FDFA 2015
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2015-11-09
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DUTYFREEMAGAZINE.CA NOVEMBER 2015 · FDFA· VOL 25 · NO 5
IGL completes major renovation & expansion p. 6
Laurie Karson talks future p. 10 Innovating in Ontario p. 12 The case for rebranding Duty Free Canada p. 18
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LETTER FROM THE EDITOR
NOVEMBER 2015 · FDFA· VOL 25 · NO 5
The Americas Duty Free & Travel Retailing magazine (ISSN 0962-0699) is published five times a year March, 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 2015, Vol 25. No. 5. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2015 Global Marketing Company Ltd.
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 Ryan White ryan@globalmarketingcom.ca ART DIRECTOR Jessica Hearn jessica@globalmarketingcom.ca CONTRIBUTORS Mary Jane Pittilla
Exciting
times T
he year 2015 has been challenging for the travel retail industry throughout much of the world, as political and economic unrest has affected countries as far flung as Argentina and Brazil in the west to Russia in the east. The Canadian dollar, which had been so high in recent years, dropped quite rapidly, so far getting comfortable in the .70 to .75 USD range. According to retailers such as Justin Guay of Importations Guay Ltée, this has not hurt our land border business—quite the opposite, in fact. Canadians heading to the US make sure to shop before encountering a 25-30% price jump as soon as they cross the border, and US travelers are making good use of the exchange rate. A solid marketing plan is necessary if you want to increase sales. At last year’s FDFA Conference and Trade Show in Toronto, a comprehensive new marketing initiative was launched, one that enveloped all land border crossings and rolled out this year. The Mars Agency recognized and addressed what sometimes prevents people from shopping at border stores and also tackled branding; since all stores are independently owned, branding was inconsistent. In this issue, we see how these and other initiatives played out. Also announced last year was a training program; the first 37 students will soon receive their certification. This makes for an exciting time for travel retail on the Canada/US border, and that fact will be both lauded and utilized at this year’s FDFA Convention and Trade Show, celebrating the organization’s 30th anniversary in beautiful Vancouver. We at Americas Duty Free hope you have an enjoyable and successful show.
ADVERTISING SALES ADVERTISING & MARKETING EXECUTIVE Jacqueline Hammill jacqueline@dutyfreemagazine.ca CIRCULATION & SUBSCRIPTION MANAGER accounts@globalmarketingcom.ca
Kindest Regards,
Wendy Morley Senior Editor wendy@dutyfreemagazine.ca
www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING
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CONTENTS
What’s inside
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LEAD STORIES 6 Top story: Importations Guay Ltée A STATE-OF-THEART SHOWCASE
Family-owned operator Importations Guay Ltée is embarking on an exciting new phase of its history as it completes a major renovation and expansion of its IGL Duty Free flagship in Quebec
10 FDFA: Laurie Karson NEW HORIZONS
The FDFA and its members have seen a number of initiatives this year, with more coming. Combined with increased US visitors and a new federal government, this means the organization and its members will be attacking from all angles
22 34
12 Retailer News: Peace Bridge Duty Free INNOVATING IN ONTARIO
Peace Bridge Duty Free launches two innovative initiatives for cross-border travelers
14 Retailer News: West Coast Duty Free THE SPICE OF LIFE
West Coast Duty Free educates IndoCanadians on the benefits of shopping duty free through regular radio appearances on Spice Radio 1200AM
16 Retailer News: Sault Ste. Marie Duty Free THE SKY’S THE LIMIT
Sault Ste. Marie Duty Free enjoys a stellar year with a new store, a strong social media presence and, most importantly, big plans for the future
18 Marketing: The Mars Agency THE CASE FOR REBRANDING DUTY FREE CANADA
When the FDFA hired The Mars Agency to look at marketing initiatives, no one was talking about a new logo. Here, guest writer Jan Ferguson explains how it came about
10 FEATURES ALFA Brands seals deals A social media sensation The power of daily ritual
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Liquor news October on the Riviera Questionnaire: IGL’s Justin Guay
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TOP STORY: IMPORTATIONS GUAY LTÉE
The wine section has been emphasized within the alcohol category as red wine has seen strong sales, driven by collectors and connoisseurs from New York City
Scotch whisky has witnessed a sales uplift at IGL Duty Free, with Diageo-owned Johnnie Walker a best-selling brand
A state-of-the-art
showcase by
MARY JANE PITTILLA
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mportations Guay Ltée (IGL) has a thriving Canadian land border shop on the Quebec/US border – and the best is yet to come, following a complete refurbishment and expansion of its flagship IGL Duty Free store. The dynamic family-owned company, founded in 1983 and headed by Pierre Guay as President and his son Justin Guay as Vice President, also operates two other duty free border shops in Quebec: Stanstead (set to be refurbished in the coming year) and Stanhope. But it is the IGL Duty Free shop located on Highway 15 and 87 at the Lacolle/Champlain border crossing in St. Bernard-de-Lacolle, Quebec, that is their jewel in the crown. The store is situated on the direct access route from Montréal to New York City and is accessible to cars, buses and trucks. The surrounding area and highway to the store is relatively quiet, says Justin Guay, so the company advertises with signage on the highway to attract customers. This, along with other clever marketing tactics, has paid dividends. Speaking to Americas Duty Free at the TFWA World Exhibition in October, where he was scouting for new products and meeting his many suppliers, Guay explained that IGL decided to complete an expansion after some categories, most notably skincare and fragrance, saw significant growth in recent years. The entire shop, including the warehouse, has been increased in size and refurbished in its entirety. Planning began early 2014 and the company began the renovation during the winter months of 2014. “Everything has changed, all floors, ceilings, back walls, restrooms, etc,” says Guay. The entire expansion project was on course to be completed in late October 2015. The sales floor has been enlarged by approximately 25%, and the warehouse by about 20%. The sales floor is 1,485 square meters and the entire shop including warehouse and office space is now an impressive 1,950 square meters. Staff numbers have increased by about 10% with the expansion. “We have not planned a grand opening, only business as usual,” says Guay, who goes on to pay tribute to his loyal and dedicated staff. “The store has remained open through the entire renovation process thanks to the extra effort of our sales staff, 6
AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2015
Family-owned operator Importations Guay Ltée is embarking on an exciting new phase of its history as it completes a major renovation and expansion of its IGL Duty Free flagship in Quebec
who have done nothing but an outstanding job of helping customers and working around the many changes on the sales floor during this time. I am very proud of the team we have at IGL.”
Personalized product displays Turning to the shop floor itself, he says: “We have personalized as much as possible. The most significant changes are in fragrance and skincare. Our wine section and Scotch section were both emphasized within the alcohol category as red wine and Scotch have seen the strongest sales. We have also specifically concentrated on our travel items such as luggage.” Guay is very upbeat about the impact the revamp will have on sales. The store now has an “airport look and feel” and is “more of a destination” for travelers. “We expect very specific results,” he adds. “Despite having 1,000 SKUS of alcohol in-store, we expect Scotch sales to increase with this expansion. Our clientele has been seeking rare and valuable bottles,” he notes, listing Balvenie 50YO, Glenfiddich 40YO and Glenfiddich Vintages 1975 and 1977 that are now on display in the world-class shop. The Balvenie 50YO will retail at C$49,000 – a significant savings from the US$44,000 available in Chicago, according to Guay. “We also expect to gain higher levels of Asian tour traffic as the Chinese and Korean group leaders have been requesting high-end skincare brands such as La Mer, which we are now very proud to offer.” Once the retail revamp is complete, IGL expects its top brands to be Estée Lauder, La Mer, Dior, Bacardi, Glenfiddich and Johnnie Walker. The operator’s main consumers are Canadians, who make up approximately 65% of its clientele, with 30% Americans. “Travelers driving to the US have shopping in mind,” asserts Guay. And, although they make up a small percentage of total customers, the Asians’ average spends are “very high” (also see sidebar on Asian spending habits). “With the exchange rate around 30%, we have seen a higher level of American traffic while also enjoying a higher spend by
Following the retail revamp of IGL Duty Free’s store at St. Bernard-de-Lacolle, Quebec, the company expects Estée Lauder to be among its top brands
Skincare and fragrance has undergone the biggest expansion of all the product categories, and is the fastest-growing, with a 5% upswing in sales seen in 2015 versus last year
Canadian travelers taking advantage of our pricing before going to the United States.” The average spend blended between American and Canadian customers is C$68.
