New Red Man Snuff to Hit Shelves

By JOHN REID BLACKWELL

Another smokeless tobacco brand with a familiar name will appear at stores soon as tobacco companies look to grab a share of the growing category.

Chesterfield County-based Swedish Match North America, a maker of snuff, chewing tobacco and cigars, said yesterday that it will test- market Red Man moist snuff starting Sept. 1 in 11 states, including Virginia.

The snuff product draws on the popularity of the company’s Red Man chewing tobacco, a brand that is more than 100 years old and commands a 40 percent market share of the chewing tobacco category, Swedish Match executives said.

"We had the heritage and the quality already built in, and we went with a value price," with the new Red Man snuff product, said Elliot Eliades, director of new product development for Swedish Match North America. He said Red Man snuff will sell at a lower price than other premium snuff brands.

The new Swedish Match product comes as tobacco companies focus more attention on smokeless as a growth category. While cigarette sales have been largely flat or declining, sales of moist snuff have been growing, rising about 10 percent this year.

The fast-growing category has prompted cigarette companies to delve into the smokeless market, including Henrico County-based Philip Morris USA.

The top U.S. cigarette maker is test-marketing two smokeless products as an alternative for smokers. Reynolds-American Inc., the second-largest U.S. cigarette company, entered the category last year by acquiring smokeless tobacco maker Conwood LLC.

Swedish Match North America, a division of Sweden-based Swedish Match AB, has about 11 percent of the U.S. moist snuff market.

Its retail sales rose 19 percent in the 20-week period that ended July 14, posting the fastest sales growth of any smokeless company, the company said, citing an A.C. Nielsen report.

"We have got a solid foundation going forward," said Clark Darrah, the company’s director of marketing for smokeless products.

The growth in smokeless also has raised concerns among tobacco- control advocates.

"In the absence of government regulation, the likelihood is that increased marketing for smokeless tobacco products will lead to more tobacco users," said Matthew Myers, president of the Campaign for Tobacco-Free Kids.

Legislation pending in Congress would give the Food and Drug Administration authority to regulate tobacco products, including smokeless. Swedish Match executives have said they support regulation of the industry but are concerned about marketing restrictions in the proposed legislation.

Gregory N. Connolly, a professor of public health at Harvard University who follows the smokeless industry, said he believes the growth in smokeless products is attributable partly to an increase in indoor smoking bans and cheaper prices for smokeless tobacco compared to cigarettes.

"I think the public-health community’s concern is people using both cigarettes and smokeless," he said. "If they do, it may make it harder for people to quit using tobacco."

Eliades said Swedish Match is targeting current users of smokeless products, not smokers, with Red Man snuff.

"We have heard about smokers coming into our category," he said. "That is not who we are going after."

Contact John Reid Blackwell at (804) 775-8123 or jblackwell@timesdispatch.com.

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