Cigars, Cigar Information and where to find Premium Cigars, Discounted Cigars and even Cheap Cigars - HOW SWEDISH MATCH CAME TO BUY CIGARS INTERNATIONAL

HOW SWEDISH MATCH CAME TO BUY CIGARS INTERNATIONAL

HOW SWEDISH MATCH CAME TO BUY CIGARS INTERNATIONAL

Plus: Midwest smokers, your cigar “summit” is coming up!

Los Angeles, August 20 – Have you ever seen an ad for an item that jogs you into action?

Maybe a sale on your favorite watch or that briefcase you’ve always wanted? That is more or less how Swedish Match’s agreement to purchase retailer Cigars International came about.

“We had the idea for some time, but never really acted,” said Swedish Match Executive Vice President and chief of North American Operations Lennart Freeman. “Then, Cigars International came on the market, so we had to hurry up our thinking; it kind of made up our minds we should participate in a growing part in the cigar category.”

With annual sales of about $58 million last year and about 100 employees, Cigars International was certainly a tempting target, and it was definitely for sale. Investment advisors Harris Williams & Co. circulated a brief on the company in April, reviving interest inside Swedish Match in extending its reach within the cigar trade in the U.S., the world’s largest cigar market, into the retail sector.

Said Freeman, “We’re committed to be in the category and to be one of the largest cigar companies in the world. Cigars International has a very good track record and very good people.” So after some due diligence work and a little haggling over the terms, the deal was announced last week.

Freeman, however, was quick to caution that for both Swedish Match and for Cigars International, business would continue as usual. Asked if other U.S. retailers would see a change in distribution now that Swedish Match will have its own retail channel, Freeman said no. “It is very important to maintain integrity and we need to serve everybody in the business as well as we can. Cigars International is quite important to us, but it is one customer.”

Freeman said it was too early to speculate on whether specific Swedish Match products or brands would be developed for sale by Cigars International. The deal should close within 4-6 weeks after filings with the Swedish stock exchange and securities authorities.

So, what will Swedish Match buy next? There are lots of rumors, but “there is nothing that is happening” right now said Freeman. Swedish’s cigar manufacturing portfolio is extraordinarily strong in the Dominican Republic and in Honduras, so perhaps a Nicaraguan-based cigar maker might be on the menu. There are several to choose from and General’s name has been linked to actual and/or rumored discussions with many manufacturers, including Padron Cigars and Drew Estates.

The sale also brings into question what moves other larger manufacturers might make vis-a-vis the remaining large national retailers such as Famous Smoke Shop, Mike’s Cigars and Holt’s. Anyone need some quality distribution at retail out there?

Midwest Cigar Summit set for September 8
The annual cigar party formerly known as the Havana Cigar Fest and Beach Bash and now called the Midwest Cigar Summit will take place on Saturday, September 8 in Peoria, Illinois.

One of the annual features of this unique and relaxed cigar gathering is the “Top 10 Reasons To Smoke Cigars.” Last year’s winner was “With a libation, it’s a mini-vacation” submitted by Millard Woods of Mentor, Ohio. This year’s contest drew 90 entries from 15 states and the top ten included: (10) “I like to pretend I'm rich,” from Mark Stone of Zanesville, Ohio.

(9) “Because nothing looks sweeter than a tight ash,” from Ken Sayer of Huntsville, Alabama.

(8) “It keeps my fingers warm in winter,” from Joel Shank of Colville, Washington.

(7) “Because it's like meditation! Just breathe and relax!” from Sean Simkins of Hemet, California.

(6) “Because other cigar smokers are damn great company!” from Whit Deitrich of Sandy Shores, Texas,

(5) “Chicks dig a large ring gauge!” from Mark Steinberg of Cannan, New York.

(4) “Because CI can’t trademark it!” from Matthew Pinkerton of Glen Burnie, Maryland (Cigars International had asked the event organizers not to use the term “Cigar Fest” as in the past in view of its own trademark of the phrase.)

(3) “Who said breathing had to be boring” from Renee Allred of Glendale, Arizona.

(2) “Because it irritates my mother-in-law!” from Jim Olson of Shepard, Michigan.

(1) “Because it’s a free country … still” from Scott Wolland from Arlington, Virginia.

The winners will have their slogan placed on the back of the event’ souvenir T-shirts for all to see and are invited to the event to read their winning entry during the presentation of the list during the Summit.

The Midwest Cigar Summit has also created a Cigar Hall of Fame with inductees in three classes: people, places, and things. The first three inductees are from the Places category and include Jimmy’s Bar in West Peoria, Illinois, The Metropolitan Society in Fairfield, New Jersey and the Community of Havana, Illinois, a longtime site for cigar making beginning in the 19th Century and continuing up to 1960.

The event itself will take place at Hickory Grove Park near Peoria with an admission charge of $5. Cigars, food and drinks will be for sale and the program will include musical entertainment, a cigar roller, coffee tasting, a salute to the winners of the Top 10 Reasons contest and an awards ceremony for the first inductees in the Midwest Cigar Summit Hall of Fame.

Kinky Friedman on Texas politicians and smoking:
It isn’t hard to get Kinky Friedman (pictured) to speak his mind. Asked last week about the state’s smoking restrictions at an Austin smokeshop at which he was promoting his new cigar line, the former gubernatorial candidate said:

“Things like education and immigration – things like that – they’re letting that slip right through their fingers,” he said. “But keeping me 10 feet from a door? That they can do.”
~ Rich Perelman

Bookmark

Email This

Comments (0) add comment