Successful promotions In terms of promotions, IGL has been running a Bacardi and Coke summer promotion which has seen “significant” sales increases, says Guay. “We also run many price savings promotions. The products which have excelled under promotion are a Canadian gin called Ungava, Grey Goose and Kraken Rum.” IGL has also run successful mix-and-match promotions on red wine and Diageo brands. Gifts-with-purchase are one of the best ways to promote products, adds Guay. Skincare and fragrance has undergone the biggest expansion of all the categories, and is the fastest-growing. Among the bestselling brands in skincare and fragrance are Bobbi Brown Cosmetics and La Mer. IGL has seen a 5% upswing in the category’s sales versus last year. Estée Lauder is the number one brand, particularly Advanced Night Repair, and La Mer. Asian tour groups, namely the Chinese, request Advanced Night Repair, while the Koreans want La Mer. Turning to liquor, Guay says the company carries some 1,000 SKUS and offers many specialist products. “We stock lot of
specialist products as we have many collectors visiting our store. There are also several ‘bling bling’ customers who live in New York City, and they want very rare items. We privately order these products through the Liquor Board.” The largest categories are whiskies and red wines. The trend has shifted to brown spirits from white spirits, driven by the New York City-based customers. In the large wine department, French and Italian red wines sell well. In addition, IGL orders Bottega wines from Italy privately through the Liquor Board. Tobacco products, including cigars, are a fairly large category but generally flat in terms of sales performance, observes Guay.
Canadian brands prove a big draw Clothing is a very strong performer, with high quality embroidered Canadian-branded destination items selling well. The fact that the store carries many Canadian destination brands attracts increased traffic numbers. Michel Germain Parfum’s Sexual fragrance, another Canadian brand, is also a popular product. In the food and confectionery category, IGL carries popular brands such as Jelly Belly, and Canadian smoked salmon. Turkey Hill maple syrup, a Canadian brand, is another strong seller.
“We have personalized [our store] as much as possible. The most significant changes are in fragrance and skincare. Our wine section and Scotch section were both emphasized within the alcohol category as red wine and Scotch have seen the strongest sales. We have also specifically concentrated on our travel items such as luggage.” JUSTIN GUAY, VICE PRESIDENT, IMPORTATIONS GUAY LTÉE
www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING
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TOP STORY: IMPORTATIONS GUAY LTÉE IGL Duty Free has listed high-end skincare brands such as La Mer, as the Chinese and Korean tour group leaders have been requesting such upscale beauty products
The liquor department carries some 1,000 skus and offers many specialist products, which are privately ordered through the Liquor Board
IGL has an in-store café and is in the process of changing it to a branded outlet. “We’re looking for a branded café that people will recognize. It will help the duty free [sales] as they’ll stop if they see a coffee brand they know,” says Guay. Turning to marketing, IGL has revamped its store website (www.igldutyfree.com) with links to Facebook and Instagram social media sites. The Frontier Duty Free Association website (www.dutyfreecanada.com) links to IGL’s site via a map that pinpoints the country’s land border duty free shops, giving the store exposure to potential visitors. But it’s the company’s own website that plays a major role in its marketing strategy. The website has a dual purpose, explains Guay: first, it educates consumers about duty free allowances and customs regulations, and second, it communicates sales promotions and lists what’s on sale, including duty free sizes and pricing information. Consumers are not currently able to order from the website but a pre-order system is planned for 2016. IGL’s operations are conveniently located near two US airports, which are cheaper to fly from for Canadians, says Guay. Burlington Airport in Vermont (BTV) is situated one hour and
15 minutes from the border, and serves airlines such as Delta, United, Jet Blue and US Airways Express, while Plattsburgh International Airport (PBG) in NY is 25 minutes from the border, serving Allegiant Air, Spirit Airlines and Pen Air. Information about these two airports is included in IGL’s comprehensive store flyer. The flyer – carrying the marketing tagline “Do Better at the Border” – also highlights the Burlington ferry service, which takes passengers from Plattsburgh to Grand Isle, Vermont. The high Canadian/US dollar exchange rate of 25% has spiked in the last four months to 35%, resulting in Americans purchasing more and Canadians traveling and spending to take advantage of the keen prices at the border. However, as IGL buys in US dollars, the company has to be more “creative” with its suppliers as it must price-match products on-shelf, he adds. Guay, who also sits on the FDFA Board of Directors, believes that one of his main competitors is Costco, the American membership-only warehouse club that provides a wide selection of merchandise, including top-of-the-range branded fragrances. But with the store renovation complete, IGL is in the best position to give the US giant a run for its money.
IGL Duty Free gets a boost from high-spending Asians Asian tour groups visit Canada to see popular sites such as Niagara Falls and stop at IGL’s Quebec shop in St-Bernardde-Lacolle on the way back to New York City to catch the plane home, as it is one of the last stops. Although they make up a small percentage of total customers, the Asians’ average spends are “very high,” says Guay. Koreans, for example, spend around C$95 on average, and with some 30 people on a bus, the tills are ringing. Each busload boasts a few Asians who spend over C$1,000, depending on the enthusiasm of the tour guide, notes Guay. The main draw for Asians is Canadian products such as icewine, notably Peller Estates, which IGL offers at the lowest price in Canada and is its best-selling Canadian brand overall. In the cosmetics category, the Chinese opt for Advanced Night Repair, making it a best-selling item in the category overall, while the Koreans want La Mer.
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AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2015
The Chinese, in particular, opt for top-end Cognacs, such as XO qualities and above, as well as special editions, so IGL is bringing in higher end versions to cater for this demand, though he notes that it is difficult to find many such Cognacs. Koreans, meanwhile, want Ballantine’s Scotch whisky. Luggage is also a popular category, as Asian tour groups are on their last shopping trip before flying home. “They like our prices and brands,” says Guay, citing the Samsonite range, which retails from C$120 to C$350. “Our customers want higher end items, and we want to have more luxury handbags. We want to expand this category and carry a better selection.” Guay has also seen demand for vitamin pills, and accordingly the store stocks bee pollen and branded vitamins. In addition, IGL recently added Chinese and Korean translations to its store marketing flyers in a further bid to target these key nationalities.
