Philip Morris to buy Swedish Match possibility

[PrisMaster]

Here is something i came across today.

Nov 15, 2007�Citigroup believes there is a 50 percent change that Philip Morris USA will buy Swedish Match in the next 18 months. Acquiring Swedish Match would significantly enhance PM USA�s �adjacency� strategy, according to the investment bank.

Facing declines in its core cigarette business, PM USA has been expanding into other tobacco products with more attractive fundamentals. Following the launch of snus products in selected tests markets, PM USA in December acquired John Middleton cigars.

Citigroup says the combination of PM USA, John Middleton and Swedish Match would be the No. 1 in U.S. cigarettes, premium cigars, mass-market cigars and chewing tobacco. It would be a rapidly growing No. 3 in smokeless.

Acquiring Swedish Match would also make PM USA the world�s leading supplier of snus, which has been gaining ground recently.

Now quite honestly this scares the hell out of me. I do not want to see Philip Morris destroy Swedish Match. I like Snus the way it is and I got a bad feeling that PM will mess it up.

I know this story is a few months old and not sure if it has been posted here already so sorry if its a double post.

Basically just wanted to know everyone else's opinion on this?
[/code]

[Lakemonster]

The thing that bothers me about PM buying them out is that the products and business practices about production will go in the dark.

Swedish Match is very open about what is in their product and exactly how much....they are also very open about how their products are faring in the marketplace.... something else that will become squirreled away in the file vault at PM.

I would imagine that if PM bought them out... you could kiss the Gothiatek system goodbye.

I just dont think PM has the commitment to quality that Swedish Match does.

[mwood72]

I think it would be down to whether they continued production in Sweden as if they do and you get your Snus from there they will still have to meet the Swedish government's food laws as to undesirable contents. Would still be a great shame to loose the genuine Swedish stuff going back years though.

[Kindrd]

I said this the last time this came up but they are not going to change Swedish Match. Just like Swedish Match did not make the American brands of snuff any safer when they bought them nor do they list the ingredients. Altria, IMO, would not make any changes, they are after the brands and market share. If snus ever catches on in the US it will be the dominent market but the interest in snus is because it can be marketed as safer and usable in public. I think this probably means that the candy American snus now sold is not taking off.

[graywolf71]

I sit here holding a can of Triumph, a new American snus created buy Swedish Match. It was imported by Lorillard tobacco co. and according to the can it's still made in Sweden the way it always has.
I can honestly say it's a darn sight better than camel.

Graywolf71

[Zero]

If this happens, we can all switch to Gotlandssnus, I guess. Screw Philip Morris.

[Kindrd]

I sit here holding a can of Triumph, a new American snus created buy Swedish Match. It was imported by Lorillard tobacco co. and according to the can it's still made in Sweden the way it always has.
I can honestly say it's a darn sight better than camel.

Graywolf71

Never heard of that one.

[graywolf71]

kindrd,
I think it might just be test marketed here in central ohio but i'm not for sure. I know i can get it here 50 miles north of Columbus, ohio.

[victoryredchevy]

The only thing American I want to be able to have anything to do with snus is American snusers and American tobacco shops that offer it. If Swedish Match sales their empire to PM, they're crazy in my opinion. Good thing I also like Gustavus....Its a Galleher House product, not SM. I could be wrong and PM may help the snus expansion in the US by giving SM more lead way here in the States, but keep the production responsibilities with Match. Maybe? I still don't like the idea. Scares the hell outta me too.

[graywolf71]

Triumph is NOT an American snus. It is MADE by Swedish Match in Sweden but it is imported here to the U.S. by Lorillard Tobacco Co.
Nothing has changed about it's style or make simply because it's sold here. The Lorillard Co. is simply trying to compete with the tobacco companies that are TRYING to produce their own versions on snus. Lorillard simply went one step better in bringing a true Swedish make here, and Swedish Match relabeled one of their brands, which one i can't find out, to sell here.
I don't for see any Swedish companies falling pray to the big tobacco companies here in America, But with the new law they're trying to get pushed through here in Ohio, The banning of outside smoking, Big tobacco has to do something to stay in the market and i think importing is the best thing.

