Snus Price Increase Goes Into Effect

Written by SnusCENTRAL Wire Services Monday, 07 June 2010 06:46

Swedish Snus users in America have more pain coming

Once again, consumers pay the price in punitive tobacco taxation. In light of the high tobacco taxes, the price of Swedish snus has increased during the last few years. Monday, June 7th 2010, the leading snus manufacturer in Sweden, Swedish Match, will raise its prices an additional 4 percent, Henrik Brehmer, Senior Vice President Corporate Communications, says. This time, the raise is due to an increase in the price of raw materials.

EU Member of Parliament Christofer Fjellner, representing Moderaterna, sees a potential risk of more people taking up smoking as the price of snus goes up. "It would be wrong for the price of snuff to be higher than that of cigarettes", Fjellner says. The last time this occurred, cigarette use, which is only at 11% currently in Sweden, jumped dramatically.

Competitor to Swedish Match, Granit, increased its prices with SEK 2.00 recently and manufacturer Skruf will during the summer decrease the amount of snus per portion from 24 g to 22 g. None of the snus consumers asked in the article think the price increase will affect their habits significantly. Jon Mether from Eslöv is too hooked on snus to not buy it, he says.

The PACT Act and FDA smokeless tobacco regulation under the Tobacco Control Act

The Big Government Bell will toll three times for Americans in the next three weeks. The first was today with the manufacturer price increases/snus decreases mentioned above. On June 22nd 2010, the smokeless tobacco component of The Tobacco Control Act will take affect. Snus Manufacturers who have not registered with FDA and supplied ingredients/process information will no longer be allowed to have their snus products sold in or into the United States. As of today, the most high profile of these is skruf AB, manufacturers of the popular skruf and Knox Swedish snus brands.

On July 1st, 2010 the infamous PACT Act will go into effect. PACT will prohibit all tobacco deliveries (except cigars) via the United States Postal Service. The other common carriers such as UPS, DHL, and FedEx will have the option of choosing to deliver tobacco products or not without penalty. All packages must be identified as tobacco products, must state that all Federal, State, and Local taxes were collected at time of sale, and require a delivery receipt signature from a person of legal age to purchase tobacco products.

For Americans, this will mean a very large increase in the price of snus and other tobacco products and a reduced selection; especially of Swedish snus.

From Wire Services and SnusCENTRAL Staff

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7 Comments

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feck makes this comment

Monday, 07 June 2010

Great, just what we need right now.
hwagner makes this comment

Monday, 07 June 2010

So what are the increased shipping prices going to look like?
Andrew Romeo makes this comment

Tuesday, 08 June 2010

Snus excise was not touched for almost a decade before the great hikes of 2007 (100%) and 2008 (50%). Several manufacturers, Gallaher included, lobbied for excise hikes, because they are the easiest way to hide ex-factory/pre-excise price-hikes which directly affect unit profitability.

One major statistic we do not have is current Scandinavian volumes. The aforementioned excise hikes slashed volumes by over 10% almost immediately in Scandinavia. Some was due to pre-excise retail promotions, where Swedish Match dumped an extra month into retail (with a 'mysterious' month added to their expiration dates).

The market had not recovered come 2008, most likely as loose users were unfairly targeted by the weight-based excise (50g vs. 24g). This price hike may be a compensatory measure to make up for inadequate market volumes. Most estimates assumed the Swedish market would be at 250m cans per year by now. Chances are, it has remained at 200m or below.
Imurdaddy makes this comment

Wednesday, 09 June 2010

I read this on another site, any comments?
"Keep in mind that the bill only affects retailers who operate within the United States. Companies who sell tobacco products online and not within U.S jurisdiction will be able to carry on with their sales without many problems."
Bill makes this comment

Thursday, 10 June 2010

This really bites. I don't have the cash right now to stock up either. Looks like I will have to make these 15 cans last as long as possible. $:\$
Larry Waters makes this comment

Thursday, 10 June 2010

@ hwagner....Don't know yet. We are still negotiating shipping prices.

@ lmurdaddy.... That is a credible argument. Unfortunately the opposite could also be credible considering how vague PACT and TCA both are. The courts will ultimately decide with only the lawyers being the sure winners.
Mike makes this comment

Monday, 02 August 2010

Anymore the Government is run by a bunch of mony grubbing fools.

The Pact act, will:

1. Create a black market.
2. Cause People to lose jobs, in an already bad economy.
3. Some poeple will just quit, Thus they still don't get their tax money.
4. People will just start ordering from places like japan, and shipper's will get creative on how to ship them to you, like 2 cartons at a time with registard mail, which can only be opend or stoped from delivery with a court order.
5. It will help fund anit-american, organzations, who will get in to the black market business of selling smokes etc.
6. The current USPS, does not have the money or man power to enforce this, other;s like UPS, DHL, do not either, if they are forced to inspect evey package, You will See the cost go way up to shipp anything, any place.

The Government, Are Vary Socialistic, only care about linging the own pockets, and getting re-elected, so they can stick it to us some more.. Fools!