], October 2018, Accessed October 2018</ref> The Foundation published a report that encourages tobacco company ‘rebranding’ and offers examples of how other companies, including IBM, GE or Ford, redefined and in some cases (like Ford) rebranded themselves to secure future customers. <ref name="PMI_FSFW"> Foundation For A Smoke-Free World, [https://www.smokefreeworld.org/sites/default/files/fsfw_business_transformation_white_paper.pdf?utm_source=twitter&utm_medium=social&utm_content=nov282018_kol&utm_campaign=always_on_social BUSINESS TRANSFORMATION An Analysis of Case Studies Relevant to Achieving a Smoke-Free World], November 2018, Accessed November 2018 </ref> The report included the following call to action:
+
In September 2017, Philip Morris International announced a pledge of USD 80 million dollars a year for 12 years beginning in 2018 for the creation of its latest “independent” research effort, the [https://www.smokefreeworld.org/ Foundation for a Smoke-Free World]. <ref>[http://fortune.com/2017/09/13/philip-morris-billion-smoke-free-foundation/ Philip Morris Pledges Almost $1 Billion to Anti-Smoking Fight], ''Fortune'', September 2017, Accessed September 2018</ref> According to the Foundation's website, it has four focus areas and works to reduce health impacts and deaths from smoking, with the ultimate goal of eliminating smoking worldwide.<ref> Foundation for a Smoke-Free World, [https://www.smokefreeworld.org/our-areas-focus Our areas of focus], Accessed September 2018</ref> In October 2018, a statement by a number of anti-tobacco organisations and universities called for the [https://www.conradchallenge.org/conrad-foundation/ Conrad Foundation] to severe its ties with the Philip Morris International-funded Foundation for a Smoke-Free World on an initiative working with high school students in the United States. <ref> Cision, [https://www.prnewswire.com/news-releases/conrad-foundation-should-sever-ties-with-philip-morris-funded-foundation-for-a-smoke-free-world-300736373.html Conrad Foundation Should Sever Ties with Philip Morris-Funded Foundation for a Smoke-Free World], October 2018, Accessed October 2018</ref> The Foundation published a report that encourages tobacco company ‘rebranding’ and offers examples of how other companies, including IBM, GE or Ford, redefined and in some cases (like Ford) rebranded themselves to secure future customers. <ref name="PMI_FSFW"> Foundation For A Smoke-Free World, [https://www.smokefreeworld.org/sites/default/files/fsfw_business_transformation_white_paper.pdf?utm_source=twitter&utm_medium=social&utm_content=nov282018_kol&utm_campaign=always_on_social BUSINESS TRANSFORMATION An Analysis of Case Studies Relevant to Achieving a Smoke-Free World], November 2018, Accessed November 2018 </ref> The report included the following call to action:
 
   "We invite stakeholders in the business and financial communities, researchers, NGOs, regulators, smokers, and tobacco farmers to join the discussion of the transformational possibilities available to the tobacco industry. We believe the case studies presented in this report will help frame and promote the conversation." {{r|PMI_FSFW}}
 
   "We invite stakeholders in the business and financial communities, researchers, NGOs, regulators, smokers, and tobacco farmers to join the discussion of the transformational possibilities available to the tobacco industry. We believe the case studies presented in this report will help frame and promote the conversation." {{r|PMI_FSFW}}
  
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===Lobbying===
 
===Lobbying===
 +
 +
An Australian political party The Nationals received AUD 56,500 from tobacco giant Phillip Morris International, while the Liberal Democrats were given almost AUD 100,000. <ref> [https://www.braidwoodtimes.com.au/story/5881456/aussie-politics-a-billion-dollar-business/?cs=9397 Aussie politics a billion dollar business], ''Braidwood Times'', 1 February 2019, Accessed April 2019 </ref>
 +
 +
Philip Morris International is pushing for Hong Kong health authorities re-consider their intention to to ban e-cigarettes and other new tobacco products. Philip Morris International used the latest findings from the Royal College of Physicians in the U.K. The report reads: "“E-cigarettes are not a gateway to smoking – in the UK, use of e-cigarettes is limited almost entirely to those who are already using, or have used, tobacco... " <ref> [http://harbourtimes.com/2019/02/01/philip-morris-keen-less-harmful-alternatives-smoking-hk-not-much/ PM keen less harmful alternatives smoking hk not much], ''Harbour Times'', 2 February 2019, Accessed April 2019 </ref>
  
 
Corporate Europe Observatory published an analysis of leaked documents outlining the lobbying strategy of tobacco giant Philip Morris International , highlighting top 10 Members of European Parliament with the strongest relationship with Philip Morris. The  we highlighted a top-10 of MEPs with the strongest relations to Philip Morris, including Othmar Karas, Christofer Fjellner and Wim van de Camp.  <ref> Corporate Europe Observatory, [https://corporateeurope.org/power-lobbies/2014/06/mediapart-exposes-unhealthy-liaisons-between-french-mep-and-tobacco-industry Mediapart exposes unhealthy liaisons between French MEP and the tobacco industry], June 2014, Accessed November 2018 </ref>
 
Corporate Europe Observatory published an analysis of leaked documents outlining the lobbying strategy of tobacco giant Philip Morris International , highlighting top 10 Members of European Parliament with the strongest relationship with Philip Morris. The  we highlighted a top-10 of MEPs with the strongest relations to Philip Morris, including Othmar Karas, Christofer Fjellner and Wim van de Camp.  <ref> Corporate Europe Observatory, [https://corporateeurope.org/power-lobbies/2014/06/mediapart-exposes-unhealthy-liaisons-between-french-mep-and-tobacco-industry Mediapart exposes unhealthy liaisons between French MEP and the tobacco industry], June 2014, Accessed November 2018 </ref>
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In October 2018, Guardian reported that Philip Morris International has been lobbying the members of Australian federal government to overturn Australia’s ban on vaping, but its efforts remain hidden from the public as Philip Morris International was not required to register as lobbyist because it uses own staff rather than third-party consultants. Guardian Australia reported Philip Morris International has been seeking meetings with Coalition MPs as part of its bid to overturn the vaping ban. Some within government have refused to meet with the company. Philip Morris International has also placed prominent ads on page three of both the Australian and the Australian Financial Review, calling for staff to help it achieve a “future without cigarettes” and a “smoke-free Australia”. Tobacco advertisements are banned under Australian law, but Philip Morris appears to have relied on an exemption allowing job ads.<ref> [https://www.theguardian.com/australia-news/2018/oct/03/philip-morris-lobbying-on-e-cigarettes-hidden-from-australian-public Philip Morris lobbying on e-cigarettes hidden from Australian public], ''The Guardian'', October 2018, Accessed October 2018</ref>
 
In October 2018, Guardian reported that Philip Morris International has been lobbying the members of Australian federal government to overturn Australia’s ban on vaping, but its efforts remain hidden from the public as Philip Morris International was not required to register as lobbyist because it uses own staff rather than third-party consultants. Guardian Australia reported Philip Morris International has been seeking meetings with Coalition MPs as part of its bid to overturn the vaping ban. Some within government have refused to meet with the company. Philip Morris International has also placed prominent ads on page three of both the Australian and the Australian Financial Review, calling for staff to help it achieve a “future without cigarettes” and a “smoke-free Australia”. Tobacco advertisements are banned under Australian law, but Philip Morris appears to have relied on an exemption allowing job ads.<ref> [https://www.theguardian.com/australia-news/2018/oct/03/philip-morris-lobbying-on-e-cigarettes-hidden-from-australian-public Philip Morris lobbying on e-cigarettes hidden from Australian public], ''The Guardian'', October 2018, Accessed October 2018</ref>
  
According to Politico, among the lobbyists on the EU Transparency Register, representing Philip Morris International is lobby firm [https://www.pantarhei-advisors.com/en/home-en/ Pantarhei Advisors Europe]. <ref>[https://www.politico.eu/article/tobacco-lobbyists-demand-say-in-eu-debate-on-tobacco-lobbying-european-parliament-european-ombudsman-emily-oreilly/ Tobacco lobbyists demand say in EU debate on … tobacco lobbying], ''Politico'', April 2016, Accessed September 2018</ref> Philip Morris has previously donated to one of Australia’s most prominent right-wing think tank, the Institute of Public Affairs (IPA). <ref> [https://thenewdaily.com.au/news/national/2018/07/24/ipa-membership-donors/ Institute of Public Affairs growing but think tank remains tight-lipped about donors], ''The New Daily'', July 2018, Accessed October 2018</ref>   
+
According to Politico, among the lobbyists on the EU Transparency Register, representing Philip Morris International is lobby firm [https://www.pantarhei-advisors.com/en/home-en/ Pantarhei Advisors Europe]. <ref>[https://www.politico.eu/article/tobacco-lobbyists-demand-say-in-eu-debate-on-tobacco-lobbying-european-parliament-european-ombudsman-emily-oreilly/ Tobacco lobbyists demand say in EU debate on … tobacco lobbying], ''Politico'', April 2016, Accessed September 2018</ref> Think-tanks from multiple countries received funding from [[British American Tobacco]], [[Japan Tobacco International]] and Philip Morris International, alongside governments as they argued against tobacco controls (James to enter individual countries). <ref> [https://www.theguardian.com/world/2019/jan/23/tobacco-industry-free-market-thinktanks-cigarette-controls Tobacco industry free market thinktanks cigarette controls], ''The Guardian'', 23 January 2019, Accessed April 2019 </ref>  Philip Morris has previously donated to one of Australia’s most prominent right-wing think tank, the Institute of Public Affairs (IPA). <ref> [https://thenewdaily.com.au/news/national/2018/07/24/ipa-membership-donors/ Institute of Public Affairs growing but think tank remains tight-lipped about donors], ''The New Daily'', July 2018, Accessed October 2018</ref>   
  
 
[http://www.tobaccotactics.org Tobacco Tactics] reported a number of tobacco companies, including British American Tobacco were a donors to the [https://www.atlasnetwork.org/ Atlas Network] in 2015 and 2016. According to the organisation's Wiki "internal tobacco industry documents show the Atlas Network has had a longstanding funding relationship with the tobacco industry." <ref> Tobacco Tactics, [http://www.tobaccotactics.org/index.php?title=Atlas_Network#cite_note-six-8 Atlas Network], Accessed November 2018 </ref>. Full profile on the organisation can be found [http://www.tobaccotactics.org/index.php?title=Atlas_Network#cite_note-six-8 here].  
 
[http://www.tobaccotactics.org Tobacco Tactics] reported a number of tobacco companies, including British American Tobacco were a donors to the [https://www.atlasnetwork.org/ Atlas Network] in 2015 and 2016. According to the organisation's Wiki "internal tobacco industry documents show the Atlas Network has had a longstanding funding relationship with the tobacco industry." <ref> Tobacco Tactics, [http://www.tobaccotactics.org/index.php?title=Atlas_Network#cite_note-six-8 Atlas Network], Accessed November 2018 </ref>. Full profile on the organisation can be found [http://www.tobaccotactics.org/index.php?title=Atlas_Network#cite_note-six-8 here].  
  
