Scandinavian Tobacco Group A/S to acquire Mac Baren Tobacco Company A/S

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sardonicus87

Lifer
Jun 28, 2022
1,403
14,235
37
Lower Alabama
Best case scenario would be it's just an acquisition and business as usual continues for MB/Sutliff and STG just takes their cut off the top (share dividends and share value) as just a diversifying and extra revenue stream.

But that'll never happen.

Their whole action plan, as laid out on their website, calls for "efficiency" and "performance culture"... which is C-suite double speak for cutting jobs, turning-over experienced people for "fresh talent" (basically laying off long-standing employees "making too much" from decades of raises for cheaper new people that have to start at the bottom of the earnings ladder), homogenizing production (various kept blends will start to taste more like what's in STG's profile rather than tasting like a MB blend or tasting like a Sutliff blend), etc. All the worst aspects of modern boards serving their shareholders at the expense of everyone else.
 

PipeIT

Lifer
Nov 14, 2020
5,238
30,885
Hawaii

Tongue-Fried

Starting to Get Obsessed
Mar 17, 2024
111
900
NC Foothills
Did I say that Peter Stokkebye Luxury Navy Flake and Proper English are the bomb? Yes, they are! All hail our new STG overlords! bdw
Stokkebye won’t be affected? What about Newminster 400 SNF?

That means though that the ENTIRE Capstan fan club will go away with this buyout… unless they know better than to alter famous blend/tins of tobacco.
 
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grimpeur

Starting to Get Obsessed
Oct 30, 2015
117
425
Toronto, ON, Canada
On the positive side of things, there are a growing number of good artisan blenders, so I don't see our choices dwindling too much in the future - baring political agendas to ban continue to gain traction.
I hate to be a downer, but those artisan blenders are getting their ingredients from, in large part, Sutliff. So...we'll see what develops.
 

mingc

Lifer
Jun 20, 2019
4,261
12,607
The Big Rock Candy Mountains
Stokkebye won’t be affected? What about Newminster 400 SNF?

That means though that the ENTIRE Capstan fan club will go away with this buyout… unless they know better than to alter famous blend/tins of tobacco.
STG owns the Peter Stokkebye brand, while Mac Baren makes Newminster.
 

Marie

Starting to Get Obsessed
Jun 15, 2024
132
306
Los Angeles
I'm a curious cat. 🔎 Has anyone dug into the online file cabinet of STG? I thought the Chairman's Report on April 4th of 2024 contained a good directional nod in how they might play their hand shaping things. Pages 3, 4, 7 & 8 were most interesting.
In brief, the report was about meeting climate sustainability numbers and increasing mechanized industrialization of cigars while pushing further into the Global Next Generation Tobacco Products Market. There was nothing in their literature that pointed to focusing on pipe tobacco other than acquiring existing real estate and putting profits towards their goals mentioned above (it seemed to me). GNGTPMs from what I could find are:

Global Next Generation Tobacco Products Market, By Device Type (e-Cigarettes, Vaps, Mods, e-Hookahs, Pens, Other), System (Open Vaping System, Closed Vaping System, Semi-Closed System, Other), Product Type (Tobacco Heating Products, Vapour Products, Snus Products, Other), Component (Atomizer, Vape Mod, Cartomizer, E-liquid, Battery, Other), Age Group (18-30 Age Group, 31-44 Age Group, 45-60 Age Group, 61 and Above Age Group), Distribution Channel (Online Buying, Retail Stores, Convenience Store, Drug Store, Newsstand, Tobacconist Store, Specialty E-cigarette Store, Other), Country (U.S., Canada, Mexico, Brazil, Argentina, Rest of South America, Germany, France, Italy, U.K., Belgium, Spain, Russia, Turkey, Netherlands, Switzerland, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, U.A.E, Saudi Arabia, Egypt, South Africa, Israel, Rest of Middle East and Africa) Industry Trends and Forecast to 2028. Resource: Next Generation Tobacco Products Market – Global Industry Trends and Forecast to 2028 | Data Bridge Market Research - https://www.databridgemarketresearch.com/reports/global-next-generation-tobacco-products-market
 

woodsroad

Lifer
Oct 10, 2013
12,926
21,673
SE PA USA
What are the chances that STG will keep both it's Assens and Mac Barens production plants going in Denmark? I suspect production of MB blends will be moved to Assens.
This is pure speculation, BUT…

My guess, based on STG’s past behavior, is that they will close Mac Baren, sell almost everything, maybe keep some equipment. Mac Baren will exist in name only, product will be as uniform as the rest of the STG line.

This is a consolidation. As the market shrinks, businesses close and a dominant company emerges.
 
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