PHILIP MORRIS COMPANIES INC.

American holding company founded in 1985, the owner of several major American companies, notably Philip Morris Inc., the General Foods Corporation, and Kraft, Inc., with diversified interests in tobacco and food products. Its headquarters are in New York City. The ancestor of the present company was incorporated in 1919 as Philip Morris & Company, Ltd. Inc., acquiring the assets of a small New York corporation of the same name. Throughout the 1930s, '40s, and '50s it expanded its interests in tobacco processing and marketing and became a principal maker of cigarettes. In the mid-1950s Philip Morris began using cowboy imagery to advertise its Marlboro brand of cigarettes, and Marlboro's ever-growing popularity propelled the company to second place among American cigarette makers by the mid-1970s. By the early 1990s, despite diversifications, the company continued to receive almost one-half of its revenues from the sale of tobacco products. Its other major cigarette brands sold in the United States and abroad include Benson and Hedges, Parliament, Virginia Slims, and Merit. Philip Morris obtained a controlling interest in the Miller Brewing Company in 1969. In 1978 Philip Morris acquired the international cigarette business of the Liggett Group Inc. (formerly Liggett & Myers) and the Seven-Up Company, a soft-drink maker; unable to expand its soft-drink market, it sold Seven-Up in 1986. In order to reduce its dependence on the faltering tobacco market, the company in 1985 bought the General Foods Corporation (q.v.), carrier of such well-known food products as Maxwell House coffee and Birds Eye frozen foods. In 1988 Philip Morris acquired Kraft, Inc. (q.v.), a large maker of cheeses and grocery products. Philip Morris thus became one of the world's largest corporate producers of consumer goods.