 
In 2013, Philip Morris International spent EUR 5.25 million to lobby members of European Parliament. The amount was the highest for any company in the European Union that year. <ref>[https://www.forbes.com/sites/greatspeculations/2014/10/03/why-did-philip-morris-spend-more-than-anyone-else-lobbying-the-e-u/#771e59a92963 Why Did Philip Morris Spend More Than Anyone Else Lobbying The E.U.?], ''Forbes'', October 2014, Accessed September 2018 </ref>
 
In 2013, Philip Morris International spent EUR 5.25 million to lobby members of European Parliament. The amount was the highest for any company in the European Union that year. <ref>[https://www.forbes.com/sites/greatspeculations/2014/10/03/why-did-philip-morris-spend-more-than-anyone-else-lobbying-the-e-u/#771e59a92963 Why Did Philip Morris Spend More Than Anyone Else Lobbying The E.U.?], ''Forbes'', October 2014, Accessed September 2018 </ref>
 +
 +
The organization employs three lobbyists. The European Union Register lists the following employees:
 +
 +
{| class="wikitable"
 +
! style="font-weight:bold;width=10%" |Name
 +
! style="font-weight:bold;width=10%" |Contract Status
 +
! style="font-weight:bold;width=20%" |Start Date
 +
! style="font-weight:bold;width=30%" |End Date
 +
|-
 +
|Mario Mueller <ref name="PMI_TR"> European Transparency Register, [http://ec.europa.eu/transparencyregister/public/consultation/displaylobbyist.do?id=51925911965-76 Philip Morris International Inc.], Accessed 2 May 2019 </ref>
 +
|Active
 +
|23 June 2018
 +
|21 June 2019
 +
|-
 +
|Stefano Santi {{r|PMI_TR}}
 +
|Active
 +
|29 June 2018
 +
|28 June 2019
 +
|-
 +
|Mauro Scotto D'Abusco {{r|PMI_TR}}
 +
|Active
 +
|19 July 2018
 +
|18 July 2019
 +
|-
 +
|}
  
 
===Research and Development===
 
===Research and Development===
Line 1,032: Line 1,093:
  
 
===Investigations===
 
===Investigations===
 +
 +
According to the Independent, [[British American Tobacco]], [[Imperial Brands]], [[Japan Tobacco International]] and Philip Morris International have all shifted their corporate structures to minimise their tax bills in the United Kingdom, researchers from the University of Bath found. Despite being headquartered in Britain, Imperial Brands paid an effective rate of just 13 per cent over the past seven years, during which corporation tax has varied between 20 per cent and 28 per cent. British American Tobacco is also based in the UK but paid “virtually no” corporation tax over the same period, including four consecutive years (2011-14) where it paid nothing at all, the paper found. <ref> [https://www.independent.co.uk/news/business/news/tobacco-companies-uk-corporation-tax-profits-university-bath-study-a8764841.html Tobacco companies uk corporation tax profits university bath study], ''Independent'', 16 February 2019, Accessed April 2019 </ref>
 +
 +
India's main financial crime-fighting agency is investigating Philip Morris International’s Indian partner Godfrey Phillips for alleged violation of the country's nine-year-old government ban on foreign direct investment in the industry. <ref>[https://www.nasdaq.com/article/india-investigating-philip-morris-godfrey-phillips-20190308-00232 India investigating Philip Morris, Godfrey Phillips] ''Nasdaq'', 8 March 2019,  Accessed April 2019 </ref> Members of the Egyptian Parliament are preparing to launch a thorough investigation into the activities of Philip Morris Misr LLC after several allegations are made of the tobacco company attempts to sack Egypt’s national industry of Cigarettes. <ref> [http://www.egypttoday.com/Article/1/65256/Philip-Morris-ugly-face-unveiled-Egypt-Parliament-to-probe-into PM ugly face unveiled Egypt Parliament to probe into], ''Egypt Today'', 26 February 2019, Accessed April 2019 </ref>
 +
 
As of September 2018, U.S. national securities law firm [http://www.faruqilaw.com/ Faruqi & Faruqi] is investigating potential claims against Philip Morris International, encourages investors who suffered losses exceeding USD 100,000 investing in the company to contact them. <ref> PR Newswire, [https://www.prnewswire.com/news-releases/philip-morris-investor-alert-faruqi--faruqi-llp-encourages-investors-who-suffered-losses-exceeding-100-000-investing-in-philip-morris-international-inc-to-contact-the-firm-300707554.html PHILIP MORRIS INVESTOR ALERT], September 2018, Accessed September 2018 </ref>
 
As of September 2018, U.S. national securities law firm [http://www.faruqilaw.com/ Faruqi & Faruqi] is investigating potential claims against Philip Morris International, encourages investors who suffered losses exceeding USD 100,000 investing in the company to contact them. <ref> PR Newswire, [https://www.prnewswire.com/news-releases/philip-morris-investor-alert-faruqi--faruqi-llp-encourages-investors-who-suffered-losses-exceeding-100-000-investing-in-philip-morris-international-inc-to-contact-the-firm-300707554.html PHILIP MORRIS INVESTOR ALERT], September 2018, Accessed September 2018 </ref>
  
 
===Tobacco Litigation===
 
===Tobacco Litigation===
  
 
+
A Canadian court has upheld the bulk of a decision that ordered three tobacco companies to pay billions in damages. The judgment involves class action suits that were consolidated against Imperial Tobacco Canada, [[Philip Morris International|Rothmans Benson & Hedges]] and [[Japan Tobacco International|JTI-MacDonald]]. <ref>[https://www.bbc.com/news/world-us-canada-47409916 Canada appeals court orders tobacco firms to pay billions in damages], ''BBC'', 1 March 2019, Accessed April 2019 </ref>
  
 
Philip Morris (New Zealand) is suing British American Tobacco (New Zealand), alleging its larger rival is breaching competition law by locking retailers into contracts designed to preserve its dominance in a NZD 2.5 billion market. <ref> [http://www.sharechat.co.nz/article/bbece5d0/big-tobacco-firms-clash-in-nz-as-philip-morris-sues-bat-for-anti-competitive-behaviour.html BIG TOBACCO FIRMS CLASH IN NZ AS PHILIP MORRIS SUES BAT FOR ANTI-COMPETITIVE BEHAVIOUR], ''Sharechat'', 22 March 2018, Accessed September 2018 </ref>
 
Philip Morris (New Zealand) is suing British American Tobacco (New Zealand), alleging its larger rival is breaching competition law by locking retailers into contracts designed to preserve its dominance in a NZD 2.5 billion market. <ref> [http://www.sharechat.co.nz/article/bbece5d0/big-tobacco-firms-clash-in-nz-as-philip-morris-sues-bat-for-anti-competitive-behaviour.html BIG TOBACCO FIRMS CLASH IN NZ AS PHILIP MORRIS SUES BAT FOR ANTI-COMPETITIVE BEHAVIOUR], ''Sharechat'', 22 March 2018, Accessed September 2018 </ref>
Line 1,234: Line 1,300:
 
|TBC
 
|TBC
 
|Kekst CNC's clients include a broad range of public and private companies, institutions, alternative investment firms, and non-profit organizations. <ref>[https://www.prnewswire.com/news-releases/kekst-and-cnc-join-forces-to-create-premier-global-strategic-communications-consultancy-300727405.html Kekst and CNC Join Forces to Create Premier Global Strategic Communications Consultancy], ''PR Newswire'', October 2018, Accessed November 2018 </ref> Tobacco Tactics reposrts CNC listed Philip Morris as a client in the 2014 EU Transparency Register. <ref> Tobacco Tactics website, [http://www.tobaccotactics.org/index.php?title=Communications_%26_Network_Consulting_AG#cite_note-2 Communications & Network Consulting AG], Accessed November 2018 </ref>
 
|Kekst CNC's clients include a broad range of public and private companies, institutions, alternative investment firms, and non-profit organizations. <ref>[https://www.prnewswire.com/news-releases/kekst-and-cnc-join-forces-to-create-premier-global-strategic-communications-consultancy-300727405.html Kekst and CNC Join Forces to Create Premier Global Strategic Communications Consultancy], ''PR Newswire'', October 2018, Accessed November 2018 </ref> Tobacco Tactics reposrts CNC listed Philip Morris as a client in the 2014 EU Transparency Register. <ref> Tobacco Tactics website, [http://www.tobaccotactics.org/index.php?title=Communications_%26_Network_Consulting_AG#cite_note-2 Communications & Network Consulting AG], Accessed November 2018 </ref>
|}
+
|-
 +
|Mercury
 +
|NA
 +
|Altria's key lobbying firm in Washington DC< Mercury was also hired by the Foundation for a Smoke-Free World. <ref> [https://www.tobaccotactics.org/index.php?title=Mercury Mercury], Tobacco Tactics, Accessed 30 April 2019 </ref>
  
 
=References=
 
=References=
 
{{reflist}}
 
{{reflist}}

Revision as of 12:49, 22 May 2019

Philip Morris International, the world’s largest publicly traded tobacco company, operates in approximately 180 countries and reported 18.31 billion USD in profits in 2017.[1] Philip Morris International, a U.S.-based corporation, only sells its products outside the United States. Philip Morris International was separated from its parent company, the Altria Group, in March 2008, in part to protect the company from increased U.S.-based regulation and Litigation. Philip Morris International and Altria are now legally separate companies.

Company Overview

According to Philip Morris International's website, Philip Morris International is a leading international tobacco company engaged in the manufacture and sale of cigarettes and other nicotine-containing products in markets outside the United States of America. Philip Morris International Inc. is a Virginia holding company incorporated in 1987. The company's vision is for their products to "ultimately replace cigarettes to the benefit of adult smokers, society, our company and our shareholders."[2]

Key Executives

Name Position Bio
André Calantzopoulos Director and Chief Executive Officer

(since 2013)

Calantzopoulos was named Chief Executive Officer and was elected to the Board of Directors on May 8, 2013. He served as Chief Operating Officer from Philip Morris spin-off on March 28, 2008 to May 8, 2013. Calantzopoulos was Philip Morris International’s President and Chief Executive Officer between 2002 and the date of the spin-off. After joining the company in 1985, he worked extensively across Central Europe, including as Managing Director of PM Poland and President of the Eastern European Region.

Calantzopoulos holds a degree in electrical engineering from Swiss Federal Institute of Technology in Lausanne and an MBA from INSEAD in France.[3]

Martin King Chief Financial Officer

(since January 2018)

King joined Philip Morris International in 2003 as Managing Director of Tabaqueira SA, Philip Morris International’s Portuguese subsidiary. He was then named Managing Director, Philip Morris Management Co. Ltd in Beijing. Following Philip Morris Indonesia’s acquisition of PT HM Sampoerna Tbk in May 2005, he served as President Director of PT HM Sampoerna Tbk until April 2009. King was appointed Senior Vice President, Operations in April 2009, and President, Latin America & Canada Region in February 2014. Between 2015 and 2017, he held the position of President, Asia Region.

Prior to joining Philip Morris International, King served in various positions within Philip Morris USA between 1991 and 2003.

A graduate of Harvard University with a bachelor’s degree in government, King also holds an MBA from the Darden School, University of Virginia.[3]

Jacek Olczak Chief Operating Officer

(since January 2018)

Olczak joined Philip Morris Polska in 1993 as Manager, Finance and Administration. After serving as Manager, Internal Controls in 1995 in Lausanne, Switzerland, Mr. Olczak returned to Poland in 1996 where he held various positions in finance, sales, and operations. Between 2002 and 2006, Olczak worked extensively across Central Europe and the Baltic States, and in 2004 was appointed Managing Director, Poland & Baltic States. In October 2006, he became Managing Director, Germany & Austria, and from April 2009 until July 2012, he served as President of Philip Morris International’s European Union Region, responsible for managing Philip Morris International operations. From August 2012 until his current appointment, Olczak held the role of Chief Financial Officer.

Prior to joining Philip Morris International, Olczak worked for BDO Binder Sp. z o.o. in London and Warsaw.

Olczak holds a master’s degree in economics from the University of Lodz, Poland.[3]

Werner Barth Senior Vice President,Commercial(since January 2018) Mr. Barth joined PMI in 1990 as a Marketing Trainee at Philip Morris Germany. From 1992 until 2002 he held positions in marketing, product management, brand supervision, and group management. In 2002 Mr. Barth became Marketing Director for Philip Morris Spain and two years later Sales Director for Philip Morris Germany. He was then appointed Managing Director, Philip Morris Benelux. In 2011 Mr. Barth became Managing Director, Philip Morris Germany. He was appointed Senior Vice President, Marketing & Sales in 2015, a position he held until his current appointment. 

Mr. Barth holds a degree in economics from Ludwig Maximilians University in Munich. [3]

Massimo Andolina Senior Vice President, Operations(since January 2018) Andolina joined Philip Morris in Lausanne in 2008 as Director, Operations Planning. He became Vice President, Operations of the Latin America & Canada Region in 2011, and moved to oversee our European Union Region’s operations two years later. In 2016, Andolina was appointed Vice President, PMI Business Transformation.

Prior to joining PMI, Andolina held a variety of international positions in strategic marketing and general management for Tetra Pak International and in operations for R.J. Reynolds International.

Andolina holds a degree in mechanical engineering from the University of Palermo, Italy and an MBA from IMD in Lausanne, Switzerland.[3]

Paul Riley President, East Asia & Australia Region

(since January 2018)

Riley joined Philip Morris Australia in 1988. Over the following two decades, he held a number of positions in Australia, Hong Kong, and Japan, before being named Managing Director, Serbia & Montenegro in 2010. Riley returned to Asia in 2013, when he became President of Philip Morris Fortune Tobacco Corporation in the Philippines. He was appointed President of Philip Morris Japan in 2015.

Riley holds a degree in technology innovation and services management from the Royal Melbourne Institute, and is a graduate of Harvard Business School.[3]

Marco Mariotti President, Eastern Europe Region

(since January 2018)

Since joining Philip Morris International in 1997, Mariotti has held numerous leadership roles in Argentina and across Europe. He started in business development for the European Union Region and moved to Italy in 2001 as Director, Finance and then Director, Corporate Affairs. In 2005, Mariotti became Managing Director, Argentina, followed by his appointment as Managing Director, Italy in 2008. In 2010 Mariotti was named President, Russia & Belarus and became Senior Vice President, Corporate Affairs in 2015.

