Get 1 Year of Cigar Aficionado for Just $14.95 + A Free Gift!

Cigar Industry

Profits and Sales Increase at STG

Mar 10, 2021 | By David Savona
Profits and Sales Increase at STG

Looking back upon a tumultuous, unpredictable year, European cigar giant Scandinavian Tobacco Group A/S, the owner of Macanudo, CAO, La Gloria Cubana, Diesel and many other handmade cigar brands, as well as the mega retailer Cigars International, had a very good 2020, with increased profits and sales. The company, which is headquartered in Søborg, Denmark and known as STG, released its 2020 earnings this morning.

Net sales increased by 19.2 percent to 8 billion Danish kroner ($1.3 billion), powered in part by increased cigar sales, but especially by the January 2020 acquisition of Royal Agio Cigars, a European maker of slim, small machine-made cigars as well as premium brands such as Balmoral. 

Gross profits rose to 3.7 billion kroner ($594 million), up 18.1 percent from 3.1 billion kroner ($503 million) in 2019.

STG has 11,000 employees, and sells cigars and other tobacco products around the world, with more than half of the company’s sales coming from the Americas. One of the key segments to STG is Cigars International, the massive online cigar retailer, which also has large brick-and-mortar stores. Cigar sales in the United States were up for STG, despite the company losing—for a time—revenues from those stores, including three new ones that opened in 2020, in Texas and Florida. The company now has six of those stores. “Overall, the retail super-stores lounges were negatively impacted by the Covid-19 restrictions across the U.S. in 2020,” said the company in the report. Despite that obstacle, consumers bought more cigars than normal last year. 

One of the company’s future goals, outlined in the report, is to get bigger in the handmade sector. “We want to grow in handmade cigars. This is our primary investment focus, and we will direct our efforts at driving growth across the business, specifically in North America.”

STG’s premium brands are distributed by its subsidiaries, General Cigar Co. and the newly formed Forged Cigar Co.

The company mentioned increased retail expansion and potential acquisitions and methods for the expansion.

More in Cigar Industry

See all
Ferio Tego Inks Distribution Deal With Davidoff

Ferio Tego Inks Distribution Deal With Davidoff

The new owner of the cigar brands once owned by Nat Sherman has just formed a distribution deal with …

Apr 13, 2021
Premium Cigar Imports Surge In January

Premium Cigar Imports Surge In January

The handmade, premium cigar market is booming.

Apr 12, 2021
Fire In Honduras Destroys Alec Bradley Tobacco

Fire In Honduras Destroys Alec Bradley Tobacco

A fire on Thursday destroyed several curing barns and greenhouses in Jamastran, Honduras.

Apr 8, 2021
Indiana Ortez Named General Manager of Mombacho Cigars

Indiana Ortez Named General Manager of Mombacho Cigars

Mombacho Cigars S.A. has appointed Indiana Ortez as general manager for its Nicaraguan operations.

Apr 7, 2021
Cuba Celebrating 55 Years of Cohiba With Virtual Cigar Festival

Cuba Celebrating 55 Years of Cohiba With Virtual Cigar Festival

The virtual Cuban cigar event is called Habanos World Days.

Apr 2, 2021
ProCigar Cancels 2021 Festival in Dominican Republic

ProCigar Cancels 2021 Festival in Dominican Republic

The 2021 ProCigar Festival in the Dominican Republic has been officially canceled.

Mar 31, 2021