STRONG MARKET POSITIONS

Scandinavian Tobacco Group is a world leading manufacturer of cigars and pipe tobacco. Our business is founded on extensive tobacco expertise and consumer insights aimed at creating and maintaining our portfolio of leading, international and regional brands.

Our value chain

We perfect

FROM CULTIVATION TO CONSUMPTION, EACH STAGE OF OUR GLOBAL TOBACCO VALUE CHAIN IS MANAGED SUSTAINABLY TO SUPPORT OUR AMBITION TO BE THE UNDISPUTED LEADER IN OUR INDUSTRY.

1. Nature's finest tobaccos are purchased in across the globe

All tobacco starts with a seed. The development of a tobacco plant depends on factors such as soil, sun, rain, position of the leaf on the tobacco plant and the time of harvesting. Apart from Caribbean Cigars Holding Group, in which we own a 20%-stake, our cultivation activities are limited.

2. We purchase raw tobacco

We purchase raw tobacco from the majority of all tobacco grow- ing countries. Tobaccos used for cigars, pipe tobacco and ne-cut tobacco are not the same. More than two thirds of the raw tobac- co market for pipe tobacco and ne-cut tobacco is handled by three large wholesalers, whereas tobacco for cigars is purchased from a number of smaller suppliers.

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3. Our production setup is global

We have a global supply chain with 14 manufacturing sites. Production is strategically located close to both tobacco growers and the consumers. Handmade cigars are produced in the Do - minican Republic, Honduras and Nicaragua, while machine-made cigars are primarily produced in Europe, the Dominican Republic and Indonesia. Pipe tobacco and fine-cut tobacco are produced in Denmark and the US.

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4. We nurture brands and sell in more than 100 countries

We have more than 500 sales people in 16 sales offices throughout Europe, the US, Canada and Australia and sell our products in more than 100 markets.

5a. GLOBAL BRICK AND MORTAR PRESENCE

We sell via wholesalers, distributors, supermarkets and specialty shops.



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