This Company Is Betting Big That Tobacco-Free Pouches Will Be the Next E-Cig

Changing regulation and a lung injury outbreak last summer have soured the market for electronic cigarettes, a fortuitous development for nicotine pouch manufacturer Swedish Match (OTC: SWMAF), which is in the midst of a capacity expansion push.

Although cigars actually account for the bulk of the cigarette alternative's revenue, nicotine pouches are the fastest-growing segment in the tobacco market, and Swedish Match is looking to capitalize on it by adding to its ZYN brand's potential.

CEO Lars Dahlgren told analysts Swedish Match was "well underway to double that capacity by early 2021, but we intend to further increase distribution during 2020."

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Source Fool.com