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Philip Morris Companies Inc. Annual Report 910000 the Stren Gth of Our Brands Begins with Our People.

Date: 27 Jan 1992
Length: 60 pages
91085387-91085446
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Author
Miles, M.A.
Murray, W.
Type
CONT, CONTRACT/AGREEMENT
BUDG, BUDGET/BUDGET REVIEW
CHAR, CHART/GRAPH/MAPS
PHOT, PHOTOGRAPH
Area
PETERSON,AL/FINANCE
Alias
91085387/91085446
Site
N89
Named Organization
Audit Comm
Ca Tabacalera Nacional
Citibank
Citicorp
Colima Holding
Comm on Public Affairs + Social Responsi
Compensation Comm
Coopers Lybrand
Detroit Diesel
Dime Savings Bank
FDA, Food and Drug Administration
Finance Comm
Foreign Policy Inst
General Foods
Hunton Williams
Investment Comm
Jacobs Suchard
Johns Hopkins Univ
Kraft
Kraft General Foods
Marlboro Brand Group
Miller Brewing
Mission Viejo
News
Nj Supreme Court
Nominating Comm
Ny Stock Exchange
Penske
Penske Truck Leasing
Philip Morris Board of Directors
Pittson
PM, Philip Morris
Rosen Katz
Rothmans Intl
Tiec, Executive Comm(TI)
Tx Intermediate Court Appeals
Univ of Pa
US Supreme Court
US West Communications
1st Chicago Trust Co of Ny
7 Up
Named Person
Bailey, E.E.
Bartlett, D.T.
Beran, D.R.
Bible, G.C.
Bloom, S.J.
Bogeat, L.
Bring, M.H.
Brittain, A. III
Brown, B.S.
Brown, H.
Buzzi, A.G.
Campagnaro, M.
Campbell, W.I.
Carney, A.L., J.R.
Case, B.J.
Charles, J.L.
Chung, Y.
Cipollone
Cordidofreytes, J.A.
Cullman, J.F. 3rd
Dangoor, Der
Darrah, S.C.
Delisi, N.J.
Devitre, D.
Donaldson, W.H.
Douglas, P.W.
Dudley, O.W.
Evans, J.
Finch, C.R.
French, S.T.
Fuller, C.L.
Gates, L.A.
Gembler, A.
Goldberg, M.S.
Greenberg, D.I.
Hirao, Y.
Houghton, K.S.
Hower, J.C.
Huntley, Rer
Johnson, C.A.
Jones, L.
Karandjoulis, G.
Kearns, T.M.
Kirby, D.M.
Knox, G.L. III
Kramer, J.
Kuhlman, J.R.
Kurimsky, F.R.
Laux, F.J.
Levan, S.A.
Lewis, G.R.
Linehan, K.M.
Lund, N.B.
Maher, R.
Maxwell, H.
Mccormack, E.J.
Merlo, E.
Mikulay, R.L.
Milby, D.L.
Miles, M.A.
Millington, H.
Mize, E.H.
Moore, T.J., J.R.
Moreno, F.J.
Morgan, J.J.
Murdoch, R.
Murphy, J.A.
Murray, W.
Nelson, D.H.
Nelson, J.R.
Olson, R.D.
Osdene, T.S.
Parrish, S.C.
Parson, R.D.
Penske, R.S.
Piskor, S.
Pogue, E.
Pollak, L.
Raporte, J.
Reed, J.S.
Richman, J.M.
Ripley, R.
Rosenfeld, I.
Salguero, C.E.
Schreer, P.
Serrano, M.A.
Smiy, W.C.
Sompolski, T.A.
Steele, H.G.
Storr, H.G.
Sullivan, T.C.
Surgeon General
Szymanczyk, M.E.
Taylor, J.
Taylor, W.P.
Thoma, W.
Tucker, J.J.
Vice, T.J.
Wall, C.R.
Webb, W.H.
Wellmann, H.
Wexler, L.S.
Whist, A.
Wickham, K.P.
Young, M.B.
