NETHERLANDS. Henri Wintermans Cigars has reported a +25% increase in worldwide travel retail sales volumes in the six month period ended 31 December, versus the first six months of the company’s last financial year.
Erwin Broeren, area marketing manager travel retail commented: “Profit-wise developments are positive as well, although our company experiences the effects of the strong Euro currency exchange rate at present.”
The company said nearly all accounts in most regions around the world perform up on expectations. Extended distribution, especially in the western hemisphere, and the successful Café Crème line extension Café Crème Filter contributed to the satisfying sales. The further improved co-operation with the sales team of Scandinavian Tobacco’s sister company House of Prince was also a factor.
“A reservation to the excellent results should be made,” said Broeren. “Seasonal influences – the selling-in effects for Christmas and New Year – should be taken into account. Final conclusions will only be made internally at the end of February depending on re-ordering levels during January and February 2004.”
The Café Crème family continues to grow, further establishing its number one position in the travel retail cigar market, according to the Generation Distribution Rankings. The company said the parent version of Café Crème performed exceptionally well. Even better results were shown by Café Crème Oriental Aroma – the flavoured Café Crème variant. Compared to the first six months of the previous financial year, sales achieved almost triple the volume. The other Café Crème variants – including Café Crème Blue and Café Crème Filter – an aromatic cigarillo with built-in filter – also scored up on the budgets made. Other brands such as Henri Wintermans, Petit and Old Port/Colts were also reported successful last year.
However, for the coming half of the financial year the company continues to be reserved in making growth forecasts due to increasing tobacco legislation, for example with more countries introducing on-pack health warnings according to EU legislation and advertising bans – potentially hurting both duty free and duty paid travel retail sales.
