Royal Agio employees get a bonus. The Wintermans family, who founded the Dutch cigar company in 1904, have decided to donate 10 million euro towards the employees. The money will be divided between all the employees. How much each employee will get depends on the number of years they worked for the company.
The money comes from the sale of Royal Agio Cigars to the Danish tobacco mogul Scandinavian Tobacco Group. Last September both companies announced that they were in talks about a possible sale and the intentions of both Scandinavian Tobacco Group and the Wintermans family. And last week the sale was finalized. After 115 years, Royal Agio won’t be in the hands of the Wintermans family any longer.
The announcement about the intended sale led to a lot of insecurities for the Royal Agio staff. Even to a stage where the workers at the Royal Agio factory in Westerlo, Belgium decided to go on a strike. In the past Scandinavian Tobacco Group acquired other machine-made factories in Belgium and closed them down, moving the production to their facilities. If that is happening to the factory in Westerlo is yet to be decided by the STG board of directors in Copenhagen, Denmark.
Scandinavian Tobacco Group
The reason why the Danish tobacco company had its eye on Royal Agio isn’t the premium cigar branch. Scandinavian Tobacco Group does make a lot of handmade premium cigars, such as Macanudo, Don Tomas, and CAO. But their main business is machine-made cigars. And by acquiring Royal Agio, the Danish company become the world leader in that field.
Royal Agio also has a division that makes machines for the production of cigars, Agio Technische Dienst, ATD. That part of the company isn’t included in the sale. But the production facilities in Belgium, Sri Lanka, and the Dominican Republic are now part of Scandinavian Tobacco Group. That also goes for the distribution center in Duizel, The Netherlands In a press release, STG mentioned a transition period in which they will decide what will happen with those locations. Royal Agio is also the distributor for Drew Estate and La Flor Dominicana in several European markets. What is going to happen with those arrangements is also undecided yet.