MCM celebrates new Berlin store

MCM has opened a new store in Berlin’s hip Mitte district, located in the centre of the German city along the Spree River. The boutique, situated on Rosenthaler Strasse, borders on Charlottenburg-Wilmersdorf in the west, Reinickendorf in the north, Pankow in the east, Friedrichshain-Kreuzberg in the southeast and Tempelhof-Schoneberg in the southwest.

The new MCM store in Berlin's Mitte district features Stefan Strumbel windows

The new concept store has a different look from the German luxury brand’s other boutiques. The MCM logo has been given a pink neon graffiti-style makeover, while the windows have adopted the Heimat look, inspired by the brand’s recent collaboration with Stefan Strumbel, the internationally-acclaimed German graffiti and pop-artist. Pieces from the collection offer a fresh and arty take on MCM's signature Visetos pattern, while Strumbel's trademark cuckoo clock graffiti motif is a nod to the brand’s German roots.

Specially made mirrors inside the store

MCM experiments with new product display techniques

Inside the store, the decor features golden wood and black metal, with a slightly retro-futuristic theme. Even the mirrors have been specially constructed, to make the MCM experience an immersive one. On the display tables, made from solid wood and metal, is a curated ready-to-wear edit as well as small leather goods. Along the walls, luxe-industrial shelving hosts an array of backpacks, weekenders and briefcases in MCM’s most popular styles. Another table display has been taken over by a giant MCM rabbit and items from the Stefan Strumbel collaboration.

See more pictures of MCM's Berlin Mitte boutique below:

A giant MCM rabbit sits on a table

The Glenlivet unveils 50yo whisky

Pernod Ricard-owned whisky brand The Glenlivet has unveiled Vintage 1964 of The Winchester Collection, a rare and prestigious collection of 50yo single malt whiskies, with just 100 bottles of this vintage produced. Of these 100 bottles, eight are available to purchase in Hong Kong, Taiwan and Singapore airports throughout December and January.

The Glenlivet's Vintage 1964 from The Winchester Collection

The first bottle of Vintage 1964 from The Winchester Collection was launched at London department store Harrods in October, with bottle number eight the first to be made available in Asia travel retail, at the DFS Masters of Wines and Spirits event which was held at the historic Black and White House in Singapore on the November 8. Number eight is a symbol of wealth and fortune in Chinese culture, making the release particularly significant.

The Winchester Collection, the world’s first series of 50yo single malts, has been crafted by The Glenlivet Master Distillers and is expected to become one of the most sought-after whisky collections. Vintage 1964 was created when decorated war hero, Captain Bill Smith-Grant – the last descendant of The Glenlivet distillery’s founder, George Smith – laid down this whisky in 1964. It is under the care and guidance of current Master Distiller, Alan Winchester, that Vintage 1964 has been deemed ready to be enjoyed by connoisseurs.

Hand-crafted presentation

Every element of the presentation is hand-crafted by artisans from the British Isles, from hand-blown glass to the inclusion of precious materials. Acclaimed Scottish glass artists Nichola Burns and Brodie Nairn (GLASSTORM) created a decanter inspired by The Glenlivet’s history. The jewel-like stopper was designed by silversmith Richard Fox, whose past commissions have included Formula One and Rolls-Royce. The design combines precious materials such as rose gold, and is crowned with a Cairngorm Stone, often known as The Whisky Stone as a result of its distinctive colouring. The presentation cabinet was designed by award-winning furniture maker John Galvin, who applied traditional cabinet-making techniques to a contemporary design, resulting in a bespoke piece.

The artisanal bottles are exhibited in elegant customised displays in Taiwan Taoyuan airport’s T2 departures store, the prestige area display at Singapore Changi airport T1 and both the departures and arrivals stores at Hong Kong International T1.

An undisclosed number of further releases from The Winchester Collection will then follow, with Vintage 1966 confirmed to be next in line.

Tasting notes

The whisky is aged in a cask made of American oak seasoned with bourbon, with ripe pears, oranges and black cherries creating an intriguing flavour, while smooth, creamy toffee notes give a rich, velvety texture. In the background are hints of caramelised sugar.

