SCA streamlines brand portfolio for tissue in Europe to increase profitability

SCA streamlines brand portfolio for tissue in Europe to increase profitability

SCA will streamline its brand portfolio for tissue products in Europe. The
current excessively fragmented flora will be successively consolidated to fewer
brands that are more distinctly segmented. These measures are intended to result
in increased profitability for SCA's European tissue operations. 

”Streamlining is a logical step to take and has a fundamental aim: to increase
profitability,” says Mats Berencreutz, President of SCA Tissue Europe. ”It
involves creating a more distinct, simpler brand portfolio for the European
market to build even stronger brands.”  

The streamlining action now being taken is a logical progression of SCA's
strategic acquisition of P&G's European tissue business in 2007. The
consolidation will result in a simpler and more distinct line of brands in the
consumer segment and coordination gains for SCA. This effort is expected to
stretch over three to five years, with the aim of creating pan-European brands
for SCA's tissue products. 

The world market for consumer tissue amounts to more than SEK 290bn, with Europe
accounting for one fourth. SCA is Europe's largest supplier, with a market share
of 26% and it currently markets tissue products to European consumers under 12
different regional brands. About 40% of sales are carried out under the SCA
brand, while the remaining products are sold under retailers' brands. 

This also means that our brand strategy will streamline SCA's tissue products in
Europe into two categories. One category targets personal hygiene, such as
toilet paper, while the other is aimed at object hygiene, that is, such products
as kitchen rolls.

”The differentiated approach provides a clear segmentation that facilitates a
further broadening of the product offering. This will make it simpler under each
brand to successively add products with new functions,” says Mats Berencreutz. 

Stockholm, 10 December 2008

For further information please contact

Gunnar Vrang, Press and Media Officer, +46 8 788 51 29


NB
This information is such that SCA must disclose in accordance with the
Securities Markets Act. 





SCA is a global consumer goods and paper company that develops and produces
personal care products, tissue, packaging solutions, publication papers and
solid-wood products. Sales are conducted in some 90 countries. SCA has many
well-known brands, including the global brands Tena and Tork. Sales in 2007
amounted to SEK 106 billion (EUR 11.4 billion). SCA has approximately 50,000
employees. More information at www.sca.com