MADRID, April 1, 2013

Philip Morris International to Purchase 30% More Spanish Tobacco

Madrid, April 2, 2013 - Philip Morris International (PMI) today announced that it is strengthening its long-term commitment to the future of tobacco growing in Spain by renewing its Framework Collaboration Agreement with the Spanish Ministry for Agriculture, Food and the Environment for the next three years. As part of the new Agreement signed today in Madrid and subject to the agreed terms, PMI will buy 33 percent more of the Spanish tobacco crop in 2013 compared to 2012. In 2014 and 2015 PMI will increase its tobacco purchases by an annual rate of approximately 5 percent.

The new Agreement was signed by Spain’s Minister for Agriculture, Food and the Environment, Miguel Arias Cañete, and Spaniard Drago Azinovic Gamo, President of PMI’s European Union Region.

“We are pleased with this Agreement which reaffirms the support of the Spanish Government, the Regional Government of Extremadura and PMI for the continued, sustainable growth of quality tobacco leaf in Spain. Despite the increasingly competitive and continually changing business environment, PMI remains committed to the future of this sector and the jobs it creates in Spain,” said Drago Azinovic. “It is for this reason that along with the entire tobacco sector, we are especially concerned about the impact the extreme proposals in the proposed European Tobacco Products Directive currently being debated in Brussels. This Directive could very negatively affect the entire sector that in our country generates 56,000 jobs and approximately 6 percent of the Spanish government’s total tax revenue.”  

The Agreement reaffirms the commitment that PMI, the Government of Extremadura and the Spanish Ministry for Agriculture and Environment have made to focus on efforts to improve the quality of Spanish tobacco and make it more competitive, particularly against the backdrop of an increasingly challenging economic and regulatory environment. It also includes provisions that will enhance the environmental sustainability of tobacco growing areas by encouraging good agricultural practices. To assist in putting these practices into place, PMI will offer tobacco growers’ associations and others involved in the growing and processing of tobacco training sessions on good agricultural practices over the next three years.

About Philip Morris Spain

Philip Morris Spain S.L, an affiliate of Philip Morris International, the world’s leading tobacco group, has been operating in Spain for 40 years and currently employs 375 professionals distributed between its work centres in Barcelona, Las Palmas, Madrid, Oviedo, Seville, Tenerife and Valencia. Philip Morris Spain markets the world’s leading cigarette brand, Marlboro, as well as other famous brands like Chesterfield and L&M.

About Philip Morris International Inc.

Philip Morris International Inc. (PMI) is the leading international tobacco company, with seven of the world’s top 15 international brands, including Marlboro, the number one cigarette brand worldwide. PMI’s products are sold in more than 180 markets. In 2012, the company held an estimated 16.3% share of the total international cigarette market outside of the U.S., or 28.8% excluding the People’s Republic of China and the U.S. For more information, see www.pmi.com.

About philip morris international inc.

PMI is the world’s leading international tobacco company, with six ot the world’s top 15 international brands and products sold in more than 180 markets. In addition to the manufacture and sale of cigarettes, including Marlboro, the number one global cigarette brand, and other tobacco products, PMI is engaged in the developement and commercialization of Reduced-Risk Products (RRPs). RRPs is the term PMI uses to refer to products with the potential to reduce individual risk and population harm in comparison to smoking cigarettes. Through multidisciplinary capabalities in product development, state-of-the-art facilities, and indusrty-leading scientific substantiation, PMI aims to provide an RRP portfolio that meets a broad spectrum of adult smoker preferences and rigorous regulatory requirements.

For more information

See pmi.com and pmiscience.com

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