Swedish Match snus and moist-snuff sales increased in the third quarter despite a 6 per cent drop in US shipment volume that the company said was due to reduced promotional activity.
Zyn, the nicotine pouch made without tobacco leaf, is doing well in the US market, where the company will invest more than USD 40 million (EUR 34.4 million) to increase production. The decision to increase output was made in June, and had been previously announced. “The project is still in its early phase and until completion, increased production in Sweden will support the growth of Zyn,” said Chief Executive Officer Lars Dahlgren.
Snus and moist snuff sales rose 3 per cent to SEK 1.4 billion (EUR 144 million) while operating profit increased 8 per cent to SEK 622 million, Swedish Match said. Snus volume in Scandinavia rose 2 per cent to 61.7 million cans. US moist-snuff volume declined 2.3 million cans to 33.6 million. The August acquisition of Danish smokeless company V2 Tobacco boosted volume in European markets outside Scandinavia.