Before joining Philip Morris International, Mariotti worked in the financial sector in Switzerland.

Mariotti studied economics in Lausanne, Switzerland, and holds an MBA from INSEAD in Fontainebleau, France.[3]

Frederic de Wilde President, European Union Region

(since July 2015)

De Wilde joined Philip Morris International in 1992 as Brand Manager L&M for Philip Morris Belgium. In 1996 he became Marketing Director for Philip Morris Spain S.L. and four years later Sales Director of Spain. He was then named Managing Director of Philip Morris Greece, where he led the acquisition and integration of the Papastratos Cigarette Manufacturing Company. In 2005 De Wilde became Managing Director of Philip Morris International’s affiliate in Italy, and from January 2008 until the end of June 2011, he held the position of President, Philip Morris Japan KK. In July 2011 de Wilde became Senior Vice President, Marketing & Sales.

Prior to joining Philip Morris International, de Wilde worked at Colgate Palmolive, Belgium from 1991 to 1992 as Regional Sales Manager.

De Wilde holds a degree in economics from the Université Libre de Bruxelles and a master degree in management from the Vrije Universiteit Brussel.[3]

Mario Masseroli President, Latin America & Canada Region

(since July, 2018)

Mr. Masseroli became President, Latin America & Canada Region in July 2018.

Mr. Masseroli joined Philip Morris Argentina in 1998 and served in a variety of roles in Argentina, Switzerland and New York. He was named Managing Director, Guatemala in 2006, followed by his appointment as Director, Corporate Affairs for PMI Spain in 2007. Mr. Masseroli was named Vice President, Corporate Affairs Latin America & Canada in 2009. He then went on to become Managing Director Spain and Canary Islands in 2012, adding responsibility for Portugal in April 2016, a position he held until his current appointment. Mr. Masseroli received a bachelor’s degree from the Torcuato di Tella University in Buenos Aires, Argentina, and master’s degree in business administration from the University of California at Berkeley.[3]

Stacey Kennedy President, South & Southeast Asia Region

(since January 2018)

Kennedy began her career with Philip Morris USA in 1995 as a Territory Sales Manager. She held a number of positions of increasing responsibility in the sales organization, until becoming Vice President Sales, Southeast Region in Atlanta in 2006. In 2010 Kennedy joined Philip Morris International’s Operations Center in Lausanne as Vice President, Sales Strategy, and in April 2013 Area Vice President, Southeast Europe. Kennedy served as Managing Director for Germany, Austria, Croatia, and Slovenia from 2015 until her current appointment.

Kennedy received a bachelor degree in sociology and cultural anthropology from Randolph College in the United States, and an Executive MBA from IMD in Lausanne, Switzerland.[3]

Drago Azinovic President, Middle East, Africa & Philip Morris International Duty Free

(since January 2018)

Azinovic joined Philip Morris Asia Limited in March 2009 as Vice President of Marketing and Sales for Philip Morris International’s Asia Region. He became President of Philip Morris Japan in July 2011, a position he held until July 31, 2012, when he was named President of the European Union Region. In July 2015 he became President, Eastern Europe, Middle East & Africa and Philip Morris International Duty Free. From 1997 until 2009 Azinovic held a variety of positions at Altadis and, after the acquisition of Altadis in 2008, at Imperial Tobacco. Previously, Azinovic had worked at Procter & Gamble. Azinovic received a law degree from the University of Alcalá in Spain and an MBA from Saint Louis University in Missouri (USA).[3]
Marc S. Firestone President, External Affairs and General Counsel

(since January 2018)

Firestone held positions from 1988 to 2003 in the law departments of Philip Morris Companies Inc. and Philip Morris International Inc. Firestone is cofounder and chairman of the Institute for Inclusion in the Legal Profession; adjunct professor of law at New York Law School; a frequent speaker on international antitrust law, diversity, and in-house legal practice; and a recipient of the Director’s Roundtable Distinguished General Counsel award. From 2012 until his current appointment, Mr. Firestone served as Philip Morris International’s Senior Vice President and General Counsel.

Firestone was previously Executive Vice President, Corporate and Legal Affairs and General Counsel of Kraft Foods Inc., where he served since 2003.

Firestone began his legal career as an attorney at Arnold & Porter in Washington, D.C. He received a BA, magna cum laude, in romance languages and philosophy from Washington & Lee University and a JD, magna cum laude, from Tulane University School of Law.[3]

Charles Bendotti Senior Vice President, People & Culture

(since January 2018)

Bendotti joined Philip Morris International in Lausanne in 1999 as Business Analyst. From 2000 until 2006, he served in various cross-functional roles in Marketing & Sales and Business Development in different markets of the Eastern Europe, Middle East & Africa, and Latin America & Canada Regions. Bendotti then became Managing Director, Ecuador & Bolivia, followed by his appointment as Vice President, Human Resources for the Latin America & Canada Region in 2008. In 2012 he was named Vice President, Human Resources Asia, a position he held until December 2016, and then Senior Vice President, Human Resources.

Bendotti holds a master’s degree in international relations, economy, and law from the Graduate Institute of International & Development Studies in Geneva, Switzerland, and an Executive MBA from HEC Paris.[3]

Frank de Rooij Vice President, Treasury and Corporate Finance (since December 2016) Mr. de Rooij joined Philip Morris Holland in 1987 as Assistant Treasurer. From 1994 to 1998 he served as Assistant Cash Manager at the European Treasury Center of Philip Morris Companies in Zug, Switzerland. Between 1998 and 2001, Mr. de Rooij worked as Regional Treasurer for the Philip Morris Eastern European region. He then held various positions in PMI’s Group Treasury from 2002 to 2013, before he became Director Treasury and Corporate Finance. In December 2016, Mr. de Rooij was appointed Vice President Treasury and Corporate Finance.

Mr. de Rooij holds a degree in business economics of the University of Breda (H.E.A.O.), The Netherlands.

Michael Kunst Senior Vice President, Commercial Transformation (Since January 2019) Prior to joining Philip Morris International, Mr. Kunst was a Senior Partner of consulting firm Bain & Company in Munich since 2009. He was leading Bain’s Healthcare Practice in EMEA and has worked with a broad set of clients on issues of growth strategy, commercial capability building, change management and organizational effectiveness. Before his tenure at Bain & Company, Mr. Kunst was a partner at Monitor Company from 1998 to 2009. He served as Head of Planning and Reporting at Arcor from 1996 to 1998. 

Mr. Kunst holds a Master of Business Administration Degree from European Business School in Oestrich-Winkel in Germany. He has studied both in Europe and the USA.

Andreas Kurali Vice President and Controller (Since March 2015) Mr. Kurali joined Philip Morris Germany in September 1993 as finance trainee and served in subsequent years at our German affiliate in various finance roles with increasing responsibilities, including planning and budgeting, fiscal affairs, accounting and reporting, treasury, and tax. In early 2003 he became Director, Finance and Information Systems for our Worldwide Duty Free business, based in Switzerland, followed by an assignment in our Latin American Region as Director Finance, Mexico from 2005 to 2008. Subsequently, Mr. Kurali was appointed Vice President, Finance for our Latin America & Canada Region, a position he held until 2012 before transferring as Vice President, Finance to our Asia Region where he worked until 2014. 

Mr. Kurali holds a degree in business administration as Diplom Kaufmann from the University of Mannheim, Germany.

Deepak Mishra Chief Strategy Officer (Since September 2018) Prior to joining PMI, Mr. Mishra held the role of Managing Director, Portfolio Operations at Centerbridge Partners, a private equity firm from 2014, where he led commercial, operational and digital transformations in investments in consumer services, renewable energy and distribution sectors. Prior to Centerbridge, Mr. Mishra was a Partner at McKinsey & Co in London and part of their Consumer Goods, Retail and Operations leadership teams from 2001 to 2014, supporting clients in the FMCG, retail and private equity industries on commercial and operational transformations. Mr. Mishra started his career as a marketing professional with Procter & Gamble in 1996, and then spent 4 years at Accenture's strategy practice in India and Eastern Europe prior to joining McKinsey. 

Mr. Mishra holds an undergraduate degree in Computer Science from BITS Pilani, India, and an MBA from the Indian Institute of Management, Lucknow, India.

Marian Salzman Senioe Vice President, Global Communications (Since April 2018) Prior to joining Philip Morris International, Ms. Salzman headed Havas PR North America since 2009. She first held the position of President and then became Havas PR’s Chief Executive Officer in 2011. She co-created and chaired the Global Collective, the Havas PR operation across several continents. Ms. Salzman was Chief Marketing Officer at PR firm Porter Novelli from 2008 to 2009, CMO at JWT Worldwide from 2005 to 2008, and Executive Vice President and Chief Strategy Officer at Euro RSCG Worldwide (Havas) from 2001 to 2004. In the early 1990s, she co-founded CyberDialogue, where she pioneered the use of online focus groups for social research.

Ms. Salzman holds a degree in sociology and graduated with honors from Brown University.

Jaime Suarez Chief Digital Officer (Since January 2018) Mr. Suarez joined Philip Morris Mexico in 1999 as Business Planning Analyst. From 2001 until 2015, Mr. Suarez served in roles of increasing responsibility in a variety of areas, from business development to trade marketing and, more recently, sales, in the Latin America & Canada Region, Venezuela, the Dominican Republic, and Switzerland. In 2015 Mr. Suarez was appointed Vice President, Consumer Channel Strategy & Event Marketing, and became Vice President, Digital Strategy Reduced-Risk Products in 2016. 

Mr. Suarez holds a degree in economics from the Ibero-American University in Mexico City.

Michael Voegele Chief Technology Officer (since February 2019) Before joining Philip Morris International, Mr. Voegele was working for Adidas from 2011 to 2018. There, he first served as VP Group Functions and Head of Enterprise Architecture and went on to become Senior Vice President IT Sales. Since 2015, he has served as Global Chief Information Officer, and was appointed to the core leadership team in January 2017. In this role, he initiated the digital transformation of Adidas and reshaped the IT Organization and Strategy, making it more consumer centric and supportive of innovation throughout the company. Before his tenure at Adidas, he spent more than a decade at SAP from 2000 to 2011. 

Mr. Voegele holds an engineering degree from Universität Karlsruhe in Germany.

Jerry Whitson Deputy General Counsel and Corporate Secretary (Since January 2011) Mr. Whitson joined PMI in September 2010 as Vice President and Deputy Corporate Secretary. Before joining the company, Mr. Whitson was a Senior Partner at the law firm of Hunton & Williams LLP, where he served for 30 years, lastly as the head of the firm’s Business Practice Group and as a member of its Executive Committee. During his tenure with Hunton & Williams LLP he advised leading multinational corporations on U.S. and international mergers and acquisitions, capital market transactions, corporate governance, and SEC matters. Mr. Whitson has in-depth knowledge of the tobacco and consumer-products industries, having served as outside corporate counsel to our former parent, Altria, for 25 years, including representing that company and its subsidiaries in the acquisitions of Jacobs Suchard, Nabisco, and UST, the Kraft IPO and spin-off, and the spin-off of Philip Morris International.

A member of the New York and Virginia bars, Mr. Whitson earned his law degree from Boston University School of Law and his undergraduate degree from the State University of New York at Stony Brook.

Miroslaw Zielinski Chief New Ventures Officer (fmr. President of Science & Innovation) Mr. Zielinski joined Philip Morris International as a merchandiser in 1991 in his native Poland. He progressed through a number of senior sales and marketing positions at Philip Morris Polska before moving to Kiev, where he was appointed Managing Director of PMI’s Ukrainian affiliate in 1999. In 2002 he became Managing Director, Worldwide Duty Free and served as President, Latin America & Canada from April 2003 until March 2010, when he was named President, Eastern Europe, Middle East & Africa Region and PMI Duty Free. In July 2015 Mr. Zielinski was appointed President, Reduced-Risk Products. 

Mr. Zielinski has a master’s degree in economy and foreign trade from the Warsaw School of Statistics and Economics.


