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OCTOBER 2012 • VOL 22, NO 3

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TFWA WE 2012

HKG heads south p.

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London Supply’s dedication p.

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Monalisa renovates p.

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Pernod Ricard’s Franck Lapeyre p.

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Letter from the Editor

The Americas Duty Free & Travel Retailing (ISSN 0962-0699) is published four times a year March/April, June/July, October, November/ December) by Global Marketing Company Ltd., 26

The

Pearl Street, Mississauga, Ontario L5M 1X2 Canada. It is distributed throughout Central America, South

evolution of an industry

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. October 2012, Vol. 22, No. 3.

hen it comes to the Americas, buyers, suppliers and the travel retail media have given a great deal of attention to Brazil in recent months. Few would argue that this attention has been misplaced. Indeed, the country is just what duty free in the region needed most when business began to dip in the US in 2008—Brazil boasts a massive middle class population just now discovering the joys of travel and more importantly realizing the advantages of purchasing at airports and border stores to avoid hefty taxation in their home country. Operators are doing a great job of building some fantastic stores at Brazilians’ favored destinations and suppliers are conceiving of innumerable products aimed specifically at the Brazilian traveler. Nonetheless, the rather simple—and slightly scary—fact of the matter is that if the infrastructure isn’t in place at Brazilian airports, the house of cards could tumble at any moment. The duty free industry has invested heavily in targeting the Brazilian traveler, but has there been an equally enthusiastic response from those responsible for the country’s airports? The summer’s Federal workers strike, which wreaked havoc at some of Brazil’s biggest hubs, should certainly give us cause for concern. Further food for thought: Media reports indicate that some 350,000 workers were involved in the strike while the Brazilian government maintains that the number was no more than 80,000. Just how stable is our reliance as a region on the Brazilian traveler, regardless of how ready and willing they may be to travel and spend?

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The good news is that with two major sporting events coming up in Brazil, major efforts are afoot to improve the country’s airports, but only time will tell how successful these initiatives ultimately are. More positive news is that the concentration of late on emerging markets is taking on a new and interesting facet—operators and suppliers alike are starting to realize that not only is there untapped potential in South America, the Middle East and Asia, but there are also hitherto unexplored opportunities in more traditional markets such as Mexico, the US and the Caribbean. One need look only as far as HK Global Duty Free’s plans for stores in Mexico’s secondary airports (page 22) or LS travel retail North America’s very flexible and adaptive business model (page 40) to understand that opportunities still abound. Of course, suppliers are just as adept at evolving with market dynamics, and among our extensive coverage of categories, L’Oréal Group (page 90) and Pernod Ricard (page 138) stand out as companies that are truly committed to keeping atop of trends and in some cases even creating their own. I hope you enjoy this year’s TFWA WE issue of Americas Duty Free and agree that the stories contained within are indicative not only of the changing nature of travel retail in the region, but also of the industry’s impressive ability to stay on top of quickly evolving developments.

Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2012 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 CONCESSIONS, LIQUOR & TOBACCO EDITOR Ryan White ryan@dutyfreemagazine.ca ASSOCIATE EDITOR Melissa Silva melissa@dutyfreemagazine.ca ART DIRECTOR Patrick Balanquit patrick@globalmarketingcom.ca CONTRIBUTORS Andrew Brooks Zuhair Kashmeri ADVERTISING SALES

Kindest Regards, Ryan White Concessions, Liquor and Tobacco Editor ryan@dutyfreemagazine.ca

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

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


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Letter from the Editor

La evolución de una industria

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n lo tocante a las Américas, los compradores, proveedores y los medios de prensa dedicados al sector minorista de viajes le han prestado enorme atención a Brasil durante los últimos meses. Algunos podrían argumentar que tal atención está mal ubicada, pero, en honor a la verdad, el país suramericano es justo lo que el sector duty free en la región necesitaba más cuando el negocio comenzó a decrecer en los Estados Unidos en el año 2008: Brasil cuenta con una masiva población de clase media que recién descubre las alegrías de viajar, y, más importante aún, las ventajas de comprar en tiendas de aeropuerto y de frontera para evitar los elevados aranceles en su país natal. Los operadores están desempeñando un magnífico trabajo en la construcción de algunas tiendas fantásticas en los destinos favoritos de Brasil, y los proveedores están creando innumerables productos dirigidos específicamente al viajero brasileño. No obstante, la realidad bastante simple—y ligeramente aterradora— es que si no hay la infraestructura adecuada en los aeropuertos brasileños, el castillo de naipes podría venirse abajo en cualquier momento. La industria duty free ha invertido enormes sumas dirigidas al viajero brasileño,

pero ¿se ha producido una respuesta igualmente entusiasta por parte de aquellos funcionarios responsables de los aeropuertos de esa nación? La huelga de los trabajadores federales durante el verano, que creó el caos en algunos de los principales centros de Brasil, debería ser realmente para nosotros una causa de preocupación. Los informes de la prensa indican que participaron en la huelga unos 350.000 trabajadores, mientras que el gobierno brasileño sostiene que la cifra totalizaba no más de 80.000. Entonces, ¿cuán estable es nuestra dependencia como región en el viajero brasileño, independientemente de lo dispuestos y deseosos de viajar y gastar que pudieran estar? La buena noticia es que como se van a llevar a cabo dos importantes acontecimientos deportivos en Brasil, se están haciendo importantes esfuerzos para mejorar los aeropuertos del país, pero sólo el tiempo dirá cuán exitosas serán en definitiva. Y otra noticia positiva es que la concentración de mercados emergentes tardíos está adoptando una faceta nueva e interesante: tanto los operadores como los proveedores están comenzando a darse cuenta de que no sólo existe potencial inexplorado en Suramérica, el Oriente Medio y Asia; sino también en mercados más tradicionales como

México, los Estados Unidos y el Caribe. Sólo se necesita ver los planes de HK Global Duty Free para crear tiendas en aeropuertos secundarios de México (página 22) o del modelo comercial minorista de viajes muy flexible y adaptable en Norteamérica de LS (página 40) para comprender que aún abundan las oportunidades. Por supuesto, los proveedores son igualmente adeptos a evolucionar con la dinámica del mercado, y entre nuestra extensa cobertura de categorías, L’Oréal Group (página 90) y Pernod Ricard (página 138) se destacan como compañías verdaderamente comprometidas con mantenerse al ritmo de las tendencias recientes, y en algunos casos crear incluso tendencias propias. Espero que disfrute del número de Americas Duty Free dedicado a la TFWA WE de este año, y concuerde con nosotros en que los artículos que contiene no sólo indican la naturaleza cambiante del sector minorista de viajes en la región, sino también la impresionante capacidad de la industria para estar a tono con los acontecimientos en rápida evolución. Un cordial saludo, Ryan White Editor de Concesiones, Licores y Tabaco


VISIT US AT THE COTY BOOTH IN THE MARINE VILLAGE / FOYER 3 S3


OCTOBER 2012

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VOL 22, NO 3

IN BRIEF Kiehl’s blossoms in travel retail ■ Passenger traffic at ASUR airports up 11.2% in August ■ US international outbound travel up 4% in June ■ Delta and OTG introduce iPads at Minneapolis-St. Paul International Airport ■ Costa Rica sees 7.4% increase in tourism during H1 ■ Travel retail a highlight of Lagardère’s H1 2012 results

TOP STORY: HK GLOBAL DUTY FREE

Building on strengths HK Global Duty Free’s extensive experience catering to Mexican travelers on the border bodes well for its first move into airport duty free in Queretaro, Mexico

Aprovechar los puntos fuertes

40

LS TRAVEL RETAIL NORTH AMERICA

46

SHOPPING CHINA

48

GUESTLOGIX

50

IAADFS

La extensa experiencia de HK Global Duty Free prestando servicios a los viajeros mexicanos en la frontera propicia su primera incursión en el sector duty free de aeropuertos en Querétaro, México

32

LONDON SUPPLY

34

MONALISA

36

WORLD DUTY FREE GROUP

38 12

“Passionately dedicated” The one-of-a-kind experience for which London Supply is known is because of the hard work of the people it employs, says Commercial Manager Magdalena Ducos

The end goal

Holding strong South America shines for Dufry in H1, but can the recently acquired stores in Uruguay, Argentina and Ecuador pick up where Brazil may leave off in the second half?

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

On the shoulders of giants Shopping China flourishes as a result of meeting the needs of Brazilian cross-border travelers that are ready and willing to spend

The sky’s the limit With the acquisition of Initium Onboard, GuestLogix not only strengthens its Inflight business, but also makes significant inroads into rail

“A commitment to the business”

52

MOTTA INTERNACIONAL

56

FRONTIER DUTY FREE ASSOCIATION

60

PORTLAND DESIGN

Pedro Castro and Padraig Drennan, respectively in charge of WDFG’s Latin American and North American business arms, discuss recent and upcoming innovations

DUFRY

LS travel retail North America finds that strong growth is a natural result of focusing on driving value for airport partners and engaging consumers

Executive Director of IAADFS Michael Payne tells us about the airports and retailers that have impressed him and discusses what IAADFS has in store for 2013

Monalisa’s 2012 has been highlighted by numerous renovations and store openings, all with the final objective of ensuring customer satisfaction

Spanning the Americas

Cause and effect

Shiny and new From four new stores in Ecuador and Colombia to a new marketing manager and a redoubled focus on luxury, Motta Internacional aims for continued growth in H2

Developing digitally A recent review of the FDFA’s national marketing campaign reveals that results have surpassed expectations and garnered acclaim from land border operators

Developing a compelling retail offer South America is replete with travel retailers doing it right, but countless opportunities still exist, especially in the booming Brazilian market

62

DIAGEO GTME

Driving growth Americas Duty Free speaks with Managing Director of Diageo GTME Roland Abella about the company’s performance in FY2012 and what’s to come over the next 12 months


Contents

64

CONFERENCE REVIEW: ASUTIL

Opportunity and challenge Americas Duty Free attended the 2012 ASUTIL conference in Iguazú, Argentina and discovered that while the region is still experiencing growth, challenges do exist

75

Oportunidad y desafío Americas Duty Free asistió a la Conferencia ASUTIL 2012 en Iguazú, Argentina y descubrió que, si bien la región sigue experimentando un crecimiento, aún existen retos que enfrentar

74 75

L’ORÉAL GROUP

What’s old is new again Revisiting its iconic Acqua di Giò fragrance, Giorgio Armani offers a new spin with Acqua di Giò Essenza

L’ORÉAL GROUP

Lancôme explores the taste of iris New “La vie est belle” perfume builds on the brand’s strong fragrance history

76 78 80 82 84

ESSENCE CORP. Luxury distributor unveils plans for major new launches

CLARINS GROUPE

Welcoming change

98

FURLA

Clarins Groupe undergoes profitable changes in order to take advantage of emerging markets

BEAUTY BEAT: FRAGRANCES

Fragrance firsts BEAUTY BEAT: SKINCARE & COSMETICS

Top tones Lengthening the list Distributor Tairo International has a huge slate of product introductions in the works for this fall

88 90

L’ORÉAL TRAVEL RETAIL AMERICAS CONSUMER DIVISION

The power of promotion La Prairie aims higher with new launches and plans for continued growth worldwide

Covering all the bases

LA PERLA ASIA PTE. LTD.

Close to the skin La Perla’s intimate edge brings success in global markets

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

Iconic fashion brand charts a course deeper into the travel retail channel

Scorpio stretches out For the UK-based travel retail distributor, it’s time to expand in the Americas

Furla bags new sales, markets Italian leather brand maintains the pace with new sales locations, while continuing to develop its portfolio

100 106

SOUTH POINT GALLERY

108

HONORA

118

THE HERSHEY COMPANY

Brighter colors and better tones set the pace

TAIRO INTERNATIONAL

Desigual: designing success

MAUI JIM

New top-line scents for men and women

L’Oréal Travel Retail Americas Consumer Division has a broad portfolio of products and strategies for the Americas markets

14

96

SCORPIO DISTRIBUTORS LTD.

Essence advances

LA PRAIRIE

92

94

DESIGUAL

A flair for glare A focus on polarized technologies has brought Maui Jim stand-alone status in the sunglasses category

Made in the shade(s) South Point Gallery opens Americas travel retail markets with luxury sunglasses

“A fresh new look at pearls” Honora has ambitious plans for its freshwater pearl jewelry

Hershey’s launches a sweet, new merchandising system in time for TFWA WE Designed for travel retail, the kit-of-parts provides a range of branded fixtures designed exclusively for retailers to use in duty free and travel retail stores

123 125

Special Report: Wine WINE REPORT

A variety of varietals Americas Duty Free speaks with five wine suppliers and discovers that wine enthusiasts will have a plethora of choices at this year’s TFWA WE


128

TFWA WE WINE PREVIEW

134

VODKA REPORT

136

TFWA WE LIQUOR PREVIEW

138 142

A feast for the senses Americas Duty Free looks at some of the new wine and champagne offerings set to be showcased at this year’s TFWA WE

Liquid gold Americas Duty Free speaks with suppliers who have proven that premium and super-premium vodka is a solid path to success in travel retail and duty free markets

On the tradeshow floor Americas Duty Free presents a guide to some of the many must-see spirits exhibitors at this year’s TFWA WE

PERNOD RICARD AMERICAS TRAVEL RETAIL

From Asia to the Americas CEO of Pernod Ricard Americas Travel Retail Franck Lapeyre takes learnings from Asia travel retail and puts a push on premium spirits in the Americas

BACARDI

A star-studded activation Bacardi celebrates the art of cinema with a large-scale Grey Goose activation at Toronto Pearson Airport Terminal 1

144

EDRINGTON

146

PATRÓN

150

WILLIAM GRANT

158

JAPAN TOBACCO INTERNATIONAL

160

HABANOS S.A.

164

NEW & NOTABLE

Voted

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Rare offerings Two new Highland Park vintages, a pair of limited editions from The Macallan and a new ultra premium Brugal rum take center stage for Edrington at TFWA WE

The darker side of tequila Patrón brings XO Cafe Dark Cocoa coffee liqueur—a whole new experience of the bestselling tequila—to Cannes for the first time

Beyond compare William Grant’s 125th year turns into a medal bonanza for its celebrated Scotch whiskies

It’s evolution, baby JTI re-imagines the iconic Mild Seven brand with an eye on continued growth in the mid to long term after a solid first half of the year

Bringing out the big guns This year sees the release of unique vitolas and duty free exclusives from some of Habanos S.A.’s most popular and sought-after brands

Macadamia Truffles ■ Gear Cufflinks ■ Eternal Love Ring


In Brief Kiehl’s blossoms in travel retail Travelers are now three times as likely to find a Kiehl’s store in an airport as two years ago. Kiehl’s travel retail division has been enjoying not only record breaking performance in its existing locations, but has also been a trailblazing force in travel retail, planning to open eight new stores across the Americas this year alone. From its humble beginnings 160 years ago in New York City, the vision of John Kiehl is spreading across the globe to cities, countries and now airports at full speed. Travel retail has been a focus for the brand over the past years as a way to take advantage of a booming business and rapidly growing brand awareness opportunity. Though its early

expansion was primarily focused on duty free spots like its stores in Miami and New York, its recent push has been in the duty paid arena, with store openings in Portland and the new international terminal in Atlanta. These shops have brought local street boutique concepts to an airport environment, focusing on Kiehl’s reputation for excellent service and exciting product offerings. Kiehl’s has shown its growing expertise in duty paid and has modified its original store plans to fit into different airports across a variety of passenger volumes. The company’s kiosk model in Tampa is an example of bringing the joy of Kiehl’s to a smaller airport without falling short of customers’ high

Kiehl’s branded store in Tampa airport

expectations for the company’s service or image. A compact concept store, through an innovative merchandising approach, is bringing New York’s West Village to an unexpected place. To fuel customer’s excitement around the blossoming brand, the company has instituted digital campaigns to make passengers aware of the presence of Kiehl’s while they are traveling through geo-location-based services like FourSquare and engage with their passionate audience on Facebook. Kiehl’s continues to delight passengers with fun digital specials and airport initiatives that bring surprise and delight to travelers across the Americas.

One of WDFG’s walkthrough stores at ASUR-run Cancun Airport

Passenger traffic at ASUR airports up 11.2% in August Mexico’s Grupo Aeroportuario del Sureste (ASUR) this week announced that passenger traffic at its airports increased by 11.2% year on year in August. In terms of domestic traffic, Cancun (+31.6%, or 120,845 passengers), Cozumel (+34.4%, or 2,481 passengers), Minatitlán (+35.1%, or 2,785 passengers) and Oaxaca (+22.9%, or 7,433 passengers) Airports all saw healthy increases in domes-

16

tic traffic. The only airport that posted negative year-on-year domestic traffic in August was Merida (-0.8%, or 759 passengers). Total domestic traffic in August stood at +19.6%. Notable increases in international traffic occurred in Huatulco (+38%, or 456 passengers), Minatitlán (+31.2%, or 152 passengers) and Cancun (+3.5%, or 25,078 passengers). The bulk of the total traffic increase,

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

however, came from domestic travel; international traffic across all of ASUR’s airports in August increased only 3.4%. In terms of total traffic, Cancun (+13.2%, or 145,923 passengers), Minatitlán (+34.9%, or 2,933 passengers) and Oaxaca (+20.6%, or 7,829 passengers) were again standouts. Total traffic across all of ASUR’s airports increased year on year by 11.2%, representing a total of 167,205 passengers.


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In Brief

Delta and OTG introduce iPads at Minneapolis-St. Paul International Airport

Mannah Duty Free inaugurates walkthrough at Asunción Airport Mannah Duty Free is inaugurating its walkthrough duty free store at Asunción Airport in Paraguay this month. While not a new store, the location was previously not a walkthrough. Mannah increased the size of the location by 40 square meters at the same time as it made the conversion to walkthrough. Apart from the obvious advantages of having 100% of travelers pass through the store, the spatial increase will bode well for key categories. Mannah has also announced that its 100-square-meter store in the five-star Hotel Bourbon is up and running. “The hotel caters to a lot of high-profile clientele,” says Mohamed Mannah, President of Mannah Duty Free. As such, the shop contains the highest-quality products in spirits, accessories, clothing, sporting goods and more. “The location is also very convenient, at 5 minutes from Asunción Airport,” Mannah adds. Other new duty free stores, including one in Rivera, Uruguay, are currently in the works, and Mannah is firming up the final details. Americas Duty Free will, of course, keep readers abreast of any new developments as they arise.

Delta Air Lines (NYSE: DAL) recently began the deployment of more than 250 iPads in three new restaurants on Minneapolis-St. Paul International Airport's Concourse G. Delta continues to transform the airport experience by providing travelers a new level of access to high-quality food and hitech amenities. New iPads located at each seat inside the restaurants will allow travelers to order catered and customized meals through an intuitive visual menu. Orders are then prepared fresh and delivered to their seat in 15 minutes or less. The three new restaurants include: MinniBar, an upscale sandwich bar with a menu designed by celebrity chef/host Andrew Zimmern; Mimosa, a French country eatery and raw bar with Chef Russell Klein of Meritage; and Shoyu, a modern Japanese restaurant with Tanpopo's Chef Koshiko Yonemura. Delta is working with its partner OTG to help redefine how an airport concourse can feel and look. In addition to customized food ordering from the iPads, a custom browser delivers entertainment by letting travelers easily log in to their Facebook, Twitter and personal email accounts. Travelers can also check their flight status, play games and watch the news through pre-loaded apps such as Bloomberg News. Once the customer is done using each iPad, personal information is securely removed the moment the home button is pressed and automatically deleted after two minutes of idle time. By the end of 2013, MSP's Concourse G will have 12 new local chef-driven restaurants and fresh markets, as well as more than 2,500 iPads for passengers to use in the restaurants and in the gate-house areas. Previously, Delta and OTG have deployed iPads and local, chef-driven restaurant concepts in LaGuardia Airport Terminals C and D. The full deployment of more than 4,500 iPads at three of Delta's hub airports will occur over the next year.

US international outbound travel up 4% in June The US Office of Travel and Tourism Industries (OTTI) reported this week that US citizen departures totaled 29.5 million travelers for the first six months of 2012. US travel to overseas markets reached 14.4 million, up 8% in the first six months. According to OTTI, regional results were as follows: • Europe: 5.4 million travelers (+6%) • Caribbean: 3.4 million travelers (+9%) • Asia: 2.2 million travelers (+9%) • Central America: 1.3 million travelers (+14%) • South America: 858,000 travelers (+6%) • Middle East: 761,000 travelers (+14%)

20

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

• Oceania: 274,000 travelers (+10%) • Africa: 183,000 travelers (+4%) • US travel to North American markets: 15.1 million (+1%) • Mexico: 10.2 million travelers (this represents a decrease of almost 1%, but air travel to Mexico was up 5% at 3.1 million travelers) • Canada: 4.9 million travelers (+5%) OTTI also reports that US travel to overseas locations claimed 49% of all US outbound international travel. Total US outbound travel by month was given as follows: January (+1%); February (+12%); March (+8%); April (flat); May (+1%); and June (+5%).


XXX G FT U J OB  D PN


Top Story: HK Global Duty Free

The liquor section at HKG’s flagship store in Laredo, Texas

Building

on strengths

HK Global Duty Free’s extensive experience catering to Mexican travelers on the border bodes well for its first move into airport duty free in Queretaro, Mexico BY RYAN WHITE K Global Duty Free (HKG) currently retains 11 duty free stores operating along the US southern border with Mexico. The company knows its consumers, largely Mexican Nationals traveling across the border, and has carved out a very respectable business positioned in Texas, Arizona and California by being one of the only consistently branded duty free retailers retaining new or recently opened stores. Alan Huxtable, Vice President of Commercial & Business Development at HKG, tells Americas Duty Free that in addition to the forthcoming openings of new fashion and accessories boutiques at HKG stores, the operator has expanded its buying team and placed a focus on developing private label brands across categories. By far the biggest news for HKG this year, though, is the planned opening of two airport duty free stores in Queretaro Airport just outside Mexico City. Huxtable hopes this move will eventually lead to additional airport store openings in Mexico and other lucrative Central and South American markets, not to mention US airports.

H 22

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

Fashion and accessories outperform As mentioned, HKG is finalizing the introduction of several new boutique concepts. The operator already has an established relationship with Lacoste, with a significant boutique located in the El Portal Laredo flagship store. The watch category was the impetus for other upcoming boutiques with Fossil and Guess. “We already enjoy significant business with Fossil, including watch brands such as Michael Kors, Diesel and DKNY. This business has grown substantially over the last 18 months,” Huxtable explains. “As a result it made absolute sense expanding into Fossil’s accessories and creating a boutique to showcase the expanded category offering with enhanced personalization presentation.” The situation with Guess is similar in that that the brand’s watches were selling well at HKG’s stores. As a result, Guess accessories will be introduced as well. “Guess has a well established track record, therefore introducing accessories in boutique format made sense,” Huxtable says. Fossil and Guess boutiques will initially be introduced in HKG’s El Portal Laredo venue and further expansion to other locations is anticipated.


Watches have been a booming business for HKG of late

Fernando Quintero

, the new electronics buyer, brings a wealth of experience in consumer electronics and developing private label brands

Elsa Gutierrez,

Robert Williams

a senior member of HKG’s management team, has moved from the operational side of the business to the merchandising side

HKG is also planning similar boutique concepts with beauty brands in primary store locations. The operator has done its due diligence by studying the market and potential. Huxtable mentioned popular brands such as Body Shop and Crabtree & Evelyn as possibilities. “There are some other fragrance brands that we’ve been working on for some time now to try to get launched, and there may be a big one coming up soon,” Huxtable hinted.

Tobacco: a vibrant and growing category Huxtable tells us that sales over the first eight months of 2012 were strong, particularly in the fashion and tobacco categories. While electronics has been difficult this year, largely because of issues relating to accessibil-

, who previously worked for companies the likes of L’Oréal, Lancaster Group and Tairo, is the new beauty and fashion buyer at HKG

ity of stock replenishment, HKG still remains the premier duty free retailer of electronics on the border and Huxtable sees great potential for the category going into the Q4 2012 trading season. HKG now deals direct with Philip Morris, which is “significant toward advancing category growth,” says Huxtable. In addition, the operator has already introduced four private label cigarette brands, with plans to possibly double the brand portfolio in the near future. In fact, HKG believes developing private label brands across categories to be an important part of its business strategy. “It delivers incremental sales to the overall results of the category,” Huxtable explains. “When you own your brand, you have greater flexibility, and markets demanding entry level access certainly exist. www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

23


Top Story: HK Global Duty Free

We already have two private label electronics brands and eventually we're even going to develop other private label programs in other categories.”

