Kronan Price

[rscott222]

Will you have to pay more for Kronan? As I'm a snubie I haven't yet seen a price increase but I found this article so I thought I would share.

Excerpt from Reuters:

Dahlgren said the company will go ahead with price increases of 4 percent on average in Sweden in the last week in June, with most of the increase seen on its "value-priced" Kronan brand.

"We think that brand has become big enough and gained enough loyalty that it can support a little bit of higher pricing."

He declined to say when the company would raise prices in the United States, stressing it was not the price leader as it is still a relatively small player there.

But he said competitors were probably considering their options and could move on prices in the autumn as they often do.

Source: http://in.reuters.com/article/consum...nnel=0&sp=true

[Lucky Striker]

Kronan went up here about .60 from this same time last year. Over in Sweden, it became really popular when the price of snus increased, and Swedish match upped the price accordingly. Over there, Kronan was priced about 1.50 cheaper than General and Grov, so Kronan was a pretty good seller. SM's two "budget" brands were Tre Ankare and Kronan, but now they're only slightly cheaper than premium. The difference is more like .25 between Kronan and General.

Brands like Level and LD occupy "budget" status in Sweden that used to be filled by Kronan, and are much more popular there than they are here. When you have a monopoly like Swedish Match, you don't need a budget line. :lol:

[EsotericPC]

I wouldnt mind paying a little more if we could buy snus in stores in the usa

[justintempler]

Re: Kronan Price

He declined to say when the company would raise prices in the United States, stressing it was not the price leader as it is still a relatively small player there.

I think there they are talking about Swedish Match's American Brands:
Snuff: Timber Wolf, Red Man, Longhorn
Chewing tobacco: Red Man, Southern Pride, Granger Select

From their 2008 Annual Report

In the US, Red Man moist snuff was a clear success, having grown the fastest of any Swedish Match new product launch in the US, and approaching 2 percent share of market at the end of the year – after only 15 months since the first launch. Red Man now joins Timber Wolf and Longhorn in the snuff portfolio, and together these brands offer a strong and competitive brand portfolio that took Swedish Match volumes to an all time high. Our US moist snuff market share reached another milestone in 2008, surpassing 12 percent for the full year.

[rscott222]

That would make sense that they were talking about Kronan's in Sweden and US Long Cut tobacco in the US.

[justintempler]

Brands like Level and LD occupy "budget" status in Sweden that used to be filled by Kronan, and are much more popular there than they are here. When you have a monopoly like Swedish Match, you don't need a budget line. :lol:

In a way that is a mistake. F&L started out by carving out a niche by pursuing the budget (Granit) and midpriced (Retro) segments. They have managed to grow their market share to over 9% of the market, and they expect to top 10% this year.

marketshare
1 procent av snusmarknaden – oktober 2004
2 procent – oktober 2005
3 procent – februari 2006
4 procent – juni 2006
5 procent – december 2006
6 procent – oktober 2007
7 procent – april 2008
9-10%+(?) = 2009

and the recession (and tax hikes) has shifted more people to the value segments.

[justintempler]

Case in point: F&L is up to 10.4% marketshare.
So they've already surpassed the goal they set for themselves this year.

Link - source

Business - Published Friday, 12 June 2009 09:27 | Author: Johan Nylander
Swedish snuff market tightens

The competition on the Swedish market for snuff is getting tougher as newcomers challenge giant tobacco company Swedish Match.



Swedish Match, tobacco producer founded in 1917 by the “Match-king” Ivar Kreuger, is facing harder competition on the Swedish market for snuff as new players enter the stage.

Swedish snus, a moist powder tobacco product that you consume by placing it under the lip, is banned in all EU countries except Sweden. It's also commonly used in Norway and the US.

During April – May Swedish Match’s market share fell 0.7 percent to 86.3 percent compared to the measuring previous period February – March, new figures from research firm AC Nielsen shows.

“This is a trend that’s been going on for some time. I think Swedish Match is worried, but they still have a dominant position”, said Mikael Holm, analyst at Swedbank, to The Swedish Wire.

Meanwhile BAT/Fiedler & Lundgren stepped up its market share from 9.7 percent to 10.4 and Japan Tobacco to 1.5 percent, the business newswire Direkt writes. Imperial Tobacco kept its 1.7 percents market share.

Swedish Match’s General is still the largest brand with more than a quarter of the Swedish market.

While exclusive high-price brands have emerged at the Swedish snuff market, the trend with low-price products increase. Swedish Match’s share of the low-price market was only 53 percent while BAT increased to almost 39 percent.

“Swedish Match has lost ground due to the low-price market where they don’t have the same dominance as with premium products”, said Mikael Holm who believes that the prices are about to go up.

“This is a market with low elasticity. It’s possible to raise prices without losing market shares. If Swedish match increase the price tag on low-price products the competitors are likely to follow”.

During this year’s first quarter Swedish Match increased its sales with 25 percent and operating profit was up 55 percent to 846 million kronor (€80 million). Almost half of the profit came from snuff sold in Sweden, Norway and the US.

“The total market in the US is growing and Swedish Match is taking market shares. In the US they are challengers”, Mikael Holm said.

[chadizzy1]

who cares if you have to pay more for kronan
it sucks

tastes like f'ing pickles

[lxskllr]

who cares if you have to pay more for kronan
it sucks

tastes like f'ing pickles

I don't think it tastes like pickles, but it does indeed suck. It's the only lös snus I've thrown out. Any price is too much for Kronan.

[rscott222]

What does Imperial Tobacco make? Any further information on this company?

[Lucky Striker]

Imperial makes (I believe) the Davidoff snus found in Canada.

[justintempler]

What does Imperial Tobacco make? Any further information on this company?

Imperial owns Skruf in Sweden

[Lucky Striker]

What does Imperial Tobacco make? Any further information on this company?

Imperial owns Skruf in Sweden

It was my understanding that they only distributed Skruf? (Skruf AB holds Skruf and Knox).

Update: apparently Imperial has a 43% stake in Skruf AB: http://www.tobacco.org/news/206440.html

[justintempler]

What does Imperial Tobacco make? Any further information on this company?

Imperial owns Skruf in Sweden

It was my understanding that they only distributed Skruf? (Skruf AB holds Skruf and Knox).

Update: apparently Imperial has a 43% stake in Skruf AB: http://www.tobacco.org/news/206440.html

100% now 8)

http://www.tobaccojournal.com/Imperi...f.49139.0.html

Imperial acquires rest of Skruf
28 Jul 2008. Imperial Tobacco said in a statement last week that it purchased the remaining 57 per cent of Swedish snuff maker Skruf in June for a “non-material” price.

The UK cigarette manufacturer also announced that cigarette shipments have increased by almost half in the current fiscal year's first nine months after takeovers added brands from Altadis and Commonwealth Brands. Shipments climbed 45 per cent to 207 billion cigarettes through June. Excluding acquisitions, volumes increased 3 per cent.

Following its February takeover of Altadis, Imperial announced plans to cut 2,440 jobs in Europe and aims to close six factories in a re-organisation plan that will cost EUR 600 million. (pi)

[heppycat]

Where can I get a can of Ettan so full the lid doesn't even fit on?