Date Loaded
05 Jun 1998
Request
R1-004
Litigation
Stmn/Produced
Author (Organization)
Coopers Lybrand
PM, Philip Morris
Brand
Alpine
Astor
Benson & Hedges
Bond Street
Bristol
Bucks
Cambridge
Chesterfield
Congress
L&M
Lark
Longbeach
Marlboro
Merit
Merit Ultima
Multifilter
Muratti
Parliament
Peter Jackson
Philip Morris
Virginia Slims
UCSF Legacy ID
bbx90e00

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Left: Paula Sneed discusses Jell-O Jigglers promo- tions with staff members. Top: At our Breyers ice cream facility in Massachusetts, Joseph Crowley has increased productivity while cutting energy use. Above: Thomas Kessler and Marjorie Cox monitor the Oscar Mayer luncheon meats line. and sour cream. We also increased our refrigerated foods presence by expanding DiGiorno refrigerated pasta and sauces. Among our refrigerated meats, the Oscar Mayer brand benefited from continued growth in its Deli-Thin sliced meats, the successful national expansion of a lower fat bologna line, and a repositioning of Variety Pak products to respond to growing consumer interest in submarine-style sandwiches. In addition, Lunchables lunch com- binations maintained a strong category share. We held our leading share posi- tions in poultry-based luncheon meats and hot dogs, and the national introduction of Louis Rich turkey bacon brought us the leading share of the category. However, a com- bination of increasing price competition and slowing category growth in turkey hurt the overall per- formance of the Louis Rich brand. We are confident that initiatives under way will strengthen both the Oscar Mayer and Louis Rich brands. Many of our frozen products posted strong results. Dairy prod- ucts, which account for more than half our revenues and income from frozen products, continued to build volume, aided by the introduction of Cool Whip Lite whipped toppings. U.S. volume for Lender's frozen bagels grew 6%, with category share reaching 82%. Now sold in 35 states, Tombstone pizza continued to increase volume while expanding geographically, and it is the fastest- growing frozen pizza brand in the United States. Tombstone Special Order pizza, introduced last year, was particularly successful. In frozen entrees and dinners, however, we have had to step up marketing efforts in an increasingly competitive environment. The All American Gourmet Company built volume by introducing frozen prod- ucts such as Budget Gourmet Hot Lunches, Quick Stirs, and Light & Healthy Dinners. And Birds Eye improved its product mix by empha- sizing its vegetable and sauce offerings, which include new Birds Eye easy recipes add-meat meals. At KGF Commercial Products, volume increased in both the food- service and food ingredients divisions, although income declined slightly due to the recession's impact on consumption of food away from home. Implementing a total quality management program registered under the name Service So Good We Put Our Name On It!, Kraft Foodser- vice built volume by selling more to existing accounts as well as by open- ing new ones. Kraft Food Ingredients continued to benefit from good per- formances in its oil products and specialty ingredients businesses. As Kraft General Foods begins its fourth year, we are continuing to integrate our operations. In 1991, we created the Southeast Distribution Center, combining the warehousing operations of General Foods USA, Oscar Mayer, Kraft USA, and KGF Frozen Products, to give our custom- ers a single point of access. We are planning to extend this project to include common order and transac- tion management, customer service, and logistics. Joint promotions such as The Great American Breakfast and Holiday Homecoming provide still another source of synergy. Running for the second time, Holiday Homecoming united 38 brands through a special KGF magazine featuring recipe and decoration ideas. Both promotions were highly successful. W
