Update on the STG Closure Of Sutliff and Mac Baren

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tfdickson

Lifer
May 15, 2014
2,376
47,951
East End of Long Island
I want to adhere to the no-politics proviso, but I think someone should point out that this may be payback for all the times Americans have railed against Scandinavian socialism. This might just be the Dane’s “Coward of the County” moment proving how wide of the mark all the taunting has been.

It’s a great point. Danish Jenny knows when to hold ‘em and knows when to fold ‘em.
 

Chasing Embers

Captain of the Black Frigate
Nov 12, 2014
45,249
119,245
I want to adhere to the no-politics proviso, but I think someone should point out that this may be payback for all the times Americans have railed against Scandinavian socialism. This might just be the Dane’s “Coward of the County” moment proving how wide of the mark all the taunting has been.
Nah, I find it darkly amusing.
 

Mike N

Part of the Furniture Now
Aug 3, 2023
532
3,012
Northern Panhandle of West Virginia
i am on the mailing lists for Cup O’ Joes and TobaccoPipes (I believe both are owned by Sutliff/MacBaren) and received identical emails from both today that noted the following:

”In an effort to provide the best service, security, and experience for our overall business and customers, we have taken the hard decision to suspend international shipping for the foreseeable future...”


Since I reside in the USA, this doesn’t affect me, but I wonder what others here think this decision by the new owner means?
 
Last edited:

sardonicus87

Lifer
Jun 28, 2022
1,395
14,198
37
Lower Alabama
It's probably something to do with licensing rights and being unsure of what Big Daddy STG wants to do. Sounds like standard corporate speak for "we don't know what the new boss wants yet, so we're going to play it safe for now".

Buying a business is a complicated affair, buying an international business moreso, what with varying intellectual property laws, varying licensing agreements, etc.
 

woodsroad

Lifer
Oct 10, 2013
12,913
21,607
SE PA USA
For real. Capitalists be like

IMG-1590.webp


Every. Time. When will people wake up?

That’s what Stalin asked.
 

Terry Lennox

Part of the Furniture Now
Aug 11, 2021
539
2,820
Southern California
I think STG is a small-C conservative company that does not want to take the slightest risk of breaking any international shipping rules, especially in a market so small as pipe tobacco. I noticed the other day Pipes & Cigars required an adult signature on delivery (and charged me $2 for it!). Other independent sites are more willing to ship anywhere. Some are not even collecting state sales tax yet. I won't name them here. But shop around, I say.
 

Peterson314

Part of the Furniture Now
Sep 13, 2019
548
4,597
Atlanta, GA
”In an effort to provide the best service, security, and experience for our overall business and customers, we have taken the hard decision to suspend international shipping for the foreseeable future...”
I used to be fluent in corporate doublespeak, and my guess is that they put someone new in charge to figure out how to consolidate their online retail presence as they move their entire production out of the United States.

You know, for your best service, security, and experience.
 

sablebrush52

The Bard Of Barlings
Jun 15, 2013
20,985
50,252
Southern Oregon
jrs457.wixsite.com
I used to be fluent in corporate doublespeak, and my guess is that they put someone new in charge to figure out how to consolidate their online retail presence as they move their entire production out of the United States.

You know, for your best service, security, and experience.
More likely an AI enhanced app than a new hire. The aim is to fire not hire.
All of these businesses are going bye bye in the next few months, so a notice of termination of international shipping, however stupidly done, makes sense as they simplify operations prior to shutting down.
 

woodsroad

Lifer
Oct 10, 2013
12,913
21,607
SE PA USA
Is that why?
I thought it was because capitalists hate competition so they buy politicians to keep antitrust laws weak and then buy and shudder the competition so consumers have no choice but to buy from them.

How many airlines exist in the USA?
How many national grocers?
How many national retail chains?
How many tobacco manufacturers?

There’s plenty of market share, there’s just too much greed to share the market.

Consumer choice is an illusion.
Define “greed”, please.

Did “greed” kill McClellands? D&R?

As someone who ran a small pipe tobacco brand for a few years, I can tell you that there’s just aren’t enough people who buy quality pipe tobacco to support more than a handful of manufacturers. You need to move a lot of product to make a profit, you need to buy a lot of leaf to be able to dictate what farmers grow, and what you will pay for it. Until you can work on that kind of scale, you will be at mercy of others for the quantity, quality and price of leaf (or processed tobacco), and your profit margins will remain slim.

You can call it “greed”, but I call it being able to keep the lights on and doors open.
 

mingc

Lifer
Jun 20, 2019
4,258
12,602
The Big Rock Candy Mountains
i am on the mailing lists for Cup O’ Joes and TobaccoPipes (I believe both are owned by Sutliff/MacBaren) and received identical emails from both today that noted the following:

”In an effort to provide the best service, security, and experience for our overall business and customers, we have taken the hard decision to suspend international shipping for the foreseeable future...”


