Americas FDFA 2017 by Paramount Publishing Ltd.

FDFA 2017

DUTYFREEMAGAZINE.CA NOVEMBER 2017 · FDFA· VOL 27 · NO 4

RINCON SHINY BLACK

| BLUE MIRROR

Big changes at FDFA this fall p. 6 Importations Guay takes multimedia approach p. 10 Sault Ste. Marie enjoys old-school success p. 14

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P U R E.

C A N A D I A N.

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LETTER FROM THE EDITOR

New

NOVEMBER 2017 · FDFA· VOL 27 · NO 4

The Americas Duty Free & Travel Retailing magazine (ISSN 0962-0699) is published four times a year April, June, October and November by Global Marketing Company Ltd. 26 Pearl Street, Mississauga, Ontario L5M 1X2 Canada. It is distributed throughout Central America, South America, the United States, Canada, U.S. Virgin Islands, U.S. Pacific islands, and the islands in the Caribbean. The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or the editor. November 2017, Vol 27. No. 4. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2017 Global Marketing Company Ltd.

THE AMERICAS DUTY FREE & TRAVEL RETAILING 26 Pearl Street Mississauga, Ontario L5M 1X2 Canada Tel: 1 905 821 3344; Fax: 1 905 821 2777 www.dutyfreemagazine.ca PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca EDITORIAL DEPARTMENT EDITOR-IN-CHIEF Hibah Noor hibah@dutyfreemagazine.ca SENIOR EDITOR Wendy Morley wendy@dutyfreemagazine.ca ASSOCIATE EDITOR Jas Ryat jas@dutyfreemagazine.ca SOCIAL MEDIA COORDINATOR Eman Khan eman@dutyfreemagazine.ca ART DIRECTOR Jessica Hearn jessica@globalmarketingcom.ca

CIRCULATION & SUBSCRIPTION MANAGER accounts@globalmarketingcom.ca

beginnings

his year’s FDFA Convention and Trade Show marks the beginning of a new era for the association. As President and Chair of the Board of Directors, Abe Taqtaq, states in our interview with him, after last year’s convention it became apparent that things needed to change, and change they have. The new management model has paved the way for decisions that have already resulted in increased buyer participation at the convention this year. Since the new FDFA has only three mandates, one being ensuring the most value for both suppliers and buyers at the annual event, future shows are bound to see this positive trend continuing. But the FDFA is about a lot more than the convention and the association. It’s about business here in Canada. As with retailers all over the world – both domestic and duty free – Canada’s duty free retailers have seen a sea change over the past few years. Success in the current climate requires creativity, and this year’s examples of inspired marketing initiatives show just that. Canada’s retail environment is also being influenced by the increasingly important Chinese traveler. This does not just mean retailers need to concern themselves with what Chinese travelers want to buy, but also how they prefer to pay. WeChat and Alipay, the two most popular payment methods in China, came to Canada earlier this year, and are now also in use in the US. Will they transform the way North Americans pay for things, as they have the Chinese? That remains to be seen. Downtown Montreal is the vibrant location chosen for this year’s convention. We at Americas Duty Free wish all attendees an enjoyable and, more importantly, a successful time. Kind regards,

Hibah Noor Editor-in-Chief hibah@dutyfreemagazine.ca

www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

CONTENTS

What’s inside

FEATURES 6 Frontier Duty Free Association MOVING AHEAD

After some big changes at the organization this fall, President Abe Taqtaq discusses what’s coming for FDFA, its members and the convention

10 Importations Guay Ltée TARGETED MARKETING

In 2017, Importations Guay Ltée took a multimedia approach to reaching precise demographic groups with clear messaging

12 Sault Ste. Marie Duty Free Store OLD-SCHOOL SUCCESS

Showing appreciation and support to community, customers and staff, and marketing via radio and word of mouth – these oldfashioned courtesies helped Sault Ste Marie Duty Free stay top of mind

14 18

14 Niagara Duty Free THE ICEWINE COMETH

A specialized area with unique, targeted design and increased floor space has resulted in positive growth for Niagara Duty Free’s sales of a very Canadian specialty wine

16 Costa A HIGHER CALLING

Costa is committed to protecting and preserving the ocean they love

20 Haleybrooke International A POINT OF DIFFERENCE IN THE MARKET

Americas Duty Free speaks to Patrick Gunnar Nilson, President of US-based duty free agent Haleybrooke International, about the progress of his wine and spirits portfolio in North America

18 CITIZEN Canada SEEING THE LIGHT

CITIZEN’s Canadian unit has leveraged its strong brand awareness in the country’s border stores – and now airports are a key target

REGULARS Chinese making mobile payments ALFA Brands is full of beans Pillitteri breaks the ice

8 22 23

IBBI showcases new brands Turkey Hill enjoys sweet success All about Elizabeth Taylor

24 26 34

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ASSOCIATION: FDFA

Moving ahead

After some big changes at the organization this fall, President Abe Taqtaq discusses what’s coming for FDFA, its members and the convention by

This year, the event is taking place in Montreal at Le Westin Hotel. Next year will be the first convention completely planned under the new mandate, and it will be held a new Toronto hotel,.

WENDY MORLEY

any in the duty free industry were surprised in September to receive a management change notice from FDFA, announcing that longtime Executive Director Laurie Karson was no longer with the organization. Last year was a challenging year, says Taqtaq. “The board decided to go back to the core, regrow. Regain focus.” Since making the management change, the board has had to go through a lot of catch up, but board members have been much more engaged. “And Allison has picked up a lot of slack.”

Limited mandate The FDFA of the future will have only three mandates. “Over the past few years the FDFA has become involved in a number of different areas and initiatives that the board felt drew focus away from where it should have been. These have included marketing initiatives, and collaborations between retailers in different parts of the country where it just doesn’t work. The FDFA has been involved in the day-to-day business of the stores. These things should not be under the direction of the board.”

The FDFA’s new mandate includes three things only: 1. Increase membership 2. Government relations 3. The convention

Convention changes

FDFA President and Chair of the Board of Directors Abe Taqtaq says after 2016’s convention the board knew some changes had to be made

Tania Lee was Strategic Convention Committee Chair, influential in the decision to continue holding the FDFA Convention and Trade Show each year

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2017

“As a group, we in the board knew we had to do something after the convention of 2016,” says Taqtaq. “Members expressed dissatisfaction.” To improve the convention, the board will offer more to both buyers and suppliers. So far, the plans for this year’s convention in Montreal are going well, and buyer numbers are already up by 8% as of the time of writing – for both airport and land border stores. Supplier numbers are down so far, but that’s probably because buyer num-

bers were down last year. With increased buyer participation, supplier participation should go up in coming years. This is a transitional year and the convention will still operate under the current format, but for the last time. “Lauren Guay is Convention Chair. The theme this year will be Montreal/Quebec inspired,” says Taqtaq. “Delegates will find major changes are apparent from the outset. There will be no more fun night, for example. Attendees did not see the value.” Instead, many people expressed that this evening often got in the way of dinners and entertaining clients. “There will be a new networking opportunity with Tito’s Lounge,” he continues. “After a busy day, attendees can relax with a drink and have more chance to have an informal chat.” This underlines the FDFA’s position that the convention should facilitate trade. The Gala night and awards ceremony will continue. “The Gala is being hosted by Imperial Tobacco,” says Taqtaq. “We are not having a keynote speaker, though that may get revisited in the future. For now, we felt that money could be better spent elsewhere.” Over the next few years, attendees will continue to see more changes. “Next year, we move to our new location in Toronto,” says Taqtaq. “It will still be a transitional year, but you can expect to see improvements for all participants.” He confirms that the board has heard concerns about the value of the trade show floor, for example. “That’s something we are aware of, in our communication with suppliers after the event, and it’s something we will be addressing.” For now, the FDFA Convention Committee is bringing back the regional schedule for the trade floor in an effort to increase and distribute activity.

