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Image 1: Swedish Match General snus Swedish Match is a Swedish tobacco company that manufactures and sells snus (image 1), moist snuff, cigars, chewing tobacco and matches. Philip Morris International (PMI) bought the company in 2022. The company used to sell cigarettes, but decided in 1999 to divest its cigarette business to Austria Tabak. Lennart Sundén, […]

The post Swedish Match appeared first on TobaccoTactics.

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Image 1: Swedish Match General snus

Swedish Match is a Swedish tobacco company that manufactures and sells snus (image 1), moist snuff, cigars, chewing tobacco and matches. Philip Morris International (PMI) bought the company in 2022.

The company used to sell cigarettes, but decided in 1999 to divest its cigarette business to Austria Tabak.1 Lennart Sundén, then President and CEO of Swedish Match, said at the time:

“Cigarette consumption, the industry’s most dominant source of revenue, is declining or has reached a plateau in most Western countries. For Swedish Match therefore, the divestment of our cigarette operations was a natural step. We were a strong player in local markets, but a very small player compared with our main competitors.”2

In September 2021, Swedish Match announced that it would be selling its US cigar business and focus on its oral products.34 Plans to sell were put on hold in March 2022.5

In May 2022 Philip Morris International made an offer of US$16 billion to buy the whole company.67 On 11 May the board of directors of Swedish Match recommended that its shareholders accept PMI’s offer.8

As of 10 November 2022, PMI had acquired 86% of the company, and Swedish Match Directors recommended that the remaining shareholders offer to sell their shares to PMI, via its Netherlands subsidiary Philip Morris Holland Holdings (PMHH).910 On 28 November 2022 PMI announced that it held over 90% of the company, meaning it could buy the remaining shares under compulsory purchase rules and take Swedish Match off the stock market.11

Market Share

Swedish Match’s markets for snus, its main product, are Sweden, Norway and the United States (US), although in 2010 the company aspired to become the “global smokefree leader”.12

In 2010 the company held around 80% of the market in Western Europe (mainly in Norway and Sweden) but it has gradually lost market share following the entry of transnational tobacco companies on the Scandinavian snus market.13 By 2019 Swedish Match held less than 60%. For details see Cigarette Companies Investing in Snus.

In the US, Swedish Match remains the third biggest manufacturer of snus and moist snuff with around 10% market share in 2019. Its main competitors are market leader Altria, and Reynolds American (since July 2017 wholly owned by British American Tobacco).1415

Key Brands

In 2021, the company’s key snus brands were listed on “Smokefree” web page:16

  • Sweden – General, Göteborgs Rapé, Kaliber, , Kronan, and Ettan .
  • Norway – General, General G.3, The Lab, Nick & Johnny
  • US – General

Similarly to cigarettes, snus brands are available in different price segments, in particular premium and value price categories.

Swedish Match also sells snus-style nicotine pouches which do not contain tobacco leaf and so are not regulated as tobacco products in most countries. Its leading brand in the global market is Zyn. The large transnational tobacco companies have more recently moved into this rapidly growing market. For details see Nicotine Pouches.

Employees/Board Members: Past and Present

In June 2008 Lars Dahlgren became the Chief Executive Officer (CEO) of Swedish Match. Thomas Hayes became President of the US division in 2020, having previously held other leadership roles at the company.

A full list of the current company’s Board of Directors can be accessed here and the current management team here.1718

Other people that are or have been associated with the tobacco company:
Markus Ersmark Johan Gabrielsson Tomas Hammargren Cecilia Kindstrand Lars Olof Lofman Lars-Erik Rutqvist

Partnerships and Affiliations

Lorillard

In 2006 Swedish Match entered into a joint venture with Lorillard (the third largest cigarette manufacturer in the US at the time) to develop Swedish-style snus for the US market,19 but this joint venture was terminated at the end of 2009 following unsatisfactory results.20

Philip Morris International

In February 2009 Swedish Match entered into a joint venture with Philip Morris International (PMI) to “commercialize Swedish snus and other tobacco products worldwide, outside of Scandinavia and the United States”.21 This joint venture was dissolved in 2015, allegedly because of lack of demand for snus in the test markets.22

American Lobbyists

In January 2018, the Louisville Courier Journal reported that records of the Kentucky Legislative Ethics Commission showed that some of the highest paid people working at the Kentucky Assembly, were lobbyists paid to influence the State government by large corporations, including tobacco companies.23 The records named two lobbyists that listed Swedish Match North America as a client:24

  • Katherine W. Hall
  • Patrick M. Jennings

European Smokeless Tobacco Council

In 1989, Swedish Match (then known as Svenska Tobaks), co-founded the lobby group European Smokeless Tobacco Council (ESTOC).25

Since 2017, ESTOC no longer appears to be active.

Eliminating Child Labour in Tobacco Growing Foundation

Swedish Match is a member of the Eliminating Child Labour in Tobacco Growing Foundation (ECLT).26 In addition to Swedish Match, ECLT Board members include the International Tobacco Growers Association, British American Tobacco (BAT), Imperial Tobacco, Japan Tobacco International (JTI), and PMI, amongst others. The ECLT has a partnership with the International Labour Organisation (ILO), a United Nations (UN) agency, focussed on issues related to labour such as international labour standards, social protection and unemployment.27

NordCham Philippines

The company is member of NordCham Philippines, reportedly the largest Nordic Chamber of Commerce in the Asian Region.28 Swedish Match has owned a factory that produces lighters in Manilla since 2007.29

Controversial Marketing Strategies

Targeting Youth in Russia

In June 2012, marketing firm Proximity Russia posted promotional materials online that they had produced for SMPM International, the joint venture of Swedish Match and PMI. The company had been asked to develop promotional materials to aid the launch of Parliament snus in Russia, with the promotional materials including so-called “youth engagement materials”.30 For details and images of this controversial campaign, go to TPD: Marketing to Youth.

Image 2: Swedish Match employees used online snus user forums to directly communicate with customers (screenshot www.snuscentral.org, accessed 24 February 2011)

Image 3: Swedish Match Vice President Scientific Affairs was a columnist for an online snus user community (screenshot www.snuscentral.org, accessed 3 April 2012)

Promoting Tobacco Use via Social Media and Online Forums

A 2010 peer-reviewed study demonstrated that, in light of increasing tobacco advertising restrictions, Swedish Match had turned to YouTube and other social media to market its products, with none of the company’s YouTube videos including adequate safeguards to prevent under-age viewing.31 A 2011 social network analysis further demonstrated that Swedish Match employees had been active on Facebook, with Swedish Match employee Markus Ersmark at the centre of an elaborate network of snus manufacturers, snus retailers, and pro-snus bloggers generating pro-snus content.32

Swedish Match also used to directly contribute to online consumer forums to promote the company, its products and pro-snus messages (see images 2 and 3). The company used to have a ‘Ask the Manufacturer’ column on the American snus consumer forum SnusCENTRAL.org. In 2009 and 2010, Ersmark and a colleague directly responded to consumer questions about Swedish Match products and snus use in general. Over a period of eight months, the duo responded to 31 consumer questions, started one thread themselves, and in total posted 56 messages.33

Relationship Building with Social Media Influencers: Hospitality for Pro-Snus Bloggers

In addition to being directly active on social media, Swedish Match have engaged in ‘influencer marketing’ in which the marketing occurs indirectly through key influencers online.34 The company actively nurtured relationships with key pro-snus bloggers (of which some labelled themselves ‘snus ambassadors’) through providing hospitality and free sample products.35 For example, in 2012 Swedish Match hosted a so-called “summit” for American snus bloggers in Washington DC.36 A year earlier, the company hosted a delegation of American and British snus bloggers in Stockholm, visiting Swedish Match headquarters and factories, as well as a Tobacco Museum.37 In May 2010 two American bloggers visited Sweden, courtesy of Swedish Match, as was the case in 2009.38

Some bloggers received regular free snus samples from Swedish Match and then reviewed the products online, including British blogger Tim Haigh. Haigh and Swedish Match later became involved in a controversy which saw researchers from the University of Bath receive verbal abuse over a peer-reviewed article which highlighted that snus was being sold illegally across the EU via the Internet, contravening three EU Directives and Swedish national legislation.39 For more information see our page on FOI: University of Bath.

