Tobacco Business

[ T O B A C C O B U S I N E S S . C O M ] TOBACCO BUSINESS [ 27 ] AS TIME CHANGES, SODOBUSINESSES. IT’S RARE TO FINDA BUSINESS that can say it has been around for over 100 years. It’s even rarer to find a tobacco business with that sort of history and track record. Sutliff Tobacco Company is one of the rare exceptions. Founded by H.W. Sutliff in San Francisco, California, in 1849, Sutliff’s company began as a tobacco retailer and is now celebrating 173 years of business. Pipe tobacco was in high demand at that time, which led Sutliff Tobacco Company to begin to manufacture its own blends to sell. By the time San Francisco’s historic earthquake rattled the city in 1906, Sutliff Tobacco Company was not just established; it was known for its high-quality premium pipe tobacco products. By the 1930s, the company and its products, including its wildly popular Mixture 79 blend, had expanded far beyond the confines of the city and were being distributed throughout the region. There was a challenge faced by Sutliff Tobacco Company as it continued to grow: The tobacco used in its products was being shipped in from the opposite coast of the country, which racked up costs and put the actual raw materials at risk during their long journey to San Francisco. Sutliff Tobacco Company made the move to Richmond, Virginia, in 1953 in an effort to put it closer to the tobacco it needed for its products and also to increase its overall profit potential. In 1969, Gordon Sutliff, who was the fourth generation to own the family’s company, sold the business to Consolidated Cigar Corporation. This decision proved to be a profitable one for Sutliff Tobacco Company, which experienced great growth during this chapter of the company’s history. In addition to making its own proprietary pipe tobacco blends, Sutliff began making private label blends for customers. It also adapted with the times and changes in its customers’ smoking preferences. It increased the production of its Cavendish blends after noting that American pipe smokers preferred heavily aromatic pipe tobaccos. Sutliff Tobacco Company also used acquisitions to help it become the go-to source of both bulk tobacco and value-priced blends. In 2000, Sutliff Tobacco Company became part of Altadis U.S.A. after Consolidated Cigar Corporation merged with Altadis. While the name of the company changed during this time to Altadis Pipe Tobacco Division, the passion for pipe tobacco and dedication to the premium tobacco category continue to drive the company that once was known as Sutliff. In 2013, Altadis made the decision to divest itself from pipe tobacco, and the entire division was acquired by Denmark-based Mac Baren Tobacco Company. As a family-owned tobacco company that was also built on a love for pipe tobacco, the Sutliff name was restored to the new acquisition as a way to restore its ties to America’s long fascination with and love of pipe tobacco. Knowing Sutliff’s history is key to understanding its business today. Pipe tobacco has been at the heart of Sutliff Tobacco Company since its early days but so has evolution. Today, Sutliff Tobacco Company is many things. It’s a pipe tobacco manufacturer, it’s an online retailer (as the owner of tobaccopipes.com ) , and it’s also a distributor of premium cigars. Much like its early founders, current CEO and president Jeremy McKenna is keeping an eye on trends that the company can capitalize on and opportunities for growth that will extend Sutliff Tobacco Company’s long reign as one of America’s most resilient and adaptable tobacco businesses. Finding His Way Jeremy McKenna’s career move into the tobacco industry was not planned. McKenna proudly served in the U.S. Army Reserve and active duty (with a deployment in 2005) as both enlisted and as an officer, retiring on December 31, 2020, as a Medical Service Corps officer in the rank of major. Before joining Sutliff in 2015, McKenna had spent a decade as the controller and human resources manager for an overhead crane manufacturer. From there, he worked as a plant controller for a publicly traded aluminum extrusion manufacturer. Later, he worked for a large corporation that made parts for freight railroad cars, a job that he says he was relatively happy at. Still, part of him wanted to make another career move that would have him working with a smaller business. Jeremy McKenna joined Sutliff Tobacco Company in 2015 as its chief financial officer. Since then, he has become the company's CEO and president.