A Look at STG Internal Documents Regarding the Mac Baren / Sutliff Buyout

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STG may have been disappointed by their sales figures once shifted to the Peterson brand name.
Yeh, probably two reasons, most people thought that Dunhill made these blends. And, second, when Petersons took it over, most assumed that the drilling would be off. puffy

Used to, when the Dunhill blends would be set out on the shelves at the Briary, they jumped off the shelves. Now, I don't ever see an empty shelf.

realistically, I wonder if folks stocking up before the Dunhill name was dropped has loaded up the fans, so that they don't buy the new stuff.

Really, I just don't hear people talk about them with the same excitement
 

elvishrunes

Can't Leave
Jun 19, 2017
384
750
I have yet to try any Lakelands. What are some of your favorites that you'd recommend?
Ennerdale, #1, deadly good. Some will say soapy, but the first note I get is dried fruits, oranges, then perfume second, but for whatever reason it works…. Tastes like a special virginia flake.

1792 Flake #2, I’m not sure if it’s a Lakeland or not, but wonderful smell and flavour too, but it’s pretty high N.
 

Terry Lennox

Part of the Furniture Now
Aug 11, 2021
537
2,817
Southern California
realistically, I wonder if folks stocking up before the Dunhill name was dropped has loaded up the fans, so that they don't buy the new stuff.
I think there is something to this. People stocked up on all the Dunhill when they went away and cellars are full of the stuff. Even though what's in the new cans is exactly the same there are only so many pipe smokers out there.
 

sablebrush52

The Bard Of Barlings
Jun 15, 2013
20,978
50,227
Southern Oregon
jrs457.wixsite.com
I wonder what the story on Peterson/Dunhill blends is? Laudisi/C&D owns Peterson, so why aren't they blending this in house? I would have to imagine they will start, unless there is some kind of legal right to the blends that STG now owns.
Laudisi owns the Peterson pipe company, not Peterson tobaccos, which has been owned by STG since 2018. That’s why STG could stick the Peterson name on the “Dunhill” blends.
 

sablebrush52

The Bard Of Barlings
Jun 15, 2013
20,978
50,227
Southern Oregon
jrs457.wixsite.com
Sutliff must not have been very profitable for STG consider shutting it down, since profits from it would have flowed to STG.

That’s the only reason for shutting it down. Otherwise STG is just shooting itself in the head.

Loss of good will is expensive. People will turn to other sources. The only way this works for STG in the long run is to absorb the rest of the competition.

Great opportunity for STG’s competitors. Buy from their competitors.
 

sardonicus87

Lifer
Jun 28, 2022
1,394
14,194
37
Lower Alabama
That's the thing about big corporations... whatever product they make or service they offer is incidental—the real product is the business itself and its projected profits, and the real customers are "the shareholders".

That's why I said before in one of the other 900 threads on this, don't count on a blend being available just because it's popular or a top seller. The blends that stay will be the ones easiest for them to keep (they already have the same or "equivalent" ingredients in-house and don't have to deal with picking up new ingredient vendors) that have the best margins.

It doesn't matter if the machinery is valuable to someone or what anyone thinks or sees on the consumer side, it matters what numbers look red and what numbers look black on paper. High popularity doesn't always equate to high margins, unique machines are hard to sell and it may be more profitable to scrap than to re-sell, etc.

People online lost their shit years ago when a video came out of Gibson destroying a bunch of guitars, running them over with a backhoe and loading them into a dumpster. That was more profitable for them to do (losses) than to donate them to schools or people in need, put them on sale in poor countries, etc.

This is just how corporations work. The "shareholders" (which isn't even everyone that owns shares, just the 5-10 majority holders "that matter") are fickle, they want a ROI... the problem is these days, they want exponential quarterly gains and are short-sighted, and unfortunately their leaving would tank a business.

In the past, these big investment shareholders could make profit because there were easy, "not morally objectionable" cuts and efficiencies that could be leveraged to increase margins, but since so many operations now are far more efficient and lean than in times past, the only way to keep increasing profits is to cut jobs, increase turnover (experienced worker with a bunch of raises under their belt costs more than a new hire that has to start from the bottom of the pay scale afterall), degrade quality, decrease choice, etc.

This is all the more true in an industry that's already tight and dying (maybe slowly, but tobacco is dying). Absolutely none of this is surprising, every decision they make isn't based on what's best for a tobacco business, it's what's best for a corporation's books and stock value.
 
Last edited:

woodsroad

Lifer
Oct 10, 2013
12,912
21,599
SE PA USA
The takeaway:
A shrinking consumer base forces an industry-wide consolidation and contraction of product offerings.

The remedy:
Bring new customers into the world of pipesmoking. Don’t invest in old people, there’s no ROI there. Start with kids, little kids, like preshoolers. I always have a bag of cobs and pouches of Capt. Monochromatic in the car to hand out to children. I usually make it a package deal with a Red Ryder BB gun.
 

