AMERICAS DUTY FREE

NOVEMBER/DECEMBER 2011 • VOL 21, NO 4

CANADIAN ISSUE 2011

The voice of FDFA p.

8

Canadian border stores p.

16

Unique FDFA exhibitor p.

22

New & Notable p.

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Letter From The Editor

A one of a kind industry xecutive Director of the Frontier Duty Free Association (FDFA) Laurie Karson calls the organization’s yearly show, which takes place this November at the Hilton Hotel, a “family-oriented” occasion. Indeed, more than anything else, it is the camaraderie displayed at the convention that makes it unique among duty free events the world over.

This year’s show is set to dazzle once again, with keynote speaker Doug Stephens, known as Canada’s Retail Prophet, speaking on the topic of social media. Attendees will also get the chance to see numerous new products as the trade show portion of the event makes a triumphant return this year. Of course, the FDFA provides delegates the opportunity to network at a variety of social get-togethers, which this year will include a welcome reception and silent auction, the Pernod Ricard/Labatt Hospitality Lounge and the Imperial Tobacco-sponsored gala evening.

While land border duty free sales have remained essentially flat this year with the exception of a few standout months in the Pacific region and Ontario, it’s no small comfort to know that the same support network that exists at the annual FDFA show also permeates the Canadian duty free industry as a whole.

We’re looking forward both to seeing our industry friends at this year’s convention and getting down to the business of continuing to strengthen Canadian duty free.

Kind Regards,

E

Hibah Noor, Editor hibah@dutyfreemagazine.ca

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.

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.

November/December 2011, Vol. 21, No. 4. 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 www.dutyfreemagazine.ca PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca

EDITORIAL DEPARTMENT EDITOR Hibah Noor hibah@dutyfreemagazine.ca

ADVERTISING SALES ADVERTISING & MARKETING MANAGER Kim Carrera kim@dutyfreemagazine.ca CIRCULATION & SUBSCRIPTION MANAGER Deepa J deepa@globalmarketingcom.ca

CONCESSIONS, LIQUOR & TOBACCO EDITOR Ryan White ryan@dutyfreemagazine.ca ART DIRECTOR Patrick Balanquit patrick@globalmarketingcom.ca CONTRIBUTORS Zuhair Kashmeri

NOVEMBER/DECEMBER 2011 • VOL 21, NO 4

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The voice of an industry Americas Duty Free speaks with FDFA Executive Director Laurie Karson about this year’s show and the unique opportunities it presents to suppliers and buyers alike

Contents 6 12 14 16 19

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IN BRIEF DFX mini-makeover stations promote customer interaction, drive sales ■ Airline ancillary revenue soars to US$32.5 billion worldwide in 2011 ■ WestJet named one of Aon Hewitt’s Best Employers in Canada ■ Air Canada and SriLankan Airlines announce new code share deal ■ Importer Carl Brandt and Alfa Brands join forces

Room to move

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LS travel retail opens a new Boutique iStore at Toronto Pearson and inks a deal with ZoomSystems to sell highend consumer electronics using convenient automated retail systems

CANADIAN BORDER STORES

A mixed bag Canadian border stores experience different trends across the various provinces

Fresh frontiers Exhibitors in this year’s FDFA show run the gamut, from high end fragrances and exotic jewelry to practical products that make travel less of a hassle

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COMPANY NEWS: ACI BRANDS

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COMPANY NEWS: HALEYBROOKE INTERNATIONAL

Staying optimistic Although Canadian land border duty free sales have flattened out of late, Executive Director of the FDFA Laurie Karson sees plenty of reason for optimism

Canadian champion ACI Brands grows into its role as a major Canadian distributor across an expanding range of brands and categories

Bucking the trend Despite continuing economic difficulties in the US, Haleybrooke International proves that a stable of hot brands and a healthy dose of duty free knowhow can spell success north of the border

Staying ahead of the game

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

FDFA EXHIBITORS

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OPERATOR NEWS: IMPORTATIONS GUAY Despite flat sales during the first three quarters, renovations and marketing initiatives ensure Importations Guay will be more than ready for an eventual rebound in US cross-border travelers

TFWA World Exhibition attendance up 9%

INDUSTRY NEWS

OPERATOR NEWS: LS TRAVEL RETAIL

A clear winner

TFWA WE REVIEW

A packed Palais was a perfect testament to the success of the TFWA World Exhibition this year

OPERATOR NEWS: AER RIANTA INTERNATIONAL ARI opens two stores at James Armstrong Richardson Airport’s new terminal and looks forward to having a bit more space to spread its wings in Winnipeg

4

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ASSOCIATION NEWS: FDFA

38

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Airline ancillary revenue soars to US$32.5

In Brief

billion worldwide in 2011

ncillary revenue has become a crucial component in the global airline industry’s profit toolbox. The International Air Transport Association slashed its 2011 industry profit outlook to US$4 billion and revealed that carriers will spend US$10 billion more on jet fuel this year.

The US$32.5 billion contributed by ancillary revenue has lifted the airline industry from a loss-making position and continues to provide a very effective hedge against runaway fuel bills. Earlier this year, Amadeus and IdeaWorks reported the ancillary revenue disclosed by 47 airlines in 2010. These statistics were applied to a larger list of more than 200 airlines to provide a truly global projection of activity for 2011. The Amadeus Worldwide Estimate of Ancillary Revenue for 2011 is the second year Amadeus and IdeaWorks have undertaken the task of calculating global ancillary revenue activity.

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DFX mini-makeover stations promote customer interaction, drive sales FX Distribution, which distributes luxury goods from a range of designers under exclusive Canadian distribution agreements, likes to focus on mini-makeover stations in the cosmetics departments to maximize sales. Dior was the subject of one of its recent mini-makeovers.

The service offers customers a full make-up application in 15 minutes, in what is virtually a one-on-one setting. Dior has dedicated time to provide a demonstration application that helps to get the beauty advisors up to speed and make them more comfortable with the products, also providing additional guidance on advanced selling techniques and giving each beauty advisor professional make-up brushes. There is also a “Flash Demo” that runs for about two minutes and covers lips and cheeks.

“This is an ongoing customer service, and in many cases the customer will purchase what has been used at that time,” says Alexandria DeBellis, VP of Marketing & Sales, DFX Distribution. “We’ve seen a double-digit increase in make-up since we have started this program.”

The photo shows Beauty Consultant Elisabeth Robert applying the new Diorskin Forever Foundation, and the Instant Lash Plumping Diorshow Extase mascara, at B.H.T. de Philipsburg’s in-store mini-makeover station.

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Air Canada and SriLankan Airlines announce new code share deal ir Canada and SriLankan Airlines announced today a code share agreement that will make flying between Canada and Sri Lanka more convenient. "Air Canada is pleased to code share with SriLankan Airlines, the national carrier of Sri Lanka, as this will enhance access from Canada to Sri Lanka," said Yves Dufresne, Vice-President Alliances, International Operations and Regulatory Affairs at Air Canada. "The travel market between Canada and Sri Lanka has been growing at a double-digit rate and this agreement will allow customers to easily connect at our main European gateways of Frankfurt, London and Paris.

“The code share agreement gives us the ability to offer customers connections between

A

6

Air Canada and SriLankan on a single ticket itinerary, checked-through baggage and other benefits that will create a seamless travel experience,” Dufresne continued.

"This code share between the two national carriers opens up several key points in Canada in addition to the main cities of Toronto and Montreal and will be a tremendous boost to tourism between the two countries. Additionally, Canada is home to Sri Lanka's largest expatriate community and we greatly value this opportunity to provide a seamless service to our people who live in Canada on SriLankan Airlines with our code share partner, Air Canada," said Mr. G. T. Jeyaseelan, Chief Marketing Officer, SriLankan Airlines.

Air Canada is Canada's largest domestic and international full-service airline, providing

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

scheduled and charter air transportation for passengers and cargo to more than 175 destinations on five continents. SriLankan Airlines, the national airline of Sri Lanka, is an award-winning carrier with a firm reputation as a global leader in service, comfort, safety, reliability and punctuality. Launched in 1979, SriLankan is currently expanding and further diversifying its wide range of products and services in order to drive the country's ongoing boom in tourism and economic development.

The travel market between Canada and Sri Lanka has been growing at a double digit rate and the new code share agreement will make flying between the two countries easier than ever

ALFA Brands will distribute the prestigious Carl Brandt products in US duty free

WestJet named one of Aon Hewitt’s Best Employers in Canada estJet recently announced that it has placed third in Aon Hewitt's Best Employers in Canada study, up three spots from last year, and is the only airline to make the list. Conducted annually, the study rates the 50 best employers in Canada through surveys conducted by Aon Hewitt of more than 100,000 employees across Canada.

"To be recognized as one of Canada's best places to work, and for having some of the most engaged employees in the country, is particularly meaningful to us because this honor is reflective of WestJet's collective attitude and commitment," said Ferio Pugliese, WestJet's Executive Vice-President, People Relations and Culture. "Our employees—WestJetters—have told us how they feel about working here, and we're very proud of the work they do each day to show that we're not just another airline. We owe this prestigious recognition to WestJetters' commitment and contributions; after all, we are a success because of them."

WestJet's non-union employee association, PACT (Proactive Communication Team), supports a great employee experience by collaborating with both WestJetters and WestJet leadership. "Having open conversations about what's important to both the success of WestJetters and our airline will continue to be a strong focus for us, and is certainly one of the many reasons we're very proud to named one of Canada's best employers," said Captain Don Hougan, Chair of PACT and a member of WestJet's Board of Directors.

