Swedish Match
 | |
| Type | Publicly traded Aktiebolag |
|---|---|
| Traded as | OMX: SWMA |
| Industry | Personal & household goods[1] |
| Fate |
Svenska Tändsticks AB Jönköpings Tändsticksfabrik [2] Svenska Tobaksmonopolet[2] |
| Founded | 1915[2] |
| Headquarters | Stockholm, Sweden |
| Key people | Conny Karlsson (Board chairman), Lars Dahlgren (President and CEO) [3] |
| Products |
|
| Revenue | SEK 12.486 billion (2012)[3] |
| Operating income | SEK 4.062 billion (2012)[3] |
| Net income | SEK 2.907 billion (2012)[3] |
| Total assets | SEK 14.371 billion (2012)[3] |
| Total equity |
 (SEK 2.051 million) (2012)[3] |
| Employees | 3,848 (2012)[3] |
| Website | www.swedishmatch.com |
Swedish Match is a Swedish company based in Stockholm that makes snus, moist snuff, and chewing tobacco (with its Red Man brand). These products are known as moist smokeless tobacco. The company also makes machine-made cigars, matches and lighters.
Swedish Match operates in nine countries and has approximately 3,848 employees.[3] The products are sold in more than 100 countries worldwide.[4] Swedish Match shares have been listed at the NASDAQ OMX Stockholm, large cap segment,[5] since 1996 with the ticker symbol SWMA. It is also traded on BATS Chi-X.[3] In 2012, the group had total sales of 12,486 MSEK and an operating profit from product areas of 3,666 MSEK.[3] In 2012, snus and snuff accounted for 40 percent of sales and 63 percent of Swedish Match’s operating profit.[3]
History
The operations of Swedish Match originate from two companies: Svenska Tobaksmonopolet, a tobacco monopoly owned by the Swedish state and founded in 1915, and Svenska Tändsticks Aktiebolaget (STAB), a match manufacturing company founded in 1917 by Ivar Kreuger (also known as the ”Match King”) in connection with the acquisition of Jönköpings Tändsticksfabrik.[2][6]
In 1992, the tobacco and lights operations were joined in the Procordia Group. Two years later, they were merged into an independent company named Swedish Match, which became publicly listed in 1996.[2]
Svenska Tändsticks AB (STAB)
In 1917, Ivar Kreuger founded Svenska Tändsticks Aktiebolaget (STAB) in Jönköping (also known as "City of the matches").[2][6] It was a merger between Aktiebolaget Förenade Tändsticksfabriker and Jönköpings & Vulcans Tändsticksfabriksaktiebolag.[2] A year later, STAB was listed on the Stockholm Stock Exchange.[2][7]
By expanding through acquisition of government-created monopolies by lending money to the governments, and through mergers with for instance the British match company Bryant and May in 1927, it became the world's largest match manufacturer.[6][8] In 1930, the company controlled 60 percent of the world’s match production and was the sole owner of match companies in 33 countries.[2]
Following the death of Ivar Kreuger in 1932, the ownership structure in STAB changed and a number of factories were liquidated. During 1938, STAB’s share of the world’s matchmaking fell to 20 percent.[2]
When the match market declined sharply in the 1950s, STAB looked for new business ventures and acquired more than 50 companies between 1968 and 1976.[2]
In 1980, Svenska Tändsticks AB changed its name to Swedish Match to create unity throughout the group.[2]
In 1988 the company was acquired by Stora AB and was sold two years later to Nederlight.[9][10][11]After another two years, Procordia acquired Swedish Match.[2]
AB Svenska Tobaksmonopolet
In 1915, the Swedish government founded AB Svenska Tobaksmonopolet and nationalized all Swedish tobacco production plants. The monopoly was introduced in order to give the government funds to finance the country’s military defense and a new national pension system.[2]
During the 1960s, the monopoly on production, import and sale of tobacco was abolished in Sweden. Svenska Tobaksmonopolet was converted to a new state-owned company named Svenska Tobaks AB.[2]
In 1971, the ownership of the tobacco group was transferred to Statsföretag AB, a state-owned conglomerate, which in 1984 was renamed Procordia.[2]
As a result of the monopoly being abolished and in order to broaden the market, the Dutch cigar company Elisabeth Bas/La Paz (EBAS), the American tobacco manufacturer Pinkerton Tobacco Company (maker of Red Man, a chewing tobacco brand introduced in the US in 1904) and the Dutch cigar producer Willem II were acquired between 1968 and 1989.[2][12]
