Following several warnings and, finally, a law suit by the European Commission, the Danish government bowed to the pressure and passed a new law banning loose Swedish-style snus from 1 January 2016. The sale of snus has, technically, been banned in all EU countries, except Sweden, since 1992. However, the Danish government had only implemented a ban on portion snus while allowing the sale of loose snus to continue. The immediate impact of the snus ban has been to effectively wipe out a subcategory that accounted for retail value sales of DKK20 million in 2015.
Scandinavian Tobacco Group was the leading player in smokeless tobacco in 2015, with a 33% share of retail volume sales. However, as all of its sales were derived from snus, the company has effectively seen its share in smokeless tobacco wiped out. Chewing tobacco was a negligible contributor to Scandinavian Tobacco Company’s revenue in Denmark. However, the ban on snus is expected to have a minimal effect on the company’s strategy in Denmark, which remains focused on smoking tobacco and cigars.
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This industry report originates from Passport, our Tobacco market research database.