SCA is the world’s third largest and Europe’s largest supplier of consumer tissue and Away-From-Home (AFH) tissue.
The consumer tissue segment consists of toilet paper, kitchen rolls, facial tissue, handkerchiefs and napkins which are sold to end-consumers in retail stores.
Approximately 40% of SCA’s sales consists of products under its own strong regional brands such as Zewa, Tempo, Velvet, Sorbent, Edet and Regio. The remainder is sold as retailers’ brands.
Market position
SCA is the leading supplier in Europe with a market share of 26%. In Latin America, SCA is the second-largest producer of consumer tissue. SCA holds strong positions in countries including Mexico, Colombia, Chile and Ecuador, all regions with high growth.
SCA’s brands have a strong position with Zewa in Germany, Austria, Russia and parts of Eastern Europe. SCA’s Edet brand is well placed in the Nordic region and the Netherlands. The Velvet brand is strong in the UK.
During the year SCA acquired P&G’s European tissue operations which included the Tempo brand. SCA thereby further strengthened its positions for branded products. SCA is also Europe’s largest supplier of tissue for retailers’ brands with significant positions in several key European markets.
In Australia and New Zealand, SCA is the leader with a market share of approximately 35% and 50% respectively. The products are sold under the Sorbent and other brands.
Strategy
The ability to understand the future demands of customers and consumers is fundamental for the creation of lasting value. The strategy includes investing more resources in consumer insight, innovations and product development in order to strengthen SCA’s own brands. These constitute the driving force for development and improvement of profitability throughout the segment.
For a number of years SCA has been working with a full service offering that includes not only production and delivery but also service cooperation for product development, product range, design, marketing and logistics. This offering, which saves costs and increases value for both supplier and retailer, has been well received by many leading retail chains.
One key strategy is to expand in growth markets with a strong focus on own brands. SCA is market leader in Russia and number two in Latin America and has particularly strong positions in Colombia and Ecuador.