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MARCH/APRIL 2011 • VOL 21, NO 1

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MARCH/APRIL 2011 • VOL 21, NO 1

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IN BRIEF International Duty Free expands to better serve travel retail clients ■ Travel retail veteran José B. Chao launches Horizon International Duty Free ■ Kreol Trading partners with Jelly Belly and Global Retail Concepts, plans to attend IAADFS ■ Image Duty Free enjoys sales increases along the US/Mexico border ■ Hotel Casa de Santo Domingo plays host to Christian Dior Travel Retail Latinoamérica event ■ Baja Duty Free to open new store in Tecate, CA ■ The write choice ■ Bijoux Terner continues global expansion in duty free and local markets ■ A global vision ■ Travalo exhibits at IAADFS for first time ■ Kipling offers practicality and clean lines for spring/summer


Dufry’s most recent sales statistics point to success in the Americas in 2010, and PAX forecasts to 2020 suggest that the region holds unlimited potential for the future


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Four major players in Latin American duty free weigh in on Brazil’s rise to economic power and its significance for the travel retail industry

Americas Duty Free speaks with six operators across Latin America to find out what’s hot, what’s not and what to expect from the dynamic region in 2011

Cuatro importantes compañías duty free latinoamericano aprovechan la ascensión de Brasil como potencia económica y su significado para la industria minorista de viajes

Americas Duty Free habla con seis operadores de Latinoamérica para enterarse de lo que goza de popularidad, de lo que no es popular, y de lo que se puede esperar de la dinámica región en el 2011


The new fragrance for women V I S I T U S AT C O T Y B E A U T Y - B O O T H # 1 9 0 9 O R C O N TA C T: G M P S E RV I C E S - V I V I A N W I S C H T V I V I A N . W I S C H T @ G M P S E RV. C O M P H : ( 3 0 5 ) 8 9 5 - 2 6 0 0




! Aldeasa looks forward to continued success in Spain’s travel retail channel thanks to new store openings and a well thought out product mix



As JFK climbs out of economic recession, boom times are on the horizon for the airport’s retail operations




Mannah Duty Free does its part to prove to the world that Latin America can succeed where so many other regions have lately fallen short



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! Duty Free World reaps the rewards of increased sales and new partnerships due largely to its commitment to ensuring its product mix is truly unique


Asia will lead the way, but 2009-10 numbers still very mixed



Three companies ride out the winds of change

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HK Global Duty Free plans three new Southern border store openings even as it looks to both the Northern border and South America as possibilities for continued growth


From Iguazú down to Ushuaia, London Supply promotes the value of shopping duty free and sees strong sales as a result



Mega Shopping’s expansive duty free retail environment and all-star lineup of luxury products proves to be a hit with shoppers in northern Chile

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Diageo, Holland America and Carnival make waves with Captain Morgan on the Rocks, an unprecedented project that underscores Diageo’s firm commitment to


Americas Duty Free learns from three of travel retail’s most important associations that from Tokyo to Tierra del Fuego, indications for 2011 are very positive

" Tres de las asociaciones minoristas de viajes más importantes le afirman a Americas Duty Free que, desde Tokio a la Tierra del Fuego, los pronósticos para el 2011 son muy positivos


visit us at coty beauty - booth #1909 or contact: gmp services - vivian wischt ph: (305) 895-2600


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Americas Duty Free speaks with Miami-based Javier Labarta, CEO of Parbel, about gaining market share, developing brands suitable to duty free and prepping his team for future challenges


Coty Prestige harnesses growth in the Americas



Swarovski melds its precision crystal expertise into a debut fragrance that emphasizes luminosity and radiance



Americas Duty Free joins MAC at its Pop-Up Store in Soho to feel the power of its novel new Wonder Woman collection

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With summer around the corner, suppliers introduce a profusion of lovely scents to welcome the warm season




Time is a tireless foe, but it won’t keep these companies from thriving in the severely competitive market for anti-aging products



Without a doubt jewelry enhances and gives character to a simple outfit. Americas Duty Free asks five unique companies in the jewelry business about their plans for the new year

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From the hugely popular rose gold, to splashes to bright color and technologically advanced functions, watch suppliers share their insights into the hottest trends around


Just when you think you’ve seen it all, a profusion of newer, better skincare and cosmetic products roll into the market







Sunglasses suppliers share their crisis-crunching strategies, new ideas for promotions and why differentiation is key to success


American fashion brand LeSportsac comes correct with a veritable smattering of design-led contributions


The writing products market has had its ups and downs, but is looking forward to a lot of new activity and hoping for healthy growth this year



! A few years ago no one knew where to place children’s products: now, as the category matures, retailers are starting to appreciate the potential new revenue stream


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As another IAADFS rears its expectant head, we take a look at the latest Americas-based news and developments from some of the industry’s best-loved confectioners


While confectionery sales in the Americas remain strong, Perfetti Van Melle looks to build up the category even more




Pernod Ricard Americas Travel Retail cites knowing its audience as a key to success



Five major players in the duty free spirits category weigh in on the importance of instore tasting initiatives to ensure the success of their brands





The Edrington Group releases a number of duty free exclusives in the Americas with the help of distribution partner Rémy Cointreau



William Grant’s appointment of Stephen Corrigan as Director Travel Retail North America is just the beginning of a focused drive toward increasing brand awareness in the Americas

Beer enthusiasts this year are treated to environmentally friendly designs and the Irish invasion of America capped off with a refreshing twist of lemonade

Familiar though it may be, a number of companies are putting a fresh spin on wine, from new partnerships and new SKUs to new packaging and new world treasures








1. 8 7 7. 3 9 7. 6 5 9 7


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IAADFS is the first major travel retail show of the year, and attendees take the opportunity to put their best foot forward with hot new launches and portfolio additions



Japan Tobacco International helps retailers with new approaches for increased sales in duty free




Whether speaking of Patrón XO Cafe’s recent success or the company’s plans for 2011, the quality of Patrón’s portfolio is what keeps consumers and operators alike coming back for more

After years of sustained domestic growth, Vapor Corp.’s revolutionary e-cigarette brands Fifty-One and Krave are set to take the duty free industry by storm



Following the widespread popularity of Russian Standard Original and Platinum in the Americas, the company, in partnership with Rémy, goes for the gold in 2011



WEBB and BB&R team up to introduce the Americas to No. 3 London Dry Gin at this year’s IAADFS exhibition after a fantastic 2010 for both companies



The biggest names in the cigar business are ready to wow consumers in 2011 with a variety of limited editions, new partnerships and truly unique offerings


Imperial Tobacco continues innovating in the tobacco category with two new special editions to be showcased at this year’s IAADFS exhibition

NEW & NOTABLE The Balvenie Forty ■ Svedka Vodka ■ Neuhaus Collection ■ Animal Coin Purses ■ Silk-épil Bikini Styler ■ Twist Range

Letter From The Editor

The Americas Duty Free & Travel Retailing (ISSN 0962-0699) is published four times a year February/March, June/July, October, November/ December) 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.

t’s that time again; we’re at the first tradeshow of the year on this side of the world in sunny Orlando, Florida. As usual, Americas Duty Free is bringing attendees all the news they need to keep abreast of developments in this dynamic industry. To get an update on the Duty Free Show of the Americas (IAADFS), we spoke with Michael Payne, Executive Director of the organization. Payne told us at press time that registered attendees were ahead of last year's numbers by about 10%. He also noted that he is counting on the usual influx of lastminute attendees on-site to boost final registration figures. Payne was enthusiastic about welcoming both returning companies like Diageo, Lacoste, BPI, JTI, L'Occitane and many others, as well as new companies. Furthermore, the annual Asociación Sudamericana de Tiendas Libres (ASUTIL) conference isn’t too far off. The event is scheduled for June 22 to 25 in Cancun, Mexico, two months earlier than its previous September date. Americas Duty Free also spoke with Francisco Heredia, President of ASUTIL, to get an update on the conference. While both Payne and Heredia assert that sales on the ground are bouncing back, recent market research compiled by the International Air Transport Association (IATA) also predicts growth in air cargo and passenger volumes. IATA expects there will



be 3.3 billion air travelers by 2014, compared with 2.5 billion in 2009. For air cargo, 2014 will see a total handled weight of 38 million tons, 12.5 million tons over the 26 million figure posted in 2009. Speaking of growth, we would be remiss if we didn’t mention Brazil. This issue of Americas Duty Free contains a special report on the country, which has come out of the economic crisis virtually without a scratch. Jet fuel sales in Brazil rose 16.6% year-on-year in 2010. In December alone, it was reported that Brazilian oil giant Petrobas sold an average of 119,000 barrels of jet fuel per day, which represents a 4.9% increase from the previous record set in July 2010. Notably for the duty free industry, Brazilians aren’t just flying, they’re buying. Indeed, Brazil’s resilience is a fitting metaphor for the strength of the travel retail industry in the Americas as a whole. I look forward to catching up with you all at this year’s IAADFS exhibition.


Subscriptions: $200 for one year. Art and photographs will not be returned unless accompanied by return postage. The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or editor. March/April 2011, Vol. 21, No. 1. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2011 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 PUBLISHER Aijaz Khan EDITORIAL DEPARTMENT EDITOR Hibah Noor CONCESSIONS, LIQUOR & TOBACCO EDITOR Ryan White ART DIRECTOR Patrick Balanquit CONTRIBUTORS Andrew Brooks Faye Rowe Lorna Strickland-Cook ADVERTISING SALES

Hibah Noor Editor



Letter From The Editor

legó nuevamente el momento tan esperado: estamos en la primera exposición comercial del aùo en nuestro lado del mundo, en la soleada Orlando, Florida. Para actualizarnos con respecto al Duty Free Show of the Americas (IAADFS) hablamos con Michael Payne, Director Ejecutivo de la organización. Payne nos dijo que al cierre de esta edición la cifra de asistentes confirmados supera las del aùo pasado en un 10%, y que cuenta con un flujo de inscripciones de último minuto en la sede de la exposición para determinar la cantidad final. Payne se mostró ademås muy entusiasta con las compaùías que vuelven al evento, como Diageo, Lacoste, BPI, JTI, L'Occitane y muchas otras. Por su parte, la conferencia anual de la Asociación Sudamericana de Tiendas Libres (ASUTIL) estå programada del 22 al 25 de


junio en CancĂşn, MĂŠxico, lo cual marca un cambio con respecto a las fechas tradicionales en septiembre. Conoceremos mĂĄs detalles durante la exposiciĂłn IAADFS. Como las cifras son pruebas fehacientes, las recientes investigaciones de Mercado compiladas por la AsociaciĂłn Internacional de Transporte AĂŠreo (IATA) pronostican un crecimiento en los volĂşmenes de carga aĂŠrea y volĂşmenes de pasajeros. En lo que se define como “pronĂłstico de la industriaâ€?, IATA espera que haya 3.3 mil millones de viajeros por aviĂłn en el 2014, en comparaciĂłn con 2.5 mil millones en el 2009. En lo que respecta a la carga aĂŠrea, el 2014 experimentarĂĄ un peso procesado total de 38 millones de toneladas, o sea, 12.5 millones de toneladas con respecto a la cifra de 26 millones reportada en el 2009. En este nĂşmero de Americas Duty Free, presentamos un reportaje especial acerca de un paĂ­s que ha salido incĂłlume de la crisis econĂłmica. Brasil ha emergido sano y salvo

de la crisis de los Ăşltimos dos aĂąos, como una naciĂłn que ha florecido en numerosos aspectos. La prueba estĂĄ en los resultados. La venta de gasolina de aviĂłn en Brasil se incrementĂł un 16.6% de aĂąo en aĂąo en el 2010. En diciembre solamente, se reportĂł que Petrobras, el gigante petrolero brasileĂąo, vendiĂł un promedio de 119,000 barriles de gasolina de aviĂłn por dĂ­a, lo cual representa un incremento del 4.9% con respecto al rĂŠcord previo establecido en julio del 2010. Otro testimonio de la resiliencia de nuestra gran industria duty free y minorista de viajes. Espero encontrarme con ustedes en breve. Cordialmente, Hibah Noor Editora

Visit us at IAADFS at booths 1323 and 1336

GRADY SIZEMORE "--45"3r(0-%(-07&8*//&3r4*-7&34-6((&3"8"3%8*//&3




Please enjoy Chivas responsibly. CHIVAS REGAL® 25 Year Old Blended Scotch Whisky. 40% Alc./Vol. (80 Proof). ©2011 Pernod Ricard Americas Travel Retail, White Plains, NY

In Brief iami-based International Duty Free (IDF) began two years ago as a company that serviced cargo vessels in the Americas. Although this is still an activity high on the company’s list of priorities, President and Founder Lucio Souto and Vice President Marco Gaviria have put their combined 50 years of duty free experience to good use of late by expanding the business to offer warehousing in Miami and a deep logistical know-how of travel retail. In order to


International Duty Free counts Monarq Group, Campari and Distilleria Bottega among its many trusted clients

better serve its travel retail customers, the company has moved to a new location at 3511 NW 113 Court, Doral, FL, 33178. “We are keeping the other warehouse and office for domestic product warehousing,” says Souto. “Our new location measures 20,000-square-feet. In fact we have more than double the office and warehouse space. The setup here is much better and the location is newer.”

Along with its change of location, IDF has big plans for 2011. The company will increase its customer base by expanding into other markets and add to its already highly qualified staff to ensure objectives are met and exceeded.


osé B. Chao recently announced the official launch of Horizon International Duty Free, a new company that will represent premium brands in traditional travel retail channels. The company will represent the full range of duty free/travel retail categories, including wines and spirits, cigarettes, confectionery, beauty and accessories, primarily in the Americas but also globally. “Horizon’s points of difference include being ‘shopper-centric,’ fact-based, innovative, corporate yet entrepreneurial and fully committed to the brand-building process, which will be a major focus of the company,” explains Chao. “Our aim is to drive value and market share growth for our customers, as well as for their retail partners. Our activities will focus on raising brand awareness and enhancing brand image.” Horizon International Duty Free can serve brands as agent, distributor and/or marketing consultant. In addition, Horizon provides complete logistics services—including customs clearance, bonded warehousing and real-time inventory tracking. The new company is already working with a number of brands, which will be announced shortly. In the coming months, Horizon International will attend IAADFS, MHA, TFAP and ASUTIL.

“Our aim is to drive value and market share growth for our customers, as well as for their retail partners.” José B. Chao, President, Horizon International Duty Free

Kipling offers practicality and clean lines for spring/summer eadquartered in New York City with products developed and designed in Antwerp, Belgium, Kipling offers a range of carryalls for a variety of lifestyles. For spring/summer 2011 the company unveils its City collection, which is perfect for women on the move. The white and beige color ways are combined with neutral meeting neon colors including a hint of yellow or pink fluo on every bag. The Lynette (pictured) is an A4, laptop-ready shape and with a hint of fluo for a playful twist. The new Pamela, is available in color-way, with multiple straps and the distinctive silver monkey charm keeps things inimitably Kipling. The Cathryn handbag sports clean lines and an elegant silhouette with an across-shoulder shape and graphic zip detail nodding to the pared-down sporty styles of spring/summer.

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Kreol Trading partners with Jelly Belly and Global Retail Concepts, plans to attend IAADFS reol Trading recently announced that it is planning on attending this year’s IAADFS exhibition in Orlando as a means of building a portfolio of US-made products aimed at the travel retail sector. “Kreol Trading, in association with our partner Global Retail Concepts (GRC), is looking for established brands—mainly from confectionary—who want to create a worldwide presence in travel retail,” says A.S. Lal, Chief Executive at Kreol Trading. “We have the vision, and we have a customized business plan for each product category that takes into account the retail environment and its unique passenger portfolio. The other segment we are looking at is fragrances. Kreol Trading is the travel retail representative for Cadillac Perfumes.” GRC became Jelly Belly’s worldwide travel retail agent in September of last year and recently appointed Kreol Trading to represent the travel retail market in the Middle East and the Indian subcontinent for the

K Rémy Martin, Grey Goose, Patrón, Los Vascos wines, Heineken and Tecate are selling well at Image Duty Free’s stores along the US/Mexico border

Image Duty Free enjoys sales increases along the US/Mexico border mericas Duty Free recently spoke with Jan Baljet, Senior Vice President of Image Duty Free, about the company’s performance of late. He noted that the strength of the Mexican Peso versus the US Dollar has resulted in increased spending by Mexicans at the company’s stores. “Rémy Martin, Grey Goose, Patrón, Los Vascos wines, Heineken and Tecate are selling very well in terms of spirits,” said Baljet. “Fragrances are also big sellers at our stores, and Dolce & Gabanna Light Blue, Acqua di Gio and CH from Carolina Herrera are great performers in that category.” Image Duty Free also deserves much of the credit for its increased sales; the company recently installed new furniture in one of its stores in San Ysidro in addition to revamping the exterior. The operator has also increased its marketing activity by running a high-profile radio spot, which Baljet asserts has captured many new clients. “We’ve seen business increase over the last few months, which is a good sign that the economy is improving,” concluded Baljet. “In 2011 our concentration will be on continuing to list new products, such as Los Vascos wines and King Robert Scotch whisky, which are new to our stores, and continuing to offer our customers unique GWP and discount promotions.”


“We’re very pleased to be working with GRC and Jelly Belly, and look forward to creating more partnerships at the IAADFS exhibition this year.” A.S. Lal, Chief Executive, Kreol Trading

Jelly Belly range of gourmet jelly beans. For Kreol Trading, partnering with a company the likes of Jelly Belly represents an opportunity to continue growing its already substantial business. “We’re very pleased to be working with GRC and Jelly Belly, and look forward to creating more partnerships at the IAADFS exhibition this year,” concludes Lal. THE AMERICAS DUTY FREE & TRAVEL RETAILING


David Dayan, International Director of Les Accessoires Travel Retail

In Brief

Hotel Casa de Santo Domingo in Antigua, Guatemala hosts a number of travel retail-related events throughout the year


otel Casa de Santo Domingo in Antigua, Guatemala recently hosted an event for Christian Dior Travel Retail Latinoamérica from February 14 to 18. The 5day session featured information seminars for salespeople on new launches and projects, and also served as a celebration of all that Dior accomplished in travel retail in 2010. Beka International, which counts among its clients such companies as Industrias Licoreras de Guatemala, Cerveceria Centro Americana, Anacafe, Distribuidora Marte and Liverpool Mexico, was hired to decorate the event, providing flowers, table cloths and a number of other fineries. Hotel Casa de Santo Domingo is located 45 kilometers from the capital city and 10 minutes’ walking distance from the center of La Antigua Guatemala. The hotel has hosted numerous travel retail events in the past, largely as a result of its unique ambiance, topquality catering service and convenient location. Antigua Guatemala, founded in 1543, was the seat of Spanish colonial government for the Kingdom of Guatemala. In 1979 UNESCO recognized Antigua Guatemala as a Cultural Heritage of Mankind site.

Foster Grant sunglasses offer 100 percent UVA-UVB protection. “Who’s that behind those Foster Grants?”

LightSpecs readers feature built-in LED lighting

oster Grant (FGX International), a pioneer sunglasses brand dating back to the early years of the last century, is hoping a newly concluded distribution agreement with Go Snacks Ltd. will give its products a global boost in travel retail. “This partnership is FGX International’s first foray into the duty free channel,” says Sal Siano, Foster Grant Marketing Director. The brand is sold in more than 65,000 locales around the world, and already has highly visible profile among frequent travelers thanks to its existing representation at airport newsstands. In addition to sunglasses, products include high-end reading glasses (the Corinne McCormack brand is part of their portfolio) and an innovative line of glasses that filter out the damaging blue light emitted by computer monitors. Among the newer products are LightSpecs reading glasses, which feature built-in LED lighting, and MicroVision, a full-size reading glass with telescoping temples that fold up into a compact storage case.




“Over-the-counter reading glasses and non-prescription sunglasses are a perfect fit for travel retail,” Siano says. “There’s often a need to buy a new pair, replace a broken or lost pair or simply find an exciting new style. FGX offers a wide range of fashionable styles at affordable prices, making it very easy for consumers to find the right pair.” The new agreement empowers Go Snacks to expand Foster Grant wherever it sees opportunity. “FGX International’s product offering, along with our partnership with Go Snacks, should allow us to enter any form of travel retail,” Siano says. “The opportunities for FGXI and Go Snacks are limitless.”

LATR’s Vilebrequin display

The write


t last year’s IAADFS, David Dayan, International Director of Les Accessoires Travel Retail (LATR) was proud to introduce Vilebrequin, the flashy men’s swimwear brand born in St. Tropez in the ‘70s. The high-profile brand was a major coup for LATR, a success that will be followed up this year with another coup: LATR’s introduction of Parker writing instruments. Parker has come out the gate at a pretty pace, Dayan says. “When Parker decided last year to come back to travel retail, they gave LATR the worldwide distribution for travel retail,” he says. “We did a pre-launch at ASUTIL last August, and then launched the product and travel retail concept in Cannes. Since that time, we have opened 47 points of sale in America and are continuing to develop our airline, cruise and airport channels.” LATR’s 37-square-meter booth at IAADFS will showcase Parker, Dayan says, “but we’ll have Vilebrequin on display too.” The European phase of marketing for Parker started in January – ten airports have been signed so far – and Asia will commence at TFWA Asia-Pacific in Singapore in May. As for Vilebrequin, things haven’t slowed down at all since LATR



took up the cause one and a half years ago. Forty-seven airports are onboard now, including Kuala Lumpur and Macau, and a deal with DFS has led to the opening of Vilebrequin boutiques in Guam and Bali – the latter measuring an impressive 920-square-meters. This is in addition to the 47 boutiques already operating in the Americas. In Europe, Vilebrequin has captured the prime airport locations in Paris Charles de Gaulle and Orly, as well as Geneva, Milan, Vienna and others. LATR has placed Vilebrequin in Miami Airport through DFA. The brand is also in JFK Airport in New York and Boston’s Logan International Airports. London Supply operates an outlet in Foz do Iguaçu, while Vilebrequin is already established in St. Maarten and St. Thomas and will debut soon in Duty Free Uruguay. All in all, says Dayan, “the brand is developing well in the Americas.” For next year, Dayan plans to roll out Vilebrequin in seven or eight new airport locations as well as aboard cruise lines. The agenda for Parker will be to open in 10 or 15 new airport locations. “In 2011 LATR will continue the worldwide development of our travel retail channel,” Dayan says. “And for sure we’ll have new luxury fashion brands in our portfolio.”

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In Brief

hile the months leading up to the winter holidays are generally a busy time for operators and suppliers alike, November and December were particularly busy for Bijoux Terner; the company opened no fewer than seven stores/kiosks both in duty free and local markets. On November 23, 2010 in Miami Mall, Bijoux Terner opened a full store, marking the fashion accessories company’s first presence in a local mall in Miami. Also in late November, Bijoux Terner opened a shop-in-shop measuring 70-square-meters in Danish House in Tbilisi, Georgia. On December 9, the company opened a 55-squaremeter store within a border store in Iquique, Chile. This represented another groundbreaking achievement for Bijoux Terner as the company previously did not have a store at this location. On December 14, two stores were opened, the first being a 16-squaremeter standalone airport shop in Hurghada Airport (the company’s third there) and the second a 75-squaremeter full-size store in the Nassau local market. On December 18, Bijoux Terner opened yet another full-size store measuring 67-square-meters in Trinidad & Tobago’s Port of Spain. Finally, on December 28, the company opened its first location in West Palm Beach, Florida, a kiosk in a trendy service plaza.


Baja Duty Free’s Gateway store in San Ysidro, California

Baja Duty Free to open new store in Tecate, CA aja Duty Free currently operates 8 stores along the US/Mexico border that vary in size from 110-squaremeters to 560-square-meters and feature many popular duty free categories, from spirits, tobacco and fragrances to accessories, luxury goods, apparel and confectionery. Baja Duty Free is currently in the midst of planning for a new store opening in Tecate, CA. The store will measure 165-square-meters and open at the beginning of Q2. According to Achim Fritzen, CEO of Fairn & Swanson Inc, parent company of Baja Duty Free, business has been excellent over the last few months, and given the improvement in the economy, the timing was right for opening a new location. “2010 was our strongest year yet, and 2011 is off to an even better start with a 20% increase in sales during January,” he says. “The trav-


eling public has recently been more open to spending and we’re seeing an increase in the number of purchases per customer.” The uptake sales likely has a lot to do with the operator’s commitment to offering its clients the very best in new products. Fritzen cites the promotion of spirits and fragrances as good examples and explains that Baja Duty Free has specials virtually every month in order to keep repeat customers coming back for more. Fritzen notes that the new store in Tecate will be run under the same highly successful philosophy that has brought Baja Duty Free and its parent company Fairn & Swanson Inc. to the forefront in duty free in the region: “We’re very much looking forward to opening the new store in late April as a means of continuing to offer cross-border travelers the high level of service and quality products that they expect from Baja Duty Free.”

Travalo exhibits at IAADFS for first time


ravalo will be presented at the 2011 IAADFS boost anytime, anywhere. A winner at Cosmopolitan Beauty Awards 2010, the Duty Free Show of the Americas in Orlando.

This is the first time the brand will be exhibited at the show. Market Connections Sales Agent for Travalo Abi Bright says: “IAADFS is an extremely important event for us and we are looking forward to meeting current and new customers and building strong relationships within the USA and surrounding regions.” Travalo is a refillable atomizer bottle with a difference. Its patented easy fill system allows the user to refill in seconds with a simple repeat pump action. Travalo makes it easy and convenient to have a fresh confidence 26


pocket sized 8cm Travalo perfume spray bottle refills in seconds directly from a big fragrance spray bottle. It’s made of aircraft grade aluminum and no glass at all makes it safe and tough enough to carry fragrance everywhere. Packing an incredible 50 sprays, Travalo has an integrated fill level indicator window to show how much fragrance is left, it never runs out unexpectedly. A travel essential for both men and women, it's even approved safe in aircraft hand luggage.


Top Story: Dufry

South America led the way in terms of turnover in Dufry’s most recently released figures; pictured is one of the operator’s stores in Brazil

Opportunity knocks



Dufry’s most recent sales statistics point to success in the Americas in 2010, and PAX forecasts to 2020 suggest that the region holds unlimited potential for the future mericas Duty Free recently sat down with Dufry CEO Julian Diaz to discuss the company’s most recently released statistics. From success in Brazil as a result of innovative installment plans to positive numbers in North America largely due to the omnipresent Hudson News brand, Diaz asserts that Dufry is poised to continue growing in 2011 with new store openings, contract renewals, customer research programs and ambitious staff training initiatives.


Americas Duty Free: According to your last publically released figures, the South America region, led by Brazil, was the strongest in terms of turnover. “New ways of payments” were cited as a contributor to Dufry’s success here. Can you explain? Julian Diaz, CEO, Dufry: As part of Dufry’s strategy of growth, we always work on ways of improving spend per passenger in our shops in general. Payment in installments has become a strong habit of Brazilians. In the past, with high inflation and low income, Brazilians couldn’t afford to buy in cash or just credit card in one installment, and when Dufry started to operate here we realized that installments could be part of our payment options. In this regard, in 2006 we started to implement [installment plans] and immediately we were able to reap the benefits. Nowadays, in purchases up to US$100 it is possible to pay in two installments, reaching up to seven installments when you spend above US$400. ADF: With regard to South America, what categories are leading the way? JD: In Region South America, categories such as Perfumes, Cosmetics and Wine & Spirits have been driving the business in the past year and are the best selling and more mature prod28

ucts in our portfolio. In terms of emerging categories, generally speaking watches are always a product that is the first to suffer an impact in a crisis and the first one to recover when the economy starts to improve. ADF: Can you give your view on the increasing importance of Brazil since the economic downturn? Do you see the country continuing to play a key role in duty free? JD: The Brazilian economy has proven in recent years to be mature and consolidated with virtually all its financial indicators under control. A proof of this was the crisis in the financial markets in 2008 where Brazil was able to go through it mainly unscathed due to the measures adopted in the Brazilian economy to continue to encourage consumption. Today we see Brazil in a very good position within the emerging markets and the global economy as a whole. The forecast for the Brazilian economy remain positive. According to a survey of the Brazilian Central Bank, the market expects GDP to grow around 5% in 2011 and large investments are expected, mainly in infrastructure. As a result, investments in the airports will be made to meet the demand of the World Cup (2014) and the Olympic Games (2016). In that sense it reinforces the strategy of Dufry to focus on emerging markets, and we believe that Brazil will continue to have a prominent role in the Group's business. ADF: Turnover increased 12.1% in North America in your latest figures. The success of Hudson News was cited as a contributing factor. Can you tell us a bit about your plans for Hudson News this year? JD: There are two strands: the further expansion of Hudson News in the US and Canada,


and the international rollout of this concept. Dufry and its partners were awarded four retail packages in Los Angeles International Airport at the end of 2010. The award included 8 newsstands, a bookstore and 12 specialty retail stores totaling some 1,850-squaremeters of prime selling space. These stores will begin opening during 2011. We also won a tender in January 2011 for four news and gift stores in Terminal A and one store in the new Terminal C. The international roll-out of the Hudson News concept started at the beginning of 2009. Puerto Rico, Dominican Republic and Italy were some of the countries where we opened the first Hudson News stores. One and a half years later, we have 70 Hudson News shops in 10 countries. The Hudson News model is very flexible when it comes to the locations. We have Hudson News stores measuring 200-square-meters but in other shops the offer can fit on a wall or even a column. Another advantage is the complementarities between duty free and duty paid shops. Actually, we have stores, as in Switzerland and Dominican Republic, where we combine the classic duty free with the assortment of these convenience shops and it works well. So, both shop concepts transfer customers to each other. The international Hudson News concept expansion goes parallel and in line with duty free expansion. That is why we are creating new clusters in several other countries. The objectives continue to be ambitious. ADF: Despite the lagging effects of the recession, your numbers are quite strong in North America. Other than the strength of the Hudson News brand, to what do you attribute Dufry’s success in North America? JD: Customers are drawn to the Hudson News


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Top Story: Dufry

Dufry now has 70 Hudson News locations spread throughout 10 countries; pictured is one of the first opened outside the US in Puerto Rico

brand because they know that this is where they can obtain everything they need to make their travels more pleasurable: reading materials, snacks, beverages, health & beauty aids and a thousand travelers’ necessities, from brand name greeting cards and reading/sunglasses to electronics and high quality gifts and souvenirs. Dufry’s success is also reflected in its classical duty free flagship stores, for example in Houston and in Newark where we have been awarded in both locations in the last quarter 2010 the extension of the contract for seven years. ADF: In terms of popular categories, have there been any major shifts lately? What are people purchasing?

ADF: Many people see Central America as having similar potential in terms of sales as South America. How do you see the region in 2011 and how do you intend to increase sales in Central America? JD: In the latest released figures, which were the 9-month results 2010, Central America & Caribbean registered an increase of 11.1% on constant FX rates. The English-speaking Caribbean continued to show certain performance improvements and the remaining Caribbean business performed well in general. As a tourist destination I see good potential for the region and Dufry will further improve the efficiency of its operations to drive

identified in 2011? How does Dufry intend to capitalize on these trends? JD: The most important driver is the development of the passenger numbers. According ACI and Air4cast, potential customers will grow over the next 20 years by an average of 4% annually. Travel retail offers great business opportunities considering the development of passenger numbers over the next 20 years (an increase of 200 million new possible customers per year) and the tremendous amount of new travel retail space coming on line in the next years. Dufry’s goals will be to capture this growth potential and to continue expanding its business through organic growth, new concessions and acquisitions.

“Travel retail offers great business opportunities considering the development of passenger number over the next 20 years and the tremendous amount of new travel retail space coming on line in the next years.” Julian Diaz, CEO, Dufry JD: Book sales have continued [to be] strong, despite advances in the use of electronic reading devices. TSA regulations in the US that bar travelers from bringing liquids through security have led to an increase in the amount of bottled beverages sold post-Security. Electronics (headphones, ear buds and other accessories) have become a very good source of incremental income for Hudson. Our Tech on the Go standalone specialty retail stores have been very successful, and that category is being expanded in all our larger newsstands in special selling sections we call Tech on the Go Express. Healthy snacks are a growing category as well, with the increasing focus on healthy eating. In addition, our Grab & Go self-service units are being expanded as airlines continue to cut back and charge customers for on-board food and beverage service.


overall profitability. The launch of the Dufry Plus One sales training programme in several operations (e.g., Barbados, Mexico, Puerto Rico, Dominican Republic and Nicaragua) and new shop openings in St. Kitts and Houston, for example, should contribute to the performance of the region. ADF: What do you feel is Dufry’s biggest obstacle in 2011? JD: Obstacles are changes in the legislation which may affect the sale or consumption of products we sell. Examples would be tobacco, restrictions implemented under the basis of improved security measures in the travel retail environment and volatility due to the management of currencies for fighting the economic crisis worldwide. ADF: What emerging trends have you



Brazil Report

Four major players in Latin American duty free weigh in on Brazil’s rise to economic power and its significance for the travel retail industry BY RYAN WHITE n the midst of an economic turmoil that has left few regions of the world unscathed, Brazil has emerged from the sound and fury of the last two years as a country that has flourished in many respects. Fortunately for the duty free and travel industries, Brazil’s burgeoning middle class is spreading the love, with travel from the country to a variety of destinations increasing substantially. Sales of jet fuel in Brazil rose 16.6% year on year in 2010. In December 2010 alone, it was reported that Brazilian oil giant Petrobas sold an average of 119,000 barrels of jet fuel per day, which represents a 4.9% increase from the previous record set in July 2010. And where are Brazilians traveling? Neighboring countries have certainly seen an increase in the number of vacationing Brazilians. It was reported that in 2010, the number of Brazilians visiting Uruguay increased by 25% over the previous year while the number of US visitors decreased by 7%. Furthermore, Uruguay has announced its tourism goals for 2015; the country hopes to attract 2.6 million visitors generating revenues of US$1.8 billion. Uruguay is banking on 18% (475,000 travelers) of the total number of visitors being from Brazil. Of course, Brazilians are traveling to other locations in the Americas as well. The Canadian Tourism Commission noted in its most recent statistics for the month of November 2010 that travel by Brazilians to Canada represented the highest year-on-year increase of inbound passengers by country at 37.9%. Brazilians also figured heavily in the United States’ Office of Travel and Tourism Industries’ November 2010 tourism figures, with a year-on-year increase in arrivals of 29.2%. Notably for the duty free industry, Brazilians aren’t just traveling—they’re spending. According to Statistics Canada, Brazilians spent CAD$28.2 million (US$28.6 million) while in the country in November 2010 alone, which represents a year-on-year increase of 24.8%. Likewise in the US, Brazilians spent about US$1.4 billion in Q4 2010, which represents a 15% increase over the same period in 2009. Given the billions of dollars Brazilians are spending annually on travel, it’s not surprising that the duty free industry has taken notice. Americas Duty Free spoke with four companies—Lucas-Calcraft, Puig, Shopping China and Interbaires—to learn about the successes they’ve achieved in targeting Brazilian consumers in duty free, their opinions on the sustainability of the Brazilian economy and their thoughts on what 2011 may hold.


ruguay-based confectionery distributor Lucas-Calcraft has been providing clients with high-quality confectionery products for decades and is widely considered one of the pioneering suppliers in the Uruguayan duty free industry. The company sells to a number of duty free businesses in Uruguay and Paraguay. Vice President of Lucas-Calcraft Alejan-

dro Sosa notes that increased sales along the border with Brazil are due in a large part to the country’s increased buying power: “Sales have grown over 50% in the last year at border stores,” he says. “The influence of Brazilian tourism impacts strongly on sales at these border stores and generally accounts for the increases.” Sosa has noticed that Brazilians are particularly fond of purchasing items such as

“Everything indicates that Brazil is on the right track for growth. The World Cup in 2014 and the Olympics in 2016 are strong motivators for this.” Alejandro Sosa, Vice President, Lucas-Calcraft



whisky, energy drinks and clothing. LucasCalcraft recently launched Dilmah Tea and has seen great success at duty free stores on the border with Brazil. Sosa cites a recent trend toward tea in many countries and says that the product has proven popular with Brazilians as well. Brazilian consumers are also purchasing a lot of confectionery products, according to Sosa. Indeed, Lucas-Calcraft is well positioned to take advantage of the category’s popularity with its new brands Mentos & Chupa Chups. While Sosa is very optimistic about what the next few years may hold for Brazil, he does cite currency fluctuations as a consideration to watch in the months ahead: “Everything indicates that Brazil is on the right track for growth. The World Cup in 2014 and the Olympics in 2016 are strong motivators for this. On the other hand, the value of the dollar is not favorable to their exports and its value in the future is something to consider as it could affect duty free sales.”

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Brazil Report

Last year Puig products represented about 20% of fragrance sales—excluding cosmetics—at Dufry Brazil’s stores


uig has seen great success in Dufry Brazil’s stores with brands such as Carolina Herrera, Prada, Paco Rabanne and Nina Ricci. While the company’s year-on-year sales in 2009 were flat (an achievement in itself considering the depth and breadth of economic


razil is Shopping China’s main target market, and all of the operator’s stores border the country. In fact, Brazilians made up fully 90% of the company’s clientele in 2010. The operator welcomes an average of 2.5 million Brazilians to its stores yearly. Needless to say, Shopping China is very interested in the purchasing habits of its customers and makes a concerted effort to be at the cutting edge when it comes to what’s trending. “Particularly popular categories at the moment are accessories, spirits, sunglasses and cosmetics,” says Felipe Cogorno, Director of Shopping China. “We listen carefully to what our customers are looking for and stock those products. At the same time, we engage in very targeted marketing initiatives relating to products we feel will be popular with Brazilians.” Cogorno notes that Brazilians are truly trendsetters, particularly when it comes to fashion, perfumery and spirits. Largely as a

crisis), 2010 was a year to remember, with sales increasing an impressive 70%. Puig’s Commercial Manager Julien Bertipaglia notes that Brazil in particular was a standout last year. “Of course, Brazil is a very important market for us,” he explains. “Last year Puig products represented about 20% of fragrance sales—excluding cosmetics—at Dufry Brazil’s stores.” Brazil’s love affair with Puig will continue this year with the exclusive launch of CH L’eau by Carolina Herrera in Dufry’s stores throughout May and June. “It is a very floral and light fragrance, which should fit perfectly to the Brazilian consumer,” says Bertipaglia. “We expect big sales.” June will see the launch of Nina L’Elixir by Nina Ricci, and in July Puig will release its limited edition 212 POP/212 POP Men by Carolina Herrera. The launch of Prada’s Limited Edition, AMBER POUR HOMME Intense is set for August, while 212 VIP Men by Carolina Herrera is expected to generate sales sim-


n a recent interview with Americas Duty Free, Martin Leal, CEO of Interbaires, gave his opinion on the importance of Brazilian travelers to the Argentina-based operator’s business: “Of course, a large portion of our sales come from Brazilian travelers, and they certainly look for new and exclusive brands. I think paying attention to the spending habits of Brazilian customers is more important than ever and it’s really necessary for us to take this into account when considering product mix. “Whereas before we were looking to trends in Europe and the United States to inform our decisions as a company, the relative strength of the Brazilian economy when compared to other countries now obligates us to pay very close attention to what these travelers want.”

result of staying on top of purchasing habits, Shopping China’s revenues reached a remarkable US$500 million in 2010, firmly putting it in the top spot among duty free stores that

“With Brazilian customers willing to spend, the responsibility falls on us to provide them with the quality products they want.” Felipe Cogorno, Director, Shopping China


ilar to those of its feminine counterpart when it is launched in October. Finally, the highly anticipated Prada Candy will be released near the end of the year, complete with a new ad campaign shot by Jean-Paul Goude. As a result of the increased importance of Brazil to its business, Puig has upped investments in advertising and promotions there in addition to investing in the local market by creating its own subsidiary. In fact, Bertipaglia believes the confidence that investors have in the country is one of the reasons why Brazil has performed so well of late. “The growth in Brazil in general is due to massive investment from abroad in the Brazilian economy and a recovered economy—30 million people shifted above the poverty line over the last ten years or so,” he says. “Furthermore, our duty free sales are strong due to the re-evaluation of the Real. After a lot of uncertainty at the beginning, I think confidence really came back in Brazil during the era of President Luiz Inácio Lula da Silva.”


border Brazil in terms of turnover. “We’ve seen a big improvement in the Real in the last few years,” says Cogorno. “The situation seems to improve with every passing year, so I think the growth of the Brazilian economy is certainly sustainable. “With Brazilian customers willing to spend, the responsibility falls on us to provide them with the quality products they want,” Cogorno concludes. “Our sales statistics are clear indications that the tradition of customer service that started with Shopping China’s inception in 1933 is alive and well in 2011.”

