Tag: Universal

  • Universal Announces New Leadership

    Universal Announces New Leadership

    Preston D. Wigner will succeed George C. Freeman III as chairman, president and CEO of Universal Corp. on Oct. 1, 2024.

    Wigner joined Universal in 2003. After serving as the company’s vice president, general counsel and secretary for nearly 20 years he was appointed senior vice president of Universal in December 2023. Prior to joining Universal, Wigner served as an associate with the law firms Williams Mullen and Hunton Andrews Kurth.

    According to Universal, Wigner’s appointment is the culmination of a succession planning process conducted by the board of directors and assisted over the past two years by a global leadership advisory firm. Freeman will serve as vice chair of the company through Dec. 31, 2024, and then as a senior advisor through the company’s fiscal year-end on March 31, 2025.

    “George has played a critical role in shaping Universal into the company it is today, and we are grateful for his tremendous leadership,” said Thomas H. Johnson, lead independent director of Universal’s board, in a statement.

    “During the last several years, George and the senior leadership team have consistently delivered value to Universal’s shareholders by driving strong tobacco results and establishing our Universal Ingredients business. With the positive momentum from our most recent fiscal year and the strong beginning to our current fiscal year, now is the right time to implement this leadership succession.

    “We are delighted to name Preston as our next chairman, president and CEO. Preston has been a valued member of Universal’s senior leadership team for many years. With significant tobacco industry experience, active involvement in our ingredients business strategy from its inception, and deep familiarity with our global organization, Preston has the right mix of skills and expertise to drive Universal forward.”

    I am energized by the opportunity to lead our incredible organization and advance our growth strategy by optimizing our leading tobacco business and expanding our ingredients business.

    Preston D. Wigner

    “It is a privilege to be named chairman, president and CEO of Universal at this exciting time in the company’s 100-plus year history,” said Wigner. “I am energized by the opportunity to lead our incredible organization and advance our growth strategy by optimizing our leading tobacco business and expanding our ingredients business.

    “Our future success will build on the foundational work we have accomplished under George’s leadership as well as our continued efforts to develop and pursue innovative strategies, set new standards of social and environmental performance, and motivate and inspire our global workforce. I am grateful to George for his mentorship and friendship, and I look forward to continuing to work with him through the remainder of our fiscal year.”

    “It has been an honor to lead Universal in building and growing our portfolio of agriproducts and extending our sustainable supply chain operations to now support more than 200,000 farmers over five continents,” said Freeman. “We have made incredible advances in the 27 years I have been with Universal, and I thank our talented employees around the world who work tirelessly for all our stakeholders. As I prepare to leave the board, I would also like to thank each director for their support and guidance as we have worked to position the company for success. I have worked closely with Preston, and my decision to retire is made with the utmost confidence in his ability to advance Universal’s strategy with the support of the board and management team and deliver long-term value for our shareholders. I look forward to supporting a smooth transition.”

  • Cigar Industry Loses a Legend: ‘Fritz’ Bossert

    Cigar Industry Loses a Legend: ‘Fritz’ Bossert

    Fritz Bossert (right) – Photo: Timothy S. Donahue

    It is with sadness that we report the passing of Friedrich “Fritz” Bossert, former CEO of Lancaster Leaf Tobacco Co. and retired regional director of Universal Corporation’s Dark Air-Cured Group. He passed away on May 12. Bossert was a legend in the cigar industry.

    Bossert spent 22 years at Universal. He started as vice president at Gebrueder Kulenkampff, a German subsidiary, in 2002, and in 2005, he was promoted to the position of senior vice president of International Operations and Sales for Lancaster Leaf. In 2009, Bossert was elected Universal’s regional director of its Dark Air-Cured Group and, at the same time, was elected the CEO of Lancaster Leaf Tobacco Co.

    A subsidiary of Universal, Lancaster Leaf specializes in producing dark air-cured tobacco, which is primarily used for making cigars. Bossert was a well-known and popular friend of the cigar industry, and his numerous contributions will always be remembered.

    George C. Freeman III, chairman, president, and CEO of Universal, said that Bossert’s expertise and professional approach in the dark air-cured market fostered trusted partnerships with Universal customers, particularly during the cigar industry’s recent growth years.

