Category: Business

STG Takes Stake in Cigar Manufacturer

Photo: STG
Scandinavian Tobacco Group (STG) has acquired a majority stake in Moderno Opificio del Sigaro Italiano (MOSI), a cigar company with approximately 40 employees and production facilities in Orsago, Italy.
MOSI was founded in 2013 by Cesare Pietrella. The company produces high-quality traditional Italian machine-rolled cigars with a blend of Italian and American Kentucky tobaccos grown on plantations in Northern Italy and in the United States. With a small exclusive offering under the brand Ambasciator Italico, MOSI has gained a market share of approximately 9 percent in Italy for traditional machine-rolled cigars.
“We are excited about this acquisition,” said Jurjan Klep, senior vice president of the Europe branded division in STG, in a statement. “With a majority stake in MOSI, we are acquiring modern cigar-making craftsmanship and a premium brand that will increase our offering to our consumers and the opportunity to take further market share in an important market. This is our fifth acquisition since 2016, and I look forward to further cementing our proven track record of creating value from acquisitions of brands and businesses.”
“Together with Scandinavian Tobacco Group, MOSI and Ambasciator Italico are well positioned for growth, and the acquisition will invigorate the Italian cigar market and benefit Italian cigars smokers, customers and tobacco farmers,” said Cesare Pietrella, founder and president of MOSI.
In related news, STG has restructured its Canadian division, integrating it into its U.S. operations, according to a report by Halfwheel.
Gene Richter, vice president of sales for STG North America, will oversee the Canadian sales team as well as General Cigar Co., Forged Cigar Co. and STG Lane. Cole Patton, with a new role as national sales manager for North American mass market strategic accounts, will oversee the U.S. and Canadian mass market businesses. Mike Restivo, national sales manager of regional accounts for STG Lane, and Jennifer Goodwin, national sales manager for south/west STG Lane, will report to Patton. Marc Rheaume, vice president of sales for STG Canada, left the company.
“We brought these two business units together to deliver untapped growth opportunities,” said Regis Broersma, president and senior vice president of STG’s North America branded and rest of the world division. “Under the new structure, we will work together to capture increased market share while demonstrating an ongoing commitment to building both our Canadian and U.S. businesses.”
November 18, 2021
Olczak: PMI-Altria Merger off the Table

Jacek Olczak (Photo: PMI)
Philip Morris International is no longer pursuing a merger with Altria Group, reports Financial Times.
At the Financial Times Global Dealmaking Summit on Nov. 9 PMI CEO Jacek Olczak said that the “chapter with Altria is closed,” the newspaper reported.
PMI was spun off as a separate publicly traded company from Altria in 2008. Altria operates in the United States and PMI operates in non-U.S. markets.
Industry analysts and observers have speculated for years that the two companies might eventually reunite as they both look to diversify their product lines and offset slow declines in cigarette sales.
The two companies said in August 2019 that they were discussing a possible all-stock “merger of equals.” However, those negotiations ended a month later without any deal.
At the time, Howard Willard, then Altria’s chairman and CEO, said, “While we believed the creation of a new merged company had the potential to create incremental revenue and cost synergies, we could not reach agreement.”
During the recent Global Tobacco & Nicotine Forum in London, analysts said reunification of the companies was unlikely because of PMI’s public commitment to derive more than 50 percent of its net revenues from smoke-free products by 2025. Because Altria currently receives a smaller share of its earnings from such offerings than does PMI, it would be harder for the combined entity to meet PMI’s target, they noted. What’s more, many PMI investors like the fact that they can currently choose whether or not they want exposure to the uncertain U.S. market—an option that would no longer be available after any merger.
Altria holds exclusive rights to sell PMI’s IQOS tobacco-heating device in the U.S. However, the U.S. International Trade Commission ruled in late September that Altria and Philip Morris International must halt imports and sales of IQOS because it infringes two patents held by R.J. Reynolds Tobacco Co. The decision is under administrative review and could be overturned.
November 11, 2021
PMI Picks Stamford for New Headquarters

Photo: Edwin
Philip Morris International’s new corporate headquarters will be located in the heart of Stamford, Connecticut, USA, and is expected to open in summer 2022. The move will initially bring approximately 200 jobs with an estimated economic impact of approximately $50 million in 2022.
In June, PMI first announced it would relocate its headquarters to Connecticut from New York.
“Connecticut’s position as a leader in innovation and forward thinking, paired with a commitment to open-minded civil discourse, allows us to foster an even stronger company culture. PMI will continue to attract an educated workforce, becoming an integral part of the local community and a source of pride for the state,” said Deepak Mishra, president of the Americas region at PMI, in a statement.
“We are making rapid progress toward our smoke-free future,” continued Mishra, “and our new base in Connecticut is more than just an office building—it will be a full campus with a state-of-the-art innovation facility that will help accelerate our transformation.” State officials recognize that PMI is a company with a new purpose and bright future. We are proud that we will be able to call Connecticut home.”

