Examine The Biggest Cigar Companies In The World
As cigars continue to grow in popularity, a few international corporations are raking in a staggering amount of profit. While many cigar brands remain small, these craft producers only make up a fraction of the industry. In total the global cigar industry is worth $20 billion, with only $1.5 billion going towards luxury hand rolled cigars. This major discrepancy is fueled by the massive international demand that small producers simply can’t keep up with. As smoking cigarettes continues to decline, premium cigar sales are enjoying 5% growth every year.
Now that cigars are gaining recognition for being craft products, many companies are ramping up production. The potential for profit is huge, which makes this a niche that’s too enticing for many corporations to ignore. As the average cigar smoker continues to get younger, this new demographic is demanding exotic choices. Many of the most common and revered cigar brands are owned by a few multi-national corporations. While this may be alarming for some, it’s actually great news for the industry.
In many ways, these massive companies are pioneering an exciting reunion of quality cigars with a younger demographic of millennials. To truly understand how monumental this movement is, all that’s necessary is a quick examination of these companies’ revenue. The amount of cash generated by the top companies is breathtaking, which is why we compiled them in this list. Prepare to be surprised by these massive companies’ offerings, since they probably make many of your favorite cigars!
Biggest Cigar Companies in the World
Cigar Company #3: Davidoff – Based in Switzerland, this company’s reach can be felt around the world. While they operates in Basel, their production plants are located around the world. Davidoff boasts three factories in the Dominican Republic and one production plant in Honduras. Their tobacco is sourced from plantations in Nicaragua, Brazil, Mexico, Peru, Ecuador and the United States.
This robust selection of tobacco allows them to produce some of the most beloved cigar brands in the world. Winston Churchill, AVO, and Camacho are just a few of their many offerings. Davidoff generated $508 million revenue in 2017, which makes them one of the biggest cigar brands in the world.
Cigar Brand #2: Scandinavian Tobacco Group – This massive manufacturer of premium cigars and pipe tobacco is based in Copenhagen, Denmark. Including all their subsidiaries, they sell 3 billion cigars and 5,000 tons of pipe/fine cut tobacco annually. This overwhelming amount of products is fueled by their top positions in both Europe and America’s cigar market.
Out of their 200 brands, their most popular companies are Cohiba, Macanudo, CAO, La Paz, Café Crème and Partagas. In total they employ 7,600 people throughout Nicaragua, Indonesia, the Dominican Republic, Honduras, New Zealand, Australia, Europe and the US. This massive workforce and selection of products allows them to generate over $1.4 billion in sales every year.
Cigar Company #1: Imperial Tobacco – When indulging in cigars, it’s nearly impossible not to interact with this brand. This British multinational tobacco company is based in Bristol with 51 factories around the world. While their main revenue generator is cigarettes, they own an impressive lineup of cigars. Don Diego, Montecristo, Trinidad, Romeo y Julieta, Te Amo and many more recognized brands are sold by their companies. Their American subsidiary Altadis USA owns half of the Cuban cigar brands not produced in Cuba and distributed in America. In 2017 alone they generated $34 billion in revenue, which makes them the undisputed kings of tobacco.