Brazil Report

Cuatro importantes compañías duty free latinoamericanas aprovechan la ascensión de Brasil como potencia económica y su significado para la industria minorista de viajes n medio de una crisis económica de la que se han salvado escasas regiones del mundo, Brasil ha surgido de la agitación de los dos últimos años como un país floreciente en muchos aspectos. Por suerte para las industrias duty free y minorista de viajes, la pujante clase media brasileña está difundiendo el amor a los viajes con una amplia gama de destinos que crece sustancialmente. Las ventas de combustible para aviones en Brasil aumentó un 16.6% en el 2010, con respecto al año anterior. Y sólo en diciembre del 2010, se reportó que Petrobras, el gigante petrolero brasileño, vendió un promedio de 119,000 barriles de combustible de aviones por día, lo cual representa un incremento del 4.9% en comparación con el récord previo establecido en julio del 2010. Y ¿adónde viajan los brasileños? Los países vecinos han experimentado un crecimiento


en visitas de pasajeros. Se reportó que en el 2010, la cantidad de brasileños que visitaron Uruguay se incrementó en un 25% con relación al año anterior. Para ponerlo en perspectiva, la cifra de visitantes estadounidenses disminuyó un 7% durante ese mismo período. Además, Uruguay ha anunciado sus objetivos turísticos para el 2015: el país espera atraer 2.6 millones de visitantes para generar ingresos de US$1.8 mil millones. Uruguay ha pronosticado que el 18% (475,000 viajeros) de la cifra total de visitantes serán brasileños. Por supuesto, los brasileños también viajan a otros países de las Américas. La Comisión Canadiense de Turismo destacó en sus estadísticas recientes del mes de noviembre del 2010 que los viajes de brasileños al Canadá representaron el mayor crecimiento de año en año de pasajeros extranjeros por país, con un 37.9%. Los brasileños también aportaron una cantidad notable en las cifras compi-

ucas-Calcraft, distribuidor de confitería radicado en Uruguay, ha estado suministrándoles a los clientes productos de alta calidad durante décadas, y está considerado como uno de los principales proveedores de la industria duty free uruguaya. La compañía les vende a numerosos negocios duty free en Uruguay y Paraguay.

del 50% el año pasado en las tiendas de frontera. La influencia del turismo brasileño ha ejercido un gran impacto en las ventas en estas tiendas de frontera, y generalmente aporta grandemente a los incrementos”, asegura Sosa. Sosa ha notado que a los brasileños les gusta particularmente comprar mercancías como whisky, bebidas para aumentar la energía y

ladas por la Oficina de Industrias de Viajes y Turismo de los Estados Unidos relativas a noviembre del 2010, con un incremento de llegadas de año a año del 29.2%. Notablemente para la industria duty free, los brasileños no sólo están viajando: están gastando. Según Statistics Canada, los brasileños gastaron CAD$28.2 millones (US$28.6 millones) en Canadá en noviembre del 2010 solamente, lo cual representa un incremento de año a año del 24.8%. De forma similar, en los Estados Unidos los brasileños gastaron cerca de US$1.4 mil millones en el cuatro trimestre del 2010, lo cual representa un incremento del 15% con respecto al mismo período del 2009. Dados los miles de millones de dólares que gastan anualmente en viajes los brasileños, no es sorpresa que la industria duty free haya tomado nota de esta situación. Americas Duty Free habló con cuatro compañías—Lucas-Calcraft, Puig, Shopping China e Interbaires—para conocer detalles de los éxitos alcanzados al enfocarse en los consumidores brasileños en duty free, así como sus opiniones sobre la sostenibilidad de la economía brasileña, y sus puntos de vista acerca de lo que les pudiera deparar el 2011.

Alejandro Sosa, vicepresidente de Lucas-Calcraft destaca que el incremento de las ventas en tiendas fronterizas con Brasil se debe en gran medida al crecimiento del poder adquisitivo de ese país. “Las ventas han aumentado más

ropa. Recientemente s Lucas-Calcraft inauguró su producto Dilmah Tea, que ha tenido un gran éxito en las tiendas duty free colindantes con Brasil. Sosa cita una tendencia reciente al consumo de té en muchos países,

y afirma que el producto también goza de popularidad entre los brasileños. Los consumidores del Brasil también están comprando gran cantidad de productos de confitería, según el alto funcionario de la compañía distribuidora. Lucas-Calcraft ocupa una posición privilegiada para aprovechar la popularidad de la categoría con sus nuevas marcas Mentos y Chupa Chups. Aunque Sosa expresa un gran optimismo acerca de lo que los próximos años le deparan a Brasil, menciona las fluctuaciones de moneda como consideración a tener en cuenta para los meses que se avecinan: Todo indica que Brasil va por el camino correcto de crecimiento. La Copa Mundial en el 2014 y las Olimpiadas del 2016 son notables fuentes de motivación para esto. Por otra parte, el valor del dólar no es favorable para sus exportaciones, y en el futuro es un factor a considerar pues podría afectar las ventas duty free”.

uig ha logrado gran éxito en las tiendas as Dufry Brazil con marcas como Carolina Herrera, Prada, Paco Rabanne y Nina Ricci. Si bien las ventas de la compañía del 2009 con respecto

al año anterior no experimentaron alza ni baja (un logro, considerando la profundidad y alcance de la crisis económica), el 2010 fue un año para recordar, con ventas que alcanzaron un impresionante 70% de incremento.

Julien Bertipaglia, gerente comercial de Puig, destaca que Brasil en particular fue un factor prominente el año pasado. “Por supuesto, Brasil es un mercado muy importante para nosotros. El año pasado, los


“Todo indica que Brasil va por el camino correcto de crecimiento. La Copa Mundial en el 2014 y las Olimpiadas del 2016 son notables fuentes de motivación para esto”. Alejandro Sosa, vicepresidente, Lucas-Calcraft

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Brazil Report

productos Puig representaron cerca del 20% de las ventas de perfume (excluyendo los cosméticos) en las tiendas Dufry Brazil”, explica Bertipaglia. El romance de Brasil con Puig seguirá este año con la inauguración exclusiva de CH L’eau de Carolina Herrera en las tiendas de Dufry en mayo y junio. “Es un perfume muy floral y ligero, que debe sentarle perfectamente al consumidor brasileño. Esperamos grandes ventas”, añade Bertipaglia. En junio se realizará el lanzamiento de Nina L’Elixir de Nina Ricci, y en julio Puig inaugurará su edición limitada de 212 POP/212 POP Men de Carolina Herrera. La

n una reciente entrevista concedida a Americas Duty Free, Martin Leal, director ejecutivo de Interbaires, dio sus puntos de vista acerca de la importancia de los viajeros brasileños para el negocio del operador radicado en Argentina: “Por supuesto, una gran porción de nuestras ventas procede de los viajeros brasileños, y éstos buscan marcas nuevas y exclusivas. Pienso que si prestarles atención a los hábitos de gastos de los clientes brasileños es más importante que nunca, y es realmente necesario que tomemos esto en cuenta a la hora de considerar una mezcla de productos”. “Antes de buscar el comportamiento de las tendencias en Europa y Estados Unidos para sustentar nuestras decisiones como compañía, la solidez relativa de la economía brasileña en comparación con otros países nos obliga actualmente a prestar más atención a lo que quieren estos viajeros”, añade Leal.

presentación de la edición limitada de AMBER POUR HOMME Intense de Prada está programada para agosto; mientras que se espera que 212 VIP Men de Carolina Herrera genere ventas similares a los de su contraparte femenina cuando salga al mercado en octubre. Finalmente, el tan anticipado Prada Candy saldrá a la venta cerca de fin de año, con una nueva campaña de anuncios publicitarios filmados por Jean-Paul Goude. Como resultado de la creciente importancia de Brasil para su negocio, Puig ha aumentado sus inversiones de publicidad y promociones además de invertir en el mercado local creando su propia subsidiaria.



Bertipaglia estima que la confianza que tienen los inversionistas en el país es una de las razones por las cuales Brasil ha tenido tanto éxito últimamente. “En general, el crecimiento en Brasil se debe a una inversión masiva del extranjero en la economía brasileña, y en una economía recuperada, pues 30 millones de personas salieron del nivel de pobreza en los últimos diez años más o menos. Además, nuestras ventas duty free son enormes debido a la reevaluación del real. Luego de bastante incertidumbre al inicio, pienso que la confianza en Brasil se recuperó durante la era del presidente Luiz Inácio Lula da Silva”.

Brazilians made up fully 90% of Shopping China’s clientele in 2010; an average of 2.5 million Brazilians per year shop at the operator’s stores

rasil es el principal mercado de Shopping China, y todas las tiendas del operador bordean el país. Los brasileños conformaron un total del 90% de la clientela de la compañía en el 2010. Anualmente, el operador recibe un promedio de 2.5 millones de brasileños en sus tiendas. Por tanto, no es necesario decir que Shopping China está muy interesada en los hábitos de compra de sus clientes, y lleva a cabo un esfuerzo concertado por estar a la vanguardia en lo tocante a lo que está de moda. “Las categorías particularmente populares en este momento son los accesorios, espirituosos, lentes de sol y cosméticos. Escuchamos cuidadosamente a lo que buscan nuestros clientes, y abastecemos esos productos. Al mismo tiempo, realizamos iniciativas mercadotécnicas muy bien dirigidas con relación a los productos que estimamos gozan de popularidad entre los brasileños”, afirma Felipe Cogorno, director de Shopping China. Cogorno puntualiza que los brasileños marcan tendencias, particularmente en materia de modas, perfumería y licores. Como resultado de estar al tanto de los hábitos de compra, los ingresos de Shopping China totalizaron la cifra notable de US$500 millones



“Como los clientes brasileños están dispuestos a gastar, es nuestra responsabilidad proporcionarles los productos de calidad que desean”. Felipe Cogorno, Director, Shopping China en el 2010, ubicándola sólidamente en el primer lugar de las tiendas duty free que colindan con Brasil en términos de ganancias. “Hemos visto una gran mejoría en el real en los últimos años. La situación parece mejorar cada año, por lo que pienso que el crecimiento de la economía brasileña es realmente sostenible”, añade Cogorno. “Como los clientes brasileños están dispuestos a gastar, es nuestra responsabilidad proporcionarles los productos de calidad que desean. Nuestras estadísticas de ventas son claras indicaciones de que el servicio al cliente que comenzó con la creación de Shopping China en 1933 sigue muy vigente en el 2011”, concluye Cogorno.

Latin America Report Erasmo Orillac, Director of Motta says that “new promotions and marketing strategies” will be an area of concentration for Motta in 2011

Americas Duty Free speaks with six operators across Latin America to find out what’s hot, what’s not and what to expect from the dynamic region in 2011 he opening of a new 670-squaremeter multi-category duty free store in the departures area of El Dorado Airport in Bogota, Colombia capped off a good 2010 for Panama-based operator Motta Internacional. Erasmo Orillac, Motta’s Director, says that 2011 is looking positive as well, with passenger numbers up and plans for


another store in Bogota already in the works. “Throughout our region of operations, both passenger numbers and sales have been increasing,” he says. “In general, we had an increase in sales ranging from 10% to 25% in 2010, and have seen this trend continue during the first months of 2011.” Orillac notes that the current economic

“Economic growth in Latin America is sustainable and on the rise; governments have begun to implement policies in order to create incentives for foreign investors.” Erasmo Orillac, Director, Motta Internacional

n December of last year, Interbaires fully renovated two stores in Aeroparque Jorge Newberry in an effort to aesthetically update the locations and arrange categories according to an in-depth study. The company also renovated the cosmetics section in its Ezeiza store in 2010, including four shop-in-shops in association with Dior, Kielhs, Chanel and La Prairie. CEO of Interbaires Martin Leal recently told Americas Duty Free that this year Interbaires will introduce a new aesthetic concept in the wine, liquor, tobacco and confectionery sections of its flagship Ezeiza store.



The renovations should be complete by the beginning of the second quarter. “Our main goal is to offer a better assortment and continue listing new brands as a

situation has actually paved the way for Latin America to continue growing as a tourist destination and attractive place to invest. He remains ”very optimistic” with regard to the medium- and long-term forecast for the region, citing improving trade between Panama and economically sound countries such as China. As mentioned, Motta will be investing this year in the form of another Attenzabranded store measuring 130-square-meters in El Dorado Airport, this time located in the arrivals area. “Our main objective for 2011 is to continue to promote our Attenza Duty Free store brand throughout the region,” says Orillac. “We are also looking for opportunities to have branded boutiques in addition to our traditional duty free stores, such as the Salvatore Ferragamo and Hugo Boss stores we operate at Tocumen Airport in Panama. Finally, we aim to increase awareness of our franchise with new promotions and marketing strategies to increase footfall, spending per passenger and market share.”

means of expanding the categories that show better performance,” said Leal. Leal told us that P&C sales were up 42% in Q4 of 2010 over the same period in 2009.

“The key is to continue investing and offering great products, the best brands and good value for money.”



Martin Leal, CEO, Interbaires

This year will see more car giveaways at Interbaires’ stores; prizes up for grabs include a Jaguar, smart cars and a Ferrari

Overall, the company ended Q4 2010 at 45% above the previous year. The concentration on liquor, tobacco and confectionery in 2011 is certainly justified as these categories combined to contribute 22% of the operator’s total sales in 2010. The company is also plan-

n Q3 of 2010, Aldeasa opened a 570-squaremeter duty free store in Cancun Airport’s Terminal 2 satellite building. As a result, the operator reports that spend per passenger has been on the increase. Furthermore, the highly publicized bankruptcy of Mexicana didn’t hurt business in the airport, with other airlines operating in the region taking over the lost flights. This year the company has seen the fragrances, spirits and tobacco categories outperform in most of its Latin American stores. However, Pedro Castro, Aldeasa’s Operations Director Latin America, Middle East & Asia, says that popular categories tend to change depending on the country in question. “In Mexico, the first category in terms of sales is spirits,” he says. “In Peru, food is above tobacco, while in Colombia the food category is first, even above the popular fragrances category.” Passenger profiles also vary widely from country to country. In general the highest spending clients in Latin America are Russian. Notable exceptions to this rule are Mexico, where North Americans tend to purchase the most, and Curaçao, where Venezuelans are the number one spenders. In 2011, Aldeasa will continue to cater to this diverse group of passengers by ensuring the proper product mix across all its stores. Moreover, the company will focus on strength-

ning four high-profile promotions spread throughout 2011, with extraordinary prizes such as a Jaguar, electronics, smart cars and a Ferrari up for grabs. Leal concluded the interview by drawing comparisons between the duty free industry

as a whole in Latin America and the business of Interbaires specifically: “The growth that Latin America is experiencing is certainly sustainable. The key is to continue investing and offering great products, the best brands and good value for money.”


Aldeasa’s new store in the satellite building of Terminal 2 measures 570-squaremeters, fully double the size of the operator’s store in Terminal 3

“We are confident that we will continue growing and improving our business throughout 2011.” Pedro Castro, Operations Director Latin America, Middle East & Asia, Aldeasa ening its operations in Mexico, Peru and Chile given the already good relationship it has with these airport authorities. “Indeed, our relationships with ASUR in

Cancun, LAP in Lima and SCL in Santiago are very important to us, and we are confident that we will continue growing and improving our business throughout 2011,” says Castro. THE AMERICAS DUTY FREE & TRAVEL RETAILING


Latin America Report

Top Brands operates 28 stores, both domestic and duty free, located in Belize, Salvador, Panama, Honduras, Guatemala, Puerto Rico, Cuba and Colombia

op Brands operates 28 stores, both domestic and duty free, located in Belize, Salvador, Panama, Honduras, Guatemala, Puerto Rico, Cuba and most recently Colombia. The depth and breadth of the company’s experience is evident in the fact that it currently works with over 100 suppliers. The latest feather in Top Brands’ proverbial cap is the recent opening of a seaport store in Santa Martha, Colombia. Danny Yohoros, Vice President of Top Brands, asserts that the company has now grown sufficiently with its El Dorado-branded duty free stores and Preciosa-branded domestic locations that opening a store in Colombia felt like a natural evolution.


“In the past we focused a lot on Central America and we feel that we’ve developed our duty free business in the region very well to this point,” says Yohoros. “We’re still planning on opening more stores in Central America in the future, but we’ve also decided to branch out into South America. Colombia is an area with huge potential and thus the perfect place to start our expansions.” The store will service both cruise ships and cargo ships, and Top Brands will be the exclusive duty free operator in the port. The location will be a walkthrough measuring 150-square-meters and contain a range of popular duty free categories. Top Brands’ investment in new stores

In Punta del Este, DFU created a luxury lounge in association with Carolina Herrera and Johnnie Walker especially for clients purchasing these brands

or Duty Free Uruguay (DFU), Q4 of 2010 was all about customer appreciation. The company invited VIP clients onboard a deluxe yacht for a cruise around Punta del Este complete with a barman serving Diageo products. However, in keeping with the operator’s reputation for luxury, the VIPs were not invited together; each preferred guest had the boat for one day and was able to invite 10 friends. “This was part of a concentrated program to offer our VIP clients even more of a personalized service,” explains Diego Arrosa, General Manager, DFU. “Also in Punta del Este,

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we created a luxury lounge in association with Carolina Herrera and Johnnie Walker especially for clients purchasing these brands. While the lounge was a pilot project, it’s

underscores Yohoros’ firm belief that there is still plenty of potential for growth in Latin America. The operator’s sales increased by 30% year on year in 2010 and business is expected to increase by the same amount this year. A contributing factor to Top Brands’ success is the formation of a new marketing team that recently developed a new frequent customer card. Clients accumulate points and receive gifts, free products and discounts, which obviously contributes to the all-important question of loyalty. “For Top Brands, it comes down to understanding our customers and marketing ourselves correctly,” Yohoros concludes. “The travelers are there and they’re willing to spend. It’s our job to make sure that they know the benefits of choosing to shop at our stores.” worked very well. We’re waiting until the end of the high season to see if this is something that will work in other locations.” High season in Punta del Este starts in November and ends in March. At the beginning of this year, however, DFU was already seeing the benefits of such customer-driven initiatives. From November 2010 to February 2011, the operator enjoyed a 60% increase in sales over the same period the year before, well above the 15% passenger increase at the airport. “During the rest of this year we’ll continue concentrating on listing new brands in our stores with a particular eye to what Brazilian customers are looking for,” says Arrosa. “They represent 25% of our clients and are really trendsetters when it comes to P&C, apparel and electronics. Our prime concerns are making sure travelers feel appreciated and having a product mix that reflects the tastes of our varied clients.”

“Our prime concerns are making sure travelers feel appreciated and having a product mix that reflects the tastes of our varied clients.” Diego Arrosa, General Manager, Duty Free Uruguay


araguay-based in-flight and airport retailer Bright Star Duty Free recently revamped its website to feature information on all its products, in addition to an electronic version of the company’s in-flight catalogue and a regularly updated tab detailing various in-store promotions. Perhaps most noteworthy, however, is that the website allows travelers to pre-order items before they arrive at the airport. The item is then conveniently delivered to their seats after boarding. Bright Star is also communicating an innovative new concept on the site called Relax Boarding, which allows travelers to experience express beauty treatments and

massages in a comfortable atmosphere before getting on the plane. The type of attention to detail apparent in both the website and the Relax Boarding initiative is the result of a concerted effort on the part of the operator to pay close attention to the needs of its shoppers specifically. The new and improved Bright Star website features information on products, an “We have been concentrating electronic version of the in-flight catalogue and tabs detailing in-store promotions on generating spaces within the store and ing in mind wider worldwide preferences,” says coming up with in-flight offerings that appeal Cynthia Barreto Casartelli, General Manager to the large percentage of regional travelers of Bright Star. “While many passengers shop that pass through the airport while still keep- duty free for fragrances, for example, we’re still very aware that there are passengers who are looking for gifts such as toys, which is a category that we’ve significantly developed over the last year. “It’s dangerous to oversimplify by saying most travelers are looking to purchase this or that in duty free,” adds Antonella Nuovo, Bright Star’s Trade Manager. “As a result, we are very attentive of what our specific pasAntonella Nuovo, Trade Manager, Bright Star senger profiles—both on the ground and in the air—are looking to buy.”


“We are very attentive of what our specific passenger profiles—both on the ground and in the air— are looking to buy.” THE AMERICAS DUTY FREE & TRAVEL RETAILING


Motta’s recently opened departures store in El Dorado Airport, Bogota measures 670-square-meters and offers a multi-category one stop shopping experience

Latin America Report

Americas Duty Free habla con seis operadores de Latinoamérica para enterarse de lo que goza de popularidad, de lo que no es popular, y de lo que se puede esperar de la dinámica región en el 2011 a inauguración de la nueva tienda duty free de múltiples categorías y 670 metros cuadrados en el área de salidas del Aeropuerto El Dorado en Bogotá, Colombia, fue la culminación de un buen año 2010 para Motta Internacional, operador radicado en Panamá. Erasmo Orillac, Director de Motta, afirma que el 2011 también se ve muy positivo, con el aumento de las cifras de pasajero y la creación de otra tienda en Bogotá que ya va en camino. “En nuestra región de operaciones, tanto las cifras de pasajeros como las de venta han ido aumentando. En general, tuvimos un


n diciembre del año pasado, Interbaires renovó totalmente dos tiendas en el Aeroparque Jorge Newberry, con el propósito de actualizar estéticamente las instalaciones y ordenar las categorías de acuerdo a los resultados de un estudio exhaustivo. La compañía también renovó la sección de cosméticos en su tienda de Ezeiza en el 2010, incluyendo cuatro “tiendas dentro de una tienda”, en asociación con Dior, Kielhs, Chanel y La Prairie. Martín Leal, Director Ejecutivo de Interbaires, le comunicó recientemente a Americas Duty Free que este año Interbaires incorporará un nuevo concepto estético en las secciones de licores, tabaco y confitería en su tienda insignia de Ezeiza. Las renovaciones deben terminar a inicios del segundo semestre del año. “Nuestro propósito principal es ofrecer un mejor surtido y seguir incorporando nuevas marcas, como medio de ampliar las categorías de mejor rendimiento”, afirmó Leal. Las ventas P&C en las tiendas Interbaires

crecimiento en las ventas que osciló entre el 10% y el 25% en el 2010, y hemos visto la continuidad de esta tendencia en los primeros meses del 2011”, explica Orillac. El alto funcionario destaca que la situación económica actual ha allanado el camino para que Latinoamérica siga creciendo como destino turístico y un lugar atractivo para invertir, se mantiene “muy optimista” con respecto al pronóstico a mediano y largo plazo para la región, y cita el mejoramiento del comercio entre Panamá y países en alza económica como China. Como se mencionó anteriormente, Motta estará invirtiendo este año en otra tienda de

marca Attenza con 130 metros cuadrados en el Aeropuerto El Dorado, esta vez ubicada en el área de llegadas. “Nuestro principal objetivo para el 2011 es seguir promoviendo nuestra tienda de marca Attenza Duty Free en toda la región”, afirmó Orillac. “También estamos buscando oportunidades de tener boutiques de marca además de nuestras tiendas duty free tradicionales, como las tiendas Salvatore Ferragamo y Hugo Boss que operamos en el Aeropuerto Tocumen de Panamá. Finalmente, nos proponemos incrementar el conocimiento de nuestra franquicia con nuevas promociones y estrategias de mercadotecnia para incrementar el tráfico, el gasto por pasajero y la porción de mercado”.



P&C sales were up 42% year on year at Interbaires’ stores in Q4 of 2010; overall, the company ended Q4 2010 at 45% above the previous year

aumentaron en un 42% en el cuarto trimestre del 2010 con respecto al mismo período del 2009. En general, la compañía concluyó el cuarto trimestre del 2010 a un 45% por encima del año anterior. La concentración en licores, tabaco y confitería en el 2011 está realmente justificada en estas categorías combinadas, para contribuir en un 22% a las ventas totales del operador en el 2010. La compañía también está proyectando cuatro promociones de alto nivel a lo largo del 2011, con premios extraordinarios como un


Jaguar, electrodomésticos, coches “inteligentes” y un Ferrari. Leal concluyó la entrevista haciendo comparaciones entre la industria duty free en conjunto en Latinoamérica, y el negocio de Interbaires específicamente: “El crecimiento que está experimentado Latinoamérica es realmente sostenible. La clave es seguir invirtiendo y ofreciendo los mejores productos, las mejores marcas y un buen valor por el dinero del consumidor”.

Latin America Report

Aldeasa’s new store in the satellite building of Terminal 2 measures 570-square-meters, fully double the size of the operator’s store in Terminal 3

n el tercer trimestre del 2010, Aldeasa inauguró una tienda duty free de 570 metros cuadrados en el edificio satélite de la Terminal 2 del Aeropuerto de Cancún. Como resultado, el operador reporta que el gasto por pasajero está aumentando. Además, la comentada bancarrota de Mexicana no afectó los negocios del aeropuerto, pues otras aerolíneas que operan en la región asumieron los vuelos perdidos. Este año la compañía ha experimentado un gran rendimiento en las categorías de fragancias, espirituosos y tabaco en la mayoría de sus tiendas latinoamericanas. Sin embargo, Pedro Castro, Director de Operaciones de


Aldeasa para Latinoamérica, Oriente Medio y Asia, afirmó que las categorías populares tienden a cambiar en dependencia del país. “En México, la primera categoría en términos de ventas son los espirituosos. En Perú, los comestibles están por encima del tabaco, mientras que en Colombia la categoría de comestibles es la primera, superando incluso la popular categoría de fragancias”, explicó el alto funcionario de Aldeasa. El perfil de los pasajeros también varía enormemente de acuerdo al país. En general, los clientes que más gastan en Latinoamérica son los rusos. Una excepción notable de esta regla lo constituye México, donde los norteam-

ericanos son los que más compran; y Curazao, donde los venezolanos son los que más gastan. En el 2011, Aldeasa seguirá atendiendo especialmente a este grupo diverso de pasajeros, garantizando la adecuada combinación de productos en sus tiendas. Asimismo, la compañía se concentrará en el fortalecimiento de sus operaciones en México, Perú y Chile, dadas las excelentes relaciones que tienen con esas autoridades aeroportuarias. “Nuestras relaciones con ASUR en Cancún, con LAP en Lima y con SCL en Santiago son muy importantes para nosotros, y confiamos en que seguiremos fortaleciendo y perfeccionando nuestros negocios en el 2011”, agregó Castro.

Top Brands’ sales increased by 30% year on year in 2010 and business is expected to increase by the same amount this year

op Brands opera 28 tiendas, nacionales y duty free, ubicadas en Belice, El Salvador, Panamá, Honduras, Guatemala, Puerto Rico, Cuba y recientemente, Colombia. El alcance y profundidad de la experiencia de la compañía es evidente en el hecho de que trabaja actualmente con más de 100 proveedores. El logro más reciente de Top Brands es la inauguración de una tienda portuaria en Santa Martha, Colombia. Danny Yohoros, Vicepresidente de Top Brands, afirma que la compañía ha crecido tan suficientemente con sus tiendas duty free de marca El Dorado, y las instalaciones nacionales de marca Preciosa, que la apertura de una tienda en Colombia fue como una evolución natural.



“En el pasado nos enfocamos mucho en Centroamérica, y creemos que, hasta este momento, hemos desarrollado muy bien nuestro negocio duty free en la región. Seguimos planificando la apertura de más tiendas en Centroamérica en el futuro, pero también hemos decidido orientarnos hacia Suramérica. Colombia es una zona con un enorme potencial, y por tanto, el sitio perfecto para comenzar nuestras expansiones”, dijo Yohoros. La tienda les prestará servicios a barcos de cruceros y de carga, y Top Brands será el operador duty free exclusivo en el puerto. La instalación será de tránsito abierto, con 150metros cuadrados, y contará con una amplia gama de populares categorías duty free. La inversión de Top Brands en nuevas tiendas resalta la firme convicción de Yohoros


de que aun existe mucho potencial de crecimiento en Latinoamérica. Las ventas del operador se incrementaron un 30% de año en año en el 2010, y se espera que aumenten en la misma proporción este año. Un factor que ha contribuido al éxito de Top Brands es la formación de un nuevo equipo de mercadotecnia, que creó recientemente una nueva tarjeta de cliente frecuente. Los clientes acumulan puntos y reciben regalos, productos gratis y descuentos, lo que obviamente contribuye al importante renglón de la lealtad. “Para Top Brands, lo importante es entender a nuestros clientes y hacer la mercadotecnia correcta. Los viajeros están ahí, dispuestos a comprar. Nuestra labor es garantizar que conozcan los beneficios de comprar en nuestras tiendas”, concluyó Yohoros.

Latin America Report

During high season, DFU invited VIP clients onboard a deluxe yacht for a cruise around Punta del Este complete with a barman serving Diageo products

ara Duty Free Uruguay (DFU), el cuarto trimestre del 2010 se centró en la apreciación del cliente. La compañía invitó a clientes VIP a un yate de lujo para hacer un crucero alrededor de Punta del Este, en el que un cantinero sirvió productos Diageo. Sin embargo, para mantener la reputación de lujo del operador, no se invitaron a todos los VIP de una vez. Cada invitado preferido disfrutó del yate por un día y pudo llevar hasta diez acompañantes. “La iniciativa formó parte de un programa concentrado para prestarles a nuestros clientes VIP un servicio mucho más


right Star Duty Free, comerciante minorista de ventas a bordo y en aeropuertos radicado en Paraguay, remodeló su sitio Web para ofrecer información de todos sus productos, además de una versión electrónica del catálogo de ventas a bordo, y una sección actualizada regularmente que detalla varias promociones en las tiendas. Sin embargo, probablemente lo más notable es que el sitio Web les permite a los viajeros pedir previamente mercancía antes de llegar al aeropuerto. El artículo se le despacha convenientemente a sus asientos después de subir al avión. Bright Star también

B 48

personalizado”, explicó Diego Arrosa, Gerente General de DFU. “También en Punta del Este, creamos un salón de lujo en asociación con Carolina Herrera y Johnnie Walker, especialmente para los clientes que compran esas marcas. Si bien el salón fue un proyecto piloto, funcionó a la perfección. Estamos esperando al final de la temporada alta para ver si es algo que funciona en otros sitios”. La temporada alta en Punta del Este comienza en noviembre y concluye en marzo. Sin embargo, a inicios de este año, ya DFU estaba disfrutando de los beneficios de tales iniciativas dirigidas al cliente. Desde noviem-

bre del 2010 a febrero del 2011, el operador logró un incremento del 60% en las ventas, con relación al mismo período del año anterior, muy por encima del 15% de incremento de pasajeros en el aeropuerto. “Estaremos concentrándonos el resto del año en incorporar nuevas marcas en nuestras tiendas, con atención particular a lo que buscan los clientes brasileños”, añadió Arrosa. “Ellos representan el 25% de nuestros clientes, y son realmente innovadores en lo tocante a P&C, prendas de vestir y electrodomésticos. Nuestra prioridad principal es garantizar que los viajeros se sientan apreciados, y tener una combinación de productos que refleje los gustos de nuestros variados clientes”.

está comunicando un nuevo concepto en el sitio conocido como “Relax Boarding”, para que los pasajeros disfruten de tratamientos instantáneos de belleza y masajes en un ambiente cómodo antes de subir a bordo. El tipo de atención en detalle que se evidencia en el sitio Web y en la iniciativa Relax Boarding es resultado de un esfuerzo conjunto por parte del operador, para prestar gran atención a las necesidades de sus compradores específicamente. “Hemos estado concentrándonos en la generación de espacios dentro de la tienda, y la creación de ofertas a bordo que atraigan al gran porcentaje de los viajeros regionales que

pasan por el aeropuerto, y teniendo en cuenta al mismo tiempo las preferencias mundiales más amplias”, afirmó Cynthia Barreto Casartelli, Gerente General de Bright Star. “Aunque muchos pasajeros compran fragancias duty free, por ejemplo, estamos muy conscientes de que hay pasajeros que buscan regalos como juguetes, una categoría que hemos perfeccionado significativamente en el último año”. “Es peligroso simplificar demasiado al decir que la mayoría de los viajeros buscan comprar tal o cual artículo duty free” añadió Antonella Nuovo, Gerente Comercial de Bright Star. “Como resultado, les prestamos gran atención a lo que buscan comprar perfiles específicos de nuestros viajeros, tanto en tierra como a bordo”.






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Operator News: Aldeasa Spain

Aldeasa has a reputation for building large, modern stores equipped with the most up to date technology

Aldeasa looks forward to continued success in Spain’s travel retail channel thanks to new store openings and a well thought out product mix RYAN WHITE BY

ldeasa Spain operates an impressive 110 stores in 22 airports throughout the country. With this many locations in Spain alone, the company is accustomed to adapting quickly to local economies and changing purchasing and passenger trends. Given Aldeasa’s commitment to staying on top of new developments, the operator didn’t miss the chance to do something truly new and innovative at Alicante Airport’s new terminal. Four new Aldeasa stores will be opening in the terminal at the end of March: a 1,500square-meter walkthrough called “The Shop,” a 235-square-meter “Express Shop,” a 140-


latest technological systems in the areas of merchandising and customer communication.” The walkthrough will of course offer an extensive range of tax and duty free products, including fragrances, cosmetics, food and beverages. There will also be ample space for regional products such as ‘turrón’ (a nougat-based confection), as well as local drinks and crafts. Additionally, towards the end of Q2, a new terminal will be completed at Santiago de Compostela Airport and Aldeasa will open a 310-square-meter store there that features core duty free products and a special area dedicated to destination products.

“Aldeasa has found success in adapting its commercial offering to suit Spanish tastes, while keeping in mind the large number of tourists that shop at our stores.” Daniel Montero, Operations Director, Aldeasa Spain square-meter arrivals store and an 80-squaremeter shop specializing in sweets, candies and chocolates that will be called “The Sweet Shop.” Alicante is, of course, one of the main tourist destination airports in Europe, and given this fact Aldeasa’s goal is to provide shopping facilities that are second to none. “The new walkthrough store will have a completely innovative design unlike anything the company has done to date, and we are convinced it will be one of the most interesting design concepts in the industry,” says Daniel Montero, Operations Director for Aldeasa Spain. “The store will be equipped with the 52

“Aesthetically similar to the new stores at Alicante, the new store at Compostela will have a modern design and will be equipped to deliver first-class service to our customers,” says Montero. Finally, in April, a new airport terminal on the island of La Palma in the Canary Islands is due to open. Aldeasa will have a strong presence there with a 265-square-meter walkthrough store. The new terminal will have capacity to handle a respectable 3 million passengers per year. Of course, in addition to opening the above new stores, Aldeasa will continue to refurbish and update existing stores in Spain


throughout 2011. Terminal C in Palma de Mallorca Airport will be refurbished this year, giving Aldeasa the opportunity to update one of its existing stores there. When all is said and done, the retail space in Terminal C will measure 1,400-square-meters. “This terminal has a significant flow of German passengers and this redevelopment will create a new store with a fresh, modern design and a product mix tailored to the requirements and preferences of these passengers,” explains Montero. “A significant area will also be dedicated to local and destination products.”

Knowing your customer Indeed, Aldeasa has found that in addition to the perennial bestsellers in duty free, local and destination products are a niche category that tends to sell extremely well in many locations. Spanish travelers are the operator’s biggest customers by far. As such, the company ensures that the majority of products in its stores are geared to Spanish tastes. However, Aldeasa has found that English passengers, the majority of which are tourists, often look for local products to bring back home as souvenirs. In fact, while Montero notes that fragrances, tobacco and food are the top categories across its stores in the country, the category of destination products has established itself as the biggest potential growth area in Spanish airports. “Spanish customers’ needs and motivations are totally different from the needs and motivations of the tourist customer,” says Montero. “Aldeasa has found success in adapting its commercial offering to suit Spanish tastes, while at the same time keeping in mind the large number of tourists that shop at our stores.”

Operator News: Mannah Duty Free

Much of Mannah’s growth in sales over the last few months has been due to increased demand for high-end watches and other accessories

In the spotlight

Mannah Duty Free does its part to prove to the world that Latin America can succeed where so many other regions have lately fallen short RYAN WHITE BY

annah Duty Free’s sales have been steadily increasing over the last few months. What started with a considerable spike during the holiday season last year has continued to date due to a strong concentration on the accessories category, including a number of new listings and renovations at the company’s main border store in Paraguay. “As for most duty free operators, December is a very important time for us in terms of sales,” says Keila Conci, Marketing Manager at Mannah Duty Free. “Of course, we get a lot of Brazilians and Argentineans purchasing at our stores as always, but many Paraguayans are also traveling at this time of year, which significantly increases revenues.” Given the increase in shoppers during Christmas 2010, Mannah took the opportunity to launch new products such as luggage


year before. While P&C and spirits always sell well at Mannah’s stores, Conci notes that there was a huge demand on the part of consumers for accessories—specifically watches and sunglasses.

Capitalizing on new trends Given the trend toward accessories, Mannah has renovated the watches section of its main border store in Paraguay. The operator installed both a “watch island” and a shopin-shop dedicated to premium timepieces from Bentrani Watches, in addition to listing numerous new brands. “Before the new listings, our watch section of the store was already quite robust, with many of world’s most prestigious brands,” explains Conci. “Given consumer demand we’ve added to our already great selection with listings such as Mido, Frederique Constant, Maurice Lacroix, Salvatore Ferragamo and Davidoff.”

Keila Conci. Marketing Manager, Mannah Duty Free from Troika and a number of toy brands. The operator also ran a number of promotions and tastings of spirits such as Hapsburg Absinthe. Mannah ended the holiday season with a 40% increase in sales over the same period the 54

Pushing ahead Mannah plans on continuing renovations throughout this year. The next categories to get an upgrade will be clothing, footwear and electronics. The company already offers


a number of brands in these categories such as Calvin Klein, Lacoste, Brooksfield, Timberland, U.S. Polo, Oster and Braun, with plans to list more this year. “This is part of a continued effort to always adapt our stores adequately to the brands we add,” says Conci. “In addition to many new and exciting brands, we’ll be personalizing spaces and generally improving the infrastructure to ensure that the brands are presented in the best possible light. We’re always looking to offer our suppliers ample space for their products.” Given the significant investment in Latin America of late on the part of many countries, Mannah knows the spotlight is on this region of the world. Conci tells Americas Duty Free that one of the company’s major goals in 2011 is to ensure that it does its part to build confidence in Latin America by continuing to grow the business while at the same time keeping its high standards in terms of the integrity of the company as a whole. “In addition to our concentration on our clients, which is always foremost in our minds, we’re looking at streamlining everything from our internal systems to human resources and marketing,” notes Conci. The objective, put quite simply, is to improve in every way possible over 2010, she says. For Mannah, this means adding ever more big name brands to the product mix, increasing year-on-year sales, developing loyalty programs and most importantly making its stores a must-stop destination for travelers entering Paraguay. “The world is now looking toward Latin America as it once did Europe,” concludes Conci. “We have to be prepared for the positive changes that are going to take place.”

Operator News: Duty Free World

Swarovski’s Crystal Pen has performed impressively for DFW; the company is currently selling more than 6,000 units a month



Mayra del Valle, President of DFW (right) and Leylani Cardoso, COO of DFW (right)

Duty Free World reaps the rewards of increased sales and new partnerships by ensuring its product mix is truly unique uty Free World (DFW) recently launched a brand new duty free program onboard Hawaiian Airlines in December 2010. The move is significant for a number of reasons, not the least of which being that Hawaiian Airlines is the largest airline based in the State of Hawaii and the 11th largest commercial airline in the country. DFW’s assortment of products will focus on the Asian consumer vacationing in Hawaii. Brands of note that will be sold onboard include Estée Lauder, Givenchy, La Prairie, Shiseido, Bulova, Crislu, Johnnie Walker, Remy Martin and several others. The size of Hawaiian Airlines means that will DFW will reach a wide range of travelers. Destinations include Incheon, Korea; Sydney, Australia; Haneda, Japan; Manila, Philippines; Tahiti and soon Tokyo, Japan. “These are key destinations which have a huge revenue potential,” remarked Mayra del Valle, President of DFW. “We are very well aligned with the guiding principles of this airline as we focus on both exceptional service and quality.”


del Valle. “Estée Lauder was very supportive in providing us with not just the exclusivity but also the marketing tools to support the launch. They are a natural partner given that their products sell so well.”

