Ing lés y
TFWA WE 2018
es pa ño l
DUTYFREEMAGAZINE.CA OCTOBER 2018· TFWA WE · VOL 28 · NO 3
AN OUT OF THIS WORLD EXPERIENCE IN CANNES Come visit our Mazaya stand - Yellow Village, H53 from October 1st to October 5th at the TFWA World Exhibition & Conference Palais des Festivals and chill on our Yacht Princess Iluka. We are waiting for you at the marina for an exceptional experience full of flavours!
Delay in start-up of Brazilian side border stores p. 16 Payne reveals changes to 2019 Summit of the Americas p. 34 London Supply gives back through golf tournament p. 40
WHEN NETS CANâ€™T
WE TURN THEM INTO
SUNGLASSES THAT CAN.
VISIT US DURING TFWA CANNES: Le Tube 10 Rue Florian, Cannes, 06400 France 21:30 5th Oct 2018
Weâ€™re joining forces with Bureo and fisherman to recycle discarded nets into high-performance sunglasses. To learn more, go to CostaDelMar.com/UntangleOurOceans
Letter from the Editor
North & South L
atin America is an especially important region for the travel retail industry, and in 2018 that continues to be the case. After years of discussions and a fanfareinfused announcement earlier this year that Brazil’s government had finally endorsed a plan to allow duty free stores at the border, the plans have once again ground to a halt as elections have forced the issue to a backburner. While this has undoubtedly caused a temporary sigh of relief from retailers at the other side of Brazil’s border, the shops are probably coming in 2019. ASUTIL and others have insisted that the coming of these shops is not a negative, as long as the playing fields are equal. The organization has been hard at work ensuring that this is the case, by helping to increase the amount Brazilians are able to take across the border, for example. But that positive attitude is not universal. Brazilians have been the main clientele for these shops for years, and the ability for them to get similar deals without crossing the border could send strong ripples not just to the stores but also to neighboring border communities. Duty free in the region continues to grow. At the junction of North and South America lies one of the most duty free-friendly countries, Panama, home of Motta Internacional. The travel retailer is preparing to open its store at local Tocumen Airport’s new terminal, set to open in the first quarter of 2019. Motta recently renovated its store in T1, welcoming the first customers in May of this year. ASUTIL together with IAADFS now turn their focus to the second joint Summit of the Americas. The event will continue to take place in Orlando, although the venue has changed. IAADFS President Michael Payne says they have made good progress in a number of areas after listening to feedback from the first Summit. Please enjoy reading about all these stories and more in our TFWA WE edition of Americas Duty Free & Travel Retailing. We wish you a successful show and an even more successful year ahead. Kindest Regards,
Hibah Noor Editor-in-Chief email@example.com
4 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
OCTOBER 2018· TFWA WE · VOL 28 · NO 3 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. October 2018, Vol 28. No. 3. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2018 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 firstname.lastname@example.org EDITORIAL DEPARTMENT EDITOR-IN-CHIEF Hibah Noor email@example.com ASSOCIATE EDITOR Jas Ryat firstname.lastname@example.org ADVERTISING AND MARKETING MANAGER Kevin Greene email@example.com ART DIRECTOR Jessica Hearn firstname.lastname@example.org CONTRIBUTORS Mary Jane Pittilla Ronnie Lovler Wendy Morley
CIRCULATION & SUBSCRIPTION MANAGER email@example.com
DISCOUNTED STAND PACKAGES FOR NEW EXHIBITORS
Exhibit at the leading global event for travel catering, onboard retail and passenger comfort Donâ€™t miss the opportunity to showcase your products to over 800 airline & rail operator buyers, generate sales leads, increase brand awareness and network with 4,000 onboard professionals.
Book your stand today Call Amy Francis +44 (0)20 8910 7805 worldtravelcateringexpo.com/contact-us Co-Located with:
Letter from the Editor
Norte y Sur A
mérica Latina es una región especialmente importante para la industria minorista de viajes, una realidad que sigue manifestándose en el 2018. Al cabo de años de negociaciones, y el anuncio a bombo y platillo dado a conocer este año, con referencia a que el gobierno de Brasil había dado finalmente su apoyo a un plan para permitir la existencia de tiendas duty free en la frontera, el proyecto han vuelto a estancarse, porque las elecciones han relegado el tema a un segundo plano. Si bien, indudablemente, esto provocó un suspiro temporal de alivio en los minoristas al otro lado de la frontera de Brasil, las tiendas se harían realidad probablemente en el 2019. ASUTIL y otras instituciones han insistido en que la llegada de estas tiendas no es un factor negativo, siempre y cuando haya igualdad de condiciones para todos. La organización se ha esforzado arduamente en garantizar que así sea, contribuyendo, por ejemplo, al incremento de la cantidad de dinero que pueden llevar los brasileños al otro lado de la frontera. Pero tal actitud positiva no es universal. Los brasileños han sido la principal clientela de estas tiendas durante años, y la posibilidad de que pudieran lograr los mismos beneficios sin cruzar la frontera podría tener serias consecuencias, no solo para las tiendas, sino también para las comunidades fronterizas vecinas. La operación duty free sigue creciendo en la región. Y en la intersección entre Norte y Suramérica está ubicado Panamá, uno de los países más favorables al sector duty free, y sede de Motta
6 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
Internacional. La compañía minorista de viajes se prepara con vistas a inaugurar su tienda en la nueva terminal del Aeropuerto Internacional Tocumen, que iniciará operaciones en el primer trimestre del 2019. Recientemente, Motta renovó su tienda en la Terminal 1, que recibió sus primeros clientes en mayo pasado. ASUTIL, junto a IAADFS, se están enfocando en la segunda Cumbre Conjunta de las Américas. El evento seguirá llevándose a cabo en la ciudad de Orlando, pero en otra sede diferente. Michael Payne, Presidente de IAADFS, afirma que han logrado grandes progresos en varias áreas, después de escuchar numerosas opiniones relacionadas con la primera Cumbre. Disfruten todos estos artículos y otros más en nuestra edición de Americas Duty Free & Travel Retailing dedicada a TFWA WE. Les deseamos un exitoso evento y muchos más logros en los próximos meses de este año. Un cordial saludo,
Hibah Noor Editora en Jefe www.dutyfreemagazine.ca
What’s inside Lead Stories 12 Top Brands
Top Brands International unveils name change and new look The retailer will become known simply as Top Brands, while its stores will go under the single name, LURYX
14 Motta Internacional Motta expands
Motta Internacional’s Attenza Duty Free wins T2 concession at Tocumen International Airport
16 Brazil border stores update Movement stalled
Elections and the complexity of the plan to open duty free shops on the Brazilian side of the border could delay start-up
20 Mannah Duty Free Mannah seizes on a growth opportunity
Business has been picking up nicely this year at Mannah Duty Free’s flourishing operation in Paraguay’s biggest airport
22 LATAM Airport News Increasing capacity
While ASUR is expanding both within existing airports in Mexico and outside the country in Colombia, large renovations in Panama and Santiago, Chile, are well underway
30 Montego Bay,
Jamaica Airport Renovations take flight Sunny skies are ahead for Sangster International Airport in Montego Bay, Jamaica as the airport renovates to expand and give travelers a more enhanced experience
30 Features A new era for ASUTIL Fresh start for SOTA
Sea change for FDFA London Supply gives back
Lead Stories 42 Building the biscuit category Taking the biscuit category to new heights
As the biscuit category enjoys a resurgence of interest from consumers seeking a healthier alternative to chocolate, we speak to key industry players for their views
52 Cosmoprof A new wave
Cosmoprof’s Enrico Zannini discusses millennials and the growing beauty segment
56 Dufry Brazil
Boosting the luxury experience Beauty is a booming business in Brazil for the region’s leading operator Dufry, with both local and international brands feeling the benefits
60 Daniel Wellington A time and place for Daniel Wellington
Relatively new to travel retail, Daniel Wellington is showing how its social media presence has helped convey its brand message in an otherwise traditional industry
70 Brown Forman
Jack Daniel’s thoroughbred makes its debut Jack Daniel’s 100-proof Bottled-inBond Tennessee Whiskey is launched into global travel retail backed by a story of quality and heritage
Cruising to a leadership position Juan Gentile, the newly appointed Managing Director of Edrington’s Americas Travel Retail division, reveals his bold strategy for the region
78 Illva Saronno Always in style
Illva Saronno is seeing boom times in the US for its fashionable, cocktail-friendly amaretto liqueur brand Disaronno
Features Spotlight on exhibitors 46 Costa’s ocean challenge 50 From fairyland to festivals 58 Maui Jim fishes for new shoppers 61
Haribo’s bear essentials Monarq’s fast track to growth Mastering the craft of gin Questionnaire: Gautom Menon
66 74 80 82
Top Brands International unveils name change and new look
LURYX store in Bogota, Colombia in the Plaza Central shopping area
The retailer will become known simply as Top Brands, while its stores will go under the single name, LURYX by RONNIE LOVLER
The company former known as Top Brands International will now be known as Top Brands
All Top Brand stores will now go by the name of LURYX
anama-based Top Brands International is undergoing a double name change – both on the corporate side and for the stores it operates to give the company a new image and a new look moving forward. In an exclusive interview with Americas Duty Free, Marketing Manager Joanna Gutierrez said moving forward the company will simply be known as Top Brands and globally its stores will go by the name of LURYX. “LURYX is a modern and elegant new Concept Store where we will transform the consumer shopping experience, Gutierrez said. “They will be innovative and modern stores where you will find a wide variety of products of prestigious and recognized brands.” The development of the LURYX name is a result of the success that the company has been having throughout the region in recent years, Gutierrez explained. “In the last two years, we have been growing rapidly,” Gutierrez, said. “We are expanding so much that we needed something to reflect that expansion and growth.
12 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
LURYX store owned and operated by Top Brands in Bogota, Colombia in the Multiplaza Mall La Felicidad
“We dropped the ‘international,’ so we look and sound more corporate. This also helps to encompass all the different business units we have,” she said. “We are very diversified in different categories and types of business.” The company, which was founded more than 30 years ago in Panama, is in markets all around the Americas and the Caribbean, with a presence in 14 countries and region. It currently has 65 stores in travel retail and local markets, airports, free zones and shopping malls, he said. “Now, we are much more of a corporation than a small operation in the region. And that is the reason why, when looking at our future expansions we decided to go with a more corporate name and identity,” she said What Gutierrez said was particularly challenging, however, was coming up with a single and unifying name for all of the company’s stores and businesses in the different places it has a presence because of copyright issues from country to country. “It is difficult to create a brand with different names in different places,”
LURYX store in Bogota, Colombia in the Parque La Colina mall
Gutierrez said, “and we weren’t taking advantage of the loyalty customers that we have. So we had to look for a way to put everything under one name everywhere.” For example, in 2018, the company has stores operating with different names such as Escentia in Colombia; Fantastic in Uruguay, and Image Duty Free at U.S. border stores to name a few. After more than a year of deliberation and in conjunction with international marketing consultants, the company came up with the name, LURYX for all of its stores as a singular name that was not copyrighted or being used in any of the countries or regions where they do business. “The name is short and very easy to pronounce,” Gutierrez said. “And it is pronounced the same in English and Spanish. “It’s a generic name, but (legally) available in every country. It’s catchy for the consumers and gives an identity to our business,” she added. The locations where the company currently has a presence are the United States, El Salvador, Costa Rica, Panama, Colombia, Paraguay, Uruguay, Cuba,
Chile, Bahamas, Belize, Guyana, the Britof money in marketing, and this way ish Virgin Islands and St. Thomas. customers will know when they see the Gutierrez said the company would be name LURYX, they will know right away doing country-by-country rollouts. “Our that it is a store where you can get good new name will be launched in stages,” she products with a good reputation,” said. It will take us five months to deploy said Gutierrez. the name for all the countries. But definitely we will be ready for high season by the end of the year.” “We will implement an aggressive marketing strategy aimed first to publicize our new name in a short time, penetrating the market with a strong brand management and positioning,” said Gutierrez. “In addition to a luxury experience at the time of purchase, which will provide the consumer in a space and environment completely renovated in our stores, we will achieve loyalty to the customer and traveler with this new LURYX experience,” Gutierrez added. She said the company would implement the name changes first in Colombia, followed by St. Joanna Gutierrez, Marketing Thomas, El Salvador and Paraguay. Manager, Top Brands “We are going to invest a lot www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING
Motta expands Motta Internacional’s Attenza Duty Free wins T2 concession at Tocumen International Airport
Erasmo Orillac, Director, Motta Internacional (right) with Carlos Alberto Motta, Director, Motta Internacional and AJ Khan, Publisher, Americas Duty Free & Travel Retailing
14 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
n line with its strategy to further expand its presence in the regional travel retail business, Motta Internacional-owned Attenza Duty Free has won a public bid for a 10-year contract with Tocumen International Airport to operate a multi-category duty free store in the new Terminal 2. Attenza Duty Free will add 1,452 square meters of retail space, supporting the expansion of the Panamanian airport. This new terminal will give Tocumen International Airport the capability to handle 25 million passengers a year. The new terminal is scheduled to open in the first semester of 2019. The new store will offer a wide range of products, such as liquor, tobacco, perfumes, cosmetics, accessories, confectionery, sunglasses, watches, writing instruments, as well as fashion. The operator is building its presence at the airport, having opened its renovated duty free store in T1 in May 2018. Erasmo Orillac, CEO of Motta International, said: “We are very pleased and excited about this new project, not only because it reinforces our strong commitment to grow in the regional travel retail market, but also strengthens our relations with our commercial partners.” Motta Internacional owns, operates and supplies over 55 duty free stores in the region and has over 1,500 employees. Its Attenza Duty Free fascia operates in six countries in Latin America: Panama, Colombia, Nicaragua, El Salvador, Trinidad and Tobago and Ecuador.
Brazil border stores update
Movement stalled Elections and the complexity of the plan to open duty free shops on the Brazilian side of the border could delay start-up by RONNIE LOVLER
espite the fanfare surrounding the announcement earlier this year that the Brazilian government had finally endorsed a plan to allow duty free shops to operate on the Brazilian side of the border, there has been little movement forward to date. Brazil’s Department of Federal Revenue approved the project after years of delay, but difficulties in implementing the necessary software to track purchases combined with some resistance to the idea from entrepreneurs in Spanishspeaking countries and Brazil’s own uncertain political future are causing delays. “We do not have a specific date for implementation of free shops on the Brazilian side of the border,” said Carlos LoaizaKeel, Secretary-General of the Chamber of Commerce of Free Shops of Uruguay, in an exclusive interview with Americas Duty Free. “The moment of great political uncertainty that Brazil is going through impacts decisions and actions throughout its economy and that of its neighbors,” he said. “In our judgment, the electoral process will be decisive.” National elections are taking place in Brazil in October and at the time of this writing the outcome is uncertain. Uruguayan distributor Alejandro Sosa, President of Y. LucasCalcraft S.A., monitors developments in the region. He, too, has few expectations of any movement to open free shops on the Brazilian side of the border until later next year. “This is going to take a while,” Sosa said. “We have been told there are problems with the software and it does not have the OK from Brazilian officials. And then we have the political situation with the elections.” Sosa also noted that the border store issue does not seem to be a top priority for any of the Brazilian politicians seeking office, which further indicates likelihood that the issue will be put on a backburner.
Earlier this year, the industry saw a great deal of frenzy in the region when it was believed the first Brazilian free shops would 16 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
begin operations in 2018. In Uruguay in particular, operators expressed concern about a possible advantage Brazil’s stores would have, because Brazilian nationals were to have had an allowance of US$300 in Brazil, twice as much as the allowance in stores in Uruguay. “We consider the extension of the US$300 franchise for purchases in Uruguay by Brazilians to be a success,” Loaiza-Keel said “We were directly involved as the Chamber in this endeavor, not only with Brazil but also with the Uruguayan government, which had to increase its own resident limit to US$300 to help convince Brazil to do the same.” Loaiza-Keel said the Chamber also lobbied Brazil, noting that Chamber President Enrique Urioste met with Brazilian government officials to promote the deal that was eventually struck. Meanwhile, the Uruguayan government has raised the issue of the Brazilian border stores with South American trade bloc MERCOSUR, “with the aim of creating a free-trade border system for all MERCOSUR countries,” Loaiza-Keel said. At the moment, there is no word from MERCOSUR on what action that organization might take.
