IMO Jonathan Drew did the right thing. He knows that his product quality is going downhill, he knows that his educated consumer (us) knows this, and he is going to jump out before the ship completely crashes.
Drew Estate bought by Swisher
- Thread starter jebloom22
- Start date
Agree. With this coming out as true #4 seems fairly below the belt and beyond shady.
Like I said in the previous thread: We all admire JD for his passion and his business acumen. I've never met the guy, but by all accounts he's a good guy. I'll give him the benefit of the doubt on this. I don't think he and his team would make such a huge decision like this if he didn't think it was in the best interest of DE as a business and in the spirit if he was hoping to accomplish with the company.
Now, onto speculation. Was this acquisition done for marketing/distribution reasons or because of the looming FDA regulations?
And yes, bringing up Kiki Berger in his statement does seem somewhat underhanded. But the company isn't sold until the company is sold. A deal of this magnitude would likely have taken many months of negotiations. Perhaps the two companies only reached mutually agreeable terms within the last few days. So until a deal is actually made, saying the company was sold was indeed a lie. What we don't know is the timeline. We're all just speculating. Let's give all parties involved the benefit of the doubt for now.
In the end, I'm inclined to think that this deal won't make much of a noticeable difference in how Drew Estate operates.
Now, onto speculation. Was this acquisition done for marketing/distribution reasons or because of the looming FDA regulations?
And yes, bringing up Kiki Berger in his statement does seem somewhat underhanded. But the company isn't sold until the company is sold. A deal of this magnitude would likely have taken many months of negotiations. Perhaps the two companies only reached mutually agreeable terms within the last few days. So until a deal is actually made, saying the company was sold was indeed a lie. What we don't know is the timeline. We're all just speculating. Let's give all parties involved the benefit of the doubt for now.
In the end, I'm inclined to think that this deal won't make much of a noticeable difference in how Drew Estate operates.
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THEMISCHMAN
SGT Hulka
I agree. #4 is what I was referring to. Seems like a silly thing to mention when it's obvious a deal like this is something that has been in the works for a while. Will it be good for the cigars; I guess we will find out. I'm not a DE fanboy but I really enjoy the Undercrowns. Overall, if it's good for Jon, then good for Jon. I'm not very informed on all the legislative things happening in the tobacco industry but I still hate seeing businesses that were built on dreams get swallowed up by huge corporations.
It is smart business. I would have sold it in a heart beat. I'm happy that JD is doing what's best for him. No fault in that. He can't make everybody happy. People whine that his cigars are going down hill. Whine about the way his cigars are released. Then they cry that he is a sellout because he sold his company. If I was him I wouldn't lose one minute of sleep from the detractors, the dude is laughing all the way to the bank.
It is a business right? They are in it to make money. If Swisher threw a boatload of money at them (because I don't think JD is the sole decisionmaker, but I could be wrong,) why blame them for taking it?
I dont imagine DE needs a whole lot of help with distribution.. they are already one of the largest manufacturers of premium cigars in the world.. they are limited by resources (only so much tobacco available to roll certain blends).. not by distribution centers (if they had 30% more product available.. they could easily sell more to their current distributors.. or pick up additional accounts to cover the larger inventory with almost no effort..
I cant see DE needing (or wanting) an investor for marketing or distribution.. they have that in spades already... I also cant see an investor wanting to spend the kind of money it would take to buy DE with the intent of "fixing" what isnt "broken" with the company..
I can see swisher being motivated to purchase DE.. they are successful.. and will help swisher move into a new segment of the tobacco industry (although I am a bit surprised by it.. you dont often see companies get acquired like DE that are at their peak... most acquisitions happen with up and comers.. or with failing businesses that can be bought cheap)...
but.. there are obviously MILLIONS of reasons why DE would want to sell to swisher...
Good on JD and Marvin for closing the deal if thats what they felt like they wanted to do... I hope they made/make bank in the process.... and.. if the FDA is one of the motivations behind this (I dont really see that as being a big motivator.. but.. I guess it could be..). I hope swisher is the solution to their perceived problem.. and that they made the right decision..
I cant see DE needing (or wanting) an investor for marketing or distribution.. they have that in spades already... I also cant see an investor wanting to spend the kind of money it would take to buy DE with the intent of "fixing" what isnt "broken" with the company..
I can see swisher being motivated to purchase DE.. they are successful.. and will help swisher move into a new segment of the tobacco industry (although I am a bit surprised by it.. you dont often see companies get acquired like DE that are at their peak... most acquisitions happen with up and comers.. or with failing businesses that can be bought cheap)...
but.. there are obviously MILLIONS of reasons why DE would want to sell to swisher...
Good on JD and Marvin for closing the deal if thats what they felt like they wanted to do... I hope they made/make bank in the process.... and.. if the FDA is one of the motivations behind this (I dont really see that as being a big motivator.. but.. I guess it could be..). I hope swisher is the solution to their perceived problem.. and that they made the right decision..
Agentskull
BoM Feb 14
Disappointed about my post?
Yep. Happens every single day. Money is made. The passion is no less. I had great hopes for CAO when it was bought. I am sad with the results. Maybe me or maybe not the cigars are not the same. This could be a great move for Drew Estates. Any business reaches a point where they hit a wall. They want to do more, to try new avenues and to exceed but they have to remember the employees and team that is at risk. Backed by huge cash who knows what Jonathan may create with his team? I hope.
Good for them in cashing out. Tough business I'm sure especially with all of the new brands coming in. Looking forward to their next venture if there is any.
Sucks that he did basically come out and say it wasn't true. Just should have kept his mouth shut and not post but whatever.
Sucks that he did basically come out and say it wasn't true. Just should have kept his mouth shut and not post but whatever.
It always seem like a lot but once you add in the cost to grow, cure, clean, roll, package, ship and manage...that number always shrinks. What happens when a crop is lost or a barn fails or a blend fails, or or or. It gets absorbed into overhead. There is never enough money.Makes sense but with all the Kuba Kuba they sell, they should have huge cash already.
No.....lol....disappointed that JD felt the inclination to jeopardize his reputation as up front and down to earth
Agentskull
BoM Feb 14
It was a no win. Stay silent and rumor and speculation grow. Tell the truth and lose a multimillion dollar deal
