Philip Morris International is the world’s leading international tobacco company with eight of the world’s top 15 international brands, including Marlboro, the top cigarette brand in the world.
Philip Morris International Tobacco Company
Until a spin-off in March 2008, Philip Morris International was an operating company of the Altria Group. The independent Philip Morris International sells tobacco products in the international markets while Altria maintains its operations in the US. Philip Morris International competes with British American Tobacco, Japan Tobacco and Imperial Tobacco Group plc in its various geographical segments.
Since the spin-off, PMI has become the world’s largest international tobacco company and the third most profitable international consumer goods company. While the U.S. tobacco sales revenues have been in decline as Altria struggles to cope with higher state tobacco tariffs and the tobacco industry’s negative image in the US, international sales continue to grow for Philip Morris International.
In 2010, Philip Morris International‘s brands sold in approximately 180 countries, giving it an industry leading estimated share of 28% of the total international cigarette market, excluding China and the U.S., with the No. 1 or No. 2 market position in many countries. Its portfolio has a wide range of premium, mid-price and low-price brands, which include both international and local brands.
PMI Consists of the Following Regional Segments: Europe; East Europe, Middle East and Africa; Asia; and Latin America & Canada.
Philip Morris International benefits from its significant geographic diversification with good exposure to the higher growth emerging markets and the high-margin developed markets. With the emerging markets like South East Asia, Africa, Middle East and Eastern Europe witnessing industry volume growth or stability, Philip Morris International has been expanding its market share in these segments through organic and inorganic growth.
At the same time, even though the developed markets like Western Europe, Russia, Australia, Japan, South Korea, etc. have been undergoing industry volume decline, they form strong markets for Philip Morris International’s premium brands like Malboro and Parliament that provide it with higher operating margins through higher pricing.
