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Market
Swedish Match sells matches in many international markets, mainly in Europe and Latin America and parts of Asia. Consumption of matches in the world market is declining in most industrialized countries, particularly in Europe, where Swedish Match has a strong presence.
The main markets for lighters are Russia, the European Union and parts of Asia. Worldwide, sales are generally stable, although sales are declining in Western Europe, they are growing in Russia.
Europe
Main brands
For matches, brands tend to be local, with one brand being iconic in any given country. Some of the best known brands in Europe include Solstickan (Sweden), Swan (UK), Tres Estrellas (Spain), Feudor (France) and Korona (Hungary) among others.
For lighters, Swedish Match manufactures one of Europe’s best known brands for quality disposable lighters, Cricket.
Market
Swedish Match estimates that consumption of matches continued to decline during 2007, while the market for specialty matches and products with higher margins, such as firestarters and disposable barbeque grills, grew.
For lighters, Swedish Match holds a leading market position in Russia for premium disposable lighters. The Group also has well entrenched positions in the Nordic countries, the UK and France. Retail sales of Swedish Match brands in the European market are estimated to have been stable during 2007. Cricket lighters are marketed using the key selling points of quality, design and safety.
Point of sales
Matches are sold in Europe mainly through supermarkets and tobacconist stores as well as gasoline stations and service stores.
Lighters are sold mostly in stores that sell tobacco products, and can also be found in outlets where tobacco is not available, such as grocery stores, in some countries.
Competitors
Major lighter competitors include Bic and Tokai, and a number of other manufacturers based mainly in China and other parts of Asia. Match competition comes mostly from low cost Asian suppliers as well as a few East European suppliers.
Latin America
Main brands
Swedish Match has the largest match brand on the Brazilian market, with Fiat Lux. The Cricket brand of disposable lighters is also widely available.
Market
Swedish Match has a significant presence in Latin America, and the largest match market in this region is Brazil, where the Company has a leading position. Swedish Match estimates its market share in Brazil to be at or near 50 percent. In terms of volume, the Brazilian market is about the same size as the total European market and consumption is declining. For lighters,
Cricket is a major brand in Brazil.
Tres Estrellas is the best-known match brand in Spain.
Cricket, the world’s third largest brand of disposable lighters, is characterized by quality, safety and design. With sales in more than 100 countries, it is one of Swedish Match’s most widely distributed brands.
Point of sales
Matches and lighters are widely available wherever tobacco products are sold, and are available in kiosks, supermarkets, variety and discount retailers, and gas and convenience stores.
Competitors
For lighters, the largest competitors in Latin America are Bic, Tokai and other Asian manufacturers. In matches, there are some local competitors in Brazil.
Other markets
Swedish Match sells matches in a number of markets outside Europe and Latin America, but the value of these sales are relatively low. Swedish Match is the market leader for match products in Australia with the brand Redheads. Swedish Match also has lighter sales in a number of Asian markets.
Product development
During 2007, the Company has continued in its efforts to provide improved and innovative packaging and graphics for its fire related products (e.g. fire logs), in order to better serve consumer demands for clear product communication. One approach that has clear consumer appeal has been to integrate all of the fire and match related products under the brand name of the flagship brand in each country, with graphics that are similar across all markets.
For lighters, continuous product development and innovation is necessary, since consumers who purchase lighters are not particularly brand loyal and frequently make impulsive purchases. Swedish Match’s largest and most widespread brand of lighters is Cricket, which represents the premium segment in disposable lighters. Cricket is characterized by quality, safety and design. Innovative design is an increasingly important tool in reaching consumers at the point of sales and
Cricket regularly launches new design series.
Swedish Match is also active in developing new safety solutions. To meet with the requirements on child resistant lighters put into effect in the EU 2007, the Company has developed a new safety solution that is one of the most consumer friendly available on the market.
Production and distribution
Extensive restructuring of the lights operations over the past three years has resulted in fewer, but highly efficient, facilities in Europe, Brazil and the Philippines. Lighter facilities are located in Manila in the Philippines, Assen in the Netherlands and Manaus in Brazil. Match related production takes place primarily in Tidaholm and Vetlanda in Sweden and in Curitiba in Brazil.
Outlook
The Lights product area is able to generate good cash flow and profitability. The Company will strive to defend and strengthen its positions in key markets, in the coming years. Swedish Match will continue to focus on marketing its Cricket brand disposable lighters and utility lighter products. The Company will also work to improve its product positioning for its other fire related products with, for example, innovative package design.
The market
Swedish Match main brands
Matches: Solstickan, Fiat Lux, Swan,
Tres Estrellas, Feudor, Redheads
Lighters: Cricket
Main markets
Russia, Brazil, Sweden, France, the UK, Australia
Market dynamics*
Matches: Declining in Europe. Stable to declining in other geographies
Lighters: Declining in Western Europe. Growing in Russia and emerging markets
* Source: Swedish Match estimates.
Solstickan and Fiat Lux are strong brands in their respective local markets in Sweden and Brazil.

