Subscribe to Cigar Aficionado and receive the digital edition of our Premier issue FREE!

Email this page Print this page
Share this page

Davidoff's No. 1

Cigar Aficionado interviews Davidoff's director general Ernst Schneider.
Marvin R. Shanken
From the Print Edition:
Rush Limbaugh, Spring 94

(continued from page 5)

C.A.: I think that position has less resistance in America than it does in Europe and particularly in the United Kingdom.
Schneider: You want to know why? The U.S. business is being killed by discounters.

C.A.: I haven't seen that.
Schneider: But some retailers in the United States explain that a premium cigar shouldn't cost more than $2.

C.A.: Let's go back. When you looked at your pricing strategy in Europe, what did you do?
Schneider: It's 25 percent less than the Havana Davidoff price.

C.A.: Is it?
Schneider: Yes.

C.A.: If it's 25 percent less, then it's a moot point. I thought that you basically took the Havanas off the shelves and replaced them with your new cigars without lowering the prices.
Schneider: No, not at all.

C.A.: Then why are prices so high and about the same as the average Havana? Is this a question of the tax structure?
Schneider: No. There are other reasons.

C.A.: What is the total production of Davidoff cigars in the Dominican Republic today?
Schneider: We are now at about 5 million, and our goal is 10 million in the next three years.

C.A.: And of the 5 million, what percentage goes to the United States?
Schneider: About 25 percent.

C.A.: So about a million, a million and a quarter, and the balance to the rest of the world?
Schneider: Yes.

C.A.: I assume the business in America is growing rapidly?
Schneider: It's growing rapidly.


< 1 2 3 4 5 6 7 8 9 >

Share |

You must be logged in to post a comment.

Log In If You're Already Registered At Cigar Aficionado Online

Forgot your password?

Not Registered Yet? Sign up–It's FREE.

FIND A RETAILER NEAR YOU

Search By:

JOIN THE CONVERSATION

    

Cigar Insider

Cigar Aficionado News Watch
A Free E-Mail Newsletter

Introducing a FREE newsletter from the editors of Cigar Aficionado!
Sign Up Today