Oettinger Davidoff AG enters its 150th anniversary year with a focus on premiumization

Since Max Oettinger founded the company in Basel, Switzerland in 1875, Oettinger Davidoff has grown from a local tobacco merchant into a global leader in premium handmade cigars. During this milestone year, the company is honoring its heritage while sharpening its focus on premiumization and reinforcing its “Crop to Shop” philosophy.

Lighting the way

Hollay takes pride in Oettinger Davidoff’s leadership in the premium cigar category and how the brand uses data to drive decisions. “We pursue an understanding of our shopper lifestyle preferences and use decision-making trees linked to product attributes,” he says. “These can vary significantly from one shopper profile to the next.”

The company conducts extensive research into cigar shoppers, building a nuanced understanding of motivations, expectations and behaviors. “This knowledge has enabled us to create a merchandising strategy that guides how cigars are displayed to drive footfall, increase conversion and grow basket size,” says Hollay.

These insights inform an ongoing consumer research program that defines four distinct shopper profiles, offering a nuanced view of lifestyle preferences and purchasing behavior. This understanding guides the design of in-store experiences and retail activations. A key example is the immersive humidor at Adolfo Suárez Madrid-Barajas Airport, created in partnership with Avolta. The installation enhances product visibility and positions cigars within the airport’s wider luxury retail environment.

Building on this foundation, Oettinger Davidoff continues to grow its global retail presence. In June, the company opened a “Davidoff of Geneva since 1911” boutique at Lima’s Jorge Chávez International Airport, making it the first concept store of its kind in a Latin American airport. Beyond travel retail, the company is expanding across additional key markets. Renovations are underway at flagship locations on Madison Avenue in New York and in Monaco, while the “Davidoff of Geneva since 1911” store in Basel recently reopened with a refreshed interior. The company also introduced the Davidoff Exclusive 150 Years cigar, a commemorative release available in its Swiss retail stores.

A lasting burn

According to Hollay, gifting drives nearly half of all cigar sales in travel retail. Rather than treating gifting as a seasonal push, Oettinger Davidoff approaches it as a year-round priority, developing limited editions tailored to specific markets and designing packaging that evokes a strong sense of place and occasion, especially during this historic anniversary year.

The brand’s recent launches reinforce this overall strategy. It recently rolled out market-specific editions for Spain and Germany, expanded the Zino Nicaragua line with five-cigar cartons and pre-cut formats, and introduced the Davidoff Escurio tenth anniversary, featuring a blend of Brazilian and Dominican tobaccos with a combined age of 45 years.

Hollay highlights the brand’s premium positioning around gifting. “Cigars are luxury, not commodity tobacco,” he explains. “Shoppers expect quality, presentation and service.” This elevated expectation directly influences conversion, as indicated in Oettinger Davidoff’s research that shows a clear link between a shopper’s first cigar purchase and their broader premium spend. Missing that initial cigar sale often pulls down performance of other luxury categories.

Hollay notes that internal data confirms that excellent service significantly boosts purchase rates. To respond, the company launched Davidoff Academy, a dedicated e-learning platform for retail partners that delivers this training at scale. “The methodology enhances the knowledge, and thus ultimately the effectiveness, of our Brand Ambassadors and retail staff responsible to deliver service excellence,” says Hollay.

Crop to shop

​​Oettinger Davidoff’s roots in tobacco cultivation has naturally embedded sustainable practices into its operations since its beginnings. Its “Crop to Shop” philosophy anchors the entire business, giving the company full control over the value chain and ensuring consistency, traceability and long-term quality. “Excellence in craftsmanship and in the components we use make our products special,” says Hollay.

In line with the 150-year milestone, the company continues to invest in its production infrastructure. The company recently opened a new production facility in the Dominican Republic and plans to expand fermentation and storage operations in Danlí, Honduras by late 2025.

The company also invests in the wellbeing of the more than 4,000 people who make its premium products possible. In its production regions, Oettinger Davidoff provides generous social benefits, including free English-language education for employees’ children. “We grant them with social and health benefits going far beyond the local standards,” says Hollay.

As the brand celebrates 150 years of heritage and looks towards another century-plus of excellence, Hollay emphasizes that integrity, authenticity and a passion for quality remain non-negotiables. “As a luxury brand, it is critical to convey heritage and modernity in equal measure,” he concludes.