It would be a good time, maybe, for Mike M. To get back in business.
wonder what he thinks of all this?
wonder what he thinks of all this?Will The STG Market Disruption Create Opportunity For Boutique Blenders?
- Thread starter Mike N
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When there is money to be made there will be vendors. How much it amounts to is yet to be seen
YES PLEASE COME BACK! We will pay a premium for blends you consider inferior. Its likely better than most of what is currently out there.It would be a good time, maybe, for Mike M. To get back in business.
Gawith & Hoggarth have already bumped up supply to the US. STG are playing into their hands, for one.
And HU is now being sold in the US, not a lot of the blends but it is a start.
At first I thought that post said Mike N., not Mike M., and I was like, heck, at my age I have enough problems even packing my own pipe āŗIt would be a good time, maybe, for Mike M. To get back in business.
The smartest thing the distributors could do to compensate for the loss of Sutliff blending tobaccos destined for small blenders is to negotiate the importation of bulk blending leaf from Dan/DTM and Kopp, both in Germany. Their blending leaf is exceptionally good quality, and in the case at least of Dan, already exists in bulk packaging.
The brick and mortar shops and retailers with house blends can contact their importer / distributers and request this leaf. Or they can throw up their hands and quit. Up to them.
The brick and mortar shops and retailers with house blends can contact their importer / distributers and request this leaf. Or they can throw up their hands and quit. Up to them.
Considering we just lost a major leaf supplier in Sutliff, I doubt this ends up a boom for boutique blending.
Maybe, and this is a big MAYBE, Laudisi has C&D increase small batch production to fill some of the void.
Maybe, and this is a big MAYBE, Laudisi has C&D increase small batch production to fill some of the void.
Hopefully there will be some entrepreneurs who will step up, although it may end up costing us more. I'm new to pipe smoking and know nothing of the tobacco business. But for people who like fine things, and I'd consider pipe tobacco to be among fine things like high end meat, wines, etc., there is a market. Anyone who has ever bought meat online knows you can get really good stuff. Sometimes very overpriced yes, but still very good. I recently got into Iberico Pork, google Campo Grande pork if you have any interest. It is very good, and some cuts taste more like beef than pork. But as you will see on the website, very expensive. I've read the wine industry has taken a hit this year, but the high end stuff still sells for a very high price, there is still plenty of demand for it. As I've said I know nothing of the tobacco industry so I could be completely wrong, but I guess I'm being an optimist (sort of). I do worry more about government regulations than anything else. The Weed industry seems to be thriving though...
I donāt know if it is allowed to post links here, but today I posted an interview I did to Per Jensen a few days ago to discuss this topic and the general impact of STG/MB on the pipe tobacco industry
It's not advertising. Post the link!
I think it absolutely leaves some opportunity for some smaller businesses and blenders to come in and create some unique stuff. It's really just a matter if one is passionate and/or savy enough to take on such a task.
Ok, here is the link, you can skip the first 10/12 mins that is in Italian and get to the interview in EnglishIt's not advertising. Post the link!
(A full 100% English version will be out early next week)
I kindly ask the admin to remove the message if it is against the rules
Iām only about halfway through the video, but wow. If STG controls 80% of the pipe tobacco market that is very bad.
It also makes me wonder if the speed at which they are doing this (shutting down, destroying machines, etc) is due to a worry that they may be running afoul of anti-trust laws. Get rid of the factories and machines as quick as possible so there is no recourse to be had.
It seems they did not want the factories or portfolios, just the market share.
He's promoting his own YouTube channel which is really no different than linking to one's own website.It's not advertising. Post the link!
Just an observation, not my worry.
The interview is fantastic. Deserves its own thread really.
The US pipe tobacco market is still very profitable for STG.
Question: Have you stopped to think about why the US pipe tobacco market is still very profitable for STG?
Answer: Because they don't f^ck around with small batches and low volume legacy blends. And they squash the competition.
Other companies may find success with different business models, but STG deleted Mac Baren and it's blends to keep the company very profitable.
Given that some of those blends will still exist, subtract overhead and production costs saved by closing the factories, itās quite likely they will get a positive return on the 70+ million they spent. Remember , many of thise blends will be sold in Europe and other places even if they arenāt sold in the USA.
I expect that STG will recover their investment rather quickly. Wouldnāt it be great to be able to see a graph of sales, gross and net both pre and post sale?
I am wondering what tax write offs they were able to apply in Denmark. It might very well be that the investment ālossā will help eliminate many possible tax liabilities the company faced previously. Leonard made the decisions but he did so using data. He comes across as intelligent. I am sure STG considered wisely before acting. We will see. To be continued ā¦