The rest of the year and beyond For the time being, Taqtaq says there are no plans to replace Karson in the position, and no decision will be made in that regard for at least the coming few months. He does not believe the removal of the Executive Director will affect government relations, though he takes the opportunity to confirm that it’s imperative for these relations to be looked after as a group. “I’ve heard it said that the most effective form of communication with the government is as individuals and that is simply not true,” he says. “There is no way to be more influential than as a group.” Whereas the FDFA will no longer take part in marketing initiatives or in coordinating cooperation between members, the association will continue to facilitate any of these initiatives on members’ behalf. “It doesn’t make sense, for example, for a retailer in BC to form a cooperative distribution network with a retailer in Quebec. It doesn’t work. But for retailers in the same region it can make a lot of sense. But it has to come from them. The FDFA will help facilitate.” What will the FDFA look like in the future? “We still have our office in Ottawa,” Taqtaq says, acknowledging that this too might be looked at further down the road. The board is also looking at the potential efficacy of hiring a lobbying firm. In the meantime, the FDFA will be working hard toward its three mandates, offering strong reasons for non-members to attend the convention, ensuring increased value for all participants, creating value for former members to come back and attract new members, and working with the government to create the best possible environment for successful duty free trade in Canada.

The Gold Standards Awards winners from 2016’s gala. The gala and the awards will continue in 2017, but attendees will see other changes

www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

CHINESE TOURISTS: MOBILE PAYMENT

The ever-increasing number of tourists from mainland China can be illustrated by the modern look of Shenzhen Bao’an International Airport

The C future is

now

With the Chinese propensity to pay by phone and tourism from that country of origin becoming ever more important, offering WeChat and Alipay options can only be beneficial for the travel retail operator by

WENDY MORLEY

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2017

hina has been influencing the financial world for millennia. Currency as a concept has existed in the country for at least 3,000 years. The first emperor of China introduced a uniform copper coin in about 200 BC, decreeing that all other forms of currency were illegal in order to establish a country-wide standard. And then paper money was created in China in the ninth century. Since that time, both that country and the rest of the world have used little but paper and coins as currency. That is, until plastic became popular in the 20th century.

The new cashless society Traditionally, the Chinese did not want credit cards because of a cultural aversion to owing money. So, unlike those in the western world who have a multigenerational acceptance of keeping plastic in their wallets, the Chinese were especially accepting when a new cashless system was created, one that didn’t require carrying anything extra in your wallet, one that couldn’t be pickpocketed or counterfeit. Hence, the widespread acceptance of mobile payment that may surprise those in the rest of the world. In a way, the Chinese were able to “skip a generation,” jumping straight from the past to the future. According to The Economist, the new payment reality of China “keeps bank chiefs up at night,” as mobile payment is becoming so ubiquitous that even street musicians are collecting money this way – and for the most part, the banking system is not involved. By the end of 2016, mobile payments were used in 74% of all online purchases in China, and in 42.5% of in-store purchases. And this number is only expected to grow.

Tour buses like these are commonly seen at Canada-US border crossings; more and more often, they are filled with Chinese tourists

All this being said, then, it should come as little surprise that the two biggest mobile providers in China – WeChat Pay (known as Weixen in China) and Alipay – which together make up 92% of the mobile payment market, have both hopped across the Pacific and partnered with tech companies in North America to provide payment access to the millions of Chinese tourists traveling on this continent.

In North America, 2017 is the year of Chinese mobile pay In May of 2017, Tourism Toronto was the first organization in Canada to partner with WeChat, and both WeChat and Alipay have been making huge inroads in this country and the US. According to Alipay North America president Souheil Badran, as of October of this year 700 merchants in Canada were accepting Alipay, originally launched by mega online retailer Alibaba’s Jack Ma in 2004. In recent months the business wires have been inundated with news of Alipay and WeChat joining in partnerships and being offered by retailers and service providers in North America and around the world. As of August, WeChat’s global users numbered 935 million, and that number has probably passed one billion by time of writing.

Chinese tourists continue to increase According to statistics out of China, 122 million tourists traveled outside the country in 2016, spending US$109.8 billion during these travels. Chinese visitors to the US are expected to top over 6.5 million annually by 2020, and the entire tourism industry in that country is taking note. By the end of October of this year, 2,100 taxis in Las Vegas had begun accepting Alipay as fare payment. An additional 14,000 taxis in New York City are expected to accept it by the end of November. As might be expected, the travel retail world has also jumped on board. DFS recently announced the addition of WeChat Mini Program at San Francisco International Airport, and the luxury travel retail operator was the first offline retailer in California to provide Alipay’s mobile payment option to its customers at DFS in SFO. “As America remains a popular destination with Chinese travelers, and with more than two-thirds of all arrivals into San Francisco visiting the Bay Area, our stores at San Francisco International Airport are an ideal environment to test new ways to attract and engage this segment of consumers,” says Mike

While only 10% of the Chinese population owns a passport, they account for 32% of global luxury goods sales

Osorio, DFS Group Region President Americas, Pacific Islands and Japan. WeChat’s Mini Program, which DFS launched this October, allows customers to review products and then easily pre-order and pay for their purchases using WeChat Pay for pick-up at the airport. “The personalization of the Mini Program, which can be tailored for instance to feature renowned Napa Valley wines, is especially popular with the growing segment of ‘free and independent’ travelers who prefer a more bespoke and individual experience to group travel,” said Osorio. Alipay is also now available at the Vancouver airport, with World Duty Free, and is available at several locations in Hudson News (both Dufry). It’s inevitable as of writing that there will be travel retail locations that offer both WeChat and Alipay that are not mentioned here, because since inking partnerships in North America, the speed at which these two payment methods are being offered is incredible.

The market cannot be overstated Especially important to the travel retail industry is that this cohort purchases more than its share of luxury goods. “Only 10% of the total Chinese population owns a passport, and yet they account for around 32% of global spending in luxury,” said Jim Beighley, Executive Vice President Strategy and Business Development, DFS Group. But those percentages are both set to increase. A lot. By 2020 Chinese Millennials are expected to make up 50% of those traveling out of the country. In other words, the proportion of passport-owning Chinese is growing. Additionally Millennials are the demographic from the country most interested in buying luxury goods, setting the trends for future generations. “The rising middle class in China will reach 600 million consumers by 2022,” says Alipay’s Badran. “By that time, China will be the top overseas origin market for the US tourism industry.” While Canada currently receives just a fraction of the Chinese tourist market, this still amounted to well over 600,000 individuals in 2016, a number that showed a increase by tenfold over the previous 15 years, and which is expected to be dwarfed by the figure from 2017. By 2015, China was creeping up behind the UK as Canada’s second largest tourist country of origin and largest from oversees. It almost certainly has passed the UK by now. But in spending, China took over long ago. It just makes sense to offer payment options to this group that are both easy and comfortable. www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

IMPORTATIONS GUAY LTÉE

Importations Guay recently announced the official opening of Starbucks at its flagship location at the Montreal/ New York border crossing

Targeted marketing

n 2017, Importations Guay Ltée (IGL) devoted a great deal of time to developing its marketing programs. According to the company’s Vice President, Justin Guay, the most impactful initiative was the company’s partnership with CAA Quebec and MTL1642 magazines. “The partnership involved full-page ads in both summer editions of the magazines and a call to action to enrol in our summer gift card giveaway contest,” he says. The retailer took some time to consider the best medium to use, and then which publication to partner with. “CAA Quebec and MT1642 were the perfect fit,” says Guay. “CAA Quebec is the provincial division of The Canadian Automobile Association, one of the largest consumer-based organizations in Canada. With over six million members nationally and 936,856 in Quebec, the

Justin Guay, Vice President, Importations Guay Ltée

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2017

In 2017, Importations Guay Ltée took a multimedia approach to reaching precise demographic groups with clear messaging by