New opportunities

In March, the company will begin new service for Tam from Miami on nonstop flights to Manaus, Brasilia and Belo Horizonte. The program will include the regular onboard duty free sales as well as a preorder only program for exclusive items and limited editions, which de Valle notes are hard to find and in great demand. “This will complement our existing service which has had tremendous success,” says del Valle. “DFW took over the program less than one year ago and started by opening stations in hub cities which previously did not exist, allowing them to capture the airlines’ greatest sales potential. This increase was very dramatic for the airline; Tam’s President Líbano Barroso recently remarked that Tam’s earnings had reached its highest levels in over four years and names offering duty free on all its routes a contributing factor.” “Our team has also been instrumental in making recent innovations a success,” remarks Staying ahead of the curve Leylani Cardoso, COO of DFW. “We have DFW is looking to innovate with exclusive given them the flexibility to invest in novel launches and novel offerings in 2011 as a products that have not been part of the trastrategy to continue promoting its onboard ditional onboard assortment and with that sales program. “The very nature of retail has we have reached new heights.” Cardoso notes that DFW has recently changed over the last few years in that prodseen huge potential in Swarovski’s Crystal Pen: ucts are readily available online and most any “It started as a hunch that the product would item you want can be Googled, only to show work on board, given that no other carrier up at your door step days later,” del Valle in the Americas had the item,” she explains. explains. “We feel that in order to really pull “Finally our team took a risk by investing a sales and stay ahead of the curve we have to huge amount of space onboard. Ultimately, continuously innovate and expand our reach.” In March, DFW will begin new service for Tam from Miami on it paid off, as we are selling more than 6,000 In January DFW launched a promotional nonstop flights to Manaus, Brasilia and Belo Horizonte; section in United’s duty free catalog that pictured is the cover of Tam’s onboard duty free magazine units a month.” Cardoso also said that DFW is currently working on a number of included various unique offers such as Estée Lauder’s latest fragrance Loud. DFW is also featuring skin care product Laser Focus exclusively high-priority projects for their fall edition of the in-flight catalog: “We onboard United Airlines for North America during the first quarter. make it a point to continue the search for novel items for onboard “While passengers do not choose a carrier for its assortment sales. Although I can’t provide details yet, I can tell you that our next onboard, we think it’s important that once onboard and ready to shop in-flight catalogue will contain a number of innovative products they can look to our catalogs for innovation and uniqueness,” explains that travelers are sure to love.” 56


Operator News: HK Global Duty Free While most of HK Global Duty Free’s customers are Mexicans, the operator has noticed an upswing in the number of US customers of late

HK Global Duty Free plans three new Southern border store openings even as it looks to both the Northern border and South America as possibilities for continued growth BY RYAN WHITE aredo-based HK Global Duty Free (HKG) currently operates 9 duty free stores along the border with Mexico. In the last few months, the company has renovated all but two of its stores to resemble its flagship store in El Portal, Laredo, Texas. In a recent interview with Americas Duty Free & Travel Retailing, Marco Arilli, Vice President of Merchandising at HKG, explained that in addition to aesthetically updating the remaining two stores in line with the recent branding initiative, the company plans on opening three new stores throughout this year. March 1 is the planned opening date of a new store in Laredo, Texas. “The location will measure 2,000-square-meters and feature popular duty free categories such as liquor, tobacco, wine, luxury goods, beauty, apparel, shoes and much more,” says Arilli. In winter of this year, HKG will be opening two more stores, one in San Ysidro, California measuring 4,200-square-meters and another in Eagle Pass, Texas measuring 1,580-square-meters. The combined cost of the recent renovations and the new store openings totals nearly US$9 million, but Arilli asserts that the investment is well worth it given the company’s performance in 2010: “Our total sales in 2010 were 168% over 2009,” he says. While the lingering effects of the economic downturn are still being felt by some, Arilli notes that there has been a marked improvement in the company’s business so far this year: “The Mexican Peso versus the US Dollar has stabilized, and the only effect on our business at the moment is that sales of some brands have dropped, while others have filled their positions.”



Currently selling well in HKG’s stores are of the border. The company now has adverbrands such as Montblanc, Tag Heuer, Nau- tisements in magazines and on television in tica and Lacoste. The company has also recently Mexico and in all local areas near its stores on introduced new brands into the mix, includ- the US side of the border. ing plans for a new shop-in-shop measuring We asked Arilli about HKG’s plans for the 150-square-meters. Although Arilli can’t yet rest of the year, and it’s clear that the comcomment on the brand associated with this pro- pany is focused on taking advantage of the ject, he did tell Americas Duty Free that HKG growth in sales it experienced in 2010. In will have exclusive rights along the border. addition to completing construction of the While HKG has more than recovered from aforementioned stores in Texas and Califorthe economic crisis, the much-publicized nia and thereby strengthening its presence on violence along the US-Mexico border has the US/Mexico border, HKG is currently lately presented its own set of challenges. exploring options for expanding its business Luckily, the fact that the company has stores beyond this area of the US. at multiple border crossings gives Arilli and “At the moment we’re looking extensively his team a leg up. He explains that HKG sees into expanding into the Northern border, an ebb and flow with regard to sales among the Caribbean, airports and other key borders its different border stores depending on which like Paraguay and Uruguay,” concluded Arilli. crossings are safer at a given time. “I feel our strong product mix and focus on Regardless of this, the operator is seeing a customers’ needs puts us in a good position healthy increase in the to continue growing number of US shoppers at throughout 2011.” its stores: “Currently more Mexicans than Americans are purchasing at our stores, but we see a steady growth in American customers,” Arilli explains. “Americans living along the border will purchase from us, cross into MexMarco Arilli, Vice President ico and turn around to of Merchandising, HK Global Duty Free return to the US. This is safe and virtually only takes a few minutes.” As a means of continuing to capture more customers, both Mexicans and Americans alike, HKG has undertaken an advertising initiative on both sides


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Select-A-Vision | 4 Blue Heron Drive | Collegeville, PA 19426 Toll Free 800-822-2881 | © 2011 Select-A-Vision, SAV and all related marks and logos are trademarks of Select-A-Vision and its subsidiaries. US Army trademarks and copyrights are used with permission of The US Army. Coppertone trademarks and copyrights are used with permission of Coppertone. Motor Trend trademarks and copyrights are used with permission of Motort Trend. All other names are the property of their respective owners. All rights reserved.

Operator News: London Supply



London Supply is currently renovating its downtown duty free store in Ushuaia, adding an elevator and bridges connecting floors

From Iguazú down to Ushuaia, London Supply promotes the value of shopping duty free and sees strong sales as a result ne of travel retail’s main selling points has always been a concentration on luxurious and exclusive products that are not available in domestic markets, and few operators have promoted the value of shopping duty free like London Supply. Americas Duty Free recently sat down with Francisco Heredia, Commercial Manager at London Supply, to see how the operator performed in 2010 and discuss the numerous projects in the pipeline for 2011. Americas Duty Free: Can you share your most recent sales statistics with us? Francisco Heredia: The company as a whole grew 55% in sales during 2010. Specifically, sales in Iguazú were up about 57%, while sales in Tierra del Fuego increased by 52%. ADF: What categories have been performing well for you? FH: Of course, P&C and spirits are very strong sellers in our region of the world, and this held true last year. However, one thing that transcends categories is the fact that customers are really looking for travel retail exclusives. Whenever possible we try to highlight these products to the shopper because many shop in our stores specifically for this reason.

because of the stairs. We’re also adding a number of bridges connecting the levels. The store has always had its own unique style, and I think these renovations will add to its personality. I expect the renovations to be complete before our winter holidays in July. ADF: Will you be making any changes to other stores this year? FH: At our downtown duty free store in Rio Grande, we’re also working on a renovation project that will see retail space at the store increase by more than 50%. In this store, we’ve been slightly limited in the number of categories that we can offer our customers. We’ve got a really excellent mix of products and categories at our downtown Ushuaia and Tierra del Fuego airport stores and we want to offer customers to the downtown duty free store in Rio Grande the same great shopping experience. ADF: What categories are currently available in this store and which categories will you be adding? FH: We currently have the traditional categories in Rio Grande, such as perfumes and cosmetics, liquor, confectionery and electronics. We’re quite limited, though, when it comes to fashion, toys and some other less traditional categories.

ADF: Your downtown store in Ushuaia is a great example of a retail space that exemplifies the uniqueness of the channel. Can you tell us what’s new there? FH: We’re currently doing some important renovations in Tierra del Fuego at the downtown duty free store in Ushuaia. The project consists of adding an elevator. This location has four different levels, and it’s a very fun store architecturally. However, this uniqueness also makes it a challenge to navigate 60


The Rio Grande store currently measures 300-square-meters and we’re looking to add about 150-square-meters. To give you an idea, our downtown duty free store in Ushuaia measures about 1,700-squaremeters, so adding more space in Rio Grande is certainly a priority for us as we feel it will greatly improve the shopping experience for our customers. ADF: What are you objectives for the rest of the year? FH: If the economy continues the way it is, we’re expecting the same amount of growth this year as we experienced last year. We’re also working on a very important project for Iguazú, but I can’t yet give any details. I can however, tell you that it is a very noteworthy development that we’ll be announcing very soon. Additionally, we’re always looking to give the public fresh, new items. The fact that so many suppliers see the value in duty free and therefore release exclusives is something very important and it’s up to us as an operator to continue communicating the value of shopping duty free to our clients. Finally, we take corporate social responsibility very seriously at London Supply, and this year our President Teddy Taratuty has authorized the construction of a secondary school adjacent to the primary school we built last year in Puerto Iguazú. When all is said and done, more than 1,000 students will study at the complex.

Francisco Heredia, Commercial Manager, London Supply


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Operator News: Grupo Vierci Average spend per customer at Mega Shopping during December was just over US$65, and sales continued to be strong into January 2011

Mega Shopping’s expansive duty free retail environment and all-star lineup BY RYAN WHITE of luxury products proves to be a hit with shoppers in northern Chile n business in Paraguay, Brazil, Uruguay, Bolivia, Chile and Peru for over 40 years as a distributor of exclusive liquor, beauty, confectionery and electronic brands and also as a domestic retailer, Grupo Vierci recently opened its largest duty free location, Mega Shopping, on December 10 in Zona Franca de Iquique (ZOFRI), Chile. The store is located in the ZOFRI shopping mall, wherein clientele can purchase goods exempt from Chile’s 19% value-added tax. General Manager of Grupo Vierci’s Chilean operations William Stewart notes that while opening the store in December was certainly a challenge, the payoff was worth it: “We decided to postpone the grand opening until March and rather focus in December on generating sales during the holiday season,” he says. “It proved to be a great strategy.” Average spend per customer during December was just over US$65. Furthermore, sales continued to be strong into January 2011, exceeding Stewart’s expectations for the generally slow retail month. He notes that sales were helped by an influx of Argentinean tourists visiting Iquique during the month. Categories that are emerging as strong performers after the first few months of business are fashion, accessories and P&C. Among Mega Shopping’s best selling brands so far are Mango Barcelona, Carolina Herrera and Chanel


A destination in itself Some 80% of visitors to ZOFRI are locals. The region itself is relatively wealthy, with one of the highest GDPs per capita in the country thanks to a strong mining industry and the burgeoning tourism industry. Of the remaining 20% of visitors, 10% is from other areas 62

of Chile while the other 10% hails from Bolivia, Peru and even Europe. Given that shoppers can spend up to US$1,218 per person, per month tax free, a good portion of ZOFRI’s clientele return month after month. There are over 400 duty free stores in ZOFRI, meaning that differentiating oneself from the competition is a must. Fortunately, Stewart notes that the Chilean Duty Free industry has never seen anything quite like Mega Shopping. The store has added to ZOFRI’s destination status as the largest single shopping location in the zone by far, measuring in at over 1,200-squaremeters. In fact, the second-largest store in the area is only 360-square-meters.

time and repeat customers alike get the most out of their visit to the store, says Stewart.

Looking ahead Stewart tells Americas Duty Free that Mega Shopping is in talks to list two new major brands before the end of the first half of 2011. While he can’t give details, he assures that the brands will continue to deliver on Mega Shopping’s promise to be the one stop shop for visitors to ZOFRI. “Grupo Vierci has been in business for four decades as a domestic retailer and distributor,” says Stewart. “Although we’ve been in the duty free industry for 13 years, this is our first project of such size and magnitude.

“We’ve got a solid track record that we’re now putting to good use in Iquique.” William Stewart, General Manager, Grupo Vierci Chile “Shoppers are truly impressed with the size of the store,” notes Stewart. “They often comment on the truly international look of Mega Shopping in terms of both the layout and the furniture. Of course, the next thing that captures their attention is the wide selection of brands that really can’t be found within a 2,000-km radius of ZOFRI.” Having a recurring clientele does present its share of challenges; Stewart and company have succeeded in keeping interest high with new promotions every week. Mega Shopping is also planning on launching a “very comprehensive” marketing campaign in the second quarter as a means of ensuring that first-


We’ve got a solid track record that we’re now putting to good use in Iquique. I can tell you we’re pleasantly surprised with the results on a daily basis.” Finally, Stewart hints that a company with the determination to open Chile’s largest duty free store won’t likely stop at just one location: “Alexandre Granotier, Mega Shopping’s International Division Director, has been working diligently on the Mega Shopping plan for the last two years,” he says. “Given the success of our first duty free store and the work put into establishing ourselves in travel retail, more store openings are likely to come sooner that you might imagine.”

Airport News: JFK International Airport

The new Coach store in Terminal 7



As JFK climbs out of economic recession, boom times are on the horizon for the airport’s retail operations ew York City is synonymous with size and speed, and both characteristics apply perfectly to the city’s sprawling John F. Kennedy International Airport. JFK handles 420,000 flights every year, inbound and outbound, domestic and international. The domestic portion accounts for about 55% of the volume, a high proportion that reflects the importance of the operations of domestic low-cost carrier Jet Blue, which operates out of the airport’s Terminal 5. “In 2009 11 million passengers departed JFK on international flights,” says Airport General Manager Jerry Spampanato. “Obviously those international departures are an important figure when you look at duty free operations at the airport, and it’s definitely a pretty significant customer base.” In 2009, JFK had US$370 million in sales for retail, excluding food and beverage, Spampanato says. Of the total of 14,399-squaremeters, 5,945-square-meters are accounted for by retail, 3,065 by news and gift, 4,366 by duty free and 1,021 by general services (banking, currency and spas). Terminals 1, 3, 4, 7 and 8 cater to the international flights (British Airways makes its home in Terminal 7), and accordingly offer a more upscale duty-free mix including jewelry and clothing items. Terminal 5, as noted, caters to a domestic audience and its retail mix reflects that. At this point, most duty free and retail is situated post-security, very much a require-



ment as security procedures become more stringent and time-consuming. Terminal 4 has probably the highest proportion of pre-security retail, but the facility just recently embarked on a major US$1.2 billion overhaul and expansion, after which the stores will be post-security. The terminal handled 9.5 million passengers in 2009. “We’re changing the whole landscape of the airport, and travel retail and duty free are a big part of that,” Spampanato says. The Terminal 4 renovations will include the addition of nine gates, with Delta Airlines moving in. The 60svintage Terminal 3 will be demolished in about three years, after Terminal 4 work is complete. In Terminal 7, British Airways and the Port Authority of New York and New Jersey, which runs JFK, invested some US$250 million in redeveloping the terminal over eight years. The project culminated with the 2008 launch of a range of new retail concessions, in addition to other improvements to enhance passenger flow and the overall efficiency and quality of the terminal. The new retail outlets included specialty retail, food and beverage facilities, news, gifts and duty free operations with both local and international accents.

Comeback “We took a little bit of a hit in the economic downturn,” Spampanato says. “This year I estimate we’ll probably be very close to 20072008 levels.” Sue Bush, Senior Manager of the Conces-


sions Program, points out that a unique arrangement helped retail and duty free operators weather the slump. “Because JFK is unique in that you get domestic and international passengers in one terminal,” she says, “we’ve allowed our duty free operators to sell duty paid too. This means domestic passengers can buy, but they pay the taxes. “We’ve found this has been a tremendous incentive to the duty free operator because especially during difficult economic times, where the international travel they depend on has gone down, they can do some domestic sales.” This unique arrangement has been in place for several years now, even though Bush says not everyone was happy about it at first. The duty paid sales don’t apply to liquor and tobacco products, but pretty much everything else is fair game. Whatever some of the operators may have thought when this arrangement was introduced, there’s no doubt the extra sales have really helped them weather the storm – especially because the minimum annual guarantees that the concessionaires pay remain fixed no matter what happens to international traffic flow. The extra domestic sales also probably helped operators rebound more quickly as international traffic has started to pick up. “The whole industry is in expansion mode right now,” Bush says. “I think that’s probably because of the tough times we’ve gone through recently.”

PAX Report

Asia will lead the way, but 2009-10 numbers still very mixed ecent market research compiled by the International Air Transport Association (IATA) predicts huge growth in air cargo and passenger volumes by 2014 over the figures posted for 2009. In what it referred to as an “industry consensus forecast,” IATA claims that there will be 3.3 billion air travelers by 2014, compared with 2.5 billion in 2009. For air cargo, 2014 will see a total handled weight of 38 million tons, 12.5 million tons over the 26 million figure posted in 2009. The US will continue to be the largest single country market for domestic passengers (671 million) and international passengers (215 million). However, not too surprisingly, the Asian market will provide the bulk of the new volume in passengers, with China in particular driving the greatest lift in numbers. Asia-Pacific routes will carry 360 million (45%) of the total 800 million new passengers. Of the 360 million new passengers, China alone will account for 181 million domestic passengers and 33 million international passengers. In presenting the results of IATA’s 2014 projections at the “Vision 2050” press conference in Singapore in February, Giovanni Bisignani, Director General and CEO of IATA, singled out Asia as the primary growth driver. “The consensus of the airlines surveyed is for 5.9% average annual growth,” he said. “That means 313 million more international travelers over the forecast period. Four of the top five fastest growing inter-




national markets are in Asia—China at 10.8%, the United Arab Emirates at 10.2%, Vietnam at 10.2%, Malaysia at 10.1% and Sri Lanka at 9.5%. We see a similar pattern in domestic markets, which will generate 488 million new passengers by 2014. China will lead with 13.9% growth, followed by Vietnam at 10.9%, South Africa at 10.6%, India at 10.5% and the Philippines at 10.2%.” Other regions aren’t showing the same kind of robust growth as Asia. As if to underscore the unevenness of the rebound in air traffic, Aeropuertos del Sureste (ASUR), a concessionaire that operates airports in several Mexican cities, announced that air traffic growth in its bailiwick was ”flat” when comparing January 2010 with January of this year. ASUR appended virtually no commentary to its observations, but it’s perhaps worth noting that international traffic was up slightly (1.2% on a total volume for January 2011 of 996,732 passengers), while domestic emplanements declined by 2.3% (on a total January 2011 volume of 515,660). The results cancelled each other out, meaning that January 2011 figures were a scant 221 passengers lower than January 2010 figures—a remarkably close result considering that overall figures were in the 1.5 million range. Airports Council International (ACI) likewise released comparative December-to-December results around the same time. The net result was that December 2010 passenger traffic was up 4% over the same month in 2009, but ACI, characterizing 2010 as a “banner year,”

! prominently highlighted the fact that 2010 traffic was up a respectable 6% over the previous year, and also noted that December was one of only two months in the year in which month-to-month growth compared with 2009 failed to hit double digits. Also issued around the same time, IATA’s overall 2010 summary records the opinion that the year showed “strong” demand, with passenger numbers rising 8.2% compared with 2009, and cargo numbers up 20.6%. Interestingly, passenger levels in December were 4% higher than the pre-recession levels recorded in the early part of 2008. “The world is moving again,” said Bisignani. “After the biggest demand decline in the history of aviation in 2009, people started to travel and do business again in 2010. Airlines ended the year slightly ahead of early 2008 volumes, but with a pathetic 2.7% profit margin. The challenge is to turn the demand for mobility into sustainable profits.” Bad December weather in Europe and North America hurt the overall industry recovery, IATA said, cutting about 1% off total traffic for that month. This depressed the rate of growth in passenger demand to 4.9% compared with December 2009, which IATA noted was “significantly lower than the 8.2% growth recorded in November.” Europe was especially hard hit, with its December growth rate slipping to a paltry 3.3%. 66


Caribbean Corner


Tairo rolls out special new launches in the Caribbean


Tairoxclusive International drives innovative launches Caribbean and Mexican Boss Orange Sunset. Boss Orange is sup- tige, is the vibrant, whimsical, Daisy Eau So


luxury fragrance distributor Tairo International, which will be celebrating 15 years of business this year, continues to offer innovative launches. First in its lineup is P&G Prestige Product’s Boss Orange for Men, launched in February/March. The new fragrance will reach stores less than a year after the initial launch of Boss Orange, which was further enriched by the addition of Boss in Motion White and

Political moves ollowing the buyout by an employee of its airport locations on St. Maarten, Caribbean Liquors & Tobacco now operates a single downtown store in Philipsburg, on the Dutch side of the island. The store measures 139-square-meters, with a 3.7square-meter cigar room. Located near downtown Philipsburg, it’s well situated to capture cruise passenger traffic as well as main street customers, hotel guests and resident buyers. The four product categories – wines and spirits, tobacco, beverages and beer – each account for roughly a quarter of sales, which are wholesale as well as retail. “We see a lot of new products being introduced on the market, but the traditional kinds – vodka, whiskies, cognacs – are always the staples,” says Managing Director Georges Greaux. Cognacs are particularly strong in the Caribbean, and Greaux singles out Hennessy’s Pure White, which is available exclusively in the Caribbean. Right now, Caribbean Liquors & Tobacco is busy digesting recent additions to its portfolio, such as the advent of Stolichnaya early in 2010. Further new products will be introduced in 2011, though one of the most intriguing –



ported by actors Sienna Miller and Orlando Bloom as the face of the fragrances. Boss Orange is the urban, light-hearted and cool face of Hugo Boss. Following the strength of P&G Prestige Product’s Lacoste Touch of Pink and Love of Pink, Tairo is offering the newest edition of Lacoste Joy of Pink which celebrates “teen friendship” and brings this to the Caribbean market. Another winning brand, from Coty Pres-

Fresh. It is the spirited new version of the original Daisy from Marc Jacobs that launches in April 2011 in the Caribbean. Also by Coty Prestige is Davidoff Champion, which is about the daily ritual of a man who day after day takes time to build his physical and mental power to become a champion. It is a clean, fresh and powerful fragrance that launched in November 2010. The success of the fragrance has made Davidoff a top brand in the Caribbean.

The new in-store bar

the highly exclusive Ice Impérial from Moët & Chandon – will be distributed only to one of the company’s restaurant accounts. One notable recent change has been the addition of an in-store bar for tastings. When we spoke with Greaux, the store was gearing up for a February wine tasting by the prestigious international gastronomic society La Confrérie de la Chaîne des Rôtisseurs. The economic slump had minimal impact, but only because the business had already been hurting for a number of reasons. “The residents on the French side come to the Dutch side and do their purchasing,” Greaux says, “using their buying power on exchange rates. But of course that also depresses the economy on the French side. It’s a vicious circle, and it’s been going on for quite a while.”


With the dissolution of the Netherlands Antilles in October 2010, the Dutch half of St. Maarten became one of the countries that constitute the Netherlands, while the French half became part of France. Greaux says that there will be a tax increase next year, which adds a note of caution to his optimism. “We’re keeping our fingers crossed for 2011. It’ll be a challenging year, and we’re expecting the same as 2010.”


Caribbean Corner

Caribbean ARI’s Runway duty free store

Waiting and consolidating aribbean ARI Inc., a joint venture between Aer Rianta International and Caribbean International Airways Ltd., operates four stores at Barbados Grantley Adams International Airport in Barbados. All told, the Runway Duty Free (177-square-meters), Runway Beauty (130-square-meters), Runway Fashion (51square-meters), and Runway Voyager (56square-meters)stores account for a total of just under 418-square-meters in departures. UK flights have always been our main passenger group, says General Manager Domnick O’Reilly, but changes are afoot. UK traffic is still way in the lead at 51%, but that’s diminishing. The length of the flight and also the new UK travel tax discourage travel, especially with budgets tight, and the distance has been economically bridged by a pair of high-tech videoconferencing facilities – great for saving on travel, but not so great for Caribbean ARI or any other operator in the region.


Traffic to the US accounts for 15% of Caribbean ARI’s total, with Canada, now at 11%, growing very quickly (quickly enough that if the pace continues it could be a larger market than the US in 2013). Interregional traffic comes in at around 20%, and Latin America – mostly Brazil – accounts for around 2%. In 2010, liquor brought in 24% of total trade, perfumes and cosmetics 46%, tobacco 8%, food and confectionery (mainly the latter) 10%, fashion and sunglasses 6%, and travel goods and luggage 6%. “Perfumes and cosmetics used to be almost 60% of our total business,” O’Reilly says. “But with the global economic downturn, the strengthening of the dollar against the pound, and discounting on cruises, there’s no longer the willingness or capacity to spend at the levels previously recorded throughout the region. So we find that products with lower price points, specifically liquor, have grown substantially while perfumes and cosmetics and

See us at IAADFS booth # 826

fashion items simply haven’t kept pace.” Local products are stepping up. People still want to buy gifts, and an increasingly favoured niche is the kind of product that reflects the locale while still being affordable. “They’ll tend to go for the Mount Gay Extra Old or Cockspur rum, so they can gift at lower financial impact but still get something unique,” O’Reilly says. “Also, within the food market we’ve seen a significant increase in sales of locally baked rum cakes, which now accounts for almost 30% of total food and confectionery sales.” For 2011 the Barbados Ministry of Tourism predicts a three percent growth in tourism. That’s encouraging, but O’Reilly adds that 2010 traffic was more or less on par with 2009, showing an increase of 0.3% for departing passengers. 2009 had seen a drop of 12.9% in departing passengers when compared to 2008. “Three percent sounds good but it would still leave us way, way behind, passenger figures for the period 2004 - 2008.”

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Caribbean Corner

Eric Breiding, Customer Director Cruise Channel, Diageo GTME

Diageo, Holland America and Carnival make waves with Captain Morgan on the Rocks, an unprecedented project that underscores Diageo’s firm commitment to cruise BY RYAN WHITE iageo Global Travel & Middle East (GTME) and sister cruise lines Holland America Line and Carnival Cruise Lines recently opened a bar unlike anything in the cruise industry on Half Moon Cay, a 2,400-acre private island owned by Holland America. The bar is called Captain Morgan on the Rocks, and in true Diageo fashion it is set to revolutionize the cruise industry. The bar is a 101-footlong twin decked, three-masted schooner that is “washed up” on the private island’s sand-swept beach. With a total capacity of 326, the bar’s design is full of engaging nautical and historic references, including rum casks for seats, cannon barrels for bar stools and palm leaf-styled ceiling fans. The mid-deck features another stunning bar that is surrounded by cannons that release mists of water to keep guests cool in the Bahamian sun. The crafted wooden walls, decks, surfaces and fittings also include a series of branding concepts telling the story of the famous captain. Captain Morgan on the Rocks offers outdoor seating on two awning-covered, themed decks. The open upper deck offers sweeping vistas of the turquoise waters ringed by the mile-long, white sand beach and the lush tropical vegetation, as well as the undeveloped, unspoiled migratory bird sanctuary present on the island.


Bringing the trinity spirit to the cruise industry The radically innovative collaboration has created an extraordinary new bar experience for cruise line guests. The bar’s offerings are focused on Captain Morgan Original Spiced Rum and the Captain Morgan range, including Captain Morgan Silver Spiced, Captain Morgan Parrot Bay and Captain Morgan Private Stock. It also carries a wide selection of pre-

mium drinks from across the Diageo portfolio. Eric Breiding, Customer Director Cruise Channel at Diageo GTME, explains the ambition behind the branded bar concept: “Captain Morgan on the Rocks expresses our intent for the cruise industry, which is two-fold—building amazing relationships with the world’s leading cruise companies and creating fantastic consumer experiences to provide on-trade entertainment that gives guests of Holland America Line and Carnival a truly original, engaging and memorable experience.”

Room to grow While the bulk of Diageo GTME’s business in the Americas comes from airport travel retail (34%), cruise represents an impressive 28% of total sales in the region. Indeed, cruise is a US$27 billion dollar industry and passengers numbered 18 million in 2010, with 32 million passengers and revenues of US$50 billion expected by 2022. Breiding believes there is limitless potential for Diageo to continue growing in the sector. He notes that while it’s too early to discuss future collaborations, he sees potential in a number of Diageo’s core brands, as well as upand-comer Zacapa Rum, which has already proven itself to be a standout. Breiding explains that the size of Holland America and Carnival Cruise Lines really necessitated making “a big splash” with a truly unprecedented project, and while future collaborations may not be quite as big, he says that there are certainly mainstays that will be a part of any future Diageo activations. “We put great times and great experiences for the consumer at the heart of any Diageo undertaking,” concludes Breiding. “We also realized early on that the trinity model translates well to the cruise industry. The key is really finding like-minded partners who want to create something truly unique for passengers.”

In close collaboration with sister cruise lines Holland America Line and Carnival Cruise Lines, Diageo has created an extraordinary new bar called Captain Morgan on the Rocks



Association Q&A

On the up and up Americas Duty Free learns from three of travel retail’s most important associations that from Tokyo to Tierra del Fuego, indications for 2011 are very positive BY RYAN WHITE

Working on behalf of the industry Americas Duty Free: The economic downturn is likely still fresh in the minds of many in the duty free industry. Can you tell me what the mindset of members is this year? Michael Payne, Executive Director, IAADFS: I think most people are feeling very optimistic about the business. Travel is up globally and the consumers are starting to spend at higher dollar levels. When I travel, the shops seem very busy and overall there is a good "buzz.”

to all attendees so that should be an outstanding opening event. The gala will be on Tuesday night instead of Wednesday and we're going to experiment with the use of food vouchers primarily for the breakfast meal in order to give people more flexibility. Additionally, more restaurants will be open for lunch. We plan to utilize more of the auxiliary space in the convention area to accommodate the increasing demands from

what the numbers are like on-site for final registration figures. Historically, we do in fact have a large number who wait to register on-site. We feel good about the numbers and importantly the quality and the ratio of buyers and suppliers remains very healthy at about two suppliers to every one buyer. We are delighted to welcome back companies like Diageo, Lacoste, BPI, JTI, L'Occitane and many others

“On behalf of the Board I’d like to express just how much we appreciate the support of all the attendees, suppliers, buyers, press and others for their support of the Duty Free Show of the Americas.”

ADF: Can you provide us with a breakdown of booths by category? MP: ■ Spirits: 41 booths ■ Jewelry/Accessories/Luggage: 38 booths ■ Fragrances/Cosmetics: 36 booths ■ Confectionery/Gourmet Foods: 17 booths ■ Tobacco: 9 booths ■ Gift/Writing: 7 booths

Michael Payne, Executive Director, IAADFS

Having said that there are still challenges in areas such as infrastructure funding for airport construction/expansion where some countries are struggling a bit to find the resources to keep up with expanding travel demands. Also, in some areas security concerns remain a source of frustration by creating delays and reducing dwell time for customers. ADF: Are you planning anything differently for this year’s show? MP: We’re planning a few tweaks. We've opened the Sunday night cocktail reception

exhibitors and have made the overall look of the exhibit hall area more open. I'll be interested to see how the attendees feel about those changes, some of which are in response to the evaluations we received from last year's meeting. ADF: Can you give us an update on attendance? MP: We're running ahead of last year's numbers by about 10%, but we'll really need to wait and see what the registration is like between now [mid-February] and the meeting and

ADF: Is there anything else that you’d like to add? MP: On behalf of the Board I’d like to express just how much we appreciate the support of all the attendees, suppliers, buyers, press and others for their support of the Duty Free Show of the Americas. As everyone knows, this show provides the revenues we use for our advocacy efforts on behalf of the industry. Security issues surrounding liquids and gels, raising duty free allowances, reducing burdensome requirements from customs regulations, fighting restrictions on the sale of products in our stores and generally speaking up on behalf of the industry are direct results of attendees supporting this event.

“The powerhouse of trade” Americas Duty Free: Can you tell us what you have planned for the TFWA Asia Pacific and Gate ONE2ONE trade show and conference? Alain Maingreaud, Managing Director, TFWA: TFWA Asia Pacific & GATE ONE2ONE will follow the same overall format as the 2010 edition with a full-on con74

ference on Monday, May 16 and a number of exciting workshops. The trade exhibition will be running from Tuesday to Thursday. The ONE2ONE meetings service has been very popular in the last couple of years as it is a great way to ensure that key stakeholders get together. We will be featuring it again this year.


The Welcoming Cocktail will be in Raffles Hotel, while the Singapore Swing will provide an elegant finale in the Tanjong Beach Club on Sentosa Island. We have decided to repeat 2009’s informal pool party in place of last year’s bowling, but this time it will be staged in the Mandarin Oriental Hotel on Tuesday evening.

Francisco Heredia, President, ASUTIL

“Closer to heaven” Given TFWA WE’s move from October to September, many readers will already know that this year’s ASUTIL conference is scheduled for June 22 to 25 in Cancun, Mexico. The event will take place at the 5star J.W. Marriott, and attendees will receive a special hotel rate of US$125 that includes free internet and breakfast. Americas Duty Free recently spoke with Francisco Heredia, President of ASUTIL, about what we can expect from ASUTIL 2011. “This year’s conference is themed ‘Latin America: Not heaven, nor hell,’” he said. “Variables change constantly in the region, so the theme is really in reference to the fact that we prefer to concentrate on the fact that everything evens out in the end. At the moment, thankfully, the region is much closer to heaven than hell. “We’re planning a very notable surprise for attendees to this year’s conference that is most definitely out of the ordinary, although I can’t yet provide details,” he continued. “I can, however, tell you that the structure will remain the same as last year, with a day and a half of networking and two mornings dedicated to the conference. Last year was a record for us in terms of attendees, and we’re hoping to break another record this year. We’ll be announcing more details at this year’s IAADFS exhibition, so stay tuned!”

ADF: Do you have any speakers confirmed? AM: Christian Blanckaert, former VP of Hermes International and now President of Petit Bateaum, will share his wisdom on luxury retailing in Asia during the keynote speech. Our President Erik Juul-Mortensen will summarize the state of the industry with particular emphasis on the Asia Pacific region. Rohit Talwar, CEO of Fast Future, will attempt to chart the consumer landscape of Asia Pacific. The umbrella theme is “Asia Pacific Inside Out” and our focus workshops will analyze three major markets in Asia—India, Japan and China. There will also be an Industry Association workshop and a focus group on partnership, all featuring speakers within our industry and outside. ADF: How many exhibitors have been confirmed? AM: As of mid-February, the number of confirmed exhibitors already exceeds by 14% the total of 176 we welcomed last year, with exhibition space up by 13%. This is overwhelming proof that the industry in Asia Pacific is very buoyant. We have a terrific line-up of major companies from all categories, such as Bally, Boggi Milano, Diageo, Giorgio Fedon, L’Occitane, Orlane, Pandora, Piquadro, Polariod Eyewear, SPI Spirits, Talika, Tommy Hilfiger and Vranken Pommery. Korean Airlines also makes its debut this year to present its inno-

vative onboard duty free concept for its new fleet of A380 aircraft. ADF: What is your opinion of the duty free business in Asia now that 2011 is in full swing? AM: It has been evident for some time that Asia is going to be the powerhouse of trade in the next decade, and although the major economies of the world are now recovering from recession and growth is returning, Asia is still way out in front. That applies across all categories of trade including travel, luxury goods and travel retail.

include Ferrero and Perfetti van Melle among others. The Golf Tournament on Sunday is organized in partnership with Interparfums this year and several of the drinks companies are supplying product for the TFWA Asia Pacific Bar. ADF: Is there anything else that you’d like to add? AM: TFWA Asia Pacific & GATE ONE2ONE is a summit for the trade in this exciting and dynamic region—attendees can meet, discuss, negotiate, explore, challenge and of course socialize. The event will provide the

“It has been evident for some time that Asia is going to be the powerhouse of trade in the next decade.” Alain Maingreaud, Managing Director, TFWA

ADF: Which sponsors have already signed on? AM: The Diamond sponsor of the 2011 Conference is Qatar Duty Free, the Platinum sponsor is Ajmal and the other sponsors

intellectual stimulus to shake us out of our jet lag and get us focusing on where our duty free and travel retail microcosm sits in relation to the macro-economic picture. THE AMERICAS DUTY FREE & TRAVEL RETAILING


Association Q&A

En dirección ascendente Tres de las asociaciones minoristas de viajes más importantes le afirman a Americas Duty Free que, desde Tokio a la Tierra del Fuego, los pronósticos para el 2011 son muy positivos

Trabajar en representación de la industria Americas Duty Free: ¿La crisis económica no se ha borrado aun de la mente de muchos componentes de la industria duty free. ¿Puede decirme cuál qué piensan los miembros con respecto a este año? Michael Payne, Director Ejecutivo, IAADFS: Pienso que la mayoría es optimista acerca del negocio. Los viajes se han incrementado globalmente, y los consumidores están comenzando a gastar a niveles más altos. Cuando viajo, veo mucho tráfico en las tiendas, y en general hay una buena “vibración”. Dicho esto, es preciso añadir que existen desafíos en áreas como el financiamiento de infraestructura para la construcción/expansión de aeropuertos en la que algunos países

MP: Estamos planificando algunas modificaciones. Hemos abierto el coctel de recepción del domingo en la noche a todos los asistentes, por lo que podría ser un notable evento de apertura. La gala será en la noche del martes y no en la del miércoles, y vamos a experimentar con el uso de cupones sobre todo para el desayuno, a fin de darles más flexibilidad a los asistentes. Además, habrá más restaurantes abiertos para el almuerzo. Nos proponemos utilizar una mayor parte del espacio auxiliar en el área de convenciones para satisfacer las crecientes demandas de los expositores, y hemos tratado de que la apariencia general del salón de exposiciones sea más abierta. Me interesa ver

“Quiero expresar cuánto apreciamos el apoyo de los asistentes, proveedores, compradores, prensa y otras personas a la Exposición Duty Free de las Américas.” Michael Payne, Director Ejecutivo, IAADFS

están confrontando ciertas dificultades para mantenerse al ritmo de las crecientes demandas de viajes. Además, en algunas áreas la seguridad sigue siendo fuente de frustración, creando retrasos y reduciendo el tiempo de compras de los consumidores. ADF: ¿Está proyectando algo diferente para la exposición de este año? ¿Puede explicar qué es?

cómo los asistentes acogen estos cambios, algunos de los cuales se hacen en respuesta a las evaluaciones del evento del año pasado que hemos recibido. ADF: ¿Puede actualizarnos la cifra de asistentes? MP: Estamos superando las cifras del año pasado en un 10%, pero es necesario esperar y ver cómo se comporta la inscripción desde

ahora [mediados de febrero] y el comienzo de la reunión, y qué cifras se reportarán con respecto a la cantidad final de inscripciones directamente en la exposición. Históricamente, muchísimos asistentes esperan para inscribirse en la exposición. Estamos confiados con las cifras y nos satisface que la calidad y la proporción entre compradores y proveedores esté al nivel saludable de dos por cada comprador. Nos complace volver a darles la bienvenida a compañías como Diageo, Lacoste, BPI, JTI y L'Occitane entre otros. ADF: ¿Puede ofrecernos un desglose de quioscos por categoría? MP: ■ Espirituosos: 41 quioscos ■ Joyas/Accesorios/Equipaje: 38 quioscos ■ Fragancias/Cosméticos: 36 quioscos ■ Confitería/Comidas Gourmet: 17 quioscos ■ Tabaco: 9 quioscos ■ Regalos/Efectos de escritura: 7 quioscos ADF: ¿Hay algo que quiera añadir? MP: En representación de la Junta Directiva, quiero expresar cuánto apreciamos el apoyo de los asistentes, proveedores, compradores, prensa y otras personas a la Exposición Duty Free de las Américas. Como todos saben, esta exposición proporciona los ingresos que utilizamos para nuestros esfuerzos de promoción y defensa de la industria. Los problemas de seguridad con respecto a los líquidos y geles, el incremento de los descuentos duty free , la reducción de los requisitos onerosos de las regulaciones aduaneras, la lucha contra las restricciones de la venta de productos en nuestras tiendas y la representación en la industria son resultados directos de los asistentes que apoyan este evento.

“La potencia del comercio” Americas Duty Free: ¿Puede decirnos qué planes tiene para la exposición comercial y conferencia TFWA Asia Pacific and Gate ONE2ONE? Alain Maingreaud, Director Gerente, TFWA: TFWA Asia Pacific & GATE ONE2ONE seguirán el mismo formato general de la edición del 2010 con una conferencia completa 76

el lunes 16 de mayo, y varios atractivos talleres. La exposición comercial se llevará a cabo de martes a jueves. El servicio de reuniones ONE2ONE ha ganado gran popularidad en los últimos dos años, pues es una forma idónea de garantizar el contacto entre los participantes del sector. Este año volveremos a presentarlo.


