S.A.L.E. for Sale

Source from:  Tobacco Reporter 11/04/2010

Thomas Schumann, co-founder and chairman of German Tobacco Group is exiting the tobacco industry and offering his S.A.L.E. cigarette brand for sale. German Tobacco introduced S.A.L.E. cigarettes in 2007 and 2008 through the Lekkerland and DTV groups in Europe. S.A.L.E. targets price-conscious smokers who seek quality, attractive design at affordable prices. The brand was developed specifically for the growing international value brand markets in Germany and other European countries. With a margin of up to €0.50 ($0.70) per pack of 19 cigarettes, S.A.L.E. provides German retailers with the highest margin in the industry, according to German Tobacco Group. German Tobacco Group was founded in 2006. After securing start-up financing and overcoming the tobacco industry's high barriers of entry, the company suffered from a lack of working and expansion capital. German Tobacco Group has entered into Chapter 11 proceedings with €1 million in liabilities. The S.A.L.E brand continues to attract strong retail interest for the S.A.L.E. brand, according to German Tobacco. Although the company has secured a large order from a German vending machine operator, received an offer of €5 million Mezzanine Capital and a positive government subsidy analysis to build its own cigarette factory, it has been unable to find a new investor or strategic partner to help it emerge from Chapter 11. If none comes forward by Nov. 30, Schumann intends to liquidate the trademark. Enditem