HIBAH NOOR

partnership was aligned with expanding and reaching out to our target clientele, as it represented automobile owners in the province who like to travel. The average household income of CAA Quebec members is $75,000- $100,000. Of those members, 30% spend $2000-$5000 on trips outside of Canada each year. As 11 percent of members are English speaking and 89 percent French, 833,801 copies were circulated in French and a little over 100,000 were distributed in English.” While CAA Quebec magazine was the right fit to communicate with IGL’s local customers, MT1642 was the ideal complement to target travelers visiting Montreal during the busy summer season and celebrations for Montreal’s 375th anniversary. “MT1642 is exclusively distributed in over 16,000 hotel rooms in Montreal, with a total of 50,000 copies in circulation,” says Guay. “The look and feel of the magazine is quite sophisticated, and that tied nicely with IGL Duty Free’s image.” The duty free retailer worked with spirits suppliers to develop creative that highlighted the store offerings while showcasing some of the customers’ favorite brands. “In order to measure the success of our initiative, we asked readers to sign up for our summer contest; a $100 IGL Gift Card was given away every week of the summer (13 in total). By signing up for the contest, participants were also signing up for our developing newsletter program that we kicked off this fall. We saw a significant spike in the number of consumers signing up for our newsletter due to the possibility of winning a shopping experience at one of our three IGL locations,” says Guay. “Over the course of the contest, we had 1,700 visitors to the contest page and 700 new subscribers to the newsletter. Each week the winner was announced on our Facebook page with a promoted post geotargeting the greater Montreal area and highlighting a store promotion.” Guay feels the partnerships with the two publications has provided a platform to reach customers. Once they sign up for

the newsletter, the retailer has a direct line of communication to keep them updated on promotions, events and other activities at the stores. “Now that we have attained a substantial audience for our newsletter, we put out the first IGL edition announcing the official opening of café Starbucks at our flagship location at the Montreal/New York border crossing,” says Guay. “In addition to the announcement of the opening, we took the opportunity to feature photos of our beauty department as well as our spirits department.” The magazine marketing initiative exceeded IGL’s expectations, as the retailer saw a substantial increase in activity to its website and social media channels. “We plan to carry out similar initiatives soon to further develop our client base,” says Guay.

beyond 30 seconds you run the risk of losing them. While it was a challenge to tell the stories in such a precise window, we felt it was important to follow these guidelines.” Guay says the primary objective with these videos was not only to keep duty free top of mind when traveling, but also to change the preconception that duty free is a thing of the past and not a destination for today’s consumer. “Millennials are a dominant force in the retail space and while the myth is that they do everything online, according to the Forbes article titled “This is How Millennials Shop,” when browsing in-store they are more likely to complete a transaction than when browsing online. In order to appeal to these consumers, we wanted to make sure to be on their radar when it comes to cross-border traveling.”

Education key to growing customer base

The videos

Duty free staff often encounter people both in and out of the store who are not aware of how duty free works, which products are offered, any savings available and also which travelers are eligible to shop. Another challenge is letting potential customers know that they will be offered a worthwhile shopping experience. “We are faced with the challenge of getting travelers to stop, as they often don’t associate duty free land border shopping with high-end brands and specialty products, therefore they see it as ‘wasting time’ at the border,” says Guay. “We are proud to say that from first-time shoppers at our store we repeatedly hear comments about how pleasantly surprised they are. With the increased shift to digital and the unquestionable need to appeal and educate Millennials about the benefits and accessibility of duty free, we have developed a social media awareness video campaign to communicate with them in a fun, relatable and unique way.” The videos address some of the main reasons why people stop at a duty free shop; three storylines were developed into 30-second videos and the themes translated into the retailer’s campaign tagline, “For whatever the situation.” Guay says they kept the videos concise so as not to lose their viewers’ interest. “According to AdAge, it takes 10 seconds to capture a viewer’s attention, but

The first video, featuring three guys on a road trip who forgot their beer cooler at home, ran for only five days but garnered 12K views and reached nearly 40K people. The video was geotargeted to Montreal, Laval, Sherbrooke, New York and the Vermont area, as these locations represent the majority of IGL’s customer base. The second video, featuring a young family traveling and needing a bathroom break, garnered over 10K views and reached over 30k people. This video was geotargeted to the greater Montreal area and also ran for five days. “The video resonated with many of our clients, as they generally stop for bathroom breaks here but are pleasantly surprised when they come through the entrance and discover we have much more to offer,” says Guay. The third video launched Thanksgiving weekend, and will be promoted over the holidays. In this scenario, a man forgets to buy an anniversary gift for his wife and pulls over at our store. “The video does a great job of capturing our newly renovated sections as he browses for gifts, and it shows that duty free is not just for liquor but also a great place to pick up gifts for that special someone,” says Guay. “The video will be leveraged to the surrounding areas of our three locations and will be promoted on our social channels.

The duty free retailer worked with spirits suppliers to develop creative that highlighted the store offerings while showcasing some of the customers’ favorite brands

www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

SAULT STE. MARIE DUTY FREE STORE

Old-school

success

Showing appreciation and support to community, customers and staff, and marketing via radio and word of mouth – these old-fashioned courtesies helped Sault Ste Marie Duty Free stay top of mind

t the Sault Ste. Marie Duty Free Store, they like to try different marketing techniques to enhance business. “The last few years we basically focused our attention on social media, which has been quite successful,” says Ralph Caria, Owner and Operator, Sault Ste Marie. “We continue to advertise and hold contests on our Facebook page, which generates a lot of interest and enthusiasm. Our 12 days of Christmas draws bring a lot of attention to the store and generate sales during the holiday season. We were fortunate this year that suppliers were very generous in donating prizes for our Facebook draws.” Facebook has proven a valuable resource for the store. “We decided to live stream our events and contests on our Facebook page to prove authenticity,” says Wilma Deplonty, Sales/ Marketing Supervisor. “Facebook is great way to stay in touch with your customers, through Messenger.” In addition to using social media, this year they decided to try some old-school techniques. “We held several special events this

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2017

year and decided to try advertising on a local radio station. The station broadcasted our special events live, and the results were immediate,” says Caria. “We also upgraded the famous jingle ‘The best things in life are duty free.’ We incorporated the branding: ‘Do better at the border,’ and had it played on the radio. This activity brought quite a few people into the store for the special events. Radio is still an inexpensive and effective way to reach a large audience. We were surprised the impact and results that radio still generates. In a world of social media, radio can hold its own. Everyone loves the radio!” All about attracting attention, during their special events the store hired a bright red food truck and faced it to attract bridge traffic to our store and offered a free BBQ to everyone. The store utilized the advertising wall and signage that leads up to the parking lot entrance, to promote specials. “We also promoted brands we carry on all the four-sided posts in our parking lot. All product signage is visible to all travelers leaving and entering Canada,” says Deplonty. “This year we added an Inuksuk

Sault Ste Marie employees Ivana Boston and Mary-Pat Boyle celebrate the store’s 30th anniversary this year

“We were surprised the impact and results that radio still generates. In a world of social media, radio can hold its own. Everyone loves the radio,” says Ralph Caria, Owner and Operator, Sault Ste Marie Jeff Law and Ralph Caria, Owner and Operator of Sault Ste. Marie, presenting Continuing Educational Bursary Award to Jessica Findlay

landmark at our entrance to draw attention from tourists crossing the bridge. An Inuksuk is a human-made stone landmark that has been used as a marker for travel routes. It is our hope that tourists will be able to recognize and quickly pinpoint our entrance to the store. Tourists love to have their photo taken with our Inuksuk. We are currently in the process of teaming up with the business who built the Inuksuk to promote each other on our social media accounts to attract new customers.” Despite all these important efforts, everyone at Sault Ste. Marie Duty Free knows the most important marketing is word of mouth. “By building trust and WOW moments with each and every person you interact with in the store, you will have proven results,” says Caria. “Happy customers will be your greatest advertisement by vouching for your products and services. Social media and word-of-mouth has definitely helped to boost our beer sales in the last few years by 70%.” The store’s 30th anniversary this year gave the opportunity to thank employees, customers and the community for their con-