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0 i" 1ki i iN We are among the official spon- sors of the 1992 Olympics. As a kickoff for the program, 30 Kraft USA brands, joined by Birds Eye, Jell-O, Oscar Mayer, and Maxwell House brands, "set the Olympic training table" in meals for over 3,000 Olympic hopefuls at U.S. Olympic Training Centers. Through these and other busi- ness-building tactics, we plan to protect and revitalize our key brands. We expect improved performance in our North American food operations, particularly in the second half of 1992. Our international food operations continued to turn in a strong per- formance, with volume up 16% and income up 34%. KGF International's three core product groups are cof- fee, confectionery, and cheese. We are already the clear leader in the $16 billion coffee business in Europe, and we are continuing to build our established Jacobs, Maxwell House, Jacques Vabre, Grand' Mere, Gevalia, and HAG brands. Jacobs Kronung coffee, the largest single brand in the entire German grocery trade, launched a light line extension, which gained two share points after only six months on the market. We also brought the light coffee concept to our Monarch brand in Austria and ourMaxwell House brands in the United Kingdom. In confectionery, we are capital- izing on our strong Jacobs Suchard portfolio of trademarks -Milka, Cote d'Or, Suchard, and Toblerone chocolates-with numerous line extensions. Milka chocolates, for example, are already Europe's lead- ing chocolate brand, and are avail- ~ ra WN I r~0 IN W able in a wide variety of forms across the Continent. To build on our presence in the $2.8 billion European process cheese category, we are introducing a variety of low calorie and reduced fat cheeses throughout the region. We launched Kraft Light Singles cheese slices in the United King- dom, Kraft Tranchette light cheese slices in Spain, and low fat Qremor fresh cheese in Germany. We also introduced Philadelphia Brand reduced fat cream cheese products in Italy, Belgium, and Germany. In other market expansions, we brought Philadelphia Brand cream cheese into Sweden and Greece; ourMiracoli Italian dinners and sauces into Holland and Sweden; and light, low cholesterol dressings into Spain and Australia. Through a joint venture, we will be marketing Yoplait yogurt and dairy dessert products in Italy through our well-developed Invernizzi store delivery system. Geographic expansion into newly accessible markets provides another source of growth. We are offering our coffee, confectionery, and other food products in the former East Germany, and we now have a joint venture production and marketing agreement with BEV, the largest con- fectionery company in Hungary. We also brought our brands into Hun- gary, Czechoslovakia, and Poland, as markets began to stabilize. And by introducing Gevalia coffee in Fin- land, we have built on the brand's strong presence in the Scandinavian region. In the Asia/Pacific region, our fastest-growing major food business is coffee. In Japan, our Maxim brand continues to gain share in the rapidly expanding roast-and-ground market. We also expanded Blendy soluble coffees into the ready-to- Top: In Ldrrach, Germany, Hans Maier and Melanie Ebbeskotte are designing lighter- weight packaging-with more recycled and recyclable materials -for Milka chocolates, the most popular chocolate brand on the European continent. Above: Antonietta Spinelli packs Fini fresh tortellini in Modena, Italy. Right: Raymond Fry doesn't have to reinvent the cheese wheel- our Kraft brand is already the most popular cheese in Australia. 11 16
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e Top: In Rio de Janeiro, Arnaldo Doria Bispo delivers Kibon ice cream, the most popular brand in Brazil. Above: Jacobs Suchard coffee buyer Emmanuel Geerinckx checks a sample in Choisy Le Roi, France. Right: John Belli ensures Miller's promotions are well positioned. U.S. Malt Beverage Industry Barrel Shipments  U.S. Malt Beverage Industry Shipment  Miller Share of U.S. Malt Beverage Industry (%) Mllions of Barrels 200 160 120 80 40 0 87 18 88 89 90 sr 20 15 0 5 0 drink liquid coffee market, in both bottles and cans. In Korea, the world's fastest-growing soluble cof- fee market, our Maxim brand continues to build volume, and we hold a strong share of the category despite competitors' introductions. After the successful launch of pre- mium Maxim Grandee coffee in Korea, we brought a Grandee line extension to our Maxwell House brand in Taiwan. In China, our Maxwell House coffees and Tang breakfast drinks continued to achieve double-digit volume growth. We see enormous opportunities in the Asia/Pacific region. We are committed to building on our strong positions in Australia, Japan, and Korea, while expanding our pres- ence in emerging markets such as China, Indonesia, and Thailand. As we did with tobacco in Europe decades ago, we are investing in a sound infrastructure as a