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Best-selling brand: Handelsgold is one of the best-known cigarillo and cigar brands in Germany |
GERMANY. Arnold André, one of the largest tobacco products manufacturers in Germany, has posted a gross sales increase of +2.2% for 2008, driven by growth in export.
Compared to the previous year, the total volume of in-house produced cigars increased from 310 to 330 million (up +6.45%). Gross turnover for 2008 amounted to €64.8 million, compared to €63.4 million in 2007.
“Considering that the economic framework of the German market is still very difficult, the traditional company’s management, located in Bünde, is very pleased with the latest development,” the company said.
Managing Director Wiljo van Maren also sees this as confirmation of the company’s policy. “By increasing efficiency in sales and distribution and with innovative new products like Vasco da Gama Whisky and Handelsgold Sweet Cigarillos, we have made up for declines in our traditional products.”
According to van Maren, an overall trend towards mini formats and inexpensive products is visible.
The company has also expanded its portfolio beyond the classic cigar business. A new co-operation has been established this year with Mac Baren, the leading producer of pipe tobacco on the German market, which is expected to generate additional revenue and also strengthen the good position in the important speciality shops. New chewing tobacco products were successfully introduced to the market in the smokeless tobacco segment last year.
Export makes up 50% of sales
Commenting on its strong export sales, Arnold André said: “The motor of the altogether positive development of the company is the export, amounting to almost 50% of total sales. In the important but difficult French market, Arnold André has been represented with its own 22-person strong distributorship since 2006. Considerable additional market share was gained with an increase of sales just under +18%.
“This is even more remarkable considering the fact that the overall French consumption of cigars has declined by -3.7%. The French market makes up about a fifth of the total sales with 64.3 million units (compared to 54.7 million in 2007). The rest of the export market achieved a +15% increase in sales.”
The company said high growth rates were also seen in Spain, Portugal, Greece and the Czech Republic. The company exports its cigarillos and cigars to almost 70 countries.
Further “interesting” markets were added in 2008, it continued, with the US, Turkey and other countries in Asia, Africa and the Middle East. “International business should be promoted further with the expansion of the export organisation in the next years,” the firm added.
The German domestic market is steadily improving. “On the national market things are getting better, though they are not at their best,” it observed. “Based on the latest jurisdiction, more and more federal states have realised that there are ways to reasonably implement non-smoker protection. Due to respective exceptions for smaller gastronomic businesses, it can be expected that more large formats and cigars in the upscale price sector will be requested by guests looking for enjoyment.”
The first numbers of the current year provide cautious optimism. Managing Director Rainer Göhner said: “The previous course of this year is taking place at a comparably high level. This shows that we are also well positioned for the medium term. In the long term, we have provided outstanding conditions by modernising the locations in Königslutter und Bünde, which has led to an improved production and also to [make] safe jobs for our employees.”
For details, contact Konstanze Marth, Export Manager, Arnold André GmbH & Co. KG, Moltkestraße 10-18, Bünde, 32257, Germany, tel: +49 5223 163254 or e-mail Konstanze.marth@arnold-andre.de Visit www.arnold-andre.de
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