Cigar company Arnold André this week announced a year-on-year gross sales increase of 6.2 % for its 2009 financial year. Compared to the previous year the company was able to increase the overall sales volume of €335 million (US$424 million) to €356 million (US$450 million)an increase of +6.3%for cigars sold from their own manufacture. Gross sales amounted to €75.6 million (US$95.7 million) in 2009 compared to €65 million (82.3 million) in 2008.
Precisely in view of the ongoing tense business environment, the management of the tradition-rich Bünde-based company is more than happy with this thoroughly positive result.
“The comprehensive smoking bans and last but not least the economic crisis that is still having major repercussions have changed the consumer behavior of smokers quite significantly,” noted Managing Directors Rainer Göhner and Wiljo van Maren in a recent statement to the press. “Fortunately, our product policy response to this development has been timely. The result for the economic year ending shows that the decisions we have made were the right ones. The strong revival of domestic demand can be attributed above all to our new mini sizes under the Clubmaster brand and the favorably priced €1 (US$1.26) products of the traditional Handelsgold brand.”
According to Arnold André, an important driver of the company’s positive development continues to be the export trade, which takes up an almost 50% share of the company’s overall turnover. Here in particular it is worthwhile taking a closer look at the French market. With a turnover increase of 12.6%, the company has found it possible to conquer a considerable share of the marketeven the more remarkable considering that in 2009 overall cigar consumption in France dropped by as much as 3.2%.
With 71.6 million cigars sold in 2009 (compared with 64.3 million in 2008), the French market represents around one fifth of Arnold André’s overall turnover. According to van Maren, this success is due to the dedication and commitment of the 22 staff members working at its France-based sales company.
In the remaining export marketsabove all in Spain and Portugala turnover growth of 4.6% has been achieved.