platform for aggressive growth in our food business. We are also building our pres- ence in Latin America. In Brazil, Kibon ice cream achieved record sales, with volume up 25%, for a 79% share of the market. In Mexico, our total food volume grew 8%, aided by a strong performance in powdered soft drinks, in which we accounted for more than 85% of the category. Jacobs Suchard's vol- ume in Argentina was up by 71%, and our share of the chocolate con- fectionery segment reached 21%. In Venezuela, we reversed a decline in mayonnaise sales, and attained a 50% share of the segment. As econ- omies improve, we expect to see further expansion of our core food categories throughout the regiot In the years ahead, KGF Interna- tional will use its marketing and. technological strengths to increase its brands' volumes, shares, and margins as it expands geograph- ically. We plan to be the low-cost producer of quality foods and beverages, extending our global operations to approach the size and market strength of KGF North America. In 1991, despite difficult economic conditions, Kraft General Foods made clear progress toward fulfill- ing its mission of becoming the world's leading food company. We expect further advances, and contin- uous improvements in volume and productivity, in 1992. Beer Volume, revenue, and income at Miller Brewing Company again set new records in 1991, although an increase in the federal excise tax on beer lowered volume for the U.S. malt beverage industry by approxi- mately 2%. For the sixth consecutive year, our growth outperformed industry averages. Total shipments of 43.6 million barrels, including exports and Sharp's non alcohol brew, grew 0.4% for the year, raising our share of the total U.S. malt beverage industry to 22.5%. Our export volume grew 38%. Despite increased marketing investments, our margins improved, excluding excise taxes from our revenues. Shipments of Miller Genuine Draft beer continued to grow, and the brand climbed two places to become the country's seventh-most- popular beer. Our national roll-out of the new Miller Genuine Draft Light beer in April contributed to the brand family's growth. Our Miller
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Left (I to r): Alan Leidig and Dan McCabe monitor new product development in the Milwaukee Techni- cal Center. Top: Ron Miller, brewing technician, is one of our team members at our reopened Trenton, Ohio, brewery. Above: Alan Sidman and Charles Salyer, of Philip Morris Capital Corporation, review inventory at a Miller distributor financed by PMCC. Genuine Draft and Genuine Draft Light brands, together with Miller High Life, Miller Lite, and Sharp's brews, now have a 27% share of the highly profitable premium segment of the domestic malt beverage industry. Miller Lite low calorie beer remained the second-best-selling beer in the United States, with 41% of the premium low calorie segment. Miller's low calorie premium and below premium products account for almost half the low calorie beer sold in the United States. Our breakthrough Sharp's brew, introduced in December 1989, continued to lead the growing non alcohol segment. Volume grew 30%, raising our share of the non alcohol category to 30%. To keep our marketing efforts in tune with changing consumer values, we began a series of new advertising campaigns for several of our brands, including Miller Lite low calorie beer ("Miller Lite. It's It and That's That"), Lowenbrau above premium beers ("German Born, American Brewed"), and the grow- ing Milwaukee's Best below premium family ("Here's to the Best"). We also began testing our 77-calorie Lite Ultra beer. In the super premium category, we have expanded tests of Miller Reserve and Reserve Light 100% barley beers. Our growth led us to reopen our Trenton, Ohio, brewery with a work force organized according to team- work and total quality manage- ment concepts. We also expanded capacity for Leinenkugel's beer. We are investing in Miller's con- tinued expansion as one of our core businesses. Financial Services and Real Estate Despite rising income from financial services, slow real estate results lowered Philip Morris Capital Corporation's consolidated income 9% below 1990's record level. Income from our financial ser- vices operations grew 16%. During the year, we broadened our fixed asset and working capital financing for customers and suppliers of Philip Morris operating companies. We also