Failed Legal Bid to Stop Plain Packaging in Norway

In December 2016, the Norwegian Parliament approved plain packaging legislation on cigarettes and snus. Swedish Match sought an injunction from the Oslo County Court to delay the legislation, arguing that the Norwegian government was in breach of the free European Economic Area (EEA) trade rules and that the intervention (plain packaging of snus boxes) was not in proportion to the health risks associated with snus.40

In November 2017 the court rejected the Swedish Match claims, ruling that plain packaging was “an evidence-based and internationally recommended measure” adding that it was “a legitimate measure in line with the EEA Agreement”.41 The court also ruled that snus is harmful to health, and that plain packaging will contribute to the protection of public health, particularly of children and young people.

Swedish Match was ordered to pay the legal costs of the Norwegian Government.

  • Litigation is a well-known tactic of tobacco companies to stop or delay tobacco legislation. For more information go to Challenging Legislation.

Tactics to Subvert the Europe-Wide Snus Sales Ban

In 1992, sales of snus were banned in Europe, following an aggressive attempt by the US Smokeless Tobacco Company to introduce smokeless tobacco to several European markets in the mid-1980s. From 2001 the EU snus sales ban has been included in the European Union (EU) Tobacco Products Directive (TPD), which was reviewed in 2014. The snus ban severely limits the growth potential of Swedish Match in Europe, and the company has been attempting to lift the snus ban in the last decade using multiple tactics. The two main platforms of the company’s opposition to the snus ban are free trade and harm reduction.

In a submission to the 2010 public consultation that was part of the TPD review, Swedish match claimed that banning snus “denies 106 million smokers in the EU access to a traditional and non-combustible tobacco alternative to their cigarette”. 42 The company further ‘reminded’ the Commission of the need for EU legislation to respect the principles of EU Better Regulation and that there should be a “non-competitive regulation or tobacco and nicotine products” which would not create internal market distortions.

Directly and Indirectly Lobbied Commission Officials

Swedish Match lobbied DG SANCO (Health Directorate-General), and to a larger extent, non-health elements of the Commission, in particular the Secretariat General (responsible for Better Regulation and impact assessments), the Cabinet of the Regional Policy Commissioner Hahn, and DG ENTR (Enterprise and Industry Directorate-General).

Some of the meetings were facilitated by PR firm Kreab Gavin Anderson. Twice the company was accompanied by Revolving Door case Karin Riis-Jørgensen, a Danish former MEP and senior advisor of Kreab Gavin Anderson.43

Murky Lobbying Practices Exposed: ‘Dalligate’ and Untrue Version of Events

On 16 October 2012, EU Health Commissioner John Dalli was forced to resign following an investigation by EU’s anti-fraud office, OLAF, into bribery claims made by Swedish Match. For more detail on this controversy, labelled by some as ‘Dalligate’ or Barrosogate’, visit the pages TPD: Dalligate and TPD: Dalligate Timeline.

The scandal, besides raising questions about the transparency around EU policy making, also exposed the murky lobbying practices of Swedish Match in its attempts to have the snus ban lifted. Evidence showed that the company had inappropriately sought access to Dalli in his private sphere in Malta via Gayle Kimberley, a Maltese lobbyist not registered at the EU Transparency Register. Swedish Match’s Director of EU Affairs, Johan Gabrielsson, one of the people at the centre of the scandal, confirmed in a statement to OLAF on 2 June 201244 that Swedish Match had paid the lobbyist €5,000 to gain access to Dalli and feed him information that would help shape the evidence base on snus in favour of the company’s interests.

The company intentionally hid its relationship with Kimberley who, following a meeting with Dalli in January 2012, reported to Gabrielsson that “the meeting was CONFIDENTIAL and I was in no way representing SM Match just giving the objective position of snus producers and users!”.45

In the aftermath of the scandal, Swedish Match publicly lied at several occasions suggesting that Kimberley had met Dalli TWICE, the first time in January 2012 and the second time in February 2012 when the alleged bribery attempt had supposedly been made. In an interview following Dalli’s shock resignation, Swedish Match Vice President of EU Affairs, Patrik Hildingsson, recalled:

“There was a first meeting with Dalli in early January and a second one in February to hand over WHO science on snus. After this meeting she lobbyist sounded very upset, saying the meeting was derailed and went in a very odd direction. She told us that during the meeting Dalli had explained that all arguments behind the snus ban were actually in favour of Swedish Match. Then he said that, however, as a health commissioner, his political career would be over if he lifted the ban on snus. He said, according to the feedback I got, that it would be a political suicide to lift the ban. Then he left the meeting and we were alone with a man, an entrepreneur. He was supposed to be a friend of Dalli and did not have any relationship with Swedish Match. He continued the meeting and asked why Dalli would take a suicidal political decision without gaining anything. The solution was simple: we had to pay.”

However, when Hildingsson shared this version of events with the media, Swedish Match had already been informed by OLAF that Kimberley had lied about her presence on this supposed second meeting.46 The second meeting between the lobbyist and Dalli had not taken place. Gabrielsson later accused OLAF of advising him to stick to an untrue story of events: “I never lied. I just said what I had been told by OLAF. That’s not a lie”.

OLAF has denied allegations that it asked Swedish Match to skew the evidence and the Commission has indicated that it will not pursue this any further.

Image 4: Online monthly diary page of Swedish MEP Christofer Fjellner, showing a listed meeting on 10 September 2010 titled (translated in English) “Speak with snus manufacturer Swedish Match” (screenshot taken 30 March 2012)

Lobbying Members of European Parliament

In January 2013, Swedish Match was a keynote speaker at a Parliamentary event organised by the Brussels Network. MEPs Christofer Fjellner, Syed Kamall and Alexander Graf Lambdorff organised a meeting with tobacco as the agenda item, with Swedish Match given their version of their involvement in ‘Dalligate’.47 On this occasion, Swedish Match also stuck to the untrue version of events regarding the number of times their lobbyist met Dalli.

Challenging the Snus Ban in Court

In 2016 Swedish Match requested a judicial review of the snus ban in the UK High Court, which was approved on 26 January 2017. The case was referred to the European Court of Justice. In its legal challenge, the tobacco company has been supported by the New Nicotine Alliance UK (NNA), who requested the Court to make its own submission to provide a “customer perspective on the ban and on the benefits that will follow if the ban is lifted”.48 Gerry Stimson, a vocal advocate of tobacco harm reduction, is a Board member of the NNA.

Lobbied for legalisation of snus in the UK

Swedish Match have worked with PR company Abzed to lobby for the legalisation of snus in the UK.495051 Abzed stated that it had organised the “placement of around 20 parliamentary questions on snus” and a letter to Matt Hancock, Minister for Health in 2018, co-signed by Adam Afriyie MP.5150 This campaign continued after the UK left the EU in 2020. In December 2021, Abzed posted messages on snus forums, offering to help members of the public to write to their MPs.5150 Abzed is not listed on UK or EU lobbying registers.

For more information on Afriyie see All-Party Parliamentary Group (APPG) for Vaping (E-Cigarettes).

Close relationship with Swedish Politicians

In the past, Swedish Match enjoyed a good relationship with Swedish politicians, including Swedish Member of European Parliament (MEP) Christofer Fjellner, who promoted a pro-snus agenda in the European Parliament and was a vocal advocate for removing the EU ban on snus sales.52 Shortly before Fjellner launched a petition in 2010 to mobilise opposition to the EU snus ban, Swedish Match had two meetings with the MEP (see image 4).53
Swedish Match also claims a “close relationship between industry and government” in Sweden.54 Indeed, the Swedish Government supported Swedish Match’s call for a removal of the EU snus ban, regarding it a violation of free trade principles rather than a public health issue555657, an argument first voiced by Swedish Match.58

Image 5: Screengrab Swedish Match Annual Report 2009

Corporate Social Responsibility (CSR): Boosting Corporate Reputation

A 2011 news article in Tobacco Control pointed to Swedish Match as an example of tobacco industry philanthropy, where positive publicity was generated with little upfront community investment.59 The tobacco company’s 2009 annual report revealed that “Australia had suffered the country’s worst wildfire disaster in a quarter of a century” and in response the tobacco company had contributed to “Emergency Relief’ by giving a “cash donation” to the Australian Salvation Army (image 5). The company stopped short of disclosing the amount of money donated.

