Lane Ltd. to be Sold to Scandinavian Tobacco for $205 Million

[admin]

The biggest pipe tobacco manufacturer in the world will be getting even bigger:

http://pipesmagazine.com/blog/pipe-news/lane-ltd-to-be-sold-to-scandinavian-tobacco-for-205-million/

 

[flylot]

These guys better not screw with the blend of 1Q!

 

[papipeguy]

Let's hope they don't mess with distribution.

 

[hilojohnny]

I agree with flylot and papipeguy.....Don't screw up a good thing!!!... :?

 

[krgulick]

It looks like for now they say they will keep RJR as distributor. We'll see how things play out.

 

[python]

STG is buying up everything.

 

[admin]

This could be a good thing. Reynolds American didn't really care about the pipe side of the business. STG does. Things should do well as long as they assign the right management to Lane.

 

[collin]

That what I've been reading too Kevin, Reynolds main concern is their cigarette tobacco. Most people are saying this should be a good thing.

 

[cacooper]

Greetings,
Being involved in the tobacco business, I can say this is a good move. Lane Ltd. was a great company, with close to 40 different bulk blends available. Basically, the standard of the bulk market, and sold in virtually every B&M. I had at least 10 Lane blends on my tobacco bar in my shop.
Lane distributed Dunhill pipes and tobacco, Stanwell pipes, Lorenzetti pipes, Dr. Grabow, and several tin tobaccos. And they treated the retailer like royalty. The Dunhill PPD (Principal Pipe Dealer) black tie dinners, at the RTDA (now IPCPR) trade show every year, were a delight! I even got a chance to personally meet Mr. Richard Dunhill at one event! Just a super company to do business with.
That all came to a crashing end with the Lane/BAT/Reynolds merger. Reynolds, a cigarette company, didn't have a clue about the premium pipe tobacco market, nor did they care. Hence, they began divesting themselves of the low profit segments of Lane, primarily Dunhill, Grabow, Stanwell, and contracted the tobacco portfolio to just 7 of their best selling blends. Lane no longer makes any blends with Latakia. Damn shame, as Lane made some great English blends, Crown Achievement being the most notable.
But of course they kept making Captain Black, Sir Walter Raleigh, and Bugler, only because of the sales volume. They also dropped Edgeworth, Rum & Maple, Holiday, Four Seasons, VIP, and John Rolfe.
A very sad development for pipe tobacco retailers and pipe smokers. At Reynolds, it's all about volume and maximum profit. Tobacco, to Reynolds, is only a commodity, not a passion, and shelf space, market share, and stock value rule the company.
STG is a PIPE TOBACCO manufacturer, not a cigarette maker. They understand the low volume, specialty pipe tobacco market better than just about anyone. I'm actually thankful that Reynolds finally decided to sell off Lane to a more deserving company. STG owns Orlick, which in turn owns Stokkebye, Pinkerton, and now Lane. I think it's a great fit, and hopeful that STG can return Lane to, at least some, of their former glory and prestige. That would be a good thing for retailers and pipe smokers alike.
CACooper

 

[unclearthur]

In my opinion this is a very positive move. Though I don't know if any of the old Lane blends will return I am hopeful.

 

[krgulick]

Glad to have members here that are more in tune with what is going on with pipe tobacco than I am. I seem to have spoken out of turn, my apologies. With this new knowledge, it looks like a good fit, like Kevin says if they put the right people in place to run Lane right on the consumer end of things. Hoping they do bring back the English blends as cacooper mentions above me. Would like to add them to my TAD list.

 

[cacooper]

I just remembered an incident at the RTDA (IPCPR) trade show a few years ago, that will show how utterly out of touch R.J. Reynolds is with the pipe tobacco industry and market.
True story.
Several years back, Reynolds introduced the "Camel Exotics" line of flavored cigarettes (now made illegal by the FDA), and set up an elabotate booth at the trade show. I made my way over, and struck up a conversation with one of the sales reps at the booth. We discussed the new cigarettes and how they planned to market them as a "premium" brand, only in tobacconists shops. I asked if they were planning to produce a true Turkish blend cigarette using a bit of Latakia in the blend. The sales rep gave me a blank stare, and said "Lata-what? I kid you not. It amazed me, at the time, that someone who works for a tobacco company would not have a clue what Latakia was. He had absoutley no idea. None. I just said "never mind", shaking my head.
I did take on the line, assured that only "premium tobacconists" would be allowed to sell Camel Exotics (at a decent margin, compared to regular cigs). Not 6 months later, I was getting gas at a Circle K, and what do ya know, at the cash register is a big display of...Camel Exotics - at HALF the price I sold them for! Bastids! They lied to me! Lesson learned. Never, ever do business with "Big Tobacco". Not only are they clueless about pipe tobaccos, they're dishonost, too (but we already knew that).
That's why I'm very pleased Lane was sold to STG. Lane deserves better. Good things should happen. The Danes have a passion for tobacco.
CACooper

 

[sparroa]

I don't know much about the industry but I also think it can be good to switch from one conglomerate to another if a better fit can be found. Scandinavian Tobacco seems to be capable of keeping brands alive that would otherwise be lost. Perhaps they can make Lane more efficient and diverse. If not, the status quo is acceptable as long as they can maintain that.

 

[papipeguy]

My favorite blend for years was Lane's Highland, an aromatic English. Discontinued and forgotten. It was akin to And So To Bed but a cube cut and the aroma got a lot of compliments. It would be great if some of the old blends got another chance under the new management.

I've seen a renewed interest in pipe smoking in the past couple of years so the timing of this deal is perfect. I'll light a candle with hope for a better tomorrow.

 

[bubbadreier]

Wow I would love for them to bring back some of the old blends! That would be amazing, having never tried their long gone blends, I will stay hopeful!
This looks like a good thing for the tobacco world and us!

 

[jship079]

Swedish Match and STG own pretty much every thing in the tobacco industry this will most likely work out well for us.

 

[rls80]

All i can say is perhaps we might see some Lane 1Q in England, since everyone always sings it's praises but annoyingly it cant be found here!

 

[admin]

I have just emailed the CEO of STG directly advising that there is a great opportunity for them to bring back old Lane blends.
Keep your fingers crossed, but realize that the sale isn't even expected to close until mid-year.
I have also asked some retailers to put in a word as well since they have the ability to back up their requests with purchase orders.
This will be great if it actually happens.

 

[bubbadreier]

Kevin you are the man!

 

[unclearthur]

I would KILL for Edgeworth to return. Well maybe not kill but cause all kinds of minimal damage ...........or something.