The closure of STG’s facilities, including those of Mac Baren and Sutliff, could have several implications for the pipe tobacco market:
1. Supply Chain Disruption: The consolidation may disrupt the supply chain, affecting availability and potentially leading to price fluctuations as production shifts to other facilities.
2. Market Concentration: With fewer production sites, there could be increased market concentration, potentially reducing competition and impacting smaller brands that rely on these facilities for manufacturing.
3. Economic Impact: Communities reliant on these facilities for employment may face economic challenges, similar to other regions affected by declining tobacco demand.
4. Regulatory Influence: As larger companies consolidate operations, they may exert more influence over regulatory policies, potentially affecting tobacco control efforts.
There were a number of pipe tobacco industry insiders in attendance at the Chicago pipe collectors club annual Christmas party last weekend.
I will not name any of them at this point (there will be many folks terminated) , but I want to succinctly passed on what was voiced to me
First, there usually only two reasons a company acquires it's competitors, planned expansion or elimination.
As most of you may have surmised, it is elimination..
This has broader implications than many may realize as Sutliff produces blends under contract for private labels like Seattle Pipe Club and others.
I would also note that STG has no plans to sell recipes or production equipment they acquired in this purchase.
Second, while I don't have a list of blends that may be preserved in some form, I am told that almost all will disappear.
Obviously, the best advice would be to stock up.
My final comment is that, things are always changing with regard to business decisions, particularly when boards replace CEO's, so future resurrections can happen.
Comments
The closure of STG’s facilities, including those of Mac Baren and Sutliff, could have several implications for the pipe tobacco market:
1. Supply Chain Disruption: The consolidation may disrupt the supply chain, affecting availability and potentially leading to price fluctuations as production shifts to other facilities.
2. Market Concentration: With fewer production sites, there could be increased market concentration, potentially reducing competition and impacting smaller brands that rely on these facilities for manufacturing.
3. Economic Impact: Communities reliant on these facilities for employment may face economic challenges, similar to other regions affected by declining tobacco demand.
4. Regulatory Influence: As larger companies consolidate operations, they may exert more influence over regulatory policies, potentially affecting tobacco control efforts.
Interesting... very interesting.
https://www.youtube.com/embed/videoseries?list=PLYf5EuacN1xafiDmT-nnOygrZbJ0lPyUK
It would be silly of STG to stop producing the blends that are under contract for private labels.
But then again, the world is full of people and companies doing silly things.
Much appreciated...