El Coctel de Bienvenida se realizará en el Raffles Hotel, mientras que Singapore Swing proporcionará una elegante clausura en Tanjong Beach Club de Sentosa Island. Hemos decidido repetir la fiesta informal en la piscina del 2009 en vez del partido de bolos del año pasado, pero esta vez será en el Mandarin Oriental Hotel en la noche del martes.

“Más cerca del cielo” Debido al traslado de fechas de TFWA WE de octubre a septiembre, muchos lectores ya sabrán que la Conferencia de ASUTIL correspondiente a este año se llevará a cabo del 22 al 25 de junio en Cancún, México. Recientemente, Americas Duty Free habló con Francisco Heredia, Presidente de ASUTIL, acerca de lo que podemos esperar de ASUTIL 2011. “La conferencia de este año lleva la temática ‘Latinoamérica: Ni cielo, ni infierno’. Las variables cambian constantemente en la región, por lo que el tema se refiere realmente al hecho de que preferimos concentrarnos en que todo alcanza su nivel al final. Por fortuna, en este momento, la región está más cerca del cielo que del infierno”, dijo Heredia. “Tenemos en proyecto una sorpresa muy notable para los asistentes a la conferencia de este año que está definitivamente fuera de lo ordinario, aunque no puedo ofrecer más detalles. Sin embargo, puedo decirle que la estructura seguirá siendo la misma del año pasado, con un día y medio de contactos profesionales, y dos mañanas dedicadas a la conferencia. El año pasado fue un record para nosotros en cuestión de asistentes, y esperamos romper otro record este año. Estaremos anunciando más detalles en la exposición de la IAADFS, así que ¡manténganse en sintonía!”, concluyó el funcionario de mayor rango de ASUTIL.

ADF: ¿Tiene conferencistas confirmados? AM: Christian Blanckaert, ex vicepresidente de Hermes International y actual presidente de Petit Bateaum, compartirá su sabiduría en comercio minorista de lujo en Asia durante el discurso principal. Nuestro presidente, Erik Juul-Mortensen resumirá el estado de la industria con énfasis particular en la región del Asia del Pacífico. Rohit Talwar, director ejecutivo de Fast Future, intentará bosquejar el contexto del consumidor en Asia del Pacífico. El tema principal será “Asia Pacific Inside Out” (Asia del Pacífico desde dentro) y nues-tros talleres de enfoque analizarán tres importantes mercados en Asia: India, Japón y China. También habrá un taller de Asociaciones de la Industria y un grupo de enfoque con ponentes de nuestra industria y otros sectores. ADF: ¿Cuántos expositores han confirmado su asistencia? AM: Hasta mediados de febrero, la cifra de expositores conformados ya supera el 14% del total de 176 que acogimos el año pasado, mientras que el espacio de exposición supera la cifra anterior en un 13%. Una prueba convincente de que la industria en Asia del Pacífico goza de muy buena salud. Contamos con un magnífico conjunto de compañías importantes como Bally, Boggi Milano, Diageo, Giorgio Fedon, L’Occitane, Orlane, Pandora, Piquadro, Polariod Eyewear, SPI Spirits, Talika, Tommy Hilfiger y

Vranken Pommery. Korean Airlines también debuta este año para presentar su innovador concepto duty free a bordo para su nueva flota de aviones A380. ADF: ¿Qué opina del negocio duty free en Asia ahora que el 2011 está en pleno auge? AM: Desde hace algún tiempo se ha hecho evidente que Asia va a ser la potencia del comercio en la próxima década, y aunque las economías principales del mundo se están recuperando de la recesión y vuelve a incre-

nador de Platino es Ajmal y entre los demás patrocinadores están Ferrero y Perfetti van Melle entre otros. El Partido de Golf del domingo está organizado en colaboración con Interparfums este año, y varias de las compañías fabricantes de bebidas estarán suministrando producto para el Bar Asia del Pacífico de la TFWA. ADF: ¿Desea añadir algo más? AM: TFWA Asia Pacific & GATE ONE2ONE es una cumbre para el comercio en esta región

“Desde hace algún tiempo se ha hecho evidente que Asia va a ser la potencia del comercio en la próxima década”. Alain Maingreaud, Director Gerente, TFWA

mentarse el crecimiento, Asia sigue estando a la vanguardia. Esto es aplicable a todas las categorías de comercio como viajes, artículos de lujo y sector minorista de viajes. ADF: ¿Qué patrocinadores han confirmado su asistencia? AM: El Patrocinador de Diamante de la Conferencia 2011 es Qatar Duty Free; el Patroci-

atractiva y dinámica, en la que los asistentes se pueden reunir, intercambiar opiniones, negociar, explorar, cuestionar e incluso mantener relaciones sociales. El evento proporcionará el estímulo intelectual para sacarnos del letargo de la diferencia de horarios, y concentrarnos en nuestro microcosmos de duty free y sector minorista de viajes en relación con el entorno macroeconómico. THE AMERICAS DUTY FREE & TRAVEL RETAILING


Operator News: L’Oréal Group - Parbel

Javier Labarta CEO of Parbel *Photo courtesy of Zoltan Prepszent

Americas Duty Free



Americas Duty Free: Any new developments in the Americas duty free market? Javier Labarta, CEO, Parbel: The duty free environment is an extremely dynamic business environment. It is an evolving terrain, with players trying to find ways to enchant new end consumers. Today we are able to streamline two successful elements in this environment. The first is our ability to recognize what users really need so that we can be there for them. The second is our focus on sell out and improving service to the traveler – our effort to provide an inviting “luxury” atmosphere even in the busiest airports in the Americas. With this new trend, we are seeing medium-sized airports opening global stores that invite the exceptional shop-

ping experience. As far as the most important airports are concerned, our leading brand, Lancôme, is building new spaces to continue fulfilling women’s beauty and luxury needs. ADF: How is business in Americas duty free? Can you provide me with sales figures and examples of success? JL: 2010 was the year of recovery with growth around +15%. This growth is coming from Latin America thanks to Brazil and its influence in this zone. The growth is coming not only from Brazilian airports, but also from airports that have a high number of Brazilian passengers. Adding to this growth are airports on the US West Coast, such as LA and San Francisco, which today cater to Asian travelers on the continent. This year we expect significant growth – although not as steep as last year, we still expect meaningful growth. L’Oréal Group has generated recent growth in the luxury industry thanks to our strong fragrance and skincare performance, especially within the Lancôme brand with Lancôme’s

The new Perfume Lounge concept is designed to help travelers select the best fragrance, either for themselves or as a gift. The Perfume Lounge uses a multilingual Perfume Advisor software where it would ask the customer a series of questions about their personality and match it with one of the four fragrances

Trésor in Love and Génifique. Yves Saint Laurent revitalized itself in the last two years with an exceptionally warm reception to the Parisienne launch. Giorgio Armani, the wonderful Italian designer brand, strengthened growth through its new Acqua Di Gioia fragrance, and Ralph Lauren with its dynamic and fresh Big Pony Collection. I want to highlight the launch of the four fragrances in the Ralph Lauren Big Pony collection – a collection that represents the young style of life and has been considered the best launch of the year according to the consumers everywhere. ADF: What are your main launches for this year? JL: As you know, research is the pillar of the L’Oréal Group. With more than three thousand researchers worldwide, L’Oréal is able to offer, through its brands, the most innovative and ingenious scientific findings. This year, Lancôme will present consumers with an amazing skincare novelty. After 10 years of research, Lancôme has discovered the molecule that provides new benefits of anti-wrinkle and skin texture correction. This will allow us to continue conquering this category. In makeup, a strategic category for us, we will maintain our leadership in mascaras by launching Hypnôse Baby Doll. In YSL, we have Belle D’Opium, a new Yves Saint Laurent fragrance that is modern, bewitching and addictive. In Ralph Lauren, due to the enormous success of Big Pony, we will enhance and develop these new fragrances, offering our consumers new perfume opportunities with Big Pony Body Sprays. ADF: What are your goals for this year? JL: Our three main goals this year are, first, to keep gaining market share, which represents not only the strength of the brands, but also confirms that we are meeting our consumers’ needs. Our second objective is to further develop skincare and makeup categories that we have identified as strategic for the

future of duty free. Our third goal is to continue developing our teams and preparing for future human resource challenges. For us, our people are the key asset of our company. ADF: Do you have any special in-store promotions/activities planned? JL: In-store activities are driven by our goal of increasing traveler penetration to our brands. This means all our marketing teams are challenged with one main point: How can we “transform” passengers into consumers? How can we keep the passengers interested in our brands? Along this line, we will continue to push

di Gio pour Homme, the leader in male fragrances. In Ralph Lauren we have the extremely demanded Polo Blue, as well as all the recognized Polo franchises in Ralph Lauren. Regarding Viktor & Rolf, I would mention the notably requested fragrance Flowerbomb, and for the young brand Diesel, Only the Brave. Finally, for the successful Yves Saint Laurent brand, Parisienne is the fragrance to mention. In cosmetics, Lancôme is the leader in the market across all categories, with obvious winners such as Génifique, our best seller in skincare. In Lancôme mascaras, it is worth mentioning best sellers such as Définicils in North America, Virtuôse in the US West Coast, and Hypnôse in our Latin American markets. For Biotherm, Aquasource Non Stop continues to be one of the most amazing and demanded moisturizing creams. ADF: How is business in duty free? JL: The year has started prosperously. There is a steady growth in passenger flow, strongly depicted in sales. As I like to say, “travelers are back.” We need to fulfill their expectations and we are ready to do so! We are confident in this coming year and look forward to impressive results.

“L’Oréal will continue to grow in 2011 thanks to our long-lasting relationship with strategic clients. We have been in the duty free business for more than 30 years, and our clients have made our brands’ positioning in this market possible.” Javier Labarta CEO of Parbel our activities in fragrances through our new Perfume Lounge concept which is designed to help travelers select the best fragrance, either for themselves or as a gift. The Perfume Lounge uses a multilingual Perfume Advisor software where it would ask the customer a series of questions about their personality and match it with one of the four fragrances. We will also continue “retail-tainment” activities, especially for Big Pony of Ralph Lauren and Giorgio Armani. ADF: What are some of your current best sellers across your brands? JL: It is difficult to describe only one per brand as we have strong leaders across all our brands and across numerous cosmetics segments. But let’s start with fragrances, which is the largest category in the America’s duty free business. I would like to begin by highlighting Acqua

ADF: Who is buying your various brands? What are they searching for? JL: We have the utmost respect for our consumers, which is why we dedicate time to understanding and answering their needs. Today, they are looking for the best products that offer outstanding performance and a high standard in the level of service. Today, end consumers have access to a multitude of brands and many possibilities for buying in this competitive market. We certainly want to remind these buyers of the success and leadership of our brands at all times. ADF: How are you planning on increasing market share? JL: Organic growth is our priority. L’Oréal Luxury Division, a leader in duty free in the Americas, has the strongest portfolio of brands. We are 100% confident in the potential of our growth in our main brands, which have THE AMERICAS DUTY FREE & TRAVEL RETAILING


Operator News: L’Oréal Group - Parbel Belle D’Opium the “next generation” version of Yves Saint Laurent’s iconic Opium fragrance is an oriental scent

“The L’Oréal Group has generated recent growth in the luxury industry thanks to our strong fragrance and skincare performance, especially within the Lancôme Brand with Lancôme’s Trésor in Love and Génifique,” says Labarta

*Photo courtesy of Zoltan Prepszent

already proven to be in line with what consumers expect and demand. For Lancôme, we will grow mainly with our skincare and makeup segments. Growth will also come through the fragrances of Giorgio Armani and Ralph Lauren. Our YSL franchise is a key brand for us to develop as it has proven to be, among our consumers, a desired brand that represents a provocative, luxury approach. Kiehl’s is one of the fastest growing brands in the duty free world thanks to its alternative approach to skincare, with a complete range for both men and women. The men’s category is a new territory, and we are growing fast with our Kiehl’s and Biotherm franchises. ADF: Do you have any special travel retail exclusives lined up for the Americas region in 2011? JL: Part of our strategy is to develop special products through travel retail channels. With our fragrance division, we offer duos of catalogue products, as well as value sets with varying ancillary products such as body lotion and/or after-shave gel. With Lancôme and its global success of Génifique, we have developed transversal sets. Biotherm has been experiencing important growth within the travel retail market, thanks to the different sets we offer in our three segments (skin care, body and men). ADF: Within the Americas, which region/countries are you focusing on for 2011? JL: Each zone has its potential and each point

For Ralph Lauren, due to the enormous success of Big Pony, L’Oréal Group has enhanced the fragrances, be offering Big Pony Body Sprays



of sale is important for L’Oréal. This is why we are present in every airport across the Americas, so that the consumer can discover our brands. We want to mention that one region where we see wonderful opportunities for significant growth is Brazil. Then there are the San Francisco and LA airports, where we certainly see increasing market share. We also expect impressive results in New York, where we have European passengers traveling, and the Miami International airport, which continuously exposes our brands to the Latin American consumer. ADF: How much are L’Oréal consumers spending on average when purchasing your products in duty free outlets? JL: The answer needs to be approached by brand, simply because our luxury names complement each other and target different consumers with different needs. When analyzing the leader Lancôme, we anticipate an average product per basket to be between two and three products. In our fragrance métier, we benefit from long-lasting leaders in the Giorgio Armani and Ralph Lauren range, granting an average product basket close to two products (translated to an average spending of US$100). ADF: How do you view L’Oréal travel retail development in the Americas? JL: L’Oréal will continue to grow in 2011 thanks to our long-lasting relationship with strategic clients. We have been in the duty free business for more than 30 years, and our clients have made our brands’ positioning in this market possible. This partnership with key retailers – one that successfully merges their operation knowledge and our product expertise – allows us to be certain on our future in the duty free channel. Secondly, our global approach with our brands and our continued research and innovation are successful elements that allow us to anticipate and fulfill new challenges. Last but not least, the strong team in our Miami office is ready to maintain and expand our leadership positioning.

Company News: Coty Prestige Marc Jacobs Daisy Eau So Fresh is one of Coty’s main launches this year

Coty Prestige harnesses growth in the Americas oty was founded in 1904 by fragrance pioneer François Coty. Since then, thanks in large part to strategic acquisitions and licensing partnerships, the company has grown to the point that it is now active in no fewer than 90 countries, with offices in 30. Sales totalled around US$4 billion last year, derived from a portfolio of over 35 designer, celebrity and lifestyle brands. The portfolio is distributed in prestige and “ultra-prestige” stores. Marketing Director of Travel Retail & Export Worldwide Markus Stauss explains that the company’s goal this year is to strengthen its strategic brands such as Calvin Klein, Davidoff, Marc Jacobs and Chloé, with strong promotional concepts and enhanced in-store visibility in key airports; the goal, he says, is to move these brands into the top 20 in the market. In addition, Balenciaga distribution will be expanded, and the strong market positions of Marc Jacobs and Chloé in South America will be firmed up.

In the Americas in particular, Coty Prestige is doing especially well, growing at double the rate of market growth – in other words, steadily expanding its market. Calvin Klein represents over half of the company’s trade, but the bench strength is also impressive: Davidoff accounts for some 15% of total business, while upscale designers like Balenciaga, Chloé and Marc Jacobs bring in, collectively, around 20%. Significant launches will take place this year in the Americas, Stauss says. “The main launches will be Marc Jacobs Eau So Fresh, a Cool Water Man re-launch and two very big new Calvin Klein launches: CK Masterbrand project and a new Euphoria project,” he said. “On top of that Coty Prestige made recent acquisitions of an additional ultra prestige brand as well as a new designer brand”. The company is also planning some “very visible and attractive promotions” on its ultra prestige brands, mainly Marc Jacobs with Daisy Eau So Fresh, Stauss says. “Daisy and Lola especially lend themselves to doing very cre-

“Our goal is to grow faster than the market and even to double the trend on ultra prestige brands.” Markus Stauss, Marketing Director of Travel Retail & Export Worldwide, Coty Prestige “We continue to do great business with Euphoria, ck one, Marc Jacobs Lola and Daisy, as well as with Chloé,” Stauss says. “Marc Jacobs is the fastest growing brand in our portfolio, in the top 15 in the doors it is distributed. The recent fall launches [Calvin Klein Beauty, Marc Jacobs Bang, Love, Chloé and Davidoff Champion] are also showing great results and Balenciaga is performing very well in the UK as well as in Australia and Singapore.” New exclusives in travel retail include the Chloé mini coffret which has just hit the shops and is “flying off the shelves,” and will be joined by a Marc Jacobs mini coffret.


ative, quirky animations, including a bunch of additional activities to strengthen the promotions. Also we will continue with a strong house promotion program for Calvin Klein and continue to have promotional activities for all our main launches.” Primary duty free growth targets in the Americas for 2011 are Brazil and Mexico, which are currently the region’s main sales drivers,




along with US airport locations in JFK International Airport and Miami. Stauss doesn’t have an exact figure for the average sale in duty free, but estimates it at between US$60 and US$80 for a 100ml product. Stauss says that as far as customer segmentation goes, the ultra prestige brands are targeted to a high brand awareness customer, whereas the celebrity brands target a younger customer. Also, different brands have different regional strengths. In the US and UK, he says, Marc Jacobs, Calvin Klein, Chloé and Balenciaga are top sellers. In Asia, Chloé (number one in Japan), Marc Jacobs and Calvin Klein are the standouts, and in Latin America, Joop, ck one, Jennifer Lopez and Euphoria are the big names. “Our goal is to grow faster than the market and even to double the trend on ultra prestige brands,” Stauss says. He expects recent investments in new licences to pay off in increased market share. Coty Prestige recently acquired the skin care brand Philosophy, besides the new ultra prestige and designer brands, and Stauss says plans are to continue to grow regional and celebrity brands.

Company News: Clarins Fragrance Group Swarovski’s Aura EDP fragrance

Swarovski melds its precision crystal expertise into a debut fragrance that emphasizes luminosity and radiance BY


orld-leading precision cut crystal maker Swarovski’s first foray into fragrance is set for release into the travel retail channel in April of this year, with a rollout in the Americas in the fall. That’s when Essence Corp. will bring Swarovski’s Aura EDP fragrance and makeup jewels to the Caribbean and Canadian duty free markets. In 2012 the Americas picture will be completed with launches into the US, Central American and Latin American duty free markets. Aura will of course be prominently displayed at the upcoming IAADFS Duty Free Show of the Americas. In 2008 Clarins Fragrance Group (CFG) developed the new fragrance in a partnership with Swarovski. The creative work was done by Thierry Mugler Parfums, part of CFG. “CFG agreed to develop the Swarovski perfume license for multiple reasons: its brand expertise, its unique know-how, its reputation of excellence, and its worldwide renown,” says Lourdes Montalvan, Essence Corp’s Marketing Director for Clarins Group. Among the reasons that Swarovski chose Clarins Group was their demonstrated exper-


tise in perfume creation and distribution. CFG’s portfolio includes leading global brands such as Azzaro, Porsche Design, David Yurman – and of course Thierry Mugler – as well as the world leading perfumes Angel, Alien, Azzaro for Men, and Chrome. Firmenich perfumers Olivier Cresp and Jean-Pierre Bethouart developed the fragrance, which includes notes of lychee, rose, tuberose, pink pepper, amber, benzoin and white musk. The latter three compose the “prism of energy” that Aura is based on. The Aura fragrance is based on three olfactory vibrations, according to Swarovski: A fruity ray with notes of juicy lychee – “connecting to the prism of energy, the ray transforms into intense and rosy vibrations of sensual femininity.” A floral ray with notes of pure white tuberose – “connecting to the prism of energy, the ray transforms into voluptuous vibrations of majestic femininity.” A spicy ray with notes of subtly vibrant pink pepper – “connecting to the prism of

“Clarins Fragrance Group agreed to develop the Swarovski perfume license for multiple reasons: its brand expertise, its unique know-how, its reputation of excellence, and its worldwide renown.”

Lourdes Montalvan, Marketing Director for Clarins Group, Essence Corp. Essence Corp. will bring Swarovski’s Aura EDP fragrance and makeup jewels to the Caribbean and Canadian duty free markets



energy, the ray transforms into warm and woody vibrations of mysterious femininity.” “The idea of a fragrance dates back to 2003, when we began thinking about adding even more femininity and emotion to the brand’s overall identity,” says Markus Langes-Swarovski, Member of the Swarovski Crystal Board of Directors. “The fragrance began to take form in 2007 and Clarins Fragrance Group has been the ideal partner, thanks to its creativity, long-term vision and drive for quality.” The fragrance will be available as an EDP in 30, 50 and 75ml refillable sizes. An Eau de Toilette version will be targeted at the Asian market. The bottle is a glass flacon with an external metal sheath, and is surmounted by a facetted asymmetrical Swarovski crystal. In addition to the fragrance, the Aura line will also include perfumed body cream, deodorant spray, body lotion and a shower gel. The makeup jewels are a pair of Crystal Gloss lip gloss products (pale pink and transparent) and a Crystal Touch shimmering face and décolletage balm. The new fragrance is an incandescent, fruity, floral creation, with a nucleus of burning, sensual energy – a luminous fragrance that surrounds every woman’s beauty in a dazzling, unique aura. The complementary Swarovski makeup products express the core essence of Swarovski’s core skill at illuminating beauty through crystal. Crystal is transformed into makeup. The textures contain powdered, micronized Swarovski crystal and Crystal Shine® iridescent pearls that fuse with the skin to create stunning shine. Essence Corp. plans several large-scale promotions in Canada and the Caribbean for the end of the year, and at press time was still in the process of negotiating premium store positioning. “Essence Corp. plans on capitalizing on the synergy of the brand name associated with the world-renowned jewels and crystals, and transferring it into this new beauty line for all women who appreciate the luxury, magic, and mystery of Swarovski,” Montalvan says. “We wanted to push beyond fashion and glamour,” says Langes-Swarovski. “Aura by Swarovski is a truly timeless concept. The idea of creating a fragrance and makeup jewels at the same time is totally innovative and very much in keeping with the brand.”

Company News: Estée Lauder

Americas Duty Free joins MAC at its Pop-Up Store in Soho to feel the power of its new Wonder Woman collection HIBAH NOOR BY

AC has unveiled an exciting new limited edition collection inspired by the legendary heroine Wonder Woman. The highly anticipated collection was recently presented to journalists invited to a special launch at the brand’s popular location in Soho, New York. “The iconic super heroine reminds us that within every woman there’s the mighty Aphrodite full of courage, confidence and great charisma,” said James Gager, Senior Vice President, Group Creative Director for MAC, La Mer and Jo Malone Worldwide. With its legendary new line up, MAC takes us on an exotic trip to Wonder Woman’s home of Paradise Island. Included in the collection is super-sized Mineralize Skinfinish, bold Eye Shadow quads, Pigment, Opulash, Lipsticks and oversized Lipglass, jumbo-big Powder Blush and Penultimate Eye Liner, Nail Lacquer and Lash inspired by the larger-than-life bold babe. Channelling the iconic heroine’s beautiful Paradise Island, MAC’s PopUp shop was transformed with bright red furniture, Wonder Woman lookalike models for makeup demonstrations, Wonder Woman comic books and other bold, eccentric decor. Giving journalists a peek into the behind-the-scenes development of the new line were representatives of MAC’s Senior Creative Team, including Gager, Jennifer Balbier, Senior Vice President, Global Product Development, Artistry Brands, The Estée Lauder Companies; and Toni Lakis, Vice President of Creative at MAC Cosmetics. The super-size makeup, combined with red, blue, yellow and gold outer packaging, symbolizes the strength of the Amazon princess. As Gager explained, “The collection shows you the power and force of a woman. That’s one of the reasons that we feel this collection is even more relevant today. We have this amazing powerful woman Michelle Obama who is changing style... the women of Estée Lauder, women who run iconic companies.” “In this collection we were lucky enough to release our own comic,” continued Gager. “We worked with an outside illustrator and a writer and wrote a little story on Wonder Woman. The whole story line is that Wonder Woman arrives in her little jet and sees all these gray looking ladies and she’s really disturbed by this. She learns that Medusa has begun to capture all these ladies and is turning them into “plain Janes.” Wonder Woman arrives with her full collection of MAC Wonder Woman and uses her powers to make the world and women beautiful again.” The collection works with every skin tone and can go from ‘uber’ intense to really sheer. Accessories such as makeup bags come in red and bulletproof blue. The range was being sold exclusively at the New York City Spring Street Pop-Up store from January 27 through February 10, when it debuted at all MAC locations in North America. On March 1, the collection was launched internationally, including travel retail.




From left: Toni Lakis, Vice President of Creative at MAC Cosmetics, James Gager, Senior Vice President, Group Creative Director for MAC, La Mer and Jo Malone Worldwide and Jennifer Balbier, Senior Vice President, Global Product Development, Artistry Brands, The Estée Lauder Companies

MAC’s Pop-Up store in Soho, New York

A glimpse of MAC’s limited edition Wonder Woman collection

Beauty Beat: Fragrances


With summer around the corner, suppliers introduce a profusion of lovely scents to welcome the warm season


Guess Seductive Company: Coty Beauty Description: A glamorous floriental woody fragrance for the seductive woman who is iconic, memorable and legendary

Moschino toujours Glamour Company: Essence Corp. Description: The contemporary floriental Moschino toujours Glamour is enclosed in its signature gold heart-shaped flacon, but this time with a touch of blue. The scent revives the signature scent with a refreshing twist of red currant and green violet leaves. It has a gorgeous heart of lily of the valley with jasmine and bitter almond, concluding with a base of heliotrope and benzoin

Oilily Flowers Company: Colorful Licenses Description: The fragrance is aimed at fun-loving girls. It is a timeless scent of Sicilian tangerines and Spanish lemons. The middle notes are of jasmine, cyclamen and lily of the valley as well as tropical melon, peach, plum, apple and fruity raspberry nuances balanced out with sandalwood, oak moss and vetiver

Vanitas Versace Company: Essence Corp. Description: This rich perfume is comprised of tiare flower, lime and freesia enveloped with accents of cedar wood and tonka bean. The classic packaging is entirely gold with contrasting shiny and opaque surface and an embossed black logo at the center

Tous L’eau Company: Perfumes & Diseño Description: This trio consists of the floral musky L’eau de Parfum, the citrus woody L’eau de Toilette and L’eau pour le Corps, which is a perfumed body mist with aromas of relaxing citric oils containing aloe vera

Beyonce Heat Rush Company: Coty Beauty Description: Fresh, sparkling and fruity, the fragrance captures Beyoncé’s shining personality and passion for life

Flight by Michael Jordan Company: Five Star Fragrance Description: Jordan’s newest fragrance is the next generation of inspiration that lets your dreams and aspirations take flight. The olfactory notes start with top notes of fresh bergamot and orange flower. Middle notes present aromatic lavender, emerald sage and geranium. The fragrance finishes with base notes of cedarwood, vetiver and sea moss

Reb’l Fleur by Rihanna Company: Parlux Fragrances Description: Award-winning rockstar Rihanna is ready to launch her new fragrance in 2011. The fruity scent was created by international renowned perfumers Caroline Sabas and Marypierre Julien of Givaudan, who have perfectly matched Rihanna’s vibrant personality

Amber Pour Homme Intense by Prada Company: Sodepac Description: A captivating new scent for men re-awakens the core elegance of the original Prada Amber Pour Homme. Sensual patchouli and rich, warm vanilla are the stars of this distinctive cocktail. Spicy myrrh and a citrus twist of bergamot complete the fragrance

Angel Sunessence Silver Ocean Edition by Thierry Mugler Company: Essence Corp. Description: The scent features a delicious patchouli and vanilla accord which evokes the very essence of Angel. Angel Sunessence Silver Ocean Edition launches in spring 2011 in travel retail in the Americas and the Caribbean

L’eau D’Issey Florale by Issey Miyake Company: Beauté Prestige International Description: The floral fragrance opens up with a breath of rose with a mix of yellow ginger lily and orange blossom accents. Heart notes consist of mandarin orange, which blends into white woods. L’Eau d’Issey’s conical bottle, in a completely transparent version, shows off the pale-pink juice

A*Men Pure Havane by Thierry Mugler Company: Essence Corp. Description: A perfume with spiced oriental tobacco is made according to the art of experiencing prestige cigars, in three "layers." The first layer opens with an aromatic note of fresh tobacco leaves. The second layer brings the fragrance to the heart note, which develops around a honeyed tobacco chord, with syrupy and vanilla tones. The last layer – the base note – develops around the woody and sensual notes of patchouli and bitter cacao THE AMERICAS DUTY FREE & TRAVEL RETAILING


Beauty Beat: Fragrances Kim Kardashian Gold

212 Pop

Company: Five Star Fragrance Description: An alluring limited edition for the summer opens with sparkling top notes of Italian bergamot and grapefruit dashed with a hint of spicy pink peppercorn. A floral heart of lush jasmine, delicate rose and dewy violet eases into a rich background of patchouli and sandalwood touched with golden resins of amber and creamy benzoin. Musk envelops the fragrance with a brush of warmth

Company: Sodepac Description: Carolina Herrera presents 212 Pop, its limited edition for 2011. For her: delicate and fresh notes of bergamot that contrast with a musky trail. For him: emblematic, suggestive notes of 212 Men, embraced with mojito mint and fresh ice

Disney Fairies Company Air-Val International Description: The new Fairies perfume features Tinker Bell and her friends in the beautiful world of Pixie Hollow. Fairies EDT 50ml is wrapped in an original metallic box shaped like a spring flower, with petals that open and close to reveal the hidden treasure of the delicately crafted perfume bottle held within

Unbreakable by Khloé and Lamar Company: Five Star Fragrance Description: A unisex fragrance, Unbreakable is the first and only celebrity scent designed for a man or a woman. Born out of Khloé and Lamar’s shared intimacy, Unbreakable is an expression of the couple’s belief that there is nothing more personal than a scent

Perry Ellis Love Company: Falic Fashion Group Description: A captivating new fragrance with a romantic appeal centered around the color pink to convey femininity and love. A fresh scent that can be worn every day

Disney Cars Company: Air-Val International Description: A winning fragrance that captures the spirit of racing, humor and friendship. Fuelled with plenty of fresh notes, Car’s Lighting McQueen and his friends’ fragrances are ready to race to succeed with this cologne



Azzaro Pour Homme L’eau by Azzaro

Sun & Love by Parfums Love Love

Company: Essence Corp. Description: The fragrance is a new olfactory interpretation of Azzaro pour Homme, a scent that combines energy, freshness and virile seduction. L’eau features a new visual with Enrique Iglesias and launches Father’s Day 2011 in travel retail in the Americas and the Caribbean

Company: Cofinluxe Description: A fragrance designed for girls who love the carefree charm of beachside pleasures. The fruity fragrance is encased in a yellow bottle shaped featuring a fuchsia-colored hibiscus flower

Original Penguin Company: Falic Fashion Group Description: This new men’s fragrance reflects the brand’s vintage, classic appeal with modernized, trendsetting quality. The color of the bottle goes from dark to light amber with Original Penguin logo hot stamped in gold foil on the front of the glass

Jennifer Aniston Company: Falic Fashion Group Description: Inspired by the starlet’s personal collection of scents, Aniston’s debut fragrance is a floral and feminine scent encased in a Frank Gehry building-inspired bottle with the organic fluidity of a cresting wave

Beauty Beat: Skincare & Cosmetics

Studio Secrets Professional Smoothing Resurfacing Primer Company: L’Oréal Paris, Parbel Description: This exclusive travel duo contains a silky lightweight formula which smoothes on easily to disguise fine lines, wrinkles and pores, making skin smooth and soft with a velvety touch

Magnascopic Eye Set

Just when you think you’ve seen it all, a profusion of newer, better skincare and cosmetic products roll into the market Volume Million Lashes

Company: Estée Lauder Description: A quad of eye essentials to dramatize eyes with supercharged volume. This special value collection includes the Magnascopic Maximum Volume Mascara, Lash Primer Plus, Advanced Night Repair Eye (10-day supply) and Gentle Eye Makeup Remover (30ml deluxe travel size)

Company: L’Oréal Paris, Parbel Description: L’Oréal Paris Extra Volume Collagene has expanded its mascara range to include extra lash-by-lash volume for lashes that look instantly multiplied and three times thicker. Volume Million Lashes extra black and waterproof are now available in travel retail

UV Plus HP Day Screen High Protection SPF40 by Clarins Company: Essence Corp. Description: An expert solution to provide all women with the most efficient and complete daily protection against UV rays, pollution and free radicals. It’s formulated for urban beauty and comes with a high performance 100% mineral screen formula. The sunscreen launches in spring 2011 in travel retail in the Americas and the Caribbean THE AMERICAS DUTY FREE & TRAVEL RETAILING


Beauty Beat: Skincare & Cosmetics

Sun Care Milk-Lotion Spray SPF50+ and Sun Wrinkle Control Cream for Face SPF50+ by Clarins Company: Essence Corp. Description: Achieving a golden tan while preserving the long-term health and beauty of skin has always been the Clarins sun care philosophy. Clarins goes further with two new, high protection (SPF 50+) products for face and body, formulated to protect the most delicate skin in intense sunlight. Launches spring 2011 in travel retail the Americas and the Caribbean

Extra-Firming Body Cream and Lotion by Clarins

Rouge Pur Couture Company: Yves Saint Laurent, Parbel Description: A new-generation lipstick inspired by Monsieur Saint Laurent’s iconic color palette – red, fuchsia and orange – in a collection of captivating couture shades that offer each complexion a customized look. Lips are saturated with intense, stay-true color, thanks to the Coloreveal Technology, while natural extracts provide comforting moisture that lasts all day

Company : Essence Corp. Description: A complete skin care action to ensure youthfullooking body contours thanks to firming and replenishing benefits. Skin is soft, firm, hydrated and visibly younger-looking, with a choice of two different textures to satisfy all women whatever their preference, skin type or season. Launches in spring 2011 in travel retail in the Americas and the Caribbean

Facial Fuel Age Combat Company: Kiehl’s, Parbel Description: Facial Fuel Age Combat is a revitalizing oil-free moisture gel in an easilyabsorbed, lightweight formula made from a blend of active, naturally-derived ingredients that help to visibly firm skin under the neck and diminish the appearance of fine lines, while improving skin’s tonicity for a firmer, brighter and smoother appearance

New Absolu Voyage Rose palette

Belvada Mascara Noir Company: Belvada Cosmetics Description: Unlike conventional mascaras, with the new Belvada package the reserve product is never exposed to the elements, only the brush and the product on the brush are exposed. The bottle remains closed and the reservoir material is kept fresh. The mascara is also pushed on to the brush via a plunger, this ensures that virtually all the mascara is used

Company: Lancôme, Parbel Description: The black lacquered collectible box decorated with a rose carries a concealer, powder compact, blusher, six eye shadows, a black khôl eyeliner and the Virtuôse mascara. For the lips the set contains three lipsticks and a mini lip pencil. To complete the compact there’s an extra-large mirror and four professional-sized accessories (a lip brush, an eye shadow brush, a powder brush and a powder puff)

Source Defense Serum Company: Bvlgari Description: This cell-energy booster is designed to neutralize the effects of aging at its source by preserving mitochondria, the sole source of cell energy. Combined with a powerful anti-oxidant, this high-performance anti-aging weapon preserves skin’s youthfulness capital



Phyto Star Eyes Palette Company: Sisley Paris Description: The new “gun metal” version offers four luminous and dazzling shades that can be used alone or combined for a natural or more sophisticated look. The colors include white pearl, black star, silver moon and blue lagoon

Skincare Report: Anti-aging


H2O Plus uses a marinebased ingredient that it utilizes in the Aquafirm+ line, called laminaria digitata – brown algae

This year La Prairie plans to launch a new Radiance emulsion for the Radiance collection, which is targeted at mature skin


Time is a tireless foe, but it won’t keep these companies from thriving in the severely HIBAH NOOR competitive market for anti-aging products

nti-aging: it’s the Holy Grail of the cosmetics industry. As people age, appearance becomes more and more vulnerable... and ever more valuable. That simple dynamic opens up ample space for cosmetics specialists, who base their market approaches on research, marketing and careful product positioning. “What really counts to the consumer is and remains anti-aging,” says Maike Kiessling, Managing Director of Distributor Markets and Travel Retail for La Prairie International. “We are an anti-aging brand. It is most important to us that our customers are seeing visible results, that is why La Prairie can count on a very high brand loyalty.” Besides La Prairie’s signature Caviar collection, its portfolio also includes, the new Platinum collection, which reflects its pioneering role in the use of platinum’s anti-aging properties. This year La Prairie will launch the Cellular Radiance Emulsion with a SPF 30 as part of its existing Radiance collection, which is targeted at a more mature skin, and the Cellular Eye Cream Platinum Rare has just been launched to complete the Platinum collection. Maria Carolina Villanueva, Trade Marketing Coordinator for L’Occitane Americas Export and Travel Retail, says that today’s customers want more natural products. “Active ingredients have become extremely important when selecting an anti-aging product, especially now that people have all the available information online,” she says. “They want more simplified skin-care routines that will not only reduce the number of products, but also the spending.” L’Occitane’s main anti-aging product line is Immortelle, with three “sub-ranges”: Precious and Very Precious (firmness); Brightening (radiance and even complexion); and the global day and night routine brand Divine, which features two premium ingredients – organic Immortelle essential oil and organic myrtle essential oil, both from Corsica. This year, L’Occitane plans to launch two complementary products in its Brightening range: a Brightening Moisturizing Mask that boosts microcirculation and builds radiance, and a Brightening Instant Exfoliator, a gel cream that transforms into a lotion on contact with water and evens out skin tones while improving smoothness and luminosity.


Doing the homework Constant research is essential in developing new anti-aging products, driven by the constant need to improve and also by the equally urgent need to stay ahead of the competition. L’Occitane conducted in vitro testing of the combined Immortelle essential oil and organic myrtle essential oil in its Divine premium-ingredient line. One result was that three patents were obtained, one for each of the essential oils, and a third for minerals and trace elements. The Divine Cream has become one of the company’s best sellers and is doing very well in the duty free channel. “We’re constantly researching new ingredients,” says Elizabeth Maul, H2O Plus Director of Global Marketing. “An example is a marine-based ingredient that we utilize in our Aquafirm+ line, called laminaria digitata – brown algae. It’s also referred to as the ‘FounL’Occitane’s main anti-aging tain of Youth,’ and it’s clinically proven to increase collagen producproduct line is Immortelle tion by aging fibroblasts.” For Shiseido, primary entrants in the anti-aging market are divided into four main lines, arranged by expertise. One of the two key anti-aging skincare lines is Bio-Performance, which Shiseido’s Marketing, Communications and Merchandising Manager Daniela Trujillo says focuses on mono-products that deliver anti-aging benefits via 24-hour creams. The other primary anti-aging skincare line is Benefiance Wrinkle Resist 24,


La Prairie’s portfolio includes the famous Platinum collection, which reflects its pioneering role in the use of platinum’s anti-aging properties

which encompasses a complete daily ritual through cleansing foam, softening lotion and day and night moisturizers. Shiseido’s other two key antiaging skincare lines are Future Solution LX and White Lucent. Future Solution LX is for the more demanding customer. After launching four core items plus a dedicated eye and lip regeneration cream last year, Shiseido will bring an additional strong novelty item into the mix this year. White Lucent, based on Shiseido’s core competency as a Japanese skincare specialist, will be strengthened this year with a research-based reinterpretation of the topselling serum and eye cream. Men are increasingly on the hunt for good anti-aging remedies, says Trujillo. “We’ve been one of the pioneers in this market. Our top selling items are anti-aging ones: Moisturizing Lotion, Total Revitalizer and, more recently introduced, our Skin Empowering Cream. But men have a specific approach to skincare: it has to be efficient, comfortable, and simple. So we always develop our Shiseido Men’s line according to this philosophy. It has a shorter two-step routine: cleanse and shave, then moisturize.” Elizabeth Maul reinforces this perception. “Men want an uncomplicated approach to skincare as their interest in maintaining healthy skin continues to grow. Hence our decision to launch the Oasis Men collection, which will debut in select markets in spring 2011.”

