Snuff and snus
Swedish Match is the market leading producer of snus in the Scandinavian markets, where snus enjoys widespread product appeal. Moist snuff continues to be among the fastest growing categories in the US tobacco market, and Swedish Match is improving its position with market share gains.
With its strong portfolio of brands, Swedish Match strives to maintain and enhance its market positions wherever it competes. The moist snuff and snus product categories provide opportunities for further growth in sales and profit.
Operational highlights 2008:
- Improved sales and profitability on the Scandinavian market.
- North America moist snuff shipment volumes up 13 percent.
- Red Man moist snuff rolled out nationwide in the US.
Main brands:
Scandinavia: General, Ettan, Grovsnus, Kronan, Göteborgs Rapé, Catch
US: Timber Wolf, Longhorn, Red Man
Main markets:
Sweden, Norway, the US, South Africa
Production units:
Sweden, the US, South Africa
Outlook
The Company will continue to build on its strengths, positioned as the smokefree leader, not only in Scandinavia, but on a Global Scale. The largest market for snus in Scandinavia is Sweden. With continued product innovation, a commitment to being the most valued partner to our customers, and a company culture dedicated to making sure that Swedish Match brands are the preferred choice by consumers, the Company will be well positioned to maintain its leadership positions. After two successive years of dramatic increases in the Swedish excise tax on snus, the decision not to further increase the weight based tax in January 2009 should bring more volume stability on the Swedish Market.
Continued volume growth in the US moist snuff market is expected, and the US snus market is expected to experience a great deal of activity, often on a test market basis. Swedish Match is well positioned in the lower priced segments of the US moist snuff markets – segments which are expected to grow faster than the overall US moist snuff market.
Public smoking bans, heightened understanding of the concept of harm reduction, new and innovative products, and increased industry activity should support further market growth of the moist snuff and snus product segments wherever these products are available.
The Company will work to expand its footprint beyond the US and Scandinavia through its joint venture with Philip Morris International, and will work to continually strengthen its position within its core markets. As a global leader in smokefree tobacco, the Company can drive change and continue growth in a new and changing competitive landscape.