british american tobacco p.l.c. sustainability report 2009 - Spotlight on snus

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SUSTAINABILITY REPORT 2009
 

South Africa and Canada test markets

We started test marketing snus in 2005. In South Africa, we trialled snus under our Peter Stuyvesant and Lucky Strike brands. The original 240 Johannesburg retail outlets have been extended to 800, including outlets in Pretoria and East Rand, and Cape Town.

Two key issues remain problematic in South Africa: awareness by consumers of this new category and their understanding of the product. Our research suggests that few adult smokers see snus as potentially less harmful than cigarette smoking and many believe that it could even be more harmful. However, insights gained from the test market have enabled us to develop our snus product offerings to better meet consumer preferences.

The test market established in 2007 in Edmonton, Canada, was expanded in 2008 to Ottawa. It has been difficult to obtain consumer insights in this market as retail display bans and other tobacco control regulations have meant low levels of consumer awareness and trial of the snus products.

Snus in the Nordics

We continue to see market share growth in Norway and Sweden, where snus is an existing category and where we sell snus under the Granit, Mocca and Lucky Strike brands. Our market share at the end of 2009 was 10 per cent in Sweden and 4 per cent in Norway. Lucky Strike market share more than doubled with the launch of a new snus, Lucky Strike Bold.