The Cigar Boom is in Full Effect: Oettinger Davidoff AG Reports Record Year

The Cigar Boom is in Full Effect: Oettinger Davidoff AG Reports Record Year
Date: June 2023
Author: Usman Dawood

Oettinger Davidoff AG, a Swiss company renowned for its premium cigars, has recently announced that 2022 was a groundbreaking year for its cigar business. The company experienced remarkable growth, with revenues reaching CHF 494.1 million ($549.43 million), marking an impressive 8.2 percent increase compared to the previous year.

One of the key indicators of this success was the surge in production, with Oettinger Davidoff AG manufacturing a staggering 43.1 million cigars in 2022. This figure represents a remarkable 26.3 percent increase over the 34.1 million cigars produced in 2021. Such remarkable growth has led the company to devise plans for expanding its Dominican manufacturing facilities.

Aside from its renowned Davidoff brand, Oettinger Davidoff AG also offers a diverse range of cigars under labels such as AVO, Camacho, Zino, Baccarat, Cusano, and more. The company’s portfolio also includes a retail arm, encompassing entities like the Davidoff of Geneva since 1911 stores, Wolsdorff Tobacco GmbH with over 170 stores in Germany, and A. Dürr & Co. AG in Switzerland, which operates 28 stores.

According to Davidoff, its own cigar brands witnessed a remarkable revenue increase of 15 percent, spearheaded by the Davidoff brand’s growth of 28 percent and an astounding 84 percent surge for the Zino brand.

“2022 was a challenging, yet memorable year. 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,” remarked Beat Hauenstein, CEO of Oettinger Davidoff AG, in a press release. “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 addition to its exceptional financial performance, Oettinger Davidoff AG provided updates on various corporate initiatives, highlighting their commitment to social responsibility and sustainability. The company worked closely with suppliers to ensure compliance with the forthcoming “Swiss Ordinance on Due Diligence and Transparency in relation to Child Labor,” aiming to eradicate child labor from its supply chain. It also implemented a digital whistleblower platform, reinforcing its dedication to ethical business practices.

Concerning environmental sustainability, Oettinger Davidoff AG made significant strides. The installation of drip-irrigation systems at its farms in the Dominican Republic resulted in an impressive 82 percent reduction in water usage, showcasing the company’s commitment to responsible water management. Moreover, the establishment of the Centro de Enseñanza Tabadom, a learning center offering complimentary English classes to employees, exemplifies their dedication to personal and professional growth.

Another notable accomplishment was the completion of Davidoff’s “Way Forward” program, a five-year efficiency initiative, ahead of schedule. This program aimed to optimize various aspects of the company’s operations, ultimately enhancing productivity and profitability.

Looking towards the future, Oettinger Davidoff AG unveiled the Aspire727 program, a strategic initiative designed to further drive revenue and profit growth. With this ambitious program, the company aims to capitalize on its strong foundation and leverage new opportunities in the cigar market.

As the cigar industry experiences a notable boom, Oettinger Davidoff AG stands at the forefront of this remarkable growth. With record-breaking revenues, expanded production capabilities, and a commitment to social and environmental responsibility, the company continues to solidify its position as a leader in the premium cigar market. The success of Oettinger Davidoff AG in 2022 is a testament to the resilience, innovation, and dedication of the brand, leaving cigar enthusiasts eagerly awaiting what the future holds for this iconic company.

Leave a Reply