November 17, 2010 -
Background: Altria Group Inc said on Tuesday, January 6, 2009 it completed its $10.4 billion acquisition of UST, Inc. greatly expanding Altria's presence in the faster-growing smokeless tobacco segment. (Altria completes UST acquisition..)
U.S. Smokeless Tobacco Co. (in 2001 U.S. Tobacco Company changes its name to U.S. Smokeless Tobacco Company - UST)
UST has had a Swedish-style SNUS product known as Revel since August 2001. In July 2006 UST came out with a similar product to Revel called
Skoal Dry Tobacco Packs which was test marketed in Louisville, KY and in Austin, TX going head-to-head with Camel Snus. Skoal Dry came in three flavors: regular, menthol and cinnamon and was selling for $3.50 - $4. a pack or about the same as a pack of premium cigarettes. Each can continued 20 tobacco pouches. (Tobacco Journal International August 3, 2006)
As of August, 2008, Skoal Dry was discontinued and replaced by Skoal SNUS available in three flavors: mint, cinnamon, and citrus blend.. UST, Inc. Executives Very Disappointed in Sales of the Entire SNUS Segment..
In January 2009, soon after Altria acquired UST, Philip Morris (PM) USA announced that it was discontinuing Marlboro MST. At this time Michael Szymanczyk (now Chairman, Chief Exec. Officer of the Altria Group, Inc.), stated there’s no plan right now, relative to the UST Snus products (Skoal Dry now named Skoal snus). We’ve got to get involved in that and understand it better before we’ll make any decisions about it. (PM USA - discontinues Marlboro Moist Snuff & revamps Marlboro Snus..)
How can Skoal SNUS succeed when Marlboro SNUS is failing?? When Marlboro SNUS and Marlboro MST were introduced then Citigroup's Tobacco Analyst Bonnie Herzog told investors that PM USA will fully cement its place in the smokeless segment using the power of the Marlboro brand (8/21/2007). Well this did not HAPPEN.. Nik Modi, a UBS tobacco analyst has stated, "The Marlboro brand name is not as transferable as many originally believed." The guys that know the smokeless tobacco category tell us history clearly shows that it is difficult to extend brands from one category to another. (Marlboro MST / Marlboro SNUS - Philip Morris USA (PM) Trying to Paint a Rosie Picture..)
Taboka, PM USA's first attempt at a SNUS product had poor sales and was discontinued.
Reference: from literature provided by vendor to retail outlets..
A couple related news briefs:
The Art of Snusing..;
SNUS pouches are promoted as being spitless....