Not all negative
ASUTIL Secretary-General José Luis Donagaray said his organization anticipates that it will be at least 2019 before any border stores open in Brazil, although he said he sees the potential change as something positive. “This doesn’t need to be contentious. It is a development decision,” Donagaray said. “We make our suggestions to the government and make comments. It is a new way of business, so we welcome them. What ASUTIL wants is a fair competition between all the countries and all the stores.” In an earlier interview with Americas Duty Free, LoaizaKeel shared that assessment, acknowledging the positive aspects of Brazilian entry into the regional free shop system. “Brazilian border stores are a business threat because they will be our competitors, but at the same time they would broaden
Carlos Loaiza, Secretary-General of the Chamber of Commerce of Free Shops of Uruguay
the market,” Loaiza-Keel said at the time. “The new businesses will generate more commercial opportunities and bring more tourists to the area.”
Not all are pleased
As in Uruguay, concerns in Paraguay are high. That country has also done brisk border business with Brazilian tourists engaging in duty-free shopping. Juan Santamaría, President of Fedecámaras, told Paraguay’s Ultima Hora newspaper that the Paraguayan government along with the business sector must take steps to keep businesses competitive. “Brazil border stores would offer a new front to compete with the Ciudad del Este trade. This forces the Paraguayan Government jointly with business owners to find a formula to ensure the competitiveness of companies and businesses at the borders,” Santamaria said.
VI S J2 IT 1 US RE I D NC VI A LL N A NE G S E
Despite a positive message from certain stakeholders, others clearly have mixed feelings about Brazil entering the land border duty free business, one that countries such as Uruguay, Paraguay and Argentina have dominated for years. Brazilians, scrambling across the borders in pursuit of tax-free purchases, have been these retailers’ main customers, and they are understandably concerned that Brazilians may travel less if they can achieve the same savings at home.
(Left) Alejandro Sosa, President of the Uruguay-based Lucas Calcraft
www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING
Brazil border stores update
Movimiento estancado Las elecciones y la complejidad del plan para crear tiendas duty free en el lado brasileño de la frontera podrían retrasar el inicio del proceso
pesar del bombo y platillos relacionado con el anuncio a principios de año de que el gobierno brasileño había aprobado un plan que permitiría la operación de tiendas duty free en el lado brasileño de la frontera, no se ha producido mucho movimiento hasta la fecha. Aunque la Secretaría de Ingresos Federales del Brasil dio su aprobación al proyecto después de varios años de retraso, las dificultades en la implementación de los programas de computación necesarios para controlar las compras, combinadas con cierta resistencia a la idea por parte de los empresarios en los países de habla hispana, así como el incierto futuro político del Brasil, están provocando demoras. “No tenemos una fecha específica para la implementación de tiendas libres en el lado brasileño de la frontera”, expresó Carlos Loaiza Keel, Secretario General de la Cámara de Empresarios de Free Shops del Uruguay, en una entrevista exclusiva con Americas Duty Free. “El momento de gran incertidumbre política por el que está pasando Brasil ejerce un impacto en las decisiones y acciones en su economía y la de sus países vecinos. A nuestro entender, el proceso electoral será decisivo”. Las elecciones nacionales en el Brasil se llevarán a cabo en octubre, y al cierre de esta edición el resultado de las mismas es incierto. Alejandro Sosa, distribuidor uruguayo y presidente de Y. Lucas-Calcraft S.A., observa los acontecimientos en la región, y también alberga escasas esperanzas de que se produzca algún movimiento para inaugurar tiendas libres en el lado brasileño de la frontera antes de finales del próximo año. “Va a demorar algún tiempo”, añadió Sosa. “Nos han dicho que hay problemas con el software y que no tienen luz verde por parte de los funcionarios brasileños. Y además, está la situación política con las elecciones”. Sosa también destacó que el problema con las tiendas de frontera no parece ser prioridad principal de ninguno de
los políticos brasileños que se han postulado para las elecciones, lo cual indica más aun que la situación pasará a un segundo plano.
Igualdad de condiciones
A principios de este año, la industria fue testigo de un enorme frenesí en la región, cuando se creía que las primeras tiendas libres brasileñas iniciarían sus operaciones en el 2018. Específicamente en Uruguay, los operadores expresaron su preocupación con respecto a una posible ventaja que tendrían las tiendas en el Brasil, debido a que los ciudadanos de esa nación tendrían un límite de $300 para gastar en el Brasil, el doble de la cantidad permitida para gastar en las tiendas del Uruguay. “Consideramos un éxito la extensión de la franquicia de US$300 para compras de los brasileños en el Uruguay”, aseguró Loaiza. “Participamos directamente como Cámara en esta misión, no solo con el Brasil, sino también con el gobierno uruguayo, que tuvo que incrementar su límite de gastos de sus propios residentes a US$300 para convencer al Brasil de que hiciera lo mismo”. El alto funcionario agregó que la Cámara también cabildeó con el Brasil, destacando que Enrique Urioste, presidente de la Cámara, sostuvo reuniones con funcionarios del gobierno brasileño para promover el acuerdo que se concretó finalmente. Entretanto, el gobierno uruguayo ha dado a conocer el problema de las tiendas de frontera brasileñas a MERCOSUR, el bloque comercial suramericano, según Loaiza, “con el propósito de crear un sistema fronterizo de libre comercio para todos los países del MERCOSUR”. En estos momentos no se ha recibido respuesta del MERCOSUR con referencia a las medidas que podría tomar esa organización.
No todo es negativo
José Luis Donagaray, Secretario General de ASUTIL, afirmó que su organización pronostica que no se inaugurará
18 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
ninguna tienda fronteriza en el Brasil al menos hasta el 2019, aunque agregó que considera el cambio potencial como algo positivo. “Esta situación no tiene que ser polémica. Es una decisión de desarrollo”, comentó Donagaray. “Les proponemos nuestras sugerencias al gobierno y hacemos comentarios. Es una nueva forma de negocios, y le damos la bienvenida. Lo que quiere ASUTIL es una competencia justa entre todos los países y todas las tiendas”. En una entrevista previa con Americas Duty Free, Loaiza dio a conocer esa misma evaluación, reconociendo los aspectos positivos de la entrada brasileña en el sistema regional de tiendas libres. “Las tiendas brasileñas de frontera son una amenaza a los negocios porque serán nuestras competidoras, pero al mismo tiempo ampliarían el mercado. Los nuevos negocios generarán más oportunidades comerciales y atraerán más turistas a la zona” dijo Loaiza en aquella entrevista.
No todos están contentos
A pesar del mensaje positivo de ciertas partes interesadas, otras tienen claramente sentimientos encontrados con respecto a la incorporación del Brasil al negocio duty free de frontera, dominado durante años por naciones como Uruguay, Paraguay y Argentina. Como los brasileños, que se dispersan por las fronteras en busca de compras libres de aranceles, han sido los principales clientes de estos minoristas, existe la preocupación de que los brasileños podrían viajar menos si pueden lograr los mismos ahorros en su país. En Paraguay, al igual que en el Uruguay, existen grandes preocupaciones. Esta nación también ha logrado un dinámico negocio de frontera con turistas brasileños interesados en compras dutyfree. Juan Santamaría, presidente de Fedecámaras, señaló en una entrevista con el periódico paraguayo Ultima Hora, que el gobierno paraguayo y el sector comercial deben tomar medidas para mantener la competitividad del negocio. “Las tiendas de frontera del Brasil constituirían un nuevo frente para competir con el comercio de Ciudad del Este. Esto obliga al gobierno paraguayo, y a los dueños de negocios, a encontrar una fórmula para garantizar la competitividad de compañías y negocios en las fronteras”, afirmó Santamaría, según el artículo en el diario paraguayo.
Mannah Duty Free
on a growth opportunity Business has been picking up nicely this year at Mannah Duty Free’s flourishing operation in Paraguay’s biggest airport by HIBAH NOOR
hanks to rising passenger numbers, Mannah Duty Free recently opened a duty paid store at Silvio Pettirossi International Airport in Asuncion, Paraguay’s main gateway, which is proving highly successful. “We have gotten 20 square meters of space for fragrances and for beverages, totalling 40 square meters, since there are more passengers. We have bet on the success of the acquisition,” Mohamad Said Mannah, President, Mannah Duty Free tells Americas Duty Free. The additional store space began trading in February 2018. “It was a very good development for our group to open the duty paid store,” he enthuses. “The success of this new business is due to the fact that we are offering exclusives, as there is no other store selling perfumes and beverages.” The new perfume department was formerly an office, and the liquor area was a pharmacy.
Sales and tourist numbers increasing
For a long time, passengers were not allowed to travel with more than 100ml of liquid, and this had an impact on liquor sales at the airport, according to Mannah. Now, passengers can carry around 2 to 5 liters per person, depending on the airline, and this has enabled an uptick in overall turnover and a “very significant positive change” in spirits sales. Total sales for the first four months of this year are running 11% ahead of 2017, Mannah reports, and the retailer is developing new items according to demand. The average ticket is US$13 per person. Fragrances and cosmetics are the bestperforming category overall. Mannah Duty Free’s top-selling perfume brands are Paco Rabanne, Carolina Herrera, and Montblanc, and in makeup, the top names are L’Oreal, and TheBalm. In second place overall comes the liquor category, with Johnnie Walker, Absolut Vodka, Valentine
20 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
Moet Chandon topping the sales charts. Accessories are ranked third overall, in which the best-selling watch brands are Armani, Diesel, Michael Kors, and Fossil, and Ray-Ban for sunglasses. In addition to an increase in flights landing at Asuncion, Mannah has seen an upswing in the number of tourists arriving, 75% of whom are Brazilian. Following the increase in the liquid allowance, sales to this nationality have increased, and the traditional perfume and travel accessories also perform well with this demographic group. At time of writing, Mannah Duty Free’s latest promotions were Valentine’s Day (February 14), Mother’s Day (May 15) and Father’s Day (June 17). Liquor promotions have included gwps, special discounts, and product tastings. “We are continuously speaking with the airport authorities to get more space in order to develop more brands and maintain our growth philosophy,” concludes Mannah.
LATAM Airport News
capacity by RONNIE LOVLER
An entrance into the new terminal 4 at Cancun International Airport
rupo Aeroportuario del Sureste (ASUR) is investing more time and money in the airports it operates in Mexico to take advantage of that country’s upward tourism spiral. Mexico is now considered the top tourism spot for travelers from the United States, and ASUR is seeking to take advantage of the boom, with the Maya Riviera, home of Cancun, getting a lot of attention. In an exclusive interview with Americas Duty Free, Chief Commercial Officer Manuel Gutiérrez Sola painted a bright picture for ASUR’s future, now that the Mexican Department of Communications and Transportation approved its Master Development Program for each of its airports.
He said things are looking especially bright in Cancun, where passenger growth is skyrocketing. ASUR projects that Cancun should end the year with some 24 million passengers passing through the airport. “If we continue to have growth of two digits, by the end 2023, we should be ending with close to 34 million passengers,” Gutiérrez Sola said. Most of the spending approved for the 2019-2023 five-year plan will go to Cancun with some $5.9 billion Mexican pesos or about US$308 million, designated for airport improvements there. ASUR also plans to invest almost $2 billion pesos or about US$104 million in Merida on the other side of the Yucatan from Cancun. At present, in Cancun, work is being continued on a fourth terminal, “with more gates, more check-in facilities and commercial areas, as well as an air bridge. It’s a terminal expansion,” 22 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
While ASUR is expanding both within existing airports in Mexico and outside the country in Colombia, large renovations in Panama and Santiago, Chile, are well underway Gutiérrez Sola said. The fourth terminal opened in April 2017. “ASUR will construct the next phases of Terminal Four when the capacity demand is needed,” he said. Terminal Four itself will serve 6.5 million passengers. Gutiérrez Sola explained that investment in airport facilities is being done to keep pace with the growth of the country’s tourism industry. “The hotels keep on growing and there’s expansion in Cancun and it’s all part of development in Playa Blanca, Puerto Juarez, Puerto Morelos, Playa del Carmen, Puerto Aventuras, and Tulum.” He also pointed to “dramatic” growth in Cozumel and Isla de Mujeres.
Other ASUR projects in Mexico
Cancun, Mexico’s second busiest airport after Mexico City, is just one of nine airports that ASUR operates in Mexico. The others, all in southeastern Mexico, are Cozumel, Huatulco, Mérida, Minatitlan, Oaxaca, Tapachula, Veracruz and Villahermosa. During the next five-year period, Gutiérrez Sola said three more airports would be targeted for expansion — Oaxaca, Villahermosa and Merida. Gutiérrez Sola said Merida is getting attention as a satellite city of Cancun, given that there is a land connection to that bustling tourist location. The airport there now serves 2.4 million passengers, and ASUR is planning to expand airport capacity to four million passengers. In Villahermosa the airport capacity is to be increased from 1.4 million passengers to two million, Gutierrez Sola said, while in Oaxaca, because of the growth of passengers there, the airport terminal capacity would be increased from the current top of 600,000 passengers to 900,000.
Cancun International Airport T4 boasts a number of new hot spots to catch a quick bite
Overall, in Mexico air traffic is expanding. This year alone, Mexico expects to add 1.5 million seats on direct flights this year.
Colombia and Puerto Rico
ASUR also acquired Airplan in Colombia in the last quarter of 2017 and has taken over operations for six airports there — in Medellin, Monteria Carepa, Quibdo and Corozal. Medellin operations will also include Rio Negro, where that city’s international airport is located. “We will be expanding all the commerce for the airport with the new brands. Including duty free shop as well so will have international growth in that airport, “Gutiérrez Sola said. “We are adding capacity and adding service to these airports to enhance the travel experience for our passengers. In Puerto Rico, ASUR is a partner in Aerostar Airport Holdings, LLC, which operates the Luis Muñoz Marin Interna-
www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING
LATAM Airport News
A view of one of the shopping areas in the new Terminal 4 at Cancun International Airport
There are a lot of choices for shoppers among passengers getting ready to board flights or even after arrival at the new Terminal 4 at Cancun International Airport
tional Airport in San Juan, which was hard hit last year by Hurricane Maria. But overall, Gutiérrez Sola is optimistic for the future there. “July to July, we had almost the same number of passengers as last year; we are short by only five percent. ”He added that all the airlines have returned to Puerto Rico with the same flight schedules they had in 2017.
Tocumen 2 nears completion
In Panama, work is nearly completed on a second terminal at Tocumen International Airport, considered a “hub of the Americas.” The new T-2, as it is known locally in Panama, is expected to begin operations before 2018 with the country’s national carrier, COPA Airlines, leading the charge.
24 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
The airport, already a hub for Central and South America, expects to increase its capacity by nine million passengers to 25 million once the new terminal opens in the last quarter of 2018. The terminal will have 20 new gates and eight remote locations. On a recent visit to Panama, the Secretary-General of the International Civil Aviation Organization, Fang Liu, toured the new terminal along with Alfredo Fonseca Mora, Director of Panama’s Civil Aviation Authority. Liu said the new terminal would be a boost to Panama’s economy. “This project demonstrates the vision of the Government of Panama to be a stimulus to aviation, with the continued growth that aviation will have here over the next 15 years,” Liu said
Progress in Santiago
In Chile, construction is well underway at Arturo Medina Benítez International Airport in Santiago. The expansion project, which is expected to cost US$720 million by completion, includes both a new terminal and an upgrade of the existing passenger terminal. The new and expanded terminals are expected to begin operations in 2020. The project will improve capacity; the airport received 19 million passengers in 2016, the last year for which figures were available, but expects to be able to handle 30 million passengers annually by 2020, when the project is completed.
Duty Free World Council
Americas DFWC releases Economic Impact Study on the duty free and travel retail industry in The Americas
he Duty Free World Council (DFWC) has published a report on the Economic Impact of the duty free industry in The Americas outlining its important contribution to the travel industry and the broader economy. THE KEY FIGURES REVEALED IN THE STUDY ARE: •
In 2016, US$12.9 billion was spent on duty free and travel retail in the Americas. The principal components were:
Duty free and travel retail sales in the aviation sales channel estimated at nearly US$1.9 billion in the U.S. and Canada and US$4.8 billion in Latin America and the Caribbean, most of which was generated within airport terminals.
