TobaccoReporter logo

Tag: cigars

  • Scandinavian Reports Steady Progress in Seasonally Low Quarter

    Scandinavian Reports Steady Progress in Seasonally Low Quarter

    Scandinavian Tobacco Group A/S reported a steady start to 2026 with its Q1 interim results, marking the first quarter under its new five-year strategy, Focus2030. Management emphasized early execution on priorities, including stabilizing earnings in machine-rolled cigars and smoking tobacco, revitalizing the handmade cigar segment, and expanding nicotine pouches. CEO Niels Frederiksen highlighted that while the quarter is seasonally weak, the company is laying the groundwork for longer-term growth and sustained shareholder value.

    Net sales for the quarter were DKK 1.859 billion ($297 million), down 6% year-on-year, though the decline narrowed to -0.6% in constant currencies, with timing effects and a -5.2% foreign exchange impact weighing on reported figures. Performance was mixed across categories: machine-rolled cigars showed stabilization supported by power brands in Europe, handmade cigars delivered 8% organic growth, and the XQS nicotine pouch brand continued strong momentum with more than 13% market share in Sweden. Profitability remained broadly stable, with EBITDA before special items rising slightly to 17.2% margin and EBIT margin holding at 10.4%, despite a small negative impact from amortization changes.

    Cash generation was solid for the first quarter, with free cash flow before acquisitions of DKK 158 million ($25.3 million), broadly in line with last year despite working capital timing differences. Adjusted earnings per share declined to DKK 1.1 ($0.176), while return on invested capital fell to 7.8% and leverage increased to 3.0x net debt/EBITDA. The company maintained its full-year 2026 guidance, expecting constant-currency net sales growth of -2% to +2%, EBIT margin of 13.0%–14.5%, and free cash flow of DKK 950–1,200 million ($152–192 million), signaling confidence in its ongoing strategic transition.

  • Crowned Heads Entering U.K. Market

    Crowned Heads Entering U.K. Market

    Crowned Heads is set to enter the U.K. market for the first time through a new distribution agreement with Barkers of Harrogate, according to Halfwheel. The Nashville-based cigar company has not yet begun shipments or confirmed a retail launch timeline, but the partnership marks a strategic expansion into a key international market. Barkers, an established distributor representing brands such as Gurkha and Macanudo, will handle distribution, aligning with Crowned Heads’ push to grow its global footprint in the premium cigar segment.

  • Drew Estate Expanding Operations into D.R.

    Drew Estate Expanding Operations into D.R.

    Drew Estate announced plans to expand into the Dominican Republic with a new manufacturing and agricultural project, Drew Dominicana, expected to open in early 2027, according to the Premium Cigar Association. The development includes a 73,000-square-foot cigar factory in Santiago and a dedicated tobacco farm in Villa González, marking the first time the company will produce cigars outside of Nicaragua, where its operations have historically been based. The company said most production will remain at its Estelí facility, while certain brands, including Deadwood Tobacco Co. Dominicana and Undercrown El Tigre Dominicano, are expected to transition to the new site once operational.

    The project will focus on tobacco cultivation, cigar production, and consumer-facing experiences. Drew Estate said the farm will grow tobacco exclusively for the company and will be led by Dominican cultivator Manuel Peralta. Company executives described the expansion as a long-term strategic investment, with additional details on production and future releases to be announced as development progresses.

  • German Engineered Cigars Debuts Pill-Style Packaging

    German Engineered Cigars Debuts Pill-Style Packaging

    German Engineered Cigars is bringing pharmaceutical-style precision to the cigar world with its new German Engineered Cigars AKUT release. Launching next month, the 4 x 50 petite robusto will debut blister packaging—commonly used for pills—which individually seals each cigar in a humidified cell, protecting it without a humidor.

    Co-founder Oliver Nickels explained that the packaging provides portability, protection, and an effective way to deliver product information through an included insert. The first two blends using AKUT packaging will be Kraftwerk, the company’s fullest blend featuring Mexican San Andrés wrapper and binder with Dominican filler tobaccos, and RVGN Extrem, a 10th-anniversary blend with a Mexican wrapper and Dominican and Nicaraguan fillers.

    The AKUT line will be showcased at the PCA Convention & Trade Show 2026 in New Orleans from April 18–20. German Engineered Cigars has not yet disclosed pricing or shipping dates.

  • Good Times Opens Premium Cigar Division

    Good Times Opens Premium Cigar Division

    Good Times Tobacco launched a new premium, handmade cigar division as it looks to expand beyond its core machine-made business, according to Halfwheel. The move includes plans for proprietary cigar brands, expanded distribution to existing retail partners, an e-commerce platform, and a walk-in humidor at its Tampa headquarters.

    The company has already introduced its first handmade products under the GT One and Done line, with additional offerings planned across multiple price points and formats. Company executives said the strategy will target different retail segments while leveraging Good Times’ existing scale, which, according to the company, sold roughly one billion machine-made cigars last year.