tinuous loyalty and support. “We had a year of special moments, friendship, tears, laughter and goodwill.” “Customers are our livelihood, and without them we are nothing,” says Caria. “We held a Customer & Staff appreciation event during the July 1st/Canada 150 weekend. Everyone enjoyed a free BBQ, amazing giveaways and a local radio station broadcast our event live. We strategically placed Canada 150 decals on the floor, guiding customers into the store. We also placed decals on the floor as they left the cashier. Staff randomly surprised customers with free gifts and coupons to use at a later date. We promoted the event on our Facebook page by holding a “Do better at the border Canada 150” contest. We gave away a Canadian T-shirt everyday for 10 days to celebrate Canada 150! It was a tremendous success, allowing us to showcase our Canadian T-shirts for customers to purchase. Staff wore their “Do better at the border” T-shirts proudly during the event. The event was so successful that we held a second Customer and Staff appreciation in August. We had many happy satisfied customers and staff during our events.” Recognizing and honoring employees for their level of service this year was very important to Ralph Caria and Jeff Law, and this was a part of the appreciation event. “They understand the importance and the key role the staff has made in the last 30 years. It was a very emotional day to walk down memory lane,” says Ivana Boston, Sales Manager and Mary Pat Boyle Office Manager/Inventory Administrator Boyle. “Our event was broadcast live on a local radio station. A large screen was set up in the store that played video showing memories over the last 30 years. Ralph and Jeff presented service awards and heartfelt and sincere acknowledgment to each staff member for their service, loyalty and hard work. They truly made everyone feel special in their own way with personalized messages, and this boosted the morale of staff. Employee service ranged from 1 year all the way back to the beginning, 30 years. That’s a true testament of what a great place the Sault Ste. Marie Duty Free Store is to work.” To give back to the community, the team participated in the Sault Ste. Marie Relay for Life, helping to raise much-needed money to continue research, celebrate cancer survivors, and remember those they have lost due to the disease. “It was a way to show our community we genuinely care about others. Giving back is one of the most important and valuable things and business can do,” says Deplonty. The store also created a Continuing Educational Bursary Award this year to honor and celebrate the innovation and hard work that young people bring. The store provided summer students the opportunity to apply for an educational bursary in the amount of $1000. “The submissions were creative, well written and innovative. The real winner here was the Sault Ste. Marie Duty Free Store, because their entries were great marketing tools we can use to enhance our business. Jessica used her skills and talents to create an amazing commercial promoting our store. The store presented a second bursary of $500 to Cassie, another deserving first-year young employee.”

www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

NIAGARA DUTY FREE Niagara Duty Free designed and built the Icewine display that stands out from other displays within the store

The Icewine

cometh

anada’s Icewine has become increasingly popular around the world, and that is certainly the case at Niagara Duty Free. “In the last few years we have become aware of the international traveler’s increased demand for Icewine, and believed a strategy involving a unique presentation with enhanced methods of display, merchandising, and sampling would improve sales,” says Steve Richardson, General Manager, Niagara Duty Free. Innovative thinking and strategy – and working in cooperation with suppliers to develop a unique experience for customers – have resulted in positive results and growth. To accomplish these goals, the shop took a number of steps. “We increased our assortment, gave staff more opportunity to offer samples while educating the customer, and created a new display unit, which would not only draw in and engage the customer but embrace the Icewine story visually,” says Richardson. “While each component contributed to the success of the plan, the most significant improvement involved a brand new display unit, which would both radiate the atmosphere of the product and engage the customer.” The shop designed and built an Icewine display that stands out from other displays within the store. “The Icewine wall stretches 20 feet wide and is 10 feet high. The display area is entirely back lit with glass shelving,” says Richardson “We create atmosphere by having the fixture

A specialized area with unique, targeted design and increased floor space has resulted in positive growth for Niagara Duty Free’s sales of a very Canadian specialty wine

completely snow white, with black-andwhite photography demonstrating the Icewine harvest. In front of the display we installed a 360-degree Icewine tasting bar, also in the snow-white color used in the wall display. Above the bar is a bulkhead that denotes the area with hanging light fixtures which look like they are made of ice.” The display unit was installed just before the start of the summer season, and Richardson says the results were immediate. “Sales of Icewine have so far increased almost 10% over the same time period last year,” he says. In the center of the Icewine bar there is enough room for two employees to sample at the same time. “This is very efficient if we have a few motor coach tours in the store at once,” says Richardson. “This setup has allowed us to improve

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2017

customer service by getting the product in the hands of the customer with little to no wait, which often leads to increased sales.” The size and scope of this display has offered the opportunity to stock more product on the sales floor for better visibility of the SKUs being recommended. “The ability to exhibit more of our best sellers on the sales floor has an additional benefit,” says Richardson. “In the past we have been faced with situations when a number of motor coaches arrive at the same time, passengers clean out the shelves and we have had to replenish during our busiest moments, which can cost us sales. With increased product on the floor this problem no longer exists, and we do not feel like we have lost a sale because a customer had to wait while we ran to the warehouse.”

Candy Tin

new collectable item in the iconic Goldbear shape

COSTA

Costa’s bestsellers in the lifestyle segment include Half Moon in Tiger Shark with Green Mirror Lens (top left), Half Moon in Shiny Black and Matte Black with Blue Mirror Lens (top right)

A higher

calling

osta, the performance sunglass brand for anglers and water lovers, is making waves in the travel retail market thanks to its distinctive brand proposition. For more than 30 years, Costa has demonstrated its commitment to protecting the ocean on which they call home. One example is the brand’s longrunning partnership with OCEARCH, a research organization that specializes in tracking apex predators such as the Great White shark. “Costa is uniquely positioned in the market,” says Monty Montan̄ez, Director – International Sales & Business Development, Costa. “First, we have a very youthful millennial consumer who appreciates the exploratory spirit of our brand and what we stand for. Second, we offer an all-polarized, range of performance sunglasses with best-in-class color-enhancing lens technology to optimize life’s experiences on and off the water. And third, we are driven by a higher calling – we’re committed to sustainability and protecting and preserving the water we love.” OCEARCH is a recognized world leader in generating critical data on great white and tiger sharks. They partner with scientists and researchers to share the data they collect in an effort to better understand the patterns and habits of sharks who are our ocean’s balance keepers. To date, they have completed 30 expeditions, worldwide, aboard the M/V Ocearch, which serves as an at-sea laboratory.

Miss Costa on Global Shark Tracker In 2016, OCEARCH open-sourced the data on the Global Shark Tracker to 2.3

Costa is committed to protecting and preserving the ocean they love

million users. They achieved more than 6 billion media impressions, globally as well as 70 million Facebook and 134 million Twitter impressions. Consumers can follow the OCEARCHtagged sharks by accessing the free online Global Shark Tracker app, or by following OCEARCH on social media platforms. Costa has its own shark, called Miss Costa. This female white shark was tagged on September 23, 2016 and, since that date, has traveled 3,463 miles. Her last known location was Nantucket, Massachusetts. “Miss Costa was named for our longtime friends and partner Costa. Costa has done so much to enable our work on the water and we have been waiting to name a female white shark in honor of our partnership with them,” says Chris Fischer, founding Chairman and Expedition Leader of OCEARCH.

Sunglasses inspired by sharks This summer, Costa and OCEARCH took their partnership to a new level with a

More best-sellers include Rincon in Shiny Black with Blue Mirror Lens (bottom left) and Rincon in Smoke Crystal with Green Mirror (bottom right)

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2017

marketing campaign designed to raise awareness for sharks called: Don’t Fear The Fin. Fear a World Without Them. The campaign features a special OCEARCH Collection of sunglasses, with new styles and shark inspired colors. Each purchase helps fund research expeditions aboard Ocearch and its mission to protect sharks. New Costa sunglass styles for 2017 include the Reefton, Tasman Sea, Shipmaster, Cook and Oyster Bay. Meanwhile, Rincon and Half Moon are best-sellers in the lifestyle space. The Shipmaster features corrosion-free titanium frames in an oversized aviator shape. The frames are flexible and lightweight, and Hydrolite technology on the nose and temple pads keeps them comfortably on your face. This summer, Costa and OCEARCH have generated over 100 million consumer impressions through this unique conservation driven campaign. It featured digital activations, PR events and in-store signage featuring three shark attack survivors and their plight to protect sharks and our oceans.