FDFA: LAURIE KARSON
New
Horizons The FDFA and its members have seen a number of initiatives this year, with more coming. Combined with increased US visitors and a new federal government, this means the organization and its members will be attacking from all angles by
WENDY MORLEY
Beautiful Vancouver is the location for this year’s FDFA Convention and Trade Show, celebrating the organization’s 30th anniversary
T
he Frontier Duty Free Association (FDFA) has had a busy and successful 2015, and 2016 shows signs of being even busier and more successful, for the organization and for its members. This year brought some changes. The FDFA’s marketing agency, The Mars Agency, from Toronto, produced a cohesive national rebranding: “Do Better at the Border,” with a new logo and website. “Our goal is still to ensure that consumers understand the value of shopping at Canadian land border duty free stores, while providing an easy consumer access to our store’s own websites,” says Laurie Karson, Executive Director of FDFA. “The agency also helped us revamp our website to reflect a more user-friendly and mobile-friendly experience for the consumer.” The FDFA spent a great deal of time and effort on the Road TRIP lobbying initiative, which—although unfortunately 10
not approved in the federal budget—is far from dead. A new government brings new challenges but, as is always the case, also new opportunities. This and other plans and initiatives will be discussed at 2015’s FDFA Convention and Trade Show, as Karson states in the interview below. Q: What will be the focus of the convention this year? A: The theme this year is Sea to Sky, celebrating the beauty of Vancouver in addition to recognizing our 30th anniversary milestone. In our operator meeting, we will be focusing on government relations: Establishing new political relationships, Road TRIP, the employee certification program, meeting with CBSA to discuss future improvements of our industry and how our stores operate. We will also be discussing the national marketing program and our marketing focus for 2016, especially in light of more US visitors
AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2015
coming to Canada—how do we capitalize on this? Q: You had mentioned that there are more operators/buyers attending this year. Can you give an idea of the numbers? A: The representation for duty free stores overall (land border and airport) is up 15% from last year. Our registration for the land border operator/buyers is up 4% over last year, however the airport buyers are down 18%. The reduced attendance of airport buyers is attributed to the location. Q: What are the benefits to holding the convention in Vancouver? A: The FDFA is a national organization. We have six stores in Vancouver in addition to several airport member stores in BC. We wanted to recognize our west coast duty free presence and it is a great place to do so, especially in light of our
30th anniversary. When we completed our last multi-year hotel contract for the convention, we decided to go back to our schedule whereby we chose an Ontario location every second year. In 2017 the convention will take place at the Westin Montreal and of course this year in Vancouver. Q: Canada has a new government and a new minister. You’ve just spent the past 1 ½ years or so working with Maxime Bernier on Road TRIP. How will the new government affect your efforts in the coming year on this? Is it back to square one, or do you feel you have enough background now you can hit the ground running? A: It will be important for us to re-establish federal government relationships and ensure that they know who we are as an industry, including our importance to the national economy, the stores’ importance to their border communities and the local economies. So yes, there is a lot of work to be done both from the FDFA office and for our individual members to establish and create political relationships on a local level since many MPs have changed. This is critical to our industry. We are very pleased that there is a Ministry of Small Business and Tourism, however. Some had speculated before the cabinet announcement that the tourism/ small business portfolio would be held by a parliamentary secretary, as it was many years ago. The Prime Minister has clearly recognized the importance of Small Business and Tourism by creating a ministry, and this is very good news. For Road TRIP, our key position and the mechanics of the proposal remain the same, so in that sense, we know the file better than ever and are even more passionate than ever about seeing it approved in the Federal Budget.
this, the Retail Council of Canada (RCC) will send them a survey to assess any errors and recommendations for changes for both the online study modules and the test itself. Once this has been done and any changes made, the program goes live. This will occur in early January 2016. Most of the pilot members are managers in the stores. This is excellent, since they are the ones teaching new employees about the program and recommending it. At that point we will start thinking about what topic we would like to see for training for 2016. As an example, this might be something like a general liquor information training program.
Q: This is FDFA’s 30th anniversary. Any exciting things you have planned specifically for this? A: We will be recognizing the anniversary in a short video at the gala, and certainly our logo this year reflects the 30-year anniversary. Q: Anything else you’d like to add? A: We are very excited to be hosting this event once again in Vancouver, as it has been so many years since we have been in BC for this event. It’s such a worldclass city and a beautiful hotel. We hope everyone has a productive and amazing show seeing old friends and establishing new business!
FDFA Executive Director Laurie Karson and her staff will have their hands full over the next year, with new initiatives and a new government
Q: At last year’s convention a new certification program was discussed. This program has indeed been created, and the first 37 people currently are undergoing the training in a pilot program. When will this be completed? Have you had any feedback? Are these 37 people from across the country, or a certain region? When does the next phase begin? A: Yes, we have 37 employees in 11 stores that signed up for the complimentary employee certification program, which will be completed on November 27. After www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING
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RETAILER NEWS: PEACE BRIDGE DUTY FREE
Innovating in
Ontario by
RYAN WHITE
Peace Bridge Duty Free launches two innovative initiatives for cross-border travelers
Peace Bridge Duty Free’s Freeway magazine has proven to be a hit with consumers, and as part of a recent initiative was distributed alongside the LCBO’s Food & Drink magazine
P
Grimsby Gateway Travel Center, which is the number one rest stop destination for travelers entering the Niagara region. “The space available was previously operated by Niagara Tourism and then the Partnership of Niagara, both of whom decided not to renew their lease with Grimsby Gateway given to financial restraints,” explains Gates. “We approached the Travel Center with the idea of Peace Bridge Duty Free taking over the lease for four months during the busy summer travel season. The landlords were thrilled that we were willing to provide the travel and information services that were lacking in the area.” With signage on the QEW categorizing this Grimsby location as a travel and information center, it was imperative someone be there to manage these requests or all the highway signage would have to be removed. Since there is no off-the-highway travel information location between Toronto and Niagara, the Center is a key source for people traveling to Niagara and BONNIE GATES, across the border. PEACE BRIDGE DUTY FREE MARKETING MANAGER,
eace Bridge Duty Free recently implemented two new initiatives aimed at educating travelers about duty free and spreading the word about the quality products that the operator has on offer. Bonnie Gates, Marketing Manager at Peace Bridge Duty Free, tells us they are always looking for new opportunities to provide information to cross-border travelers about the benefits of shopping duty free. With limited access to signage and billboard along the Queen Elizabeth Way (QEW) highway, Peace Bridge Duty Free rented a space at
“The [magazine] focused on highlighting products from different commodities in our store, showing potential customers items not always associated with duty free and therefore giving them a new reason to stop in.”
ON WHY FREEWAY MAGAZINE IS SO SUCCESSFUL
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AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2015
Moving in “We moved into the Grimsby Gateway Travel Center prior to the long weekend in May with duty free staff as well as previous Niagara Tourism staff who could assist us with giving the proper travel information to the customers,” says Jim Pearce, General Manager of Peace Bridge Duty Free. “We kept the Center open seven days a week for 10 hours a day.” The Center is stocked with brochures from all over the Niagara Region that contain information on Wine Country, Niagara Falls, Biking Trails, Accommodations and much more. Peace Bridge Duty Free added poster information on duty free information and exemptions for both Canadian and US travelers. The operator took the brochure information one step further and provided a map-making service to help customers get to their destinations. “This service was particularly well received by travelers stopping in as it is nice to have a friendly face who is familiar with the area lead you in the right direction,” Gates says. From May 15–September 8 Peace Bridge Duty Free averaged over 350 people visiting the Center each day. “On some weekends over 700 people would look to us for assistance,” Jim Pearce adds. “This validated the need to provide travel and information services to tourist and travelers visiting Niagara and crossing borders. We truly felt this initiative helped ease the stress of traveling and crossing the border by providing a necessary service to people. “Education and information about duty free shopping in Canada was certainly a focus and we did this with exemption information and showcases that showed a variety of the merchandise found at duty free shops,” Pearce continues. “Although 75% of the people were traveling within Canada to the Niagara region, we truly believed making duty free information available to travelers made them more confident when crossing the border, whether on a current trip or a future trip.”
Food & Drink
spirits and beer for more than 20 years. The publication’s stellar reputation prompted Peace Bridge Duty Free to commit to two full-page ads in Food & Drink during 2015. And the reach was significant: Food & Drink has a circulation of 510,000 English copies through more than 630 LCBO stores across Ontario, with 874,000 readers just in the Toronto area. The readership covers the exact demographic of sought-after duty free customers who are interested in the products Peace Bridge Duty Free carries. What’s more, these readers have the income range to travel on a regular basis.
