Swedish Match and Philip Morris International Announce Global Joint Venture to Commercialize Smokefree Tobacco Products
NEW YORK, Feb 03, 2009 (BUSINESS WIRE) -- Regulatory News:
Swedish Match AB [publ] and Philip Morris International [NYSE/Euronext
Paris: PM] (PMI) today announced that they 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 United States.
The joint venture will utilize the strong combination of 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 will license their respective
trademarks and intellectual property to the joint venture.
"PMI is the ideal strategic partner for Swedish Match in the smokefree
category. This agreement provides us with the opportunity to bring our
quality products to consumers across a broader geography," said Lars
Dahlgren, Swedish Match President and CEO. "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."
"We are delighted to join forces with Swedish Match and are confident
that this exclusive partnership will over time generate strong results
for the benefit of our respective shareholders," said Louis Camilleri,
Chairman and CEO of PMI.
Snus has been recognized by many in the scientific and public health
community to be significantly less harmful than cigarette smoking. Both
companies believe that there is a role for Snus to play in tobacco harm
The joint venture will be based in Stockholm and the board of directors
will consist of six members, with three nominated by each company.
About the companies:
Swedish Match is a global Group with a broad offering of market-leading
brands in the smokefree tobacco, cigar, pipe tobacco and lighter and
match product categories. The Group's global operations generated sales
of 13,061 million SEK for the twelve month period ending September 30,
2008. Swedish Match shares are listed on the OMX Nordic Exchange in
Philip Morris International (PMI) [NYSE/Euronext Paris: PM] is the
leading international tobacco company, with seven of the world's top 15
brands including Marlboro, the number one cigarette brand
worldwide. PMI has more than 75,000 employees and its products are sold
in over 160 countries. The Company held an estimated 15.6% share of the
international cigarette market outside of the United States in 2007.
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