When the authors contacted the Australian Salvation Army and asked about the size of the donation, a spokesperson for the Charity confirmed that Swedish Match had donated AU$500 (approximately £256). The donation had presented only one ten thousandth of a per cent of the company’s operating profit.

Funding Science and Scientists

Image 6: Screengrab of funding disclosure of the University Of Louisville’s Endowed Chair in Tobacco Harm Reduction Research, undated, March 2015

For several years, Swedish Match North America was a financial donor to the University of Louisville’s Kentucky Research Challenge Trust Fund (also known as ‘Bucks for Brains’).60

From 2005 to 2008, Swedish Match spent half a million US dollars to fund the University’s Endowed Chair in Tobacco Harm Reduction held by Brad Rodu (Image 6).61 Rodu has been a vocal supporter of lifting the EU ban on snus.62

The tobacco industry has historically used science to oppose tobacco regulation and bias public opinion in favour of the tobacco companies.

Marketing Snus as “Modified Risk Tobacco Product” in the US

In April 2015, the advisory panel of the US Food and Drug Administration (FDA) rejected Swedish Match’s application to alter the health warnings of 10 variants of its General snus and claim snus is less harmful than cigarettes.63

The panel concluded that the company had not provided enough evidence to support that The Swedish Experience could be replicated in the US, and had not sufficiently tested the proposed new health warning to ensure consumers would understand it and interpret it.

In December 2016, the FDA upheld the panel’s advice although it encouraged the company to amend their application and submit more evidence to support their claims.64

In 2019, the FDA stated that eight Swedish Match snus products could be marketed in the US under the “Modified Risk Tobacco Products” (MRTP) pathway, for an initial period of 5 years.65 The FDA emphasised that this did not mean that these products were “FDA approved” or indeed “safe”. It also specified restrictions on advertising to prevent them being targeted to youth.65Read more about the tobacco industry and Harm Reduction.

Relevant Link

Swedish Match website

TobaccoTactics Resources

TCRG Research

References

  1. ↑Swedish Match, Swedish Match to sell the cigarette business to Austria Tabak for MSEK 4,800, Press Release 31 May 1999, accessed January 2018
  2. ↑Swedish Match, Swedish Match 1999 Annual Report, accessed January 2018
  3. ↑A. Ringstrom, Swedish Match plans to spin off and list cigar business, Reuters, 15 September 2021, accessed September 2021
  4. ↑D. Afanasieva, Cigar exit is next strike in Swedish Match revamp, 20 July 2021, accessed September 2021
  5. ↑A. Ringstrom and M. Mannes, Swedish Match strikes record high on Philip Morris $16 bln takeover move, Reuters, 10 May 2022, accessed May 2022
  6. ↑Philip Morris International, PMI Offer For Swedish Match AB, PMI Investor Relations web page, 11 May 2022, accessed May 2022
  7. ↑A. Massoudi. P. Nilsson and J. Fontanella-Khan, Philip Morris International nears $16bn deal for Swedish Match, The Financial Times, 9 May 2022, accessed May 2022
  8. ↑Swedish Match, Statement by the Board of Directors of Swedish Match AB in relation to the public cash offer by Philip Morris Holland Holdings B.V.,press release, 11 May 2022
  9. ↑Philip Morris International, PMHH acquires shares in Swedish Match outside the offer and becomes the owner of nearly 86% of the shares, BusinessWire, 10 November 2022, accessed November 2022
  10. ↑Swedish Match, Statement by the Board of Directors of Swedish Match AB in relation to the increased public cash offer by Philip Morris Holland Holdings B.V., website, 27 October 2022, accessed November 2022
  11. ↑M. Mannes, Philip Morris to de-list Swedish Match after raising stake to 93%, Reuters, 28 November 2022, accessed November 2022
  12. ↑Swedish Match, Company Presentation: Who we are, What we do. 21 July 2010, accessed November 2017
  13. ↑S. Peeters, A. Gilmore, Transnational Tobacco Company Interests in Smokeless Tobacco in Europe: Analysis of Internal Industry Documents and Contemporary Industry Materials, PLoS Med 10(9): e1001506, 2013
  14. ↑Swedish Match, Market Development, last updated 24 March 2017, accessed January 2018
  15. ↑Euromonitor International, Smokeless Tobacco: Company Share, 2009-2019 (behind paywall)
  16. ↑Swedish Match, Smokefree, website, undated, accessed 23 September 2021
  17. ↑Swedish Match, Board of Directors, website, undated, archived 7 June 2021, accessed September 2021
  18. ↑Swedish Match, Management, website, undated, archived 7 June 2021, accessed September 2021
  19. ↑Swedish Match, January-September 2006 Interim Statement, accessed January 2018
  20. ↑FD (Fair Disclosure) Wire, Conference Call Transcript with Lorillard Executives at the Morgan Stanley Consumer & Retail Conference 16 November 2010
  21. ↑Swedish Match, Swedish Match and Philip Morris International announce global joint venture to commercialize smokefree tobacco products, Press Release 3 February 2009, accessed January 2018
  22. ↑Swedish Match, Swedish Match and Philip Morris International to dissolve smokeless joint venture, Press Release 16 July 2015, accessed January 2018
  23. ↑T. Loftus, These 20 lobbyists were among the highest paid at the state Capitol in 2017, Louisville Courier Journal, 19 January 2018, accessed January 2018
  24. ↑Kentucky Legislative Ethics Commission Kentucky Registered Legislative Agents, 19 January 2018, accessed January 2018
  25. ↑US Smokeless Tobacco, Note from John Walter to Per Erik Lindqvist enclosing legal brief on European Smokeless Tobacco Council, Truth Tobacco Industry Documents, Bates no: USTC4322097-USTC4322109, 16 February 1989, accessed January 2018
  26. ↑The Eliminating Child Labour in Tobacco Growing Foundation, ECLT Foundation Governance, ECLT website, 2017, accessed January 2018
  27. ↑International Labour Organization, Mission and impact of the ILO, 2017, accessed November 2017
  28. ↑NordCham Philippines, Members, NordCham Philippines website, 2016, accessed January 2018
  29. ↑Swedish Match, Cricket gears up in the Philippines, 4 August 2008, accessed January 2018
  30. ↑S. Peeters, K.Evans, Russia: snus targeted at young & wealthy, Tobacco Control, 2012; 21:456-459
  31. ↑A. Seidenberg, V. Rees, G. Connolly, Swedish Match marketing on YouTube, Tobacco Control 2010, 19;512-123
  32. ↑S. Peeters, A. Clements, A. Gilmore, How the Internet undermines EU tobacco control legislation: online snus marketing & promotion. Presentation at the 15th World Conference of Tobacco of Health, Singapore. 21 March 2011
  33. ↑M. Ersmark & J. Blom, Ask Swedish Match, messages posted from 8 August 2009 to 8 April 2010, accessed May 2012
  34. ↑Influencer Marketing, Marketing-Schools.org, 2012, accessed January 2018
  35. ↑L. Waters, Swedish Match XRANGE Snuses Released and Why?, SnusCentral.org, 30 March 2015, accessed April 2015
  36. ↑M. Hellwig, The Swedish Match Snus Summit- My Reflections, SnusCentral.org, 1 October 2012, accessed March 2015
  37. ↑M. Hellwig, The most exclusive snus in the world, 2 June 2011, accessed November 2011
  38. ↑C. Jones, Full report on the trip to Sweden and visit with Swedish Match! 31 May 2010, 31 May 2010, accessed June 2012
  39. ↑S. Peeters, A. Gilmore, How online sales and promotion of snus contravenes current European Union legislation, Tobacco Control, 2013; 22:266-273
  40. ↑Swedish snus company sues Norwegian state over neutral packaging, thelocal.no, 25 September 2017, accessed January 2018
  41. ↑Norwegian Government, Full victory to Norway over snus producer Swedish match, Press release 6 November 2017, accessed January 2018
  42. ↑C. Kindstrand, Swedish Match Industry Submission to the public consultation on the possible revision of the Tobacco Products Directive 2001/37/EC, page 2462 of 3697, 2010, accessed November 2017
  43. ↑European Commission and OLAF European Anti-Fraud Office, Replies to the Questionnaire from the Committee on Budgetary Control of the European Parliament concerning the resignation of the former Commissioner John Dalli, 30 November 2012
  44. ↑European Anti-Fraud Office, Written Record of Interview with Mr Johan Lenmart Gabrielsson, conducted 2 June 2012. In: Transmission of information following a closure of investigation, Fax from Giovanni Kessler to Peter Grech, dated 17 October 2012
  45. ↑Gayle Kimberley, Re: Meeting Commissioner. Email dated 9 January 2012 addressed to Johan Gabrielsson. In: Transmission of information following a closure of investigation, Fax from Giovanni Kessler to Peter Grech, dated 17 October 2012
  46. ↑Transcription of the meeting between Jose Bove MEP, Jean-Marc Desfilhes MEP Assistant, Cecilia Kindstrand-Isaksson Swedish Match, Johan Gabrielsson Swedish Match. 2013.
  47. ↑C. Fjellner, Email to MEPs dated 17 December 2012, Subject: Brussels Network January 9: Inside Dalli-gate
  48. ↑New Nicotine Alliance, NNA goes to the High Court to challenge the ban on snus, 19 January 2017, accessed January 2018
  49. ↑Abzed, Snus oral tobacco, website, undated, archived 10 May 2020, accessed March 2022
  50. ↑abcLegalising snus in the UK, posted by darius@abzed.com, snuson.com, 14 December 2021, accessed March 2022
  51. ↑abcCampaign to legalise Snus in the UK – we need your help!, posted by darius@abzed.com, reddit.com, 14 December 2021, accessed March 2022
  52. ↑Ewa Björling och Christofer Fjellner: Hjälp oss att rädda svensk snuskultur, Espressen.se, 5 November 2010, accessed November 2017
  53. ↑C. Fjellner, Kalender. Fjellner’s website, accessed February 2011
  54. ↑L. Rutqvist, The Swedish Tobacco Harm Reduction Experience. FDA-TPSAC Meeting on Dissolvable Products 18-20 January 2012
  55. ↑Swedish Match, Swedish Match welcomes an important step to normalize trade in the EU, press release 28 November 2008, accessed January 2018
  56. ↑C. Danielsson, Sweden’s response to the public consultation on Directive 2001/37/EC of 5 June 2001 on the approximation of the laws, regulations and administrative provisions of the Member States concerning the manufacture, presentation and sale of tobacco products. 2010
  57. ↑K. Gustafsson, Sweden Urges EU To Lift Ban On Snus Exports, The Wall Street Journal , 30 May 2011
  58. ↑Swedish Match. Arbitrary, Unreasonable and Discriminatory, press release 3 June 2002, accessed January 2018
  59. ↑G. Fooks & S. Peeters, World: disasters are ‘brand aid’ opportunities for tobacco, Tobacco Control 2011, 20:4-7
  60. ↑University of Louisville, Bucks for Brains donors, undated, accessed April 2017
  61. ↑University of Louisville, Endowed Chair in Tobacco Harm Reduction Research, undated, accessed January 2012
  62. ↑B. Rodu, What the EU Snus Ban Means: 290,865 Casualties Per Year, Tobacco Truth blogspot, 27 November 2013, accessed November 2017
  63. ↑T. Clarke, FDA panel votes against label change to Swedish Match snus, Reuters, 10 April 2015, accessed January 2018
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  65. ↑abUS Food and Drug Administration, FDA grants first-ever modified risk orders to eight smokeless tobacco products, press release, 22 October 2019, accessed March 2022