“We are very excited to launch a collection as significant as The Winchester Collection in Asia travel retail; it’s a tribute to the heritage and craftsmanship of The Glenlivet distillery since 1824,” said Kim Tse, The Glenlivet brand manager at Pernod Ricard Asia Travel Retail. “We are also thrilled to have secured such a sought-after bottle number for Asia travel retail, with bottle number eight symbolising wealth and fortune in Chinese culture and perfectly supporting the launch of this prestigious range. Having eight bottles available for Asia travel retail also highlights the potential of the region as an increasingly important channel for luxury products.”

Martell teams with fashion designers

French spirits group Pernod Ricard has partnered with fashion designers on two Martell Cognac limited editions for the festive period. The new products are Martell VSOP Paris Style Limited Edition by Jean-Charles de Castelbajac and Martell Noblige Limited Edition Dressed by Jason Wu. They were introduced in key airports throughout Asia from November.

Martell VSOP Paris Style Limited Edition by Jean-Charles de Castelbajac

Tote bag by Jean-Charles de Castelbajac

Inspired by the iconic Parisian district Montmartre, Jean-Charles de Castelbajac has created a bottle which is memorable and instantly recognisable. Entitled ‘MontMartell me a story’, this limited edition of the classic Martell VSOP is white coated with Jean-Charles de Castelbajac signature drawings adorning both the bottle and the packaging. The one-litre expression, which is only available in the travel-retail channel, aims to grab the attention of fashion-forward travellers seeking an exclusive gift. Jean-Charles de Castelbajac has also worked with Martell to design an artistic tote bag which will be available to consumers.

The second of these limited editions is designed to reinvent Martell Noblige with masculine and contemporary elements. Jason Wu has infused the traditional craftsmanship of Martell with a sophisticated new elegance and masculine style that is inspired by the tuxedo.

Martell Noblige Limited Edition Dressed by Jason Wu

Wu, who dresses some of the most influential women in the world including First Lady Michelle Obama, has designed both the bottle and packaging for Martell Noblige. The bottle features a black leather effect that feels soft to the touch. The packaging carries on the contemporary black tuxedo feel and is matched against subtle gold accents. The luxury display and contemporary design aim to appeal to gift-giving travellers in Asia.

Sandrine Tesniere, Pernod Ricard Asia Travel Retail’s marketing manager, said: “We are really excited to be working with artists as iconic as Jean-Charles de Castelbajac and Jason Wu. These stylish and contemporary limited editions allow us to propose unique and vibrant product offers to travellers in Asia and stand out in stores at a key period of the year. We’re confident that this strong product offering will grab the attention of existing Martell drinkers and new buyers, who are either looking for something special for themselves or an exclusive and trendy gift.”

From November 2014, Martell VSOP Paris Style Limited Edition will be available from selected airports in Thailand, Malaysia and Singapore, while Martell Noblige Limited Edition Dressed by Jason Wu will be available at Hong Kong International airport; the Lo Wu Border crossing between Hong Kong and mainland China; and Shanghai Pudong airport. 

Established in 1715, Martell celebrates its 300^th anniversary in 2015. 

Hawaiian Host marks Year of the Sheep

Honolulu-based confectionery brand Hawaiian Host has launched a new limited-edition tin of chocolate-covered macadamia nuts for Chinese New Year 2015 to capitalise on this important gift-giving season.

Hawaiian Host's limited-edition tin for Chinese New Year 2015

Festive colours

The new tin features two 6oz MacNut Crunch boxes in a festive red and gold colour, incorporating the animals from the Chinese zodiac. It is on sale now until the end of Chinese New Year in February, exclusively in four outlets in four high speed railway stations and 48 shops in 19 Chinese airports, including Guangzhou, Chengdu, Xi’an, Beijing Capital, Qingdao and Shenzhen.

“We are excited to be celebrating the Year of the Sheep with this unique gifting opportunity,” said Earl Kurisu, Hawaiian Host director of sales Asia Pacific. “Gifting is a very important part of the Chinese New Year traditions, and we anticipate that this gift tin will make an excellent commemoration of Chinese New Year 2015.”

Chivas Regal Extra to make majestic entrance

Chivas Regal will be introducing its latest Scotch whisky blend, Chivas Regal Extra, to airport shops from March 2015. Chivas Extra is the first expression to be introduced in travel retail since the launch of The Chivas Brothers’ Blend in 2012. “With the whisky category accounting for over 40% of all duty-free liquor sales, and Chivas Regal currently being the fourth largest whisky brand in travel retail [source: IWSR], Chivas Regal Extra is set to take the award-winning house style to a new level,” said brand owner Pernod Ricard.

