Philip Morris USA

Philip Morris USA is the leading cigarette company in the United States. 

Philip Morris USA’s goal is to be the most responsible, effective and respected developer, manufacturer and marketer of consumer products, especially products intended for adults.  The company’s core business is manufacturing and marketing the best quality tobacco products to adults who use them. 

Philip Morris USA has manufacturing, processing and support facilities throughout the United States.

Marketing Excellence and Innovation

Philip Morris USA is the maker of Marlboro in the United States.  For the full-year 2006, four of every ten cigarettes sold in the United States were Marlboro cigarettes, as measured by the IRI/Capstone Total Retail Panel.  Other brands of Philip Morris USA include Basic, Merit, Benson & Hedges, Virginia Slims, Parliament, Cambridge, Alpine, Chesterfield, Lark, L&M, Players and Saratoga.

The tobacco settlement agreement, signed in 1998, fundamentally changed the way cigarettes are advertised, promoted and sold in the United States.  The settlement agreement impacts every aspect of Philip Morris USA’s marketing practices.  The company markets its cigarettes responsibly to adult smokers, while complying with the letter and spirit of the settlement agreement. 

Performance and Financial Strength

For the full year 2006, PM USA's domestic tobacco business, achieved solid retail share and income growth.

Operating companies income increased 5.0% to $4.8 billion, primarily driven by lower wholesale promotional allowance rates, partially offset by lower volume. Results for 2005 included charges for the disposition of pool tobacco stock and a $56 million accrual for the Boeken case, partially offset by the reversal of a 2004 accrual related to tobacco quota buyout legislation.

Shipment volume of 183.4 billion units was down 1.1% versus 2005 but was estimated to be down approximately 1.5% when adjusted for trade inventory changes and the timing of promotional shipments. Premium mix for PM USA increased by 0.5 percentage points to 92.1% in 2006.

PM USA's total retail share increased to 50.3% in 2006, driven by Marlboro and Parliament. PM USA's share of the premium category declined 0.1 share point versus the prior year to 62.0%, as gains by Marlboro and Parliament were more than offset by category share losses incurred by other PM USA non-focus premium brands. PM USA's share of the discount category grew 0.1 share point to 16.4%, reflecting the performance of Basic. The total industry's premium category share increased 0.8 points to 74.4% in 2006, while the discount category share correspondingly declined to 25.6%. Within the discount category, industry share of the deep discount segment (which includes both major manufacturers' private label brands and all other manufacturers' discount brands) declined 0.2 share points to 11.6%.

Read more about Philip Morris USA’s financial information.

Commitment to Responsibility

Philip Morris USA has policies, practices and positions in place to address the many issues that are important not only to them but also to a broad range of its stakeholders including the general public, the public health community, parents, community leaders, decision makers, and the government, including:

• Having a dedicated Youth Smoking Prevention department that supports youth programs, produces advertising for parents and conducts ongoing research—all with the sole purpose of helping to prevent youth smoking;
• Striving to foster an environment in which its employees can contribute their time and energy to their families, neighbors, colleagues and communities; 
• Encouraging the proper disposal of cigarette litter; and
• Recognizing the public’s concern about smoking is legitimate and that calls for additional regulation are well-founded, because cigarettes cause serious diseases in smokers. 

Read more about Philip Morris USA’s initiatives and programs.

Compliance and Integrity

The U.S. cigarette business is governed by a significant number of federal, state, and local legal and regulatory requirements.  Philip Morris USA has a long-standing commitment to meeting these requirements, as well as internal policies and commitments that govern all its activities.

“Compliance is a key business objective for each and every one of our employees,” Michael E. Szymanczyk, Chairman and CEO of Philip Morris USA has stated.  “It goes hand in hand with the company’s financial and other goals.  It’s also the right thing to do… not only for the company, but also for the well-being and protection of our employees and our external stakeholders.”

People and Careers

Philip Morris USA’s success comes from the diverse array of talented people including world-class engineers and researchers, highly trained manufacturing specialists, and experts in sales, marketing, finance, communications and human resources.  Philip Morris USA has enjoyed a low turnover of employees, including its unionized plant specialists.

Access Philip Morris USA's careers Web site to search jobs, research opportunities in the Student Center, create a profile and find information on events, benefits and why you might want to work for PM USA.  Find out more about jobs and careers at Philip Morris USA for both professionals and students.

To learn more about Philip Morris USA, please visit the company’s Web site at www.philipmorrisusa.com.

Contact Information

Philip Morris USA
Consumer Affairs
P.O. Box 26603
Richmond, Virginia 23261
Tel: 804-274-2000 
(main line) or
800-343-0975
(consumer line)
E-mail: Contact PM USA

Related Information

On Altria.com:

• People at PM USA
• Our History - Philip Morris USA