I feel for those workers who are losing their bread over this. But this isn't surprising.
This is capitalism 101. Contracting markets + major suppliers being publicly held = efforts to capture increasingly small markets to eliminate competition and promote profit growth to keep shareholders happy. Pipe tobacco is a niche market within a niche market. Even if STG were some sort of paragon of business virtue and held fidelity to the "pipe smoking community," they would still have to deal with the fact that the vast majority of their products were underperforming, and then act accordingly.
That's how it works. People, especially in America, have utterly religious attachments to free market capitalism regardless of what evidence is presented or how the results of such a system impacts them directly. A lot of people genuinely believe that if they are a loyal customer, that they must be pandered to. Nope. In a similar vein, people genuinely believe that free market capitalism promotes competition, which in turn means better and cheaper products for the consumer. Also, nope. In the short-term that is sometimes true, but to echo George Orwell, the problem with treating the economy as one giant competition is that eventually someone wins. Competition can't be made perpetual save through external and artificial means. Winners of these competitions create monopolies or oligopolies that serve the interests of the winners, and not the consumers or anyone else. That's what we are seeing here.
Look, I'm not trying to dogpile on capitalism. Capitalism has many virtues and can produce some pretty amazing results, especially when coupled with a robust social safety net and reasonable and fair independent regulatory bodies. But fellas, c'mon. This is how the game is played, baby. Best get hip to it. If STG's gutting of the pipe tobacco industry is bothering you, just wait until you see what is going on in the American healthcare industry or in defense contracting.
Stock up on what you love, but also, know it's just tobacco. A wee vice and enjoyable diversion. The sun will rise tomorrow, even if you don't have a pipeful of Matchblend 782-flake smash 11A66, with which to greet it.