Snus and moist snuff

Swedish Match has a market leading position in the Scandinavian snus market. In the US, Swedish Match is well positioned as the third largest snus and moist snuff company.

Production units are located in Sweden (snus) and the US (moist snuff).

Key data, MSEK201620152014
Sales5,2775,0905,001
Operating profit2,1972,0712,207
Operating margin, %41.640.744.1
Swedish Match shipment volumes, millions of cans20162015Change, %
Snus, Scandinavia241.3236.32
Moist snuff, US131.4132.1-1

Share of Group total:
Sales: 35%
Operating profit: 54%

Main brands:
Sweden
Snus:General, Göteborgs Rapé, Ettan, Grov, Catch, Kaliber, Kronan
Norway
Snus: General, General G.3, Nick & Johnny, The Lab
US
Moist snuff: Longhorn, Timber Wolf  
Snus: General
Nicotine pouches without tobacco: ZYN

Main markets:
Sweden, Norway, the US

Production units:
Sweden, the US

Strategy

Swedish Match’s vision is of a world without cigarettes, providing consumers enjoyable alternatives that are both satisfying and safer than smoking. Smokeless alternatives, including snus and moist snuff, as well as innovative products (such as nicotine pouches without tobacco) are an important part in moving toward the vision. As snus consumption grows, cigarette consumption declines. In Scandinavia, consumer preference for snus versus cigarettes has increased over the years, especially among younger adults in Norway. Swedish Match is dedicated to further developing the growing snus categories in Scandinavia, the US, and potentially other markets, thereby contributing significantly to improved public health.

The Company’s major competitive strengths includes its ability to quickly adapt to evolving consumer needs, offering new and innovative high quality products with both well established and new brands, analyzing the needs of consumers, conducting research, and servicing customers.

Swedish Match will leverage its unique Snus and moist snuff platform, and continue to innovate and develop new and improved products with outstanding quality and value. Swedish Match will endeavor to drive category growth and maintain its leading position in Scandinavia. It will also work to develop the snus category in the US and establish a strong presence in the market. Swedish Match will work to build on its position in the US moist snuff market, ­targeting the faster growing segments. The Company will explore opportunities for Swedish snus and other innovative smokeless products in both existing and new markets.

Financial development

Sales for the product area grew by 4 percent in local currencies, with growth in Scandinavia and the US. Operating profit increased to 2,197 MSEK (2,071).
In Scandinavia, Swedish Match’s shipment volumes grew by 2 percent. Swedish Match estimates that its underlying volumes (adjusted for destocking and hoarding) on the Scandinavian market increased by more than 1 percent. Swedish Match estimates that the total Scandinavian snus market grew by approximately 4 percent in volume terms.

Operating profit for snus in Scandinavia grew but higher sales and gross profit were partially offset by increased market related costs. In the US, sales and operating profit for moist snuff increased in local currencies from improved pricing despite marginally lower volumes. For General snus and ZYN nicotine pouches without tobacco in the US, both sales and gross profit increased.

The total net operating loss for snus and nicotine pouches outside Scandinavia decreased to 233 MSEK (337). The reduced net operating loss was partly due to the absence of costs for a dissolved joint venture.

See financial tables by product area for more financial information.