Freeway “To further achieve our goals of showcasing more than just premium spirits, we also highlighted the most sought-after luxury and exclusive products that duty free has to offer through our own modified version of the Food & Drink magazine, which we called Freeway – The Magazine of Peace Bridge Duty Free,” Pearce says. “This eight-page publication illustrated the vast range of products and services we offer, and provided valuable information to those not familiar with land border duty free shopping.” “The creative focused on highlighting products from different commodities in our store, showing potential customers items not always associated with duty free and therefore giving them a new reason to stop in,” adds Gates. “Each edition of Freeway also had information on discount tickets and travel packages available at Peace Bridge Duty Free that they may not have been familiar with but gave them new options for travel to the USA.” Peace Bridge Duty Free worked closely with suppliers to choose new and exclusive products that its customers would be interested in. With an image and a brief description of each, the operator gave readers valuable information on products new to its duty free shop—products that in some cases couldn’t be found at the LCBO or regular retail stores. Peace Bridge Duty Free took things one step further for the traditionally busy holiday season. In support of its full page ad in the summer and holiday editions of the LCBO Food and Drink, the operator had its magazine inserted into polybags for distribution alongside Food & Drink. “The exposure we received from this insertion was extremely positive and successful,” Pearce says. “The success and positive feedback has encouraged us to continue with this marketing initiative and grow Freeway magazine into a familiar and sought-after publication, not only within the Food & Drink magazine, but also instore and at other distribution points,” Pearce added.
As mentioned, Peace Bridge Duty Free also undertook a recent initiative in collaboration with the LCBO. “This past year we looked at all the potential opportunities to reach those interested in the wide scope of duty free products available and see how we could get the best message out in the most professional matter,” Gates explains. “After evaluating programs, costs and opportunities, we realized that the LCBO Food and Drink magazine spoke directly to the demographic we were trying to reach.” Food & Drink has been dedicated to the art of entertaining inspiring JIM PEARCE, readers with tempting PEACE BRIDGE DUTY FREE GENERAL MANAGER, recipes and the latest ON OPENING A TEMPORARY INFORMATION STAND information on wine, AT GRIMSBY GATEWAY TRAVEL CENTER
“Education and information about duty free shopping in Canada was certainly a focus and we did this with exemption information and showcases that showed a variety of the merchandise found at duty free shops.”
www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING
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RETAILER NEWS: WEST COAST DUTY FREE
The
SPICE of
LIFE West Coast Duty Free educates Indo-Canadians on the benefits of shopping duty free through regular radio appearances on Spice Radio 1200AM by
RYAN WHITE
W
est Coast Duty Free has devised a novel way to educate Indo-Canadians as to the benefit of shopping duty free when crossing the border. Prior to long weekends, West Coast employee Nicky Dosanjh has been appearing on Spice Radio 1200AM on the “Gup Shup with Shushma Show,” which airs from 8 am to 10 am. “There are over 250,000 Indo-Canadians in the greater Vancouver community, including Vancouver Island and from the US border up to Whistler,” explains Len Dasilva, COO at West Coast Duty Free. “This is a great opportunity to educate and inform them of the benefits of shopping duty free. Nicky goes on air and talks about how it works in a 30-minute chit chat segment about our store and crossing the border.” Other topics covered in Dosanjh’s appearances include CCRA regulations, allowances and duties, and products, promotions and specials. Dasilva notes that Nicky’s appearances have been a great success, with Spice Radio encouraging her to come back to
An industry veteran Nicky Dosanjh is an Indo-Canadian mother of two who was born in Scotland. Nicky started at West Coast Duty Free in 2001 after working over 10 years with Heritage Duty Free at the Douglas border crossing. She is a 20-plus year duty free veteran, currently in a management position with extensive knowledge of all duty free operations. Nicky presents very confidently on radio, speaking fluently in both English and Punjabi with a charming Scottish accent.
repeat her live segments prior to each Canadian long weekend. “We have supported Nicky’s appearances on Spice Radio with social media via our Facebook page and Twitter account, encouraging all our followers to tune in,” he adds.
Spicing things up “Gup Shup” means “a casual chat; gossip,” and Spice Radio offers a range of programming geared toward the South Asian cultural group. Spice differentiates itself and bridges communities through a range of first-ever programming—popular program styles that adapt to an ethnic format. With the strongest signal among all the South Asian radio stations in the GVRD, Spice Radio is heard from the Lower Mainland to Vancouver Island and from the US border up to Whistler. Shushma Datt, known as “the first lady of Canadian radio,” is recognized as a pioneer for establishing a South Asian presence in Canada’s broadcast industry, and is further distinguished as the first Canadian woman awarded a license to operate a radio station by the CRTC. She holds the Order of British Colombia as well as the Queen’s Diamond Jubilee Medal.
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AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2015
RETAILER NEWS: SAULT STE. MARIE DUTY FREE
The sky’s THE LIMIT Sault Ste. Marie Duty Free enjoys a stellar year with a new store, a strong social media presence and, most importantly, big plans for the future Sault Ste. Marie Duty Free’s new 650-square-meter store
I
t has been an exciting year for Sault Ste. Marie Duty Free given the completion of its new 650-square-meter building. The demolition of the old duty free building will make way for the new Canadian traffic and commercial building. Construction is underway and the project will be completed in two years’ time. “The old store was hard to beat for visibility as it was right at the entrance of the bridge plaza; however, this at times could be detrimental because the entrance to the store came too quickly for travelers as they passed,” says Willie Deplonty, Sales Supervisor/Buyer. “We are now housed 300 feet from the old building, more onto the plaza proper. This gives customers ample time to decide to stop in and lets them more clearly see the entrance.” The new location of the store also allows Sault Ste. Marie Duty Free to merchandise a digital sign, as well as an exterior advertising wall and inserts, to showcase products and advertise specials. The new open concept of the store allows for better flow of customer traffic throughout the space and gives a clear view of the entire retail area. “The strategic lighting in the store highlights our vast product assortment,” notes Deplonty. “We are now able to carry a larger inventory that can be merchandised properly. This is extremely important given the now increased traffic from US customers.”
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Sault Ste. Marie Duty Free’s product assortment includes beer, spirits, tobacco, confectionary and many other traditional duty free categories
The new store carries a wide variety of products across traditional duty free categories, including beer, spirits, perfume, tobacco, jewelry, handbags, souvenirs, clothing and confectionery. In true Canadian fashion, the store goes the extra mile and offers shoppers additional services, including travel information, currency exchange and free coffee.
Social butterfly Despite all the challenges that come with opening a new store, Sault Ste. Marie hasn’t stopped innovating. The operator took the plunge into social media by starting its own Facebook page this past summer. “We are thrilled with the results so far,” Deplonty says. “Our strategy is to take advantage of the free advertising that Facebook offers and have fun while doing it. We’re increasing our overall exposure and sharing knowledge about duty free in general.” The operator already has a respectable number of followers and posts regularly to the page—content includes everything from products and allowance information
AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2015
to contests and recipes. An added bonus is that Sault Ste. Marie uses the feedback it receives on Facebook to determine what shoppers want to see more of. Additionally, social media has proven to be an excellent way of showcasing the new store.
Doing it better As part of its adventures in social media, Sault Ste. Marie Duty Free has also introduced the new country wide slogan “Do better at the border,” developed to communicate the benefits of shopping duty free. The operator printed shirts with the slogan, and staff and summer students wore them on Fridays. Finally, this winter Sault Ste. Marie Duty Free will have an even stronger presence on the internet with a new website that is currently in development. “Our anniversary is coming up on November 11, and it’s a great time to take stock and realize how lucky we are to have a beautiful new store to showcase our products and services,” Deplonty concludes. “But this is just the beginning; we look forward to many more years of doing it better at the border!”
