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SCA Begins Streamlining Tissue Offerings in Europe
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Stockholm, Sweden, 10 December 2008 -- SCA (NASDAQ:SVCBY - News)(STO:SCAA; SCAB) will streamline its brand portfolio for tissue products in Europe to fewer brands that are more distinctly segmented. These measures are intended to result in increased profitability for SCA’s European tissue operations.

The streamlining action now being taken is a logical progression of SCA’s strategic acquisition of Procter & Gamble’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 290 billion, 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; the remaining products are sold under retailers’ brands.

The 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, 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,” said Mats Berencreutz, president of SCA Tissue Europe.

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. Sales in 2007 amounted to SEK 106 billion (EUR 11.4 billion). SCA has approximately 50,000 employees. For more information, visist www.sca.com.
 


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