In a press release sent to the media on 22nd May 2019, Philip Morris International announced a creation of four new roles - Chief Consumer Officer (Stefano Volpetti), Chief Life Sciences Officer (Dr. John O’Mullane), Chief Product Officer (TBC) and Chief New Ventures Officer (Mirek Zielinski). All four executive positions will report to the company's CEO André Calantzopoulos. [4]

In April 2019, Philip Morris International promoted J.B. Simko to Vice President of External Affairs. [5]

Board Members

Name Position Bio
Louis C. Camilleri Former Chairman of the Board On July 21, 2018 it was announced Ferrari appointed Camilleri as next CEO. [6]

Camilleri was Philip Morris International Chairman, having served as the Chairman and Chief Executive Officer from the spin-off in 2008 until the 2013 Annual Meeting of Shareholders. Mr. Camilleri remained Chairman and an employee of the company following the 2013 Annual Meeting. He retired effective December 31, 2014, and continues to serve as a non-employee Chairman. Before the spin-off, Mr. Camilleri was Chairman and Chief Executive Officer of Altria Group, Inc., positions he had held since 2002. From 1996 to 2002, he served as Senior Vice President and Chief Financial Officer of Altria Group, Inc. He had been employed continuously by Altria Group, Inc. and its subsidiaries (including Philip Morris International Inc.) in various capacities since 1978. Camilleri is a director of América Móvil, S.A.B. de C.V. and Ferrari N.V. He previously served on the Board of Telmex International SAB from 2009 to 2011. Camilleri was a director of Kraft Foods Inc. from 2001 to 2007 and was Kraft’s Chairman from 2002 to 2007.[7]

Massimo Ferragamo Director Ferragamo has served as Chairman of Ferragamo USA Inc. since 2000, having previously served as President of that company since 1985. He is also Vice President of the Lungarno Hotel Group and Executive Vice President of the Ferragamo Foundation. Ferragamo is a director of Ferragamo Finanziaria S.p.A. and served on the board of directors of Yum! Brands, Inc. from 1997 until 2016. Ferragamo is a member of the Finance and Product Innovation and Regulatory Affairs Committees.[7]
Werner Geissler Director Geissler became an Operating Partner of Advent International in 2015. He previously served as Vice Chairman and Special Advisor to the Chairman and CEO of Procter and Gamble until his retirement in January 2015. He joined that company in 1979 and served in various capacities, including President, Northeast Asia, from 2001 to 2004, Group President, Central and Eastern Europe, Middle East and Africa, from 2004 to 2007, and Vice Chairman, Global Operations, from 2007 to 2014. Mr. Geissler is a director of The Goodyear Tire & Rubber Company. He is Chair of the Compensation and Leadership Development Committee and a member of the Audit, Finance, and Product Innovation and Regulatory Affairs Committees.[7]
Jennifer Li Director Li currently serves as Chief Executive Officer and Managing Partner of Changcheng Investment Partners, Baidu's newly initiated growth fund. She previously served as Chief Executive Officer and General Managing Director of Baidu Capital, the investment arm of Baidu, Inc. Li joined Baidu, Inc., the largest internet search engine in China and the third-largest independent search engine in the world, in 2008, as Chief Financial Officer, responsible for a wide range of corporate functions, including Finance, Human Resources, International Operations, Marketing, Communications, and Purchasing. From 1994 to 2008, she held a number of senior finance positions at various General Motors companies in China, Singapore, the United States, and Canada, rising to Chief Financial Officer of GM’s business in China and Financial Controller of the North American Operations for GMAC. Li is a director of Flex Ltd. She is the Chair of the Audit Committee and a member of the Finance and Nominating and Corporate Governance Committees.[7]
Lisa Hook Director Hook has served as Chief Executive Officer of Neustar, Inc. since October 2010, as a member of its board since November 2010, and as President since January 2008. She was President and Chief Executive Officer of Sunrocket, Inc. from 2006 to 2007, and held several executive-level posts at America Online, Inc. from 2001 to 2004. Previously, she was a partner at Brera Capital Partners, a global private equity investment firm, managing director of Alpine Capital Group, LLC., an investment banking firm, an executive at Time Warner, Inc., a legal advisor to the Chairman of the Federal Communications Commission, and a senior attorney at Viacom International, Inc. Hook serves on the board of Worldpay, Inc., a payment processing firm. Hook was as a senior independent director of RELX PLC and RELX NV, providers of information solutions, from 2006 to 2016. Previously, she served as a director of Covad Communications, Time Warner Telecom, Inc., and National Geographic Ventures. In 2012, she was appointed by President Obama to serve on the National Security Telecommunications Advisory Committee.[7]
Jun Makihara Director Makihara was employed at Goldman, Sachs & Co. from 1981 to 2000, during which time he was a General Partner for six years, working in New York, Los Angeles, and Tokyo. During his tenure in Tokyo, he was co-head of the investment banking group and the Japanese equities group and also served as co-branch manager. Subsequently, he was Chairman of Neoteny Co., Ltd., a Japanese venture incubator, until 2015. Makihara is a director of Monex Group, Inc. and Shinsei Bank, Ltd. He is a trustee of the Protestant Episcopal Cathedral Foundation in Washington, D.C., and a board member of the Japan Society in New York. He also served on the board of RHJ International S.A. from 2005 to 2014. Makihara is Chair of the Finance Committee and a member of the Audit and Product Innovation and Regulatory Affairs Committees.[7]
Kalpana Morparia Director Ms. Morparia assumed her current position as CEO South and South East Asia for J.P. Morgan Chase in April 2016, having previously served as CEO of J.P. Morgan India since 2008. She is a member of J.P. Morgan’s Asia Pacific Management Committee. Prior to joining J.P. Morgan India, Ms. Morparia served as Joint Managing Director of ICICI Bank, India’s second-largest bank, from 2001 to 2007 and the Vice Chair of ICICI’s insurance and asset management business from 2007 to 2008. Ms. Morparia is a director of Dr. Reddy’s Laboratories Ltd. and Hindustan Unilever Limited. She is Chair of the Nominating and Corporate Governance Committee and is a member of the Finance and Product Innovation and Regulatory Affairs Committees.[7]
Lucio A. Noto Director Noto assumed his current position as Managing Partner of Midstream Partners, LLC in March 2001. He retired as Vice Chairman of ExxonMobil Corporation in January 2001, a position he had held since the merger of the Exxon and Mobil companies in November 1999. Before the merger, Noto was Chairman and Chief Executive Officer of Mobil Corporation. Noto had been employed by Mobil continuously since 1962. Mr. Noto is a director of Penske Automotive Group, Inc. He also served on the boards of IBM from 1995 to 2008, Altria Group, Inc. from 1998 to 2008, Shinsei Bank from 2005 to 2008, Commercial International Bank from 2006 to 2009, and RHJ International S.A. from 2011 to 2015. MNoto is the Presiding Director, and a member of the Audit, Compensation and Leadership Development, Finance, and Nominating and Corporate Governance Committees.[7]
Frederik Paulsen Director Dr. Paulsen has been Chairman of the Ferring Group, a research-driven, specialty biopharmaceutical group since 1988, having joined that company in 1976. Dr. Paulsen is a member of the boards of MGIMO University in Moscow, Russia, and the Pro Universitate of the Christian Albrechts University in Kiel, Germany, and a trustee of the Salk Institute of Biological Research in La Jolla, California, USA. Dr. Paulsen is a member of the Finance and Product Innovation and Regulatory Affairs Committees.[7]
Robert B. Polet Director Polet is currently serving as Chairman of Rituals Cosmetics Enterprise B.V. He was Chairman of Safilo Group S.p.A. from 2011 to 2017, and President, Chief Executive Officer and Chairman of the Management Board of the Gucci Group from 2004 to 2011. Previously, Polet spent 26 years in the Unilever Group in a variety of executive roles, including President of Unilever’s Worldwide Ice Cream and Frozen Foods division, Chairman of Unilever Malaysia, Chairman of Van den Bergh and Executive Vice President of Unilever’s European Home and Personal Care division. He is a director of Safilo Group S.p.A., William Grant & Sons Limited, and Arica Holding B.V. Polet serves on the Compensation and Leadership Development, Finance, Nominating and Corporate Governance, and Product Innovation and Regulatory Affairs Committees.[7]
Stephen M. Wolf Director Wolf has been Managing Partner of Alpilles, LLC since 2003. Previously, he was Chairman of US Airways Group from 2001 to 2003, and Chief Executive Officer of US Airways, Inc. from 1996 to 1998. Prior to joining US Airways, he had served since 1994 as senior advisor in the investment banking firm of Lazard Frères & Co., LLC. From 1987 to 1994, he was Chairman and Chief Executive Officer of UAL Corporation and United Air Lines, Inc. Wolf is Chairman of the Advisory Board of Trilantic Capital Partners and served as Chairman of R.R. Donnelley & Sons Company from 2004 to 2014. Wolf served as a director of Altria Group, Inc. from 1993 to 2008 and as a director of Fiat Chrysler Automobiles N.V. from 2009 to 2017. He is a trustee emeritus of the Brookings Institute. Wolf is a member of the Audit, Compensation and Leadership Development, Finance, Nominating and Corporate Governance, and Product Innovation and Regulatory Affairs Committees.[7]

Investments in Unconsolidated Subsidiaries

An unconsolidated subsidiary is a company that is owned by a parent company, but whose individual financial statements are not included in the consolidated or combined financial statements of the parent company to which it belongs. Instead, this type of company appears in the combined financial statement as an investment.[8]

Subsidiary Name Country Interest amount (percentage) Interest Type Notes
Emirati Investors-TA (FZC) United Arab Emirates 49 Equity
Société des Tabacs Algéro-Émiratie ("STAEM") Algiers 25 Economic Algerian joint venture 51 percent owned by EITA and 49 percent owned by Algerian state-owned enterprise Société Nationale des Tabacs et Allumettes SpA.Manufactures and distributes under license some of Philip Morris International's brands.
Megapolis Distribution BV Russia 23 Equity Holding company of CJSC TK Megapolis, Philip Morris International's distributor in Russia

List of Significant Subsidiaries

Listed below are subsidiaries of Philip Morris International Inc. as of December 31, 2017 and their state or country of organization. This list omits the subsidiaries of the Company that in the aggregate would not constitute a “significant subsidiary” of the Company, as that term is defined in Rule 1-02(w) of Regulation S-X.[9]

Subsidiary Name State or Country of Organization
f6 Cigarettenfabrik GmbH & Co. KG Germany
Leonard Dingler (Proprietary) Limited South Africa
Limited Liability Company "Philip Morris Sales & Distribution" Ukraine
Massalin Particulares S.R.L. Argentina
Papastratos Cigarettes Manufacturing Company S.A. Greece
Philip Morris Benelux BVBA Belgium
Philip Morris Brands Sàrl Switzerland
Philip Morris Brasil Industria e Comercio Ltda. Brazil
Philip Morris & Company (UK) Limited United Kingdom
Philip Morris CR a.s. Czech Republic
Philip Morris Exports Sàrl Switzerland
Philip Morris Finance SA Switzerland
Philip Morris Finland Ltd Finland
Philip Morris Global Brands Inc. USA
Philip Morris GmbH Germany
Philip Morris Holland B.V. Netherlands
Philip Morris Holland Holdings B.V. Netherlands
Philip Morris International Holdings B.V. Netherlands
Philip Morris International Management SA Switzerland
Philip Morris Investments B.V. Netherlands
Philip Morris Italia S.r.l. Italy
Philip Morris Japan Limited Japan
Philip Morris Kazakhstan LLP Kazakhstan
Philip Morris Korea Inc. Korea, Republic of
UAB "Philip Morris Lietuva" Lithuania
Philip Morris Limited Australia
Philip Morris Manufacturing GmbH Germany
Philip Morris Manufacturing & Technology Bologna S.p.A. Italy
Philip Morris Mexico Productos Y Servicios, Sociedad de Responsabilidad Limitada de Capital Variable Mexico
Philip Morris Mexico, Sociedad Anónima de Capital Variable Mexico
Philip Morris Misr Limited Liability Company Egypt
Philip Morris Operations a.d. Nis Serbia
Philip Morris (Pakistan) Limited Pakistan
Philip Morris Philippines Manufacturing Inc. Philippines
Philip Morris Polska Spolka Akcyjna Poland
Philip Morris Polska Distribution Sp. z.o.o. Poland
Philip Morris Romania S.R.L. Romania
Philip Morris Products S.A. Switzerland
Philip Morris SA Philip Morris Sabanci Pazarlama ve Satis A.S. Turkey
Limited Liability Company "Philip Morris Sales and Marketing" Russia
PHILSA Philip Morris Sabanci Sigara ve Tutunculuk Sanayi ve Ticaret A.S. Turkey
PMFTC Inc. Philippines
PM Tobakk Norge AS Norway
PT Hanjaya Mandala Sampoerna Tbk. Indonesia
PT Philip Morris Indonesia Indonesia
Rothmans, Benson & Hedges Inc. Canada
Tabaqueira II, S.A. Portugal
Tabaqueira - Empresa Industrial de Tabacos, S.A. Portugal
ZAO "Philip Morris Izhora" Russia

Forecast

The 2019 reported diluted earnings per share forecast to be at least USD 5.37, at prevailing exchange rates. [10]

Several media outlets [11] reported on disappointing sales of heated tobacco products in Japan. In October 2018, Philip Morris reported a decline by 4 billion units in Japan. [12] Wells Fargo Securities called the Philip Morris International Stock their top pick. [13]

