Swedish Match Moves Ahead With Snus in U.S.

Swedish Match Moves Ahead With Snus in U.S
Will expand distribution, increase marketing investment
CSP Daily News | 

STOCKHOLM —¬†Tobacco products group Swedish Match will step up promotion of moist Swedish-style snuff, called snus, in the United States this year where it expect the market to grow faster than its Scandinavian home territory, said Reuters.

Snus, a tobacco product put under the lip and sucked, mostly in pouches, is the group’s most profitable product, sold mainly in Scandinavia.

Swedish Match wants to differentiate itself in the larger U.S. market by growing sales of snus, which is pasteurized and has a different texture and taste to fermented U.S.-style snuff.

“During 2012, we will continue to invest for growth. In the U.S. we will expand distribution and invest further in marketing activities,” said Swedish Match, which is the largest producer of snus in Sweden. The product is banned in the rest of the European Union.

Swedish Match, a rival to Altria Group Inc, Reynolds American Inc and British American Tobacco, also makes cigars.

Marketing costs for snus in the United States weighed on fourth-quarter profit, the group said on Wednesday. Operating profit fell to 1.02 billion crowns ($153.6 million U.S.) from a year-earlier 1.42 billion ($312.6 million U.S.).

It said significantly higher international snus investments weighed on the profit margin for snuff and snus, which make up more than half of profit. The margin fell to 45.9% from 48.1%, well below a forecast for 47.6%.

As well as aiming at the U.S. market, its venture with Phillip Morris, SMPM International, planned to trial snus in at least one more market this year, after tests in the Russian city of St Petersburg, Taiwan and Canada.

CEO Lars Dahlgren told Reuters that he expected the U.S. snuff market to grow 5% this year, against 6% in 2011, and the Scandinavian market to grow by at least 3%, against 5% to 6% in 2011.

He said the group would spend 60 million to 100 million ($9 million to $15 million U.S.) crowns more this year on marketing snus outside Scandinavia. Swedish Match said volume at its second key business, U.S. mass-market cigars, was up 14%.

“In the U.S. mass market cigar business … we expect to continue to grow faster than the overall market and generate increased sales and profits in local currency,” it said.

http://www.cspnet.com/news/tobacco/articles/swedish-match-moves-ahead-snus-us

Comments are appreciated! What are your thoughts? Will Scandinavian SNUS succeed in the US? This was a move I anticipated and encouraged!

 

 

5 comments ↓

#1 Frank on 02.24.12 at 4:56 PM

The real Swedish Snus is light years better than the current products on the US market. Once people try it, I can’t imagine they would use anything else. This stuff is the real deal. It is about time they brought it over here.

#2 Candy Girl on 02.24.12 at 7:40 PM

Real Swedish snus is coming to the US market. I expect to see cigarette sales continue to decline and snus use and sales continue to increase.

#3 E-Cigarette Reviews on 02.26.12 at 7:35 PM

I’d like to know why would anyone want to put a product in their mouth that is known to cause cancer? Snus contains tiny glass particles whose purpose is to make tiny cuts on the inside of the lips for better nicotine absorption. Why not just smoke an e-cigarette instead? It’s way safer. Obviously its best not to consumer anything of the sort but Electronic cigarettes have been around since 2007 and they are praised as the best alternative to smoking!

#4 Swedish Snus Blog on 04.14.12 at 4:10 AM

I smoked for 35+ years and tried everything under the sun to quit and always failed. Five years ago i found Swedish Snus and presto I quit. If real snus becomes available at local stores smoking rates will drop.

In response to the comment that snus contains glass…. That is an old myth and I am surprised you would believe such a thing. I chose not to use e cigarettes because one of the I would stay tied to the hand to mouth aspect of smoking. That would make it too easy to smoke a R (real) cigarette. No thanks.

#5 Hishgee on 12.02.15 at 7:38 PM

Being incarcerated and duerggd forcefully insane, means the only sense of reality to these victim smokers is when they are smoking with a friend, or mates. It takes them back to a better place, frees them up from the confines of the asylum in a feeling fellowing way,its about the only sense of who they are,how they are, and what they do that isn’t connected with mental health or drugs or alcohol, the substances that caused them to end up in the bin in the first place.So in effect its the only reality they have that they can relate to or feel part of, in the sociability of smoking,it relaxes them and makes them feel normal when the people in control make them feel abnormal, that’s how it is for most of them,ask them and see. And they want to take away the one thing that connects them with the outside world and a better time and condition in their lives, we all know its bad for you so do they, its their choice in the same way a drinker drinks or a drug taker takes drugs, to socialize with a crutch, like most of us.So a system that force poisons people, sad and mad,with over 70% being non compliant,its a bit rich or rude to tell others not to harm themselves when that’s what they do, to them.

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