Many of you might know this already: I smoke mostly Davidoff cigars. Now and then I might try a Cuban but my love lies clearly with Davidoff. I think they are the best and most consistent cigars in the world.
I started smoking cigars around 21 years ago. In the beginning I mostly smoked Cuban cigars as I did not know better. After university I moved back to Zurich to start working and it is there where my love affair with Davidoff began.
Davidoff at the end of the day is a Swiss brand run by a Swiss family and so their cigars are prominently available here. With time I got to appreciate the quality that only Davidoff cigars posses. Yes – they are very expensive (especially the white label millennium blend series which is my favourite) – but there is a famous saying in life – and it applies here very well: You get what you pay for. For me it is very clear: Davidoff cigars are of the highest quality and the most consistent in their smoke. This of course has a price.
Davidoff generously invited me to Art Basel this year (where they are one of the principle sponsors) and it is there were by chance I met the CEO of Oettinger Davidoff – Hans Kristian Hoejsgaard. I hope you enjoy the interview.
What does Davidoff the brand stand for?
We provide the following luxury for our customers: Time beautifully filled.
What is the DNA of the brand?
To deliver an outstanding product starting with the brand – all the way up to the experience. Our cigars are complex in blend, have superb consistency and we are able to deliver an outstanding product regardless of territory (so from Nicaragua to the Dominican Republic). We think of ourselves as a great brand with great people and are able to make great cigars. Anywhere!
When I think of Davidoff I think of quality. I don’t think that when I smoke a Cuban cigar. Your thoughts?
I think there is a defining difference between our cigars and that of the competition.
When you buy a box of Davidoff cigars – the customer can expect that each and every cigar in the box has been tested for quality and is perfect. Quality is in the DNA of our people be it our rollers, our farmers or in our territory that we operate in. I think our customers appreciate and recognize this.
This is why some of our customers find our cigars superior to all others. Including Cubans. What people should remember is that Cuban cigars or Havanas are state run. There is no incentive to deliver an outstanding product. I think Cuban cigars still have this mythos. And as a result people forgive them if out of box of 25 cigars – a few are not perfect. Because of the mythos they get away with it.
How much does ‘Swissness’ play a role at Davidoff?
I think it plays a very large role. Davidoff is a Swiss brand, owned by a Swiss family since four generations. Swissness as a result – is an integral part of the brand. We believe in quality and sustainability. Be it in how we treat our people. How we treat our soil.
You have a new initiative called crop to shop. Will this ensure even greater quality going forward?
The crop to shop initiative is something that was reinforced under my watch. For example we did not own many plantations when I joined. We wanted to gain control of the full vertical chain to ensure better quality. So we started to buy plantations. Work more closely with the farmers. Teach external farmers how to reach better standards and improve corporate social responsibility (how the seeds and soil are treated).
Davidoff is over 100 years old. What will it take for the next 100 years to survive?
Well we are a family company which ensures longevity to a certain degree. Only 3% of all family companies survive beyond the fourth generation. We think we can count on the following values what has always made Davidoff successful: 1) Consistency in delivering an outstanding product 2) Focus on quality 3) Be an innovation leader.
How has Davidoff been an innovation leader?
For example we launched our new Davidoff line made in the Nicaragua three years ago. We went out of our comfort zone and decided to produce in a new territory Nicaragua. It is a new blend (black label) and it has proved very successful. It has been our largest single success since we left Cuba back in 1989.
We took market share away from those who only smoke Cuban cigars. Another way we have been innovative was with our limited edition series. Creating special cigars like the Art edition, the Davidoff Chefs edition or special cigars to celebrate the Chinese New Year.
A friend of mine said: I don’t smoke Davidoff because I am always confused by the many lines they offer. 1000 series. Double R. Millennium blend. Not to mention Zino Davidoff. Is there too much choice within Davidoff Premium cigars?
Your friend has a point and that is something we have noticed and are addressing right now. We are reducing the number of references by 40% to make consumer choice easier. Secondly we are changing the packaging in order by color and by family. It will make it easier for the consumer to choose a relevant cigar going forward.
Will Davidoff ever re-enter Cuba?
We hope so!
The brand was born in Cuba! We left in 1989, as we could not ensure the quality we wanted and also due to the US embargo. After all 42% of our total sales come from the US market. When the Embargo is lifted we hope to come back, provided that the quality standards are acceptable and that we can control the quality ourselves.
The world economy looks quite unstable right now. The luxury market (watches, art, cars, accessories) is not growing like it used to grow. How is the cigar market holding up?
The premium market – where we operate in – is growing very nicely.
We are growing double digit so it is clear we are taking market share, as the entire Cigar market is only growing 1-2%. At the end of the day, a cigar is an affordable luxury and this market is holding up just fine. Affordable luxury is still holding up. The biggest problem we have is not that we cannot grow, but that global regulation against smoking has increased.
Is China an opportunity for you? Do they like cigars?
China is coming on very nicely. You have to remember China has a smoking culture (especially cigarettes). We are investing heavily in distribution in China as believe it is the largest single opportunity for us. China is growing 20% for us. Cigars are an extremely popular gift item (behind red wine). Also about 109 m Chinese travel abroad and we are well represented at airports around the world. In China we have flagship stores in Beijing and Shanghai. In Hong Kong we have 5 big stores and lounges for our global clients to enjoy a fine cigar.
Will Davidoff ever have an online shop? Or do cigars need to be seen, touched and look at before you purchase them?
We have an online shop in America. We would only do it in other markets if our customers want to replenish their stock and know already what line they smoke. But our stores and our lounges will be always critical in conveying the Davidoff message of quality. We are not opposed to an online shop – but we want to do it right and will take our time.
How important is accessories (humidors, cigar cases, lighters, cutters etc) for Davidoff?
We are very strong in the accessories market. We have excellent humidifying systems. Ten percent of our business comes from accessories. We have a clear objective by 2020 – that 20% of our business will come from accessories.
What is your favourite cigar or favourite cigar line?
It really depends on the occasion. I like the new Davidoff Winston Churchill line. But my favourite remains the robusto format of the Davidoff Millennium series.
Do you have any other hobbies besides Cigars?
I love cooking for family and friends. I also love wine and consider myself a collector. I am also into Art and love design.
When you leave Davidoff what would you like your legacy to be?
That I transformed the company that was product focused when I came to one that is brand focused. Davidoff today is about an experience.
We can deliver an exceptional experience regardless where we produce our cigars. I also place a huge value on innovation and have pushed our retail expansion. When I joined we had less than 50 stores. Today we have 75 stores and still growing. I very much hope to leave behind a great team that delivers an exceptional product with the best customer experience.
(I would like to thank CEO for his time and his wonderful assistant Melanie for co-ordinating this interview).
For your enjoyment a few cigar pictures combined with some watches. For sure one my favourite cigars within Davidoff! Millennium blend short robusto.
Below the new box pressed Davidoff from Nicaragua which is quite a strong full flavoured cigar.
The next picture includes my all time favourite Cigar from Davidoff. Art edition 2014.
The reason I love Davidoff so much is the consistency of the smoke. No cigar smokes more consistent or smoother than a Davidoff. This is at least my experience.
A superb cigar is also the Chefs edition which I just recently tried.
Last picture is of another all time favourite Davidoff cigar of mine. It is the Saveurs Gstaad – sadly now discontinued. A truly world class cigar.
