Pipe Tobacco Consolidation and Conseqences

[jpmcwjr]

If it were my business, I would 100% want to own the means of production from the farm all the way to the retailer. It’s the smart move.

Not in every instance.

 

[Strike Anywhere]

The pipe tobacco segment has been dying for decades. Our segment is a “dog” from a business perspective so we’ve got a few big entities consolidating and trying to build cash cows.

Selection & quality will keep declining as prices keep going up (and that’s aside from increased taxation).

 

[Sethology12]

Last 30 years, I have seen most tobacco farms going away around here. There are still few that I see, but they are usually small in scale. Even the warehouse that used to auction tobacco has disappeared. Now it's a self storage business. I don't think it's a good time to jump into tobacco farming. And I live in NC.

To me this would suggest that it's more important than ever for these companies to establish a measure of direct control over a farm or farms. Because soon enough it seems there won't be much tobacco growing in the states sadly

 

[jpmcwjr]

Thank heavens it's not just USA alone!

 

[bullet08]

To me this would suggest that it's more important than ever for these companies to establish a measure of direct control over a farm or farms. Because soon enough it seems there won't be much tobacco growing in the states sadly

You have to understand the capitalist model. It's not who saves the endangered commodity. It's who saves the bottom line. It's better for the industry to bleed those farms dry than assist them to thrive. Why? There isn't money in it for growing tobacco. There isn't money in there for growing anything. Farming in this country survive on the government assistance.

 

[jpmcwjr]

<< Snipped bits out >> "There isn't money in it for growing tobacco. There isn't money in there for growing anything. Farming in this country survive on the government assistance."

I take exception to the last statement. Many good farmers don't relay on the Gov't for $$.

Most likely, there will be successful tobacco growing outfits after the shakeup and out is done.

 

[gawithhoggarth]

Consolidation is good here! Prior to this, some pipe tobacco companies were tiny divisions of huge cigarette companies and got no attention. The cigarette companies decided to sell them off, so now you have pipe focused companies, the largest being STG, Mac Baren, C&D, and maybe Dan in Germany and Gawith in England (others?). It was a very good thing!

STG own MacBaren blends.

 

[gawithhoggarth]

And you can't just grow tobacco in many countries, some are still very much state owned and grown, and of course you need the weather and suitable climate and soil. And then you can't just easily move raw leaf, you need special licenses etc, registered transport. Logistically and regulatory its a nightmare. And if you relied on your own crop in one place or another, what would happen if there was a bad flood, draught, a war and you lost all your crop? This is why you tend to buy from large companies and dealers who have access to many supply routes.

 

[cosmicfolklore]

Marijuana and wine uses one crop per product. Pipe tobaccos are mostly blends on many different varietals from all over the world. So, C&D would have to have many different fields of different varietals all over the world. Plus, pipe tobacco only uses parts of the plant. We smoke mostly the lower leaves, whereas cigarettes can make use of the rest, because of of the way blend.

We are like in the single digit percentage of smokers of all tobacco users. Pipe tobacco is absolutely the smallest industry in tobaccos.

Add in how shifting climates can make or break farmers in certain areas, and it’s all just not a viable way to run a business.

I’ll just let the tobacco industry do what it knows is best for it, and leave my arm chair ceo-ing to my daydreams.

 

[cosmicfolklore]

In the 90’s cigarette corporations saw the writing on the wall. While they were the richest industry on Wall Street, they started buying into other industries like cheeses, cereals, agriculture, toys, electronics. They diversified to protect theirselves. I’ve read where about half the grocery store is owned and profiting the cigarette moguls… because they know their time as cigarette producers is short.

Pipe tobacco is a tiny skiff floating in a BIG ocean watching the weather forecast a hurricane heading slowly their way. You can shout at it, scream, stomp your feet, but none of that will stop a storm like that.

So, everyone knows now that tobacco is bad for us and costs us all money out of our pockets because of smoker’s decisions. Less people smoke cigarettes than in the last 80 years. People turned to vapes to quit, but… less kids are taking up cigarettes than ever before. Their customers are leaving them more day by day. It’s not just a small group causing this, but the vast majority.