Moving south HKG’s new stores in Otay Mesa (280 square meters) and San Ysidro (260 square meters) are completely finished, Huxtable tells us. At press time the operator was waiting for US Customs and Border Protection to approve the permits, but HKG expected the stores would be up and running by September. The new locations mean that HKG now has three stores in California in addition to its locations in Arizona and Texas. “We’re expanding our portfolio—trying to diversify our product range,” Huxtable says. “The reason we’re opening two additional stores in California is that we originally had one store in Calexico and the business on the west coast for us has grown dramatically, so it was important to expand in California with the two additional stores.”

A vibrant economy “Even though challenges often exist along the border, in the interior of Mexico the economy is extremely vibrant,” Huxtable says. “Numerous international companies are established in Mexico and many business travelers—especially elite frequent business travelers—prefer to fly private or from smaller airports located around Mexico City—Queretaro, Toluca and Leon, for example. As a result, these second tier airports are growing and many operators are not paying attention to them.” Huxtable tells us that Queretaro is currently the fastest growing city in Mexico and has a reputation for being one of the safest. The city also has the highest per capita income of any city in the country. The airport facilities are new and some major international companies—Samsung and Kellogg’s, for example—are set up very close by. Queretaro is a beautiful area of the country and given its relative safety has attracted its fair share of retired expats. The airport is already receiving frequent passengers originating from the United States, Canada and Asia, and given the fact that Mexico City is an important destination for some of the world's largest international companies, Huxtable foresees even more business travel to and from Queretaro Airport in the future. In fact, Delta Air Lines Inc. and Grupo Aeromexico SAB announced in early September that they will build a maintenance, repair and overhaul center in Queretaro, thereby further bolstering the region’s growing aerospace industry. The facility at Queretaro Airport will replace the current one in Guadalajara and will have the capacity to service seven airplanes at a time. The airlines are said to be investing US$50 million in the center. Queretaro is already home to a Bombardier Inc. aircraft fuselage plant, factories of French airplane engine maker Safran SA. and a General Electric Co. turbine engineering center. The helicopter unit of European Aeronautic, Defense & Space Co. is also building an aircraft parts plant there.

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“Our focus is to go after the second tier, emerging airports and use that as a platform to move into other markets, including back into the US airport market.”

Alan Huxtable, Vice President of Commercial & Business Development, HK Global Duty Free

The big news for HKG is that the operator has finalized an agreement to open its first airport operations in the city of Queretaro, Mexico, just northwest of the Distrito Federal. A new airport has been developed and HKG has initially signed concession agreements for two departures stores, with one more store—arrivals this time—coming online sometime in the future. Of course, HKG has done its due diligence and Huxtable tells us this important first step into airport retailing is anything but a lark. He’s been negotiating with airport officials in Queretaro since November 2011 to finalize this first entry and is already investigating other emerging second tier airport locations in Mexico’s interior. Of course, the word “secondary” should be qualified. Mexico City can only be described as massive, and in much the same way as Brazilians in large city centers have begun opting to fly from secondary airports near Sao Paolo or Rio de Janiero, so too are Mexicans choosing airports like the one in Queretaro. In Asia as well, the term “secondary airport” is deceiving as many serve cities larger than most major European urban areas. As airport infrastructure comes under increasing scrutiny in Latin America and frequent travelers continue to look for alternatives to congested hubs, it’s easy to see why Huxtable sees a world of possibilities in these tenders, many of which tend to fly under the radar of bigger worldwide operators. Indeed, the Mexican consumer has been HKG’s bread and butter since its very first border store. Despite the fact that more airport retail experience than HKG possesses is generally required to secure airport tenders in the rest of North America, the Queretaro opportunity appears to be a solid match—an emerging airport ready and willing to take advantage of overspill from a large metropolitan area with a taxed airport infrastructure and an operator eager to prove itself and eventually make the move to bigger airport operations. “Our focus is to go after the second tier, emerging airports and use that as a platform to move into other markets, including back into US airports,” explains Huxtable.

Adding to the team HKG continues to add people to its growing team, largely as a result of the forthcoming expansion to


the business. Two new buyers have come on board and Elsa Gutierrez, a senior member of HKG’s management team, has moved from the operational side of the business to the merchandising side. Robert Williams, who has had a long tenure in the duty free industry, primarily on the supplier side with companies like L’Oréal, Lancaster Group and Tairo, is the new beauty and fashion buyer. The other new buyer recruited is Fernando Quintero, who will handle electronics. He brings a wealth of experience in consumer electronics and developing private label brands working throughout Latin America and the Caribbean.

Putting experience to good use Huxtable tells us that while it's obvious that some changes will have to be made when moving from a border store retail to an airport retail model, the branding of the new stores will remain essentially the same. “Whether it be at the border stores or the airport stores, we want to keep consistency in our branding; we want the traveler to see the same look, the same image,” he explains. The product offering will necessarily change to suit diverse business travelers in Queretaro Airport. Nonetheless, HKG's experience in selling to Mexican travelers will come in handy. In fact, given the number of car assembly plants in Mexico, business travelers actually make up a sizeable portion of the operator's business at the California stores. As such, HKG already has a firm handle on the types of products that these consumers expect to see when they visit HKG duty free stores. “We think it’s a logical move,” says Huxtable, “because we already have distribution centers and stores positioned along the southern border, from Texas to California. Therefore, we can easily support new commercial operations in the center region of Mexico. Furthermore, we now have a strong buying team with diverse backgrounds—coming from wholesale, from product development and even from the operational side—and I think that well positions HKG c for what we want to achieve in the coming year.” The liquor and tobacco section at HKG’s third store in Laredo, Texas

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

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Top Story: HK Global Duty Free

HKG’s operations in Otay Mesa, San Diego

Aprovechar

los puntos fuertes

La extensa experiencia de HK Global Duty Free prestando servicios a los viajeros mexicanos en la frontera propicia su primera incursión en el sector duty free de aeropuertos en Querétaro, México n la actualidad, HK Global Duty Free (HKG) cuenta con 11 tiendas duty free operando en la frontera sur de los Estados Unidos con México. La compañía conoce a sus consumidores, fundamentalmente mexicanos que cruzan la frontera, ha logrado un negocio muy respetable ubicado en Tejas, Arizona y California, y es uno de los únicos minoristas duty free de marca consistente con tiendas nuevas o recién inauguradas. Alan Huxtable, Vicepresidente de Desarrollo Comercial y Negocios de HKG, le dijo a Americas Duty Free que además de las próximas inauguraciones de nuevas boutiques de modas y accesorios en las tiendas HKG, el operador ha ampliado su equipo de compras, y se ha enfocado en el desarrollo de marcas privadas en las diferentes categorías. Sin embargo, hasta el momento, la mejor noticia de este año para HKG es la apertura planificada de dos tiendas duty free en el Aeropuerto de Querétaro cerca del Distrito Federal. Huxtable espera que esta decisión lleve finalmente a otras inauguraciones de tiendas de aeropuerto en México, así como en otros mercados lucrativos de Centro y Suramérica, sin mencionar a aeropuertos de los Estados Unidos.

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THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

Excelente rendimiento en modas y accesorios Como se mencionó anteriormente, HKG está finalizando la incorporación de varios conceptos nuevos de boutique. El operador ya ha creado una alianza con Lacoste, reteniendo un significativa boutique ubicadas en la tienda insignia de El Portal Laredo. La categoría de relojes fue el impulse para otras próximas boutiques con Fossil y Guess. “Ya tenemos negocios significativos con Fossil, incluyendo marcas de relojes como Michael Kors, Diesel y DKNY. Este negocio ha crecido sustancialmente en los últimos 18 meses”, explicó Huxtable. “Como resultado, fue absolutamente lógico ampliarse a los accesorios Fossil y crear una boutique para mostrar la oferta ampliada de la categoría con mejor personalización”. La situación con Guess es similar en que los relojes de la marca se vendieron muy bien en las tiendas HKG. Como resultado, los accesorios Guess se incorporarán también. “Guess tiene una trayectoria bien establecida, por lo que incorporar accesorios en el formato de boutique tuvo sentido”, añadió Huxtable.


Top Story: HK Global Duty Free HKG already has an established relationship with Lacoste, retaining significant boutiques located in the El Portal Laredo flagship store

The existing Lacoste boutique at the El Portal store

Las boutiques Fossil y Guess serán introducidas inicialmente en la instalación de HKG en El Portal Laredo y se anticipan otras incorporaciones en otras tiendas. HKG también tiene en proyecto conceptos similares de boutique con marcas de belleza en tiendas principales. El operador se ha esforzado en estudiar el mercado y el potencial. Huxtable mencionó marcas populares como Body Shop y Crabtree & Evelyn como posibilidades. “Hemos estado trabajando durante algún tiempo en posibles lanzamientos de algunas marcas de fragancias, y pronto presentaremos una muy importante”, reveló Huxtable.

Tabaco: una categoría vibrante y en crecimiento Huxtable nos aseguró que las ventas en los primeros ocho meses del 2012 fueron sólidas, particularmente en las de modas y tabaco. Si bien la venta de electrodomésticos ha sido difícil este año, debido en gran medida a problemas relacionados con la accesibilidad a suministros, HKG sigue siendo el principal minorista duty free en la venta de electrodomésticos en la frontera, y Huxtable le ve un gran potencial a la categoría en la temporada comercial del otoño del 2012. 28

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

HKG negocia directamente con Philip Morris, lo cual es “significativo en lo que respecta al crecimiento de la categoría”, según Huxtable. Además, el operador ya ha incorporado cuatro marcas privadas de cigarrillos, con planes de duplicar posiblemente el portafolio en un futuro cercano. De hecho, HKG estima que el desarrollo de marcas privadas en las diferentes categorías es parte importante del avance de su estrategia comercial. “Proporciona ventas graduales a los resultados generales de la categoría”, destacó Huxtable. “Cuando se es dueño de su propia marca, se dispone de mayor flexibilidad, y los mercados para este tipo de producto existen. Ya contamos con dos marcas privadas de electrodomésticos, y posteriormente vamos a crear otros programas de marcas privadas en otras categorías”.

Expansión hacia el Sur Las nuevas tiendas de HKG en Otay Mesa (280 metros cuadrados) y San Ysidro (260 metros cuadrados) están totalmente terminadas, nos afirmó Huxtable. Al cierre de esta edición, el operador estaba esperando por el Departamento de Aduanas y Protección de Frontera de los Estados Unidos para la aprobación de los permisos, pero HKG espera que las tiendas estén funcionando en septiembre. Las nuevas instalaciones equivalen a que HKG tiene ahora tres tiendas en California, además de las existentes en Arizona y Tejas. “Estamos ampliando nuestro portafolio, tratando de diversificar nuestra gama de productos”, explicó Huxtable. “La razón por la cual estamos inaugurando dos tiendas adicionales en California es que originalmente teníamos una en Calexico, y el negocio para nosotros en la Costa Oeste ha crecido enormemente, por lo que era importante ampliarse en California con las dos tiendas adicionales”. La gran noticia para HKG es que el operador ha concluido un convenio para inaugurar sus primeras operaciones de aeropuertos en la


Top Story: HK Global Duty Free

ciudad de Querétaro, México, que queda justo al noroeste del Distrito Federal. Al crearse un nuevo aeropuerto, HKG firmó inicialmente convenios de concesión para dos tiendas en la sección de salidas, y otra tienda más—esta vez en la sección de llegadas—se creará en el futuro. Por supuesto, HKG ha hecho la gestión debida, y Huxtable nos dijo que este primer paso importante de incorporarse al sector minorista de aeropuertos es cosa seria. Él mismo ha estado negociando con funcionarios aeroportuarios de Querétaro desde noviembre del 2011 para finalizar esta primera fase, y ya está investigando otros aeropuertos secundarios emergentes en el interior de México. Por supuesto, el término “secundario” debe ser aclarado. La Ciudad de México sólo puede ser descrita como enorme, y de forma muy similar a los brasileños de grandes centros urbanos, quienes han comenzado a volar desde aeropuertos secundarios cerca de Sao Paolo o Rio de Janeiro; los mexicanos están escogiendo aeropuertos como

Una economía vibrante “Aunque todavía existen desafíos en la frontera, en el interior de México la economía es extremadamente vibrante”. Agregó Huxtable. “Numerosas compañías internacionales están establecidos en México y muchos viajeros de negocios—especialmente la élite de los viajeros frecuentes de negocios—prefieren hacer vuelos privados o desde aeropuertos más pequeños ubicados en los alrededores de la Ciudad de México: Querétaro, Toluca y León, por ejemplo. Como resultado, estos aeropuertos secundarios están aumentando, y muchos operadores no les están prestando atención”. Huxtable nos dijo que Querétaro es actualmente la ciudad de más rápido crecimiento en México, y tiene la reputación de ser una de las más seguras. Además, tiene el mayor ingreso per cápita en comparación con otras ciudades de esa nación. Las instalaciones del aeropuerto son nuevas, y algunas compañías internacionales importantes —Samsung y Kellogg, por ejemplo—están instaladas a muy escasa distancia. Querétaro es una hermosa zona del país, y dada su relativa seguridad, ha atraído una considerable porción de expatriados jubilados. El aeropuerto ya está recibiendo pasajeros frecuentes que viajan desde los Estados Unidos, Canadá y Asia, y dado el hecho de que la Ciudad de México es un destino importante para algunas de las principales compañías internacionales del mundo, Huxtable pronostica muchos más viajes de negocios hacia y desde el Aeropuerto de Querétaro en el futuro. De hecho, Delta Air Lines Inc. y Grupo AeroMéxico SAB anunciaron a principios de septiembre la construcción de un centro de mantenimiento, reparación y operaciones en Querétaro, lo cual estimulará aún más la creciente industria aeroespacial de la región. La instalación del Aeropuerto de Querétaro sustituirá al existente en Guadalajara, y tendrá la capacidad de prestar servicios a siete aviones simultáneamente. Se afirma que las aerolíneas están invirtiendo US$50 millones en el centro. Querétaro ya es sede de una planta de construcción de fuselajes de aviones Bombardier Inc., instalaciones de Safran SA., fabricante francés de motores de aviones, y un centro de ingeniería de turbinas de General Electric Co. Asimismo, la unidad de helicópteros de European Aeronautic, Defense & Space Co. también está construyendo allí una planta de piezas de repuesto para aviones.

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THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

el de Querétaro. También en Asia el término “aeropuerto secundario” es engañoso, pues muchos les prestan servicio a ciudades más populosas que la mayoría de las principales áreas urbanas europeas. En la medida que la infraestructura aeroportuaria está bajo un creciente escrutinio en Latinoamérica, y los viajeros frecuentes siguen buscando alternativas a centros congestionados, es fácil ver por qué Huxtable ve un mundo de posibilidades en esas licitaciones, muchas de las cuales tienden a volar bajo el radar de mayores operadores mundiales. En realidad, el consumidor mexicano ha sido el sustento principal de HKG desde la apertura de su primera tienda de frontera. A pesar de que generalmente se debe poseer más experiencia en tiendas de aeropuerto que la que posee HKG para garantizar licitaciones de aeropuertos en el resto de Norteamérica, la oportunidad en Querétaro parece ser un acuerdo ideal: un aeropuerto emergente listo y dispuesto a aprovechar el exceso de un área metropolitana sobrecargada en términos de infraestructura, con una población de 20.5 millones, y un operador ávido de ponerse a prueba, y tomar finalmente la decisión de pasar a operaciones aeroportuarias de más envergadura. “Nuestro objetivo es introducirnos en aeropuertos emergentes de segundo nivel, y usarlos como plataformas para penetrar en otros mercados, incluyendo los aeropuertos estadounidenses”, añadió Huxtable.

Nuevas incorporaciones al equipo HKG sigue incorporando personal a su equipo creciente, en gran medida como resultado de la próxima expansión del negocio. Dos nuevos compradores ya están “a bordo”, y Elsa Gutiérrez, miembro principal del equipo de gerencia de HKG, ha pasado de la sección operativa del negocio a la de comercialización. Robert Williams, quien tiene una extensa trayectoria en el sector duty free, principalmente en el campo de proveedores con compañías como L’Oreal, Lancaster Group y Tairo, es el nuevo comprador de belleza y modas. El otro nuevo comprador reclutado es Fernando Quintero, quien se hará cargo de los electrodomésticos, y aporta un caudal de experiencia en los electrónicos para el consumidor, y la creación de marcas privadas que operan en Latinoamérica y el Caribe.

Aprovechar la experiencia Huxtable añadió que, si bien es obvio que se necesitarán algunos cambios en el tránsito de tienda minorista de frontera a modelo de tienda de aeropuerto, la identidad de marca de las nuevas tiendas seguirá siendo esencialmente la misma. “Ya sea en las tiendas de frontera o en las de aeropuertos, queremos mantener la coherencia de nuestra identidad de marca. Queremos que el viajero vea la misma apariencia, la misma imagen”, explicó. La oferta de productos experimentará cambios para estar en correspondencia con los diversos viajeros de negocios del Aeropuerto de Querétaro. Aún así, la experiencia de HKG en la venta a los viajeros mexicanos será de gran utilidad. De hecho, dada la cantidad de plantas de ensamblaje de automóviles en México, los viajeros de negocios conforman una porción notable del negocio del operador en las tiendas de California. Como tal, HKG ya tiene un firme control en los tipos de productos que esos consumidores esperan cuando visiten las tiendas duty free de HKG. “Pensamos que es un paso lógico, porque ya tenemos centros de distribución y tiendas ubicadas en la frontera sur, desde Tejas a California. Por tanto, podemos respaldar fácilmente nuevas operaciones comerciales en la región central de México. Más aún, contamos actualmente con un potente equipo de compradores con procedencias diversas— del sector mayorista, de desarrollo de productos e incluso de la parte operativa—y pienso que esto ubica a HKG en una posición ventajosa para lo que queremos lograr el año próximo”, concluyó Huxtable. c


London Supply

Attendees to this year’s ASUTIL conference in Iguazú, Argentina were treated firsthand to the London Supply experience

“Passionately dedicated” The one-of-a-kind experience for which London Supply is known is because of the hard work of the people it employs, says Commercial Manager Magdalena Ducos BY RYAN WHITE hile the London Supplyhosted Gala Dinner at this year’s ASUTIL conference in Iguazú, Argentina was certainly a night to remember, the fact is that going above and beyond to add an element of the spectacular to duty free retailing is something that the operator strives to accomplish every day across all its stores. Americas Duty Free recently spoke with London Supply’s Commercial Manager Magdalena Ducos about what it takes to maintain such a high level of customer service. She told us in no uncertain terms that hiring the right people is the key to continually exceeding the expectations of consumers and suppliers. “Everything we do would be impossible without our team,” she explains. “They work tirelessly to reach the results that we’ve achieved to date. The excellence that London Supply is known for is really a reflection of our employees’ excellence—each of them sees reaching new heights of customer service as a personal challenge. And perhaps what makes us different as a company is the value we place in our people.” A good indicator of the symbiotic relationship London Supply has with its people is that turnover is extremely low. There are numerous team members that have been with London Supply for over a decade and one employee has been with the company for over half a century. The passion London Supply’s employees have is palpable at every level of the business, says Ducos, from management straight down to the staff on the floor. And she has no doubts about how significantly a company’s employees can affect business, noting the direct link

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between the quality of the customer experience and overall supplier satisfaction. “Happy customers will purchase and ultimately the experience we give to the consumers will be reflected in our sales,” she explains. Indeed, across all of London Supply’s stores average spend was up 8% for June and July. Traffic was up 27%, with sales staying ahead of this statistic at +29%. Ducos notes that with the busy holiday season approaching, London Supply is planning more unique promotions to add an experiential element to duty free shopping. During the Gala Dinner at this year’s ASUTIL conference attendees were treated to a

of Italian or Brazilian spirits and may make an appearance in future promotions. In other news, London Supply is continuing construction on its new parking structure in Iguazú, which will hold more than 600 cars when completed. The project is expected to be finished late this year or early next. Once the parking is complete, the operator will move on to a big expansion project at the Iguazú store that will see the location double in size. A 400square-meter dedicated confectionery section—the category currently shares space with spirits—will also be created. There will be a Home & Design department near the front of the store, and in fact the operator just opened a 400-square-meter Home & Design store in Tierra del Fuego to complement its existing duty free operations in the area.

“Happy customers will purchase and ultimately the experience we give to the consumers will be reflected in our sales.”

Magdalena Ducos, Commercial Manager, London Supply

performance by Italian opera singers, cleverly disguised as anything from security guards to London Supply employees, who spontaneously broke out into choreographed performances during the night. Near the end of the evening a celebration of Rio’s world-famous Carnival surprised guests, complete with Brazilian samba dancers and musicians. In addition to new promotions currently in the planning stages, Ducos notes that the two above activities have worked well in the past with tastings

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

In the end, though, whether it’s a question of sales, supplier relations or the company’s growth, Ducos gives credit where credit is due: “A company can have the best ideas and business opportunities, but nothing will come of it without a passionately dedicated team that is always looking to go one step further,” she concludes. “I’d like to take this opportunity to thank our more than 800 employees for their hard work. It is because of them that we proudly call ourselves the ‘London Supply family.’” c


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Monalisa

The end goal

Monalisa’s 2012 has been highlighted by numerous renovations and store openings, all with the final objective of ensuring customer satisfaction BY RYAN WHITE onalisa’s flagship story in Ciudad del Este has recently been undergoing a number of renovations on various floors as a means of celebrating its 40th year of operations and ensuring that shoppers have a comfortable and safe environment in which to make their purchases. On an average day, Monalisa welcomes between 2,000 and 2,500 shoppers, with high season bringing in as many as 4,000 consumers a day. As a result, all the departments in the operator’s flagship store are constantly monitored and updated with the latest brands and furniture. For example, renovations are ongoing in the perfumes and cosmetics department. This work includes the personalization of furniture and the incorporation of new brands such as Ivo Pitangui and Dior. Existing brand spaces for La Prairie, Sisley and Orlane have been updated, and currently in process is the modernization of the Biotherm, Estee Lauder, Clinique and Lancome sections of the perfumes and cosmetics department. “In the months to come we will also be adding new brands such as Givenchy and Clarins,” says Patricia Cáceres, Director of Publicity at Monalisa. Other brands are also being introduced down in Monalisa’s vast wine cellar. The operator is considered by many French wine connoisseurs as the last bastion for high-end, Old World wines in South America. While many

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retailers have jumped on the New World bandwagon, over a period of years Monalisa identified a need among its clientele for French wines that are extremely difficult to find anywhere else in the region. Italian wine lovers will be pleased to note that new offerings in the cellar include wines from Boroli, Dreolino, Paladin, Poderi Angelini, Saiagricola, Tenute Barone Di Valforte, Pio Cesare, Monte Tondo, Sensi, Donna Fugata and Cordella Maddalena. Of course, despite its concentration on Old World offerings, Monalisa also realizes that there is a market for New World wines. As such, the operator has recently added offerings from South Africa in the form of Rupert & Rothschild wines. Hungarian wines from Aszu and Eszenciay Mandolás have also been listed. In addition to the above, renovations have now begun on the watch section of the store, particularly in the Cartier and Bvlgari boutiques. Monalisa has also widened its selection of watches, with new listings from Chopard, Jeager le Coultre, Richard Mille, Parmigiani, Roger Dubuis and others. The furniture in the watch department is also being renovated and a redistribution of space is taking place among existing watch brands to accommodate the new listings.

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

From humble beginnings to a Paraguayan tourist destination in its own right, Monalisa is celebrating its 40th anniversary with renovations and new store openings

In the months ahead, Monalisa will be remodeling Bistro Monalisa and moving it to the sixth floor of the megastore. It was deemed that the new location will be more convenient for shoppers, Cáceres explained. “We will also be renovating the Home and Gourmet sections of the store and making some small changes to the electronics and computer departments,” Cáceres went on to tell us. While overseeing the significant renovations in the massive flagship store is a big job in its own right, when we spoke with Cáceres at press time Monalisa was also in the midst of fitting out its sixth Aphrodite Perfume shop in Asunción, which is now open in the new San Lorenzo Shopping mall. The company has plans to open its seventh Aphrodite shop this month at Shopping Pinedo, located in Gran Asuncion, which is the metropolitan area of Paraguay’s capital. “The modernization of our existing stores and growing our business by opening up new locations are ongoing activities for Monalisa,” said Cáceres. “The end goal is always to better serve our shoppers by ensuring that their experience at our stores is unforgettable— from the moment they walk in to the time that they leave. And lastly, it’s important for us not only to satisfy shoppers’ need in terms of the products they’re searching for, but also to make sure they know everything we sell is c backed by Monalisa and guaranteed.”