MARKETING: THE MARS AGENCY
The Case for
JAN FERGUSON, VP Client Leadership, The Mars Agency
Rebranding by
Duty Free Canada
When the FDFA hired The Mars Agency to look at marketing initiatives, no one was talking about a new logo. Here, guest writer Jan Ferguson explains how it came about
I
n the fall of 2014, The Frontier Duty Free Association tasked The Mars Agency Canada with developing the strategic marketing plan for Duty Free Canada. At that point, developing a new logo was not on the table. So how did the rebranding come about? “Whenever we take on a new client, we take a phased approach,” says Derek Joynt, SVP/GM, The Mars Agency. “Phase One is Discovery and Diligence. This helps us to formulate an engagement strategy that is based on whole-person insights as opposed to data. This strategy delivers relevant and compelling buying experiences that connect a brand to their target.”
Action plan It was during this Phase the agency realized the logo with its tagline of “It’s Better at the Border” was passive in nature, and did not push travellers and shoppers to change their current behavior. The strategic plan was designed to deliver brand experiences that drove demand-led growth through awareness, engagement, conversion and advocacy. We understood
that our role was to recommend the right mechanisms at the right time with the right message to influence how people behave with the brand. In this case, we thought the logo and messaging should be refreshed. “Do Better at the Border” is both an action and the promise of a return. When a traveler visits a land border duty free store, they will do better, achieving better savings, product selection and customer service.
Refreshed and reflective The look and feel of the logo was evolved to be more current and reflective of the brand offering. The rendering of the maple leaf is natural and organic looking, depicting an inviting and familiar atmosphere. The bar underneath the leaf symbolizes the idea of a border crossing, as well as the lane divider on the highway that leads here, from the north or from the south. The new logo and tagline were introduced to the public via the refreshed dutyfreecanada.com website, which is
The new logo is both a call to action and a promise to travelers. The goal is to integrate this into all land border stores’ marketing in order to bring recognition and unity across the country
Importations Guay Ltée has incorporated elements of the new logo into all its media, including business cards, name tags, letterhead and marketing material
DutyFreeCanada.com was redesigned to be more user friendly, more mobile friendly and to present Canada’s land border stores in a unified, inviting and informative manner
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AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2015
Making Friends Since 1834 FINEST SCOTCH WHISKY Lauder’s Scotch Whisky first appeared in 1834. The original blend was developed by the Glasgow merchant Archibald Lauder soon after the distilling of whisky was made legal in 1815 and Lauder’s has changed little since it was first produced over 175 years ago in Glasgow, Scotland.
www.macduffint.co.uk
MARKETING: THE MARS AGENCY
At Sault Ste. Marie Duty Free Store, the logo has been integrated into price tags, allowance information sheets, and has even been printed on a t-shirt
itself a reflection of what the brand has to offer at each store—great savings, tremendous product selection and relevant information—in a more aspirational format than the previous site. We know that shoppers today are going online first to gather their information, so we really wanted the new site to be reflective of the experience they will have instore. If all we wanted to do was to provide customs allowances or border wait times we would have approached the task differently, but we knew it was bigger than that and required us to look further down the road to where we wanted duty free to go.
Integrated identity Individual stores are beginning to integrate the new logo and tagline into their marketing initiatives. Emerson (Manitoba), Sault Ste. Marie (Ontario), and IGL (Quebec) duty free stores have united elements of the Duty Free Canada logo with their own logos and other media such as their websites, store collateral and social media feeds such as Facebook and Twitter.
Receptive and well educated As we develop more and more marketing initiatives that continue to drive the overarching brand promise of Duty Free Canada, we believe that more stores will begin to integrate the new tagline, new logo and new positioning within their own marketing plans, and most important, that this can help them achieve more business. I like to remember what one store operator told me in the Discovery and Diligence Phase: “I don’t need you to get more people to cross the border— I need you to get more people to turn into my parking lot and come into my store.” “Travelers understand how to shop 20
The Mars Agency helped FDFA members hold a contest through the busy summer season that was very successful. The contest helped combat a common reason people don’t shop in the land border stores: lack of understanding of rules and regulations. Note that the new logo is used on the poster
duty free when traveling via air, but we found there was a lack of understanding with Canadians traveling through the border by car that we needed to address.” says Joynt “In developing a strong and recognizable brand that is consistent from coast to coast, we help travelers to associate this logo with the promise that they, in fact, Do Better at the Border. And it is this consistency that is crucial to the success—
AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2015
so no matter where you connect and engage with Duty Free Canada, you will have the same interface with the brand, be it on our website, Facebook page or Twitter feed.” A strong brand with a strong promise coupled with a strong offering in-store can only add up to a better brand experience for travellers at Land Border Duty Free stores across Canada.
Importing and Transportation Management Specialists PROVIDING COMPLETE AND INNOVATIVE SOLUTIONS
We have over 30 years experience in the Canadian duty free market and a commitment to excellence. BILSI staff are experts in Canada Customs regulations, transportation management and 3rd party logistics. Our mission is to provide our clients with the highest level of customer service covering their shipments to and within Canada and the USA.
F O R M O R E I N F O R M AT I O N C O N TAC T U S AT 9 0 5 . 6 0 6 . 2 2 2 2 | I N F O @ B I L S I .C O M W W W. B I L S I . C O M
ALFA BRANDS
Sencha Naturals supplies mints made with green tea
A miscellany of delights Leading US-based duty free agent ALFA Brands has sealed new distribution deals in the run-up to the FDFA convention, where many novelties will be on show
Jewelry brand NISHI Pearls has recently appointed ALFA Brands as duty free/ travel retail agent for North America
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S
ince last year’s Frontier Duty Free Association show, ALFA Brands hasn’t stood still. The well-established North American duty free agent has struck a number of additional distribution agreements this year as it prepares to attend Canada’s premier land border store event. Recently, ALFA Brands was appointed the duty free/travel retail agent for NISHI Pearls, an international jewelry brand with offices in Hong Kong, Montreal and the US. NISHI Pearls’ international team of award-winning designers are dedicated to creating collections to satisfy both fashion-forward and classic customers. The genuine, cultured, freshwater pearls are available in a range of sizes, natural colors, and striking shapes. Keen to explore new ventures, NISHI Pearls has collaborated with Maple Leaf Diamonds, which provides high quality diamonds from the Canadian Arctic, and partnered with leading professionals in the industry, such as its latest co-branding endeavor with Austrian crystal specialist Swarovski. Commenting on the new deal, ALFA Brands President Franco Gabriele said: “We are honored for having been selected by Nishi Pearls to be their duty free/travel retail agent in North America, and we are thrilled about this very exciting partnership.” Amy Hildreth, ALFA Brands Operations Manager, added: “NISHI Pearls will
AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2015
enhance and enrich our portfolio, and we are eager to present these beautiful pearls to all our long-time and loyal customers.” In a further new development, ALFA Brands has been appointed the exclusive duty free/travel retail agent for Salem Baking Company for North America. Salem Baking Company, based in Winston-Salem, North Carolina, is a leading provider of premium gourmet baked goods. Since 1930, Salem Baking Company has been cultivating the tradition of Old World Moravian baking using timehonored recipes and the most coveted ingredients from around the world. The company specializes in distinctive products that celebrate pure and cherished flavors. Artisanal product lines include Moravian Cookies, Cheese Straws, Cheese Biscuits, Shortbread Cookies, and Delightfully Thin & Crispy Cookies. “Salem Baking Company is well recognized in the South East and I am excited to introduce this artisanal line into the travel retail channels. Salem Baking Company products are all natural with no trans fats and they also have a line of gluten-free cookies that appeal to many consumers.” said the enthused Hildreth. In digital news, ALFA Brands has updated its website (www.alfadutyfree. com) with a fresh look and feel, streamlined navigation, links to detailed information about its many and varied clients, and extensive client testimonials.