DUTY FREE & TRAVEL RETAIL SUMMIT OF THE AMERICAS March 18-21, 2018 Orlando World Center Marriott Orlando, Florida

ASUTIL and IAADFS are collaborating to present the Duty Free and Travel Retail Summit of the Americas The summit brings together the best from the former ASUTIL and IAADFS events. Join us to take advantage of the vast potential of this vibrant market: The region includes 40 countries with a total population of more than 950 million. In 2015, 2.29 billion passengers traveled through airports in the Americas and Caribbean, up 5.3% from 2014. Total 2016 duty free and travel retail sales in the Americas and Caribbean were USD $10.7 billion (17% of worldwide market sales). No matter the size of your business, suppliers and store operators will have opportunities to meet, network, learn at executive education sessions, and conduct business, all under one roof! Save the date for THE most important business-to-business event in duty free & travel retail. www.2018SummitoftheAmericas.org

CITIZEN CANADA

Seeing the light CITIZEN’s Canadian unit has leveraged its strong brand awareness in the country’s border stores – and now airports are a key target

ITIZEN Canada started its duty free initiatives back in early 2006 when it opened an account with border store operator Peace Bridge Duty Free. Eleven years later, the Canadian arm of the Japanese watch brand has flourished in the channel. The brand was immediately successful at Peace Bridge and given that the Niagara region was easily accessible from its Markham head office, Peninsula Duty Free and Niagara Duty Free soon followed. In his travels across Canada throughout the year, Doug Irwin, Vice President Sales, made a point of visiting land border duty free retailers to see them and sales and door openings continued to grow. Irwin says high traffic locations such as these border stores Citizen aims to be a technology leader with its Proximity Pryzm Bluetooth-enabled smart watch

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2017

can benefit the most from CITIZEN’s strong brand awareness and the value that duty free retailing offers. He cites the example of the launch of CITIZEN’s Satellite Wave-World Time GPS watches, when CITIZEN Tokyo introduced a campaign in major international airports to promote the technology to world travelers and duty free shoppers globally.

A technology leader CITIZEN’s star products feature the brand’s pivotal technological breakthrough –the development of a light-driven watch. CITIZEN pioneered this engineering innovation well ahead of other watch manufacturers, as early as 1976, which led to the launch of the highly acclaimed Eco-Drive in 1995. Utilizing electrical power converted from virtually any light source, this innovation changed the way watches could be powered. Eco-Drive eliminated the need to ever replace batteries, which made it especially beneficial to areas where such specialist batteries were not obtainable. This leveled the field for citizens of virtually every country to be able to wear a CITIZEN watch. CITIZEN aims to be a technology leader with its Promaster Land, Sea and Air sport watches, GPS satellite technology, Atomic Timekeeping and Proximity Smart watches. The trend lately has been to simple, design-inspired watches, and CITIZEN’s Axiom dress watches have been a huge success, according to Irwin. During the FDFA show, CITIZEN will showcase some of its new spring 2018 model introductions to give operators a head start on their spring purchases. It will also display some technical pieces that might require more detailed explanation such as the Satellite Wave-World Time GPS and the Proximity Pryzm Bluetooth-enabled smart watch. CITIZEN is represented at most of the land border duty free stores, so growth must come from increased productivity, not new points of sale, explains Irwin. “We continue to make

improvements with our visual presentation and the use of brand assets to communicate the Eco-Drive messaging. We are a fully bilingual company as well as creating point of sale assets in Spanish, Japanese and Chinese to speak to international travelers as well as domestic and American shoppers in English and French.” Airport duty free is a growth opportunity for CITIZEN. As a global brand, CITIZEN is well respected around the world. China is an important market for CITIZEN and travelers from that part of the world like the styling and the value that they find when they are traveling and shopping in the Canadian market. “Not every traveler is looking for a luxury brand watch when they are traveling internationally. CITIZEN has something for everyone. Our name speaks to our belief of inclusion with a multi-cultural mindset to create timepieces that can be enjoyed by citizens all over the world,” he says. The watch category has seen lots of changes and new entrants over the last 15 or so years, he notes. “Fashion watches and licensed brands watches have come and gone as they ride the wave of popularity of the fashion-based clothing, handbags and other accessories that put them on the map. These successes can be fleeting as the lifecycle of these brands is getting shorter. Today’s consumer is fickle and less loyal to fashion brands.” More recently, the marketplace has been enamoured by wearables, smart watches and fitness trackers. “I think customers will get tired of these novelty hybrid devices after a while. Having said that, anything that gets customers putting something on their wrist is good for the watch industry generally.” CITIZEN prides itself on making watches, not gadgets. “We will never be a fashion brand but we will be fashionable, and therefore always a stable brand in the watch category for all our authorized dealers,” states Irwin.

Targeting millennials With millennial consumers in mind, CITIZEN launched a collection of Eco-Drive light-powered watches called DRIVE from

CITIZEN with domestic retail prices under C$400 (US$319) to bring a younger demographic into the brand. “Young people have grown up knowing that doing right for the environment is critical. The environmental benefit of a light-powered Eco-Drive watch makes sense to them. We just had to make sure that we had styling that resonated with them. We have run marketing campaigns in movie theaters and through social media to speak to this demographic. Bloggers and influencers that speak to a younger demographic are important components.” The US parent company has partnered with organizations to support youth educational and sports initiatives and has offered internships in its New York office and Torrance, California distribution facility. The Canadian arm of the company uses social media such as Facebook, and can help retailers keep their websites current and relevant. Operators can embed code in their website so that when visitors to the site click on the CITIZEN logo a CITIZEN microsite in English or French opens in the context of the operator’s website rather than a click through to www.citizenwatch. com. This means that the viewer gets the full CITIZEN experience, while staying on the operator’s website. “We also offer our duty free operators access to www.citizenbrandassets.com where they can access all kinds of media assets to use in their social media campaigns. At CITIZEN we make it easy to come alongside our brand presence and messaging,” he says. Irwin believes brands “must be visible where the eyeballs are looking”, and to that end, CITIZEN continues to support advertising across a variety of mediums. “Appointment viewing such as Fox NFL football game coverage is huge. In-game, on-site and digital coverage of the US Open Tennis, Toronto Blue Jays, and the Toronto Maple Leafs, Skate Canada and International Skating Union events round out our CITIZEN sports marketing.” “In short, digital is not an ‘instead of ’ proposition, it’s an ‘as well as’ proposition,” he concludes.

This CTO men’s chronograph watch from the Drive from Citizen collection is powered by any light and never needs a battery change

www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

HALEYBROOKE INTERNATIONAL

A point of difference in the market Americas Duty Free speaks to Patrick Gunnar Nilson, President of US-based duty free agent Haleybrooke International, about the progress of his wine and spirits portfolio in North America Americas Duty Free: Which countries in North America are performing well, and why? Patrick Gunnar Nilson, President, Haleybrooke International: For both the USA and Canada our business has been very good, up double digits, due to promotional activity and new listings. Our Bottega wine and spirit business is running up 37% so far this year in Canada. ADF:Which of your brands are the star performers? PGN: We are capitalizing on the tremendous growth of Bottega Gold, which is the number one Prosecco in travel retail and the number three brand of all sparkling wines after Moet & Chandon and Veuve Clicquot, according to the IWSR. In the USA we are now in 11 of the key airports. In Canada, in just a few months, we were able to launch Whitley Neill Gin, from Halewood Wines & Spirits, in 10 of the leading border operators with pending listings expected soon due to the interest in the unique recipe, which includes nine rare African botanicals. ADF: What will you be showcasing at the FDFA show? PGN: We will be showcasing wines and spirits from Bottega, Louis Royer Cognac, Laboure-Roi Burgundy wines, Whitley Neill Gin, The Pogue’s Irish Whiskey, and Wild Tiger Rum from India. A number of our brand owners will attend so they can speak directly to the duty free customers.

