Travel retail helps Oettinger Davidoff achieve record financial results

CEO Beat Hauenstein: “2022 was a challenging, yet memorable year.”

Oettinger Davidoff has reported a record financial year for 2022, with annual turnover reaching CHF494.1m (US$551.2m) – a rise of +8.2% over the previous year. The increase was driven by the double-digit (+28%) growth of Davidoff Cigars; a strong performance in the travel retail channel; and successful product launches supported by enhanced digital consumer engagement.

The company increased its cigar production in the Dominican Republic and Honduras by +26.3% in comparison with 2021, producing 43.1 million sticks. In response to increased consumer demand, Oettinger Davidoff has confirmed plans to further extend its manufacturing facilities in the Dominican Republic.

Over-delivering on all financial targets

This year, the Davidoff brand is aiming to drive further growth with its “The Difference” campaign, which celebrates the Davidoff White Band Collection. The company has also launched the “Cigar History Re-Rolled” initiative, which brings back some of its renowned cigars of the past as limited editions.

The company’s Zino brand recorded +84% year-on-year growth in 2022, bolstered by a successful relaunch in 2021, two new line extensions, a strong distribution build-up and trade marketing support.

In the own-brand cigar segment, the Basel-based family firm achieved a strong +15% growth rate, while the development of its third-party business continued to perform well, especially regarding the company’s sole-agency products.

In response to increased consumer demand, Oettinger Davidoff has confirmed plans to extend its manufacturing facilities in the Dominican Republic.

“2022 was a challenging, yet memorable year,” commented CEO Beat Hauenstein. “It started with very encouraging signs of post-pandemic recovery which were unfortunately tempered by a rise in inflation rates and supply chain challenges worsened by unspeakable war in Ukraine.

“Nevertheless, from an economic standpoint, the year 2022 was a record year for Oettinger Davidoff in its 148-year history. We were able to over-deliver against all financial targets set for 2022 and further enhance our EBIT as well as our cash situation.

“Key contributors for the extraordinary results were continued innovations in marketing and trade for our key brands, namely Davidoff and Zino, while the well-established management of our “Crop to Shop” philosophy allowed us to react swiftly and in an agile manner to ensure the compliant availability of our products in-time, in-full and in highest quality in over 130 markets.”

In 2022, Oettinger Davidoff completed its five-year “Way Forward” Transformation Programme, which incorporated 50 projects designed to ensure the long-term sustainability of the company and its brands. The company has now embarked on its next five-year strategic growth programme, called Aspire727.

“With Aspire727 we aim at sustainably growing our sales and profits by the year 2027,” Hauenstein explained. “Oettinger Davidoff stands on very solid ground and we will continue making a difference in our aficionados’ lives and underpin our aspiration in remaining the innovation leader in the global handmade premium cigar business.”

READ MORE: Davidoff streamlines TR portfolio by 50%; talks category management


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