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T
he increasingly harsh government regulations
have challenged how every tobacco company
in the U.S. marketplace conducts business,
including Davidoff. Davidoff’s portfolio of
products is packed with popular brands like Camacho,
AVO, Zino Platinum, Griffin’s and Cusano. The compa-
ny had big releases in 2016, including Camacho’s Pow-
erband, the Davidoff Yamasá, and a refreshed design for
AVO. Now, with regulations thwarting new product re-
leases, Davidoff is charging forward with a new initiative:
to create memorable experiences for cigar aficionados
through new retail spaces and special events.
“Our journey started in 2011 and 2012, [when] there
was basically just a product,” says Hans-Kristian Hoejs-
gaard, president and CEO of Oettinger Davidoff AG.
“From there we focused on the brand, and now we’re
very much focusing on the experience. The experience
can take many shapes and forms, but our first investment
has been in our retail footprint in terms of opening more
stores of our own. We also are supporting merchants by
opening Davidoff lounges within or adjacent to their op-
erations so that we can give that full brand experience.”
In the past year, Davidoff’s retail footprint has in-
creased to include new flagship stores in New York,
Houston, Tampa and Las Vegas. It continues to open
high-end lounges, including its most recent lounge open-
ing at Havana Phil’s in Greensboro, North Carolina,
where cigar smokers can fulfill the company’s promise
of “time beautifully filled.” With enough SKUs on the
market to keep cigar smokers satisfied for some time, the
company is working to shift its brand’s focus from prod-
ucts toward becoming a destination for those passionate
about cigars. Just as much investment, thought and con-
sideration go into launching a new product as launching
a new retail space or lounge.
“It is very much about economies of scale. There is
an urban environment that would justify an opening, but
[it’s also about] what is around that location. We know we
have to be close to premium restaurants, we know we have
to be close to other luxury brands,” Hoejsgaard explains.
“Sometimes you have to wait a bit longer for the right
space—the footprint and co-tenancies must make sense
because we are a luxury brand. We always say at Davidoff
that luxury is about pleasure, so where are these locations
that can provide those moments of pleasure?”
Jim Young, president of Davidoff North America, also
notes that going beyond products has helped the company
reach new customers. “We see in our stores sometimes a
plumber and investment banker sitting in the same room
i
Davidoff Lounge at Havana Phil’s in Greensboro, NC
Davidoff of Geneva since 1911 - Tampa in Tampa, FL
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