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Weekly Cigar News Sampler: STG Acquires Thompson, S&R Introduced, and More

2 Feb 2018

As we have since July 2006, each Friday we’ll post our sampling of cigar news and other items of interest from the week. Below is our latest, which is the 565th in the series.

1) On Wednesday, Scandinavian Tobacco Group (STG), parent company of General Cigar and Cigars International, announced it had reached an agreement to acquire Thompson Cigar for $62 million. Thompson is a Tampa-based online retailer that was founded in 1915 and boasts $100 million in annual net sales and 185 employees. “I am pleased to announce this acquisition, which strengthens our position in the online retail channel in the US.,” said Niels Frederiksen, STG CEO. “Our existing U.S. online retailer, Cigars International, will, in combination with Thompson, be able to deliver an unmatched range of premium cigars at the highest level of service to the U.S. consumers. At the same time, we foresee significant cost synergies to the benefit of our customers and shareholders.”

2) Black Label Trading Company’s Black Works Studio (BLK WKS) is introducing S&R, a limited release that’s the first BLK WKS cigar to use Dominican tobacco and also the first to have a Sumatra wrapper. Intended as a medium-bodied smoke, S&R has a Nicaraguan Habano binder around Nicaraguan and Dominican filler tobaccos. Two sizes are available: Lancero (6.75 x 42, $9.50) and Corona Gorda (5.5 x 46, $9.50).

3) Inside the Industry: Thompson being bought by STG wasn’t the only significant acquisition this week. Cigar accessory maker Xikar, known best for its cigar cutters, was purchased by Quality Importers (QI) for undisclosed terms. QI has made a number of acquisitions in the cigar accessory category in recent years, including Cigar Caddy, Palió, Cigar Mechanic, and Stinky Ashtray, and also has the distribution rights to Eddie Ortega’s Ortega Permium Cigars. Xikar previously sold the rights to its cigar lines to Cigars International (owned by STG) in 2013.

4) From the Archives: Are cigar makers losing an opportunity for sales because of their failure to disclose information about their blends? That’s the case we made in What’s on the Label? back in 2013. The argument remains unchanged and, unfortunately, so does the the state of cigar disclosures.

5) Deal of the Week: Here are 100 deals, including cigars from Ashton, Oliva, CAO, My Father, Tatuaje, Rocky Patel, Padrón, Drew Estate, and more. Free shipping is included on any purchase. If you really want to stock up, add promo code “GBP20D” at checkout to knock $20 off an order of $150 or more.

The Stogie Guys

photo credit: Scandinavian Tobacco Group

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