WestJet offers scheduled service throughout its 71-city North American and Caribbean network. Named one of Canada's best employers, WestJet pioneered low-cost flying in Canada. WestJet offers increased legroom, leather seats and live seatback television provided by Bell TV on its modern fleet of 96 Boeing Next-Generation 737 aircraft. With future confirmed deliveries for an additional 39 aircraft through 2018, WestJet strives to be one of the five most successful international airlines in the world.

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Importer Carl Brandt and ALFA Brands join forces arl Brandt, Inc. appoints ALFA Brands as its duty free and travel retail agent in the US market.

One of the leading importers of continental gourmet specialties, Carl Brandt, Inc. enjoys a coveted reputation in the food industry. The firm, along with its co-partners, provides a selection of choice food products in appealing packaging.

Susanne Witte Settineri, President of Carl Brandt, Inc. says: “Our sales in the US are driven by an overriding insistence on proven quality and timely innovation in products and packaging.”

Many selections are purchased for instant pleasure, such as the German chocolate bars, others are chosen as gifts. Top German brands include Hans Freitag cookies and wafers.

For more information contact ALFA Brands at tel: (336) 7752995, Fax: (336) 775-2996 or email: ahildreth@alfabrandsdfs.com

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ALFA Brands Inc. Duty Free-Travel Retail Exclusive Agent Tel: (336) 775-2995, Fax: (336) 775-2996, ahildreth@alfabrandsdfs.com

Association News: FDFA

The voice of an industry

L

aurie Karson, Executive Director of the Frontier Duty Free Association (FDFA), recently spoke to Americas Duty Free about the organization’s 2011 conference and trade show. She also touched on recent Canadian duty free sales statistics and the FDFA’s national marketing and branding initiative.

She made it clear that she sees plenty of reason for optimism over the coming months when it comes to sales at Canadian border duty free stores.

Americas Duty Free: As of mid-October, how many attendees are registered?

Laurie Karson, Executive Director, FDFA: Currently we have 188 registered delegates and counting. Last year, we had a total of 219 delegates. We are very pleased with the current number of registrants, as we have already surpassed our targeted goals for this time of year. We anticipate having over 200 final registrations. In fact, we have already surpassed our supplier registrants from last year.

ADF: How many exhibitors have signed up?

LK: We have actually sold out our trade floor portion of the convention. Given that the trade floor space is smaller in size than that of last year’s, we have only been able to sell 29 trade floor booths.

However, we have had a further demand from new supplier members to participate on the trade floor as a new member. Therefore, we have created a special suite program for these new members whereby they will be showcasing their wares in a high traffic area of the hotel with a special sign indicating that they are new members.

ADF: Do you see the exhibition portion of the show growing in the future?

LK: Yes, we do see the exhibition portion of the show growing. Last year, our Convention Committee and Board examined the merits of the trade floor both from a buyer perspective and from the perspective 8

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Americas Duty Free speaks with FDFA Executive Director Laurie Karson about this year’s show and the unique opportunities it presents to suppliers and buyers alike BY

RYAN WHITE

booths along with This year’s FDFA show will feature 29 trade floor Hotel in Niagara Falls numerous suppliers occupying suites at the Hilton

of the booth representatives. We asked targeted questions to understand if these new members were truly conducting valuable business and if our buyers were seeing the types of products that were of interest to their stores.

At the end of the day, new suppliers who have seen success at the convention often note that networking with the buyers at the social events is important in establishing future business relationships. Many have also noted that attending one show is not enough to prove success, and that ongoing dialogue with the duty free owners is critical.

ADF: In terms of the conference, what can attendees expect from this year’s FDFA show?

LK: The primary goal of our convention is to facilitate business between our suppliers and buyers. Delegates that attend our show know that we are not the largest show in the duty free world, but we are very much a family-oriented show. Most of our members have known each other for many years and new members are always treated with respect.

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INTRODUCING A NEW PERSPECTIVE

Association News: FDFA

As a priority, our Convention Committee focuses on the importance of developing longstanding business relationships and develops a convention that fosters these relationships. We hope that each delegate leaves the show with a smile on their face from seeing longtime friends, developing and fostering their business and understanding what makes duty free in Canada in so special and unique.

The FDFA is also pleased to welcome keynote speaker Doug Stephens, considered Canada’s Retail Prophet. He will be speaking during lunch on Tuesday, November 15 from 12:30 pm to 1:30 pm. Many of our stores and supplier members are now venturing into the social networking world to generate business and create awareness. Doug will answer the question of how a business develops these social networking plat-

Americas Duty Free catches Patrón enjoying last year’s Opening Cocktail

The silent auction to benefit Child Find Canada will take place again this year with numerous prizes generously donated by FDFA members; a penny auction will also be added

“The FDFA works hard every day to keep duty free vital through our government relations activities, our national communications and so much more.”

Laurie Karson, Executive Director, FDFA forms and measures whether or not they are successful.

ADF: With regard to social activities, what can attendees expect from this year’s FDFA show?

LK: This year we are very excited to be holding the show in Niagara Falls, Canada at the Hilton Hotel. This particular hotel property has a brand new tower with first class amenities and a luxurious look and feel. We think that the delegates will appreciate the suite layouts, the hotel lobby bar, the various restaurants within the hotel, the proximity to the Casino and so much more.

Attendees can also expect a fantastic Welcome Reception, where we will be expanding our annual silent auction, also including a penny auction, that donates its funds to Child Find Canada. Many of our delegates do not realize that the FDFA is the largest corporate fundraiser in Canada for Child Find Canada. At the Welcome Reception we will also be having an “old school” photo booth to take some fun and campy photos.

We are also bringing back the Pernod Ricard/Labatt Hospitality Lounge for two nights of the convention (Monday night and the post gala night). Based on delegate comments, we are not holding a Fun Night on Tuesday as so many of our members have private business dinners the evenings of Monday and Tuesday.

For the conclusion of the convention, we are very pleased to have Imperial Tobacco Company continue on as our Platinum Sponsor.

The gala plans are well underway, and it promises to be an evening of sophistication, style and great entertainment with a tantalizing gourmet meal for all our guests.

ADF: How is the marketing campaign working out? Are any new projects set for the near future?

LK: Everything is going extremely well. Since February, over 50,000 new unique web visitors have come to our new website and it has been viewed in 79 countries. We now have a social media platform that includes Facebook, Twitter and our own duty free blog. The objective of our national marketing efforts has never been to take over our stores’ marketing efforts but to promote our industry to the con10

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

sumer, specifically the Canadian consumer.

The website contains useful information such as who we are and where our stores are located in addition to raising awareness of Canadian duty free in general. There are so many shoppers who simply don’t realize that they can shop at Canadian duty free stores before going to the US. On top of this issue, many customers simply don’t understand our allowance structure or even that our products offer truly great savings.

The national digital marketing efforts are aimed at demystifying these misconceptions and providing easy-to-understand concepts about shopping at Canadian duty free stores. We look forward to 2012, when we will begin capitalizing on our core efforts by implementing more online consumer contests to drive further web traffic and increase our social media communications.

ADF: Is there anything you’d like to say to FDFA members and the larger duty free community?

LK: I would like to thank our FDFA members for their longstanding support and dedication to our industry. Many don’t realize it, but the FDFA works hard every day to keep duty free vital through our government relations activities, our national communications and so much more.

Our board of directors consistently examines other similar trade associations to assess if we are truly giving our members a real value for their membership dollars, and we are confident that we are not only creating and implementing activities to create a powerful and robust trade industry association, but going beyond our members’ expectations. We hope to continually get feedback from our members—good, bad or otherwise—on our progress as our goal is to c continually exceed our members’ needs.

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Operator News: Aer Rianta International

While the stores at the new James Armstrong terminal aren’t as big as ARI’s operations in Montreal (pictured), the operator will benefit from a bit of extra space in Winnipeg

Room to move A

ARI opens two stores at James Armstrong Richardson Airport’s new terminal and looks forward to having a bit more space to spread its wings in Winnipeg

BY RYAN WHITE t press time excitement was building toward the October 30 opening of the new air terminal building at Winnipeg’s James Armstrong Richardson International. Aer Rianta International (ARI) will have two new stores in the terminal. Americas Duty Free spoke with Regional Manager – North America and Caribbean John Bolger about the company’s new digs and business in the first three quarter across its Canadian airport stores.

“In the new terminal there’s much more space and we’re in a good area.

We’re very excited about being a part of it.”

John Bolger, Regional Manager – North America and Caribbean, ARI Americas Duty Free: Can you tell us a bit about the stores in the new terminal at James Armstrong Richardson Airport?

John Bolger: This is a big move as the old terminal is closing and the new state of the art terminal opens. The terminal itself is a fitting tribute to James Armstrong Richardson, one of the aviation pioneers in Canada. We’ve got two locations—a transborder and an international store. Previously the transborder shop was in a very closed, tight location. In the new terminal there’s much more space and we’re in a good area. This will help to increase our sales potential to the US. Before the renovations we had about 117square-meters between the two stores. In the new terminal we have about 127-squaremeters. While not a huge increase, it should be kept in mind that the stores were very small to begin with. The international store is also in a better location than it was before.

ADF: Are there any plans to change the product mix or layout at the new stores?