    In a note to Universal’s global operations yesterday, Freeman stated that Bossert was a giant in the dark air-cured industry because he was so passionate, knowledgeable and, above all else, he was a gentleman.

    “That is how he approached life as well. Fritz valued loyalty and courtesy and the importance of relationships and friendships. He loved people, so he was just as comfortable attending a black-tie gala as he was standing in the middle of a wrapper field talking to a farmer,” stated Freeman. “I will dearly miss his wisdom, sense of humor, his courteous manner, and his friendship.”

    Fritz Bossert

    Mark Ryan, president of L.A. Poche Perique Tobacco and a longtime friend of Bossert, said he was devastated by the news of Bossert’s passing. 

    “Fritz was brilliant, professional, avuncular and a dear friend to many in our industry,” said Ryan. “He was always available to listen to our concerns and provide helpful insights and guidance. Fritz was an exceptional human being, admired by everyone in our industry, and I wish I could be more like [he was].”

    During a 2020 trip to Cuba with Tobacco Reporter, Bossert taught several media members the art of rolling cigars by hand. Bossert was also well known for handing out his own unique blend of cigar, affectionately referred to as “Fritz Sticks.”

    A global traveler, Bossert was responsible for managing Lancaster Leaf operations in several countries, including Brazil, the Dominican Republic, Ecuador, Indonesia, Nicaragua, Paraguay, the Philippines, and the United States. His insight and impact on the tobacco industry will continue well into the future. He was also a wine aficionado.

    In a recent article commemorating his retirement, Drew Estate paid tribute to Bossert’s instrumental role in developing its MUWAT Kentucky Fire Cured line, a testament to his deep understanding of fire-cured tobaccos. Furthermore, Bossert’s expertise was pivotal in sourcing the Connecticut tobaccos that are the backbone of the Liga Privada brand, a testament to his unparalleled knowledge and influence in the industry.

    Bossert had a deep understanding of tobacco and was especially experienced in tobacco’s journey from farm to factory. George Cassels-Smith, CEO of Tobacco Technology and a longtime friend of Bossert, praised Bossert’s understanding of the industry and his willingness to share his experiences.

    “It is rare that an individual with so much knowledge of tobacco and our industry shares so freely with customers and shares connections to facilitate great products in the marketplace,” said Cassels-Smith. “Fritz was a walking encyclopedia of knowledge, contacts, and know-how, wrapped in a warm-hearted gentleman. His shoes will be hard to fill, and his presence will surely be missed by everyone he touched.

    “Fritz was a legend in this industry and an approachable old-soul gentleman through and through. My heart goes out to his wife, Claudia, his daughters, and all of his friends worldwide; he was a huge positive to everyone he met.”

  • Strong Start for Universal’s Tobacco

    Strong Start for Universal’s Tobacco

    Photo: Taco Tuinstra

    Universal Corp. reported sales and other operating revenue of $517.7 million in the three months that ended June 30, 2023, up 20 percent over that posted during the same period last year. Operating income declined 17 percent to $11 million.

    Tobacco operations sales and other operating revenues jumped 28 percent to $443.9 million, while  Tobacco operations operating income increased 9 percent to $8.9 million.  

    “Our tobacco operations performed well and are off to a good start for our fiscal year 2024,” said Universal Corp. Chairman, President and CEO George C. Freeman III in a statement.

    “Segment operating income was higher for our tobacco operations segment in the quarter ended June 30, 2023, compared to the quarter ended June 30, 2022, even though we did not have the benefit of large shipments of carryover tobacco from certain origins that we had in first quarter of fiscal year 2023.

    “Demand for leaf tobacco from our customers remains strong, and our level of uncommitted tobacco inventory was 16 percent of tobacco inventory at June 30, 2023. We are forecasting increased leaf tobacco production in fiscal year 2024, compared to fiscal year 2023, and believe that even with that increased production, leaf tobacco will remain in an undersupply position.”

    Freeman also expressed satisfaction with the progress Universal has made integrating its plant-based ingredients platform. He attributed soften-than-expected demand in this segment to high customer inventory levels, but anticipated this situation to be temporary.

