STG pulls out of the USA

Trailboss

Not a positive development....

https://tobaccobusiness.com/scandinavian-tobacco-group-closing-its-tucker-georgia-facility/

mfresa

That's a shame.  My office is a mile away from their building.

motie2

What are expected to be the consequences of this move?

riobrusa

For us, pipers, probably none.

RockyMountainBriar

My guess would be higher Lane (BCA, RLP-6, LL7, 1Q, BLWB, TK6, etc.) tobacco prices because they will all have to be imported. 🙁

RockyMountainBriar

Oh, and maybe This Pipe Life forum will be discontinued, after all, this site is US based only, as some world travelers here have found out.

motie2

 

PappyJoe

Their support for the forum has always ranged from slim to nonexistent. When was the last time @Leonard made an appearance?

Leonard

Fair enough Pappy, fair enough.

Ah, where to begin... 

As far as my absence, not a good excuse, but since about February I’ve been knee deep in making sure all our favorite blends remain consistent as we shift production from Tucker to our Denmark facility. Plus about a million ancillary tasks associated with the eventual move, along with everyday business. Then, as a cherry on the poop cake, I busted the $&!@* out my ankle about three weeks ago (pins, plates and all that goodness).

But, regarding the factory news...

First, nothing will happen for almost a year.

Second, the move will have zero impact on blend availability. Everything made here will be made there.

Third, it will have no impact on pricing. Import duties are pretty minimal, and the costs of production will go down significantly (hence the rationale for the closing in Tucker).

Finally, due to the FDA, we have no choice but to ensure every molecule of the blends that are coming out of Denmark match what has been coming out of Tucker.

Not a fun day during the announcement, needless to say (especially after having 30 staples pulled out of my $&#!* ankle that same morning), but I do appreciate the fact that STG was very transparent with factory employees, essentially giving them a year head’s up that their jobs will ultimately go away.

In the end it’s about those employees, and the realities of having mutilple factories that can perform identical tasks. From a pipe smoker standpoint, there will be no impact.

mfresa

We hope your ankle gets better Leonard

Leonard

Thanks @mfresa. Me too!

Danfriedman

Thank you for the update. Rumors are the worst once they get started. Nice job nipping them in advance. Best wishes on your recovery. Great to hear from the horses mouth.

FatherBriar

Thanks @Leonard - nothing "fun" about what you shared but thanks for taking the time to answer the questions asked.  Just had ankle surgery myself (minor stuff compared to what you are dealing with) - never good to have a bad wheel.  Prayers for healing.

Trailboss

I was not trying to start a rumor thread, just sad that they will not have a physical presence in the USA as far as a North American HQ.

judandhispipe

Thanks, Leonard.

Leonard

@Trailboss you are correct from a manufacturing standpoint. However, we will still have a North American HQ (Richmond). All kinds of organizational changes of the past couple of years. In the US, STG own Lane, Cigars International and General Cigar. All of Lane personnel (except for the factory) have been reporting up through the former head of General Cigar since April of 2018.

motie2

@Leonard -- To co-opt a popular phrase, "Thank you for your service."

Trailboss

Thanks Leonard,
All organizations have to make adjustments from time to time, it is just the way of the world. Hopefully, not too many are displaced.

Winton

Leonard, Thanks for your efforts. May you have wisdom in what needs to be done in the next year. It sounds like it will be rough. 

BobbyG

@Leonard Stand up post thank you for the update and fighting the good fight!

thebadgerpiper

Thanks for the updates @Leonard . I know you have to be going through a lot right now, so all info is appreciated.

motie2

News report
https://tobaccobusiness.com/scandinavian-tobacco-group-closing-its-tucker-georgia-facility/

Londy3

@Leonard another thank you sir! I hope you heal up quick!   From what you said, nothing will change on our end as pipe smokers, but does that include this forum?

Leonard

@Londy3 yes, no change to the forum.

CACooper

When I was in the retail business, I was fortunate to tour the Lane factory many years ago. Huge facility, very interesting tour, and the aroma was heavenly. Learned quite a bit that day and I’ll never forget the experience. 

A few questions for Leonard: Will you be disassembling all the machinery and moving it overseas, like what was done in the move from NY years ago? 

Are you going to source the tobacco from the same farmers and export it overseas?
Will STG be adding any more previous or new blends to the portfolio? 

Or will they eliminate some blends? 

I understand the flavor formulas will remain the same, but Herman Lane designed the total process, from leaf and flavorings used, to the machinery to achieve the level of quality he desired. It seems to me that any change to that process, however small, could affect the finished product. BCA is my absolute favorite tobacco, and I’d be very disappointed if it changes, even subtly. It’s totally perfect as it is. Fingers crossed that everything remains the same.

ghostsofpompeii

Sad to see another company leaving the US. Don't know how many people were employed at the Tucker plant. But I'm sure they were not happy with the news. I imagine the aroma in that place must have been amazing.