Cigars
As the leading premium cigar manufacturer in the US, and with substantial machine-made cigars businesses in both the US and Europe, Swedish Match is well placed in the worldwide cigar market.
During 2008, the Company improved its competitive position through the 2007 acquisitions of Cigars International Inc. in the US, and Bogaert in Europe. New products and new formats were added to the range of the Company’s high quality cigar products.
Operational highlights 2008:
- Sales increased by 8 percent in local currencies
- Smooth integration of the Cigars International and Bogaert acquisitions
- Gains in market share in many important European markets
- US premium cigars hit by slowdown in purchase activity
Main brands:
US premium: Macanudo, Partagas, Punch, Hoyo de Monterey, La Gloria Cubana, Cohiba, Helix, Don Tomas (all produced in the Dominican Republic or Honduras)
US machine-made: White Owl, Garcia y Vega, Game by Garcia y Vega
Europe machine-made: La Paz, Willem II, Bellman, Oud Kampen, Justus van Maurik, Hajenius, Hofnar
Main markets:
the US, France, Spain, Benelux, Germany, Australia
Production units:
the US, the Dominican Republic, Honduras, Belgium, Indonesia
Outlook
As best in class, Swedish Match will become more focused and a more valued supplier, delivering outstanding product, service, and quality for the money, with brands that stand the test of time.
The Company’s cigar business has three legs: Premium Cigars, US machine made cigars, and European machine made cigars. While the brands, product types, and geographies may be different, many similarities in sourcing, systems, and production, to name a few, provide Swedish Match with opportunities to improve, helping our best in class position, and helping us to improve shareholder value over the coming years.