I would like to understand the thought process behind completely erasing every blend Sutliff produced for the U.S. market. To eliminate that many tobacco blends and create such a void in the pipe tobacco world seems to be a big "screw you" to pipe smokers.
I'll answer as best I can... and it's still going to seem like a big "screw you" and corporate B.S.
Below is what I posted on the pipe forum we host. It repeats a lot of what I've said on this thread:
As it pertains to the U.S. portfolio, Sutliff sells 988 items (including items from the Mac Baren family). That is a very, very large portfolio. For reference, the Lane portfolio, which does far more volume, has about 125 items. 700 of their items sell less than 100 lbs. annually. This is a very, very small amount. Only about 30 items sell more than 1,000 lbs. per year. Anything under that would be considered small batch in a modern factory.
The Sutliff facility is comparatively small, older and well suited for during short production runs for the U.S. market. The STG facility in Denmark has extra capacity and well suited for long production runs to serve the needs of pipe smokers in more than 70 countries around the globe. Plus there is the Mac Baren facility, also in Denmark, that is sort of a mix between the STG and Sutliff facilities.
So I was faced with a conundrum. Maintaining three pipe tobacco factories was never going to be a financially viable option. Producing small batch items at STG's facility will not work with our current setup. The other two facilities do not have the capacity to produced the combined portfolios.
Based on this and multiple other factors, I recommended that we discontinue the majority of the Sutliff portfolio. STG followed my advice. The Sutliff produced items that we are keeping will ultimately be produced in Denmark. The Mac Baren items we are keeping will also be produced in Denmark. No Lane items are being discontinued (we discontinued low volume items from 2018 - 2020). I don't have the full list of the Sutliff/Mac Baren items we are keeping right now, but will in the coming weeks.
So, not good news - even that 988th item is someone's favorite blend - but those are the facts. I did not take these decisions lightly. I knew full well that in making my recommendation it would almost certainly lead to closure of the Sutliff factory. This was indeed the case, and last month I stood in front of those employees as the STG representative when the announcement was made.
Pipe tobacco is a profitable but declining category. In the past 15 years, companies like McClelland and Daughters & Ryan have chosen to cease operations. Larger companies such as Reynold's, Altadis, Swedish Match, and now Mac Baren, have decide to walk away from pipe tobacco. In each of these latter cases, STG has stepped in and it is only because of this that many of the brands and blends we love still exist. As painful as it has been, I believe the decisions I've made are what's best not simply for my company, but for the long term health of the pipe tobacco category.