Duty free Kiessling says that for La Prairie, the Americas account for 16% of global travel retail business. Sales growth in the region was a remarkable 20% in 2010, but the standout markets were Asia, which makes up 36% of total sales and grew 31%, and the Middle East, which grew by 25%. “What is interesting in the Americas is the variety of distribution channels,” Kiessling says when asked about the attractions of the Americas market. She also says the airport channels are crucial as they act as the "windows to the world". Also cruise ships are offering an excellent opportunity for recruiting new customers. Kiessling describes buying habits in North America as very different. “Depending on whether you are in New York, on the West Coast, or in Canada, customer's buying habits and concerns are never the same. They have a more pragmatic approach towards skincare, compared to our Asian customers for example.” H2O Plus has been a player in the Americas duty free market for two years now, thanks to its relationship with GMP Services. With 23 stores throughout the Americas, the company’s footprint is growing fast, says Maul. “The duty free and travel retail venues are vital to connecting with our brand-loyal international customers, reaching a new audience and growing our business,” she says. H2O Plus offers three key anti-aging product lines. In addition to the classic Sea Results collection, which focuses on preventing and repairing skin Bio-Performance is one of Shiseido’s key anti-aging skincare lines

H2O’s classic Sea Results collection focuses on preventing and repairing skin damage

damage, the company offers the Aquafirm+ advanced marine firming system, which employs marine microspheres and deep sea nutrients to visibly firm and lift on contact. The Sea Pure collection, a natural marine anti-aging regimen, uncovers healthy skin and naturally stimulates the skin’s own cellular regeneration properties to combat signs of aging. To preserve and build on market momentum in the duty free segment, H2O Plus plans to support the growth of Sea Results, while launching Aquafirm+ into this channel. Later this year, the company will follow up with the launch of the Sea Pure natural anti-aging collection. Maul notes several key trends. The anti-aging category is hitting its prime as baby boomers reach retirement and younger consumers witness the positive effects of preventive skincare. The cosmetics shopper is more educated and product savvy, increasingly interested in learning about product contents and benefits. A close corollary of the desire for more information is the ability consumers now enjoy to freely share product experiences online. Of course companies in turn use the same outlets to build direct, interactive relationships with customers. Shiseido’s Trujillo describes the company’s engagement in the Americas duty free market as “elaborate.” She says that the skincare shopper has become more demanding, better informed and increasingly sophisticated in recent years. “This translates into an increased need for more complete, powerful skincare items with visible, short and long term effects. Also a stronger demand for premium skincare items, whose sales are over-represented in the travel retail market versus the local market.” Further, the shopping environment has changed, and gift-withpurchase offers have multiplied, regardless of the already reduced price savings in travel retail. Trujillo believes that shops have become more inviting, with the goal of developing a true shopping experience where criteria other than price impact the buying decision. Many customers now take time to shop, she says. They expect deeper skin analysis and more expert skincare advice, and may even come back regularly, building loyalty with beauty consultants, similar to what happens in downtown stores. Shiseido trains its beauty consultants in every location on a regular basis, in conformity with the Japanese concept of “omotenashi,” which means devotion to customer needs and the ability to listen and provide honest, expert advice. Similarly, L’Occitane positions beauty advisors in primary points of sale, where they receive training for every new launch, along with documentation. They also receive personalized training sessions at least once a year. “We have a strong group of beauty advisors at store level who serve as our brand ambassadors,” says Elizabeth Maul of H20 Plus. “Each associate goes through an in-depth education program that highlights the key benefits, features, ingredients and proper usage of each product. Our training program is designed to equip each advisor with the tools to analyze the consumer’s specific skincare issues and assist with developing a customized routine.”

The apothecary specialist opens up in Ezeiza Airport in Argentina

Skincare News

New York-based skin and hair care specialist Kiehl’s unveils its first shop-in-shop in the Ezeiza International Airport of Buenos Aires, Argentina. The opening of the shop-in-shop marks the company’s first step into South American airports. Kiehl’s unique design and decorations show off the blend of cosmetic, herbal and pharmaceutical knowledge that the company has developed and passed on through generations. It also reflects the love and appreciation the company has had for its customers ever since it was first founded in 1851. The 15-square-meter store keeps Kiehl’s signature fun apothecary aesthetic as well as its long held traditions, including Kiehl’s commitment to environmental responsibility. The interior is specifically designed to incorporate natural, sustainable materials and energy efficient light fixtures. Kiehl’s is committed to educating its customers through attentive service. The company’s store sets apart a specific space to cater to every customer need with a dedicated skin care consultation area. The

simple, no-frills packaging allows Kiehl’s to pump its money into the product and not the packaging. Finally, it offers generous sampling: the “try before you buy” philosophy works wonders.

Special features The new shop-in-shop features a product testing hub consisting of a laboratory table, a testing station where customers can experiment with the entire Kiehl’s product range and obtain a complimentary skin care consultation by an expert Kiehl’s customer representative. The sustainable wood flooring – Wormy red oak – has been laid from wood obtained from fallen trees. A modern bronze and crystal chandelier is an updated take on the crystal chandeliers that have adorned the Kiehl’s flagship store in New York City for years. Vintage photographs and mementos take customers on an exciting journey through Kiehl’s rich family history, while a replicated exposed brick wall evokes the old-world, quality character of Kiehl’s in its original East Village neighborhood.

Vital Light revitalizes all skin types Vital Light, Clarins’ ultimate anti-aging skin care, is now available in a lighter texture version. Clarins completes the Vital Light range with three new skin care products: Vital Light Day, Vital Light Day SPF 15 and Vital Light Night. The new lightweight versions of Vital Light Day and Night for All Skin Types complete the existing range of comfort creams to satisfy the needs of all women. A new version of Vital Light Day Cream with SPF 15 UVA-UVB protection is also available. Designed to restore deep skin luminosity that fades with time, Vital Light creams are soft, smooth and feel wonderful on the skin. Their soft melting textures are quickly absorbed and instantly leave skin smooth and luminous.

Vital Light Day SPF 15



Vital Light skin care preserves the skin’s deep luminosity thanks to the exceptional revitalizing power of three pioneer plants: Cochlearia officinalis, Waltheria and Spergularia. The product has four patents pending, and has been proven effective with an anti-aging, deep luminosity action that ensures reorganization of the dermis, control of overproduction of melanin, stimulation of the microcirculation and advanced anti-pollution protection. The skin’s deep luminosity is restored for a more youthful-looking appearance. In December 2010 a committee of scientific experts awarded Vital Light the Prix Beauté Santé Magazine. Since its launch in 2010, its textures and exceptional anti-aging action have won over the company’s many clients.

Vital Light Day

Vital Light Night

Importing and Transportation Management Specialists PROVIDING COMPLETE AND INNOVATIVE SOLUTIONS

We have over 30 years experience in the Canadian duty free market and a commitment to excellence. BILSI staff are experts in Canada Customs regulations, transportation management and 3rd party logistics. Our mission is to provide our clients with the highest level of customer service covering their shipments to and within Canada and the USA.

F O R M O R E I N F O R M AT I O N C O N TAC T U S AT 9 0 5 . 6 0 6 . 2 2 2 2 | I N F O @ B I L S I .C O M W W W. B I L S I . C O M

Jewelry News Henrik and Charlotte Jorst, Owners, Skagen Designs


Two of Skagen Designâ&#x20AC;&#x2122;s best sellers in the Americas region

buzz around jewelry

Without a doubt jewelry enhances and gives character to a simple outfit. Americas Duty Free asks five unique companies in the jewelry business about their plans for the new year BY


What are your best sellers in the Americas duty free market? Gold Silk: Our best seller to date has been our 20 strand necklace. This design is very popular and seems to have a slight edge in substance, style and perceived value to the consumer. Our matching 20 strand Gold Silk bracelet has also been popular, and in venues where available, duty free shoppers will buy both the necklace and bracelet. Skagen: Our best sellers in duty free are our JES0016 earrings and JNR0014 necklace. Elle: In the Americas, we have a runaway best seller, the Gateway necklace, which symbolizes the endless circles of love, trust and hope. The intertwining rings silently evoke your three secret wishes captured in rhodium and silver plating for lasting beauty, set with a genuine ruby, (which is our) brand signature. Majorica: One best seller is a new interpretation of the classic white 12mm pearl necklace (which) we enhanced by touches of silver and cubic zirconia. Another one is a 14mm baroque nuage and grey color pearl choker. World Class Brands (distributor of Joia De Majorca, Crislu and Chamilia): Joia De Majorca: Our best sellers are


pendants on diamond-cut Italian chains and pendants with a combination of black platinum and sterling silver chains in black baroque or white baroque 14mm pearls. Crislu: Continuing to be a major seller throughout the Americas is the Princess Tennis bracelet in both vermeil and sterling silver finished with pure platinum and cubic zirconia by the yard (16 inch and 36 inch) necklaces. Chamilia: Our best sellers are bangle bracelets with combinations of Murano glass beads and brilliant Swarovski crystals. Furthermore, silver snap bracelets with pink Murano glass and Swarovski beads are also proving very popular.

What are some new jewelry trends? Gold Silk: Our brand stands alone as a unique, fresh jewelry concept, with high fashion appeal, which attracts strong appeal regardless of what else might be considered hot or trendy in today's jewelry marketplace. For that reason Gold Silk is not affected by the latest jewelry trends. Skagen: For 2011, we found that the major trends we wanted to pursue were contrasting blacks and whites, use of precious gemstones and mixing different patterns and finishes. With these trends in mind, we plan on launching lines that incorporate


Nasib Thabet, President & CEO, Gold Silk

Jewelry News Elle’s Gateway necklace

layering along with mixing and matching of different pieces, as well as statement pieces that really make an impact with the wearer. Elle: In today’s challenging economy, we aim to offer uniquely designed jewelry that is timeless and offers great value because of our precious materials, rhodium and silver plating, with a genuine ruby. Each of our designs is an original and whimsical creation from Europe that reflects a woman’s strength and personality with a soft feminine touch. Majorica: Generally speaking, I see a heavy trend for more and more brand power in the category across channels and markets. In the medium term, I see jewelry closing the branding gap that exists with other aspirational categories like perfumes, watches or leather good accessories. When it comes to products, we see a strong trend towards pearls. Pearls are very hot this season and the trend is toward large sizes, 12 to 18mm. The Tahitian black is a hot color – we are running a campaign with Neiman Marcus at the moment with the new Majorica Tahitian pearl collection. We also see the yellow gold color peaking up after a long time (during which) sterling silver dominated. World Class Brands: Joia De Majorca: The key trend over the past six months—and destined to be an even stronger trend as spring and summer opens up—is the allure of pendants. Baroque and Circular Baroque pearls of 12 to 16mm suspended from 3- to 12-row diamond cut or silky soft chains. The pearls range in color from classic white to the exotic hues such as Tahitian blacks, grays and aubergines. In terms of chains, the Oro's chains are in sterling silver, vermeil or combinations of black platinum and sterling silver. Indeed, this is one of the hottest looks. Not only are pendants at more modest duty free retail outlets but they cater to age groups from teens to a more mature client and tend to be today’s hot trend. Crislu: The latest trend is the more colorful Sapphire collections, the longer lengths in necklaces that range from 36 to 60 inch styles and stackable rings in silver, vermeil and black platinum

Can you tell us about your new launches for 2011? Gold Silk: We’re crafting a truly dazzling new collection for the luxury market


sector in solid 18K gold. We expect this exciting new collection to be market tested and ready to launch this September at the TFWA World Exhibition in Cannes. Skagen: For spring 2011 we are launching four separate collections, all of which will feature stainless steel paired with agate gemstones, freshwater and Swarovski pearls, Swarovski crystals, as well as mesh. We will also be launching interchangeable chains in snake and box chain configurations that can be mixed and matched with various spring pendants. We will also be introducing additional ring styles to our current collection. Elle: In 2011, for the airlines, we are launching a new necklace called the Chrysalis, inspired by dainty butterfly wings, with stylized and sophisticated crafting, and adorned with our brand signature, a genuine ruby. Majorica: We do four launches a year and we start the spring season now with our star, the Capricho collection. It is a wonderful set with a 35-inch long chain with round 12/14mm pearls, a 19-inch "Y" chain necklace and matching bracelet and long drop earrings, all with champagne and white pearls, in vermeil. Then we will have the launch of our summer collection with a creative work around the turquoise. World Class Brands: Joia De Majorca: We’re doing an expanded collection of fashion earrings which will be presented at IAADFS as this category continues to enjoy significant growth. A major focus has been upon the volume price points. Although sales are firm at the better range there is a need to continually react to passengers’ affinity for affordable prices. Crislu: Several major launches will take place for spring, including Micro Pave groupings, Micro Pave Initials (either as a pendent or just initials) and Micro Pave small dainty charms. There will be increased presentations in rose gold finishes and lace earrings in larger sizes. Chamilia: We will be featuring a new self selection fixture showing both made-up bracelets and sets of three beads for those customers who have already started a bracelet.

Do you have any new travel retail exclusives or promotions planned?


Kineret Cohen, Brand Manager, Elle Time

Marc-Antoine Breuil, Managing Director Spanish & Export Markets, Majorica

Gold Silk’s 20 strand necklace has pulled in major sales for the company

Jewelry News

World Class Brands distributes Joia De Majorca products in duty free and travel retail

Gold Silk: We are always looking to the market place for feedback and direction to improve exposure and to impact our Gold Silk brand. We plan to increase our market penetration at the broader consumer level through select traditional retail clients from both US domestic and worldwide domestic markets. In that regard, we plan to maintain a collection of travel retail exclusive designs, as they are the backbone of the success and profitability for our worldwide Gold Silk brand clients. Further, we are working to create regionally targeted marketing collateral for airport shops and travel retailers worldwide. There is a different set of marketing criteria required for the Americas than for Asia or Europe. In that sense we recognize the uniqueness of each global market and plan to design market collateral that appeals to the distinctive culture of the region, rather than (employing) a "one size fits all" global marketing plan. As an example, Gold Silk is performing very successfully in the Asia Pacific region, and we believe it is because we have tailored a market philosophy specifically for that region. Skagen: We do not have any promotions planned for travel exclusives at this time. Elle: All our airline references are exclusive to travel retail, with their own window packaging. In order to support the crew efforts, we participate in many road shows, crew incentives and are also planning a GWP program. Majorica: Yes, we are launching some new travel retail sets this year, one with pendant

Katy Perry exclusive brand ambassador for Thomas Sabo World renowned pop star Katy Perry has joined forces with the international lifestyle brand Thomas Sabo and has become the brand’s new representative. In addition to accessories from the Sterling Silver Collection, Charm Club Collection and Watches Collection, as well as further cooperation, the international chart topper will be the first global representative in Thomas Sabo’s 27-year company history. In the future, the joint campaign will be incorporated in press, print, website ( and at the POS. In a statement Thomas Sabo said: “Katy is a match made in heaven for us. In terms of her personality and charisma, she is the absolutely perfect complement to our brand so much so that we just couldn’t image a better partner.” Katy Perry said: “I'm excited to make things pop for Thomas Sabo. I'm such a fan of all things cute and collectible - I like the Charm Club the best because I get to make it my own.”



12mm white pearl and cubic zirconia with chain, with matching 10mm pearl earrings, at the special price of €138 (US$186) (customers save €24 (US$32)) and another similar one 12mm pearl and cubic zirconia pendant with leather, more casual, matching 10mm studs, at the special price of €130 (US$176) (customers save €19 (US$26)). And we will be promoting Majorica in all major Spanish airports during the summer season with a special and very visual promotion in Palma de Mallorca showing how the Majorica pearl is created. World Class Brands: Joia De Majorca: Yes, we have a multicolor pearl bracelet combined with cubic zirconia along with a multi-colored necklace. We will also be featuring a pendant set in soft pink with 12mm pearls and 10mm stud earrings, as well as a pendant set with Baroque pearls measuring 14x16mm on a diamond cut chain. Crislu: One product that we have are Sunscape earrings that magically change color in sunlight. This concept has been expanded to include pendants and sets of pendants and earrings. Available colors range from clear to pink, clear to blue and clear to canary. This product has received a very positive response worldwide. Chamilia: We have a series of starter set bracelets with 3 to 5 beads on bangles or classic bracelets. We’re also planning on featuring sets of two prepackaged beads.


Watch Report

Geneva Watch clearly communicates the message of the collection through effective visual displays, allowing its merchandisers to drive sales within a limited space

From the hugely popular rose gold, to splashes to bright color and technologically advanced functions, watch suppliers share their insights into the hottest trends around BY FAYE ROWE ver the past few years the watch industry has faced some challenges, but now we are seeing a considerable comeback. Owning more than one watch is now “the norm” and travelers are increasingly looking at watches as fashion accessories as well as timepieces. As Diane Harrington, Director of Sales Travel Retail USA, Fossil explained: “The watch continues to be a great style accessory for layering with bold bangles or leather wrist wraps. It can be easily dressed up or down depending on the wearer’s mood.” What’s more, watches continue to be one of the most popular purchases, both as a self-treat and as a gift. “However, consumers are more cautious about spending and are looking more closely at what is on offer – they want quality, but at a value price,” said Richard Kennedy, Group Sales and Merchandising Director, Scorpio. So which trends are popular right now? “Rose gold is a refreshing and sophisticated trend in the watch category,” said Jeffrey L. Gregg, CEO, Geneva Watch Group. “The trend surfaced in 2006 and has progressively evolved over the years. Staying on trend, we have integrated rose gold watches across all the brands in our portfolio for both men’s and women’s timepieces. It is important to differentiate ourselves in the marketplace by combining rose gold with different textures, colors and materials like ceramic and stainless steel.” The attraction is easy to explain: “We believe rose gold timepieces appeal to consumers because of their high-perceived value and rich look,” said Gregg. “Rose gold mixes well with different colors and materials, allowing it to continue on as a strong trend in the watch industry.” Geneva Watch is especially excited about its new rose gold Touch Screen with Digi Touch technology, as it balances two of the prominent trends: technology and rose gold. “The dichotomy of these unexpected styles coming together proves it is an exciting time to work with timepieces,” said Gregg. Fossil’s Harrington agrees that rose gold has been popScorpio’s Aviator has proven ular in the duty free and Caribbean zone. “Rose gold adds phenomenally successful with global listings and growing a trendy update to already well- loved styles,” she said. Howdistribution in the Americas ever, Harrington is also seeing aluminum as a big trend going forwards: “Not only is it lightweight, but it takes color well. In addition, vintage bronze finishes, splashes of color and using black and blue knurled top rings are some interesting finishes and materials that give the Fossil customer a unique kind of vintage style.” Rose gold was also selling well for Festina, however the main trend recently has been for zircons and lots of them. “The ladies models are moving quicker than ever and we have grown in this area,” said Jason Newman, Export & Travel Retail Manager, Festina. “In the sector there has also been a trend for lower priced plastic watches in a multitude of colors. These products have




The Kenneth Cole Touch Screen watch, which was the first touch screen watch in the fashion category, continues to exceed expectations and has quickly gained a phenomenal fan-base

Although it was only introduced at the Orlando show in 2010, Scorpio’s Avalanche collection has been an instant success and this year the company is widening the choice with two new lines plus autumnal colors

Watch Report

been fabulous for in-flight and duty free sales. Many buyers have commented on their success and I think this has revived the accessory part of in-flight sales.”

Color-pop timepieces Scorpio is also onto newer, brighter things. “We have reduced the number of rose gold models we previously carried – maybe we are already ahead of the trends,” said Kennedy. “Color is very much on trend, both for men and women,” he said. “Last year we launched Avalanche which not only offers variety of color options, but innovative packaging. We have also introduced new models within the Aviator range, which offer colored, interchangeable straps. “Generally, for men, chronographs are still hugely successful and in demand, while we have received very positive feedback for our Aviator Retro watches,” he continued. “Men love gadgets, as we know, and we are now introducing SWAP [the smart watch and phone range] to ground shops through Scorpio Travel Retail Sales. For ladies, classical dress styles with diamante are still in vogue.” Technology also continues to advance. Among Scorpios new products for women is the Aviator Ladies Multi Function Watch with its brand new mechanism, which sets dual time at the touch of a button. “Technology is a strong trend right now and the success of the Kenneth Cole Touch Screen with Digi Touch technology, which was the first touch screen watch in the fashion category, is a confirmation to that,” said Gregg. “In addition, the clean lines of ceramic watches have been popular for some time and we have developed the trend through mixed materials for varying weights and silhouettes. Finally, the appreciation of the inner workings of a watch has shown a strong trend towards automatic movements and transparency among men and women.” Geneva Watch’s Spring/Summer collection for 2011 offers new bracelets, strap textures and color variations including a rose gold case on a white silicon strap for a more sophisticated look. Across the different watch brands the company is also introducing rose gold timepieces and expanding the category of automatic watches for both men and women. “Ladies’ ceramic watches and transparency are also a major focus as they are very on trend right now,” added Gregg.

Festina has a very reasonable entry price level so instead of showcasing its more highly priced products in its advertising campaigns, the company has started doing multimedia micro advertising campaigns aimed at impulse shoppers

Festina has been luring clients more with a wider product base and by improving our value for money offer

Finding inspiration “Our team of designers is always on the look out for the leading trends though extensive research and travels,” said Gregg. “They draw inspiration from the world of design and fashion: couture, ready-to-wear and, of course, the accessory industry. Bags and shoes are key pieces for inspiration.” “A lot of watch trends come out of the fusion process between fashion and technology,” agreed Newman. “Watches are influenced directly by fashion but the technology side to things is often overlooked. Creating better, more resistant, slimmer or lower priced movements is something that influences directly the type of watches available.” As for what the future holds, suppliers are keeping a close eye on all the factors that influence demand. “As watches become a key piece in designing one’s style, the future of the category is expanding as a fashion accessory and providing new ways for the consumer to communicate their status and style,” said Gregg. “As trends continue to expand and exciting materials are introduced, we see the watch industry as a leading category and trendsetter in the accessory industry.” As the industry continues to innovate, it is important to ensure that the effort spent on creating new trends is never at the expense of quality. “As long as people keep on the move, travel retail will continue to innovate and so will the watch sector however Innovation and trends should not play out at the expense of quality,” said Jason. “Of course, we will continue to see colorful watch fads this year, but watches also have a sentimental value that is irreplaceable so the future is bright for those who have always offered and will continue to offer quality timepieces.” 106


Fossil is dedicated to multifunctional, customizable goods, which are fashionable and functional

Business over the past year has been very strong for Fossil with one of the major highlights being its Michael Kors brand

Cancun 2011

22nd to 25th June 2011 JW Marriott Hotel Cancun - Mexico

Latin America Neither Hell: Nor Paradise

Sunglass Report

Marcolin’s Tom Ford and Roberto Cavalli collections are highly in demand

Giles Marks, Director, Global Travel Retail, Maui Jim Sunglasses believes that dedicated sunglass shops equate to higher sales and that, as a small category, all brands need to be displayed in high traffic, visible areas

According to Marcolin, face-to-face communication with vendors at the local level and at trade shows, and inviting customers to its showroom, is proving an effective way to promote its brands

Celebrating a brand new look Sunglasses suppliers share their crisis-crunching strategies, new ideas for promotions and why differentiation is key to success BY




Maui Jim works hard to explain and demonstrate the advantages of wearing a premium, polarized lens for the best possible clarity and eye protection

he sunglasses category seems to be holding up well, despite the drop in spending across all sectors. From affordable fashion accessories to “must have” eye protection products, all types of brands are finding smart ways to carve a new path to success. “The first half of the year was a bit strange as the crisis affected different regions in different ways,” said Roberto Crom, CEO, Buch + Deichmann (B+D). “However, things went well for B+D and the last six months of the year and this confirmed a solid start to 2011 with sales extremely strong in the last quarter of 2010. Differentiation is key to success and our main objective is to add value day after day to ensure we keep growing.” Safilo Travel Retail stood out from the crowd through better management of its clients’ inventories and by working harder to improve supply chain management. As a result, the company gained display space with many important retailers. Signs of productivity have also been noted by suppliers such as Marchon, which saw growth across the board with all its collections, and Maui Jim, which enjoyed a record year in both travel retail and total global sales. Marcolin also has something to celebrate. “Our business has been growing steadily during the last couple of years, since we started selling to the segment,” added Marco Lares, International and Duty Free Sales Manager at Marcolin Eyewear. Initially, the company started selling its most in-demand collections such as Tom Ford and Roberto Cavalli. In 2010, however, Marcolin also brought other collections such as Kenneth Cole and Timberland to the duty free market. “We are specially proud of our successes and presence in the duty free market,” said Lares. “Having been absent from the Americas duty free locations, and knowing the strengths of our competitors and their brands, it is certainly a tremendous achievement to be in demand


Sunglass Report

Marchon would like to see the sunglasses category presented as fashion accessories, which provides protection from the sun

Polaroid rolls out premium 3D glasses collection

Marchon’s goal is to double its duty free penetration over the next few years

Polaroid, one of the first eyewear brands to launch circular polarized curved lens premium 3D glasses, is now rolling out the range to travel retail markets globally. The company believes the rollout will provide travel retail with a fantastic new business opportunity for incremental sales. Polaroid Eyewear has pioneered the development of the polarizing technology that is behind these high-tech premium 3D glasses. The Polaroid curved premium lenses are so optically superior that they have been certified by RealD, a leading licensor of 3D technology for cinemas and consumer electronics. They have already been launched in cinemas and with opticians globally. Consumer electronics companies are to follow shortly. “We previewed the collection in Cannes last October and it was very well received,” says Rebecca Harwood Lincoln, Travel Retail Manager, Polaroid Eyewear. “We’ll also be highlighting the range at TFWA Asia Pacific in May. This is the first time we have exhibited there and so we’re very excited about going with such a technologically advanced product.” “While most optical frame or sunglass purchases are made on an individual basis, 3D glasses also provide a family-based sales opportunity, so our collection is built around this premise. And while this market is technology driven, we think fashionable design is an equally important purchase driver for 3D glasses,” continues Harwood Lincoln. “Customers can choose from contemporary and wraparound frames, many in this season’s latest colors of cobalt blue and purple, or they can go retro with stunning ice white frames. There are also stylish movie-cult frames too, featuring stills from classic films. For customers who wear prescription lenses for the cinema or to watch TV, they can still enjoy the full 3D experience as we have included 3D glasses that fit comfortably over these frames with no compromise on optical clarity.” The Polaroid Premium 3D Collection optimizes the use of passive circular polarized lens technology, which has been shown to outperform the alternative active/shutter technology. Passive 3D technology is the preferred option for film production and is expected to take a significant portion of the 3D television market in 2011 and beyond. To support sales, Polaroid Eyewear has developed a selection of floor, counter and window merchandisers specifically for the 3D Collection. The company is backing this up with an international marketing campaign.

in some of the most important locations in the region.” Indeed, one of the biggest challenges suppliers face is competing in a saturated market, especially against strong brands, which have been active for decades. “As a dedicated polarized sunglass brand, we do not align ourselves with other products such as fragrances, clothing and jewelery,” said Giles Marks, Director, Global Travel Retail, Maui Jim Sunglasses. “This creates a tremendous challenge when you are competing with the very large diversified fashion brands.” Key to success is carving a niche for yourself in order to get noticed. “With fewer travelers than in the boom years, we need to continue to offer compelling products that are competitively priced,” explained Lloyd Gittler, VP of Retail Sales, Marchon. As a solution, Marchon is currently launching Lacoste and its new M3D 3D sunglasses with patented lens technology. “Lacoste is exciting because of the history of the brand and its current growth trend,” said Gittler. “Our sunglasses are beautifully styled and very colorful, like Lacoste ready-to-wear.” The new M3D photochromic 3D sunglasses double as high-quality 3D eyewear, which you can use while watching a 3D movie or television program. It’s hoped these extra benefits will serve the company well. “Shopping habits have changed in that consumers are much less willing to buy on impulse,” explained Gittler. “The current shopper is doing their due diligence before making a purchase. They still want fashion brands, but they also want these items at an appropriate price. In general, our consumer is looking for status at a value price.” Maui Jim’s specialty is its superior lens technology, which offers the wearer clarity of vision and fantastic color enhancement thanks to the patented polarised pluslens. New-to-market lens technology is set to follow this year to satisfy consumers’ increasing desire for newness. “As we slowly emerge from one of the worst recessions in history, consumers are looking for greater value for their investment – this is particularly true in the sunglass industry,” said Marks. “Designer names don't always equate to a higher quality product, so therefore Maui Jim is well positioned to offer our premium products at fair market value.” B+D has prepared a new line called Timeless Affaire, which is inspired by Hollywood’s Golden Years and, so far, has been well received by customers. Within the collection, reinvented classics in sophisticated colors make an appealing choice for those looking for elegant shades. “Thick structures, traditional shapes, feline details, oversized frames, visor-like outlines and leather detailing reinforce the vintage essence of this original sunglasses collection,” said Crom. At the same time B+D is also introducing a polarized effect to its products – a sign of the continuous improvements the company is making to its range. Marcolin is launching two new collections: Swarovski and Diesel, which are both very strong brands, with a worldwide following. “We think they have strong appeal because they are both well known



Your world. See the brilliance.

Welcome to color.


Business is Brilliant with Maui Jim

How can it be otherwise? Maui Jim is the number one selling polarized sunglass in the world. That’s because they offer the utmost in protection from glare as well as extraordinary clarity and color enhancement, all courtesy of our patented PolarizedPlus®2 technology. And now they are available in more must-have styles than ever. Bring Maui Jim on board at your Duty Free shop and see just how brilliant business can be. For more information, please contact Giles Marks, Director of Duty Free Sales, at

Sunglass Report

within the duty free segment,” said Lares. “I think that customers are dipping their toes back into the luxury pool. But with a mindset that's been smacked down and radically reshaped by the recession, the lure of new luxury brands and emerging lifestyle twists is often down to personal and cultural reasons. We are adapting because, with our luxury brands we are trying to reinvent and deliver a better experience, so we are rethinking our business models.”

Taking a stand The strategies employed to attract customers can vary from brand to brand, although price is of the essence. “American consumers are price sensitive and want products that are well displayed, easy to choose and buy,” said Stephane Giraud, President, Travel Traders Inc. (distributor of Safilo Travel Retail). “In the past, we re-arranged our product assortments and included more products at entry price points. In the Americas, we launched strong brands such as Armani Exchange and Marc by Marc Jacobs – even in the luxury segment we successfully introduced Gucci Young with an attractive entry price point range and this has been appreciated by both our clients and end consumers.” In terms of display, shoppers are increasingly looking for something that’s fresh as well as functional. “Promotions need to be creative, persuasive and ultimately generate a higher revenue stream for the retailer,” said Marks. “Each year we meet with our marketing team to prepare and implement new and unique promotions which will result in an increased revenue for both Maui Jim and our retailers.” The advantage of having one dedicated brand allows Maui Jim to devote all its marketing expertise and resources into promoting the advantages of wearing a polarized sunglass. Its custom "polage" is one of the most effective, visually striking displays in the industry. Marcolin favors open-sell walls or fixtures where important design details such as the temple logo can clearly be seen, as opposed to if they were in a flat display case. B+D is constantly updating its displays and this year is launching a new floor display which contains four trays of products and can hold up to 100 separate units. “We always try and give our customers promotions and products B+D’s new, innovative floor display can hold up to 100 pieces



Safilo Travel Retail underlines the importance of differentiating the offer to consumers

that are useful,” said Crom. “Promotions are a valuable selling tool and we always bear this in mind when we design them.” Its latest promotion – a 20% saving off the purchase of a three pack of its new line of reader – was designed especially to make it easier for sales people to reach their targets and, so far, has been very successful in every outlet where it has been used. As well as money off incentives, education is also a critical factor when it comes to selling. “We try to drive sales by promoting the benefits of our brands to potential buyers,” said Lares. “Currently, we are running print advertisements in magazines, trade journals and newspapers so that we have direct contact with potential customers during the communication process. Also, we are training the sales staff for in-store demonstrations so that the purchasing experience is more direct. With the use of our POP and displays, we are also presenting images that accurately convey the brand message. Of course, we’ve also done some contests and offered price incentives as sales promotion techniques.” PR is helping Marcolin to generate sales-boosting publicity while hosting special events and sponsoring charitable campaigns is increasing awareness of the company. “We have very high expectations for the sunwear category for 2011 and beyond. We see tremendous potential for further development,” revealed Lares. “At this time Marcolin USA has created a travel retail division, based in Miami and headed by myself since we think this channel is an incredible driver of growth. We want to be a leader in developing sunglasses in this channel because the highly-targeted travel retail approach used to be mainly through local market operations. We now have the capacity and infrastructure to sell direct to the main operators in this channel.” B+D is hoping to continue achieving double-digit growth based on constant improvements in product quality, new product development and new product lines as well as continual tweaking of its marketing plans to accompany new developments. “I can only hope the very strong momentum the sunglass category has experienced over the last few years will continue,” said Marks. “I strongly believe it will.” As Gittler says: “The future looks bright so keep on wearing those sunglasses!”



Company News: LeSportsac

American fashion brand LeSportsac comes correct with a veritable smattering of design-led contributions LORNA STRICKLAND-COOK BY

eSportsac, the quintessential American lifestyle brand, specializes in casual, nylon bags with a difference. Founded in 1974, the company maintains a strong presence around the globe, offering a fashion-forward line of handbags, travel totes, messenger bags, backpacks and accessories. The brand’s lightweight fabric combined with high-performance hardware characterizes its iconic, functional styles available in a wide variety of colors and prints. A leader in the accessories market, LeSportsac continues to offer fresh, innovative new styles that remain consistent in terms of quality and character while partnering with trendsetters around the world. LeSportsac has teamed up with a whole host of designers over previous years including Gwen Stefani, Stella McCartney and Lilly Pulitzer and this year it has been working with Los Angeles design house Joyrich. This collaboration will provide an edgy 90s color contrast over 16 classic LeSportsac styles. Expect lots of gold and chain detail to hark after the 90s. As if teaming up with well-known personalities and design houses wasn’t edgy enough, the brand has also been pioneering an ‘artist in residence’ scheme. Its latest artist is Jeremyville, who is also a product designer and ‘Inspirations’ is his collection for LeSportsac. Based on three different landscapes in his life, Jeremyville’s wearable artwork for LeSportsac consists of Bondi Beach Sketchbook, Jeremyville NYC and Tomorrow Forest. Three highly different landscape prints will feature across a range of bags. Some of the more recent developments coming from LeSportsac include a heady kiss goodbye to the doom and gloom of winter with the creation of its spring/summer range. Drawstring Crossbody and Round Shoulder Duffle bags are the highlights of the new season. Stylish and compact, the range focuses on bright colors. Reds, purples and blues hark after vibrant sea colors to really spring us into summer. Elegant prints and watercolour styles celebrate the beauty of nature but sit crazily well alongside LeSportsac’s continuation of its spring/summer 2011 collection. Zap Pow Pop pays homage to the classic comic books with bright colors and explosive motifs. As if the collection wasn’t loud and proud enough, LeSportsac has been busy giving some of its back catalogue a makeover. The Zip Top Shopper has now been reimagined to showcase the brand’s newest fashion forward techniques. The classic shape has captured the latest trends in its Union Jack style. Ribbon appliqués and sequins embellish the tote bringing it right up to date in two colorways. Union Jack red hot is the classic British red, white and blue; while Union Jack blue is a more sedate pastel coloring with light blue, pink and white. With retro being a buzzword in fashion at the moment, the ribbon adornments also come in a range of color assortments; and sequin patterns get nautical with Anchor, Starboard and Beachcomber varieties. And finally, as if this all-American brand hadn’t created a heady smattering of styles and colors for the upcoming season, LeSportsac has now expanded its men’s collection. Ten different styles focus on functionality and long-lasting wearability. Briefcases and messenger bags have had their ante upped with the addition of four prints. Sk8 Park is a creative, new print that features graffiti artwork and is for the unashamedly fashion-savvy man about town. Truffle Stripe is a more basic, functionable navy with subtle khaki striping that is easily coordinated with many different looks. Slate Lightening is also very versatile, but its grey color has a touch of shine to bring the bag into modernity. Black Onyx also features to add a touch of class and usability to the range. As the brand jumps into summer, it is encouraging us all to do the same with zingy patterns and funky adornments to the most wearable of items. As winter sheds its skin, we could all do with a bit of a LeSportsac zing.



LeSportsac has teamed up with Los Angeles design house Joyrich to provide an edgy 90s color contrast over 16 classic LeSportsac styles

Bag News

Hobo celebrates 20th anniversary in style For Fall 1991, Hobo launched its first collection of funky little leather bags, in just two natural colors. Hobo’s fall collections for 2011 were inspired by the incredible heritage-hip spirit of the brand, which has been in the making for 20 years. “For 20 years, we have offered our customers interesting and unexpected expressions of trend, while holding firm to the belief that our customers look to us for what is missing from current fads,” says Koren Brewer, Chief Visionary Officer, Hobo International. “What built Hobo then and what sets us apart now, is our passion for style and purposeful design. With every year, with every design, we take our promises seriously; to offer every woman the perfect way to express her individual spirit while navigating life’s journeys in style,” says Brewer. The fall line is an exploration of where Hobo has been and where it’s going, built on the company’s founding principles Hobo International’s of quality, creativity and thoughtful detail. It celebrates its new pieces are inspired spirit of the 20 long-standing commitment to stylish designs infused with a by the year old brand casual ease that reflects its original, quirky point of view.

Tumi gains momentum in the Americas

Some pieces from LeSportsac’s colorful spring/summer 2011 collection

Premium lifestyle, accessories and travel brand Tumi has plans that will take the brand to new heights in the Americas. Expansion and upgrades are in the works with existing partners in Brazilian airports as well as two key Latin American airports, namely Mexico and Buenos Aires. The company will also accelerate its expansion in US airports, primarily via stand alone stores, and will make JFK its brand showcase. In a continuing upswing, Tumi plans to build a strong dedicated sales/VM team in all key regions to provide best-in-class services to its travel retail accounts. Moving forward, the company plans to be more aggressive in rolling out travel retail exclusives. In terms of trends, on the fashion side luggage is focused on four wheel bags, hard side lightweight cases, color and versatility, as well as versatile bags that can be used for travel or every day. For handbags, consumers are looking for bags that are the usual sizes, as well as larger bags that can hold laptops. “Tumi is very focused on business-use bags,” explains Eric Gusman, SVP International, Tumi.

Taking inspiration from the island of Capri, the spring 2011 collection from Tumi features a seasonal color palette of sand and sea, sprinkled with a touch of jungle heat and city lights – just enough to provide the perfect options for discerning men and women. Below, we look at a few items from the new collections. Arrivé, the newest addition to the Tumi luxury collection, is designed to meet the demands of the sophisticated business professional. Combining functionality, quality and performance, the Alpha collection invigorates with vivid new colors. New hardware and stylized design details update the Alpha Bravo line of day bags for the next generation of Tumi consumers. Ultramodern Tumi Vapor welcomes spring with exciting new colors, including Sea, Jungle, City Print and Floral Etch. Designed with the female business traveler in mind, the Villa luxury collection exudes sophistication and professionalism, yet has a feminine aesthetic that will satisfy the most demanding businesswoman. A style that continues to gain attention in the Voyageur line of casual travel cases and accessories for women is the ultra-lightweight, semi-structured Super Leger International Wheeled available in Sea, Jungle, City Print and Floral Etch. For short trips, the Weekender is a functional yet stylish option with its top-carry handle, detachable shoulder strap, drop-in pockets for organization and zip closure. The company continues to remain true to its philosophy: “Design and market best-inclass products and services to the most discerning business travelers to make their journeys around the planet more comfortable.” Tumi’s Vapor collection welcomes new additions such as Sea and Jungle THE AMERICAS DUTY FREE & TRAVEL RETAILING


Writing Instrument Report

The new Caran d’Ache Geneva airport boutique

The writing products market has had its ups and downs, but is looking forward to a lot of new activity and hoping for healthy growth this year BY

Parker’s boutique in Novinsky Mall, Moscow


ike other sectors, the travel retail market for fine writing products and associated goods has definitely been affected by the economic downturn, but the chill seems to have been relatively short-lived. Urs Messerli, International Duty Free Manager/Export Manager Americas for Caran d’Ache, says that 2009 figures for the writing instrument market in travel retail and duty free was

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pegged by Generation Research at 8.4% below 2008. This was a much heavier decline than the 5.4% fall in the generic luxury goods category. Still, Messerli is upbeat. “Between 2000 and 2009, while the luxury goods business has grown statistically by 59.6%, writing instruments grew by 74.8%,” he says. “For 2011 our January figures reached double-digit growth versus January 2010, and overall, despite the weak US dollar and


Euro currencies versus the Swiss Franc, we anticipate strong growth in comparison to 2010.” The company is now present in over 50 international airports, its primary channel, and onboard with 15 airlines – its secondranking channel. Ferries and “other shops” make up the rest of the market. David Ferreira, National Accounts & Travel Retail Manager for Cross, has a similarly positive outlook. “The travel retail channel has

Writing Instrument Report

Parker’s “Corner” in the Galeries Layette Department stores, Paris

been growing consistently in the last few years,” he says, “especially in the Americas, where we had organic and extensive growth. The travel retail channel within the Americas currently represents 5% of the Americas retail sales. This number will most likely go up to 5.5 or 6% in 2011.” In 2010, Ferreira says, travel retail sales for Cross rebounded to the 2008 level, which was a primary objective. Further, Ferreira believes the slump ultimately had a positive impact, by

reducing inventories held by partners to “very lean” levels while at the same time accelerating the rate of new product introductions. For Parker, the travel retail picture is mixed. To date, the company’s travel retail operations are almost exclusively centered in Asia-Pacific – the result of ownership changes in the last 15 years plus, more recently, intensive work to overhaul the brand’s domestic market approach and product offerings. But now Parker is mounting a serious run at travel retail.

