Fortune's Take on Davidoff's Global Dominance

[CeeGarOne]

A well written article on Davidoff's influence in the cigar industry.

 

[Nacho Daddy]

. The Davidoff brand saw sales jump 12% in 2014, while the company’s production hit a record 44 million units, up 13.1% from the previous year.
Davidoff is now grossing nearly $1.3 billion annually selling top-notch product through its global chain of flagship stores.
.......do the math,something is not right.
At $10.00 per stick wholesale,(which they are not) if they sold every box(which I doubt) they would gross 440 million. are they selling 800 million worth of ashtrays? cutters? showercaps?
Thanks for another bogus and totally worthless (but well written) article.......
Global Dominance?

 

[Smoqman]

Someone needs to school some peeps at Fortune

 

[planetary]

Those are the correct publicly reported revenue figures for Oettinger Davidoff.

 

[ZippoGeek]

I love me some Davidoff Nicaraguas. Unfortunately they're about 50% overpriced.

 

[Mikenice81]

Why, is my question. I don't see where they've done anything revolutionary enough to warrant the growth. I'll read the article now. lol

 

[Smoqman]

Those are the correct publicly reported revenue figures for Oettinger Davidoff.

Yep, you're right.

My question is - how is this possible?


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[sofc]

They sell other things other than tobacco I believe (I know they do, just don't know if it's under the same company)

Like Cologne, Davidoff branded luggage, leather goods, etc.

 

[Smoqman]

That's estimated to be near $1 billion in stuff other than cigars....




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[Merovius]

Thats gross guys...

 

[Tennessee Dave]

Thanks for the link. I have only smoked one Davidoff in my life. That was back during the Cigar boom of the early 90's. I saw and bought a Davidoff Culebra because it looked so neat. Cost me about $30. No one told me any better and I was naive enough to think that you smoked all three at once. It was dang near impossible to light and the burn was of course horrible. I guess I missed the clue that when I took the ribbons off the thing nearly fell apart. Got frustrated (of course) and threw it away. Oh well you can't be old and wise without having once been young and dumb. My one and only Davidoff experience.

 

[manbearpig]

I love me some Davidoff Nicaraguas. Unfortunately they're about 50% overpriced.

Yeah I feel the same way. Great smoke at 1/2 the price I would buy them by the box. Otherwise I will purchase 1 every couple of years or so. Nothing else in their line amazes me.

 

[Cigary43]

The great thing about Marketing/Advertising is that you can skew the numbers and content to make it appear as if Davidoff is the only Manufacturer that is a World Leader in the Industry...except they don't categorize just exactly what the numbers represent. While I don't normally ever smoke their brand I get some that are gifted to me....at best it's a $5 cigar for my tastes. Advertising is its own art form as to its appeal for the masses....like McDonalds with their 'pink slime' burgers that brag about how many billions of burgers it sells...... nobody with a brain is going to say they are the best burger on the planet....they just have an Advertising Budget that saturates the market and is pointed at the kids to bug the $hit outta Mom and Dad to take them there.

 

[Mikenice81]

In the article the Davidoff guy admits that it is all about image and emerging wealth in new markets. I would think that as knowledge creeps in those knees will dip a little bit. I mean, there is direct competition from Ashton in that market and Havanas. Plus, some feel this is another boom time and things will shift downward again. That is why Davidoff is hoping for an end to the embargo. The hope is that it will prolong the boom and soften any drop off.

 

[eeven73]

Every Davidoff I have burned(12 or so) has been of flawless construction. Blends are good, not mindblowing. Are they worth the premium? hard to say.

 

[atbat82]

Every Davidoff I have burned(12 or so) has been of flawless construction. Blends are good, not mindblowing. Are they worth the premium? hard to say.

Agreed, you pay some premium for the consistency. You pay a premium for the marketing and panache. It's like wine, once you go behind 100-150 a bottle, you're paying for brand image.

The part that always confuses me about articles like this is:
"The American taste profile is different, more light bodied compared to Cuban cigars which are on the fuller side.”
Huh? I see this all the time when people talk about the end of the embargo and it's just a huge red flag.

 

[Nacho Daddy]

Obviously this writer has no basis for comparison. Probably does not even smoke cigars or read cigar publications........

Is this the kind of journalism we want? Authoritative articles with no basis in fact?
Must be a great job,getting paid to write an article after 20 to 30 minutes of online research.....

 

[Tobacco Giant]

I did not read the article yet, but it mentions they also have flagship stores so they are seeing a retail mark up on cigars as well, plus selling other cigars at these stores. They could also be manufacturing other cigars for other brands which they are not including in their production numbers. Plus products other than cigars. Tough to say with how the article is written and I don't have an interest in looking up the financials but the numbers aren't necessarily wrong.