  • Indian Motorcycle Premium Cigars Enter France

    Indian Motorcycle Premium Cigars Enter France

    Indian Motorcycle Premium Cigars, produced under licence by Phil S. Zanghi III, launched in France under an exclusive distribution agreement with Volutes et Vitoles, according to Halfwheel. The cigars, manufactured at the De Los Reyes factory in the Dominican Republic and available in three blends, went on sale in the French market last week, marking their first availability in the country. Zanghi described France as a key global premium cigar market and said the partnership with Volutes et Vitoles is intended to strengthen brand presence and support expansion across all Indian Motorcycle cigar lines in the region.

  • Natura Cigar Co. Tabs City of Palms as U.S. Distributor

    Natura Cigar Co. Tabs City of Palms as U.S. Distributor

    Dominican cigar maker Natura Cigar Co. appointed City of Palms Distribution as its new U.S. distributor, marking a key step in the brand’s international growth strategy. The agreement follows several weeks of discussions and is expected to strengthen Natura’s footprint in the American market while laying the groundwork for broader global expansion, said Dary Munoz, the company’s international sales director, in a press release.

    According to Halfwheel, Natura Cigars was founded in 2020 by Jacob Yfrach, and has a unique tobacco-growing operation in Constanza, Dominican Republic, a high-altitude, cool-climate region that allows for an extended growing season. The company emphasizes slow, temperature-controlled aging to preserve sugars and oils in its tobacco. City of Palms, based in Fort Myers, Florida, distributes nearly two dozen cigar brands.

  • Selected Tobacco Opens Spain’s First Premium Cigar Factory in 50 Years

    Selected Tobacco Opens Spain’s First Premium Cigar Factory in 50 Years

    Selected Tobacco opened a new 3,000-square-meter (30,000-square-foot) premium cigar factory in Madrid, marking the return of premium cigar production to Spain for the first time in more than 50 years. The five-story facility signals a rare revival of Spain’s historic role in global tobacco manufacturing, reintroduced through a modern, vertically integrated model focused on long-term aging, craftsmanship, and controlled production.

    Founded by Nelson Alfonso, and known for cigar brands Atabey, Byron, Alfonso, and Bandolero, Selected Tobacco said Madrid was the sole location considered for the project, reflecting Alfonso’s personal connection to Spain and a deliberate effort to rebuild the country’s presence in premium cigar making through contemporary infrastructure rather than nostalgia.

    The facility is designed to guide tobacco and visitors through the entire production lifecycle. Raw tobacco enters on the ground floor for sorting, fermentation, and aging, while upper levels house design studios, rolling galleries for master torcedores, and a central space capable of hosting industry and consumer events. A key feature is what the company describes as the world’s largest multi-cedar-lined humidor, consisting of 24 individual aging rooms, supporting Selected Tobacco’s proprietary aging protocols.

    Additional areas are dedicated to fermentation and leaf aging, including rooms equipped with French oak wine barrels used to rest wrapper and filler tobaccos. A hydroponic grow room supports seed development and agricultural experimentation, reinforcing a seed-to-cigar philosophy. The top floor includes a private smoking lounge and terrace overlooking Madrid, emphasizing hospitality alongside production.

  • U.S. Cigar Imports Up 4.6% in 2025

    U.S. Cigar Imports Up 4.6% in 2025

    Handmade cigar imports to the United States continue to rise, according to new data released this week by the Cigar Association of America (CAA), signaling sustained growth in the premium cigar market. Imports for the first three quarters of 2025 totaled 318.6 million cigars, a 4.6% increase compared with the same period in 2024, according to Cigar Aficionado.

    Nicaragua remained the dominant supplier, accounting for 190.4 million cigars, up 2.1% year over year. The Dominican Republic followed with 69.9 million cigars, a 3.8% increase, while Honduras recorded the fastest growth among the top producers, with shipments jumping 14.8% to 55.5 million cigars. Together, the three countries accounted for more than 99% of all handmade cigar imports.

    The largest monthly surge occurred in March, when imports rose 29% compared with March 2024, following the announcement of the Trump administration’s “Liberation Day” tariffs affecting cigar-producing countries. In 2024, U.S. imports reached 430 million handmade cigars, up 0.9% from 2023. If current trends hold, 2025 is on pace to mark the fifth consecutive year with more than 400 million handmade cigars imported into the U.S.

  • Scandinavian Shuffles Cigar Lineups Between Divisions

    Scandinavian Shuffles Cigar Lineups Between Divisions

    Effective February 2, Scandinavian Tobacco Group (STG) will reshuffle its U.S. cigar sales structure, transferring five brands between its two internal sales divisions, General Cigar Co. and Forged Cigar Co., according to Halfwheel. Most notably, the non-Cuban Cohiba brand will move from General to Forged, along with Punch and Havana Honeys, as STG seeks to better balance the two divisions. Partagas and Room101 will switch to General.

    The restructuring is part of STG’s Focus2030 strategy and is designed to make General and Forged more equal in scale, despite their unusual internal competition model in which sales teams owned by the same company compete directly for the same retail accounts. STG also plans to expand the Forged sales force and has shifted several lower-volume brands—Brioso, Honduran Bundles, and La Estrella Cubana—to its Meier & Dutch wholesale division, with Los Statos Deluxe, Room101 Farce, and Sancho Panza removed from active price lists, but with no other updates given.