The post Swedish Match appeared first on TobaccoTactics.

]]> Snus: Marketing to Youth https://tobaccotactics.org/article/snus-marketing-to-youth/ Wed, 05 Feb 2020 12:28:41 +0000 Norway: Increase in Young People Using Snus Image 1. Print advertisement for Parliament snus screengrab from http://www.webcitation.org/68l7MRfq3 (archived webpage) A 2015 briefing by Euromonitor International reported that Norway had seen a sharp increase in snus use amongst young people, which has been attributed by the Norwegian government to marketing by the tobacco industry: “According to […]

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Norway: Increase in Young People Using Snus

Image 1. Print advertisement for Parliament snus screengrab from http://www.webcitation.org/68l7MRfq3 (archived webpage)

A 2015 briefing by Euromonitor International reported that Norway had seen a sharp increase in snus use amongst young people, which has been attributed by the Norwegian government to marketing by the tobacco industry:

“According to the Minister Health and Care Services, the growth in snus usage among young people began after the snus industry began developing snus boxes with new designs, new colours and flavourings such as vanilla, menthol and liquorice which ‘appeal to young people’.”66

On 1 July 2017, Norway introduced plain packaging on snus products, with a one -year transition period.67 Swedish Match filed a court case against the Norwegian government, but lost the case in November 2017.68

Russia: Snus Targeted at the Young and Wealthy

In September 2012, the academic journal Tobacco Control published a news story which provided details of a proposed marketing strategy for Parliament snus in Russia.69

In December 2011 SMPM International, the joint venture between Philip Morris International (PMI) and Swedish Match, commenced a trial market of Swedish snus in Russia, following earlier test markets in Taiwan in 2009 and Canada in 2010. Three snus varieties were introduced under PMI’s premium cigarette brand Parliament, which has a strong presence in Russia. A few months earlier, Swedish Match’s CEO Lars Dahlgren had informed investors that the launch would be supported by a number of marketing activities, including brand building and sampling, considering that “marketing restrictions Russia are not as strict as they have been for us in the Taiwanese market and the Canadian market”.70

Image 2. Parliament snus display from http://www.webcitation.org/68l7MRfq3 (archived webpage)

In June 2012, a marketing campaign for PMI’s Parliament branded snus, by advertising firm Proximity Russia, was cited on Behance.net, an online network that showcases professional creative work.71 Proximity Russia’s brief was “to launch in the Russian market a new category of tobacco product targeted at wealthy audience, operating in the context of dark market”. With the brief in mind, Proximity developed print advertisements depicting well-dressed young adult males (Image 1), stylish product display units (Image 2), and a product website (www.snus.ru) which was open to registered users only. Furthermore, the proposed marketing strategy included “youth engagement materials” and the use of attractive and successful looking young adults, referred to as the “snus envoy”, recruited to promote Parliament snus (Image 3).

Similar techniques were used in the mid-1980s by United States Tobacco Company (UST) when it attempted to introduce smokeless tobacco product Skoal Bandits in Europe, by paying college students to promote Skoal Bandits amongst their peers.7273

Taken together, this indicates that, contrary to the industry argument that snus should be legalised in the EU to offer smokers a less harmful tobacco alternative to cigarettes,7475 snus may be promoted in new markets to young adults and non-tobacco users. This is in line with evidence from the United States, which has an established smokeless tobacco market, and where tobacco industry marketing messages have been used to promote dual use of smokeless tobacco and cigarettes, and encourage smokeless tobacco uptake by young non-tobacco users.76777879

Image 3: Parliament snus targeting young people through use of brand ‘ambassadors’ from http://www.webcitation.org/68l7MRfq3 (archived webpage)

TobaccoTactics Resources

TCRG Research

For a comprehensive list of all TCRG publications, including TCRG research that evaluates the impact of public health policy, go to the Bath TCRG’s list of publications.

