Oettinger Davidoff Stays the Course as Luxury Stumbles
Despite a weakening consumer mood, the Swiss cigar maker posted the second-best result in its history in 2024. finews.com spoke with CEO Beat Hauenstein about pricing pressure, innovation, and fresh opportunities in Asia.
«2024 was a challenging year,» Beat Hauenstein said at the beginning of his annual media briefing. The CEO of Oettinger Davidoff – the Basel-based global leader in hand-rolled premium cigars currently celebrating its 150th anniversary – nevertheless appeared satisfied overall.
Indeed, the family-owned company’s figures are surprisingly solid. Revenue came in at 541.7 million Swiss francs ($677.9 million), down only slightly from the record 546.2 million francs posted in 2023. On a currency-adjusted basis, the result even showed a slight increase.
«Almost stable»
The company’s own-brand business declined by just around three percent. Given the sharp drop in demand across other luxury sectors such as watches and fashion, that’s nearly a success story. Hauenstein described the result as «almost stable».
That’s especially impressive considering how other luxury brands are struggling: French luxury giant Kering saw revenue fall 12 percent, with Gucci alone plunging by around 23 percent in 2024.
Beat Hauenstein, CEO of Oettinger Davidoff. (Image: Courtesy)
Quality and Innovation
Swiss watchmaker Swatch Group was also hit hard by weakening demand in China, posting a 14.6 percent drop in sales and a near 75 percent plunge in net profit.
So why is Oettinger Davidoff holding up better? In an interview with finews.asia, Hauenstein attributes it to reliability.
«We deliver quality. I know it sounds like a cliché, but it’s true. We continue to offer a high level of innovation and maintain a stable relationship with the trade,» he said.
Accessories on the Rise
The company also continues to hold back on pricing.
«Other producers in the premium hand-rolled cigar segment have pushed through almost excessive price increases. We don’t do that. We introduce higher prices through innovation – in the form of limited editions – but not in the standard range.»
That approach is paying off. While the Davidoff flagship brand saw an overall decline of 3.4 percent, its accessory business – including humidors, lighters, cutters, and ashtrays – posted a notable 15 percent increase.
The Zino Phenomenon
One brand in particular stole the spotlight: Zino. Sales surged by 28 percent.
«Zino is almost too good for its price point,» said Hauenstein. «We’ve found a sweet spot between quality and price – an almost irresistible proposition.»
Among the most popular items are pre-packaged fresh packs and pre-cut cigars that have even found their way into gas stations.
«If someone heads to a barbecue, they can grab perfectly humidified cigars alongside their six-pack – and they don’t even need a cutter,» he said.
Accessories on the rise: The Monolith humidor. (Image: Courtesy)
Strong Showing in Germany
Germany was another bright spot, with the company expanding its Wolsdorff chain to over 170 locations.
«That explains part of the growth,» Hauenstein noted. «But yes, even though consumer sentiment in Germany is poor, we managed to grow – mostly thanks to lower-priced products.»
In Switzerland, performance was steady. But according to Hauenstein, the specialist trade is facing structural challenges: «Many long-established shops are struggling with generational transitions. And we’re also seeing downtrading here.»
From the Peninsula in Hong Kong…
Last year, Oettinger Davidoff celebrated another milestone: 50 years of operations in Asia. Its first Davidoff store opened in 1974 at the Peninsula Hotel in Hong Kong. That regional footprint continues to grow.
«We’ve traditionally focused on retail locations in places like Hong Kong, Singapore, Japan, South Korea, and Taiwan. Now, we’re expanding our wholesale business – in markets like Vietnam and Australia,» said Hauenstein, adding the company partners with local distributors in these markets. «This helps us extend our footprint and increase visibility.»
…to All of Asia
Asia remains a strategic priority. But Hauenstein is realistic: «The premium cigar segment is not a growth market. It’s a share game – elbowing for market share. You have to fight.»
In parallel, Oettinger Davidoff is continuing to invest in production capacity. In 2025, the company doubled output at its Dominican Republic facility. This followed a strategic shift in 2024, when production volumes temporarily dropped by 21 percent – due to early production runs in 2023 ahead of new EU Track & Trace rules.
Key product launch: Davidoff Oro Blanco, 2024. (Image: Courtesy)
U.S. Tariffs Take a Toll
«Fortunately, we control our entire value chain,» said Hauenstein. That helps absorb shocks like U.S. tariffs on finished goods and components.
«We didn’t want to burden consumers and refrained from price increases until just recently. Now we’re passing on five percent.»
With its anniversary strategy «Aspire727», the company aims to sustainably grow both revenue and profitability by 2027.
Profitability Holds
That plan remains on track. «In terms of profitability, 2024 was the second-best year in our history,» Hauenstein noted. «And at the end of the day, that’s what I deliver to our shareholders – profitability.»
Innovation remains a cornerstone of the company’s brand philosophy. Recent highlights include the new «Davidoff Maduro», a reworked «Oro Blanco» featuring ultra-aged tobaccos, and the «Escurio 10th Anniversary Limited Edition» released in spring 2025.
New Launches at Davidoff and Zino
For the main brand Davidoff, Hauenstein announced further exciting product innovations for this year.
Significant innovations are also to be expected this year for Zino, the company’s rapidly growing entry-level brand.
