Tobacco.org

• UPDATE 2-Swedish Match posts higher Q2 profit, shares rise  

* Pretax profit rose 38 percent to 791 million crowns

* Expects H2 sales, operating profit to beat 2008

* Key snuff margin drops, but cigar margin shines

* CEO says Q2 cigar margin not sustainable

* Shares up 3.0 percent

Jump to full article »

• Cuban Cigars JFK Loved May End ‘Forbidden Fruit’ Status in U.S.  

As President Barack Obama moves to ease restrictions on trade with Cuba, cigar lovers are savoring the prospect of legally lighting up a smoke that has long required a black- market connection and a willingness to flout the law. . . .

The possible end to the 47-year-old embargo on Cuba trade has intensified a legal and lobbying fight between cigar makers Swedish Match AB of Stockholm and Imperial Tobacco Group Plc of Bristol, England. Each wants exclusive rights to sell Cuban-made brands in the U.S., the world’s largest market for premium cigars.

Swedish Match sells cigars in the U.S. made in Honduras and the Dominican Republic under Cuban brand names. It bought the brands from families that fled Cuba after Fidel Castro seized their cigar companies in the 1960s. Imperial distributes Cuban- made cigars under many of the same names to the rest of the world through an agreement with the Cuban government monopoly, Cubatabaco.

“Before serious commerce resumes, this is going to have to be resolved,” said Robert Muse, a Washington lawyer who advises clients on Cuba-related issues.

Jump to full article »