About Snuff House
- Part of the Swedish Haypp Group, Scandinavia’s leading online supplier of tobacco. In Norway through the websites snushjem.no, snus.com and snuslageret.no
- Started in Norway in 2018 and experienced tremendous growth during the pandemic. Turnover in 2021 for NOK 905 million.
- Offers same-day delivery in collaboration with Instabox/Porterbuddy in central Eastern Norway.
The proportion of smokers has fallen in Norway in recent decades, and today well under ten percent of the adult population state that they smoke daily. For snus use, the development has been the opposite. In 2021, 25 percent of Norwegian men and around ten percent of Norwegian women state that they snuff daily or occasionally. That is far more than a doubling from the turn of the millennium.
This means that the Swedish Haypp Group, which sells snuff online, has experienced tremendous growth. Since they launched the website snushjem.no in January 2018, the turnover in Norway has grown to over NOK 900 million in 2021 – helped by the pandemic and closed borders, of course.
– The cross-border trade disappeared in 2020, and then we experienced tremendous growth. Personally, I probably thought there would be a bigger bang when it reopened, but it has continued at a high pace. 2022 will be lower than 2021 and 2020, that’s how it is, but it’s higher than you might expect, Snushjem warehouse manager Marcus Gustafsson tells MT.
Lightning fast delivery
He is sitting in the dining room at the warehouse at Økern in Oslo, together with managing director of the automation company e-motions Nils Brunke. Efficient stock management and fast distribution are among the most important success factors, and last autumn e-motions installed a complete facility for picking, packing and sorting at Kabelgata 39 in Økern.
From here, Haypp Group can offer same-day delivery if you order your snus online before 2pm, via the online stores snus.com, snuslageret.no and snushjem.no. This is made possible in collaboration with Porterbuddy/Instabox. It is also possible to subscribe to fixed deliveries.
The new facility from e-motions makes it possible for Snushjem to increase capacity considerably from the current level, without having to find new, larger premises. Today, between 2,000 and 3,000 orders are packed daily from the warehouse, but the capacity is far greater. Theoretically, the automation system can handle 3,500 parcels per hour, says Nils Brunke at e-motions. The system is modular, and adding extra picking stations, packing stations or sorting capacity is a simple matter.
The facility consists of a stacker/de-stacker for the boxes, a pick-to-light system, two automatic packaging machines, a DWS system (dimension, weight and scanning), a sorting facility and associated conveyor belts and belts. Everything is controlled by e-motion’s software e-web in collaboration with Ongoing WMS.
The flow of information here is important. When orders are to be picked, the pick-to-light system knows exactly where the goods are, the packaging machine will know the size of the products and if something is picked incorrectly, the operator is notified and can adjust immediately. The packaging machine uses cold seal technology and creates a package that fits the products exactly, so that no redundant packaging is used.
Well over 90 percent of the orders are handled by the automatic packaging machine. But orders of more than 45 snuff boxes must be packed manually.
The finished packages then go through the DWS machines, where the weight and size are checked and the label scanned – and the message goes on to Snushjem’s systems that the package is ready to be delivered.
Quickly saved up
Warehouse manager Gustafsson manages a warehouse with a total of seven employees. He estimates that a fully manual warehouse would require twice as many employees, which means that the investment in the facility from e-motions quickly pays for itself.
– We save up the investment over the course of two to three years. That is the estimate, he says.
The facility at Økern was commissioned in 2021. Until then, Snushjem had purchased 3PL services from Granada in Halden.
– Granada did a super job all these years, but we wanted to choose a new path. The growth was so strong that you couldn’t just operate manually, so automation was necessary, says Gustafsson.
That the choice fell on e-motions as a supplier was not accidental, even though the Swedish company is not yet a major player in Norway. The Swedish warehouse runs on the same type of system. The facility for Snushjem is only the second the company has delivered in Norway. The first was to 360 Logistics, which was actually based in the same premises on Økern before Snushjem moved in.
– We made our first delivery to 360 Logistics in 2020. We have built that facility three times. We have had a lot of pressure in the Swedish market, but now we want to focus more on Norway. We will deliver a fairly large plant to Lundeby this autumn and are in the process of building an organization in Norway, says Brunke.
Shall conquer the snus world
Snushjem’s owners Haypp Group aim to inspire healthier use of tobacco and nicotine, and sell, among other things, a lot of tobacco-free snus. Sweden is by far the largest market as of today, with Norway a good second. But it is in the US that the real big growth can come.
– In Sweden, there is no potential to grow that much. In Norway it can still be much bigger. Then we have high hopes in the US. I was in Houston this summer and helped build a warehouse in Houston, says Marcus Gustafsson.
He says that their systems are very easy and quick to set up, and is supported by warehouse manager Gustafsson.
– I took our employees to Stockholm to learn about the facility there, while the facility here was being installed. When we returned, the plant was almost finished, says the warehouse manager.
One of the advantages is that each module has its own cable channel, so there is no need to run wires throughout the room to make everything work.
– You usually have a central electrical cabinet where you run all the cables to and from. We have developed a separate cable channel that we put on each module, so when we come and do an installation, everything happens much faster, says Brunke.