Businessweek

Philip Morris International Inc. engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States of America. The company’s products are sold in approximately 180 markets. Its portfolio comprises both international and local brands. The company’s portfolio of international and local brands is led by Marlboro, an international cigarette. Marlboro is complemented in the premium-price category by Merit, Parliament, and Virginia Slims. Its major mid-price brands include L&M and Chesterfield. Other major international brands include Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also owns various primary local cigarette brands, such as Sampoerna, Dji Sam Soe, and U Mild in Indonesia; Fortune, Champion, and Hope in the Philippines; Diana in Italy; Optima and Apollo-Soyuz in Russia; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. Geographic Regions The company’s geographic regions include Algeria, Argentina, Australia, Austria, Belgium, Canada, Colombia, the Czech Republic, Egypt, Finland, France, Germany, Greece, Hungary, Indonesia, Italy, Japan, Kazakhstan, Korea, Mexico, the Netherlands, the Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Serbia, Singapore, Spain, Sweden, Switzerland, Thailand, Turkey, and Ukraine. Distribution The four primary types of distribution that the company uses worldwide include direct sales and distribution, where the company has set up its own distribution directly to retailers; distribution through single independent distributors who are responsible for distribution in a single market; zonified distribution, where distributors are assigned a territory within a market to enable them to obtain a suitable return on their investment; and distribution through national or regional wholesalers that then supply the retail trade. In various markets, the company also directly supplies key accounts, including gas stations, retail chains, and supermarkets. Intellectual Property The company owns the trademark rights to its principal brands, including Marlboro, or has the right to use them in various countries where the company uses them. In addition, it has approximately 3,400 granted patents worldwide and various pending patent applications. Seasonality The company’s business segments are not significantly affected by seasonality, although in certain markets cigarette consumption trends rise during the summer months due to longer daylight time and tourism. History Philip Morris International Inc., a Virginia holding company, was incorporated in 1987.