Oettinger Davidoff reports +8.2% sales increase in fiscal 2016

Oettinger Davidoff CEO Hans-Kristian Hoejsgaard: “We expect a challenging and difficult 2017″

Premium cigar company Oettinger Davidoff has reported a +8.2% year-on-year increase in total sales in fiscal year 2016, to CHF595 million (US$610 million).

Its core brand Davidoff saw strong +20% growth.

The company noted an “increasingly challenging environment” but said it was able to further expand its global market position.

In fiscal year 2016, Oettinger Davidoff divested its Contadis wholesale and logistics business and the sale reduced the company’s turnover by almost half.

Oettinger Davidoff completed its new Camacho factory in Honduras, and also acquired a majority stake in Bluebell Cigars Asia and a minority stake in China’s Sparkle Roll Cigars Co.

“2016 was a challenging year for the cigar industry as new and costly anti-tobacco legislation was introduced in both the EU and the USA,” said CEO Hans-Kristian Hoejsgaard. “While we are extremely pleased with the continued double-digit growth of Davidoff and our global market share gains, we did not achieve all our goals for 2016.”

Hoejsgaard said he expected different growth patterns for the company’s prime markets of Europe, the USA and Asia. “We expect a challenging and difficult 2017 as new restrictions in our core markets the USA and Europe take hold and retailers hold back and await clarity,” he said. “We are confident that we can continue to gain market share through our strong innovation and global retail footprint.”

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