WDFG makes a point of keeping up on all the latest trends in fragrances

Food is a popular category at WDFG stores across the Americas

World Duty Free Group

Spanning the Americas

Pedro Castro and Padraig Drennan, respectively in charge of WDFG’s Latin American and North American business arms, discuss recent and upcoming innovations BY RYAN WHITE mericas Duty Free recently sat down with Pedro Castro, International Director of Operations at World Duty Free Group (WDFG), and Padraig Drennan, Managing Director UK and North America, to discuss the company’s business across the Americas. In addition to learning about some of the trends apparent across WDFG’s operations in the region, Americas Duty Free discovered that promotions, renovations and numerous new store openings are on the horizon for the operator as the year progresses. In terms of Americas as a whole, Castro tells us that WDFG’s strongest performing region is Latin America, with Chile, Peru and Mexico leading the growth. Not surprisingly given the slow economic recovery in the US, Drennan notes that Canada is experiencing the strongest performance in North America. Across the Americas, the operator’s top selling categories in terms of sales are Beauty, Spirits and Tobacco, followed closely by Food. In Latin America, brands that lead the pack are for the most part the usual suspects: Chanel, Dior, Lancôme, Armani, Estee Lauder and Clinique perform well in the Beauty category; Chivas Regal, the Johnnie Walker portfolio, Absolut, Baileys and Bacardi are selling in the Spirits category; and Marlboro, Kent and Camel rule the Tobacco category. In North America, the breakdown of brands is slightly different: The Beauty category is benefitting from strong performers such as Estee Lauder, Lancôme, Chanel, Dior, La Mer and Mac; Peller Ice Wine, Crown Royal, Jack Daniels and Absolut sell well in Spirits; and Malboro, Benson & Hedges and Canadian Classics are the tobacco products of choice for travelers in North America.

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“In North America the biggest spenders are the Chinese passengers, followed by Koreans, Japanese and Brazilians.”

Padraig Drennan, Managing Director UK and North America, WDFG

Recent listings include Johnnie Walker Gold Reserve in Spirits and Camel White and Black variants in Tobacco. Castro also tells us that WDFG makes a point of keeping up to date on all the latest fragrances given the popularity of its Beauty category with shoppers.

Who’s buying? With regard to who is actually making the lion’s share of the purchases, Castro tells us that the answer necessarily depends on the country. “All kinds of passenger profiles are purchasing—it very much depends on the airport,” he explains. “Chileans and Peruvians buy the most in their ‘home’ airports, due in part to our long-standing presence in these countries.” Castro goes on to tell us that in Mexico and

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

the Caribbean WDFG has a high percentage of Americans and Canadians shopping in its stores. While they are mostly tourists, he says there is a portion of business travelers as well. “Elsewhere across the Americas, Brazilians and Argentineans are high-spending nationalities,” adds Drennan. “Forty percent of our customers are leisure travelers and sixty percent are business travelers. In North America the biggest spenders are the Chinese passengers, followed by Koreans, Japanese and Brazilians.” As mentioned, WDFG has seen a trend toward growth in Beauty sales, as well as an increase in average transaction value. As such, the operator has begun tailoring its marketing campaigns as a means of capitalizing on these

Airport operator ASUR was very supportive during the 15% off promotion in Cancun and signage could be found throughout the airport informing travelers


“All kinds of passenger profiles are purchasing. Chileans and Peruvians buy the most in their ‘home’ airports, due in part to our long-standing presence in these countries.”

Pedro Castro, International Director of Operations, WDFG

trends and also introducing new brands and product lines that meet customer demand.

A beautiful promotion During July and August, WDFG ran a major promotion in Mexico Duty Paid called simply “15% off.” Airport operator ASUR, says Castro, was very supportive, and during the promotion signage could be found throughout the Cancun Airport informing travelers of the campaign. During the promotional period, prices in the entire beauty category were cut by 15%. Given that beauty was already a popular category with WDFG’s customers, it’s easy to guess the result. “We saw an increase in the average transaction value, spend per head and overall sales versus the local market,” says Castro.

Football frenzy Attendees to this year’s ASUTIL conference in June may remember that at the Gala Dinner, London Supply auctioned off a soccer jersey signed by the Argentinean national team. WDFG won the jersey and they certainly put it to good use during August in Mexico, Peru and Chile. As the airports in Santiago, Lima and Cancun all have a high percentage of Argentinean travelers, WDFG exhibited the jersey in a special glass display case at each of the airports. “We expect to drive store penetration by allowing customers to take their pictures beside the jersey,” Castro told us at the start of the promotion. Customers spending US$50 or more during the promotional period were given a scratch

The Herradura activation at WDFG’s shop in Cancun’s T3 Concourse offered tasting opportunities as well an interactive iPad display

Going premium in Cancun Of course, more than a few tourists traveling to Cancun will want to bring home a bottle of Mexico’s most famous export—tequila. WDFG and Brown-Forman partnered in the summer to ensure that tequila fans got only the best on their visit to Mexico. In a first for its Mexico market, Brown-Forman recently unveiled a new, elaborate Herradura display in Cancun Airport.

The display, which was strategically located in the center of the WDFG shop in the T3 Concourse, not only showcased Herradura, the number one selling premium tequila in Mexico, but also offered tasting opportunities as well as an interactive iPad display that outlined the brand’s unique attributes, such as all-natural fermentation. The display was in operation through the end of August.

and win card which gave them the chance to win 5, 10 or 15% off their next purchase at any of WDFG’s stores in the three participating airports before October 31, 2012. Participants were also given a code with which to participate in a grand prize raffle for the signed jersey. The winner will be announced on November 15, 2012 via a special website designed specifically for the promotion.

Growing the business Of course, in addition to making sure consumers are always able to find the latest products and participate in fantastic promotions, WDFG regularly participates in tenders to expand its already considerable reach while at the same time renovating existing stores to keep them up to date. Castro told us that no fewer than four major store openings are planned, with some already serving the traveling public by the time the TFWA WE issue of Americas Duty Free hits the magazine racks in Cannes. Just opened in Q2 in Jamaica’s Sangster Airport is a 600-square-meter walkthrough duty free store. Sangster is one of the largest and most modern airports in the Caribbean, and is also an important hub for many airlines operating in the region, with capacity to receive 9 million passengers per year. The airport is located in one of the most important tourist areas in Jamaica, Montego Bay, where last year it received over 3 million passengers. “This new concession continues our business expansion plan in markets with important growth potential, and where we can provide added value to passengers,” said Castro. “We have been working on this new project in collaboration with the airport authorities, who have placed their trust in the experience and knowhow our company has acquired over many years.” The second quarter also saw the opening of a new Bijoux Terner store measuring 60 square meters in Curaçao. The fourth quarter will see an 843-square-meter walkthrough store opening in Los Cabos, Mexico; a 170-squaremeter arrivals shop in Belem, Brazil; and another store in Belem, this time departures, measuring 140 square meters. “We also opened a Thinking Canada store in Vancouver Airport in September,” says Drennan. The store is designed to make tourists’ travel memories last just a little bit longer by offering them a wide selection of sights, tastes and experiences from Vancouver and Canada at large. Travelers can find a wide selection of Canadian souvenirs, including First Nations art, Vancouver-themed clothing, ammolite jewelry and toys. In addition, Thinking Canada stocks officially licensed Vancouver Canucks c gear for hockey fans.

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

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Reports indicate that Brazil’s economy is softening and the recent Federal strike in the country hasn’t helped matters at major airports; the question now is what we’ll see from the country in the second half

Dufry

Holding strong

South America shines for Dufry in H1, but can the recently acquired stores in Uruguay, Argentina and Ecuador pick up where Brazil may leave off in the second half? BY RYAN WHITE ews from powerhouse duty free operator Dufry indicates that the company continued to perform strongly in the first half of 2012. While South America performed particularly well for Dufry largely because of the non-organic growth generated from last year’s acquisitions, it remains to be seen what the second half holds. With the Federal workers’ strike in Brazil playing havoc with some of the country’s biggest airports in the third quarter, Dufry may have to rely even more on its new acquisitions in Argentina, Ecuador and Uruguay to see continued growth in South America in the second half. In terms of first-half numbers, there’s certainly nothing to grumble about. Turnover growth was pegged at 28.4% and gross margin increased by 0.8 percentage points to reach 58.8%, while EBITDA grew by 48.4% to CHF 220.1 million. EBITDA margin reached 14.5%, or 190 bps higher than in the same period in 2011. Turnover increased by 28.4% in the first half of 2012 and reached CHF 1,517.4 million (US$1,553.9 million) versus CHF 1,181.3 million (US$1,209.7 million) one year earlier. Organic growth was 7.5% with like-for-like growth contributing 4.9% and new concessions and expansions adding 2.6%. While foreign exchange swings resulted in a positive translation effect of 1.4%, acquisitions contributed 19.5% to turnover growth in the half year of 2012. Region Central America & Caribbean increased its turnover by 8.1% to CHF 193.6 million (US$201.3 million) compared to CHF 179.1 million (US$183.6 million) in the first half of 2011. “The increase in turnover of 5.9% (CER) remains a result of the good market conditions in Mexico and Dominican Republic, where we saw strong turnover growth, offsetting the weak performance of our

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shops in the English speaking Caribbean,” noted Dufry. Region South America’s turnover was CHF 546.7 million (US$560.6 million) in the year to June, representing a growth of 58.6% from the CHF 344.7 million (US$353.3 million) amounted in the same period of 2011, or 55.7% (CER). The consolidation of the operations acquired last year in Argentina, Uruguay and Ecuador was the main growth contributor for the region and the new businesses have been delivering results as expected, reports Dufry. The Brazilian business had a soft performance due to lower economic growth in Brazil and capacity constraints.

our margins. We also generated a significant free cash flow allowing us to deleverage considerably over the last three quarters. Our last acquisitions continue to perform as expected and the first synergies generated give us the confidence that we are in the right track for achieving our goals. Once more, thanks to our global diversification, we could balance differing performances across the regions and deliver profitable growth. “Creating a basis for the continuation of our strategy, we have defined a new organization structure,” Diaz continued. “Our regional configuration has been redefined and responsibilities pushed down to regional level. At the

“Our last acquisitions continue to perform as expected and the first synergies generated give us the confidence that we are in the right track for achieving our goals.” Julian Diaz, CEO, Dufry Group Turnover of Region North America grew by 13.4%, totaling CHF 386.7 million (US$396.4 million) for half year 2012 compared to CHF 341.1 million (US$349.7 million) for the same period last year. “The double digit turnover growth of 10.1% (CER) illustrates once again our solid business model in the region, backed by a continued expansion of our footprint,” Dufry explained. “By the same token, the duty free operations continue to perform well.” Julian Diaz, CEO of Dufry Group, commented: “Dufry managed once more to deliver a strong set of results. Thanks to our disciplined approach, we increased turnover as well as

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

same time we will centralize functions where we can generate economies of scale, such as the creation of a unified procurement platform and the consolidation of logistics. The changes, which are expected to be fully implemented by September, will allow the company to sustain our focus on growth and efficiency. “Global prospects for the industry remain positive with an expected 4 to 5% increase in the number of international passengers in the short and medium term,” Diaz concluded. “There are substantial regional differences though, and some markets remain fragile. We will therefore continue to be alert to the develc opment in all our operations.”


Visit us at the PARLUX FRAGRANCES Booth in the GREEN VILLAGE Stand M64 Nude by Rihanna™ is a registered trademark owned and/or controlled by PARLUX FRAGRANCES, LLC, protected by trademark registrations and/or pending applications, as well as other laws, and are used under license by PARLUX FRAGRANCES, LLC. All rights in and to such marks are reserved by Roraj Trade LLC.


LS travel retail North America

Cause and effect

With tablets, MacBooks and a wide range of electronic accessories, iStore has become a onestop shop for travelers who prefer electronic media over more traditional forms

LS travel retail’s iStore in Boston Logan Airport

LS travel retail North America finds that strong growth is a natural result of focusing on driving value for airport partners and engaging consumers BY RYAN WHITE

t’s been a stellar year and a half for LS travel retail North America (LS). The operator has opened 14 retail locations since the beginning of 2011 and another 8 to 10 stores are set to open to the traveling public in the coming months. Across the company’s various retail concepts, including Relay convenience stores, Boutique iStore and some innovative automated retail solutions for airports that don’t have the space for a full-sized iStore, LS currently operates a staggering 270 retail locations in Canada, the US and the Caribbean. The operator has proven to be exceptionally versatile in the depth and breadth of its retail offerings and very proactive in its dealings with airport operators, and President and CEO Gerry Savaria tells us that the company has no plans to stop at the current number of locations. Upcoming is a recent deal to open two 7-Eleven stores at Dallas Ft. Worth Airport (DFW), a partnership with Hudson’s Bay Company that will see the first Hudson’s Bay Company airport store in the world opened at Toronto Pearson Airport later this year, continuing plans to open more automated Boutique iStore retail locations in cooperation with Zoom Systems and a greater concentration on the F&B side of the business.

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list is a clarified strategy that places creating value for airport partners as a prime objective. “We believe that we now have a good game plan— one that is in alignment with LS travel retail globally but also targeted to address the needs and opportunities of our specific region,” Savaria says. LS recently underwent a personnel reorganization that was designed to ensure that resources were organized appropriately in order to fully support the company’s newly laid out game plan. Vadim Motlik, previously CFO, was assigned the responsibility of managing development activities. Furthermore, Ivana Krpan was promoted to VP of Finance. As a result of her promotion, other internal changes were also made. LS also recruited a Director of Marketing in Tod Dalberg.

Staying on the ball The growth the company has experienced of late is due to a number of factors, but high on the 40

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

“While we are getting involved in many areas of the business, we only do so where we can deliver on our commitments. In the end, we are there to help our airports achieve their goals in terms of driving experience and revenues.”

Gerry Savaria, President and CEO, LS travel retail North America


Visit us at the PARLUX FRAGRANCES Booth in the GREEN VILLAGE Stand M64


LS travel retail North America has turned the decreasing demand for traditional printed magazines and books into an opportunity to reorganize the product offering in its Relay stores according to traveler needs

LS travel retail North America

A rendering of LS travel retail’s Porsche Design shop; the operator focuses on luxury when demographics indicate a significant proportion of affluent travelers

“These appointments are there to support the deployment of our strategy, including very specific activities with our airport partners, our brands and a strong focus on the travel retail consumer, in addition to supporting ongoing organic growth,” explains Savaria. Clearly as a certified reseller of Apple products, LS knows the value of innovation, but staying one step ahead isn’t just a quality that the operator values in the products it sells to consumers; for Savaria, the last piece of the puzzle in terms of managing growth and ensuring continued success is making sure LS is innovating behind the scenes as well. “We continue to invest in innovation to stay ahead of how our customers evolve, whether it's with technology through the deployment of a new enterprise resource planning system and point of sale technology or through initiatives focused on concept R&D,” he explains.

Closing the deal Of course, operators can plan extensively and have a large network of stores across a given region, but it really all comes down to closing the sales at the point of purchase. Organically, growth for the first half of this year has been primarily in Canada, but Savaria expects to see sales pick up in the US over the second half on 42

the back of the slowly improving economy. Additionally, hopes are high for the company’s new operations in Jamaica’s Sangster Airport. As a gateway to Jamaica—a major international tourist destination elected “Caribbean’s Leading Destination” by the World Travel Awards for the past several years—Sangster International Airport serves in excess of 3.2 million passengers each year. It is the busiest of Jamaica's three international airports and one of the largest and more modern airports in the Caribbean. LS first opened a Relay store and a Caribbean-tailored concept called Island News & Coffee. These initial store openings were followed in May by a second Relay store. All three locations represent a grand total of 280 square meters of retail space. Featuring merchandise assortments perfected by decades of travel retail experience, the two Relay locations offer an extensive selection of reading materials as well as a wide range of convenience-related products, health and beauty items, travel-related accessories and Jamaicanthemed gifts and souvenirs. Of course, it should be noted that in the age of tablets and smartphones, LS is in a particularly enviable position in that its Relay stores cater to those looking for a more traditional paperback or newspaper, while its Boutique iStores offer the latest in tablet technology for

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

those who prefer their reading material in electronic format. “In terms of consumer spending, we have seen a shift since 2011 from the traditional categories of reading materials into categories of merchandise such as electronics accessories,” Savaria says. “That is why we have been developing the iStore concept, which generates very high sales productivity. We actually sell not only iPads but even MacBooks as we have the right demographics to spend $1,500 just because we're saving them a trip to the mall.”

Tailoring the offer In discussing sales across geographical locations, Americas Duty Free also asked Savaria about which nationalities are purchasing the most and how LS caters its offering depending on the airport. He tells us that each geographic location really has its own identity in terms of the travelers’ and airport’s needs. “Sometimes the profile of an airport in the US will be closer to that of a Canadian airport as opposed to another US one,” he explains. “We therefore use a methodology aimed at capturing these unique identities and specific needs to tailor our concepts, brands and product offering around them.” For example, Savaria says LS will position a brand like Porsche Design in a large international terminal irrespective of the country and conversely an affordable fashion and accessory concept in a less affluent, similar-sized airport. He does note, however, that there are no catch-all solutions for determining what will work best in a given location. “Canadian airports are constrained by the breakdown of traffic into three zones—Domestic, US and International—which often make them less efficient than US airports of similar size from a traffic exposure viewpoint,” he says. “In the Caribbean islands, duty free becomes the dominant offering while the rest


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LS travel retail North America

All Black Dog products reflect the brand’s maritime-related, nautically inspired lifestyle.

of the mix is tailored for visitors often flying on charter airlines and therefore features a significant share of souvenirs and grab-andgo food items.” With regard to the highest spending travelers, it’s no surprise that Asians top the list. “They’re brand-focused and for them bringing items back from their travels is part of the culture,” says Savaria. In terms of top-selling products and categories, LS considers the move towards digital readers an opportunity to make changes to the offering and ensure that popular products are readily available in its Relay stores. “There has been a repurposing of space to ensure that strong trending products like Beverages, Confectionary and more recently Electronics flourish within our stores,” Savaria tells us.

Changing times Changes in the core news and convenience business have also led LS to explore various other initiatives outside of the Relay concept. Earlier this year LS announced that a venture between the company and the Dallas-based Sierra Airport Concessions was awarded a retail package of four locations as part of a Request For Proposals for new concessions in Dallas/Fort Worth International Airport (DFW). Already the winner of a package in Terminal A last year, LS will now operate an additional 288-square-meter concession space in Terminals B and E. Ranging from convenience, news and coffee, gifts and souvenirs, and apparel and accessories delivered through a blend of national and international brands, the new stores are expected to generate about US$40 million in sales throughout the term of the contract. Located airside in Terminal E, 7-Eleven will combine convenience and coffee to provide DFW guests with everything they need from magazines and health and beauty items to sandwiches and beverages, including the brand’s signature Slurpee and coffee to go. Complementing Terminal B’s Specialty Retail offering, Texas Territories and ARTIZAN will offer unique gifts and souvenirs. Created specifically for DFW, Texas Territories 44

Changes in the core news and convenience business have led LS travel retail to explore various initiatives outside of the Relay concept, such as the forthcoming 7-Eleven stores at DFW

will feature a full range of Texas and Dallas/Fort Worth-themed gifts and memorabilia, clothing and accessories, food items and toys, all sourced from local manufacturers, while ARTIZAN—one of North America’s premier jewelry and accessories retailers— will offer DFW fashion-savvy customers the latest trends in clothing and accessories. Finally, already present in DFW, Sierra News is teaming up with Ruta Maya Coffee to offer DFW Terminal B guests the latest news and travel-related items, combined with locallygrown and fairly traded organic coffee.

A Canadian classic Perhaps the biggest news for LS lately from a Canadian perspective is this month’s opening of the first ever Hudson’s Bay Company airport store at Toronto Pearson Airport’s Terminal 1. The Pearson Hudson’s Bay Company store will carry the most sought-after fashion and home accessories from the Hudson's Bay Company Collection, which includes everything from artisanal candles to classic sweaters for men, women and children, with each item rooted in quality, style, heritage and craftsmanship. Inspired by the company's unique history, the line is anchored by the popular HBC Point Blanket and features the iconic signature stripes in green, red, yellow and indigo. With an unrivalled 342-year history in Canada, The Hudson’s Bay Company is renowned for its historical role in the development of the country. Today, the retailer is Canada’s leading department store and has established a reputation for quality, service and style, and the partnership with LS is a clear indication of how hard the operator has worked to stay on its game in the competitive world of airport retailing.

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

“Hudson’s Bay Company is indeed an iconic brand, not only in Canada but also abroad, and we are quite excited to launch it at Toronto Pearson,” Savaria says. He also hinted at the possibility of other Hudson’s Bay Company locations in the future. “[Hudson’s Bay Company] has such a vast heritage and recognition that it would be a pity not to offer this brand to other airports. There are indeed plans for more but nothing that I can disclose at this stage!” Savaria also told us that plans are ongoing to open other retail concepts throughout North America. Upcoming projects include Boutique iStores planned for Indianapolis, JFK New York and Toronto Pearson T3 before the end of the year. In addition, renovations and relocations will be happening at Austin, Vail, Toronto Pearson and Montreal Trudeau Airports this year. We concluded our conversation with Savaria by asking about what’s next for LS. “You should expect us to start moving gradually more into the food and beverage side of our industry where there are lots of opportunities to enhance the experience for travelers and airport operators alike,” he explained. “Having said that, I can tell you that we have airports and brands approaching us and sometimes it feels like we are running out of bandwidth to pursue all these opportunities simultaneously. LS travel retail is indeed a large group but we don't have unlimited supplies of people, time and capital so ironically an important part of our job is also to decide what not to pursue. “While we are getting involved in many areas of the business, we only do so where we can deliver on our commitments,” Savaria concluded. “In the end, we are there to help our airports achieve their goals in terms of driving c experience and revenues.”


Shopping China Shopping China’s wine section is indicative of the attention the operator gives to each of the many categories in its stores

On the shoulders of giants Shopping China flourishes as a result of meeting the needs of Brazilian cross-border travelers that are ready and willing to spend hopping China started its business in Paraguay in the early 1930s selling accessories and fragrances. Before long the business grew exceptionally and the company started importing various products as a means of better serving its customers. After many years of hard work the company consolidated itself as a point of reference for imported goods on the border with Brazil, with many stores throughout Paraguay, Uruguay and Bolivia. The vision of CEO of Shopping China Felipe Cogorno Alvarez and his brothers has earned the company worldwide recognition from its customers and partners in the duty free industry. Indeed, a clear indication of Shopping China’s success is that fact that it has received four DFNI awards for Best Border/Downtown Travel Retailer in the Americas (2009-2012). At the flagship Pedro Juan Caballero location, already measuring a whopping 35,000 square meters, the operator has added 2,100 square meters of selling space. “This has given us the opportunity to significantly increase space in a number of important categories,” says Cogorno. Categories that will benefit from the renovations include cosmetics, spirits and accessories. Shopping China worked closely with brandowners to develop personalized furniture custom-made for the store. Cogorno says that the renovations effectively make the Pedro Juan Caballero location “one of the best stores in Latin America.” Additionally, the number of parking spaces at the Pedro Juan Caballero store has been increased. A good indication of just how many shoppers visit Shopping China over the course of a day is the fact that 1,500 parking spots just weren’t enough—another 850 have been added. “The success of Paraguay is to a great extent a reflection of the financial boom happening in neighboring countries, namely Brazil,” Cogorno adds. Indeed, Shopping China already caters to a good portion of Brazilian consumers in its stores, and the company’s outstanding performance so far this year provides convincing evidence for the strength of Brazil’s economy. Given high taxes in Brazil, it’s not uncommon to see Brazilians literally pouring over the

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Shopping China’s flagship Pedro Juan Caballero store

border to purchase everything from daily necessities to luxury items, and Shopping China is designed to be a one-stop-shop in every sense of the term. From spirits, fashion and confectionery to household items, sporting goods and much more, perhaps the biggest advantage that Shopping China has over its competition is the diversity of its offering. Shopping China is also very involved in the innovative promotion of the products it sells—on

of tourists traveling to Punta del Este for vacations, Cogorno sees the new Chuy store as a one-stop-shop for Brazilians on the way to the upscale resort town. “The stores will be very big, on the order of 17,000 square meters each, and they’ll offer the same wide range of products—from liquors, tobacco, clothing, food, P&C, accessories and more—that we offer in our other stores.” Of course, big changes like this don’t hap-

“The success of Paraguay is to a great extent a reflection of the financial boom happening in neighboring countries, namely Brazil.” Felipe Cogorno, CEO, Shopping China any given day shoppers can find deals on items across categories. The big news with Shopping China is that the company is currently finalizing the details of two new stores in Uruguay. Work was originally slated to start in 2011, but Cogorno tells us that in a project this size, small delays are inevitable. While Shopping China already operates a store near downtown Chuy, the new location will be on the outskirts of the city on the road to Punta del Este. Given the large proportion

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pen unless business is going well. Average spend per head stands at about US$550 and Cogorno says that in general things are going very well, both with the company and the economy in its home base of Paraguay. “Shopping China’s achievements and successes are due to the tradition that started with the company’s inception in the 1930s,” Cogorno says. “Our main clients are Brazilian customers that come to our stores looking for quality and diversity, which we have the responc sibility to provide.”


