Market
Global consumption of pipe tobacco is declining, in terms of both volumes and sales. The largest markets for pipe tobacco are North America and Europe, where Swedish Match estimates consumption to decline at low double digit levels. South Africa is an important market for Swedish Match, where the Group has a leading market position.
In Asia and parts of Eastern Europe, the use of pipe tobacco is relatively limited. Most of Swedish Matchs brands are local, including Boxer and Best Blend in South Africa, and Half and Half in the US. In Europe and many other markets, Borkum Riff is one of the leading international brands.
Europe
Borkum Riff Borkum Riff Swedish Match markets its products throughout Europe, with the strongest positions in Sweden, Austria, Spain and Switzerland. Consumption in Europe typically declines by 10 percent or more per year.
Borkum Riff is one of the Companys best known brands. In the accessories segment, Swedish Match has a leading position for many smoking related accessories in the UK, and is present in some other countries.
Pipe tobacco is sold mainly through tobacconists, as well as convenience stores and supermarkets.
North America
Half and HalfHalf and Half Consumption of pipe tobacco in North America declined by an estimated 8 percent during 2007*. Swedish Match's market share in terms of volume is approximately 16 percent. Half and Half and Borkum Riff are two of the Company's best selling brands. Pipe tobacco is sold mainly through drugstores, supermarkets, convenience stores, low-price outlets and specialty tobacco stores in the US.
South Africa
Boxer Swedish Match is the largest manufacturer and distributor in South Africa, and brands sold by the Group include Boxer, Best Blend, Nineteen O'Four, Black and White, and Giraffe. Consumption of pipe tobacco in South Africa declined by approximately 4 percent in volume terms during 2007. Some consumers use pipe tobacco as a traditional product and others as roll your own.
Other markets
Swedish Match has only a marginal presence in pipe tobacco outside its main markets, for instance in Australia and parts of Asia. In Australia, Borkum Riff is the leading pipe tobacco brand.
Competitors
Eight producers account for about three-fourths of global pipe tobacco production. Most manufacturers also produce other tobacco products for the local or international markets. Competitors include MacBaren, Middleton, Lane (Reynolds American) and Imperial/Altadis.
*Source: ACNielsen