  "We believe PM has reached an inflection point and the set up heading into 2019 is even more positive than we originally thought... While management is maintaining realistic/conservative mid-term guidance (which we applaud), we think next year could present a step change especially given the “good base” established (and relatively easy comps) in 2018. We believe PM should be a core holding now and in 2019 and encourage l.t. investors to accumulate shares ahead of the next positive catalyst (FDA’s PMTA approval of iQOS). We reiterate our Outperform rating on PM and maintain our $100 price target." [13]

Forbes expects the volume share of heated tobacco to the total volume of the company to continue grow in financial year 2018. This is based on substantial growth in the markets it was present in at the end of financial year 2017, as well as launch in a number of new markets. At the end of financial year 2017, IQOS was available for sale in key cities in 37 markets and nationwide in Japan. This number has increased to 43 as of the end of September 2018. Forbes further expects the volume of heated tobacco units to cross 42.7 billion, as compared to company estimates of between 41 and 42 billion. Forbes estimates the share price to grow to USD 105 which is substantially higher than the current market price. [14]

Profitability

Annual Trends

According to Yahoo, the transition away from cigarettes has weighed on Philip Morris International. Shares tumbled 16 percent on April 25 2018 when the company reported mixed first-quarter earnings. That marked the biggest one-day drop since the Altria spinoff as first-quarter cigarette shipments fell by 5.3 percent, as important markets, like Japan, Russia and Saudi Arabia, saw weak performance. The second quarter brought slight relief with cigarette volumes off by 1.5 percent. But the stock stayed under pressure for most of the summer, only recovering a bit of ground following the company’s investor day presentation last month. Yahoo also reported that while IQOS shipment volume rose 5.5 percent in the second quarter of 2018 in the key market of Japan, market share fell sequentially, by 0.3 percent, for the first time. And IQOS market share rose a modest 0.7 percent sequentially in Korea amid a barrage of negative ads on the health concerns of reduced risk products. [15]

According to Philip Morris International's 2017 Annual Report, their total cigarette and heated tobacco unit shipment volume of 798.2 billion units is a decline of 2.7 percent on the previous year, primarily reflecting lower cigarette industry volume in the Asia and Eastern Europe, Middle East & Africa (EEMA) Regions, but partly offset by higher heated tobacco unit volume, driven principally by Japan. The total international market share, excluding China and the U.S., declined by 0.1 percentage point to 28.0 percent, mainly due to mid-and-low price segments cigarette brands in the Asia and EEMA Regions. Market share of the premium brands increased, driven by the strong performance of their heated tobacco portfolio. [16]

Quarter Three saw the shares of Philip Morris International rose 4.7 percent. [17] Reported and adjusted diluted earnings per share of USD 1.44 were up by USD 0.17 or 13.4% versus USD 1.27 in 2017. [18]

Fiscal year

in billions USD

2017 [2]:15 2016 [2]:15 2015 [19] 2014 [19] 2013 [19]
Revenues or Net Sales 78.09 74.95 73.91 80.11 80.03
Gross Profit 18.31 17.29 17.43 19.33 20.81

Profits per Region (in Millions USD)

European Union

European Union

in Millions USD

2017 [20] 2016 [20] 2015 [21] 2014 [21] 2013 [21]
Net Revenues 27,580 27,129 26,563 30,517 29,656
Excise taxes on products 19,262 18,967 18,495 21,370 20,770
Net Revenues, excluding excise taxes on products 8,318 8,162 8,068 9,147 (NA)
Operating companies income 3,775 3,994 3,576 3,815 4,309

Eastern Europe, Middle East and Africa

Eastern Europe, Middle East and Africa

in Millions USD

2017 [20] 2016 [20] 2015 [21] 2014 [21] 2013 [21]
Net Revenues 18,045 18,286 18,328 20,469 19,342
Excise taxes on products 11,346 11,286 10,964 11,855 10,866
Net Revenues, excluding excise taxes on products 6,669 7,000 7,364 8,614 (NA)
Operating companies income 3,775 3,016 3,425 4,033 3,708

Asia

Asia

in Millions USD

2017 [20] 2016 [20] 2015 [21] 2014 [21] 2013 [21]
Net Revenues 22,635 20,531 19,469 19,255 20,987
Excise taxes on products 11,845 11,850 11,266 10,527 10,486
Net Revenues, excluding excise taxes on products 10,790 8,681 8,203 8,728 (NA)
Operating companies income 4,149 3,196 2,886 3,187 4,622

Latin America & Canada

Latin America and Canada

in Millions USD

2017 [20] 2016 [20] 2015 [21] 2014 [21] 2013 [21]
Net Revenues 9,838 9,007 9,548 9,865 10,044
Excise taxes on products 6,897 6,165 6,389 6,587 6,690
Net Revenues, excluding excise taxes on products 2,944 2,842 3,159 3,278 (NA)
Operating companies income 1,002 938 1,085 1,030 1,134

Acquisitions

Recent acquisitions[22] Acquired Organization Name Acquiring Organization Name Announced Date Value (in USD)
Papastratos Cigarette Manufacturing Company acquired by Philip Morris International Papastratos Cigarette Manufacturing Company Philip Morris International 9/15/2003 0.00
DIN Fabrika Duvana AD acquired by Philip Morris International DIN Fabrika Duvana AD Philip Morris International 12/18/2003 0.00
Compania Colombiana de Tabaco S.A.S. acquired by Philip Morris International Compania Colombiana de Tabaco S.A.S. Philip Morris International 8/31/2004 310,000,000.00
Rocker Production AB acquired by Philip Morris International Rocker Production AB Philip Morris International 9/3/2006 0.00
Lakson Tobacco Company acquired by Philip Morris International Lakson Tobacco Company Philip Morris International 1/19/2007 0.00
Rothmans acquired by Philip Morris International Rothmans Philip Morris International 8/1/2008 0.00
Swedish Match (South Africa) acquired by Philip Morris International Swedish Match (South Africa) Philip Morris International 7/2/2009 222,000,000.00
Productora Tabacalera de Colombia acquired by Philip Morris International Productora Tabacalera de Colombia Philip Morris International 7/10/2009 452,000,000.00

Investments

Investments Organizational Name Funding Type Amount Raised (in USD) Date Announced
Funding Round Syqe Medical Funding Round 20,000,000.00[22] 1/19/2016[22]

Philip Morris International has expressed an interest in becoming the strategic investor of Vietnam National Tobacco Corporation (Vinataba) [23]

In August 2018, The Guardian reported that more than GBP 1.7 billion had "been directly invested in tobacco company stocks by healthcare providers, fire authorities and schools via UK council pension funds[...] Council retirement schemes in the UK are major investors in firms including British American Tobacco, Imperial Brands and Philip Morris, according to data compiled from more than 100 freedom of information requests." [24]

Analysis by Post suggests that "institutional investors currently hold around $100.15 billion or 74 percent in PM [Philip Morris] stock". [25]

Name Number of ordinary shares percentage of market cap
Vanguard Group Inc 114,749,469 [26] 7.38 [26]
BlackRock, Inc. 94,653,613 [27] 6.1 [27]
Capital World Investors 73,630,703 [28] 4.7 [28]

Shareholders

Tobacco companies have received more than GBP 45 million investment from the United Kingdom's Lincolnshire County Council’s pension fund. The current (as of January 2019) investment for Philip Mo sits at GBP 11.1 million. [29]

Billionaire George Soros bought 590,000 Philip Morris International shares worth over USD 39 million in Q4 of 2018. [30]

Other Notable Investors

Name Number of ordinary shares percentage of market cap
Franklin Resources Inc. 6,103,206 [31] 0.39%

Market Share

According to Philip Morris International's 2017 Annual report, the total international market share, excluding China and the U.S., declined by 0.1 percentage point to 28.0 percent, mainly due to mid- and low price segments cigarette brands in the Asia and EEMA Regions. Market share of Philip Morris International's premium brands increased, driven by the strong performance of the heated tobacco portfolio. Philip Morris International recorded growing or stable total market share in 16 of the top 30 operating companies income markets.[32]

Emerging Markets

Philip Morris International opened a flagship store in Johannesburg, South Africa, in a bid to stoke demand in Africa for IQOS. [33] Research shows that tobacco companies specifically target and market to lower socio-economic groups, and those countries with a more favourable regulatory landscape. [34] It’s clear that their marketing strategy focuses on two main demographics. Aggressively pursuing larger volumes of combustibles, mainly cigarettes, to lower socio-economic groups around the world, particularly EMMA and Asia Pacific. And convincing those in developed economies to switch from combustibles to heated tobacco products at a much higher price-point, whilst touting ‘reduced risks’ to lure over more educated and health conscious consumers. According to Euromonitor International, in 2008, Philip Morris International had a market share of over 50 percent in 13 markets and a market share of over 30 percent in 36 markets. 21 of the 35 markets are emerging markets. Philip Morris International also had a share of over 20 percent in 12 additional markets including Russia and Japan. [34]

According to Euromonitor International, Philip Morris International has increased its cigarette market share in the Middle East and Africa region more than any of its competitors over the last five years, from about 10 percent to 13 percent by retail volume sales. [35]

Philip Morris has also targeted India and its 1.3 billion people as a major growth opportunity, stating in a 2014 internal company document that “India remains a high potential market with huge upside with cigarette market still in infancy,” according to a July 2017 Reuters report. [35]

Factory Openings and Closures

In 2019, Philip Morris Pakistan, an affiliate of Philip Morris International, announced shutting down one of its cigarettes manufacturing facilities. [36]

Russian Daily Kommersant.ru reported Philip Morris International will invest RUB 13 billion at the Philip Morris Izhora plant in the Leningrad Region of Russia. [37] In May 2018, the factory of Philip Morris International's Greek affiliate (Papastratos) in Aspropyrgos ceased cigarette production and is now exclusively producing HEETS, the tobacco units used with IQOS, the company’s most advanced smoke-free product.[38]

The 2017 annual report states that at on 31st December 2017 Philip Morris International owned and operated 46 manufacturing facilities. [39]

On October 10, 2014, Philip Morris opened it's first pilot plant in the EU for producing Reduced Risk Products (RRPs) near Bologna. Italy, after an announced investment of up to €500 million. [40] Later the company announced a doubling of the Bologna facility backed by another €500 million.[41]

In 2014, Philip Morris International ceased the production of cigarettes at its factory in Moorabbin (Australia) after nearly 60 years in operation. All production for the Australian market was moved to South Korea. [42] The tobacco company also closed down its Dutch factory in Bergen op Zoom. 1,230 jobs were lost. [43]

Dividends

In June 2018, The Board of Directors of Philip Morris International announced the increase the company’s regular quarterly dividend by 6.5 percent to an annualized rate of USD 4.56 per share. The new quarterly dividend of USD 1.14 per share, up from USD 1.07 per share, is payable on July 11, 2018, to shareholders of record as of June 22, 2018. [44]

Products

Philip Morris International cigarettes are sold in more than 180 markets, and in many of these markets they hold the number one or number two market share position. Philip Morris International have a wide range of premium, mid-price and low-price brands. Philip Morris International portfolio comprises both international and local brands and is led by Marlboro, the world’s highest-selling international cigarette, which accounted for approximately 35 percent of the company's total 2017 cigarette shipment volume. Marlboro is complemented in the premium-price category by Parliament. Other leading international cigarette brands are Bond Street, Chesterfield, L&M, Lark and Philip Morris International. These seven international cigarette brands contributed approximately 75 percent of cigarette shipment volume in 2017.[45] :1

  “If we stop selling cigarettes, somebody else is going to sell them because people buy them." Andre Calantzopoulos, Sky News Interview [46]

Key Portfolio

Marlboro

In 2017, Marlboro’s international cigarette share increased slightly to 9.7 percent . The brand’s cigarette share increased in the Asia and EEMA Regions, reflecting robust growth in the Philippines and across markets in North Africa. [47]:1

L&M

In 2017 Philip Morris International's cigarette shipment volume of the following brands decreased: L&M, mainly due to Russia, Saudi Arabia and Turkey, partly offset by Algeria, Argentina, Colombia and Kazakhstan; Parliament, mainly due to Japan, Russia and Saudi Arabia, partly offset by Kazakhstan; Bond Street, mainly due to Kazakhstan, Russia and Ukraine; Lark, principally due to Japan; and "Others," mainly due to low-price brands in Indonesia, Pakistan, the Philippines, Russia and Ukraine.[47]:25

Chesterfield

In 2017 Philip Morris International's cigarette shipment volume of the following brands increased: Chesterfield, notably driven by Argentina, Brazil, Colombia, Saudi Arabia, Turkey and Venezuela, partly offset by Italy and Russia; and Philip Morris, mainly driven by Russia and Ukraine, notably reflecting successful portfolio consolidation of local, low-price brands in "Others," partly offset by Argentina and Italy.[47]:25

Heated Tobacco Products

According to Philip Morris International's website, the company is engaged in the development and commercialization of smoke-free alternatives to cigarettes. Reduced Risk Products (RRPs) is the term Philip Morris International use to refer to products that present, are likely to present, or have the potential to present less risk of harm to smokers who switch to these products versus continued smoking.