GuestLogix GuestLogix’s XPDASP point of sale device

The sky’s the limit

With the acquisition of Initium Onboard, GuestLogix not only strengthens its Inflight business, but also makes significant inroads into rail BY RYAN WHITE n early September GuestLogix Inc. (TSX: GXI) announced that it acquired all of the issued and outstanding shares of Initium Onboard, a United Kingdom-based provider of onboard retail technology to the airline and rail industries. Initium Onboard is the trading name for BOM Merchant Technologies Limited, a subsidiary of BOM Group Holdings Ltd. With a total transaction value of GBP £3.3 million (US$5.2 million), GuestLogix paid 60% in cash and 40% in common shares, issuing 4,287,670 shares at price of CAD$0.44 (US$0.446) per share. To satisfy the cash portion of the acquisition, GuestLogix completed a CAD$3 million (US$3.04 million) non-brokered Private Placement with Advanced Inflight Alliance AG, a global leading provider of inflight content and solutions. The Board of Directors for both GuestLogix and Initium Onboard have approved this transaction. "This transaction will greatly advance our leadership position in the global onboard retail marketplace, adding 250 million annual passenger trips to our already one billion passenger-trip strong customer base," said Tom Douramakos, President & CEO of GuestLogix. "In addition, we will be better positioned to execute on key growth strategies, such as further penetrating the rail industry and introducing destination-based merchandising programs on board, as Initium Onboard has proven success in both of these areas. We are excited to welcome Initium Onboard's customers to the GuestLogix family, and look forward to working with its team, all of whom share in our desire to further enhance the onboard retail marketplace for travel operators, content providers and passengers alike." Initium Onboard currently has 27 customers using its onboard retail technology platform, representing 188 million airlineand 62 million rail passenger-trips annually.

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“Fusing the talent at Initium Onboard with our team will allow us to set a brand new standard in the world of onboard retailing.” Tom Douramakos, President & CEO, GuestLogix In addition, Initium Onboard operates successful onboard merchandising programs with several of its customers. "At Initium Onboard, we are committed to providing the highest level of onboard retailing technology standards for the travel sector, and we have delivered great results to each of our customers to date," said Thomas Drohan, President & CEO of Initium Onboard. "We are excited about joining the GuestLogix team and creating even more value for our clients and the market as a whole going forward. We are confident that this transaction will enable our customers to further enhance their onboard retailing programs. They will benefit from a broader portfolio of onboard retail technologies and a larger global customer support infrastructure." Initium Onboard has provided onboard retail solutions to the passenger travel industry for the past 15 years. The company has secured several key clients, primarily in Europe and the Middle East, including Lufthansa, Scandinavian Airlines, Flybe, Etihad Airways and flydubai. Initium Onboard also serves Webjet in South America and Air New Zealand in Asia Pacific—two strategic growth regions for GuestLogix. With the completion of the acquisition, GuestLogix' worldwide market share in the airline industry has increased from 40% to 46%.

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

The acquisition creates the opportunity for GuestLogix to form a specialized Global Rail Division. Initium Onboard's business serves numerous rail customers, including East Coast, Eurostar and Thalys. Adding these new rail companies to GuestLogix's current rail customers will elevate GuestLogix's leadership in this sector. The company's Global Rail Division will focus on further penetrating the market, which the company estimates as a 21 billion annual passenger-trip opportunity. Through this acquisition, GuestLogix will also be well positioned to accelerate the progress of its OnTouch merchandising platform. Initium Onboard has successfully deployed destination-based merchandising content, such as theme park passes and other attraction vouchers, for sale onboard with customers such as Eurostar. Launched in 2010, this business unit is a revenue generator for Initium Onboard. “As the leading provider of onboard retail technology for the past decade, our mission has always been to provide the best solutions to capture ancillary revenue onboard,” Douramakos told Americas Duty Free. “Fusing the talent at Initium Onboard with our team will allow us to set a brand new standard in the world of onboard retailing and provide travel operators with a wealth of new offerings to generate c new revenues.”


IAADFS

“A commitment to the business” Executive Director of IAADFS Michael Payne tells us about the airports and retailers that have impressed him and discusses what IAADFS has in store for 2013 BY RYAN WHITE Americas Duty Free: Although IAADFS doesn’t collect sales data, from what you’ve seen and heard how do you feel things are going in this regard so far this year? Michael Payne, Executive Director, IAADFS: The press reports on those companies posting their quarterly margins suggests that the industry is doing very well, particularly in view of this economy with troubling signs in Europe and other regions. It will be interesting to see how sales go between the end of the summer travel season and the beginning of the holiday travel season. ADF: What noteworthy airport renovations or improvements have you seen in the US lately? What about the rest of the Americas? MP: Well you are seeing tremendous improvements completed, underway and/or planned in many airports including Miami, Los Angeles, Las Vegas, Atlanta, Dallas Ft. Worth, Orlando and Boston in the US, and equally impressive development in Canada, Mexico, South America and the Caribbean. Even where there are not major airport renovations underway, you see individual store locations upgrading their facilities. It shows a commitment to the business and recognition by airport officials and local authorities of the importance of our industry and the value it brings to the overall travel experience. ADF: As we well know, threats to the industry can crop up at any time. Can you give us an update in this regard? MP: There is a new initiative to address the problem of liquids and gels and explore solutions. This was started between the EU and TSA on a bi-lateral basis and includes a number of affected parties—airports, airlines, governments, equipment manufacturers, ICAO, IATA and duty free operators to name a few. IAADFS was invited to participate in the first meeting, which was held in Washington in June. Subsequent meetings will follow. The goal is to improve and eventually eliminate the restrictions on the flow of liquids and gels through security provided the technology is 50

there to address the threat. Initially it is a bilateral approach between the US and EU but the hope is for broader application. I view it more as an opportunity than a threat. The IAADFS continues to focus on WHO initiatives and possible restrictions on duty free sales. There will always be regional and/or individual country matters to address. ADF: How has the response been to the April show dates next year? MP: I haven’t heard any negative response to the April dates. In fact, since we are not in conflict with the Basel show, which often happens, I have received positive feedback. We try to stay in mid to late March but it is not always possible given our needs at the hotel.

well underway with planning. We want to build on last year’s success and work to always improve the business environment we offer to exhibitors and buyers. I thought the social elements, which are an important component of our event, were greatly enhanced with a more vibrant Gala, a more dynamic Club Americas with live music and added sports day events. ADF: What else is IAADFS currently working on to better serve members? MP: We have upgraded our website and are trying to have and more and more of our services managed through that site and make it easier for members to do business with IAADFS. This is something that has come through loud and clear from the membership so we’ll continue to improve and upgrade our offering. c

“We want to build on last year’s success and work to always improve the business environment we offer to exhibitors and buyers.”

Michael Payne, Executive Director, IAADFS

ADF: What is your forecast in terms of attendees for 2013? Do you think you’ve reached a point where further significant growth of the show is unlikely? MP: I think there is ample opportunity to continue growing. While there are a limited number of new operators I am seeing in airports due to the merger trend, there are new suppliers all the time that want to become members and exhibit. There are plenty of duty free locations and associated businesses that can join the organization. ADF: Will there be any changes made to the exhibition, the social activities or the evening events in 2013? MP: In terms of the show for next year, we are

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012


Motta Internacional

The stores in Bogotá are expected to measure 1,250 square meter (departures) and 600 square meters (arrivals) (pictured: Attenza’s existing operations at Bogotá Airport)

Shiny BY

RYAN WHITE

and new

From four new stores in Ecuador and Colombia to a new marketing manager and a redoubled focus on luxury, Motta Internacional aims for continued growth in H2 otta Internacional, S.A. was recently awarded the tender for the exclusive operation of the duty free stores in the New Quito International Airport in Ecuador, operated by Corporación Quiport S.A. Attenza Duty Free, the commercial identity for Motta Internacional´s duty free stores, will operate 1,152 square meters of multicategory duty free stores in the New Quito Airport. Americas Duty Free recently sat down with Erasmo Orillac, CEO of Motta Internacional, to get a bit more information on the Quito stores, an update on the new Bogotá locations and some information on how business is going for the operator in Latin America.

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One of a kind The New Quito International Airport is described as “one of a kind in the region” by virtue of the fact that it is the first in South America with a completely new infrastructure, thereby allowing higher traffic and larger airplane capacity for this part of the continent. The new airport is scheduled to open during the fourth quarter of 2012. Orillac told us that across its current operations, Motta has seen sales increase at par with passenger increases, which he reports average about 6% year on year in the airports where the company operates. However, Orillac notes that indicators tend to shoot a bit higher in airports where the company’s stores are in particularly choice locations. Good news, then, is the fact that one of the new Motta stores at the

Attenza’s existing operations in Bogotá Airport

New Quito Airport is set to be a walkthrough location measuring over 886 square meters. Located just after the immigration counters for international travelers, it’s difficult to imagine much better positioning. A second smaller store measuring 266 square meters will be located in the International Arrivals section. “We are very excited about our new project in Quito after 10 years of absence,” Orillac said. “Attenza Duty Free will bring our distinguished shopping experience to all the passengers traveling through this new airport, which will serve Quito and help grow tourism and business travel to Ecuador. We are happy to expand our network of Attenza stores to this new location where we can offer our clients our service and our products.” Quito handles close to a million passengers a year, says Orillac. Furthermore, the operator’s expertise in Colombia will come in handy when the new operations are up and running as Colombians, along with Ecuadorians, are expected to be the dominant groups purchasing at the stores.

“Generally, there’s been a growth in luxury items across categories. Highend items will be a concentration going forward.” Erasmo Orillac, CEO, Motta Internacional

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On a roll Indeed, Attenza Duty Free has a long history in Colombia and the news of Attenza’s concession win in Quito comes shortly after Motta Internacional was awarded one of the two departure duty free stores—as well as the exclusive arrivals store—at the new El Dorado Airport in Bogotá, Colombia. The stores are expected to measure 1,250 square meters (Departures) and 600 square meters (Arrivals). OPAIN, who is in charge of building and operating the new airport, has


Motta Internacional

stated that the new El Dorado will be the most modern and efficient airport in Latin America, estimating that in 2012 the airport will handle 6 million international passengers. Orillac tells us that the company’s current stores in Bogotá are catering mostly to Colombians traveling to and from the country, in addition to a good number of Brazilians. He doesn’t expect this to change in the new airport.

The educated consumer Orillac says that Motta has seen a significant upswing in sales of perfumes and spirits in arrivals. “You can expect these two categories to be a significant part of our offering in the new arrivals store in Bogotá,” he explains. Also selling well are luxury watches and writing instruments. “Generally, there’s been a growth in luxury items across categories, especially when it comes to Brazilian consumers,” Orillac explains. “Highend items will be a concentration going forward.” Of course, simply listing the products isn’t enough. Luxury items have always required well trained staff to sell them properly. Orillac says that traveling consumers are becoming savvier with regard to their understanding of pricing and their grasp of products. As such, they expect a salesperson with nothing less than a compendious knowledge of the high-end items available in store. “Our clients possess more knowledge of the products and expect our personnel to know detailed information about each brand,” Orillac explains. “We are making a significant effort in training our personnel, in cooperation with our suppliers, as a means of transferring the latest and most important information on all the products we have to our sales team.” c

Rolling out the welcome mat Motta Internacional recently welcomed Domenica Carbone to its team. She was hired to work in the capacity of Regional Marketing Manager in July 2012. Carbone was born and raised in Panama City, Panama and holds a Bachelor’s Degree in International Business & Marketing from Loyola University in New Orleans, a Masters Degree in Business Administration from Escuela de Administracion de Empresas in Barcelona and a Graduate Degree in Fashion Retail from the Instituto Europeo de Deseño, also in Barcelona. Before joining Motta Internacional Carbone worked in various roles at Banco Continental and Tetra Pak, S.A. focusing on product development, strategic marketing and communications. Americas Duty Free welcomes her to the travel retail industry.

The Canadian connection The Canadian Commercial Corporation (CCC) is the prime contractor for the New Quito International Airport project, and the company is expected to complete and deliver the airport to Quiport this month. Marc Whittingham, President and CEO of CCC, recently toured the new airport and met with government and financial stakeholders in Quito during a site visit. The new airport will replace the existing Mariscal Sucre International Airport and will sit on 1,500 hectares of land east of Quito, Ecuador. "I am very pleased with how the final stage of construction is progressing," said Whittingham. "The new Quito International Airport proves that the Government of Canada, CCC and Canadian industry can collaborate for the successful completion of a wide range of projects, regardless of complexity, scope or location. I am very proud of all those who contributed to making this happen both in Ecuador, Canada and around the world." This US$600 million government-to-government contract is being delivered by Toronto’s Aecon Construction Group Inc., Canada’s largest publicly traded construction firm. CCC is working with Aecon to develop other infrastructure projects in Latin America and around the world. Corporación Quiport was recognized by the United Nations Institute for Training and Research (UNITAR) for its commitment to corporate social responsibility. Quiport is considered by the UNITAR as an example of what private sector enterprises must do to ensure the improvement of the standard of living in the countries where they operate. The United Nations also granted Philippe Baril, President and CEO of Quiport, the award "Peace Champion" (a goldleaf medal). The accolade is delivered once a year around the world and was meant to recognize Baril’s contribution to the understanding of the parties involved in this project. Quiport was selected among 80 nominations from around the world to receive the Corporate Social Responsibility Award.

The beauty section of Attenza’s existing operations at Bogotá Airport

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THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012


They sell as good as they taste

Mars ITR is a leading player in the confectionary category. We combine insights, vision and global strength with powerful brands to create fantastic instore opportunities. Take M&M’s for instance, the great promotions, shopinshop concepts and fun merchandizing makes the brand to a very powerfull sales driver. Let’s face it, if consumers can’t resist M, how can you?

Visit us at Bay village  Bay 9.


Frontier Duty Free Association

Developing digitally A recent review of the FDFA’s national marketing campaign reveals that results have surpassed expectations and garnered acclaim from land border operators BY RYAN WHITE

he Frontier Duty Free Association (FDFA) and Match OSL recently completed their 2012 review of the Duty Free Canada national marketing campaign. Good news for the industry in Canada, and indeed for crossborder travelers, is that original objectives have been exceeded on a number of fronts. Americas Duty Free recently sat down with Laurie Karson, Executive Director, FDFA; Jeremy Wright, Vice President – Digital, Match OSL; and Wendy Batchelor, Vice President – Client Services, Match OSL, to get the details on the ground that has been gained over the last half year. We started by asking about the quantitative results they’ve seen. Karson noted that the Facebook portion of the marketing campaign—designed to give consumers basic information about duty free allowances, store hours and the like, as well as keep them informed of contests like last year’s “Road Trip Rules”—was receiving a warm response. “I’m thrilled with the numbers,” she explains. “We were hoping to have 5,000 ‘likes’ on Facebook by the end of the summer and as of the first week of August we’re approaching 16,000 ‘likes.’” Furthermore, keeping a close eye on Google Analytics has made it clear that the www.dutyfreecanada.com website, launched in early 2011 and designed as a sort of “hub” for Internet users to learn about duty free and then move on to specific store webpages, has been successful at driving traffic to operators’ sites. “We’ve welcomed over a quarter of a million unique visitors since the website was launched,” explained Karson. “I would like to see a million visitors by the end of next summer and I think that’s achievable.” Karson tells us that Match OSL manages the websites of six operators and all have noticed an uptick in key traffic indicators. “We’re definitely building a core audience that is proving to be a very active group that tends to explore the operator pages. If you look at our Facebook page they’re asking questions and clearing up misconceptions, which has really opened up a valuable dialogue.” Of course, Karson notes that the national marketing campaign is just that—a national campaign. The campaign doesn’t replace local marketing initiatives on the part of each

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operator, and it’s up to FDFA’s operator members to make sure that their websites are up to date so that visitors thinking about shopping at a particular store can find the information they need. The traffic is being driven by the national website and it’s really up to operators as to how they take advantage of the traffic upswing. In line with the above, Wendy Batchelor tells us that Match OSL has very clearly

“We were hoping to have 5,000 ‘likes’ on Facebook by the end of the summer and as of the first week of August we’re approaching 16,000 ‘likes.’” Laurie Karson, Executive Director, FDFA

Big things in BC Peace Arch Duty Free has been extremely active in terms of internet marketing and is necessarily in a unique position to comment on the ongoing success of the national marketing campaign. Reggie Raju, Director of Store Operations at Peace Arch Duty Free, tells us that in addition to important markers such as website traffic and pages viewed per visit, the national marketing campaign has made a difference on the shop floor. “We have coupons for our store that are exclusively available on our website, and on the shop floor we’re typically getting about 500 of these coupons redeemed a month. It’s clear that there’s value to what the FDFA has been doing,” he explains. “In addition we’re also noticing a younger demographic entering the stores—mid-20s—and I suspect that this has something to do with the online marketing campaign as well.” Raju tells us that he’s seeing about 600 visitors a month redirected to the Peace Arch Duty Free site from www.dutyfreecanada.com, which puts the national site in third place for the operator behind search engines like Google. Another important indicator for Raju is that while visitors directed to the Peace Arch Duty Free site from Google view an average of only one page, visitors coming from the Duty Free Canada website view an average of 5 pages. “This clearly indicates that we’re getting a much more active visitor to our site as a result of the national marketing campaign,” Raju explains.

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012


Aldeasa and World Duty Free together, global strength in depth EUROPE - AMERICAS - ASIA - MIDDLE EAST - AFRICA


Frontier Duty Free Association

Gaining ground Abe Taqtaq, Vice President/General Manager at Windsor-Detroit Tunnel Duty Free and President of FDFA, told us recently that the FDFA’s national marketing campaign couldn’t have come at a better time given the fact that more Canadians are now traveling back and forth to the US. “The FDFA national marketing campaign, which was launched in 2009, has provided the membership with an opportunity to increase the industry’s awareness and the public’s knowledge of the benefits of shopping duty free when traveling to the United States,” he explained. “This has proven particularly useful considering the industry has experienced a reduction in the American traveler and a shift to Canadians traveling south. “The use of social and modern media will eventually provide the membership with a database to tell our story to the traveling public,” he continued. “Still in its initial stages, I am confident that the investment being made today will prove to have a solid return in the future when it will be fully utilized. We look forward to working with our partners, Match OSL, in continuing to build on the program and continuing to provide benefits to our membership.”

laid out the campaign’s objectives in a manner that will ensure optimal results. While a couple of contests were run over the past six months to great effect, the main objective is still very much focused on growing the base audience. “We have a three-year plan,” she explains. “The first year was really about awareness. Having said this, it’s clear that we can’t concentrate solely on acquisition. As such, you’ve seen contests like the ‘Road Trip Rules.’ However, at this point the balance is more heavily skewed toward acquisition and a little bit less toward engagement. As the acquisition numbers come up you’ll see that breakdown flip, where we’ll continue to do some acquisition but concentrate more heavily on engagement.” In terms of upcoming contests, Batchelor tells us that consumers can expect something around the holiday season. Furthermore, Match OSL will up the ante in the New Year by starting to involve specific vendor locations in contests to further engage consumers by region. All the talk of social media brings up the question of whether the national marketing campaign is in fact alienating older consumers, who have traditionally been the bread and butter for many land border operators in Canada. Jeremy Wright doesn’t see it this way. “In terms of the audience we’re reaching with the marketing campaign at the moment, 40% are over 35 years of age, 31% are over 40 and about 10% are over 50,” he says. Wright also notes that consumers in their 20s and 30s tend to be more news-aware and generally educate their parents on topics of particular interest to them, such as noteworthy deals at border stores. Furthermore, he tells us that as time goes on, cross-border travelers will start to see in-store 58

activations and online communication sync up, effectively making sure that all travelers, whether they regularly use the Internet or not, are getting the same information. “These types of campaigns invariably move into the store—we gather the audience online, make sure we’re communicating with multiple demographics and finally ensure that there is a parallel between what we’re doing online

“As the acquisition numbers come up, we’ll continue to do some acquisition but concentrate more heavily on engagement.”

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

Wendy Batchelor, Vice President – Client Services, Match OSL

“We gather the audience online, make sure we’re communicating with multiple demographics and finally ensure that there is a parallel between what we’re doing online and what’s in the stores.” Jeremy Wright, Vice President – Digital, Match OSL and what’s in the stores,” he explains. In this way the two forms of marketing perpetuate each other and the snowball effect comes into play. While the FDFA and Match OSL make no qualms about the fact that much work is yet to be done, they should certainly be commended for what they’ve accomplished to date, which amounts to nothing less than creating a unified online presence for an industry that desperately needed it in an undeniably digital age. Where before there were only a few forward-thinking operators tweeting away diligently in back offices, unswerving in their conviction in the potential that the Internet offered, there’s now a much more level playing field across a network that spans the entire country. In the end, the true value of the initiative at large will no doubt be gauged by how many duty free retailers take full advantage of the considerable opportunity that c the FDFA and Match OSL offer.


      





   

  

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Guest Writer

Ikea’s 220-square-meter pop-up lounge at Paris Charles de Gaulle’s T3 is a good example of looking to what domestic retailers are doing to strengthen brand appeal

Developing a compelling retail offer South America is replete with travel retailers doing it right, but countless opportunities still exist, especially in the booming Brazilian market BY LEWIS ALLEN hese are very exciting times for the travel retail sector in South America. With major investments in new airport projects and developments, not to mention the privatization programs that have been launched and awarded in the last 6-12 months, the region will become a major target for retailers and brands looking to develop their international activities. With Brazil hosting the World Cup in 2014 and the Olympics in 2016, the pressure to transform and upgrade their main airport hubs is on. The new consortia taking over the management of Brasilia, Campinas, Viracopos and Garualhos airports will want to capitalize on their investments, and having a modern and compelling retail offer will help ensure this happens. In Argentina, AA2000’s US$300 million new terminal at Ezeiza Airport is its first major renovation since the 1978 World Cup. This will give Dufry an opportunity to consolidate itself as the leading duty free operator in the region amidst the growing level of interest by its major competitors. In Chile, the Santiago de Chile Airport has a phased investment plan to develop the airport facilities from its current 9 million passengers to 14 million in 2013 and 25 million by 2030. Elsewhere in the region, there are a host of other projects underway or in the pipeline in countries such as Colombia, Ecuador and Peru. These projects will give travel retailers and brands the perfect opportunity to create flexible offers and customer experiences that are future-proof, remain relevant for as long as possible and are commercially sustainable investments. So how can retailers and brands achieve this? Having a forward-thinking retail strategy and vision, along with embracing change, is key. Retailers and brands need to re-imagine their travel retail offer and experience. Today retail is all about providing: ■ Customized experiences and bespoke products ■ SoLoMo (Social Location Mobile)—targeting customers on the move ■ Hybridization—creating collaborative brand experiences ■ Multi-channel—being accessible on every platform ■ Surprise—the unexpected ■ Entertainment that is shoppable Some key players are already re-imagining their formats and future retail investments. Corporación America, part of the consortia that will run Brasilia Airport, has stated its three clear commercial goals to be “Retailment, Technology 3.0 and Service.” This is a great example of a

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forward-thinking operator who realizes that customers are seeking new experiences. The 3,000-square-meter London Supply flagship store near the Iguazú National Park bordering Argentina, Brazil and Paraguay is a great example of how one retailer has really set out to create not just a shopping destination but also a tourist destination. Obviously as a border store it has many advantages over an airport location—mainly no time restraints or issues regarding baggage allowances, etc. However, once over the threshold, consumers are transported to a whole different world. Vying for attention with two world-class tourist attractions—Iguazú Waterfalls and Itaipu hydroelectric dam)—over 1,000 people a day visit the border shop, making it the number three tourist attraction in the area. By thinking and acting differently, London Supply has shown how customer engagement and interactive experiences can result in a compelling and memorable retail flight of fantasy. It’s also important to learn from what “domestic” retailers are doing to enhance the passenger experience. Ikea’s 220-square-meter pop-up lounge at Paris Charles de Gaulle’s T3, complete with 9 bedrooms, is free and open to all T3 passengers and includes a dedicated supervised

“Now is the time for South America to up its game and to deliver state of the art, 21st Century travel retail benchmarks.”

