Davidoff Reports Small Sales Gain Despite Large Drop In Cigar Production
It was a mixed year for Oettinger Davidoff, the parent company for the Davidoff, Zino, Avo and Camacho cigar brands, among others. The Swiss organization posted sales of 541.7 million Swiss francs ($677.6 million) for fiscal 2024, up 0.9 percent over the previous year, but it made 38.5 million cigars, 21 percent fewer than the year before. The company said it achieved “solid results despite global economic challenges and a volatile market environment.”
Davidoff makes its cigars in the Dominican Republic and Honduras. In February, it inaugurated an expansion of its Dominican cigar factory, which the company said allows for a doubling of that site’s production capacity. Davidoff has also begun extending its production site in Honduras, another investment in the future.
The strongest brand in the portfolio was Zino, which had a sales gain of just more than 28 percent. Davidoff also spoke about “stellar sales” in its branded accessories business, which was up 15 percent compared to the previous year.
Family-owned Oettinger Davidoff is headquartered in Basel, Switzerland, and turns 150 years old this year. It was founded in 1875 when Max Oettinger opened a cigar store called Havana House in Basel. In 1961, the company began expanding globally. A transformation happened when then-owner Ernst Schneider met tobacco retailer Zino Davidoff, who owned a cigar shop in Geneva and had created a cigar brand bearing his name. Schneider bought the store and brand in 1970.
The first Davidoffs were rolled in Cuba, and in the early 1990s, the brand was moved to the Dominican Republic, where its production has remained ever since. The company has expanded via acquisition, and is a leading producer of cigars and accessories. It has more than 4,000 employees, its products are sold in more than 130 countries and it has a network of 65 Davidoff flagship stores and more than 700 appointed merchants.
“The year 2024 was another strong year in the 150-year history of our family-owned company,” said Beat Hauenstein, Davidoff’s chief executive officer. “The solid 2024 results prove that our investments in our brands, retail and shopping experiences have paid off and that we are well set up to successfully continue writing the next chapter of our longstanding history.”
