NEW YORK ? Swedish Match AB, maker of snus in Scandinavia, is planning to bring its popular brand into the U.S. marketplace, the Wall Street Journal reports.
The company is unveiling two new versions of its General brand in the U.S., Nordic Mint and Classic Blend, ?and sharply expanding retail distribution starting this month. Initial markets will be Chicago, Dallas and Philadelphia,? reports the newspaper.
WSJ adds that snus account for about 2.5% of smokeless-tobacco sales in the United States. Popular snus brands in the U.S. are R.J. Reynolds? Camel Suns and Altria Group?s Marlboro Snus and Skoal Snus.
?We think snus in the U.S. is going to be a big category,? Clark Darrah, vice president for next-generation products for Swedish Match?s U.S. division, told the newspaper, adding, ?Globally, this is the biggest opportunity that we have.?
Swedish Match controls about 85% of the snus market in Sweden and about 70% of the market in Norway. Darrah acknowledged that the company faces a significant challenge in trying to gain retail-shelf space in the U.S., where Altria and Reynolds dominate the cigarette and smokeless categories. ?What we need to do is sell the opportunity to the retailer,? he told the newspaper.
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