expanded our investments in third party leveraged leases. Having completed its first decade of operations, our financial services business has a strong capital base and a sound asset portfolio. With conservative investment policies and increasing operating efficien- cies, our finance business should continue to grow profitably. At our Mission Viejo land develop- ment subsidiary, revenues and income fel149% and 54%, respec- tively. Despite the recession's impact on real estate, and the related reduced availability of financing for our customers, our planned com- munities continued to outsell the . competition. Aliso Viejo ranked first in total sales per project in Orange County, California, and Highlands Ranch captured nearly 20% of new home sales in the Denver area. 21 S i I a
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. - r Corporate Citizenship Beyond satisfying our customers and consumers with our products, we have a direct interest in the well- being of society at large. In our con- tributions and other citizenship programs, we strive to achieve the excellence and scope characteristic of all our operations. Every aspect of our business, from purchasing and packaging to shipping and advertising, has some potential impact on the environ- ment. We have begun to establish uniform environmental reporting and enforcement policies for our facilities around the world. In a sep- arate publication, we are providing a summary of our efforts to protect the environment. One key to any society's future vitality is education. In 1991, we pro- vided substantial funds to Teach for America, an innovative program to recruit talented young people as a "national teacher corps" for rural and inner-city classrooms. Comple- menting this program, we also collaborated with foundations and local agencies in Milwaukee, Chicago, and Washington, D.C., to join communities, schools, and fam- ilies in the effort to reform inner-city public schools. At the same time, we began plans to bring our successful Gateway adult literacy program from Philadelphia to other cities. Through its sponsorship of Star- Serve-Students Taking Action and Responsibility in Service-Kraft General Foods Foundation is enhancing citizenship education by encouraging direct student involve- ment in community service. To date, StarServe has provided community service kits of teaching materials to more than 100,000 schools in the United States. 0 Through these and other pro- grams, we hope to improve the quality of public education in the United States. As one of the world's largest food companies, we are also concerned with the effects of hunger and mal- nutrition. We donated food last year to various service agencies, and we continued efforts to raise money for Second Harvest, the only national food bank network in the United States. Working with the Food Research and Action Center, we are the leading underwriter of the national campaign to end childhood hunger. We are supporting a study at the Center on Hunger, Poverty and Nutrition Policy at Tufts University to establish more effective ways to pro- tect children from the educational consequences of poor nutrition. We are also helping to ensure the deliv ery of food to the elderly and to people with AIDS. As leaders in corporate support for the arts for nearly 35 years, we believe that the arts encourage both creativity and an appreciation of diversity in our employees and com- munities. Because we have found that the arts make important contri- After work, Karen Labenz of Kraft USA helps students learn to read. - Phillip Grace, employed at Kraft General Foods in Middlebury, Vermont, is a member of his local volunteer fire department. butions to the material and spiritual welfare of our country, we spoke out in favor of continued public funding of the arts in the United States in 1991. The benefits of the arts include their impact on learning, as we have found through our continued back- ing of the children's center at The Art Institute of Chicago. Exhibitions we supported in 1991 included "A Tribute to Survival" at the Milwaukee Public Museum, which focused on North American Indian history and culture. We also sponsored a major touring retro- spective of the works of Romare Bearden, which originated at The Studio Museum in Harlem; and an exhibition of Swiss and American folk art, which appeared in the United States and is slated to travel to Switzerland. Last year also marked the tenth year of our touring support for the Alvin Ailey American Dance Theater and The Joffrey Bal- let, two of the many performing arts organizations we assist. By working for justice and eco- nomic opportunity for specific constituencies, many organizations and programs we support also make the United States a better place for all its citizens. In 1991, we continued to support U.S. organizations such as the i , , 22
