Filip Morris Sales and Marketing Philip Morris

History

2023: Talks to sell assets in Russia deadlock

Cigarette maker Marlboro, Bond and Parliament said in February 2023 that negotiations to sell Russian assets had stalled. According to the CEO of Philip Morris International, the company will "rather leave" business in Russia than sell it on bad conditions for shareholders, but no one understands how to achieve a profitable deal.

2022: Business valuation in Russia amounted to $2.6 billion

Philip Morris valued its business in Russia at $2.6 billion. The tobacco company is not going to leave the Russian market, as it announced in October 2022.

Philip Morris plans to create a self-sufficient independent organization in Russia. The company continues to actively work on possible options in the context of a rapidly changing regulatory environment, the cigarette maker said in a statement.

Philip Morris valued its business in Russia at $2.6 billion

At the same time, PMI affiliated companies in the country, including a factory in the Leningrad Region, continue to work and retain jobs. In accordance with the previously available letter for employees of the organization, "the goal is to create by the end of 2022 a self-sufficient organization in Russia capable of doing business with maximum independence."

According to the company, now it has solved the main issues with logistics and production has reached a stable level, more than 3,200 employees retain their jobs.

In July 2022, Philip Morris announced its intention to decide on a possible scenario for restructuring Russian business, including the transfer of assets, and to leave the Russian market. It was noted that the company intends to reorient to the Asian and European markets.

At the same time, executive director Jacek Olczak emphasized that the Russian market is the seventh largest for the company. Since Philip Morris accounts for 27% of all tobacco products, care will not be easy. Earlier, on March 9, 2022, it was reported that PMI is reducing production volumes, as well as suspending planned investments and the launch of new products in Russia.

The author of the auto-tracking strategies of the company Finam"" Dmitry Markov in a conversation with Businessman"" the fair value of JSC Filip Morris Izhora"" in 130 billion, rubles LLC "Filip Morris Sales and" in Marketing 60 billion rubles, the value of all assets of "Filip Morris" in Russia - in 190 billion rubles.

2021: Closure of one of Russia's two tobacco factories

In mid-October 2021, Philip Morris announced the closure of one of its two tobacco factories in Russia. The reasons for this decision are associated with a decrease in the volume of the tobacco market and the growing share of illegal cigarettes, as well as the popularity of electronic heaters.

According to TASS, the manager for corporate issues of affiliated companies "Filip Morris international in Russia," South region Alisa Andreeva, the enterprise in Krasnodar will stop working in February 2022. All production facilities of the company in Russia will focus on the facility in the Leningrad Region, which by October 2021 continues to operate normally.

Philip Morris closes one of two tobacco factories in Russia due to the popularity of e-cigarettes

According to Andreeva, Philip Morris has been working for several years in "conditions of a constant decrease in the volume of the tobacco market in Russia and a high share of illegal cigarettes." This prevents the company from constantly providing the necessary capacity load in factories.

The company promises to provide financial support to employees of the Kuban factory and provide opportunities for retraining and training, as well as professional advice and assistance in further employment.

Philip Morris in Krasnodar by October 2021 is one of the largest enterprises in the industry in southern Russia. It employs about 240 people. According to the company's website, the factory is one of the largest production centers of Filip Morris international in the world. The total volume of investments for the reconstruction and capital modernization of the factory exceeded $200 million.

More than $1.1 billion has been invested in the company's enterprise in the Leningrad Region, operating since the beginning of 2000, by October 2021. In total, Philip Morris, developing cigarette brands such as Marlboro, Parliament, Chesterfield, L&M, Bond Street and Next, has invested at least $2 billion in Russian production.^[1]

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