Dunhill Pipe Tobacco - A message from STG Lane

[warren]

I'll cut to the chase. The London Times this year published that Richemont sold some of its BAT holdings to Remgro and still holds a controling interest of 18.2%. Remgro's primary shareholder is the Rupert family. Guess who is the primary shareholder of Richemont? Bingo! It is the Rupert family.
The sale of some of BAT was in response to requests from other shareholders to improve share value. Shares are now out performing the shares of peers. 3.7 billions of Euros went from one company to the other for a less than a .6% share of BAT. Certainly not the huge block of stock they owned years ago.
Between the two Rupert controlled companies they own 18%+ of BAT. That 18% is apparently enough to be a controlling interest. So, Richemont and Remgro, therefore the Rupert family controls everything Dunhill, tobaccos, luggage, ties, etc.
At least that's what my research indicates today. I'll keep an eye on it until my interest in the discussion wanes.

 

[jitterbugdude]

t looks like seven of the top 20 tinned blends at smokingpipes.com are Dunhill, so I'm not sure how you drew your conclusion that they don't sell we

I didn't say they were not selling well. I said they were not selling like hotcakes. By that I meant that with the news of the possible demise of Dunhill I would have thought that the Dunhill tobaccos would have been sold out in a panic driven buying frenzy.
For instance, Smoking Pipes had a quantity of 70 Royal Yachts for sale this morning. As of this afternoon they still have 70 available.

 

[cosmicfolklore]

I'll bet RY isn't one of the big sellers. It takes an experienced pipe smoker with lots of talent and charm to smoke Royal Yacht.

 

[ophiuchus]

This is absolutely maddening. It's about time the topic has come up! When will that sleeping dragon flame on, for crying out loud?
Dammit! Russ deserves that cap!

 

[warren]

I should have pointed out that the luxury market, including cigarettes appears to be softening per the Times. So, this may all change in the next ten minutes or ten years.

 

[edgreen]

I've always thought we had a ridiculous number of blends to choose from for being such a small community. We have more choices than cigarette smokers and possibly cigar smokers, yet we are such a smaller market compared to those two. Cosmic's analogy is spot on. I think we will have to see a shrinking of our choices for the industry to survive.

 

[pylorns]

Yeah the guys there at the brand just don't give a crap. When I was researching about the Dunhill lighters, they basically told me to go jump in a lake. Quite frankly you'd be a moron to go buy a new dunhill lighter from them anyway.

 

[perdurabo]

I think if we take Fitzy's words at face value, the question has been answered. I know everyone wants to runaway from the PC Ape that walks into the room, in order to make themselves feel smart about a topic, but let's hear from the folks that live in The UK. Dissin' PC has become so PC.
They are drowning from overreach.

 

[perdurabo]

To tag on Pylorns comment, Dunhill can't or will not give the correct recipes for the tobaccos so the companies can produce them authentically. Maybe better sooner than later for them and us.

 

[backwoodsjack]

I don't mean to beat on this horse, but....
I can only imagine that if Dunhill is dropping their pipe tobaccos, it is because it is no longer a profit center.

They surely must have known this was coming, so why the recent revival of 3 year matured, BB1938, Ye old signe, etc.

Most marketing depts don't propose greater profits by increasing the manufacturing costs.
Is it possible that a buy-out was in all ready in negotiation, but the future owner of the name wanted to bring back the wider catalog of blends before purchase?
It just seems strange to introduce new blends and then pull to rug.

 

[drezz01]

They surely must have known this was coming, so why the recent revival of 3 year matured, BB1938, Ye old signe, etc.

Most marketing depts don't propose greater profits by increasing the manufacturing costs.

Good question. I have nothing to base this on, but maybe the decision is coming from a higher level that doesn't typically concern themselves with what the tobacco-branch is doing.
I know some people tend to say that Dunhill blends are overrated, but as a new pipe-smoker they were indispensable. You knew you were getting good quality for the most part, and their offerings were fairly distinct. I found it pretty easy to pick out a mild English (Standard Mixture), a lat-heavy blend (Night Cap), a VaPer (Elizabethan), and a Va (DF) so that I could determine what rang my bell. Their shag burns a treat, too! I'd be sad to see them leave and fear for what it may signal.
I'm doped up on cold meds but I can't think of another brand which covers your bases as easily for the beginner. I could be mistaken or blinded by my own experiences, but once I transitioned away from aromatics, it was next-stop-Dunhill.

 

[backwoodsjack]

drezz,
"I can't think of another brand which covers your bases as easily for the beginner."
Or old timer for that matter.
There is a long history to the brand. I only smoke NC and 965, but it is a loss none the less.

 

[toobfreak]

That these companies are all afraid to even admit they once sold pipes, etc., must be a response to fear of political backwash from the anti-smoking groups. Maybe Ashley Judd paid them a visit. :crying: I find it curious though that Dunhill just recently released three new blends.

 

[warren]

I've never heard a Dunhill clerk, who remembered pipes and tobacco, deny that Dunhill ever stocked or sold such products. One in Chicago was nice enough to point me to IRC, a place I was already fully familiar with.
I suspect one could walk into an Alfred Dunhill, Ltd. store and not find a clerk old enough to remember when tobacco and pipes were part of the inventory. But, any company history I've seen acknowledges tobacco and related products were the basis for Alfred's initial success.
Pipes and blends are simply of no interest as there are insufficient profits to be realized. Pipe making, tobacco blending and retailing of such are simply for small time players and some who dabble simply because they have an abiding interest in such products. The Dunhill shareholders hold happily to their luxury cigarette and cigar business so PC isn't part of the equation.
If pipes and blends were hot sellers in Africa, Russia or Asia I would guess Dunhill would continue selling blends. There is nothing PC in any of their business decisions that I can find. There is just too tiny a customer base to be of interest to the trillion dollar companies which own Dunhill, Rothman, and other marques of luxury products including certain brands of cigars and cigarettes. If in fact that market is going south as the Financial Times wrote, then those products may follow Dunhill pipes and blends. And maybe, certain watches, jewelry and the like as the market contracts for such items.
And, who the heck is Ashley Judd? I've not heard of her/him in any of the investing material I read.

 

[Dutch Pipe Smoker]

Damnit! I was hoping Dunhill was only being discontinued in The Netherlands... Thank you for the info Leonard!

 

[unkleyoda]

Well, I hope that Dunhill doesn't end up going away, as 90% of what I smoke is Dunhill. I guess if it does go away, I'll find something to fill the void.

 

[cally454]

Rumor mill with b&m reps is that Dunhill pipe tobacco is getting sold. Who knows.

 

[mso489]

cally454, Dunhill pipe tobacco being sold would be my hunch. I can't imagine this widely distributed popular brand just being discontinued. It may not fit "the big corporate picture" under current ownership, and discontinuing their ownership may be a sound business decision. But simply abandoning this revenue stream is, on the surface, irrational. If they sell, I hope they will sell the Dunhill pipe tobacco name and accompanying brand identity, tin art, and all, so it doesn't have to be marketed in some odd way.

 

[didimauw]

I can't believe I just read 2 pages about a company whos blend I dont even like. On another note, DUNHILL SELLS CIGARETTES? I had no idea. :crazy:

 

[cosmicfolklore]

I think Dunhill appeals mostly to latakia lovers. They have a few Virginias and VaPers, but really I don't hear of many people raving about their VA/VaPer offerings. Some people like them, but it's not a widespread following for these. I think that Nightcap and Early Morning and 965 are about the most famous of their line up.