Lane Closing in US--Should I Worry?

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homesteader

New member
Jun 7, 2019
20
5
Reactions: jpmcwjr

gamzultovah

Member
Aug 4, 2019
270
485
Lane announced they will be closing their Tucker, GA facility by 2020. From what little information given, it sounds like the same blends will still be available after that, only produced in other countries. Does anyone think this will lead to fewer blends being produced, or other problems for us?

Here is a link to the press release? Scandinavian Tobacco Group Closing its Tucker, Georgia Facility - https://tobaccobusiness.com/scandinavian-tobacco-group-closing-its-tucker-georgia-facility/
This excerpt from the article pretty much sums things up: “Scandinavian Tobacco Group Lane Ltd.’s Tucker, Georgia facility manufactures brands within the Group’s portfolio of pipe tobacco, fine-cut tobacco and little cigars. With these markets being in decline, the company believes closing the Tucker facility will help the company adjust the capacity to current and projected volumes and could improve the Group’s overall annual cost structure...

It appears to be a cost cutting decision due to low demand. So, to answer your question, yes, this probably will lead to fewer blends being offered in America as demand decreases. After all, business is business... Hopefully this will lead to more micro-tobacconists like Ernie at Watch City popping up to fill the void.
 

sandollars

Senior Member
Jul 28, 2019
371
528
CA/UT
IT looks like a decision being made by a company that is well managed and knows when to "right size" before it causes too much impact to their bottom line.

The only reason to set up satellite operation is to serve the local consumer more efficiently and apparently the U.S. consumer is not creating enough demand to warrant the outlay for an entire operation outside the mother ship (Denmark). That, and worldwide shipping is becoming quite reasonable of late.

If anything, this action will help keep their per-unit cost down and I would be surprised if we see any negative impact on availability of their products in the U.S. at all. Well, aside from the FDA Nazi impact which is going to happen whether they are manufacturing in-Nation or not.
 

mso489

Preferred Member
Feb 21, 2013
26,605
930
FDA regs and tariffs are certainly going to change the picture. The price of Scotch is going up. French wine and cheese, and presumably pipe tobacco. Small blenders are facing daunting costs to keep their current blends, forget adding new ones. The giants will remain; prices will go up. For the average joe, pipe smoking may become more occasional. On the bright side, your cellar may triple (etc.) in value.
 

mso489

Preferred Member
Feb 21, 2013
26,605
930
It's true, this is/was the golden age of pipe tobacco blends and artisan carved pipes. Pipe smoking could become a tiny reserve of the wealthy pretty much beyond the reach of most. Prepare for the weekly bowl of codger blend.
 

Casual

Member
Oct 3, 2019
171
287
NL, CA
Every time I think my “cellar” is large enough someone posts something like this.

Then I start doing monte carlo scenarios and running numbers. What if I retire early, start smoking 12 bowls a day, and live to 106? I’d better start buying more!
 

Bengel

Senior Member
Sep 20, 2019
396
1,263
I wonder if Len Wortel still checks in here, he is always fount of knowledge, hopefully this works out for him and the employees. Support them while you can!
 
Reactions: jpmcwjr

gamzultovah

Member
Aug 4, 2019
270
485
It's true, this is/was the golden age of pipe tobacco blends and artisan carved pipes. Pipe smoking could become a tiny reserve of the wealthy pretty much beyond the reach of most. Prepare for the weekly bowl of codger blend.
“Always in your stomach and in your skin there was a sort of protest, a feeling that you had been cheated of something that you had a right to.” ~ George Orwell 1984
 

winton

Preferred Member
Oct 20, 2010
2,111
23
I checked their site, just now, but there is no information yet. There will be more info in the future, but I suspect that they will be discussing this with employees before they provide more details.

 
Reactions: UncleRasta