Although dry snuff use continues to decline, consumption of moist snuff continues to grow, perhaps helped by the increased restrictions on smoking. .
Company History.
Swisher was founded in Newark, Ohio, in 1861. It acquired one of its most famous brands, King Edward, in 1918, and in 1924 moved its main production facilities to Jacksonville, Florida, where it remains today. It created its signature Swisher Sweets in 1958, and was aired by American Maize-Products Company in 1966. In recent years Swisher completed three major cost saving initiatives. In 1992, the company closed its dry and moist snuff plant in Helmetta, New Jersey, and moved its operations to its Weeling, West Virginia facility. Effective June 30, 1994, Helme Tobacco Company, Swisher's wholly owned smokeless tobacco subsidiary, was merged into Swisher. Helme's executive office in Stamford, Connecticut was closed and the Helme and Swisher management and sales forces were consolidated. As a result of the merger, Swisher realized significant reductions in selling, general, and administrative expenses. In 1994, the company closed its Waycross, Georgia, cigar plant and consolidated its entire cigar manufacturing in its Jacksonville facility. As a result of these consolidations, Swisher incurred pretax restructuring charges totaling $14.2 million dollars, and realized significant cost savings in its base manufacturing and selling cost, as well as its general and administrative expenses.
On December 18, 1996, Swisher International Group, Inc. completed an initial public offering of 6 million shares of Class A Common Stock at $17 each. The Class A shares carry one vote each. Hay Islands owns 28.1 million shares of Class B stock, which carry 10 votes each, Hay Island owns 97.7 percent of the vote, and thus control anything that comes to the board for vote.
Competitive Position.
Swisher International Group, Inc. is profiting from the cigar boom.