OUR VISION: A LIFE WITHOUT TOBACCO
Harm Reduction Group - The Better Option.
We want to be the best alternative to tobacco. With a growing range of e-cigs, white snus and other alternative nicotine products, we are getting closer to a tobacco-free society every day.
We started with e-cigarettes and alternatives to tobacco back in 2013. Back then, we were quite alone in believing in a future in this category - but time has proven us right. More and more people are realising that tobacco belongs to history. What we're doing is the future, join us on this journey!
We called Sebastian Andersson who is a stock analyst at Redeye to hear what he thinks about the future of e-cigarettes and how the market will develop.
How do you see the future of e-cigarettes in Sweden in the next 2-3 years?
It is clear that the market will continue to expand annually. Both large and small players in the global nicotine market have directed their interest towards e-cigarettes, both for smoking cessation and to increase their market shares. With regard to the Swedish market, we predict sales of approximately SEK 500 million in 2023. We expect that demand will increase in the retail sector in the future, and that the market will amount to approximately SEK 2 billion in 2025.
What are the most important strategic goals for a company in e-cigarettes in the short or long term?
In the short term, I think you have to get into different distribution channels with either your own products or resell other people's. If you build up a large network and maintain the relationship over time, you should gain volume-wise economies of scale compared to competitors, which contributes to better margins and a stronger positioning for the long-term strategy. In the long term, I believe in product development of self-produced products within the segment to be able to develop its profitability. The companies that can develop product advantages in the form of flavorings, design, and technical innovations should have advantages in the market both in terms of demand and in terms of margins.
What does the e-cigarette market look like in the rest of the world?
Today, over a billion people smoke traditional cigarettes. But even now the global e-cigarette market is valued at USD 22.8 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.4% until 2027. If you do a quick trend scan, you will see an increased understanding of e-cigarettes as a safer alternative to traditional cigarettes, while the growing market is driven by increased popularity among the younger population. In Europe, the UK is the largest market where traditional tobacco countries such as Germany, Spain and Italy also hold large parts of the market.
How do you see Harm Reduction Group's growth in the coming years?
Today, Harm Reduction Group has approximately 27% of the e-cigarette market in Sweden. We believe that the larger tobacco companies will contribute with increased competition, something that we already see today, but that Harm Reduction Group has good opportunities to maintain its market share in the coming years. Mainly because of its positioning in retail.
Which players do you think will fight for the e-cigarette market?
Already now, we see the larger companies in the tobacco industry positioning themselves strongly in e-cigarettes. BAT has begun its sales journey in Sweden and we also believe that Philip Morris will be a major player in Sweden going forward. Of the Swedish companies, we see Harm Reduction Group, Eciggkedjan and Vont as three companies that were early on the market and that have seen the advantages and growth opportunities of nicotine, instead of tobacco.
WINNER OF THE "COOPERATION OF THE YEAR 2023" AWARD FROM PREEM
Marius Arnesen CEO at Harm Reduction Group, about the award:
- It is with great pride that we received the award "collaboration of the year 2023" from Preem. It shows that teamwork and a well-thought-out strategy are two important keys to creating a successful sale. I am convinced that this is only the beginning of our joint journey together towards even greater success. I would like to conclude by praising the entire team at Preem for a very transparent and responsive collaboration.
The justification for the "collaboration of the year 2023" from Preem reads:
"This year's collaboration is a well-deserved award for an outstanding supplier. Their invaluable support has been instrumental in getting our sales off the ground. They served as an excellent sounding board and generously shared their resources and insights to accelerate our success. In addition, they offer products of the highest quality. They have enriched the offer to our customers. This collaboration is a clear example of how teamwork and commitment can create a winning strategy"
OUR BUSINESS MODEL
Our business model is built on four strong business areas that together create a strong and diversified business. The basis of our success is a combination of physical stores, e-commerce, brands and retail sales.
By having a presence in strategic locations, we can offer a unique and personal customer experience. Our stores act as hubs to meet customers needs and give them the opportunity to discover our wide range of products. We focus on creating attractive store environments, training our employees and offering outstanding customer service.
Our e-commerce platform offers a convenient, secure and easily accessible shopping experience to a wide target group. E-commerce also allows us to collect data and analyze purchasing behavior to improve our marketing and customer experience.
In addition to our own brands, we have established strong relationships and exclusivity agreements with well known and reliable brands in the e-cigarette industry. We work closely with our brand partners to ensure we always have the latest products and innovations available to our customers.
