Swedish Match AB

Sweden

OWNERSHIP

Publicly Traded

RANK

(out of 15)

FINAL SCORE

3.88

(out of 5)

Operating Environment

Swedish Match AB (Swedish Match) operates in all four Index Regions, and in 11 of the 36 Index Countries. Its top five Index Countries by Volume Sales are the USA, Sweden, Switzerland, the UK and Poland.

Swedish Match operates across HMICs (nine Index Countries) and LMICs (two Index Countries).

Swedish Match’s product portfolio consists of cigars and cigarillos, snus, moist snuff, non-tobacco nicotine pouches and chewing tobacco.

Publicly Stated Position on Tobacco Harm Reduction

“Swedish Match has a vision of A world without cigarettes, and we are committed to making important contributions on our path towards that vision. When cigarette smokers find attractive and less harmful alternatives, and choose to stop smoking altogether, they benefit, and so does society.”
(Lars Dahlgren, President and CEO, Swedish Match Annual Report 2021, signed March 2022)

Change Since 2020 Index

Swedish Match’s Volume Sales of HRPs increased over the 2019-2021 review period (from 13.5 to 15.9 billion stick equivalents), due to a year of “record sales” for the company’s USA cigar division in 2021.

Swedish Match’s ratio of total Volume Sales from RRPs is the highest of all Index Companies (53%). Volume sales of RRPs increased further over the 2019-2021 review period (from 15.9 to 17.6 billion stick equivalents), especially Volume Sales of non-tobacco nicotine pouches in the USA.

In 2021, Swedish Match’s Ratio of Number of Countries (RRPs versus HRPs) increased, as the company expanded distribution of its Zyn non-tobacco nicotine pouch brand to three more Index Countries, as well as increasing (by one) the number of Index Countries in which it sells chewing tobacco.

Swedish Match’s Capital Allocation & Expenditure category score declined marginally in the 2022 Index, compared to the 2020 Index. The company’s share of R&D expenditure on RRPs declined from 96% (2019) to 91% (2021), and its share of Capital Expenditure on RRPs declined from 92% (2019) to 91% (2021).

Category Scores

Strategy & Management

Swedish Match publicly acknowledges its role in, and has made a formal commitment to reducing, tobacco-related death and disease.

Swedish Match has an objective related to tobacco harm reduction (“the development and commercialization of nicotine harm reduction products that are attractive to cigarette users and dramatically safer sources of nicotine compared to cigarettes,”) but the objective is not time-bound or measurable.

Product Sales

Of the 15 Index Companies, Swedish Match has the lowest Volume Sales of HRPs (2021: 15.9 billion stick equivalents).

With 53% of its total volumes coming from RRPs, Swedish Match ranks first for Ratio of Volume Sales (RRPs versus HRPs).

Capital Allocation & Expenditure

At 91%, Swedish Match’s allocation of R&D Expenditure on RRPs (versus its total R&D expenditure) is the second-highest.

Swedish Match’s allocation of Capital Expenditure (RRPs versus HRPs), also at 91%, ranks it ahead of all other Index companies.

Product Offer

Swedish Match offers HRPs (cigars and cigarillos) in one Index Country (the USA), and RRPs (snus, moist snuff, non-tobacco nicotine pouches and chewing tobacco) in ten Index Countries.

Marketing Policy & Compliance

Swedish Match has a Youth Access Prevention Policy (“Adult-only policy”), which is published in its Code of Conduct and is also available in its 2021 Annual Report and on the company’s corporate website.

Swedish Match does not disclose numbers or details of any reported violations of its Youth Access Prevention Policy.

Lobbying & Advocacy

Swedish Match discloses its policy positions related to tobacco harm reduction on its corporate website and in its Annual Reports.

Swedish Match does not disclose specific lobbying activities and memberships in all jurisdictions in which it operates.

Net Value Sales

In 2021

High-Risk Products

29.0%

Reduced-Risk Products

71.0%

Products Offered

In 2021

High-Risk Products

Reduced-Risk Products

Capital Allocation & Expenditure

In 2021

High-Risk Products

18.0%

Reduced-Risk Products

82.0%

ppts = Difference in percentage between 2021 and 2019