Swedish Match sells matches through its own distribution networks, and also through the distribution network of Scandinavian Tobacco Group. The main markets for Swedish Match are in Europe, Latin America and parts of Asia.
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 development
Swedish Match has a significant presence in Latin America, and the largest match market in this region is Brazil, where the Group has a leading position. Match consumption in Brazil continued to decline in 2010. Swedish Match estimates its market share in Brazil to be approximately 45 percent for matches, in terms of volume.
Point of sales
Matches and lighters are widely available wherever tobacco products are sold, such as kiosks, supermarkets, variety and discount retailers, and gas and convenience stores.
Europe
Main brands
For matches, brands tend to be local, with one brand being iconic in its own country. Some of the best known brands in Europe include Solstickan (Sweden), Swan (UK), Tres Estrellas (Spain), and Feudor (France), among others. For lighters, Swedish Match manufactures one of Europe’s best known brands for quality disposable lighters, Cricket.
Market development
Swedish Match estimates that the consumption of traditional matches continued to decline during 2010, while the market for specialty matches with higher margins was stable. Markets for other fire products such as fire starters and barbeque products grew. Some of the largest match markets in Europe for Swedish Match include the UK, the Nordic countries, and Spain. For lighters, Swedish Match holds a leading market position in Russia within the premium disposable category. The Group also has solid positions in the Nordic countries, the UK, and France. Retail sales of Swedish Match brands in the European market are estimated by Swedish Match to have been lower during 2010 compared with 2009. 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 in some countries also be found in outlets where tobacco is not available, such as grocery stores.
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 matches in Australia with the brand Redheads. Swedish Match also has lighter and/or match sales in a number of African and Asian markets, for example Malaysia, which has exhibited solid growth in its lighters businesses over the past several years.
Competitors
Match competition comes mostly from low cost Asian and other non EU suppliers. Major lighter competitors include Bic, Tokai, Flamagas, and a number of other manufacturers based mainly in China and other parts of Asia.
Production and distribution
Production of matches and fire related products takes place in Sweden (Tidaholm and Vetlanda), in Bulgaria (Kostenetz), and in Brazil (Curitiba and Piraí do Sul). Lighter facilities are located in the Philippines (Manila), in the Netherlands (Assen), and in Brazil (Manaus). Swedish Match ships its lights products to distributors in many countries, and also uses its own sales and distribution network when appropriate. From October 1, 2010, the distribution in an number of countries in Europe as well as Australia/New Zealand is handled by Scandinavian Tobacco Group, a company in which Swedish Match has a 49 percent holding.