Our value chain
Swedish Match manufactures snus, moist snuff, chewing tobacco, chew bags, non-tobacco nicotine products, cigars, matches and lighters at 13 facilities; in Sweden, the US, the Dominican Republic, the Netherlands, the Philippines, Brazil and Denmark.
The value chain for our products includes research and development of new and refined products, raw material extraction 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. Materials are mostly sourced through outside parties. There are strict requirements in sourcing.
With the GOTHIATEK® standard, for example, there needs to be careful testing, at several stages of the value chain, and selection of raw tobacco. Testing starts at the farm level, which makes way for traceability, for our snus products. This way of working has influence on the long term standard for other tobacco products as well as for other raw material supplies.
Our Supplier Code of Conduct forms the basis of our relationship with suppliers. Our greatest risks, impacts and potential for improvement in these stages of the value chain relate to ethical business practices, child labor and human rights, as well as greenhouse gases. These areas are in focus in our supplier due diligence and dialogue. To reach our goals in several focus areas we are dependent on fruitful collaboration with our suppliers and sub-suppliers.
Our own operations are in scope for all focus areas. The policies that guide us in our daily operations are outlined in our Code of Conduct, which applies to all within the Group. It also forms the foundation for our sustainability strategy and results.
Our employees drive innovation and co-create business success. Their opportunities to develop to their full potential are an important component in this success and in our sustainability efforts. Our employees are the “drivers and doers” behind maintaining high standards of quality in our products, improving procurement practices addressing carbon intensities, eliminating risks and prevalence of child labor and ensuring high standards of business conduct in our value chain.
Snus is distributed and sold to markets in Sweden and Norway through SMD Logistics, Sweden. Chew bags are distributed and sold through own and third parties in Europe. Moist snuff, US chewing tobacco and cigars, alongside snus and nicotine pouches without tobacco are distributed and sold to the US market via third party distributors from company owned warehouses. Matches and lighters are distributed and sold through a wide network of partners, worldwide. In Brazil, matches, lighters, and complementary products are distributed and sold through local partners.
The primary sales channels for our products are supermarkets, convenience stores, tobacconists, and gasoline stations. Other channels include bars, restaurants, airports, and ferries, along with e-commerce, exclusive snus stores and pop-up stores in various markets.
Tobacco products are subject to extensive requirements in local laws and regulations and our marketing departments work closely with our legal departments to assure compliance.
We are committed to providing attractive alternatives to cigarettes, such as snus and nicotine pouches without tobacco, contributing to improved public health. 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® standard (for snus).