‘Davidoff of Geneva’ aims to expand its presence in Russia

By Doug Newhouse |


The Global cigar manufacturer Oettinger Davidoff is rebuilding its business on new foundations in the important Russian market under the name ‘Davidoff of Geneva’, with the establishment of a new subsidiary based in Moscow.

The company has been in the process of finalising the registration in last few days and will be head up by Bora Buladi, Regional Manager for Russia, the Ukraine, the CIS states and the Baltic region.

In a statement, the company says that it has been present in Russia for more than a decade and is well known for its ‘superior quality brand’ selling under the slogan ‘dynamic, modern, global’, but Oettinger Davidoff Group President and CEO Hans-Kristian Hoejsgaard says its tie up with the Fortuna Cigar company has now delivered a strong Moscow-based distribution base on which to build further.

“Since our collaboration began in 2012, we have leveraged our global platform to develop the Russian market, which includes a realignment of our pricing”, says Hoejsgaard. “Russia has a challenging potential and the company’s goal is to expand the Davidoff brand in the short-term. We estimate that there are about 100,000 Russian cigar smokers and confidently predict that increasing incomes, a higher standard of living and the resulting booming luxury sector will yield a further 150,000 aficionados. ”

 

 

Oettinger Davidoff Group President and CEO Hans-Kristian Hoejsgaard.

 

The company says it will now reposition the Davidoff brand with additional shops and lounges while providing wider support, as well as increase its presence in the existing 12 cigar lounges and 60 cigar shops in Moscow, St. Petersburg and other cities. Davidoff also plans to open new Flagship Stores in Moscow, St. Petersburg, Ekaterinburg and Krasnodar.

Significantly, the company also plans to intensify its support to retailers with exclusive training sessions and tastings. “This will increase customer loyalty at the important points of sale and put our distribution on a broader basis, primarily in key cities, where at present, the influx of the population and evidence of more disposable incomes are greatly boosting the market for cigars”, emphasizes Albert Manzone, Senior Vice President Europe of Oettinger Davidoff Group. “This is in line with the general trend, which has made Russia such an important market for luxury products.”

[Top image: The city of Moscow by night – photo credit: Aleks G.].

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