Background
Scandinavian Tobacco Group (STG) became a pure-play cigar & pipe tobacco manufacturer, following the acquisition of its cigarette & snus business (“House of Prince”) by BAT in 2008. With operations mainly in Europe & the USA, STG owns well-known brands like Macanudo, La Gloria Cubana, Panter, Signature, La Paz, Café Crème, Cohiba, Partagas and Captain Black. Since 2022, STG is exploring opportunities to enter the Next Generations Products (NGP) category in order to complement its core cigar & pipe tobacco range (portfolio diversification) and to re-ignite revenue growth (“Growth Enablers”).
January 2026: STG Reorganizes U.S. Cigar Distribution to Balance Sales and Strengthen Brands
Scandinavian Tobacco Group (STG) announced a strategic re-organization of its U.S. premium cigar distribution structure, effective February 2, 2026, aimed at balancing sales resources across its internal sales entities and better supporting key brands in the market. The changes involve a shuffle of several major cigar brands between STG’s two dedicated sales divisions — General Cigar Company and Forged Cigar Company — as well as adjustments involving a third distribution arm, Meier & Dutch. The initiative is part of STG’s broader FOCUS2030 strategy to optimize growth and competitiveness in the North American cigar category.
Under the new structure, General Cigar Company will continue as one of STG’s principal U.S. sales and distribution organization, with a portfolio anchored by long-established mainstream and premium brands. After the re-alignment, General’s lineup includes Partagas and Room101 (both moved from Forged), alongside its existing marquee names such as Macanudo, CAO, Hoyo de Monterrey, Don Tomas, El Titan de Bronze, Excalibur, Panter, Mehari and Humi-Care. General Cigar Co. operates as a full-service distributor with a broad national sales force, historically responsible for many of STG’s largest and most heritage-oriented cigar brands.
The Forged Cigar Company, created by STG in 2021 as a distinct sales division with its own specialized sales team, will receive several high-profile brands from General’s portfolio. Under the re-organization, Forged will now handle Cohiba (non-Cuban), Punch, Havana Honeys, and Alec Bradley in addition to its existing roster that includes Bolivar, La Gloria Cubana, Diesel, El Rey Del Mundo and Odyssey. Forged’s model is designed to deliver more focused, boutique-style attention to brands with strong growth potential and to bring greater balance between the two internal sales organizations, enabling more competitive coverage and retailer support across the combined STG portfolio.
In addition to the two primary STG sales entities, Meier & Dutch — the wholesale distribution arm of Cigars International — plays a complementary role in reaching segments of the market that may not be covered directly by General or Forged. As part of the portfolio adjustments, several smaller or lower-volume lines such as Brioso, Honduran Bundles and La Estrella Cubana have been moved into Meier & Dutch’s distribution. This allows STG to optimize channel coverage by leveraging Meier & Dutch’s strengths in wholesale and alternative retail channels, while streamlining brand portfolios in the core sales teams.
Overall, the re-organization reflects STG’s effort to create more evenly scaled sales forces, improve operational efficiency, and sharpen brand focus across its U.S. distribution network. By redistributing brands between General Cigar Co., Forged Cigar Co. and Meier & Dutch, STG aims to foster stronger retailer relationships, enhance market penetration for its key cigars, and better align resources with evolving market opportunities.
December 2025: Financial Calendar – 2026
Scandinavian Tobacco Group (STG) announced the financial calendar for 2026:
– Full-year 2025 Annual Report: March 4, 2026
– Annual General Meeting: April 15, 2026
– Interim report Q1 2026: May 20, 2026
– Half-year report 2026: August 26, 2026
– Interim report Q3 2026: November 11, 2026
November 2025: Scandinavian Tobacco announces the Focus 2030 strategy
Scandinavian Tobacco Group (STG) announced its next five-year strategy, Focus2030, ahead of the Capital Markets Day (November 20, 2025). The strategy aims to create a company that has:
– A sustainable and stable machine-rolled and smoking tobacco business primarily focused on Europe
– A growing and increasingly attractive handmade cigar business anchored in the US, with a stronger global footprint
– A bigger nicotine pouch business with more upside in an attractive category.
The financial ambitions are:
– Return on invested capital (ROIC) of at least 11% by end of 2030
– Compounded annual organic EBIT (before special items) growth by a low single digit percentage
– Free cash flow before acquisitions of at least kr.1.2 billion in 2030.
The financial ambitions reflect the strategic initiatives embedded in the strategy, disciplined capital deployment, incremental earnings improvements and free cash flow generation, enabling attractive shareholder returns based on a new flexible shareholder return policy and a commitment to maintain a balanced leverage ratio. STG will supplement the financial ambitions with annual guidance for reported net sales growth at local currencies, EBIT before special items, free cash flow before acquisitions and adjusted earnings per share.
The shareholder return policy is changed to dividend pay-out ratio policy based on a 40-60% pay-out against adjusted earnings per share supplemented by share buy-backs when the projected leverage ratio allows. The distribution of excess capital will be based on a comparison of the projected leverage ratio against a target of 2.5x. Since its listing on the Copenhagen Stock Exchange in 2016, STG has returned more than kr.9 billion to shareholders in the form of dividends and share buy-backs.
As a part of the Focus2030 Strategy and to support cost efficiency and earnings resilience, STG intend to deliver about kr.200 million in cost improvements as part of achieving the financial ambitions with full effect expected early in the strategy period.
