Oettinger Davidoff Reports Record Year, Strengthens Leadership in Handmade Premium Cigar Market
Key Highlights:
• 2023 total sales turnover increased by 10.5% to CHF 546.2 million.
• Handmade cigar production grew by 13.3%, reaching 48.8 million cigars.
• Core brand Davidoff saw a 32.3% sales increase.
• Zino brand reported a 32.2% growth, marking strong performance in its third year post-relaunch.
• Turnover of the company’s own-brand business rose by 18.2%.
• Market share increased across most markets.
• Expansion of the Dominican Republic production site, to be officially inaugurated in February 2025.
Basel, Switzerland, 20 June 2024 – Oettinger Davidoff has announced another record-breaking year in its long history. Despite facing a challenging and volatile global economic environment, the Basel-based family-owned company surpassed its 2022 record, achieving its best year of the millennium. The company reported a total sales turnover of CHF 546.2 million, a 10.5% increase over the previous year.
Driven by strong demand for its own brand portfolio, especially the core brand Davidoff, Oettinger Davidoff increased its total cigar production in the Dominican Republic and Honduras by 13.3%, resulting in 48.8 million handmade cigars produced in 2023. To accommodate this rising demand, the company has begun expanding its manufacturing facilities in the Dominican Republic. This expansion includes a new Blending Centre, a new Short Filler Centre, and a new cafeteria/lounge for employees.
The company’s own-brand business saw encouraging turnover developments, with a notable 18.2% increase. The Davidoff and Zino brands were particularly successful, with sales increasing by over 32% compared to 2022. The Davidoff brand’s exceptional performance (+32.3%) was fuelled by the “The Difference” campaign, which celebrated the Davidoff White Band Collection and the “Cigar History Re-Rolled” concept, reintroducing some of the company’s iconic cigars as Limited Editions. Meanwhile, the Zino brand (+32.2%) has established itself as the company’s second global brand following its 2021 relaunch, bolstered by expanded distribution, strong trade and consumer activation, and the introduction of the Zino Half Corona Pre-Cut cigar.
CEO Beat Hauenstein remarked on the financial results, highlighting the company’s achievement of surpassing all financial targets, enhancing EBIT, and improving cash flow despite global economic challenges. He emphasized that the continued investment in innovation, marketing, and trade, particularly for Davidoff and Zino, has paid off. Hauenstein also noted the company’s efforts to comply with the European TPDII Track & Trace requirements, successfully delivering to all European customers under the new regulations.
Innovation remains a cornerstone of Oettinger Davidoff’s strategy. The company plans to continue delighting customers with new product launches and exquisite accessories in 2024. Trade innovation is also crucial, aiming to enhance the shopping and brand experiences. The company expanded its footprint in Asia with a new “Davidoff of Geneva since 1911” flagship store at Hong Kong’s Harbour City Mall and recently reopened the renovated Davidoff flagship store in Basel, Switzerland.
ESG Commitment: In 2023, Oettinger Davidoff furthered its ESG initiatives, focusing on children’s rights and education, and eliminating child labour in its supply chain. The company rolled out its Supplier Code of Conduct and conducted risk assessments with suppliers in high-risk countries. It also performed a Human Rights Gap Analysis and Risk Assessment, and plans to publish its first Human Rights Policy and Report in June. Additionally, the company opened a Learning Centre for employees’ children at its Dominican Republic site, providing complimentary English classes.
Aspire727 Strategic Growth Program: In May 2023, Oettinger Davidoff launched its five-year strategic growth program, Aspire727. This initiative aims to sustainably grow sales and profits by 2027 and reinforce the company’s position as the leading manufacturer of premium handmade cigars. CEO Beat Hauenstein stated that the focus will be on executing strategies across four key areas: Brand, Commercial, Execution, Leadership, and Culture. As the company approaches its 150th anniversary in 2025, it remains committed to delivering innovative products and superior brand experiences to its customers.
