The Seneca-Cayuga Tobacco Company:

A Look into the Hopeful Future of the Seneca-Cayuga Tobacco Company

The Good News

Since 2018, SCTC has been able to make great strides in paying down debt and increasing operational effectiveness. Most importantly, for the first time in its 23year history, the Seneca-Cayuga Tobacco Company has made a distribution to the tribe. Going forward, management intends to make monthly payments of $10,000 to the Tribe. This figure will only increase the further SCTC gets out of debt.

Direct payments are not the only way SCTC helps the tribe. Payroll is another way they are able to put money in the hands of Members. Right now, the company employs eleven members of the SCN, two members of other tribes, and six non-natives. The total payroll and benefits paid for the entire operation is around $67,000 per month. This is money that goes into the hands of employees and supports the local economy.

Seneca-Cayuga Tobacco Company Economic Impact

The Tobacco Company provides economic benefit by employing Tribal Members, supporting the economy in Grove, and making a monthly disbursement to the Seneca-Cayuga Nation.

Employees: 19

Yearly Payroll and Benefits: $800,000

Total Yearly Sales: $10,000,000

Management has also recently made improvements to the facility. Six months ago they were able to have the roof redone and fix many leaks that were evident. They have also updated the A/C unit and have plans to repaint the building later this year.

In addition to the factory, SCTC’s two smoke shops are also doing well. There is extra money in the bank and even plans to expand the casino shop from a small drive-thru building, to one you can walk in.

The Future Cannabis

After a brief stint with hemp, some tribal Members have asked whether or not SCTC plans to move into the cannabis sector after its legalization in Oklahoma. The short answer is no.

Retrofitting tobacco machinery to work with cannabis is extremely difficult. At this time, SCTC has technical barriers that are far too expensive to address and thus, makes working with cannabis unrealistic. In addition, there are legal hurdles associated with these types of conversions due to the required FDA approvals for changes to the factory and that is notwithstanding the conflict between state and federal laws when it comes to the legality of cannabis. If the Tribe were to move into cannabis, it would have to be a completely separate business, and this is not planned at this time.

Where We Are Heading

The SCTC team is focused on continuous improvement. All known debts are scheduled to be paid off by the year 2030—an incredible feat when you consider their sizable amounts.

A critical path towards growth is negotiating compacts and being able to enter new markets. Our attorney is actively working on compact negotiations in several states and successful negotiation of these compacts will allow SCTC to further expand its operational footprint.

Mark Morrison and the other team members care deeply about the Seneca-Cayuga Tobacco Company and the sustainable vitality of the Seneca-Cayuga Nation. There is

Seneca-Cayuga Tobacco Company By the Numbers

319,440 Cigarettes Produced Per Year: 129,721,000

Employees: 19 an amazing story being written at SCTC, but it is one that takes time to develop.

The future is ours to write. With the team at SCTC working diligently every day, we can know the business is in good hands. We can be excited about the great things to come.