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FESTIVAL DEL HABANO WRAPS UP

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But Altadis U.S.A. has created a unique series around a special blend and then named each shape for one of its famed brands: Montecristo, Romeo y Julieta, Trinidad and H. Upmann.

The blend, made at the massive Tabacalera de Garcia in the Dominican Republic, features a Mexican-grown Corojo wrapper, Connecticut Broadleaf binder and filler leaves grown in the Dominican Republic and Nicaragua.

The taste figures to be full-bodied and there are four sizes:

Montecristo: 6 1/8 inches by 52 ring torpedo: $18.00 retail;

Romeo y Julieta: 7 inches by 54 ring: $16.00 retail;

Trinidad: 6 inches by 54 ring: $14.00 retail, and

H. Upmann: 5 inches by 54 ring: $12.00 retail.

All sizes are packed in boxes of 21 and all cigars are double banded with the brand band on top and a second band with the “Edicion Limitada” label just below it.

British American Tobacco buys Scandanavian Tobacco Group cigarette lines:
The world’s second-largest tobacco concern, British American Tobacco just got bigger. It announced last week that it had arranged the purchase of the House of Prince, Fiedler & Lundgren and J.L. Tiedemanns cigarette companies from Scandanavian Tobacco for $4.1 billion in cash and ST Group stock.

“ST’s cigarette and RYO businesses are of such a size and character that we cannot grow through acquisitions of companies,” said ST chairman Joergen Tandrup to the Associated Press, “but only by acquiring market share from our competitors.

“By selling now, we ensure the companies a strong position in a large, international company.”

These firms produced 27 billion cigarettes last year for ST, of which 19 billion were exported.

That’s good for BAT, which is growing by acquisitions as the cigarette industry continues to consolidate. In the meantime, what is ST going to do with all that cash?

The company retained its cigar divisions, which includes the well-known Henri Wintermans brand as well as Nashville-based C.A.O. cigars. Could ST be ready for some acquisitions of its own? With that amount of cash available, perhaps even Swedish Match could be in reach, or ST could move in a different direction and assemble a series of smaller cigar companies to create a very large one, perhaps including a direct retail arm in the U.S. such as Altadis did in acquiring J-R Cigars or Swedish Match did in purchasing Cigars International.
~ Rich Perelman

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