It's official

Got the scoop on a hot new story? New line? Other cool stuff? New legislation in your area?Post it here....
User avatar
Kip
International Hillbilly
International Hillbilly
Posts: 3204
Joined: Sun Jan 12, 2014 10:18 pm
Location: Santiago, Dominican Republic
Contact:

It's official

Post by Kip » Mon Oct 20, 2014 2:49 pm

This was reported by a different blog weeks ago, but they claimed to have been threatened with legal action and retracted it. Now,Cigar Aficionado and halfwheel is reporting "officially" that Drew Estate has been sold to Swisher.

What are y'alls concerns? Many or most of the current staff will remain for what appears to be a lengthy term. My concern would be if I were an ACID smoker. I'd be afraid Swisher would tinker with ACID and possibly downgrade its "premium-ness" to save a buck or two. The big selling point in my eyes for ACID has always been that it was a flavored cigar offered with no extra "stuff" such as reconstituted tobacco sheet, etc. Now, I wonder if production methods and content will remain at the same quality level as the past?
White shores, and beyond, a far green country under a swift sunrise....

User avatar
Kip
International Hillbilly
International Hillbilly
Posts: 3204
Joined: Sun Jan 12, 2014 10:18 pm
Location: Santiago, Dominican Republic
Contact:

Re: It's official

Post by Kip » Mon Oct 20, 2014 2:55 pm

You know what? I'm just going to say this instead of thinking it. I'll blame the tumor.

Frankly, I'm severely disappointed with the DE folks over the past few weeks. They, in general, were not simply denying that this was in the works (which is now known to have been the case for most of this year). Some of them were downright ugly toward the guy who reported the story a few weeks ago. Some vitriolic stuff came out of them. Bad form.

It's been my formal policy never to buy Swisher products for years. I do enjoy the occasional Undercrown and/or Dirty/Velvet Rat, but they have a long row to hoe for me to support them....especially after they (Swisher) formally went on record against CRA in their legislative efforts. I'm getting pissier as the moments pass....

Another blogger in a FB group I frequent made a statement referencing a comment from JD in the press release:

"we are selling our company, but not selling out" - usually (maybe not in this case) but if you have to make a statement to the fact that you aren't selling out, it usually means you are/did sell out. LOL"

I think I'm leaning toward agreeing.
White shores, and beyond, a far green country under a swift sunrise....

User avatar
Kip
International Hillbilly
International Hillbilly
Posts: 3204
Joined: Sun Jan 12, 2014 10:18 pm
Location: Santiago, Dominican Republic
Contact:

Re: It's official

Post by Kip » Mon Oct 20, 2014 3:29 pm

I have now received the press release. I'll post it below FWIW. I don't plan on posting it up on either site, as I normally restrict my posts to premium cigar stuff.


Draw your own conclusions.
JACKSONVILLE, Fla. (Oct. 20, 2014) -­‐-­‐ Swisher International Inc. and Drew Estate Tobacco Company disclosed today that they have entered into a definitive purchase agreement whereby Swisher International will acquire Drew Estate in its entirety. Drew Estate will continue to operate under its current management team as a subsidiary of Swisher. "We began under the Manhattan Bridge Overpass in Brooklyn, N.Y. with a laser focus on ‘The Rebirth of Cigars.’ Friends, retailers, and consumers connected with our passion and authenticity, supporting us at each stage of our growth. We are eternally grateful to all of those who have helped build Drew Estate, and look forward to advancing the Drew Estate legacy with a great partner,” stated Jonathan Drew, Co-­‐ founder of Drew Estate, from Hopkinsville, Kentucky. Drew Estate Co-­‐founder Marvin Samel added, "This is a dream come true. From the moment we met the team at Swisher and began speaking of a possible acquisition, it was clear that, as a family business, they understood the culture we have created and completely supported our desire to keep our family at Drew Estate intact. The team we have built in Miami and Nicaragua represents the heart and soul of ‘The Rebirth of Cigars’ and will continue to drive that vision into the future. In fact, we're just getting started.”

Michael Cellucci, President of Drew Estate, said, "We are excited to join the distinguished team at Swisher. After spending the past few months interacting with the Swisher team, we have come to understand their commitment to the cigar and OTP categories, as well as the premium cigar segment. After the transaction closes, we will continue to run our business as we have in the past, and will be able to leverage the resources of Swisher to continue our growth with a renewed focus on our commitment to quality products and people – two of the core principles of the Drew Estate belief system.” “As a global leader in the cigar and OTP categories, Swisher prides itself on developing, manufacturing, and distributing the most innovative and high quality tobacco products available. I see those same principles in Drew Estate,” said Peter Ghiloni, President and CEO of Swisher International. “The products produced by Drew Estate and its distribution partners Joya De Nicaragua, Royal Agio Cigars, and Tsuge pipes are top-­‐quality market leaders in their respective segments. The creativity, passion and innovation of Drew Estate employees and management are a perfect match for Swisher, and we look forward to welcoming them to our family.”

The transaction is expected to close during the 4th quarter of 2014. Terms of the transaction have not been disclosed.