Lewis Allen, Director, Portland Design

children’s area. It’s a simple way of increasing and strengthening brand appeal by considering passenger needs. UK food retailer Tesco is also thinking about how they can make life easier for travelers. In August, Tesco launched a trial of its “virtual store” at London’s Gatwick Airport. Customers can view a range of everyday products on screens on virtual “fridges.” By scanning the barcodes with their smartphones they can add their chosen products to their online baskets, book a home delivery slot and checkout. Their shopping will then be delivered when they return from holiday. Now is the time for South America to up its game and to deliver state of the art, 21st Century travel retail benchmarks that capture all the energy, c excitement and innovation of the region!


Diageo GTME

The Smirnoff Gold display at Dubai Duty Free—the variant was launched late last year

Driving growth

BY

RYAN WHITE

Americas Duty Free speaks with Managing Director of Diageo GTME Roland Abella about the company’s performance in FY2012 and what’s to come over the next 12 months Americas Duty Free: Can you comment on Diageo’s results for the six months ended June 30, 2012? Roland Abella, Managing Director, Diageo GTME: I’m delighted to say that Diageo GTME had a strong year, a result which underlines the buoyancy of the channel and the strength of our brand and innovation agenda within it. Both these factors give us confidence in our plans for the coming years. The performance we delivered during FY2012 reflects some really groundbreaking work by our people. They, like me, are really energized by our growth potential and I am personally very excited to be leading what is an extremely important market for Diageo. Our positive performance in FY2012 was driven largely by our super deluxe brands and it is in this category that our innovation has led the way. We had successful launches of Johnnie Walker Platinum Label, Johnnie Walker XR21, Johnnie Walker Gold Label Reserve and Johnnie Walker Blue Label – The Casks Edition. They have helped grow our Johnnie Walker footprint and will continue to build our range of highly competitive super deluxe Scotch whisky offerings. We know that our shoppers in travel retail are

looking for exclusive products in the duty free store and we will increasingly produce exclusive propositions to capture their attention. Global travel Asia remains a major contributor to our global travel business, driven by the consumer dynamic, gifting opportunities and the growing level of international travel. The excellent growth in that market is largely down to our reserve brands. In the Americas performance was driven by, among other things, inflight and cruise channels and the continued strong performance of Johnnie Walker Double Black. MENA continues to contribute to our growth, with markets such as Lebanon performing particularly strongly. Furthermore, our business in North Africa is growing and we believe there is certainly potential. Europe, as you might expect, remained uneven and economically challenging in some markets, but we were pleased to maintain our business performance there. ADF: Given the number of Asians traveling throughout the world can you tell me the importance that your Chinese white spirits will play in the future? RA: Shui Jing Fang, our premium baijiu brand, continues to be a major success, and it is second only to Johnnie Walker in the Asia market. It has huge appeal for the Chinese traveler and last year we made the most of its popularity through new merchandising and our special Chinese Mid Autumn Festival pack.

“Our relationships with our customers are of vital importance to us and I am passionate about improving our collaborations to deliver real commercial value to them and ourselves.” Roland Abella, Managing Director, Diageo GTME


John Walker & Sons Odyssey, Diageo’s latest innovation in the ultra deluxe segment

sponsorship during the Abu Dhabi Grand Prix. Through our strong customer partnerships we have developed a number of stand-out campaigns around this which are really delivering scale in building brand equity and driving growth both in travel retail and in our domestic markets.

Shui Jing Fang will remain an important part of our offering in the fast-growing luxury spirit segment in the key markets of China, Hong Kong, Taiwan and Singapore. But, because the Chinese traveler is truly international, we are seeing Shui Jing Fang gaining a foothold in other regions. It has been a notable success story in travel retail in locations as diverse as Paris, London and San Francisco. ADF: Related to the above, Diageo has a great stable of very high-end brands. What other brands are important for you in terms of the burgeoning middle class in emerging markets? RA: In addition to our super deluxe offerings, brands such as Johnnie Walker Black and Johnnie Walker Red continue to be important to us in duty free, as do others such as Baileys and Smirnoff. ADF: In the Americas, MENA or Asia what large-scale promotions do you have planned for the coming months? RA: It’s a matter of watch this space, because we will be putting together some really exciting things for John Walker & Sons Odyssey, our latest innovation in ultra deluxe, and continuing to support our deluxe brands such as Johnnie Walker Platinum, Johnnie Walker Gold Label Reserve and our ultra-premium vodka Cîroc. ADF: In terms of innovation, what will we see in the months to come? RA: We have a particularly strong innovation pipeline, but for reasons of commercial confidentiality I can’t be specific about our future plans. You will have seen our recent launch in global travel Asia of John Walker & Sons Odyssey, a spectacular and unique triple-malt blend that joins our unmatched portfolio of luxury spirits. Our innovation is focused on the super deluxe and ultra deluxe sectors and will be accompanied by luxurious and engaging experiences in travel retail, through partnerships and investments in our customer relationships. We have some exciting new launches planned this year but, as I’m sure you can appreciate, I can only give the details when they are formally unveiled. ADF: What major sponsorships are coming up in the next few months in the Americas, MENA and Asia? RA: The Johnnie Walker sponsorship of Team McLaren Mercedes remains the key opportunity for us. It is a truly outstanding sponsorship that is working extremely well for the brand and we will certainly activate the

ADF: Can you tell me what Diageo has planned for the rest of the year in terms of targeting the female traveler in duty free? RA: The female opportunity is huge. The largest growing economic force in the world isn’t China or India—it is women. Research suggests they are under-represented when it comes to global alcohol purchases. We will continue to market NUVO specifically at the female market, with activations custom-designed for this audience. In recent months Smirnoff Gold Collection has proved to be a key player in driving a higher footfall of female shoppers in duty free stores and we will develop further limited edition flavors for Baileys which have proved a huge hit with women. As well as focusing innovation at the female shopper, we are seeking to ensure that our activations can really engage with them. Bali Airport, for instance, was one of the first in the world to really target female shoppers with a fantastic three-month concourse activation in a prominent location and with high-traffic visibility. This involved a fun and highly engaging experience centered on a pop-up cocktail bar. Making it a great environment for women to enjoy, they introduced a range of Diageo spirits (Johnnie Walker Gold Label Reserve, Baileys, Cîroc, Smirnoff and Tanqueray) through bespoke cocktails and gave shoppers the chance to create their own cocktails. Given the growth potential of the market, Cîroc Peach; the we have also taken other bold steps with, for ultra premium vodka brand is just one of instance, Johnnie Walker. In a ground-breakthe many spirits in ing moment for both Johnnie Walker and Diageo’s portfolio that is enjoyed by Lebanon, the acclaimed Lebanese film maker the all-important Nadine Labaki was announced as the brand’s female traveler first female giant at the end of 2011. Nadine’s involvement in “Walk with Giants” marked the first time that Johnnie Walker had ventured off the traditional path of male ambassadors and opened the door to women in Lebanon, inspiring them to push continuously forward. The campaign was a stunning success that resulted in a 49% increase in female participation in Lebanon. ADF: Finally, how do you feel your previous experience will help you in this new position? Can you tell us a bit about your objectives for the rest of the year? RA: I am no stranger to GTME, having been Regional Director for the Middle East and North Africa and more recently running the Indian market, which gave me a great deal of experience, particularly with consumers new to our brands. In GTME one of the things we can achieve through our innovative offerings is to provide global visibility for our brands and drive consumer recruitment for them. GTME is a channel full of amazing opportunities with emerging markets and new consumers. Our aim is to grow our business and our customers’ businesses, not just this year but in succeeding years, and I believe we are well positioned to achieve our goals. We have a very strong pipeline of innovations which will continue to underpin our growth strategy. Our relationships with our customers are of vital importance to us and I am passionate about improving our collaborations to deliver real commercial value to them and c ourselves. www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

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Conference Review: ASUTIL The conference portion of this year’s ASUTIL event was well attended on both days given a strong roster of speakers from varied disciplines

Opportunity and challenge

Americas Duty Free attended the 2012 ASUTIL conference in Iguazú, Argentina and discovered that while the region is still experiencing growth, challenges do exist BY RYAN WHITE

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he 2012 Asociación Sudamericana de Tiendas Libres (ASUTIL) conference kicked off on May 30 in Puerto Iguazú, Argentina. The setting was the Iguazú Grand Hotel and attendance at the all-day networking session on the second floor was high, with the downstairs lobby also packed with meetings.

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Conference Review: ASUTIL

The second day of the conference began with a talk from José Carlos Rosa, President of ASUTIL and COO of Dufry South America. “When we decided last year to hold the conference in Iguazú, the metaphor of a waterfall was appropriate. This is still the case, but a few details have changed,” he said. Rosa went on to note that the region is still growing strongly, albeit not at the same rate as seen over the last couple of years. He noted that both opportunity and challenge still abound in South America. “Brazilians are a good example of this phenomenon, but we can speak about many other nationalities in the same terms,” he said. “Getting South Americans to spend more of their money in the region is a challenge we must meet.” Jose Luis Donagaray, Secretary General of ASUTIL, next took the stage, announcing that attendance this year was up 3.3%. Donagaray went on to give sales information provided by member operators. Sales were up 13.5%, passenger traffic increased 11% and the average ticket at stores was up 5.9%. In terms of categories, Donagaray noted that member operators saw the following sales increases: ■ P&C: +14.1% ■ Wines & Spirits: +10.7% ■ Tobacco: +13.1% ■ Confectionery: +11.3% ■ Electronics: +3% ■ Other: +16.2% ■ Average +13.5% Cynthia Barreto Casartelli of Bright Star then introduced Anne Kavanagh, CEO of Kavanagh Communications, who gave a presentation entitled “Social Media – Investing in the 24/7

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THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

Just as last year, coffee breaks for the 2012 ASUTIL conference were sponsored by Americas Duty Free and Godiva


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Conference Review: ASUTIL

Conversation.” She noted that every 30 seconds, 240 million people join Facebook. “The future of loyalty is all about social media,” she said. Kavanagh gave Le Novo, Duty Free Philippines, Justin Boots, Sephora, Bristol International, Quack’s Bakery, Turkish Airlines, Qatar Airways and Subway as some examples of companies that embrace social media. She also highlighted the importance of having a mobile-enabled HTML 5 website. After a coffee break sponsored by Americas Duty Free magazine and Godiva, Enrique Urioste of Neutral introduced Francis Gros, Group Travel Retail Director of Luxottica. During his talk, centered on the theme of “Growing Categories,” he told those in attendance that accessories make up about 40% of luxury sales in duty free, and sunglasses make up 7.1% of the luxury category. He said that Luxottica’s vision for sunglasses in travel retail is to double the size of the category over five years, break into the top ten categories in travel retail and become 4% of total travel retail sales. “We need to stand out and be better so that we maximize the planned purchase of people who travel,” Gros said. Roland Stieger, Head of Sales for Nestlé International Travel Retail, took the stage as the second speaker on the topic of “Growing Categories.” “In every crisis there is obvious danger but a not so obvious opportunity,” Stieger said. “In order to increase sales you either increase footfall, increase the rate of people who buy or increase basket size. It’s really these three factors that allow you to increase sales.” He noted that Nestlé International Travel Retail has put a lot of effort into increasing basket size by focusing on sampling, where the product is placed and working together with operators to find novel solutions to increasing spend per PAX. José María Palencia, CEO of World Duty Free Group, then gave a speech entitled “Where the industry is heading and its evolution in Latin America.” He discussed how World Duty Free Group places great importance on research into not only travelers but also world economies as a means of getting an idea of future consumer preferences and spending habits.

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THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

The Gala Dinner took place at London Supply’s Puerto Iguazú duty free shop; guests were wowed by the atmosphere, the traditional Argentinean barbecue and live performances


Conference Review: ASUTIL

He walked attendees through statistics that indicate that both passenger traffic and plane orders in Latin America will increase significantly over the next 20 years. Importantly for the South American duty free industry, a good portion of this travel will be inter-regional, he said. The evening was capped off with a Gala Dinner hosted by London Supply, which included speeches by London Supply President Teddy Taratuty and Commercial Manager Magdalena Ducos. On the third day of the conference, Carlos Melconian, Director of M&S Consultores, noted that the situation across Latin America is as diverse as the countries that constitute it. Brazil, he said, will face the challenge of stopping economic deceleration while still maintaining stable prices. He also noted that in Argentina the level of uncertainty is still high. “The deceleration in Argentina is palpable,” he said, while forecasting that inflation in the country will likely have a floor of 25%. Diego de Freitas, Co-founder and President of Anticipate Duty Free, then gave a short talk titled “Making the right bets at the right time.” He discussed the latest technology used in duty free, while noting that success in any given project has more to do with the resolve of a company and its staff than the technology used. After another coffee break, Felipe González, Secretary of Tourism for Foz do Iguaçu, spoke to delegates regarding the “Case of Management of Foz do Iguaçu.” He outlined the importance of tourism to the area and the government’s intention of making Foz do Iguaçu a “world-class destination.” Olga San Jacinto, Division Director of Google Spain, spoke on the topic of “Changing Times or Times of Change.” She said that in the world of business, four key considerations are world population, globalization, the economic situation and technological innovation. She concentrated on the last of these factors for her presentation. The Closing Ceremony was then hosted by Cynthia Barreto Casartelli before delegates broke for lunch for the last time. While ASUTIL announced the location of this year’s show at the end of last year’s event, the venue for the 2013 conference wasn’t announced this year. Although there was talk of Colombia being the host country for next year’s ASUTIL event, José Luis Donagaray denied this, telling Americas Duty Free that ASUTIL hasn’t yet made a decision c regarding the location of next year’s conference.

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As always, ASUTIL made sure that guests were afforded the opportunity to network in a more relaxed setting during numerous social activities


Conference Review: ASUTIL

Oportunidad y desafío

Americas Duty Free asistió a la Conferencia ASUTIL 2012 en Iguazú, Argentina y descubrió que, si bien la región sigue experimentando un crecimiento, aún existen retos que enfrentar

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a Conferencia de la Asociación Sudamericana de Tiendas Libres (ASUTIL) del 2012 se inició el 30 de mayo en Puerto Iguazú, Argentina. La sede fue el Iguazú Grand Hotel, y la participación en la sesión de contacto profesional de todo un día que se llevó a cabo en el segundo piso fue enorme, mientras que en el vestíbulo de la planta se realizaron numerosas reuniones. El segundo día de la Conferencia comenzó con una charla de José Carlos Rosa, Presidente de ASUTIL y Director de Operaciones de Dufry South America. “Cuando el año pasado decidimos realizar la conferencia en Iguazú, la metáfora de una catarata fue la apropiada. Este sigue siendo el caso, pero han cambiado algunos detalles”, afirmó el alto funcionario. Rosa destacó que la región sigue creciendo de forma estable, aunque no con la misma intensidad de los dos últimos años, y agregó que en Suramérica siguen abundando la oportunidad y el desafío. “Los brasileños son un buen ejemplo de este fenómeno, pero podemos citar a muchas otras nacionalidades en los mismos términos. Hacer que los suramericanos gasten más dinero en la región es un reto que debemos afrontar”, aseguró. Le siguió en el podio José Luis Donagaray, Secretario General de ASUTIL, anunciando

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que la concurrencia de este año aumentó en un 3.3%, y pasó a dar información de ventas proporcionada por los operadores miembros. Las ventas aumentaron en un 13.5%, el tráfico de pasajeros en un 11%, y las ventas promedio en las tiendas un 5.9%. En términos de categorías, Donagaray destacó que los operadores miembros experimentaron los incrementos de ventas siguientes: ■ P&C: +14.1% ■ Vinos y espirituosos: +10.7% ■ Tabaco: +13.1% ■ Confitería: +11.3% ■ Efectos electrónicos: +3% ■ Otros: +16.2% ■ Promedio: +13.5% Posteriormente, Cynthia Barreto Casartelli, de Bright Star, presentó a Anne Kavanagh, Directora Ejecutiva de Kavanagh Communications, quien dictó la ponencia titulada “Medios sociales – Invertir en la conversación 24/7”, en la que destacó que cada treinta segundos se incorporan a Facebook 240 millones de personas. “El futuro de la lealtad está en los medios sociales”, enfatizó la experta. Kavanagh mencionó a Le Novo, Duty Free Philippines, Justin Boots, Sephora, Bristol International, Quack’s Bakery, Turkish Airlines, Qatar Airways y Subway como algunos ejemplos de compañías que adop-

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

Visit us at the 2012 Tax Free World Exhibition, Red Village M24, CANNES, 22-26.10 www.travel-blue.com/corp

tan los medios sociales, y resaltó además la importancia de tener un sitio Web HTML 5compatible con la telefonía celular. Después de la pausa para café patrocinada por la revista Americas Duty Free y Godiva, Enrique Urioste, de Neutral, presentó a Francis Gros, Director del Grupo de Comercio Minorista de Viajes de Luxottica. Durante su charla, enfocada en el tema “Categorías en crecimiento”, afirmó que los accesorios componen cerca del 40% de las ventas de artículos de lujo en las tiendas duty free; mientras que los lentes de sol conforman el 7.1% de la categoría de lujo. Gros añadió que la visión que tiene Luxottica de los lentes de sol en el sector minorista de viajes es duplicar el tamaño de la categoría en cinco años, ser una de las diez categorías principales del sector, y conformar un 4% del total de las ventas minoristas de viaje. “Tenemos que destacarnos y ser mejores, para aprovechar al máximo la compra planificada de las personas que viajan”, enfatizó. Roland Stieger, Director de Ventas de Nestlé International Travel Retail, fue el segundo ponente en el tema “Categorías en crecimiento”. “En toda crisis hay un peligro obvio, pero una oportunidad no tan obvia. Para incrementar las ventas, se incrementa el tráfico, la cantidad de personas que compran, o la


variedad de la oferta. Estos son realmente los tres factores que les permiten incrementar las ventas”, afirmó Stieger. El prominente funcionario añadió que Nestlé International Travel Retail se ha esforzado enormemente en el incremento de la oferta concentrándose en la degustación donde se coloca el producto, y el trabajo conjunto con los operadores para encontrar soluciones novedosas a fin de incrementar el gasto por pasajero. Luego, José María Palencia, Director de World Duty Free Group, dio un discurso titulado “Adónde se dirige la industria y su evolución en Latinoamérica”, donde se refirió a cómo World Duty Free Group le otorga gran importancia a investigar no sólo a los segmentos de viajeros, sino además las economías mundiales, como medio de tener una idea de preferencias y hábitos de gastos futuros de los consumidores. Además, les mostró a los asistentes varias estadísticas que indican que el tráfico de pasajeros y los pedidos de fabricación de aviones en Latinoamérica se incrementarán significativamente en los próximos veinte años; y agregó que una buena porción de esos viajes serán interregionales, un factor importante para el sector duty free suramericano.

La noche culminó con una Cena de Gala organizada por London Supply, con discursos de Teddy Taratuty, Presidente de London Supply; y Magdalena Ducos, su Gerente Comercial. El tercer día de la Conferencia, Carlos Melconian, Director de M&S Consultores, afirmó que la situación en Latinoamérica es tan diversas como los países que la constituyen. Según Melconian, Brasil enfrentará el reto de detener la desaceleración económica, manteniendo al mismo tiempo precios estables. Asimismo, destacó que en Argentina el nivel de incertidumbre sigue siendo alto. “La desaceleración en Argentina es palpable”, aseguró, y pronosticó que la inflación en ese país llegaría probablemente al 25%. Posteriormente, Diego de Freitas, Co-fundador y Presidente de Anticipate Duty Free, dio una pequeña charla titulada “Hacer las mejores apuestas en el momento preciso”, y se refirió a la tecnología más moderna que se usa en el sector duty free, enfatizando en que el éxito en cualquier proyecto dado tiene más que ver con la determinación de una compañía y su equipo, que con la tecnología usada. Después de otra pausa para café, Felipe González, Secretario de Turismo de Foz do Iguaçu, les dio una charla a los delegados

sobre el “Caso de administración de Foz do Iguaçu”, en la cual resaltó la importancia que tiene el turismo para el área, y la intención del gobernó de convertir a Foz do Iguaçu en un “destino de clase mundial”. Por su parte, Olga San Jacinto, Directora de División de Google España, habló acerca del tema “Tiempos cambiantes o Tiempos de cambio”, y dijo que en el mundo de los negocios hay cuatro consideraciones claves: población mundial, globalización, situación económica e innovación tecnológica; y su presentación se concentró en el último de esos factores. Finalmente, la Ceremonia de Clausura estuvo a cargo de Cynthia Barreto Casartelli antes de que los delegados hicieran por última vez una pausa para el almuerzo. Si bien ASUTIL anunció el lugar donde se llevará a cabo la exposición de este año al término del evento, no se hizo alusión alguna a la sede de la Conferencia 2013. Aunque hubo rumores donde se mencionaba a Colombia como posible nación anfitriona de la Conferencia ASUTIL del próximo año, José Luis Donagaray los desmintió, y le aseguró a Americas Duty Free que ASUTIL no ha tomado aún una decisión referente a la ubicación de la conc ferencia del año próximo.

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L’Oréal Group

What’s

old is new again

Simon Nessman, the new face of Acqua di Giò Essenza

Revisiting its iconic Acqua di Giò fragrance, Giorgio Armani offers a new spin with Acqua di Giò Essenza BY HIBAH NOOR

iorgio Armani has launched Acqua di Giò Essenza, the newest member of its Acqua di Giò brand. Almost all of the original elements are present, but have been completely revised, which Armani says makes “for a familiar yet individual fragrance.” Composed by Alberto Morillas, the new eau de parfum embodies Armani’s love of the Mediterranean. The rock-strewn landscape of Pantelleria provided his inspiration when he created Acqua di Giò in 1996. Described as a new, more intense interpretation of its predecessor, Acqua di Gio Essenza’s offers a different top note. Where calone provided Acqua di Giò with an essence of salty sea water, the new ingredient cascalone embodies the coolness of fresh water. The former scent’s sea salt accents, citrus notes and musk and woody cedar have been revisited and revised. Launched onto Americas travel retail counters in August, the fragrance has received very positive feedback and encouraging first sales. “One of the main comments is that men love the long-lasting smell of Acqua di Giò Essenza. Women love its great aquatic freshness and delicate woody sensuality, making men extremely elegant and irresistible,” says Sebastien Devallet, Division Manager, PCI. Acqua di Giò Essenza features patchouli, which was obtained by a new distillation method and has been worked to eliminate the common hints of camphor and bring out the leather notes. Also featured is atlas cedar, noted for its purity and smoothness. Vetiver from Haiti unveils soft, yet spicy and smoky hints of tropical wood, differing from the more common—and expected— Mediterranean notes. Ambrox reappears in Acqua di Giò Essenza, only in a much stronger ratio. Hedione, the heart note of the fragrance and the founding product of contemporary perfumery created in the 1960s, is replaced by one of its descendents—still new to perfume— named paradisone. Known to reinforce the strength of each individual ingredient, paradisone adds a floral and vaporous scent, revealing jasmine absolute from grasse along with vegetal c facets of basil and sage.

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L’Oréal Group

Hollywood celebrity Julia Roberts is the ambassadress for La vie est belle

*Courtesy of Tom Munro and Carter Smith for Lancôme ©2012

Lancôme

explores the taste of iris New “La vie est belle” perfume builds on the brand’s strong fragrance history BY

HIBAH NOOR

ancôme has introduced the new “La vie est belle” fragrance, created by three of France’s leading perfumers —Olivier Polge, Dominique Ropion and Anne Flipo—as the “first ever feminine tasty iris.” The perfumery masters used 63 ingredients to create the scent: almost half of them natural and all of them essentially pure and not recomposed. Lancôme says the development process took over three years of work and no fewer than 5,500 versions before reaching the right balance of aesthetics, potency and the ability to last.

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“Even though the fragrance has been on counter for a couple of weeks, the initial results are extremely promising in US local market and travel retail Americas.”