So… our time is short. And, right now, we have more pipe tobacco available, cheaper than we ever will have. If you want to smoke your pipes into the future, your only option with any assurity is to stock a cellar… NOW. Those that don’t will just be floatsom in the wreckage of the flood. Poor chaps.

 

[sablebrush52]

In the 90’s cigarette corporations saw the writing on the wall. While they were the richest industry on Wall Street, they started buying into other industries like cheeses, cereals, agriculture, toys, electronics. They diversified to protect theirselves. I’ve read where about half the grocery store is owned and profiting the cigarette moguls… because they know their time as cigarette producers is short.

Pipe tobacco is a tiny skiff floating in a BIG ocean watching the weather forecast a hurricane heading slowly their way. You can shout at it, scream, stomp your feet, but none of that will stop a storm like that.

So, everyone knows now that tobacco is bad for us and costs us all money out of our pockets because of smoker’s decisions. Less people smoke cigarettes than in the last 80 years. People turned to vapes to quit, but… less kids are taking up cigarettes than ever before. Their customers are leaving them more day by day. It’s not just a small group causing this, but the vast majority.

So… our time is short. And, right now, we have more pipe tobacco available, cheaper than we ever will have. If you want to smoke your pipes into the future, your only option with any assurity is to stock a cellar… NOW. Those that don’t will just be floatsom in the wreckage of the flood. Poor chaps.

This is why when someone here, in the building phase of pipe smoking, asks whether to spend discretionary funds on pipes or tobacco I always say buy tobacco. Pipes you can always get.

 

[cosmicfolklore]

This is why when someone here, in the building phase of pipe smoking, asks whether to spend discretionary funds on pipes or tobacco I always say buy tobacco. Pipes you can always get.

Yep, once tobacco goes tits up, you’ll be able to get really good deals on artisan pipes in the antique stores.

 

[danish]

STG own MacBaren blends.

No. Where did you get that information?

 

[gawithhoggarth]

No. Where did you get that information?

sorry owns UK distribution rights, read original post wrong and can't edit on this forum after few minutes or delete.

 

[woodsroad]

Conglomerates pursuing the best quality? More likely the pursuing the most profit.

I don't see this as a viable step. Tobaccos are grown all over the world. Owning that would be a logistical nightmare. It also puts manufacturers at risk for bad growing years that might pertain to their holdings rather than being able to pick and choose from what's available. Sometimes things are best left decentralized.

BINGO.
Successful corporations are good at two things:

• Making money
• Divesting themselves of risk.

Farming is very risky, which is why tobacco product manufacturers long ago moved to the auction system, forcing the risk onto farmers.

 

[cosmicfolklore]

No. Where did you get that information?

I was thinking the same, but didn’t want to dispute a European company that should know more than me. I’m glad you were right, and they didn’t recently buy MacBarens, because I’m not a fan of what STG does to blends they acquire.

 

[craig61a]

BINGO.
Successful corporations are good at two things:

• Making money
• Divesting themselves of risk.

Farming is very risky, which is why tobacco product manufacturers long ago moved to the auction system, forcing the risk onto farmers.

You hit the nail on the head…

USDA ERS - Risk in Agriculture

Risk is an important aspect of the farming business. The uncertainties of weather, yields, prices, government policies, global markets, and other factors can cause wide swings in farm income. Risk management involves choosing among alternatives that reduce the financial effects of such...

www.ers.usda.gov

 

[sablebrush52]

BINGO.
Successful corporations are good at two things:

• Making money
• Divesting themselves of risk.

Farming is very risky, which is why tobacco product manufacturers long ago moved to the auction system, forcing the risk onto farmers.

Three things, the third being hiring incompetent sociopathic personalities to head the company.

 

[jpmcwjr]

And she's got personality!

'Cause you got personality
Walk, with personality
Talk, with personality
Smile, with personality
Charm, with personality
Love, with personality
And of Cause you've got
A great big heart

 

[gawithhoggarth]

I was thinking the same, but didn’t want to dispute a European company that should know more than me. I’m glad you were right, and they didn’t recently buy MacBarens, because I’m not a fan of what STG does to blends they acquire.

Yeah sorry, note to self not to have 3 or 4 forum discussions open at once and not to do after long day with dogs jumping all over me and to check what I write before hitting 'reply' as can't edit or delete afterwards easily. Have asked admin to delete.