Are Rogue Nicotine Pouches Spitless

Earl Hamilton
• Monday, 14 December, 2020
• 7 min read

I'm a world record winning chain smoker We like your style. It's time to freshen the breath, do you reach for sweet after-dinner mint.

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(Source: heatnotburn.co.uk)


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(Source: www.cspdailynews.com)

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When the flavor ends, place the used pouch in the disposal on the back of your pack, or in the nearest trash can. The development of the combined Scandinavians nus and nicotine pouch market remained strong in 2019 driven by modern and innovative products, and Swedish Match’s volumes increased during the year in Sweden, Norway, and Denmark.

In other parts of Europe, there is a potential for innovative smoke free products and Swedish Match has introduced nicotine pouches in several markets. The US market for nicotine pouches continued to demonstrate an impressive growth trajectory, with Swedish Match building on its leading position.

1) In Norway, General is the largest Swedish Match sinus brand on the market, including its G.3 range. Swedish Match also offers Nico in both Sweden and Norway, the number one brand in the segment for products with neither tobacco nor nicotine.

1) Most of this growth came from nicotine pouches, which by the end of 2019 was approximately 9 percent relative to the sinus category in volume terms. Swedish Match’s Scandinavian shipment volumes measured in number of cans grew by more than 2 percent, while underlying organic volumes (excluding hoarding and year-end calendar effects as well as acquisition effects) are estimated to have increased by approximately 1 percent.

nicotine pouches citrus snus
(Source: snus.us)

1) Nicotine pouch volumes have been growing quickly and this segment was 6 percent relative to the sinus market in Sweden. 1) Nicotine pouches are innovative and modern products with price points in line with higher-priced premiums nus.

The fast growth of these products has contributed to a positive price/mix effect in the combined market for sinus and nicotine pouches. While the Company’s premium volumes grew during the year, it however lost market share in this segment.

The combined category for sinus and nicotine pouches in Norway is estimated by Swedish Match to have grown by more than 5 percent in volume terms in 2019 versus the prior year. In Norway, as in Sweden, Swedish Match’s market position is stronger for sinus than for nicotine pouches, and the Company is significantly underrepresented in this rapidly growing segment.

While Swedish Match’s sinus market share in volume terms in Norway is estimated to have increased by approximately 1 percentage points, the Company’s nicotine pouch market share is estimated to have declined by approximately 2 percentage points. ZEN volumes increased during the year and Swedish Match gained some share in this rapidly growing category.

In the rapidly growing nicotine pouch category in Norway, competition remained intense, and Swedish Match lost market share despite new product introductions during the year under the G.4 brand, including G.4 BLUSH, G.4 TACT, and G.4 FIZZY. The G.4 range, first launched in 2017, was developed utilizing state-of-the-art technology and provides a soft mouth feel.

nicotine pouches mint snus
(Source: snus.us)

During 2019, several competitors to Swedish Match entered this market by aggressively introducing their product offerings, a testament to the attractiveness of this category. The US sinus market amounted to approximately 60 million cans in 2019, basically flat compared to the levels seen in recent years.

In 2019, the US moist snuff market is estimated by Swedish Match to have declined by approximately 1 percent in volume terms compared to the previous year, and amounted to more than 1.5 billion cans, with the pouch segment accounting for approximately 17 percent of this market. Swedish Match’s moist snuff volume measured in number of can equivalents was lower compared to last year.

Highlights in the US During 2019, Swedish Match expanded the availability of ZEN nicotine pouches nationally from the Western region base. To handle the increased distribution and higher in-store velocities, Swedish Match has invested significant resources into US production capacity of ZEN, a project that was initiated in 2017.

Given the market success of ZEN, Swedish Match has recently decided to once again expand capacity. The fourth phase, which is planned to be completed in 2022, will involve building expansion as well as processing and packaging lines that will increase annualized installed capacity to more than 200 million cans.

For the US moist snuff market, while category volumes remained soft in 2019, growth in value terms increased. Swedish Match estimates the growth in the pouch segment to have been approximately 3 percent in volume terms in 2019.

lyft nicotine pouches snubie
(Source: chadizzy1.blogspot.com)

In 2019, Swedish Match expanded the availability of ZEN on a limited scale to a number of markets outside Scandinavia and the US, and by the end of the year, the Company was present in stores in markets including Austria, Croatia, the Czech Republic, Estonia, Germany, Greenland, Slovenia, and the UK. In addition to the rollout of nicotine pouches, Swedish Match is also continuing to establish a presence with sinus in select markets.

Due to regulatory developments, the decision was made to exit the Canadian market for sinus. The decision was enforced with immediate effect, and Swedish Match now sells sinus on the Swiss market.

Swedish Match is the largest participant in the US chewing tobacco category, with the country’s number one selling brand, Red Man. The overall volume decline for the total category was driven by premium products where Swedish Match has a leading position.

The value segment of the market was stable in volume terms, with growth in the big bag format. Swedish Match’s chewing tobacco shipments (excluding contract manufacturing volumes) declined slightly less than the market.

Swedish Match products account for approximately 40 percent volume share of the market. With declining chewing tobacco consumption in the US market, Swedish Match works to reduce costs and maintain operating efficiency while also addressing pricing in order to ensure good profitability.

pouches nicotine berry tobacco citrus mint bnb
(Source: www.bnbtobacco.com)

Swedish Match’s strong market share allows this business to remain highly cash generative. In 2017, Swedish Match acquired V2 Tobacco, a manufacturer of both chew bags and sinus with production in Silkworm, Denmark.

The V2 Tobacco and House of Oliver Twist acquisitions have helped to broaden Swedish Match’s footprint for these types of products in Europe and certain other markets. Swedish Match’s brand portfolio includes General Cut, Goteborg Rape, Thunder, and Oliver Twist.

In 2019, Swedish Match’s chew bag products were available in a number of markets including the Czech Republic, Denmark, Germany, Slovenia, and Switzerland.

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