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June 1998 Volume 25 Number 3 |
Belco Acquires SJI Wholesale
Belco Systems Technologies, Inc., which acquires, develops, manufactures, and markets new technology, announced it has acquired Tennessee-based SJI Wholesale, Inc. in exchange for 1.2 million shares of common stock and 4.9 million shares of preferred stock.
With the acquisition, Lionel Beloyan, president of Belco, and Stephen Beloyan resigned as members of the company's board of directors. J.D. Jenkins and Ronald Jenkins were appointed to serve as the company's new directors. In addition, J.D. Jenkins, c.e.o. of SJI, has assumed the post of chairman and c.e.o. of Belco. The company changed its name to SJI Group, Inc. following the merger. SJI Wholesale is a distributor of premium cigars, representing over 31 cigar manufacturers, including General Cigar, Swisher International, and Consolidated. The company also holds exclusive marketing rights to such cigar brands as Camorra, Moran, RG Santiago, and Pirata. Aside from its cigar business, SJI is a sales and marketing organization specializing in computer and Internet services, website development, and website hosting. The company projected 1998 annualized sales of about $20 million.
NewsBits On May 8, Minnesota reached a $6.1 billion settlement with tobacco companies it was suing to recoup healthcare costs stemming from smoking-related illnesses. Only about 3 percent has been set aside for smoking cessation and prevention programs. The rest is headed for the state's general treasury, over 25 years, with no strings attached.
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NewsBits
Boston's Public Health Commission voted unanimously in March to ban smoking in restaurants. Boston joins 51 other Massachusetts communities as well as New York, Los Angeles, San Francisco, San Diego, Houston and Austin, Texas in enacting smoking restrictions. Under the new regulations, cigarette, cigar, and pipe smoking would be permitted only in separate bar areas and only if non-smokers do not have to use the area to wait for tables or get to a restroom. The ban will take effect Sept. 30. | |
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Management Turmoil at Caribbean Cigar New President, Named in March to Replace Founder, Resigns In early June, Miami-based Caribbean Cigar Co. announced the resignation of Ronald G. Farrell, its new president, c.e.o., and chairman of the Board of Directors. Farrell had just been appointed to these positions in March, succeeding company founder Kevin Doyle, who stepped down to concentrate on the production and marketing of Caribbean Cigar's premium cigar lines. Neither Doyle nor Farrell were available for comment. Farrell, a cigar industry outsider involved in "growing and financing companies" in a variety of industries, had agreed to personally purchase 2.5 million shares of Caribbean Cigar's common stock for $1 million, and to oversee the purchase of at least $250,000 of securities. In connection with the resignation, however, Caribbean and Farrell terminated all of the previously announced financial agreements. The beleaguered manufacturer said it plans to initiate a search to replace Farrell. Edward C. Williams, Caribbean's chief financial officer, will serve as interim president. Also announced was the resignation of Stephen N. Wertheimer from the company's Board of Directors. According to a statement from Caribbean, Wertheimer's resignation was "due to conflicts with other responsibilities." Two recently-announced appointments could bring much-needed experience to the company. In March, Caribbean named Norman Buck executive vice president of sales and marketing. Buck has 35 years of experience in the tobacco industry, much of it spent developing and promoting the sale of "one of the industry's most popular cigars in the domestic and international marketplace." Before joining the company, Buck was managing director of D.B. International, responsible for the worldwide sales of General Cigar Co. Prior to that, he served as senior vice president of General Cigar Co. International from 1979-1986. In June, Caribbean named Frank Pierce vice president of sales. Throughout his 30-plus years in the tobacco industry, Pierce has held a number of senior positions with major U.S. cigar manufacturers including U.S. Tobacco and Swisher International, Inc.
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Back to Basics Caribbean founder Kevin Doyle, who stepped down as president in March, is focusing on cigar production and marketing. Caribbean has since introduced new glass tube packaging for Calle Ocho and Signature Collection Limited Reserve. |
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