ALFA BRANDS
The company is now getting set to launch a range of new products at the upcoming Frontier Duty Free Association Convention in Vancouver, Canada from November 15 to 18. Visitors can see the following novelties at ALFA Brands’ Suite 924 at the Westin Bayshore. New from PEZ Candy are the My Little Pony and Transformers dispensers. The My Little Pony range comprises Fluttershy, Rainbow Dash, Twilight Sparkle, and Pinkie Pie all available May 2016. Meanwhile, Sencha Naturals supplies mints made with green tea to help conquer bad breath naturally. Green Tea Mints are naturally sugar-free, and sweetened with coconut granules. Packaged in biodegradable Eco Tubes, they are available in Original, Turmeric Ginger, Cardamom Cinnamon, Basil Citrus and Sage Peppermint flavors. They are vegan, gluten-free, non-GMO, kosher, and naturally sugar-free. A new flavor, Cherry Blossom, has been added to Sencha Naturals’ Green Tea Mints made with whole leaf green tea. The classic canister is described as perfect for mints on the go, and the pack can be reused, re-purposed, or re-filled. Also part of the range, Green Tea + C is an organic,
Salem Baking Company is a leading provider of premium gourmet baked goods
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Pillitteri Estates Winery’s Vidal 2012 Reserve Icewine
whole leaf green tea from artisan growers in the Shizuoka region of Japan, which joins forces with vitamin C-rich Acerola cherry, and a traditional immune support blend of ginger, turmeric, and orange peel. The product is said to provide daily wellness from real food ingredients, not synthetic vitamins. Also new in the Sencha Naturals line-up are Green Tea Lattes, described as a creamy and vegan organic green tea, containing unrefined coconut sugar, and coconut oil. The line is available in Original, Tropical Mango, and Bombay Chai flavors. Also on display at the FDFA convention will be Pillitteri Estates Winery’s new products. The company introduced a fresh marketing program with its new Carretto series Icewine at the 2015 IAADFS Duty Free Show of the Americas and now has distribution in the Canadian land border
AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2015
duty free stores. The program has been very successful in all stores and it has achieved a sales increase of 360% in some outlets, the company reports. This duty free exclusive icewine was created to offer a new premium icewine for the value-conscious consumer, and the collection is billed as celebrating the beautiful yet harsh winters of Canada. Described as rich and lush, these awardwinning icewines feature flavors of honey, apricot, peach and pear. They are available in single bottles, three-packs, four-packs and six-packs. Pillitteri Estates Winery also partnered with Godiva Chocolatier in July 2015 in a chocolate pairing promotion at the International Shoppes store in New York JFK International Airport. Pillitteri featured its Vidal 2012 Reserve Icewine in conjunction with the Tourbillon Praline, Coeur Blanc and Volupte Lait Godiva chocolates. “The pairing was so successful we will be repeating it at Boston Logan Airport November 2015,” says the firm. Meanwhile, Colio Estate Wines has introduced two new summer flavors: Girls’ Night Out Coconut Lime Calypso, which has flavors of piña colada and lime zest, and Girls’ Night Out Peach Raspberry Rumba, with flavors of candied raspberry and sweet, ripe peaches. They are billed as a refreshing, fruity, lighter alcohol flavoured wine, and join the existing flavors Sangria, Tropical Tango, Strawberry Samba, Citrusberry Twist and Darkberry Duet. Visitors to the FDFA convention will also be able to see freshwater pearl jewelry from NISHI Pearls, and gourmet baked goods from Salem Baking Company at the ALFA suite 924.
2015 30 Annual Convention 30e Convention annuelle th
“Canada’s Exclusive Duty Free Convention”
November 15 – 18 | 15 – 18 Novembre Westin Bayshore, Vancouver, BC, Canada
www.fdfa.ca
ESTEE LAUDER: IRENE KIM
A social media
sensation
Korean-born Irene Kim is Estee Lauder’s Global Beauty Contributer
I
rene Kim is passionate about sharing her take on fashion and beauty with her fast-growing Korean and global social media following. Raised in both the US and South Korea, her interest in fashion and beauty began when she was a student at New York’s Fashion Institute of Technology. Dubbed by Women’s Wear Daily (WWD) as fashion’s It girl, Irene hosts popular South Korean fashion and beauty television programs in both English and Korean, including K-Style. She has starred in K-pop videos, and has been photographed globally for her multi-colored hair and distinctive street style. Fusing Eastern and Western beauty tips and techniques, Irene has quickly become an influential beauty voice to an Asian and international audience across her social media platforms. In July 2015, Irene was named Global Beauty Contributor for Estée Lauder, where she will create beauty content for the US brand’s online and social media platforms. Q: What’s your definition of beauty? When did you first become interested in it? A: Beauty is confidence and how you carry yourself. It’s really about finding something you love and making it your own. The first time I became aware of it was when I decided to cut my own bangs with a pair of scissors when I was
26
Korean-born model, social media star and TV personality Irene Kim has been snapped up by Estée Lauder to create beauty content for the brand’s online and social media platforms
four! Back then I also used to play in my grandmother’s lipstick drawer. She had the best colors. Q: Who was your first beauty crush? A: The Spice Girls! Q: Who are your beauty icons now? A: I love Charlotte Gainsbourg. She has this ease about her and it doesn’t seem like she tries too hard. Makeup-wise, Kate Moss will always be my favorite. From her iconic cat eye to a sexy red lip, she just pulls everything off with class. Q: Could you talk us through your dayto-day routine? We know that good skin is important to you. A: Skin is incredibly important to me because I’ve always had sensitive skin, so I’m always on the hunt for any soothing remedy. I like to keep my steps simple though, because I feel like too much won’t let my skin breathe. I keep it to five steps: cleansing, toning, essence, moisturizing and sun-blocking. In the morning, I simply wash my face with water instead of cleansing. Q: What about makeup? A: I love playing around with makeup but my everyday look tends to be more natural, with healthy-looking skin, mascara and a lip tint. For special occasions, I like a cat eye or a pop lip color.
AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2015
Q: You travel all the time for Fashion Weeks around the world; what are your must-haves on the plane? A: A facial mist, my eye cream and moisturizer and an eye mask! Q: Everyone is going crazy over Korean beauty products at the moment. Any personal favorites? A: I love all the lip tints, BB creams and sheet masks. There are actually so many products that I’m trying a new one every week! Q: K-Pop! We have to know, who are your favorites? A: My current favorite is Sistar—they are one of the hottest girl groups in Korea right now! Their style, makeup, dance moves and music always hit the top of the charts. And of course there are my friends in the business, Amber from f(X) as well as members from Miss A and SNSD (Girls’ Generation). Korean hip-hop and R&B are also very hot right now and there are so many talented musicians. Q: And finally, if you could take a selfie with anyone you haven’t met yet who would it be with and why? A: Karl Lagerfeld! He’s just beyond.
VERY SEXY EAU DE PARFUM
BEAUTY: REVLON
The power of
daily ritual US beauty group Revlon has created a short film by First Kiss Director Tatia Pilieva to demonstrate the power of makeup to enhance women’s love lives
P
erforming a simple daily makeup ritual can enhance a woman’s emotional state and expand her openness to love and romance, according to a new study by US beauty company Revlon and Fordham University. The results of the ritual were so dramatic that Revlon commissioned award-winning Pulse Films director Tatia Pilieva, whose credits include First Kiss, to demonstrate the ritual’s effectiveness in a short film, Love Test, featuring nine women of all ages and walks of life. Revlon partnered with researchers at Fordham University to create the Revlon Love Study, which measured how women – and their partners — reacted after a period of conducting a simple daily ritual, such as using a favorite fragrance or applying makeup. Conducted on hundreds of women, the study findings were powerful, with 97% of participants reporting a significant positive change in them within the first week of adopting the ritual. “Rituals can be powerful – performing them can actually change the way you feel,” said Tracy Rohrbaugh, Vice President, Marketing at Revlon. “Taking the time each day to appreciate yourself,
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especially what makes you unique, is a simple but effective way to create positive energy. This daily ritual can manifest more kindness, more affection, more flirting, and more love. Initiating this virtuous cycle helps the doer to both give and receive more love.”
