Swedish Match snus and snuff sales fell 5 per cent in the second quarter as lower priced competitors took market share from the leader at home and US moist-snuff shipping volume dipped 6 per cent, the company said.

Scandinavian shipping volumes in number of cans declined 3 per cent, with domestic market weakness offsetting a volume increase in Norway. Swedish market share in volume terms dropped to 73 per cent from 78.2 per cent.
Snus and snuff operating profit fell 6 per cent to SEK 546 million (EUR 63 million) on sales of SEK 1.2 billion. Sales including cigars, chewing tobacco, matches and other operations were nearly unchanged from the prior April-June period at SEK 3.2 billion, while operating profit fell 11 per cent to SEK 968 million, Swedish Match said.
“Operating profit declined as we continued to experience negative currency effects, invest for growth of Swedish snus internationally as well as address the competitive situation for snus in Sweden”, said Chief Executive Officer Lars Dahlgren. “Growth of the low price segment continues to adversely affect the product mix.”
Snus growth in the US partially offset the decline in moist-snuff volume. Independent market data show its General snus is now the second largest sales brand in the US, Swedish Match said.
“We will continue to invest for growth for snus internationally, particularly in the US, and also continue to invest for share growth in the fast growing pouch segment of the US moist snuff market”, the company said. “In Scandinavia, we invest behind new market initiatives, particularly in Sweden.”
Both the Scandinavian snus and US moist-snuff market should experience volume growth in 2013, Swedish Match said.