Philip Morris also sheds light on the battle by putting in a bid for the Swedish Match company

n light of the $16 billion bid by Philip Morris International to purchase smaller rival Swedish Match, the pressure among cigarette companies to find new and possibly less dangerous alternatives is highlighted. Swedish Match demonstrates the pressing need for cigarette manufacturers to seek for new, less dangerous options.UWOO Ym Heated Tobacco | Device For IQOS Cigarette

Marlboro cigarette maker Philip Morris has agreed to acquire one of the world’s major makers of oral nicotine products, Swedish Match. For example, there is Snus, a sucked tobacco product that the firm says happens to be safer than smoking; and there is Zyn, a nicotine pouch that does not contain tobacco but is used in a similar fashion to Snus.

Both goods have a narrow target audience, but interest in them is growing. With more than half of the global market for tobacco-free oral nicotine products, Swedish Match outranks British American Tobacco and Altria Group.

For PMI’s smoke-free goods, such as iQOS tobacco heating devices, the tie-up with Swedish Match represents a “new arena,” which holds shares in both companies. PMI’s smoke-free goods now have a “new area” to explore.

It’s a merger which would continue the industry consolidation that has been going on over the last decade. A transaction like this would keep the trend going. US-based investment vehicle owned 0.47 percent of PMI, and 0.09 percent of Swedish Match, according to data published by Refinitiv.

As the government’s monitoring of the cigarette business has intensified, and as the number of people quitting smoking has risen, tobacco companies have been scrambling to find new markets.

If you’re looking for an alternative to smoking cigarettes, snus, or Swedish snuff, may be what you’re looking for. A kind of snuff that originated in Sweden, snus is known as snust. Global snus sales rose from 7,000 metric tonnes in 2008 to nearly 10,000 metric tonnes in 2019, according to market research firm Euromonitor.

Swedish Match’s Snus was given the green light in 2019 to be promoted as a safer alternative to cigarettes by the US Food and Drug Administration.

 

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