HillbillyPyro
that's what she said
So when do the Swisher unicos come out? Lol
Drew Estate bought by Swisher
- Thread starter jebloom22
- Start date
So, as most know, I am a huge fan of the T52 line for many reasons.
Even though I have read this thread from stem to stern, I am still trying to figure out if the "higher end" lines that many of us love (ie Unico, T52, #9, etc) are in danger of going downhill, or will Saka and Drew still be onboard to ensure quality?
Even though I have read this thread from stem to stern, I am still trying to figure out if the "higher end" lines that many of us love (ie Unico, T52, #9, etc) are in danger of going downhill, or will Saka and Drew still be onboard to ensure quality?
AlohaStyle
BoM Sept '12 & Aug '13
Steve Saka hasn't been part of DE for over a year now. JD said nothing will change as of now, same team making the DE cigars, they just get the financial and manpower backing to handle business/financial aspects. He said the business/financial stress has been lifted allowing him to focus on the artistic (cigar) aspects of DE.
I believe JD when he says all this and honestly believes nothing will change, but what happens 6 months from now, 1 year from now or maybe 3 years from now when JD and the DE team come up with an idea that gets shot down by the big corporation. That, is how good brands go downhill when bought out by big corporations. As much as JD probably has been led to believe he will control DE, there will be a time when someone tells him no, and then no again... then what?
Thanks, Ryan...I did miss that Steve was no longer a part of DE.
...Our hopes will lie in Jonathan, I guess!
StogieNinja
Derek | BoM June 2014
Say it ain't so! I hope this doesn't affect their non-infused cigars.
Jfire
BoM 9/9' 9/11' 8/12'
AlohaStyle
BoM Sept '12 & Aug '13
Just in case other haven't seen it.
"I have been getting slammed today with phone calls, texts, emails regarding Swisher's acquisition of DE. I have decided for good or bad I am going to share my thoughts.
Like every other jag off with a keyboard I have a myriad of opinions regarding the news, unlike most I probably have greater insight given my experience in our industry and that I served with DE as their President and the CEO for eight years. That being said. I will willfully admit I do not know all the facts so what you are about to read is just my opinion.
- Congrats to my good friends at DE. They have struggled and worked their collective asses off for nearly two decades. It truly is amazing what they have accomplished, a true American success story.
- DE always has suffered under the burden of their rapid growth and expansion. It takes a tremendous amount of cash to operate a handmade cigar factory given that you are forced to buy materials three to five years before you even have the opportunity to try to create a sellable product. So even when you are doing fantastic posting those increases in sales, you are faced with a tremendous cash crunch given the investment needed to maintain the growth curve. IMO it was only a matter of time when either they would had to slow way down or take on an equity partner. Knowing them, "slow" is not in their vocabulary, so some sort of deal with someone was inevitable.
- Adding to the mix the uncertainty of FDA it makes doing a deal with someone with more experience and capacity to deal with this uncertain future wise.
- Given the size of DE, there are very few companies in our industry with the financial wherewithal to be such a partner.
- Swisher is a very well run, privately held company full of good people. Not your typical corporate wonks, so knowing the landscape I think they are the ideal partner given the field of possible suitors.
- I do believe that JD, Marv, Mike and the whole crew love DE. And I think they did a deal that gives them the ability to operate as a stand alone division and intact for the foreseeable future. What more could you ask for? No one is getting laid off, no consolidation of the factory or the US team as part of the deal. My understanding is that -all- of the existing management and key positions are under an agreement to stay. Seldom is a deal made where your people are given a fair opportunity to continue performing and for this the partners at DE deserve praise.
- In any deal like this, all the parties involved are required by non-dislosure agreements to remain silent. Do I think JD could have handled his denial comments better? Yes, but that is in hindsight, plus part of what makes him JD is the fact that he is knock-around, regular guy, not some sophisticated business MBA type. And to be honest, much of the fallout I have been reading today is resulting from what other's said about the situation more so than what he actually said himself. I know this can be argued endlessly and probably will be for a few more days.
- So what happens to the products? I honestly don't know, I do know however that the purchase does not automatically mean a change in brands or decrease in the quality. It could mean just the opposite. I do believe that DE will do their best to maintain and improve the products.
- Look do I believe "nothing" will change? No… things always change. They would have changed regardless of who they did a deal with and even if they hadn't done a deal. Change would have been inevitable regardless, what I don't know is whether this change will be for the better or the worse, time will only tell.
- And finally, I have read in a few places online speculation that my departing may have had something to do with this "pending" deal. This is untrue as we were not engaged in any such discussions with Swisher during my tenure.
There I have said my two cents… this has to be the world's longest FB status update... And I did the whole thing in my Scooby Doo underwear! <snicker>"
I hope nothing major ever does change. I have been a Drew Estate fan for over a decade. I totally get the business standpoint that it's business and not personal. Jim Beam is going through something similar now and they have been getting scathed in social media for selling the company to a foreign company. I think a lot of the backlash here comes from the fact it's Swisher--and while many of us got our start with a store bought Swisher(I did at 18) we enjoy handmade cigars now. Maybe it wouldn't be such a downer if a premium company bought them---but then again folks get upset when General Cigar buys up a company. I will continue to buy Drew Estate cigars unless it goes to hell in a handbasket. What I don't want to happen is a big company like Swisher come in and screw with the mgmt. in place that gets them so frustrated they leave or quality suffers. That sort of thing has happened in the firearm industry with Cerberus/Freedom Group that bought out many gun companies (like Remington) and turned many of them into crap.
And what is going on with Alex Goldman from Royal Gold(Swisher's premium division)? If this guy is still around will he have any say so with regards to DE premium lines?
And what is going on with Alex Goldman from Royal Gold(Swisher's premium division)? If this guy is still around will he have any say so with regards to DE premium lines?
Grape flavored undercrowns. A dream come true.
This blows...
I get it, I get all of it...
I get JD keeping silent about it. I get people are mad about 'how he kept silent'. I get why people are scared/angry about DE being bought by a bigger company. Most importantly, I get why they did it now. Acid makes up a HUGE bulk of their sales, and with the FDA vultures circling, he needed help to fight them off as long as possible. The FDA stuff may not happen yet, but from people I've spoken to at General and other companies, it's just a delay of the inevitable.
I get JD keeping silent about it. I get people are mad about 'how he kept silent'. I get why people are scared/angry about DE being bought by a bigger company. Most importantly, I get why they did it now. Acid makes up a HUGE bulk of their sales, and with the FDA vultures circling, he needed help to fight them off as long as possible. The FDA stuff may not happen yet, but from people I've spoken to at General and other companies, it's just a delay of the inevitable.