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A National Puerto Rican Forum, the National Hispanic Scholarship Fund, the Asian Pacific American Legal Consortium, the National Black and Minority Chamber of Commerce, and the United Negro College Fund. As the recession in the United States worsened the plight of many disad- vantaged communities, we joined with Junior Achievement and the National Urban League in a major program to assist inner city youth. Philip Morris has responded to the needs of victims of disease for many years. Our cumulative funding to combat AIDS now comes to over $2 million. In 1991, one of our contri- butions established a postdoctoral fellowship in AIDS research at the New York Blood Center. Our 1991 relief efforts included donations of food and supplies to victims of floods in China, of an earthquake in Costa Rica, and of a volcanic eruption in the Philippines. Through donations of food and other items, we also supported the U.S. and other coalition troops stationed in the Persian Gulf. Our company continued to make major efforts on behalf of the United Way of America through corporate grants and campaigns in our many facilities in the United States. After visiting each of the 50 states, our national bicentennial tour of the U.S. Bill of Rights ended in Decem- ber 1991. The exhibition accom- plished its goal of increasing aware- ness of the freedoms guaranteed by the Bill of Rights. We are proud to have helped an important part of our heritage come alive for millions of people in the United States. A Spirit of Public Service In times of great change and uncer- tainty, it is natural for many people to concentrate first on their own affairs. Yet this is precisely when a Members of E.C.H.O. (Enriching the Community by Helping Others) volunteer group at General Foods USA. Top row (I to r): Carole Fulco, Rita Smith, Valerie Giuliani, Milly Barbarite, Nancy Daigler, Jay Agosta, Marilyn Vines, Mindy Solomon. Middle row: Clyde Hicks, Flora Lee, Jack Nevins, Marielena Carilli. Seated on floor: Carol Bowman, Dave Carminucci, Harriet Masilotti. Peter Wolf, who works for Philip Morris International by day, is a volunteer paramedic once a week at the Malteser Hilfsdienst in Munich. personal spirit of voluntarism can have the most impact. Whether through donations of nearly $2.5 million to various non- profit educational, cultural, and charitable organizations, or by giv ing thousands of pints of blood, the people of Philip Morris came through for their communities in 1991. A Kraft Foodservice purchasing department made the winter holi- days a bit brighter with its Adopt- a-Family program; a Tombstone Pizza employee organized a church "EcoStore" selling environmentally friendly gift items; employees in our Rye Brook, New York, facility con- tributed to a food drive for needy families in Westchester County. Of course, these are just a few of the many ways our people gave their time and money to others in 1991. The volunteers presented on these two pages are representative of the many Philip Morris employees who work every day to help others. Through these and other efforts, we contribute to society not simply as a large philanthropic company, but as a family of people sharing an ethic of caring and community service. 23 (0 0 co (T7 ~ ~ 4 4 ! i I r
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Board of Directors Committees 'Member of Executive Committee Hamish Maxwell, Chairman 2Member of Finance Committee John A. Murphy, Chairman 3Member of Audit Committee Robert E. R. Huntley, Chairman 4Member of Committee on Public Affairs and Social Responsibility John A. Murphy, Chairman sMember of Nominating Committee T. Justin Moore, Jr., Chairman 6Member of Compensation Committee John S. Reed, Chairman 7Member of Corporate Employee Plans Investment Committee William H. Donaldson, Chairman Joseph F. Cullman 3rd Chairman Emeritus 24 0 Dr. Elizabeth E. Bailey 3•4 John C. Hower Professor of Public Policy & Management, TheVJharton