JB: We’re going to see how things go first. We

12

will be studying the passenger profile and adjusting the product mix accordingly, but we’ll pay close attention to the stores for a couple of months before we do this. The new terminal is really impressive and we’re very excited about being a part of it.

ADF: What about the physical space itself at the new terminal will help ARI in terms of sales?

JB: As mentioned, the transborder store was extremely small. Particularly in the transborder store, if there were flight delays, there could be a lot of congestion in the area. From the planning point of view, I think the new terminal will really help us in this regard.

ADF: Across all your store locations in Canada, how has business been this year?

JB: Canadian traffic has been strong in the first nine months. Across our locations, traffic is probably up on average between 5 and 6%. Our sales are up slightly more than that, so we’re actually doing quite well.

At the same time, I can tell you we’re doing

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

better in the larger locations. Montreal has been particularly strong. The charter season was very good and the summer was phenomenal.

Usually our biggest month would be March, but July was an impressive month, probably the third or fourth best month ever.

At the smaller stores—for example Winnipeg and Ottawa—the traffic trends aren’t the same as those at the larger stores. I think part of the reason is that the airlines are trying to push the traffic toward the larger centers like Toronto, Montreal or Vancouver.

ADF: Canadian border stores have had a more difficult go of it this year than airport duty free. Why do you think this is?

JB: We’re actually also under more competition in smaller stores such as Winnipeg, Ottawa and Halifax. It’s very hard to compete with liquor prices in the US. I think we’ve felt this a bit in Montreal as well, but not as much. No doubt the land border stores are also dealing with this issue.

The LCBO reduced liquor prices in duty free and that’s going to be a big positive, I think, both for the border shops and for ARI. We’ve got to get some of those liquor sales back and this is a good first step toward that.

ADF: What categories are performing well for ARI? JB: The usual staples are selling well—perfumes, liquor and tobacco are the three strongest. Additionally, sunglasses and confectionery have shown great growth year-onyear. Godiva products were just listed in Montreal and Ottawa and they’ve been doing very well. We’ll be looking at opportunities to develop these categories further in the upcoming months.

For the moment, though, the concentration is on the new stores. We’re looking forward to getting into the new spaces and working on c increasing sales in Winnipeg.

Company News: LS travel retail North America

A clear winner

LS travel retail opens a new Boutique iStore at Toronto Pearson and inks a deal with ZoomSystems

BY RYAN WHITE to sell high-end consumer electronics using convenient automated retail systems mericas Duty Free recently sat down with Gerry Savaria, President and CEO of LS travel retail North America, to discuss the numerous and exciting new developments at the company this year. In addition to a new Boutique iStore Canada opening at Toronto Pearson, the operator has recently signed a deal with ZoomSystems to offer travelers the convenience of shopping for iStore products at automated retail systems across Canadian airports.

LS travel retail’s latest iStore is situated in Terminal 1 of Pearson Airport near domestic gate 138. The location is the third new generation concept store to arrive in a Canadian

A

Jones, Chief Marketing and Commercial Officer for the GTAA, in a recent press release.

“We know our guests are going to love the new addition and we’re very excited to have the iStore join the Toronto Pearson family.”

Savaria says LS travel retail is just as pleased to be part of Toronto Pearson’s retail offering and notes that hopes are high for the new store given the fact that the existing Vancouver locations have performed very well. “The sales productivity observed in our Boutique iStore locations has been well beyond expectations,” he explains. “Sales are exceeding projections by as much as 100%, which confirms the travelers' appetite for high quality consumer electronics that feed into their digital lifestyle.”

“LS travel retail North America is excited to continue offering travelers both innovative products and novel retailing options.”

Gerry Savaria, President and CEO, LS travel retail North America airport after the opening of two locations in Vancouver International Airport earlier in the year. The operator says that the new Boutique iStore Canada is part of Toronto Pearson’s new branding strategy, focused on enhancing guests’ experience and making every passenger journey to YYZ exceptional.

“We made a promise to our guests when we launched our new brand identity this past June to provide exciting and innovative shops and services at the airport,” said Pamela Griffith14

He says that a high percentage of the iStore’s sales are achieved through Apple merchandise, with the iPad tablet standing out as the clear winner. This, of course, is in line with market data, with recent estimates indicating that the iPad represents more than 95% of all tablets sold in the US. In addition to the popular products sold, Savaria also notes that there is a simpler attraction to Boutique iStore for many people: “When it comes down to selling tablets and laptops, we

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

are really in the business of saving people time.

For busy travelers, time is their most valuable asset and buying in our Boutique iStore basically saves them a trip to the mall.”

Continued innovation In addition to the Pearson store, ZoomSystems and LS travel retail North America have entered into an agreement to develop an automated retail network in travel environments in Canada. As part of this agreement, LS travel retail will deploy ZoomShops that offer a range of consumer electronics, including Apple merchandise. The deal also allows for a natural extension of the iStore retail stores in Canadian airports and other travel environments.

“Our partnership with ZoomSystems in Canadian airports complements the deployment of our Boutique iStore concept quite nicely,” Savaria told us. “The automated retail systems will be branded ‘Boutique iStore’ and will carry our best-selling items, so from a procurement and replenishment point-of-view this deal makes a lot of sense.”

In addition to the above, it gives LS travel retail the opportunity to offer travelers consumer electronics and Apple merchandise in airports where passenger traffic may not necessarily be high enough to sustain stand-alone brick-and-mortar Boutique iStores. The theme of convenience continues as travelers will be able to make purchases at the automated retail systems 24 hours a day. LS travel retail expects deployment of the unit to begin this fall.

“LS travel retail North America is excited to continue offering travelers both innovative products and novel retailing options,” Savaria concludes. “With 2011 coming to a close we’re looking forward to a busy holiday season with the implementation of the new automated c retail systems.”

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Canadian Border Stores

A mixed bag

Canadian border stores experience different trends across the various provinces BY ZUHAIR KASHMERI

Toasting the LCBO

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Peace Bridge Duty Free is headlining its lower liquor prices front and centre for shoppers thanks to Ontario's markdown in government regulated prices

iagara Region’s Peace Bridge Duty Free has two reasons to celebrate at year-end 2011: The Liquor Control Board of Ontario’s (LCBO) decision to take on the US’s unregulated liquor industry by substantially lowering its mark-up and the fact the store turns 25.

In fact, Peace Bridge Duty Free plans to use the CAD$25 price point as part of its celebratory sales.

General Manager Glenn Mills asserts that the store at the Fort Erie, Ontario crossing continues to be in high gear even though sales are up only slightly. It has just introduced the Pandora jewelry line, as well as bringing in the latest Oakley sunglasses, new confectionery and electronic lines. Mills also says that travelers are buying up purses “by the caseload.”

In terms of handbag sales, luxury leather goods maker Coach is up there, says Mills, but it is the “new budget lines, the twenty dollars a pop purses, that are going by the caseload.” And if that weren’t enough, early winter will see the 25th anniversary of the store, with CAD$25 specials galore and two for CAD$25 price points.

What else is Mills looking forward to? Liquor sales, thanks to the LCBO lowering the mark-up on spirits, low-alcohol spirits and brandy sold in land-based duty free stores to 30% from 50% of the landed cost. The price drop took effect October 10.

“This has allowed us to drop the price on all our liquor,” says Mills.

“What we’re trying to do is repatriate the tourist dollars before they head over the border.”

Given that liquor was the most popular category even before the mark-up reduction, there is nowhere that sales can head except upwards.

Celebrity perfumes,

Blue Water Bridge Duty Free says that travelers are drinking less, but buying more expensive liquor

quality spirits

B

lue Water Bridge Duty Free, located 60 miles from the East Detroit Corridor, has noticed two consumer trends that have led to some reshuffling of special projects within the store: consumers are drinking less but buying the more expensive spirits, and growth in the fragrance market seems to now be driven more by the increasing frequency of new brand introductions—including celebrity and fad brands—versus the historical brands that had a very long life-cycle.

The result, says Peter Brain, Special Projects Manager for the outlet, is that the operator has “130 different SKUs of scotches… and at a crossing where day trippers who do not qualify for duty free now outnumber overnight travelers, it is a testament to our aggressive promotional program and encouraging that our Canadian customer’s average transaction size is now more than that of American customers.”

He points to the strong Canadian dollar and more importantly the lowering of the markup imposed on alcohol products by the LCBO. “We hope in the long term this makes us more competitive towards the unreg-

ulated American liquor market,” Brain says. “Michigan has much lower rates of tax on liquor, wine and beer [e.g. US$0.45 tax on a case of 24 beers and US$0.13 on a liter of wine]. Ontario’s retail prices on some products can be two to three times higher than Michigan’s prices. The mark-up reduction will afford us the opportunity to offer more competitive prices and over the long run recapture sales lost to American competitors in recent years.”

Liquor, Tobacco still in top spot at Boutique Hors Taxes

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t Boutique Hors Taxes de la Beauce Inc., located on Rte 173 just south of Quebec City, wine and spirits sales continue to be number one, followed by tobacco products and perfumes & cosmetics. Eric Lapointe, Manager, says that given the strong Canadian dollar versus the greenback, management is also hoping that liquor sales in particular, and other items in general, become even stronger.

Sales at this fast moving Quebec duty free outlet are about flat

compared with last year, but up almost 6% versus 2009. And Lapointe says they continue to introduce “hundreds of newer and newer products” every year.

“This year we’ve done well with Guess watches, new wines and new scotches,” he says. “We have noticed more liquor and wine sales with Canadians traveling to America, but not as much as we hope.”

