Smokefree
Swedish Match has a market leading position in the Scandinavian snus market and is the number two player for nicotine pouches. In the US, the Company is the largest player in the non-tobacco nicotine pouch market as well as the largest producer of chewing tobacco. The Company is also well positioned as the third largest moist snuff player, and has a longstanding presence with snus in the US market. In Europe, Swedish Match is present in the niche chewing tobacco categories of chew bags and tobacco bits.
Share of product segments 2019:
Sales: 62%
Operating profit: 69%
Main brands:
Snus, Sweden: General, Göteborgs Rapé, Kaliber, Kronan, Ettan, Grov, Catch
Snus, Norway: General, G.3, The Lab, Nick & Johnny
Snus, US: General
Nicotine pouches, Sweden and Denmark: ZYN
Nicotine pouches, Norway: G.4
Nicotine pouches, US: ZYN
Pouch products with neither tobacco nor nicotine, Sweden and Norway: Onico
Moist snuff, US: Longhorn, Timber Wolf
Chewing tobacco, the US: Red Man
Chew bags, Europe: Thunder, General CUT
Tobacco bits, Europe: Oliver Twist
Main markets:
The US, Sweden, Norway, Europe
| Swedish Match shipment volumes | 2019 | 2018 | Change, % |
|---|---|---|---|
| Snus and nicotine pouches, Scandinavia1), millions of cans | 268.9 | 263.6 | 2 |
| Moist snuff, US, millions of cans | 124.0 | 126.3 | -2 |
| Snus and nicotine pouches, outside Scandinavia, millions of cans | 62.8 | 25.3 | 149 |
| Chewing tobacco, thousands of pounds (excl. contract manufacturing volume) | 5,681 | 6,093 | -7 |
1) Includes snus volumes for Gotlandssnus from acquisition date, August 22, 2018. Scandinavia refers to Sweden, Norway, and Denmark.
Production units:
Production in Sweden (snus, nicotine pouches), the US (moist snuff, nicotine pouches, chewing tobacco) and Denmark (chew bags and tobacco bits).
Strategy
Swedish Match’s vision is a world without cigarettes, providing consumers enjoyable alternatives that are both satisfying and dramatically safer than smoking. Smokefree alternatives, including snus and moist snuff, as well as innovative products such as nicotine pouches play an important part in moving toward the vision. In Scandinavia, consumer preference for snus and nicotine pouches versus cigarettes has increased over the years. Swedish Match is dedicated to further developing the growing snus and nicotine pouch category in Scandinavia, the US, and certain other markets, thereby contributing significantly to improved public health.
The Company’s major competitive strengths include its superior quality products, in depth know-how, and ability to quickly adapt to evolving consumer needs. The Company’s strengths also include offering both traditional and modern high quality products with both well established and new brands, and its capabilities in the areas of analyzing the needs of consumers, conducting research, product innovation, and servicing customers.
Swedish Match will leverage its unique snus, nicotine pouch, and moist snuff platforms and continue to innovate and develop new and improved products with outstanding quality and value. Swedish Match endeavors to drive category growth and maintain its leading position in Scandinavia. In the US, we will focus on faster growing market segments such as nicotine pouches and moist snuff pouches, as well as snus. Swedish Match will explore opportunities for Swedish snus and other innovative smokefree products in both existing and new markets.
For chewing tobacco in the US, Swedish Match will capitalize on its leading position in the category and continuously drive productivity improvements. By mitigating the impact of volume declines through cost focus and price leadership Swedish Match can ensure good profitability in this declining category. For chew bags and tobacco bits, Swedish Match will exploit opportunities in these niche segments.
Financial development
| Key data | 2019 | 2018 |
|---|---|---|
| Sales, MSEK | 8,914 | 7,477 |
| Operating profit, MSEK | 3 997 | 3,317 |
| Operating margin, % | 44.8 | 44.4 |
See financial tables by product segment for more financial information.
