The global market for snus and moist snuff is estimated to be approximately 1.7 billion cans, and growing.1) The Scandinavian market, which includes Sweden, Norway and Travel Retail, is estimated by Swedish Match to amount to 285 million cans of snus, up approximately 6 percent from the preceding year.2) In Norway, snus consumption has risen rapidly in recent years, as more consumers are switching from cigarettes to snus. In the US, Swedish Match primarily sells moist snuff, but increased resources are now being dedicated to the snus category. In markets outside the US and Scandinavia, Swedish Match, through SMPM International (the joint venture with Philip Morris International), is engaged in test market snus activities in Taiwan, Canada, and Russia.
Main brands:
Sweden: General, Göteborgs Rapé, Ettan, Grovsnus, Catch, Kronan
Norway: General, Nick and Johnny, The Lab Series, Catch, Göteborgs Rapé
US: Longhorn, Timber Wolf, Red Man, General
Main markets:
Sweden, Norway, the US
Production units:
Sweden, the US
Strategy
Swedish Match endeavors to be the global smokefree leader. Success will come from dedicated employees working closely together in building on the strong brand portfolio, maintaining and improving technological leadership, leveraging the Company’s unique Swedish heritage and market leadership in Scandinavia, and providing consumers with products they enjoy.
Swedish Match’s strength in smokefree products lies in its high quality products and well established brands in combination with deep consumer insight. Swedish Match will continue to innovate and develop new and improved products while leveraging its brands’ strengths in order to meet the ever changing desires of the market.
The Group will pursue organic growth opportunities in its home markets, while also exploring growth opportunities (outside Scandinavia and the US) through SMPM International.
Swedish Match strives to be the preferred choice for consumers of smokefree products, the most valued partner to retailers and distributors, and the industry authority for regulators and opinion makers.
Financial development
Sales for the product area during the year increased by 5 percent to 4,726 MSEK (4,522). Operating profit for the year increased by 5 percent to 2,181 MSEK (2,080).
In the Scandinavian market, Swedish Match sales increased by 10 percent, from improved pricing and 4 percent higher shipment volumes. Shipment volumes increased in both Sweden and Norway during the year. In the US, Swedish Match moist snuff sales grew despite declines in market share in a rapidly growing market. The US moist snuff market grew by 6 percent in 20113), with intense pricing and promotional activity as well as a number of new product launches. Swedish Match’s shipment volumes in the US were basically flat.
The operating margin was 46.1 percent for the year (46.0), impacted by higher spending levels for Swedish snus expansion projects in both the US and through the SMPM International.
See financial tables by product area for more financial information.
1) Source: Nielsen and Swedish Match estimates.
2) Adjusted for hoarding and other timing effects.
3) Source: Nielsen.