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Additional information
Additional information regarding our business.
Haypp Group and its operations
We are a consumer driven e-commerce group focusing on harm-reduced nicotine products. Our purpose is to reduce tobacco-related deaths globally, whilst promoting healthier enjoyment for millions. We achieve this through supporting the development of quality products, selling the best and most attractive products and brands, and maintaining strict control. We must also ensure that only people of legal age can purchase our products. At the same time, we must offer the most sustainable and attractive products to our customers, and a consumer-oriented customer service.
Haypp Group has the ability to generate real change in the industry, the global transformation from smoking to healthier alternatives. Haypp Group has its origins in Scandinavia with extensive experience from pioneering markets in smoke free alternatives and being a leader in the e-commerce sector.
In 2021, Haypp Group extended the numbers of e-commerce platforms through acquisition, hence today operating a total of ten platforms. The online presence is strong within Scandinavia and selected European markets, as well as in the United States.
The tobacco supply chain starts with the harvesting of tobacco leaves as an input either to the snus products or from which nicotine is extracted in order to produce nicotine pouches and ends with the sale of the finished products to consumers.
Our main suppliers are tobacco and nicotine pouch manufacturers. As a consumer-facing organisation, Haypp Group also has suppliers that provide services related to delivery and logistics as well as IT hardware and software.
Haypp Group works in collaboration with the brand owners, both larger international companies and smaller Swedish start-ups producing and developing nicotine pouches. Haypp Group is an active driving force in the industry’s development and change towards healthier products. This is achieved through anchoring the ideas and values with the consumers.
In 2021, Haypp Group continued its planned investments and changes in its warehouse infrastructure. After in 2020 changing one of its warehouses in the United States, as well as establishing a Swedish warehouse, Haypp Group established its own warehouse in Norway at the end of 2021. Additional infrastructural changes with more warehouse capabilities over Europe and in the United States are processing as planned.
As Haypp Group makes new nicotine pouch products available to customers for purchase, such products are tested to make sure that they comply with all applicable legal requirements. Haypp Group has further initiated product and laboratory testing for products which are not yet regulated to ensure that the products are safe to use and thereby creating an industry standard.
Financial management
Haypp Group’s head office and main operations are based in Stockholm. With the exception of snus, which is only available in Sweden, we operate and serve customers around the globe. Besides Sweden, where the majority of our personnel are located, we have additional staff in Norway, the United Kingdom, Spain, Germany, Hungary, Croatia and the United States. From October 2021, Haypp Group has been Nasdaq First North Growth Market listed company. Among its owners, the original founders, management and employees are all found. As well as larger private and institutional investors. All senior managers have been hired from the local community.
The highest governance body of Haypp Group is the Board of Directors, consisting of six members. The Board of Directors oversees the Management team, composed of eleven members, in charge of the daily operations including decision-making in relation to economic, environmental and social topics. Members of the Board of Directors are proposed by the Nomination Committee whose task is to propose an appropriate composition and mix, including age, gender, education and professional background. The diversity should be manifested by the elected members of the Board of Directors’ versatility and breadth regarding the competences, experiences and background.
Ingrid Jonasson is the chairman of the Board of Directors. The CEO of Haypp Group is Gavin O’Dowd. The corporate governance structure is set up with different managers which report to the CEO. Please refer to the Annual Report for Haypp Group AB for financial information on e.g. turnover and growth and the entities included in the consolidated financial statements. During 2021, Haypp Group had 131 employees in addition to full-time consultants. The material topics prioritised for the report can be found in the Materiality analysis.
Governance and sustainability
The overall responsibility for performance within sustainability lies with the Board of Directors. They determine the strategy for Haypp Group, and identify the risks based on recommendations from the management team. The Board of Directors are tasked with monitoring the risk management process, and are continuously informed about existing and recently-identified risks, as well as measures taken to limit risks. All functions are responsible for managing the risks associated with their plans, both centrally, as well as by individual staff members. The Code of Conduct helps to ensure a corporate culture that prevents unnecessary and avoidable risk-taking.
All employees are requested to identify and report events and circumstances that include risks. Existing and potential risks are discussed on an ongoing basis within the management team. To ensure that the responsibility is clearly communicated and understood, as well as the management team having the right tools for working with risk management, a policy has been developed and adopted in 2021, followed by internal dialogues and e-learnings. As part of the onboarding process, when joining Haypp Group, the Code of Conduct is not only reviewed but also something each employee is actively asked to acknowledge.
Each year, a risk assessment is made identifying significant risks that Haypp Group is exposed to. The identified risks, including probability and potential impact, connection with other risks, preventative activities and monitoring, are presented to the management team which in turn presents the risks to the Board of Directors. This process ensures that appropriate measures are taken to reduce, prevent and counteract unwanted risks.
Based on the outcome of the annual risk assessment process, strategies are developed to manage new and/or changed risks. Decisions about risk management may include that risks must be avoided, reduced, shared or accepted.
We govern sustainability the same way we govern everything else that is critical to the business. The evaluation of our impact on sustainability is a part of our ordinary business review presented to management, and handled accordingly. Sustainability risks are addressed with the same priority as financial or operational risks. The coordination responsibility for assessing sustainability risks works the same way as the annual risk assessment process. This ensures that ESG risks are managed in the same manner as other significant risks identified by the organisation.
Haypp Group has during 2021 also appointed a sustainability manager who is given relevant training in sustainability matters, especially those more common for e-commerce businesses.
Organisation
In total, during the year 2022, Haypp Group had 205 employees, out of 96% on permanent contracts or in the case of the United States, working full-time. In addition, Haypp Group had during 2022 a total of 19 consultants, whereof five working part-time. Most employees are based in Stockholm, but Haypp Group also has presence in Norway, Spain, Germany, Hungary, Croatia, the United Kingdom and the United States.
Haypp Group does not have a significant changes in employees due to seasonality, with permanent employees performing a significant portion of activities. During peaks in orders, additional warehouse resources might temporarily be brought in, however, this is most often handled by increasing our permanent staff.
