Oettinger Davidoff CEO celebrates brand innovations at TFWA fair

Oettinger Davidoff Group President and CEO Hans-Kristian Hoejsgaard and Senior Vice President Travel Retail & Duty Free Christian Vonthron welcome guests to the Davidoff cocktail party at the TFWA World Exhibition 2012 in Cannes

Oettinger Davidoff Group is continuing its steady expansion in travel retail as President and CEO Hans-Kristian Hoejsgaard refashions the Swiss cigar specialist into a brand company.

In an interview with The Moodie Report during the TFWA World Exhibition last month, Hoejsgaard said he had completed the first step in his mission to re-engineer Davidoff as a brand company.

“The first step was to establish a new marketing set-up to drive innovation and to introduce the new retail concept, which we have done at Zürich Airport,” he said.

The modular concept, in warm wood colours, will soon be introduced at Taipei Airport, and in the next six months new-look walk-in humidors and cabinets will begin trading at Hong Kong International Airport, in partnership with DFS which will operate the duty free concessions at HKIA.

An additional three new locations will receive a makeover before the end of the year. The new store concept includes new bay wall units and walk-in humidors, and the furniture can be adapted to any store.

The new Puro d’Oro Gigantes adds the Super Robusto format to the Puro d’Oro series

Meanwhile, on the domestic market, three stores have been renovated in Switzerland, and the company is embarking on the refurbishment of its store in Ginza, Tokyo. “The renovations are gathering pace worldwide,” he said.

Hoejsgaard explained that since joining the company in 2011, he had set out three priorities for Davidoff: global duty free, the US market, and China.

His expanded team, including newly appointed Trade Marketing Manager – Global Travel Retail Eve Binard, is on a mission to grow the brand in Asia, Europe and Latin America.

“We are embarking upon an innovation plan for next year,” said Hoejsgaard. “New products will be launched every quarter for different regions. We will be producing a cigar in 2013 to celebrate the Year of the Snake.

“And in the second half of 2013 we will launch for the first time a cigar that is not of Dominican origin. I believe that the Davidoff brand commands authenticity and trust, and we can produce different aromas and flavours.”

Hoejsgaard declined to state the tobacco origin of the non-Dominican cigar.

In addition to these new cigars, new smokers’ accessories will be launched next year.

Hoejsgaard has also refocused attention on archive cigars such as the best-selling No. 2 and 2000 products. Additionally, LegendArio has been promoted at POS in special events at airport shops.

He is also looking forward to the 2013 launch of The Short Pleasures, a pack of four small cigars that cater to the trend for short smokes. While three of the cigars are from existing ranges, the fourth Gordito cigar is a new product. Gordito means “little fat one” in Spanish, and the product, as its name suggests, makes for a shorter smoke, albeit with a wide ring gauge.

As part of his fresh marketing drive, Hoejsgaard has realigned Davidoff’s sponsorship strategy with a global investment in art-related events. The company has forged a partnership with the Art Basel series of art shows, which spans the successful spin-off Miami event. Next year, Art Basel will be introduced in Hong Kong.

“As part of this art pillar, we will launch two limited-edition art-inspired cigars designed by artists. The cigars will be housed in an art collector box.”

As well as art, Davidoff has allied itself with gastronomy and golf. Two limited-edition products will be launched next year – one centred on Champagne pairing and the other themed around golf. The cigars will each be housed in a presentation box.

Turning to the Davidoff brand’s performance, Hoejsgaard said sales had been “very good” this year, adding: “Davidoff is a high-end, affordable luxury and it is doing extremely well in Asia and the Americas.” Sales in Europe had been “flat” in a challenging market, he noted, but good double-digit growth was coming from the US, duty free, and Asian markets.

Left: White Edition 2012; Right: AVO 25th Anniversary Edition

New product developments for 2013

Previewing the new products for 2013 to The Moodie Report in Cannes, Senior Vice President Travel Retail & Duty Free Christian Vonthron said the Year of the Snake cigar presentation would feature a snake pattern and would be targeted at the Asian market.

Eight cigars will be included in the limited edition because of the importance of the number eight in the region. Launched in January 2013, the box will feature eight corners and will be accompanied by an accessory line comprising humidors and an ashtray.

The new Gordito short cigar, part of the Puro d’Oro range, comes in a convenient, small-sized pack which is good for travel retail, according to Vonthron. Launched into travel retail in January 2013, it taps into the trend for shorter smokes and has a strong flavour.

February 2013 will see the launch of The Short Pleasures, a selection of the brand’s shortest cigars. In the second quarter of 2013 a limited-edition line of cigarillos will hit the shelves in April, exclusively for travel retailers. The gold pack is designed to be attractive and keeps a standard product special, he said.

“Operators are looking for products especially designed for travellers,” Vonthron concluded.

New products at the TFWA World Exhibition 2012

New products from the house of Davidoff at TFWA World Exhibition 2012:

Davidoff Puro d’Oro Gigantes

With the newly launched Puro d’Oro Gigantes, Davidoff is adding the Super Robusto format to the Puro d’Oro series introduced to the market in 2010. The new Gigantes in their imposing Toro format offer Puro d’Oro lovers extended smoking pleasure, the company said.

Davidoff White Edition 2012

A sophisticated appearance is given to the limited annual White Edition: while presenting a powerful and full-bodied taste, its stylish exterior is designed to make the Davidoff Limited Edition 2012 a collector’s item.

AVO 25th Anniversary Edition

To mark the 25th anniversary of AVO Cigars, the 25th Anniversary Edition is coming onto the market in the Toro format. This Puro is made of pure Dominican tobaccos. The packaging consists of a black lacquered, piano-shaped wooden box. The contents of the 25th Anniversary Edition are a homage to the cigar creator Avo Uvezian, reflecting his love of music and his cigars.

MORE PICTURES FROM THE DAVIDOFF COCKTAIL PARTY AT THE TFWA WORLD EXHIBITION:

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