Last month tobacco company Swedish Match warned that cut-price competition in snus — Swedish-style wet snuff — would hit profits, Bloomberg reports.

Now the company’s CEO said a price war should ease as rivals are forced to follow price rises by the tobacco products group.

“If we are right about the type of discounts that much of the competition is giving to the retailers, I don’t think these price levels you see today are sustainable because much of the competition must be bleeding right now,” Chief Executive Lars Dahlgren told Bloomberg.

Swedish Match, whose rivals include Imperial Tobacco, BAT and Japan Tobacco, also expects its snus profit in Sweden to take a hit at the start of 2013, due to rising sales of lower-margin cheap snus, according to the newswire.