Scandinavian Tobacco Group (STG) has announced its initial plans for Alec Bradley, the cigar company it recently acquired as part of a deal valued at roughly $72.5 million. That deal closed yesterday, meaning STG can now begin to unveil its plans for Alec Bradley.
Today, STG announced that Alec Bradley Cigar Co. will continue to operate normally for up 90 days, after which, the brand will be integrated into Forged Cigar Co., one of STG’s existing U.S. cigar salesforces.
No specific information was given about Alec Bradley’s salesforce, but today’s announcement makes it clear that Alec Bradley Cigar Co. will shut down by June 1 and the brand will be sold by Forged Cigar Co. sales representatives. STG plans on expanding the Forged sales team, it’s unclear by how much and what that would mean for the Alec Bradley sales team.
A press release last week said that Alec Bradley had approximately 30 full-time in North America. The Alec Bradley headquarters in Fort Lauderdale, Fla. was not included in this deal.
“The acquisition of the Alec Bradley cigar business is another important step toward our goal of being the undisputed global and sustainable leader in cigars,” said Niels Frederiksen, ceo of STG, in a press release. “Through this impactful, bolt-on acquisition, STG will expand our portfolio of highly-regarded premium cigars and increase sales by continuing to meet the high expectations of Alec Bradley’s loyal consumers in the US and globally. We will also leverage the strength of the Alec Bradley brand portfolio to deliver more excitement to the handmade cigar category, benefitting the cigar enthusiast and our trade partners. We look forward to drawing inspiration from and working with Alan Rubin to uphold the legacy of the Alec Bradley brands.”
The press release says that Alan Rubin, the company’s founder, will become an advisor “for the foreseeable future” to STG, reporting to Régis Broersma, president of STG’s North America and Rest of World. Alec and Bradley Rubin—Rubin’s sons for whom the company is named—are expected to join the company in roles to be determined.
“I am extremely excited for the next chapter of the Alec Bradley cigar business and view the acquisition by STG as a pivotal point in the life cycle of the Alec Bradley brands,” said Alan Rubin. “Our union with STG will further propel the Alec Bradley brands, enhancing our growing position in the market and opening the door to expanded global distribution. Together, we will leverage STG’s resources to bring the Alec Bradley brands to their full potential. I would like to take this opportunity to thank the Alec Bradley team and the premium cigar community for their ongoing commitment to the Alec Bradley brands.”
Between now and the end of the up-to-90-day period, STG says Alec Bradley will “continue to operate as usual.”
In early 2021, STG divided General Cigar Co.’s massive portfolio of cigar brands into two sales teams: General and the newly-created Forged. Currently, Forged distributes Room101, Diesel, Chillin’ Moose, and the non-Cuban versions of the Partagas, La Gloria Cubana, Bolivar and El Rey del Mundo. Alec Bradley’s portfolio will be added to that list.
General Cigar Co. currently sells CAO, Macanaduo and the non-Cuban versions of Cohiba, Hoyo de Monterrey and Punch in the U.S. The previous General Cigar Co. infrastructure remains in place, responsible for production, product development, marketing and other facets of the business for both the brands sold by General and Forged.
In addition to General and Forged, STG also owns Cigars International, Thompson Cigar, Agio and other cigar-related businesses.
Analysis of the deal can be found here.