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Snus and moist snuff

Swedish Match has a market leading position in the Scandinavian snus market. In the US, Swedish Match is well positioned as the third largest snus and moist snuff company. Through its 50/50 joint venture, SMPM International, Swedish Match is well positioned to explore and develop new markets for snus outside of Scandinavia and the US. Production units are located in Sweden (snus) and the US (moist snuff).

Sweden is the world’s largest snus market measured by per capita consumption. The Norwegian market is smaller than the Swedish market but has experienced strong volume growth in recent years. The US is the world’s largest moist snuff market measured in number of cans and is about five times larger than the Scandinavian snus market. In Sweden and Norway, Swedish Match has a leading position. In the US, the Group is the third largest player in moist snuff, and has a rapidly growing position in snus.

Main brands:
Sweden: General, Göteborgs Rapé, Grov, Ettan, Catch, Kaliber, Kronan
Norway: General, The LAB, Nick and Johnny
US: Longhorn, Timber Wolf, General

Main markets:
Sweden, Norway, the US

Production units:
Sweden, the US

Financial development

Sales for the Snus and moist snuff product area during 2013 declined by 4 percent to 4,868 MSEK (5,049). Operating profit for the year declined by 7 percent to 2,195 MSEK (2,349).

In the Scandinavian market, Swedish Match sales declined by 3 percent, negatively affected by a weaker Norwegian krona.

In the US, Swedish Match’s snus and snuff sales declined by 3 percent versus prior year in part due to lower volumes for moist snuff which were not fully compensated by higher volumes for snus. Operating profit was lower, stemming from increased investments in order to further develop both the US snus presence, as well as pouch and tub products for moist snuff.

The operating margin was 45.1 percent (46.5) for the year 2013, impacted by higher spending levels for Swedish snus expansion projects in both the US and through SMPM International.

See financial tables by product area for more financial information.