Rule 424(b)(3)
                                                              File Nos.  33-1480
                                                                        33-37115
                                                                        33-17870
                                                                        33-39162

                                
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                                KGF THRIFT PLAN
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May 1994
                                                                               A
                                    --------------------------------------------
                                    PLAN NEWS
                                    ---------
                                    Fund Performance
                                    Closing PM Stock Price as of March 31, 1994
                                    1994 Interest Income Rate of Return
                                    Thrift Plan and Benesit Express Improvements
                                    --------------------------------------------


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, 1994.


FUND PERFORMANCE
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First Quarter Only
January 1 through March 31, 1994*                      Annualized Fund Performance
- ------------------------------------  --------------------------------------------------------------
         Funds                   %               Funds            1989   1990   1991   1992   1993
- ------------------------       -----  ------------------------    -----  -----  -----  -----  ------
                                                                         
Philip Morris Stock Fund       -7.7%  Philip Morris Stock Fund    49.4%  32.2%  57.5%  -0.9%  -38.4%
Equity Fund                    -3.7%  Equity Fund                 29.3%  -1.8%  31.3%   7.8%    7.8%
Interest Income Fund            1.8%  Interest Income Fund        10.5%  10.1%   9.5%   8.8%    5.9%
Government Securities Fund      0.3%  Government Securities Fund   9.5%   8.9%   9.3%   5.2%    3.7%


The fund performance for 1989 through 1993 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invested, withdrawn, or transferred between funds during the year may have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.  1994 rates
of return only apply to dollars that were invested in the fund on January 1
through March 31, 1994.*


MARCH 31 STOCK PRICE
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The price per share of Philip Morris stock on March 31, 1994 was $50.625.


1994 INTEREST INCOME FUND RATE OF RETURN
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The rate of return in the Interest Income Fund during 1994 is estimated to be
6.7%.

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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 9, 1994.