Philip Morris International

With its position in the United States firmly established, Philip Morris Incorporated decided to market its products around the world. In 1954 it set up Philip Morris (Australia) Ltd and followed it the year after with Philip Morris Overseas - an international division that, in 1961, was to become Philip Morris International.

The scene was now set for an impressive international sales expansion through licensing agreements and a rapidly growing number of company-owned affiliates around the world. In 1963, the Swiss Fabriques de Tabac Reunies became our first cigarette manufacturing affiliate in Europe. More were soon to follow.

By 1972 Philip Morris International's volume stood at 113 billion units; production and sales already covered a large number of markets around the globe. The company developed an American-blend cigarette for distribution in what was then the Soviet Union, and by 1977 it had opened a road into the market behind the Iron Curtain.

Since it was formed, Philip Morris International has worked hard to establish a presence in countries and territories around the world, including Central and South America as well as Japan. Between 1981 and 2005 production volumes grew from 249 billion discount cigarettes to 805 billion. Operating income grew proportionately.

But it was in the 1990s that the strictly controlled markets of Eastern Europe were thrown open to enterprise, and Philip Morris acquired controlling interests in several factories in Lithuania, Russia and Poland, while building new factories in cities such as Russia's St Petersburg and Almaty in Kazakhstan.

Today Philip Morris International's products represent almost 15% of the world's cigarette market. We pride ourselves on our achievements, but we're still working hard to maintain our commercial success and to pursue growth throughout the world.

Tobacco has always attracted strong criticism. For example, you could argue that it was James I of England who in 1603 started the first government anti-smoking campaign, with his famous treatise "A Counterblaste to Tobacco".
"The first government anti-smoking campaign dates from the early 17th century."

Shortly after, James I raised the import duty on tobacco by exactly two thousand per cent. His subjects evaded the tax by smuggling and home cultivation. So James switched tactics again and, in 1615, made the import of tobacco a royal monopoly: the strongest opponent of smoking had become one of its main beneficiaries.

And still, despite such controversy, tobacco consumption spread around the world within a few centuries.

Originally from the Americas, where the natives used tobacco for ceremonial and medicinal purposes, its import into Europe, following Columbus's voyages, marked a new stage in its history. From the 15th century its consumption steadily grew. By the 18th century tobacco was traded internationally and had become part of most cultures. By the 19th century, cigarettes had started to supplant its use in pipe smoking, chewing and snuff.

But it was only with the invention of an efficient cigarette machine in 1880, which produced 200 cigarettes a minute, that the modern tobacco industry came into being. Mass production heralded a drop in cigarette prices and made mass consumption possible.

Tobacco has remained controversial to this day. Nonetheless millions of people around the world continue to smoke. For more about smoking and health, please see the "Smoking and health" section of our site.