Lorillard
Philip Morris Companies Inc. Annual Report 910000 the Stren Gth of Our Brands Begins with Our People.
Fields
- Author
- Miles, M.A.
- Murray, W.
- Type
- CONT, CONTRACT/AGREEMENT
- BUDG, BUDGET/BUDGET REVIEW
- CHAR, CHART/GRAPH/MAPS
- PHOT, PHOTOGRAPH
- BUDG, BUDGET/BUDGET REVIEW
- 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
- Ca Tabacalera Nacional
- 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.
- Bartlett, D.T.
- 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
- Astor
- UCSF Legacy ID
- bbx90e00
Document Images
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.
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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-
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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

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

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
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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
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22

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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
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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
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Dr. Elizabeth E. Bailey 34
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 za,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 zsas
Counsel, Hunton & Williams,
Richmond, VA
I
Dr. Jose Antonio Cordido-Freytes 4s
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 13,s CT7
~
Former Chairman and
Chief Executive Officer of
The Pittston Company,
Greenwich, CT N
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Hamish Maxwell 1z
Chairman of the Executive Committee
Michael A. Miles iz.4
.:hairman of the Board and
Chief Executive Officer
T. Justin Moore, Jr.'-,4s
Counsel, Hunton & Williams,
Richmond, VA
Rupert Murdoch 4,6
Chairman and Chief Executive of
The News Corporation Limited,
New York, NY
John A. Murphy247
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

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

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