References

  1. ↑Swedish Match, Swedish Match to sell the cigarette business to Austria Tabak for MSEK 4,800, Press Release 31 May 1999, accessed January 2018
  2. ↑Swedish Match, Swedish Match 1999 Annual Report, accessed January 2018
  3. ↑A. Ringstrom, Swedish Match plans to spin off and list cigar business, Reuters, 15 September 2021, accessed September 2021
  4. ↑D. Afanasieva, Cigar exit is next strike in Swedish Match revamp, 20 July 2021, accessed September 2021
  5. ↑A. Ringstrom and M. Mannes, Swedish Match strikes record high on Philip Morris $16 bln takeover move, Reuters, 10 May 2022, accessed May 2022
  6. ↑Philip Morris International, PMI Offer For Swedish Match AB, PMI Investor Relations web page, 11 May 2022, accessed May 2022
  7. ↑A. Massoudi. P. Nilsson and J. Fontanella-Khan, Philip Morris International nears $16bn deal for Swedish Match, The Financial Times, 9 May 2022, accessed May 2022
  8. ↑Swedish Match, Statement by the Board of Directors of Swedish Match AB in relation to the public cash offer by Philip Morris Holland Holdings B.V.,press release, 11 May 2022
  9. ↑Philip Morris International, PMHH acquires shares in Swedish Match outside the offer and becomes the owner of nearly 86% of the shares, BusinessWire, 10 November 2022, accessed November 2022
  10. ↑Swedish Match, Statement by the Board of Directors of Swedish Match AB in relation to the increased public cash offer by Philip Morris Holland Holdings B.V., website, 27 October 2022, accessed November 2022
  11. ↑M. Mannes, Philip Morris to de-list Swedish Match after raising stake to 93%, Reuters, 28 November 2022, accessed November 2022
  12. ↑Swedish Match, Company Presentation: Who we are, What we do. 21 July 2010, accessed November 2017
  13. ↑S. Peeters, A. Gilmore, Transnational Tobacco Company Interests in Smokeless Tobacco in Europe: Analysis of Internal Industry Documents and Contemporary Industry Materials, PLoS Med 10(9): e1001506, 2013
  14. ↑Swedish Match, Market Development, last updated 24 March 2017, accessed January 2018
  15. ↑Euromonitor International, Smokeless Tobacco: Company Share, 2009-2019 (behind paywall)
  16. ↑Swedish Match, Smokefree, website, undated, accessed 23 September 2021
  17. ↑Swedish Match, Board of Directors, website, undated, archived 7 June 2021, accessed September 2021
  18. ↑Swedish Match, Management, website, undated, archived 7 June 2021, accessed September 2021
  19. ↑Swedish Match, January-September 2006 Interim Statement, accessed January 2018
  20. ↑FD (Fair Disclosure) Wire, Conference Call Transcript with Lorillard Executives at the Morgan Stanley Consumer & Retail Conference 16 November 2010
  21. ↑Swedish Match, Swedish Match and Philip Morris International announce global joint venture to commercialize smokefree tobacco products, Press Release 3 February 2009, accessed January 2018
  22. ↑Swedish Match, Swedish Match and Philip Morris International to dissolve smokeless joint venture, Press Release 16 July 2015, accessed January 2018
  23. ↑T. Loftus, These 20 lobbyists were among the highest paid at the state Capitol in 2017, Louisville Courier Journal, 19 January 2018, accessed January 2018
  24. ↑Kentucky Legislative Ethics Commission Kentucky Registered Legislative Agents, 19 January 2018, accessed January 2018
  25. ↑US Smokeless Tobacco, Note from John Walter to Per Erik Lindqvist enclosing legal brief on European Smokeless Tobacco Council, Truth Tobacco Industry Documents, Bates no: USTC4322097-USTC4322109, 16 February 1989, accessed January 2018
  26. ↑The Eliminating Child Labour in Tobacco Growing Foundation, ECLT Foundation Governance, ECLT website, 2017, accessed January 2018
  27. ↑International Labour Organization, Mission and impact of the ILO, 2017, accessed November 2017
  28. ↑NordCham Philippines, Members, NordCham Philippines website, 2016, accessed January 2018
  29. ↑Swedish Match, Cricket gears up in the Philippines, 4 August 2008, accessed January 2018
  30. ↑S. Peeters, K.Evans, Russia: snus targeted at young & wealthy, Tobacco Control, 2012; 21:456-459
  31. ↑A. Seidenberg, V. Rees, G. Connolly, Swedish Match marketing on YouTube, Tobacco Control 2010, 19;512-123
  32. ↑S. Peeters, A. Clements, A. Gilmore, How the Internet undermines EU tobacco control legislation: online snus marketing & promotion. Presentation at the 15th World Conference of Tobacco of Health, Singapore. 21 March 2011
  33. ↑M. Ersmark & J. Blom, Ask Swedish Match, messages posted from 8 August 2009 to 8 April 2010, accessed May 2012
  34. ↑Influencer Marketing, Marketing-Schools.org, 2012, accessed January 2018
  35. ↑L. Waters, Swedish Match XRANGE Snuses Released and Why?, SnusCentral.org, 30 March 2015, accessed April 2015
  36. ↑M. Hellwig, The Swedish Match Snus Summit- My Reflections, SnusCentral.org, 1 October 2012, accessed March 2015
  37. ↑M. Hellwig, The most exclusive snus in the world, 2 June 2011, accessed November 2011
  38. ↑C. Jones, Full report on the trip to Sweden and visit with Swedish Match! 31 May 2010, 31 May 2010, accessed June 2012
  39. ↑S. Peeters, A. Gilmore, How online sales and promotion of snus contravenes current European Union legislation, Tobacco Control, 2013; 22:266-273
  40. ↑Swedish snus company sues Norwegian state over neutral packaging, thelocal.no, 25 September 2017, accessed January 2018
  41. ↑Norwegian Government, Full victory to Norway over snus producer Swedish match, Press release 6 November 2017, accessed January 2018
  42. ↑C. Kindstrand, Swedish Match Industry Submission to the public consultation on the possible revision of the Tobacco Products Directive 2001/37/EC, page 2462 of 3697, 2010, accessed November 2017
  43. ↑European Commission and OLAF European Anti-Fraud Office, Replies to the Questionnaire from the Committee on Budgetary Control of the European Parliament concerning the resignation of the former Commissioner John Dalli, 30 November 2012
  44. ↑European Anti-Fraud Office, Written Record of Interview with Mr Johan Lenmart Gabrielsson, conducted 2 June 2012. In: Transmission of information following a closure of investigation, Fax from Giovanni Kessler to Peter Grech, dated 17 October 2012
  45. ↑Gayle Kimberley, Re: Meeting Commissioner. Email dated 9 January 2012 addressed to Johan Gabrielsson. In: Transmission of information following a closure of investigation, Fax from Giovanni Kessler to Peter Grech, dated 17 October 2012
  46. ↑Transcription of the meeting between Jose Bove MEP, Jean-Marc Desfilhes MEP Assistant, Cecilia Kindstrand-Isaksson Swedish Match, Johan Gabrielsson Swedish Match. 2013.
  47. ↑C. Fjellner, Email to MEPs dated 17 December 2012, Subject: Brussels Network January 9: Inside Dalli-gate
  48. ↑New Nicotine Alliance, NNA goes to the High Court to challenge the ban on snus, 19 January 2017, accessed January 2018
  49. ↑Abzed, Snus oral tobacco, website, undated, archived 10 May 2020, accessed March 2022
  50. ↑abcLegalising snus in the UK, posted by darius@abzed.com, snuson.com, 14 December 2021, accessed March 2022
  51. ↑abcCampaign to legalise Snus in the UK – we need your help!, posted by darius@abzed.com, reddit.com, 14 December 2021, accessed March 2022
  52. ↑Ewa Björling och Christofer Fjellner: Hjälp oss att rädda svensk snuskultur, Espressen.se, 5 November 2010, accessed November 2017
  53. ↑C. Fjellner, Kalender. Fjellner’s website, accessed February 2011
  54. ↑L. Rutqvist, The Swedish Tobacco Harm Reduction Experience. FDA-TPSAC Meeting on Dissolvable Products 18-20 January 2012
  55. ↑Swedish Match, Swedish Match welcomes an important step to normalize trade in the EU, press release 28 November 2008, accessed January 2018
  56. ↑C. Danielsson, Sweden’s response to the public consultation on Directive 2001/37/EC of 5 June 2001 on the approximation of the laws, regulations and administrative provisions of the Member States concerning the manufacture, presentation and sale of tobacco products. 2010
  57. ↑K. Gustafsson, Sweden Urges EU To Lift Ban On Snus Exports, The Wall Street Journal , 30 May 2011
  58. ↑Swedish Match. Arbitrary, Unreasonable and Discriminatory, press release 3 June 2002, accessed January 2018
  59. ↑G. Fooks & S. Peeters, World: disasters are ‘brand aid’ opportunities for tobacco, Tobacco Control 2011, 20:4-7
  60. ↑University of Louisville, Bucks for Brains donors, undated, accessed April 2017
  61. ↑University of Louisville, Endowed Chair in Tobacco Harm Reduction Research, undated, accessed January 2012
  62. ↑B. Rodu, What the EU Snus Ban Means: 290,865 Casualties Per Year, Tobacco Truth blogspot, 27 November 2013, accessed November 2017
  63. ↑T. Clarke, FDA panel votes against label change to Swedish Match snus, Reuters, 10 April 2015, accessed January 2018
  64. ↑Food and Drug Administration, FDA Submission Tracking Numbers (STNs): Multiple STNs, see below, Letter to Swedish Match North America dated 14 December 2016, accessed November 2017
  65. ↑abUS Food and Drug Administration, FDA grants first-ever modified risk orders to eight smokeless tobacco products, press release, 22 October 2019, accessed March 2022
  66. ↑D. Hedley, What’s Happening in Tobacco- February 2015. Opinion 4 March 2015 (behind paywall)
  67. ↑Helsedirektoratet, Tobacco Control in Norway, last modified 10 January 2019, accessed November 2019
  68. ↑Swedish Match loses Norway court case on snus packaging, Reuters, 6 November 2017, accessed November 2019
  69. ↑S. Peeters, K. Evans, Russia: snus targeted at young & wealthy, Tobacco Control, 2012; 21:456-459
  70. ↑Thomson Reuters, Q3 2011 Swedish Match AB Earnings Conference Call Transcript. 2011
  71. ↑Philip Morris Russia/ Snus by Parliament Launch Campaign, accessed June 2012
  72. ↑BATCo Press Cutting Index, 1985, Truth Tobacco Industry Documents, Bates no. 107356909-107356927, accessed November 2019
  73. ↑United States Tobacco International Incorporated and Another v British Broadcasting Corporation – Judgment, 1988, Truth Tobacco Industry Documents, Bates no. 301132000-301132039, accessed November 2019
  74. ↑PMI, Philip Morris Limited’s Response to the Department of Health’s Consultation on the Future of Tobacco Control. 2008
  75. ↑J. Williamson, C. Proctor, Should the Health Community Promote Smokeless Tobacco (Snus): Comments from British American Tobacco. PLoS Medicine, 2007;4(10)
  76. ↑G.N. Connolly, The marketing of nicotine addiction by one oral snuff manufacturer.Tobacco Control, 1995; 4:73-79
  77. ↑C.M. Carpenter, G. N. Connolly, O. A. Ayo-Yusuf, G. F. Wayne, Developing smokeless tobacco products for smokers: an examination of tobacco industry documents.Tobacco Control, 2009;18(1):54-59
  78. ↑H.R. Alpert, H. Koh, and G.N. Connolly, Free nicotine content and strategic marketing of moist snuff tobacco products in the United States: 2000-2006. Tobacco Control, 2008;17(5):332-338
  79. ↑A. B. Meija, P.M. Ling, Tobacco Industry Consumer Research on Smokeless Tobacco Users and Product Development. American Journal of Public Health, 2010;100(1):78-87