Philip Morris International market heated tobacco units under the brand names HEETS, HEETS Marlboro and HEETS FROM MARLBORO, defined collectively as HEETS, as well as Marlboro HeatSticks and Parliament HeatSticks. IQOS was first introduced in Nagoya, Japan in 2014. PMI increased IQOS availability from 41 to 44 countries. [48] Japan is the most developed IQOS launch market in terms of geographic coverage. Heated Tobacco Products accounted for USD 823 million of PMI's revenue during the third quarter, or 11 percent of its USD 7.5 billion total revenue. [49] On 23 October 2018, Philip Morris International introduced two new IQOS devices — the IQOS 3 and the IQOS 3 Multi — in the markets where IQOS products are already available, Japan and South Korea. [49] In November 2018, Philip Morris International paid journalist to attend the global IQOS 3 and IQOS 3 Multi launch in Tokyo. [50] Earlier in the year, the company flew a group of African journalists from Malawi, Tanzania, Senegal and Zimbabwe to Johannesburg for a day-long media workshop to promote IQOS. [51] Philip Morris International is considering a launch of IQOS in India [52], the Philippines [53] and the UAE [54]

Philip Morris has 70 IQOS shops in 23 countries, [33] including a flagship IQOS store in Johannesburg, South Africa. [55] The company's salesmen have been previously caught offering potentially illegal incentives to smokers in UK bars. [56]

   “We are building our future on smoke-free products… they are not harmless, they are a much better choice than continued smoking.” Gabriela Wurcel, VP/Corporate Affairs for Latin America and Canada [57]


At the 2018 Consumer Analyst Group of New York Conference, Philip Morris International, CEO André Calantzopoulos read out a statement which said:

  “Nearly five million adult consumers around the world have already stopped smoking and switched to IQOS… Regulators must differentiate supply and demand measures – for example, product, communication and fiscal policies – based on product attributes and risk profiles. This is of critical importance for the people who smoke and who deserve policy choices that respect them, and their ability to decide. And policies should be sensible, and based on principled pragmatism rather than influenced by ideology. 1.1 billion men and women who smoke cannot be held hostage to, and misled by, absolutism that foments nihilistic rhetoric. Otherwise the vision of a smoke-free world will be harder and take longer to materialize, to their detriment.” [58]. 

At the Philip Morris International 2017 Full-Year Results and launch webcast overview, CEO Calantzopoulos stated the company expects the price of IQOS to be reduced in upcoming years. Calantzopoulos also explained Philip Morris International's ongoing efforts to have IQOS classified as not a 'tobacco product'. According to Calantzopoulos, a recently released report by the U.K. government had endorsed IQOS as “healthier” option and suggested that other governments are joining “a movement” at a faster than expected rate. [59]

Co-opting and pushing the “quit” message in the media in recent marketing shows how they are strategically aligning their new product segment to work with the more difficult market conditions (regulation/education/social stigma) of more advanced economies. The use of passive language to point out statistics suggesting the number of tobacco consumers will remain stagnant is both non-committal to the traditional message of quitting and subtly absolving themselves of responsibility. Philip Morris International also points out that in cases where a smoker doesn't quit tobacco, Reduced Risk Products (RRPs) offer “a viable alternative” for them to continue consuming tobacco as a ‘mid-way point’ or ‘third option’ to quitting. In the 2015 annual report, CEO André Calantzopoulos and Chairman of the Board, Louis C. Camilleri outlined the organizations goals to:

  “lead a full-scale effort to ensure that Reduced Risk Products (RRPs) ultimately replace cigarettes to the benefit of adult smokers, society, our company and our shareholders.” [60] :1 

The same message was also presented across the 2016 annual report. Philip Morris International keeps on using bold and broad statements:

  "2016 was a pivotal year for Philip Morris International, reflecting exciting progress in our transformation from a cigarette company to one that is focused on RRPs. While our cigarette portfolio continued to drive our income growth, we began to see clear signs of the enormous potential for our RRP portfolio.”[60]

In february 2019, Philip Morris International said the technology in its new "vaping" products could be used to offer users activity-tracking services and even life insurance rebates. [61] Two months later, the company setup a life insurance venture "Reviti" in the United Kingdom which will see it offer "significant discounts to smokers who quit or switch to one of its alternative products." [62]

Sales of Heated Tobacco products in Japan

Price Number of Tobacco Brands Available Available Areas
Ploom Tech [63]

(Japan Tobacco International)

4,000 5 Tokyo, Osaka, Sapporo,Sendai, Yokohama, Nagoya, Hiroshima, Fukuoka
IQOS [63]

(Philip Morris International)

10,980 6 Nationwide
GLO [63]

(British American Tobacco)

8,000 8 Nationwide

Volumes

According to Philip Morris International's 2017 Annual report, the total cigarette and heated tobacco unit shipment volume of 798.2 billion units declined by 2.7 percent, primarily reflecting lower cigarette industry volume in the Asia and Eastern Europe, Middle East & Africa regions, partly offset by higher heated tobacco unit volume, driven principally by Japan.[20]

Volume of Cigarettes by Region

Region 2018 [64] 2017 [20] 2016 [20] 2015 [21] 2014 [21]
European Union 179,622 187,293 193,586 194,589 194,746
Eastern Europe 108,718 119,398 NA NA NA
EMEA NA 256,157 271,393 279,411 278,374
Middle East & Africa 136,605 136,759 NA NA NA
Asia NA 234,253 260,029 281,350 288,128
South & Southeast Asia 178,469 171,600 NA NA NA
East Asia & Australia 56,163 62,653 NA NA NA
Latin America & Canada 80,738 84,223 87,938 91,920 94,706
Total 740,315 761,926 812,946 847,270 855,954

Product Unit Volumes

Product Category 2018 [64] 2017 [20] 2016 [20] 2015 [20] 2014 [65]
Tobacco Units (in millions) 740,315 761,962 812,946 847,270 855.9
Heated tobacco (in billions) 41,372 36,226 7,394 396 0.0
Total 781,687 798,152 820,340 847,666 855.9
Percentage (2.1) (2.7) (3.2) (1.0) (2.8)

Marketing and External Relations

Media and Marketing

During the 2019 World Economic Forum gathering in Davos, Wall Street Journal supported a twitter Q&A with Marian Salzman, Senior Vice President Global Communications at Phillip Morris International. [66]

  “You can have all kinds of playbooks and legal guidelines but at the end of the day it comes down to how you engage with people. It’s important that we understand some people are really against cigarettes but they still love people who smoke. So we need to hear that and incorporate it into real time messaging and real-time conversation on Twitter.” Marian Salzman, Senior Vice President Global Communications, Phillip Morris International [67]

During a fireside chat with Richard James, Philip Morris International’s VP of corporate affairs, North and Northeast Asia, Morris said:

  "These days it is very difficult to separate the corporate brand from the individual product. People will see through anything that isn’t genuine. So what became very important for us was to commit to the conversation about a smoke-free future, and share our aspiration and company vision. This naturally led to consumers, who were smokers, being interested in the new types of products that would help them." [68]
  "In a heavily-regulated environment you have some help from lawyers, so a lot of your message comes from guidelines. But the gutsy part is deciding how far you are going to push it. We’ve re-entered civilised society, but the one thing that we can’t change is that – whether we sell cigarettes or somebody else does – people are going to buy cigarettes." Marian Salzman, Senior Vice President Global Communications, Phillip Morris International  [69]

Sampoerna (a Phillip Morris International subsidiary in Indonesia) held the Expo 2018 Sampoerna Entrepreneur Training Center in Denpasar, Bali, in December 2018 to help SMEs respond to disruptive conditions in the digital era to open opportunities while expanding the marketing range of their products. [70]

Philip Morris International Duty Free launched a 2014 limited-edition pack edition at Doha International airport to celebrate the 2014 Chinese New Year of the Horse. [71]

In Japan, Philip Morris International is shifting a large majority of its 1,000-employee sales force to target elderly smokers (Japan’s largest demographic that’s more price sensitive and less responsive to social media) with direct appeals, discounts and money-back guarantees. [72]

In July 2018, the UK Government threatened to take Philip Morris International to court unless it stops illegally targeting UK consumers with tobacco adverts for "healthier" tobacco products from shops around the UK. [73]

Philip Morris International, through its parent company Philip Morris Fortune Tobacco Corp Inc., organises Bright Leaf Award for journalists in the Philippines, specifically for agriculture journalism from which the comapny gets its stock of feature stories and photos on tobacco growing to promote in the media all year round. [74]

Philip Morris International presented IQOS World exhibition at Milan Design Week in 2019. [75]

Sponsorship

The Centre for Substance Use Research has taken money from Philip Morris International and British American Tobacco. [76]

In 2015, Phillip Morris International has removed its name as a sponsor of the Rock Nation concert in Bangladesh, following media and NGO pressure. [77]

According to Financial Times, Philip Morris International has agreed a GBP 5 million deal with Vice where the online medium will produce sponsored content endorsing e-cigarettes. [78]

Global Campaigns

In April 2019, Philip Morris International launched “The Year of Unsmoke” marketing campaign. The campaign was branded as “an urgent call to action to smokers, nonsmokers, regulators and agents of change across the world to drive a better future for the world’s 1.1 billion smokers and their families, loved ones and communities.” [79]

In February 2019, Campaign For Tobacco Free Kids and Netnografica LLC published the results of a two-year investigation into how the big tobacco companies, including Philip Morris, British American Tobacco, Japan Tobacco, and Imperial Brands used social media influencers to promote their products online. [80]

In October 2018, Philip Morris International hired Aaron Sherinian as VP of global communications transformation, reporting to Marian Salzman — who became global communications SVP earlier this year. [81]
Marian Salzman, Senior Vice President, Communications at the 2018 Cannes Lions International Festival of Creativity. Salzman spoke to the company’s goals for being at the event and setting up the PMI Science Beach.

Philip Morris International has launched an initiative called “Mission Winnow” to get around tobacco marketing ban laws and to endorse innovation "driving towards a better future". [82]. It is tied closely with Formula 1 racing, but there are numerous images of Philip Morris International scientists, and the website openly mentions Philip Morris International and its "goal" of reducing smoking. [82] Philip Morris International claimed “Mission Winnow” fully complied with tobacco advertising laws, despite an investigation being launched in Australia over the matter. [83] Ferrari was later forced to remove the branding from its vehicles and racing uniforms. The team's official race entry was listed as "Scuderia Ferrari Mission Winnow". [84]

In October 2018, Philip Morris International set up a “PMI Science Engagement Hub” during the World Health Organization’s tobacco treaty conference in Geneva to explain the company’s transformation from maker of Marlboro cigarettes to maker of Marlboro HeatSticks, and watch a machine compare cigarette smoke and heatstick vapor. New York Times reported that a group of people stood outside the convention hall handing out a report titled No Fire, No Smoke: Global State of Tobacco Harm Reduction. It was written by Knowledge-Action-Change, an organization that receives funding from the Philip Morris Foundation for a Smoke-Free World. Its message was 'There is “a third way beyond quit or die.' [85] In 2019, PMI Science released new data that claims that “clinical studies provide human data on the use and acceptance of our smoke-free products as well as their potential to reduce exposure to harmful chemicals and the potential to reduce the risk of smoking-related diseases as compared to continued smoking." [86]


In October 2018, Philip Morris launched "Hold my light" with a campaign website and a film in which a woman navigates a maze of lasers to relinquish her cigarette lighter to a group of friends.