Boutique Hors Taxes de la Beauce welcomes travelers on route 173 (Quebec) and 201 (Maine), between Quebec City and Boston. www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

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Canadian Border Stores

Smoke ‘n’ Deli...

Canucks on the horizon...

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hile several duty free stores bemoan the missing American tourists thanks to a slowdown in the American economy and don’t trust the Canadian shopper to spend enough to make up for this, a New Brunswick border store has the opposite experience. The St. Stephan Tax/Duty Free Store is seeing a large influx of Canadian shoppers. The reason: the value of the Canadian dollar has been flying high versus the greenback.

And what are these Canucks buying? John Marshall, owner of the store, tells us: “In our store the popular products are primarily alcohol and tobacco.” Marshall has not introduced any new categories or lines this year in keeping with the maxim “if it ain’t broke, why fix it?” He has let the sales cycle run and is not disappointed.

“We are waiting to see how things progress for next year before we start adding new categories,” he says, pointing out that sales have continued steadily. The store also remains unfazed by US Department of Homeland Security regulations since 9/11 given the strong Loonie and Canadians filling in for the missing Yankees.

In New Brunswick, the St. Stephan store has been around for 27 years. Marshall says that yet another reason why the store is doing fine is, “location, location, location.” The store was relocated from the old two-lane highway to a four-lane highway that goes directly into the United States.

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ltan Duty Free, located south of Lethbridge at Coutts, Alberta, continues to reel from the after effects of Alberta’s Tobacco Reduction Act. The new regulations are forcing the store to readjust, says Manager Janice Beagle.

“We are slightly down in overall sales from last year,” she says. “Tobacco is accountable for the most significant loss.”

Complying with the government’s anti-tobacco thrust has meant removing all tobacco and rearranging the appearance of the store. Beagle says this has had a significant negative effect on sales and customer perception. To compensate, the store has turned to specialty food, namely, a deli section, which is proving to be “considerably beneficial.” Its “sugar shack” is filled American souvenir with a large variety of maple syrup from Jakeman’s Maple, as shoppers may be down, but Altan's bear well as other snacks from Nestlé, Cadbury, Hershey’s, King still attracts buyers Henry’s and The Great Canadian Meat Company.

Also compensating for the loss caused by the new tobacco legislation is the strong Canadian dollar, and Canadian shoppers now account for 90% of sales. Additionally, Altan has adapted its sales strategy to include more diversified products, with an increase in accessories and clothing categories.

The store also continues to integrate special themes, such as “National Trucker Week” promotions, which Beagle says were “a great success.” Truck drivers always receive 10% off fragrances. Likewise, the store is noticing an increase in “snow birds” each winter, thanks to more baby boomers retiring.

Yet another factor, says Beagle, is the FDFA marketing initiative. “This will have a positive impact on our business,” she says. The FDFA’s slick web campaign focuses shoppers on their closest border-crossing store, provides information on duty free eligibility and gives information on special sales.

In the second half of 2011, the FDFA launched e-banner and public relations campaigns, a national supplier advertising rollout and a social networking launch with the aim of boosting 2011 sales for its 27 member stores after a 2010 that remained flat versus 2009.

Yankees on the scope...

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he events of September 11, 2011 and the resultant US Department of Homeland Security regulations were factors that certainly affected the duty free trade. Now, several duty free stores are seeing an increasing trickle of American tourists. One of the stores benefitting from increased US travel to Canada is the Atlantic Travel Centre duty free store located on Route 95 at the Woodstock, New Brunswick and Houlton, Maine border crossing.

“There has been some moderate traffic growth but not growth overall that would suggest a significant change in border trade,” says John Slipp, President of the Woodstock Duty Free Shop Inc. “We have seen a few more Americans this year and this has not occurred

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since September, 2001.” Why this sudden change in American visitors? Slipp says that some of the credit undoubtedly goes to the easing of restrictions by the US Department of Homeland Security.

Other than its special promotions, Slipp says there are no dramatic new introductions of products. Its Annual Holiday Escape Sale for

all of November features mostly alcohol, with door crasher specials such as Smirnoff Vodka 1.14-liter bottles priced at two for CAN$19.99, and half price for the second bottle of any two of the same wine purchases.

“Cigar sales have remained strong, yet scotch sales have been modest at best, but wine sales continue to grow,” says Slipp.

The Atlantic Travel Centre/Woodstock Duty Free Shop is located on Rte. 95, at the Woodc stock-Houlton Border Crossing.

Woodstock Duty Free is seeing an increase in Americans, a first after 9/11

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Operator News: Importations Guay

Staying ahead of the game Justin Guay, Vice President, Importations Guay

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mportations Guay operates three border shops in Quebec located at the St-Bernard-de-Lacolle, Stanstead and Stanhope border crossings. While sales have been essentially flat over the first three quarters of 2011, Vice President Justin Guay notes that external circumstances—namely US cross-border travelers with less disposable income—have affected business at most Canadian border stores throughout 2011. Nonetheless, Importations Guay has recorded a number of successes this year—namely strengthening its core categories, renovating stores and building its presence online—in an effort to ensure that the company is ready when sales pick back up.

Alcohol, tobacco and fragrances represent an impressive 70-75% of Importations Guay’s business at the border. Indicative of the fact that Canadians make up about 70% of traffic at the stores is that wines and Icewines represent around 40% of total sales in the alcohol category—a relatively high figure when compared with many other Canadian border stores.

The reason for the high number of Canadian cross-border travelers in 2011 is easy to understand, says Guay: “The customer mix has to do with the US dollar,” he explains. “Put simply, there is little motivation for many Americans to travel right now.”

Importations Guay has started offering competitive exchange rates at its stores in order to give US travelers that extra incentive to purchase.

Combined with the operator’s already attractive regular specials, shoppers can save heavily on selected items across categories.

Guay notes that while fewer Americans are traveling, more Canadians are crossing the border. This has effectively offset losses despite the fact that Canadian average spend (around US$50) tends to be slightly lower than that of US travelers (US$65).

“A lot more Canadians have been going south this year for the obvious savings, and many fly out of Plattsburgh, NY and Burlington, Vermont—both right across the border from us,” Guay explains.

Photo courtesy: antoinefortin.com

Despite flat sales during the first three quarters, renovations and marketing initiatives ensure Importations Guay will be more than ready for an eventual rebound in US cross-border travelers BY RYAN WHITE

nial favorites. In terms of tobacco, DuMaurier and Imperial Tobacco products are the top sellers.”

Given the importance of the liquor category to Importations Guay’s bottom line, the operator recently renovated the liquor section in its StBernard-de-Lacolle store. Although the changes are largely aesthetic, Guay notes that “personalization and presentation help quite a bit in terms of sales.” While no concrete plans have yet been made, a future spatial increase for the fragrances category—just a few percentage points below alcohol and tobacco in terms of sales—is also on the company’s radar.

Great expectations

Apart from developments on the shop floor, Importations Guay has ramped up its marketing activities. In addition to releasing a highquality 36-page brochure communicating promotions and products on offer, Guay says he has high expectations for the Frontier Duty Free Association’s national marketing campaign. Furthermore, as part of the campaign, Importations Guay’s website has been updated with a newly redesigned logo and the company is now on Twitter and Facebook as a means of reaching more potential customers. “Everyone is on these social media sites so it’s important to make use of them as much as possible,” Guay notes.

Looking ahead to Christmas and beyond, Importations Guay will be running special promotions as another means of attracting customers. Most recently, as part of the national marketing campaign, the operator offered shoppers the chance to win a US$1,000 shopping spree at one of its stores. Guay says that in addition to regular promotions, this type of larger-scale endeavor will become a more common occurrence across the three stores into the new year.

The cream of the crop “We’ve worked hard to put together some very attractive offers for “In Quebec, white spirits generally sell well,” says Guay. “Vodka and gin travelers,” Guay concludes. “Our own marketing efforts in combinaare doing very well at our stores, with Absolut, Smirnoff and Tanqueray tion with the great work of the Frontier Duty Free Association give c leading the pack. In addition to this, Baileys and Patrón are also peren- me confidence that sales will increase next year.” www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

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TFWA WE Review

TFWA World

Exhibition attendance up 9%

A packed Palais was a perfect testament to the success of the TFWA World Exhibition this year BY HIBAH NOOR

The conference saw a line-up of charismatic and knowledgeable speakers to kick off the tradeshow

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he 27th annual week-long TFWA World Exhibition duty free and travel retail trade show closed on September 23 in the Palais des Festivals et des Congres, Cannes, France. A total of 5,868 trade delegates participated in the exhibition and conference event, up 9% from last year, from 2,737 companies (+6%). This compares with a final figure of 5,398 people from 2,570 companies last year. Of that total, 1,818 (+15%) were key duty free operators and retailers from 548 companies (+9%).

The most significant areas of growth were in delegations from Asia at +15% and Europe at +11%, with +13% from Africa, +4% from the Americas and a drop of 6% from the Middle East and 12% fewer from Oceania.

A positive mood prevailed throughout the show as visitors flocked in from all over the world to see the latest products exhibited by 457 exhibiting companies, of which 37 were new to the show or returning after an absence.

The ‘A Brand New World’ themed tradeshow got off to a damp start with a range of leisure activities on Sunday September 18 which were affected by heavy rain. Golf, jogging, hiking, pétanque, and – new this year – beach volleyball, a perfume workshop and a wine tasting experience, gave over 225 delegates a relaxed and enjoyable start to the week.