COME VISIT OUR innovative Travel

“It’s a new channel, but it’s very strategic for us,” says Jean-Charles Hita, President of Parker. “It’s new, but we know we can do well based on how we’re doing in Asia, where we’re Number One or Two at our price point of US$20 to $200.” The downturn afforded an opportunity to overhaul Parker’s product assortment and distribution operations, Hita says. These alone had a quick payback, yielding doubledigit growth in 2010 and, Hita expects, for 2011 too. Backing up the travel retail campaign are new fixtures designed by renowned architect Bruno Moinard, who has worked with Cartier and other high-end names. Parker has several primary product lines, which provides the flexibility to cater to local tastes. In addition, it has also introduced a leather goods collection, which will come onstream in travel retail around Christmas of this year. “We plan to have 150 sites by the end of 2011,” Hita says. “A third will be in North America, a third in Latin America, and a quarter each in Asia-Pacific and EMEA.” The travel retail segment is critical for

Retail solutions

Booth 823 118


Writing Instrument Report

The Cross store in Salt Lake City Airport

Cross has found that journals do especially well in a self-serve presentation

Parker because the company’s main customer base is in the 18-39-year-old young adult category, with strong purchasing power and trend awareness, and for whom travel is an important lifestyle element. A consistent and truly global travel retail presence will be an essential piece of the corporate grand strategic approach to its customers.

Moving target David Ferreira says Cross has noticed a major 120

shift in consumer behavior in the last two years. With money tight, customers are more value-conscious; they tend to shop around and want to be sure they’re getting good value. Since Cross has always stressed affordability and value, Ferreira feels this sharper buying attitude has worked out very much in favor of the products it sells – and the way it sells them. The lifetime warranty offered on all pens doesn’t hurt either. “Consumers buy our brand because it offers true value,” says Urs Messerli. “We’re committed to making products that have enduring quality.” Caran d’Ache’s two main categories are premium writing instruments and color products, the latter tailored for children. With an enviable niche selling iconic products like its Ecridor and 849 collections (US$150-$350 and US$30-$100, respectively), Prismalo water soluble colored pencils, and travel-exclusive multipacks, the company has enjoyed solid sales despite the economic downturn. Gift-with-purchase promotions work well, Messerli says. He points out also that regular sales training and incentives directed at the vendors themselves are also effective. Cross pays attention to auxiliary categories, especially the really strong ones, such as journals and reading glasses – the latter are in fact Cross’s top sellers. “When sold in an airport store, they usually account for about 55% of the sales,” he says, “and up to 90% in some specific markets within South America.”


Cross journals have also been heavily leveraged in the two years since they’ve been introduced. Sold with a free Cross pen, the journals are especially successful in a self-service environment, Ferreira says. For Cross, the top duty free markets are in South America (Brazil, Argentina, Uruguay, etc.). “In the US, the consumer is not used to purchasing in the travel retail environment and the saving isn’t significant versus the local market prices,” Ferreira says. In South America, high local taxes and duties make buying in duty free stores a logical, money-saving option for travelers. So when it comes to per-passenger sales, South America is in the lead, but because of the sheer size of the North American market, the US and Canada lead in overall sales. In 2010, Caran d’Ache opened a 19.9square-meter boutique/shop-in-shop in Geneva airport with operator AGS/Airgateshop, a shop-in-shop at Singapore airport Terminal 2 with Hudson News/Dufry, a corner in the Dock E in Zürich airport with Nuance and, for color products, which are integrated into the duty free toys category, another corner in Basel airport with Dufry. “We work in close partnership with the leading retailers, which is paramount for a winwin business relationship in travel retail,” Messerli says. “On top of that, we have doubled our floor space in TFWE Cannes to 45square-meters in the prestigious Riviera Village with an exciting brand new stand.”



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Gift Report

A few years ago no one knew where to place children’s products: now, as the category matures, retailers are starting to appreciate the potential new revenue stream BY


he children’s gifts market isn’t one that’s traditionally thought of as a big part of travel retail, but Wandering Monkey Director Jonathan Corbett is determined to change that. Although the company has opened up into the domestic market over the last year, travel retail is still its bread and butter, and its product line and geographic reach have been expanding steadily. “We’re targeting year-overyear growth in the 10 to 15% range,” Corbett says. “We took a hit in the downturn – children’s products are a bit of an afterthought for people when budgets are tight – but 2010 was a growth year and 2011 definitely has great potential.” The experience at Cannes was very positive, and Corbett says that show traffic to the company’s stand reflects growing awareness of the company’s standing in particular and of the children’s gift market more broadly. The launch of the Wandering Monkey Activity Pack last April was very successful, Corbett says, and this continues to be the number one seller. “We’re taking on several new products right now,” he told Americas Duty Free. “The Totseat travel high chair has done brilliantly in duty free. Also, this year we’re launching a series of own branded travel games which will include Snap, Happy Families and a Draw the Monkey Game. All the games come with our usual fun, unique colorful designs, which will attract children of all ages.” The company is actively opening new airline and airport channels wherever possible. In addition to building on an already strong Asian presence, Corbett says the existing profile in Africa, the Middle East and Europe can always be improved – and of course the vast North and South America market beckons. “We’re always looking at new opportunities and we’re very optimistic about the future for Wandering Monkey.”



The top-selling Wandering Monkey activity pack

Category busting If the children’s gift category is difficult to pin down because it’s relatively so new to travel retail, the category of designer children’s fragrances is almost impossible to define, let alone to place in a store. At least that’s the recollection of David Marmol, Vice President of I Marmol. “The most difficult time was beginning,” he says. “Our first fragrance was ‘Barbie.’ Of course everybody knew who Barbie was, but

The Wandering Monkey Snap Cards


they didn’t know where to put it in the store!” One of their first customers, Bahamas retail chain John Bull, is a prime example. They loved the Barbie fragrance but balked because they weren’t sure where it should go. “So we just sent them some free packs and left the placement to them. They sold out immediately, and next day we had an order.” I Marmol now manufactures 35 to 40 different fragrances for children under licence.

Today the top sellers are branded after top children’s animation favorites Dora the Explorer and SpongeBob Squarepants. In a further attempt to ease in-store placement decisions for store managers who may be uncertain, the company also has its own line of Kids Korner display furniture. “Because our concept is ‘designer fragrances for kids’ we work with one of the top fragrance designers in the world,” Marmol says. “Every character has its own designer fragrance – you could put them up against almost anything else in the stores.” The fact that this is no idle boast is borne out when Marmol reveals plans to release Batman and Superman fragrances in adult versions. He hopes these will be ready in time for IAADFS this year but couldn’t be definite about that. Other adult versions are expected to follow. “We’re not cute, we’re not ‘toy-ey’ – we try to keep away from that,” Marmol says. “Kids today are so sophisticated. They know the big brands. Sure, when I was a kid I used to take some of my dad’s fragrances. My son did the same with mine. But he started a lot younger!”

Space to grow “We find it takes time to persuade the big groups in duty free to work with this category,” says Priscilla Beaulieu, Vice President and International Sales Director for the Millennium Essence Company. “What is strategic in duty free is that we bring new business. It’s not like we’re a new competitor in an existing category.” Millennium Essence manufactures and distributes the Kaloo, Clayeux and Corolle lines of children’s fragrances, in addition to dolls and soft toys, and clothing and accessories for children. In spite of the reluctance noted above, Beaulieu says that in the travel retail and duty free channel, the company is now workNot what you’d expect! The Vanilla Cake Batter fragrance

The Sanrio Hello Kitty fragrance

Kaloo Blue children’s fragrance

ing well with such stalwarts as Aldeasa, Dufry, IDFS, Aelia, Interbaires and others, and has a growing global presence. Still, there are wrinkles to be ironed out. The large operators grasp the importance of adding a high-impact, value-priced impulse buy to the average purchase at a time when international traveler numbers are down. But the main question is space. “Across the entire children’s category – toys, clothes, fragrances, accessories – the revenue per square foot is simply lower than it is for perfumes and cosmetics,” Beaulieu says. “So we have to work with the retailers on this.” One way to solve the challenge is display furniture. The company recently released a rotating, stepped three-box display unit for the three fragrance brands, specifically for travel retail. “We offer the display to duty free shops with an order of a certain size,” Beaulieu says. “It lets the shops create a children’s corner more easily.” Kaloo and the other fragrances are making steady inroads in travel retail, which brings in a quarter of total sales. Aside from that proportion, the channel is strategic because of its unique power to make and build a brand image. The value of being well represented in travel retail is especially high for an impulse-buy category. The fragrances generally sell at around €25 (US$34), and €30-34 (US$41-$47) for a boxed set. “This is higher than mass market, but still affordable,” Beaulieu says. “As an impulse buy we have to avoid being too expensive.” The bestseller right now is the Kaloo Lilirose fragrance, which was recently introduced in a small, attractively presented 50ml travel set at an affordable price. Kaloo is the company’s longest-standing brand. It’s now sold in 80 countries locally, and in around 200 airport and downtown duty free shops. By contrast, Corolle has probably the highest brand recognition of any in the portfolio, but has been on board only one and a half years.

Category killers Making a habit of defying easy categorization, Demeter Fragrances offers a

broad range of products targeted at ‘tweens’ (10-12 years old) and young adults. CEO Mark Crames is careful to point out these are not children’s fragrances. “Our products are simply too sophisticated for children,” Crames says. “We really target teens and young adults – which of course makes us attractive to tweens.” Although Crames expects travel retail sales to grow this year, especially in Asia, right now they make up a small proportion of the total. “It’s my experience you need a significant presence in the foreign local market before you can expand the travel retail footprint,” he says. “We’re focused in particular on entering the Far East and India.” The company also actively licenses its products. A current Chinese joint venture will expand from 17 to 30 stores in China this year alone – along with three each in Hong Kong and Taiwan. Right now, bestsellers are the 1oz Hello Kitty and My Melody cologne sprays (in travel retail Demeter sells only 1oz cologne sprays). From the classic Demeter fragrances, Cotton Candy and Vanilla Cake Batter are other top performers. Cake batter? Fragrance names like this, or “Dirt,” “Funeral Home,” “Baby Powder,” “Egg Nog,” “Fiery Curry” and others, exemplify the offbeat – if not downright Proustian – positioning that Demeter has adopted, and which keeps its products from being too easily lumped into the children’s category. Or any other for that matter. The recession had a significant impact on sales, Crames said, referring to 2008 as a disaster. Things stabilized in 2009, although at much lower levels than pre-2008. “2010 was an excellent year,” Crames says. “and we expect double digit growth again in 2011.” The company’s core South Korea and China markets are expanding faster than the American economy, which is helping drive overall growth numbers. For the future, customers can expect a steady pace of additions to the large “Hello Kitty” collection. In 2011 the company will also launch a limited edition Hello Kitty Spring fragrance and Keroppi, another Sanrio character. THE AMERICAS DUTY FREE & TRAVEL RETAILING


Confectionery Report

Hershey’s Travel Retail plans to include its recently introduced “own-boutique” concept in the Americas




As another IAADFS rears its expectant head, we take a look at the latest Americas-based news and developments from some of the industry’s best-loved confectioners BY LORNA STRICKLAND-COOK ith another IAADFS comes a complete host of new ideas and new deliveries for the Americas market. But what do the great and the good have in store this side of the Atlantic? This year’s IAADFS promises to be a delicious one as the confectionery


houses get ready to launch some new initiatives: all vying for your shelf space. No brand represents the American confectionery market better than Hershey’s. This Pennsylvania-based, home grown chocolatier may have the US in its grasp but when it comes to travel-retail the brand has been taking small steps. However, this is the year that Hershey’s plans to make its mark on the whole of the travel-retail industry and not just in its Americas home market.

M&M’s peanut dispensers



Mars’ 400g Celebrations tube

Hershey’s continues to launch its travel retail exclusives this year

Confectionery Report

Chocolat Frey is expanding their Americas business

contribution to total business is growing. On the back of this, one thing is for sure: we will continue our plans to develop travel retail exclusive items, which, in the short time since we introduced them have continued to garner great success for us and our retailers.” Another brand that has recently been making changes is Mars, who recently saw the departure of Stuart Bull from the company. Jack Tabbers, who has been at Mars for the past eight years, has stepped forward as spokesperson for the brand in travel-retail in his role as General Manager Mars International Travel Retail and tells Americas Duty Free: “We have great ambitions for the Americas. It's a strong market for us, both in North America and in Latin America where Brazil, Mexico and Argentina lead the way. With the leading brands M&M's and Snickers, which are the most preferred brands amongst all age groups, the growth potential is enormous. “The experiential appeal of the Red and Yellow characters seduce travelers in to making extra purchases. We have a few gaps to fill on the physical availability of M&M's and I believe by doing so we can make a big difference to category performance. We're increasing the size of our team in the region and I feel very positive about the opportunity for us."

New ideas In travel-retail the brand has been most prevalent in Asia where its travel-retail department has been based and has been making strong headway. However, all that is soon to step up a gear with ambitious plans to spearhead regional developments from across different locations. In fact, Hershey’s recently announced the appointment of its new World Travel Retail Team General Manager. Steve Bentz joined the team just before IAADFS and is based at Hershey’s US head office. Hershey’s Travel Retail Marketing Manager John San Miguel tells Americas Duty Free that its plans for the industry in the Americas include extending its recently introduced own-boutique concept as it plans to roll out further concepts at JFK airport. The brand went into the airport towards the end of last year with its own branded concept through retailer Saveria. But more are on their way. Miguel reveals: “The presence of Hershey's Travel Retail really only just started in the Americas. We are far from being where we want to be but through successful promotions and branding initiatives with our business partners, we will continue to drive sales and distribution in the region.” In terms of successful products for Hershey: “In travel retail, the Hershey’s brand remains to be the strongest brand in the US followed by Reese's. In South America more sales for the Kisses brand are usual,” he says. “As the brand continues to open new accounts in the Americas, our 126


One brand that is a relative newcomer to Americas travel retail is Chocolat Frey. The Swiss-based chocolatier has only been in the business since 2008 and according to Brand Manager Travel Retail Andrea Mathis “is still expanding business in America as well as in other parts of the world. “So far we are very satisfied with the achieved results and plan further expansion in the region. We are therefore increasing the brand awareness of Chocolat Frey.” Mathis reveals that there is “no differentiation” between displays and merchandising on this side of the Atlantic versus the other side with customer behavior on either side prompting no necessary change to the way products are displayed. It may not be the way products are displayed that requires change, but one company that has been carrying out extensive industry and customer research is Nestlé. This fellow Swiss brand has been providing the travel retail industry with food for thought and this year’s IAADFS will be no different. This year’s Duty Free Show of the Americas sees Nestlé International Travel Retail (NITR) focus on its Perfect Store initiative and latest new product developments. Roland Stieger, NITR Head of Sales says: “For NITR, the Americas continues to be an important and growing region, and the Perfect Store initiative, with its core principals and associated category drivers will provide the right framework for retailers to deliver future confectionery growth in the region.”

Confectionery Report

The Perfect Store core principles: ■ Make confectionery EASY to understand and EASY to shop ■ Encourage shoppers to INTERACT with the category ■ Make confectionery ACCESSIBLE to ALL shoppers ■ Build confectionery displays based on HOW shoppers SHOP On its stand in Orlando, NITR will be showcasing its virtual reality Perfect Store through the eyes of the shopper. It will illustrate virtually how the individual category drivers can be activated in store to provide the right framework to increase levels of penetration into the store, shopper conversion and basket size. As part of the Perfect Store initiative NITR will be sharing with its partners the latest developments and shopper insight of its Cash Till Point optimization program with examples been shown in the virtual reality and on the stand. Alongside the Perfect Store initiative, and totally in line with the initiative and category drivers, NITR will highlight its 2011 new product range based on its three global brands: Nestlé Swiss, Smarties, and Kit Kat, along with the regional brands After Eight, Quality Street and Baci. With some brands stating that the Americas market is a new one for them, industry stalwart Ferrero is no different. Last year was a good year for Ferrero in the Americas as it started working with many new accounts and, at the same time, increased its business with its existing customer base. “Our growth was not only due to new sku listings, but also with growth of the core portfolio of products,” Giannicola Losacco, General Manager Travel Market Division tells Americas Duty Free. “Ferrero has only recently launched in the travel retail channel in the Americas. We are now moving from listings with the key operators to the next stage that entails visibility via merchandising aids and personalized displays. “Many opportunities still need to be addressed in both North and in South America where we have a greater presence. This is giving us the confidence that we still have strong room to grow as we begin to consolidate our business where we are present,” he says. In the US, it is the Kinder line of products that is taking off given that Ferrero had not previously launched Kinder in the States before. “The acceptance of Kinder in South America is also very strong given the very high consumer awareness of Kinder Chocolate and Kinder Bueno,” he says. “The quality of the product appeals to the consumers, together with our unique and highly attractive travel retail exclusive packaging.” The brand’s pralines, especially Ferrero Rocher and the Ferrero Collection (a mix of Rocher, Rondnoir and Ferrero Garden), are popular among travelers in both North and South America. Delectable new treats are only part of the overall parcel. With investment in shopping behavior and important new personnel being added to the teams of the great and the good, this year’s IAADFS promises to be a good one. 128


Investment in its 'Perfect Store' gives Nestlé the cutting edge

Kinder is ‘taking off’ in the US this year

Ferrero will focus on its mini Nutella pots for travel retail






Confectionery News Godiva drives sales in Americas Godiva returns to the Duty Free Show of the Americas this year (booth 829) after another highly successful year of travel retail sales throughout the Americas. “Sales have been driven by the success of Gems and Tablets in both North and South America Markets,” says Diane Buchanan, International Travel Retail Region Manager Americas & Caribbean, Godiva. “We will continue to expand our business in the region, with a particularly strong focus on the South America emerging markets.” In February 2011, Godiva will introduce the reworked Gold Collection, first launched at TFWA World Exhibition last October. Godiva’s iconic collection is now available in new beribboned boxes and offers a wider selection of chocolates for greater giftability. The Gold collection boxes now have a single layer of chocolates in 14, 24 or 34-piece gift boxes. On opening, the full collection is revealed with each chocolate placed in an eye-catching arrangement rather than the traditionally-uniformed rows of chocolates. The boxes are flat and compact, ideal for traveling and slipping into a carry-on or laptop case. A rich chocolate-brown satin ribbon wraps into a lovely bow, offering a more giftgiving and indulgent feel. Each box offers selection of dark, milk and white chocolate delights as well as a balance of pralines, ganaches, caramel and mousse chocolates. It is a collection sure to appeal to all tastes. In addition, this year will see the introduction of new flavors for both Gems and Tablets, along with a limited edition Dessert Truffes, which will be launched in April. This will offer an exclusive 18-piece luxury box with mouthwatering dessert flavors such as Cheese Cake, Carrot Cake, Tiramisu, Moelleux au Chocolat and Sable aux fraises.

Kraft Foods Travel Retail combines the world of iconic confectionery brands Visitors to this year’s IAADFS Orlando tradeshow will discover a powerful line-up of new products from both Kraft Foods and Cadbury at Kraft Foods World Travel Retail’s (KFWTR) expanded booth (number 315). Highlighting the strengths of both companies, the exciting array of novelties has been specially selected by KFWTR for the Americas region. “At this year’s IAADFS Orlando show, we are delighted to present a powerful combined portfolio of products in all the key confectionery segments,” comments KFWTR Managing Director Andreas Fehr. “The Americas region plays a key role in our travel retail regionalization strategy and our strong and dedicated team continues to focus on growth opportunities in this region…. The Orlando show gives the ideal opportunity for us to share our combined plans for the Americas region with our trade partners.” The company will showcase brands such as Trident, Toblerone, Milka and Cadbury.



This year marks the sixth IAADFS for Jakemans’s Maple Products, a small Ontario producer of maple sugar products that got its start in 1876 when the newly arrived Jakeman family was taught the secret of making maple sugar by Canadian natives. Over the intervening 135 years, the family-owned and operated company has stayed close to its roots, and today has 12 full-time employees plus an additional three to four hired every year during the peak producing season. It’s hard to be unique in a field as crowded as maple sugar products, which are surely Canada’s signature product. But this year Jakeman’s hopes to prove that there’s still room for innovation by presenting Maple Ice, an infusion of maple sugar combined with another well known Canadian trademark – ice wine. Maple Ice has already made its mark: it was selected as one of the “Top Ten Finds” at the Fancy Food Show in San Francisco in January. Yum Sugar, part of the Sugar Inc. media network, described Maple Ice as “thick and rich, but light, and not overly sweet.” The company’s core product, Jakeman’s Pure Canadian Maple Syrup, has won “Canada’s Best Tasting Maple Syrup” in national blind taste tests and the “Most Preferred Brand” in Shelf Life magazine. “In addition to Maple Ice, we’ll be showing our maple syrup in great new bottles, along with our Maple Cream Cookies, Maple Sugar Candies, Granulated Maple Sugar, Maple Tea and more,” says Bob Jakeman. The company’s current duty free customers include Hudson Group, Paradies Shops, ADF, Host, Disney World and Aldeasa.

Guest writer


erfetti Van Melle (PVM) is an Italian/Dutch company specializing in sugar confectionery. We are currently ranked the number three company worldwide based on net sales for both domestic and duty free when it comes to sugar confectionery and chewing gum. The PVM Global Travel Retail (GTR) team, located in the Netherlands, is a dedicated group of experts that specializes in products manufactured exclusively for the global travel retail market. PVM has two truly global brands: Mentos and Chupa Chups. They are world famous, and this has helped push PVM GTR into the number 10 supplier position in net sales for the total confectionery business in the Americas.


Eric Vermetten, International Account Manager, Perfetti Van Melle Global Travel Retail

About three years ago, PVM GTR entered into a new phase of its operation, with a new team. It was determined that an important area of focus should be the Americas. In the course of these three years, we have built strong partnerships throughout the region: in Canada (DFX Distribution), the US (Abbott Duty Free Confections) and in South America (Y. Lucas-Calcraft). In Central America, we supply directly to the retailers, and in the Caribbean we are currently 132

looking for a distribution partner. Confectionery sales in travel retail in the Americas have seen impressive increases in 2010. In fact, during the first half of 2010, this region represented the fastest growing region. We believe there is even more potential for growth for the following reasons: ■ While worldwide consumption of chocolate and sugar confectionery is almost equal, this is not represented equally in duty free shops. In travel retail, the ratio is 90/10 in favor of chocolate. We firmly believe that a more equal representation of chocolate and sugar (50/50) would help boost sales and would positively influence footfall, conversion and basket spend. We will be working towards achieving this ratio in the years to come. ■ Secondly, there still exists an opportunity to generate more sales at the checkout. We are willing to play a leading role in projects aimed at improving checkout propositions by setting them up with a perfect mix of chocolate and sugar confectionery, which would further increase clients’ basket spend. Sugar confectionery can play an important role at the checkout because that is where the last minute impulse purchases are made to meet the need for refreshment and immediate consumption. ■ Retailers in the Americas will increasingly realize there is a tremendous opportunity for sugar confectionery. By optimizing their checkout proposition they will drive further growth in their confectionery category – higher than the total market growth. We can help make that happen. How? By offering our interesting and balanced range of exclusive travel retail products, which spark purchasing through informal gifting, children and snacking/sharing, in combination with award winning displays. For more information please contact us during or after the IAADFS. You can find us in the Cypress ballroom at 1237.


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Company News: The Edrington Group

“A significant investment” The Edrington Group releases a number of duty free exclusives in the Americas with the help of RYAN WHITE distribution partner Rémy Cointreau BY


he Edrington Group is set to create a buzz at this year’s IAADFS trade show in Orlando. The company has lately sharpened its focus in the Americas, working with distribution partner Rémy Cointreau and recently appointing Santiago Quevedo, Trade Marketing Manager & Brand Ambassador for Rémy, to spearhead the marketing, development and distribution of The Macallan, Highland Park, The Famous Grouse and Brugal Rum in airports, airlines and cruise lines.

Incomparably smooth The Edrington Group and Rémy will introduce Brugal Extra Viejo Reserva and Brugal Añejo Reserva to Americas duty free at this year’s IAADFS show. These two expressions will no doubt stand out in the competitive rum subcategory; created by Brugal’s own master rum makers, Brugal Añejo Reserva and Brugal Extra Viejo Reserva retain the incomparably smooth character typical of Brugal rums. “Brugal has taken the bold decision to create two superb aged rums which are not only distinctive and premium in their taste profile but are exclusive to the duty free market,” says André de Almeida, Area Manager UK and Global Travel Retail, The Edrington Group. “Travelers delight in finding elite products from familiar and trusted brands which they will not find in their local store. Brugal Añejo Reserva and Brugal Extra Viejo Reserva are magnificent additions to the Brugal family.” As a leading brand in a very dynamic spirits category, Brugal is receiving very substantial investment and marketing focus from The Edrington Group. With its position as the number one rum in both the Caribbean and Spain, the company sees the Americas launch as the perfect vehicle to expand the brand’s presence.

in Europe, will be launched in the travel retail channel in the Americas. “The Edrington Group’s brands have performed extremely well across the Americas, with The Macallan standing out as the number two malt whisky brand worldwide, followed by the Highland Park range and The Famous Grouse Family,” explains de Almeida. “Strong brands and continued innovation, in both consumer offerings and brand support, are keys to success for us and our retail customers.”

Focusing on luxury The worldwide growth of luxury brands is a key focus for The Edrington Group. Indeed, the company cites strong consumer interest in products that cannot be purchased in domestic markets as the key to its success in travel retail. “The most recent introductions of Oscuro to The Macallan 1824 range and the 1973 to

the Highland Park Vintage Collection demonstrate how brands can enhance the offering to travel retail shoppers seeking luxury gifts or products for personal enjoyment,” notes de Almeida. The continued growth of The Famous Grouse is also a core priority for The Edrington Group. Building on its status as Scotland’s favorite whisky for the last 30 years, it has been the second fastest growing major brand in the standard blends category over the past five years within global travel retail. Of course, given The Edrington Group’s passion for creating exclusive expressions of its most beloved brands for duty free, the supplier is also working very closely with its operator partners to ensure standout in the stores: “In all focus regions in travel retail, we are working with customers through our distributors to develop programs tailored to the local consumer and the strengths of the individual brands,” concludes de Almeida. “We’re making a significant investment in the future of our brands in the Americas.”

A strong portfolio The Edrington Group will also showcase a number of its other brands this year in Orlando. Highland Park’s Leif Eriksson 70cl and The Macallan 1824 Decanter 2nd Edition 70cl are both being released globally, while The Snow Grouse 1L, which has already proven extremely popular Brugal Extra Viejo Reserva and Brugal Añejo Reserva—both exclusive to duty free—will be launched at this year’s IAADFS show in Orlando



Along with The Snow Grouse 1L (above), The Edrington Group will also showcase Highland Park’s Leif Eriksson 70cl and The Macallan 1824 Decanter 2nd Edition 70cl at this year’s IAADFS show

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Company News: William Grant

Alongside recently installed Crystal Stag Gondolas, new wall units, podiums and lightboxes are being rolled out across key airports such as Los Angeles, Vancouver and Toronto

A new batch of The Balvenie Forty Year Old consisting of just 150 bottles will be made available again this year due to popular demand



A renewed commitment

William Grant’s appointment of Stephen Corrigan as Director Travel Retail North America is just the beginning of a focused drive toward increasing brand awareness in the Americas

ith another record year in travel retail under its belt, William Grant & Sons enters 2011 with a renewed commitment to invest in the category globally. This year sees a particular focus on the Americas with a significant strengthening of the travel retail team in this region. The company recently announced the appointment of Stephen Corrigan as Director Travel Retail North America and Pablo Boggio as Brand Activation Manager for Caribbean Cruise Lines and will shortly confirm the appointment of a new Trade Marketing Manager for the region.


The importance of exclusivity This year sees the largest investment in cutting edge merchandising across the channel that Glenfiddich has ever undertaken. Alongside recently installed Crystal Stag Gondolas, new wall units, podiums, lightboxes and visual assets are being rolled out across key airports and venues, including Los Angeles, Vancouver and Toronto, while the new golden imagery becomes the flagship for Glenfiddich in all 136

travel retail advertising and promotional activities. This new look and feel in travel retail supports the new global advertising campaign, “One Day You Will,” Glenfiddich’s largest global marketing campaign in its 124-year history.

Curiously intriguing promotions Hendrick’s continues to build distribution and following in travel retail and 2011 sees a focus on creating greater image in the Americas. The past year has seen a number of high profile promotions in the region, including branded till points with International Shoppes at JFK. “We have a number of stand-out, showstopping promotions planned for 2011,” says Ian Taylor, Global Marketing Manager at William Grant & Sons. “Our US domestic team is creating a Hendrick’s bar with HMSHost at Newark this year, which will be a real focus at the airport and will help to increase brand awareness.”

Incredible demand This year sees the launch of batch three of the highly sought after The Balvenie Forty. The Balvenie offers a truly unique range in travel


retail with two global travel retail exclusives in GoldenCask 14 Year Old and The Balvenie Forty, while the limited edition 17 Year Old Peated Cask and The Balvenie PortWood 21 Year Old are bottled at a higher alcoholic strength and are not chill filtered as they are in domestic markets.

Creating a sense of theatre For Grant’s Blended Scotch Whisky, the focus continues to be on premiumization with the continued rollout of the global travel retail exclusive 25 Year Old and the premium 12 Year Old. This is supported by the global travel retail exclusive Distillery Edition. To support the complete range of Grant’s whiskies, William Grant & Sons is installing a new range of wall bays at key airports across the globe and creating theatre in store with a series of high profile sampling activities.

A portfolio filled with potential William Grant & Sons will also be showcasing Sailor Jerry at this year’s IAADFS. With sales well in excess of 500,000 cases now in US domestic markets, the potential for Sailor Jerry rum in global travel retail, and particularly the Americas, is seen as significant. Also at the company’s stand will be Tullamore Dew. The brand is currently the world’s second largest Irish whiskey and has already become a core brand. Finally, William Grant & Sons has handled the distribution for Stolichnaya in US duty free, the US Virgin Islands and Puerto Rico since 2009. Sales have grown steadily over the past year and the activation of the brand will continue in 2011.

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Guest Writer

Pernod Ricard Americas Travel Retail cites knowing its audience as a key to success BY CHRISTOPHE LEMARIÉ Relevance is meaningful Admiral’s Lounge with special cocktails, we Everyone would like to create a campaign that is universally appealing, but the reality is that each location is different; in the words of HSBC, “a little local knowledge goes a long way.” Knowing your audience is something that should be used to its advantage. For example, the Ballantine’s Golf Championship campaign run in JFK took into account the stores’ high Asian passenger mix and tied in the major Korean golf championship. Taking your brand’s creative platform and tailoring it to suit your target market can make a great activation a dynamic one. Ensuring the concept is relevant to the brand is essential to providing the right experience for the passenger. Duty free provides a unique opportunity; a captive audience is waiting in departures ready to be engaged. We do this by working together with the airport operators and using their knowledge to create an offering that works for the market. For example, in JFK, we worked with International Shoppes to host Chivas Regal tastings outside the store, allowing us to capture passengers that might not usually enter the store. The idea was so successful that we are now creating a tasting bar that will focus on Chivas and specifically tie in with passengers flying into the Dominican Republic, a location in which we would like to increase our share of the domestic market.

Maximizing the marketing capacity Being able to maximize the marketing capacity in the forward-thinking travel retail market is important for any company to build their brand, and is commercially very important to Pernod Ricard. We use this platform to bring our brands to life and as a starting block for new campaigns before rolling them out in domestic markets.

Working together Our most successful in-store activations have been collaborative. Take Live with Chivalry, for example. We worked closely with American Airlines and International Shoppes in JFK and ran an exciting and original campaign. Not only did we engage passengers in the 138

also ran a promotion of a complimentary Chivas Regal 200ml bottle with the purchase of two Chivas Regal 1L bottles. We also handed out promotional cards in the AA lounge, encouraging consumers to visit the duty free store. By working together we were able to come up with a stimulating concept that strongly appealed to passengers. We are now in the process of working together with an airline and duty free customer allowing us to follow the travel trail from duty free to domestic markets.

Content is crucial In September 2010, we launched Absolut Berri Acai in Brazil Duty Free using high impact visuals throughout arrival and departure stores where promoters offered tastings and engaged over 15,000 travelers. Interactive installations such as tasting lounges re-created a brand’s style and atmosphere, generating consumer interest and allowing them to immerse themselves in the brand.

Keep it NEWsworthy Pernod Ricard Travel Retail’s brands are renowned for implementing innovative and experiential activations. For Chivas Regal’s Live with Chivalry campaign, consumers were asked to pledge allegiance to the Code of Chivalry and help those less fortunate by partnering with a charity. Chivas achieved stand-out by challenging consumers to set themselves apart. In order to sign up for the pledge, consumers were required to purchase two bottles of Chivas, a percentage of which was donated to the charity, while the consumer received a discount.

Know your limits Bigger isn’t always better. If it’s too complicated consumers will not have enough time to take it in and understand the messages you are trying to convey. Our Live with Chivalry campaign at Canadian border stores was one of our simplest executions, yet delivered a 200% increase in sales over two months.

Top of mind Ask any traveler which drinks brand stands


Christophe Lemarié, President, Pernod Ricard Americas Travel Retail

out in airports and most would mention Absolut. One of the leaders in in-store marketing, Absolut constantly brings the brand to life through promotions, innovative limited editions (Absolut Flavor of the Tropics and Absolut Watkins) and creative packaging (Absolut Crystal). Drawing the customer to the brand with travel retail exclusives and limited editions has become one of the most effective ways to raise awareness of a brand. By giving passengers the opportunity to take home something a bit different, we enhance their shopping experience and encourage them to look out for the next new thing from the brand next time they travel.

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CONTACT: IAN SMART, Director Business Development TEL: +44 (0) 8700 339 866 EMAIL: After Hours and After Dark are registered trademarks. Made under the authority of the trade mark proprietor. Š FenderTobacco Inc 2004 - 2011.

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The Wild Geese Irish Soldiers & Heroes multi-award winning Irish Whiskey Collection is produced for Avalon Group Inc. from a single distillery, the last independent Irish owned distillery in Ireland.


Outside North America The Wild Geese Irish Soldiers & Heroes is sold under the ‘brand name’ of “The Wild Geese Irish Whiskey” The Wild Geese, The Wild Geese Rare Irish Whiskey, The Wild Geese Irish Soldiers & Heroes and Untamed are registered trade marks. Made under the authority of the trade mark proprietor © Avalon Group Inc. 2002 - 2011.

Tasting Report

Tasting is believing

Five major players in the duty free spirits category weigh in on the importance of in-store tasting initiatives to ensure the success of their brands BY ANDREW BROOKS


e believe products do best when presented to the consumer, and there’s no better way than pouring them a dram,” says Ian Smart, Business Development Director of Protégé International. “You have to be aware of cultural senThe Ballantine’s gondola display at Los Angeles sitivities and legal matters of course, but where tastings are allowed they’ve Airport’s Tom Bradley International Terminal been very successful.” In some cases, Smart says, the success rate—how many tasters become buyers on the spot—can be as high as 50%. Irish Whiskey Collection (labelled The Wild Geese Irish Soldiers and By its nature, direct sensory contact with a product is most effec- Heroes Irish Whiskey Collection in the US) does well at tastings. At tive in driving sales when the quality of the product speaks for itself. press time, Protégé was in the process of launching a new rum under In other words, the better the product, the more effective the tasting. The Wild Geese label, with the launch supported by in-store tastings. This truth applies to limited editions just as much as it does to the Tastings offered in conjunction with promotions are especially effecbread-and-butter products. tive, Smart says. Protégé offers an exclusive miniatures “We’ve done a couple of special editions for duty free over the last gift set free with the purchase of a Wild Geese Single two years,” says Dan Rosenfeld, Regional Manager USA, for Apple- Malt or Limited Edition. ton Estate Jamaica Rum. “Last year we did a special 30 Year Old in a The “event” nature of an in-store tasting has its own run of 1440 bottles. Of course, tastings are essential for special runs persuasive impact. When a well trained salesperson— like that, but they’re just as critical to us for our ‘regular’ products, a brand ambassador—can explain in person how a because of the way Appleton rum is minimum aged.” drink is made, outline the history of the brand and Appleton pursues its minimum aging in conformity with strict shine some light on the complexities and nuances of the Jamaican requirements. When it uses the label “12-year-old”—the top taste itself, the tasting really becomes an immersive end of Appleton’s three-rum main product range—the designation means experience for the consumer. that no rum in the blend is any younger than that. “A tasting for tasting’s sake has no value,” says Peter Hottmann, Regional Sales and Marketing Manager, NAFTA Enrique Girones, Marketing Vice President, Pernod Region at Appleton Estate, underlines the importance of tastings to Ricard Americas Travel Retail. “It has to be tied a brand that emphasizes this kind of care in aging its product: “You to education. You need to be explaining can taste our minimum aging,” he says. “As a result, tastings are the cornerstone for us, and our success in Canada, the US and Mexico definitely has a lot to do with that.” things while the tasting is Tastings are also a primary method of internal going on. The customer education at Appleton. In addition to tastings at is intelligent, open to new the company’s annual meeting—and at trade messages [and] new events like IAADFS, of course—the company knowledge that they can complements the direct physical experience of use to make their own the product with education. Informally called decisions.” “Rum 101,” the education program ensures that Girones says Pernod in-store tastings are hosted by experts capable of Ricard has found that its providing detailed information and answering The Glenlivet single malt questions about the brand’s history and the process scotch whisky and Jameof manufacture, as well as illuminating the comson Irish whiskey work Dan Rosenfeld and Peter Hottmann of Appleton Estate note plexities of the different flavors. especially well in tastings. that tastings are an integral part of promoting a super premium rum such as Appleton Estate Reserve Similarly, Ian Smart notes that The Wild Geese For the Absolut vodka 144



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Tasting Report Tasting of The Wild Geese Irish Soldiers and Heroes Irish Whiskey Collection emphasize that it is the only super-premium Irish whiskey collection available on the market

brand, tastings have been used to try out new concepts and products. “You need a strong message, and well-educated people doing the tasting,” Girones says. “If you have that, a couple of minutes is all you need to maximize the communication. Keep the message consistent and credible.” Girones also believes that the tasting experience can benefit from the right addition of technology. Pernod Ricard is now working on Internet-based methods to provide follow-up resources for customers who’ve had their curiosity piqued at a tasting event—mixing suggestions, insight into how the product is manufactured, brand history and of course basic information such as buying locations. Pernod Ricard regularly offers tasting events at Canadian and Mexican border store locations, and is also forging closer partnerships with airports, shops and suppliers. “We’ve had successful Chivas Regal tastings at stores in JFK International Airport Terminal 5 in New York,” Girones says. The Glenlivet and Jameson have also been offered aboard the Royal Caribbean Cruise liner Allure of the Seas—not only at bar tastings but also through special onboard events.