About Drew Estate Inc.
Founded in New York City in 1996, Drew Estate has become one of the fastest growing tobacco companies in the world. Under its mantra “The Rebirth of Cigars”™, Drew Estate has led the “boutique cigar” movement by innovating new elements to the tobacco industry with unique tobaccos and blending styles that have attracted new and old cigar enthusiasts. In its Gran Fabrica Drew Estate, the Nicaraguan headquarters, Drew Estate produces a variety of brands such as ACID, Herrera Estelí, Kentucky Fired Cured, Liga Privada, MUWAT, Natural, Nica Rustica, Nirvana Cameroon Selection, Tabak Especial, UnderCrown, and Java by Drew Estate. Website: http://www.drewestate.com

About Swishe International
Swisher International, Inc. is a leading tobacco manufacturer whose cigars, filtered cigars and smokeless tobacco brands include the largest-­‐selling cigar brand in the world—Swisher Sweets, as well as King Edward, Optimo, BlackStone, Pom-­‐Pom, and Santa Fe cigars; Mail Pouch, Chattanooga Chew, Starr, Bowie and Lancaster chewing tobaccos, Silver Creek, Kayak and Redwood moist snuff, and Navy and Railroad Mills dry snuff; as well as Kismet, Casino Gold HRS, and Nirvana Cameroon Selection Premium Cigars thru its Royal Gold Premium Cigars division. Swisher products are exported to over 80 countries. Swisher International, Inc. is headquartered in Jacksonville, FL and also has manufacturing facilities in Wheeling, WV and Santiago, Dom. Rep. Website: http://www.swisher.com
White shores, and beyond, a far green country under a swift sunrise....

User avatar
Kip
International Hillbilly
International Hillbilly
Posts: 3204
Joined: Sun Jan 12, 2014 10:18 pm
Location: Santiago, Dominican Republic
Contact:

Re: It's official

Post by Kip » Mon Oct 20, 2014 3:40 pm

I realize I'm totally talking to myself right now, but I also truly wonder what this will mean with DE's CRA support? Swisher is officially on record as opposed to CRA and their supported legislation. They also have little interest in fending off FDA right now.
White shores, and beyond, a far green country under a swift sunrise....

User avatar
TomD
Tatuaje. Black.
Posts: 102
Joined: Fri Aug 08, 2014 6:51 pm

Re: It's official

Post by TomD » Mon Oct 20, 2014 3:54 pm

Kip wrote:I realize I'm totally talking to myself right now, but I also truly wonder what this will mean with DE's CRA support? Swisher is officially on record as opposed to CRA and their supported legislation. They also have little interest in fending off FDA right now.
Why is Swisher against CRA? I would think infused would be the first thing to get banned... And they just acquired an infused company (supposedly 60% or more of sales).


No idea, unless they think they're big enough to survive it and possibly be the last man standing? None the less, they made it official last year that they're not onboard with CRA and have opposed their efforts.

User avatar
Stewmuse
Horn Tootin' Torcedor
Posts: 2973
Joined: Thu Jul 17, 2014 11:21 pm
Location: Just a bit NW of Chicago
Contact:

Re: It's official

Post by Stewmuse » Mon Oct 20, 2014 5:27 pm

Yeah, I also don't get why Swisher would be against the potential ruling. They'd be one of the hardest hit, methinks.
StewMuse
Stay smokey, my friends.

User avatar
jledou
The 'Dou abides...
Posts: 402
Joined: Thu Jul 17, 2014 11:20 pm

Re: It's official

Post by jledou » Mon Oct 20, 2014 6:31 pm

I believe Swisher has always been against CRA because CRA didn't include their main line in the premium cigar definition.


Sent from my iPhone using Tapatalk

User avatar
Kip
International Hillbilly
International Hillbilly
Posts: 3204
Joined: Sun Jan 12, 2014 10:18 pm
Location: Santiago, Dominican Republic
Contact:

Re: It's official

Post by Kip » Mon Oct 20, 2014 7:43 pm

jledou wrote:I believe Swisher has always been against CRA because CRA didn't include their main line in the premium cigar definition.
I believe it goes back longer than that. The first I heard from it was at the first of 2013, and by then it was basically "official but not-yet-to-be-publicized." Then, it was pretty much public record and out there by late Spring/early summer 2013
White shores, and beyond, a far green country under a swift sunrise....

User avatar
Kip
International Hillbilly
International Hillbilly
Posts: 3204
Joined: Sun Jan 12, 2014 10:18 pm
Location: Santiago, Dominican Republic
Contact:

Re: It's official

Post by Kip » Mon Oct 20, 2014 10:01 pm

Level heads prevail, and some insight from the one guy who should know best....
Steve Saka's Facebook Page wrote: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 where 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 in 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!
White shores, and beyond, a far green country under a swift sunrise....

User avatar
IWinchester
I got the 4-0-6
Posts: 1513
Joined: Thu Jul 17, 2014 11:20 pm

Re: It's official

Post by IWinchester » Tue Oct 21, 2014 7:06 am

I was more than a little pissed when the news came in, but I read Saka's comments at Cigar Coop and was soothed...a little. DE is the new premium division of Swisher, ok. But I don't buy Swisher for the same reasons I don't buy General or Altadis, even though I fully enjoy some of their cigars. So, the Undercrowns in my humi may be the last I ever smoke, unless JD and DE/Swisher can change my mind.


Kid Corona

Post Reply