The post Snus: Marketing to Youth appeared first on TobaccoTactics.

]]> Cigarette Companies Investing in Snus https://tobaccotactics.org/article/cigarette-companies-investing-in-snus/ Wed, 05 Feb 2020 12:06:14 +0000 As the harms from conventional products have become better understood, and tobacco control measures have been put in place, the cigarette market – from which tobacco companies make most of their profits – has started to shrink. To secure the industry’s longer-term future, transnational tobacco companies (TTCs) have invested in, developed and marketed various newer […]

The post Cigarette Companies Investing in Snus appeared first on TobaccoTactics.

]]> As the harms from conventional products have become better understood, and tobacco control measures have been put in place, the cigarette market – from which tobacco companies make most of their profits – has started to shrink. To secure the industry’s longer-term future, transnational tobacco companies (TTCs) have invested in, developed and marketed various newer nicotine and tobacco products, including in low and middle income countries (LMICs.80

Since the early 2000s TTCs have developed interests in e-cigarettes (also known as electronic delivery systems, or ENDS), heated tobacco products (HTPs), snus and nicotine pouches.  Companies have referred to these types of product as ‘next generation products’ (NGPs) although terminology changes over time.

  • See the product terminology page for more details, including terms favoured by the industry.

Background

All of the ‘big four’ TTCs (BAT, JTI, Imperial Brands, and Philip Morris International) have invested in a certain type of smokeless tobacco, called Swedish-style snus.81 Snus is a key product of Swedish Match, which does not sell cigarettes. Philip Morris International acquired Swedish Match in 2022 (see below).

This page gives an overview of the global snus market, and looks at the snus products owned by TTCs. It also links to further information on their developing interests in nicotine pouches, snus type products that do not contain tobacco leaf.

The tobacco industry often uses the ‘Swedish Experience’ to support its harm reduction narrative: that Sweden experiences low rates of smoking and tobacco-related disease because snus is available in the country. However, TCRG researchers have argued that this is the result of effective tobacco control regulation, rather than being necessarily attributable to the wider availability of snus.81

This page does not cover the potential health benefits/risks of snus.

The Global Snus Market

Data from Euromonitor International shows that the global market for snus steadily increased in size by about 40% between 2008 and 2019.82

Sweden remained by far the biggest single market, accounting for nearly 70% of the global market in 2019 and around 80% of the European market.82 Over the last decade sales have grown in Sweden, Norway, and particularly in the US.  Sales volumes in Norway and the US are now about a fifth of those in Sweden. Use has also been noted in other countries including Brazil and South Africa.83

However, the rate of increase appears to have been slowing in all countries.82 Tobacco companies have been increasing interest in non-leaf nicotine pouches (see below).

Regulation of Snus

In European Union (EU) countries other than Sweden, the sale of (tobacco derived) snus is illegal under the Tobacco Products Directive. TTCs have unsuccessfully tried to lift the EU sales ban on snus since 2008.8485

It is likely that post-Brexit, those tobacco companies with an interest in snus, as well as EU based retailers, will push for the UK government to reverse the snus ban.

A detailed summary of regulation of snus and nicotine pouches (as of April 2020) in Europe, the US, Australia and New Zealand can be found in a Policy Brief produced by The European Centre for International Political Economy.86

For information on tobacco regulation generally, see the Tobacco Control Laws website, published by the Campaign for Tobacco Free Kids (CTFK).

