Pipe tobacco
Swedish Match is one of the world's largest producers of pipe tobacco, with strong local and international brands in many countries.
Pipe tobacco is enjoyed worldwide. While consumption of pipe tobacco is declining in most markets, this trend is especially pronounced in Europe and the US. The South African market, a very important market for Swedish Match, is also declining somewhat. In other parts of the world, consumption of pipe tobacco is stable or increasing modestly. Accessories include cigarette filters and paper.
Operational highlights 2007:
- Sales increased by 2 percent in local currencies.
- Group-wide volume declined by 5 percent.
- Operating profit negatively affected by closure of Rustenburg factory in South Africa.
Main brands:
Borkum Riff, Half and Half, Best Blend, Boxer, Black & White, Nineteen O’Four, Greve Gilbert Hamiltons Blandning
Main markets:
South Africa, the UK, Australia, the US, Sweden
Production units:
South Africa, the US
Outlook
The market for pipe tobacco is expected to continue declining at rates near levels in recent years. Profitability for the product area is good, however, and cash flow from pipe tobacco operations is expected to remain strong in the years ahead.