Output Explorer

A:
Camel Snus is a different product made with a different process. Our test product
will be pasteurized and not fermented, as is Revel. Our initial research has
shown consumer interest, so that's why we're going to test market to learn more.
Q:30: Where does the tobacco come from?
A:
For competitive reasons, we can't discuss that.
Q31: Why aren't you pursuing the moist snuff category, which has a proven track
record, rather than trying to carve out a niche with no U.S. demand?
A:
Our snus is moist snuff - with a difference; it is pasteurized, comes in a pouch
and is spitless. This is a test market to generate learning.
Q32:
Who is the expected consumer for Camel Snus? Smokers? Moist snuff users?
A:
We expect interest from both adult smokers and moist snuff users. That's the
reason for the test markets. We may find that that snus use and smoking
interchangeable - adult tobacco users may smoke and when they don't smoke
they may snus, and vice versa.
Q33:
Are you concerned about cannibalism of your current smokers, especially Camel
smokers?
A
We may find that that snus use and smoking are not exclusive of one another-
adult tobacco users may smoke at times and when they don't or can't smoke, they
may snus. That's part of what we hope to learn in the test.
Q34: Are profit margins from snus, for which you will have to pay contract
manufacturing fees, special packaging fees, transcontinental transportation,
special storage fees for refrigerated facilities, etc. going to be anywhere close to
those of moist snuff products or cigarettes?
A:
That would be competitive information that we would not discuss.
Q:35 Does your test marketing of snus preclude you from making an acquisition in the
smokeless category? Does this mean you are more interested in organic growth
versus growth by acquisition?
A:
No, this test market does not preclude other opportunities. We have consistently
said that we would evaluate opportunities within the tobacco category provided
they would be accretive to earnings and are businesses to which we believed we
could bring value. The Camel Snus test market doesn't change that
Q36: Can you give us some basic background facts: size of snus market in Sweden and
its historical growth there? Recent growth trends in the U.S. moist snuff market?
A:
There are one million users of snus in Sweden. The nation has slightly more than
9 million total population. More people in Sweden use snus than smoke.
Q37: Is snus considered a "gateway" product in Sweden?
Source: https://www.industrydocuments.ucsf.edu/docs/gpfl0225
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