Markets = Sweden, Norway, US, SA..

[Leo]

Clip from Swedish Match IR report

"Sweden is the world’s largest snuff market when it comes to per capita consumption. In Sweden, a substantially larger proportion of the male population uses snuff compared to cigarettes. The number of women using snuff is steadily increasing. The Norwegian market, which is substantially smaller than the Swedish market, is at present showing strong growth. The US is the world’s largest snuff market measured in number of cans and is approximately five times larger than the Swedish market. In Sweden and Norway, Swedish Match has the leading position. In the US, the Company is well positioned as number three on the market. Some of the best known brands include General, Ettan, and Grov in Sweden, Timberwolf in the US and Taxi in South Africa."

Heh... I bet they sell snuss in Germany, Finland, Danmark, and Russia too..

[Fatboytoo]

Read this :

Sales in 2004 amounted to 3,081 MSEK (2,995), an increase of 3 percent. Sales in local currency increased by 6 percent.

Volumes in northern Europe increased by 1 percent, measured as the number of cans sold, and by 3 percent in the US. In the Swedish market, volume growth during 2004 was weaker than previous years due to a slowdown in total market growth and increased competition.

Operating income declined to 1,373 MSEK (1,386). In local currencies, operating income increased by 1 percent. The operating margin was 44.6 percent (46.3).
Chart over net sales and operating income, share of group: Of the total net sales for 2004, Snuff generated 24% and of the total operating income 59%.
Snuff has been consumed for centuries in the Nordic region, North America, Africa and Asia. After a period of decline, the popularity of snuff - or snus - has grown strongly over the past 30 years at the expense of cigarette smoking. Snus is used today by approximately one million consumers in Sweden, where 800,000 men and 200,000 women can choose between many different varieties of snus, either in traditional loose-weight or portioned pouches. The market in Norway is growing rapidly as more smokers are making the switch to snus. In the US, the worlds largest snuff market, a stronger increase in demand was noted during 2004 in parallel with the introduction of new low-price products and new flavors.

One of the main reasons for the growth in snuff sales over the past decade has been growing health awareness, as well as stricter restrictions against smoking in a growing number of countries. Sweden has taken the lead in pioneering this trend. "The Swedish Experience" is an international concept in medical and public health circles that is attracting growing interest. The concept is based on the correlation between high snus consumption, low cigarette consumption and a lower incidence of tobacco-related illness than most comparable countries. Swedish snus has proved to be an effective alternative, with lower health risks, for people who want to quit smoking.
Northern Europe
Snuff, General

Sweden and Norway account for more than two-thirds of total snuff sales by Swedish Match. In 2004, the Group sold 208 million cans in these two countries, an increase of 1 percent compared with 2003.
The Swedish market has grown steadily since the early 1970s, and volume growth in 2004 amounted to nearly 3 percent. At year-end, Swedish Match had a volume share of the market estimated at 96 percent. Business growth is attributable to new products, with a continued increase in market share for portioned snus, both in terms of volume and unit sales. About 57 percent of all snus sold in Sweden is now in portioned pouches available in different sizes and flavors that attract both men and women in all social groups. One in five snus users is a woman, which represents a doubling of the number of female snus consumers over the past five years, according to the market research company Temo. The majority of new snus users are former smokers, and surveys show that snus users have higher average incomes and levels of education than smokers.

In addition to Swedish Match, there are a number of competing companies such as Gallaher and Fiedler & Lundgren. Their volumes consist mainly of portioned snuff and, according to estimates by Nielsen, their combined market share has increased by 3.3 percentage points over the past three years.

Snus is sold in cans and rolls, or logs, containing 10 cans. The two most important sales channels are supermarkets and convenience stores, but Swedish Match coolers for snus products are also installed in cafés, bars, tobacco stores, gas stations and smaller convenience stores. The coolers guarantee that the snus maintains the highest quality and taste, which is an important competitive tool for the Group.

In line with this endeavor, Swedish Match has developed a proprietary product and quality standard, GOTHIATEK®. Every snus can with the GOTHIATEK® label is produced in accordance with unique guidelines concerning tobacco selections and handling, cultivation control that includes the use of pesticides, production processes in accordance with standards for food and foodstuffs, storage and cooling controls and strict enforcement of the maximum allowable content of undesirable substances. The Norwegian market grew by more than 20 percent in 2004, in parallel with growing consumer appreciation for snus as an alternative to cigarettes. Demand also increased after the ban on smoking in restaurants that took effect on June 1, 2004. With a population that amounts to slightly more than half of Swedens population, Norwegians consume an estimated 25 million cans of snus annually, about one-eighth of consumption in Sweden.

