Today Philip Morris Companies is a holding company with a diversified product offering: Miller Brewing, General Foods (acquired, 1985), Kraft, Oscar Meyer (acquired, 1981), and Philip Morris. In 1989, tobacco products accounted for 40% of sales, food products ac counted for 51%, and beer accounted for 8%. In 1987, Philip Morris generated most of its sales and profits from its tobacco business segment. However, domestic tobacco consumption had been declining from a 1981 peak of 640 billion cigarettes and an operating profit of $3.3 billion dollars. To combat the effect of declining US sales, Philip Morris decided to increase cigarette exports. Such exports were predicted to increase sales by 15 percent in such markets like Japan and Taiwan.
Philip Morris was also interested in diversifying out of tobacco since 1969. With the addition of Miller Brewing Company, Seven-Up and General Foods, Philip Morris had acquired considerable market share in both the beer and food products industries. These acquisitions achieved varying degrees of success. Seven-Up was eventually sold, and Philip Morris narrowed its focus to the most successful General Foods and the food products business. Phillip Morris sold its Seven-Up operations in 1986 for about book value after a 50 million dollar write-off in 1985.