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An Interview With Dr. Reto Cina

President and Chief Executive Officer, Oettinger/Davidoff Group
David Savona
From the Print Edition:
Andy Garcia, Mar/April 2004

(continued from page 1)

Q:  Let's talk a bit about the company in general, because I think all of our readers know about Davidoff, but very few know about Oettinger. Could you describe the company?

A: Actually, we are in four fields of activities. We are a producer, we have an import and export business, we are in the wholesale business and we are retailers. The company is divided into three divisions: tobacco products, accessories and confectionery, which includes cigars; diversification, which are all the other brands, such as cosmetics, leather goods, writing instruments, glasses, ties and Cognac; and, of course, cigarettes.

 

Q:  How large a company, in terms of annual revenue, is the Oettinger/Davidoff group?

A: The tobacco products, accessories and confectionary division comes to 910 million Swiss francs ($717 million), cigarette licensing is 1.2 billion ($946 million), and diversification is 501 million ($395 million). The number of employees is 2,600. Outside of the Dominican Republic, most of them are in Germany, with more than 800.

 

Q: Where do you sell Davidoff cigarettes?

A: Only in Switzerland, plus we have some distributing rights for other cigarettes; for instance, we are the distributor of the American Spirit cigarette -- in Switzerland, in Belgium and in Holland -- but it's a tiny thing. In addition to that, we are the importer for Zippo lighters, for Savinelli pipes and so on. Having our sales force selling our own brand together with these imported products makes the portfolio much more attractive, and delivery costs come down with the percentage of the value of the order. By using our infrastructure to the utmost, signing the same customers and adding up other products, we are able to generate additional margins.

 

Q:  What about your fragrances?


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