Short Interview With Gawith

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3rdguy

Lifer
Aug 29, 2017
3,472
7,293
Iowa
New interview posted on a forum in Spain, I went ahead and translated it. Does address the tin issue at least...

Two years ago, we learned about the union of Gawith Hoggarth and Samuel Gawith. How was the process?

Gawith Hoggarth bought Samuel Gawith around 2015. Many commentators refer to it as a “merger”, but it was actually an acquisition. Samuel Gawith's future was very fragile and required stability and support to ensure its continuity. In the future, more regulated costs will apply to pipe tobacco. Without the acquisition of Samuel Gawith by Gawith Hoggarth , his story would undoubtedly have ended.

Will both remain on the market?

The two brands are highly iconic and are expected to remain, although we continue to review product lines in the face of rising trade costs for tobacco, especially in the EU. Although both brands are made in the same location, the machinery and personnel were brought in from Samuel Gawith and significant differences persist between the two production techniques.

-Has the covid epidemic changed your investment to build a hotel and the Gawith museum?

Although the epidemic has certainly slowed construction, this project will continue. The renovation of the original Gawith building in Kendal is an investment in the memory of our legacy and not money. The first phase, focused on the structural safety of the building, is complete and we hope to begin the second phase, for its renovation, this summer. The building is not very big so current plans are for two apartments for rent by tourists, an exhibition shop, offices and a place of entertainment. We will use machinery and fixtures not currently used in production to furnish the building.

I have read that there will be a reorganization in your portfolio. Will you remove some references? What mixes will you keep with limited production?

We always produce what people want, but it must be in an amount that allows us to maintain profitability. However, from time to time we remove products with very limited sales from our stock cards to reduce our overall offering. This does not mean that they are not available, but that they become "special" orders that require higher minimum quantities. It's no wonder that importers often don't want to order these quantities because those blends actually move very slowly, which is why they are removed from the catalog.

What are the difficulties of being a small artisan producer in Europe?

The main difficulties we have are managing such a large product portfolio. All products in all EU countries must be registered and declared for registration fees every year. EU regulation is one of the most intense in the world and comes at a high price.

Will your business change a lot because of Brexit?

In the UK, no. However, the availability of our products in the EU is likely to change in the short term. The new trade rules likely mean that we will only supply duty free. This is a new situation that we are still trying to understand, so it can change at any time. In the coming years, we hope to be able to reintroduce mixes, but this depends on other factors that might be beyond our control.

Last year it had problems with its distribution in Spain. It has been fixed? How is the situation?

No, the Spanish market remains without distribution after difficulties with the importer. We will likely wait until travel restrictions are lifted to resolve this.

In recent years, some Spanish smokers have complained of packaging problems, including mold. It has been fixed? How can it happen in a prestigious brand like yours?

I understand that blemishes on these bulk products in Europe have been a problem for many years. There are many factors that contribute to this, but for these bulk items (250g / 500g), the environment is an important factor. For this reason, most producers do not offer any product in this format. In the UK market these products are bought and sold by specialists relatively quickly, but not in export markets. The lower sell rate with much higher temperatures is not a good match for this tobacco. We ship a lot more product to the rest of the world (outside the EU) with very little mold problems, so I think it's more of a geographic problem than anything else. Having said that,There is certainly a requirement to improve our packaging of these products to withstand a wider range of environments, but this is not an easy solution.

-There was a lot of talk about your cans.

In relation to the 50g cans. I read many articles on the web saying that the decision to use a Chinese provider was a personal one. This is incorrect. The original tin supplier, based in Europe, discontinued the production line for these cans. There are very few companies in the world that produce these iconic cans, so we have limited ourselves to working with one in China. We have been working with them on design changes to ensure better sealing properties. We believe that the cans we are producing today have improved a lot, but it may take some time to reach the EU market. We have received samples of a third generation tin design that is even better and should be used in summer production.
 
Jun 23, 2019
1,845
12,758
Interesting. I had noticed that GH&Co blends have "improved" in recent years. The timing seems to line up with the acquisition of Samuel Gawith.

Can other members confirm or deny this?

I have previously been much more fond of Samuel Gawith blends, I used to only order aromatics and ropes from GH&Co, but now I find myself enjoying a number of their blends. And when comparing quality, I used to feel Samuel Gawith were much better (many eons ago) but now I'd say GH&Co might even be a touch more refined/complex.

