Mario Gabelli Comments on Swedish Match

Swedish Match AB (OSTO:SWMA) (four.8%) (SWMA – $fifty one.55/SEK 482.80 – Stockholm Stock Exchange) generates

Swedish Match AB (OSTO:SWMA) (four.8%) (SWMA – $fifty one.55/SEK 482.80 – Stockholm Stock Exchange) generates tobacco items that include snus and snuff, chewing tobacco, cigars, and lights. The firm has been benefiting from the growth of the smokeless tobacco current market in the two Scandinavia and the U.S., as community using tobacco bans and overall health fears are driving customers to seek out alternate tobacco items to cigarettes. In Oct 2010, Swedish Match merged its European and premium cigar portfolios with Scandinavian cigar and pipe tobacco firm STG, developing a new company that must benefit from increased scale and synergies. In February 2016, STG went community by means of an IPO on the Copenhagen Stock Exchange, with Swedish Match totally exiting its stake by 2017. The firm has a tobacco-absolutely free nicotine pouch product or service called ZYN that is escalating speedily in the U.S. and Scandinavia, and is driving growth in its mass current market cigar business as a result of its new normal leaf items. In Oct 2019, the company’s Common Snus model was deemed a modified risk tobacco product or service (MRTP) by the Food and drug administration. We anticipate Swedish Match to go on to grow its cigar and smokeless business globally, and the firm could be an eye-catching takeover prospect for a world wide tobacco firm that wants to improve its presence in the smokeless section.

From Mario Gabelli (Trades, Portfolio)’s Gabelli Worth 25 Fund fourth-quarter 2019 shareholder commentary.

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Sydnee Gatewood

I am the editorial director at GuruFocus. I have a BA in journalism and a MA in mass communications from Texas Tech College. I have lived in Texas most of my life, but also have roots in New Mexico and Colorado. Follow me on Twitter! @gurusydneerg

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