UNITED STATES: Swedish Match to Push Snus Products in Market

Source from:  TJI 03/19/2010

Tobacco giant Swedish Match has announced plans to push its snus smokeless tobacco brand to consumers in the US, adding that it will corporate workers who are forced to leave the office to smoke. The company said it will aim to double distribution of its General snus brand to about 1,200 US stores, ideally by end-2010. In a media interview, Richard Flaherty, president of the group's US sales division, noted, "We are going after bankers, Wall Streeters, people who work in offices and take the elevator down and stand out in the cold for cigarettes. A perfect place for that is in New York, and the big banks." Part of its tactics includes giving away samples of snus at New York bars and ski resorts. Swedish Match marketers already began a sampling effort in Vail, Colorado, and now are handing out silvery sample packs of General Snus on Wall Street -- a sign that the product will be positioned as a high-end item. "We are emphasising the Swedish cachet," Flaherty said. In addition, Swedish Match's General brand is more expensive than either the Marlboro brand by Altria Group's Philip Morris unit, or Reynolds American's Camel brand. Snus is not as popular as traditional snuff in the US, selling 20 million cans a year compared to about 1.2 billion cans for the latter. Swedish Match, which made 30 per cent of its revenue last year from snus and snuff sales, trails Altria and Reynolds American in the US, which distribute the Marlboro and Camel snus brands. Enditem