According to Marketing Week, Philip Morris is launching a new campaign to encourage smokers to give up cigarettes. The Hold My Light campaign aims to persuade smokers to go smoke-free by encouraging friends and family to offer rewards in the first 30 days of quitting. The campaign suggests four ways to give up cigarettes, including going cold turkey, using nicotine patches, vaping and using heated tobacco products. [87] The campaign was labelled as PR stunt by a number of British anti-smoking charities, including Cancer Research UK and Action on Smoking and Health. [88] In an interview with Campaign, Corporate Affairs Director for Philip Morris International Mark MacGregor said:

  "It’s very naïve of people to think we’re just going to shut down our business... And if we’re not going to do that, it feels like the action we’ve taken is proof [of our intentions], whether people want to believe it or not." [89] 

A profile on Philip Morris International in a German daily Spiegel revealed Philip Morris International is hoping governmental requirements for its new products will be loosened. For instance, they'd like to be rid of the compulsory "smoking kills" banners that adorn their every advertisement. And once they've completed all the necessary studies and long-term investigations, they would like the regulatory watchdogs to allow the tobacco companies to advertise their new products as "safer." [90]

An investigative report published by Reuters in July 2017 revealed a large-scale secret campaign by Philip Morris International to undermine the World Health Organization Framework Convention on Tobacco Control [91], depicting “a company that has focused its vast global resources on bringing to heel the world’s tobacco control treaty.” [92]

In July 2017, The Guardian published a series of stories which detailed large tobacco companies, including Philip Morris International, have fought tobacco control efforts throughout Africa. [93]

To help mark NHS 70th birthday, Philip Morris International wanted to mark this anniversary by helping "the NHS staff quit smoking." MPs and advocacy groups branded this campaign as "entirely inappropriate". [94]

  “If we stop selling cigarettes, someone else is going to sell them because people buy them… So I don’t think that will have any impact on public health or the health of people.” Andre Calantzopoulos Phillip Morris CEO [95]

Corporate Social Responsibility

In a disclosure to CDP, a nonprofit that asks companies about their environmental impact, Phillip Morris International said it could save USD10 million from heavy rains and USD 1 million per year from warmer temperatures. The report submission was reported as “Phillip Morris International has identified a way to profit from climate change. ” [96]

In September 2017, Philip Morris International announced a pledge of USD 80 million dollars a year for 12 years beginning in 2018 for the creation of its latest “independent” research effort, the Foundation for a Smoke-Free World. [97] According to the Foundation's website, it has four focus areas and works to reduce health impacts and deaths from smoking, with the ultimate goal of eliminating smoking worldwide.[98] In October 2018, a statement by a number of anti-tobacco organisations and universities called for the Conrad Foundation to severe its ties with the Philip Morris International-funded Foundation for a Smoke-Free World on an initiative working with high school students in the United States. [99] The Foundation published a report that encourages tobacco company ‘rebranding’ and offers examples of how other companies, including IBM, GE or Ford, redefined and in some cases (like Ford) rebranded themselves to secure future customers. [100] The report included the following call to action:

 "We invite stakeholders in the business and financial communities, researchers, NGOs, regulators, smokers, and tobacco farmers to join the discussion of the transformational possibilities available to the tobacco industry. We believe the case studies presented in this report will help frame and promote the conversation." [100]

Complete profile on the Philip Morris International-funded Foundation for a Smoke-Free World can be found here.

In 2016, Philip Morris International launched Philip Morris International IMPACT, a private fund aiming to support third-party projects dedicated to fighting illegal trade and related crimes such as corruption, organized criminal networks and money laundering which continues to be a major risk to their business. The organization has pledged to donate USD 100 million to fund individual projects. [101] The World Health Organization released an official statement:

   "... Strengthening implementation of the WHO FCTC for all tobacco products remains the most effective approach to tobacco control. Policies such as tobacco taxes, graphic warning labels, comprehensive bans on advertising, promotion and sponsorship, and offering help to quit tobacco use have been proven to reduce demand for tobacco products. These policies focus not just on helping existing users to quit, but on preventing initiation."[102]

List of organisations funded under PMI Impact can be found on the Global Center for Good Governance in Tobacco Control website and here.

In 2014, Philip Morris International announced that it will begin buying U.S.-grown tobacco exclusively through third-party leaf supply companies. This policy required the world’s largest tobacco leaf suppliers – Alliance One International and Universal Corporation – to implement Philip Morris International’s detailed child labor policy on all U.S. farms from which they purchase tobacco. [103]

Philip Morris International was recognised as a Global Top Employer for the second year in a row. The certification for 2018 from Top Employer Institute was awarded to PMI teams in 44 countries. [104]

Lobbying

An Australian political party The Nationals received AUD 56,500 from tobacco giant Phillip Morris International, while the Liberal Democrats were given almost AUD 100,000. [105]

Philip Morris International is pushing for Hong Kong health authorities re-consider their intention to to ban e-cigarettes and other new tobacco products. Philip Morris International used the latest findings from the Royal College of Physicians in the U.K. The report reads: "“E-cigarettes are not a gateway to smoking – in the UK, use of e-cigarettes is limited almost entirely to those who are already using, or have used, tobacco... " [106]

Corporate Europe Observatory published an analysis of leaked documents outlining the lobbying strategy of tobacco giant Philip Morris International , highlighting top 10 Members of European Parliament with the strongest relationship with Philip Morris. The we highlighted a top-10 of MEPs with the strongest relations to Philip Morris, including Othmar Karas, Christofer Fjellner and Wim van de Camp. [107]

Philip Morris South Africa previously contributed to the Free Market Foundation, a South African libertarian think-tank. [108]

Philip Morris International is behind #futurosinhumo website, requesting the Mexican public to sign a petition that would allow the sale of reduced-risk products in the country. [109] As of November 2018, the same website is now available in Colombia, promoting e-cigarrettes and IQOS as “healthier” choices. [110] On the website, they claim:

 "We join in this movement against combustion, against smoke. Because we want a life without smoke, without frightening people every time we light a cigarette. A life without combustion, without bad smells, with new alternatives, with new devices that make our lifestyle better. This is a movement created so that you know the new alternatives that technology offers today. We set ourselves the task of collecting those testimonies from people who live a life away from the Smoke. Join a #SinHUmo life."Template:PMI FSH

In October 2018, Guardian reported that Philip Morris International has been lobbying the members of Australian federal government to overturn Australia’s ban on vaping, but its efforts remain hidden from the public as Philip Morris International was not required to register as lobbyist because it uses own staff rather than third-party consultants. Guardian Australia reported Philip Morris International has been seeking meetings with Coalition MPs as part of its bid to overturn the vaping ban. Some within government have refused to meet with the company. Philip Morris International has also placed prominent ads on page three of both the Australian and the Australian Financial Review, calling for staff to help it achieve a “future without cigarettes” and a “smoke-free Australia”. Tobacco advertisements are banned under Australian law, but Philip Morris appears to have relied on an exemption allowing job ads.[111]

According to Politico, among the lobbyists on the EU Transparency Register, representing Philip Morris International is lobby firm Pantarhei Advisors Europe. [112] Think-tanks from multiple countries received funding from British American Tobacco, Japan Tobacco International and Philip Morris International, alongside governments as they argued against tobacco controls (James to enter individual countries). [113] Philip Morris has previously donated to one of Australia’s most prominent right-wing think tank, the Institute of Public Affairs (IPA). [114]

Tobacco Tactics reported a number of tobacco companies, including British American Tobacco were a donors to the Atlas Network in 2015 and 2016. According to the organisation's Wiki "internal tobacco industry documents show the Atlas Network has had a longstanding funding relationship with the tobacco industry." [115]. Full profile on the organisation can be found here.

In 2013, Philip Morris International spent EUR 5.25 million to lobby members of European Parliament. The amount was the highest for any company in the European Union that year. [116]

The organization employs three lobbyists. The European Union Register lists the following employees:

Name Contract Status Start Date End Date
Mario Mueller [117] Active 23 June 2018 21 June 2019
Stefano Santi [117] Active 29 June 2018 28 June 2019
Mauro Scotto D'Abusco [117] Active 19 July 2018 18 July 2019

Research and Development

Sky News reported that IQOS would potentially reduce the number of noxious chemicals by 95 per cent, though research is still being carried out. [118]

Phillip Morris International published a white paper: 'Public Health —Much Harder than Rocket Science'. The document was presented to guests at the 2019 World Economic Forum gathering in Davos, Switzerland. The paper called for a ‘collaborative approach to ending smoking.’ [119]

According to Guardian, Philip Morris International funded and supervised research on the impact of plain packaging in Australia and insisted on seeing it before it was published. The study was "widely disseminated in the media and used by the tobacco lobby to make the case that the health initiative had no discernible effect on smoking rates among the young in Australia, and therefore should not be introduced in the UK." [120]

Philip Morris Korea Inc. strongly refuted the finding by the South Korean government that underscored health risks in the heat-not-burn cigarettes. If found guilty, the company could face punitive action. [121]

Portal Chemical & Engineering News reported that representatives from British American Tobacco, Japan Tobacco International, Philip Morris International, and Reynolds American attended the annual meeting of the American Society for Cellular & Computational Toxicology focused on non-animal toxicology testing. The website cited the ultimate goal to:

  "to convince officials at the U.S. Food & Drug Administration’s Center for Tobacco Products (CTP) that in vitro methods for predicting respiratory toxicology in humans are ready for prime time." [122]

A study conducted by Philip Morris International claims that smoking IQOs resulted in a “significant reduction” in lung-tumor formation in mice compared with traditional burnt tobacco. According to Bloomberg, the company studied the effects in mice of different levels of aerosol from heated tobacco, cigarette smoke and fresh air over 18 months. [123]

In 2017, Philip Morris International published 46 peer-reviewed papers in leading scientific journals. In 2017, Philip Morris International filled over 170 new patent applications. Philip Morris International currently have more than 2,900 Reduced Risk Products related patents granted worldwide and over 4,600 such patent applications pending.[124]

Marketing to Kids

For a list of youth-related marketing click here.

The company’s youth-oriented marketing efforts in recent years include: [125]

  • A new global campaign found to target youth: In 2011, Philip Morris launched a new global marketing campaign for its best-selling Marlboro cigarettes, called “Be Marlboro,” that used themes and images appealing to youth. With the slogan “Don’t be a Maybe. Be Marlboro,” the campaign’s ads featured young people partying, falling in love, playing music and engaging in risky behavior. The campaign expanded to more than 60 countries despite being banned by German authorities for targeting youth. [126]
  • Introducing and marketing new flavored cigarettes that attract kids: Philip Morris has introduced and promoted new flavored cigarettes in countries across the globe, products which have been banned in the United States precisely because they have been found to attract youth and other new smokers. Research conducted in five Latin American countries found that flavored cigarettes – including Marlboro and other Philip Morris brands – were observed at over two-thirds of retail locations visited. Examples of Philip Morris brands using menthol and other flavor descriptors include Marlboro Fusion Blast, Marlboro Double Fusion, Chesterfield Fresh Capsule, Marlboro Ice Blast and Marlboro Blue Ice. The introduction of new Marlboro brands that appeal to youth isn’t limited to Latin American. Philip Morris also touts the introduction of brands such as Marlboro Double Ice and Marlboro Touch Slim as “innovations delivering strong growth” in countries such as Turkey and the UAE. [127]
  • Marketing near schools: In its Code of Conduct, Philip Morris International promises not to market tobacco products to minors. However, research in more than 22 countries found cigarettes are being sold and promoted near schools, exposing children on a daily basis.[128] Previous research has found that advertising and promotions for Marlboro and other Philip Morris brands were prominently visible around primary (elementary) and secondary schools. This research has been conducted in several African countries, Indonesia and other low and middle-income countries. [129] [130]
  • Violating India’s tobacco marketing laws: According to a July 2017 report by Reuters, Philip Morris marketed Marlboro cigarettes by placing colorful ads at kiosks and handing out free cigarettes at parties frequented by young adults, in apparent violation of India’s tobacco control laws. [131]


Campaign for Tobacco-Free Kids investigation into over 100 social media campaigns by Philip Morris International, British American Tobacco, Japan Tobacco International and Imperial Brands revealed tobacco companies pay social media influencers on platforms like Instagram, Facebook and Twitter to advertise their products. [132]

Response from Philip Morris International:

  "Philip Morris International does not market or sell any tobacco or nicotine-containing products in the United States. We agree that youth should not have access to or use tobacco or nicotine in any form. PMI’s products are only for, and our marketing and sales activities are tailored to, adult smokers, in compliance with applicable laws in countries outside of the U.S.  None of our international activities are directed toward U.S. consumers or youth. [133]

Political Spending

For a list of political contributions in the United States look here.

Reporting and Regulation

Investigations

According to the Independent, British American Tobacco, Imperial Brands, Japan Tobacco International and Philip Morris International have all shifted their corporate structures to minimise their tax bills in the United Kingdom, researchers from the University of Bath found. Despite being headquartered in Britain, Imperial Brands paid an effective rate of just 13 per cent over the past seven years, during which corporation tax has varied between 20 per cent and 28 per cent. British American Tobacco is also based in the UK but paid “virtually no” corporation tax over the same period, including four consecutive years (2011-14) where it paid nothing at all, the paper found. [134]

India's main financial crime-fighting agency is investigating Philip Morris International’s Indian partner Godfrey Phillips for alleged violation of the country's nine-year-old government ban on foreign direct investment in the industry. [135] Members of the Egyptian Parliament are preparing to launch a thorough investigation into the activities of Philip Morris Misr LLC after several allegations are made of the tobacco company attempts to sack Egypt’s national industry of Cigarettes. [136]

As of September 2018, U.S. national securities law firm Faruqi & Faruqi is investigating potential claims against Philip Morris International, encourages investors who suffered losses exceeding USD 100,000 investing in the company to contact them. [137]

Tobacco Litigation

A Canadian court has upheld the bulk of a decision that ordered three tobacco companies to pay billions in damages. The judgment involves class action suits that were consolidated against Imperial Tobacco Canada, Rothmans Benson & Hedges and JTI-MacDonald. [138]

Philip Morris (New Zealand) is suing British American Tobacco (New Zealand), alleging its larger rival is breaching competition law by locking retailers into contracts designed to preserve its dominance in a NZD 2.5 billion market. [139]

A full list of tobacco industry litigation cases can be found here.

