Swedish Match maintains a significant presence for US mass market cigars. Swedish Match is the largest manufacturer of US chewing tobacco with market leading brands. Nearly all the products are sold exclusively on the US market.
Swedish Match has experienced rapid growth with its US mass market cigars, including such well-known brands as White Owl and Garcia y Vega, with innovative products and packaging that deliver what consumers want most – quality, freshness, and value. In US chewing tobacco, Swedish Match maintains a leadership position, with solid performance in a declining product category.
Main brands:
US mass market cigars: White Owl, Garcia y Vega, Game by Garcia y Vega
Chewing tobacco: Red Man, Southern Pride, J.D.’s Blend, Granger Select
Main markets: the US
Production units: the US, the Dominican Republic
Strategy
In the product area Other tobacco products, Swedish Match will leverage its strong platforms in order to maximize long term profitability.
For US mass market cigars, the Company will drive profitable growth through consumer- driven innovation and strong sales execution. The Company will continue to innovate, delivering high quality products in segments where Swedish Match already has a strong market position as well as in the mass market cigar segments where the Company currently is underrepresented.
For chewing tobacco, Swedish Match will capitalize on its leading position in the category and continuously drive productivity improvements. Chewing tobacco holds a unique position in the Company’s portfolio as a genuine American product. With its efficient production, well known and trusted brands as well as category leadership, the Group has been able to leverage its strengths in a declining product category while sustaining profits over time.
Financial development
Sales for the product area for the year decreased by 2 percent to 2,388 MSEK (2,440), and operating profit increased by 11 percent to 1,049 MSEK (942). In local currency terms, sales grew by 9 percent. Mass market cigars experienced significant sales and volume growth. For chewing tobacco sales were flat in local currency terms. The operating margin for the product area was 44.0 percent (38.6).
See financial tables by product area for more financial information.
Page updated Apr 25, 2012