Land and maritime duty free and travel retail sales amounting to approximately US$6.2 billion.
Duty free and travel retail spending in the Americas directly accounts for an estimated 61,400 jobs and US$8.2 billion in GDP.
Together with the businesses that supply the goods and services (indirect impacts) and spending of employees in the wider economy (induced impacts), duty free and travel retail in the Americas is estimated to support a total of 110,000 jobs and US$10.6 billion in GDP.
28 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
DFWC commissioned InterVISTAS Consulting Group, a leading management consulting company with extensive expertise in aviation, transportation and tourism to compile this independent report on the industry in The Americas. A copy of the report can be found on the DFWC website http://dfworldcouncil.com/data-resources/ The publication of this study follows release of a similar study on the industry in Europe published in 2016 and will in turn be complimented by a study of the impact of the industry in Asia Pacific in 2019. Mr. Frank O’ Connell, commenting on the publication of the study said: “Economic Impact Studies are critical tools for DFWC and our regional association members when outlining the importance of our industry and the contribution we make to airport, and other travel infrastructure, the tourism industry and the general economy. When engaging with regulators or other parties contemplating decisions which may impact on our industry, we must have independently verified data, not just on the sales generated by duty free and travel retail, but, which also quantifies the employment impact and the positive contribution to airport revenues etc. in order to promote and defend our industry’s interests.” The DFWC acknowledges and thanks the Americas regional associations, as well as the industry research and trade organisations, which provided invaluable inputs to assist the compilation of the report.
advertisement removed for legal reasons
Montego Bay, Jamaica Airport
The purposed renovations will enhance ease of travel for passengers, including larger, modernized shops and comfortable seating
Sunny skies are ahead for Sangster International Airport in Montego Bay, Jamaica as the airport renovates to expand and give travelers a more enhanced experience by JAS RYAT
enovations on Jamaica’s largest and busiest airport, Sangster International Airport (SIA) in Montego Bay, are well under way. Originally built in 1947, the airport has gone through several expansions to accommodate the growing traffic as 72% of the 1.7 million annual visitors to Jamaica use SIA as their primary airport. Sharon Hislop-Holt, Manager of Commercial Business Development & Marketing of MBJ Airports Limited, shared the importance the renovations would have for enhanced passenger experience. “Travelers can expect a
30 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
modernized check-in area/ticketing hall and expanded restrooms, a well maintained airport using modern & efficient technology. Also, relocating the entrance to the Central Retail Area ensures 100% of our passengers are exposed to all shops. The space will also be expanded by 50% of its current size. This expansion will create more circulation space and seating for passengers to sit, relax and organize themselves after they have cleared security,” explains Hislop-Holt. The central retail area is located post-security in the departures terminal and is currently the main shopping area,
comprising 50% of the stores, including duty free shops, the food court and souvenir shops. The new area will allow for larger stores with wider storefronts and covers 6,800 square meters, with 2,500 square meters being circulation space for passengers.
More circulation space, dwell time and relaxation
SIA intends to create, an “Irie Airport Experience” for all passengers using the facility MBJ aims to become a destination in itself by developing products and services that enhance the airport experience that passengers look forward to with professional, fast, attentive, friendly service from the staff of all concessions and agencies. The larger space will create more circulation space, dwell time and relaxation in the retail area. The airport wants pas-
sengers’ use of the airport to be effortless and memorable. SIA’s goal is to create a natural and relaxing Caribbean look and feel by offering natural lighting design intended to improve the environment. This will help develop a sense of place that best reflects what Jamaica has to offer, unique Jamaican culture, through the use of colors and textures. The new retail space will also offer entertainment areas, better Wi-Fi coverage and other exciting concepts. Larger shops with wide store fronts will reflect high quality items that offer value for money. There will be more seating, ensuring travelers will continue to enjoy the airport experience as they depart the vacation hotspot. Hislop-Holt says: “Currently, all passengers get to the entrance to the retail area but only approximately 70% will see the majority of the shops in the central
Future renderings representing the concept of the Central Retail area
area while approximately 30% will see only a few stores based on layout. The new plan will change that and increase the size, allowing all passengers from all airlines to travel through this space; 100% of international passengers, 99.5% of total passengers.” The check-in/ticketing hall renovations are set to be complete for the end of 2018. The architectural work in the central retail area is scheduled to commence in 2018, and request for proposals (RFP) with construction to commence in 2019. Closer to the end of construction, SIA will announce a grand opening to celebrate the expansion. “Our goal at MBJ is to provide efficient infrastructure & services in a stress-free environment and reduce processing times for passengers in order for them to enjoy their last hours in Jamaica, leaving them with a lasting and positive reminder of the best Jamaica has to offer,” concludes Hislop-Holt.
A panoramic view of Sangster International Airport in Montego Bay, Jamaica
www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING
A NEW ERA
Working on behalf of its members and the industry at large, ASUTIL is exceptionally busy this year trying to level the playing field on Brazil’s borders, work toward next year’s Summit of the Americas and also build a dynamic new website by RONNIE LOVLER
SUTIL, Latin America’s principal duty-free organization, has its hands full these days as it ponders the impact of looming changes in Brazil on the region’s duty-free and travel retail industry. At the same time, the association is laying the groundwork for next year’s Summit of the Americas in Orlando, which it is again hosting jointly with IAADFS, the International Association of Airport Duty Free Stores. ASUTIL has also launched a new website, one that requires considerable management. One of the biggest concerns for the association currently is the October elections in Brazil, especially how its results will affect the opening of the first “lojas francas,” or duty-free stores, on the Brazilian side of that country’s borders with other Latin American nations. In a wide-ranging interview with Americas Duty Free, ASUTIL SecretaryGeneral José Luis Donagaray said the association is “optimistic” about changes in Brazil that he hopes will bring more business to the border areas. “We don’t need to oppose this. It is a development decision,” Donagaray said. “We make our suggestions to the government based on this development, and ensure they understand our position. It is a new way of busi-
ness, so we welcome these stores. But we want the competition to be fair. That’s what ASUTIL wants.” Governmental and business preparations are now underway to bring border shops on board in Brazil. No Brazilian stores have opened yet, and the expectation is that it will be at least 2019 before they do so. The new regulations mean that Brazilians will be able to do their duty-free shopping in border stores at home, however, which strongly affects the border stores of neighboring countries. “We (ASUTIL) have been in Brazil and have been to a lot of meetings,” Donagaray said. “We have a good dialogue going on with the Brazilian authorities and are sharing our experiences.” But Brazil is only one issue on Donagaray’s busy agenda. Also taking up a lot of his time are the preparations for the March 2019 Summit of the Americas in Orlando with IAADFS. Earlier this year, for the first time, ASUTIL and IAADFS joined forces to host one major conference rather than two separate events as had been done previously over the years. Donagaray says he is looking forward to implementing lessons learned in this year’s Summit to the upcoming 2019
32 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
ASUTIL SecretaryGeneral José Luis Donagaray
event. “We had our first year. We had to combine a lot of things, not only the work, but also the different cultures,” Donagaray said. “I think it is positive. We got some good feedback. We are working on that so next year in the new venue we will have a good show for everyone,” he said. Next year’s Duty Free & Travel Retail Summit of the Americas will be held March 24-27, 2019 at the Hyatt Regency Orlando, a break from the Marriott World Center, also in Orlando, where the conference has been held for a number of years. Plans for the 2019 meeting are still being developed, but Donagaray said ASUTIL and IAADFS leadership have conference calls every 15 days to discuss things. “We share all our information and each organization has a specific task. We
ASUTIL is laying the groundwork for next year’s Summit of the Americas in Orlando, which it is again hosting jointly with IAADFS
will have a lot of speakers in our education sessions” he said. “Once we have signed all the contracts we will announce the names.” Speaker presentations are a major draw for attendees to learn more about industry trends and developments from leaders in the field. One goal for next year’s Summit is to attract more buyers and suppliers to attend the event. “We need more suppliers and more buyers. That is the reason for our business,” Donagaray said. He also confirmed that ASUTIL is committed to the idea of one annual conference sponsored jointly by the two largest duty free and travel retail organizations in the Americas, rather than two separate events. “We have an agreement to have only one big conference of the Americas,” he said, noting that for members of both organizations this means less travel, fewer costs, and better use of time, noting that the arrangement is indefinite. “It has no
end date,” Donagaray said. “It is a gentleman’s agreement.” In the meantime, ASUTIL is also putting finishing touches on its new website, which launched earlier this year, with the intent of offering more to ASUTIL members online. “The idea is to have a web of information not just for members but for all the industry. The website is dynamic, with new information about the business,” Donagaray said. The site is bilingual, with information available in English and Spanish. A Portuguese version will also be available down the line. As an association, ASUTIL will soon celebrate its 25th anniversary. Interest in forming an organization to represent the interests and concerns of duty-free shop operators in the region took hold in Uruguay in 1994, although it wasn’t until August 1995 that ASUTIL formally came into being. Initially, ASUTIL limited its activities to South America, but in
2008 the association modified its bylaws to extend its field of interest to Central America, Mexico and the Caribbean. ASUTIL’s newest member is Panamabased operator Top Brands International, now going under the corporate name of Top Brands, while the stores it operates are transitioning to the name of LURYX. Per its website, ASUTIL members today include operators such as Dufry, London Supply, Neutral, Provimex, Duty Free Americas, Siñeriz, and Zeinal Hermanos. Member suppliers include Bacardi, BID, British American Tobacco, Desigual, Diageo, Essence Corp., Estée Lauder, Godiva, Hershey World Travel Retail, Imperial Tobacco, JTI, Lindt, L’Oreal Travel Retail Americas, Luxotica, Mars, Nestle’s International Travel Retail, Perfetti, Pernod Ricard, Philip Morris International, PUIG, Revlon and Elizabeth Arden, Samsonite and Shiseido.
www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING
Summit of the Americas
Michael Payne reveals changes to Summit of the Americas for 2019 by HIBAH NOOR
ichael Payne, President and CEO of the International Association of Airport Duty Free Stores (IAADFS), has detailed a number of changes to next year’s Summit of the Americas, which will be held March 24-27, 2019. IAADFS is again collaborating with ASUTIL on the 2019 edition, which will move to the Hyatt Regency Orlando hotel. Speaking with Americas Duty Free, Payne said that the move to the Hyatt was based on several factors, including that the Hyatt hotel was more convenient than the Marriott, only a five-minute walk to the Port Orlando area with its restau-
rants and bars, and importantly offered more flexibility with its meeting space to accommodate the needs of suppliers and buyers. Following positive feedback, IAADFS/ ASUTIL will be holding the educational sessions again next year, but they will be shortened by half an hour. The sessions will start at 8:30am and the tradeshow will open at 10am. “We have made good progress on identifying speakers, including representatives from major brands within the industry,” said Payne. More details on the program will be announced soon. “The Summit will also have a new layout in order to encourage more visitors into the tradeshow area to see exhibitors,” he said. “Attendees will have to come into a trade area where the exhibit hall, meeting rooms and foyer exhibits and other activities will be in a contained area.” This is expected to allay current exhibitor concerns about many meetings taking place outside of the trade floor. Payne said the organizers were actively
34 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
trying to attract more buyers from Central America, South America and the Caribbean. “There’s a lot more people in the travel retail end of the business as well as duty free that should be participating.” The buyers’ lounge concept, which was introduced for 2018, received good feedback overall, except for its location. “People didn’t like that it was outside of the hall,” explained Payne. “We can improve that and make it a more userfriendly venue next time. It was intended to be a place for buyers to go in between appointments.” He continued: “The lounge will be used on Wednesday for a few hours to help connect some attendees. This networking opportunity won’t affect the exhibitors and their schedules.” Following the 2018 Summit, IAADFS organized a lunch and meeting at the new venue and invited suppliers to come. A group of a dozen or so suppliers, mainly from the larger companies, participated and gave their feedback on the planned
changes, which he characterized as “very positive”. “Along with ASUTIL, we have evaluated all the survey responses, talked with our members and will continue to meet with stakeholders throughout the process.” Payne said that as it was a new venue for some of the exhibitors, the organizers would offer other opportunities to see the location.
Suppliers showing interest
Fragrances, spirits, confectionery and sunglasses suppliers were already showing interest in exhibiting next year, he added. “I’m receiving a lot of verbal commitments, but we won’t know final details until the September/October time frame. We’re going into it with the attitude that there will be an uptick. I think a lot of people were waiting for the switch to a new venue.” Payne revealed that a new, online microsite specially for the Summit would be launched soon. He added: “We’re starting to populate the exhibit trade area to start getting the supplier community focused on what spaces we have and what they want.” In response to a question from the Publisher, Payne said the organizers would ensure everyone was welcomed, despite the generally negative publicity in some countries surrounding the evolving US immigration and visa policies. “The welcome mat is out,” he said. “All business is welcome and we want everyone to come. People particularly from the Muslim Middle East populated countries where this [travel] ban still exists is problematic. For our show, we get some participation, but it’s the bigger perception from other countries where they feel that no one wants them here. We recognize this is an issue. Hopefully it will fix itself. It is certainly not how our industry operates nor what it represents.” He added: “There has been some percentage decrease in the number of visitors to the US from select countries, but overall the US is experiencing a pretty good uptick.” He emphasized that the Summit was not a US event and only based there, but is and always has been a regional event.
In a program change for the 2019 Summit, the evening club venue will be held a 10-minute walk away from the hotel at a Cuban club, Cuba Libre. IAADFS/ASUTIL will take over the club on Monday and turn it into Club Mojito. On Tuesday the Club will become part of its Tuesday evening event. A big event will continue to be held on the Tuesday, but there won’t be a formal sit-down gala dinner, as before. “We’re going to try something different based on feedback and the demographics of our group. It will start later after dinner for those who want to entertain clients but will still provide dinner and networking for attendees prior to the entertainment and dancing. We are trying to see if this works for the varying demographics.I think this is a smart move. If it doesn’t work, we’ll adjust but we should look at different approaches.” He concluded: “We will encourage a more casual environment for participants, but I think that will be up to the attendees, and they will let us know how they like it or not.”
RED VILLAGE, H4
www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING
Sea change for
FDFA by HIBAH NOOR
After coming to the conclusion that its annual convention no longer held the excitement or value it once had, the FDFA has acted on recommendations by its board and Convention Strategic Committee to make radical changes in the way the convention and the association itself are run
he year 2017 marked the tide of change for Canada’s Frontier Duty Free Association (FDFA). The Convention and Trade show of 2016, was the 31st year of the event. During this time, it had remained virtually unchanged from its inception in terms of format and meetings. Board members recognized that the convention fell short on providing relevance and value to its members and decided something profound must be done. Over the years the association had slipped further and further away from focusing on its mandate, and the board recognized that this was having negative effects on its strength, viability and ability to fulfill its role. As an extension, the con-
Snapshots from the FDFA convention held in Montreal in 2017
vention seemed to no longer be achieving the goal of serving all participants, for a similar reason: that it was trying to do and be too many things. Early 2017, therefore, the board made some major decisions. In addition to deciding on and later carrying out changes at the executive level, the Strategic Convention Committee was formed, led by Tania Lee, VP Sales of Blue Water Bridge Duty Free and Vice President of FDFA. The committee’s mandate was to look in depth at the convention and bring back recommendations to the board of directors, based on the key criterion of bringing value to the suppliers and operators in terms of time, networking, budget and business opportunities.
A new perspective Tania Lee, VP Sales of Blue Water Bridge Duty Free and Vice President of FDFA
Last May, Lee presented the board with a host of recommendations, which were
36 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
all approved unanimously by the Board of Directors. “While value to all members remains the basis for the convention, this is now centered around the objectives of brand building, collaboration and growth,” she says. “These concepts were woven into each change that will be part of the new convention. Also, the recommendations capitalized on the size of the convention and on Canadian identity, all positive benefits. While the convention is certainly not the largest, it does allow for intimate meetings and is very cost effective, with most meetings occurring in suites rather than expensive trade exhibits. It also promotes close relationships between operators and suppliers, some of whom have forged great friendships over the years. We want suppliers to look forward to, and enjoy, our convention every year; we want it to be a bright spot in their yearly calendar.”
STYLE SHOWN: KAWIKA
The viewâ€™s better from here. Our lightweight PolarizedPlus2ÂŽ lenses are as flexible as you are, adapting to different light conditions while eliminating glare and enhancing color. Try on a pair and see for yourself. Color. Clarity. Detail.