Chivas Regal Extra will be launched in March 2015

Created by Colin Scott, the Chivas Regal Master Blender with 25 years of whisky-making experience, Chivas Regal Extra offers a blended Scotch using some of the rarest malt whiskies from the Chivas inventory. The whiskies are matured in Oloroso sherry casks together with the rare malts, creating a “rich and generous” blend.

Chivas Regal Extra has a fruity, sweet nose with notes of ripe pears, creamy toffee and a hint of ginger. The ripe pears continue on the palate, with sweet tropical flavours of melons and soft notes of vanilla and caramel, blending with spicy notes of cinnamon and hints of almonds, leading to a long finish.

The new expression continues the legacy of founding brothers James and John Chivas, who pioneered the art of blending whiskies in the 19th century. It will be available at airport stores across the globe and is part of the Chivas Regal permanent range.

“Chivas is one of the world’s most iconic whiskies and has helped shape the super-premium whisky category in global travel retail,” said Richard Black, global brand director of Chivas Regal. “We’re very excited to be introducing this new expression to discerning whisky drinkers, passing through the world’s airports, who are looking for a rich, complex Chivas blend. We are confident it will further cement the brand’s presence in the channel.”

Ballantine’s 40yo hits Asian airport shelves

Pernod Ricard-owned brand Ballantine’s has introduced its pinnacle whisky – the exclusive Ballantine’s 40yo – to customers in Asian airport stores. Only 100 bottles of this year’s release are available, with 32 of these hitting Asian travel-retail shelves. The first was launched in Seoul Incheon airport in October, with the rest now being rolled out to other airports across Asia.

Ballantine's 40yo is presented in a wooden cabinet

The prestigious expression pays tribute to George Ballantine, founder of the eponymous Scotch brand, who wanted to create an exceptional whisky. Ballantine’s current Master Blender, Sandy Hyslop, has hand-blended Ballantine’s 40yo, transforming the founder’s dream into reality. In addition, Ballantine’s invited world-respected British silversmith Richard Fox to craft the bottle. It features the Ballantine’s crest and signature etched into the glass and inlaid with delicate gold along with five sterling silver elements: the stopper, collar, seal, label and base cup.

Each element is individually hallmarked by the London Assay office, a mark of silver quality for over 700 years, and then carefully hand-applied to the bottle. Each bottle is engraved with a single number, from 1 to 100, and presented in a dark wooden cabinet.

The launch of Ballantine’s 40yo features stunning visual displays, designed to echo the expression’s distinctive design and reinforce its status.

The Ballantine's 40yo glorifier at Seoul Incheon airport

“This is the most exclusive blended Scotch whisky from Ballantine’s and we are delighted to launch it in Asia travel retail,” said Kyung Min, marketing manager at Pernod Ricard Asia Travel Retail. “Ballantine’s 40yo truly is a rare expression and will be of great interest to discerning travellers.”

The limited-edition expression is available at Seoul Incheon, Tokyo Narita Terminal 1, Haneda, Chubu Centrair, Hong Kong International and Singapore Changi airports.

Aultmore creates a mystical airport experience

Bacardi has launched Aultmore Speyside single malt whisky across 23 airport stores in the UK with the help of a theatrical bar experience reflecting the brand's distinctive Scottish landscape. The in-store experience echoes the mystical Speyside landscape of the so-called Foggie Moss by using a piece of technology – Le Whaf – to help present the drink. The machine generates swirling vapour that, when poured into the glass, further enhances the nose of the whisky and creates an atmospheric and engaging consumer experience.

Aultmore's bar area at London Heathrow airport

Nigel Sandals, buying manager liquor UK at World Duty Free Group (WDFG), welcomed the new launch in the travel retailer's stores: “Presenting our travel exclusive and WDFG exclusive whiskies with this level of creativity is an impactful way to introduce the coveted dram to passengers. Our theatrical bar activations will truly surprise and delight whisky aficionados and novices alike, allowing them to enjoy Aultmore in an imaginative new way that really brings the dram to life.”

