In case there was any question about the influence of Scandinavian Tobacco Group in the cigar market, they’ve completed yet another blockbuster deal. Just months after acquiring Room101 in the summer of last year, STG is now set to pick up Alec Bradley.
As many reading this already know, Alec Bradley is a huge name in cigars. And it should be noted that this deal isn’t a sign that they were faltering. On the contrary, the company posted a 5% increase in cigars sold from 2021 to 2022. Between this objective success in sales numbers and Alec Bradley’s brand recognition, it’s no surprise STG was willing to pay a reported $72.5 million for the acquisition.
To put that figure in context, STG is a company with annual sales figures in the billions. It is the parent company of General Cigar Co., and it currently produces cigars in Nicaragua, Honduras, and the Dominican Republic. By contrast, Alec Bradley’s sales were $25 million in 2021 (according to STG) and they have a modest staff of roughly 30 full-time employees.
It should be noted that STG hasn’t mentioned any changes to the production of existing Alec Bradley blends, which hopefully translates to few changes for consumers. Of course, that can always change. If you were thinking about grabbing your favorite Alec Bradley cigar, now might be a good time!