That evening at the rather windswept Opening Cocktail on the terrace of the Palm Beach, 1,380 attendees caught up with friends and acquaintances old and new. Fabulous fireworks lit the event courtesy of the City of Cannes.

The Conference on Monday 19 was attended by 888 – a record attendance and a lucky number in China – attracted by the excellent speakers: Kofi Annan, former Secretary General of the UN, Michele Norsa, CEO Salvatore Ferragamo, Stephane Garelli, Professor at the International Institute for Management Development and Erik Juul-Mortensen, TFWA President.

At least 160 delegates were given a stimulating and informative briefing on three diverse channels at the Airline, Cruise and Ferry Workshop on Tuesday 20, by Magnus Ehrenberg, Chief Executive of Ehrenberg Kommunikation, Trevor Moore, Buying & Merchandising Director of Harding Brothers, Raphael Bejar, CEO Airsavings and Pierre Freyssinet, CEO Uleo Holding.

The Asia Pacific Workshop on Wednesday focused on ‘Emerging Asia.’

Around 200 delegates were given a rousing briefing on these dynamic markets

by Marion Buttler, Regional Director Europe of the Pacific Asia Travel Association. Sunil Tuli, President Asia Pacific Travel Retail Association, Peter Mohn, Partner m1nd-set and Mathieu Vanhalst, International Sales Manager, TFWA. The Scene private after-hours venue staged special celebrations on Wednesday to mark its 10th anniversary including a huge birthday cake. On Thursday 22 evening the White Cats performed live before a packed audience of show delegates.

However the social highlight of the week was Le Premium Evening on Thursday at the Palm Beach with a premium seated dinner for 900 guests and a thrilling private concert by famous singer-songwriter James Blunt in stunning surroundings.

Next year TFWA World Exhibition will take place October 21-26 in Cannes. Before then members of the duty free and travel retail community will assemble at the MEDFA Conference on November 21-22 in Dubai and c at TFWA Asia Pacific & GATE ONE2ONE May 13-17 in Singapore.

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THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

The TFWA World Exhibition attracted a total of 5,868 delegates from around the world

FDFA Exhibitors

Fresh frontiers

Exhibitors in this year’s FDFA show run the gamut, from high end fragrances and exotic jewelry to practical products that make travel less of a hassle BY HIBAH NOOR

From 1 liter vodka to natural snacks, ALFA Brands closely follows consumer trends hen it comes to duty free purchases, personal consumption appears to be the order of the day for Canadians and Americans crossing the border, says ALFA Brands, an agent representing major worldwide products in North American duty free stores. Add to this “healthier” and “more wholesome” and you’ve defined today’s typical border crosser, says Operations Manager Amy Hildreth.

No wonder ALFA Brands has tapped into King Henry’s, a California provider of all natural snacks, confectionaries and dried fruits, successfully introducing this line, and making sure it offers the products in large resealable bags – preferred by customers crossing the border.

“They are looking for items to share with other passengers and prefer larger re-sealable bags that have a perceived higher value,” says Hildreth.

Not to dampen spirits, at the opposite end it has introduced Pravda, a 1-liter bottle of vodka from Poland. Along with this are some Canadian favourites, Niagara-on-the-Lake’s Pillitteri Estate Winery’s Icewines, and red, white and rose wines, and Colio Estate Wines’ Girls’ Night Out, red, white, rose and premium sparkling wines.

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Northern color or CBM Inc./Meade Ray International, a wholesaler and supplier of small leather goods and accessories, Canadian duty free sales for 2011 are stable, holding at levels similar to those recorded in 2010, according to the company’s Vice President, Ali Zaheer.

This year the company will present Roots and Club Rochelier ladies’ and men’s small leather goods, and Club Rochelier ladies’ fashion wallets. As well, the new Club Rochelier handbag collection will be showcased, and special trade show prices will be in effect for the event.

Club Rochelier is already present through Duty Free Americas and Aer Rianta, and features classic styling with fashion accents such as studded trim and animal prints, which are

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PEZ has been a part of American history and pop culture for over 50 years. From dispensers to candy, there's a PEZ for anyone and everyone. ALFA Brands is launching the new and popular DC Justice League and Disney’s Phineas & Ferb dispensers.

Other new products are in the confectionery category, with the introduction of Jelly Bean products such as Candy Corn Bean, Peter Rabbit Mix, Jelly Belly Cocktail Classics Shaker and Jelly Belly Mini Bean Bin. Also, ALFA Brands has recently added a great line of products from Carl Brandt, Inc., one of the leading importers of continental gourmet specialties to its portfolio.

What continues to hold back business somewhat is the strength of the Canadian dollar versus the greenback, adversely affecting the influx of Americans who tend to have a higher spend per customer at the border stores. Thus, confectionery and food product sales in particular, have

been negatively impacted.

As the traveling public is still getting adjusted to the requirements of passports and proper IDs, Homeland Security regulations continue to be a deterrent with the traveling public at the border.

ALFA Brands was established with the purpose of representing manufacturers and distributors from around the world, in the duty free and travel retail markets, focusing primarily on duty free shops in North America.

seen in the new handbag collection. Zaheer says the design keynote is ‘fashion meets function’ – neutral colors that outlast trends, together with fashion colors.

In Canadian duty free, Club CBM's bestseller is a ladies' Rochelier clutch with removable handbags checkbook in both the Roots and Club Rochelier brands. Zaheer says it's a classic style that continues to do well in the market. He says Canadian consumers are looking for prod-

ucts made with eco-friendly materials, and that fashionable, trendy colors are popular. "Colorful linings in our handbags have been a growing trend with our consumers."

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

ALFA Brands is pushing Canadian vintner Pillitteri's icewine at North American duty free stores

AM_FDFA11:GULF APR05.qxd 11-10-28 12:28 PM Page 23

Canadiana at its finest

anadian manufacturer/agent Maan Sales Associates is posting very positive airport sales for 2011; figures are up 16% over last year, says President Michael Gray. At this year’s FDFA, Gray and his team will be spotlighting the Canoe line of Canadiana beach towels, blankets and throws, all sporting images of Canada. In addition a kitchen line will be on display, comprising T-towels, oven mitts and aprons, all with different Canadian motifs such as loons, moose, bear, etc. The line includes new offerings Maan will be showcasing its for 2011, such as a Sherpa blanCanoe line during ket/throw. New items from Maan’s the FDFA show line of souvenir food items include the new Canadian Maple Treats gift box, which includes maple syrup, Maple Crunch and Maple Syrup Toffee.

“A very exciting new line of Danish design watches will be introduced called Bering – a beautiful European line including ceramic styles with sapphire mineral crystal components,” Gray says. “This line is well priced and is constructed with superior components, which sets it apart from all of its competition. This is a must see for all stores that sell watches.”

Overall, Maan’s Canadian bestsellers are the Canada Tin items including the Maple Leaf Tin, the 250g Canada Tin, in addition to the new Canadian Maple Treats. The key customer sweet spot?

“As always, value – but also something a little different.”

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Trade routes

Baltic Amber offers practical and unique jewelry to the duty free market

altic Amber Ltd. is a Canadian company that carries amber and silver jewelry made in Poland, as well as jewelry from Indonesia, the Dominican Republic, Israel and China. Baltic Amber’s collection includes amber and glass beads, necklaces, bracelets, pendants, rings, earrings, studs, and fashion jewelry.

Overall the product line now lists around 5,000 designs, and Baltic says the number of items continues to grow.

Compared with last year, duty free sales have been “relatively good” this year, the company says, in part thanks to the fact that customers reorder regularly. For

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

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FDFA Exhibitors

this year’s FDFA show, Baltic will of course be showcasing its headline act – amber jewelry items from the Baltic. Also on display will be the popular Canadian Maple Leaf line, which features real maple leaves electro-plated in 925 sterling silver, 24K gold and copper, Canadian jade, Floride, Shambala bracelets and necklaces, and a large range of exotic stones from around the world set in silver designs. As a special promotion, Baltic will offer special discounts for all duty free stores.

Baltic’s best sellers in duty free are the products made with real leaves, with the maple leaf line heading up the range.

The amber jewelry is also a strong entry, and Baltic encourages buyers from the duty free market to take a close look at its Canadian jade jewelry and exotic semi-precious stones settings.

“What makes our line of jewelry so appealing to duty free is an aspect of practicality,” the company says. “Consumers nowadays are looking for a product that is appealing to the eye and practical at the same time. They’re looking for good quality at a very reasonable price point.”

Canadian concepts ales are up this year in the duty free segment, says Laurel Owens, Sales Rep for Canadian Gift Concepts. Among the new items CGC will be showing at this year’s FDFA show are new fashion offerings and some new designs for the popular Saress beach cover-up.

“The Saress beach cover-up was born of the need to create and design a flattering solution to the dated, difficult, awkward sarong which we have never felt confident in,” CGC says. “The CGC design registered exclusive has a loop at two corners so the wearer can slip the Saress around her back, threading opposite arms through the loops for an easy elegant flattering beach cover-up in seconds.”

Unlike the sarong, the Saress cover-up is designed to retain its shape and stay in place, and also has antistatic properties. Owens says the garment has “a touch of stretch” that gives the wearer better freedom of movement. “It also dries in seconds and is perfect for the social woman,” Owens adds. “It will ‘capture eyes’ at the beach, at the pool, at the bistro – allowing women to be sexy yet refined and elegant.”