    “We believe that we are well-positioned to capitalize on demand from our customers, and that with the investments we are making, we are a stronger partner for current and future customers due to the expanded range of capabilities and products that we can offer them,” said Freeman.

  • Universal Ups Dividend Despite Headwinds

    Universal Ups Dividend Despite Headwinds

    Photo: Universal Corp.

    Universal Corp. reported net income for the fiscal year ended March 31, 2020, of $71.7 million, compared with $104.1 million for the prior fiscal year. Excluding restructuring and impairment costs and certain nonrecurring items, net income declined by $25.3 million. Operating income was $126.4 million for the fiscal year, down from $161.2 million for the fiscal year ended March 31, 2019.

    Results reflected earnings declines in Universal’s North America and Other Regions segments, partially offset by earnings improvements in the company’s Other Tobacco Operations segment.

    George C. Freeman III

    “We could not have predicted that we would be closing out our fiscal year in the throes of a global pandemic,” said George C. Freeman, III, chairman, president and CEO of Universal.

    “Uncertain market conditions, mainly driven by the ongoing Covid-19 pandemic, led to extreme weakening of the Indonesian rupiah, Brazilian real and Mexican peso relative to the U.S. dollar, all of which experienced double-digit depreciation during the month of March.”

    These currency weaknesses were the primary drivers for unfavorable currency comparisons, according to Freeman.

    “Towards the end of our fiscal year, we also saw some shipment delays in certain regions due to the Covid-19 pandemic and slower customer orders, which increased our uncommitted inventory levels,” said Freeman.

    “In addition, as we have discussed throughout the fiscal year, our results for fiscal year 2020 have been negatively impacted by lower carryover volumes compared to fiscal year 2019, mainly in North America and Africa. Our gross margins for fiscal year 2020, however, remained relatively flat compared to fiscal year 2019.”

    While some of Universal’s processing facilities experienced partial or total closures due to Covid-19, nearly all operations have resumed with measures to protect employees against infection, according to Freeman.

    In related news, Universal declared a quarterly dividend of $0.77 per share, payable August 3, 2020.

    “Today’s dividend increase is a milestone for our company,” said Freeman. “It is our 50th consecutive annual dividend increase, and we are very proud of this achievement. It represents the continuation of our strong record of returning value to our shareholders through our consistent dividend delivery. We have raised our common dividend every year since 1971.”

    Universal’s annual meeting of shareholders will take place August 4, 2020.

  • Universal results webcast

    Universal results webcast

    Universal Corporation is due to webcast a conference call at www.universalcorp.com from 17.00 Eastern Time on February 7 following the release of its results for the third quarter of fiscal year 2017 after market close on that date.

    The conference call, which will be in listen-only mode, will be hosted by Candace C. Formacek, vice president and treasurer.

    A replay of the webcast will be available at www.universalcorp.com until May 6.

    And a taped replay of the call will be available from 20.30 on February 7 through February 21 at (855) 859-2056, telephone replay identification number 63971570.

  • PMI announces new U.S. tobacco purchasing model

    Philip Morris International is adopting a new leaf buying model in the United States. The company will transition from directly purchasing tobacco through contracts with U.S. growers to purchasing through two suppliers, Alliance One International Inc. (AOI) and Universal Corp. This new purchasing model will take effect on April 1, 2015.

    “Moving to a new system for leaf purchasing in the U.S. will help us achieve important supply chain efficiencies while remaining a major purchaser of U.S. grown tobacco,” said Nicolas Denis, vice-president leaf, PMI.

    “While we are changing our approach to buying tobacco in the U.S., PMI’s commitment to improving farm labor conditions on the farms from which we source tobacco has not changed. We require our suppliers to adhere to our practices, principles and standards, including our leading Agricultural Labor Practices (ALP) program. Through supplying leaf to PMI in many markets around the world, AOI and Universal are key partners in our efforts to implement our ALP program on the farms where we source tobacco. With these new U.S. supply agreements even more U.S. tobacco growers will come under PMI’s ALP standards,” said Denis.

    As a result of this transition, approximately 35 PMI employees based out of Richmond, Virginia, will be impacted.

    “It is unfortunate that this decision will impact some of our employees and it is our priority to provide them with the best possible support and assistance during this transition,” said Denis.