Turning Point Brands, Inc., most famously the parent company of iconic Zig-Zag papers, is acquiring cigarillo company Unitabac, LLC. The purchase includes cigarillo products and all related intellectual property, including Cigarillo Non-Tip (NT) Homogenized Tobacco Leaf (HTL), Rolled Leaf, and Natural Leaf Cigarillo Products.
Several cannabis companies have begun to cater to smaller, cigarillo-sized options, such as blunt wraps. The purchase of Unitabac allows Turning Point Brands to easily expand into this growing marketplace.
“Gaining access to Unitabac’s product portfolio provides us with the necessary assets to build a more competitive platform to participate in this large and growing market,” said Larry Wexler, CEO of Turning Point Brands. “Our intention is to leverage both the Zig-Zag tobacco brand strength and the extensive reach of our retail distribution platform to further penetrate the cigar category by introducing new line extensions under the Zig-Zag tobacco brand and expanding the reach of the Unitabac cigar products.”
“Turning Point Brands’ deep knowledge of the evolving consumer experience, coupled with the Company’s sales and marketing leadership, make the team an ideal partner for Unitabac,” added Rush Patel, Founder, Unitabac. “I am confident our portfolio of products and brands developed over the past decade will continue to flourish under its forward-looking stewardship.”
The acquired brands compete in three core segments: Trivo, Hype, and Hi-Fi within the Cigarillo NT HTL segment; Cloud9 within the Natural Leaf Cigarillo segment; and Badlands within the Rolled Leaf segment. These cigars are all Grandfathered Products or subject of Substantial Equivalence Reports in place with the U.S. Food and Drug Administration.
Turning Point Brands’ iconic core brands like Zig-Zag and Stoker’s are available in more than 210,000 retail outlets in North America.