In 1989, Procodia was listed on the Stockholm Stock Exchange. Volvo acquired part of Procordia in 1990 and became the principal owner together with the Swedish government.[2]
To complement the tobacco business, Procordia, in 1992, acquired the match and lighter company Swedish Match from Nederlight.[2]
Swedish Match AB
In 1992, the listed company Procordia acquired the match and lighter business named Swedish Match. The operations of Swedish Match were integrated with Procordia United Brands, one of Procordia’s business operations, and was renamed Swedish Match to take advantage of international name recognition. In 1994, Swedish Match functioned as an independent company and was later, in 1996, listed on the Stockholm Stock Exchange.[2]
In 1999, the company sold its cigarette manufacturing to Austria Tabak but is still active as a distributor of cigarettes on the Swedish market.[2]
In 2009, Swedish Match entered an agreement with Philip Morris International and formed the joint venture company SWPM International for exploring and developing new markets for snus and other smokefree tobacco products outside Scandinavia and the United States.[13] The companies have an ownership of 50 percent each in SWMP International.[14]
In 2010, Swedish Match and Scandinavian Tobacco Group (STG) formed a new company specialized in cigars. Swedish Match brought its entire cigar business (with the exception of U.S. mass market cigars) and pipe tobacco into the new company, while STG transferred all of its tobacco business. The new company took over the name Scandinavian Tobacco Group. Swedish Match became a partner with 49 percent of the company, and the remaining shares are owned by Skandinavisk Holding A/S.[2][15][16] [17] [18]
Operations
Snus, moist snuff, cigars, chewing tobacco, matches and lighters are Swedish Match’s main products.[19] They are developed, manufactured, distributed, marketed and sold through the company’s business units: Scandinavia Division, US Division, Lights Latin America, Lights International and Swedish Match Distribution AB.[20] [21]
Locations and factories
Swedish Match operates in nine countries and has production units in Brazil, the Dominican Republic, the Netherlands, the Philippines, Sweden and the US.[20] The company has 12 factories, of which ten, in 2012, had ISO 9001 certification and nine had ISO 14001 certification.[3][22]
The entity that produces matches in Sweden, Swedish Match Industries AB, is certified according to the Forest Stewardship Council chain of custody standard and the standard for controlled wood.[23] 40 percent of the production is sold in Europe and 60 percent to Africa, Central America, Oceania and the Middle East.[24]
The matches produced by Swedish Match are safety matches and the company’s main lighter brand, Cricket, is manufactured according to ISO 9994:2006.[23]
The table below presents an overview of Swedish Match's operations as of 2012:[3]
| Country | Activity | Factory | Number of employees |
|---|---|---|---|
| Sweden | Head office, production units and sales offices | Snus, matches | 1,000 |
| US | Production units and sales offices | Snuff, chewing tobacco | 1,000 |
| Dominican Republic | Production unit | Cigars | 800 |
| Brazil | Production units and sales offices | Lights | 700 |
| Philippines | Production units and sales offices | Lights | 200 |
| Netherlands | Production unit | Lights | 100 |
| Norway | Sales offices | No | 50 |
| Turkey | Sales offices | No | 20 |
| Belgium | Treasury and Public Affairs offices | No | 10 |
Workplace and safety
The largest numbers of employees are in the US, Sweden and the Dominican Republic. In 2012, 38 percent of the employees were women.[25]
Every year, Aon performs two audits of compliance at Swedish Match’s manufacturing facilities. They inspect supplier contracts, human rights, occupational health and safety within the areas of social responsibility, workplace practices, business ethics and environment, and the absence of child labor and forced labor.[23]
Market
While today's Swedish Match still produces matches, the majority of its sales and operating profits come from its smokeless tobacco products (snus and snuff) and other tobacco products (cigars and chewing tobacco).[3] In 2012, these tobacco products accounted for 61 percent of sales and 94 percent of Swedish Match’s operating profit, whereas matches and lighters accounted for 11 percent of sales and 6 percent of operating profit.[3]
