Armond Avanessian may be relatively new to nicotine and smokeless tobacco, but certainly not to international sales. Before joining GN Group, he gained over 35 years of experience in international sales. His previous roles include companies such as Swarovski, Degussa, and VAMED.
His first year at GN Group focused on market research and analyzing specific industries. Now, he is fully committed to increasing sales by developing new channels and expanding geographically for Swedish Smokeless.
“My extensive sales experience allowed me to quickly adapt to this unique segment. The team here is highly professional. Together, we overcome challenges and achieve new successes. The owner’s dedicated and supportive approach to work and employees also greatly helps,” says Armond Avanessian.
From crystals to smokeless enjoyment
In May 2023, Armond became Sales Director of GN Group. He oversees sales in sectors such as food production, logistics, and professional services – with focus on sales in the SNUS and nicotine pouches segment, where he became involved from day one.
“I am proud of our achievements across several businesses. However, I always aspire to accomplish more. That ambition is precisely why I joined GN Group.”
GN LLC is part of a conglomerate of Swedish and Armenian companies. Swedish Smokeless Solutions, one of the group’s companies, is a leading provider of smokeless nicotine products like snus and nicotine pouches.
Two-step strategy
The new sales strategies developed this past year aim to expand international presence by entering new markets. Another goal is to further develop territories where we already operate.
“In some countries, we already have sales organizations for products like fresh-cut flowers. The challenge is leveraging those organizations to add for example jams, chocolate, and nicotine products.”
Armond cites Sweden as an example of executing this strategy effectively. Smokeless tobacco production evolved from an initial venture into retail. This production led to the establishment of our own distribution company.
Soon after, GN Cannery was established. It sells Armenian fruit and vegetable products, such as juices and jams, in the Swedish market. Subsequently, GN set up a printing company and plastic injection molding to support Swedish Smokeless.
Next up for Swedish Smokeless
Swedish Smokeless and its renowned brands like Siberia, Oden’s, and White Fox have a strong presence globally. Armond and his professional teams in Armenia and Sweden have three main focus areas:
Travel Retail expansion
Swedish Smokeless is already very strong in travel retail—possibly a world leader. The strategy involves building further on this success. This means expanding into airport stores, inflight sales, cruise lines, diplomatic services, and border shops worldwide.
International expansion
Swedish Smokeless sells directly in over 30 countries and reaches over 80 countries overall. However, some territories still lack our products. Currently, the prioritized continents are Asia, Middle East, followed by Africa and Latin America, where our presence is limited to a handfull countries.
Optimize the portfolio
Some customers remain loyal to their favorite brands and flavors for decades. Yet many customers seek new experiences, especially in nicotine pouches. Swedish Smokeless constantly develops new taste sensations to maintain customer interest.
“We must use the strength of our premium brands and ‘Grow, Grow, Grow!’ When we introduce our products to new customers, they often become dedicated fans. Sometimes, our brands are already well-known in markets where they aren’t yet available.”
Restrictions and competition
Success in international markets doesn’t always come easily and might not last. Despite the top quality and regulatory compliance of our products, we often encounter legislative restrictions. When new regulations emerge, our compliance department ensures rapid adaptation.
Competition is another important factor. Swedish Smokeless was among the first to challenge Swedish Match, owner of the ZYN brand, in the Swedish market. About 20 years ago, Swedish Match essentially had a monopoly on snus production in Sweden.
“Today, the situation is different. Tobacco snus production remains complex and requires expertise and advanced manufacturing facilities. However, competition is fierce in nicotine pouch production, partly because starting up is relatively easy. We compete by offering superior quality, using natural oils for flavoring.”
Vision and future outlook
Our goal is geographical expansion and refining products to meet international regulatory requirements. Many legal and political aspects impact this expansion.
“We expect many regulatory changes, such as limits on nicotine strength and flavor restrictions. Countries worry that young teenagers might become addicted to nicotine.”
Many competitors design products appealing to younger people with flavors like ‘Sparkling Strawberry Rainbows’. Swedish Smokeless stays true to its mission, offering adult-focused designs and flavors.
“A key factor of our success is premium quality, delivering lasting satisfaction. Smoking remains the most significant health threat, surpassing alcohol and obesity. Educating consumers about snus and nicotine pouches as safer, enjoyable alternatives is central to our mission,” concludes Armond.