Cold feet? “We generally find that when customers stop to do an in-store tasting, about a third of them buy the product,” says Robert Syner, President of Specialty Brands Wines and Spirits. The company has placed Rum Chata Cream Rum with Dynasty Dazzlers Duty Free in St. Thomas. The product has been there for several months and tastings are run in all three stores. Tastings can be symbiotic in that when US customers return home, they will often make inquiries about buying the product locally. “We`ve had calls from the distiller thanking us because they’re getting calls from Ohio, from Oregon or from Texas, for example.” The Frangelico, with its sweet hazelnut taste profile, has been well accepted by consumers, particularly in Brazil and Argentina



number of US states carrying the brand has expanded rapidly, Syner says. “We’ve had a very positive response and sales have shown increase every month since we placed it with them,” Syner explains. “Dynasty Dazzlers is one of the very few duty free operators willing to try some of the 21st-century brands being introduced and made in the US.” Syner says he finds duty-free operators generally reluctant to try tastings of the newer types of products he carries, despite the fact that a tasting is a low-outlay, low-risk way to try something new that attracts potential customers who may well wind up buying other items even if the product being tasted doesn’t interest them. “We do tastings regularly,” says Matthijs Kramer, Global Travel Retail Manager of the Campari Group. “However, it depends on the product, and it depends on the channel. Timing and location have to be chosen very carefully too.” In the Americas travel retail market, Kramer singles out successful tastings of the newly acquired hazelnut liqueur Frangelico. The brand is already a known quantity with a very high profile globally. “What’s proven to be very successful for us is what has been done with Frangelico in South America,” Kramer says. “Frangelico reacts very well to tastings promotions. The drink, with its sweet hazelnut taste profile, is very approachable for a lot of people, Brazilian and Argentinean consumers especially.” Campari plans to replicate this success in North American travel retail channels throughout this year. In Europe, Kramer says, tastings of the refreshing Campari Mojito were found to work especially well when paired with a gift offer, much like Protégé’s experience with its Wild Geese collection. In this case the gift was a high quality book centered on the Italian aperitif moment, providing aperitif preparation suggestions and ideas for accompanying snacks. “The uptake was very good with the book offer,” Kramer says. “We would potentially like to bring that to the Americas this year.” For Protégé International, tastings of The Wild Geese products emphasize that this is the only super-premium Irish whiskey collection available on the market. Not too surprisingly, airport store tastings of The Wild Geese whiskies were underway at Dublin International Airport at press time. “We’re going to devote a lot of time and energy this year to duty free and travel retail in North and South America and the Caribbean,” says Smart. “We’re targeting to try to enter these markets this year, where possible with the support of tastings. “One thing that’s very clear to us is that people like our product, and once people taste it, it confirms the visual appeal of the products on the shelf.”

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Beer Report

Beer enthusiasts this year are treated to environmentally friendly designs, the Irish invasion of America and a refreshing twist of lemonade


eineken Western Europe Export & Global Duty Free recently rolled out the new iconic Heineken bottle, completing the redesign of its global brand packaging range. The restyling effectively streamlines the bottle’s visual identity and makes the brand even more consistent and recognizable in all 170 markets worldwide where Heineken is enjoyed. The new bottle will come in different volume sizes and is currently available in duty free and travel retail in Europe, Africa and South America, with a wider rollout to continue throughout this year.The new bottle has a taller, more slender shape and a sleek look. The unique curved embossing on the neck and back of the bottle is pleasing to the touch and also acts as a fitting stamp of quality and authority. “We believe that with one recognizable bottle the global Heineken brand’s leading position in duty free will be further strengthened,” says Greg Graves, General Manager Western Europe Export & Global Duty Free. “With uniformity comes even greater impact. The bottle will reinforce the new packaging visual identity which has already been applied to the contemporary tactile can and embossed glasses that were introduced in selected markets earlier this year. As the market leader we pride ourselves on being progressive in design as well as taste.” Of course, the bottle isn’t just about aesthetics; it features a thumb 148




Russian Standard embarked on a mission to create Russia’s first completely authentic premium vodka – a spirit made from 100% pure Russian ingredients and expertly distilled in St Petersburg. Recognized in its homeland as the benchmark for excellence, today Russian Standard Vodka is one of the fastest growing spirit brands in the world.

. . . . . .

2.5 million nine-litre cases sold globally in 2010. Exported to more than 75 countries. Recognized as one of the fastest growing premium spirit brands worldwide by IMPACT magazine. The only newcomer to IWSR’s Elite Brands 2010. The most significant newcomer to the IWSR’s top 50 travel retail brands. Growth Brand Award for 2009 U.S sales growth.

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Beer Report

groove that encourages people to hold the beer in a position that offers a better grip and also keeps it cooler. In true Heineken fashion, the new bottle design also takes the environment into account. Heineken’s glass usage on a global scale will be reduced by 3% as a result of the new design. This represents an astonishing 14,000 tons of glass. “This will subsequently reduce our carbon dioxide emissions significantly,” explains Graves. In fact, given its commitment to saving the environment, Heineken is one of only 54 companies that have been invited by the UN to work toward the implementation of the Blueprint for Corporate Sustainability Leadership. Essentially, Heineken, along with the other companies involved, will be offering its expertise and advice to develop a roadmap toward more sustainable business practices. The above honor is a direct result of Heineken’s Brewing a Better Future initiative. Aimed at long-term sustainability, the project integrates 23 individual programs focused on minimizing the environmental impact of Heineken’s business. One of the major pillars of Brewing a Better Future is the empowerment of individuals and communities when it comes to their role in positively impacting the environment. “Heineken is proud to have been invited by the UN to participate in this very important project,” says Graves. “It is perfectly in line with our commitment to sustainability and will provide us with tools and benchmarks that will support the delivery of our Brewing a Better Future strategy.”

The first official Guinness Store in the US had its grand opening inside the Shoppes at Mandalay Place on the world famous Las Vegas Strip on St. Patrick’s Day, Thursday, March 17, 2011. Home to a wide range of Guinness merchandise, including unique Las Vegas products, the 1,500 square foot Guinness Store Las Vegas will feature items such as pint glasses, clothing, accessories and gift items that graphically celebrate more than 250 years of the iconic Guinness brand. Several of the clothing items for men and women will be part of the one-of-a-kind “Guinness On the Strip” clothing line, which combines the uniqueness of Guinness merchandise with the extravagance of the Las Vegas Strip. “When researching destinations for the first Guinness Store in the United States, Las Vegas immediately jumped out at us as a perfect fit,” said Patrick Hughes, Brand Director, Guinness. “We want to offer our customers an experience that they cannot find anywhere in the United States and this store will surely provide that experience.” With the largest selection of Guinness merchandise located in one venue outside of Ireland, the Guinness Store Las Vegas is a must see destination filled with true Irish hospitality. Visitors to the store will not only have the opportunity to purchase quality Guinness products, they can learn about the brewing process and the depth and richness of the Guinness brand through visual exhibitions showcasing its legacy and the strength of its advertising. Visitors will even be able to get customized official Guinness pint glasses with their name or a commemoration date of their trip to Las Vegas. Another interactive element within the store will be a unique touch screen where visitors can learn about the rich history of the Guinness brewery and even see if one of their ancestors worked for the brewery.



illerCoors is coming off a fantastic 2010 in duty free and looking to continue the upward trend this year. Sales of the company’s brands in US duty free and cruise lines were up an impressive 21% last year over 2009. While core domestic brands such as Miller Lite and Coors Light make up the bulk of the company’s sales in duty free, MillerCoors’ Director of Travel Retail & Leisure Ron Schroeder notes that Blue Moon, the up and coming craft beer in duty free, has been a “15-year overnight success.” “Blue Moon is really a rising star at the moment,” he says. “There are Blue Moon is the number one no ifs, ands or buts, craft beers are selling craft beer in the US and the most popular subcategory. has seen great success in US duty free stores along the With regard to total volume, Canadian and Mexican borders domestic local brands are still the most popular. However, if you go by percentage increases, craft brands are growing at an amazing pace.” Blue Moon is a Belgian-style wheat ale that is artfully crafted and delivers a multisensory experience that fans take pride in because of its unique liquid profile and fun orange-garnish ritual. Schroeder sees the popularity of the brand as having a lot to do with the perceived quality that consumers attach to it. “People have less money because of the economy and they don’t get to drink as much or as often as they used to,” he explains. “When they do, there’s a good percentage of consumers that perceive higher quality in a craft beer.” As mentioned, domestic brands are still the company’s bread and butter, and to that end MillerCoors is launching MGD 64 Lemonade starting May 1. It’s the same crisp, refreshing 64-calorie beer that consumers have come to know in the form of MDG 64, but with a lemonade twist. In addition to overseeing the launch of MGD 64 Lemonade and continuing to extol the virtues of Blue Moon, the multi-brand company will remain true to one of its most important principles: “We want to make sure we continue monitoring consumer preferences along the borders and have the right brands in the right locations,” says Schroeder. “What’s right for the northern border isn’t necessarily right for the southern border. It’s important we give each of our brands MillerCoors will roll out MGD 64 the attention it deserves Lemonade—a in this respect. Indeed, this crisp, refreshing is extremely important for 64-calorie beer with a lemonade twist— operators and consumers in US duty free starting May 1 alike.”

WHEN THE WORLD ORDERS ANOTHER ROUND WE GRACIOUSLY OBLIGE Discover the world’s most refreshing beers and ciders

Wine Report



aul Sapin currently supplies over 40 airlines with wine for onboard pouring. The company also works with a number of carriers for business and first class pouring. While already firmly established in the business of wine, Paul Sapin—in cooperation with APPE, a French PET (polyethylene terephthalate) company, and Novembal, a Swiss capsule company—is set to revolutionize the way wine is bought, sold, shipped and even consumed through the patenting of a multi-layer PET (MLP) bottle. “The problem with PET is that it’s a monolayer bottle,” explains Barry Geoghegan, Founder Barry Global Innovation Ltd., exclusive global travel retail agent for Paul Sapin. “That monolayer oxygenates in just six short months.” MLP bottles, which consist of one layer of PET, one layer of nylon and a third layer of PET, have been proven in

laboratory settings to last up to two years. In addition to this already significant advantage over PET, Geoghegan notes that three MLP bottles weigh the same as two glass bottles of equal size. When compared to glass, 46% more MLP bottles can be shipped in a 40-foot container. Numerous duty free operators have already seen the clear advantages of this new technology. Paul Sapin’s wines have been listed with Dufry, Aelia, ARI Middle East and Dubai Duty Free. While some purists are still resistant to buying wine that isn’t in a glass bottle, Geoghegan sees MLP bottles as having the potential to evolve as an entirely separate subcategory: “MLP bottles do not compete with the rare occasion when a fine bottle of wine is required,” he says. “There are numerous other usage opportunities wherein wine

can be consumed. The reality is that 95% of wine usage is during casual dining experiences and fun events. This is where we see the potential for MLP bottles to be a subcategory that doesn’t cannibalize the existing offer in duty free.” Geoghegan and Paul Sapin have created a range of 18 wines exclusively for the duty free industry, which include a varietal range called Vin du Paysd’Oc (Merlot, Cabernet Sauvignon, Chardonnay and Sauvignon Blanc), Chablis, Fleurie, Chateauneuf du Pape, Margaux, Bordeaux Rouge Maison Bellroche and Bordeaux Blanc Maison Bellroche. Attendees to this year’s IAADFS exhibition can learn more about this travel retail exclusive range at booth 207. Paul Sapin’s MLP bottles weigh far less than glass and have a much longer shelf life than PET bottles

" Inniskillin has introduced a new travel retail exclusive tripack to the Americas that consists of three 200mL bottles of Icewine: Gold (an oak-aged Vidal), Riesling and Cabernet Franc. The tri-pack comes packaged in a convenient travel bag with a magnetic leather clasp and a handle on the top. The bag is durable and clear, meaning that it can be reused for any number of purposes. “We don’t offer the 200mL format in single purchases, so this is truly something unique to the travel retail channel,” says Amanda Dolotowicz, Business Development Manager Travel Retail at Vincor Canada. “As such, we’re

very excited about this latest travel pack and see it as something that is perfectly matched to duty free, which is known for offering unique, exclusive items.” DFS was the first operator to list the Inniskillin tri-pack globally across its major locations. The tri-pack has also been listed with other operators in Hong Kong and Macau. “We’re continuing to gain steady momentum after the recession and 2010 was an excellent year for Inniskillin,” says Dolotowicz. “We’re looking forward this year to continuing to innovate, and the new tri-pack is one of many more unique Inniskillin offerings to come.”

Inniskillin’s new tri-pack is a travel retail exclusive that contains three 200mL bottles of Gold, Riesling and Cabernet Franc Icewine





Wine Report

avary Argentina is known in duty free circles for promoting some of the world’s finest wines. The company’s offerings have increased considerably of late as a means of giving buyers, and by extension consumers, an unprecedented range of fine wines from which to choose. In addition to its popular Argentine Wines portfolio, Savary now offers a very respectable World Wines portfolio that contains product from France, Spain, Portugal, Germany, Greece, Georgia, Romania, South Africa, Uruguay and Chile. Savary currently supplies to duty free operators in Argentina, Brazil, Uruguay, Ecuador, Guatemala and Armenia. The company is in talks with duty free operators in the Caribbean to list its portfolio there as well. It should be noted that this latest development, and indeed all of the company’s successes over the last year, has just as much to do with the supplier’s travel retail acumen as it does with the boom in new world wines. “We understand both the necessities of operators and those of travelers given our experience in the industry,” says Marcelo Bujan Kalustian, Marketing & Sales Man-


ager at Savary. “This gives us the distinct advantage of being able to work with operators to perfect everything from the product mix and furniture to the promotions and staff training.” Argentinean wines have grown exponentially in popularity across the US, the Caribbean and Canada. In many respects Savary offers the best of both worlds in that it has been a champion of Argentinean wines for years now while at the same time offering a great selection of product from all over the world. This effectively allows operators to strengthen virtually every aspect of their wine portfolio. “We’ve already proven ourselves time and again in Latin American duty free, and one of our main objectives this year is to bring this experience to US operators,” says Bujan Kalustian. “Globally, we’re also working hard to bring our products to Europe and the Middle East. These regions represent a very interesting potential

In addition to its popular Argentine Wines portfolio, Savary offers product from France, Spain, Portugal, Germany, Greece, Georgia, Romania, South Africa, Uruguay and Chile.

for the wines we offer. We plan to achieve these goals by continuing to communicate to operators not only the great potential of our wines, but also Savary’s passion for growing this increasingly popular category.” Attendees to this year’s IAADFS exhibition can visit Savary at booth 2321 to learn more about its extensive wine portfolio.

arston Group recently announced the launch of a new division, Harston Cellars, which will specialize in the distribution of premium quality and niche wines from Europe and the New World. Harston has traveled the globe during the past year to put together a portfolio of award-winning wines from leading wine-making groups and specialist wineries, initially in France, Italy, Spain, the US, Chile and Argentina. “We have been studying the wine sector within travel retail for some time; it’s clearly growing and becoming more established as a viable category which retailers are increasingly taking more seriously,” says Harston’s Managing Director Margaret Taylor. “We believe there is definitely room to introduce medium and top level wines into travel retail, aimed at an increasing population of wine connoisseurs.” Harston Cellars has formed agreements with a number of wine companies to represent them in travel retail. Highly respected vintner Michel Rolland will, for the first time, be offering his range of The Rolland Collection wines to travel retail. The Rolland Collection includes a range of Bordeaux wines with five appellations from the Right Bank as well as carefully chosen selections from Argentina, South Africa and Spain. In addition, Harston Cellars will be working with the much acclaimed Barton & Guestier, which offers a diverse range of AOC and varietal wines from the main French wine growing regions. From Chile comes the premium Montes wines (initially only available to Asia), while Harston has also agreed to represent Washington state’s oldest and most acclaimed winery, Chateau Ste Michelle and the Californian estate Stag’s Leap. From Spain come wines of the Herederos de Marqués de Riscal, a leading and pioneering company in the wine producing sector. Finally, from Italy, Castello Banfi is a family-owned vineyard estate and winery in the Brunello region of Tuscany. “We’re very excited about this new departure, and are very much looking forward to discussing our vision and strategy for wines in travel retail at The Duty Free Show of the Americas in Orlando,” notes Margaret Taylor. Harston Cellars will be exhibiting at this year’s IAADFS exhibition at booth 931.




Harston has put together a stunning portfolio of wines from groups in France, Italy, Spain, the US, Chile and Argentina

D I S T R I B U T O R • W H O L E S A L E R • R E TA I L E R

400 Lancaster St. Oakland, CA 94601 (510) 533-8260

9875 40th Avenue South Seattle, WA 98118 (206) 760-0350

329 N. Figueroa St. Wilmington, CA 90744 (310) 518-6001

701 NW 33rd St., Bldg.300 Pompano Beach, FL 33064 (954) 545-4151

Liquor Report Rémy Martin Centaure de Diamant and Rémy Martin VSOP Cannes Limited Edition will be exhibited by Rémy Cointreau at booth 113 at this year’s IAADFS exhibition

New year, new launches IAADFS is the first major travel retail show of the year, and attendees take the opportunity to put their best foot forward with hot new launches and portfolio additions BY RYAN WHITE

Diamonds and movie stars émy Martin Centaure de Diamant will be presented by Rémy Cointreau Travel Retail Americas at this year’s IAADFS. The new expression, which was created exclusively for travel retail and previewed in Cannes in October, is set to appear in key airports across the Americas including New York, Washington, Los Angeles, San Francisco, Chicago, Vancouver, Puerto Rico and also on cruise lines. The new Rémy Martin Centaure de Diamant is presented in a chiseled glass carafe with highly polished facets that set off its deep mahogany tones, topped with a silver collar and cabochon stopper bearing the centaur emblem of Rémy Martin. The carafe nestles in an elegant presentation coffret in metallic silver


with beveled edges. Centaure de Diamant consists of between 300 and 400 of the most precious eaux-de-vie selected from the coveted Grande and Petite Champagne crus and lovingly blended to enhance their individual characteristics over many years. These rare eauxde-vie each gained the highest rating that can be awarded by the House of Rémy Martin to the wine grower and distiller. In other Rémy Cointreau news, the company will put the spotlight at the IAADFS on a Rémy Martin VSOP Limited Edition which celebrates the art of cinema and the 64th Cannes Film Festival. The new Rémy Martin VSOP Cannes Limited Edition 1.5 liter magnum is dressed in dramatic black with gold-colored celluloid film to celebrate the golden era of cinema. Just 700 individually numbered Rémy Martin VSOP Cannes Limited Edition bottles will be available exclusively in travel retail

and duty free outlets in major airports around the world from March to May 2011. A oneliter limited edition will also be available. Rémy Martin Centaure de Diamant and Rémy Martin VSOP Cannes Limited Edition will be exhibited by Rémy Cointreau Travel Retail Americas at booth 113 at the IAADFS exhibition.

Bringing purity to the forefront inlandia Vodka, known for its pristine vodka and innovative package design, opens a new chapter in travel retail with the introduction of a new bottle, dubbed “melting ice.” Since Finlandia Vodka is made from the purest water in the world, the new bottle design captures the gentle ripples at the precise moment before ice moves from solid to liquid, evoking the crystal clarity of the Finlandia it holds. “Finlandia was the first global premium vodka on the market and is known for its award-winning, progressive design work,” said Jim Perry, Managing Director for Brown-Forman Travel Retail. “This new bottle once again sets the bar for stunning yet functional package design. The new design is a work of art, and we hope consumers will be as creative as possible when imagining sustainable ideas for reuse—from a


The new Finlandia bottle design captures the precise moment before ice moves from solid to liquid, evoking the crystal clarity of the Finlandia it holds

flower vase to a water carafe. If not, our high-quality glass is completely recyclable, and we encourage our consumers to be kind to nature.” The new package strived to maintain its strong connection to Finnish design. The bottle was developed through the collective effort of people close to the Finlandia brand including Finnish artists, brand architects, structural designers like Harri Koskinen, a world-renowned Finnish designer who was instrumental in the development of the prior Finlandia bottle, and Ken Hirst, an award-winning package designer based in New York. Along with the new look, the brand has revived an iconic piece of its history: the facing reindeer on the logo. The original Finlandia logo depicted Finland’s reindeer locked together while the midnight sun glows brightly above. The bottle also features a redesigned label created to bring the Finlandia brand name to the forefront and to ensure better visibility on shelves. For Finlandia’s flavors, the bold new label incorporates the color associated with the flavor into the font along with the real fruit image.

Mixing it up ONARQ Group recently announced that it has reached an agreement with Mott’s Snapple Int’l for the management, distributing and marketing of Mr&Mrs T, Rose’s, ReaLemon/ReaLime and Clamato in the majority of the Caribbean markets. As part of the new strategic direction, the brands will be repositioned, whereas the regional marketing strategy will be linked more closely to the


alcoholic beverages and a perfect fit with our current business.” Of course, MONARQ also distributes such classic brands as Tia Maria, Disaronno, Molinari sambuca, Heineken, Tattinger champagne, Pallini limoncello, Bols, Galliano, La Fée absinthe and Cachaca 51 in many markets throughout the Americas. Business has been booming for the company, largely because of the solid portfolio of quality brands that de Monchy and company have built over the years.

“The last quarter of 2010 was the best quarter ever and 2011 started above expectations.” Robert de Monchy, Managing Director, Monarq Group alcoholic beverage distribution. “Our portfolio did not include non-alcoholic mixers, and it was an area where we saw a real business synergy, so we are proud to welcome the leaders in their respective categories to the MONARQ family,” says Robert de Monchy, Managing Director of MONARQ Group. “This is obviously a great addition to our portfolio of leading

“The last quarter of 2010 was the best quarter ever and 2011 started above expectations,” de Monchy says. “Our focus has been on the implementation of Disaronno and Tia Maria. Overall it has been a very busy and satisfying time. Heineken, Tattinger champagne and Bols Liqueurs were top performers at the end of last year, as well as Molinari sambuca, Norton and La Fée absinthe, which are brands that have great momentum.”

As for MONARQ Group’s plans for the rest of the year, de Monchy’s objectives are lucid and well thought out: “We are still a young company and look for nothing less than double-digit growth. We invest in the company beforehand, not afterwards, based on our strategic outlook and plans. This means we are ready for further growth and expansion now.”

Celebrating the traveler hile unveiled in November, traveling consumers worldwide only recently got their first taste of the highly anticipated and duty free exclusive Absolut Watkins when the roll out began in January. The smashing new limited edition flavor from Absolut, created exclusively for global travelers, reflects all of the excitement, glamour and star quality of the globetrotting fashion world. The extravagant and glamorous decor of the unique limited edition Absolut Watkins bottle was created by celebrated Swedish fashion illustrator and artist Liselotte Watkins, famous for her designs for fashion brands such as Miu Miu, Anna Sui and Barney’s, as well as for magazines such as Vogue and The New Yorker. “Absolut is a truly global brand in every sense and our global nature is one of our core brand values,” says Anders Olsson, Director Global Travel Retail, The Absolut Company. “This launch is global, just as everything we do. No


market is less important than another to Absolut. Watkins will be available in all major airport hubs in the US, Latin America and the Caribbean along with border stores in the US and Canada starting in February and March.” Americas Duty Free asked Olsson to discuss some purchasing trends that he has noticed lately in duty free. He noted that if there is one constant in the dynamic world of travel retail, it is change. Far from fearing the natural evolution of consumer preferences, Absolut celebrates this dynamism in every limited edition it produces. “Global travelers, not just in the Americas but worldwide, are an extremely advanced and progressive target group that is constantly on the lookout for something new and exciting,” Olsson explains. “For a leading edge creative brand such as Absolut, it is never enough to meet the anticipations, needs and preferences of these consumers. We must constantly exceed these anticipations, always presenting something new and thrilling—something our consumers never even knew they needed or desired.”

Absolut Watkins is rich, smooth and sensual in taste and aroma with the distinct, qualities of freshly ground coffee and notes of almond, caramel and warm chili THE AMERICAS DUTY FREE & TRAVEL RETAILING


Company News: Patron

Patrón XO Cafe is set to overtake Patrón Añejo as the number two selling spirit in the company’s portfolio sometime this year

The heart of the matter BY


Whether speaking of Patrón XO Cafe’s recent success or the company’s plans for 2011, the quality of Patrón’s portfolio is what keeps consumers and operators alike coming back for more mericas Duty Free recently spoke with John McDonnell, COO of Patrón Spirits International, about the company’s performance in 2010 and his plans for the portfolio in 2011. While emerging markets represent a significant opportunity for the supplier, McDonnell notes that there’s also plenty of room to grow already established markets such as the US. Patrón XO Cafe is set to overtake Patrón Añejo as the number two selling spirit in the company’s portfolio, and interest in Patrón’s other brands is starting to grow given the company’s now legendary reputation for making spirits of the highest quality. After a five-year success story that few other suppliers can match, the latest operator to realize the potential of Patrón’s brands is Tourvest Duty Free.


McDonnell. “Patrón XO Cafe has really taken off. South Africa is a nice tequila market and a burgeoning coffee market, and we hit at exactly the right time. We doubled our business in South Africa in 2010 compared to the year before. We monitored the sales post-World Cup and it was doubling month-on-month. In fact, we opened a warehouse in South Africa to ensure sufficient supply.”

Americas still a priority Of course, there are still plenty of markets in the Americas to continue growing the business. Given Brazil’s solid performance throughout the economic downturn, it’s no surprise that Patrón is setting its sights on becoming a staple in both the duty free and domestic markets. “Brazil is a place that I feel we have to open up given the fact that they

“People now have the confidence that everything we make is of the highest quality. As big as we’ve gotten, we’ve never abandoned the principles that got us here in the first place.” John McDonnell, COO, Patrón Spirits International

Taking to the skies XO Cafe achieved triple-digit percent growth in travel retail sales last year and is now officially available for the first time for on-board duty free purchase. Earlier this year, Patrón came to an agreement with Tourvest Duty Free to list Patrón XO Cafe on-board South African Airways starting late February. The spirit will also be listed on Kenya Airways starting April 1. Additionally, Patrón Silver tequila was listed for duty free sales on Swiss International Air Lines, where it’s already served in-flight in the airline’s first class cabin. “If you take duty free and military out of the equation, South Africa is Patrón’s second-largest market behind the US,” says 158

will be hosting the World Cup in 2014,” McDonnell explains. The US is Patrón’s number one market in terms of sales, and McDonnell’s plans for 2011 include continuing to teach airport travelers about the many virtues of Patrón Tequila: “Education and tastings will continue to be a priority for us this year,” he says. “Everyone has a tequila story and it’s really a matter of educating consumers one by one to have them realize that Patrón isn’t anything like the tequila they may remember from long ago — Patrón is crafted from 100% agave, from the highest-quality plants available, the bottles are hand-blown and the liquid is extremely versatile.”


In fact, the unrivaled quality of Patrón Tequila has also brought about increased awareness of other brands in the company’s portfolio, says McDonnell. Now that the value and profitability of Patrón Tequila is well established, operators in the Americas and elsewhere have begun listing Patrón XO Cafe, Pyrat Rum and Ultimat Vodka. “People now have the confidence that everything we make is of the highest quality,” says McDonnell. “As big as we’ve gotten, we’ve never abandoned the principles that got us here in the first place. We’ve replicated the original tequila factory twelve times to ensure the small batch recipe for Patrón never changes.”

The proof is in the pudding Patrón Spirits International posted a 53.4% increase in total travel retail sales in 2010 and the company’s total international business was up 59%. Perhaps most impressive is the fact that Patrón achieved these results without discounting at all throughout tough economic times. McDonnell is resolute in his belief in the Patrón portfolio’s unique value proposition and the numbers have proven him right. “The couponing and the discounting that’s going on in duty free with some of the premium brands is just scary,” says McDonnell. “We will not do that. We won’t denigrate the brand equity by discounting for short-term volume. In five years we’ve gone from being in zero countries to 120 countries. If you truly believe in the quality of the product you’re selling, the consumer can’t help but pick up on that feeling.”

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Company News: Russian Standard A high-profile launch of Russian Standard was mounted in selected airports in the Americas with DFS; the company is now reaping the benefits in the form of increased sales



Following the widespread popularity of Russian Standard Original and Platinum in the Americas, the company, in partnership with Rémy, goes for the gold in 2011 ussian Standard Gold, the newest arrival in the portfolio of Russian Standard Vodka, will make its debut in the Americas at this year’s IAADFS show, stage managed by distribution partner Rémy Cointreau Travel Retail Americas. Russian Standard Gold is a unique combination of Dmitry Mendeleev’s classic vodka recipe dating from 1894 using the finest Russian ingredients and carefully selected extracts of Siberian ginseng, or “golden root” in Russian, providing it with an exceptionally soft taste. After being previewed at IAADFS in Orlando, Russian Standard Gold will be launched with International Shoppes in New York JFK in May before being rolled out across the Americas. We recently caught up with Walter Kooijman, Global Duty Free Commercial Director at Russian Standard, to discuss the developments leading up to this important launch, which follows a year of startling success in the Americas travel retail channel for Russian Standard Original and Platinum.


A flourishing partnership “I can tell you that 2010 was a fantastic year for Russian Standard Vodka globally and in Americas duty free in particular,” says Kooijman. “We significantly increased our distribution across all countries in the Americas. Last year was also the first full year that we worked with Rémy Cointreau GTR as a our partner in the American travel retail market and we are very positive about the partnership both in terms of distribution and—even more importantly—brand activation.”

Given Russian Standard’s inimitable quality and traditional production methods, tastings have obviously played a big role in educating travelers in the Americas. However, while tastings were extremely important to Russian Standard’s strategy last year, they were only one component of a much larger plan. Working with DFS, the supplier mounted a high profile launch with brand promoters and visual displays in frontline stores in Los Angeles, San Francisco and New York JFK. Russian Standard Original and Russian Standard Platinum were featured in the promotion, which included large billboards and light-box advertising displays.

Spectacular results

Consistency is key

“In terms of concrete sales performance, the results have been spectacular,” asserts Kooijman. “The sales increase ratio went from 1 in 2009 to 20 in 2010. Sales of Russian Standard Vodka with DFS specifically also continue to be impressive at +90% since the high profile promotion launch, according to Kooijman. He notes that he is “extremely satisfied” with these results and that the promotion has made the appropriate impact on consumers in terms of communicating the brand’s value.

Vodka is a highly saturated subcategory, and as a result products must stand out aesthetically and in terms of taste. Russian Standard has proven to be somewhat of an upstart in the Americas, finding success on the shelf and critical acclaim for its traditional recipe and taste. While still relatively small compared to some other vodka brands in travel retail, Russian Standard is making big waves in a category that is notoriously difficult to crack. “We are confident that we have strong grounds to take a leading position in the future,” concludes Kooijman. “This is confirmed by our recent performance. During tastings we see that the message of our genuine, premium vodka from Russia gets through to the consumers; it is a clear and credible reason for shoppers to believe in and choose our brand. At this stage, the key to success is remaining consistent in bringing our story to the American consumer.”

Setting new goals “Our key objective for 2011 is to continue recruiting new consumers for the whole vodka

“2010 was a fantastic year for Russian Standard Vodka globally and in Americas duty free in particular.” Walter Kooijman, Global Duty Free Commercial Director, Russian Standard 160

category and for Russian Standard Vodka in particular,” Kooijman explains. “With that in mind, we’ll be further focusing on our flagship entry level SKU, Russian Standard Original, with a ‘Buy two for the price of one’ promotion through the first half of 2011.” Made to Dmitri Mendeleev’s classic formula from 1894 and using only the finest Russian ingredients, Russian Standard Original is the finest expression of authentic vodka which embodies a perfect balance of remarkable smoothness and traditional wheat flavor. Russian Standard will also be communicating these virtues to consumers in 2011 with the input of a brand specialist in San Francisco Airport.


Sweet Life

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Company News: WEBB and BB&R

WEBB and BB&R Spirits team up to introduce the Americas to No. 3 London Dry Gin at this year’s IAADFS exhibition after a fantastic 2010 for both companies BY RYAN WHITE orld Equity Brand Builders’ (WEBB) distribution portfolio reads like a who’s who of the travel retail industry. The company represents such iconic brands as Cutty Sark, St. Germain, Flor de Caña, Armand de Brignac and Licor 43, and WEBB recently announced the addition of The Edrington Group to its domestic Caribbean business. Indeed, WEBB now has its feet firmly set in key duty free, cruise line and domestic locations in the Caribbean and Central America, working with more than 60 distributors. The company recently took on distribution of Berry Bros. & Rudd’s (BB&R) prestigious No. 3 London Dry Gin to duty free and domestic retailers in the Caribbean and Central America. WEBB will be showcasing the spirit along with the rest of the portfolio at this year’s IAADFS show at booth 1433.


Starting the year from a strong base Last year was nothing less than stellar for WEBB. The distributor was appointed in November by The Edrington Group to represent The Macallan, Highland Park and The Famous Grouse in the Caribbean, with the exception of Puerto Rico and the Dominican Republic. Furthermore, sales of St. Germain elderflower liqueur skyrocketed after steadily building word of mouth buzz and a large-scale tasting initiative with International Shoppes in JFK. Andres Consuegra, Managing Partner at WEBB, notes that the other brands introduced at last year’s IAADFS exhibition also outperformed during 2010: “Armand de Brignac is the number one rated Champagne in the world, and St. Germain was recently named Distiller of the Year by Wine Enthusiast,” he says. “Licor 43, the number one Spanish liqueur, continues to do well for us, as does Cutty Sark. Furthermore, Flor de Caña, the most awarded rum in the world, continues to grow at an impressive clip. Flor’s growth can be attributable to rum connoisseurs flocking to the 12-year-old and 18-year-old variants.” WEBB also distributes the Nestlé portfolio for duty free stores on cruise lines, and Consuegra notes that this was one of the key drivers of the company’s growth in 2010. Last year, WEBB increased distribution to 18 ships, and in the first quarter of 2011 expects to reach 27 ships. Sales of Nestlé products to duty free stores on cruise lines more than doubled in 2010 thanks to the trifecta of WEBB, Starboard and Nestlé Chocolates. “We had our best year yet in 2010,” says Consuegra. “We grew 69%, driven by both organic growth of 162

existing brands and new brands we added in 2010 to the portfolio.”

Quintessentially English “The idea behind No. 3 London Dry Gin was to produce a quintessentially English gin that would act as the key to the best dry Martini,” says Mike Harrison, Sales Development Director at BB&R Spirits. “Interestingly enough, the input for its creation came from a combination of the best London gin bartenders, writers, distillers and gin creators, including the world’s only man with a PhD in gin.” At this year’s Duty Free Show of the Americas, WEBB and BB&R Spirits will have a mixologist making worldfamous St. Germain cocktails with No. 3 Gin, Flor de Cana mojitos, Blanton’s Bourbon-based drinks and other delicious concoctions based on the rest of the portfolio. WEBB’s spirits have proven to be infinitely mixable, as will be demonstrated time and again throughout the exhibition.

The British invasion BB&R Spirits will be introducing two more spirits to the Americas this year in the form of the King’s Ginger and The Pink Pigeon. The King’s Ginger, as the name suggests, is a full-strength ginger liqueur originally created in 1903 for King Edward VII, who was actually a customer of BB&R. The liqueur is delicious as a base for champagne but equally at home with ginger ale. The Pink Pigeon, on the other hand, is a vanilla-enhanced run from Mauritius that Harrison believes can become an essential part of an exclusive night out. Harrison asserts that while US customers are buying less, they’re also opting to buy better, which is certainly a positive for both BB&R and WEBB: “The US is becoming ever more knowledgeable on brown spirits and particularly Scottish Malt Whisky,” he says. They’re no longer opting simply for the commercial brands but for different, more esoteric expressions. For a business such as ours volume is never an issue, but bringing quality products at fair prices to those appreciating the liquid will continue to be our mantra.”


Licor 43 has the distinction of being the number one Spanish liqueur and has been selling well for WEBB since its introduction to the portfolio

At this year’s Duty Free Show of the Americas, WEBB and BB&R will have a mixologist making world-famous St. Germain cocktails with No. 3 Gin

Liquor News Angus Dundee to exhibit Tomintoul and Glencadam at this year’s IAADFS 5.<: <5+,, >033 ), ,?/0)0;05. 79,40<4 :05.3, 4(3; 9(5.,: #6405;6<3 (5+ 3,5*(+(4 05 (++0;065 ;6 0;: *6473,;, 9(5., 6- :7090;: (; ;/0: @,(9D: <;@ 9,, "/6> 6- ;/, 4,90*(: (; )66;/ #/, #6405;6<3 9(5., *65:0:;: 6@,(9 63+ @,(9 63+ @,(9 63+ @,(9 63+ (5+ @,(9 63+ 05 (++0;065 ;6 =(90(5;: :<*/ (: B ,(;@ #(5. C @,(9 63+ 3696:6 "/,99@ (:2 05 0:/ @,(9 63+ 69;>66+ 050:/ (5+ #6405;6<3 %05;(.,A;/, 3(:; ;6<;,+ (: B:<79,4, :;<--C )@ ;/, =,5,9()3, 04 <99(@ #6405;6<3 /(: >65 5<4,96<: (>(9+: -964 ;/, /05( 5;,9 5(;065(3 &05, (5+ "7090;: /(33,5., ;/, ,=,9(., #(:;05. 5:;0;<;, ;/, &693+ "7090;: 64 7,;0;065 (5+ ;/, "7090;: <:05,:: &/0:2@ (:;,9: ;6 5(4, )<; ( -,> #/, 3,5*(+(4 9(5., *65:0:;: 6@,(9 63+ @,(9 63+ (5+ @,(9 63+ =(90(5;: (: >,33 (: 69;>66+ 050:/ (5+ 3696:6 "/,99@ (:2 050:/ 040;,+ +0;065: (.,+ (5+ @,(9: 9,:7,*;0=,3@ #/, 3,5*(+(4 +0:;033,9@ ,:;()30:/,+ 05 0: 56;()3@ ;/, 653@ 9,4(05 05. +0:;033,9@ 05 ;/, ,(:;,95 /0./3(5+: 6- "*6;3(5+ (5+ 796+<*,: ( 9,4(92()3, 4033065 30;,9: 6- 79,40<4 >/0:2@ 7,9 @,(9 B&,D9, =,9@ 73,(:,+ ;6 ), :/6>*(:05. ;/,:, ,?*,7;065(3 :05.3, 4(3;: (; ;/0: @,(9D: " ,?/0)0;065 C :(@: <5*(5 (3+>05 !,.065(3 09,*;69 (; 5.<: <5+,, 0:;033,9: B&0;/ ;/, 767<3(90;@ 6- 79,40<4 "*6;*/ (; (5 (33 ;04, /0./ D4 *65-0+,5; ;/(; +<;@ -9,, *65:<4,9: >033 -05+ ( 36; ;6 36=, 05 ;/, #6405;6<3 (5+ 3,5*(+(4 9(5.,: C

The Tomintoul range consists of 10 year old, 14 year old, 16 year old, 21 year old and 33 year old (pictured here), in addition to a number of special variants

Demerara spices it up

Xanté liqueur, which combines the sweetness of pears with a touch of French cognac, has already outperformed in Europe and is currently set to give liqueurs that are popular in the US a run for their money—literally. Xanté currently sells more than 1.5 million bottles a year in Scandinavia alone and is the number two liqueur in Sweden. Even more impressive than the above is the fact that Xanté is number six compared to traditional liqueurs in worldwide global travel retail based on its volumes in Europe alone. “Indeed, Xanté has experienced extraordinary sales increases over time,” says Adele Nilsson, CEO of Xanté. “While many assume that the combination of Belgian pears and cognac would produce and overly sweet sprit, Xanté is perfectly balanced and infinitely more mixable than many traditional liqueurs,” explains Nilsson. “The sugar content is 17%, which is actually half the amount of a standard liqueur.” Given Xanté’s success in Europe, Nilsson is justifiably excited to watch the next chapter in the spirit’s evolution unfold in the US: “We’re very confident that we will add to Xanté’s growing international presence by introducing consumers in the Americas to this very unique and delicious alternative to traditional liqueurs.” Xanté is not a liqueur in the traditional sense; the spirit contains a touch of French cognac and has a sugar content half that of a standard liqueur



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Finalist cocktails in the Bartender of the Year category include Hot Apple Boat, made with Bacardi Superior rum

The sixth annual Bacardi Cruise Competition announces finalists The sixth Bacardi Cruise Competition revealed the five finalists for each of the prestigious Bacardi Bartender of the Year and Bacardi Chef of the Year awards at a VIP judging event held at Miami’s The Forge restaurant. Chef Dewey LoSasso from The Forge and a team of Bacardi Global Ambassadors narrowed down the record-breaking 1,600 entries, an increase of 70% over last year, to 10 finalists. The cocktail and cuisine recipes were submitted by top bartenders and chefs from 27 of the world’s most notable cruise and ferry lines. The VIP judging event hosted an esteemed panel of judges consisting of cruise line and industry executives who selected the Bacardi Bartender of the Year and the Bacardi Chef of the Year from the 10 finalists. The honors will be announced to 80 VIP guests from the travel industry and media at an exclusive awards night on Monday, March 14. “The Bacardi Cruise Competition recognizes the talented cruise industry mixologists and chefs who are at the forefront of trends in cocktail culture and international cuisine. We are thrilled to be able to continue to support great innovation and reward those individuals who excel in their trade,” says Zachary Sulkes, Regional Manager, Bacardi Travel Retail Americas. This year’s finalists hail from a number of destinations worldwide, with multiple winning entries from Princess Lines and Royal Caribbean International making the final round.

