Hello All:
Pardon the length of this post, but I figured I’d jump in to provide some clarity / serve as a human punching bag regarding STG’s purchase of Mac Baren/Sutliff.
It’s been a while since I’ve posted here, so a quick introduction. I’m Leonard Wortzel. I’ve been a pipe smoker for 30 years, and I’ve worked for STG since shortly after the Lane acquisition in 2011. I’ve held multiple roles in the company, including Vice President of Marketing & Product Development at Lane (that’s a pompous way of saying I oversaw the Lane pipe tobacco portfolio for about a decade). This
link will give you an idea of the sort of things I was up to during that time.
Lately, among other duties, I have been responsible for analyzing the current STG/Mac Baren/Sutliff global pipe tobacco portfolio and determining what that portfolio should look like in the future. Essentially, I was tasked with providing the recommendation for what products we should continue to make, and what products we should discontinue. I did not make decisions in a vacuum, but if you’re looking to pin the blame on the person most responsible for product decisions being made… I’m your best bet. [Small note for clarity: I drove the decisions on what we should make, not where it should be made.]
So let me answer what I can. There are some things I can’t discuss for various business reasons, but I’ll do my best. What I’m not here to do: Change anyone’s opinion. I do not expect anyone to feel any different than they currently do. You’ll just have a few more facts, and a little less conjecture.
I’ll start by attempting to pre-answer some questions.
Why Did You Wait Until Now to Respond?
Whether it’s about individual products or factories, it takes time to analyze the data, make recommendations, and come to a consensus. More importantly, the results of those decisions won’t simply impact our favorite products, they will impact people. People’s livelihoods are at stake. Good, passionate people. It served no one to add fuel to a rumor mill until we had a chance to communicate directly with those who may be impacted.
Why Is the Sutliff Factory Shutting Down?
We already have a factory that can produce all the same products and that has extra capacity. Maintaining two facilities when you only need one simply makes everything more inefficient and more expensive. What did NOT lead to this decision was the people who work at the factory. They showed up every day – for decades in some instances – to make products for the pipe tobacco community. They also helped make Sutliff more and more profitable every year since Mac Baren purchased the company. For reasons beyond the employees’ control, Mac Baren decided to sell, and the realities of factory capacity utilization followed.
What Will Happen with the Sutliff and Mac Baren Products in the US and Why?
Sutliff sells 988 products. Less than 950 sell more than 1,000 lbs per year. The Sutliff facility is set up to handle small-batch products. The STG facility is not. That answer is unlikely to please anyone – that 988th product is some pipe smoker’s favorite blend – but that is the reality. Therefore most of the Sutliff products will be discontinued (for now). Those that remain will be manufactured at STG’s Denmark facility. The final list of the Sutliff & Mac Baren products that are remaining will be published within the next few weeks.
What About Lane Products?
Nothing is being discontinued from the Lane portfolio. We already delisted low volume sellers from 2018-2020. For what it’s worth, 100% of what we delisted I had personally launched or resurrected over the prior decade. Take it from me, euthanizing a good chunk of a decade’s worth passion is not fun.
Are These Product Decisions Permanent?
No. Provided that they are grandfathered from an FDA standpoint, there is nothing stopping us from resurrecting any of the Sutliff or Mac Baren blends. Just like we resurrected the majority of the Lane Bulk portfolio after the STG acquisition in 2011. The pipe community is not shy. At pipe shows, pipe clubs and pipe forums, you will tell us what products should be brought back.
Does STG Even Care About Pipe Tobacco?
Again, I have neither the desire nor the ability to change anyone’s opinion on this question. But allow me to share my opinion. After Reynold’s decided to walk away from pipe tobacco, who had the interest, the money and the capability to step in? When Swedish Match was no longer interested in brands like Borkum Riff and Half & Half, who stepped in? When Dunhill decided to walk away from pipe tobacco, who stepped in to revive the blends under the Peterson name? When the owners of Mac Baren decided it was time to walk away, who stepped in? There are many of us who would have had the interest to step in, and a few who would have had the capability. But who ultimately put their money on the line? And who is the individual responsible for managing STG’s pipe tobacco portfolio going forward? A young man name Max Stokkebye. Max cares about this little hobby of ours. As do I. And we’ll stop caring when you pry the pipes from our cold, dead hands.
