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Changing regulation and a lung injury outbreak last summer have soured the market for electronic cigarettes, a fortuitous development for nicotine pouch manufacturer Swedish Match (OTC:SWMAF), which is in the midst of a capacity expansion push.

Although cigars actually account for the bulk of the cigarette alternative's revenue, nicotine pouches are the fastest-growing segment in the tobacco market, and Swedish Match is looking to capitalize on it by adding to its ZYN brand's potential.