In an Instagram post this morning, Robert Holt, co-founder of Southern Draw Cigars, revealed that the Holt family is contemplating the sale of their majority interest in the company. He expressed a preference for retaining a minority stake, mulling over a variety of outcomes in terms of the Holts’ involvement in blending, producing, branding, and managing the company.
Alternatively, they are open to exploring mergers with like-minded brands to enhance joint sales, distribution, and support. While they have considered strategic acquisitions, timing and mutual goals have not aligned in past discussions.
I believe, much soul searching and family input – that SDC family deserves a better leader that has the financial wherewithal to grow to meet demands and vet opportunities presented, resulting in solid returns[.] —Robert Holt
The founders believe that SDC requires a leader with the financial resources to drive growth and seize opportunities, ensuring solid returns. As has seemed evident since the COVID era, this consideration was described as being influenced by serious health concerns and anticipated related costs, which have added significant pressure on their ability to manage the business effectively.
Robert recognized the need for additional support and personnel to meet high demand and prevent back orders and missed opportunities. The Holts are seeking a strategic solution or partnership that aligns with the SDC family’s values and goals. They have begun discussions with interested and capable parties to explore the best path forward for the company.
The full Instagram post is included below:
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