In a year that challenged many in the premium cigar space, Oettinger Davidoff AG posted a strong performance in 2024. With CHF 541.7 million in sales and a modest 0.9% real growth over the previous year, the Swiss-based company continues to prove that measured strategy, brand clarity, and global execution is a winning formula in a challenging economy.
Despite inflationary pressures, currency volatility, and shifting consumer behavior, Davidoff remained steadfast in its long-term outlook. The company didn’t chase unsustainable gains through aggressive pricing or overproduction. Instead, it leaned into a multi-year strategy focused on innovation, market discipline, and capacity planning—while marking its 150th anniversary with a renewed emphasis on retail, culture, and consumer experience.
“The year 2024 was another strong year in the 150-year history of our family-owned company,” noted CEO Beat Hauenstein in the annual report. “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. Our journey has been driven by a clear vision, bold decisions, while demonstrating resilience, pioneering spirit, and leadership in innovation. As we celebrate our 150-year jubilee, we remain committed to our values – passion, innovation and integrity – and to delivering excellence in all we do. I would like to express my heartfelt thanks to our employees, business partners, customers and aficionados around the globe for their trust and loyalty and for being part of our story.”
A Portfolio Built for Momentum
While the flagship Davidoff brand remained largely stable, there was notable movement within the portfolio. The Zino brand emerged as the growth engine, reporting an impressive 28.1% year-over-year increase. Davidoff’s accessories business also proved to be a bright spot, with sales up 15%, driven by humidors, cutters, and lighters—a reflection of strong brand loyalty and effective upselling at the retail level.
Markets such as Germany, through its Wolsdorff subsidiary, and key travel-retail channels in Asia, delivered particularly strong results. Renovated retail spaces in Basel and Monaco, along with the reopening of the Madison Avenue flagship in New York, reflect Davidoff’s ongoing commitment to luxury retail environments. New Davidoff stores also debuted in Sydney, while branded presence expanded in duty-free zones in Madrid, Lima, and Jeddah.
Strategic Control, Not Reactionary Growth
Davidoff reported a 21% reduction in handmade cigar production, down to 38.5 million units. Though this could be interpreted as a weakening market or drop in demand, the reduction was part of a strategic plan to adjust inventory in response to EU traceability requirements and optimize product flow. Despite this reduction in cigar production, Davidoff started a major expansion of its Dominican Republic facility and began upgrading its operations in Honduras—positioning itself to meet future demand without sacrificing quality or agility.
Davidoff’s ability to manage its supply chain—particularly in the face of U.S. tariffs on Nicaraguan tobacco—helped contain cost increases, passing only a modest 5% price adjustment to consumers. Rather than chasing revenue through pricing, Davidoff doubled down on value creation through limited releases and carefully curated product experiences.
The Path Ahead
Now two years into its five-year strategic roadmap, known internally as Aspire727, Davidoff appears focused and aligned. The plan, launched in 2023, emphasizes brand building, cultural transformation, retail expansion, and operational excellence. The 150th anniversary served as both a milestone and a motivator to sharpen these priorities.
Looking ahead, growth in emerging markets like Vietnam and Australia will continue to balance the company’s more mature regions. The emphasis on retail experience, brand storytelling, and consumer intimacy will likely shape how the company navigates the next phase of growth.
Key Takeaways:
- Modest +0.9% growth in a sluggish economy demonstrates brand and operational strength.
- Zino’s +28%, and accessories +15% show the value of diversified portfolios
- Production dips were planned; capacity expansions ensure future readiness.
- Measured pricing and innovation uphold brand equity amid luxury market pressure.
- Expansions in Asia, travel‑retail, and flagship renovations affirm long‑term growth strategy.
To read Davidoff’s full report on its 2024 performance, click here.