Philip Morris Shifts Regions, Executives -- WSJ
September 29 2017 - 3:02AM
Dow Jones News
By Ezequiel Minaya
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (September 29, 2017).
Philip Morris International Inc. is reorganizing its geographic
regions and executive ranks -- including naming a new chief
financial officer -- in efforts to propel the company's shift away
from cigarettes.
The tobacco company has previously announced plans to focus on
what it calls "smoke-free" products and less on cigarettes amid
volume declines. Several major tobacco companies have sought to
roll out new, electronic tobacco-heating devices that they say are
healthier alternatives to traditional smoking, but feel more like
puffing on a real cigarette. The firms have pursued the direction
as the once-explosive growth of e-cigarettes recedes.
Finance Chief Jacek Olczak will be appointed chief operating
officer, responsible for global strategy and "the delivery of
results for combustible and reduced-risk products," the company
announced Thursday. Mr. Olczak joined the company in 1993 and from
2009 to 2012, he served as president of Philip Morris's European
Union region.
Martin King, president of Philip Morris's Asia region, will
become CFO. Mr. King joined the company in 2003 from Philip Morris
USA, now a subsidiary of Altria Group Inc.
The company added that it would operate in six geographic
regions, up from its current four. The European Union division and
the Latin America and Canada region will remain the same. The
Eastern Europe region will be split off from the Middle East and
Africa. The other segments will include the East Asia and Australia
region, and the South and Southeast Asia region.
"The changes we are announcing today reflect our desire to best
equip, empower and support our organization as we transform within
a rapidly evolving environment," said Chief Executive Andre
Calantzopoulos in prepared remarks, detailing about a dozen new
executive assignments in all.
Philip Morris is seeking Food and Drug Administration approval
for a heat-not-burn device called IQOS. In a partnership with
Altria Group -- which spun off Philip Morris from it in 2008 -- the
companies hope to sell IQOS under the Marlboro brand in the U.S.
Philip Morris also hopes to market the product as being safer than
cigarettes, a claim that must be approved by the FDA.
Philip Morris has centered much of its future strategy on its
IQOS effort, opening dedicated stores in cities such as London and
Tokyo to sell the device.
Shares in Philip Morris, up 22% so far this year, rose 0.3% to
$111.89 in morning trading.
--Saabira Chaudhuri contributed to this article.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
September 29, 2017 02:47 ET (06:47 GMT)
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