OverMountain

Lifer
Dec 5, 2021
1,403
4,993
NOVA
Definitely not pinching pennies given the massive investment in a new factory and warehouse and track and trace software and equipment. And not really cutting back on brands - only those that do not sell enough to make it financially viable or where very similar blends are made under different names. In fact there are far more blends available in the USA now than ever before.
We support you and enjoy your products. But give us an option for Lakeland heavy with the traditional dollop of sauce. 😀

Forum members, while cellaring is important, it is regular smaller purchases over time that keep producers viable. Don’t leave GH, C&D, and other non corporate (STG) blenders hanging.

GH, glad to hear of the expansion and investment in production capital! All the best! OM
 
Dec 9, 2023
1,087
12,058
Milwaukee, Wisconsin
That's the thing about big corporations... whatever product they make or service they offer is incidental—the real product is the business itself and its projected profits, and the real customers are "the shareholders".

That's why I said before in one of the other 900 threads on this, don't count on a blend being available just because it's popular or a top seller. The blends that stay will be the ones easiest for them to keep (they already have the same or "equivalent" ingredients in-house and don't have to deal with picking up new ingredient vendors) that have the best margins.

It doesn't matter if the machinery is valuable to someone or what anyone thinks or sees on the consumer side, it matters what numbers look red and what numbers look black on paper. High popularity doesn't always equate to high margins, unique machines are hard to sell and it may be more profitable to scrap than to re-sell, etc.

People online lost their shit years ago when a video came out of Gibson destroying a bunch of guitars, running them over with a backhoe and loading them into a dumpster. That was more profitable for them to do (losses) than to donate them to schools or people in need, put them on sale in poor countries, etc.

This is just how corporations work. The "shareholders" (which isn't even everyone that owns shares, just the 5-10 majority holders "that matter") are fickle, they want a ROI... the problem is these days, they want exponential quarterly gains and are short-sighted, and unfortunately their leaving would tank a business.

In the past, these big investment shareholders could make profit because there were easy, "not morally objectionable" cuts and efficiencies that could be leveraged to increase margins, but since so many operations now are far more efficient and lean than in times past, the only way to keep increasing profits is to cut jobs, increase turnover (experienced worker with a bunch of raises under their belt costs more than a new hire that has to start from the bottom of the pay scale afterall), degrade quality, decrease choice, etc.

This is all the more true in an industry that's already tight and dying (maybe slowly, but tobacco is dying). Absolutely none of this is surprising, every decision they make isn't based on what's best for a tobacco business, it's what's best for a corporation's books and stock value.
We’re entering, or already, in late stage capitalism.
 

telescopes

Pipe Dreamer and Star Gazer
I will henceforth be boycotting all STG products. C&D already gets most of my money anyways.
And what will that do? What impact will it have on anything? If they sell a blend I enjoy or if they maintain a blending tobacco I need, why would I deprive myself of ordering or purchasing the tobacco? No where have I read that they are cutting back on Lane tobaccos - should I boycott those blends? I purchase tobacco I am happy to smoke and willing to part with my money. If a better product comes along, I will go with the better product - not because of boycotting reasons but because I always prefer the better product.
 

Terry Lennox

Part of the Furniture Now
Aug 11, 2021
537
2,817
Southern California
In the video he says something to the effect of STG plans to sell off the Sutliff portfolio. My guess is this does not mean sell off the rights to the recipes and names. I think it means sell off the remaining inventory. But I could be wrong. Would be great for folks who like Molto Dolce etc to be able to get it from C&D one day. We'll see if that is worth anyone's time.
 

Speak Easy

Lifer
Jan 12, 2024
2,817
31,287
44
Western Oklahoma
STG we wanted…737C2B2B-D3CB-496B-8BD0-ABD7A7152B9B.gif

STG we got…BEDD0FA8-3255-4A3A-99F8-44A5DDC7CDBD.gif

Truth is we are the last of a dying breed. Better get what you like while you can. Being new to the hobby, I believe my money better spent in places other than STG. I nor none of us will make a difference by not purchasing STG products, but we may make the difference to the other companies trying to stay afloat. Or not. Time will tell.
 

TriedPiper

Might Stick Around
Oct 23, 2024
97
100
Western NY
Being new to the hobby, I believe my money better spent in places other than STG. I nor none of us will make a difference by not purchasing STG products, but we may make the difference to the other companies trying to stay afloat. Or not. Time will tell.
Same here. New to the hobby, but not yet committed to certain blends. Might as well support the ones still here. STG needs competition to keep prices and service in check.
 

telescopes

Pipe Dreamer and Star Gazer
Publicly traded companies where the owner is not a majority stock holder are subject to the whims of the spread sheet and not the other way around. You love your children - you do everything you can for them. Other people's children in your care are watched over, but when push comes to shove, their interests will never exceed your own interests. So it is with publicly traded companies.
 

telescopes

Pipe Dreamer and Star Gazer
Same here. New to the hobby, but not yet committed to certain blends. Might as well support the ones still here. STG needs competition to keep prices and service in check.
If that is the case, then I would wager you won't be a pipe smoker for long. Support the blends you absolutely love to smoke. Life is short. Cancer makes it shorter. This is a hobby full of risks. IF you are going to smoke, then at least smoke the blends you absolutely love - despite who makes them.