Louis Royer Cognac is one of the many interesting brands being showcased at this year’s FDFA show

ADF: What are your growth expectations for this financial year? PGN: For 2017 we should be up 10% to 15% for the year, but with new brands coming into the portfolio we hope to be up an additional 20% in 2018. We believe that this will be achievable with promotions and new listings. ADF: What are the trends impacting the category in the region? How is this shaping your strategy? PGN: We are hoping that we will continue to see some operators listing some new and different brands and not just rely on the big brands that are in every duty free shop. In the domestic markets we see tax paid shops finding new and unique brands and putting them on their shelves in order to attract and keep new customers. ADF: How different is the Americas duty free consumer compared to other markets? PGN: Canadians want their favorite brands but at the best possible price versus the Liquor Boards. For an American living in the USA there aren’t very big savings compared to the domestic market, but will buy for convenience, for consumption on a trip or as a gift. This is very different than in Asia where premiumization is very important, and of course there are Asians traveling to North America and buying the prestige brands that they love.

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2017

ADF: How important are millennial consumers to you? PGN: There is a belief that millennials don’t drink what their parents drink and also that they are not as interested in the big brands. We need to get the millennials into the shops and we think they are a very good target group for brands like Wild Tiger Rum and Whitley Neill Gin. ADF: How important is it to pursue an active digital media strategy? PGN: This is extremely important, but most of the work needs to be done by the brand owners and we encourage them to participate in every way possible. This is one of the ways that we can get millennials interested in our brands. ADF: What are some of the unique activities you’ve implemented at point of sale in the last 6-12 months? PGN: One very attractive unit is the Bottega Gold Cake Display, which is tiered and on display at the Dufry shop in Las Vegas and will be going into the ARI shop in Montreal Airport.

Haleybrooke International’s portfolio includes Bottega Gold, the number one Prosecco in travel retail

Have a Great Frontier Duty Free Association Convention

Patrick Nilson +1 845 981 7240 p.nilson@haleybrooke.com Roger Thompson + 1 203 322 9691 r.thompson@haleybrooke.com

ALFA BRANDS

Full of BEANS

The Krispy Kreme doughnutbranded line of Jelly Belly Jelly Beans was launched at the end of summer 2017

Duty free agent ALFA Brands has lots of weird and wild product launches in store for its Jelly Belly confectionery brand

or the last 18 years, ALFA Brands has been the proud duty free agent for Jelly Belly Candy Company, famous for its Jelly Belly jelly bean line. Jelly Belly Candy Company is experiencing continuous growth in travel retail as a result of new products, line extenALFA Brands will be officially introducing the traditional Hardy Cognac brand at the FDFA convention

sions and proven success in key locations, which has been a springboard for new listings and distribution, says Amy Hildreth, Operations Manager, ALFA Brands Inc. “This year, ALFA Brands and Jelly Belly Candy Company have partnered with DFS Group and we are very pleased with performance of the brand so far. We are working together on a strategic plan for 2018, which will include promotions, brand ambassadors, staff incentives and travel retail exclusive items. Over the summer, the Mr Jelly Belly character visited the DFS store at San Francisco Airport to promote the brand and customers had fun taking their pictures with him,” she says. Jelly Belly has had a long-standing relationship with DFASS. Hawaiian Airlines, whose inflight business is operated by DFASS, will be listing the new Jelly Belly Mixed Emotions Gift Box 4.25oz in its February 2018 program. Favorite flavors of Jelly Belly beans are paired with an emotion, and finished with the imprint of a corresponding face to show off those feelings. Five flavors are available, seeking to give candy lovers everywhere a new way to express themselves. The Mixed Emotions Collection launches with a variety of packages, including snackable and shareable bags, a gift box, a Mystery Dispenser that selects one bean at a time and Mixed Emotions Mini Plush – plush toys in the shape of Jelly Belly jelly beans. Once again, the Star Wars 20 Flavor

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2017

Gift box will be featured in the Avianca (operated by DFASS) inflight catalog starting November 2017.

Special flavor pairings At the end of the summer, the Krispy Kreme doughnut-branded line of Jelly Belly Jelly Beans was launched, available in a 2.8oz Jelly Belly Krispy Kreme Bag, a 7.5oz Jelly Belly Krispy Kreme Gift Bag and a 4.25oz Jelly Belly Gift Box. This collection includes novel flavors inspired by Krispy Kreme’s most popular doughnuts, such as Original Glazed and Strawberry Iced. Jelly Belly has partnered with NBCUniversal and Illumination’s 2017 Despicable Me 3 movie to create a special line of BeanBoozled Minion Edition items, available in a 1.9oz Grab & Go bag, 5.5oz Pouch Bag, 1.6oz Flip-top Box and 3.5oz Spinner Gift Box, with a planned extension for this fall of a 12.6oz Jumbo Gift Box. The special selection of BeanBoozled flavor pairings includes Bananas and Pencil Shavings, and one inspired by Despicable Me character Dr Nefario and his Fart Gun invention, called Sour Apple with Minion Fart. In separate news, ALFA Brands will be officially launching Hardy Cognac at the FDFA convention (Suite 2017). Dating back to 1863, Hardy Cognac is well known for its high quality and traditional production methods. This family house provides a range of five superior Cognac Collections. In addition, ALFA Brands will be launching Pals Socks, trail mixes from Werner Meat Snacks, new items from SNI Sourcing Network, new PEZ assortments, among other line extensions.

PILLITTERI

Breaking

the ice Americas Duty Free discovers why the Pillitteri name has become synonymous with Icewine in the duty free industry by

s you wind down Niagara Stone Road in the quaint little town of Niagara-onthe-Lake, Ontario, you are met with Pillitteri Estates Winery. At first glance, the winery presents itself as a contemporary, well-established building. However, the legacy of generations behind this winery explains why the Pillitteri name has become synonymous with Icewine in the duty free industry. Jeff Letvenuk, Marketing and Media Manager, takes pride in the fact that Pillitteri has a great presence in duty free. The company’s wines are carried in most land border stores, as well as a number of airports, airlines and cruise ships. Pillitteri’s primary focus is on Icewine, as its uniqueness to Canada symbolizes the country and its cold winters. “We think Icewine is Canada’s premium product. It’s something we want to share with the world and we think it’s very important to talk about and promote Icewine as a premium luxury product,“ explains Letvenuk. Icewine also plays into the culture of sharing and gifting, making it a prime purchase in duty free. Visitors to Canada seek out this one-of-a-kind wine as it shows cultural significance to the country they are visiting. “I think what makes it such a great gifting wine is the fact that it is unique. It’s something that you can’t find everywhere or anywhere. It’s something that, if you are traveling abroad and you want to bring back something from the country, is culturally significant, unique,” enthuses Letvenuk.

