With the introduction of two discount brands, Sweden’s snus sector sees tougher competition.

Gallaher is launching LD branded snuff in the Swedish market at a price point 50 per cent below Swedish Match’s snuff products (15 SEK vs 29 to 31 SEK). STK, a BAT affiliate, has also launched low price snuff products in Sweden. Analysts believe that the history of the US snuff market is instructive. Formerly, the market had premium and mid-price points. However, in the last three years the deep discount segment, priced around 50 to 60 per cent below premium, has increased from nothing to over 22 per cent market share. According to analysts, there is the potential for a similar shift in segment market share in Sweden. SWMA holds a 95 per cent share of the Nordic market. (jpm)