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Last post 2 months ago by tonygraz. 5 replies replies.
Interesting STG note
midmofan Offline
#1 Posted:
Joined: 04-25-2014
Posts: 797
I was looking up the information on STG (which, for any who do not know, owns CI, Cbid and other cigar companies) and STG's purchase of the "Machine-Gun-Themed" cigar outlet from sunny Florida (as noted in another thread) and ran across this interesting note:

"STG also own Cigars International which suffered order fulfillment issues last year causing many customers to find alternatives. In May it was announced that STG earnings slipped due to these issues and the company announced their organic growth shrunk down to negative 10%."

10% Growth shrinkage (from what had been projected to be a 3-5% increase) because of an IT screw-up where nobody realistically tested totally new and different computer ordering, processing or email systems before it was all put on line with no back-up plan if it failed!!! Even worse, my orders here were delayed! Sure hope lots of heads rolled.

BTW, I still see it posted now and then that this place is owned by Swedish Match Company, but Swedish Match no longer owns any part of STG or CI (with CI owning Cbid...).

STG was initially started as a company owned jointly by Swedish Match and the Scandinavian Tobacco Group (formerly British-American Tobacco). Swedish Match transferred all of its premium cigar brands (including its General Cigar operations and brands like Macanudo, Punch, Cohiba, CAO and La Gloria Cubana) and outlets like CI and Cbid to a NEW company that confusingly took over the name "Scandinavian Tobacco Group" or "STG." Swedish Match had a 49% share of the new STG.

Swedish Match retained its mass-market cigars such as White Owl and Garcia y Vega, snuff, snus and chewing tobacco business as well as its legacy match and lighter operations. Since then, however, Swedish Match has sold all of its shares in STG and no longer has an ownership interest in those premium cigar brands or in our hosts for this board - although no doubt they all now share many of the same major stockholders.

If you ever want a bizarre read, look up the history of Swedish Match. It was created by one of the first major international scam-artists Ivar Kreuger - who might have killed himself or might have been murdered after some of his fraudulent schemes fell apart. Back then much of Europe treated match production like a public utility. The production and sale of matches was a monopoly run either by the government or by a single licensed company that had a deal with the government. Kreuger built up his empire by loaning money to needy governments (and bribing government officials) in exchange for taking over the match monopoly. At one point his company controlled 60% of the world's match production. From there it was a logical transition into tobacco, gas lighting, and other endeavors that, initially at least, all needed matches (they still own light bulb companies in South America). The shenanigans he and his companies were involved in remind you of the business dealings in Godfather III.
KingoftheCove Offline
#2 Posted:
Joined: 10-08-2011
Posts: 5,137
midmofan wrote:
................. The shenanigans he and his companies were involved in remind you of the business dealings in Godfather III.

Yeah..........and La Princessa has the NERVE to complain about OUR minor shenanigans...
ZRX1200 Offline
#3 Posted:
Joined: 07-08-2007
Posts: 48,743
Ivar Kreuger was the first Platinum Member.

Now he’s a Carbonite member. #looselipssinkships
KingoftheCove Offline
#4 Posted:
Joined: 10-08-2011
Posts: 5,137
ZRX1200 wrote:
Ivar Kreuger was the first Platinum Member.

Now he’s a Carbonite member. #looselipssinkships

Yep...
We should present an annual Kreuger award for the most deserving member of the “Club.”
I nominate ZRX1200.
tonygraz Offline
#5 Posted:
Joined: 08-11-2008
Posts: 10,375
Second.
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