Love is contagious Women in the Revlon Love Study were asked to keep a journal to record the changes they felt after just four days following the ritual: 71% reported an increased desire for romance, 69% were more open to finding love, 77% felt more outgoing and social, and 74% said they were more likely to flirt. The study also found that love is contagious. After the Revlon Love Test, partners were more likely to reciprocate in acts of romance. And 85% of the women in the study noticed a positive change in how others reacted to them, noting an increase in compliments from their partner or date (65%), and more than half (56%) confirming that others flirted with them more frequently. By simply performing various actions in a specific order over time, women could alter their mood and outlook,
AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2015
the study found. The Revlon Love Test showed that women experienced a positive change after including the ritual in their daily routines and proves women are empowered to improve their love lives with a simple shift in mindset. To inspire women worldwide to try the Revlon Love Test for themselves, Revlon collaborated with award-winning director Tatia Pilieva and Mediacom to create Love Test, an inspiring film that portrays eight real-life couples and gauges their reaction to the ritual. In the video, each couple discusses the vulnerabilities, insecurities and joys of romance, both before and after beginning the Revlon Love Test. The Revlon Love Study set out to explore the social and psychological impact of a beauty ritual on a participant’s romantic relationships. The qualitative and quantitative research was conducted by Fordham University in October and November 2014. A series of six ethnographies were conducting among 28 women, ages 21-43, with diverse backgrounds and ethnicities in Chicago and Rochester, while a nationally representative online panel of 710 women who wear makeup were taken through the same process. In both instances, the women were surveyed before and after integrating the Revlon ritual into their daily routines for a minimum of four days. The new film is part of Revlon’s new Love Is On marketing campaign, which aims to celebrate couples, spread love and raise millions of dollars for charities in a Million Dollar Challenge initiative.
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LIQUOR NEWS
Lucky Canada
Patrón and Lalique: beautiful collaboration Luxurious tequila has now been married with exquisite crystal in an exclusive collaboration to create the limited edition Patrón en Lalique: Serie 1. This special series is limited to 500 bottles worldwide. Extra añejo tequila is exceedingly rare, and this tequila is remarkable; aged for at least four years in a combination of new American oak and new and used French oak barrels to achieve the right balance of agave and oak notes and creating the unique color. The design of the decanter, handmade by Lalique’s master artisans, was inspired by Mexico’s famous Weber Blue Agave plant, the foundation of tequila. The amber-colored crystal bottle stopper is shaped to represent the piña, the heart of the agave, which is roasted, pressed and fermented. Lalique’s signature technique of contrasting clear and frosted crystal finishes showcase and enhance the unique amber color of the tequila, created by blending the oldest and rarest Patrón tequilas, hand-selected from Patrón’s barrel aging room at the Hacienda Patrón distillery in the hills of Jalisco, Mexico. This creation is the latest extension of Patrón’s “Art of Patrón” platform, described as “a unique collection of experiences that reflects artists’ uncompromising commitment to their craft.” This is the first time Lalique has collaborated with a tequila brand and the first time Patrón has worked with a crystal maker to reimagine its classic bottle. Each of the 500 individually numbered and hand-polished bottles of Patrón en Lalique: Serie 1 is placed inside a handmade leather display case, elegantly adorned with gemstone detail. A leather-bound book and video that document the historic collaboration are also included. Patrón en Lalique: Serie 1 (750ml) will retail for US $7,500 at fine spirits retailers and in select duty free stores.
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AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2015
Drawing on centuries-old traditions, the Ruffino family’s winery was created nearly 140 years ago. Within just a few years, the winery collected its first gold medal and its reputation has only grown since then. In 1998, Gabriele Tucconi began working at Ruffino and is now chief winemaker for the company. “Everyone at Ruffino is proud to represent the unmistakable Ruffino style of elegant wines known around the world,” says Tucconi. “We all desire to carry on the high standards that have been set in the past.” Ruffino Modus Toscana is proof that those high standards are indeed being met. A luscious, round, full-bodied, opulent wine, this Super Tuscan blend of Sangiovese, Cabernet Sauvignon and Merlot hits all the right notes. Replete with flavors of ripe, rich blackberries, cherries, plum and leather, Ruffino Modus is a winelover’s dream and a perfect gift for a collector. This wine has never been available in travel retail in Canada, but that is now changing. Vancouver is the site for the county’s first duty free listing, but there will undoubtedly be more. American visitors will be especially happy to be able to pick it off the shelf before heading back across the border. Ruffino Modus is excellent for drinking right away or for putting into the cellar for a few more years. In fact, it’s a good idea to pick up two bottles, one to enjoy and one to save – if you can manage not to open it.
Americans will be especially pleased to find this exquisite wine in Canadian duty free stores
LIQUOR NEWS
Jameson introduces the Deconstructed Series Jameson Irish whiskey, well known throughout the world, has just launched its first-ever travel retail-exclusive range. The three super-premium whiskeys were officially presented at TFWA WE in Cannes, with a spectacular party and tasting event. As its name suggests, the Jameson Deconstructed Series deconstructs the key notes that make up Jameson’s famous taste, and uses them as the base for three new whiskeys: Bold, Lively and Round. Bold is influenced by pot still whiskey. Initially sweet and creamy with an abundance of soft fruits, the taste evolves as the pot still spices develop, to bring a perfect balance of rich barley notes and mellow baked apple. This is an intense, flavorful whiskey. Lively, influenced by grain whiskey, offers an elegant floral taste combined with a citrus lightness. Its soft taste reminiscent of turkish delight combines with citrus to balance the sweetness. A little chili oil brings a prickle of spice to the mouth. Round, influenced by the wood contribution, is a balance of rich and plump charred tones. A perfect harmony of sweet vanilla fusing with soft ripe fruit and rich pot still spices on a firm foundation of toasted oak. By highlighting the three key notes, Jameson Master Distiller Brian Nation has amplified the whiskey’s individual characteristics in each of the three new expressions, creating new taste experiences that are at once familiar and unfamiliar, potentially creating brand new favorites for long-time Jameson aficionados and a new taste experience for all.
The inspired tasting of the Jameson Deconstructed Series at TFWA WE in Cannes highlighted the different flavor notes of each expression
The rare PORT ELLEN™ 33 Years Old has become one of the most exclusive and sought after Single Malts in the world today
Diageo unveils three rare single malts, two exclusive to travel retail Recently, Diageo Global Travel and Middle East (GTME) unveiled three new exclusive single malts, all single cask releases perfect for collectors of the finest single malts.. Two are travel retail exclusives, Port Ellen 33YO and Cragganmore 43YO. Royal Lochnagar 36YO will be available mainly in GTR, with a small number of bottles available outside the channel. ROYAL LOCHNAGAR™ 36 YEARS OLD is one of the oldest crafted by the original distillery. Only 174 bottles were produced. This1978 single malt pays homage to the robustness and vibrancy of former years. This whisky, which was granted a Royal Warrant in 1848, has a distinctive Highland profile, deep, rich character and an abundance of fruit and spice. RSP US$5,550 PORT ELLEN™ 33 YEARS OLD. Whiskies from this distillery, closed in 1983, have become among the most sought after in the world today. This well-structured, oncein-a-lifetime island malt is robust and complex, an intensely smooth, sweet-centered whisky, with gentle spice notes. Only 210 bottles exist. RSP US$7,020 CRAGGANMORE™ 43 YEARS OLD. Just 474 bottles of this whisky were produced. This unusually spicy single malt has great depth, a long, dry finish and pleasingly charred warmth. Diageo believes this to be the oldest distillation to be released by Cragganmore as a single malt. RSP US$3,800.