Swedish Match generates most of its sales in Sweden and Norway, the US, and Brazil (98 percent of company sales in 2012) but also has a significant worldwide presence through its matches and lighters businesses.[3]
Snus and moist snuff
Scandinavia and the US are the primary markets for Swedish Match’s tobacco products. The company is market leader in snus in both Sweden and Norway. In 2012, the operating profit for snus and snuff was 2,349 MSEK, an 8 percent increase.[3] The market for Scandinavian snus and the US moist snuff/snus is approximately 1.7 billion cans per year (310 million cans in Scandinavia and 1.2 billion cans in the US).[26][27] The snus market in the US is about $175 million, and Swedish Match has about 10 percent of the market.[3][27]
Cigars and chewing tobacco
The US cigar market is estimated to 5 billion cigars in 2012, of which Swedish Match has 17 percent market shares. Two thirds of the chewing tobacco sold in the US is produced by Swedish Match. Chewing tobacco is a 250 million US dollar market (manufacturers’ sales). The operating profit for cigars and chewing tobacco was 1,049 MSEK in 2012, an increase of 11 percent.[3]
In addition, Swedish Match holds a 49 percent ownership in Scandinavian Tobacco Group (STG) which is the world’s largest cigar producer and manufactures more than 50 percent of the world’s pipe tobacco.[3][28]
Matches and lighters
Swedish Match supplies matches world-wide, and is market leader in the UK, France, Spain, Australia and Brazil.[3] In 2012, the operating profit for matches and lighters decreased by 8 percent to 222 MSEK.[3]
Main brands
Below are Swedish Match’s main brands along with market information as of 2012:[3]
| Product | Brand | Main markets | Market share | Competitors |
|---|---|---|---|---|
| Snus | General, Ettan, Grovsnus, Göteborgs Rapé, Kronan and Kaliber | Sweden Norway |
75 percent 66 percent |
BAT, Imperial Tobacco, Japan Tobacco |
| Moist snuff | Longhorn, Timber Wolf | US | 10 percent | Altria, Reynolds American |
| Cigars | White Owl, Garcia Y Vega, Game | US | 17 percent | Swisher, Altria, Imperial Tobacco |
| Chewing tobacco | Red Man, Southern Pride | US | 48 percent | Reynolds American, National Tobacco, Swisher |
| Matches | Solstickan, Fiat Lux, Swan, Feudor, Redheads, Tres Estrellas | UK, Scandinavia, Spain, Australia, Brazil | Market leader | |
| Lighters | Crickets | Russia, Brazil, Scandinavia, UK, France, Asia | Market leader | Bic, Tokai, Flamagas |
Market position and competition
Snus in Sweden
These are the market shares for snus in Sweden according to Nielsen, as of 12 week data to December 22, 2012.[3]
| Company | Market share |
|---|---|
| Swedish Match | 75 percent |
| BAT (F&L) | 11 percent |
| Imperial Tobacco (Skruf) | 9 percent |
| Japan Tobacco International | 5 percent |
Swedish Match's market share for snus in Sweden for the past six months was 73.2 percent according to Nielsen, six months data to June 16, 2013.[29]
Snus and snuff in the US
According to estimates by Swedish Match, these are the market shares for snus and snuff in the US.[3]
| Company | Market share |
|---|---|
| Swedish Match | 10 percent |
| Altria (USSTC) | 56 percent |
| Reynolds American (American Snuff Company) | 32 percent |
| Other | 1 percent |
Cigars
These are the market shares for cigars in the US according to Nielsen, as of 12 week data to December 22, 2012.[3]
| Company | Market share |
|---|---|
| Swedish Match | 17 percent |
| Swisher | 29 percent |
| Altria (Middleton) | 29 percent |
| Imperial Tobacco (Altadis USA) | 19 percent |
| Other | 7 percent |
Chewing tobacco
These are the market shares for chewing tobacco in the US according to Nielsen, as of 12 week data to December 22, 2012.[3]
| Company | Market share |
|---|---|
| Swedish Match | 48 percent |
| Reynolds American (American Snuff Company) | 20 percent |
| National Tobacco | 16 percent |
| Swisher | 14 percent |
| Other | 2 percent |
Swedish Match in the US
In the US, Swedish Match produces and distributes the Longhorn, Timber Wolf and Red Man brands of moist snuff.[30] The company also expanded into the United States premium cigar business by purchasing General Cigar Company Inc. (producer of non-Cuban versions of Macanudo, Partagas and Punch) from Edgar Cullman and El Credito Cigar Company (producer of La Gloria Cubana and El Rico Habano) from Ernesto Perez-Carrillo. In October 2010, the company transferred its US premium cigar and European cigar businesses, as well as its pipe tobacco and accessories businesses, to a new company named Scandinavian Tobacco Group, while receiving a 49 percent ownership stake in the new company.[31][32]
