• Skip to main content
  • Go to main navigation
  • Go to language selector
SearchFree text

Swedish Match
SWMA Jun 27, 2022
5:29 PM CET
+ 0.5 % 101.40 SEK
The share
  • svenska
Close
  • Swedish Match websites

    • Image Bank
    • Swedish Match Brasil
    • Swedish Match Industries
    • Snus and Match Museum
  • Brand websites

    Smokefree

    • Swedish Match e-commerce service (SE)
    • Swedish Match e-commerce service (CH)
    • General (US)
    • Longhorn (US)
    • Pinkerton Tobacco
    • ZYN

    Lights

    • Cricket
    • Nitedals
    • Redheads
  • Other

    • Swedish Match Denmark
    • The Solstickan Foundation (SE)
  • Our company More Less

    Our company

    • Our company in brief More Less
      • CEO comment
      • Fact sheet
    • Vision and strategy More Less
      • Financial strategy
      • Sustainability strategy
      • Acquisitions and divestments
    • Markets More Less
      • Our product categories and markets
      • Trends
    • Organization More Less
      • Operating locations
      • Employees
    • Company history More Less
      • Svenska Tobaks AB
      • Svenska Tändsticks AB
      • Swedish Match AB
    • Corporate brand

    CEO comment

  • Our business More Less

    Our business

    • Smokefree More Less
      • Market development More Less
        • Smokefree products in the US
        • Smokefree products in Scandinavia
        • Smokefree products in Other markets
      • Nicotine products and regulations
      • History of snus
      • Snus production
      • Ingredients in snus
    • Cigars More Less
      • Market development
      • History of cigars
    • Lights More Less
      • Market development
    • Risk management
    • Outlook and risk factors

    Snus production

  • Corporate Governance More Less

    Corporate Governance

    • Annual General Meeting More Less
      • Annual General Meeting More Less
        • AGM 2021
        • AGM 2020
        • AGM 2019
      • Nominating Committee
      • AGM address and minutes
      • Dividend and financial policy
      • Auditors
      • Articles of association
    • Committees More Less
      • Remuneration Committee
      • Audit Committee
      • Disclosure Committee
    • Board of Directors More Less
      • About the Board
      • Activities of the Board of Directors
      • Compensation to Board
    • Management More Less
      • About the management
      • Guidelines for executive remuneration
      • Management compensation More Less
        • Incentive plans
    • Insider shareholding
    • Corporate Governance reports More Less
      • Internal control
    Participants at the AGM

    Annual General Meeting

  • Sustainability More Less

    Sustainability

    • Sustainability at Swedish Match More Less
      • Materiality assessment
      • Other topics outside our focus areas
      • Our contribution to the UN SDGs More Less
        • UN SDGs aligned with our focus areas
        • UN SDGs beyond our focus areas
      • Sustainability organization
    • Value chain
    • Code of Conduct More Less
      • Group Principles on Communication
      • Group Principles on Environmental Management
      • Supplier Code of Conduct
    • Sustainable Tobacco Program
    • Improve public health
    • Ensure ethical business practices
    • Reduce environmental impact
    • Human rights in our supply chain
    • Equal opportunity
    • Sustainability reporting More Less
      • Sustainability reporting archive
    • Sustainability FAQ
    • Sustainability contacts
  • Investors More Less

    Investors

    • The share More Less
      • Per share data
      • Shares outstanding
      • Share capital development
      • Share holdings More Less
        • Largest shareholders
      • Dividend information
      • Analysts and estimates
      • Indicies
    • Share split
    • Follow our journey
    • Calendar
    • Presentations More Less
      • Webcasts and audiocasts
    • Financial reports More Less
      • Interim reports
      • Annual reports More Less
        • Annual report 2021
    • Financial tables More Less
      • Income statement
      • Balance sheet
      • Cash flow analysis
      • By product segment More Less
        • Sales
        • Operating profit
        • Operating margin
      • Key ratios
      • Statement of comprehensive income
    • Debt information More Less
      • Debt sources of financing
      • Debt programs
      • Outstanding bonds
      • Credit rating
      • Financial risks More Less
        • Sensitivity analysis
    • IR contacts
    • Information on cash offer announcement by PMI
  • Media More Less

    Media

    • Press releases and news
    • Images More Less
      • Swedish Match logotype
    • Videos
    • Pressroom
    • Media contacts
  • Snus and health More Less

    Snus and health

    • Our standpoint
    • The Swedish Experience
    • Research on snus
    • Smoking cessation
    • GOTHIATEK® More Less
      • GOTHIATEK® standard
    • Snus and the Swedish Food Act
    • Nicotine More Less
      • Nicotine labeling of Swedish Match products
      • Snus, nicotine and nicotine addiction
    • Tobacco use More Less
      • Tobacco use in figures
    GOTHIATEK® Quality standard