www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING
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TFWA WE REVIEW
October on the Riviera Despite the devastating and tragic floods that hit the city mere days before hand, Cannes was beautifully ready for the thousands of duty free professionals in time for TFWA World Exhibition 2015
Guests enjoyed Le Premium Evening with exciting entertainment provided by Cirque Eloise, from Montréal
PHOTOS COURTESY OF TFWA
“T
here has been a tremendous buzz around the exhibition this year in spite of the difficulties prior to the event both in Cannes itself and in the industry as a whole,” commented Erik Juul-Mortensen, TFWA President. “The fact that TFWA World Exhibition & Conference opened on schedule just two weeks after the appalling flooding in the city, with virtually all facilities in the Palais des Festivals and at our other venues provided as planned, is testament to the hard work and commitment of all our partners in the city. “The slight reduction in the total number of visitors compared with last year’s record figure bears witness to the difficult economic and geopolitical climate in the world today. However, I am delighted to report that our key visitor category—landlords, duty free & travel retail operators—was extremely well represented with a 2% increase in delegates and 4% rise in the number of companies over 2014. Agents and distributors also arrived in greater numbers than last year, which is very pleasing.” A total of 6,558 visitors from 3,026 companies attended TFWA World Exhibition & Conference 2015, which ran from Sunday 18 to Friday 23, October, compared with 6,701 visitors (-2%) from 3,105 companies (-3%) last year. Of the total, 2,183 people (33%) were key buyers—duty free & travel retail operators and landlords of airports, airlines, ferry, cruise, border and downtown concerns—up +2% on the previous year’s figure of 2,132, from 643 companies vs 618 in 2014 (+4%). Adding the 2,401 agents and distributors (1,145 companies) to this figure produces a total of 4,584 (1,788 companies) of the most influential trade executives in the industry who were present at this year’s event. On the 21,500-square-meter trade floor were 482 exhibitors (475 in 2014), including eight luxury yachts in the Harbour Village, 48 of the exhibitors were new or returning after an absence. 32
AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2015
Cutting the ribbon Monday morning to officially open TFWA’s 31st World Exhibition
Between them they showcased thousands of products in the fragrances & cosmetics, wines & spirits, fashion & accessories, jewelry & watches, confectionery & fine food, gifts & electronics and tobacco categories. The TFWA World Conference, which set the scene on Monday 18 October, attracted 1,504 delegates, who were rewarded for their early start with thought-provoking analysis of the current business environment from the three speakers—Rudy Giuliani, former New York Mayor, Peter Long, CEO TUI Group and Erik Juul-Mortensen, President TFWA—under the watchful eye of moderator Stephen Sackur, BBC HARDtalk. 145 delegates turned out at first light on Tuesday 20 for the Market Watch Workshop on South Korea, 169 attended the Inflight Focus workshop on Wednesday and nearly 90 stayed on after a busy day at the show that evening for the first-ever TFWA Research Workshop.
Peter Long, Joint CEO of TUI Group was the first keynote speaker Monday morning
New York City’s former mayor Rudy Giuliani was the final keynote speaker of Monday morning’s conference
The cocktail party on Sunday evening at the Carlton Hotel was well attended
While overall attendance was down slightly and despite challenges in much of the world, buyer and retailer attendance was up, and most vendors were very pleased with the business environment
Networking is always a priority at this annual summit for the global duty free & travel retail industry. In spite of the rain, 140 sporty delegates took part in the TFWA Charity Run on Sunday 18, each of whom donated €15(US$16) to the good causes supported by TFWA Care. The charitable Heinemann/Estée Lauder Golf Tournament was keenly contested by nearly 100 players and, across the city, 87 delegates defended their honor in the annual TFWA Petanque Tournament. Nearly 2,000 guests donned party attire for the ever-popular Welcoming Cocktail at the Carlton Hotel on Sunday evening with fabulous fireworks organized by the City of Cannes. The Scene, after-hours venue at La Gare Maritime, was packed with revellers each weekday evening, chatting and dancing to music mixed by some of the best DJs on the Côte d’Azur. The dazzling climax of the social agenda for over 1,000 guests was Le Premium Evening at Port Canto on Thursday 22nd with
an elegant “Cucina Pop” dinner prepared by award-winning chef Davide Oldani and a scintillating acrobatic display by the Cirque Eloize from Montreal. At the closing press conference, Erik Juul-Mortensen was delighted on behalf of TFWA Care to present to M. Christophe Visentin, Founding Director, and M. Bernard Brochand, Deputy & Honorary President of SAMU SOCIAL, which provides assistance to homeless people, funds that will be used to purchase a service vehicle. The van will replace one originally purchased by TFWA ten years ago, which was destroyed in the recent flooding. Erik Juul-Mortensen concluded, “TFWA is pleased to report that the 31st TFWA World Exhibition & Conference has been completed successfully. Initial feedback from visitors and exhibitors has been very positive and we will endeavour to rectify any issues which have come to light in time for next year. We look forward to meeting colleagues at our next industry event, the MEADFA Conference in Jordan, on 23 and 24 November.” The drizzly chill in the air couldn’t stop the runners from getting out and supporting TFWA Cares on Sunday morning
QUESTIONNAIRE
ALL ABOUT Justin Guay, Vice President, Importations Guay Ltée Where were you born and raised? I was born and raised in Montreal, Canada. If you attended post-secondary school, what did you study? I first graduated from the University of Ottawa in Business Administration and Social Studies. My second step was The Cordon Bleu Paris where I became a chef in both French Cuisine and Pastry with a concentration in chocolaterie. Are you married? Do you have children? I have been single almost my entire life, never married and no children. What is your favorite movie? My favorite movie is: Le Fabuleux Destin d’Amélie Poulain.
What is the last book you read? A Short History of Nearly Everything by Bill Bryson. What would you choose as your last meal? Seafood tower. That’s definitely what I would ask for especially if I had it all to myself. Your favourite drink? Half apple juice and half sparkling water with a light touch of mint. Do you have a passion in your life (or more than one)? What? My passion is in pushing my own limits and self-improvement. I love to participate in Ironman triathlons: you are entirely by yourself and against yourself.
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Do you have a pet (or more than one)? If so, what animal and name? I rescued a Doberman named Ashton. And with this type of background is just about the closest companion you can find. Do you prefer country or city? I prefer the city.
What is your favorite place to vacation? My favorite vacation place is the Andaz Maui at Wailea, Hawaii. What’s the first thing you do in a new place? When I arrive in a new city I immediately try to memorize the public transit maps. This way I always have a general idea of where I am. If you could choose any place in the world to live, where would it be? I believe that Vancouver is the nicest city we have in Canada. It is very often rated in the top three places to live in the world. Which living person do you most admire? I most admire Neil deGrasse Tyson. He currently works at the Hayden Planetarium and has many television appearances. He makes learning fun. Which historical figure do you most admire? Walt Disney is one of the most innovative figures we have seen in recent history. He created the imaginer and told us ‘If you can dream it, you can do it.’
AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER 2015
Where and when were you happiest in your life? I am happiest when I am on the ground volunteering in third world countries. I’m currently helping with streetheartshaiti.org. I feel that my visits to Cap-HaÏtien are valued and that the information and ideas I share are invaluable to them. What in the world would you most like to change? The world needs more engineers and more inventors. Humanity spends too much time arguing with itself rather than solving problems and advancing our technology. What about yourself would you most like to change? I am always trying to learn more. I wish that I had more time to learn music and other similar things. What is the most important piece of advice anyone ever gave you? You have the same amount of hours in a day as Beyonce. What is something about you that most people would find surprising? I have never had a drink in my entire life. Most people do not believe me but it’s true. I attend product tastings and events but I have never actually consumed alcohol. No reason actually.
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