Switzerland
Oettinger Davidoff AG, the worldwide leading manufacturer of premium cigars, further consolidated its strong global market position in 2014. With market performance varying from region to region, the company secured above-average growth and thus increased its market shares.
Despite the continued focus on core business, which prompted the company to sell its cigarette machine business in 2013, Oettinger Davidoff AG increased revenue by 1.7% in 2014 to CHF 1.23 billion (US$1.29 billion). This positive performance was driven by the Davidoff brand’s strong growth, with global revenue increasing by 12%, as well as impressive growth in the US. Earnings developed above average, and cigar production went up once again to 44 million cigars, which is 13.1% higher than in the prior year and a new production record. This improved performance is also reflected by a 4.9% increase in staff numbers, mainly due to new hires in the Dominican Republic and Honduras. The company created more than 170 new jobs in these producer countries. Despite the negative effect of freeing up the Swiss franc exchange rate, and despite the uncertain economic outlook in Europe, Oettinger Davidoff is cautiously optimistic about 2015, which is its 140th anniversary year.
The company’s consistent focus on its core business of producing and selling its own brands and those of other premium producers, as well as developing its own innovative new products and relaunching selected existing ones, is paying off. c.e.o. Hans-Kristian Hoejsgaard commented as follows on last year’s performance: “We are very pleased with the results we’ve achieved and the high degree of consistency in Oettinger Davidoff’s revenue, earnings and sales volumes.” This performance is still based mainly on the core Davidoff brand, but some of the company’s other internationally distributed brands have also posted pleasingly strong growth rates.
Last year’s European launch of the Camacho cigar, which is already very successful in the USA, was a resounding success. Camacho is now Oettinger Davidoff’s second most important brand. Growing demand for this cigar and other Honduran brand cigars in the mid-premium price segment has prompted the company to start planning a new, modern production building in Danlí (Honduras). It will replace an out-of-date plant and ensure that production, which has increased by 60% over the last three years, can continue to keep pace with rising demand.