Additional information

Additional information regarding our business.

Haypp Group and its operations

Haypp Group is a consumer driven e-commerce group focusing on oral nicotine products with the purpose of reducing tobacco related deaths globally and promote healthier enjoyment for millions. This is achieved through the support of product development of qualitative products, sale of the best and most attractive brands and products while maintaining a strict control in relation to the products as well as ensuring that only people that meet the legal age requirements can purchase the products. All this is done while at the same time ensuring the most sustainable and attractive offer 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.

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 pouches manufacturers. As a consumer-facing organisation, Haypp Group also has suppliers that provide services related to e.g. 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 2020, Haypp Group made changes in its warehouse infrastructure by changing one of its warehouses in the United States as well as establish an own Swedish warehouse. Before Haypp Group makes new nicotine pouch products available to customers for purchase, all such products are tested to make sure that they comply with all applicable legal requirements. Haypp Group has initiated 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. We operate and serve customers all over the globe, with the exception for snus which is not available for the EU market except for Sweden. Haypp Group has warehouses in Sweden, Denmark, the United States and the United Kingdom. Personnel is present Norway, the United Kingdom, Spain and the United States besides for Sweden. Haypp Group is a limited liability company that is owned by the founders, management and employees. All senior managers have been hired from the local community.

The highest governance body of Haypp Group is the Board of Directors, consisting of seven members. The Board of Directors oversees the Management team, comprising of nine members, in charge of the daily operations including decision-making in relation to economic, environmental and social topics. Ingrid Jonasson is the chairman of the Board of Directors. 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 2020, Haypp Group had 114 employees. The material topics prioritised for the report can be found in the Materiality analysis.

Governance and sustainability

The Board of directors has the overall responsibility for the sustainability performance and determines the strategy for Haypp Group and the identified risks based on recommendations from the management team. The Board of Directors are tasked with monitoring the risk management process and is continuously informed about existing and new identified risks as well as the measures taken to limit risks by the management team. All functions are responsible for managing the risks associated with its plans, both centrally in the function as well as individual staff members. The Code of Conduct will help to ensure a corporate culture that prevents unacceptable 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 under 2020 and will be adopted in 2021.

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. Decision about risk management may include that risks must be avoided, reduced, shared or accepted.

Sustainability risks are addressed with the same priority as financial or operational risks. The coordination responsibility for assessing sustainability risks is the same function as the annual risk assessment process. This promotes that ESG risks are managed in the same manner as other significant risks identified for the organisation.

Haypp Group has also appointed a sustainability manager which appropriate training in sustainability matters for e-commerce businesses.

Organisation

Haypp Group had a total of 114 employees in 2020, all but one was employed under a permanent contract. Two employees were employed on part-time contracts. Most employees are based in Stockholm, but Haypp Group also has presence in Norway, Spain and the United States. Haypp Group does not have a significant variation in employees due to seasonal variations and employees perform the significant portion of the activities.