The new format will include the following major differences: 1. There will no longer be a trade show floor 2. Days will be divided by product categories 3. Networking opportunities will be enhanced to focus on collaborating with suppliers and working as partners in our industry 4. Brand building will also feature heavily throughout the convention
How will this work?
One of the biggest questions the association has received, according to Lee, is how category days will work. “The division of categories is to give options to suppliers, many of whom had felt the length of the event was prohibitive,” she says. “Suppliers are able to manage their schedules according to category, with the option to stay for fewer days without compromising the time they are able to meet with operators. It really allows for a more efficient booking process. We are letting all suppliers know that they are welcome to stay for the entire show, however.”
Value to suppliers
Thus far, suppliers seem to appreciate the efforts and the new way of doing things. Lee says new suppliers confirmed for this year’s event include Swatch Group, Timex, Fielding Group, Noble Packaging, PK Staffing and Bugatti Group. “We are adding new components to the convention to address the removal of the trade floor and allow for participation of new members at the convention. This year we are having an event centered around craft distillers, for example. This
will allow new suppliers an opportunity to exhibit and sample new products while also adding excitement and interaction with operators.” Added value to suppliers will begin during opening night. “The opening cocktail will highlight a number of different brands within a mini-event format. The supplier is able to customize space within the opening cocktail, and brand the space accordingly. Some suppliers are bringing in mixologists and ambassadors to mix drinks, others are highlighting a number of brands with visuals, advertising elements and special cocktails.”
Information and ideas
Of course, suppliers are only one part of the event’s success. Access to innovation and resources forms part of the value equation to operators. “Larger suppliers have access to research, merchandising and professional companies that provide them with valuable ideas and insights into growth, marketing, logistics and more that may benefit duty free operators,” says Lee. “We have invited a few operators to share ideas and collaborate with us, with the goal of achieving growth in our different regions. This is meant as a supplement to the individual meeting format that forms the basis of the convention. These presentations will be interspersed throughout the week to allow for concurrent attendance to individual meetings.” Another new inclusion in the schedule is Airport and Associate Member Day. “This allows for airport and associate members to start their meetings on Sunday and have longer meetings on that day, if they so choose,” says Lee.
38 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
First year begins
“The theme of this year’s convention is Collaboration for Innovation, which encapsulates the findings of the committee and brings forward the full implementation of the changes originally recommended to the board,” says Lee. As yet it is too early to tell what the overall response will be to the new convention format, but Lee says conversations with members have been encouraging. “We are optimistic we will see an increase in operator participation,” she says. “We forecast a modest decrease in the suppliers that traditionally exhibited on the trade floor, but several longstanding trade-floor exhibitors are moving to suites or a private room this year. In addition, we received several applications for new suppliers, which has offset the trade floor decline. All in all there is a level of excitement from operators and suppliers for the new convention in November. We are all moving forward together with a great sense of anticipation.”
The year in whole
Two topics have been main priorities of the FDFA board this year: government relations and the convention. “Our businesses need to be relevant and prepared for an ever-changing retail world,” says Lee. “Part of this was to revamp our convention and bring in new ideas and ways of working better with our suppliers. Also, we are mindful of the political environment and changes to policy that can affect border crossings including tariffs, US policies, alerts and more. To this extent, we work closely with our government agencies and relevant associations to interject and consult to the betterment of our industry.”
T R AV A EL L ER E XCLUSI V E
THE GLENDRONACH FORGUE.
WHERE HIGHLAND SPIRIT MEETS SPANISH SHERRY OAK. Deep in the Highland hills, hidden in the fertile Valley of Forgue, The GlenDronach Distillery has been quietly mastering the art of sherry cask maturation since 1826. The GlenDronach Forgue Aged 10 Years is a perfect marriage of Scottish spirit and Spanish oak, matured in Pedro Ximénez and Oloroso sherry casks to create a richly sherried single Highland malt with a long, lingering ﬁnish. THE GLENDRONACH. SHERRY CASK CONNOISSEURS SINCE 1826.
Savour with time, drink responsibly.
The Glendronach is a registered trademark. ©2018 BenRiach. All rights reserved. Scotch Whisky, 43% Alc By Vol. Imported to U.S by Brown Forman, Louisville, KY
Elder support by RONNIE LOVLER
The day home at the San Ramon Home for the Elderly in Puerto Iguazú was built with funds raised at the London Supply’s annual golf tournament, part of its corporate social responsibility program
new day center for the elderly is now open in Puerto Iguazú thanks to funds donated by London Supply Group as part of the company’s corporate social responsibility program in Argentina. The money was raised through the company’s long-established charitable golf tournament for the San Ramon Home for the Elderly in the border city where London Supply Group has one of its biggest duty free operations. “This is an alternative for our elders, who may lack cognitive, physical and social stimulation in their homes but can find a space in the institutional environment which can serve them every day,” said London Supply CEO Teddy Taratuty in a brief address at the ribbon-cutting ceremonies for the facility. The San Ramon home provides services to 30 full-time residents and now, thanks to the expansion made possible by London Supply, the home will be able to provide daytime services to another 200 seniors in the community. In addition to construction of the new facility, the funds were used to make improvements to already existing structures at the home, according to London Supply Group Foundation Director, Maria Taratuty, Teddy’s daughter. The project was born out of conversations between Foundation Director Maria Taratuty and San Ramon administrator Sister Josefa that began in 2012. The London Supply commitment crystalized after Teddy and Maria had an audience with Pope Francis in the Vatican in 2013. 40 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
London Supply’s longestablished charitable golf tournament made San Ramon Home for the Elderly possible
The new building, 1165 square meters in size, overlooks the banks of the nearby Parana Rivera. It has a gym, dining room and kitchen as well as medical and administrative offices, nursing and rehabilitation rooms, a laundry room and toilets equipped for the elderly. Additionally, the facility houses a living area with game tables, where residents and daytime visitors can socialize. The funds used for the San Ramon project came from monies raised at the annual company golf tournament, held most recently in 2017. That year the tournament raised a record US$809,276. London Supply Group has been holding its annual charitable golf tournament for 14 years. The home itself is a donation from the London Supply Group Foundation to the Bishopric of the City of Puerto Iguazú, which is responsible for the home’s administration. Employees of London Supply’s duty free Shop in Puerto Iguazú also make weekly visits to engage with residents and daytime users for more people-to-people interaction. The London Supply Group Foundation was founded in 2008. Its motto has always been to “put more where there is less.” Other Foundation assistance projects include support for the Educational Park in a low-income neighborhood not far from the company’s duty free store in Puerto Iguazú. The foundation has also provided support for improvements at several hospitals and collaborates with a program to assist Holocaust survivors, among other initiatives. The fundraising golf tournament, known as the London Supply Cup, began in 2005 and has been held annually since then.
TRADITION OF GIVING may all your wishes come true Rituals helps you to slow down and unwind. Give an unforgettable experience. Renew, rebalance and relax body and soul with our collection of luxury gifts wrapped in beautiful keepsake boxes.
Y O U R B O D Y. Y O U R S O U L . Y O U R R I T U A L S . rituals.com
www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING INT_ADV Giftsets 2018 94x275 3mm bleed V1.indd 1
Building the biscuit category
Mondelez’ Oreo is the number one selling biscuit in the world
Taking the biscuit category to new heights As the biscuit category enjoys a resurgence of interest from consumers seeking a healthier alternative to chocolate, we speak to key industry players for their views by HIBAH NOOR
T In Dubai Duty Free, biscuits generated sales of around US$3 million in 2017, representing a 13% increase over 2016
42 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
en years ago, the confectionery category was dominated by chocolate. It still is – but major travel retail innovators are giving biscuits a more prominent place in the assortment. Saba Tahir, Senior Vice President - Purchasing, Dubai Duty Free, says biscuits have always been a staple product in the food category, but acknowledges that the interest in biscuits has grown tremendously over the past couple of years, as many new biscuit brands entered the UAE market last year.
Building the biscuit category
Loacker’s Best of 187g suitcase, a perfect gift for kids
She puts the renewed consumer interest in the category down to millennials and Generation Z consumers, due to the wide variety of healthy and nutritional options available now compared to previous years. In Dubai Duty Free, biscuits generated sales of around US$3 million in 2017, representing a 13% increase over 2016. January-April 2018 versus 2017 sales figures were static. The latest trends in healthy eating and marketing campaigns centered around this topic, including social media, have played an important role in boosting consumer awareness of the health benefits of superfoods that are highly valued for their medicinal properties and nutritional value. This has been a key in shifting the gears from traditional mass brands to healthier snacking options, she explained. In Dubai Duty Free, biscuits remain a classic buy, with passengers still going for the mass brands. “We have introduced organic, sugar-free and the healthy range options, but these merely scratched the surface of the biscuits business for DDF,” she noted. The space allocated to biscuits overall is small and depends largely on the shop. The displays in the newsagent shops and remote (satellite) shop are for snacking, whereas in the main Departures shops they are for occasional gifting and sharing, so product type and space differs. Dubai Duty Free strives to offer consumers the best choice and value for money, listing 18 brands from eight countries. Top performers in the category are Oreo and Chips Ahoy, Walkers, Loacker, McVitie’s and Merba. The customer profile is diverse, according to Tahir. In 2018 the top purchasers have been passengers from the Subcontinent (22.7%), followed by Africa, Middle East and Europe (17% each) and Asia (13.4%). Aside from the passengers, DDF’s in-house and airport staff have also been a very loyal customer base for the biscuit category.
Biscuits growing faster than chocolate
Jaya Singh, Managing Director, Mondelez World Travel Retail, European Export and Business Unit Switzerland (BUCH), says the biscuit category has been growing four times faster than
44 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
chocolate, while Mondelez’ sales of Oreo, the number one selling biscuit in the world, have tripled since its launch in travel retail in 2012. “We see all the right indicators for the potential of biscuits in the channel,” enthused Singh. “This is further underlined by the insight that 26% of those who do not otherwise buy confectionery in travel retail are willing to purchase biscuits.” The roll-out of the company’s Biscuit Bakery concept is well under way, Singh reports. Earlier this year, new biscuit products from Milka and Oreo were launched and Mondelez has been working on building up the presence of the biscuits category in duty free stores. “Our efforts have been very well received and start to demonstrate this opportunity is incremental,” he said. Daniel Kerschbaumer, International Sales Area Manager Middle East/Central Asia/India, A. Loacker AG/SpA, reckons that the biscuit category, especially the brand’s own wafer-biscuit segment, is growing in duty free shops, especially over the past two years. In 2017, the company managed to increase its duty free sales in the Middle East/Central Asia/India region by more than +50%. “Consumers very often are looking for an alternative to the wide selection of different chocolates, and very often they go for biscuits,” he said. “And meanwhile, we offer consumers a wide selection of different products for sharing, gifting, self-consumption and kids’ items, and definitely it’s helping that consumers are more and more looking for wafer biscuits.” While in the past wafer biscuits were mainly available in the domestic market, now many duty free operators see an additional value and offer for consumers, adding more categories like biscuits in the chocolate-dominated confectionery category. Loacker has felt the trend very strongly for some two/three years, Kerschbaumer noted. For Loacker, 2017 and the first half of 2018, especially in the Middle East and Asia region, performed extremely well, he added. Over the past years, the company has upgraded its duty free portfolio and today it offers around 20 different wafer-biscuit products to its duty free partners worldwide. These include sharing packs, mainly with its very successful pouch-bags, attractively presented gifting packs, smaller formats for self-consumption, and various children’s products such as hand puppets and a moneybox. Loacker’s most successful duty free item is its Best of 300g, containing a large selection of the most popular wafer and chocolate delicacies, and its new children’s item, the Best of 187g suitcase, which Kerschbaumer describes as the perfect gift for kids.
Spotlight On Exhibitors
The smarter wallets TRU VIRTU® is an innovative premium accessory brand from Germany, focused on 21st century wallets, due to their protection against illegal data theft of NFC/RFID chips, demagnetization and their minimalistic design. Since the product debuted in 2010, TRU VIRTU® has grown into an international premium accessory brand, now sold in more than 3,000 stores in 35 markets worldwide. “We are now ready to expand into the Americas region where we are partnering with International Brand Builders Inc (IBBI) to expand our products in the travel retail sector,” says Thomas
Wingerter, CEO, TRU VIRTU®. “Partnering with a local team who have the sales and service necessary to train and educate retailers and consumers is key to our success.” IBBI’s Katherine Sleipnes adds: “It’s exciting to bring such innovative and well-made products that are so relevant to travelers to our region, and we look forward to a successful partnership.” TRU VIRTU®, whose marketing tagline is ‘Reduced to the max’, will be presenting its range at the TFWA World Exhibition (Stand number: Red Village J21) and launching new styles of the CLICK & SLIDE wallet, which is already a best-seller on many airlines, such as Emirates, Singapore, Swiss and Austrian Airlines.
Made in Germany meets Italian Leather TRU VIRTU® is ready to expand into the Americas region with International Brand Builders Inc
The technology of the new TRU VIRTU® CLICK & SLIDE wallet, developed, patented and made in Germany, offers fast access to the most important cards, and it’s not much bigger than a credit card. With one click, up to five cards slide out automatically – without even opening the wallet. The folded leather section of the wallet gives the added advantage that tap-and-go metro access cards can also be used conveniently. CLICK & SLIDE fits in any pocket and is ideal for everyday use, as it is compact and very slim. The envelope is made of fine Italian leather and offers space for additional cards and banknotes.
Scents and beauty House of Sillage is set to sparkle with the debut of its limited-edition lipstick. The high-end product is an extension of the cosmetics line that follows the same style and philosophy Nicole Mather, Founder and CEO, created for the American haute parfumerie brand’s signature fragrances. Inspired by the beauty of the iconic bow emblem, the limited-edition lipstick case is encrusted with over 300 brilliant diamond-cut Swarovski crystals and is infused with crushed diamond powder. The brand offers 14 customizable shades. The company is ready to give the travel retail sector its full attention. “There is so much opportunity for us to explore within travel retail,” says Sophie Nicolaou, Marketing Director, House of Sillage. “This will become a huge focus for us in 2019 and we are currently plotting and planning our strategic goals. We are still a young company and the brand continues to mature with more depth to our collection. We feel we can provide an alternative experience within luxury at that level.” House of Sillage will continue to focus on expansion of the lipstick line and fragrance collection. In some cases, this will be an extension of current collections (Whispers in the Garden) and also the development of new ones, too. The brand continues to promote its impressive packaging, product sustainability and maintaining the quality ingredients and performance formulas. “Our products tell a story and come from an inspired place. That’s how Nicole has always approached the creations. They each tell their own story, their way. And these new products we are working on will follow the same philosophy,” reveals Nicolaou. 46 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
The men’s line is also prospering as the brand grows with positive feedback. House of Sillage, known for its successful women’s travel products, is incorporating a men’s travel spray line to meet the growing interest. “This is, of course, the perfect fit for travel retail, and our Russian and Middle Eastern distributors have voiced this request quite a bit of late,” says Nicolaou. The company continues to explore innovations and engaging opportunities in travel retail to grow global awareness. House of Sillage is currently planning a pop-up at South Coast Plaza, which is in line with the engaging activities the brand likes to promote. Located in Costa Mesa, California, it is the largest mall on the West Coast of the United States. “Exploring these kind of opportunities is something we are very much looking at, not only from a traditional shopping delivery system, but within travel retail, too,” enthuses Nicolaou. House of Sillage stays true to its luxury offerings by introducing its limited-edition lipstick encrusted with Swarovski crystals
Spotlight On Exhibitors
Flor de Caña’s sustainable success Nicaraguan premium rum Flor de Caña, whose brand icon is the volcano, will be showcasing its premium export during the TFWA World Exhibition on the yacht Evidence this year. The brand, currently available in over 40 countries, has become one of the fastest-growing rums in the United States. Flor de Caña was named 2017 Global Rum Producer of the Year by the prestigious International Wine & Spirit Competition (IWSC) in London. Flor de Caña supports sustainability in its many projects. The rum has been distilled with 100% renewable energy over the last 10 years. Every year, the company invests in a Forestation Campaign, planting over 50,000 trees to protect the wildlife in the region. There is also a recycling program in place for cardboard, glass and plastic. The company reduces carbon dioxide by capturing 13 million pounds of C02 during the fermentation process and sells it to the soft drink and beer industry. The brand continues to promote its environmental initiatives as it experiences global growth. Flor de Caña, a fifth-generation single family estate rum, is naturally aged without sugar, additives or artificial ingredients.