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Market
Swedish Match sells matches in many international markets, mainly in Europe and Latin America and parts of Asia. Consumption of matches in the world market is declining in most industrialized countries, particularly in Europe, where Swedish Match has a strong presence.
The main markets for lighters are Russia, the European Union and parts of Asia. Worldwide, sales are generally stable, although sales are declining in Western Europe, they are growing in Russia.
 
Europe
Main brands
For matches, brands tend to be local, with one brand being iconic in any given country. Some of the best known brands in Europe include Solstickan (Sweden), Swan (UK), Tres Estrellas (Spain), Feudor (France) and Korona (Hungary) among others.
For lighters, Swedish Match manufactures one of Europe’s best known brands for quality disposable lighters, Cricket.
 
Market
Swedish Match estimates that consumption of matches continued to decline during 2007, while the market for specialty matches and products with higher margins, such as firestarters and disposable barbeque grills, grew.
For lighters, Swedish Match holds a leading market position in Russia for premium disposable lighters. The Group also has well entrenched positions in the Nordic countries, the UK and France. Retail sales of Swedish Match brands in the European market are estimated to have been stable during 2007. Cricket lighters are marketed using the key selling points of quality, design and safety.
 
Point of sales
Matches are sold in Europe mainly through supermarkets and tobacconist stores as well as gasoline stations and service stores.
 
Lighters are sold mostly in stores that sell tobacco products, and can also be found in outlets where tobacco is not available, such as grocery stores, in some countries.
 
Competitors
Major lighter competitors include Bic and Tokai, and a number of other manufacturers based mainly in China and other parts of Asia. Match competition comes mostly from low cost Asian suppliers as well as a few East European suppliers.
 
Latin America
Main brands
Swedish Match has the largest match brand on the Brazilian market, with Fiat Lux. The Cricket brand of disposable lighters is also widely available.
 
Market
Swedish Match has a significant presence in Latin America, and the largest match market in this region is Brazil, where the Company has a leading position. Swedish Match estimates its market share in Brazil to be at or near 50 percent. In terms of volume, the Brazilian market is about the same size as the total European market and consumption is declining. For lighters,
Cricket is a major brand in Brazil.

Page 31

 
Point of sales
Matches and lighters are widely available wherever tobacco products are sold, and are available in kiosks, supermarkets, variety and discount retailers, and gas and convenience stores.
 
Competitors
For lighters, the largest competitors in Latin America are Bic, Tokai and other Asian manufacturers. In matches, there are some local competitors in Brazil.
 
Other markets
Swedish Match sells matches in a number of markets outside Europe and Latin America, but the value of these sales are relatively low. Swedish Match is the market leader for match products in Australia with the brand Redheads. Swedish Match also has lighter sales in a number of Asian markets.
 
Product development
During 2007, the Company has continued in its efforts to provide improved and innovative packaging and graphics for its fire related products (e.g. fire logs), in order to better serve consumer demands for clear product communication. One approach that has clear consumer appeal has been to integrate all of the fire and match related products under the brand name of the flagship brand in each country, with graphics that are similar across all markets.
For lighters, continuous product development and innovation is necessary, since consumers who purchase lighters are not particularly brand loyal and frequently make impulsive purchases. Swedish Match’s largest and most widespread brand of lighters is Cricket, which represents the premium segment in disposable lighters. Cricket is characterized by quality, safety and design. Innovative design is an increasingly important tool in reaching consumers at the point of sales and
Cricket regularly launches new design series.
 
Swedish Match is also active in developing new safety solutions. To meet with the requirements on child resistant lighters put into effect in the EU 2007, the Company has developed a new safety solution that is one of the most consumer friendly available on the market.
 
Production and distribution
Extensive restructuring of the lights operations over the past three years has resulted in fewer, but highly efficient, facilities in Europe, Brazil and the Philippines. Lighter facilities are located in Manila in the Philippines, Assen in the Netherlands and Manaus in Brazil. Match related production takes place primarily in Tidaholm and Vetlanda in Sweden and in Curitiba in Brazil.
 
Outlook
The Lights product area is able to generate good cash flow and profitability. The Company will strive to defend and strengthen its positions in key markets, in the coming years. Swedish Match will continue to focus on marketing its Cricket brand disposable lighters and utility lighter products. The Company will also work to improve its product positioning for its other fire related products with, for example, innovative package design.
 
The market
 
Swedish Match main brands
Matches: Solstickan, Fiat Lux, Swan,
Tres Estrellas, Feudor, Redheads
Lighters: Cricket
 
Main markets
Russia, Brazil, Sweden, France, the UK, Australia
 
Market dynamics*
Matches: Declining in Europe. Stable to declining in other geographies
Lighters: Declining in Western Europe. Growing in Russia and emerging markets
 
* Source: Swedish Match estimates.