15 January 2010 – Tobacco and matches group Swedish Match AB (STO: SWMA) and Denmark-based Scandinavian Tobacco Group A/S (STG) have signed a letter of intent (LOI) to form a 49/51 joint venture
with focus on cigars, the parties said today.

The new entity will include Swedish Match’s cigar business, with the exception of the US mass-market cigars, as well as its remaining pipe tobacco and accessories operations. STG will contribute all of its tobacco business, including cigars, pipe tobacco and fine-cut tobacco.

Based on preliminary valuations, STG will compensate Swedish Match by some EUR40m to account for the planned shareholding and the relative differences in enterprise value on a debt and cash free basis.

STG’s current CEO Anders Colding Friis will become chief executive of the new company, which will have an annual turnover of some EUR700m and a combined volume of over 2.5 billion cigars and 1,650 tonnes of pipe tobacco.

The new entity will comprise cigar brands such as STG’s Cafe Creme, Henri Wintermans, Colts and Mercator, and Swedish Match’s Macanudo, Partagas, Punch and La Paz. Its pipe tobacco brands will include Erinmore, Clan and W.O.Larsen from STG, and Borkum Riff and Half&Half from Swedish Match.

The transaction is subject to due diligence by both parties, as well as to bondholder and regulatory approvals.

After the joint venture is established, STG will keep its smokeless tobacco and pipes business.

This is big news for the cigar industry, and I will be sure to keep you updated as more news develops.

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Here’s another press release from our good friends over at Miami Cigar & Company. After the success of the Miami Cigar & Company New York Extravaganza, they are planning another major bash in Washington, DC. Details are below in the press release. If you are anywhere near Washington, DC, make a point to go!

FOR IMMEDIATE RELEASE

“MR. MIRANDA GOES TO WASHINGTON”

Miami, FL 4 January 09…Following the tremendous success of their “Miami Cigar & Company New York Extravaganza,” Nestor Miranda and Rene Castaneda will be bringing their own flying circus to W. Curtis Draper’s Washington, DC tobacco emporium on Friday, 8 January. The shop, at 640 14^th Street NW, has been in business, supplying Washington’s cigar lovers, since 1887.

This time, the event, replete with free cigars; bonuses with purchase, has been styled “The Nestor Miranda Experience.” Customers who purchase any box of Miami Cigar & Company’s Nestor Miranda Collection Special Selection will be given raffle tickets.

The raffle tickets will entitle them to a chance to be the winner of a $1,000 gift certificate to Salvatore Ferragamo. Ferragamo is Nestor Miranda’s favourite shoemaker, and the winner will experience a small part of the Nestor Miranda Lifestyle.

Best of all, the attendees at the event, will get to meet Nestor Miranda and enjoy smoking cigars from the Nestor Miranda Collection Special Selection Coffee Break (4.5 x 50), Lancero (7.5 x 40) and Ruky (5-5/8 x 48 x 52), a superb mini-Salamon, as well as the popular Toro (6 x 60) and the Robusto  (5.5 x 54)  – all available in both a Habano Rosado and Habano Oscuro wrapper.

Since the introduction of the Nestor Miranda Collection Special Selection in the fall of 2008, the cigar, collaboration between Nestor Miranda and Pepin Garcia, has captured the imagination of smokers all over the country.

At the recent Little Puff, a major cigar event staged by W. Curtis Draper, these cigars were among those in the greatest demand, and smokers attending the event clamoured to meet Nestor and be photographed with him.

END

Miami Cigar & Company distributes its own products as well as La Aurora©, Leon Jimenes©, 601©, Cubao©, Mi Barrio©, Murcielago©, Ducados© and Schakolad Chocolate Factory© chocolates, which are trademarks of other companies.

We are looking to make a large donation of stogies to our heroes fighting for us overseas. The men and women who put their home lives on the back burner and their bodily lives on the line everyday for us deserve anything we can offer to make the days go by. Especially at this time when being with family means so much to many people and these fine folks have given up that opportunity to be on the front lines for us. Our troops and their families sacrifice so much so we can enjoy the things we do everyday so even if it is only a short respite from what they are dealing with on a regular basis, we want to provide a means to “get away”, either with friends or alone, and have a smoke to reflect on things aside from the every day rigors they have to endure. We also want them to know how proud we are of them and that we truly appreciate what they are doing. We know that there aren’t enough cigars in the world to show our thanks but every little bit helps.

So here’s the deal…we are asking for donations from you, our loyal readers/watchers. It can be anything you wish but for every premium stick you donate, your name will be entered in a raffle. The more you donate, the more chances you have at the prize. We know that there is no incentive needed to donate for this cause, but this raffle is merely our way of thanking you for your generosity. If you feel like you would prefer to donate your prize as well, then that is your prerogative.

To donate, send your packages to:

Brian Magill
PO Box 32
Hollywood, MD 20636
Contest Rules

* Cigars must be received by December 15 to be entered in the raffle although we will send along anything we receive after that date.

** Please include documentation of your smokes (at least the # donated) with your Name and at the very least a valid Email Address so we can contact you. If you want to throw in a phone # or address, that is up to you. Also, send along an email when you send out your sticks so we can keep an eye out for them.

Depending on the number of donations, we may donate to multiple detachments. Once we know for sure where the donations will go, we will let you know. We are hoping to document this endeavor both before shipment and after the items have been received via pictures and video. We are hoping we can get some great shots of our troops enjoying the fine smokes you have donated.