Philip Morris International (PMI) has announced a sweeping reorganisation of its global business to better align with its smoke-free ambitions.
Effective 1 January 2026, PMI will operate under two new business units – PMI International and PMI U.S. – supported by its wellness arm, Aspeya. The move, revealed alongside the company’s third-quarter 2025 results, replaces PMI’s current four-region structure with three reportable segments: International Smoke-Free, International Combustibles, and U.S.
PMI said the shift will “enhance agility” and “equip the company for the future” as it accelerates its transformation from cigarettes to reduced-risk products.
“This new organisational structure better reflects the way we do business today and will provide us with the agility and governance to maximise growth over the long-term,” said Group CEO Jacek Olczak.
Under the new setup, Frédéric de Wilde, currently President for South and Southeast Asia, CIS, Middle East and Africa, will become CEO of PMI International. He will oversee the company’s multicategory strategy and expansion of smoke-free products in markets outside the US.
In the US, Stacey Kennedy will continue as CEO of PMI U.S., tasked with driving growth in both the nicotine pouch category through ZYN and the company’s IQOS heat-not-burn portfolio.
PMI’s renewed focus on the American market follows its October 2022 agreement with Altria Group to end their commercial partnership covering IQOS in the US. Under that deal, PMI secured full US rights to commercialise IQOS after 30 April 2024, paying Altria a total of $2.7 billion (£2.43bn).
Philip Morris USA vs Philip Morris International
Although their names are often confused, Philip Morris USA and Philip Morris International are entirely separate companies. PMI was spun off from Altria Group in 2008, while Philip Morris USA remains an Altria subsidiary, retaining the rights to the Philip Morris cigarette brands in the American market.
PMI’s reorganisation reflects the company’s confidence in its smoke-free portfolio, which now accounts for over 40 per cent of the company’s global revenues, as per its third-quarter 2025 results.
The company said it will begin reporting results under its new business structure from Q1 2026, and publish restated financial data for 2023–2025 following its 2025 full-year earnings announcement.