May 2025: Scandinavian Tobacco reduces the share capital
As per the decision taken on April 9, 2025 at the Annual General Meeting, Scandinavian Tobacco Group (STG) registered with the Danish Business Authority a share capital reduction of kr.6 million through the cancellation of a part of the treasury shares repurchased. Following the capital reduction, STG’s share capital amounts to nominally kr.80 million divided into 80 million shares of kr.1 each and STG owns a total of 1,265,625 treasury shares, representing 1.58% of the share capital. The total number of voting rights is 80 million.
May 2025: Capital Group reduces its STG stake to below 5%
Los Angeles, California-based Capital Group notified that it owns 4,226,410 Scandinavian Tobacco Group (STG) shares, corresponding to 4.91% of the total share capital. Previously, Capital Group owned 4,921,237 STG shares (5.72% stake). Capital Group is STG’s largest unaffliated shareholder.
Chr. Augustinus Fabrikker Aktieselskab (CAF) and C.W.Obel A/S (CWO) own 27.30% and 12.59% stake in STG. In addition, STG owns a total of 7,265,625 treasury shares, corresponding to 8.45% of the total share capital. Free-float ratio: 51.66%.
June 2024: Acquisition of Mac Baren Tobacco
Scandinavian Tobacco Group (STG) acquires of all the shares of Mac Baren Tobacco Company from Halberg A/S. On a debt and cash free basis (the enterprise value), the transaction is valued at kr.535 million (US$77 million). The acquisition will be financed by cash at hand and debt while the closing of the transaction is expected shortly. The acquisition further strengthens STG’s position in pipe tobacco and extends its presence in the fast-growing nicotine pouch category.
Mac Baren is a family-owned business founded in 1826 and is a leading global smoking tobacco company, which includes a strong portfolio of pipe tobacco brands such as Mac Baren, Amphora and Holger Danske as well as fine-cut tobacco brands like Amsterdamer, Choice and Opal. The company also produces and sells nicotine pouches with the brands ACE and GRITT.
Mac Baren’s products are sold in 74 countries with the majority of net sales generated in the US, Denmark and Germany. Other key markets include the UK, France, Spain and Italy. The company is based in Svendborg, Denmark with production facilities in Denmark and in Richmond, Virginia in the US. The company has approximately 200 full-time employees.
Mac Baren’s FY23 net sales were kr.723 million (US$104 million), generating an EBITDA of kr.85 million (US$12 million). Nicotine pouches accounted for close to 20% of net sales with a small negative contribution to EBITDA.
STG’s FY24 guidance, excluding the impact from the acquisition of Mac Baren, remains unchanged. The financial impact of the acquisition will be communicated after the completion of the integration planning (- which may take up to 120 days).
When fully integrated, the transaction is expected to be accretive to STG’s margin, EPS and ROIC. STG’s leverage ratio (net interest-bearing debt / EBITDA) will temporarily exceed the target leverage ratio of 2.5x. The transaction will not impact the ongoing kr.850 million share buy-back program.
April 2024: XQS launch in the UK
STG had announced its plan to roll-out of XQS nicotine pouches to additional markets in 2024 as part of its “Growth Enabler” initiatives. In line with this announcement, STG will launch XQS in May 2024 in the UK – the largest nicotine pouch market in Europe, after Scandinavia, accounting for close to 10% of the global category turnover. XQS will be available in four varieties & strengths (Tropical – 8mg, Blueberry Mint – 8mg, Cool Ice – 9.6mg, Arctic Freeze – 11.2mg) and with a recommended RSP of £5.5 (for a can of 20 pouches).
STG claims that XQS pouches are uniquely smaller to ensure a comfortable fit under the lip, release a long-lasting burst and come in fully recyclable packaging. Recall that, in May 2023, STG acquired (substantially) all assets of XQS – a company active in smoke-free products (nicotine pouches), primarily in Sweden. Since the acquisition, STG’s commercial support has turned XQS into the fastest-growing nicotine pouch brand in Sweden – more than doubling in market share to become a top-five brand in the country.
STG had previously test-marketed STRÖM (its own non-tobacco, nicotine pouches) in 250 c-stores in Manchester between Oct 2022 and March 20231.
Capital Markets Day – 20232
STG underlines “Moderation & Avoidance (of Smoking)” as a global trend: consumers not willing to compromise on the comforting indulgences while looking for (better) alternatives. STG is planning to capitalize on this trend by launching XQS nicotine pouches in ~10 markets in 2024.
STG’s NGP portfolio has less than 1% weight in total net sales and currently includes 4 different products in 4 countries: nicotine pouches in Sweden and UK, energy pouches (no tobacco & no nicotine) in Denmark and hemp product in the US. In addition to the organic growth aspired, STG’s strategic screening (for M&A opportunities to grow/strengthen its brand portfolio) now includes NGPs (white pouches: no tobacco, with or without nicotine).
NGP Initiatives
STG is actively exploring the opportunities in NGP/RRP and Beyond Nicotine categories. In May 2023, STG acquired (substantially) all assets of XQS – a company active in smoke-free products (nicotine pouches), primarily in Sweden. In 2022, XQS reported kr50Mn net sales (with a low single-digit EBITDA margin) and 3Mn cans sales volume. Moreover, in April 2023, STG launched !act, a caffeine pouch product without tobacco/nicotine, in Denmark. STG considers roll-out of XQS and !act to additional markets.
However, STG also notes that they are “assessing whether their presence in the NGPs is viable and profitable in the mid- to long-term”.
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