In this article let’s take a look at Philip Morris International Inc. (PM), the global tobacco giant that sells cigarettes in over 200 countries, which manufactures and markets the number one cigarette brand: Marlboro.
Philip Morris and Altria Group Inc. (MO) have reached agreements to sell electronic cigarettes and other smokeless products. Philip Morris has exclusive rights to sell Altria’s e-cigarettes (battery-powered devices that heats a liquid nicotine solution in a disposable cartridge and create a vapor that is inhaled) outside the U.S. On the other hand, Altria gains exclusive rights in the U.S. to other tobacco products developed by Philip Morris.
Further, both companies will work together to improve existing products. Altria and Philip Morris International produce and distribute Marlboro, the world’s leading cigarette brand, with an admirable pricing power due to smoker’s fidelity. Altria sells Marlboro in the U.S. and Philip Morris sells Marlboro outside the U.S.
— Guru Focus