Oettinger Davidoff AG Says 2022 Was a Record Year, Plans Dominican Expansion

Oettinger Davidoff AG announced that 2022 was a record-setting year for its premium cigar business. The Swiss company says revenues increased to CHF 494.1 million ($549.43 million), an 8.2 percent increase compared to 2021.

The company’s production reached 43.1 million cigars, a 26.3 percent increase over the 34.1 million cigars it said it produced in 2021. This has led Davidoff to plan an expansion of its Dominican manufacturing facilities.

Beyond the eponymous Davidoff brand, the company also sells cigars under its AVO, Camacho, Zino, Baccarat, Cusano and other labels. Oettinger Davidoff AG also includes retail businesses isuch as the Davidoff of Geneva since 1911 stores; Wolsdorff Tobacco GmbH, a chain of over 170 stores in Germany; and A. Dürr & Co. AG in Switzerland, which includes 28 stores.

Davidoff says that it saw revenues for its own cigar brands increase by 15 percent, led by 28 percent growth for the Davidoff brand and 84 percent growth for the Zino brand.

“2022 was a challenging, yet memorable year. It started with very encouraging signs of post-pandemic recovery which were unfortunately tempered by a rise in inflation rates and supply chain challenges worsened by unspeakable war in Ukraine,” said Beat Hauenstein, ceo of Oettinger Davidoff AG, in a press release. “Nevertheless, from an economic standpoint, the year 2022 was a record year for Oettinger Davidoff in its 148-year history. We were able to over-deliver against all financial targets set for 2022 and further enhance our EBIT as well as our cash situation. Key contributors for the extraordinary results were continued innovations in marketing and trade for our key brands, namely Davidoff and Zino, while the well-established management of our ‘Crop to Shop’ philosophy allowed us to react swiftly and in an agile manner to ensure the compliant availability of our products in-time, in-full and in highest quality in over 130 markets.”

The company provided updates about various different corporate initiatives, including:

• In preparation for the enactment of “Swiss Ordinance on Due Diligence and Transparency in relation to Child Labor,” Davidoff says it worked with suppliers to ensure that suppliers are not using child labor.
• Oettinger Davidoff AG added a digital whistleblower platform.
• It installed drip-irrigation systems at its farms in the Dominican Republic, reducing water use by 82 percent.
• It created the Centro de Enseñanza Tabadom, a learning center where employees can attend complimentary English classes.
• Davidoff’s “Way Forward” program, a five-year initiative focused on efficiency, was completed ahead of schedule.
• A new program, Aspire727, has been announced to focus on growing the company’s revenues and profits.