B2B / RETAIL
Distributing our products through retail channels allows us to reach new segments and geographic areas that we might not have been able to reach on our own. We actively work with our retail partners to ensure that our products are displayed in an attractive way and that our brands get the attention they deserve.
Save lives by switching products
Many people have already switched to our tobacco free products and left cigarettes behind and we are convinced that this is just the beginning of our journey as a company and our joint journey towards a tobacco free society.
Several hundred thousand Swedes still use Snus and smoke cigarettes. It's nothing to hide under the chair, we would prefer to see everyone just quit and live a life free of tobacco and addiction. But that's wishful thinking.
What we can do, however, is offer a less harmful but equally satisfying alternative. To actually extend life and reduce tobacco related diseases just by switching products.
Harm Reduction Group AB is the winner of the "cooperation of the year 2023" award from Preem
Harm Reduction Group AB (publ) ("Harm Reduction Group" or the "Company") announces today that the Company has won the "collaboration of the year 2023" award from Preem in the suppliers category. Marius Arnesen CEO at Harm Reduction Group, about the award: - It is with great pride that we have received the award "collaboration of the year 2023" from Preem. It shows that teamwork and a well…
231119- Harm Reduction Group- Interim report Jan – Sept 2023
231129 – Harm Reduction Group – Interim report Jan-Sept 2023
THE MARKET FOR E-CIGARETTES WILL HAVE A TURNOVER OF 2 BILLION BY 2025
We called Sebastian Andersson who is a stock analyst at Redeye to hear what he thinks about the future of e-cigarettes and how the market will develop. How do you see the future of e-cigarettes in Sweden in the next 2-3 years? It is clear that the market will continue to expand annually. Both large and small players in…
High ambitions and a huge market
Since the company was founded, we have increased turnover by almost 50% every year. And we are still a growth company with a clear ambition to become
the dominant player in the smoke-free segment. A segment that is constantly taking shares from the tobacco industry.
In the West, the goal has long been to become completely cigarette free. People are informed more about the dangers of tobacco at the same time as political decisions are made to reduce tobacco use is something that opens the gates for us to offer a better alternative in every way.
This is one of the many reasons that made Harm Reduction Group the Nordic region's fastest growing company in the smoke-free segment, with a focus on electronic cigarettes and snus.
The bars below show our increased turnover in percentage from the year 2021 to 2022.
We currently have 22 physical harm reduction stores around Scandinavia and the UK. The number of stores is constantly being expanded in order for us to become Scandinavia's largest chain in the category. The expansion also gives us the opportunity to spread knowledge about the importance of harm reduction to even more people.
By offering a smooth and secure shopping experience on our twelve e-commerce domains, we have built a strong presence in the market. Our success depends on the ability to offer a wide range of products, competitive prices and outstanding customer service.
In addition to the brands we own - Norse, we have several exclusive agreements with high-quality brands such as IVG and Aroma King that have given us an extremely strong position in the market. Our exclusive agreements demonstrate the trust and confidence that manufacturers and suppliers have in us, which strengthens our position as an industry leader.
B2B / RETAIL
Retail has grown explosively and has been a large part of our growth. By establishing cooperation with more retailers, we have increased our visibility and created a strong presence in the market. We look forward to continuing to build strong relationships and expand our network of retail partners to further strengthen our position.
A LITTLE BRIEF ABOUT OUR MAJOR BRANDS
The Norwegian sensation
What sets the Norwegian e-juice apart is the careful development process and the carefully selected ingredients. Great emphasis is placed on creating outstanding flavour profiles and using high quality ingredients to deliver an authentic and enjoyable experience. Another reason for the Norwegian e-juice's success lies in their creative approach. They are not afraid to experiment with different flavour combinations and innovative concepts. This has resulted in unique and exciting flavors that really stand out from the crowd.
A fantastic growth journey
Acme Vape Limited (IVG) has enjoyed incredible growth and established itself as a truly strong player in the market with its exceptional products and innovative mindset. The company has assembled a team of experts who are constantly exploring new technologies, new materials and design concepts that push the boundaries of vaping innovation. A cornerstone of IVG's growth strategy is an unwavering commitment to quality. The company follows strict manufacturing standards and rigorous quality controls at every stage of the production process that have made IVG synonymous with reliability and high standards.
Pioneering vape manufacturer
In the rapidly growing world of vaping, Aroma King has taken the stage by storm thanks to its outstanding products. With a focus on innovation, quality and a passion to offer customers outstanding experiences, Aroma King has established itself as a significant player in the industry. With a strong commitment to research and development, Aroma King constantly explores new technologies and materials to offer its customers innovative and quality products.
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