Snuff and snus
Swedish Match is by far the largest producer of snus in the Scandinavian markets, where snus is a highly popular tobacco product. Moist snuff is the fastest growing category in the US tobacco market and is well positioned in the value segment.
Through innovative products, new and repositioned brands, Swedish Match strives to maintain and enhance its market positions wherever it competes. These product categories offer significant growth potential for Swedish Match.
Operational highlights 2007:
- Continued strong volume growth in Norway and duty free.
- Lower volumes in Sweden on doubling of excise tax.
- North American snuff volumes up 21 percent.
- Red Man moist snuff launched in the US.
Main brands:
General, Ettan, Catch, Grovsnus, Göteborgs Rapé, Timber Wolf, Longhorn, Taxi
Main markets:
Sweden, Norway, the US, South Africa
Production units:
Sweden, the US, South Africa
Outlook
Snuff and snus producers face challenges and opportunities as a result of the changing dynamics in the market place, with continued rapid growth of the snuff market in the US, and a broadening assortment of available products in both the US and Scandinavia. Continued growth in the US market is expected due to the relatively low usage incidence, smoking bans, and heightened understanding of the concept of harm reduction. While nearly all of the growth in the US will come from traditional moist snuff in the shorter term, opportunities also exist to further develop and increase the size of the Swedish style snus market in the US.
Hoarding following significantly increased excise taxes for snus in Sweden has a negative impact on shipments of snus during the first half of 2008. However, with the extensive product range and rapid pace of innovative new product development, Swedish Match is well positioned to meet market challenges. At the same time as focusing on existing markets, the Group continues to explore the potential for geographical expansion.