Philip Morris International

PMI is a U.S. company with headquarters in Lausanne, Switzerland. PMI is ranked second in the global tobacco market behind the China National Tobacco Company.
• PMI ranks second in the Russian cigarette market with 26% of the market in 2009.
• Russia is PMI’s largest market and is still considered an emerging market that PMI specifically targets to improve the growth of the company.
o “Russia [is] one of the key drivers of PMI’s strong overall results during the first half of 2008” according to Leo McLoughlin, Managing Director of PMI Affiliates in Russia.
• When Russia was part of the USSR, PMI signed an Agreement on Scientific and Technical Cooperation allowing production of PMI brands under its license in the USSR between 1977 and 1986. In 1992, PMI opened its first representative office in Moscow.
• PMI operates through three entities in Russia, but is generally known as Philip Morris International.
o Philip Morris Sales and Marketing Ltd. - Has about 100 offices throughout the country.
o OAO Philip Morris Kuban- A manufacturing facility acquired in 1993 and opened for production in 2000.
o ZAO Philip Morris Izhora- Construction of factory began in 1998 and production started in 2000.
• In 2009 PMI produced 390 billion cigarettes in its Russian factories.
• In 2008, PMI was the leader in the premium-priced cigarette segment, but as consumers down trade to cheaper brands, PMI continues to prosper because of its strong portfolio of brands in all cigarette segments.
• PMI continues to introduce new products and profit from the Russian market despite tough economic conditions.
o In a presentation to Morgan Stanley, PMI’s CEO Louis Camilleri stated that “Our business momentum [in Russia] continues unabated, the distribution network, which over the years has been consolidated, is working efficiently and effectively