Cigarette Company Investments in Snus

From 2002, TTCs started buying up small Swedish snus manufacturers and developing and marketing their own snus products. After 2008, snus investments slowed down and tobacco companies focused on e-cigarettes and heated tobacco products (HTPs) instead. Since 2018, TTCs have shown renewed interest in snus-type products, in particular nicotine pouches.87

Japan Tobacco International

In 2002, Gallaher, now part of Japan Tobacco International (JTI), became the first TTC to add snus to its product portfolio in Europe by acquiring Swedish snus manufacturer Gustavus.88 Initially, JTI sold three brands of snus in Sweden only: LD in the value segment; mid-priced Gustavus; and premium Camel snus, which it launched in 2009.89 In 2013, JTI’s parent company, Japan Tobacco briefly trialled ZeroStyle snus in Osaka, Japan, but with little apparent success.90

Since 2017, JTI has been selling snus in Norway and Sweden through its wholly-owned subsidiary, Nordic Snus.91 It sells two brands: LD and Nordic Spirit, the latter being nicotine pouches.9293

British American Tobacco

In May 2005 British American Tobacco (BAT) commenced trial markets of snus in South Africa and Sweden, followed by trials in Norway and Canada, plus a “limited consumer test” in Japan.94

Then in July 2008 it acquired Swedish snus manufacturer Fiedler & Lundgren.81 Initially, BAT sold snus under cigarette brands Lucky Strike, Peter Stuyvesant, and du Maurier, and snus brands Granit, Mocca, and Knekt snus, in South Africa, Canada and Scandinavia. But in March 2011 BAT announced that it had “scaled back” its snus trial markets “to review our BAT’s approach to developing new reduced risk product categories”, and in addition, cancelled a test market planned for 2011.95

From 2012, the company sold snus in Sweden and Norway only. In 2017 BAT’s snus activity picked up again. Following its acquisition of Reynolds American Inc (RAI) in the United States (US), the company now owns Camel snus in the US. In December 2017, RAI submitted Modified Risk Tobacco Product Applications (MRTPA) to the US Food and Drug Administration (FDA) for Camel snus (see below). In Europe in the same year, BAT acquired Swedish snus company Winnington AB, adding Epok snus to its portfolio.9697

In 2019, BAT introduced nicotine pouches to its portfolio, marketing them as Lyft in the UK and Velo in the US.9899100 It promoted sales across Europe, Africa and in Pakistan. For more information see Nicotine Pouches.

BAT distinguishes Epok, Lyft and Velo from traditional snus and has allocated them to a new product category, which it calls “modern oral products”.98

Imperial Brands

Imperial Tobacco (now Imperial Brands , the second largest cigarette company in Europe, entered the snus market in September 2005 when it acquired a 43% share in Swedish Skruf snus, taking full control of the company in 2008.81101 Imperial has sold Skruf, its main premium brand, in Sweden and Norway, and Knox, its value brand, in Sweden only.

At Imperial Tobacco’s 2010 Investor Day, Marcus Diemer, General Manager for Central Europe North, credited snus as a “sizeable, and highly profitable business, and less vulnerable to growing regulatory pressures”.102

In May 2018 Imperial Brands, launched a tobacco-free version of Skruf, called Skruf Super White, in Sweden and Norway.103 This product appears to have been rebranded ZoneX for the UK market in August 2019.104105 For more information see Nicotine Pouches.

In its 2021 strategy review, the company announced it would stop expanding its oral nicotine market, while continuing to invest in its existing markets in Europe.106

Philip Morris International

Of all TTCs, Philip Morris International (PMI) has had the least invested in the snus product category.

In 2006 the company briefly sold 1847 by Phillip Morris on the Swedish market following the company’s acquisition of snus manufacturer Rocker Productions.107 In 2009 it sold Rocker Productions to Swedish Match as part of a deal that saw PMI and Swedish Match set up a joint venture, SMPM International, to “globalise snus”.108 However, the joint venture was not a success and was dissolved in 2015. This also ended PMI’s brief early involvement in snus.

However, in February 2021, PMI said it was planning develop a nicotine pouch product.109110 In May 2021, PMI acquired Danish snus manufacturer AG Snus, which also produces nicotine pouches.111112113 PMI did not appear to announce this publicly and in July 2021, the AG Snus website did not refer to PMI.114115113

In 2022, PMI acquired Swedish Match,116 giving the TTC access to the largest snus markets, in Europe and the US.

Altria

In 2019, Altria announced that it was acquiring an 80% share in nicotine pouch on!, from Swiss tobacco company Burger Sohne.117118

Altria & BAT interests in Lexaria Bioscience

Altria and BAT have connections with Canadian company Lexaria Bioscience,  relating to its drug and nicotine delivery technology ‘DehydraTECH’.119 For details see Nicotine Pouches.

Company Shares

According to Euromonitor International in 2010 Swedish Match, the only listed snus manufacturer without cigarette interests, held a share of over four fifths of the market in Western Europe, with most of that share in Sweden and Norway.120 TTC (BAT and Imperial) entry into snus saw the company’s market share fall in Sweden and to a lesser extent in Norway.120 By 2019, Swedish Match had under three fifths of the  market and a slightly smaller share in Sweden and Norway. Genuine competition between snus and cigarettes on the Scandinavian markets has thus slowly been reduced and is now negligible since PMI’s takeover of Swedish Match. The share of small independent snus manufacturers has always been, and remains, relatively insignificant.120

Despite these TTC snus investments, smokeless tobacco use is not well established in Europe, other than in Norway and Sweden. This partly reflects the fact that the sale of tobacco-derived snus is prohibited in EU member states other than Sweden.

In the US, BAT holds by far the greatest share of the market, over 80%.120 This picture may change now that PMI owns Swedish Match.

Promotion of Snus-type Products for Harm Reduction

From 2012, TTC alternative investments shifted to e-cigarette and HTPs. As with snus, TTCs looked to the these categories to ensure their long-term future, should regulation further constrain the cigarette market or reduce its pricing power, and to reassure investors that TTCs have potential for revenue growth.81 However, from 2019, interest in snus-type products grew again as tobacco companies became more interested in their potential role in their ‘harm reduction’ or ‘reduced risk’ strategies.

FDA Authorises Swedish Match to Advertise Snus as Less Harmful in the US

In October 2019, Swedish Match was the first company to have its application approved by the US Food and Drug Administration (FDA) to advertise eight of its snus products (sold under the ” General” brand) as less harmful.121 Swedish Match had submitted the original application in August 2014.122 This is the first tobacco and nicotine product that the FDA has authorised as less harmful. Specifically, the approved health warning on the snus can state “Using General Snus instead of cigarettes puts you at a lower risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis.”121 The FDA does not consider the products as ‘safe’ and they will continue to carry the generic health warnings required for smokeless tobacco.121 The approval to advertise as reduced risk has a time limit of five years, after which Swedish Match will have to put in an application requesting renewal.

It is likely that the FDA’s decision on snus will affect TTCs’ strategy on NGPs and snus, in the US and perhaps globally. Industry analysist Bonnie Herzog, at investment bank Wells Fargo, was quoted as saying that it was “a huge positive” and “game changer”:123

“We view this as very good news for the broader tobacco/nicotine industry as it demonstrates the FDA’s commitment to a ‘continuum of risk’ strategy and provides viable pathway/process for manufacturers”.123

She also argued that “less harmful” products should be taxed “less onerously” than other tobacco products.123

BAT (Reynolds) Application for Modified Risk Status in the US

As of March 2021, the only other TTC that had an FDA modified risk application pending for its snus products was BAT (Reynolds). BAT submitted 6 Camel snus products for review on 18 December 2017.124125BAT withdrew the application in October 2022.126

TobaccoTactics Resources

TCRG Research

For a comprehensive list of all TCRG publications, including TCRG research that evaluates the impact of public health policy, go to the Bath TCRG’s list of publications.