Paul Connors, Lancôme Division Manager for Travel Retail Americas, L’Oréal Group

“If there’s one product, besides Visionnaire and Genifique, that perfectly encapsulates the ‘new Lancôme’ it is La vie est belle,” says Paul Connors, Lancôme Division Manager for Travel Retail Americas, L’Oréal Group. Described as “a scent of exception, a declaration of Haute-Parfumerie,” La vie est belle blends iris, the depth of patchouli and a gourmand accord. While iris is generally expressed as a middle note, in this fragrance it spans the full range from top to bottom. The iris variant is Florence iris pallida concrete, a rare and expensive ingredient to which is added a note of irone enveloped in iris aldehyde. To round out the floral heart, sambac jasmine and Tunisian orange blossom flowers have been added. The Indonesian patchouli essence has been fractionated to leave only its quintessence, which perfumers call the “heart of patchouli.” The sweet facet resembles spun sugar infused with notes of vanilla, tonka bean, praline, blackcurrant and pear. Lancôme’s long perfume heritage is reflected in the original 1949 “Le sourire de cristal” bottle, here revisited in a contemporary styling that was a full year in the making. A key feature is a pearlescent grey organza ribbon tied around the neck in a feminine composition. Made with heavy glass, the bottle combines elements of icon, luxury and femininity. Hollywood celebrity Julia Roberts is the ambassadress for the fragrance, and the campaign is being La vie est belle directed by the award-winning director Tarsem Singh. “La vie est belle with the crystal smile can only be presented by the ‘most beautiful smile in the world’— that of Ms. Julia Roberts, who embodies the idea of living a beautiful life in one’s own unique way,” says Connors. “Even though the fragrance has been on counter for a couple of weeks, the initial results are extremely promising in US local market and travel retail Americas. Everybody is very excited about this launch, as it is a true representation of pure luxury and happiness,” says Connors. “We are convinced that this new fragrance will be a great success on a c worldwide scale.” www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

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Essence Corp.

Essence advances “W Luxury distributor unveils plans for major new launches

e are passionate about our brands, proud to serve our clients and driven by excellence.” Essence Corp. President Jean-Jacques Bona uses this statement to frame his discussion of upcoming major launches from the luxury brand distributor in the Americas and Caribbean duty free markets. Following the success of Body EDP, Burberry is adding to its lineup with an EDT. The new fragrance is described as a “light, clean combination of refined ingredients including crisp green apple and seductive tea.” The fragrance’s “fresh and crisp” character is reflected in the new advertising campaign, which features Rosie Huntington-Whiteley as the first Burberry Body, and by the multifaceted glass bottle, which has been designed by Burberry CCO Christopher Bailey. Bailey’s rendering features a white textured card packaging with silver accents. Essence says that the launch of Body EDT during the second semester of 2012 will support the position of the brand in key duty free markets. Following up on the successful launch of Legend, Montblanc plans to maintain its momentum with a new floral fruity women’s fragrance: Legend Pour Femme. With orange blossom at the heart of the composition, the perfume “reveals a feminine and luminous elegance.” The bottle, whose design was inspired by the famous 4810 ring collection, forms a column of light and sports the famous brand’s sixpointed star emblem. “Legend Pour Femme is an ode to charismatic, fascinating women,” says Montblanc. Following on the strong global performance of the Jimmy Choo EDP, this year the brand launched Jimmy Choo EDT. Taking its cues from “today’s most dynamic women,” the new Jimmy Choo EDT is described as versatile, fresh and original. “A spritz of Jimmy Choo EDT imbues women with an aura of glamour and gives them an instant boost of confidence,” says the brand. Versace Yellow Diamond has been enjoying strong market success, and apart from maintaining full support for this line, Bona says that Essence will also be presenting the new feminine fragrance Versace Vanitas EDT. The new EDT comes wrapped in a new case, highly ornamented and with nuanced floral patterns rendered in gold, echoing the baroque gold finishing accents. The “luminous, light” floral scent features sheer facets of rose petals and freesia on the head, youthful notes compounded from osmanthus and tiare bloom and dryout accents of black tea and cedar wood, for an overall floral woody musk character. The EDT is offered in 30 mL, 50 mL and 100 mL sizes, complemented by the 200 mL vanity bath & shower gel, 200 mL vanity body lotion and a 50 mL perfumed deodorant spray. The face of the advertising campaign is Lindsey Wixson. Another new project is the Pink Bouquet women’s fragrance from Moschino. This new scent from the fruity/floral olfactive family has been developed around top notes of Italian bergamot, raspberry pulp and pineapple sorbet, followed by jasmine, pink lily of the valley, 76

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

BY

HIBAH NOOR

New floral fragrance Versace Vanitas EDT

peony petals and violet at the heart. The drydown has been assembled from a palette of peach, gingerbread and cosmone moss. The bottle is themed around intense soft pink with the cap surrounded by a sparkling pink ring. Pink Bouquet is offered in a 50 mL perfumed deodorant spray, 200 mL perfumed bath and shower gel and 200 mL perfumed body lotion, and in 30 mL, 50 mL and 100 mL EDT. Kendra Spears has been chosen as the face of the advertising campaign. Rounding out the new introductions is the new Live in Love fragrance from Oscar de la Renta. Live in Love opens with sparkling ginger orchid and bergamot, evolves into a floral heart and is grounded in a base composed of musk, amber and sandalwood. The bottle, which was designed by de la Renta himself, was conceived much like a dress. The faceted glass “represents the many dimensions of a woman’s life; each aspect lived to c the fullest, in love.” New women’s fragrance Pink Bouquet by Moschino


Clarins Groupe

Welcoming change Clarins Groupe undergoes profitable changes in order to take advantage of emerging markets BY HIBAH NOOR ith an eye on the huge potential of the Americas markets—both local and travel retail—France-based Clarins Groupe has embarked on a major transformation of its operations in the hemisphere, which is headquartered in Miami. As of the beginning of this year, Clarins Groupe has established a full-scale management team in the Miami office as a result of an agreement between Clarins Groupe and Essence Corp. Over the past few years, Essence Corp. has managed the regional office in Miami as an agent for the Clarins Groupe brands. That arrangement is now changing as Clarins Groupe assumes responsibility for operations in the local market throughout Latin America and in the travel retail market throughout the Americas. On the other hand, since January 2012 Essence Corp. has taken on direct distribution of Clarins Groupe products in the Caribbean. The new arrangement is expected to be complete by the end of 2014. Today the organization of the Clarins Groupe in Miami consists of a General Manager; two Sales Directors (one for local markets and one for travel retail, each with their respective team); a Marketing Director and his team; a CFO with a Financial Department; and last but not least, a reinforced Training Department. As for the Clarins Groupe team, it consists of 26 people and is headed by Paolo Rosellini, General Manager for Latin America and Travel Retail Americas. “Before the start of this reorganization, the configuration was similar to the new one, but the scope and consequently the people have changed,” says Rosellini, commenting on the changes made.

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The need for change With sales concentrated in Europe—the turnover split consists of 60% from Europe and 40% from the rest of the world—Clarins Groupe aims to flip the sales ratio and take full advantage of the growth trends in emerging markets. “We believe that both travel retail and local markets have a huge potential in our region,” continues Rosellini. “Our brand’s market share varies from one country to the next, but globally speaking we are still underdeveloped in our markets compared to the group’s representation in Europe. With Clarins, we are the number one skincare brand in the selective 78

Paolo Rosellini, General Manager for Latin America and Travel Retail Americas, Clarins Groupe

market in Europe. We are working towards raising the market share of our brands in the Americas. To achieve this goal, we will have to grow quicker than the market, fully developing our potential.” Clarins Groupe’s strategy to raise their market share is twofold. Firstly, Clarins plans to focus their efforts on the main brands, and in particular on key categories and key products: skincare for Clarins, Azzaro pour Homme for Azzaro (currently number one in Brazil) and Angel for Thierry Mugler (a global top ten fragrance). Secondly, Clarins plans to concentrate on the region’s major markets and on the top airport doors, perfecting its execution at point of sale, improving education and sales techniques for beauty advisors and increasing advertising and promotions. With this strategy in place, Clarins Groupe aims to reach the number one ranking for Clarins skincare in selective markets within the Americas and to reinforce its strong position in fragrances, with the overarching objective being to double its sales within the next few years. Such goals stem from the presence of demanding and product-savvy consumers in the travel retail market throughout the Americas, and also in the Latin American local markets, where incomes are on the increase. With the economic growth during the past years in Latin America, a large number of consumers have increased disposable income and

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

Clarins plans to focus its efforts on its main brands like skincare for Clarins and fragrances for Azzaro

are consequently moving from mass market to luxury products, explains Rosellini. They are asking for more prominent results and higher end brands. In addition to their desire for luxury products, the consumers of the region are also traveling more frequently, giving the travel retail business a “boost.” “We will do what is necessary to achieve our goal of reaching the number one ranking in selective markets in the Americas,” continues Rosellini. “Given the strong performance of our products to date, our leadership position in the highly competitive selective European market, the natural plant extracts used to produce the products and the fantastic sensory experience that the textures and aromas of our products provide consumers, we have no doubt that we’ll be able to fulfill and indeed c exceed shoppers’ needs.”


Beauty Beat: Fragrances

Fragrance New top-line scents for men and women

firsts Vintage Bloom by Jessica Simpson Company: Parlux Fragrances Description: The new fragrance from Jessica Simpson is a soft floral harmony of garden flowers. Created by acclaimed perfumer Stephanie Hakes at Ungerer and Company, Vintage Bloom captures the scent of a freshly cut bouquet of fragrant blossoms Booth: Green Village, M64

The Touch

Marc Eckō Green Vince Camuto Company: Parlux Fragrances Description: Vince Camuto is a woody fragrance created by award-winning master perfumer Harry Fremont. Encased in a flacon covered in leather, the bottle sports the seal of the Camuto family crest Booth: Green Village, M64

Guess Seductive Homme Blue Company: Coty Beauty Price: EDT Spray 100 mL: US$55; EDT Spray 50 mL: US$42 Description: Billed as a new interpretation of modern masculinity, this oriental woody fragrance has top notes of citrus caviar, cardamom and black pepper. Mid notes include blue coral aquaspace and geranium, and bottom notes are made up of cashmere wood, rippled sand and musks Booth: Marine Village/Foyer 3, S3

Company: Parlux Fragrances Description: Marc Eckō’s fifth fragrance for men “explores the adventurous side of life”. The scent portrays the freshness of woods and water and is contained in the signature Marc Eckō fragrance bottle featuring sheer green glass nearly split in two and marked by the reflective rhino logo Booth: Green Village, M64

Zippo The Woman Company: Mavive Description: Following the success of masculine fragrances The Original and On The Road, Zippo presents its The Woman fragrance for the feminine side Booth: Red Village, M30

Beyoncé Midnight Heat Company: Coty Beauty Price: EDP Spray 100 mL: US$50; EDP Spray 50 mL: US$42 Description: Beyoncé Midnight Heat is the newest entry in the Beyoncé Heat fragrance collection. The fruity and floral scent comprises dragonfruit, starfruit and Armenian plum as top notes; mid notes are made up of purple mokara orchid, black tulip and peony. The fragrance rounds off with warm amber, patchouli and sandalwood Booth: Marine Village/Foyer 3, S3

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Company: Travalo Description: This 5 mL refillable fragrance wand with rollerball technology has been receiving positive feedback from retailers worldwide. Like the earlier Classic Essential and Classic Excel models, the Touch features Travalo’s patented repeat pump system that keeps refilling simple and clean Booth: Yellow Village, D27


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Beauty Beat: Skincare & Cosmetics

Top tones Brighter colors and better tones set the pace Ultra Shine Gel

Bombastic Mascara

Company: Artdeco Description: The new Ultra Shine Gel provides a bright wet look. Acrylic resin makes the texture water-resistant and contributes to long-lasting wear, while acrylic polymer provides a more intense gloss. Applying the clear lacquer on the nails after lacquering will seal in color, while protecting against discoloration and fading Booth: Riviera Village, RF8

Company: Gosh Cosmetics by E. Tjellesen A/S Description: Gosh says that this mascara “gives extreme volume and length.” The huge rubber brush has three large reservoirs to store plenty of mascara and add precise accents to the lashes. Perfume free Booth:Riviera Village, RF5

Ultra Quick Dry Nail Lacquer Company: Artdeco Description: A clear lacquer that dries freshly painted nails in 60 seconds. The formula maintains high gloss and helps preserve color intensity. The transparent top coat provides protection for the nails and can be applied repeatedly to refresh colored lacquer Booth: Riviera Village, RF8

Luminaze by Tanda Company: Advanced Wireless Technologies Description: Luminaze breaks down melanin to improve the appearance of dark spots and overall evenness of skin tone in seven days, according to the company Booth:Yellow Village, F57

Creamy Matte Lip Color by Bobbi Brown Company: Estée Lauder Description: A matte lipstick formula that combines the look of a classic matte lip with high wearability. Creamy, moisturizing and highly pigmented the lipstick applies comfortably Booth: Riviera Village, RE18

Glam'Abdo Company: Jacques Bogart Description: To restore a flat, firm, toned tummy, Méthode Jeanne Piaubert Laboratories has formulated Glam’Abdo, a specialized, high-power treatment inspired by mesotherapy that can “lift,” plump up, firm and repair skin Booth: Riviera Village, RC1

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White Flash

Super Eye Treatment Company: 3LAB Inc. Description: Infused with 3LAB’s specialty ingredients, this treatment improves the appearance of wrinkles and under eye bags and evens skin tone. A blend of “stem cell activators” along with other clinically proven ingredients, such as peptide blends and natural plant extracts, regenerates skin cells, protects skin from UV radiation and repairs agedamaged skin tissue Booth: Green Village, L63

Company: La Colline Description: La Colline bills White Flash as “the first light-creating cure, with three synergistic skincare formulas that take action to reveal, brighten and unify a fair, radiant complexion.” The selective action of LUX-Factor (Lightening Ultimate XFactor) on pigmentation spots, combined with the antiaging properties of the CMAge Complex brightens and evens the complexion Booth:Yellow Village, E39


Owners Robert and Tania Bassan celebrated Tairo International’s 15th anniversary this year

Tairo International

Lengthening the list

BY

HIBAH NOOR

Distributor Tairo International has a huge slate of product introductions in the works for this fall

lavender and spicy sage and pepper notes. The base notes are cedar wood and sweet hints of tonka beans. The packaging is “essential and clean,” says Dolce & Gabbana: “the bottle confirms the appearance of understated elegance, yet once in the hand, reveals itself to be rounded, softening its aspect. A large cap dominates, again strictly blue on a silver ring.” The new Gucci Première is the brand’s interpretation of Hollywood glamor, celebrating “the star in every woman.” Gucci describes the scent as “a sophisticated wood and musk sensation.” Around the neck of the gold flacon is a medal, which is entwined with the Gucci House’s iconic horsebit. Gucci has Yves Saint Laurent will announced that actress be rolling out two new fragrances: La Nuit de Blake Lively is the face L’Homme Frozen Cologne and Parisienne L’Eau (left) of Gucci Première. P&G Prestige has a full slate of launches for this fall including the first ever James Bond 007 fragrance

airo International is anticipating “another thrilling year” thanks to a series of upcoming product launches by major names in the distributor’s portfolio, all scheduled for this fall, says company President Robert Bassan. Bassan and his wife Tania founded Tairo 15 years ago, and the company has developed a major presence in travel retail in Mexico and throughout the Caribbean, where its expanding portfolio of high-profile brands is enjoying increasing market success. To begin with, P&G Prestige has a full slate of four launches prepped to go this fall: the first ever James Bond 007 fragrance, Dolce & Gabbana Pour Femme and Pour Homme, Gucci Première and Boss Nuit Pour Femme. P&G Prestige will manufacture and distribute male fragrances under the James Bond 007 name. The 007 franchise, the longest-running franchise in film history, will join forces with P&G Prestige to launch its first ever male fragrance in September 2012. “James Bond has the right ingredients to delight men with a fragrance: it’s timeless, aspirational and iconic,” says P&G Prestige. The Dolce & Gabbana launches will take the brand back to its roots. Originally released in 1992, the classic Dolce & Gabbana Pour Femme will be revisited with a combination of notes of neroli, raspberry, green mandarin and potent florals such as velvety jasmine and sweet citrus blossom. The fragrance concludes with sugary ‘guimauve,’ vanilla, heliotrope and cream sandalwood. Dolce & Gabbana describes the packaging as “a little masterpiece of luxury... a bottle of purity, compact with precise angles lending an image of absolute elegance, which blossoms enticingly into a crimson colored cap supported by a solid base of gold.” Dolce & Gabbana Pour Homme was originally released in 1994 as a descriptor of the style of the Italian man. This fragrance highlights top notes of neroli, mandarin and bergamot over a heart of fresh

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THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012


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Tairo International The little black dress Boss is slated to introduce Boss Nuit Pour Femme, its new women’s fragrance, which Boss says was inspired by “the iconic symbol of feminine style, the little black dress.” The scent has been developed with radiant white peach, soft floral notes, warm woods and creamy sandalwood. Prominent among other forthcoming launches across the Tairo portfolio are items by Yves Saint Laurent (YSL). The company is preparing to launch a new women’s and a men’s fragrance. Parisienne L’Eau, the women’s fragrance, emphasizes freshness with green notes, crystalline roses and violet leaves. The scent ends with a base of patchouli, white cedar and musk “leaving a dewy caress on the skin.” The men’s fragrance is titled “La Nuit Frozen Cologne.” YSL says that the fragrance “represents a self-assured man with an addictive charm.” Built on notes such as woody cashmeran and icy juniper berries, this fragrance echoes the new women’s scent in accenting freshness. Diane von Furstenberg is readying itself for the launch, in October, of Love Diane, a new addition to the fragrance collection that takes as its touchstone the facets of Diane von Furstenbeg’s personality. The scent “embodies all Diane’s richness of femininity,” with top notes of red currants and apricot nectar, a heart of jasmine petals, and a base of licorice and praline. StriVectin, one of the newer additions to Tairo’s armory, has no fewer than three entrants in the starting blocks: StriVectin-SD Power Serum for Wrinkles, StriVectin-TL 360° Tightening Eye Serum and StriVectinTL Tightening Body Cream. StriVectin-SD Power Serum for Wrinkles is described as the brand’s “most powerful anti-aging serum” and features NIA-114. The serum uses plant stem cells and peptides to reverse wrinkles, diminish pores and promote reflectivity to enhance the appearance of radiant, healthy skin. StriVectin-TL 360° Tightening Eye Serum is a specialized eye serum that tightens and lifts thin, lax and droopy skin around the eye area for a 360-degree tightening eye lift. StriVectin-TL Tightening Body Cream does the same for the entire body, restoring “the look of youthful contour, tone and texture.” In November, Coty Prestige plans to launch Marc Jacobs Dot. The designer’s latest scent is composed of floral and fruity notes, surrounded with hints of coconut and soft vanilla. Polka dots provide the design accent for the red glass flacon, along with “hybrid butterfly-ladybugs.” The long awaited debut of Lady Gaga’s fragrance, Lady Gaga Fame, is also on tap for release this fall/winter season. Lady Gaga Fame is described as “a sultry black eau de parfum; the first of its kind in fluid technology.” The black fluid “exudes a lustful floral fruity essence for fabulous

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little monsters and sexy queens.” In September, Coty Prestige released a female version of Eternity Aqua for Men; Eternity Aqua for Her. “This fragrance is like a clean, crisp ocean breeze,” Coty Prestige says. The scent opens with a mix of juicy apple, apricot pulp and rejuvenating cucumber water, while the heart “maintains the tradition of Eternity” with white floral notes and dries down to warm notes of sundrenched woods and transparent musk. Also from the house of Calvin Klein, Encounter Calvin Klein is set to launch. The new men’s fragrance is a blend of spice, warm cognac and sensual woods. “The contrast of freshness and warmth makes the men’s scent an expression Marc Jacobs Dot will be available to the travel retail of unapologetic masculinity.” market in November Coty Beauty also has two launches lined up. First is Midnight Heat by Beyoncé, the third addition to the music star’s iconic fragrance collection. Midnight Heat is an evening scent that blends floral and warm notes. Also up for Coty Beauty is Guess Seductive Homme Blue. “Passionate, irresistible, bold and sexy are all words that describe the Homme Blue Man. The crisp notes of citrus caviar and aquatic notes of blue coral and aqua space makes this scent a daring twist on the original Guess Seductive Homme.”

Late but not least The list of planned fall launches continues with FCUK Late Night from TPR Holding, the latest addition to the FCUK fragrance portfolio. “It draws inspiration from the sexy allure of the glowing neon lights, club culture and graffiti printed fashion masterpieces from pop artists like Stephen Sprouse.” This new fragrance set includes a scent for men and one for women. Late Night for Him “is a seductive scent that takes away your inhibitions leaving you ready for a wild night filled with energy and endless possibilities.” Italian citrus, pear and pomegranate lay down the “energy” theme, while cardamom and clove bud contribute spiciness to the heart, mixing with lavender and a touch of fennel for “modern and edgy” flavoring. Patchouli, oak moss and vetiver build mystery at the base while warm amber wood and creamy vanilla contribute to a finish “that is long-lasting, masculine, and undeniably sexy.” Late Night for Her is billed as “a fierce yet feminine blend that sparks an awakening for spontaneity as it prepares you for a Love Diane by Diane dynamic, adventure filled night.” Top notes are bergvon Furstenberg is a new addition to the amot and red grapefruit; the heart exhibits dewy rose fragrance collection and intricate freesia combined with night blooming jasmine for a “sensuous and hypnotic allure.” Musk, cedar wood and vanilla absolute unite in the base notes. For both men’s and women’s variants, the iconic FCUK bottle has been adapted with “a limitless pattern of wild neon and bold graphics.” New launches from Lolita Lempicka are also in the works. The brand will be unveiling its first fragrance, Eau de Parfum de Lolita Lempicka, a designer fragrance for women. This “fairy tale for women… re-enchants everyday life with its intoxicating nectar of licorice flower. The fruit of temptation, it is a fragrance full of contrast where every detail speaks of love.” The brand also plans to introduce the limited edition L’eau en Blanc. The scent is based on a bouquet of white violets with a hint of raspberry c and musk. “It simply is an ode to love.”


Company News: Estée Lauder

Skincare News Traveller signs PIA, Shiseido deals Traveller Limited, a renowned in-flight services company within the well-established 50-year-old Chalhoub Group, has two important announcements to make: it has begun providing its services to Pakistan International Airways (PIA) and has signed a distribution deal with Shiseido, the Japanese skincare and cosmetics company that is a fixture in the most exclusive skincare establishments. Although Traveller is geared to airlines in Middle East, it also deals with non-Middle Eastern but regional based airlines. Traveller Limited’s General Manager, Rami Madi, says that two years ago it began servicing airlines based in Iran, both Mahan Air and Iran Air, followed by PIA this year. Part of Traveller’s strategy is to analyze the passenger profile of airlines before offering it specific products anyway. “We are open to working with all the airlines in the Middle East and the Near East,” Madi says. “Doing business with PIA was just another step for us… we are confident our new associations will flourish.” The Shiseido deal is pegged to distributing the well-known skincare and cosmetics company’s products on airlines in the Mideast. Shiseido, which is publicly listed,

started in Japan in 1872, and today operates worldwide, with centers in several European cities as well. It was born in Tokyo’s Ginza district as Japan’s first Western-style pharmacy, at a time when herbal

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

Shiseido Bio-Performance Super Corrective Serum

Shiseido Benefiance Wrinkle Resist 24 Day Cream SPF 15

medicine was the norm, founded by the 23-year-old chief pharmacist of a navy hospital, Arinobu Kukuhara. He picked the name from the famous Chinese book of fortune telling Yi Ching. The addition of Shiseido to Traveller’s coterie of renowned products is another feather in its cap, as it continues to strengthen its reputation of being the preferred and

reliable choice for airlines in the Mideast region. It provides brands with support in terms of implementing a marketing calendar for the supplier and only offers products to airlines after identifying and analyzing passenger profiles. It also helps in designing and implementing onboard sales procedures and then monitors the performance of the product.

Estée Lauder introduces Clinique Repairwear Laser Focus All-Smooth Makeup SPF 15 Clinique introduces a new foundation that creates a flawless complexion, softening the appearance of lines and wrinkles immediately and over time, and working to prevent the visible signs of aging. The new Clinique Repairwear Laser Focus All-Smooth Makeup SPF 15 incorporates Clinique's advanced patented technology from its powerhouse de-aging serum, Repairwear Laser Focus Wrinkle & UV Damage Corrector. The result is an ultimate de-aging foundation that softens lines and covers imperfections. Repairwear Laser Focus All-Smooth Makeup SPF 15 is also formulated with ingredients that prevent and repair visible UV damage, one of the leading culprits of lines and wrinkles. This foundation addresses past UV damage, with Ultrasomes that grad-

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

M

ually and visibly help repair damage resulting from direct UV exposure. A cocktail of ingredients works to minimize the appearance of damage. Whey Protein helps minimize the appearance of lines and wrinkles, while Siegesbeckia Orientalis Extract and Palimitoyl Oligopeptide help to plump up and fill in lines. Supporting ingredients to protect the skin include Vitamin E to provide antioxidant protection and SPF 15 to help protect skin from future UV damage. Taking a 360° approach to age prevention, Repairwear Laser Focus All-Smooth Makeup SPF 15 will improve the texture of the skin while working to prevent future damage. The foundation is available at Clinique travel retail locations in Europe, the Middle East and Africa.

