Philip Morris International has announced a new regional structure and related senior management changes.
“We are changing the company’s regional structure to further support the growth of our smoke-free business, reinforce consumer centricity and increase the speed of innovation and deployment—all in alignment with our ambition of becoming a majority smoke-free business by net revenues by 2025,” said PMI CEO Jacek Olczak in a statement.
“The new structure will also create new opportunities to further grow our senior talent, deepening the bench of leaders who will spearhead PMI’s progress toward a smoke-free future for the years to come. I am confident of the exceptional caliber and determination of our people and wish them the best in their new roles.”
By the end of January 2023, PMI will rearrange its operations in four regions, down from the current six, under the leadership of the following members of senior management:
- Paul Riley, currently president of the East Asia and Australia region, will be appointed president of the East Asia, Australia and PMI duty-free region;
- Frederic de Wilde, currently president of the European Union region, will be appointed president of the South and Southeast Asia, Commonwealth of Independent States (CIS), Middle East and Africa region;
- Massimo Andolina, currently senior vice president of operations, will be appointed president of the Europe region; and
- Deepak Mishra will continue as president of the Americas region.
Drago Azinovic, currently president of the Middle East and Africa and PMI duty-free region, will leave the organization after a transition period.
In addition, the following appointments will also take effect:
- Marco Mariotti, currently president of the Eastern Europe region, will be appointed president of CIS, Central Asia and Israel, reporting to Frederic de Wilde;
- Stacey Kennedy, currently president of the South and Southeast Asia region, will be appointed CEO of PMI’s U.S. business, reporting to Deepak Mishra; and
- Scott Coutts, currently vice president of global manufacturing, will be appointed senior vice president of operations, succeeding Massimo Andolina and reporting to Jacek Olczak.
According to PMI, the new regional structure better aligns with the business strategy in the approximately 180 markets where the company’s products are sold. It is designed to accelerate smoke-free product growth in markets where IQOS already holds double-digit market shares while also driving the transition from cigarettes to smoke-free products in untapped markets, including the United States.
Furthermore, the new regional structure will support PMI’s efforts to broaden access to smoke-free products worldwide for those adults who would otherwise continue to smoke, including in low-income and middle-income markets, which the company aspires to account for at least half of the markets where its smoke-free products will be available by 2025. Each region will comprise individual markets as well as clusters of markets and will provide opportunities to accelerate career development within PMI’s diverse talent pipeline.
The company’s quarterly results reporting and related filings will reflect the new regional structure as of the first quarter of 2023.