Oettinger Davidoff +35% more premium cigars
Oettinger Davidoff increases production of handmade premium cigars by +35% in 2021.
Brief overview
- Increase in total sales 2021 by +8% to CHF 456.8 million
- Strong growth for the core brands Davidoff and Camacho thanks to innovative
- Product launches and intensified digital customer engagement
- Successful relaunch of the Zino brand
- Sales growth of +28.9% in the cigars private label segment
- Expansion of the leading international market position in the handmade
- Premium cigar business
Media Information
Basel, Switzerland, June 23, 2022 - Oettinger Davidoff can once again look back on a challenging financial year. Nevertheless, the company managed to report a successful 2021 financial year despite difficult operating conditions. The globally active family business increased sales by +8% year-on-year to CHF 456.8 million and proved that it is agile, fast and successful in responding to challenges and new market conditions. In order to meet the high demand in the markets, the company increased its production in the Dominican Republic and Honduras and produced a total of 34.1 million handmade premium cigars (+35% compared to the previous year). Accordingly, Oettinger Davidoff was able to significantly expand its global market share and further strengthen its leading position in the handmade premium cigar business.
The sales trend in the private label cigar segment was also particularly positive. Here, the Basel-based family business recorded impressive growth of +28.9% compared to the previous year. This increase was positively influenced in particular by the trend towards high-quality brands in the higher price segment. After a slight decline in the previous year, the premium brand Davidoff in particular recorded an impressive increase of +43.9% compared to 2020. However, Camacho (+11.3%) and AVO (+5%) also recorded significant growth.
Furthermore, the successful relaunch of the Zino brand attracted new customers and made a valuable contribution to the successful result. The sales performance of third-party brands was also positive, particularly the general agencies, which represent another important pillar of the company's performance. Oettinger Davidoff also benefited from impressive operational leverage, which was achieved through several successfully implemented projects as part of the "Way Forward" transformation program launched in 2018.
Together with the growth, the Group's profitability improved massively. "The past financial year confirmed that Oettinger Davidoff is resilient and knows how to operate successfully even in a challenging year and in a demanding market environment," commented CEO Beat Hauenstein on the course of business. "Despite the many
challenges posed by the pandemic, particularly in the value chain, we were able to supply our customers without interruption throughout the year, introduce innovative products and meet our customers' wishes thanks to well-timed product launches and increased digital customer engagement."
The proven "crop-to-shop" philosophy, which allows the company to agilely manage the value chain and its processes from the creation of the seeds to the delivery of the handmade premium cigars to the stores, as well as the innovations and product launches for the core brands Davidoff, Camacho and AVO, contributed to the good result.
"Crop to Shop PDF Brochure": See below under Resources on the topic.
This positive development, particularly at Davidoff (+43.9%), was driven by the launch of the Davidoff Dominicana and Davidoff Limited Editions as well as increased demand for handmade premium cigars. The extremely successful relaunch of the Zino brand with a Nicaraguan flavor profile also attracted particular attention and gave the company access to a new customer base.
While demand in the European cigar market continued to decline, demand for premium cigars remained stable. The cigar market in Asia was and continues to be severely disadvantaged by the collapse of the Global Travel Retail sector, while the market in the USA performed well in 2021.
ESG roadmap
Last year, Oettinger Davidoff drew up an overview of its ESG situation and evaluated its "Crop-to-Shop" activities in line with the 17 UN Sustainable Development Goals (SDGs). Within this framework, six SDGs were defined in which Oettinger Davidoff can make special contributions. In addition, a roadmap was drawn up with the aim of continuously developing the company's position in the areas of environment, social affairs and corporate governance.
Innovation in retail
Oettinger Davidoff celebrates its selective distribution system for the Davidoff brand
In 2022, the Basel-based family business is celebrating a special anniversary. In 1972, two years after Oettinger Davidoff acquired Zino Davidoff's business, the company, which at the time only had the Davidoff flagship store in Geneva, decided to offer Davidoff products via a global and selective distribution system.
Davidoff cigars were only to be sold through the company's own stores and through selected, highly qualified tobacco retailers, known as Davidoff distributors, in order to guarantee a high-quality and unique brand and shopping experience. Appearance, reputation and expertise were key values in the selection of partners. This selective distribution system formed the cornerstone of the high-end depot network with which the company ensures the quality and continuity of its products and associated services in the long term.
Today, the company has over 700 selected Davidoff distribution partners and 65 Davidoff flagship stores/satellites worldwide. Ensuring these unique brand and shopping experiences for the Davidoff brand globally will continue to play a central role in the company's commercial strategy in the future.
"Way Forward" transformation roadmap and outlook for 2022
The five-year "Way Forward" transformation programme launched in 2018, which aims to create an effective and efficient organization in line with market needs, was successfully continued last year. "Thanks to our more than 3,300 committed and passionate employees, we were once again able to successfully implement a large number of complex and challenging projects in the areas of brand, sales, efficiency and leadership in 2021 and sustainably increase the company's operating business and profitability," comments CEO Beat Hauenstein.
"We are now embarking on the final stage of our transformation roadmap and I am delighted that we have already achieved our ambitious EBIT and cash flow targets. These solid and well-established foundations form a good basis for tackling the next five-year plan in the coming year and thus securing and further expanding our leading position in the handmade premium cigar business and wholesale in the long term."
About the Oettinger Davidoff
With sales of around 456.8 million Swiss francs and 3,300 employees around the world, the Oettinger Davidoff Group can trace its roots back to 1875 and is still an independent family business today. It is dedicated to the manufacture, marketing, distribution and retail sale of premium cigars, tobacco products and accessories. The
The premium cigar business comprises the brands Davidoff, AVO, Camacho, Cusano, Griffin's, Private Stock, Zino and Zino Platinum. The Oettinger Davidoff Group also distributes numerous brands in several countries as a general agency, including Haribo in Switzerland. The company is strongly rooted in the "Crop-to-Shop" philosophy and thus follows the approach of vertical integration, from the tobacco fields in the Dominican Republic and Honduras to the worldwide network of 65 Davidoff flagship stores/satellites, as well as over 700 strong authorized dealers in 139 countries.
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