<PAGE>
Rule 424(b)(3)
File Nos. 33-4180
33-37115
33-17870
33-38781
33-39162
============================
Kraft Choice Thrift Plan
============================
May 1995
Plan News
- ---------
. Fund Performance
. March 31 PM Stock Price
. 1995 Company Matching Contribution
. Estimated 1995 Interest Income Fund Rate of Return
. Thrift Plan Improvements
. Diversification of Investments
Your statement is enclosed showing the activity in your account during the first
quarter, and a "snapshot" of your account balances with investments valued as of
March 31, 1995.
Fund Performance
- ----------------
<TABLE>
<CAPTION>
1st Quarter Only
January 1 through March 31, 1995 Annualized Fund Performance
- -------------------------------- --------------------------------------------------------------------
Funds % Fund 1991 1992 1993 1994 1995
- -------------------------- ----- -------------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Philip Morris Stock Fund 15.2% Philip Morris Stock Fund 57.5% -0,9% -24.3% 9.1% 15.2%
Equity Index Fund 9.7% Equity Index Fund 31.3% 7.8% 10.3% 1.8% 9.7%
Interest Income Fund 1.8% Interest Income Fund 9.5% 8.8% 7.9% 8.9% 1.6%
Government Securities Fund 1.8% Government Securities Fund 9.3% 5.2% 4.1% 3.3% 1.8%
</TABLE>
The fund performance for 1991 through 1994 applies to dollars that were in the
fund on January 1 and remained in the fund until December 31. Dollars that were
invested, withdrawn, or transferred between funds during the year may have
earned a higher or lower rate of return due to market fluctuations. 1995 rates
of return apply only to dollars that were invested in the fund on January 1 and
remained in the fund through March 31, 1995.
March 31 PM Stock Price
- -----------------------
The price per share of Philip Morris stock on March 31, 1995 was $65.375.
- --------------------------------------------------------------------------------
This page constitutes a supplement to a prospectus covering securities that have
been registered under the Securities Act of 1933. This supplement is dated
May 10, 1995.
<PAGE>
1995 Company Matching Contribution
- ----------------------------------
In 1995, Kraft will contribute 57 cents for each dollar of your basic
contributions to the Plan. (The first 6% of your pay you contribute to the Plan
represents your basic contributions.)
Estimated 1995 Interest Income Fund Rate of Return
- --------------------------------------------------
The rate of return in the Interest Income Fund during 1995 is estimated to be
6.5%.
Thrift Plan Improvements
- ------------------------
In the next few days, you will be able to take advantage of the Thrift Plan
improvements we've told you about over the past few months. Beginning May 15,
you will have:
. access to three new investments funds, bringing the total to seven
investment funds in the Plan;
. daily access to updated account information;
. the ability to transfers funds daily; and
. faster turnaround on loans, in-service and hardship withdrawals (if
applicable).
Included with the April Kraft Choice newsletter were Kraft Choice Benefits and
Kraft Choice Thrift Plan roadmaps, which give you a visual layout of the choices
you will have when you call the new 1-800-KRAFT-HR telephone number. You should
review these roadmaps and keep them handy.
Remember, you must set a new PIN (personal identification number) to use
1-800-KRAFT-HR. Refer to the April newsletter for instructions on how to set
your PIN. Starting May 15, Benefits Express will no longer be available. You
must call 1-800-KRAFT-HR for access to your Thrift account information and to
make changes to your investment or contribution elections.
Diversification of Investments
- ------------------------------
If you are not already doing so, you should consider diversifying the current
balance in your account and your future contributions by investing in a
combination of Funds offered by the Plan.
Diversification is the practice of spreading savings among different types of
investments to help reduce the risk of loss to your total savings program.
Diversification permits you to take advantage of the different investment
objectives of each Fund in the Plan. A diversification program balances a mix
of investments in accordance with your long-terms goals and personal tolerance
for investment risk.
It is generally unwise to concentrate your accounts in an investment fund which
holds a single security. When making a decision relative to the Philip Morris
Stock Fund, you should consider your entire financial relationship with Kraft
and the other Philip Morris affiliated companies, that is, your pension benefits
and all forms of your compensation that are provided by Kraft. While we want to
share with you the opportunity to invest in common stock, and Kraft is
interested in having its employees as shareholders, you should feel under no
obligation to invest in common stock.
