Will The STG Market Disruption Create Opportunity For Boutique Blenders?

[Mike N]

We know from a statement on another thread today by one of the world’s most knowledgeable persons on the subject that, demographics, regulation and other obstacles notwithstanding, “The U.S. pipe tobacco market is still very profitable…”

Business schools teach that market disruptions, however frightening, can create enormous opportunities for innovators and risk-takers. With the substantial decrease in available Sutliff and Mac Baren low-production pipe blends now inevitable, it will be interesting to see if boutique blenders and tobacconists create something akin to farmers’ co-ops to source raw tobaccos and the equipment necessary to be able to fill this void. For some time now, small town pharmacies have banded together regionally to be able to have combined bulk buying power to compete with the big boy box stores.

My guess is that so long as the dollar demand is there (by, from what we’re told, are the small percentage of pipe smokers who prefer not to smoke Lane’s 1-Q all day), then the supply of blending tobaccos for artisan blenders and tobacco shops like LJ Peretti, Watch City, Milan, McCranies,The Country Squire, Wilke Pipe Tobacco, Ken Byron Ventures, etc will somehow be met. Also, I suspect that C&D, GL Pease and Kopp/HU will move aggressively to fill the supply void, as well. We already saw this by HU‘s massive increased domestic distribution last quarter of its tins.

There may be a silver lining in all this, after all. Something has to be packed into the bowls of those thousands of expensive pipes I see sold every year on Instagram, Etsy, and EBay etc., not to mention MBSD, Al Pascia, Tabaccheria Corti, SmokingPipes.com. etc.

 

[telescopes]

To answer your question, yes. But… the caveat may well be the Deeming Regulations if that is still a thing. In California, we have a handgun list. No new models can be added. As makers disappear or models change, the list gets smaller, and smaller, and smaller.

 

[beefeater33]

To answer your question, yes. But… the caveat may well be the Deeming Regulations if that is still a thing. In California, we have a handgun list. No new models can be added. As makers disappear or models change, the list gets smaller, and smaller, and smaller.

I don't think the Deeming Regs amount to anything............... much like the handgun laws.
Lot's of handguns still in CA...........

 

[Skippy Piper]

Here's a freebie opportunity for Cornell & Diehl to jump on: Vinegary red Virginias.

With McClelland long out of the game and Sutliff's Krumble Kake Red Virginia and 515 RC-1 going the way of the dodo, there's no one that I know of making vinegary red Virginias anymore. Just take C&D Interlude and instead of topping it with honey, give it a good dousing of vinegar! "You catch more pipe smokers with vinegar than honey", Isn't that how the old saying goes?

 

[smudgersmissingleg]

I'd expect C&D to be viewing this as a good opportunity to grow their market share.

 

[Zamora]

Absolutely, I think it's going to create a lot of opportunity for those who are truly passionate about pipe smoking. Those just looking for a quick buck, absolutely not. Cigars didn't work as a get rich quick business during their economic bubble period in the 90s no way will pipe tobacco become one now. The void left by Sutliff will probably take several years to fill, but I think watching it unfold will be fun.

 

[Chasing Embers]

Something has to be packed into the bowls of those thousands of expensive pipes I see sold every year on Instagram, Etsy, and EBay etc., not to mention MBSD, Al Pascia, Tabaccheria Corti, SmokingPipes.com. etc.

Many of those go to collectors that never smoke them.

 

[Zamora]

Many of those go to collectors that never smoke them.

Exactly, lots of people get pipes they deem "too nice to smoke" and some pipe collectors don't smoke period. I've gotten a few estates from an antiques dealer I'm friends with and sold her one too, she loves pipes and is pretty knowledgeable about major brands but has no interest in smoking. Then there's collectors who only smoke OTC stuff, Harlan Ellis had a massive collection but only ever smoked straight black cavendish.

 

[Chasing Embers]

and some pipe collectors don't smoke period.

I know a couple of cigar guys that buy artisan pipes as display pieces but never smoke pipes.

Then there's collectors who only smoke OTC stuff, Harlan Ellis had a massive collection but only ever smoked straight black cavendish.

I could easily do that. High grade pipes are excellent for aromatics as they often have large chambers and wide open airways.

 

[Zamora]

I know a couple of cigar guys that buy artisan pipes as display pieces but never smoke pipes.

Yeah a lot of them who are into it enough to have a dedicated smoking space decorate with general tobacco stuff, everything from Prince Albert tins to Joe Camel merch

I could easily do that. High grade pipes are excellent for aromatics as they often have large chambers and wide open airways.

That makes a lot of sense especially since artisans can make them as specific as the customer can afford. I know meer fans are split as to whether aromatics color faster or hinder coloring from clogging pores but I'd imagine for smoking qualities they'd be perfect.

One of the reasons I love pipes more than cigars is because it's more multifaceted, there's the pipe side and the tobacco side with some people leaning one way or another and everywhere in between.

 

[Chasing Embers]

I know meer fans are split as to whether aromatics color faster or hinder coloring from clogging pores

They definitely don't hinder.

 

[Zamora]

They definitely don't hinder.
View attachment 360702View attachment 360703

Impressive. I guess I'll have to use my Sherlock to smoke up that Molto Dolce I've had sitting in my open tins drawer for a year

 

[Mike N]

I knew I shouldn’t have added that last sentence to my post.

 

[Buffalo]

I think the piece of the puzzle that you're missing in this is that Sutliff was a major supplier of blending components to those artisan blenders. I don't know the exact market share, but my guess is that over 50% of the blending tobaccos sold were from Sutliff.

So yes there is an opportunity for boutique blenders to get a bigger piece of the pie, but only if they can source enough leaf in the flavor profiles they are after to do so.

 

[Mike N]

To answer your question, yes. But… the caveat may well be the Deeming Regulations if that is still a thing. ***

Here is a searchable data base link I found on the FDA’s website that appears to include “approved” pipe tobacco blends. Type in “Sutliff,” for instance or just checkmark the “pipe” tobacco box.

The “substantially equivalent” approval letter determinations are interesting.

Searchable Tobacco Products Database Additional Information

Find helpful information about the Searchable Tobacco Products Database.

www.fda.gov

 

[Mike N]

Here is a link to a 2016 article on this website. Obviously, much of what was of concern did not seem to impact the hobby as much are expected.

New FDA Regulations: How Do They Impact the Pipe World?

Tom Wolfe There has been a lot of hype and rumor the last few months about the new FDA "Deeming" rules that go into effect on August 8, 2016. What […]

pipesmagazine.com

 

[Mike N]

Duplicate post corrected.

 

[chilllucky]

I'm sure the regulatory burden is high, and would take up an inordinate amount of administrative attention for any new blender's venture - but the real hurdle is supply of raw materials.

As competition amongst brokers and buyers goes away through consolidation, there is less and less incentive for growers to produce leaf of distinction. Even at the height of the auction system, pipe tobacco was still less than 1% of the total raw leaf market and very subject to the wants of the larger buyers for cigarettes, smokeless, and machine rolled cigars.

 

[Hutch Piper]

I don’t think so, unfortunately. Too many hurdles.

 

[fireground_piper]

The deeming stuff became a grey area. Most of the big boys did all of their legal work for a while, then I think stopped when parts started getting shot down in court like warning labels.

Keep in mind pipe makers were required to registered too. I feel like it all kind of paused or never went anywhere.