Connecticut’s position as a leader in innovation and forward thinking, paired with a commitment to open-minded civil discourse, allows us to foster an even stronger company culture.
Deepak Mishra, president of the Americas region, PMI
The new 71,484 square foot headquarters will be located at 677 Washington Boulevard in the heart of Stamford’s central business district, steps away from the Stamford Transportation Center and the entrance to I-95, making it easily accessible. The office will open as home to the PMI Americas region and other corporate functions. PMI’s Operations Center will remain in Lausanne, Switzerland, to continue to support the business across the globe. The company employs a worldwide workforce of more than 71,000.
“The decision by PMI to locate its corporate headquarters in downtown Stamford is validation that our economic recovery in Connecticut is in full swing, and we are continuing to see meaningful growth in one of our fastest growing cities,” said Governor Ned Lamont. “We are looking forward to a long and fruitful relationship with PMI and it is clear they are focused on maintaining a strong partnership with the State of Connecticut for the foreseeable future.”
According to PMI, the Connecticut location will offer employees a better range of commuting and living options following the paradigm shift caused by Covid-19. The headquarters will be aligned with PMI’s science- and technology-focused transformation, using state-of-the-art innovation to accommodate remote work and ensure that employees have an inspiring and comfortable workplace.

The decision by PMI to locate its corporate headquarters in downtown Stamford is validation that our economic recovery in Connecticut is in full swing, and we are continuing to see meaningful growth in one of our fastest growing cities.
Ned Lamont, governor, Connecticut
“We are excited that our new location will offer employees and their families a wide range of living options, from the suburbs of Fairfield County to the rural areas of Litchfield County, while also having the advantages of easy access to the New York metropolitan area. More encouraging are the pioneering and community-minded populace, an excellent school system and healthcare facilities, and ample recreational and green space,” said Charles Bendotti, senior vice president of people and culture at PMI.
PMI will take possession of the headquarters on March 1, 2022, with the goal of having the office operational by mid-to-late summer 2022.
November 8, 2021
Broughton Moves Into New Markets

Photo: Broughton
Broughton has unveiled a rebrand that reflects its evolving service offerings to support clients through their whole product life cycle journey. The company states that it is on a mission “to help our clients deliver life-enhancing products to market, by providing the most trusted integrated services in the world.”
Building on years of experience in the pharmaceutical and next generation nicotine products space, Broughton offers its clients fully integrated scientific and regulatory consultancy, combined with comprehensive in-house laboratory services. The launch coincides with the announcement that the business is expanding its services into the rapidly evolving cannabinoids industry.
Moving forward the company will focus on accelerating life-enhancing products to market within strategic markets including pharmaceuticals, nicotine and cannabinoids. Its combined expertise in formulation science, device technology, software applications and aerosol science makes Broughton the ideal strategic outsourcing partner to support client pipeline portfolios of future next generation products, according to the company.
“The launch of the Broughton brand formalizes our rapidly developing position as a full-service solutions provider to the life sciences sector,” said CEO Paul Moran, who founded Broughton Laboratories in 2006. “We will continue our commitment to investing further into global operations delivering scientific and regulatory consultancy combined with comprehensive product development and laboratory services.
“This next phase of our expansion is a natural evolution to grow capacity and capabilities into the broad life sciences sector as technologies improve to target unmet market needs.”
“One exciting aspect of this change is that it facilitates the expansion of our existing pharmaceutical quality and product stability services to support providers of pharmaceutical inhalation products,” said Broughton Chief Scientific Officer Chris Allen. “With expertise in device optimization, human factor studies, navigating complex regulatory pathways for combination products and a track record of quality compliance, our broad expert team can support device development from concept to commercialization.’’
“The expanding team at Broughton hold extensive knowledge of their specialist fields,” said Moran. “This rebrand brings together this expertise with a fresh focus on the journey of our clients’ products to meet an unmet market need. This is an exciting time for the business that will enable us to continue to innovate as we contribute to global health and wellbeing.”
As part of its rebranding, Broughton has created a new website at www.broughton-group.com.
October 20, 2021
BAT to Pull Out of Myanmar
Photo: Taco Tuinstra
British American Tobacco will withdraw from Myanmar by the end of this year, reports The Daily Star.
Responding to a query from Reuters about the status of its operations in the Southeast Asian country, the company said the decision was taken having assessed the long-term viability of its Myanmar business.
“Like any global company, we continuously evaluate our operations around the world,” the company said.
“Having evaluated the long-term operational and commercial viability of our business in Myanmar, we have taken the decision to withdraw from the country and cease all operations.”
BAT did not provide a specific reason for its decision.
Other Western companies have left Myanmar in the wake of February’s coup, which has left the nation in turmoil. The country’s economy is now in dire straits, with the kyat currency losing more than 60 percent of its value last month, pushing up food and fuel costs. The World Bank has forecast an 18 percent contraction in gross domestic product this year.
BAT started operating in Myanmar in 2013, two years after a quasi-civilian government embarked on sweeping reforms to lure investors.
October 13, 2021
PMI to Acquire Turkish Tobacco Firms

