SCANDINAVIAN TOBACCO GROUP ACQUIRES US-BASED CIGAR COMPANY PORTFOLIO

Today, Scandinavian Tobacco Group announces the acquisition of the brand portfolio of US-based cigar company Toraño Family Cigar Company. The acquisition strengthens the position of General Cigar which is the U.S. market leader for handmade cigars and wholly owned by Scandinavian Tobacco Group.

Toraño Cigars is a premium brand in the US and has Cuban heritage. Founded in 1916, the grandfather of the current owner and president, Charlie Toraño, started as a tobacco grower in Cuba, expanded into growing in Nicaragua, Mexico and Ecuador and later on went into cigar manufacturing. Today, the Toraño brand carries a solid reputation inside the premium cigar industry and is recognised for having complex blends featuring tobacco from many different countries of origin and taste profiles.

CEO, Anders Colding Friis, Scandinavian Tobacco Group, says:

“We are excited about this bolt-on acquisition to General Cigar. Toraño Cigars is a strong brand and supports General Cigar’s stable sales and cash flow. With General Cigar’s national sales in the US, vast tobacco library and talented team of tobacco masters, General Cigar is well-positioned to grow the brand.”

Today, Toraño Cigars has a limited sales force and has outsourced its production to, among several others, General Cigar’s factories in the Dominican Republic and Nicaragua.

“The Toraño acquisition is an example of how we leverage our business platform and grow market share. We are pleased with welcoming Toraño to our Group and are looking forward to taking the brand to new heights,” says Anders Colding Friis.

For further information please contact: CEO, Anders Colding Friis or Director of Group Communications, Kaspar Bach Habersaat, kaspar.bach@st-group.com or phone +45 7220 7152.

ABOUT GENERAL CIGAR COMPANY

General Cigar Co. is a leading manufacturer and marketer of handcrafted cigars for the premium market in the US. The company is owned by Scandinavian Tobacco Group.

Committed to delivering cigars of the finest quality, General Cigar’s skilled artisans produce Macanudo®, Cohiba®, La Gloria Cubana®, Partagas®, CAO®, Punch®, Hoyo de Monterrey®, Excalibur® and several other leading premium brands in the company’s Dominican, Honduran and Nicaraguan factories.

In addition, the company cultivates proprietary tobacco which is used exclusively in its blends and has a dedicated R&D practice that develops new varieties of tobacco and revitalizes vintage seeds.

Based in Richmond, VA, General Cigar sells through wholesalers and retailers in the US. General Cigar also operates Club Macanudo®, a cigar bar in New York City.

ABOUT SCANDINAVIAN TOBACCO GROUP

- a world leading manufacturer of cigars and traditional pipe tobacco

- approx. 8,200 employees in the Dominican Republic, Honduras, Nicaragua, Indonesia, Europe, New Zealand, Australia, Canada and the US

The Group’s brand portfolio contains more than 200 international, regional and local tobacco brands, including the cigar brands Café Crème, La Paz, Henri Wintermans, Macanudo, CAO, Partagas (US) and Cohiba (US). Pipe tobacco brands include Captain Black, Erinmore, Borkum Riff and W.Ø. Larsen, while leading fine-cut tobacco brands include Bugler, Break, Escort, Bali Shag and Tiedemanns.

The Group is ultimately owned by two Danish foundations (51%) – the Augustinus Foundation and Det Obelske Familiefond – and by Swedish Match (49%). Both Danish foundations have been active in the tobacco industry for more than 250 years. Swedish Match is a publicly owned company listed on the Stockholm Stock Exchange.

Read more: www.st-group.com.

Scandinavian Tobacco Group A/S
Sydmarken 42
DK-2860 Søborg
Denmark

CVR 31 08 01 85