In an effort to expand its snus business outside of Sweden and Norway, the company has, since 2009, been selling its Scandinavian market leading brand of snus, General, at tobacco retailers in the US.[14] The distribution of General snus has increased over the years, from being sold in approximately 3,500 stores in 2011 to more than 10,000 store by the end of 2012.[3]
For the US, snus is a relatively new category. In the US, the main smokeless category is moist snuff. Moist snuff is made using a fermentation process and usually placed under the lower lip, requiring spitting. Snus is made using a steam heat process (much like pasteurisation) and is usually placed under the upper lip, which means that spitting is not necessary.[27]
International Expansion
Cooperation between Swedish Match and P.T. Jamafac, which began in 1971 and expanded in 1996, has now been formalized in a joint venture agreement aimed at strengthening Swedish Match's position in Southeast Asia. In 1999, Swedish Match signed an agreement to acquire 40 percent of Indonesia's largest producer of matches, P.T. Java Match Factory (P.T. Jamafac). The company has production units in Jakarta and Bandung. As of February 2009, it was announced that Swedish Match collaborated with Phillip Morris International in a joint venture, effectively testing various international markets. Their aim was to expand the Swedish Match smokeless product line outside of the US and Scandinavian markets.[33] The collaboration placed test markets in Tel Aviv, Israel; St. Petersburg, Russia; Taiwan, and nation-wide Canada. In Swedish Match's 2012 Q3 Interim report, CEO Lars Dahlgren commented, "In the US, General snus is now available in more than 9,000 retail outlets. We will continue to invest behind the brand and expand distribution, and expect to be in more than 10,000 stores by the end of the year. Test market activities for snus through SMPM International continue in Canada, and St. Petersburg, Russia, and we have now added Tel Aviv, Israel, as another test market."[34]
Key people
Lars Dahlgren (born 1970) is President and CEO of Swedish Match.[3]
Conny Karlsson (born 1955) is chairman of the board since 2007 and board member since 2006.[3]
As of the annual general meeting 2012, Swedish Match had the following board of directors:[3][35]
| Name | Year of birth | Position | Year elected |
|---|---|---|---|
| Conny Karlsson | 1955 | Board chairman | 2007 |
| Andrew Cripps | 1957 | Deputy chairman | 2006 |
| Karen Guerra | 1956 | Board member | 2008 |
| Wenche Rolfsen | 1952 | Board member | 2013[36] |
| Robert F. Sharpe | 1952 | Board member | 2011 |
| Meg Tivéus | 1943 | Board member | 1999 |
| Joakim Westh | 1961 | Board member | 2011 |
| Kenneth Ek | 1953 | Employee representatives | 1999 |
| Eva Larsson | 1958 | Employee representatives | 1999 |
| Håkan Johansson | 1963 | Employee representatives | 2004 |
President and CEO:[3]
Lennart Sundén, 1998-2004
Sven Hindrikes, 2004-2008
Lars Dahlgren, 2008-
Ownership
As of December 2012, according to Euroclear Sweden, these were the 10 largest shareholders of Swedish Match:[3]
| Shareholder | Number of shares | Percent of capital | Percent of votes |
|---|---|---|---|
| Morgan Stanley Investment Management | 13 144 520 | 6.4 | 6.6 |
| AMF försäkring & fonder | 5 802 900 | 2.8 | 2.9 |
| Fidelity Funds | 5 762 901 | 2.8 | 2.9 |
| Swedbank Robur fonder | 4 839 470 | 2.3 | 2.4 |
| Standard Life Investment Funds | 4 361 387 | 2.1 | 2.2 |
| Capital Group Funds | 3 179 000 | 1.5 | 1.6 |
| SHB fonder | 2 782 587 | 1.4 | 1.4 |
| Fjärde AP-fonden | 2 358 888 | 1.1 | 1.2 |
| Andra AP-fonden | 2 006 107 | 1.0 | 1.0 |
| Parvus Asset Management | 1 943 000 | 0.9 | 1.0 |
| Sum | 46 180 760 | 22.4 | 23.2 |
See also
References
- ↑ "Nasdaq OMX Nordic". Nasdaq OMX Nordic. Retrieved 15 July 2013.
- ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 "Company history". Swedish Match. Retrieved 19 July 2013.
- ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 "Annual Report 2012" (PDF). Swedish Match. Retrieved 15 July 2013.
- ↑ "Company presentation 2012" (PDF). Swedish Match. Retrieved 18 July 2013.
