Big Tobacco Manufacturers Launch New Products

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The two leading U.S. tobacco enterprises - Reynolds American Inc and Altria Group Inc were the first who spread the distribution of snus, a moist snuff tobacco that it is so popular in Scandinavian countries, as they search for products to sell to those smokers who are trying to stop smoking.
Snus hasn’t produce any boom since Swedish Match AB brought it to the United States 10 years ago, and the promotion of this new smokeless product has not driven enough profits to move tobacco companies’ focus away from regular cigarettes. “Tobacco manufacturers for sure see smokeless cigarettes as a longterm piece of the business. But even though it is a growth category and tobacco products are decreasing,[link widoczny dla zalogowanych], it is still a small part of the overall business,” Morningstar analyst Phil Gorham stated.
Smokeless tobacco products in total represent about 2 % of all tobacco companies’ gains, snus comprises about 0.5 % of moist snuff sales in the United States, according to Euromonitor data. Gorham stated that the aim of smokeless products and snus in general has been to permit cigarette manufacturers to hang on customers who want to stop smoking.
Manufacturers connect snus to leading cigarette brands, promoting it as a cheaper and safer alternative to quit. Such leading cigarette manufacturers as Altria and Reynolds already have snus variants, and a partnership between Philip Morris International Inc and Swedish Match is being tested in South Africa. “The purpose of such new smokeless products is to prolong the period of time over which they can raise money from smokers who are trying to stop smoking,” Gorham concluded.