Market

Swedish Match is the largest producer of chewing tobacco in the US, with a market share of approximately 46 percent*.

Red Man Silver BlendRed Man Silver Blend

The US market for chewing tobacco is in a long term state of decline in volume terms. Consumption declines annually in the range of 58 percent. Volume declines in the category occur as consumers leave the market, some moving to moist snuff. With declining consumption, manufacturers continuously strive to reduce their costs and adjust pricing in order to maintain profitability.

The market is segmented by brand, flavour and price point, with the value priced segment growing as a percentage of the overall mix. Approximately 70 percent of sales are in the premium segment, with Red Man being the leading brand.

North America

Main brands

The Company's best known brands include Red Man, Red Man Golden Blend, Red Man Silver Blend, Granger Select, and Southern Pride. The Red Man brand family is by far the largest in the US, with more than 35 percent of all volumes sold.

Point of sales

Chewing tobacco is sold in the same stores as other tobacco products, where convenience stores and low-price tobacco outlets account for the majority of sales.

Competitors

Competitors in the North American market include Conwood (Reynolds American), National and Swisher. Conwood is the largest competitor.

Other markets

Swedish Match has very limited sales of chewing tobacco outside the US. However, there are some sales in other markets. For example, the Piccanell brand in Sweden.

*Source: ACNielsen

Page updated May 9, 2008

SWMA Nov 20, 2008 12:07 PM CET 118 SEK -0.4% Down


Addresses

Stockholm
Swedish Match Corporate Headquarters SE-118 85 Stockholm
Phone: +46 8 658 0200
Fax: +46 8 658 3522
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