    Swedish Match quality standard

  • Career More Less

    Career

    • Employee strategy
    • Our culture More Less
      • Employee surveys
    • Work environment
    • Diversity and non-discrimination
    • Competence development
    • Compensation and benefits
    • What we do
    • Meet our employees
    • Vacant positions
    • Student
    • HR contacts

    Vacant positions

Our websites
Language:
  • English
  • svenska
Media
  • Press releases and news
  • Images
  • Videos
  • Pressroom
  • Media contacts
Swedish Match's logo
News; Nov 5, 2008 CET

Sales driving growth

After ten successful years, Swedish Match in North America is continuing to drive sales and focus on innovation. New segments are emerging continuously and the American snuff is rapidly gaining ground.

 

 

Lennart FreemanWe have had ten years of success and when looking at the financials, we have increased operating income almost four times over the past decade, says Lennart Freeman, President, Swedish Match North America Division.

 

To be as successful over the next ten years there is hard work ahead. Despite a declining world economy, increasing tobacco regulations and a tough market environment, Freeman is convinced that Swedish Match will continue to successfully drive innovation and increase sales.

“With the existing conditions in the US, sales of luxury goods, such as premium cigars, are not doing as well as before,” he says. “Tobacco regulations and the ongoing debate about the health risks in using tobacco products are challenges we have to address. We have to find ways to turn tough market challenges into profitable business opportunities.” 

 “The snuff area is growing rapidly,” he says. “Over the past several years the US moist snuff market has grown by more than six percent per year. So far in 2008, ACNielsen estimates market growth to be in the range of seven percent with the value-priced and pouch segments delivering the strongest growth. More consumers are entering this category, including those having, or trying to, quit smoking. A broad range of brands, products and attractive pricing have further fuelled the market growth.”

Expanding strong brands

In the US market, the moist snuff product Red Man was launched in 2007. Red Man has strong recognition among smokefree tobacco consumers in the US and by expanding the brand to include the moist snuff category, provides access to the strong brand values that Red Man represents: quality, heritage and tradition.

“We expect continued growth in the moist snuff area due to smoking bans and increased understanding of the concept of harm reduction,” Freeman says. “When the message of relative low health risks associated with smokeless products is fully understood, the market will enormous.”

Consumer dynamics are different in the moist snuff category and the consumers tend to be more conservative than in, for example, the cigar category.

“The number of new players entering the markets are increasing, which challenges us to offer a broad selection that attracts our consumers. The cigar category is more of a fashion industry; the consumer appreciates different flavors, new packaging and innovative formats. The volume will always be smaller, especially in the premium segment; it is a lifestyle product of higher value.

Adaptable organization

Compared to other large international tobacco companies, Swedish Match is a rather small player on the US market. However, Freeman sees competitive advantages.

“It is not as easy for large corporations to have flexible production, marketing, sales and administration as it might be for smaller companies,” he says. “We are innovative and can easily adapt our efforts, including production, which has especially shown in the category of machine-made cigars. We have an organization with efficient decision processes and we can more easily adapt to the market and it’s changing consumer demands.”

Other important success factors, Freeman says, include having the right people in the right places with passion for the business, and a good leadership.

“I am proud to say, we have some of the best people in the industry,” he says. Some of the big tobacco companies have entered the snuff market and are showing strong decisiveness in developing the smoke free category.

“To go forward, we have to follow our consumers, stay focused, be innovative about our strong brands and keep refining our business model from year to year. That’s how we will drive profitable growth through new offerings,” Freeman concludes.

By: Karoline Hammar
Emmett Harrison

Emmett Harrison

Senior Vice President Investor Relations
Email
+46-70-9380173
Download vcard

Related documents

  • Presentations
  • Our company
  • CEO comment
  • Annual General Meeting

Share

Share Facebook Share Twitter Share Linkedin

Share this page by email

Incorrect email
Incorrect email
Home / Media / Press releases and news /

Contact us

  • IR contacts
  • Media contacts
  • Sustainability contacts
  • HR contacts
  • Consumer contact
  • Web contact

Find us

  • Headquarters
  • Sales office
  • Factory
  • Distribution
  • Store
  • Research & Development
  • All addresses
Map

Corporate headquarters

Phone: +46 10 13 93 000

Sveavägen 44
SE-118 85 Stockholm

Corporate headquarters
Swedish Match

Swedish Match AB
SE-118 85 Stockholm

Phone +46 10 13 93 000
Corporate reg no. 556015-0756
contactus@swedishmatch.com

About the website

  • Sitemap
  • Site policy
  • Privacy notice
  • Information about cookies
  • Legal responsibility

Find information

  • Search
  • FAQ
  • Archive
  • Glossary

Subscription services

  • Subscription service
  • RSS

Follow us

Facebook Twitter Linkedin