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

MAC’s Pop-Up store in Soho, New York

A glimpse of MAC’s limited edition Wonder Woman collection

THE AMERICAS DUTY FREE & TRAVEL RETAILING MARCH/APRIL 2011

New for 2013, presents an exclusive Skincare & Cosmetics Supplement that will have bonus distribution at the 2013 TFWA AP exhibition in Singapore.

Beauty Beat: Skincare & Cosmetics

Sun Care Milk-Lotion Spray SPF50+ and Sun Wrinkle Control Cream for Face SPF50+ by Clarins

SPECIAL REPORT: SKINCARE AND COSMETICS

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

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

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

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

New Absolu Voyage Rose palette

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

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

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

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

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The Skincare & Cosmetics Supplement is dedicated to bringing readers the most current news for all things beautyrelated. With in-depth reports on the biggest brands and up-and-comers alike, as well as unparalleled coverage on innovation and trends, there is no doubt that the 2013 Skincare & Cosmetics Supplement will provide both buyers and suppliers with an inside perspective on the shimmering category.

THE AMERICAS DUTY FREE & TRAVEL RETAILING MARCH/APRIL 2011

Company News: L’Oréal Consumer Products

The

right mix

L’Oréal Consumer Products makes inroads in the Middle East with a varied portfolio BY HIBAH NOOR ur major development in the Middle East has been getting The Body Shop brand into the airport stores,” says Jacques Berger, Travel Retail Marketing Director, L’Oréal Consumer Products. “In the Middle East we have introduced The Body Shop brand in some new countries like Jordan and Egypt and will introduce it in Lebanon very soon. “The Body Shop is available worldwide in 150 countries.” The brand is also in the local market in 66 countries and in 2,500 standalone stores worldwide, Berger adds. “We hesitated a little bit about what to put on the shelves at first,” Berger says, “but after a while we discovered that the retailers prefer the body butters and all the body products. This is the way to hook the consumers.” The Body Shop brand is especially well suited for gifting, Berger says. The “Create Your Own” concept, introduced last October, allows the consumer to create their own tailored gift set by picking two Body Shop products and then receiving a third complimentary product. The complimentary item can be a mini shower gel or mini body butter. In addition to The Body Shop, L’Oréal Consumer Products handles Roger Gallet, Maybelline and L’Oréal Paris. The latter is a good partner for The Body Shop, according to Berger: in fact The Body Shop was first introduced to the Middle East market following on the success that the L’Oréal Paris brand enjoyed there. “The link between The Body Shop and L’Oréal Paris lies in the fact that they are two affordable brands which are in the airports to attract new consumers,” he says. “The idea is to bring additional business to the operators.” Travel retail remains an ideal market for luxury products, and Berger believes that because more and more people are traveling, operators continue to need brands like The Body Shop and L’Oréal Paris to attract new categories of buyers and increase revenue. L’Oréal Paris is number one in Jordan, but Dubai is definitely one of the most important Middle Eastern markets for the brand. It’s in all the terminals at the airport, and is backed up by 16 on-site beauty advisors. “We have huge promotions,” Berger says. “Most of the time it’s skincare because skincare is more successful than makeup at this airport.” There are a lot of Chinese travelers who transit through

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“The link between The Body Shop and L’Oréal Paris lies in the fact that they are two affordable brands which are in the airports to attract new consumers.”

A radiant p. glow

Jacques Berger, Travel Retail Marketing Director, L’Oréal Consumer Products

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Beauty Beat: Skincare & Cosmetics

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he core of the L’Oréal Group’s Lancôme brand is skincare, and at the moment the most important news in that line is the release of Visionnaire [LR 4212 4%] Corrector Serum. Based on molecular research that has uncovered what L’Oréal calls “a miraculous new molecule” – the LR 4212 in the product’s name – Visionnaire promises to rejuvenate skin, imparting finer texture, erasing wrinkles, reducing pigmentary and vascular irregularities and tightening pores. “There is a reason, why we call it the ‘Fundamental Corrector’ – for a ‘New Vision of skin perfection.’ Upon application, one can immediately see the skin being transformed,” explains Stefan Lehner, Brand Director Lancôme for Travel Retail Worldwide, L’Oréal Luxe. “Such major scientific breakthrough in skincare does not happen every three months. We are particularly excited about this skincare launch and are putting all our energy, creativity and excitement in this successful launch. We are convinced that we can recreate a similar success story as we continue building with Génifique Youth Activator.” The “miracle molecule” in Visionnaire 'self-propels' through the layers of the epidermis, to set off what Lancôme calls a series of tissular micro-transformations. The result, the company says, is that “skin becomes finer, wrinkles are erased, pigmentary and vascular irregularities are reduced and pores are tightened.” The company’s researchers have always paid attention to the processes that plants use to repair themselves. When damaged, plants produce a “signal molecule” called jasmonic acid, which activates healing processes in damaged tissues and makes them more resistant. The performance of the new Visionnaire LR 2412 4% product has been tested on Hispanic,

Visionnaire [LR 4212 4%] Corrector Serum

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The fountain of youth p.

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Kiehl’s

L'Oréal breaks new ground with a revolutionary skincare product

Cellular Radiance Emulsion SPF 30

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New and renewed p.

Company News: L’Oréal Group

HIBAH NOOR

Cellular Eye Cream Platinum Rare

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Lancôme releases Visionnaire based on LR 2412 molecule

Creative cosmetics and revolutionary skincare: traveling consumers will have plenty of options to choose from this season BY

Editorial Highlights: • Feature Report: Asian retailers and the skincare category • Trend Report: An in-depth overview of the year ahead in cosmetics • Beauty News: What’s new and noteworthy • Cosmetic Guide: Seasonal must haves from top brands

Revitalift Repair 10 combats 10 signs of aging, including UV damage

Dubai, and they favor whitening products, and a lot of routines like toners and cleaners. Revitalift is one of the top sellers, and its market momentum was reinforced with the recent introduction of Revitalift Repair 10, which combats 10 signs of aging, including UV damage. The Revitalift line also includes Revitalift Program, which Berger says is the number one SKU worldwide. In addition to anti-aging products, mascaras are one of the strong suits for L’Oréal Paris, and the brand introduced two new sets at TFWA WE this year. Mega Volume Collagene 24 Hour introduced new collagen biospheres for added lash volume, boasting an expansion factor of nine in addition to its 24-hour effectiveness. False Lash Telescopic delivers lengthening in addition to a false lash effect, based on the linking and binding of 1.2mm microfibers to create a telescopic ladder. At TFWA WE L’Oréal also introduced a new promotional tool for retailers that leverages digital technology and the Internet. It features a large-screen monitor and enables digital marketing content to be controlled over the Internet. “We can change advertising from our office in all the airports around the world,” Berger says. “We can adapt to the type of travelers coming through the airport: for example, for Dubai Airport if there’s a flight coming from China we can make sure that the advertising is in Chinese with subtitles.” The unit is already in use in Paris, with French, English, Chinese and Russian options. Germany will follow soon, and L’Oréal is already sizing up other promising venues.

Caucasian, Asian and Afro-American complexions. Lancôme says that the product can be used on all skin types, including sensitive skin, and on the eye contour regardless of the time of year or time of day. Besides the uniqueness and newness of the new molecule, Visionnaire LR2412 4% is proven to be effective on every type of skin and on all different skin carnations. “We have tested the product on four different ethnicities, always with outstanding results. Visionnaire LR2412 4% truly is a transversal skincare innovation for each and every woman on this planet – particularly those who are currently not Lancôme skin care users. Third, the powerful molecule LR2412 has 100% tolerance – even around the eye contour – and is active on 100% of the subjects tested, which makes it perfectly suitable even for sensitive skin types,” says Lehner. He continues: “Test results on Asian women are just amazing. They especially love the visible skin perfecting properties of Visionnaire LR2412 4%. This product integrates itself perfectly in the Lancôme skincare routine. One starts with Génifique to activate, then applies Visionnaire LR2412 4% to correct, before using one’s skin care cream(s). “Exclusively for the Asian clientele we have developed in addition a Visionnaire Emulsion and Lotion, to offer a complete ‘Skin Perfection’ Routine,’” says Lehner. The bottle design is inspired by a hightechnology mix of glass and metal, centred on a fusion of silver and malachite green. The company’s skincare focus for September and October will be on Visionnaire. Apart from the regular POS and animation programs, it will use different visuals, i.e., testimonials with different ethnicities at the same POS in order to communicate that Visionnaire LR2412 4% truly is a product for every woman.

Skincare Report

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KIEHL’S ANNOUNCES

radiant

“Travel-Tested Solutions”

glow BY

Unisex skin collection offers remediation for physical and psychological impact of travel BY

or the first time, New York skin and hair care products maker Kiehl’s is offering a collection of FAA-compliant, travel-tested formulas titled “Travel-Tested Solutions.” This unisex collection is designed to infuse skin with essential moisture and nutrients during harsh travel and post-travel conditions. Kiehl’s Travel-Tested Solutions is available exclusively at Kiehl’s airport shops, downtown duty-free shops and onboard with Asiana Airlines, Air China, Air Hainan, China Southern and China Eastern airlines from May of this year. Seasoned and infrequent travelers notice the direct effects travel can have on skin including dehydration and skin sensitivity. These stresses start during travel and can affect skin for days afterward. “Preventing hydration loss during a flight is only half of the battle,” says Cammie Canella, Kiehl’s

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Vice President Education and Customer Relations. “Just as jet lag must be tended to for days following travel, travelers should actively nurture aggravated skin two to four days post-travel to restore their skin’s natural balance.” Extended exposure to confined environments such as trains and planes often leaves passengers feeling psychological and physiological effects on their skin. Travelers face conditions that include low humidity, low air pressure and recycled air, which cause severely parched skin. The typical relative humidity in aircraft cabins for flights over an hour is below 10% for most of the journey—as dry as desert air—often dropping to less than 5% on longer flights. To combat these effects, Travel-Tested Solutions employs soothing and anti-microbial properties to help defend skin immediately against these adverse environmental conditions. The collection also contains cactus flower extract, which is

JAMES ROSS

Skincare’s vitality is far from fading in Asian travel retail

HIBAH NOOR

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known to deliver 24/7 hydration, and Tibetan ginseng, a mountain plant that increases skin-cell respiration at high altitudes. In combination with the blend of essential oils (lavender, geranium and rosemary), the products help to protect against dehydration. Kiehl’s says that all four products in the collection have been tested in-flight by pilots and crew members of Air China, Air Hainan, China Eastern and China Southern. The In-Flight Refreshing Facial Mist is designed to restore complexions irritated by severe in-flight cabin conditions. The mist is formulated with cactus flower, Tibetan ginseng and a blend of lavender, geranium and rosemary. The 24/7 Activated Moisturizer hydrates skin and helps shield it from extreme in-flight skin dryness and dullness. The First Class Purifying Hand Treatment is designed to help protect hands from impurities commonly encountered during travel. The Eucalyptus Lip Relief Class has been formulated with eucalyptus, along with cactus flower and Tibetan ginseng. Each product is available for individual purchase or they can all be bought together as a travel set, which includes a complimentar y limited edition luggage tag.

t is worth remembering that during the global economic downturn of 2009, duty free sales in Asia Pacific continued to grow. In the beauty category, the region has become a core revenue earner for the big houses, and investment has poured in, particularly in the skincare sub-sector. After 2010’s strong rebound, 2011’s beauty performance in duty-free proved equally robust, driven by skincare. For example, at Nuance Watson (Singapore), which operates the beauty concessions at Singapore Changi Airport – one of the biggest duty free locations in the region – skincare grew at over 20%, faster than make-up or fragrance. In terms of beauty share, skincare saw a +2% gain and Senior Category Manager Chillie Por says: “We predict skincare will probably increase by a further +1.5%

Yves Le Breton, Vice President Corporate and Sales Strategy, La Prairie

points. Skincare will remain a strong driver in 2012, in tandem with the healthy sales trend from PRC travelers, our number one tourist nationality.” Nuance Watson (Singapore) has in place several exclusive launches in the pipeline including the arrival of Coty’s US skincare acquisition Philosophy in May and, at the high end, another SKII world exclusive launch in June, part of a larger program of in-store promotions and animations that keeps the sub-sector buoyant. www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

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Another luxury skincare brand, La Prairie, is seeing demand at the top end. “Generally we can say that our most precious collections such as Cellular Platinum Rare, Caviar and White Caviar Illuminating Système are the top sellers,” says Vice President Corporate and Sales Strategy Yves Le Breton. “Our launches have done extraordinarily well because Asian consumers like new developments in skincare. They understand the luxury and high tech approach of La Prairie.” This has helped La Prairie to establish itself well in the region. “While five years ago Asian travel retail was 25% less than the travel retail business in Europe, it is now doing 25% more than in Europe,” comments www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

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La Prairie

The

BY

MELISSA SILVA

power of

promotion La Prairie aims higher with new launches and plans for continued growth worldwide

a Prairie, the brand known for its scientific-based, high tech skincare, is set to showcase a variety of launches for the first half of 2013 at this year’s TFWA World Exhibition in Cannes. Although the brand has achieved great success in the travel retail business, specifically in the Asia region, plans are underway to revitalize its marketing approach and sales strategies. The company will also be launching new promotional plans targeted specifically towards the Americas as a means of maintaining its already strong presence within the region. “In the past, we had a more reactive approach to marketing in travel retail and relied on the expertise of the Beauty Advisors in the stores to excite consumers, but this will change in the future, as we have a very proactive game plan,” says Yves Le Breton, Vice President, Corporate and Sales Strategy, La Prairie. Part of this plan involves offering more sets and promotions, developed specifically with the global traveling consumer in mind. In transitioning to a more proactive approach, La Prairie also plans to invest more in communicating with these consumers before they visit the stores in order to raise brand awareness. For La Prairie, an increase in sales is contingent on brand awareness and education, specifically in the areas of product range and price points. “For La Prairie, the best strategy to drive sales in travel retail is to raise awareness and demand for our products in the local markets through brand education. Many know us as a high-performance luxury Swiss beauty brand, but perhaps the fact that we offer a comprehensive collection of products that suit all ages, skincare needs and budgets has not been

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La Prairie will be expanding its top-selling White Caviar Illuminating Système collection in January 2013

The newly renovated La Prairie boutique located on Level 2, retail concourse of the Zurich Airport

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THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012


clearly communicated. In fact, over 50% of the products in our line are under the US$300 mark,” says Le Breton. Where brand education is key for increasing sales, maintaining a solid position in the Americas duty free market hinges on promotions for La Prairie. Having a travel retail team dedicated to educating consumers about the brand by offering promotions encourages consumer interest. “Once a consumer’s interest is piqued through a promotion, we can convert them into customers… Our beauty advisors are that knowledgeable, and our products are that powerful,” comments Le Breton. Of all its promotions, Le Breton tells Americas Duty Free that the most successful La Prairie has had so far this year was Cellular Power Charge Night in Dubai Airport this past March. “We had a huge promotional spot right in the middle of the walkway in Terminal 3, combined with additional staffing and advertising in multiple languages around the terminal. As a result, we were the number two ranking skincare brand in this airport [in March],” says Le Breton. La Prairie is currently scheduling an ambitious promotional plan in the Americas duty free market for the fall and winter. This plan not only involves the debut of new product launches, but will also support its cult favorite, Caviar Collection, which is currently celebrating its 25th anniversary. Promotions such as this may account for the success La Prairie is currently experiencing in the Americas. With a very successful airline business and its own landed business growing faster than the market average, the company has planned projects to open stores in new locations, such as Atlanta. In addition, the continual influx of tourists from China and La Prairie’s popular Cellular Power Trio

Brazil has worked in La Prairie’s favor, allowing business to flourish in the Americas. Looking ahead to next year, Le Breton feels that the regions that will offer the greatest growth in 2012/13 are those with a high mix of skincare and a high mix of new consumers. “Asia is already the largest of our regions, and I expect that the gap with Europe will continue to grow in the next couple of years,” he explains. “I also anticipate above average growth in the Middle East and the Americas thanks to new airport openings and renovations that will give us an opportunity to improve our presence in some key locations, such as Dubai and Los Angeles.” Looking just around the corner to October’s TFWA World Exhibition in Cannes, La Prairie has a number of exciting launches to reveal. Expanding its top-selling White Caviar Illuminating Système collection, La Prairie will be including three new complementary items, set to debut in January 2013. New additions include its White Caviar Spot Treatment, White Caviar Illuminating Hand Cream with SPF 15 and White Caviar Illuminating Eye Cream, which is formulated to target specific discoloration in problem areas by brightening the skin before, during and after pigmentation problems arise. An additional product, White Caviar Illuminating Clarifying Lotion, will launch exclusively in Asia. “These are products anyone can embrace and utilize as they address common issues and concerns that strike us all: dark under eye circles, a stubborn age spot on the face or chest, aging hands,” says Le Breton. Following these additions, La Prairie will also be debuting Cellular Power Serum, a new antiaging product, in March 2013. Characteristic of the brand’s scientific foundation, the serum involves a new Defense Fortifying Complex combined with the Cellular Power Complex to empower the skin to reclaim its optimal equilibrium, youth and beauty. “Cellular Power Serum joins the ranks of fellow power players Cellular Power Infusion and Cellular Power Charge Night, which have become very successful products for La Prairie in the short time they’ve been in the market,” explains Le Breton. The inspiration behind these new launches stems from La Prairie’s internal creative

development group, comprised of international specialists in the fields of research and development, ingredients, packaging and consumer aesthetics. It is the group’s collective knowledge and experience that Le Breton claims is La Prairie’s secret to success. Collectively, this group has produced all of La Prairie’s products, namely its renowned Caviar Collection, its "heavy metal" launches—including Cellular Radiance Concentrate Gold, the 24 carat gold nano-particle infused elixir, and Cellular Cream Platinum Rare, a super-charged anti-aging cream formulated with colloidal platinum—and the White Caviar Illuminating Système among others. With the company heading into what Le Breton calls an “exciting direction,” travel consumers will have to keep their eyes and ears peeled for travel retail exclusives. He tells us that at the moment there are plans in place, but the c details have yet to be divulged. Yves Le Breton, Vice President, Corporate and Sales Strategy, La Prairie


L’Oréal Travel Retail Americas Consumer Division

Covering all the

bases BY

HIBAH NOOR

L’Oréal Travel Retail Americas Consumer Division has a broad portfolio of products and strategies for the Americas markets ast year was a good year for our brands in travel retail, says Sebastien Levi, Division Manager, L’Oréal Travel Retail Americas Consumer Division—especially for the division’s “priority brand,” L’Oréal Paris. “We outperformed the category in all the airports we’re in,” Levi says, “with a strong focus on South America, where we’re doing extremely well, particularly in Argentina, Uruguay, Colombia and Chile.” The brand is currently enjoying an annual rate of sales growth of 20% on average in travel retail in the Americas. The key, Levi says, is to keep it simple and impactful. L’Oréal Paris normally focuses all of its promotional energy on one or two blockbuster products per year. “The core of our animations is what we call the ‘360.’ This means to give them full exposure at the point of sale. On some products we play an animation tower, glorifiers and gondolas, and ideally have a presence in the duty free retailer’s catalogue. We try to focus on one product and we find different ways to touch and talk to the consumer.” One key priority Levi and his team have is to fully capitalize on L’Oréal Paris’ premiumization, a term that in this context means moving the packaging, positioning and advertisements in an upscale direction. In terms of new launches, the “volumizing” franchise in mascaras,

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L’Oréal Paris adds to its “volumizing” franchise in mascaras by introducing Mega Volume Collagene

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which has been very successful in the last three years, is going to be expanded. “We first launched the Extra Volume Collagene, then it was the Volume Million Lashes, and this year we have just launched Mega Volume Collagene,” Levi says. “There’s really strong impact. This is the product of the year. History teaches us that when we launch a mascara aggressively in travel retail, with the support of the local market, there’s no risk.” The Mega Volume Collagene is being pitched into a market segment, volume that accounts for 48% of the total mascara market, and is still growing at a rate of 12%. The product contains new collagen biospheres, that capture water as a dry sponge and expand up to nine times for plumped up lashes and a spectacular volume during 24 hours, Levi says. The new black booster polymers allow a finer and more homogeneous dispersion of pigments for a blacker result and a maximum visibility of the volume. A new nail polish has also been the drawing boards for L’Oréal Paris, with a major launch in 2012. Nail polish is very much on trend right now, Levi says, growing faster than any other segment in the local makeup markets. “What’s interesting about this is it’s under our Color Riche line,” Levi says. “Color Riche is our number one lipstick and so it means two things. The first thing is we really want to use the strength of Color Riche and apply it to the nail polish. The second thing is we really want to create some matches between nail polish and lipsticks.” On the serum front, a similar premiumization has been under way, with premium packaging launched some three years ago. The latest product to be launched is the Youth Code Luminize Serum, a notable new product introduction for L’Oréal Paris. Inspired by gene research, L’Oréal has developed Lumi-Gen technology, that helps reduce the appearance of irregular skin pigmentation and restores skin luminosity and evenness.

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

Color Riche Nails is a major launch for L’Oréal Paris in 2012

The bath and body difference Another major brand is The Body Shop, where bath and body products are the core. The fragrance assortment has been reduced after L’Oréal Travel Retail Americas Consumer Division made a case that deeper market differentiation could be made with body and bath than in fragrances, which is a mature category in the South American markets. The main launch of the year in travel retail is the Satsuma range, which offers “softer feeling skin with a refreshing, citrus-scented body butter that moisturizes for up to 24 hours.” The fragrance contains natural Satsuma essential oil from Argentina. The well known body butter is included in the range with a shower gel, body lotion and body scrub. For the first time, The Body Shop is introducing Antibacterial Hand Sanitizers


Imperial animations

a back seat for the time being. Standout efforts include strong animations in Montevideo in the second semester of 2011, with high visibility in print collateral reinforcing the brand’s strength in fragrances and soaps. Levi says that a huge animation took place in Brazilian airports in April 2012 to coincide with the brand’s 150th birthday, centered on limited edition offerings. The birthday promotions feature a design reinterpretation of the brand’s famous Napoleon roll bottle, leveraging the historic ties between Napoleon and the “Eau de Cologne Jean Marie Farina.” Today the collection includes Eau De Cologne Jean Marie Farina, Eau Fraîche Parfumée Bois D'orange and Eau Fraîche Parfumée Fleur D’osmanthus. “This was a brand animation rather than a product animation,” Levi says. “It’s about the new limited editions that convey the idea of tradition that is so linked to Roger Gallet. Consumers in Latin America love the brand. They have a special connection with it—they always mention personal stories about the brand.” In Brazil, sales during this animation have more than doubled versus an average month, and an animation on the limited editions was also implemented in London Supply stores last summer. Levi notes that sales are picking up, with orders ramping up following the 2010-2011 transition where the brand’s priority was on clearing out old stock. “Today we have the right products and merchandising,” Levi says. The results are very positive, from Buenos Aires to Sao Paolo, from Panama to Bogota, and even in Cancun, Mexico, which is a surprise, Levi says, because of the number of US travelers there. “It changes the perspective for us a little bit. We’re currently studying this. Maybe there is room in the North American market for Roger Gallet!” c

The Roger Gallet brand is doing well, and Levi’s priority is to get exposure across all duty free shelves in the Americas. The Roger Gallet profile has always been strongly oriented toward Latin America, and Levi’s job right now is to work with major operators in Latin America, with North America taking a bit of

Roger Gallet launches new limited edition fragrances to mark the brand’s 150th birthday; the collection includes Eau De Cologne Jean Marie Farina, Eau Fraîche Parfumée Bois D'orange and Eau Fraîche Parfumée Fleur D’osmanthus (pictured)

The Youth Code Luminize Serum by L’Oréal Paris is inspired by gene research

The other launch is the Vitamin C range, which utilizes vitamin C-rich Amazonian camu camu berry and community trade Brazil nut oil. The camu camu berry grows on small trees in the Brazilian Amazon and has one of the highest vitamin C contents to be found anywhere. The Brazil nut oil comes from Candela, also in the Brazilian Amazon. For the first time, hand sanitizers are also being introduced. Levi says these gel sanitizers cleanse hands without rinsing, via an antibacterial hand gel that kills 99.9% of germs and contains no triclosan. “We buy community fair trade camomile water from Norfolk Essential Oils, a family-run co-operative in Norfolk, England,” Levi says. “Our trade provides the farmers with a reliable income, and has helped revitalize local businesses.” For Levi, what defines The Body Shop in 2011-2012 is its market momentum in travel

retail in the Americas, after its first openings in Brazil, Uruguay and Panama in 2010, followed by further market penetration and new listings last year. “We opened in Buenos Aires with Dufry, New York T3 and T7 with DFA, we also opened in Punta Cana with DFA and in La Guardia, and in four additional border stores in the US,” Levi says. “We also opened the diplomatic store of International Shoppes in downtown New York, which is a beautiful back wall. The most recent openings were with Starboard Cruises, and we look forward to continuing our expansion in the coming months. “We see sales really picking up,” Levi says. “The consumers are looking for natural, organic and ethical brands, and that’s The Body Shop. 2010 was the launch of The Body Shop in travel retail, and 2011-2012 was devoted to making this successful. We make it successful with powerful animations with a strong focus on the blockbusters like Body Shop’s bath and body products. For instance a major merchandising tool, the giant body butter, has proven to be not only spectacular but extremely effective as a sales driver.”