Other new designs have been released for CGC’s Sidekicks line of foldable ballet flat shoes designed to be carried in a purse. Also new is the “Roll A Wrap” product – a wrap carried in a bag and designed for travel use – a sun lily beach hat also carried in a travel bag, the “Bear Claw” back scratcher and the “Nugget” mini flashlight.

Canadian Gift Concepts will also be showing the “Pocket Bottle” refillable water bottle, the “Fix It” tool kit for the purse, and a range of new jewelry items and wallets.

“We also have a great new item called ‘Pack It,’ which is a freezable lunch bag that keeps lunch refrigerator-cold for up to 10 hours,” Owens says.

“We’ve found that fashion is a huge trend right now,” Owens adds.

“All of our fashion accessories and jewelry have been selling through at store level very fast, and we’ve noticed a big increase in our children’s jewelry too.”

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Saress beach cover-up

- signature Séxual

- fresh for women séxual

- femme and sexual - pour homme continue to or Michel Germain, the séxual - femme, be best sellers, says Anne MacDonald, Account Manager. “Séxual séxual secret and séxual sugar four-piece holiday gift sets are excellent sellers at Christmas. The value of these sets is amazing, plus the customer loves to receive the lotion, shower gel and pure perfume miniature included in these sets with the - line are flat compared with last year, 75ml spray.” While overall sales in the séxual MacDonald believes that the upcoming Christmas season will be very successful.

- fresh for ladies and séxual Michel Germain is launching its new séxual Nights pour homme at the FDFA show this year. The launch of séxual fresh fol- fresh pour homme. The fragrance opens with iced lows on the success of séxual ruby grapefruit and cooling cardamom, and features a bouquet of pink peony, white magnolia, and crushed white tea leaves that deepens to a dry down of musk - Nights pour homme blends with a hint of precious amber. Séxual notes of bergamot, mandarin and neroli with wild basil and crushed geranium. The fragrance dries to a heart of cedarwood, orris and tonka bean.

MacDonald says that in addition to the popular gift with purchase refillable purse sprays and travel sprays, Michel Germain has added the Michel Germain Pink Designer bag for ladies and the Black Tote Bag for men for this new launch.

“Customers enjoy new fragrances but continue to love their classics as part of their wardrobe,” MacDonald says. “The trends are soft pink colors that resonate femininity for ladies and the bold masculine presentation for men.”

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FDFA Exhibitors

Practical portfolio

ronto Innovations is a privately held Canadian-owned company based in Toronto that specializes in importing and marketing gift items to the Canadian market. The company does extensive work with Canadian customers including chain stores, department stores and independents. On the duty free side, Pronto says that 2011 sales are up over 10% in the gift category, while sales of travel accessories are up by single-digit percentages.

For this year’s FDFA show, Pronto will be featuring a line of men’s gift sets under the Jos Von Arx line. These gift sets include pens, cuff links, Italian leather wallets, key chains and more, presented in special gift boxes. Pronto will also be introducing nine new styles of wine presenters, which it says is a category that continues to enjoy strong popularity. “Our Holiday wine presenters are colorful and lots of fun,” Pronto says. The company will also be presenting a new high-end wine accessories line.

Best sellers in Canadian duty free include the wine presenters and the Travel Club line of travel accessories. “Some of our new Travel Club items introduced to the market have been well received,” Pronto says. “This includes our new e-reader light and a new updated universal travel adapter.”

Pronto says that the strongest trend in the market is toward unique items in the under-CAN$30 price range, whether they’re being purchased for gifting or personal use. The company has also found that items that provide convenience for travelers are also doing well, pointing to the popularc ity of the universal travel adapter product as a case in point.

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THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Pronto introduces nine new styles of wine presenters

Industry News

Staying optimistic Although Canadian land border duty free sales have flattened out of late, Executive Director of the FDFA Laurie Karson sees plenty of reason for optimism BY RYAN WHITE

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hile year-on-year sales at many Canadian airport duty free stores are up double digits, land border stores are still struggling to post strong positive numbers.

Canucks operating land border stores are undeniably more reliant upon the still-fragile US economy than their airport counterparts, but according to the Frontier Duty Free Association’s (FDFA) Executive Director Laurie Karson, this is only part of the story.

In a recent interview she told Americas Duty Free that while many operators along the borders with the US are becoming more savvy when it comes to marketing, more can be done to ensure that Canadian land border duty free’s unique proposition is better understood by cross border travelers. The FDFA has taken the reigns with a new national marketing campaign and Karson is optimistic that the future is bright for the country’s border stores.

“The land border duty free industry is physically and economically different from our airport duty free colleagues,” Karson explains.

“We are still being impacted by the US economy, but are pleased that sales numbers are rising, if only incrementally. In many areas of the country during 2011, certain months saw 10% increases in the Pacific region and increases in Ontario.”

While modest increases have indeed been posted throughout the year at many land border duty free locations across the country, the latest statistics indicate that sales hit a brick wall toward the end of the summer.

Overall, the national land border duty free sales figure for August 2011 was CAD$17 million (US$16.5 million), representing a 2% decrease in sales compared to August 2010.

From January to August 2011, sales increased by 0.05% year-on-year, totaling CAD$92.3 million (US$89.3 million).

From a region-specific perspective, the Prairie region saw sales of CAD$1.1 million (US$1.06 million) in August 2011, representing a decrease of 2% compared to August 2010. For January to August 2011, the Prairie region saw sales of CAD$6.4 million (US$6.2 million). This represents a decrease in sales of 1.29% compared to the same period in 2010.

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“I am truly optimistic that increased sales are around the corner.”

Laurie Karson, Executive Director, FDFA A bright spot in the figures was the Pacific just launched our own internal national marregion, with sales for August 2011 totaling keting website and other web initiatives this CAD$2.9 million (US$2.8 million). This was past February in order to increase awareness a 5.36% increase in sales compared to August with the Canadian public,” she continues.

2010. For January to August 2011 the Pacific While the above indications suggest that region’s sales equaled CAD$16 million (US$15.5 good things may indeed be on the horizon, it million), increasing 4.57% over the same should also be remembered that the Canadian period last year. land border duty free industry—often likened The Ontario Sales figure for August 2011 was more to a tight-knit family than a group of CAD$9 million (US$8.7 million). This repre- individual business—is particularly good at sents a decrease in sales of 3% compared working together for the greater good. to August 2010. For January to August 2011 Indeed, Karson’s demeanor when explainOntario saw sales equal CAD$50 million ing to Americas Duty Free the benefits of attend(US$48.3 million), with an overall decrease of ing the FDFA show can be considered repre0.77% compared to the same period in 2010. sentative of the sense of camaraderie inherent Finally, the sales figure for Atlantic/Que- in the Canadian duty free industry as a whole: bec for August 2011 was CAD$4 million “We hope that each delegate leaves the show with (US$3.8 million), representing a decrease of a smile on their face from seeing longtime 4% compared to August 2010. For January friends, developing and fostering their business to August 2011 the Atlantic/Quebec region saw and understanding what makes duty free in c sales equal CAD$19.6 million (US$18.9 mil- Canada in so special and unique.” lion), representing a decrease of 0.92% from the same period last year.

“While we would like to see ■ Alcohol (liquor, liqueur, wine, coolers) greater sales, I am truly opti■ Tobacco, Cigars, Loose Tobacco mistic that increased sales are ■ Perfume, Cosmetics, Skincare around the corner,” Karson says.

■ Beer (beer, malt-based coolers) “I’m hopeful given such initia■ Food tives as the Beyond the Borders ■ Jewelry, Watches, Clocks Working Group that the US ■ Clothing (including hats, fur, leather) and Canadian Governments ■ Accessories (purses, wallets, sunglasses, etc.) have committed to or the Cana■ Souvenirs dian Government’s new fed■ Glassware, Crystal, China, Figurines, Porcelain eral tourism strategy. The goal ■ Office and Travel Supplies of these initiatives is to improve ■ Other border efficiencies, and this can ■ Crafts/Arts only help our industry.

■ Electronics, Cameras, Binoculars, etc.

“We have, of course, also

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Top categories in land border duty free for August 2011

Company News: ACI Brands

Canadian champion ACI Brands grows into its role as a major Canadian distributor across an expanding range of brands and categories BY HIBAH NOOR

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ince it was founded in Montreal as a ladies fashion wallet supplier in 1981, ACI Brands Inc. has become a multi-divisional supplier of consumer products that works in all channels of the Canadian retail market, including duty free. Recently, the company moved into a new 120,000-square-foot head office facility in Oakville, Ontario.

“Our sales in the Canadian duty free market this year are up over a variety of commodities compared to last year,” says Cathy Wilson, Account Manager for ACI Brands Inc./Star Case Canada Inc. “The duty free market has chosen to see us as a responsible and versatile supplier who works hard to gain their business.”

One of the well known beauty brands distributed by ACI Brands is Stila. At this year’s FDFA show, ACI will feature the Stila 2011 Holiday collection which showcases the company’s strength, which is striking design and packaging with pigments and formulations that deliver. Since Stila is new to the FDFA show and duty free, it will be introducing the entire cosmetics assortment this year.

“Stila creates amazing mini sets and travel sets at a special offer for the consumer,” says Christine Tessaro, Senior Manager, Sales and Marketing, ACI Brands.

“These sets have +99% sell-through in stores and have become coveted items amongst women across Canada.