The best-selling brands are General, Ettan, Grovsnus and Catch, each of which has its own unique characteristics for taste, brand image and packaging. During 2004, Swedish Match launched new varieties of its Catch, Grov and General brands, including a new, larger portioned format.
North America
Snuff: Timber Wolf

The US is the world´s largest market for snuff, with more than 900 million cans sold during 2004. After many years of volume growth in the range of 2-3 percent annually, growth increased to more than 5 percent in 2003 and 2004, according to the market survey company AC Nielsen.
Until the mid-1990s, the American snuff market was dominated by a smaller number of brands with limited taste and price variations. When Swedish Match introduced its TimberWolf brand in 1994, the consumer was offered a product generally perceived to combine high quality with a much lower price than existing products. TimberWolf has since grown into a major brand, with a market share of more than 7.5 percent. In 2002, a new lower price segment was created when the snuff production company Conwood launched its Grizzly brand. With its limited offering and low prices, the new segment doubled in size during 2004, increasing its volume market share to 12 percent.
Snuff: Longhorn

Swedish Match has products in both the premium and lowprice segments with brands such as Renegades, TimberWolf and Longhorn, which account for a combined 8.9 percent of total market volume. Major competitors include US Tobacco (UST), with an estimated volume market share of 69 percent, according to AC Nielsen, as well as Conwood and Swisher. The Group´s successful test marketing of the Longhorn brand was expanded in 2004 to provide national sales coverage, reaching a volume market share of 1.8 percent at year-end, according to AC Nielsen. Available in four varieties, Longhorn is positioned in the lowest price segment and offers high quality at a very competitive price. Timber Wolf noted a lower volume market share in 2004. During the autumn, actions were taken to increase Timber Wolf´s product portfolio and, in turn, provide more value for the consumer. A new peach-flavored variety of Timber Wolf was introduced, and the product group was repositioned with marketadjusted price reductions. Snuff is sold mainly in tobacconist shops, convenience stores, special discount stores specializing in tobacco products and supermarkets.

In March 2004, an agreement was reached between Swedish Match and UST for settlement of a legal dispute over marketing of UST´s snuff products. Under terms of the settlement, UST agreed to pay 200 MUSD to Swedish Match and transfer its cigar operations to a Swedish Match subsidiary.
South Africa
In South Africa, snuff is readily available in the form of nasal snuff. With the acquisition of Leonard Dingler in 1999, Swedish Match became the second largest player in the South African market. The Groups Taxi brand is the countrys best-selling snuff brand and, like most Swedish Match products sold in South Africa, it is produced locally in the country.

Snus is sold mainly in convenience stores, discount stores, small shops and kiosks and distributed to local wholesalers through a proprietary local sales network.
Europe
Sales of moist snuff for oral use were forbidden within the European Union in 1992. Among the reasons for the decision was the claim that snuff was highly carcinogenic. However, Sweden succeeded in obtaining an exemption from the sales ban for the Swedish market at the time of its accession in 1995. Since then, a number of epidemiological studies in Sweden have shown that there are no scientific grounds for suspecting that snus can cause cancer. Accordingly, EU authorities decided in 2001 to abolish the requirement for cancer warnings on snus packaging. In Swedish Match´s view, the consequence of this decision should have been that the ban itself was also lifted. The legality of the ban was challenged in two cases heard by the European Court of Justice during 2004. In December, the Court ruled that the ban is not illegal.

Sales of dry nasal snuff are permitted in Europe. Swedish Match sells the brands Singletons, Kensington and Rumneys, mainly in and around the alpine regions of Germany, Switzerland, Austria, Italy and France.
Other markets
In addition to distribution and sales in established markets where Swedish Match has a strong presence, the Group continuously conducts market tests with various snus products in other countries around the world.

Two of the most promising test sales campaigns for Swedish snus products are focused in the Russian and American markets. In Russia, Swedish Match has conducted test sales since the autumn of 2002, first in Moscow and later in St. Petersburg. The products - General, Ettan and Click brands - have been sold mainly in gas stations, supermarkets and tobacco stores. The tests are continuing to expand in parallel with rising volume sales. In the US, test sales are also continuing for Swedish snus produced in accordance with the Swedish Match GOTHIATEK® standard, which differs in certain respects from American snuff that is usually placed inside the bottom lip, while Swedish snuff is placed under the upper lip. Well-known Swedish brands such as General and new test brands are being sold in markets around Chicago, Minneapolis and New York, to name just a few. The test launch in India was finished during 2004.
Outlook
Swedish Match is well positioned to capitalize on the market potential of snus products in Sweden, North America and other markets. The Group will strive to achieve profitable growth through existing and new product development and various marketing activities.


http://www.swedishmatch.se/Eng/AboutSnuff.asp

[fatehbajwa]

Is Timberwolf and Taxi snuss?

Are brands like Timberwolf and Taxi as mentioned by u also counted as snuss? I am a beginner and thought that they were chewing tobacco and different from snuss?Also please let me know how long do ppl usually keep one pouch in the mouth?Thx

[littledog]

Timberwolf is a moist snuff.

littledog