References

  1. ↑Swedish Match, Swedish Match to sell the cigarette business to Austria Tabak for MSEK 4,800, Press Release 31 May 1999, accessed January 2018
  2. ↑Swedish Match, Swedish Match 1999 Annual Report, accessed January 2018
  3. ↑A. Ringstrom, Swedish Match plans to spin off and list cigar business, Reuters, 15 September 2021, accessed September 2021
  4. ↑D. Afanasieva, Cigar exit is next strike in Swedish Match revamp, 20 July 2021, accessed September 2021
  5. ↑A. Ringstrom and M. Mannes, Swedish Match strikes record high on Philip Morris $16 bln takeover move, Reuters, 10 May 2022, accessed May 2022
  6. ↑Philip Morris International, PMI Offer For Swedish Match AB, PMI Investor Relations web page, 11 May 2022, accessed May 2022
  7. ↑A. Massoudi. P. Nilsson and J. Fontanella-Khan, Philip Morris International nears $16bn deal for Swedish Match, The Financial Times, 9 May 2022, accessed May 2022
  8. ↑Swedish Match, Statement by the Board of Directors of Swedish Match AB in relation to the public cash offer by Philip Morris Holland Holdings B.V.,press release, 11 May 2022
  9. ↑Philip Morris International, PMHH acquires shares in Swedish Match outside the offer and becomes the owner of nearly 86% of the shares, BusinessWire, 10 November 2022, accessed November 2022
  10. ↑Swedish Match, Statement by the Board of Directors of Swedish Match AB in relation to the increased public cash offer by Philip Morris Holland Holdings B.V., website, 27 October 2022, accessed November 2022
  11. ↑M. Mannes, Philip Morris to de-list Swedish Match after raising stake to 93%, Reuters, 28 November 2022, accessed November 2022
  12. ↑Swedish Match, Company Presentation: Who we are, What we do. 21 July 2010, accessed November 2017
  13. ↑S. Peeters, A. Gilmore, Transnational Tobacco Company Interests in Smokeless Tobacco in Europe: Analysis of Internal Industry Documents and Contemporary Industry Materials, PLoS Med 10(9): e1001506, 2013
  14. ↑Swedish Match, Market Development, last updated 24 March 2017, accessed January 2018
  15. ↑Euromonitor International, Smokeless Tobacco: Company Share, 2009-2019 (behind paywall)
  16. ↑Swedish Match, Smokefree, website, undated, accessed 23 September 2021
  17. ↑Swedish Match, Board of Directors, website, undated, archived 7 June 2021, accessed September 2021
  18. ↑Swedish Match, Management, website, undated, archived 7 June 2021, accessed September 2021
  19. ↑Swedish Match, January-September 2006 Interim Statement, accessed January 2018
  20. ↑FD (Fair Disclosure) Wire, Conference Call Transcript with Lorillard Executives at the Morgan Stanley Consumer & Retail Conference 16 November 2010
  21. ↑Swedish Match, Swedish Match and Philip Morris International announce global joint venture to commercialize smokefree tobacco products, Press Release 3 February 2009, accessed January 2018
  22. ↑Swedish Match, Swedish Match and Philip Morris International to dissolve smokeless joint venture, Press Release 16 July 2015, accessed January 2018
  23. ↑T. Loftus, These 20 lobbyists were among the highest paid at the state Capitol in 2017, Louisville Courier Journal, 19 January 2018, accessed January 2018
  24. ↑Kentucky Legislative Ethics Commission Kentucky Registered Legislative Agents, 19 January 2018, accessed January 2018
  25. ↑US Smokeless Tobacco, Note from John Walter to Per Erik Lindqvist enclosing legal brief on European Smokeless Tobacco Council, Truth Tobacco Industry Documents, Bates no: USTC4322097-USTC4322109, 16 February 1989, accessed January 2018
  26. ↑The Eliminating Child Labour in Tobacco Growing Foundation, ECLT Foundation Governance, ECLT website, 2017, accessed January 2018
  27. ↑International Labour Organization, Mission and impact of the ILO, 2017, accessed November 2017
  28. ↑NordCham Philippines, Members, NordCham Philippines website, 2016, accessed January 2018
  29. ↑Swedish Match, Cricket gears up in the Philippines, 4 August 2008, accessed January 2018
  30. ↑S. Peeters, K.Evans, Russia: snus targeted at young & wealthy, Tobacco Control, 2012; 21:456-459
  31. ↑A. Seidenberg, V. Rees, G. Connolly, Swedish Match marketing on YouTube, Tobacco Control 2010, 19;512-123
  32. ↑S. Peeters, A. Clements, A. Gilmore, How the Internet undermines EU tobacco control legislation: online snus marketing & promotion. Presentation at the 15th World Conference of Tobacco of Health, Singapore. 21 March 2011
  33. ↑M. Ersmark & J. Blom, Ask Swedish Match, messages posted from 8 August 2009 to 8 April 2010, accessed May 2012
  34. ↑Influencer Marketing, Marketing-Schools.org, 2012, accessed January 2018
  35. ↑L. Waters, Swedish Match XRANGE Snuses Released and Why?, SnusCentral.org, 30 March 2015, accessed April 2015
  36. ↑M. Hellwig, The Swedish Match Snus Summit- My Reflections, SnusCentral.org, 1 October 2012, accessed March 2015
  37. ↑M. Hellwig, The most exclusive snus in the world, 2 June 2011, accessed November 2011
  38. ↑C. Jones, Full report on the trip to Sweden and visit with Swedish Match! 31 May 2010, 31 May 2010, accessed June 2012
  39. ↑S. Peeters, A. Gilmore, How online sales and promotion of snus contravenes current European Union legislation, Tobacco Control, 2013; 22:266-273
  40. ↑Swedish snus company sues Norwegian state over neutral packaging, thelocal.no, 25 September 2017, accessed January 2018
  41. ↑Norwegian Government, Full victory to Norway over snus producer Swedish match, Press release 6 November 2017, accessed January 2018
  42. ↑C. Kindstrand, Swedish Match Industry Submission to the public consultation on the possible revision of the Tobacco Products Directive 2001/37/EC, page 2462 of 3697, 2010, accessed November 2017
  43. ↑European Commission and OLAF European Anti-Fraud Office, Replies to the Questionnaire from the Committee on Budgetary Control of the European Parliament concerning the resignation of the former Commissioner John Dalli, 30 November 2012
  44. ↑European Anti-Fraud Office, Written Record of Interview with Mr Johan Lenmart Gabrielsson, conducted 2 June 2012. In: Transmission of information following a closure of investigation, Fax from Giovanni Kessler to Peter Grech, dated 17 October 2012
  45. ↑Gayle Kimberley, Re: Meeting Commissioner. Email dated 9 January 2012 addressed to Johan Gabrielsson. In: Transmission of information following a closure of investigation, Fax from Giovanni Kessler to Peter Grech, dated 17 October 2012
  46. ↑Transcription of the meeting between Jose Bove MEP, Jean-Marc Desfilhes MEP Assistant, Cecilia Kindstrand-Isaksson Swedish Match, Johan Gabrielsson Swedish Match. 2013.
  47. ↑C. Fjellner, Email to MEPs dated 17 December 2012, Subject: Brussels Network January 9: Inside Dalli-gate
  48. ↑New Nicotine Alliance, NNA goes to the High Court to challenge the ban on snus, 19 January 2017, accessed January 2018
  49. ↑Abzed, Snus oral tobacco, website, undated, archived 10 May 2020, accessed March 2022
  50. ↑abcLegalising snus in the UK, posted by darius@abzed.com, snuson.com, 14 December 2021, accessed March 2022
  51. ↑abcCampaign to legalise Snus in the UK – we need your help!, posted by darius@abzed.com, reddit.com, 14 December 2021, accessed March 2022
  52. ↑Ewa Björling och Christofer Fjellner: Hjälp oss att rädda svensk snuskultur, Espressen.se, 5 November 2010, accessed November 2017
  53. ↑C. Fjellner, Kalender. Fjellner’s website, accessed February 2011
  54. ↑L. Rutqvist, The Swedish Tobacco Harm Reduction Experience. FDA-TPSAC Meeting on Dissolvable Products 18-20 January 2012
  55. ↑Swedish Match, Swedish Match welcomes an important step to normalize trade in the EU, press release 28 November 2008, accessed January 2018
  56. ↑C. Danielsson, Sweden’s response to the public consultation on Directive 2001/37/EC of 5 June 2001 on the approximation of the laws, regulations and administrative provisions of the Member States concerning the manufacture, presentation and sale of tobacco products. 2010
  57. ↑K. Gustafsson, Sweden Urges EU To Lift Ban On Snus Exports, The Wall Street Journal , 30 May 2011
  58. ↑Swedish Match. Arbitrary, Unreasonable and Discriminatory, press release 3 June 2002, accessed January 2018
  59. ↑G. Fooks & S. Peeters, World: disasters are ‘brand aid’ opportunities for tobacco, Tobacco Control 2011, 20:4-7
  60. ↑University of Louisville, Bucks for Brains donors, undated, accessed April 2017
  61. ↑University of Louisville, Endowed Chair in Tobacco Harm Reduction Research, undated, accessed January 2012
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