Photo: niyazz
Philip Morris International will pay TRY2.88 billion ($325.9 million) to purchase the shares it did not already own in Philsa and PMSA of Turkey, reports Hurriyet Daily News.
Philsa manufactures tobacco products and PMSA is a distribution company. Both were created in the 1990s.
PMI already holds a 75 percent share in the firms. The current owner of the remaining shares, Sabancı Holding, has applied to Turkey’s Competition Authority to sell its stakes in the two companies.
The sale contract is expected to be signed after necessary approvals by the authorities, and the purchase is scheduled for completion by the end of 2021.
October 8, 2021
Universal Completes Acquisition of Shank’s
Photo: Gajus
Universal Corp. has completed its previously announced acquisition of Shank’s Extracts, a privately held, specialty ingredient, flavoring and food company with bottling and packaging capabilities.
The acquisition expands Universal’s plant-based ingredients platform, adding to the company’s product offerings and growing the value-added services available to its customers by adding flavors, custom packaging and bottling, and product development capabilities.
Shank’s has a strong presence within the flavoring, extracts and bottling marketplace, with significant vanilla expertise, according to Universal Corp. In addition to pure vanilla extract products, Shank’s offers a portfolio of over 2,400 other extracts, distillates, natural flavors and colors for industrial and private label customers worldwide.
Shank’s employs more than 200 people and has a 191,000-square-foot manufacturing campus in Lancaster, Pennsylvania, USA.
October 5, 2021
Taat Arrives in the United Kingdom

Photo: TAAT Global Alternatives
More than 43,000 packs of Taat Original, Smooth and Menthol products have arrived in the United Kingdom and will be dispatched to the London warehouse of Green Global Earth (GGE) following a standard customs inspection. This shipment is part of more than CAD1.2 million ($943,996) worth of Taat purchase orders for distribution in the United Kingdom and Ireland, markets in which GGE is the exclusive Taat distributor.
On Aug. 20, 2021, Taat Global Alternatives announced that Public Health England had issued a Confirmation of Registration authorizing Taat to be sold in Great Britain. The company expects Taat to benefit from several competitive advantages in the United Kingdom, including a lower price point than tobacco cigarettes and the “shelf appeal” of Taat’s colorful packaging in comparison to the plain packaging required by law for all tobacco products. Because Taat does not contain tobacco, it is not subject to the U.K. generic packaging requirements.
Furthermore, based on Philip Morris International’s stated intention to stop selling tobacco cigarettes in the United Kingdom by 2030, Taat will not be competing with bestsellers such as Marlboro in the future.
“Less than one year after the first retail launch of Taat in Ohio, we could not be more enthusiastic about our first international expansion materializing shortly after we cleared the 1,000-store threshold in the United States last week,” said Taat CEO Setti Coscarella in a statement. “GGE has proven to be an invaluable distribution partner for us in navigating the steps required to bring Taat into the United Kingdom and Ireland.
“In addition to our advantages with respect to price and packaging in the United Kingdom, we also believe Taat Menthol can be extremely appealing to smokers of legal age in the U.K. who preferred mentholated tobacco cigarettes before they were banned nationwide last year. All three varieties of Taat will soon be hitting store shelves in both the United Kingdom and Ireland in what we believe will be among the first of many launches in new global markets.”
September 29, 2021
Poda Completes Name Change

Photo: Poda Holdings
Poda Holdings has completed the name change from Poda Lifestyle and Wellness to Poda Holdings, pursuant to a directors’ resolution announced earlier this month. The company’s shares will remain trading on the Canadian Securities Exchange under the ticker symbol PODA upon the opening of the markets on Sept. 27, 2021.
The CUSIP number assigned to the company’s shares following the name change is 73044N10 4 (ISIN: CA73044N1042). No action is required by stockholders, and outstanding stock certificates are not affected by the name change and will not need to be exchanged.
In related news, the company has engaged CFN Enterprises, owner and operator of CFN Media, to provide social media and client outreach strategy services for the company.
September 28, 2021
Pharma Events Ban PMI-Owned Vectura

Photo: Vitezslav Vylicil
Pharmaceutical industry conferences have started banning Vectura after Philip Morris International acquired the respiratory drug manufacturer in a contentious £1 billion ($1.37 billion) takeover, reports The Times of London.
The Drug Delivery to the Lungs (DDL) conference, a leading event, has terminated Vectura’s sponsorship and the company’s representative has stepped down from its committee.
“In light of the recent acquisition of Vectura by PMI, the DDL committee [has] sadly decided that they can no longer accept support from Vectura,” the organizers said in a memo seen by The Times.
September 21, 2021