5 Comments
Nov 28, 2023Liked by Devin LaSarre

There Ström products were very good. I had a few. I shifted from rolling tobacco to pouches.

I don' t know if Ström is dicontinued, they are not longer listen at the online store i normaly buy. You can not buy pouches in Germany in normal stores. But you can order them online legally because Denmark and Sweden are EU members.

Expand full comment
author

Thanks for your input, Ulrich. The product is not discontinued, but there may be some difficulty in attaining it in certain markets - as you highlighted. I'll be sure to cover some more of the industry's distribution channels and logistics more in-depth in the future!

Expand full comment

Thank you Devin! I appreciate reading XQS user testimonials. This kind of “boots on the ground” information makes your piece unique.

I find it interesting that Asia, Latam and Middle East represent such a small percentage of cigar sales and that STG wants to expand sales there. That’s a pretty big “pocket” and is definitely worth watching.

> further aided by the group’s small but growing distribution of third-party product, PMI’s ZYN

Somehow I always assumed that SM was distributing ZYN itself in the US and that a big rationale for PMI’s acquisition of SM was to get its distribution network to help with IQOS distribution.

Expand full comment
author

Thanks, Tian. I'm glad you enjoyed the testimonials - they are only a few of the many I've collected. I've thought about publishing a piece dedicated comprehensively toward testimonials collected across NGPs.

I agree that the international growth for handmade cigars is an fascinating opportunity. With the Cubans taking absurd pricing actions against less consistent product, I think this represents an underappreciated window for STG.

SM's physical infrastructure is sure to assist in the anticipated rollout of IQOS in the U.S. The agreement between PMI and STG concerns the online DTC retail of ZYN in the U.S. From my understanding, it is still a relatively immaterial part of the group's NAOR segment, but at the rapid rate ZYN is growing, that may very well change.

Expand full comment

I would love to read a post with testimonials about NGPs!

Thank you for the clarification on the distribution agreement between PMI and STG.

Expand full comment