Two new management roles and a merger of Swedish Match and Philip Morris operations in Sweden. That will be the new deal when tobacco giant PMI merges with the largest snus manufacturer in Sweden and at the same time invests in more smoke-free products.
Since Phillip Morris bought snus manufacturer Swedish Match in April, the companies have operated in parallel. But after January 1, a new organization within PMI will take over the trade in Sweden. This is announced by PMI in a press release. The aim is to merge PMI's operations with Swedish match, as part of the cigarette manufacturer's goal to eventually stop selling cigarettes. At least if everything goes according to plan.
"It feels great to be part of building and leading this joint organization where we will work together with the common goal of creating a smoke-free society," says Anna Hällöv, former head of Business Unit Sweden within Swedish Match, who will now lead the new organization.
Philip Morris International has for several years announced the ambition to phase out cigarette sales. Instead, the multinational tobacco company wants to earn more from smoke-free products, such as e-cigs, heat-not-burn and perhaps above all different varieties of snus. According to PMI's CEO Jacsek Olczak shall at least 35 percent of revenue from smokeless alternatives to cigarettes in the near future. The company took a big step in that direction since the purchase of snus manufacturer Swedish Match became a fact, in the fall of 2022.
Push for more harm reduction
As previously reported by Vejpkollen PMI's purchase of Swedish Match received mixed reactions.
"The deal can definitely have an impact on harm reduction around the world. This is particularly true in low- and middle-income countries where smoking is very prevalent and few alternatives are available. Snus could play an important role in these countries. And PMI is one of the few companies that has the financial muscle to change the conditions there" said Harry Shapiro, the author of the reports in the series Global State of Tobacco Harm Reduction, when the deal went through.
Responsibility for the international launch of snus and nicotine pouches now falls to Richard Wernemar, who previously shared responsibility for the Swedish market with Anna Hällöv.
"I am very excited to have the opportunity to step up to the global team and take on the challenge of driving the transformation journey and expanding nicotine pouches internationally" says Richard Wernemar in a press release.
