Company News: Arnold André
Staying competitive
Handelsgold Sweet Chocolate Cigarillos are the latest flavored product in the range; other bestsellers from Handelsgold include Peach, Cherry, Vanilla and Classic varieties
Arnold André maintains its identity as a family-run business while teaming with the Tobacco House of Sweden and releasing new products ahead of this year’s TFWA WE BY RYAN WHITE
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hen the Tobacco House of Sweden (THS) was founded earlier this year, four of the biggest international players in tobacco were effectively merged. THS is made up of German cigar company Arnold André, Mac Baren Tobacco Company of Denmark, Heintz van Landewyck of Luxemburg and AG Snus of Denmark. THS is now the only vendor in Sweden that can offer tobacco retail the complete portfolio of tobacco products: Swedish Style Snus, cigarettes, cigars, cigarillos, pipe tobacco, rolling tobacco and chewing tobacco. This concentrated supply bundling is a great advantage for the retail market because it can access very profitable internationally well-known brands of the highest quality and profit from the expansive THS knowledge base. Arnold André has been located in Buende since 1851. However, the company was founded 34 years earlier in Osnabrueck. In 1905, Buende finally became the headquarters of the family business. Today Arnold André is managed in the seventh generation by Axel-Georg André and is considered one of the most important companies in the worldwide cigar industry. Gulf-Africa Duty Free recently spoke with Konstanze Marth, Export Manager at Arnold André, about the venture. She also told us that Arnold André will be at this year’s TFWA WE with some new and existing products that are sure to please cigar lovers.
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“The trend these days seems to be that the bigger companies keep getting bigger and there are only a few family-run businesses left,” she says when asked about THS. “This initiative is really about a number of family-owned businesses getting together to share expertise and support each other. “This is really our way of continuing to improve and remain competitive with the bigger companies,” she adds. In addition to the Tobacco House of Sweden, one thing that’s certainly helping Arnold André remain competitive is its stable of bestselling products. The company recently released Handelsgold Sweet Chocolate Cigarillos. While chocolate is certainly a popular flavor, Arnold André also offers other Handelsgold taste variations such as Peach, Cherry, Vanilla and Classic. Arnold André reports that international sales have tripled since the introduction of Handelsgold Sweets. The attractive price, trendy aromas and attention grabbing presentation at the POS have reportedly resulted in price-sensitive smokers spontaneously picking Handelsgold Sweets. The Sweets are in especially high demand in the Netherlands, Sweden, Greece and Eastern Europe, says Arnold André, and Austrian and Swiss smokers have also acquired a taste for them. The new Sweet Chocolate flavor has a sweetened mouthpiece, a pleasurable chocolate aroma and a dark wrapper. The product is available in a 5-pack for a very com-
Clubmaster Mini cigarillos continue to be one of Arnold André’s most successful ranges; a chocolate flavored variant was recently introduced
petitive price. Depending on available space, there are several forms of merchandising presentation available: a large Handelsgold Tower, a Handelsgold dispenser, a counter display or a shelf unit. “The dispenser has been a particularly effective way of selling Handelsgold Sweets,” Marth explains. “It brings to mind a dispenser in some discount or bulk stores. Combined with the very competitive price, this means that a lot of people reach in a grab a cigar or two when at the counter.” In addition to Handelsgold, Marth asserts that Clubmaster Minis are still performing very well. The Clubmaster Mini line includes Superior Vanilla, Mini Vanilla Filter, Mini Sumatra and the recently released Clubmaster Chocolate variety. “A lot of competitors have incorporated chocolate in some way or another, but it’s very hard to get a good flavor,” Marth explains. “With the new chocolate-flavored Clubmaster Minis, we worked really hard to get a pleasing chocolate taste and aroma. The product has already proven itself domestically in Germany and it’s now available worldwide. “Our Vasco de Gama range also continues to gain popularity domestically and in duty free, so all in all it’s been a very positive first half of 2011,” she concludes. “We’re looking forward to meeting with our partners in Cannes and showing them the new c products we have on offer.”