STG Mac Baren/Sutliff Purchase - A Few Words from STG's Leonard Wortzel

[MisterBadger]

The decisions of capitalist bean counters at the top never have anything to do with the people performing the real labor on the factory floors. Of course it wasn't a failure on their part. Are they going to be given adequate severances or other compensation for having their lives scrambled due to something that was no failure on their part?

Is it really helpful to critique the ethics of late-stage capitalism or corporate HR techniques on this thread, when most of us just want to know what's happening to some of our beloved blends?

 

[SmokeyJock]

Is it really helpful to critique the ethics of late-stage capitalism or corporate HR techniques on this thread, when most of us just want to know what's happening to some of our beloved blends?

He asks a fair question which we've heard nothing about thus far

 

[Hutch Piper]

I actually just heard about that issue a couple of weeks ago. Our Q&A team is digging into that.

Thanks for the response. It’s odd STG would release a product that varied so much from the previous. And also odd that this has just recently been raised. It has been a frequent critique in the pipe community for some time.

 

[MillenialCodger]

This is straight up damage control B.S. and frankly, trying to convince people that STG cares about the history of pipe tobacco is insulting to our intelligence.

 

[MisterBadger]

He asks a fair question which we've heard nothing about thus far

It might be a fair question to ask, but it's not a pertinent one in this context. Useful questions to ask are always about things in which one has some agency and can make a difference. I am very fond of HH ODF, for instance, but remain completely incurious about the welfare of the tobacco-harvesters in Malawi. To stay sane and effective in this wicked world, one has to set limits to one's social conscience.

 

[geoffreybeene]

Is it really helpful to critique the ethics of late-stage capitalism or corporate HR techniques on this thread, when most of us just want to know what's happening to some of our beloved blends?

we won't know about our blends until the list comes out in a few weeks like Leonard said. that question is answered.

he offered himself here as a human punching bag, i just want to get a few jabs in. i appreciate his being here to do this. i don't think this is an easy thing for him to do, and he didn't have to do it. i do not doubt leonard as a human cares about the pipe tobacco industry. but the business and system giving him his paycheck does not give a shit about the pipe tobacco industry or the human beings affected by it.

 

[franklinpipes]

@leonardw
I appreciate the candor and effort to provide clarity in a scenario that is rife with rumors and high emotions associated with the known and fear of the unknown.

I will cast my small vote for bringing "small batch" lines back into production, as they serve a much-loved function in the market.

 

[MillenialCodger]

I actually just heard about that issue a couple of weeks ago. Our Q&A team is digging into that.

That's kind of insane, seeing as how it's been a bag of vinegar for over a year.

 

[lordofthepiperings]

I don't disagree.

I feel I should clarify, this is not an attack towards you. I’m sure you’re a dedicated pipe smoker and a great guy.

This is simply frustrations at the company, what they’ve done, and the fact that they refuse to come to the table and explain themselves.

 

[PapaCoolDown]

I appreciate you providing a little insight. Thank you for chiming in.

 

[telescopes]

@leonardw What plans can you discuss and share with us when it comes to STG working with B&Ms and other small suppliers to ensure they can maintain source blends for their own inhouse blends? Has STG considered maintaing a way to communicate with those vendors so they can continue making blends that have in some case been around for over 100 years. Than you.

 

[MisterBadger]

we won't know about our blends until the list comes out in a few weeks like Leonard said. that question is answered.

he offered himself here as a human punching bag, i just want to get a few jabs in. i appreciate his being here to do this. i don't think this is an easy thing for him to do, and he didn't have to do it. i do not doubt leonard as a human cares about the pipe tobacco industry. but the business and system giving him his paycheck does not give a shit about the pipe tobacco industry or the human beings affected by it.

That question is not answered, insofaras we have been told that that everything is reviewable and that there can be no guarantees. And it's no good using this opportunity just to say how rotten the system is, when Leonard is hardly in any position to agree with you publicly. Let's give him stuff he can usefully feed back to the STG board that they might actually take some notice of.

 

[eyjaygaming]

Just for context here guys:

this is the closest thing we officially have of Sutiff closing.

As of today, STG STILL HASN'T PUT OUT ANYTHING OFFICIALLY.

We had to learn this from the Danish press and from Youtubers or Podcasters.

 

[jpberg]

This is straight up damage control B.S. and frankly, trying to convince people that STG cares about the history of pipe tobacco is insulting to our intelligence.

Leonard is, and has always been a decent and honorable guy who loves pipes and tobacco.
The fact that he’s here to talk should be applauded, don’t forget that his life is getting upended.
So Leonard, thanks for the post.

 

[Servant King]

 

[HeavyLeadBelly]

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.

Appreciate the reply even if the answers you have provided might not be what some of us want to hear, or that you couldn’t share more info.

 

[leonardw]

Thanks for the response. It’s odd STG would release a product that varied so much from the previous. And also odd that this has just recently been raised. It has been a frequent critique in the pipe community for some time.

I've been focused on the international business and some other areas for the past couple of years, so it's just popping up on my radar (vs. the organization's).

 

[Servant King]

IBTL (I'm Buying Tobacco...Lots!)

 

[seabee1999]

@leonardw

Good afternoon to you and thank you for sharing what you have so far. My interest in this hobby is to be able to make my own blends and see others do the same with just basic blending tobaccos (ie brigbt VAs, red VAs, dark burley, perique, etc). Sutliff provided an opportunity to folks like me to experiment and for others, who wanted to make money, an opportunity to sell their blends.

Within the current STG lineup of bulk blends and blending tobaccos, I do not see basic blending elements that would interest me. Would STG carry a basic blending line of tobaccos for folks like me and others to create small batch blends to enjoy? In particular, would STG be willing to continue producing the 515-RC matured Red VA Sutliff had?

My feeling is that Sutliff really got and helped smaller blend houses in creating something new and local for folks to enjoy. I don’t get that feeling from STG in how this merger is going. Plans to scrap the machinery to prevent others from potentially replicating or competing against STG show a potential lack of interest to help or support smaller producers.

 

[litup]

Leonardw - were you/are your privy to the decision making that went into the reported decision to scrap the machinery at the Sutliff factory rather than sell it intact? Many on here have surmised that it's simply cheaper to do so. Others suspect it's to prevent other companies from utilizing the equipment (effectively protecting a moat in other words).