Stila plans to feature these exclusive sets and offers for the duty free customer.”

The brand statement for Stila says that the brand's goal is “to help every woman celebrate her own unique beauty; to look and feel like the best version of herself; and to have fun doing it.” Stila has a regular presence in magazines such as Allure and InStyle, and also on the runways during New York fashion week, and ACI says that it has become a top five color line in less than a year at all of its points of distribution. In addition, the brand has limited availability in Canada at this point – which represents an advantage from the point of view of duty free.

“Women are looking for a modern, sophisticated and nonintimidating approach to beauty and their cosmetics regimen,” Tessaro says. “Stila shines with innovative, multi-tasking formulas and eco-friendly packaging. Consumers are constantly flipping through magazines or searching online for the latest trends and tips from celebrity red carpets and fresh off the runway. Stila overdelivers in these categories as the team works closely with A-list celebrities and top New York fashion week designers to develop the colors, inspirations and trends for the line.”

On-the-go travel accessories ACI has been supplying travel accessories to the Canadian market for more than 20 years, and also distributes a line of Canadian-themed travel products under the 30

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Maple Leaf travel accessories

Skin Tone Correcting, Brightening Serum

name Maple Leaf travel accessories. The line includes tags, straps, organizers, electronics, luggage, comfort items and more travel items. This year ACI will launch its Maple Leaf Travel lineup in new packaging.

“Our best sellers in the Canadian duty free market are Maple Leaf travel accessories because of our quality and service, as well as the Disney and M&M’s novelty accessories.

Our Guess brand of jewelry does very well as well,” Wilson says.

“The Canadian consumer is looking for good quality at a value price. Branding is important but the product must live up to its quality name. ACI Brands has researched the world markets to bring such lines to Canadians.”

Some of the brands ACI handles include Guess, Calvin Klein, Nike, Candy Store, Sportline, Weatherzone umbrellas, Sharper Image and Excalibur gifts, Preven’s Paris, Trim nail implements and the Disney and M&M’s brands, Wilson says.

“Our commitment is to offer the most profitable program to c the duty free members.”

AM_FDFA11_GULF APR05.qxd 11-11-30 12:26 PM Page 31

Company News: Haleybrooke International

Bucking the trend BY

RYAN WHITE

Despite continuing economic difficulties in the US, Haleybrooke International proves that a stable of hot brands and a healthy dose of duty free knowhow can spell success north of the border s the US does its best to try to shake off the lingering effects of the recession, an unfortunate truth is that business north of the border also tends to be affected more often than not. Companies that are well versed in the duty free business and have a diverse portfolio of established brands and hot new offerings, however, can still manage to buck the trend. Fortunately for Haleybrooke International, the company meets the above criteria perfectly.

In fact, year-to-date to September, Haleybrooke has seen sales increase over 40% in Canadian duty free. In terms of provinces that are performing particularly well, Roger Thompson, Vice President of Haleybrooke, says that Ontario, Quebec and British Colombia represent the big three in terms of sales. Standout products include Patrón Tequila, Louis Royer Cognac and Bottega Limoncino.

“Patrón Tequilas have been very successful and people are attracted to Patrón in duty free because it is of high-quality and relevant to sophisticated consumers,” Thompson says. “Louis Royer Cognac has been supported by many of the border stores for over a decade and I believe that it is the quality in the bottle that brings the consumer back for the brand on their next trip. With the brands from Distilleria Bottega, such as Bottega Limoncino, it is not only the quality of the liquid, but also the beautiful packaging that Sandro Bottega has developed for his brands.”

In terms of new listings, Haley-

A

In terms of sales and new listings, Patron’s portfolio is performing extremely well in Canadian duty free

32

brooke reports that Patrón is on fire, with XO Café recently introduced at Sault Ste Marie, Peace Garden and Kitts Duty Free border stores and with Aer Rianta in Montreal and Halifax airports. In addition, Patrón’s ultra premium vodka Ultimat was recently listed with Boutique Hors Taxes De L’Est and Tobacco Plains Duty Free. In Ontario a number of brands from Distilleria Bottega have been listed with Ambassador, Blue Water, Peace Bridge and Peninsula Duty Free border stores. Furthermore, Greenall’s Gin will be listed with Importations Guay Ltée and Boutique Hors Taxes De L’Est in the near future.

Haleybrooke will attend this year’s FDFA conference and trade show, and in addition to showcasing the tried and true brands above, the company now represents Paul Sapin wines.

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—has patented the multilayer PET (MLP) bottle.

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, 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 40foot container.

While some purists are still resistant to buying wine that isn’t in a glass bottle, operators appreciate that MLP bottles do not cannibalize existing fine wine offerings: “We call them the ‘friendly bottles’

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Haleybrooke is planning upcoming tastings of Louis Royer Cognac in key duty free locations in Ontario and Quebec as a means of highlighting the quality of the liquid

because they are pool friendly, beach friendly, hiking friendly, picnic friendly, boating friendly and biking friendly,” explains Patrick Nilson, President of Haleybrooke. “We already have listings from Blue Water, Peninsula, Thousand Islands and Johnstown Duty Free shops.”

Of course, Haleybrooke also manages brands in categories other than spirits and has lately taken on a number of new brands. Zeades, which produces jewelry and accessories, is based in Monte Carlo and Leslee Nilson, Director of Haleybrooke, describes the company’s products as “Riviera chic.”

Zeades’ newest signature line of inspired men’s and women’s jewelry and accessories will be on display at this year’s FDFA. Also new for November is Monteverde’s latest line of writing instruments, which features the One Touch Stylus. The innovative product is a ball point pen with a rubber stylus on the opposite end which can be used with any touch screen device, such as a cell phone or iPad. Haleybrooke will also be introducing a number of other products, both liquor-related and otherwise, including Max Benjamin scented candles and diffusers, Exclusive Kosher Vodka, Hava Nagila Vodka from Israel and Orbis Aged World Whisky, which is a blend of fine aged whiskeys from the five great whisky nations—Scotland, Ireland, the US, Canada and Japan.

Attendees to the FDFA’s 26th annual conference and trade show can visit Haleybrooke at c Suite 4750/51.

Paul Sapin’s MLP bottles weigh far less than glass and have a much longer shelf life than PET bottles

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

Liquor News Inniskillin renews focus on Canadian airport duty free Inniskillin recently announced that Export Director Randy Dufour and Business Development Manager – Travel Retail Amanda Dolotowicz will now be managing the company’s business across all Canadian airports. The responsibility was previously delegated to Inniskillin’s regional managers in each province of Canada.

The development will see the company’s business at Vancouver, Calgary, Edmonton, Winnipeg, Toronto, Ottawa, Montreal, Quebec City and Halifax Airports managed out of the Vincor Canada offices in Mississauga, Ontario. In a recent conversation with Americas Duty Free, Dolotowicz said that in most airports the focus will remain on Inniskillin Icewine, but the company will also be reviewing opportunities for listings of its strong table wine portfolio in select locations.

“Building our positioning in select airports where we have limited shelf space and listings will obviously be another focus for us,” she said. “More than anything, this represents an opportunity for us to use our expertise to get some good placements. I think our business in Canadian airport duty free stores will benefit across the board from a more consistent approach.

“Not to take away anything from our regional managers, who have recorded some great successes, but I think this new approach will allow us to really streamline our execution and leverage our current global successes by bringing some of these ideas into Canadian duty free,” she continued.

Some possibilities on the table for the future are implementing promotions in Canadian airports that are run in other areas of the world.

Inniskillin has previously offered a GWP of a 50 ml bottle of Icewine for the purchase of US$100 or more of Inniskillin Icewines.

“This has been a very successful activation for us and we’ll be looking at implementing similar promotions in selected Canadian airport duty free shops,” Dolotowicz says. “All in all, we’re looking forward to giving travelers across Canada some interesting offers that have been proven successful in other parts of the world.”

Inniskillin’s Export Director Randy Dufour (left) and Business Development Manager – Travel Retail Amanda Dolotowicz (right) will now be managing the company’s business across all Canadian airports

Horizon secures new listings in Canadian duty free Horizon International Duty Free has reported several Canadian duty free listings for its portfolio of premium brands: Windsor Tunnel Duty Free has listed and is promoting Vice Vodka Icewine, as well as Parlux celebrity fragrances from Rihanna, Paris Hilton and Vince Camuto; Peace Bridge has committed to listing several Parlux fragrances; and Nuance has listed the B+D line of readers in all stores at the Toronto International Airport, as well as received initial listing approval for U’Luvka Polish Luxury Vodka. Horizon also reports that due to recent changes in the LCBO duty free margin structure, U’Luvka will also be listed in most Canadian duty free stores.

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THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Vice Vodka Icewine was recently listed at Windsor Tunnel Duty Free

“Horizon International has the responsibility to get these brands in as many markets as possible and we’re looking forward to offering these products to our friends in Canada,” says President José B. Chao. “Our aim is to drive value and market share growth for our customers, as well as for their retail partners.”

Chao will attend the FDFA show in Niagara, presenting 2012 promotions for Horizon brands, including accessories (B+D and Equss); beauty & fragrance (Cilea and Parlux); confectionary (Tortuga Rum Cakes); and spirits (Tequilas La Doña; VnC; Vice; and U’Luvka).

Edrington Group sets its sights on Canadian duty free During September’s TFWA WE show in Cannes, Edrington Group launched a number of innovative line extensions that are sure to have spirits aficionados abuzz with anticipation.