A barman recreates Aultmore's Foggie Moss experience with swirling vapour

World Duty Free and World of Whiskies stores in Glasgow and London Heathrow Terminal 2 and T5 are the first locations to present an Aultmore shopper experience until early January 2015. The UK launch features Aultmore 12yo as a global travel retail exclusive with World Duty Free Group, while the 21yo is also a worldwide exclusive for the retailer, with both ages available exclusively to the company’s UK stores for one year.

Aude Rocourt, regional director of Europe Bacardi Global Travel Retail, said: “Relatively few whisky lovers have tasted Aultmore before but they know of its extraordinary reputation and, keen to discover less mainstream brands, they will be delighted to experience this Speyside treasure.”

Richard Cuthbert, Bacardi Global Travel Retail’s marketing manager whisky, added: “Whisky lovers worldwide are fanatical about unearthing discovery malts that are an alternative to the mainstream, especially those backed by age statements, proven quality and engaging intrinsics of the brand story. Aultmore joins Glen Deveron, Aberfeldy, Royal Brackla and Craigellachie to form our stunning malts collection that delivers these qualities in outstanding style. With retailer support, this expanded portfolio is driving single malt category value by unlocking growth in discovery malts.”

With its classic Speyside style, Aultmore is described as herby and grassy on the nose, smooth and easy to drink, reflecting the use of unpeated malted barley.

Taking its name from the Gaelic for ‘Big Burn’, the Aultmore distillery was built in 1897 on the nine-mile-long road to Buckie, in a region of Speyside so remote it is referred to as ‘Scotland’s Bermuda Triangle’. The distillery stands beside the village of Aultmore and both are often obscured from view, blanketed in thick fog rising from the mysterious Foggie Moss, the waters of which are renowned for their purity, filtered by natural flora.

The Famous Grouse gets a makeover

The Famous Grouse, the UK’s best-selling Scotch whisky, has unveiled fresh packaging following a seven-figure investment designed to drive the premium credentials and ambitious long-term development plans for the brand. Brand controller Asanka de Silva told MJ Rabbit during the unveiling of the new-look portfolio at the 2014 TFWA World Exhibition: “We’re changing the packaging with a new bottle and new labels. It’s a significant move – we felt that the brand could be more premium, and we wanted to wrap the portfolio into one identity. We have enough assets to build a consistent portfolio.”

The Famous Grouse through the ages

The new pack includes a new-look bottle shape, a more premium closure and metallised paper. It will start shipping in May 2015 and will be on-shelf in some markets as early as summer 2015, and across all markets by Christmas 2015.

In addition, the new marketing strategy focuses on the tagline: “Be part of something Famous”, and will shift away from the humorous use of the grouse character in previous ad campaigns. “The grouse is our icon, but we’re using it in a different way. The label now shows a more stylised grouse,” said de Silva. Personalised labels will remain a key feature of the new brand strategy, he added.

De Silva noted that The Famous Grouse’s major markets are the UK, Nordic region and other countries in Europe.

The Famous Grouse label features a more stylised grouse

Heavy investment in the brand

The investment in packaging follows recent repositioning work undertaken across The Famous Grouse, which is seeing brand owner Edrington invest heavily in the brand, including boosting its marketing spend by 48% in 2013.

As part of the changes, the portfolio will also see a permanent line extension at the upper end of the blended whisky range with the launch of a new whisky.  The character of this new whisky will be distinctly Famous Grouse but with sweeter and more fragrant notes, the company said.

Glen Gribbon, director of The Famous Grouse, said: “The new packaging has been developed in response to consumer demand for higher quality packaging and will further differentiate the brand from our competitors, setting a new benchmark for others to follow. In our view, this design is a modern expression of our key assets: the grouse, and our ‘famous’ name, and will help us to deliver our ambitious aspirations for the brand over the next few years.”

Currently the number five standard blended whisky worldwide (source: IWSR 2013), Edrington aims to reach the number three spot after this substantial investment. The brand is continuing to perform well and is outperforming the blended Scotch whisky category. From 2009 to 2013, the category grew at 1.3%, while The Famous Grouse grew at more than double this rate at 2.7% (source: IWSR 2013). The brand is number three in travel retail and holds the number one spot in Scotland, the UK and many other markets. 

MCM gives a lesson in new-school luxury

MCM’s international CEO Paolo Fontanelli speaks to MJ Rabbit about the brand’s ambitious expansion plans in the US, China and the travel-retail channel.

