Monday, 07 June 2010 07:46

Snus Price Increase Goes Into Effect

Written by SnusCENTRAL Wire Services
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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

Read 4375 times Last modified on Saturday, 09 November 2013 03:08

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