During a recent trip to Canada, Edrington Group’s Area Director – Americas Duty Free and UK & Ireland Domestic André de Almeida told us that many of the products launched in Cannes will soon make their way to duty free north of the border.

The Black Grouse – Alpha Edition premiered at Cannes and is described as a richer and smokier expression of award-winning The Black Grouse. The black grouse is a rare and charismatic bird celebrated by this special bottling. During the mating season the black grouse demonstrates both flamboyance and machismo to establish himself as the alpha male. These two sides of his character inspired Alpha Edition, a perfectly balanced and rare blend.

Also launched at Cannes was The Naked Grouse, a premium blended whisky containing two of the world’s most renowned malts, Highland Park and The Macallan, which have been slow-matured in sundried Spanish sweet sherry casks—the most expensive in the world—to give the blend unrivalled smoothness.

Another launch soon to hit selected duty free store shelves in Canada and around the world is a limited edition Macallan decanter designed and created by the legendary French crystal house Lalique. The collaboration marks the latest addition to The Macallan in Lalique Six Pillars Collection. The Macallan in Lalique Curiously Small Stills decanter follows on from the overwhelming suc-

The Naked Grouse is a premium blended whisky containing two of the world’s most renowned malts, Highland Park and The Macallan

cess of the first three stunning decanters.

This time around sees the decanter filled with an exceptionally rare 60 year old Macallan single malt whisky.

Americas Duty Free learned that de Almeida was particularly impressed with Aldeasa’s Vancouver stores on his visit to Canada. Indeed, he sees great potential for Edrington’s higher-end line extensions there: “There are some very interesting things going on in Vancouver in terms of luxury retailing and it’s very exciting for all our brands, but the Macallan specifically,” he says.

Finally, de Almeida confirmed that Brugal rum, first introduced at IAADFS earlier this year, will have an everincreasing presence in Canadian duty free: “In Europe, for example, travel retail sales of Brugal have grown in the neighborhood of 60% over the last 12 months and well ahead of the rum category, so I think that’s a good indication as to the brand’s potential in Canada and the US,” he says. “The idea behind Brugal was always to increase the footprint in duty free because we know that the liquid is fantastic. It’s just a matter of making sure that people see it and try it for themselves.”

Finlandia Vodka’s new ultra-premium Platinum shines Finlandia Vodka made its long-awaited entry into the luxury category when it introduced its new high-end vodka, Platinum, at the TFWA Conference in Cannes in September. Made with Finland’s purest glacial spring water and finest six-row barley, Platinum is hand-crafted under the supervision of Finlandia Master Taster Marku Raittinen, passed over a bed of Finnish birch chips and then finished through slow arctic chilling to ensure ultimate smoothness.

Another of Platinum’s special attractions is the bottle itself, which was a collaboration between noted contemporary Finnish designer Harry Kosk-

inen and Ken Hirst, an award-winning package designer. Inspired by the natural beauty of Finland, the striking Platinum bottle depicts the essence of an icy Nordic landscape.

“Platinum is a terrific addition to the Finlandia portfolio and should prove to be popular in the travel retail/duty free marketplace. Finlandia is already globally recognized for its quality and taste and a luxury vodka like Platinum will only enhance its reputation among connoisseurs of high quality spirits,” said Jim Perry, Brown-Forman’s Managing Director of Travel Retail.

Brown-Forman launched Platinum, Finlandia’s long-awaited ultra-premium variant, at Cannes this year

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

35

Tobacco News Distribution GVA offers travelers more choice at land border crossings

Neos Al’s were recently introduced to complement the existing Neos line of flavored cigarillos

Distribution GVA has announced a number of new products that have already arrived on the shelves of land border duty free stores across Canada. Jerry Prosh, Regional Sales Coordinator at Distribution GVA, walked Americas Duty Free through the latest offerings.

“Majorettes are now available in 10x5 packs and boxes of 50. Furthermore, cognac-flavored Neos Al’s were recently introduced to complement the existing Neos line of flavored cigarillos,” says Prosh. “Another new product for this year includes the Brick House Sampler, which contains four cigars of varying sizes—Corona Larga, Toro, Churchill and Robusto.”

Also new in terms of cigars is Quorum Shade, a lighter offering than traditional Quorum. Available in Corona, Robusto or Churchill, Quorum Shade is made with a Connecticut wrapper and comes in packs of 10. Finally, Distribution GVA is also offering Grape, Cherry, Menthol, Vanilla and Peach varieties of Honey T flavored cigars “All of these new releases are currently listed across Canada at land border crossings,” Prosh says. “We’re currently speaking with airport operators and are hopeful for new listings soon. Business has been pretty decent this year despite increasing governmental restrictions, with Quebec and Ontario being standouts in terms of sales. We’re looking forward to finishing the year strong and starting 2012 on a high note.”

Quorum Shade is a lighter offering than traditional Quorum and is available in Corona, Robusto or Churchill sizes

General Cigar introduces new travel retail products at Cannes Americas Duty Free recently had the opportunity to speak with Cameron Shaw, Director of Marketing for General Cigar International, about the new products the company was showcasing during the recent TFWA WE in Cannes. In an earlier interview, Shaw made note of two divergent trends in the cigar industry—while cigarillos have become very popular, extremely large ring gauge cigars are also in demand. With these most recent offerings, General Cigar has managed to please both enthusiasts who prefer a large, robust smoke and those who prefer the compactness of a cigarillo.

“We showcased some special packages from Macanudo and Don Tomás,” explained Shaw. “In particular, we’re celebrating the success of Macanudo 1968.”

For Macanudo 1968, General Cigar has released three new four-packs in the popular Robusto, Corona and Rothschild sizes. Furthermore, in response to consumer demand, a three-pack of Macanudo Robusto cigars was launched at Cannes. The pack features cigars from the Café, Maduro and 1968 collections.

In Don Tomás news, a new eight-pack that takes the form of a carrying case was debuted at the show. The bespoke packaging contains an easy-carry handle and is highlighted with elegant gold-colored gilding. “It’s sure to delight travelers,” says Shaw.

TFWA WE also saw the travel retail launch of Macanudo

36

THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Club Minis and Club Cigarillos. “We’ll soon be launching what we call a ‘flightpack’ for these brands, which will consist of five packs of 20 cigarillos,” Shaw explains. “The development of these packs is a direct result of the trend toward smaller cigars and we have already received strong interest from our partners in many travel retail markets.”

The packs were actually introduced domestically in Germany and proved to be bestsellers. General Cigar expects them to be just as popular in the airport environment, where smoking time is limited and travelers often opt for smaller-sized cigars.

General Cigar recently introduced three new fourpacks for Macanudo in the popular Robusto, Corona and Rothschild sizes

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BAYADÈRES - Photos : Francis Azemard, Richard Nourry.

A MASTERPIECE.

New & Notable Chupa Chups Travel Tin

CONFECTIONERY

Company: Perfetti van Melle Global Travel Retail Description: An exclusive gift tin containing 16 lollipops. The tin is decorated with typical travel symbols such as passport stamps and signposts. This can also be customized for specific destinations

Oreo Cookie

2012 Tablet Collection

Company: Kraft Foods World Travel Retail LLC Description: Oreo makes a sweet entry into the travel retail market with a range of six exciting novelties.

The unique product range covers everything from snacking to gifting

Company: Godiva Chocolatier Description: The new tablet features a White Vanilla Bean flavor that consists of white chocolate infused with vanilla from the highest quality whole vanilla beans. The new assortment replaces Dark Raspberry, Dark Mint & Dark Orange, keeping the selection fresh and modern

Ceramic Cupcake Dish Company: Jelly Belly Candy Company (North American Duty Free Agent-ALFA Brands Inc.) Description: Colorful, ceramic cupcake looks good enough to eat!

Charming cupcake is decorated with Jelly Belly bean shapes and features delicious Jelly Belly Spring Mix

LINDOR Tube White 400g

Maple Products

Company: Lindt and Sprungli Description: LINDOR White maintains the delightful, smooth melting taste sensation LINDOR is known for, but this flavour is encased in a velvety white chocolate shell with an irresistibly smooth filling inside.

Available in a 400 gram tin that is ideal for sharing and makes for a delicious gift

Company: Jakeman’s Maple Products Description: Acclaimed as “Canada’s best tasting maple syrup,” by The National Post, Jakeman’s Maple Products are pure and natural.

Certified by Agriculture Canada, Jakeman’s is considered one of the few maple syrup bottlers and confectioners that actually produce maple syrup from scratch. Now available in a convenient one liter size

TRAVEL ACCESSORIES Roots ‘Claire’ Collection Company: Meade Ray International Description: The new Roots collection, Claire, features a back to basics, classic Roots look. Constructed with soft leather, and contrast stitching, this collection is designed with several card slots and slot pockets to keep you well organized

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THE AMERICAS DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

2012

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Success in ITR comes in many colours.

As one of the leading confectionery players in ITR, you’ll find Mars’ brands at almost every travel location across the world. Focusing on the key purchase motivations our stunning product portfolio, containing the nr. 1 and nr. 2 brands M&M’s and Snickers, is backed by creative merchandising driving the purchase decision.

Our combination of insight, category vision and global strength enables us to optimize the effectiveness of our unmatched portfolio of global favourites. Finally, we continue to develop exciting new concepts.

For example, we now have all Wrigley products fully integrated into our ITR program, creating even more opportunities to drive your business.