According to Cigar Inspector

"A few days ago, Cigar Aficionado published an article about an upcoming merger.

Scandinavian Tobacco (Denmark) and Swedish Match (Sweden) decide to merge their cigar and tobacco operations. The new empire, controlled by Scandinavian Tobacco, will become one of the world's biggest cigar companies (with a production of more than 2.5 billion cigars and approximately $1 billion of sales).

Scandinavian Tobacco owns CAO cigars, whereas Swedish Match controls General Cigar Co. (Macanudo, Don Tomas, non-Cuban Punch and Partagas...) and Cigars International, a distribution giant.

The deal should be finalized by June."



My math skills aren't NASA material, but doesn't 2.5 billion cigars to 1 billion dollars in sales equal $2.50 per cigar? Methinks I am being raped.....:-)
[Reply]

You can say the part about not being NASA material again, $1B sales, 2.5B cigars = $0.40/cigar.
:-)
[Reply]

Not to knock your math skills, but that actually comes out to $0.40 per cigar. How raped do you feel now?
[Reply]

Over 5 times as much?:-)
[Reply]

I just won a bet with the wife......I said watch how fast these sharks catch this fuzzy math....(I had been regaling her about how no one can count when it comes to trades, buys and bombs).

Let's see....I bet her $5.00 it would be less than 10 minutes, so lemme see here.....10/5, multiply by pi gives me.....$6.28

However my real point was made....we is gettin' a screwin' sans kiss.
[Reply]

Always use pi to at least the thousandths, or ten-thousandths, then you get 6.282 or 6.283 respectively, which allows you to round up to $6.29, and you don't have to declare the 0.8 or 0.7 cents as income - just like they do with quarter-point sales taxes. At these cigar prices, you'll need every penny you can get. :-) :-)

Anyway...

While it is true that most cigars don't cost that much to produce, I think those cigar numbers from that press release are being heavily skewed by the massive quantities of small machine made cigars produced by the companies.
[Reply]

Also don't forget that a lot of those cigars are things like little cigars and cigarillos that cost a few pennies to make. Since many come in packs of 10 or 20 that adds up fast for 2.5B cigars.
[Reply]

Could it also be that it should really be $1 Billion in PROFITS? Sometimes the people who write these things are not accountants.
[Reply]