Nicotine gum is a global, multibillion market that is completely dominated by a few number of players. Some may consider this a problem. We have chosen to see it as an opportunity.
Nowadays, the number of places where smoking is permitted is on the decline. Despite the fact that there are hardly any places where you are allowed to smoke indoors Sweden, the country is home to over a million smokers. Smokers who often use some form of smokeless tobacco or nicotine product. Across the world, there are more than a billion people who smoke, and that number is growing every day. The number of countries restricting smoking is constantly increasing, causing an increase in the need for smokeless alternatives.
Smoking is driven by pleasure. We have therefore developed a gum that not only satisfies the need for nicotine, but also delivers the refreshing taste of a confectionary gum. To achieve this goal, we partner with experts who have vast experience with medicated chewing gum. This has enabled us to develop a new and cost-effective production method through compressed gum technology, which can also be used for other drug substances in the future. An important part of our long-term growth strategy is therefore to develop our medicated chewing gum to include other substances beyond those for smoking cessation. For example, in the future it can be possible to use our chewing gum for pain relief, cough and cold, and allergy.
We have adopted a business model that will keep our marketing and production costs low. Instead of building a global brand to compete with large companies, we will launch our gum as private label. This enables us to maintain an attractive price for our customers, and enables them to build a brand and profile based on their knowledge about their markets. All development and production work is outsourced, making us flexible and cost-effective. We can choose the optimal supplier for a particular operation, while not having to bind large amounts of capital in equipment and personnel.
We have a product that we are confident that consumers will like. We have a new and efficient production method. And we have a business model that gives both our customers and Enorama profit opportunities.