Norse Impact AB (publ): No ban on flavoured e-cigarettes and new nicotine rules creates opportunities.
There will be no ban on added flavour to e-cigarettes in Sweden, which will have a positive impact on the company's continued growth. For a longer period, there has been an ongoing political debate in Sweden about introducing a flavour ban for e-liquid that is inhaled through an e-cigarette. Yesterday, the matter was decided, and no such ban will be introduced in Sweden.
Gothenburg, June 22, 2022
Following this ongoing debate, it has now been decided that there will be no ban. The are several reasons for this, but above all it is because in countries where the ban has been introduced, users are seen returning to the much more harmful tobacco cigarette in higher numbers. There is also a belief that better and more comprehensive studies are needed before a different decision could be considered. The decision means that Norse Impact can now expand with full force towards markets and customers who have chosen to await this decision.
- It's not only as the CEO of a vape company that I am happy with the decision but also because I genuinely feel It is the right decision. We know that we are helping thousands of adults to quit smoking, and the fact that we can continue to be able to offer this option is fantastic. Now there is only one direction, and it is full speed ahead, says Andreas Eriksson, CEO of Eurobrands.
Updated regulation from the Swedish Chemicals Agency.
On 1 July, the regulation on nicotine handling will be updated, a regulation that is handled by the Swedish Chemicals Agency. This means that for any nicotine products containing 1.66% nicotine of their weight, special documentation must be provided at the time of sale and that certain safety equipment must be available. The company has known about this for a longer period and has actively worked to adapt, which means that it will not have a negative effect on the company's sales. Moreover, Norse Impact, as a group, has for quite some time and in collaboration with world-leading manufacturers, developed products that are precisely adapted to the new regulation.
Andreas Eriksson, CEO of Eurobrands comments
- The updated legislation also has a positive effect on us as a company, we have prepared for a long time, and we can probably say that we are best prepared in the industry. Since we learned of these proposed changes, we have created systems to facilitate the implementation of the required changes. As an e-commerce business, we already hold the solution and it will not affect our customers significantly, at the retail store level, a more substantial change will be required, something that we know our specialty retail stores can handle.
Norse Impact: Fastest growing
Norse Impact is the Nordic region's fastest growing group in the smoke-free segment. This segment consists of legal nicotine products as a substitute for the very harmful smoking tobacco. Norse Impact is already a leading company in this segment.
The company is particularly strongly positioned in the areas of snus and electronic cigarettes, including e-juice, with eleven exclusive agreements with well-established smoke-free products.
Norse Impact now has twenty-five physical retail stores, twelve own online stores (nordamp.no, maxsnus.no, friskedrag.no, norsevape.co.uk, norseeliquid.com and elektroniske-sigaretter.no, cigge. Se, cigge.com, fi. cigge.com, elekcig.com, elekcig.se, elekcig.dk, cigge.no and nettdamp.no)
The e-cigarette/vape market, which is still at an early stage, had sales in Europe of USD 8.3 billion by 2020 which was expected to increase by 11% in 2021. Snus had global sales of $ 2.6 billion in 2020. The market indicates strong continued growth. Europe is the largest market and accounts for 40% of global sales.
The company has a strong growth focus, based on organic growth and solid strategic acquisitions, both in the Nordic region and the rest of Europe. Important points of this consolidation effort are strong synergies, market share acquisitions and sound financial operations.