Scandinavian Tobacco Group (STG) UK has announced that Royal Agio cigar brands will be joining its portfolio from 1 April.
The move follows the acquisition of the Dutch family-owned business by Denmark-based STG last year for €210 million (£180 million).
Royal Agio is a leading European cigar company with a strong cigar portfolio including key brands such as Mehari´s, Panter and Balmoral. Mehari’s Red Orient is the thirteenth biggest cigar brand in the UK.
“We are very pleased to welcome these brands into our cigar portfolio as it further cements our position as the leading player in the UK cigar category,” commented Alastair Williams, STG UK’s Country Director.
“Brands like Mehari’s enjoy a great heritage and brand story and give us an additional foothold into the small cigar segment. I would like to take this opportunity to thank Hunters and Frankau for their stewardship of the brands, and we welcome a continued collaboration with them in specific trade segments such as specialist tobacco retail. We look forward to an exciting future ahead.”
The acquisition is expected to help STG secure leading positions in France, Belgium and the Netherlands and significantly improve the position in key cigar markets such as Spain and Italy.
Founded in 1904, Royal Agio is one of the four largest cigar manufacturers in the world, with net sales of €133 million in 2018.
STG’s portfolio includes over 200 global brands, such as La Paz, Café Crème, Cohiba, Macanudo and W.O. Larsen, and a number of strong local brands.