[OnoSendai]

If this happens, we can all switch to Gotlandssnus, I guess. Screw Philip Morris.

Agreed.

[natiev]

I've seen Triumph in Cincinnati, OH but I'll wait till I'm low on my selection of snus to pick one up and try it.

[Xobeloot]

I wonder what current Swedish Match snus is being labeled as Triumph for this market. Or did they have a new flavor created just for the US market? Are they regular portions, White portions, Mini portions?

It looks like this venture has taken some time to actually hit the streets as a finished product based on the date from this article posted on the Lorillard website:

http://www.lorillard.com/index.php?id=96


"Lorillard Tobacco Company Enters Into Joint Venture To Develop A Select Line Of Smokeless Tobacco Products

Greensboro, N.C. – October 25, 2006 -- Lorillard Tobacco Company today announced that it has entered into an agreement with Swedish Match North America to jointly develop and market a select line of smokeless tobacco products in the United States. The parties anticipate that an initial product offering may be launched on some basis of geographic distribution in the not too distant future.

Swedish Match North America Inc. is the third leading manufacturer of moist snuff in the United States, with such well-known brands as TimberWolf and Longhorn moist snuff, and is a leading manufacturer of Other Tobacco Products, such as Red Man chewing tobacco, Half & Half pipe tobacco, and White Owl and Garcia Y Vega cigars. Swedish Match North America Inc. is a US subsidiary corporation of Swedish Match AB, a Swedish corporation. Swedish Match shares are listed on Stockholmsborsen (SWMA).

Lorillard Tobacco Company is the third largest manufacturer of cigarettes in the United States, including the Newport brand, the best selling menthol cigarette in the country, and the Maverick, Old Gold, Kent and True brands. Lorillard is a wholly owned subsidiary of Loews Corporation (NYSE: LTR;CG). "

With Swedish Match making this snus for Lorillard, It makes me question why they would sell to PM USA (A major competitor). It seems to me that the US Big Tobacco companies are flailing to keep up in a market that is failing more and more each year. If Swedish Match continues to play their cards right, they could become the main player in the snus market in the US (as they are already #3 in the moist snuff market here in the first place). Make the snus under different names while profiting from these joint ventures like this one with Lorillard.
It just seems that so far, snus just is not taking off here the way that PM USA and RJ Reynolds had hoped when initially test marketing their products. Maybe this failing test will change with Swedish Match making this snus for Lorillard?

~Xobe

[natiev]

Triumph has a Mint and Original flavor and they're regular pouches. A buddy of mine picked up a tin of Mint, but I have not tried one yet.

[Premium Parrots]

Howdy all. I was one of the people that tested the Triumph snus a few months ago and had to fill out a survey of my opinions. It was unlabled and unmarketed at the time. I recently found out that it is now available in Ohio. Its actually considered to be a spearment flavor with a touch of sweetness. Triumph is a brand new product developed and marketed for the American tastes. I have tried about 30 different Swedish snuses and all of the Maroboro and Camel snus. I like the Camel Frost the most of the American snus and the Triumph is simply the best of ALL the snuses I have tried. As soon as I can get a hold of a few cans of the triumph I am done taste testing. I will only buy The Camel Frost and the Camel Original and the Triumph from now on. I live in Illinois so is there anyone out there that would be so kind as to send me 5 cans of Triumph snus if they live in Ohio. The CircleK stores are supposed to have them. Please contact me and I will be glad to reinburse you for your time. I'm jones'in here and need a decent nicotine fix from a decent snus. Also the Camel and Maroboro snus is quite wimpy compared to any of the swedish snus. Triumph should be a great seller in the USA. Help me please...........

If someone can help me out I will gladly give you a bunch of samples of all the swedish snus I have purchased. That should save you some money and give you an idea how awful most of the swedish snus actually is. We Americans do have different tastes.........thats for sure. thanks