Swedish Match says snuff hoarding half of last year's

STOCKHOLM, Jan 17 (Reuters) - Tobacco products firm Swedish Match (SWMA.ST: Quote, Profile, Research, Stock Buzz) said on Thursday Swedes probably hoarded half as much snuff ahead of a tax rise in January as they did ahead of a year-earlier one.

A Swedish excise snuff tax rise at the start of 2007 led to distorted buying patterns for the firm's most profitable product segment. Snuff is a wet tobacco sold loose or in pouches and placed under the upper lip.

Consumers stocked up before the hike and stayed away from the shops in the following months, sending sales volumes up at the end of 2006, but down at the beginning of 2007.

Swedish Match has previously said it expected this year's tax changes would have a similar impact on consumption patterns.

"We believe it was about half compared to last year, maybe 5 to 7 million boxes," Swedish Match spokesman Emmett Harrison said on Thursday.

The year-earlier hoarding amounted to 13 million boxes.

"The price increase is smaller this year, and the media attention hasn't been as big," he said.

Snuff is sold mainly in the United States and Sweden but banned in the rest of the EU.

In the first nine months of 2007 snuff made up 26 percent of the firm's group sales and 48 percent of group operating profit. Snuff operating margin in the period was 40.1 percent, compared with a year-earlier 48.0 percent. (Reporting by Anna Ringstrom and Veronica Ek, editing by Will Waterman)