Sweden seeks elimination of EU ban on snus
While European Union member countries implement various smoking restrictions, Sweden is seeking to crack down the ban imposed by EU on snus, a tobacco product commonly used in Northern Europe by chewing or sucking moist tobacco pouches.
Snus look like tea-bags but contain tobacco and are placed between gum and check providing a nicotine shot and a nice herbal flavor.
According to sales reports, snus are used by approximately one million of Swedish adults.
As sales of other tobacco products have decreased by almost 50 percent over last three decades in Sweden, snus sales keep rising with sale volumes going up from less than 2,500 tones annually 30 years ago to more than 7,500 tones last year.
It means that the average snus consumer used almost 800 pouches in 2008.
This smokeless tobacco product is as well heavily popular in other Scandinavian countries.
For example, more 400,000 people bought snus last year in neighboring Norway, which is not a EU member state. In addition, up to 100,000 Finland residents traveled to Sweden in order to buy snus, according to Swedish Chamber of Trade.
Currently, Sweden is the only country across the European Union to sell the snus, as it has been exempted from the EU-wide ban on snus sales implemented back in 1992.
As the governments of the majority of EU member countries have imposed or are in the process of approving strict anti-smoking policies in public places, tobacco companies are eager to develop this market segment as it promises to be very beneficial.
Swedish Match, the leading snus maker in Sweden earned as much as 660 million euros ($ 965 million) in after-tax revenues last fiscal year.
The ban on snus sales could be revised next year, and tobacco industry is massively supporting the elimination of the ban, which would allow them sell the smokeless tobacco items throughout the EU states.
In the beginning of 2009, Philip Morris International acquired controlling interest in Swedish Match whereas British American Tobacco, the fourth largest tobacco company in the world, purchased Fiedler & Lundgren, Swedish Match’s main rival in Swede tobacco market.
Thomas Johansson, spokesman for Swedish Match admitted that the company has been working on developing new extensions to existing brands, and the elimination of snus ban would be very helpful in expanding their portfolio.
As snus are becoming more and more popular in the United States, Canada, Australia and South Africa, the ban prevents these smokeless items to spread across EU.
Therefore, local tobacco industry managed to persuade the Swedish government to call for revision of the ban, while presiding at EU parliament, along with other vital topics.
Eva Borg, Sweden’s Minister of International Trade said that other tobacco products such as moist snuff are not banned in EU, so it is discriminatory to ban snus. She added that Sweden is home to EU lowest smoking rates.
However, Swedish authorities and snus manufacturers have to convince Brussels, which is a rather difficult task, since public health experts keep warning EU lawmakers about the health complications related to the use of snus.
