The smell of tobacco left Hollerich last year for in the north of the country. For Landewyck, this new plant represents its largest ever, with a surface area of 32,000 m2. Every year, seven billion cigarettes and five billion rolls of rolling tobacco are produced here.
Despite these staggering figures, “our world market share is 0.1%, so we still have 99.9% to win,” says , chief commercial officer of Heintz van Landewyck, with a smile.
The Luxembourg company, which was founded in 1847, is currently active in some forty markets, mainly in Europe. It exports 95% of its production, and has subsidiaries in Germany, Spain, Portugal, Belgium, Hungary and France.
A changing market
While the company is proud of its Luxembourg identity in most markets, this is not the case in France, where “the vision of Luxembourg is too monochrome,” says the director. He is faced with regulatory changes that require, for example, the production of neutral packaging for five markets.
He considers his product to be “a consumer good,” and observes that demand is shifting, particularly towards emerging countries at the expense of traditional markets. A self-confessed ‘Thumbelina’ in the market, he claims to be much more innovative than the giants in the sector. “In 48 hours, we can bring out a new product,” he says.
We see THC cannabis as a very interesting segment.
It’s clear that the new products smell less and less like tobacco. These include nicotine sachets for sucking and CBD cigarettes. “We're keeping a close eye on the regulatory developments surrounding THC cannabis, which we see as a very interesting segment.” As for e-cigarettes, Landewyck admits that he is “leaving that to the professionals” after a trial in the mid-2010s in which “we burnt several millions of euros.”
Another look at counterfeiting
550 of the group’s 1,500 employees work in Luxembourg, according to the manager. In 2022, Landewyck Holding saw its sales stabilise at €3.2bn and its net profit jump by 16.2% to €30.9m. Management is not commenting on these results. All it says is that it is investing 80% in existing products and 20% in innovations.
Presumably, being a small player does not spare the group from the risk of counterfeiting. “I think that 20% of our volume is smoked without our making it, especially in France, Belgium and Spain,” says Krombach.
For us, it’s flattering to be counterfeited, it’s a bit of a consecration.
The cigarette company doesn’t seem too bothered by the situation. “For us, it’s flattering to be counterfeited, it’s a bit of a consecration,” he argues. His objective? To remain ambitious and continue to make headway in this increasingly disparaged market.
Smoking is considered to be one of the main risk factors for lung cancer. In 2021, tumours will be the leading in Luxembourg, accounting for 25% of the total, according to the health department. In Luxembourg, 28% of the population smoke, according to data from the Cancer Foundation.
This article is part of a summer series dedicated to Luxembourg entrepreneurial success stories. Stay tuned for next Wednesday’s edition, featuring Panelux.
This article was first published in French on . It has been translated and edited for Delano.