School of the University of Pennsylvania, Philadelphia, PA Murray H. Bring 4 Senior Vice President and General Counsel Dr. Harold Brown z•a,s,s,7 Chairman of the Foreign Policy Institute, School of Advanced International Studies, The Johns Hopkins University, Washington, DC i a i r ® Jane Evans 4s Vice President and General Manager, Home & Personal Services Division, U.S. West Communications, Inc., Phoenix, AZ Robert E. R. Huntley zs•a•s Counsel, Hunton & Williams, Richmond, VA I Dr. Jose Antonio Cordido-Freytes 4•s Member of Betancourt, Cordido and Associates, Caracas, Venezuela, Attorneys, and ~ President of C.A. Tabacalera Nacional ~ William H. Donaldson 1,2,3,5,7 Chairman and Chief Executive Officer, O 00 New York Stock Exchange, Inc., New York, NY Paul W. Douglas 1•3,s CT7 ~ Former Chairman and Chief Executive Officer of The Pittston Company, Greenwich, CT N 0
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I Hamish Maxwell 1•z Chairman of the Executive Committee Michael A. Miles i•z.4 .:hairman of the Board and Chief Executive Officer T. Justin Moore, Jr.'-,4•s Counsel, Hunton & Williams, Richmond, VA Rupert Murdoch 4,6 Chairman and Chief Executive of The News Corporation Limited, New York, NY John A. Murphy2•4•7 Former Vice Chairman of the Board William Murray 1.2.4 Presidentand Chief Operating Officer Richard D. Parsons 1.3,4 Chairman and Chief Executive Officer, The Dime Savings Bank of New York, FSB, NewYork, NY Roger S. Penske President, Penske Corporation, and Chief Executive Officer, Detroit Diesel Corporation and Penske Truck Leasing Company, Detroit, MI John S. Reed 1.z,3s,sa Chairman of Citicorp and Citibank, N.A., NewYork, NY John M. Richman 1.4,5,7 Counsel, Wachtell, Lipton, Rosen & Katz, Chicago, IL Hans G. Storr 2,7 Executive Vice President and Chief Financial Officer 25
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i Officers Philip Morris Companies Inc. Michael A. Miles Chairman of the Board and Chief Executive Officer William Murray President and Chief Operating Officer Geoffrey C. Bible Executive Vice President, International Hans G. Storr Executive Vice President and Chief Financial Officer Murray H. Bring Senior Vice President and General Counsel Craig L. Fuller Senior Vice President, Corporate Affairs Marc S. Goldberg Senior Vice President, Corporate Planning John J. Tucker Senior Vice President, Human Resources and Administration Dede Thompson Bartlett Vice President and Secretary Bruce S. Brown Vice President, Taxes George R. Lewis Vice President and Treasurer Kathleen M. Linehan Vice President, Government Affairs Katherine P. Wickham Vice President and Controller Alfonso L. Carney, Jr. Assistant Secretary 26 Corporate Staff: Vice Presidents: NancyJ. De Lisi Stephanie T. French David I. Greenberg David M. Kirby George L. Knox III F. Robert Kurimsky Herbert Millington James J. Morgan Dr. Thomas S. Osdene D. Eric Pogue Rosemary Ripley William C. Smiy Timothy A. Sompolski Timothy C. Sullivan Charles R. Wall Philip Morris U.S.A. William I. Campbell President and Chief Executive Officer Mark A. Serrano Executive Vice President, Operations Stephen J. Bloom Senior Vice President, Trade Development David E.R. Dangoor Senior Vice President, Marketing Fred J. Laux Senior Vice President, Human Resources Harry G. Steele Senior Vice President, Finance and Administration Michael E. Szymanczyk Senior Vice President, Sales Lawrence S. Wexler Senior Vice President, Planning and Information Systems Andrew Whist Senior Vice President, External Affairs Vice Presidents: David R. Beran Barry J. Case Dr. James L. Charles Stephen C. Darrah O. Witcher Dudley Charles R. Finch Dr. Kenneth S. Houghton Craig A. Johnson James R. Kuhlman Suzanne A. LeVan Nancy Brennan Lund Ellen Merlo Robert L. Mikulay David L. Milby E. Henry Mize Douglas H. Nelson John R. Nelson Richard D. Olson Steven C. Parrish William P. Taylor Philip Morris International Inc. Aleardo G. Buzzi President and Chief Executive Officer Carlos E. Salguero Executive Vice President Walter Thoma Executive Vice President William H. Webb Executive Vice President Dinyar Devitre Senior Vice President and Chief Administrative Officer Thomas M. Kearns Senior Vice President Vice Presidents: Larry A. Gates Andreas Gembler Georges Karandjoulis John Kramer Francisco J. Moreno Lee Pollak Peter Schreer Kraft General Foods North America Richard P. Mayer Chairman and Chief Executive Officer Martin D.J. Buss Senior