Our value chain
Swedish Match manufactures snus, nicotine pouches, moist snuff, chewing tobacco, cigars, matches and lighters at 15 facilities – in Sweden, the US, the Dominican Republic, Denmark, the Netherlands, the Philippines and Brazil.
The value chain for our products includes research and development of new and refined products, raw material sourcing and production, processing at suppliers, manufacturing at Swedish Match’s facilities, transportation and distribution between the various value chain stages, and sales through retailers (customers) as well as consumer use and final disposal of product.
Raw materials for our products come from many geographies and are mostly sourced through outside parties. There are strict requirements in sourcing. The Company owns forestry plantations in Brazil. It does not own any other farms other than for forestry.
With the GOTHIATEK® quality standard for snus, thorough testing of the tobacco takes place at several stages of the value chain, and selection of raw tobacco. Testing often starts at the farm level. This way of working has influence on how we engage with other raw material supplies.
Our Supplier Code of Conduct forms the basis of our relationship with suppliers. Our risks and potential for improvements in these stages of the value chain, relate to ethical business practices, child labor and human rights, as well as greenhouse gas emissions. These specific sustainability focus areas are prioritized in our supplier due diligence and ongoing dialogue with suppliers. To reach our goals in several focus areas we are dependent on fruitful collaboration with our suppliers and sub-suppliers.
The policies that guide us in our daily operations are outlined in our Code of Conduct, which applies to all employees within the Group. Our employees drive the ideas, innovation and methods to be a more successful company. Their opportunities to develop to their full potential are an important component in this success and in our sustainability efforts.
For the Swedish market, and for distribution to the Norwegian market, Swedish Match has its own distribution company, SMD Logistics. In other parts of Europe, products are distributed primarily through own and third party distributors. Distribution for the US market is primarily via third party distributors. Lights products are distributed through a wide network of partners, worldwide.
The primary sales channels for our products are convenience stores, tobacconists, gasoline stations, and supermarkets. Other channels include bars, restaurants, airports, and ferries, along with e-commerce, and our own dedicated stores in various markets.
We are committed to providing attractive alternatives to cigarettes, such as snus and nicotine pouches, contributing to improved public health. Our products are intended for adult consumers only. We use a structured approach to consumer insight, assessing consumers’ needs, trends and brand values to influence innovation. Our R&D facilities work to develop new products and to monitor and improve existing products in line with the GOTHIATEK® quality standard for example (for snus).