Tobacco & RRP Report
View from the brands: Swedish Match
Swedish Match’s ZYN brand is at the heart of the company’s drive to build the category of smokeless nicotine products. It launched its ranges into the global travel market last year and has already made a mark in the tobacco category. The smoke-free products are designed to appeal to the nicotine consumer.
It is also deepening its partnerships with key retailers, most recently WHSmith, following a series of high-profile campaigns in UK travel locations over the summer. ZYN nicotine pouches are now available in 280 WHSmith Travel stores.
The momentum also reflects the company’s faith in the travel retail channel and underlines its intention to disrupt the status quo in the tobacco sector.
The UK campaigns, including a promotional wrap and sampling activation for shoppers at London Waterloo railway station, have run in key travel locations across the UK across the summer. Similar promotions are planned for Manchester Airport and Manchester Piccadilly station.
WHSmith Tobacco Buyer Matthew Walshe said: “The activations with Swedish Match at transport hubs this summer have been well received by customers. We are always looking for ways to broaden our offer for customers and we look forward to building on this collaboration in the future.”
Swedish Match UK Marketing & Activation Lead David Hall added: “This is an exciting time for Swedish Match. We can see the power and potential of these products within the marketplace and shoppers are reacting positively to our vision of a world without cigarettes.
“Swedish Match and ZYN do not take away from the existing travel retail tobacco market. They provide another option and an opportunity to drive increased spend for retailers. This partnership with WHSmith has been built on a true spirit of trust and collaboration, enabling us to promote our product across their Travel stores and engage with customers.”
PMI makes enhanced offer for Swedish Match
On 20 October multinational tobacco and smoke-free products company Philip Morris International (PMI) raised its buyout bid for Swedish Match.
Announcing its financial results last week, PMI said: “We believe the best and final price in our revised offer for Swedish Match, announced earlier today, provides very compelling value for both sets of shareholders. Should the offer fail, we are well prepared to proceed autonomously to develop IQOS and the rest of our smoke-free portfolio in the US.”
Reuters described the increased US$15.7 billion bid it as a “last-ditch effort” to get backing for its offer from Swedish Match shareholders. Although PMI has raised its bid by more than +9% to SEK116 (US$10.22 at current exchange rates) per share, the news agency said some Swedish Match shareholders appear to be holding out for more.
Swedish Match, which has stepped up its presence strongly in the travel retail market over recent times, manufactures snus, nicotine pouches, moist snuff, tobacco- and nicotine-free pouch products, chewing tobacco, chew bags, tobacco bits, cigars, matches and lighters.
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The Moodie Davitt eZine
Issue 316 | 31 October 2022
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