Vice President, Strategy and Development Calvin J. Collier Senior Vice President, General Counsel and Secretary Daniel M. Dressel Senior Vice President, Human Resources Joseph P. Durrett Senior Vice President, Sales J. Bruce Harreld Senior Vice President and Chief Information Officer Alan J. Lacy Senior Vice President, Finance Robert G. McVicker Senior Vice President, Technology, Quality Assurance, and Scientific Relations Thomas D. Ricke Senior Vice President, Corporate Affairs Edward W. Smeds Senior Vice President, Operations and Logistics Eric C. Strobel Senior Vice President, Corporate Marketing Corporate Staff: Vice Presidents: Donald R. Abel John P. Amboian Arthur Anderson Deborah A. Becker David K. Braun Jack Brown Richard B. Burgess Donald W. Carlin William Cunningham Philip J. Davis William J. Dowd Richard R. Floersch Enrique J. Guardia Walter B. Guenther John L. Hogan E. Boyd Hollingsworth, Jr. PaulJackson Adrienne M. Johns John E. Kelly William Kiedaisch James R. Kinney Darrell G. Medcalf William Morris John F. Mowrer III
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Michael S. Mudd James P. Dollive Gary Karp Miller Brewing Verdis Norton Alan J. Grant Jack A. Peterson Company David Olsen Derek J. Hall Leroy E. Radtke Stephen L. Puente Michael T. Harrington Gregory Schaffner Leonard J. Goldstein Robert V. Richards Jean Paul Martineau Harry B. Smith Chairman Richard O. Stuedemann Jeremy D. Young Samuel L. Spear Thomas Taylor Bil1yJ. Strong Warren H. Dunn Victor Tinucci Oscar Mayer Foods Thomas L. Thomas President and Prescott Wallace J John D. Bowlin Chief Executive Officer _ . J. Douglas Wert President Kraft Food Ingredients Corp. Apple Billy R Frederick F. Avery . Carolyn Yoch Officers: President Senior Vice President, neral Foods USA G Operations e Robert E. Drane Officers: Robert S. Morrison Terry M. Faulk Allen A. Schumer President Charles J. Hunn Alan Cooper Senior Vice President, Officers: Paul J. Liska Joe Gilliam Administration Philip F. Pellegrino Dick Hynes David J. Driscoll Paul G. Roehrig Bob Jeter Vice Presidents: Ann M. Fudge Thomas J. Ryan Dennis Koerner Rodney J. Blucher Gary K. Harmon Richard G. Searer Gary Severseike Virgis W. Colbert J. Mark Harran Bryan G. Stockton Mike Taylor Frank L. Donnelly Sylvester T. Hinkes Bjorn J. Thompson Daryl Vrbas Leonard H. Jacob Thomas J. Hoeppner Koehler Thomas A Randy D. Kautto Kraft General Foods - Kraft General Foods . Mollomo Paul R Frozen Products International . Gregory B. Murphy Thomas Herskovits Arthur J. Rehberger John E. Nevins George D Riemer William A. Paterson President John M. Keenan . Kathleen D. Ryan Charles A. Phillips Officers: President William A. Saupe Irene B. Rosenfeld Schmus William G i S L Benjamin Lawrence S James S. King . orra ne carpa Paula A. Sneed . John S. Craig President, KGFAsia/Pacific Robert L. Smith Ronald R. Strain Roger K. Hove Plackett John G Richard F. Strup Kraft USA Charles F. Marcy . KGF Europe President James M. Kilts Hugh Mazza , Philip Morris Capital President Harold E. Reinhart Raymond G. Viault Corporation Officers: Ellis Reynolds Chief Executive Officer, Fred Sherriff Jacobs Suchard Hans G. Storr Richard E Baile Spear Kathleen K . y Chiasson William B . Strickland Danny L Charles A. Adamo Chairman and . Gary J. Conte . David D. Weick Senior Vice President Chief Executive Officer Robert A. Eckert Operations and Technology Norman J. Treisman Seth A. Eisner Kraft General Foods Brian A. McIver President Ronald D. Harris Commercial Products Senior Vice President, Michael J Kinney M. Carl Johnson III Strategic Planning and Marketing . Richard H. Lenny Kraft Foodservice, Inc. Services Vice President Charles F. Martin III James A. Miller Mission Viejo Company Thomas J. Mason President Officers: Hugh Roberts James G. Gilleran William Williams Officers: Lani L. Beach President and Edward J. Moy Chief Executive Officer Kraft General Foods Canada William E. Beedie Frank T. Toscano Douglas A. Smith Daryl D. Boddicker John C. Webber Craig McCallum President Anthony F. Bonadonna President-Colorado Divisii James P. Brannigan Officers: John M. Cabot Van Stevens Edward C. Dudley Executive Vice President Daniel S. Antonelli Lawrence J. Eiden Bailey Richard A Danette S. Fenstermacher . Robert L. Herst George W. Beal Senior Vice President and L. Don Brown Treasurer William K. Smith Vice President and General Counsel 27

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