Flor de Caña celebrates being named 2017 Global Rum Producer of the Year
East India Company to boost Wellness tea range
The family of new Wellness teas and infusions contain allnatural ingredients and help to restore your inner balance
48 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
The East India Company is set to celebrate a modern blend of two tea traditions with the exclusive launch of its Matcha&Chai Blend Green Tea at the TFWA World Exhibition in October (Stand number: Red Village J1). The contemporary fusion of these two distinctive and exotic teas creates a harmonious balance of refreshment and comfort to reset, revive and restore inner balance, the company said. The product joins the company’s family of new Wellness teas and infusions. It contains pure matcha fused with all-natural chai spice. “This exquisite matcha is a lovely vibrant green color with the revitalizing pungency of classic natural spices,” said Lalith Lenadora, Tea Master. The tea has a delicate, smooth balance, enriched with a creamy taste. It can be enjoyed as a booster shot in the morning in place of an espresso or with milk as a latte. It can be made with soya or almond milk for a varied profile, or with sweetened condensed milk for a twist on the classic Indian masala chai. The ingredients are matcha, cardamom, ginger, cinnamon and the company’s secret Bombay spice mix. The matcha green tea comes from a garden run by the Hattori family in Japan. Hattori-san grinds the Tencha base in a traditional stone mill just before shipping, ensuring freshness. East India Company’s range of teas and infusions are made with all-natural ingredients and help to restore your inner balance, according to the firm. The Wellness range includes: RELAX – Lemongrass & Turmeric (50g); PROTECT – Matcha & Turmeric (50g); FEEL GOOD – Gaba Oolong (50g); and SOOTHE – Barley & Mint Infusion (50g).
SUBSCRIBE TO AMERICAS DUTY FREE MAGAZINE
ONE YEAR – 5 ISSUE AND 24 ENEWSLETTERS
Subscribe to Americas Duty Free & Travel Retailing Magazine and its monthly eNewsletter to keep you informed of the latest news. Simply fill out and return this subscription card to the following address, or fax with your credit card details to +1 905-821-2777
TWO YEARS – 10 ISSUES AND 48 ENEWSLETTERS
Please fill out this form and fax to 1-905-821-2777 or email to firstname.lastname@example.org
Americas Duty Free & Travel Retailing magazine 26 Pearl Street, Mississauga, ON Canada L5M 1X2 Tel: 1-905-821-3344 Fax: 1-905-821-2777 email: email@example.com
) area code
) area code
SIGN ME UP! I would like to receive a subscription to magazine ❑ One Year US$200.00 ❑ Two Year US$300.00
Enclosed is a cheque or money order made payable to Global Marketing Company Ltd.
credit card number
date Payment in U. S. funds must ac c ompany this s ubs c ription c ard.
The Untangled Collection will include four new frame styles made from 100% recycled fishing nets, each featuring mineral glass polarized lenses, recycled aluminum Costa logos, PLUSfoam recyclable temple and nose pads, and a distinctive tumbled finish
Costa takes on healthy ocean challenge
Performance eyewear supplier Costa Sunglasses has developed an eyewear collection that’s true to its sustainability values
osta Sunglasses, the initiator of the growing Kick Plastic campaign, is helping to bring positive solutions to the growing issue of ocean plastic pollution through its new Untangled Collection—a collection of frames made entirely from recycled fishing nets. The brand is partnering with Bureo, the pioneer in recycled fishnet products, to turn discarded fishing nets into quality sunglass frames. Identified as the most harmful form of ocean plastic, discarded fishing nets and gear account for 10% of ocean plastic pollution, which grows by an estimated 640,000 tons every year. The new collection was launched with US retailers and online in late May 2018. “Healthy oceans have always been a crucial part of our core mission at Costa,” said Holly Rush, CEO, Costa Sunglasses. “The Untangled Collection is helping to raise awareness and provide a solution to keep discarded fishing nets from being lost in our oceans each year. Through this important program, we will also help Bureo scale and replicate its net collection program to a growing number of fishing communities.”
Distinctive tumbled finish
The collection will include four new frame styles made from 100% recycled fishing nets, each featuring mineral glass polarized lenses, recycled aluminum Costa logos, PLUSfoam recyclable temple and nose pads, and a distinctive tumbled finish. It includes two male/unisex styles, Pescador and Baffin; and two female styles, Victoria and Caldera. All styles feature Costa’s patented 580 Lightwave Glass lenses, providing 100% UV protection and polarization. The Costa 580 color-enhancing lens technology selectively filters out harsh yellow light for superior contrast and definition and absorbs high-energy blue light to cut haze and enhance sharpness. In addition, Costa’s lens technology reduces glare and eye fatigue. “Aligning with partners that really want to support us and expand our mission is how we’ve grown over the past five years,” said David Stover, CEO and cofounder of Bureo. “Working with Costa to develop the Untangled Collection is another step in the right direction—not only for us, but for the replication of solutions to secure a healthy future for our ocean and its ecosystems.”
50 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
Bureo’s Net+Positiva recycling program is working to prevent fishing net pollution by partnering directly with fishermen to collect back discarded nets at their end of life and providing funds to local communities for every pound of fishing net collected. This in turn creates value in the discarded material, to generate a net positive impact for this once harmful material. Costa’s Untangled Collection supports Bureo’s ongoing efforts where they have collected more than 220,000 pounds of discarded fishing nets to date. Once collected, the discarded fishing nets are washed and prepared for a mechanical recycling process. They are shredded, cut into small recycled pellets, and then injected into steel molds to form products, including Costa’s Untangled Collection. Models in The Untangled Collection retail from US$199 to US$269. As the leading manufacturer of the world’s clearest polarized performance sunglasses, Costa offers superior lens technology and durability. Still handcrafted in Florida, Costa has created performance sunglasses and prescription sunglasses (Rx) for outdoor enthusiasts since 1983.
A new wave
The number of professionals attending the Cosmoprof exhibition exceeded the 250,000 visitors of the 2017 edition
Cosmoprof’s Enrico Zannini discusses millennials and the growing beauty segment by MARY JANE PITTILLA
s new distribution models shake up the purchasing behavior of millennial consumers, sustainability, personalization and wellness are key. Duty Free & Travel Retailing Magazine speaks with Enrico Zannini, Director of Cosmoprof Worldwide Bologna, to find out more about today’s major beauty trends.
DF&TRM: What product trends are you seeing in the fragrance and cosmetics industry? EZ: The fragrance and cosmetics industry is influenced by the two main trends of beauty world in general: sustainability and personalization. On the one hand, consumers are looking for green and certified ingredients, restoring the natural equilibrium of the skin and body. On the other hand, there is deep research for personalized fragrances and formulas, fulfilling specific needs and taste. Personalized items are the new luxury today. DF&TRM: How important is the wellness sector becoming in the industry? EZ: Wellness and spa are growing segments in the beauty industry. The hectic daily life we face in this historic period increases the need for beauty treatments restoring our wellbeing, a moment of relaxation for the care of the mind and the body together. The new wellness and spa centres need to satisfy the need for efficient treatments, a true escape from reality. This is why the main trends of this segment recall ancient philosophies and a bounce into nature. DF&TRM: What trends are you seeing in consumer behavior? Who is buying fragrance/cosmetics products now? EZ: Nowadays the main challenge for companies producing fragrances and skincare products is to attract millennials, creating a relationship with them, which may be similar to a traditional concept of “fidelity to the brand”.
Enrico Zannini, Director of Cosmoprof Worldwide Bologna
52 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
DF&TRM: How is the industry targeting these consumers? EZ: Nowadays the different distribution channels make it possible for consumers to buy products anywhere, at any time and with almost no effort – not even moving from your sofa – so brands need to create a different relationship with customers, which must be more personal and responsive.
DF&TRM: How important is travel retail to the industry? Is it becoming more important? EZ: Travel retail is a very important distribution channel for fragrance and skincare brands. The analysis of the economic data shows that travelers across the world are used to buying beauty products in duty free malls. This is a growing trend in the Middle East and emerging markets, above all, where local customers look for the international brands available in duty free as a status symbol for luxury.
Cosmoprof 2018, which took place in March in Bologna, registered astonishing results, according to Gianpiero Calzolari, President of BolognaFiere
“Astonishing” success for Cosmoprof 2018 Cosmoprof 2018, which took place in March, registered astonishing results, according to Gianpiero Calzolari, President of BolognaFiere. The number of professionals attending the exhibition exceeded the 250,000 visitors of the 2017 edition. Record numbers were also registered for exhibitors – some 2,822, from 70 countries. The Cosmoprof Awards celebrated the most innovative companies, while the Career Award went to Jean Claude Ellena, the famous nose of French luxury house Hermes. High-end perfumery gained a dedicated section in the fair for the first time. Great results were also seen for the Cosmoprof charity initiative, titled Boutique, dedicated to Roberto Kerkoc, VicePresident of BolognaFiere, who passed away last year. 20 exhibiting companies made their products available. Some 2,822 exhibitors from 70 countries were showcased at Cosmoprof 2018
54 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
“Attendees took part in the initiative with passion, and the products were sold out from the very beginning of the show,” the organizers said. Proceeds went to the Istituto Scientifico Romagnolo per lo Studio e la Cura dei Tumori (IRST) – the institute in Emilia Romagna for research against cancer. The organizers executed Cosmoprof Mumbai in September, further strengthening its international platform, which already spans Asia and North America. Other rendez-vous for the Cosmoprof community: Cosmoprof North America in Las Vegas (from July 29 to 31), Cosmoprof India in Mumbai (September 10 to 11) and Cosmoprof Asia in Hong Kong (from November 13 to 15 with Cosmopack Asia and from November 14 to 16 with Cosmoprof Asia).
People drive organic growth - discuss. EARLY BIRD RATE
10 % DISCOUNT
CONFERENCE & AWARDS 6/7th December 2018 Radisson Blu Edwardian Hotel London Heathrow ‘Our People Matter’ conference will challenge, highlight and discuss how we can empower our industry’s front & back of house heroes to be the people we need them to be.
TS TICKE E L ON SA NOW
OFFICIAL MEDIA PARTNERS
For a full list of awards, award entries details, programme and sponsorship opportunities, please visit our website www.ispyacademy.com or contact Christine Martin: Email firstname.lastname@example.org Tel +44 7811372891
Best-sellers in the beauty category in Brazil are the renowned brands such as MAC, Victoria’s Secret, and Chanel
Boosting the luxury
experience by HIBAH NOOR
Gustavo Fagundes, COO of Region America II (Brazil and Bolivia), Dufry
Beauty is a booming business in Brazil for the region’s leading operator Dufry, with both local and international brands feeling the benefits
he perfumes and cosmetics category in the Latin American travel retail market has been developing very well, with a positive performance in the last quarters, according to Gustavo Fagundes, COO of Region America II (Brazil and Bolivia), Dufry. The region’s leading travel retailer has recently been seeing currency volatility, but this is expected to ease over time. “Looking ahead, we expect the exchange rate to keep stabilizing not only in Brazil, based on future prospects for the political and economic situation, but also in other countries, with no major changes in the world economic scenario,” he said.
56 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
Dufry’s beauty department at São Paulo Guarulhos Duty Free includes major luxury brands such as French house Dior
Dufry has been using digitalization tools in its business to achieve important targets. They include increasing communication with customers and individualizing the shopping experience. In addition, the digitalization of its stores is expected to improve customer service and allow more dynamic promotional activities and simplification of in-store processes. “All together, and with a close partnership with our suppliers, we believe we will be able to boost even further our assortment, especially by exclusive promotions and novelties. In addition, for this year, we will have special projects in the category that will boost the luxury experience for our customers,” he revealed. Beauty is one of the most popular categories, not only for the Dufry group as a whole, where it accounts for 32% of sales, but also for Latin America and other major locations in the company’s Americas operations, where it contributes a similar percentage. “The category has presented very good results in the last years and began the year performing very well,” he enthused.
In terms of space, a large area is dedicated to perfumes and cosmetics in Dufry stores, as it is one of the main categories – and also the fastest-growing. The bestsellers in the beauty category in Brazil are the renowned brands such as MAC, Victoria’s Secret, and Chanel. Dufry always aims to improve its product assortment to enhance its portfolio as well as offer new customer experiences. Dufry also seeks to attract customers by adding novelties to its product portfolio coming from new brands and sub-categories, such as the hair care segment with the recent introduction of Kérastase, for example. Fagundes pointed to the Dermacenter concept created to showcase the skincare expertise of L’Oréal brands, such as Vichy and La Roche Posay. This has been well accepted and a success in Brazil, he said. Promotions and travel retail exclusive products, such as fragrance value sets and miniatures, also play an important role as sales and penetration drivers, and are responsible for a growing part of the total turnover, he noted. Overall, local brands are very impor-
tant in attracting passengers to the stores. And, for the beauty category, local brands are also relevant for foreigners and can be a different and memorable gift, as a souvenir from the city visited, he observed. Dufry is making a great effort to develop the sense of place experience, offering shoppers the opportunity to take away a souvenir of their trip in an ambience that reflects the location. Examples have included a Dior pop-up store at Terminal 3 in São Paulo Guarulhos Airport, where Dufry promoted a unique luxury experience for passengers, tailored to present new brands and products in the Brazilian market as well as offering the best services from a major luxury brand. “That is unique in Latin America,” enthused Fagundes. “We also launched in 2016, a Destination shop concept at RIOgaleão Airport dedicated to local brands, which captures the color and energy of the most famous neighborhoods in Rio de Janeiro. This year, the same concept will also be present in Guarulhos Airport, bringing the sense of place with a dedicated shop featuring local elements and the most wanted Brazilian products,” he added.
www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING
Inter Parfums USA
From fairyland to festivals Fragrance supplier Inter Parfums USA will be inspired by the fantasy world of unicorns and the carefree vibe of the festival season in the coming year
nter Parfums USA has exciting plans for 2019 centered on the latest Fantasia fragrance from fashion brand Anna Sui and the newly launched Hollister fragrance, Festival Vibes. The company is set to continue to animate and push its big Anna Sui franchise, Fantasia, which was introduced last year. The unicorn-themed launch will stay in the magical world of Anna Sui, bringing magic and fairyland to the point of sale. With her blockbuster modern and playful fragrance, the American fashion designer speaks to the young girl in every woman that inspires her to dream. Fantasia’s faceted glass bottle is feminine and elegant, yet playful. The bottle is topped with a precious gold unicorn that invites us into Anna Sui’s magical world. The leaves and flowers adorning the bottle represent the magical forest. The gold ring with the embossed Fantasia logo adds an element of luxury. The edt fragrance is a precious golden elixir that adds an ethereal touch to this glamorous creation.
On the folding carton, the unicorn is surrounded by a magical rainbow of stars and flowers. A new olfactory signature for the brand, the woody, fruity floral scent promises mystery, blended with Fantasia is a unicornsensuality and femininity. themed fragrance Top notes are a pink pomelo evoking the magical world of American potion and spicy pink pepdesigner Anna Sui per. The heart is a floral bouquet with a raspberry praline to contrast the sparkling top, while golden cypress and Himalayan swirl. The cap has a surprising pop of cedar wood add woodsy freshness. bright yellow as an accent. Shot by Steven Meisel and featuring The fresh fougere men’s line is model Willow Hand, the Fantasia magic described as energizing and magnetic comes to life in a colorful and joyful and puts a spin on a classic composition. ad campaign. The top notes rejuvenate the senses with pineapple, birch leaves and marine air. Two upbeat fragrances The mid notes feature a herbal woody Meanwhile, the Hollister fragrance brand accord, ginger root and bay leaves. The continues to party with Festival Vibes, dry down is a trio of oak moss, tonka launched in summer 2018, which celebrates bean and ambergris. the carefree, music-filled festiThe men’s bottle has a strong, stateval scene. ment oval shape, and the soft-touch Described as fresh and cool, silicone sleeve comes in a blue tie-dye the line consists of two upbeat pattern. The clear glass and marbleized fragrances: Festival Vibes for silicone is topped off with a sleek cap. Him and for Her. The ad campaign features the festivalThe fruity floral women’s goers scrolling through snapshots from line opens with Italian bertheir best weekend ever. gamot, fresh quince and goji And the party will continue next year. berries. The heart notes feature Building on Festival Vibes, a new “night” pink peony, osmanthus, vanilla edition will be launched in 2019. orchid, and coral hibiscus, and Also coming up for 2019 is a new the dry down comprises cashblockbuster in the second semester for mere woods, tonka and musk. Abercrombie & Fitch, which will tie The soft, feminine bottle back to the authenticity and history of shape is inspired by the chic, the brand. reusable water bottles the In addition, Inter Parfums reveals that festival girl always carries in a new development is coming for Guess her bag, while the colorful tieto repush existing lines, while keeping dye, soft-touch silicone sleeve the seduction and the LA vibe the fashion features a vivid coral and pink brand is known for. Festival Vibes, launched in summer 2018, celebrates the carefree, music-filled festival scene
58 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
Britainâ€™s leading affordable luxury handbag and accessories brand. Visit us on stand D18 in the Blue Village.