MCM is spearheading ambitious plans to crack the US market, fresh from its first ever catwalk show in Beijing, China, where the German luxury brand has focused much of its attention over the past few years. The brand operates some 50 stores in China, including recently opened boutique in Macau, where sales are performing very strongly, according to MCM’s international CEO Paolo Fontanelli. 

This year, MCM entered the Japanese market with two stores in the upscale Ginza district of Tokyo, as well as an art-gallery-cum-store (developed in collaboration with Germany’s cultural organisation, the Goethe-Institut) in Seoul, Korea, the brand’s number one market.

Next up is the US, where Fontanelli is now turning his attention, as he told MJ Rabbit.

Models on the catwalk at the MCM SS15 fashion show in Beijing

MJ Rabbit: How has MCM’s overall business performed in the past year?

Paolo Fontanelli: The past year has gone very well for MCM. I’ve just come back from two weeks in Asia, where we held a fashion show in Beijing, which was a fantastic success. Sales-wise, we’re up +30% this year compared to last year.

Have the recent Hong Kong protests affected business?

We’ve been a little bit affected with our store in Hong Kong’s Central district, because that was near the protests, but we haven’t been affected in our other stores, such as in Harbour City, so we’ve achieved a balance in Hong Kong. We are, however, concerned about the overall business sentiment in Hong Kong and hope the government can solve the question soon, so Hong Kong can return as a shop window for Chinese consumers. We have seen that the number of Chinese travelling to Hong Kong has been decreasing since the protests.

An SS15 catwalk look 

How has the travel-retail sector performed in the past year?

Our business in travel retail is currently very small – we’re starting [a new strategy] in the channel now. We’ve seen +100% growth over the past year, but from a relatively small base. We want to upgrade our image and make sure that the travel-retail stores maintain that image, so we have closed down some locations that didn’t meet our expectations. We have opened a good relationship with DFS [the world’s leading travel retailer - Ed] and we have two points of sale in Hong Kong International Airport. Now we’re developing our DFS business in major airports round the world. So our travel-retail business is solidly growing and represents a big growth opportunity for MCM, as it is underdeveloped.

In which countries/territories are you targeting retail expansion (both travel retail and domestic markets)?

Next year is the year of America. We’re opening a store in New York’s SoHo in December 2015 and we have plans for three or four major flagship stores in America. The US retail market has come back strongly so having more distribution in the country represents a huge opportunity for us. We aim to double our business in America next year. We want a luxury presence in the market, so we are closing a few locations and focusing on upscale stores such as Neiman Marcus, Bloomingdale’s, Nordstrom and Saks Fifth Avenue. There is much more room for growth.

A model procession at the Beijing SS15 fashion show

What are the most important and dynamic international markets for MCM?

After Korea, China is our second most important market. We have 50 stores in the country and it’s a very dynamic market which is growing very well. We opened a flagship store in Macau last month and we’re doing double the projected sales there. Macau is a sparkling, dynamic market which hasn’t been affected by the Hong Kong protests, so there are huge Chinese tourist numbers. It’s a very good opportunity for us. 

Meanwhile, in mainland China, we’ll be opening travel-retail stores in Beijing and Shanghai soon. So, with the American and European markets growing, it’s a very magic moment for MCM in different parts of the world.

Can you tell us about any new initiatives coming up for 2015?

We’re announcing a licence for sunglasses/optical eyewear soon, which will be a complementary offer in our stores. It’s an important agreement; it’s the first licence for MCM and very important for the boutiques.

For the future, we have plans for other licences in product categories such as watches and perfumes/cosmetics.

What has been the highlight of your business year so far in 2014?

It’s been a very positive year. Our Beijing Spring/Summer 2015 fashion show was a very important step to show the international press the direction of MCM, which represents new-school luxury. We want to be different, we want to be fun, with contemporary products, young and modern. If you Google our Beijing fashion show, you’ll see many positive reviews and pictures all over social media.

TUMI boosts its design appeal

TUMI has embarked on a big push into the women’s lifestyle category with an updated collection that seeks to boost its appeal to female travellers. The US travel accessories brand, which is known for its signature functional and durable Alpha collection of ballistic nylon bags, this year launched the new Alpha 2 range in a wide range of colours and designs as it seeks to woo female buyers. 

