Swedish Match Remains Hopeful on U.S. Wet Snuff Status

Source from:  Reuters 07/21/2015

Tobacco company Swedish Match expects U.S. regulators to decide in the coming months whether it can market its wet snuff product in the United States with a lower health risk label.

The Swedish company is looking across the Atlantic for the next big market for its snus product -- a pasteurised moist snuff placed under the lip. It needs to offset the impact of cut-price competition which has hurt its margins at home.

Being able to claim snus is less harmful than cigarettes could boost U.S. sales. Approval however looks unlikely after the U.S. Food and Drug Administration's advisory panel in April cautioned against it, and against removing warning labels.

Chief Executive Lars Dahlgren told Reuters he was still hopeful after the company handed in additional material to support its case. He expects a decision by the end of the current quarter.

"Regarding the very key question whether General snus will be classified modified risk product or not our assessment is that chances are good," he said.

The application marks the first time any tobacco company has asked the FDA to consider allowing a tobacco product to carry a reduced harm claim. The regulator is not obliged to follow the recommendations of its advisory panels but typically does so.

Snus is a moist tobacco product that does not involve spitting or chewing. It has been used for centuries in Sweden.

Swedish Match would not radically scale down its U.S. snus push in case of a "No", Dahlgren said. Enditem