A time and place for
Daniel Wellington, a brand known for minimalistic design, continues to strengthen brand awareness through social media
Relatively new to travel retail, Daniel Wellington is showing how its social media presence has helped convey its brand message in an otherwise traditional industry by JAS RYAT
aniel Wellington is the embodiment of a brand that has used its social media strengths to propel itself forward in an otherwise traditional global travel retail world. The watch brand known for its minimalistic nautical designs has built on relationships with influencers, bloggers and other social media platforms to establish a global presence within the last seven years. Americas Duty Free magazine spoke to Brianna Amoroso, Head of Travel Retail, Americas at Daniel Wellington and Nicole Riportella, Assistant Account Executive, Travel Retail at Daniel Wellington, to understand how this Swedish brand has taken its e-commerce success and translated it to the channel.
“The brand completely started off on Instagram in regard to marketing. We started solely on an e-commerce platform and then eventually went offline. Daniel Wellington has always been very online-driven brand,” says Amoroso. She explains that the millennial demographic the brand appeals to plays an important role in how it conveys its message. “The demographic we are focusing on definitely has an impact. We are thinking of ways to incorporate this fresh form of marketing to the more traditional environment of travel retail, but also stay true to the brand heritage,” she says. Through travel retail tradeshows, the brand wants to communicate that it connects with the millennial demographic
(L-R) Nicole Riportella, Assistant Account Executive with Brianna Amoroso, Head of Travel Retail share the value social media brings to the Daniel Wellington brand
extremely well. “We try to express to the operators that we can bridge that gap. We can help be that Segway to that market,” enthuses Amoroso.
Daniel Wellington Americas is making a splash in the cruise sector, as nearly 75% to 80% of its Travel Retail business is with cruise lines. The brand has done a great job connecting the original Classic Collection that exemplifies a nautical feel to cruise ships. In addition, the shopping events onboard have done well for Daniel Wellington due to a price point that lands right under US$200, positioning the watch in the sweet spot for gifting. This has helped with its cruise presence in Latin America, where the brand is experiencing growth. “Due to the pace of the industry in the US airports, I think that has affected growth in South America. Now we are seeing a lot of traction in the local market in South America and we will be launching in Falabella, the largest department store, on September 1, 2018,” shares Amoroso, who believes this will be a strong introduction for the brand in this region. Asia continues dominate as the strongest region overall for the brand, bearing in mind the Americas is the youngest.
Strengthening brand presence
The focus for the upcoming year will continue to be expansion through controlled distribution. Amoroso stresses the importance of meeting with key partners and strengthening brand presence and awareness. Although the brand is still considered relatively young in travel retail, breaking things up in terms of region has helped solidify relationships and brand awareness globally. The brand continues to be a social media trailblazer in travel retail.
60 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
MAUI JIM fishes for
Maui Jim Sunglasses
Sunglass specialist Maui Jim is inspired by its colorful Hawaiian heritage in the newest styles to hit the travel retail shelves
The new Cinder Cone matte titanium aviators are fitted with Maui Jim’s most advanced lens material
remium sunglasses supplier Maui Jim is hoping to net traveling consumers with the launch of the Shoal model, featuring the new MAUIGreen mirror coating, which will surface for the first time in travel retail at the TFWA World Exhibition in October. Following the success of the Maui Sunrise and Blue Hawaii mirror sunglasses, MAUIGreen is the latest Maui Jim PolarizedPlus2 fashion lens with a green mirror coating on SuperThin (ST) Glass for extra-clear optics. Inspired by the lush beauty of the rain-forested hills of East Maui that sweep down to the azure ocean, MAUIGreen has a subtle green-blue iridescence. Available initially only in Shoal (#797), a refined lightweight Monel metal frame to suit any occasion, the MAUIGreen treatment will be applied to other popular sunglass styles in the coming months.
Sunglasses with unisex appeal
Blue Hawaii has been so successful that it is offered as a lens color option on several of the exciting new styles to debut in Cannes, including the chic Pineapple (#784) with its round, nylon-framed ST Glass lenses and the matte crystal color variant of the Tumbleland (#770) midsize wrap. New Cinder Cone (#789) and Lava Tube (#786) matte titanium aviators are
fitted with Maui Jim’s most advanced lens material, MauiBrilliant, and come in four color references, including Blue Hawaii and MAUI Sunrise for unisex appeal. Consumers who prefer to see the world through more traditional HCL Bronze, Maui Rose and Neutral Grey PolarizedPlus2 lenses have a wide selection to choose from in the Maui Jim catalog, including new cat-eye fashion frame Ku’uipo (#799) in three marbled designs and the
bold Siren Song (#801) in crystal pink or tortoiseshell color combinations. Maui Jim sunglasses were developed on the beaches of Maui in Hawaii and are designed to protect eyes from the harsh rays of the sun. Today, Maui Jim’s patented PolarizedPlus2 lens technology cuts 100% of UV rays and eliminates glare while enhancing color, definition and depth perception in more than 115 different styles of sunglasses available worldwide. Maui Jim sunglasses have earned the Skin Cancer Foundation Seal of Recommendation as an effective UV filter for the eyes and surrounding skin. For more information, visit MauiJim.com or follow on Facebook, Twitter or Instagram at @ OfficialMauiJim. * Buyers at the TFWA World Exhibition can visit the Maui Jim team on stand Green Village M59.
Maui Jim’s Shoal model features the new MAUIGreen mirror coating, which will be launched in travel retail at the TFWA World Exhibition
The new Tumbleland (#770) midsize wrap model incorporates the successful Blue Hawaii mirror lens
www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING
Guylian shifts upmarket with new Golden Collection travel-exclusive range Guylian Belgian Chocolates is set to go even more premium with the launch of the travel-exclusive Guylian Golden Collection. Last year, Chocolaterie Guylian celebrated its 50th anniversary with the launch of Guylian Master’s Selection, a premium range of surprisingly flavored mini chocolates in luxurious gift boxes. This year, Guylian plans to further premiumize the brand with the launch of the luxurious Guylian Golden Collection, encompassing a travel retail exclusive range. Said Mieke Callebaut, Managing Director, Guylian: “The launch of Guylian Master’s Selection in 2017 was a milestone in Chocolaterie Guylian’s journey to premiumize the Guylian brand. Over the next two years, the full Guylian product range will become even more premium as all products and packaging will be rejuvenated and gradually re-launched.” Guylian Master’s Selection was a first step in the company’s new brand strategy to differentiate travel retail from mass retail. The next step is the Guylian Golden Collection, which will be introduced at the TFWA World Exhibition in Cannes (Stand number: Mediterranean Village P13). In a further innovation, Guylian has announced its ambition to become the leading palm oil-free Belgian chocolate brand. The company explained that its Guylian Sea Shell and Sea Horse Chocolates have never contained palm oil. They are made from 100% pure cocoa butter and filled with Original Hazelnut Praliné and Dark Hazelnut Praliné. Now, all Guylian chocolates with truffle fillings are also palm oil-free. Palm oil has been replaced with sustainable shea butter and sunflower oil, resulting in smoother textured and even better-tasting chocolates which are better for the planet and for health, with less saturated fat and less sugar, Guylian said.
Guylian Master’s Selection is a premium range of surprisingly flavored mini chocolates in luxurious gift boxes
62 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
Republica del Cacao, known for its sustainable fine cacao, will be taking its first step into the European market
Latin American chocolate brand Republica del Cacao sets sights on Europe Latin American Republica del Cacao, known for its fine cacao chocolate, will soon be available in Europe. The brand has a strong relationship with local communities, developing sustainable fine cacao production at its source, while preserving the agricultural treasure in the region, fine aroma cacao. The brand has created a network of fine cacao producers and local ingredient small farmers in Ecuador, Peru, Colombia and Dominican Republic, paying fair prices for their products and signing long term contracts, helping these communities improve their crops and support their families. Republica del Cacao’s strategic focus is based in travel retail. It has a presence in some of the main duty free operators in the world such as Dufry, DFA, Motta, amongst others. Currently it is available at duty free stores in Bogotá, Quito, Guayaquil, Lima, Santiago de Chile, Punta Cana, Vancouver, Jordan, Singapore, with future availability in Panama, Cartagena and Argentina. Part of the strategy for this channel, has been the creation of a unique portfolio and brand identity. For the European market, República del Cacao, is launching a line of Single Origin Dark Chocolate bars with fine cacao from Ecuador, Colombia, Peru and Dominican Republic, as well as a line of dark chocolate bars with locally farmed exotic fruits and unique ingredients, together with a line of ultra premium gift boxes. This new collection will be launched at TFWA Cannes this year. The brand shares its passion for fine cacao with customers through their duty free store-in-store personalized spaces. Brand ambassadors combined with sales force offer a specialized service to customers, teaching them about the origin of fine cacao and turning the brand itself into a travel destination. The brand currently has 30 chocolate boutiques located in high traffic locations for travelers and consumers in Ecuador, Peru, Colombia and the United States which brings enormous brand exposure and awareness for the development of the brand, its chocolates and its work in the protection of LatinAmerican fine cacao. Republica del Cacao will be present at TFWA Cannes in October 2018 for the first time, with the aim of introducing its products to the European travel retail market and is very confident this will be a next great step that reinforces the success of the brand. Republica del Cacao’s stand location in TFWA will be Riviera Village RH 16.
DUTY FREE & TRAVEL RETAIL
NEW VENUE HYATT REGENCY ORLANDO
SUMMIT OF THE
AMERICAS A PLACE TO DO BUSINESS WITHOUT ALL THE USUAL DISRUPTION A TIME TO DIALOGUE DIRECTLY WITH EACH OTHER A WAY TO LEARN ABOUT SHARED PROBLEMS & SUCCESSES ASUTIL & IAADFS A gathering of people who care deeply about Duty Free & Travel Retail
www.2019summitoftheamericas.org March 24â€“27, 2019 Hyatt Regency Orlando Orlando, Florida, USA
Ferrero lines up new exclusives for travel retail Ferrero Travel Market is set to introduce a new assortment of travel-exclusive products at the TFWA World Exhibition (Stand number: Bay Village Bay 8). Among the highlights are hero products from each of the company’s brands: Kinder, Nutella, Tic Tac and Ferrero Rocher. The new Kinder Surprise Maxi 100g comes in three colorful monster-shaped editions with surprises inside that glow in the dark, all designed exclusively for the travel market. Sharing happiness is a strong purchase motivation for travelers, particularly among people who travel on business, the company noted. Kinder Surprise is the top-selling confectionery product for special occasions, enabling people to share a special moment with their children when they get home. The Kinder gifting range continues to outperform the market, again delivering double-digit growth of 18% in the third quarter versus the previous year, Ferrero revealed. Developed to make a luxurious yet informal gift, the new Ferrero Rocher 100g pack offers eight pralines in a travel-exclusive gift box adorned with a golden map of the world and inscribed with an inspiring‘Where do we go next’ message. Ferrero Rocher’s design achieved the highest scores for being “distinctive & unique” in a study conducted by CiR in November 2017, and the high scores awarded by respondents on the “intention to buy” confirm that this offer has an accessible price point, the company said. Set to celebrate its 50th anniversary next year, Nutella is set to launch an exclusive travelers’ version of Nutella B-ready, which is dubbed “the easy way to enjoy Nutella anywhere”. The crunchy texture and slightly savory taste of the outer wafer shell of this Nutella bar was created to enhance the taste of Nutella, making it a perfect on-the-go, ready-to-eat snack.
Originally launched in 2013, Nutella B-ready will now be available to the traveling consumer in a new and exclusive super-size pack of a dozen single portions that is designed to address the need to share while traveling. In the non-chocolate confectionery, the latest innovations from the Tic Tac mint brand are designed leverage new and exciting flavor combinations. The Tic Tac Travels Multi-flavor pack contains four flavors of the mints, available together only in this special multi-pack, which was designed exclusively for travel retail. Cute graphics of the flavor characters illustrate Buddy Lime, My Strawberry, Dr Red Apple and Mr Banana going on their travels. The launch of this multi-pack reflects the fact that 90% of the sugar offer on-shelf today is multi-flavored, and flavor extensions are the key driver of innovation launches in this category, Ferrero Travel Market said.
The new Kinder Surprise Maxi 100g comes in three colorful monstershaped editions with surprises inside that glow in the dark
Butlers shows its dark side
Butlers promotes its dark side with exclusive new dark chocolate mini bars
64 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
Irish family-owned chocolatier Butlers will be unveiling exclusive new dark chocolate mini bars and a new Dark Chocolate Collection at the TFWA World Exhibition in Cannes (Stand number: Green Village L56). The travel retail portfolio will expand with a selection of four individually wrapped mini bars in the cocoa flavors of 85%, 78%, 70% and Dark Chocolate Salted Caramel Crunch, presented in a tapered box hand-tied with a matching ribbon. Building on the successful launch of The Chocolate Collection at the TFWA Asia Pacific fair, Butlers will debut a new Dark Chocolate Collection variant, containing an assortment of intense dark truffles and pralines. The Chocolate Collection features an assortment of luxury chocolates in elegant ivory gift boxes and finished with a stylish sleeve. The selection inside centers on popular Asian flavors, including Green Tea, Spiced Chai and Mango & Lemongrass. Butlers will also unveil a contemporary new look for its popular Premium Selection Assortment, Dark Premium Assortment and premium gift-wrapped ballotins. Each compilation will contain a new arrangement of classic and contemporary chocolates from the Butlers signature range. Additionally, Butlers’ Drumshanbo Gunpowder Irish Gin flavored milk chocolate collection will also be on display. Following its successful unveiling at last year’s show, the popular collaboration between Butlers and The Shed Distillery of P.J. Rigney has piqued interest for chocolate and gin lovers around the globe, the company said.
CONFECTIONERY LIQUOR NEWS NEWS
Mars to reveal ground-breaking insights into why travelers shop Mars International Travel Retail is set to reveal new insights that focus on why travelers shop for confectionery at the TFWA World Exhibition this October (Stand number: Bay Village 9). As part of its refreshed Category Vision, Mars ITR will explain how these reasons translate to global travel retail and how they will help address the category’s key challenge of converting travelers into shoppers. Alongside the background to these findings, Mars ITR will demonstrate to its customers the importance of offering a complete product offer to travelers covering all purchasing reasons. That includes not only the traditional chocolate treats but also confections, gum and mints. “When purchasing confectionery, consumers generally shop for one of four different reasons,” said Raghav Rekhi, Category Director Mars ITR. “To recharge, to reward themselves, to connect with others, or to celebrate. In global travel retail, purchasing is primarily to connect, with celebrate coming a close second. However, our insights indicate there are opportunities in the recharge and reward space across all price points.” In Cannes this year, Mars will have a clear message for retailers. “Our portfolio – with global and regional brand leaders – is designed to address all consumer needs and reasons for purchase,” continued Rekhi. “For 2019, Mars ITR will continue to do what we’re best at – and that’s offering travelers a portfolio of brands and products that addresses all consumer needs. Our step-change is a new additional focus on the opportunities to meet all the why drivers,
such as seasonal celebration (Eid, Diwali, Chinese New Year, Christmas, Easter), connect (through our already successful snacking and sharing packs) and recharge/reward, by driving checkout and point of purchase sales, where gum is a must.” Details of Mars ITR’s updated strategy to drive conversion and deliver the potential of confectionery in travel retail will be presented to customers in Cannes this year. “In the disruptive environment we find ourselves in, our focus should be on meeting the travelers’ needs. We’re best positioned to deliver on those,” Rekhi concluded.
