NETHERLANDS/BELGIUM. Scandinavian Tobacco has announced that its Dutch-based ST Cigar Group Holding (STCG) is to acquire BAT’s Belgian cigar company Tabacofina-VanderElst and associated brands within the next few months.
“This move is a further step in realising our objective to reinforce our position in the cigar market, both through acquisitions and organic growth,” said STCG CEO Rob Zwarts, who added that he expects competition in the international cigar market to intensify.
“Growing economies of scale is one of the key elements in defending and improving our current position. We have now strengthened our position as the leading cigar company in Europe and have clearly become one of the top three players worldwide.”
Tabacofina-VanderElst manufactured 420 million cigars in 2006, of which 200 million were for Belgium – the sixth most important market in the world – where the company claims a 40% share. The remainder were either sold to various export markets – primarily France, the Netherlands and Italy – or related to contract manufacturing for third parties.
The company’s main brands are Mercator (the Belgian market leader), Corps Diplomatique, Schimmelpenninck and Don Pablo.
The move gives STCG a small foothold in the Netherlands and follows January’s step into the US with the acquisition of Nashville-based CAO International, a major player in the growing premium handmade cigar market.
Commercial activities will be carried out by Henri Wintermans Cigars Benelux, which is to “substantially increase” its employee numbers in order to support the enlarged brand portfolio.
About ST Cigar Group
ST Cigar Group in Eersel, the Netherlands – also known as Henri Wintermans – is one of the largest cigar companies in the world, with 11 subsidiaries in nine different countries. Of these, six are production companies and five commercial organisations. The group employs around 2,200 people.
Over 1.3 billion cigars in total are sold by the group, including Café Crème – the biggest-selling small cigar in the world – as well as Henri Wintermans, Reas, Colts, Nobel Petit, Che, and Blues. Key markets are the UK, France, Canada and Denmark.
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