In recent years, Philip Morris has also filed numerous legal challenges, both in national and international courts, to strong measures designed to reduce smoking adopted by Australia, Canada, France, Norway, Panama, Uruguay and the United Kingdom. One of the company’s favorite tactics has been to challenge tobacco control laws as violations of international trade and investment agreements. Examples of the company’s legal challenges include:

  • Philip Morris International challenged Australia’s pioneering law requiring plain cigarette packaging both in Australia’s courts and in an international tribunal as a violation of a bilateral investment treaty between Australia and Hong Kong. The company lost both cases. According to media reports, Philip Morris has also helped finance an ongoing World Trade Organization challenge that several countries filed against Australia’s plan packaging law (Australia has reportedly won the case, but the World Trade Organization has not officially released its ruling).[140]
  • Philip Morris challenged Uruguay’s strong cigarette warning and labeling laws as violations of a bilateral investment treaty between Uruguay and Switzerland. In a landmark ruling, an arbitration panel of the World Bank ruled for Uruguay and ordered Philip Morris to pay Uruguay’s legal costs. [141]
  • In Thailand, Philip Morris’ ongoing legal challenge temporarily stopped the Ministry of Health from increasing the size of pictorial health warnings on cigarette packs. [142]
  • In Colombia, a Philip Morris subsidiary is suing a local government for protecting kids and vulnerable populations by banning sales of cigarette and other tobacco products around schools and health facilities, among other sales restrictions.[143]

In 2015, a Canadian court has ordered units of British American Tobacco, Philip Morris International and Japan Tobacco Inc. to pay CAD 15.6 billion in damages to Quebec smokers after a 17-year legal battle. [144]

Philip Morris Korea Inc., which refuted the finding by the South Korean government that underscored health risks in the heat-not-burn cigarettes, presenting its own clinical study in a press briefing to defend its original argument that "smokeless tobacco can reduce health risks". The Korean Ministry of Food and Drug Safety announced earlier this month that IQOS emits 9.3 mg of tar, a level higher than that of conventional cigarettes (0.1-8.0 mg). [145]

Philip Morris executives Andre Calantzopoulos (CEO), Martin G. King (CFO) and Jacek Olczak (COO) sold off millions of dollars stock while withholding information about the company’s stagnant sales, investors claim in a class action. [146]

The Supreme Court of Canada ruled in July 2018 that British Columbia does not have to grant access to the personal health data of Canadian citizens to Philip Morris International to determine "whether government claims about the cost of treating smokers were accurate". In the current case, Philip Morris sought, in the words of the government:

  “electronic health care databases which contain health care information of every person in British Columbia who has received health care benefits. These databases include individual-level records of every hospital, medical and other health care attendance, diagnosis and treatment provided during the past 25 years to each insured person.” [147]

Partners and Allies

Audit and Accounting

PricewaterhouseCoopers (PWC) are Philip Morris International's current auditors.[148] Appointed at the 2017 annual shareholder meeting. In 2017 PWC were selected by the office of the Directorate-General for Health and Food Safety, European Parliament, to perform an implementation study on ‘track and trace’ solutions in the tobacco industry. A question was raised if there would be a conflict of interest since PricewaterhouseCoopers offers it's own "track and trace" solution already and would potentially be in a position to audit themselves. [149]

Banking

Name Contract Status Notes Other Clients
Morgan Stanley (2018) Active Philip Morris International presented at the Morgan Stanley Global Consumer & Retail Conference in New York, November 2018. [150]

Consultancies and International Organizations

Name Contract Status Notes Other Clients
KPMG (2014) NA A KPMG conducted a study for British American Tobacco, Imperial Tobacco, Japan Tobacco International and Philip Morris International that revealed one in every ten cigarettes consumed in the European Union in 2013 were illicit. [153]
  • Siemens
  • Dangote Group
  • The State of Hawaii [154]
Verite (2016) NA Philip Morris International's global program partner, Verité has guided the development of the company’s Agricultural Labor Practices Program Progress Code and the approach to dealing with labor issues in tobacco-growing. [155]
  • Keurig
  • KnowTheChain
  • Patagonia [156]
International Organization for Migration (2016) NA Philip Morris International partnered with the International Organization for Migration (IOM) to provide assistance to the most vulnerable migrants and reduce exploitation and other forms of human-rights abuses in Italy's agricultural sector. The collaboration addressed immediate material needs, supports better access to social services, and provides legal and social counseling. The organization also provided emergency support to IOM in Serbia and the former Yugoslav Republic of Macedonia to build winterproof facilities for migrants at all stages of their journey. [157]

NA

Europtimum (2014) Not Active The office of former French MEP Dominique Vlasto nurtured a special relationship with Europtimum, a lobby consultancy firm based in Strasbourg. Edouard Debra, the director and founder of Europtimum, is a former parliamentary assistant of Vlasto. Philip Morris International was one of Europtimum's largest clients, generating between EUR 150,000 and 200,000 turnover for Europtimum in 2013. Philip Morris France was another client, generating between EUR 50,000 and EUR100,000 in 2013. [158]

NA

Institute for Democracy and Economic Affairs (2015) NA According to Tobacco Watch, the Malaysian libertarian think tank Institute for Democracy and Economic Affairs started receiving funds from Japan Tobacco International and Philip Morris in 2015. That same year, the organization started publicly opposing to tobacco control measures. [159]

NA

Rahmat Lim & Partners, Malaysia (Allen & Gledhill) NA Law firm for Philip Morris (Malaysia) Sdn Bhd [160]

NA

Bustaman & Co NA Law firm for Philip Morris (Malaysia) Sdn Bhd [160]

NA

FIM Moto GP (1992) Active The two organisations have collaborated for 26 years. As of 2019, PMI claims the partnership will focus on “advancing the cause of a smoke-free world”. [161]

NA

Conferences

Name Contract Status Notes Other Clients
One Young World Active Anti-Illicit Trade Intelligence Manager for Philip Morris International, Mustapha Ramli was one of the delegates for the 2018 One Young World Conference. [162] One Young World is a UK-based charity that gathers together young leaders from around the world. [163]

NA

Marketing, Communications and PR Companies

In 2018, number of Romanian social media influencers and IQOS brand ambassadors, including @Christina_ich [164] and @Mirela.Bucovicean [165] posted about IQOS products. They often use IQOS-related posts with #ad. Some also have included the hashtags: #promisiuneaiqos (IQOS promise), #iqosisnotriskfree, and #exclusivfumatoriloradulti (only adult smokers). [164] [165]

In October 2018, Philip Morris International won Gold Stevie Award in the Marketing Campaign of the Year - Corporate Reputation/ Professional Services category for the Philip Morris Makes a New Year's Resolution to Give Up Cigarettes. [166]

Name Contract Status Notes
Thirteen (McCann World Group Holdings) (2018) Active Philip Morris International appointed Thirteen on a project basis for an undisclosed IQOS product launch. [167]
Halogen (2018) Active According to a Public Interest Investigation website, Powerbase, Halogen Communications has been working with Philip Morris International to undermine the Scottish government's plan packaging laws. [168]
Klive (2018) Active Philip Morris International, along with several other brands and startups, have signed on to work with Klive – a new agency founded by a cohort of ex-Omnicom and WPP marketers. [169]
Instinctif Partners (2015) NA The UK Public Aīairs and Lobbying Register from June-August 2016 lists Philip Morris UK as one of Instinctif Partners clients. [170]
Other Creative London (2018) Active In October 2018, Philip Morris launched "Hold my light" with a campaign website and a film in which a woman navigates a maze of lasers to relinquish her cigarette lighter to a group of friends. The film was created by Trigger, while content is by Other Creative. Biddable media and programmatic video display was handled by Merkle Periscopix and Amplifi. [171]

The company was also responsible for Philip Morris'imagery behind the 2018 New Year's resolution announcement. [172]

Merkle Periscopix (2018) Active In October 2018, Philip Morris launched "Hold my light" with a campaign website and a film in which a woman navigates a maze of lasers to relinquish her cigarette lighter to a group of friends. The film was created by Trigger, while content is by Other Creative. Biddable media and programmatic video display was handled by Merkle Periscopix and Amplifi. [171]
Amplifi(2018) Active In October 2018, Philip Morris launched "Hold my light" with a campaign website and a film in which a woman navigates a maze of lasers to relinquish her cigarette lighter to a group of friends. The film was created by Trigger, while content is by Other Creative. Biddable media and programmatic video display was handled by Merkle Periscopix and Amplifi. [171]
Trigger (2018) Active In October 2018, Philip Morris launched "Hold my light" with a campaign website and a film in which a woman navigates a maze of lasers to relinquish her cigarette lighter to a group of friends. The film was created by Trigger, while content is by Other Creative. Biddable media and programmatic video display was handled by Merkle Periscopix and Amplifi. [171]
Pagefield Communications (2017) Active

Official statement on working with the tobacco industry: "Working for a tobacco company is always a contentious decision for agencies like ours, especially when the role involves reputation management. Too many consultancies – if they take on that work – are only too happy to conceal the work they are doing.

We did the opposite from day one of our three-year partnership with Philip Morris’s Reduced Risk business.

Up on our website went the Philip Morris logo. Three years later and as recently as last night, we won an international PR industry award for our work launching the groundbreaking IQOS – a reduced risk, heat-not-burn product which is 95 percent less harmful than standard cigarettes. Getting shortlisted against far less contentious brands was a victory in itself. Winning for work with a tobacco brand was a massive achievement and a pleasant but not complete surprise.

We were in a fortunate situation. First and foremost, we had already made the decision that if we were to work Philip Morris, it would be because it was creating viable, safer and scientifically-proven alternatives to traditional tobacco products.

When they approached us to help lay the groundwork for the launch of IQOS, it was an easy decision. This – alongside the business’ move towards reinventing itself – made for a worthwhile and fascinating brief.

So, what lessons have we learnt from this campaign that are applicable to other distrusted companies planning to launch a significant, transformative new product or business model?

Firstly, the work we all do for our clients is essentially about developing a robust argument. This does not need to be in the confrontational sense. It can be a strident view, a case or perhaps just a story. But central to all of these there is usually a position which is designed to convey or convince, with evidence in support. Essentially, this is all about putting across the position of our clients in the most interesting and convincing way – but most crucially, always remaining loyal to facts and values.

Second, equally important is the purpose (or values) behind the transformation. For the first time Philip Morris was prepared to commit to a smoke-free future. Purpose was put ahead of product and that made for a more captivating story.

Third is the power of transparency. In a highly regulated market where advertising of tobacco products is illegal, it was crucial for Philip Morris to open up as much as possible. Historically, tobacco businesses have been evasive and reluctant to do this. We therefore made an early decision to push to be as transparent as possible. What better way to do this than giving The Today programme full access to the story and Philip Morris’ headquarters and research and development centre in Switzerland.

Tobacco businesses, like other businesses in controversial sectors, will never fully escape their past and earn the halo that less contentious businesses can earn. But if they are finally trying to change and are investing billions in creating products and scientific solutions that will eventually consign cigarettes to the past, then why shouldn’t people know about it?"[173]

2017 SABRE awards winners for launching IQOS and Helping the Tobacco Giant Quit Smoking [174]

Feinstein Kean Healthcare (2017) Active Feinstein Kean Healthcare, wholly owned subsidiary of Ogilvy PR, provides an array of communications and consulting services to biotechnology, pharmaceutical and other healthcare companies. As of March 2018, Lynn Blenkhorn is listed as a media contact for the Philip Morris-funded Foundation for a Smoke-Free World. [175]
CNC Communications, now KEKST CNC (2014) TBC Kekst CNC's clients include a broad range of public and private companies, institutions, alternative investment firms, and non-profit organizations. [176] Tobacco Tactics reposrts CNC listed Philip Morris as a client in the 2014 EU Transparency Register. [177]
Mercury NA Altria's key lobbying firm in Washington DC< Mercury was also hired by the Foundation for a Smoke-Free World. [178]

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