Davidoff’s expansion in Asia is continuing.
Today, the company announced a new joint venture with Sparkle Roll Group Limited, a publicly listed Hong Kong-based company, that distributes consumer goods in China. The new joint venture will be responsible for distributing Davidoff cigars and accessories in China. In January, the two companies announced they had reached an agreement with the intention of creating a joint venture.
“The signing of this Joint Venture agreement heralds a new era in our relationship with Sparkle Roll and in our commitment to building the Davidoff business in China,” said Hans-Kristian Hoejsgaard, ceo of Oettinger Davidoff AG, in a press release. “This market represents the single largest business opportunity for Davidoff in our time and I am convinced that with this new Joint Venture we will be able to exploit that opportunity to its fullest.”
Sparkle Roll Group Limited will own 50.1, valued at $1.503 million, percent of the joint venture while Oettinger Davidoff AG will own the remaining 49.9 percent, valued at $1.497 million.
“The Group is committed to put more efforts to develop and expand the non-auto business which are outside of the Group’s traditional principal business in automobile dealership to diversify its product portfolio, and to expand the Group’s top-tier branded consumer goods market in the PRC,” said Tong Kai Lap, chairman of Sparkle Roll, in a different press release. “Since the individual customers of the Group’s existing principal business in top-tier automobiles are predominantly people with high spending power, the Businesses may create synergies with the Group’s existing business segments as the end products in the Businesses are also perceived to have the same target customer group and market positioning of premium branded cigars products, so as to bring profitable returns to the shareholders in the future.”
Sparkle Roll has large luxury automotive business including the ownership of Bentley, Lamborghini and Rolls Royce dealerships throughout China. It also does business in Hong Kong, Macau and Malaysia and has agreements with the luxury watch brand Richard Mille, French wine houses and other products.
Earlier this year, Davidoff acquired a minority stake in Bluebell Cigars (Asia) Ltd. to help foster its growth in the non-Chinese Asian markets.