Organic growth is the foundation for the Swedish Match strategy and we see significant potential for strengthening our market positions in smokefree products in Scandinavia and the US, and through the joint venture partnership with Philip Morris International, in markets outside of Scandinavia and the US. Swedish Match also sees strong potential for growth for mass market cigars in the US.
Organic growth, particularly for snus, moist snuff, and US mass market cigars, results from investments in active product development, new launches and relaunches, new flavors, innovative formats and various forms of brand extensions. It is also the result of adaptation to changes in consumption patterns, market positioning and the right product/price mix in our broad product portfolio.
The US is the largest market for moist snuff, and represents a strong potential for Swedish snus. Since 2007, Swedish Match has conducted sales of Swedish snus and has by the end of 2010 expanded its presence to over 1,200 locations throughout the US.
Scandinavia, the largest market for snus, primarily comprises Sweden and a growing market in Norway as well as travel retail sales. One factor influencing growth in Scandinavia has historically been the switch from cigarettes to snus.
A third area is the growing market for mass market cigars in the US, where Swedish Match focuses on supplying the market with consumer relevant innovations to drive growth.
Page updated Apr 5, 2011