Reading through all the "corp talk", we find the following points of interest:

- Gawith is building a "museum" I assume it'll mostly be for advertising purposes, hopefully they tell the Gawith family story properly with all the ugly and the scars, it's a great story!
- They will continue to axe under-performing blends.
- UK leaving the EU brings some challenges with the European markets
- Gawith admits there can be mold problems with geological distinctions (seemingly dodging blame, placing on retailer storage conditions)
- They switched to Chinese made tins because it was cheaper.
 
Jun 23, 2019
1,845
12,758
So are they getting new tin shape and all or keeping the iconic SG tin just with a different manufacturer? Maybe the lowered cost will find its way to the tobacco too

I think the implication is that they will keep the tins.

The original tin supplier, based in Europe, discontinued the production line for these cans. There are very few companies in the world that produce these iconic cans, so we have limited ourselves to working with one in China. We have been working with them on design changes to ensure better sealing properties.

At least they're going to hopefully fix the seal issues.

As for translating those savings into lower tobacco costs? I have bad news my friend...
 

ofafeather

Lifer
Apr 26, 2020
2,769
9,044
50
Where NY, CT & MA meet
Gawith is building a "museum"
Sounds like there are vacation rooms to let...for pipe smoking tourists? A great way to preserve their legacy.
They will continue to axe under-performing blends.
Unfortunately, as other threads on the subject have mentioned this has more to do with their distributors than with them. It is a smart business move for them. Have a steady supply of your best sellers and have the rest be special order by the distributors. Unfortunately it leaves us at the whim of the distributors.

They switched to Chinese made tins because it was cheaper
Sounds like they were forced to change and at that point why not look for economical options? With the sheer quantity of manufactured goods coming out of east Asia we cannot discount them as shoddy. The reality is much more complex and ever evolving. As in this case, they realize there is an issue and are working to correct it.
 
Jan 30, 2020
1,850
6,086
New Jersey
The blend portfolio offering they mention is consistent with a number of comments I've seen them make. They'll produce whatever various importers want from them but you have to have a minimum production order on the request. That shouldn't be shocking news to anyone.

All of their answers seem to be pretty consistent with what other retailers have said over the past year which is nice.
 

larryspencer

Might Stick Around
May 12, 2009
80
229
West Texas
They addressed the companie's intention for growth, dealing with EU regulations, and a tin manufacturer, I think it was a good business decision. I read this post on their Facebook link several days ago.
 

mikestanley

Lifer
May 10, 2009
1,698
1,126
Akron area of Ohio
I was in my local B&M the other day, hoping the Sam Gawith had been restocked. The fellow behind the counter who does all the ordering and deals with the distributors. Flat out said he sincerely doubted Sam Gawith blends would be seen again. Based on what I've read and heard from members of the Gawith family etc, I don't think its the case but, I never like the sound of such statements. I would hate to lose Skiff. He did not have such doom and gloom for G&H products.

Mike S.
 

sablebrush52

The Bard Of Barlings
Jun 15, 2013
19,621
44,831
Southern Oregon
jrs457.wixsite.com
Thanks for translating and providing the interview.
It provides a picture of a company taking necessary steps to survive in an uncertain and hostile environment.
Reading through some of the responses I have a couple of observations.
Believing the pronouncements of tobacconists regarding the future availability of products has proven to be about as reliable as relying on a goldfish for investment advice.
Lowering production costs for tobacco products isn’t about lowering prices, it’s about ensuring survival and possibly growth. In the US we enjoy cheaper prices than anywhere else. There is no reality where our prices deflate while everyone else pays 2 to 3 times what we currently pay. Be grateful, for the time being.
Expect unpopular blends to go away. There’s no margin left for producing them. Stock up on what you like. It may disappear without warning.
 

mingc

Lifer
Jun 20, 2019
3,976
11,065
The Big Rock Candy Mountains
Believing the pronouncements of tobacconists regarding the future availability of products has proven to be about as reliable as relying on a goldfish for investment advice.
Amen, brother.

Also, nowhere in his interview does Chris say that Chinese tins are cheaper. What he does say is that the European manufacturer stopped making them.