Travelers purchase confectionery to recharge, reward themselves, connect with others, or to celebrate, according to Mars ITR’s Category Vision
Food Accademia expands Italian offer with new wines and exclusive food gift packs Food Accademia returns to Cannes this year with a selection of the very best of Italian food, wine and spirits, including a number of new additions to the portfolio (Red Village K15). The company is introducing a new series of exclusive gift boxes, bringing together smaller sizes of different food items. This include the Sommariva Gift Box, containing a trio of different sauces such as Pesto Genovese, Black Taggiasche olive oil cream and Anchovy cream; the T&C Truffles Gift Box, containing five sauces perfect to accompany appetizers, finger food etc; the NIK Gift Box , containing dried pasta with goji berries and accompanying spicy tomato sauce which uses health-giving Moringa oleifera leaves; the Torrefazione Cannaregio Gift Box, containing
toasted and ground mocha coffee from the only roasting house in Venice; and the Caviar Giaveri Gift Box Zar Trilogy, high quality caviar selection from Russian sturgeon roe. Food Accademia was created by Fabrizio Canal to offer top quality, authentic Italian fine foods to travel retail. “Italy has a global reputation for food, oil, wines, and Food Accademia brings the very best that the country has to offer to global travel retail. Since we started this business in 2016 we have made slow but steady progress within the channel and are now enjoying sales distribution in airports throughout Italy (of course), but also elsewhere in Europe and the Asia Pacific,” he says. Canal believes strongly that Italian fine foods have huge potential in travel retail outside Italy. “Our team is able to select the right products according to culture and market trends in each country and region,” he continues. “Our specialists can suggest the best product portfolio for each business opportunity including retail formats: food courts, coffee and beer shops, restaurants etc.” In Cannes, Canal is looking to build on existing distribution in Europe whilst actively seeking to break into the Americas market. “We see a lot of potential for our offer in the US and, indeed, are looking for a distributor or agent to assist us in the region.”
Food Accademia introduces a new series of exclusive gift boxes www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING
Haribo gets down to the bear essentials Sugar confectionery brand Haribo is rolling out brightly colored, travel-exclusive display units reflecting the brand’s colorful world of fun
ugar confectionery brand Haribo is continuing to upgrade its presence in global travel retail with the introduction of brightly colored, travelexclusive display units which aim to reflect the brand’s strong visual identity. Hero of the shelves and gondolas is the yellow Goldbear mascot, which is featured prominently in the designs and whose silhouette has inspired the shape of some of the units. The high quality materials in eyecatching red, blue, yellow and green ensure that the new displays not only coordinate with Haribo’s collection of travel-exclusive gift items but link with the bright, colorful world of fun for which the brand is known. In particular, a 1.5 meter tall Goldbear-shaped display case, in the brand’s colors outlined in white for definition, is inspired by the Goldbear jelly candy. This display’s individual shape and its embossed logo seeks to stand out boldly in the airport environment and support the launch of Haribo travel retail novelties, such as the Candy Tin and the practical Travel Bag.
Grabbing the consumer’s attention
The new point-of-sale displays, which are exclusive to travel retail, can already be found in selected airports across Europe, and are being rolled out in other key travel outlets around the world this year, including in Asia Pacific. Elisa Fontana, Marketing Manager Travel Retail, said: “Haribo believes it is essential to invest in premium packaging and also in stunning branded displays if we are to grab the attention of the consumer. As he travels through the store, the passenger is greeted with a terrific array of competing brands – a real visual banquet – so we have to try to stand out. We have to get the shopper’s attention, give him visual clues to our brand DNA, and, when he is up close, delight him with cute gifts and attractive snack-and-share items. Only when we achieve all that does the actual quality of the contents come into play.”
Making music with Heinemann
In other news, Haribo and Gebr Heinemann worked in harmony at selected European airports during summer 2018
Haribo’s brightly colored, travel-exclusive display units at Bonn Airport, Germany
66 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
Haribo’s Goldbear-shaped display unit supports the launch of Haribo travel retail novelties, such as the Candy Tin and the Travel Bag
as they collaborated on a series of highprofile promotions. The activations featured a brightly colored Haribo-branded Heinemann’s Choice Stage, stocked with all the latest travel-exclusive products, at the center of which was a xylophone. Shoppers were drawn into the display and encouraged to try their hand at playing the Haribo jingle on the instrument, “Kids and grown-ups love it so, the happy world of Haribo!” The first locations to feature this novel branding concept during May 2018 were the Heinemann stores at Frankfurt and Budapest International Airports. Versions of the promotion were rolled out at Oslo, Stavanger, Cologne, Berlin Schoenefeld and Hamburg over the summer and running into autumn. Speaking at the start of the summer promotion, Fontana said: “We are delighted that Heinemann was enthusiastic about mounting this Haribo branding concept which is, I believe, the first of its kind. The xylophone represents perfectly the childlike happiness that is so much a part of our DNA, and already we are finding that it appeals enormously to children of all ages. The concept will evolve as it moves around Europe so passengers should look out for more Haribo delights whenever they shop at Heinemann stores this summer.” *Haribo will exhibit at the 2018 TFWA World Exhibition (Stand number: 11B Bay Village).
Wild Tiger is India and Asia's ﬁrst Premium Rum from Kerala state in Southern India by Wild Tiger Beverages. Wild Tiger was launched in 2016 and is currently available in 6 con�nents spanning over 25 countries including Czech Republic, Canada, UK, Cyprus, Chile to name a few. The brand is also listed with 10 of the Top 20 Operators in Travel Retail.
SPECIAL RESERVE RUM
Wild Tiger Special Reserve Rum is India's ﬁrst Premium Dark Rum given it's exo�c blend of Molasses and Cane juice dis�llates. The Taste has received accolades from Rum aﬁcionados around the world and has also won a few leading Interna�onal Taste and Design awards. It is predominantly a column dis�lled Molasses rum which is aged in Oakwood Casks and harmoniously blended with pure cane juice rum. It is delectable as a sipping Rum and also has great versa�lity as a mixer in cocktails. TASTE PROFILE: Intensely aroma�c with hints of vanilla, toasted wood and caramel on the nose. It is creamy and smooth on the palate with prominent undertones of molasses, candied orange peel, almond and slight oak notes. It is medium-bodied with a complexity of ﬂavours and a lingering a�ertaste.
TASTE PROFILE: Honey Gold coloured with Pronounced notes of zesty tangerine and Cardamom ﬂavors come through like petrichor and fresh cut grass. Fresh Black Pepper, Nutmeg, Ginger & Cinnamon hit your tongue. It has a warming mouth feel with a complexity of aromas and ﬂavors that are beau�fully textured. Every Sip is intense, profoundly deligh�ul, more spicy than sweet and it transports your senses to Indian Paradise.
Raise a Toast to Asia’s only Spiced Rum, a journey into uncharted territory with rich ﬂavors of the Malabar coast - the ancient hub of spice trade. Exo�c spices are steam dis�lled and fused in Molasses dis�llates from Indian Sugar Cane resul�ng in an excep�onal Honey Gold colour Spiced Rum that is naturally ﬂavoured, intensely aroma�c and truly Rumtas�c! Wild Tiger India Spiced Rum includes exo�c Indian ﬂavors of Cardamom, Nutmeg, Cinnamon, Licorice, Black Pepper, Ginger, Cassia Bark, Orange Peel, Forest Honey and a secret Tea extract!
Avant-garde Packaging Every bo le is hand wrapped in velvet fabric by local Village women. And every bo le has its own dis�nc�ve stripe pa ern like every Tiger, this makes every bo le of Wild Tiger a unique collec�ble, a great gi�ing op�on and a souvenir. The imita�on claw adds edge to the overall packaging and doubles up as a worthy Gi� with Purchase.
Giving Back! The brand donates 10% of proﬁts towards Tiger Conserva�on in South India via Wild Tiger Founda�on and also strives to create equal opportuni�es and foster women's empowerment in the state of Kerala.
68 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
advertisement removed for legal reasons
JACK DANIEL’S thoroughbred makes its debut
Jack Daniel’s 100-proof Bottled-in-Bond Tennessee Whiskey is launched into global travel retail backed by a story of quality and heritage by JAS RYAT
Jack Daniel’s 100proof Bottled-in-Bond Tennessee Whiskey, backed by heritage and reputation, is now available in Global Travel Retail
70 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
Jack Daniel’s Master Distiller Jeff Arnett shares his passion for the brand and walks everyone through the Bottled-in-Bond journey
estled in a bustling New York neighborhood, Fraunces Tavern, saturated in American history, was the perfect backdrop for the Jack Daniel’s Bottled-in-Bond launch into global travel retail. This new 100-proof Tennessee Whiskey was launched worldwide at a private press event where Americas Duty Free was privy to unlocking Jack’s latest story. The new travel retail exclusive, Jack Daniel’s Bottled-in-Bond, is a permanent extension of the Jack Daniel’s family of brands and will be available in major airports and other international points of departure. Jack Daniel’s Master Distiller Jeff Arnett and Jack Daniel’s Brand Ambassador Eric “ET” Tecosky were on hand at the event to share the story behind the bottle and its significance to the brand. Jack Daniel’s was founded back in 1866 in the small town of Lynchburg, Tennessee, where it is still located today. Arnett recounts a time in 1880 where whiskey was being sold largely by the barrel. The whiskey barrels were then ending up at establishments where as they ran out, additional ingredients were added to stretch the liquid inside. Inevitably, the quality suffered. “Whiskey drinkers at times weren’t sure of what exactly they were drinking or being served,” explains Arnett. “To bring a high level of safety and consistency to American whiskeys, 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. Mr Jack began putting his Tennessee Whiskey in the nowfamiliar square bottle two years earlier in 1895. This new offering replicates those rules that were set more than 120 years ago.” Every drop of Jack Daniel’s is still made in Lynchburg, Tennessee, charcoal mellowed and then matured in new American oak barrels crafted by its own coopers. At 100 proof, Jack Daniel’s Bottled-in-Bond is a bold Tennessee whiskey with rich flavors complemented by classic Jack Daniel’s smoothness.
The Bottled-in-Bond designation is only allotted if the whiskey follows controlled guidelines
Arnett is passionate when speaking about the purity of Jack Daniel’s whiskey: “When it comes to Jack Daniel’s, we distil all of our own product because we don’t sell to others to have it bottled and we don’t buy other product and put our name on it.”
Backed by history and reputation
Globally, the whiskey business is alive and well. Whiskey is making a comeback as consumers are reviving their interest in traditional drinks like Old Fashioned and Manhattan cocktails. Arnett feels that travel retail is just the beginning of what Bottled-inBond has to offer. “Whiskey cocktail culture is alive and well. From my standpoint, I feel like global travel retail is just an entry point for Bottled-in-Bond. I see this as a product that has a lot of relevance in local market and back bar,” he says. Arnett and the Jack Daniel’s team are confident in their product, as Bottled-in-Bond is backed by history and reputation. It represents high quality whiskey, making it a standout product consumers can trust. The entry into travel retail comes at the right time, as the heritage story linked to the brand really resonates with today’s consumers. “From my standpoint, this basically clears the deck, if you will – it reminds you who your manufacturers are out there, because only the manufacturers can certify the product went through this process. Also, as someone that has been around since 1866, we are proud to put out a product that says Jack Daniel’s and to put our DSP (distillery) stamp on it to remind you that we are a whiskey maker.” The rich, bold, 100-proof Bottled-in-Bond Tennessee Whiskey has an aroma of caramel with mild hints of banana and balanced caramel, vanilla and toasted oak flavors with a full-bodied mouth feel, leaving a creamy, warm finish. Jack Daniel’s Bottled-in-Bond hits shelves this summer in selected duty-free outlets in a oneliter bottle size and will retail at US$37.99. www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING
The launch of The Macallan Quest Collection has been a major step forward in Edrington’s premiumization drive
Cruising to a leadership position Juan Gentile, the newly appointed Managing Director of Edrington’s Americas Travel Retail division, reveals his bold strategy for the region
uan Gentile only took the helm of Edrington’s Americas Travel Retail division in summer 2018, and he’s already hammered out ambitious plans for the drinks specialist in the region. Before being named Managing Director, Americas Travel Retail, Gentile held the role of Senior Vice President for Latin America and Travel Retail – a position he was appointed to in 2017. In 2012, he
by MARY JANE PITTILLA
The strengthening of the Americas Travel Retail team is a crucial step in the development of Edrington’s business in the region, he tells Americas Duty Free. Edrington has laid out a very bold vision to take leadership of the superpremium spirits category in the Americas. Travel retail has a major role to play in delivering on this vision by driving brand
“I think that travel retail is one of the most vibrant, exciting channels to work in.” — JUAN GENTILE, MANAGING DIRECTOR OF EDRINGTON’S AMERICAS TRAVEL RETAIL DIVISION
assumed responsibility for travel retail and became a board member of Edrington WEBB Travel Retail Americas. Gentile played a central role in the 2017 integration of Edrington WEBB’s Travel Retail Americas business within Edrington’s global structure, establishing a fully owned and integrated Global Travel Retail unit. “I think that travel retail is one of the most vibrant, exciting channels to work in,” he says of his experience. “It offers brands the opportunity to reach out to millions of traveling consumers and is a true window to the world. Travel retail offers an exceptional platform for engagement and storytelling – key elements of our overall premiumization strategy.”
equity, consumer recruitment and premiumization at high-profile locations across the region. There are two main opportunities for Edrington in the Americas: continuing to drive the premiumization of The Macallan and capitalizing on the burgeoning cruise line sector, with Miami the hub for over 15 million consumers. The launch of The Macallan Quest Collection has been a major step forward in this premiumization drive, and early signs are that consumers are trading up within the range to the more premium SKUs. “We have extremely high aspirations across the Americas, particularly for The Macallan Quest Collection,” says Gentile. Cruise lines are a major growth oppor-
72 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
tunity, with significant investments being made in new ships and in the retail offer. To capitalize on this, Annette Mourier has been appointed to the position of Global Cruise Manager, focused on strengthening partnerships and execution. In 2017, Edrington posted strong double-digit travel retail sales growth, driven by the “tremendous” performance of The Macallan, along with its other premium brands, and the thriving cruise line business. In terms of category growth, superpremium should continue to do well, he believes, particularly in brown spirits, with rum and single malt continuing to thrive. Retail environments are also improving significantly, he notes. The next few months will see the continued roll-out of The Macallan Quest Collection, and the new Highland Park range coming out in summer 2018. Edrington also has a “very strong” pipeline of ultra-rare and limited-edition bottlings, created to celebrate The Macallan’s new distillery opening. Asked whether he has a message for travel retailers, Gentile says: “Partnering with retailers who provide a platform for engaging with luxury spirits consumers is a key element of our premiumization strategy. “While some suppliers pursue volume growth and brand awareness through aggressive price discounting, this approach is not part of our strategy. We prefer to focus on premiumization and consumer engagement to bring value to our partners and increase the level of purchase ticket.”
*1 LITRE ENJOY OUR SINGLE MALT RESPONSIBLY. ABERFELDY AND ITS TRADE DRESS ARE TRADEMARKS.
Monarq’s fast track to growth Independent distribution and marketing specialist Monarq has taken on a number of new brands in its bid to stay ahead of the curve by MARY JANE PITTILLA
xciting times are ahead for Monarq, the fast-growing, independent distribution and marketing company operating across Latin America, the Caribbean and US duty free. In recent product news, Monarq has extended its distribution partnership with Zamora Company to cover the US duty free and Caribbean markets. Zamora is mostly known for its iconic brands Licor 43, Villa Massa and Ramon Bilbao, and it recently purchased Yellow Rose, Lolea and Martin Miller’s. “We have been working with Zamora in Central America for the past three years, which proved to be a successful and fruitful partnership,” says Robert de Monchy, who founded Monarq Group in 2006. In addition, Monarq has recently added the iconic Cocchi Vermouth and super-premium Single Estate Tequila Ocho to its family of brands. De Monchy explains: “There is an increasing demand for vermouth due to the huge popularity of pre-Prohibition cocktails. Tequila Ocho is the most popular tequila amongst top bartenders worldwide.”
