Born 1957, B.A., University of Cambridge. Board member since 2006. Member of the Audit Committee.
Product development secures future success
"Swedish Match is a company for the 21st Century. It has the potential to lead the way in offering consumers alternative products for enjoying tobacco." So says the Group's newly elected Board member, Englishman Andrew Cripps, who has an impressive track record from his 22 years of working for the world's leading tobacco companies.
9 Nov, 2007
"Swedish Match's strong tradition of product development is a good indicator of a successful future."
Andrew Cripps, 49 , was not unknown to Swedish Match when he was elected to the Board of Directors at the shareholders' meeting this spring. Having held various strategic positions at British American Tobacco Company and Rothmans, two international giants who have now merged, his name is respected throughout the industry. He was also on the seller's side when Swedish Match bought its pipe tobacco company in South Africa.
"I have always thought that Swedish Match seemed to be a well-run and interesting niche consumer products company with good management. Selling the cigarettes business in 1999 was entirely the right decision as it allows the Group to focus on its core products. Now that I am beginning to learn about the business in detail, my first impressions have been confirmed and the more I get to know and understand the company and its products, the more enthusiastic I become!"
Smokeless products in pace with trend
It is clear that he is a strong believer in snus and the potential that alternative, smokeless products have to offer. "We are facing a significant global trend among consumers, with a change in people's perceptions of smoking. And this is also being backed by governments who are con tinuously expanding the "smoke-free zone" in society. Swedish Match is working with this trend, rather than against it, and has products and product development which are world-beating."
He fully shares the view that the effect of snus on health needs to be fully understood and has a high opinion of the Group's research and product development work. "It is important for the Group to continue its research into the various ingredients and substances present in tobacco so that it can lead the way in the development of smokeless products."
R&D is important
The eagerness in his voice grows when the conversation turns to research and development. This might be to do with having a scientist as a father and the fact that he started off studying sciences. "Yes, there might be something in that. I am fascinated by innovation, and I love being able to try new ideas that show there are new, smarter ways of doing things." But that scientific vein was not expressed in his career. "No, the common threads that run through my professional life are finance and strategy."
He began his career as a chartered accountant at KPMG after graduating from Cambridge, and then held a number of operative posts within Rothmans in the UK, the Netherlands and Switzerland. In the mid- 1990s, his financial expertise landed him a role in Rothmans expansion strategy as Director of Corporate Finance. From here, he moved on to play a leading role in the massive merger between Rothmans and BAT in 1999, after which he became Head of Acquisitions in the new company. He oversaw many acquisitions globally before moving on to a new position, developing the group strategy which put greater emphasis on new products.
Heart beats for charitable activities
In 2005 he decided it was time to move on to new pastures, and entered a new phase in his life as a consultant and a member of various boards.
"That also freed me up to devote more time to charity work. I believe it is important to take an active interest in something like this, away from work. I chose to get involved in an organization close to home in East London that provides development activities for young people in a deprived area with a high immigrant population and social problems. It is something I feel very strongly about and after some years as a Trustee, I now chair the Board. We also organize and support activities within the areas of visual and performing arts and train artists so as to enhance their career opportunities. The "performing arts" are one of my passions - I enjoy modern theatre and ballet."
As a member of various boards in England, he sits on audit, nomination and remuneration committees which operate under the British corporate governance standard, which in some ways is more detailed in terms of both scope and application than the new Swedish corporate governance code.
"The Swedish code is helpful; it sets down the things that all good companies must do. Swedish Match has been at the forefront in this area in Sweden and our board of directors should continue as they have been doing. But it is important to understand that the code guides the way in which business is transacted and reported, it is not the business itself!"
Focus on good business
The main task of the board of directors is to stimulate the strategic direction of the business, so as to create value for all stakeholders, he believes. "We should not interfere in the day-to-day business decisions, but ask the right questions which will spur the management on to better and better performance."
His experience also leads him to support Swedish Match's policy of giving shareholders value through the regular buy-back of shares. "Swedish Match has a good, steady cash flow. Companies with large cash surpluses are at significant risk of becoming less careful with money. That's why it is right to give this money back to the shareholders through buy-backs and to keep up the incentive on management to operate efficiently. At the same time I would like to point out that it is our duty, as board members, to safeguard the financial stability of the company."
Personally, he believes that this is a very interesting time to be involved on the board of Swedish Match. "The company has great expertise, strong products and a good management team. Consumer and market trends are moving in our favour. This is an excellent platform on which to develop our business concept and strategies for further value creation for all the company's customers, employees and shareholders."