Huge Price Increase on MacBaren Tins

[peckinpahhombre]

Price increases are only one of my worries. And forget about the FDA for a moment. I heard the other day that the EU is pursuing rather strict tobacco regulation that would require onerous testing for pipe tobacco and may well drive some of the prominent blenders out of business, or at minimum would cause them to have to significantly raise their prices to cover horrifically expensive laboratory testing for all blends. As with the FDA debacle, we have some time before that shoe drops. Cellar now.

 

[aristokles]

Any price increase over here seems out of order given the value of the US dollar versus the Euro lately. In fact, the reverse should be happening (yeah, right...).

 

[andrew]

Yikes I just noticed 3 nuns is now 16$ a tin. I think Macbaren is going to take a pretty big hit in sales considering all the other good blends available for around 10$ still.

 

[aristokles]

YooHoo...perhaps our esteemed Radio Show host who is presumably knowledgeable on this can give us some explanation?
I prefer some official input before I form a negative opinion (or more negative, actually).

 

[huntertrw]

Since Mr. Levine is personally acquainted with Mr. Jensen, I just sent the former a Private Message asking if he would contact the latter to inquire, on behalf of the Forum members, as to the reason(s) for this apparent increase. Stay tuned for further updates.

 

[tarak]

+1 Andy. Recently I dropped a glass jar with a full tin of 3 Nuns that was two years old- total loss. It was on my list to buy a new tin, but at $16- nope.

 

[shikano53]

Oh, and $16 for a 50g tin of Capstan? Come the ffff on.

I hear you Jerod.

It means here it will go up to $60.00 for 50g.
Chris in Red Deer, Alberta

 

[cortezattic]

Peck, will you be offering free shipping when it comes time to take profits? :lol:

 

[warren]

I'm betting that the increase(s) was well thought out. Companies do not ordinarily put themselves at risk without good reason. Various costs have no doubt increased and the manufacturer is simply responding to them. Perhaps labor costs have increased over time along with rent, taxes, regulatory impact, utilities, transportation, wear and tear, etc. I'm betting the smoker was not simply targeted in order to increase profits. They chose to continue offering product rather than shut down completely or sell the company.
If the price increase is too high, the company will find out soon enough and have to make another, serious and painful decision. Only very rarely does the "cost of doing business" shrink. Before raising prices wise companies lay off workers, modernize, relocate and/or try any reasonable alternative available in order to stay healthy and competitive. Raising prices is dangerous and not normally the first response a company turns to when looking to maintain profitability.
I prefer to give the benefit of the doubt as to motivation and attribute the increase to trying keeping the company's head above water.

 

[northernneil]

I cannot say that I foresaw the price increase, but it does make sense. Especially if you noticed that they introduced 50 gram tins not too long ago, and no longer only offer the 100 gram tins. I am assuming they did this so if people could not afford the $20 for the 100 grams, they still may be able to afford the less expensive 50 gram offering.

 

[easterntraveler]

I have purchased other tins like Escudo and Capstan for about $10 for a 50g a tin. I always wondered why I got double that for the same price with Mac Baren. Honestly do not see the problem with this. I understand it was a big jump but I believe their quality supports it. I for one have a lot stocked up and still will buy the occasional tin.

 

[judcole]

$20 is for a 100 gram tin; that's not that far off from other blender's 100 gram tins. I'm glad to see them offering 50 gram tins here; if I am trying something new, I'd rather have the smaller tin.

 

[jitterbugdude]

" I heard the other day that the EU is pursuing rather strict tobacco regulation that would require onerous testing for pipe tobacco and may well drive some of the prominent blenders out of business"
No worries! They could just set up in a non EU Country. I hear Greece will become available soon.

 

[lostandfound]

It's not Mac Baren's price increase on their own line of tobaccos I'm really surprised/upset about- as others have said, MB's tobaccos have been underpriced for some time; and, they're 1 lb. boxes didn't go up too much. The Capstan thing is the thing that bugs me. Nobody is charging $16.00 for 50g of tobacco. Germaine's, Peterson, F&T, etcetera upon bloody etcetera. G&H... Sam Gawith... G.L. Pease... Nobody charges $16.00 for 50g of tobacco. Someone please make some kind of justification for this.

 

[warren]

Because they can? Because they want to? Because they just want to irritate their customers, close the shop, terminating as many people as possible, so they can use the "big" yacht more?
What is so hard to understand about the economics of business? They have to raise prices in order to survive.

 

[beefeater33]

They have to raise prices in order to survive.

Or, they could cut costs............... :roll:

 

[woodsroad]

No worries! They could just set up in a non EU Country. I hear Greece will become available soon.

Very true, but they will still not be able to sell in EU countries without adhering to the EU TPD. The US will soon follow with similar, draconian new regs from the FDA. So there goes the majority of the market.
Folks, there is a new day dawning.

 

[daimyo]

I really only smoke two Mac Baren blends and have over 2 pounds cellared of each but it's still sad to see such an extreme jump.

 

[jackswilling]

"Folks, there is a new day dawning."
For sure yes. The nannies will regulate us to death.

 

[warren]

They could cut costs how? Cheaper leaf? Fewer employees? Compromise quality? Pay employees less? Take no profit?

I would bet that costs are reduced as much as possible and that prices were reluctantly raised as the last viable option. These blending companies are not huge operations with a lot of options. Those that are wholly owned subsidiaries of other companies must show a profit or die, be sold, merged with other names and the marque lost.
Everyone of these companies has people that must be paid, rents to pay, utilities to buy, licenses to buy, regulations to comply with, materials to purchase, repairs to be made, politicians to lobby, insurance paid, advertising must be developed, produced and then space engaged, etc. All of these costs must be passed on to the end user and a profit made. Smart companies plow most profits into growth, research, etc. But, without profit companies shutter and die.
Not one of the companies blending tobacco is doing so for altruistic reasons. We, the smokers, risk a little money while the manufacturers risk everything.