Expanding in the cruise ship channel
Some time ago, de Monchy made the strategic decision to strengthen Monarq’s beer business, hence the addition of Brooklyn Brewery to the portfolio. The Heineken portfolio keeps performing very well and we are growing this business every year, actively promoting the brand in duty free retail. De Monchy explains that the company’s strategy remains its single focus on alcoholic beverages and mixers. “In the spirits portfolio we recently said farewell to a number of brands that either overlapped with others and/or were, unfortunately, not performing up to our expectations. Within spirits and wines we have become very selective, since we have strong representations in each of the existing relevant categories. We are, however, always looking for next new thing, staying ahead of the trend. We signed up with a number of New World single malt whiskies from Japan and India some years ago.” Monarq is expanding in US duty free, particularly on cruise ships, which it is supplying through its shipchandling partners. In South America, the company
74 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
has an increased focus on the Brazilian border stores and is keeping a close eye on the recent developments. De Monchy recently strengthened the team with two “fantastic and talented” industry professionals. The new International Marketing Manager, Nicoline van Woerkum, has 10 years’ experience in both marketing and in the Americas. Melinda Gracia-Gomez has joined the Miami team, being responsible for US duty free within the company. GraciaGomez has more than 20 years experience in the duty free cruise ship channel. De Monchy is crystal-clear about Monarq’s USP in the travel retail industry. “We are an independent regional import, distribution and marketing company a reliable one-stop-shop for both suppliers and distributors/duty free operators in US duty free and Latin America and Caribbean domestic and duty free markets. We carry a portfolio of leading and, mostly, innovative premium alcoholic beverage brands and strive to offer toplevel service to each of our partners. We have no plans to expand beyond this territory, nor to enter other categories. We stay focused and want to be the best in what we are doing.”
A tour of rums around the world Wild Tiger Rum has brought its “Think outside the bottle” philosophy to TFWA World Exhibition in Cannes this year. The company is unveiling the Rumtastic Rum Box, an experience dubbed “Around the world in 20 Rums”. This exclusive collection of 20 miniatures features carefully curated rums from around the world. Featuring rums of every style and variant’s with strong provenance, the Rumtastic Rum Box is one’s passport to travel the world of rum in a fun, engaging and experiential manner, which has already received significant pre-orders from travel retail operators. Gautom Menon, Founder and Brand Owner of Wild Tiger Rum, says: “We are optimistic about the opportunities in the tax free industry, which we believe will see the next new wave of Asian consumers and millennials embracing unique and standout rums as their drink of choice.” The Rum Box will feature a different and distinctive selection each year in two variants, one with 20 rums and a 10-pack variant, which is aimed more at inflight listings and cruise ships, where space is limited. Wild Tiger is also working on limited-edition versions of the Rumtastic Rum Box to celebrate participating nations of the 2020 Olympics in Tokyo, Japan, and for Chinese Year of the Tiger in 2022. Wild Tiger aims to introduce products through innovation, a compelling back story and a strong point of differentiation, to add value to travelers and increase sales opportunities for operators.
The Rum Box is a unique collection of various rums from around the globe. Available in a 20-pack and a smaller 10-pack variant to accommodate for limited inflight space
Living up to its prestigious name The newly designed Islay Mist bottle is meant to better represent the award winning whisky inside
Islay Mist, the only blended whisky that may use the word Islay in its name, has undergone a facelift, and the newly imagined bottle will be unveiled at TFWA World Exhibition in Cannes. The whisky has experienced major success in the last two years, receiving gold medals from all competitions entered. They include Whisky Masters, International Spirits Challenge, International Wine & Spirit Competition and San Francisco World Spirits Competition. Sales Director John Scott says: “Year after year, Islay Mist receives gold medals for its flavor, but we felt the packaging did not live up to the precious liquid inside.” Scott confirms the award-winning Islay Mist liquid has not changed despite the new look. “Being a whisky that wins its fair share of gold medals at blind nosing and tasting competitions every year, we feel the new packaging enables Islay Mist to bridge the gap between blended whisky drinkers and malt whisky drinkers,” he explains. The bottle is heavier, endowed with masculine broad shoulders and made from high quality flint glass. The front shoulder is embossed with the word ISLAY and a map of Islay to underline the continued strong connection with the island. The back of the bottle carries the seal of The Lord of the Isles, which is repeated as part of the main label. Instead of one front label, the bottle carries two front labels specially designed to portray three things: belonging to Islay, smoke and premiumness. “Having asked consumers, we know we have achieved what we set out to do, readying Islay Mist to go to the next level. With artist John Fleming’s charcoal and pencil drawings of the bay looking away from Laphroaig Distillery where this whisky was born, there is an atmosphere on the outside portraying the inside,” explains Scott. Keeping both labels in subtle black and grey tones supports the balanced peatiness and smoke at the core of the brand, while the embossed paper looks and feels appealing.
76 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
â€œDrinking too much makes you poorly, drinking poorly is even worse, drink a little, drink in style, drink Molinariâ€?. Angelo Molinari, 1968
Discover more on www.molinari.it
Always in style
Illva Saronno is seeing boom times in the US for its fashionable, cocktail-friendly amaretto liqueur brand Disaronno
llva Saronno is powering ahead in travel retail with its liqueur brand, Disaronno. Domenico Toni, Global Sales Director, Illva Saronno, says that for the year to date the amaretto liqueur brand is “literally booming” in the travel retail channel in the US, growing by 25% in the first six months of 2018. The performance has also been positive in Europe, he reports, with markets such as Italy up 29.1% year-onyear, Dufry Group up 14.4% versus last year, and Heinemann Retail up 4%. In 2018, the company enlarged Disaronno’s distribution with travel retailer Lagardère and is now listed in 40% of its total stores. Meanwhile, product newness continues. For the end-of-year holiday season 2018, Disaronno is launching a Disaronno Wears Trussardi limited-edition bottle, in a new partnership with the Italian fashion brand. Disaronno introduced this collaborative concept with the fashion world six years ago, and it has already featured top Italian fashion names such as Missoni and Etro.
Holiday gift for fashion aficionados Speaking about this year’s Trussardi limited edition, Toni explains: “A sense of tradition, innovation and Italian elegance are some of the values the two brands share. They are values that emerge clearly in a limited edition where the typical
Trussardi texture and greyhound logo unite with the Disaronno bottle’s distinctive shape, while fine fuchsia, green and blue brushstrokes frame the famous label, for a totally today result.” Along with the classic bottle, the Disaronno Wears Trussardi Limited Edition is available in two sets of mini bottles, in packages of three, which are designed to be collector’s items. Toni says that the limited-edition bottles have been very well received in travel retail since the concept was unveiled six years ago. “The new Disaronno Wears Trussardi bottle is an ideal holiday gift for fashion aficionados or great for selfpurchase to share with friends, making it ideal for global travel retail. The bottle has masses of shelf appeal, while the miniature bottle sets are ideal for point-of-purchase/till point sales – a perfect opportunity for adding value to the basket.” The Trussardi bottle will be revealed at the beginning of October, and will be showcased at the TFWA World Exhibition (Stand number: Disaronno (Bay Village, Bay 19). Cocktails can play an important role in driving sales in duty free stores, so Disaronno is one step ahead, as it is one of the main players in mixology. Toni explains that Disaronno is the protagonist of three I.B.A. (International Bartenders Association) cocktails (Godfather, Godmother and French Connection), and the
78 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
Along with the classic bottle, the new Disaronno Wears Trussardi Limited Edition is available in two sets of mini bottles, in packages of three, which are designed to be collector’s items
signature drink, Disaronno Sour, is one of the 50 best-selling classic cocktails. “Disaronno’s well-balanced liquid allows it to be mixed in simple serves ideal for duty free and travel retail, like the Godfather (Disaronno and whisky in equal parts) and the French Connection (Disaronno an Cognac in equal parts) as well as the Disaronno Mule (combining the spicy ginger beer with the warm notes of Disaronno),” says Toni. Disaronno Godfather fits perfectly with the travel retail world since whisky is one of the most requested spirits categories in the channel. Meanwhile, the Disaronno Mule is a spicy and refreshing drink. “We’d love people to try it, especially Moscow mule lovers; this twist with Disaronno will give them the possibility to try a new version of their most appreciated cocktail,” he enthuses. The Disaronno Wears Trussardi Limited Edition combines the typical Trussardi texture and greyhound logo with the Disaronno bottle’s distinctive shape
As the official gin at The Scene at this year’s TFWA World Exhibition, guests in the Crafter’s Lounge will enjoy creative cocktails, showcasing both Crafter’s London Dry Gin and Crafter’s Aromatic Flower Gin
Mastering the craft of gin Estonian spirits supplier Liviko is expanding in Europe and Asia with its Crafter’s Gin brand, made to a unique recipe with natural ingredients
iviko, the Estonian spirits business with a 120-year history, is set to focus on Crafter’s Gin at this year’s TFWA Cannes 2018, both at the exhibition booth and also at The Scene, where it is this year’s official gin. Visitors to Liviko’s stand will hear about the award-winning brand’s success in global travel retail since its launch just three years ago and its plans to expand distribution in Europe and Asia. Crafter’s Aromatic Flower Gin was first showcased at TFWA World Exhibition in 2017
Earlier this year, Crafter’s London Dry Gin secured a listing with Gebr Heinemann, and today the brand is available in major European airports, including Frankfurt, Berlin, Vienna, and Copenhagen. It is set to appear in the Asia Pacific region in the coming weeks at Kuala Lumpur, Jakarta and Sydney airports. Liviko’s Export Director, Jörgen Herman, said: “We are really looking forward to TFWA Cannes 2018 when our focus will be on Crafter’s Gins and how we can work with operators to delight gin lovers around the world with this first class, crafted spirit. “The gin category is one of the most dynamic spirits markets to operate in and we are excited that the Crafter’s brand is doing so well,” explains. “It offers a real point of difference and by increasing our investment and raising the profile of Crafter’s Gin in travel retail, we aim to develop and grow the brand across the globe.”
The “magic gin” brand
The Crafter’s Gin family consists of London Dry Gin and Aromatic Flower Gin. Both are handcrafted in Estonia with natural ingredients, copper-pot distilled and made in small batches. They are both
80 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
inspired by the purity of Nordic nature and made to a unique recipe. Crafter’s London Dry Gin was the first to launch in 2015. The recipe, known as Recipe No. 23, is declared on the bottle and uses veronica and fennel seeds to create a balanced flavor bouquet. Veronica adds a gentle floral softness and fennel seeds provide a contrasting spicy undertone. The bottles are finished by hand and the batch number is marked on each one. One batch consists of 5,000 bottles. The silky blue bottles are decorated with plant motifs, to illustrate the natural ingredients and craft. The London Dry Gin variant was joined by Crafter’s Aromatic Flower Gin, first showcased at TFWA Cannes in 2017. Recipe no.38 is a floral gin that represents the Estonian summer and includes meadowsweet and rosehip flower. Meadowsweet gives a sweet undertone, while rosehip petals give an aromatic scent and make the golden-colored gin turn pink when mixed with tonic. Since its launch, the brand has been dubbed “the magic gin” and is available at selected outlets such as Baltona, Lagardère Duty Free and featured in an introductory campaign across the entire fleet of Tallink Silja retail and on-trade outlets.
What’s in a bag
A mixed bag We feature the latest essentials you’ll find in the handbag of any savvy traveler 8 7
1. Radley London Travel Exclusive Bayford Cross Body bag: The UK accessories brand celebrates its 20th anniversary with the Autumn/Winter 2018 Travel Exclusive collection. This stylish handbag has a playful edge, adorned with the brand’s Scottie dog mascot 2. Cross ATX pen: Cross unveils on-trend finishes and complimentary accessorizing with new colorways for the classic ATX design, adding an element of chic, modern sophistication to the streamlined collection 3. The Ritual of Namasté Urban Hydrate Mist by Rituals: This product contains an active complex with hyaluronic acid and Indian rose to maintain the moisture of younger skin. Natural plant-based antioxidants help to protect the skin from negative external influences 4. eKids Frozen Cool Tunes Youth Headphones: Made for fans of the movie Frozen, these volume-reducing headphones protect hearing with a built-in active circuit, while still providing clear acoustic performance. Soft ear cushions provide added comfort 5. Lambretta Watches Marco 40 Rubber Collection: Developed for an active lifestyle and equipped with a stainless steel case waterproof to 100 meters, these racing timepieces feature rugged rubber straps made from recycled tires
6. Maui Jim Cinder Cone sunglasses: These matte titanium aviators are fitted with Maui Jim’s most advanced lens material, MauiBrilliant, and come in four color references, including Blue Hawaii and Maui Sunrise, for unisex appeal 7. Corset Double Capsule cigarettes: KT International unveils a unique front-opening pack in a uniquely feminine style that delivers a fine and smooth smoking sensation with a taste of either Blueberry Blush or Menthol Glaze 8. RITTER SPORT Chocolate World: No matter if you are on a trip and feel like snacking something sweet or you want to pick up a little something for the loved ones back home with the new RITTER SPORT Chocolate World the right continent is within easy reach. Comes in four mini bar flavors 9. elvis+elvin Lilac Stem Cell Mask: elvis+elvin Lilac Stem Cell Mask can effectively reduce excess sebum production and controls acne microbials while fading the inflammatory blemishes. The powerful plant-derived mixture heals and brightens acne-damaged skin with hydration and nutrients, leaving a clear, smooth and radiant face.” www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING
Founder & Chief Brand Officer WILD TIGER RUM India Where were you born and raised? Coimbatore in Tamil Nadu state of Southern India If you attended post-secondary school, what did you study? Business Management Are you married? Do you have children? Happily Unmarried. No Cubs either. What is your favorite movie? Straight Outta Compton. I don’t have a second favorite, that’s how much I love it.
What is the last book you read? ‘The Whinging Pome’ by our industry friend Paul Topping What would you choose as your last meal? Picannte Rustica Pizza, and a nice glass of Rum Your favorite drink? Rum Old Fashioned made with my rum obviously. No one makes it better than ace Mixologist ‘Hemant Pathak’ of Junoon in NYC
Do you have a passion in your life (or more than one)? What? Collecting rare rum bottles and all rum bottles I can get my hands on. My business of course is a strong passion, it’s more a lifestyle
Do you have a pet (or more than one)? If so, what animal and name? Not at the moment. But I had a lovely Labrador called ‘Austin Menon’, he died sometime ago Do you prefer country or city? City. Love the buzz and vibrancy of it. I like some chaos in my life
What is your favorite place to vacation? Melbourne. Its home to some of my favorite people and that makes all the difference
What’s the first thing you do in a new place? Try the tap water. Being from Coimbatore where we have the sweetest tasting water, we are spoiled If you could choose any place in the world to live, where would it be? Vegas Baby!
Which living person do you most admire? Lebron James aka King James
Which historical figure do you most admire? Nelson Mandela. ‘Madiba’ was the most compassionate humanitarian that ever lived in my eyes
82 THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2018
Where and when were you happiest in your life? Silent Disco Party for my 30th at St. Kilda beach around midnight with just my closest friends. We hired a double decker party bus and gallivanted across town painting it red What in the world would you most like to change? Eradicate Child Porn and Child Abuse. Leave them kids alone. They need their innocence
What about yourself would you most like to change? Obstinacy
What is the most important piece of advice anyone ever gave you? “Good things don’t come to those who wait, it comes to those who HUSTLE with heart”. Btw I gave this piece of advice to myself What is something about you that most people would find surprising? I hate warm weather. I know I am Indian but can’t stand it. I love warm people though
A ROBUST, BOLD WHISKEY PROFILE WITH FRUIT AND SPICE ACCENTS.
• Launching new core 80PF anchored in Whiskey category • The fastest growing category in North America continues to be US Whiskey, with a 3YR CAGR of 5.3% 1 • Core 80PF competitors show healthy growth 2
PLEASE DRINK RESPONSIBLY. PRODUCED & BOTTLED BY SAZERAC COMPANY, NEW ORLEANS, LA , USA. 40% ALC/VOL (80 PROOF). SPIRIT WHISKEY WITH NATURAL FLAVORS. 1 Source: The IWSR (International Wines and Spirits Record) North America, 2015 2 Source: IRI Scan Data, Total US Multi Outlet, 52/Weeks Volume Ending 1-22-2017