“Women are an important part of the customer mix, which is currently 60% men and 40% women, with many women already buying for men,” said Geoffrey Gysin, Senior Vice President Europe, Middle East and Africa.

TUMI tote by shoe designer George Esquivel

The new range joins the Voyageur collection of streamlined and sophisticated bags featuring feminine styling in lightweight designs, which was introduced in 2011.

“Our core DNA is functionality and durability – that’s our heritage – but now we are reinventing the business model with aesthetically pleasing designs,” he said, noting that the company has started working with artists and fashion designers. In April 2014, the company unveiled a new collection with Jonathan Adler, incorporating modern, humorous designs.

“Our collaboration with Jonathan Adler was just the beginning. The idea of working with designers to enhance our portfolio is a given. They can interpret the product from a less blinkered angle and they are very consumer focused.”

TUMI tote by US fashion brand Public School

TUMI has also been the lead underwriter for the Council of Fashion Designers of America (CFDA) and Vogue Fashion Fund’s Americans in Paris initiative for the past two seasons. In March 2014 ten of the CFDA/Vogue Fashion Fund Designers created limited-edition designs for TUMI’s ballistic tote bag. 

Drawing from their love of travel and the city of Paris, each tote offered a glimpse into what inspires the designers, who included Public School, Tim Coppens, Ohne Titel, Nonoo and George Esquivel. Available from September 2014, the totes were sold exclusively at the TUMI stores in Paris’s St Honoré and New York’s SoHo as well as www.tumi.com. “The totes just flew off the shelves,” said Gysin.

TUMI is celebrating its 40^th anniversary in 2015, and the 1975 collection will coincide with the overall design theme which will be Hawaiian, featuring colourful florals and waves.

Braun chief puts the spotlight on innovation

“Innovation is our number one objective.” That was the bold statement from Ihab Rafik, general manager of the Procter & Gamble-owned appliance brand Braun, who spoke to MJ Rabbit at the TFWA World Exhibition in October. Among the latest innovative propositions developed by Braun, Rafik listed the new WaterFlex shaver, which incorporates a contour-adaptive swivel head, and the best-selling range of CoolTec shavers featuring active cooling technology. Innovation spans both products and communications tailored to different shoppers, he added. “Braun wants to supply all needs in terms of prices and customers.”

Braun's new brand ambassador Jessica Alba endorses the Silk-epil epilator

Braun is also ramping up its appliances’ appeal to women with a move from purely functional packaging towards beauty-inspired, attractive visuals on boxes. The German brand has signed American actress Jessica Alba as brand ambassador, who appears as the face of its women’s appliances, which include the new Braun Face cleansing brush, a two-in-one product that also features a facial epilator. The award-winning actress also appears in striking visuals for Silk-epil epilators and the Satin Hair styling tools.

New display fixtures are also part of the innovation pipeline. These “touch-and-feel” units allow consumers to interact with the products – something Rafik believes is important in closing a sale – while also highlighting product features and benefits. He used the buzzword “FMOT” (“first moment of truth”) when describing what happens when the consumer sees the point of sale.

Jessica Alba presents Braun's festive campaign

Wooing the Chinese market

Braun has starting tailoring its communications to the Chinese market with packaging including Mandarin, while also emphasising the “made in Germany” aspect of the products with stickers on the front of boxes. The German-made characteristic is important to the Chinese consumer as a sign of product quality, German engineering and technology, according to Rafik, and it also appeals to Europeans and Americans.

In terms of product developments, the hair styling and trimming categories have room for expansion, Rafik said. Braun will continue to develop relevant items for the duty-free channel, such as haircare and face products. He said the company’s training programme would be ongoing, with some 2,000 staff having been trained in travel-retail stores.

On a corporate level, Braun’s top three markets are Europe, Asia and North America, with Rafik stating that the duty-free business is the equivalent of a market the size of South Korea or Benelux. The July to September 2014 quarter had been “a very good start to the fiscal year 2014/15” for the company with a series of innovations planned.

Davidoff CEO crafts a solid future

Despite a number of ongoing geopolitical concerns across the globe in the Middle East, Russia, Africa and Hong Kong, Oettinger Davidoff CEO Hans-Kristian Hoejsgaard seems unfazed by the perfect storm that is rattling a number of other luxury goods producers.

