Swedish Match AB and Philip Morris International (PMI) have entered into an agreement to establish an exclusive joint venture company to commercialize Swedish Snus and other smokefree tobacco products worldwide, outside of Scandinavia and the U.S.
The joint venture will use Swedish Match’s product development and manufacturing expertise in the smokefree category and PMI’s extensive sales and distribution infrastructure to develop business opportunities worldwide.
Under the agreement, each company will own a 50% stake and license their respective trademarks and intellectual property to the joint venture.
“PMI is the ideal strategic partner for Swedish Match in the smokefree category,” said Lars Dahlgren, Swedish Match president and CEO. “This agreement provides us with the opportunity to bring our quality products to consumers across a broader geography. The smokefree category has demonstrated substantial growth in Sweden and Norway over a number of years and we believe that smokefree tobacco products, and especially Swedish Snus, have potential outside of their current markets.”
Snus has been recognized by many in the scientific and public health community to be significantly less harmful than cigarette smoking. Both companies believe there is a role for Snus to play in tobacco harm reduction.
The joint venture will be based in Stockholm and the board of directors will consist of six members, with three nominated by each company.