Since I reside in the USA, this doesn’t affect me, but I wonder what others here think this decision by the new owner means?
You read your junk mail? 😎
 

sablebrush52

The Bard Of Barlings
Jun 15, 2013
20,985
50,252
Southern Oregon
jrs457.wixsite.com
Define “greed”, please.

Did “greed” kill McClellands? D&R?

As someone who ran a small pipe tobacco brand for a few years, I can tell you that there’s just aren’t enough people who buy quality pipe tobacco to support more than a handful of manufacturers. You need to move a lot of product to make a profit, you need to buy a lot of leaf to be able to dictate what farmers grow, and what you will pay for it. Until you can work on that kind of scale, you will be at mercy of others for the quantity, quality and price of leaf (or processed tobacco), and your profit margins will remain slim.

You can call it “greed”, but I call it being able to keep the lights on and doors open.
Of course, we're talking abut STG here, the McDonald's of the pipe tobacco world, not Ma and Pa Kettle. In the non cigarette tobacco scale of things they're a significant player.
Even so, I don't think greed is at play here, so much as dynastic indifference and the collateral damage it causes. The owners of Mac Baren wanted out, and STG bought them out.
A definition of greed is an interesting ask. I would say that it is a sense of covetous entitlement toward and over what assets others have.
I also don't align with Brian Levine's thoughts on what's going to happen. It would be inefficient to buy these two companies just to wipe them off the shelf. Much more efficient to take advantage of their market to fill your coffers. Just go with the most profitable of the products. That's what K (formerly known as K&K) have done for decades.
 

buroak

Lifer
Jul 29, 2014
2,127
1,033
NW Missouri
Of course, we're talking abut STG here, the McDonald's of the pipe tobacco world, not Ma and Pa Kettle. In the non cigarette tobacco scale of things they're a significant player.
Even so, I don't think greed is at play here, so much as dynastic indifference and the collateral damage it causes. The owners of Mac Baren wanted out, and STG bought them out.
A definition of greed is an interesting ask. I would say that it is a sense of covetous entitlement toward and over what assets others have.
I also don't align with Brian Levine's thoughts on what's going to happen. It would be inefficient to buy these two companies just to wipe them off the shelf. Much more efficient to take advantage of their market to fill your coffers. Just go with the most profitable of the products. That's what K (formerly known as K&K) have done for decades.
This is the main reason it occurred to me that Sutliff can still be saved. Unless STG wants to lock Per Georg Jensen in a blending room it Jutland, I cannot see what they really want from Sutliff. They may not care about collateral damage, but they should be able to smell the opportunity to sell Sutliff and recoup some of the costs for the purchase of Mac Baren, which I suspect is the asset they really wanted.
 

woodsroad

Lifer
Oct 10, 2013
12,913
21,607
SE PA USA
This is the main reason it occurred to me that Sutliff can still be saved. Unless STG wants to lock Per Georg Jensen in a blending room it Jutland, I cannot see what they really want from Sutliff. They may not care about collateral damage, but they should be able to smell the opportunity to sell Sutliff and recoup some of the costs for the purchase of Mac Baren, which I suspect is the asset they really wanted.
The most valuable asset of Sutliff is the IP. STG already has distribution, and (apparently), an excess of manufacturing capacity.

$5 says they shutter the Sutliff plant, sell the real estate, maybe ship some machinery to DK, keep some product names alive, squash the competition, scarf up the proportion of market share that they can.
 

woodsroad

Lifer
Oct 10, 2013
12,913
21,607
SE PA USA
This is the main reason it occurred to me that Sutliff can still be saved. Unless STG wants to lock Per Georg Jensen in a blending room it Jutland, I cannot see what they really want from Sutliff. They may not care about collateral damage, but they should be able to smell the opportunity to sell Sutliff and recoup some of the costs for the purchase of Mac Baren, which I suspect is the asset they really wanted.
Per Jenson no longer works for STG/Mac Baren/ Sutliff.
 

mingc

Lifer
Jun 20, 2019
4,258
12,602
The Big Rock Candy Mountains
Of course, we're talking abut STG here, the McDonald's of the pipe tobacco world, not Ma and Pa Kettle. In the non cigarette tobacco scale of things they're a significant player.
Even so, I don't think greed is at play here, so much as dynastic indifference and the collateral damage it causes. The owners of Mac Baren wanted out, and STG bought them out.
A definition of greed is an interesting ask. I would say that it is a sense of covetous entitlement toward and over what assets others have.
I also don't align with Brian Levine's thoughts on what's going to happen. It would be inefficient to buy these two companies just to wipe them off the shelf. Much more efficient to take advantage of their market to fill your coffers. Just go with the most profitable of the products. That's what K (formerly known as K&K) have done for decades.
I'm sure there's enough shelf space for the Mac Baren/Suliff big sellers. But Brian mentioned that STG's minimum batch size is 4,000 lbs. That's 32,000 2 oz tins. They can probably sell that many St. Bruno's but what else? Virginia No. 1? Ugh.
 
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