STG closes Mac Baren and Sutliff

[woodsroad]

Looks like SP will have to buy Sutliff???

Sutliff has been owned by Mac Baren for many years.
It's not for sale, it's being shut down.

 

[huntertrw]

Let's see: Spend $530 million to purchase a business and then shutter it. In what universe does that make any economic sense (let alone yield an acceptable return on investment) ?!?!

 

[andrew]

This is going to have immense repercussions. I'm glad I have a lifetime cellar. Sutliff supplies alot of oriental leaf. McClellands sourced their oriental through sutliff. Ken Byron Ventures had opened my eyes to how much tobacco sutliff sourced to blenders. I remember when Macbaren was called Macbite. I like their HH series.

 

[Chasing Embers]

Let's see: Spend $530 million to purchase a business and then shutter it. In what universe does that make any economic sense (let alone yield an acceptable return on investment) ?!?!

I've seen it several times in factories. They'll repurpose the facility.

 

[Pipke]

Let's see: Spend $530 million to purchase a business and then shutter it. In what universe does that make any economic sense (let alone yield an acceptable return on investment) ?!?!

Acquire and consolidate to eliminate redundancy and increase efficiency. This translates into more profits and shareholder value. This has been done many times. Wouldn't surprise me if STG eventually got into hashish production.

 

[ThermionicScott]

Well, fuck. This wasn’t the bad news I was expecting today.

 

[sablebrush52]

Hopefully. It sounds like at least some of the lines will be discontinued.

Moving production to a new facility means different equipment, tobacco sourcing, techniques, QC, etc. etc. While by no means a certainty, there’s a solid possibility the blends will noticeably change. I hope not, but definitely possible

I think it’s more like probable than merely possible.

 

[Servant King]

Well, fuck. This wasn’t the bad news I was expecting today.

Yep it's worse.

 

[Chasing Embers]

Oh, well.

 

[sablebrush52]

This does not bode well for independent blenders that use Sutliff bulk as components.

You betcha! Grab whatever Watch City and KBV blend that you like.

 

[Chasing Embers]

You betcha! Grab whatever Watch City and KBV blend that you like.

Does Wilke use Sutliff?

 

[sablebrush52]

Just standing back and looking at the big picture.

People were driven away from tobacco by health fear arguments (at every level from personal decision making to federal law making), but the organizations and campaigns pushing those arguments were doing it for the money, not health reasons... or else there would be the same pushback on cannabis.

Except there isn't.

Exactly the opposite, in fact.

a.k.a. Follow the money.

The reason for mentioning it in this thread is A) the STG situation is a byproduct of that ^^^; and B) as a reminder STG will do whatever makes them the most short-term money, long-term customer satisfaction be damned.

STG is primarily a producer of cigars. I don’t think they live or die based on pipe tobacco.

 

[sablebrush52]

That is a silver lining if I've ever seen one, and an astute point. I'm assuming you're only referring to American tobacconists.

One of the biggest shames from all of this is that Sutliff makes match blends of many venerated, discontinued blends. Some of those older blends that have been discontinued, but kept alive in one way or another through Sutliff's match-blends, might actually be dead if Sutliff closes up shop.

They likely will be good as dead, since the sourcing will change.

 

[sablebrush52]

Let's see: Spend $530 million to purchase a business and then shutter it. In what universe does that make any economic sense (let alone yield an acceptable return on investment) ?!?!

They will move the machinery and stocks to STG’s factory and they will have the IPs. The properties will be sold.
STG will market their versions under the different names.
They’ll make money.

 

[renfield]

Some blends will go away. Others will have their production moved and be made from cheaper components. Prices will not go down.

These are the certainties. Act appropriately.

 

[sablebrush52]

Does Wilke use Sutliff?

Yep.

 

[GardenStateoftheArtBriar]

I knid of decided I wasn't buying anymore tobacco - in fact I was thinking /// about listing some tins
but now I just may go ahead and buy some more
Pipe smoking seems to be a growing trend but I don't know what people are going to load up their pipes with and go without much variety

 

[Chasing Embers]

I don't know what people are going to load up their pipes with and go without much variety

After a few decades, variety has become overrated. I mainly only smoke two blends these days.

 

[GardenStateoftheArtBriar]

After a few decades, variety has become overrated. I mainly only smoke two blends these days.

I think I remember that too - Pure straight Yenijdge and TS ...?

 

[AcesAndEights]

You betcha! Grab whatever Watch City and KBV blend that you like.

I noticed KBV listed his “final batch” of Byronic Hiro today. Wonder if that has anything to do with this. I have several squirreled away, but grabbed one more for the heck of it.