World’s Largest Cigar Company

[SkinsFanLarry]

Swedish Match and Scandinavian Tobacco Merge to Form Giant Cigar Company


The makers of Macanudo and C.A.O. cigars have come together, creating one of the world’s largest cigar companies. Skandinavisk Holding A/S, headquartered in Søborg, Denmark, and Swedish Match AB of Stockholm, Sweden, have officially merged their cigar and tobacco operations, creating the new Scandinavian Tobacco Group, headquartered in Copenhagen, Denmark.

The new Scandinavian Tobacco Group is the second-largest producer of cigars in the world, making more than 2.5 billion cigars per year (115 million of them by hand), more than 1,650 tons of pipe tobacco and 2,100 tons of fine-cut tobacco. It has annual revenues of nearly 700 million euros ($1 billion), nearly 10,000 employees in 20 countries spread across the globe and production at 17 different sites. Combining such iconic brands as Macanudo, C.A.O. and Dunhill, the non-Cuban versions of Cohiba, La Gloria Cubana, Punch, Hoyo de Monterrey, Partagas, and many others under one organization, the new Scandinavian Tobacco Group claims some 30 percent of the U.S. premium cigar market. It also ranks second in size in the cigar world only to Imperial Tobacco Group PLC of Britain, parent company to Altadis, which controls brands such as Montecristo and H. Upmann and is the 50 percent owner of Cuban cigar monopoly Habanos S.A.


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[Nickerson]

I remember hearing about this a while ago. The concern was that the quality of CAO cigars would be compromised. People assumed that partnering would Macanudo would effect their quality, but I think CAO may be running the show and I don't expect to see a change in the quality of their cigars.

 

[Clint]

I'm confused......
" World's largest cigar company " means that this new company produces the world's largest cigars?


:stretchgr

 

[tobii3]

When S-CHIP first "hit the fan", there was talk about a global conglomerate to offset the ridiculous amounts of taxes and fees.

We're almost there.

 

[Zen Cigar Man]

I remember hearing about this a while ago. The concern was that the quality of CAO cigars would be compromised. People assumed that partnering would Macanudo would effect their quality, but I think CAO may be running the show and I don't expect to see a change in the quality of their cigars.

CAO will not be running the show.

 

[BEN(SWEDEN)]

:smokingboI think this will be a step up for CAO and Swedish Match are not exactly known for cutting corners. I told you look out for us Sweeds!!

 

[thegoldenmackid]

I'm confused......
" World's largest cigar company " means that this new company produces the world's largest cigars?


:stretchgr

No... they only produce the second largest cigars...

CAO will not be running the show.

Yeah. If anyone wants to know how General has handled mergers... go talk to Ernesto Perez-Carrillo, yeah... he started a new company.

 

[tobii3]

Yeah. If anyone wants to know how General has handled mergers... go talk to Ernesto Perez-Carrillo, yeah... he started a new company.

Really?

In 1999 General Cigar Company purchased Carillo’s El Credito factory and the corresponding brands with Perez-Carillo remaining “president and cigar master” of the El Credito division. But in March 2009 Carillo announced his departure from General Cigar Company walking away from the factory and brands he built.

Ernesto had originally planned on retiring. Read the interviews sometime.

-- Ernie, you’re retiring after ten (10) years with General Cigar, to whom you sold your company in 1999. At the time, one of the reasons you gave for selling was that your children had no interest in the cigar business. Yet, now, you are going to go into business, making cigars, with your children. What changed over the past ten years?

EPC: Well, both my son and my daughter became professionals. My daughter as an attorney and my son in Private Equity. But about a year ago, they approached me with the idea of doing something together in the cigar industry. Maybe they’ve got tobacco in their blood! We began talking about it, and with my retirement from General Cigar/Swedish Match approaching, we decided to make plans.

Feel free to sling mud, Mack...Ernesto's words himself -

"Stepping down from my position as president and cigar master of El Credito was not an easy decision to make,” said Perez-Carrillo. “I have benefited greatly from having had the opportunity to work with the largest premium sales force in the country, and have enjoyed dedicated marketing support that has ultimately generated international demand, as well as unwavering retail and consumer support for my brands.”