Swedish Match snus volume in the Scandinavian region rose 1 per cent in the first quarter and the company said it gained market share in the troublesome value segment of its domestic market.

Snus and moist snuff sales fell 2 per cent, or 1 per cent in local currencies, to SEK 1.15 billion (EUR 127 million). Moist-snuff volume in the US dipped 1 per cent in the three months ended 31 March. Sales from cigars and other tobacco products gained 3 per cent to SEK 687 million.
Operating profit including the lights division and other operations declined 2 per cent to SEK 858 million, adjusted for a one-time gain in the first quarter of 2013. Consolidated sales gained 1 per cent to SEK 3 billion.
“It is positive to note the continued strong (snus) market growth in both Sweden and Norway”, said Chief Executive Officer Lars Dahlgren. “In Sweden, the growth has been driven by value priced products, and relative to the last quarter of 2013, Swedish Match gained share in this growing share of the market in line with our ambitions.”
Swedish Match is dominant in the premium sector of its home snus market. The company said the number of cans shipped by the industry in the first quarter grew by an estimated 5 per cent. Swedish Match estimated its volume growth at 1 per cent in a home market where lower priced products account for 40 per cent of total shipments.
US cigar volume growth was 5 per cent, helped by a “strong” performance of Game natural wrapper cigars, the company said.
At Scandinavian Tobacco Group, a joint venture into which Swedish Match merged its European mass cigar, US premium cigar and pipe tobacco businesses in 2010, sales and operating profit rose 3 per cent. Sales in local currencies rose in both the handmade and machine-made cigar segments. Skandinavisk Holding of Denmark is the majority owner of STG, with 51 per cent of the world’s largest maker of cigars and pipe tobacco.