Entries Tagged 'Acquisitions' ↓

PMI already owned over 40% of RBH anyway but this is an interesting move for PMI - what’s next?

More acquisitions in Canada?

Does this signal an interest in Virginia markets?

Officially Altria breaks up today into PM USA and PM International -whether you think this is a good move or not - the question is what’s next?

At PM USA I speculate they will pursue a US acquisition in the smokeless category - most probably Swedish Match or US Smokeless. Everybody else believes the top pick is Swedish Match, but I think the most likely candidate is USST.

Here’s why;

USST has the greater share of Premium (yes Premium) Brands in the smokeless category.

They have product development expertise.

An experienced sales force and, despite some pessimistic opinions, good marketing.

I know most of this applies to Swedish Match but USST has size -for this reason I see USST as a better fit for PM USA on this basis.

At PM International, the jewel in the crown must be China - did anyone hear the PBS news this morning - they said so too.

With 350 million male smokers in China, you don’t have to get much percentage penetration to have a huge volume (for Marlboro.)

Agree / diagree - post your view and let’s have a discussion?

Watch this space.

Seems like that is the question being asked lately but more importantly the questions that folks really should be asking are “What does consolidation in the tobacco industry mean to you?” As a retailer how do you think the consolidation of the cigarette/smokeless/cigar manufacturers will affect your business? If your a wholesaler what are your thoughts? Manufacturers what are your thoughts? What happens if your a manufacturer left out of the consolidation? To all, how do you plan on dealing with consolidation that seems so evident? Who do you think buys who? What leverage do you have as a retailer? Folks are talking about this but what are your thoughts?

Bonnie Herzog at Citgroup reported that PM USA may acquire Swedish Match after the PMI demerger. This is entirely possible, although we consider it likely there are other suitors for Swedish Match in the US market. Besides this PM USA must also have its eye on USST. Their US smokeless market share would gain for PM USA instant access to manufacturing, intellectual property and distribution in this key segment.

Bonnie has been consistently down on USST for a considerable period despite performance which frequently surpasses her pessimism (based on increased competition in the premium segment.) Is Bonnie’s analysis correct? Let us know what you think?

Do you think PM will more likely acquire Swedish Match or USST?

Do you think PM USA can develop a market presence in smokeless alone?

Which one do you consider to be the better fit - Swedish Match or USST?

A recent trip to Colombia has revealed Protabaco may be in play - And you guessed it the main suitors are rumored to be BAT and PMI.

The Colombian economy is doing very well and with a total market of around 20 billion sticks this is a good market to be in for a multinational.

Protabaco represents one of the last great independent companies operating in Latin America with good market presence, a well-known brand portfolio and strong management team. It would be the jewel in the crown for either company.

Who do you believe will acquire Protabaco?

Do you think this is a good fit?

When do you expect this to happen?

If you have a comment, or news; we’d like to know…………………