- ↑ "Nasdag OMX Nordic". Nasdaq OMX Nordic. Retrieved 15 July 2013.
- ↑ 6.0 6.1 6.2 "The match king". The Economist. 19 December 2007. Retrieved 2 December 2013.
- ↑ "Näringslivets utveckling i Sverige under åren 1859-1929". Stockholm Albert Bonniers Boktryckeri. 1929. Retrieved 4 October 2013.
- ↑ "Svenska Dagbladets årsbok / Femte årgången (händelserna 1927)". Svenska Dagbladet. 1927. Retrieved 4 October 2013.
- ↑ "Swedish Merger for $983 Million". The New York Times. 10 March 1988. Retrieved 23 August 2013.
- ↑ "The companies concerned". Competition Commission. Retrieved 23 August 2013.
- ↑ "Swedish Company To Sell Operations". The New York Times. 9 October 1990. Retrieved 23 August 2013.
- ↑ "Red Man - tuggtobakens flaggskepp". Swedish Match. 16 August 2007. Retrieved 2 October 2013.
- ↑ http://www.swedishmatch.com/Reports/2009/20090203-swedish-match-and-philip-morris-international-announce-global-joint-venture-to-commercialize-smokefree-tobacco-products-en-1-429789.pdf
- ↑ 14.0 14.1 "Annual Report 2009". Swedish Match. Retrieved 3 October 2013.
- ↑ "Annual report 2010". Swedish Match. Retrieved 3 December 2013.
- ↑ "Scandinavian Tobacco Group signs Letter of Intent with Swedish Match to form a worldwide company with focus on cigars and pipe tobacco". Scandinavian Tobacco Group. 15 January 2010. Retrieved 23 August 2013.
- ↑ "Swedish Match slutför transaktionen med Scandinavian Tobacco Group". Swedish Match. 4 October 2010. Retrieved 10 September 2013.
- ↑ "Skandinavisk Holding will through Scandinavian Tobacco Group form the world’s second largest cigar company and strengthen its position as world leader in pipe tobacco". Scandinavian Tobacco Group. 26 April 2010. Retrieved 11 September 2013.
- ↑ "Our company in brief". Swedish Match. Retrieved 15 July 2013.
- ↑ 20.0 20.1 "Organization". Swedish Match. Retrieved 18 July 2013.
- ↑ "Swedish Match names President of reorganized Scandinavia Division and new Chief Financial Officer". Swedish Match. Retrieved 9 September 2013.
- ↑ "ISO certifications" (PDF). Swedish Match. Retrieved 18 July 2013.
- ↑ 23.0 23.1 23.2 "2012 Swedish Match and Sustainability" (PDF). Swedish Match. Retrieved 18 July 2013.
- ↑ "Our factories". Swedish Match. Retrieved 17 July 2013.
- ↑ "Employee related indicators". Swedish Match. Retrieved 18 July 2013.
- ↑ "Market". Swedish Match. Retrieved 18 July 2013.
- ↑ 27.0 27.1 27.2 Chris Burritt, Katarina Gustafsson (8 July 2013). "Swedish makers want snuff dippers to give up the spit". News & Obeserver. Retrieved 18 July 2013.
- ↑ "Group Annual Report 2012". Scandinavian Tobacco Group. Retrieved 5 September 2013.
- ↑ "Swedish Match: Andel sv snusmar 72,7% (73,2) 4v t 16/6-Nielsen" [Swedish Match: Market share of snus market 72.7% (73.2) 4 weeks to 16 June-Nielsen]. Svenska Dagbladet. 27 June 2013. Retrieved 18 July 2013.
- ↑ Smokeless in the US, Timber Wolf a solid success - Swedish Match
- ↑ "U.S. cigar sales spike boosts Swedish Match Q4". Reuters. 23 February 2011. Retrieved 13 March 2011.
- ↑ "Swedish Match completes transaction with Scandinavian Tobacco Group" (Press release). Swedish Match. 4 October 2010. Retrieved 13 March 2011.
- ↑ http://www.swedishmatch.com/Reports/2009/20090203-swedish-match-and-philip-morris-international-announce-global-joint-venture-to-commercialize-smokefree-tobacco-products-en-1-429789.pdf
- ↑ http://www.swedishmatch.com/Reports/Interim%20reports/2012-Q3-EN.pdf
- ↑ "Board of Directors". Swedish Match. Retrieved 16 July 2013.
- ↑ "Press release: Annual General Meeting 2013". Swedish Match. Retrieved 18 July 2013.