Catering to the Asian palate Pillitteri is proud of its Vidal Icewine, which is the most sought-after product

JAS RYAT

Pillitteri is behind the success of its Vidal Icewine, which is the most sought-after product in duty free

in duty free. Vidal Icewine is the flagship, followed by Riesling, Cabernet Sauvignon, and finally Cabernet Franc. Vidal Icewine represents what people identify as the flavor of Icewine. “It features rich flavors of honey and apricot. It is sweet to the palate, but not cloyingly sweet because the Vidal grape has acidity in it. This balances out, creating a silky, smooth and creamy mouth feel,” explains Letvenuk. Vidal Icewine retails at C$28-30 (US$22-24). Another wine that has shown huge success in duty free is Canadian Flower Icewine. This product is made slightly differently from the traditional Icewine, and is geared towards the Asian palate. It is sold on Air Canada and other transPacific flights to Asia. Canadian Flower Icewine is performing “exceptionally well” at border shops as well, catering to the frequent Asian tour bus visits, notes Letvenuk. Earlier this year, Pillitteri celebrated Canada’s 150th birthday by introducing the Canada 150 Late Harvest Collection. The collection is very similar to its popular Icewine but not as difficult to make, so it can be offered at a competitive price. The collection presents a range of different flavors that are similar to Icewine, offering buyers the same premium tastes they are familiar with. The Late Harvest Collection lends itself to the Canadian ideology as it is made in the cold winters. The Canada 150 Late Harvest Collection is doing very well, reports Letvenuk. The promotion started in July 2017, and will continue through to celebrate Canada’s 150th Christmas, finally coming to an end in July 2018. Millennials – the current buzzword of the industry – are “interesting shoppers”,

Pillitteri offers the Canadian Flower Icewine, which is popular amongst Asian tourists

as Letvenuk puts it. They like to interact with products, use social media, tweet and capture the perfect Instagram photo. Pillitteri is riding this social media wave as it has a number of campaigns to get people talking about its products. “On social media we have people talk about our wines, send us pictures of themselves using our products and then we also send them uses for our wines, because they don’t just want to buy a wine, they want to know the story behind it, have a connection, and learn about how to use the wine,” explains Letvenuk. As the Icewine market continues to rise in Canada, Pillitteri is set to continue its successful growth in duty free. This native Canadian wine shows no signs of freezing over. Pillitteri is represented by ALFA Brands for all duty free-related matters.

www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

NTERNATIONAL BRAND BUILDERS/MISAKI

IBBI showcases new and innovative brands Americas travel retail distributor International Brand Builders is bringing a variety of exciting brands to Montreal this year, including the revamped Misaki Monaco jewelry collection

IBBI adds Nici toys from Germany to its host of brands

Misaki’s strategic partnership with IBBI comes simultaneously with its 30th anniversary and will aim at developing the brand in travel retail Americas

nternational Brand Builders (IBBI) is presenting its new jewelry line, Misaki Monaco, at this year’s FDFA show in Montreal. The company recently struck a deal to represent the Monte Carlo-based brand in the Americas travel retail market. IBBI Brand Manager Stephanie Crone will be showcasing the new collections straight from the recent TFWA Exhibition in Cannes, where Misaki Monaco revealed its new travel retail concept and dedicated collection. Misaki Monaco offers unique, trendy designs with pearls. The company’s strategic partnership with IBBI comes simultaneously with its 30th anniversary and will aim at developing the brand in travel retail Americas. Created in 1987, Misaki is a luxury jewelry brand, specializing in cultured pearls and crafted glass pearl beads. Based in the Principality of Monaco, Misaki seeks to cleverly combine the beauty and perfection of pearls with original and modern designs. At the end of 2014, the brand was acquired by the Alteal Group, which is headquartered in France. Misaki has since modernized its image thanks to a fresh artistic direction. A new concept of collections was created, inspired by jazz music and dance. Far from the usual clichés surrounding classic pearl jewelry,

the brand now offers more contemporary and creative interpretations, highlighting a “new wave” pearl, inspired by Made in Monaco glamor and sophistication. Already present in over 30 countries, Misaki has understood how to create a strong image throughout the world. The brand has multiplied its solid partnerships in the travel retail sector with prestigious partners such as Lotte, Valiram, Eurotrade, Pavo and many others. The company is also present on many airlines, including Air France, Swiss, Lufthansa, China Airlines, Korean Air, Emirates, and Aeroflot. Once again, the brand returns to the Singapore Airlines inflight catalog as of September with two new products. Misaki continues to develop with store openings in the Middle East and in China, where it will open a new boutique. This opening will be the opportunity for customers to discover the all-new boutique concept of the brand as well as its new universe, which was presented exclusively at the TFWA fair in October. For its 30th anniversary, Misaki will unveil a fresh visual identity, with a new logotype “Misaki Monaco”. The brand aims to assert its core identity and experience by linking its image directly to that of its home country of Monaco, thus visibly marking and underlining its origins and allegiance with the Principality.

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2017

IBBI widens product portfolio for FDFA fair Helmed by Katherine Patch Sleipnes, IBBI focuses on the distribution of the jewelry/ watch category and is best known as Buckley London’s Americas sales partner. Apart from the new offerings from Misaki Monaco. IBBI is showcasing the new Spring/Summer 2018 collections from a number of brands. These include the Buckley London fashion jewelry brand, Lambretta watches, Obaku Denmark watches, and Baylis & Harding bath and body products. However, in an effort to showcase a variety of unique travel retail brands in the Canadian market, the company is bringing a selection of additional brands from the recent TFWA World Exhibition to Montreal. These include beauty medical devices from Beurer Germany (targeted at border stores), Nici toys from Germany, Morgan & Oates scarves from the UK, and Innovative Eyewear from Denm.

unlock OCCASIONS. unwrap SALES.

Coming Soon

2018 NEW ITEMS Gift purchasers are more likely to

Contact your Hershey business partner today for details.

spend more

43%

of Confectionery purchases are for a gift.*

and

trade up.* HersheysTravelRetail.com *Source: 2016 CIR Global Study

TURKEY HILL

Turkey Hill rides the sweet success of maple syrup

Amongst the various symbols that represent Canada, maple syrup lands very close to the top. The proof lies with Brian Herman, co-owner of Turkey Hill Sugar Bush, whose phone is ringing off the hook to re-stock the shelves of duty free stores. by

JAS RYAT

Turkey Hill Sugar Bush continues to offer a wide array of products like Maple Cream Cookies, Maple Chocolates, Teas and Coffee

mericas Duty Free had a chance to catch up with Herman during the Toronto Gift Fair where he attributed much of his recent success to the Canada 150 anniversary and the country’s evolving tourism. “We are riding a crest of tourism. Tourism is up substantially across Canada for all lot of different reasons-including the Canada 150 celebrations,” enthused Herman. Another major reason is the upswing in visitors from China. The Canadian government signed the Foreign Investment Promotion and Protection Agreement (FIPA) with China in 2014. One of the positive side effects of this treaty was an increase in travel retail from the Chinese tourist. “When the Canadian government signed the various treaty agreements with China about four years ago, it opened up the flood gates.” Herman explained that the Chinese gifting culture plays a huge role in why his duty free business is prospering, not necessarily the amount of tourists coming through duty free. “We run into situations where a tour bus comes and clears out the entire store. When they (duty free shops) phone up an order, our staff drops everything and tries to get everything to them in hours-not days.”

The maple leaf-shaped Maple Syrup bottle and Maple Cream Cookies continue to be top sellers, among the other products. In fact, the Maple Cream cookie has been the reigning champion for the last five years in the confectionery category at the Frontier Duty Free Association awards. This year Herman has decided to withdraw the Maple Cream Cookie and enter his Maple Leaf bottle. Turkey Hill continues to stay ahead of the curve by constantly offering new and innovative products. Herman has recently introduced the new maple syrup barrel tins. This unique cylinder tin is manufactured in a new way that eliminates warping of the cylinder. Another project Herman has been working on is an attractive clear plastic maple syrup container that allows customers to see the maple syrup and is in convenient travel bottle. Turkey Hill Sugar Bush products can be found in approximately 20 border shops across Canada. With maple syrup recently being in the spot light world wide as a super food- there are no signs of Herman slowing down. With 42 years under his belt, Herman stands behind his motto “There will always be a market for the very best.”

