They haven't provided a definitive 'roadmap,' but their intent points to expanding their non-tobacco footprint throughout Europe. I've been especially keen on the pharma distribution. Very good formula for bolt-ons in which the group can offer more across a larger footprint, which, along with higher retention and cross-selling, allows them to secure larger client relationships. High regulation and specialty requirements for transporting products like medicines and vaccines make it a sticky business. Unless they lever up, the pace of bolt-ons should be tame, as they keep the payout ratio target of 90%. Regardless of their future M&A, the core business is still terribly underappreciated. Mix of volumes, new categories, and POI from legacy provides a powerful formula. BAT gets all kinds of cheers for its ITC stake, but you don't see much noise made for Imperial and LOG.
Our FDA and CDC have been handling RRPs pretty poorly but the French government manages to make even worse decisions.
“Two weeks after banning disposable e-cigarettes, France notified the European Commission it would ban the sale of nicotine pouches as well (…) French regulators have been monitoring developments in the new tobacco products sector. Health authorities became alarmed, and the government decided to activate the legislative levers available to it.”
I just don’t understand how a government can be “alarmed” by products that are much safer than cigarettes when close to 25% of French people still smoke.
great post!
Thanks, Carlo
Thank you for the update. Logista is known for its “bolt on” acquisitions. Have they made any or discussed any plans?
They haven't provided a definitive 'roadmap,' but their intent points to expanding their non-tobacco footprint throughout Europe. I've been especially keen on the pharma distribution. Very good formula for bolt-ons in which the group can offer more across a larger footprint, which, along with higher retention and cross-selling, allows them to secure larger client relationships. High regulation and specialty requirements for transporting products like medicines and vaccines make it a sticky business. Unless they lever up, the pace of bolt-ons should be tame, as they keep the payout ratio target of 90%. Regardless of their future M&A, the core business is still terribly underappreciated. Mix of volumes, new categories, and POI from legacy provides a powerful formula. BAT gets all kinds of cheers for its ITC stake, but you don't see much noise made for Imperial and LOG.
Our FDA and CDC have been handling RRPs pretty poorly but the French government manages to make even worse decisions.
“Two weeks after banning disposable e-cigarettes, France notified the European Commission it would ban the sale of nicotine pouches as well (…) French regulators have been monitoring developments in the new tobacco products sector. Health authorities became alarmed, and the government decided to activate the legislative levers available to it.”
I just don’t understand how a government can be “alarmed” by products that are much safer than cigarettes when close to 25% of French people still smoke.
https://tobaccoreporter.com/2025/02/26/france-extends-ban-to-nicotine-pouches/
https://www.statista.com/statistics/236600/proportion-of-smokers-in-the-population-of-selected-countries/
You are 100% correct. Absolutely crazy policy decisions.