Drew Estates Sells...

[czerbe]

Wow!!

http://halfwheel.com/swisher-interna...w-estate/72299

Well best of luck to them. Hope it doesn't hurt their products... they make some of the best sticks I have smoked. Best of luck JD and the boys at DE.

[dave]

sad

[jhedrick83]

Better go grab another box of Undercrowns/T52/#9 before the get turned into flavored paper..

[Brooks W]

Originally Posted by jhedrick83

Better go grab another box of Undercrowns/T52/#9 before the get turned into flavored paper..

While I understand the thought process (and please understand I am not picking on you specifically) I find this line of thinking to be somewhat odd...Ligas and Acids and all the rest are all going to be rolled at the same factory, by same rollers, using the same tobacco for the foreseeable future...In other words, Nothing will change with the blends for the foreseeable future.

Have you SEEN how much tobacco DE has stockpiled?

Just because Swisher has purchased the company does not mean that any of the blends will change, at least in the short term.

[jhedrick83]

Originally Posted by Brooks W

While I understand the thought process (and please understand I am not picking on you specifically) I find this line of thinking to be somewhat odd...Ligas and Acids and all the rest are all going to be rolled at the same factory, by same rollers, using the same tobacco for the foreseeable future...In other words, Nothing will change with the blends for the foreseeable future.

Have you SEEN how much tobacco DE has stockpiled?

Just because Swisher has purchased the company does not mean that any of the blends will change, at least in the short term.

True, it does not necessarily mean that things will change tomorrow. I may be pleasantly surprised. However, properly pulling of a Merger/Acquisition where both parties benefit is extremely hard. Is a pre-merger Chrysler the same quality as a Daimler Chrysler or a Fiat Chrysler? Usually one gets cannibalized somewhat and there has to be a genuine culture fit between the two parties. I don't know JD or anyone at Swisher. So you are right, I have no idea what will happen. Maybe it's like Tata buying Jaguar and totally revitalizing it. My point is that for me, for my taste in cigars, there are many options in the same price range (and lower) that I enjoy just as much. If I know I can go pick up a Anejo 46 and it'll be spot on, or I can go grab an T52 for a few bucks more that may or may not be what I remember. I'll grab the Fuente every time. is LP dead to me? No. Will I be as sure purchasing them as I was before? No.

Foreseeable future is an easy phrase for a company to throw around, it keeps everyone happy and everything copacetic. It's great management. Let everything settle down, learn the ins and outs of your shiny new toy and then do what publicly traded businesses do, maximize shareholder value!

BTW, Brooks, I do love Halfwheel.

[Brooks W]

Originally Posted by jhedrick83

True, it does not necessarily mean that things will change tomorrow. I may be pleasantly surprised. However, properly pulling of a Merger/Acquisition where both parties benefit is extremely hard. Is a pre-merger Chrysler the same quality as a Daimler Chrysler or a Fiat Chrysler? Usually one gets cannibalized somewhat and there has to be a genuine culture fit between the two parties. I don't know JD or anyone at Swisher. So you are right, I have no idea what will happen. Maybe it's like Tata buying Jaguar and totally revitalizing it. My point is that for me, for my taste in cigars, there are many options in the same price range (and lower) that I enjoy just as much. If I know I can go pick up a Anejo 46 and it'll be spot on, or I can go grab an T52 for a few bucks more that may or may not be what I remember. I'll grab the Fuente every time. is LP dead to me? No. Will I be as sure purchasing them as I was before? No.

Foreseeable future is an easy phrase for a company to throw around, it keeps everyone happy and everything copacetic. It's great management. Let everything settle down, learn the ins and outs of your shiny new toy and then do what publicly traded businesses do, maximize shareholder value!

BTW, Brooks, I do love Halfwheel.

To be clear, "Foreseeable Future" is my term, not theirs.

Thanks for your insight!

[sweater914]

I haven't smoked a DE cigar and automotive analogies may or may not apply. If Swisher truly appreciates the DE brand they will let it continue. Porsche, and Lamborghini reside under the VW umbrella but each has identity. VW provided engineering expertise to Lambo to make sure ergonomics were sensible. That being said some of the Italian extravagance was lost during the transition. I'd rather have a healthy Lambo than none at all.

[themoneycollector]

^ this

I feel happy for JD & co, they are some $$$ ballers now.

But can't say I think their products will go anywhere but down.

[jhedrick83]

I don't blame them for getting paid. It's just a bit sad to me. Anybody want a wood tipped Dirty Rat!?

[Remo]

JD got PAID...good for him.

I'll wait and see about the smokes

[shilala]

Not yet has a good cigar gotten conglomerated and remained exceptional.
It's sad for the smokes, but I'm happy for JD. He's worked his ass off, and done some very special things. I'm happy to see it pay off for him!!!

[Subvet642]

It paid off for JD but it won't be so good for Swisher. Those who used to smoke DE cigars will likely stop due to a decline in quality, and Swisher Sweet fans aren't likely to start. It's gonna get ugly when they charge LP prices for gas station sticks. I can't see Swisher tolerating the type of availability issues that DE did to ensure quality. I see them using any old leaf as long as they can crank them out.

[czerbe]

CAO.. cough cough

[ApexAZ]

I think they were about to go belly up. Doesn't swisher have a traditional premium cigar? I thought they did, although I've never had one.

[themoneycollector]

Originally Posted by ApexAZ

I think they were about to go belly up. Doesn't swisher have a traditional premium cigar? I thought they did, although I've never had one.

Do you have anything supporting that they were about to go belly up?

[ApexAZ]

Originally Posted by themoneycollector

Do you have anything supporting that they were about to go belly up?

Just the people who work my B&M. They work with reps every day, go to ICPCR every year, etc. But the article even talks about their debt issues. I remember hearing about this earlier in the year. My guess is they knew the swisher deal was being discussed as a way to absolve their debt.

[dave]

Seriously?

I don't believe that for a second....unless 'foreseeable future' and 'short term' are relatively shorter than I'd normally consider

[ApexAZ]

Originally Posted by dave

Seriously?

I don't believe that for a second....unless 'foreseeable future' and 'short term' are relatively shorter than I'd normally consider

"Multiple years" according to the article.

[Brooks W]

Originally Posted by dave

Seriously?

I don't believe that for a second....unless 'foreseeable future' and 'short term' are relatively shorter than I'd normally consider

There have been examples of larger companies buying smaller ones, and it being a POSITIVE thing.

The first example that comes to my mind (albeit in a different industry) is InBev purchasing Goose Island. The consensus at the time was that it would destroy Goose Island and their beers, but I think any beer geek would be hard pressed to say that at this point.

In fact, GI has been able to produce beers (and the number of beers) they never could have dreamed of before they were purchased.

[dave]

If everything is the SAME, then what'd be the point? Will this deal give DE a larger profit margin? How? Highest end tobacco has often been scarce for DE. Will this deal make more somehow? If not, then what good would additional markets or sales be? jhedrick was obviously joking, but I have a very hard time imagining that this deal won't be blamed (by us) for diminished quality in a couple/few years.