Tobacco giants helped push ultra-processed foods into global markets

Study: Ultra-Processed Foods in the Global Food System: The Role of US Tobacco Companies. Image Credit:  Anastasiia Usenko / Shutterstock

In a recent study published in the American Journal of Public Health, a group of researchers investigated how major United States (U.S.) tobacco companies expanded ultra-processed food businesses globally and identified the strategies they used to enter and grow international food markets.

Tobacco Influence On Food Systems

What if the same companies that built global cigarette empires also helped shape the modern food environment? Today, excess consumption of ultra-processed and hyperpalatable foods has been associated with health issues, including obesity, heart disease, metabolic diseases, and mental health-related outcomes, including food addiction. Many ultra-processed and hyperpalatable foods contain a combination of fat, sugar, and salt, making them especially palatable.

While previous research has demonstrated that tobacco companies have influenced the U.S. food supply, less attention has been paid to their influence on the global food market. Understanding how these corporations expanded internationally may reveal important drivers of today's worldwide nutrition challenges. Additional research is necessary to better understand the long-term public health implications of these corporate practices.

Industry Document Study Design

The researchers conducted a document-based investigation using the Industry Documents Library maintained by the University of California, San Francisco. The research focused on Philip Morris's and RJ Reynolds's international food-related activities, and both were leading U.S. tobacco businesses with significant success in food during the late twentieth century.

A multistep snowball sampling strategy was conducted between March and October 2025. Documents were selected if they described activities involving either company and contained information related to international operations. The researchers reported no exclusion criteria to maximize the chances of capturing relevant evidence. In total, 113 documents met the eligibility criteria and were included in analyses.

The collection included annual reports, Securities and Exchange Commission filings, strategy documents, communications to shareholders, internal reporting, and business presentations. Each document was examined line by line by reviewers following a standardized coding system. Market presence, sales activity, acquisitions, business expansion strategy, product development strategy, and promotion were documented for each analyzed document. The researchers also cataloged all food and beverage products sold outside the U.S. by tobacco-owned food companies.

Tobacco Strategies Expanded Food Markets

The analysis showed that Philip Morris and RJ Reynolds built extensive international food operations worth billions of dollars between the 1980s and mid-2000s. Rather than creating entirely new business models, both companies adapted methods that had previously helped them expand their tobacco operations worldwide.

One of Philip Morris's major business strategies was to acquire local food manufacturers or partner with established local businesses. The firm acquired 52 food firms across Europe, Asia, North America, and other countries. Acquisitions included coffee, chocolate, cheese, candies, dairy, snacks, and processed food companies. Ultimately, Philip Morris sold food items in 76 countries and sold close to 829 food and beverage products internationally.

Europe and Canada became the company's strongest food markets, although significant growth also occurred in Asia and South America. Strategic partnerships with companies in South Korea, Indonesia, and China enabled Philip Morris to expand the sale of processed cheese, coffee, sugary drinks, sauces, dressings, snacks, and convenience foods. By the 1990s, more than 70% of its international food sales came from market-leading products.

The study also revealed extensive cooperation between Philip Morris's tobacco and food divisions. The company shared purchasing systems, distribution channels, marketing resources, and management structures across both sectors. In Europe and South America, tobacco and food products were sometimes coordinated through shared sales and distribution systems in selected regions and pilot projects.

Philip Morris used food product development strategies that paralleled its cigarette product strategies. For example, the company manipulated product sizes to promote more frequent consumption occasions, created larger packages to increase consumption among current users, and produced lower-fat food items with strong flavor. Philip Morris's food products paralleled its lower-tar, lower-nicotine cigarettes, designed to retain health-conscious customers.

RJ Reynolds followed a similar pattern, establishing food operations in 30 countries and selling approximately 195 food and beverage products internationally. Its principal markets were Mexico and Central and South America. It expanded through acquisitions of biscuit, snack, dessert, and beverage companies, helping RJR become one of the largest packaged food businesses in the region.

RJR pursued international growth by expanding major brands such as Oreo, Chips Ahoy!, Ritz, and Air Crisps into new markets worldwide. This approach mirrored the way it grew its cigarette business into new international markets during its prior expansion period. The company also invested in the research and development of technologies to create low-fat, high-flavor foods, using its proprietary fat-replacement technology. These foods were marketed as healthier options to consumers, while still retaining their consumer appeal.

The study had several limitations. The analysis was based on documents from a single archive, and the available records were not comprehensive because many were obtained through litigation. The authors also noted that some documents contained limited country-level detail for certain regions. Importantly, this was an archival analysis of corporate documents and did not directly measure population dietary intake, obesity, diabetes, cardiovascular disease, or other health outcomes.

Ultra-Processed Food Policy Implications

The findings show that Philip Morris and RJ Reynolds transformed their food businesses into powerful multinational enterprises by applying strategies originally developed for tobacco products.

Philip Morris and RJ Reynolds achieved growth through acquisitions, joint ventures, shared distribution systems, and product development, enabling them to offer a broader range of ultra-processed foods to consumers around the world through different countries.

Although these companies divested from the food industry between 2000 and 2007, the study suggests that their historical food strategies may have helped shape aspects of the present-day global food environment and expanded access to foods associated with obesity, metabolic disease, and other health-related outcomes. 

This study emphasizes the importance of increased monitoring of food systems and of policy approaches to address the widespread availability of ultra-processed and hyperpalatable foods.