Ian Macleod Distillers releases financial results to 2010 In a recent interview with Frank Quinones, Regional Director Travel Retail Americas/Latin America for RCP Corp., Americas Duty Free learned that last year’s introduction of rums Botran Reserva and Botran Solera 1893 have proven extremely successful for the company. He notes that both variants have been well received by the industry. “We have had a very positive reaction and word is spreading quickly, as we are been constantly approached by new markets wanting to launch as soon as possible,” Quinones explains. “2010 has certainly been a year of seeding and testing the appeal of these fine rums in the world, we are very pleased with the reception and developments.” It’s no wonder Reserva and Solera 1893 have made such a splash; Botran Rums stand out in the highly saturated rum subcategory due to their quality and uniqueness. Botran rums are made with the finest sugar cane from the Botran estate in southern Guatemala. The cane is pressed into virgin sugar cane honey before being fermented, distilled and taken to the mountains for aging to develop the rich signature flavor. For the future, Quinones notes that continuing to offer consumers more choices when it comes to purchasing premium rum is important to Botran: “We will definitely be offering new and exciting packages and items as our brand continues to gain awareness in major markets. We are convinced that this will be much sooner than expected.” Botran Rums stand out in the highly saturated rum subcategory due to their quality and uniqueness

Ian Macleod Distillers Ltd has announced improved financial results for the eighth consecutive year. The company reports that group turnover increased 22% to £31.9 million (US$52 million), while profit after tax increased 41% to £3.1 million (US$5 million). Overall stock increased by £2.3 million (US$3.7 million), taking the total stock to £27 million (US$44 million). Finally, case sales volume increased 20% and accounts for 93% of the revenue growth, and within cased sales, Glengoyne Single Malt revenue grew by 49% Ian MacLeod’s planned developments for this year include strengthening the UK business through the recruitment of Alan Wardrop as UK Sales Manager and Neil Boyd as UK Commercial Director. Visitor centre enhancements at Glengoyne Distillery are also in progress and a new warehouse will become fully operational. Leonard Russell, Managing Director of Ian MacLeod, said: “I am extremely happy with our progress over the last year. We are ahead of our internal forecasts and are growing strongly relative to our peers in the industry.” According to recently released statistics, Ian MacLeod’s group turnover increased 22%, while profit after tax increased 41%

Tequila Corralejo introduces 99,000 Horas At this year’s IAADFS show, Tequila Corralejo will be showcasing a new special edition añejo tequila called 99,000 Horas. Made with 100% blue agave and double distilled, the tequila is aged for 18 months in American oak barrels. “The liquid is a beautiful gold with copper highlights,” says Raffaele Berardi, CEO of Tequila Corralejo. “The taste is full-bodied with hints of wood mixed with subtle fruit notes.” Tequila Corralejo is also continuing to promote El Diezmo, a fusion of award-winning Tequila Corralejo and coffee liqueur. The spirit was introduced at last year’s IAADFS and Berardi asserts that it has proven popular in duty free. “In addition to showcasing these fine spirits, we’ve also appointed Magna Imports as our new distributor in Panama. Miss Mexico 2008 Elisa Najeras has also signed on to be our new worldwide brand ambassador,” says Berardi. “Our focus this year will be on continuing to expand the business, particularly in Brazil, South Africa, Korea, Japan and Israel.” El Diezmo is a fusion of award-winning Tequila Corralejo and coffee liqueur

Guest writer

Santiago Llairo, Corporate Affairs and Communications Director, JTI

Japan Tobacco International helps retailers with new approaches for increased sales in duty free BY SANTIAGO LLAIRO he importance of creating a positive shopping experience in airports for travelers is paramount. The more business shops have, the better it is for the airports and their continued development. What is overlooked too often is the importance of the adult smoker as a consumer. Smokers represent on average 1 in 5 of all adult travelers, with 1 in 2 of these buying from additional product categories, making them the most valuable shoppers. Despite this, it seems that many duty free stores fail to target these important consumers effectively. In many cases, tobacco products are not kept in sight or are located inconveniently far inside the duty free stores. Tobacco is a destination category that draws consumers into the shops where they can make their choice. If treated properly, the tobacco category can vastly improve overall business in airport shops. With 20% of adult travelers seeking tobacco products, the duty free industry stands to gain by engaging better with them. There are two complimentary approaches to achieve this objective. The first is to change how retailers engage with consumers who smoke in a responsible and effective manner. Retailers in Geneva and Amsterdam airports have already successfully developed a way to make the category and the presentation of the products clearer and more convenient for the consumer. In Geneva Airport, The Nuance Group’s new look store features tobacco properly. Schipol Airport Retail has done the same in Amsterdam Lounge 2. These developments communicate to adult consumers the value and choice that is on offer in tobacco in the shops and help drive sales to other duty free products. JTI has been working very closely with retailers to ensure that information is shared by both parties in order to maximize shop revenues. Retailers have been responding very well to the process by working together to define exactly what tobacco’s role is and should be in the store. The result is a more sophisticated, effective communication with adult smokers. The second approach is to re-think the place of the adult smoker in the airport environment. The airport environment has changed over the years to often become slightly challenging for regular smokers. In many airports an outright ban on smoking is in place. This is in addition to movement restrictions where transfer passengers cannot leave the transit area. At a time when the adult smoker is even more important to the duty free industry, there are solutions which make life more comfortable for smokers at airports. JTI has designed and built 271 smoking lounges and related facilities at 19 airports. These smoking lounges accommodate these consumers while protecting the airport’s smoke-free environment. With plans to further develop its smoking lounge programme, JTI is focused on taking even further the level of comfort, design and utilities in the smoking lounges. Key regions for these new developments are Eastern Europe and the Middle East, where further innovation and interaction will feature as part of the programme. Airports can be a destination for smokers. Tobacco can be prominent in airport shops in a “proper manner” that balances the commercial importance of the category while retailing responsibly. Projects such as the smoking lounges and the raising of standards of retailing in Geneva and Amsterdam show the benefits that arise from retailers working in close alliance with suppliers. These initiatives are about more than generating new business. They are about making the airport environment a place that caters to all travelers. They are about positively defining what the duty free industry is and what it can be.




Company News: Vapor Corp.

After years of sustained domestic growth, Vapor Corp.’s revolutionary e-cigarette brands Fifty-One and Krave are set to take the duty free industry by storm BY RYAN WHITE ince 2008, electronic cigarettes have become increasingly more popular as an alternative to smoking traditional tobacco cigarettes. Most have no doubt done a double take at some point or another upon seeing someone using an e-cigarette in a place where smoking traditional cigarettes is not permitted. Indeed, with the increase in restrictions against smoking in public places in the US and abroad, electronic cigarettes have become the way to smoke virtually anywhere. At the forefront of this burgeoning movement is pioneering e-cigarette company Vapor Corp. [OTCBB: VPCO], which offers a range of e-cigarette brands—from the rechargeable Fifty-One brand to the disposable Krave brand—to satisfy the varied needs of virtually any smoker. The company’s domestic business has exploded over the last three years, and in March, the company will exhibit at the IAADFS show in Orlando in Pavilion 2.


What is an e-cigarette? “Vapor Corp.’s e-cigarette brands are distinct from many other e-cigarettes available today, both in terms of the quality and the cuttingedge technology employed,” says Adam Frija, Director of Business Development at Vapor Corp. “Our electronic cigarettes do not emit any second-hand smoke. Instead, our products emit an odorless vapor. Our electronic cigarettes look like, taste like and feel like a cigarette, but they aren't cigarettes." The filter of the Fifty-One contains flavoring, nicotine and an atomizer that essentially vaporizes the nicotine. When you inhale, a microcomputer activates the atomizer and the battery (contained in

the white part of the e-cigarette). The end of the Fifty-One even glows when you puff it. The Fifty-One starter kit will retail in duty free for about US$100, after which time consumers will only need to buy refill cartridges. One cartridge can last as long as two packs of traditional cigarettes, and at a retail cost of US$3 per cartridge, the savings potential for consumers 168


is enormous. The Fifty-One’s battery can run all day on a full charge and the starter kit contains a charger that can plug into a wall socket or a USB port. Krave disposable e-cigarettes work in much the same way as the Fifty-One does, but at a much lower price point, effectively allowing consumers to try e-cigarettes before they decide to move up to the rechargeable Fifty-One kit.

A match made in heaven Over the last 3 years, Vapor Corp. has crossed into virtually every distribution channel available in the US, such as convenience stores, tobacco shops and supermarket chains. The company also sells directto-consumer on its website and has carved out a very respectable niche selling in mall kiosks throughout the US. The worldwide duty free channel is attractive to a company like Vapor Corp. for two main reasons, says Frija: “First of all, airports are very high-traffic areas for retail, which is what any company looks for. Furthermore, e-cigarettes are a perfect fit for the duty-free customer, for the busy traveler on the go." It has been proven time and again that smokers are very reliable customers in travel retail, with most entering stores ready to purchase on the spot. Obviously, operators have a lot to gain by listing a product that will give smokers the freedom to enjoy an e-cigarette in a number of environments where smoking cigaThe filter of the rettes is typically prohibited. Fifty-One contains flavoring, Frija feels that it’s only a matter nicotine and an of time before Fifty-One and Krave atomizer that vaporizes the become extremely popular on the nicotine shelves of duty free shops. After all, travel retail has a well-earned reputation for innovation and forward thinking when it comes to listing new products. "Vapor Corp. has increased its business exponentially year over year since its inception,” he concludes. “I have no doubt that both the traveling public and the duty free industry will see immense value in our brands.”

Rich, dark and unexpected.

Savor Macanudo 1968 The same impeccable Macanudo quality youâ&#x20AC;&#x2122;ve come to expect over the past 40 years, now with a richer, darker taste. The smoke is rich and cedary with a touch of caramel on the finish. Medium bodied and balanced. This is Macanudo 1968, the evolution of a legend. For further information on Macanudo 1968 and other General Cigar products please email or visit

Š2011 General Cigar Co., Inc

Cigar Report

The 13th Habanos Festival featured a trade fair, seminars, tastings and marriages, a master class on cigar rolling techniques and more

The biggest names in the cigar business are ready to wow consumers in 2011 with a variety of limited editions, new partnerships and truly unique offerings RYAN WHITE BY

mericas Duty Free sat down with four of the biggest names in duty free tobacco to get the latest news on purchasing trends, product releases and cigarrelated events. Whether speaking of the General Cigar-Scandinavian Tobacco Group (STG) merger and the clear strengths of the new portfolio, the 13th Habanos Festival and the release of the highly anticipated Hoyo de Monterrey Travel Humidor, or the groundbreaking work being done at Ted’s Cigars in conjunction with some of the biggest names in spirits, it’s clear that cigar aficionados have a lot to look forward to in 2011.


Last year, General Cigar saw success in the US and Honduran duty free channels with a promotion that offered what the company calls a “Honduran 6-Pack.” The release of the innovative pack was a hit with consumers largely because of its high value proposition: travelers paid for only 4 cigars, effectively receiving the other two for free. The packs contained cigars from three of the world’s most highly respected brands: Don Tomas, Hoyo de Monterrey and Sancho Panza.

“Due to the success of the original pro- larger cigars,” he explains. motion, we’re looking to introduce new conShaw notes that 2010 was a year of “solid figurations such as 4-packs and in-pack GWPs growth” for General Cigar in travel retail in this year and expanding the range of brands the Americas, with Macanudo, Don Tomas, available,” says Cameron Shaw, Director of Partagas and Cohiba performing particuSales and Marketing at General Cigar. “Pos- larly well. With the General Cigar-STG merger, sibilities include top-selling US brands such he expects continued growth “for several as Punch and Excalibur, and certain brand years to come” given the addition of the CAO extensions of Cohiba and Partagas.” and Lane Limited brands to the portfolio. Shaw sees two seemingly opposing trends “Our team of cigar masters is now able to present in the Americas at the moment. The utilize an even broader base of tobacco in crefirst, which should be ating new blends,” Shaw no surprise, is the prefconcludes. “Our goal for erence for smaller cig2011 is to continue to ars. However, cusinnovate and respond tomers also seem to be to the needs of our retailchoosing cigars with ers by providing produltra-large ring gauges. ucts and special packShaw sees these choices aging their consumers as depending primarily will desire. We have an on the smoking occaunmatched roster of sion. brands and are uniquely “People are choospositioned to bring speing smaller cigars when The two most recently launched products in the Café cial products and packthey have less time to Crème line are French Vanilla and Italian Machiato aging to the duty free smoke, and when they segment.” have more time to savor a cigar, they go for the

The popular Honduran 6-pack contains cigars from three of the world’s most highly respected brands: Don Tomas, Hoyo de Monterrey and Sancho Panza

Americas Duty Free recently spoke with Koen van Vaerenbergh, International Business Manager Global Travel Retail at STG, about the merger with General Cigar: “We now have a plethora of strong selling items that are added to our assortment,” he says. “This will provide a great opportunity to expand into many retail outlets in the Americas.” While STG hasn’t released any new prod-

The newest of Ted’s Cigars’ flavored offerings is the Grand Marnier cigar, which has already proven very popular with consumers

Fourteen years ago Ted’s Cigars began producing Maker’s Mark-flavored cigars, which has since led to a number of high profile collaborations with spirits companies

ucts yet in 2011, the company is riding high on the strength of its Café Crème offerings. Variants such as French Vanilla and Italian Machiato were released in 2010, along with Café Crème Finos Regular, Blue and Arome. This year, STG will focus its efforts on giving traveling consumers more incentives to purchase its brands in duty free. “We are concentrating on giving more value, whether it be through price-offs, promotions or gift with purchases,” says van Vaerenbergh. “This is arranged through targeting the busiest travel months for foreigners and ensuring that we have the correct product assortment available for them.”

Celebrating the Cuban cigar industry This year sees the release of Habanos’ highly anticipated Hoyo de Monterrey Double Epicure Travel Humidor. Each case contains 15 Hoyo de Monterrey cigars and is sure to please even the most demanding palettes. Only 4,000 humidors will be available for sale. “After its very successful launch at TFWA WE in Cannes, the Hoyo de Monterrey Double Epicure Travel Humidor will be rolled out worldwide in duty free through 2011,” says Gonzalo Fernández de Navarrete, Marketing Deputy Manager at Habanos. “This is a particularly exciting time for Habanos as the 13th Habanos Festival just took place from February 21–25. Over 1,300 people attended the festival and we are very pleased with the event as a whole.” Fernández de Navarrete notes that the festival has grown in popularity year over year. During the welcome reception, an exclusive concert was held at the Gran Teatro de La Habana with the participation of Maestro Leo Brouwer, recently awarded with a Latin Grammy, and his guests. During the festival, visitors enjoyed a trade fair, seminars, tastings and marriages, the International Habanosommelier Contest, a master class on cigar rolling techniques and visits to tobacco plantations.

The festival also introduced new products from Partagas and H. Upmann. The closing of the festival featured a gala dinner dedicated to Montecristo and the traditional humidor auction benefiting the Cuban Public Health System. The festival is an important celebration of the values that Habanos holds dear, made all the more important after what was a difficult year given the economic downturn and increasing restrictions on the sale of tobacco products in many duty free markets. Nonetheless, Habanos finished the year in good shape. “Habanos ended 2010 with stable results taking into account the drop in sales of luxury items in many regions,” notes Fernández de Navarrete. “Our consumers remained loyal to Habanos, but I can say that there was some downtrading last year, with aficionados continuing to purchase Habanos’ products but opting for brands with lower price points.” Despite the challenges of last year, the company saw great success with regard to its Casa del Habano franchise of premium cigar shops. “We now have 144 Casas del Habano throughout the world,” explains Fernández de Navarrete. “In 2011 we’ll be concentrating on our Cohiba Atmosphere lounges. Cohiba Atmosphere is currently present in Prague, Beijing, Hong Kong, Buenos Aires, Cancun and Tokyo. We’re hoping to increase the number of lounges in major cities as a means of providing more places where our loyal customers can find their favorite Habanos brands.”

Ted’s Cigars began making individually packaged Connecticut wrapper cigars in 1995. Owing largely to the subtle, sophisticated blend of premium tobaccos rolled by hand, the cigars quickly earned a reputation for being perfect for the everyday smoking experience. While the above has proven extremely popular with cigar aficionados, Ted’s Cigars is perhaps best known for creating Maker’s Mark Cigars fourteen years ago. Seasoned

with the famous bourbon and sealed in airtight glass with Marker’s Mark’s signature red wax, the cigars exploded in popularity and proved to be the catalyst for a number of other creative collaborations with major spirits brands. “We now offer three new cigars, the newest of which is our Grand Marnier-branded cigar,” says Ted Jackson, President of Ted’s Cigars. “We also have a Forty Creek-branded cigar. Forty Creek is a Canadian Whisky made in small batches and it’s truly an excellent spirit. Additionally, we coordinated with Dumante, Italian makers of a pistachio-flavored liqueur. Of course, in addition to these new cigars, sales of our Maker’s Mark-branded cigars continue to grow each year.” Cigar fans are notoriously discerning, and in addition to partnering with these highly respected sprits companies, the production and presentation of the cigars themselves are tantamount to an aficionado’s dream. Each cigar is hand rolled before being infused with the spirit’s flavor through a process in which, interestingly enough, the cigar never touches the liquid. This gives a subtle but unmistakable taste that is unlike any other flavored cigar on the market today. The cigars are then sealed individually in glass tubes, meaning that a humidor isn’t required—certainly a plus for any duty free operator. Ted’s Cigar’s is currently in talks with other spirits companies as a means of continuing on the innovative path that brought the company this far in the highly competitive cigar industry. “There are two more branded cigars that we would like to add to our portfolio in the near future,” says Jackson. “One would be a rum and the other a Scotch whisky. While it’s a bit too early to discuss specific brands, I can assure you that we will be keeping with our tradition of only partnering with brands that are in line with our objectives to give our valued consumers a truly one-of-a-kind smoking experience.” THE AMERICAS DUTY FREE & TRAVEL RETAILING


Company News: Imperial Tobacco



Imperial Tobacco continues innovating in the tobacco category with two new special editions to be showcased at this year’s IAADFS exhibition mperial Tobacco is launching two new special editions for its core brands Davidoff and Gauloises for 2011, both of which will be launched at the Duty Free Show of the Americas in March at booth 713. Exclusive to travel retail, the concepts indicate Imperial Tobacco’s continued commitment to and investment in the sector. They are the Davidoff Cigarettes Book Edition and the Gauloises Cube.


The timelessness of an icon The Davidoff Cigarettes Book Edition is presented in a book format to emphasize the brand’s heritage and quality in a contemporary way. Exclusive to global travel retail, this Book Edition combines the successful story of the pack design re-launch and the heritage of the brand. The book contains 200 Davidoff cigarettes which are available in Classic, Lights, One and Slim variations. The book was chosen as a synonym for

quality and timeless tradition. Materials, colors and finishes add the cosmopolitan aspect which was received so well by shoppers at the brand’s design re-launch last year. Special “bookshelves” have been designed to display the Book Edition, along with branded gondolas for standard Davidoff cartons. In support of the launch, Imperial Tobacco will run an in-store promotion, initially running in Middle East and key European airports. The promotion will offer travelers the chance to enter a prize draw for a 10-day shopping trip to New York, taking in a fashion show. Based on a touch screen mechanism, consumers are invited to answer up to nine questions from three categories—travel, fashion & design and Davidoff—within one minute. Every participant receives a special Davidoff bookmark as an instant gift and is entered into the prize draw. In addition, a free gift is being offered with the purchase of two cartons. Consumers can choose from a Davidoff ballpoint pen or notebook.

“Imperial Tobacco strongly believes in the need for ongoing innovation and new product development for the tobacco category in travel retail.” Oliver Schramm, Marketing Manager Duty Free, Imperial Tobacco The Gauloises Blondes Cube is a special edition that contains 10 packs of 20 cigarettes and is available in blue, red and yellow variations



Exclusive to travel retail, the Davidoff Book Edition combines the successful story of the pack design re-launch and the heritage of the brand

Hip to be square The Gauloises Blondes Cube is a special edition that hits shelves from May 2011. This unique Cube-shaped sleeve—designed along the lines of a Rubik’s Cube—contains 10 packs of 20 cigarettes and is available in blue, red and yellow variations. In support of the launch, Imperial Tobacco will run an in-store promotion, initially running in key European and selected Middle Eastern airports. The promotion will offer travelers the chance to enter a prize draw. Based on a touch screen mechanism, the “Packing My Suitcase” competition will ask consumers to remember pictured Gauloisesrelated items in a specific order. In addition, gift with purchase promotions will operate. Both launches will be supported at trade and consumer level; the former with advertising campaigns, trade presenters and information sheets. Additionally, there will be “holocubes” and innovative showcasing tools aimed at consumers for the Gauloises brand, along with image promotions in key airports including Frankfurt, Geneva, Istanbul, Munich and Zurich in Europe plus Abu Dhabi, Amman and Beirut in the Middle East. Other key airports will follow, along with further promotional activities in Northern Africa. “We are very excited about these special editions for 2011,” says Oliver Schramm, Marketing Manager Duty Free at Imperial Tobacco. “Imperial Tobacco strongly believes in the need for ongoing innovation and new product development for the tobacco category in travel retail. Tobacco remains a key driver for sales within travel retail, but as a supplier you cannot sit still. You must bring freshness to the category, inspire consumers and create theatre and excitement around launches. This is what we are doing with Davidoff and Gauloises in 2011.”

Tobacco News BY


Japan Tobacco International (JTI) recently announced that its full-year EBITDA grew by 10.6% in 2010. The company notes that at constant rates of exchange, the full-year EBITDA increased by 7.7%. This exceeded JTI’s growth forecast of 6.2%. Year-on-year market share continued to grow in most key markets including Russia, France, Italy and Turkey, said JTI. Furthermore, shipment volumes of global flagship brands (GFBs) increased by 6.2% from October to December 2010 compared to the same period in 2009, while total shipment volume was virtually flat. The increase was driven by growth in Russia, Italy, Taiwan and Turkey, JTI said. Core net sales excluding tax increased by 2.5% in the period of October-December 2010 at constant rates of exchange, while on a reported basis they decreased by 0.9%. In the same period, core net sales excluding tax per thousand cigarettes were US$24.4, an increase of 2.9% at constant rates of exchange.

Shipment Volume by Cluster South and West Europe: Total shipment volume grew by 2.4% in October-December (Jan-Dec 2010: -2.0%) and GFB shipments also grew by 3.0% (Jan-Dec 2010: -0.8%) compared to the same period in 2009. This growth was driven by strong performances in Italy and France. Market share increased in most key markets including France, Italy and Spain. North and Central Europe: Total shipment volume increased by 2.5% in October-December (Jan-Dec 2010: 3.1%). GFB shipments increased by 7.9% in October-December (Jan-Dec 2010: 9.7%). Market share grew in Poland and Sweden. CIS+: GFB shipments increased by 4.2% in October-December (JanDec 2010: 0.3%), driven by growth in Russia and Kazakhstan. While market contraction slowed in October-December, total shipment volume decreased by 5.1% (Jan-Dec 2010: -5.1%), with industry contraction in the Ukraine and Romania. Market share increased in Russia and the Ukraine. Rest-of-the-World: Total shipment volume increased by 6.3% in October-December (Jan-Dec 2010: 4.0%) driven by growth in Turkey and

Pictured are three of JTI’s global flagship brands, Winston, Mild Seven and Camel

Taiwan. GFB volume increased by 11.6% in OctoberDecember (Jan-Dec 2010: 7.3%). Market share increased in Turkey, Korea and Taiwan.

GFB Winston: Shipment volume increased by 7.2% in October-December (Jan-Dec 2010:3.1%) driven by strong performances in Russia, Italy and Turkey. Camel: Shipment volume increased by 3.1% in October-December (Jan-Dec 2010: 1.4%). Volume growth in Turkey and France helped offset industry volume decline and down-trading in Italy, said JTI. Mild Seven: Shipment volume increased by 11.0% in OctoberDecember (Jan-Dec 2010: 5.8%) with growth in Taiwan and Korea. LD: Shipment volume increased by 7.0% in October-December (JanDec 2010: 6.1%) due to growth in Russia, Kazakhstan and Poland.

12-month Performance Full year GFB shipment volume increased by 2.7% to 249.8 billion cigarettes (2009: 243.4 billion). Total shipment volume decreased 1.5% to 428.4 billion cigarettes (2009: 434.9 billion). Growth in the Middle East, Turkey and France was offset by industry contraction in Russia, the Ukraine, Spain and Romania. Strong pricing drove core net sales excluding tax to increase by 5.6% to US$10,223 million (2009: US$9,682 million). At constant rates of exchange, the increase was 4.8%. Core net sales excluding tax per thousand cigarettes also increased, growing by 7.0% to US$24.0 (2009: US$22.5). At constant rates of exchange the increase was 6.1%.

Tobacco House of Sweden combines the tradition of four iconic tobacco companies It was recently announced that the Tobacco House of Sweden (THS) was founded, effectively merging four of the biggest international players in tobacco. THS is made up of German cigar company Arnold André, Mac Baren Tobacco Company of Denmark, Heintz van Landewyck of Luxemburg and AG Snus of Denmark. THS is the only vendor in Sweden that can offer tobacco retail the complete portfolio of tobacco products: Swedish style snus, cigarettes, cigars, cigarillos, pipe

tobacco, rolling tobacco and chewing tobacco. This concentrated supply bundling is a great advantage for the retail market because it can access very profitable internationally well-known brands of the highest quality and profit from the expansive THS knowledge base. THS is a trusted partner for the retail market which can react quickly, flexibly and innovatively to market demands. THS opened for business on March 1, 2011 under the management of Mats Norrman. THE AMERICAS DUTY FREE & TRAVEL RETAILING


Giving Back



he worldwide duty free channel is filled with individuals and companies that see giving back as a responsibility not to be taken lightly. Americas Duty Free spoke to a number of highprofile companies to learn how they parlay their success into contributing to the greater good.


1. What charities did your company support in 2010? 2. Why do you feel it's important to support charities? 3. How much money did your company give in 2010? 4. What programs do your donations support?

Cassandra Postema, Founder 1. We have raised funds for various small charities such as The CEO Foundation, International China Concern, LOVEQTRA, Room to Read and a charity supporting victims of the Burma cyclone. 2. Both [my business partner] Dong and I graduated from Central St. Martins in London and wanted to develop a business that employs and generates income for people in need. 3. Our Dialog handbags feature a recycled trimming that is made by various small community groups. Since we launched, we have generated over US$90, 000 for these community groups. 4. Our Worldbutik handbags feature weaving and embroideries from tribal communities and cooperatives such as the Saori cooperative in Thailand. 174

Public Relations Department, Nemiroff 1. Nemiroff supports a program to repair, upgrade and install new equipment in fitness gyms all over the Ukraine. The company also supports various youth sporting organizations. Furthermore, Nemiroff spearheads a program that allows for the participation of works by Ukrainian film directors in the largest film festivals all over the world. 2. Every one of us – from the biggest to the smallest, should be responsible. If every one of us is responsible, the world around us will be better. 3. UAH 14 million (US$1.7 million). 4. Nemiroff supports We Build a Sporting Ukraine Together and Ukrainian Cinema in the World.

Violaine Creuzé, International Travel Retail Manager, Miguel Torres 1. Miguel Torres Chile donated to the Municipality of Curicó for rebuilding and improving the city’s schools after the earthquake. We also organized an action plan to distribute food and other essential items. 2. Miguel Torres’ philosophy has always been based on contributing to the wellbeing of our people and the progress of society at large. 3. Miguel Torres Chile donated a sum of €50,000 (US$67,400) to the Municipality of Curicó. 4. The Miguel Torres Foundation has worked with organizations on over 400 projects all over the world. Escuela Elemental Santa Ana in the Philippines, Escuela Maternal Torres in West Africa, the Harmony Union School District in California and Hogar Esperanza in Mexico are just a few of these organizations.


Karen Estrada, Director of Luxury Goods, ARTCO 1. We support Emmaus Medical Missions, Missioneros Del Camino, the Association of the Child for the Child and a Medical Center. 2. Based on the basic principle from St. Ignatius of Loyola of "Men for Others," we have taken that same principle and expanded it to "Businesses for Others.” It's a very simple model where we use the three T's—Time, Talents and Treasures— to give not only financially but to also give of our time and our talents. 3. ARTCO has given an estimated US$50,000. 4. Our donations have supported a mobile hospital that serves Guatemalan patients who cannot afford healthcare, an orphanage that houses approximately 100 children and an orphanage specializing in children with special needs, to name but a few.

David Ferreira, National Accounts & Travel Retail Manager, Cross 1. Cross has supported the LauraLynn Foundation in Ireland, the Aids Foundation of the Bahamas and Wildlife Trust in the UK, as well as several breast cancer awareness organizations. 2. As a prominent organization, it is key to give something back to the local and wider community. 3. Cross has contributed almost US$14,000 to charitable organizations. 4. Our donations have supported breast cancer awareness programs in the US, funding to help women pay for expenses while undergoing treatment for breast cancer, the building of a Hospice Center to care for children with terminal illnesses and the funding of local Wildlife Trust initiatives in the UK.

Unzip a new skin feeling that lasts, in one stroke. New Silk épil 7 Dual Epilator •


Braun GmbH, Dept. IAM-DF, Frankfurter Straße 145, D-61476 Kronberg, Germany, Tel.: +49 6173 30 2221, E-mail:,



LIQUOR Firefly Vodka Company: Stansfeld Scott Description: Firefly became the world’s first hand-crafted sweet tea vodka. Firefly is distilled four times, and infused with actual tea (not flavoring), blended with real Louisiana sugar cane Booth: 201

Amaretto Disaronno Company: Monarq Group Description: Disaronno is the world’s favorite Italian liqueur. On the rocks, with fruit juices, with vodka, rum or whisky Booth: 1037

TOBACCO The Gauloises Blondes Cube Company: Imperial Tobacco Description: The Gauloises Blondes Cube is a special edition for the brand, hitting shelves from May 2011. This unique cube-shaped sleeve – designed along the lines of a Rubik Cube - contains 10 packs of 20 cigarettes and is available in blue, red and yellow variations Booth: 713



Prairie Organic Vodka Company: Speciality Brands Description: This cornbased vodka is certified organic and kosher. From the corn to the stills to the bottling, Prairie is organic and has reduced the environmental impact of production significantly

Glenfiddich Age of Discovery

Svedka Vodka Company: Stansfeld Scott Description: Imported from Sweden, Svedka Vodka is distilled five times from Swedish winter wheat and contains all natural flavors. With its clean bottle design and colorful Svedka band, this vodka is a chic addition to any back bar Booth: 201

Zubrówka Bison Grass Vodka Company: Monarq Group Description: The premium quality and uniqueness of Zubrówka Bison Grass Vodka has been acclaimed worldwide, and has emerged as a leading brand in many international markets Booth: 1037

Company: William Grant & Sons Description: Glenfiddich Age of Discovery is a 19 year old GTR exclusive aimed both at gifters and whisky connoisseurs, as well as those wishing to experiment. It has a 19 year old Madeira Finish using casks sourced from Henrique and Henriques — an independent Madeira company Booth: 100

CONFECTIONERY Pretzel Pearls by Pretzel Pete Company: Alfa Brands Inc. Description: Combining authentic spices and recipes from the Orient with a unique mini-ball shaped pretzel, Pearls offer the best of East and West. Now available in 4.5oz bag in three exotic flavors including Wasabi, Coconut Curry and Szechuan Booth: 530

BAGS Kit Kat singles Company: NestlĂŠ International Travel Retail Description: The new Kit Kat Singles pack contains 12 individually wrapped 80 calorie single finger wafers ideal for portion control and calorie counting. Designed to fit the till point, itâ&#x20AC;&#x2122;s a perfect impulse opportunity Booth: 1123

Laptop Bag Company: Travel Blue Description: Each laptop bag is very practical as it includes pockets for stationery and cards and also bag is padded to keep the laptop safe and secure. The bag has a detachable shoulder strap as well as a saddle strap to make transportation easy and efficient Booth: 2404

Ed Hardy Sequin Tote Bag Company: Viva Sales Services Description: The Ed Hardy brand expands in duty free with the addition of purses and matching fashion accessories. The new Tote Bag features the signature Ed Hardy logo Booth: 2305

Animal Coin Purses Company: Dialog Worldbutik Description: Cute dino, horse, fish and bird shaped zip up purses in leatherette featuring Dialog's signature recycled fourfold trimming, a generations old household recycling technique

The Island Trio Company: Hawaiian Host Description: The Island Trio is a 15.3oz clear pack with zipper and tote handle containing 18 two-piece bars; six bars each of MacNut Crunch, Maui Caramacs, and chocolate covered macadamias Booth: 1111

Neuhaus Collection Company: Neuhaus Description: The new Neuhaus Collection consists of six refined prestige boxes, containing a selection of the best selling classic Belgian chocolates (12 up to 20 chocolates), and will be replacing the old Neuhaus Collection Booth: 2413 THE AMERICAS DUTY FREE & TRAVEL RETAILING


New & Notable American Adaptor

ACCESSORIES sWaP Company: Scorpio Travel Retail Sales Description: The complete sWaP range is now available to ground shops with a wider color choice. Ultra slim, lightweight and durable in aluminum, the headset has a unique USB charging dockable port Booth Number: 1031

Company: Travel Blue Description: The American Plug adaptor can be used in the Japan, Australia, New Zealand, US, Mainland China and other countries with similar systems. This is only suitable for appliances operating on 220/250 Volts and will not convert voltage Booth: 2404

HiQ Girl Electronic Game

Twist Range

Company: Premier Portfolio International Limited Description: A high quality color hand held game with fantastic graphics and a 2.5 inch screen. The electronic game features 25 HiQ games and five cosmetic games including Beauty and Fashion design. Easy to play and fun for all ages

Company: Whitehouse Travel Retail Description: The elegant ‘Twist’ range includes five new bracelet models that feature multi hearts on expanding bracelets with myriad stars. The 60016 bracelet with numerous twinkling stars is perfect for any occasion and any wardrobe


Company: Scorpio Travel Retail Sales Description: The bracelets come in different versions for women and men, both engineered from space-age silicone tubing, infused with negative ion powder and packed with far infrared ceramic balls and rare earth Neodymium magnets Booth: 1031

Silk-épil 7 Dual Epilator Company: Braun GmbH Description: The new Braun Silk-épil7 Dual Epilator is a hair removal device that combines the better of two worlds. Not only does it provide the best of epilation but it also gives great long lasting shaving results with superior smoothness and less pain in just one stroke Booth: 1304

Nala Company: Dialog Worldbutik Description: Sturdy leatherette shoulder bag with Dialog's distinctly recognizable fourfold recycled trimming. The trimming for Nala is made by the company’s workshop in China that employs disabled and orphaned people

Arrivé Collection Company: Tumi Description: Arrivé is designed to meet the demands of the sophisticated business professionals. Sleek and polished, Arrivé is offered in a range of travel, business and day bags. An assortment of wallets will round out this sophisticated lifestyle collection. All styles are available in classic Black and Sable Booth: 1231


Enerjii Sportii bracelets


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CourvoisierŽ Cognac, 40% alc./vol. Courvoisier Import Company, Deerfield, IL, USA. Courvoisier, the Napoleon device and Le Cognac de Napoleon are trademarks of Courvoisier S.A.S. Š2010 Courvoisier S.A.S.

The lastword

As the duty free industry is first and foremost about people, Americas Duty Free asked four light-hearted questions to top industry players as a means of providing our readers with a taste of just a few of the dynamic personalities that make travel retail shine RYAN WHITE BY

1. What is your favorite drink after a long day of work? 2. Are you a lion or a lamb? 3. What’s one item you can’t live without? 4. What’s your favorite US city to visit and why?

Rowena Holland Account Director Essential Communications 1. Either a glass of cold Sauvignon Blanc or a Cuba Libre, depending on how stressful the day has been! 2. I asked several friends and they all said lion—and there I was thinking I was a softy! 3. My kids—I am poor with them, but poorer in spirit without them. 4. Boston. I haven't been there for many years but loved the feel of the place.

Steven Candries Export & Travel Retail Director Guylian Belgium 1. A Bloody Mary, spiced up the way it has to be. 2. In fact I am an ox according to the Chinese horoscope and an Aries for ours, but I feel and probably act like a lion—Or am I a lion in sheep’s clothing? 3. I can’t live without arguing. My wife complains about this constantly. However, if it is an item, it would probably be my phone. 4. I am not a regular in the US and as a Flemish-Belgian I would miss the cultural heritage of a marketplace, old style cafés and houses and narrow, cobbled streets. However, if I have to choose, it would be San Francisco. It is a busy, colorful and beautiful town.

Frederic Porchet Marketing Manager Nestlé International Travel Retail 1. A beer – no doubt about that! 2. Lion, definitely. Lion is also the name of a great snacking bar from Nestlé… full of energy! 3. My iPhone for the music it carries 4. Eloy, Arizona. It’s in the middle of nowhere, with nothing else to do but skydiving! A real retreat.

Torben Vedel Andersen Director of Global Duty Free Belvédère Duty Free 1. My true favorite is Coke Zero, but let us beef it up for the occasion with a maraschino cherry and a lime wedge. 2. When I was younger I probably saw myself as a lion but experience has told me that a softer approach is often much more efficient and works better and longer… so a ram? 3. My wife and kids obviously, and books. My iPod and swimwear are also good companions on my many long travels. 4. The United States is close to my heart and the South Florida/Miami area is my second home in many ways. I have been here so many times over the years and some of my best friends live in Florida.

Kate Teagle Public Relations Consultant 1. Depending on my next move, a glass of Merlot or a cup of Earl Grey. 2. A lioness that fights to protect and survive, then sleeps in the shade. 3. Mascara. 4. New York for its intensity and vivacity.



José B. Chao President Horizon International Duty Free 1. A cold beer, Heineken. 2. A lion. 3. My home. 4. New York—it is always exciting and full of great people.

Crossword Test your knowledge of the people, places, products and organizations in the Americas duty free industry! If you get stuck, look at the page number after each clue for a hint. Good luck! 1















17 19






23 25








32 33




37 38 39





1. 2. 4. 8. 10. 11. 12. 14. 15. 16. 18. 19. 23. 26. 27. 28. 31. 32. 33. 36. 40.

Down Economic powerhouse of Latin America Popular Italian liqueur Popular maker of children's gifts DFA's _____ Falic Location of HKG's flagship store Designer of Absolut's latest limited edition General Manager of JFK Airport New month for the 2011 ASUTIL conference A curiously delicious gin CEO of Parbel Location of MAC's new pop-up store Centaure de Diamant maker Mannah Duty Free Marketing Manager COO of Duty Free World The Edrington Group's _____ rum Hosts an annual cigar festival Duty free operator _____ China Popular duty free category Dialog Worldbutik purse brand Sweet tea vodka Recently merged with General Cigar

1. Brazil 2. Disaronno 4. Wandering Monkey 8. Leon 10. Laredo 11. Watkins 12. Spampanato 14. June 15. Hendrick’s 16. Labarta 18. Soho 19. Remy 23. Conci 26. Cardoso 27. Brugal 28. Habanos 31. Shopping 32. Spirits 33. Nala 36. Firefly 40. STG

Across Hobo International anniversary number Successful Spanish operator Art Director of Americas Duty Free magazine LeSportsac's latest artist in residence Popular Sanrio character Maker of premium 3D glasses Roberto Crom of Buch + Deichmann Vapor Corp. brand Finlandia brandowner Popular Perfetti Van Melle brand International Association of _____ Duty Free Stores John _____ of Patrón Tequila Hudson News owner Imperial Tobacco Brand Extract in Russian Standard Gold Location of this year's TFWA AP Welcoming Cocktail CEO of Interbaires Chivas Regal's The Age _____ Popular watch brand Switzerland-based chocolatier

3. Twenty 5. Aldeasa 6. Balanquit 7. Jeremyville 9. Hello Kitty 13. Polaroid 17. CEO 20. Krave 21. Brown Forman 22. Mentos 24. Airport 25. McDonnell 29. Dufry 30. Gauloises 34. Ginseng 35. Raffles 37. Leal 38. Matters 39. Festina 41. Frey

3. 5. 6. 7. 9. 13. 17. 20. 21. 22. 24. 25. 29. 30. 34. 35. 37. 38. 39. 41.

Smoking Kills


The Americas Duty Free & Travel Retailing (ISSN 0962-0699) is publishedby GlobalMarketing Company Ltd., distributed throughout Central Ameri...