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2017

Turkey Hill Sugar Bush offers tourists some of the best maple syrup found in Canada

Brian Herman, co-owner of Turkey Hill Sugar Bush, stands behind his motto “There will always be a market for the very best”

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LIQUOR NEWS

Brown Forman launches new GTR exclusive After much anticipation, Brown-Forman Global Travel Retail finally unveiled its Jack Daniel’s Bottled In Bond Tennessee Whiskey during the 2017 TFWA World Exhibition in Cannes. Jack Daniel’s Bottled in Bond will be a permanent line extension in the Jack Daniel’s Family of Brands, and will be available in major airports and other international points of departure and arrival around the world. This launch comes on the 120th anniversary of the United States Congress passing the Bottled In Bond Act in 1897 – an act that ensures American whiskey is made to certain standards as a consumer-protective measure. The new Jack Daniel’s Bottled In Bond Tennessee whiskey is a tribute to the transformative era of American whiskey making in the late 1890s, when Jack Daniel’s began bottling his Tennessee whiskey. Whiskey in the 1800s was not standardized, so producers created a hodgepodge of sub-par, counterfeit and even dangerous spirits. Whiskey drinkers weren’t necessarily sure of what exactly they were drinking or being served. To bring a high level of safety and consistency to American whiskies, the United States Congress passed the Bottled In Bond Act, which certified the quality of whiskey carrying that designation. It had to be aged at least four years and bottled at 100 proof at one distillery during a single season. The Bottled In Bond Act was passed in 1897, and Mr. Jack Daniel bad already began putting his Tennessee Whiskey in the now-familiar square bottle in two years earlier in 1895. In her first visit to TFWA in Cannes, Lynne Tolley, the great-grandniece of Jack Daniel and a legendary fixture at the Jack Daniel’s Distillery since 1980, hosted tastings of Jack Daniel’s Bottled In Bond. She also shared stories and anecdotes about her illustrious kin and life in Lynchburg, Tennessee – the source of every drop of Jack Daniel’s in the world. Jack Daniel’s Bottled In Bond will begin shipping in the summer of 2018.

For 2018, Patrón is launching its third special edition collector’s tin celebrating the brand’s Mexican heritage

The fourth in Patrón’s series of special edition collector’s tins created for Chinese New Year, this one celebrates the upcoming Year of the Dog

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2017

With this new GTR-exclusive release, Brown Forman and Jack Daniel’s celebrate 120 years since the US Congress passed the Bottled in Bond Act

Patrón launches two new travel retail-exclusive collectors’ tins In 2012, Patrón launched its first special edition collectors’ tin, to celebrate London. After the phenomenal success of this collectors’ edition, the company has continued to release these artist-designed tins, celebrating places and events. In 2018 Patrón is offering two variations: one celebrating Patrón’s Mexican heritage and one celebrating the Chinese Year of the Dog. Each tin contains a 1L-bottle of ultra-premium Patrón Silver tequila. These will be offered exclusively to travel retail.

LIQUOR NEWS

William Grant’s experiments At TFWA in Cannes this year, William Grant held an afternoon event dedicated to launching some interesting and experimental whiskies in duty free. The Glenfiddich Experimental Series was introduced to Global Travel Retail after an initial domestic launch. Celebrating the brand’s passion for pushing Scotch whisky boundaries and collaborating with trailblazers beyond the world of whisky, the Experimental series launched with two initial releases: the Glenfiddich IPA Experiment and Project XX (pronounced “twenty”). The Glenfiddich IPA Experiment marks the world’s first single malt Scotch whisky finished in India Pale Ale (IPA) craft beer casks. Glenfiddich Malt Master Brian Kinsman created the Glenfiddich IPA Experiment in collaboration with a local Speyside craft brewer, who shares a passion for innovative flavours. They worked together to create a zesty IPA that would season the whisky casks. For Project XX, Kinsman invited 20 whisky experts from 16 countries around the world, to explore and each select a cask from a warehouse at the Glenfiddich Distillery. The experts, from the US, Canada, France, Germany, Taiwan, China, South East Asia, Ukraine, Brazil, England, Scotland, Mexico, The Netherlands, South Korea, Russia and South Africa, descended onto Dufftown to take part in this global experiment. Each of these 20 selections, chosen from some of the most unusual whiskies in Glenfiddich’s unrivalled stocks, went into the final liquid, skilfully produced by Kinsman. Not to be outdone by its Scottish cousin, Tullamore D.E.W. also released an innovative variant during the busiest global travel retail event of the year: Tullamore D.E.W. XO Caribbean Rum Cask Finish. Starting with the original triple distilled, triple blend, triple wood matured Irish whiskey, Tullamore D.E.W. is then finished in first-fill XO Caribbean rum casks, developing a smoothly satisfying flavour with layers of sweetness and tropical notes. This creation was inspired by the Irish role in the early development of rum in the Caribbean. In the 16th and 17th centuries more than 50,000 Irish emigrants arrived in the “West Indies,” where it is believed their experience of whiskey distilling became blended with local expertise, playing an instrumental role in the inception and growth of the Caribbean rum business.

Over the past year Stoli has introduced a number of new items to its portfolio; the latest is the soon-launching Cenote range of super-premium tequilas

Not to be outdone by its Scottish cousins, Tullamore D.E.W. released an Irish whisky finished in a unique cask, inspired by the Irish history in the Caribbean

Stoli launches new tequila At an event hosted by Stoli’s two new executives, Global CEO Hugue Pietrini and International Marketing Director Frances Gaillard, the company announced that it had created a new super-premium tequila range called Cenote. This will be on shelves beginning in the first quarter of 2018. Stoli Group will handle all distribution, sales and marketing for the brand, which is being produced at Fabrica de Tequilos Finos, located at the foot of Tequila Hill, in Jalisco, under the supervision of master distiller Arturo Fuentes. Initially, the line will offer Blanco, Reposado and Añejo expressions: Cenote Tequila Blanco mellows for three weeks before bottling. Cenote’s Añejo expression is aged in singleuse American oak bourbon barrels, while the Reposado is aged in French oak casks. Cenote Tequila takes its name from the spectacular limestone cenotes that are scattered through Mexico’s Yucatán Peninsula, which were considered by the Mayans to be “windows to the underworlds,” inhabited by gods and goddesses. www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

QUESTIONNAIRE

ALL ABOUT

Elizabeth Taylor, President of Premier Global Trading, Inc Where were you born and raised? Born and raised in New Jersey. I grew up in Reeveytown. A town named after my paternal family and Asbury Park, the epicenter of the music experience for the 70s and 80s and still relevant today! If you attended post-secondary school, what did you study? I took Business and Accounting. Currently, I take seminars and participate in workshops for anything from staying up-to-date in new technologies to keeping my business and managerial skills current. Are you married? Do you have children? Not married. No children. What is your favorite movie? Brigadoon with Cyd Charisse and Gene Kelly. What is the last book you read? Just reread Don’t Stop the Carnival by Herman Wouk. What would you choose as your last meal? Lobster and Champagne!

Your favourite drink? Dom Perignon. I love champagne! Or Coca Cola.

Do you have a passion in your life (or more than one)? What? My companies, both past and present. Currently Premier Global Trading. Passionate about my business and working in the DF/TR industry! Do you have a pet (or more than one)? If so, what animal and name? I’m a dog person, but my last pet was Ola, an all black cat who I loved and adored. Do you prefer country or city? It doesn’t matter to me as long as I am near an international airport.

What is your favourite place to vacation? Always new places/countries. I enjoy looking thru-out my home at all the things I have collected over the years from various places around the world from artwork to Christmas tree ornaments. What’s the first thing you do in a new place? Scout out the local haunts.

If you could choose any place in the world to live, where would it be? Paris.

Which living person do you most admire? I have been fortunate to have very positive role models (non-family). Irene Rubin, Ann DeStefano, Rosario Marfatia and Nora Reider-Ambrossini.

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2017

They all have been instrumental in influencing my career and who I am today. I have the upmost respect and admiration for each of them. Which historical figure do you most admire? Rosa Parks – she reacted out of a basic need and changed the country, possibly even the world! Where and when were you happiest in your life? When I lived in St. Thomas, USVI as a young woman just starting my career path. Very exciting times! What in the world would you most like to change? Prejudice of all kinds.

What about yourself would you most like to change? Still lots I want to do. Change nothing. What is the most important piece of advice anyone ever gave you? To trust myself and I can do anything I set my mind to. (Key family members are strong role models and have exceptional life stories and legacies!) What is something about you that most people would find surprising? I love skydiving but am actually terrified of heights. It’s a faceyour-fears thing.

32nd Annual 32e Congrès Convention annuelle Canada’s Exclusive Duty Free Convention

Congrès exclusive de l’association hors taxes du Canada