Speaking at the TFWA World Exhibition in October, Hoejsgaard, who is quietly turning the traditional Swiss cigar company Davidoff into a modern, contemporary luxury goods house, admitted there are concerns in many areas of the world, but it’s the Hong Kong protests that began in September that have affected the company, albeit in a limited way. “Our business on Hong Kong island has been affected, but in Kowloon less so. We’re still doing extremely well, with growth in the mid-single digits instead of the double-digit increases we saw before October.”

Oettinger Davidoff CEO Hans-Kristian Hoejsgaard

Elsewhere in the world, Russia’s strict anti-tobacco laws, which came into effect in June 2014, have spread to the travel-retail channel, with Moscow airport shops having to display all tobacco products behind closed doors. Davidoff’s Moscow flagship has had to be reconfigured so that the products can’t be seen from the outside. But despite the government’s very strong anti-tobacco stance, sell-through has been good, according to Hoejsgaard.

Meanwhile, in France, the brand’s biggest market for mini cigarillos, the government recently voted for higher taxes on cigars and cigarillos, to bring these products in line with the 65% cigarette excise tax. “If this law passes, it will hit sales very significantly,” he said.

Davidoff's award-winning Nicaragua cigar

Innovation is key

The Davidoff brand’s strong double-digit growth over the past 20 months has been in part driven by the brand’s new Nicaragua cigar made from Nicaraguan tobacco leaves, said Hoejsgaard. A first for the cigar industry, this award-winning product has generated a “halo effect” on the classic range – as well as many subsequent copycat suppliers who have since produced their own versions. Hoejsgaard is proud that Davidoff has “legitimised” Nicaragua as an origin for cigars.

“Innovation is extremely important for Davidoff and it’s part of our mission statement. First, we want to be the innovative leader in the category with a strong pipeline of innovation, and second, want to be the brand, thanks to brand experience and promotions. Third, we want to be the indispensable business partner and become a category captain.”

Hoejsgaard is innovating in a number of areas - product, packaging and commercial - the latter including visual identity/merchandising. “It starts with the product… we’ve rejuvenated the brand and attracted a younger crowd. Our cigar-smoking profile used to be 50, but now it’s closer to 40.”

On the US domestic market, Hoejsgaard is testing a new concept, namely as a “curator of accessories brands”. He wants Davidoff stores to become a showcase for “luxury brands selected by Davidoff”. He cited as examples artisanal Italian or French brands. As a test, he is currently displaying the US West Coast jewellery brand Room 101 in Davidoff’s Madison Avenue store window in New York. “We’re looking to test exclusive brands in our stores so that our assortment goes beyond our own products.”

Dubai Airport's Davidoff promotion

Celebrating the Year of the Sheep

Notably, Davidoff is bringing a sense of innovative theatre to Asian gift packaging. This year saw a collection created specially for the Year of the Horse. In 2015, the company has developed an expanded range of cigar accessories to celebrate the Year of the Sheep. Further international product initiatives are in the pipeline, thanks to the hiring of a new accessories manager who formerly worked at Italian luxury goods house Bulgari.

Travel-retail initiatives

Over the past year in the travel-retail channel, Hoejsgaard’s team have focused on product merchandising units, having developed a branded backwall display fixture which has now been installed in more than 100 locations. “We’re moving from product to brand, and then from brand to experience,” he noted.

Hoejsgaard pointed to Dubai Airport as a stand-out location for Davidoff’s brand initiatives, or “theatre”, as he termed it. A month-long promotion tested a year ago saw the brand visuals being displayed “everywhere” within this major hub, and a similar, highly visual campaign has been repeated at the airport, starting in mid-November 2014.

Davidoff: Bringing brand theatre to Dubai Airport

Recent travel-retail store openings have included New York JFK Terminal 4, Taipei and a third shop in Hong Kong International Airport, and Hoejsgaard promises some European breakthroughs soon.

On the cultural and philanthropic fronts, Davidoff is continuing its sponsorship of the Art Basel art fair and its support for international artists. In a few months time, five artists will start a three-month residency at the newly built Davidoff Art Residency on the campus of the Altos de Chavon Art and Design school in the Dominican Republic, where Davidoff’s cigars are handmade. The initiative will also see five Caribbean-based artists being given the opportunity to work in a number of global cities.