Canada:
Profitable Development
We acquired full ownership of Rothmans, Benson & Hedges Inc. (RBH) in late 2008, making it our first major acquisition since the spin-off. Since then our business in this profitable market, in which we achieved a share of 33.5% in 2012, has been fully integrated into the PMI family, allowing for employees such as Nazgol Mirabdolbaghi, Manager Marlboro Brand Development on short-term assignment in Switzerland, to acquire key skills and experience in other markets around the world.
Mexico:
Good Agricultural Labor Practices (ALP)
In September last year we issued our first progress report, available on our website, describing our achievements to-date and the wide range of ongoing initiatives under our ALP Code, developed in association with Verité, a non-profit organization that promotes fair labor practices. In 2012 this Code was communicated to approximately 497,000 farmers in some 30 countries who have contractual arrangements directly with our affiliates or with third-party leaf suppliers who buy tobacco for us. From left to right, Agronomy Supervisors Oscar Rodriguez, Jorge Romero and Jesus Delgado, Manager Agronomy Gerardo Ramirez and Field Technician Assistants Ernesto Jauregui and Sabino Camacho, are a key part of that effort in Mexico, where we have direct contracts with more than 1,300 farmers.
Colombia:
Renewed Growth
Our team in Colombia, including Andrés Botero, Manager Manufacturing, consolidated our leadership position in this South American market, growing our 2012 market share by 1.8 points to 50.5%. Testament to this success, and common to markets in this part of the world, was our ability to grow both our international brand portfolio, with brands such as Marlboro and L&M, and local heritage brands such as Boston.
Argentina:
Outstanding Share Performance
Argentina is our largest market by volume in the Latin America & Canada Region. Our share, which has been growing consistently since the spin-off, increased by almost one full point last year to reach 74.9%. Our Philip Morris brand is the market leader in the country, with a share of 39.4% in 2012, and Marlboro, at 24.1%, is the leading brand in the premium segment. This tremendous performance is the result of the collaborative effort of employees such as, from left to right, Facundo Gonzalez Lobo, Controller, and Gustavo Franco, Manager Goya Plant.
Costa Rica:
Big Ambitions
While Costa Rica is one of the world’s smaller cigarette markets, the business ambitions of our employees such as, from left to right, Maria Liliana Rodriguez, Coordinator Corporate Affairs & Compliance Central America, and José Rafael Guzmán Mora, Salesman, are no less significant. L&M, our second-largest brand worldwide, was launched here in 2011 and by the end of 2012 had already grown to a market share level of 3.2%, contributing to our overall market share of 61.4%.
