Swedish Match (SW) produces and sells smoke free tobacco products, cigars and lights. The company’s strategy is to be the global leader in smokeless tobacco products with most sales occurring in Scandinavia and the US. 2/3 of SW’s profits are earned through Snuff products, mostly in Sweden and Norway where it has 86% and 73% market share respectively. In 2010, SW partly spun off its higher end smoking tobacco product division into Scandinavian Tobacco Group, so that SW could strategically focus on smokeless tobacco. There is a large potential in the US and other countries for smokers who want to receive nicotine in a safer way, and SW believes that smokeless tobacco is a large part of the solution. SW has entered a partnership with Phillip Morris to promote Snus in test markets, which could lead to strong sales in the long run as smokers are switching to less dangerous tobacco products. Sweden has been pressuring the EU to legalize the use of Snuf and Snus ,which could give SW access to a large undeveloped market. Regulatory and excise tax changes remain a large risk to the SW.