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La Perla Asia Pte. Ltd.

La Perla’s intimate edge brings success in global markets BY

till a relative newcomer to duty free, standout lingerie brand La Perla has been encouraged by early successes to make a more aggressive push into the channel, says Andrea Bonardi, Managing Director, La Perla Asia Pte. Ltd. The company is in the process of formulating a global duty free development plan, and will soon begin to contact operators with a view to developing its business in hubs, strategic airports and travel retail destinations around the world. “We entered duty free several years ago in Europe at Barcelona and some minor Italian airports. We then successfully strengthened our presence in Asia at Hong Kong International Airport and Changi. These developments have convinced us to pursue duty free and travel retail more aggressively,” Bonardi says. The company will not participate in the Cannes trade fair this year but “assuredly” will next year, he adds, noting that La Perla made its first-ever appearance at TFWA AP show in Singapore this year. “We’re happy with the outcome, but it was already too late to book a suitable space in Cannes, so we also have more time to prepare for Cannes 2013.” In the Americas, La Perla is showing strong growth in the US and is expanding rapidly in Central and Latin America thanks to an agreement with a regional partner. The brand plans to open its first boutique in Mexico City and in Tocumen International Airport in Panama City by year’s end. In Brazil a slightly different strategy is being adopted, with the development of wholesale distribution to capture markets in “second-tier” cities, where flagship stores aren’t yet feasible. When asked which parts of the world offer the greatest growth opportunities, Bonardi singles out the former Soviet Union and Asia. “As a lingerie brand, our marketing must be very subtle and gentle, in line with our philosophy,” Bonardi says. “We prefer to engage our customers at the store with excellent service and beautiful ambience rather than promoting the brand in a traditional way.” To drive sales, La Perla focuses on staff training and customer education. Because sales in travel retail occur much faster than they do in the domestic market, visual merchandising and a good

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La Perla’s Fall/Winter 2012 collection focuses on “Perfume of the Orient”

HIBAH NOOR


assortment play a more significant role in this segment. Bonardi says that La Perla tends to limit traditional marketing promotions, “due to the nature of our product.” For Fall/Winter 2012, La Perla will focus on “Perfume of the Orient,” an Asian-accented collection that combines “the grace of a geisha and the Italian sense of elegance.” Composed of obi belts, kimonos, lacquered screen patterns and fans, the collection displays colors of black, China blue, pink camellias, yellow curry, red lacquer and gray. The fan has provided the design keynote for the collection’s Leavers lace and satin garments, which have been designed with nude color strategic tulle inserts for a trompe-l’oeil effect. The garment styling also incorporates other Eastern wardrobe elements such as the obi belt, which appears on baby dolls. Chantilly lace woven with a camellia pattern is the main character determinant for the entire range, playing on a two-tone effect established through the use of contrasting color satin. Stylized bamboo canes are embroidered on tulle in the style of ‘floating world’ paintings. “Furoshiki,” the Japanese art of wrapping objects in fabric, themes some of the garments, where embroidered tulle is "wrapped" with a sheer layer of smooth tulle. Some of the nightwear creations bear fabric designs taken from silk kimono prints depicting large round flowers in striking variations. “Our inspiration is always women, notably ‘special’ women, whether actresses or artists or intellectuals, who have lived a special life and are a source of inspiration for any women,” Bonardi says. “As a fashion brand, our research is always aimed at spotting trends and following them—possibly anticipating them. We always try our best to meet the demands of our global customers, delivering a product that is consistent with its DNA and its heritage, both in terms of quality and design.” c

“As a lingerie brand, our marketing must be very subtle and gentle, in line with our philosophy.” Andrea Bonardi, Managing Director, La Perla Asia Pte. Ltd.

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Women’s fashion items and accessories displayed at point of sale in airports

Desigual

Desigual: designing success Iconic fashion brand charts a course deeper into the travel retail channel ver the course of the last decade, fashion brand Desigual has been focusing on building its retail business as well as developing the wholesale side, says Sergi Tomàs Pérez, Travel Retail Director, Desigual. The company started out in Spain as a wholesale business focusing on the men’s side, but now works with department stores around the world, as well as setting up shop-in-shops—and has developed the women’s side of its product range. The travel retail channel is also being cultivated. “One and a half years ago we started with the travel retail business as an independent business unit,” says Pérez. “The strategy is to maintain the business in Europe and start increasing the presence of the brand in the US and in South America, and really start developing Asia.”

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This year marks the first time that Desigual put in an appearance at TFWA Asia Pacific show, a step that underscores the company’s determination to raise the Asian market to no less than one third of total turnover within ten years. Desigual currently has affiliates in Singapore and in Tokyo, with others to come in Shanghai and Hong Kong. Concurrently, the company is raising its investment in human resources and in developing its organization in the region. The first warehouse is slated to open in Hong Kong at the end of this year. Aldeasa, which is also based in Spain, was Desigual’s first big account, and its scope and visibility have really helped expand the brand’s global presence. “In a year and a half we’ve had over 55 listings worldwide in travel retail,” says Pérez. “We’ll finish the year with 60. We have stores in Italy, France, Spain, Germany, Portugal, Amsterdam, Turkey, Prague, Brussels, Miami, JFK, Houston, Lima, Buenos Aires, Vancouver, Dallas and several other locations.”

BY

HIBAH NOOR

In Argentina, the travel retail market has afforded Desigual the opportunity to open at Argentina’s Ezeiza International Airport— where a 40-square-meter corner with Dufry will open in August—even before it goes into the domestic market. And also with Dufry, Desigual recently opened a multi-brand corner with other accessory brands in Santo Domingo’s Las Américas International Airport. Inflight requires tailor-made products, Pérez says. He points to the specially developed Travel Wallet (approx. US$69), which is designed to carry frequent flyer cards, passport, currency, insurance documents and other travel necessities. “This is your flight mate. We’re already listed in Alitalia, Iberia and Scandinavian Airlines, and very soon we’ll be on all major Americas carriers like Delta, Air Canada and American Airlines.” Asian carriers are interested too. “We’ve been told we’re outperforming our competition,” Pérez says, “and we’re planning on

“In a year and a half we’ve had over 55 listings worldwide in travel retail. We’ll finish the year with 60.”

Sergi Tomàs Pérez, Travel Retail Director, Desigual

Desigual’s Travel Wallet

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In the Americas domestic channel Desigual has 12 flagship stores in New York, Miami, Los Angeles, San Francisco and Las Vegas. The company is working with department stores like Macy’s, Neiman Marcus and Nordstrom, and has over 1,000 points of sale. The domestic Latin American footprint is strongest in Mexico (through Palacio) and Chile (through Felabella). There are franchise stores in Colombia, Panama and Venezuela. Development in Brazil and Argentina is on the drawing board.

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

doubling our sales this year. The main reason for our success is that we offer a product category that isn’t present in travel retail worldwide. We’re focusing our offer on fashion for women; until now textiles was mainly a men’s business.” Women’s fashion items and accessories sell well at airports, Pérez says. For women, Desigual focuses on bags for more than 85% of sales, but it’s not limited to that category. “Dresses, overcoats at US$245, t-shirts at US$74-$80, skirts and pullovers… we cover all our offers. But we don’t offer bottom parts because most of our operators don’t have change rooms. “Our secret is that we’re an optimistic and colorful brand. People buy because they fall in c love with what we’re offering.”


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Scorpio

stretches out

For the UK-based travel retail distributor, it’s time to expand in the Americas BY HIBAH NOOR he Americas market offers one of the greatest growth potentials for Scorpio Distributors Ltd., says Sales and Marketing Director Richard Kennedy—in particular Latin America, the US and Canada. Asia, particularly China, is also a market with great prospects, he adds. Established in the UK in 1992, the company now supplies a wide range of leading brands in the fragrances, cosmetics, watches, jewelry, accessories, and travel goods categories. While the head office is still located in England, near Gatwick Airport, Scorpio also has regional offices/distribution centers in Dubai and Hong Kong. The Americas represents a logical growth target for the company at this stage in its development, and the first steps have been taken. “This is a growing market for us,” Kennedy says. “We’re very well established inflight, but we’re expanding our travel retail business and we believe there’s a huge potential for our portfolio. So much so that we recently appointed Mark Mariani as Head of Sales and Marketing for the Americas based in Miami, and we have plans to open a distribution hub in the region, either in Miami or Panama.” Scorpio works closely with airline and retail partners on product selection, since they ultimately decide what’s going to get listed. This

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is especially true with the airlines, Kennedy says—“we can only recommend.” Kennedy and his colleagues constantly monitor trends, keeping tabs on what’s going on in the high street around the world to hone their product offering and keep it up to date. “We spend a great deal of time researching potential new products and looking at developments, particularly for example in electrical/electronic items, and wherever possible we’ll work with suppliers to bring out lines that are ahead of the rest.” Product development is a matter of collaborating with brand suppliers to develop ideas based on domestic concepts that are suitable to travel retail, with exclusive models wherever possible, Kennedy says. Scorpio offers a broad cross-section of products, from perfumes and electrical items to soft toys and watches, and Kennedy says that new ideas “come from all directions, including our own experiences when we travel. We’re constantly looking at the offer on the ground and in the air from a consumer’s perspective. What isn’t available that should be? What would we like to be able to buy for ourselves, our family, our friends? It’s an ongoing process.”

New and exclusive For the TFWA WE Cannes trade fair this year, Scorpio will have a lot of new products to show off, including some new brand launches that are exclusive to travel retail. One of these is a new collection of Sturmanskie watches, which includes a replica of the first watch worn in space by cosmonaut Yuri Gagarin in 1961. “Back in the 1960s Sturmanskie watches were the standard issue for Soviet pilots and were not available to the public,” Kennedy says. “They Scorpio Distributors is adding new items to its popular Lip Smackers offering

were chosen because of their military precision, workmanship and reliability. Scorpio is now bringing this amazing brand to travel retail with an exclusive collection of men’s watches, sympathetically designed to replicate the originals—and in particular the Gagarin model.” Also on tap will be a new exclusive collection of Hot Diamonds watches, introduced to follow up on the market success of the jewelry range, and a special inflight range from Vivienne Westwood. This includes three ladies’ and two men’s models with Swiss Movements featuring stainless steel or gold plated case; black, cream or pink dials for women and black or brown dials for men; and black, cream or pink leather straps for women and silver or black leather straps for men. Travel retail prices will be in the region of US$265 to $365, Kennedy says. Scorpio is also introducing watches under the Levi’s brand name, plus new models for Aviator and the classic Swiss brand Jacques de Manoir. On the perfumes and cosmetics side Scorpio also has a good list of debuts this time around. Prominent among these will be the new travel retail distribution that Scorpio took on for an extensive range of Revlon products into the EU, Eastern Europe, CIS, Scandinavia, the Nordic countries and key markets in Africa. The distributor is also adding to its successful Lip Smackers range with a new heart-shaped box of Disney Princesses themed lip balms, Kennedy says. There are two tins available, one containing Ariel, Cinderella and Belle lip balms, the other containing Snow White, Sleeping Beauty and Princess Jasmine. Retailing at around £6.50 (US$10) the tins are conceived as a gift item for girls of any age. Also new is a heart shaped tin of Coca-Cola lip balms, aimed at festive and holiday seasons.


Special inflight watch range by designer Vivienne Westwood

The venom solution The Skin Doctors skincare range has also been enjoying market success, Kennedy says, and this year a new line called Vipertox is being added. Kennedy describes it as “a kind of botox in a jar!” Vipertox contains synthetically produced snake venom which freezes the muscles and helps to reduce lines, even ones that are fairly deep. The product’s effect is instantaneous, and the price is around half of what is charged for other similar products on the market, Kennedy says. “Synthetic snake venom is very much in vogue at the moment, so we’re confident this item will be a top seller.” Vipertox is not one of Scorpio’s travel retail exclusives. Kennedy also tells us that a “revolutionary” The Skin Doctors skincare range is introducing a new line called Vipertox which helps reduce lines

“We’re very well established inflight, but we’re expanding our travel retail business and we believe there’s a huge potential for our portfolio. So much so that we recently appointed Mark Mariani as Head of Sales and Marketing for the Americas based in Miami, and we have plans to open a distribution hub in the region, either in Miami or Panama.” Richard Kennedy, Sales and Marketing Director, Scorpio Distributors Ltd. new travel product from SKROSS is also going to be introduced, but he preferred not to discuss details, saying that more specific information would be made available in due course. Kennedy says that the main difference that sets Scorpio’s marketing approach apart is probably the fact that while the distributor does support the trade with advertising and sponsorship through the media, conferences and other sectors, its main marketing focus is directly to the consumer via inflight advertising, airport merchandising and promotion. “We also invest quite heavily in our marketing direct to the customer through high-quality product brochures, customer events, incentive schemes for inflight crew, etc.,” Kennedy says. “For example, we’ve recently run a promotion with Emirates for all their cabin crew called ‘The Big Idea.’ A campaign was started, inviting all crew to come up with product ideas for an item that could be sold inflight. The winner would receive US$5,000, the runner-up US$2,500, and each of the eight finalists would receive gifts from Scorpio, as we had spon-

sored the whole initiative. The winning entry will also be produced by Scorpio and sold on board Emirates. The winner was a jewelry item offering all the colors of the rainbow in crystals. It was excellent. It was a great success and now we’re hoping to do this every year.” As for Scorpio’s strategy to drive sales, Kennedy said that this information was confidential to the company and couldn’t be discussed. He did say, however, that duty free promotions are definitely an important part of the business. The most successful promotion Scorpio has run this year, Kennedy says, was a pop-up shop in Lisbon through the Lojas Francas/Nuance partnership. This was a first in Europe for Scorpio, and Kennedy describes it as a great success—the distributor’s most successful promotion involving our Time Design brand so far in 2012. “We’re constantly looking at different strategies for duty free promotions, including gift with purchase, purchase with purchase and money-off promotions, plus merchandising c tools, popup shops, etc.”

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

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Furla

Furla’s spring/summer 2013 collection will see bags from the Piper range in new shades, papaya and ocean

Bags from Furla’s bestselling Candy Collection in lime and papaya, new for 2013

Furla bags new sales, markets Italian leather brand maintains the pace with new sales locations, while continuing to develop its portfolio BY MELISSA SILVA o far 2012 has been very kind to renowned Italian leather goods company Furla, and the company says 2013 doesn’t look to be much different. With sales up 60% compared with the same period last year, travel retail is growing swiftly for the brand, which now boasts 106 doors, up from 24 in 2010, and expects to reach 140 in 2013. Travel retail now represents 8% of Furla’s total business and it continues to grow. Last year the Americas represented 8% of Furla’s global business with an excellent first year result compared with 2011, with sales for the brand up 34% through domestic doors. Early summer saw the opening of the first of several Americas locations scheduled for this year, including a 15-square-meter shop in shop with The Nuance Group at Las Vegas McCarran International Airport’s new Terminal 3. “The Las Vegas outlet sets the scene for Furla’s

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“We see huge potential for Furla within the Americas, especially as retailers like The Nuance Group and DFASS increasingly see the opportunities for premium fashion brands in the region,” Munday tells Americas Duty Free. Although Furla’s bestsellers in the Americas are the Candy, Piper, Divide it and Tribe ranges, Munday doesn’t feel that trends in the Americas necessarily differ from global trends, as consumers in all regions are essentially searching for functionality, good styling and excellent value for money. “Women all over the world and of all ages buy Furla,” says Munday. “We have lines within our collections that appeal to everyone from the fun-loving young woman on holiday to the sophisticated businesswoman looking for practical travel bags. Within travel retail we use the global collection for all regions but take into account some local preferences for sizes, colors, materials etc.”

“We see huge potential for Furla within the Americas, especially as retailers like The Nuance Group and DFASS increasingly see the opportunities for premium fashion brands in the region.” Gerry Munday, Head of Travel Retail, Furla travel retail expansion within the Americas,” says Furla’s Head of Travel Retail Gerry Munday. Furla also opened a 12-square-meter shop in shop with Sense Duty Free at its Downtown Galleria in Santo Domingo, Dominican Republic this summer, and a generic space with Aer Rianta at Montreal Airport in Canada. A 10square-meter-space is also confirmed to open with DFASS at Dallas Fort Worth. 98

In order to incorporate local preferences into the brand’s design, Furla has adopted a unique approach to materials and production methods, which results in shapes and colors that aren’t found from other brands. The “Furla and I” bag, which is reversible and can change shape—and is one of the brand’s most successful in travel retail—is one example of this approach. “The spring/summer 2013 collection is

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

typical of the brand’s innovation, particularly in its use of combined materials such as leather and denim, rubber and straw, leather and printed fabric,” explains Munday. “Iconic shapes also create a difference for Furla, such as the Dome shaped bag.” Furla will show its spring/summer 2013 collection at the TFWA World Exhibition. “The inspiration for the collection comes from light and nature,” explains Munday. “The way that light shines through objects, through water, through leaves and petals, creating outlines and shadows, muted colors, natural graphic patterns and shapes. The colors of nature are very much the mood, with a high emphasis on the use of green shades, such as olive, lime, pistachio and emerald, along with other naturals, plus white and off-white shades such as vanilla and marble.” Also in the works is a new leopard print juxtaposed with colors including shades of papaya, the ocean, turquoise and fluorescents. The collection will introduce new seasonal lines, carry-over lines, a special evening bag project and the expansion and reinvention of the successful Candy Collection, which will see new color shades and shapes. “With Candy Special Editions and a wider range of accessories including shoes, a true Candy Lifestyle is being built,” says Munday. Typical travel retail prices are marked at €98–€320 (US$123-$402). The Furla and I bag will also make a reappearance, this time in new seasonal colors and different materials, such as denim, as well as the Zebra version from autumn/winter 2012, which will also be reinvented with new colors. Typical travel retail prices are marked at €165–€250 (US$207-$314). New additions such as Olimpia, Venus, Penelope and Sonia and restyled versions of Gemini and Diamante are also to be expected, along with Furla’s exclusive inflight collection launched in May at TFWA Asia Pacific. Munday anticipates continued growth in 2013 in the Middle East and Asia, as both c regions are presently performing well.


Bag News Dror for Tumi, developed by award-winning designer Dror Benshetrit

Tumi to triple store space, expand beyond travel After performing well this year, premium lifestyle, accessories and travel brand Tumi is looking to expand internationally and broaden its horizons by venturing beyond travel-related products. “We delivered strong financial performance in the second quarter of 2012 and see continued momentum in the travel retail sector,” says Jerome Griffith, Tumi President and CEO. “As an iconic global premium lifestyle brand, we have the opportunity to triple our store base globally and broaden our product offering beyond travel-related merchandise. We are also focused on expanding into international markets where we are achieving exceptional growth despite difficult market conditions.” Here are a few notables from Tumi’s fall

2012 collection. Dror for Tumi, a continuative collection launched in spring 2012 and developed by award-winning designer Dror Benshetrit, offers hardside cases, soft travel and business bags. The International Expandable Carry-On, the first-ever expandable zipperless hardside case, offers two wheels and allows for three different size options through a two-stage expansion via a “living hinge.” The hinge makes it possible to adjust the bag’s depth from 9 inches to 14 inches, increasing its overall capacity by 45%. Dror also offers a versatile backpack that can shift to a tote or briefcase by adjusting the straps to carry by hand, on the back or over the shoulder. A briefcase offers two bags in one—a workday medium capacity

MCM puts an accent on sunshine Mode Creation Munich (MCM Products AF) will showcase its spring/summer 2013 collection at TFWA World Exhibition (Riviera Village RC4). Exploring the concept of “Sunshine Nomad,” the collection offers pieces in an array of materials, from printed and embossed leather to classic Visetos materials, in hues of calypso coral, blue danube, metallic gold, freesia, and Kelly green. Made from lightweight materials, the collection offers pieces with internal pockets and pouches to support technology accessories, and provides personal security with additional internal buckles and zips. MCM is also revisiting “Very MCM,” the original cruise line from 1986, which will be available in four distinct materials: the leather line, the perforated leather line, the light canvas imprinted line with large Very MCM The medium-sized satchel from MCM’s signature line, Little Veronika Visteos, featuring a Bavarian inspired pattern

bag slims down to a sleek case suitable for a slim laptop. The travel kit, when opened, can be packed flat or hung from a fixture. When closed, it takes on a more traditional shape that fits easily in packing cases and sits neatly on vanities. The Boulevard collection offers the classic tote— a key item for fall 2012. Available in both magazine and classic styles, this bag can be worn over the shoulder or carried by hand. The classic silhouette will come in an array of solid colors including peacock, poppy patent, black and a two-toned cordovan/chianti. For the holiday season, totes, tech accessories and accessories such as a jewelry roll and wristlet are offered in a rich red or warm honey patent and poppy patent leather material.

The stark backpack, part of MCM’s Stark series

and ship emblems, and the new Visetos line, which has backpack, cross-shoulder and ipad cases that can be attached to the matching trolley. Armour is MCM’s new luxury line, pairing the python print Visetos with leather trim embellished with studs of different sizes. Armour is available as a drawstring, backpack, one size hook belts and bracelets. For the first time, The Stark series showcases the complete collection. Stark is created with the vividly colored Visetos series, and is composed of on-the-go items including trolley, big shoulder bag, travel pouch, backpacks and messenger. Other carry-over ranges include signature lines Nuovo L, Ivana Patent, First Lady, First Lady Croco and Little Veronika Visetos, the latter featuring a Bavarian inspired pattern to accentuate the season’s colorful theme. www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

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Maui Jim

A flair for glare

“Mavericks” in gloss black (left) and gold (right) offer glare protection made possible by Maui Jim’s PolarizedPlus lens technology

A focus on polarized technologies has brought Maui Jim stand-alone status in the sunglasses category BY

MELISSA SILVA

ith a reputation for producing high-quality polarized lenses— founded on its “PolarizedPlus” lens—Maui Jim focuses on meeting consumer demand on a global scale. “Bestsellers tend to be bestsellers globally,” says Travel Retail Director Giles Marks. “Our top 20 selling models show little variance worldwide. We’re a sunglasses lens company, not a sunglasses frame company. Consumers buying Maui Jim want the best polarized lens in the market—we believe we have what they want.” The market seems to agree, as Maui Jim recently experienced the strongest quarter in the brand’s six-year history in travel retail. This success makes the brand sanguine about prospects for the remainder of 2012. Having two Olympic sailing ambassadors for the brand win gold at the 2012 Olympic Games this summer has undoubtedly contributed to Maui Jim’s success as well. The Australian sailing team, Mathew Belcher and Malcolm Page, won gold in the men’s 470 race while wearing Maui Jim’s “Canoes” sunglasses. Canoes lenses use Maui Evolution technology that fuses the optical crispness of SuperThin glass with the durability of polycarbonate lenses. Styles such as Canoes along with many others have allowed the brand to achieve broad recognition, which explains why many of the styles displayed globally are a selection of its bestsellers. “Buyers are looking for innovative models, appealing to both males and

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females with a strong sell-through performance,” says Marks. In addition to innovation, Marks feels retail buyer trends in the sunglasses category revolve around one simple fact—the need for sunglasses that offer effective sun protection. “More and more consumers are becoming better educated about sun protection, especially from glare,” Marks tells Americas Duty Free. “Very few brands carry polarized products, and of course, Maui Jim is all polarized. Within the sunglasses category, the fastest-growing segment is not sport or fashion, it’s polarized. That’s not a trend—that’s a fact.” The market pull of polarized sunglasses accounts for the way Maui Jim designs new styles such as “Ginger,” which was released in August. Ginger is a midsize round frame with three lens color options for different light conditions, all made with SuperThin(ST) glass. Ginger lenses use up to nine layers of proprietary PolarizedPlus2 lens technology to block 100% of UV rays and 99.9% of glare. Specializing in polarized products has conferred on Maui Jim a stand-alone status that gives it the advantage of being able to offer a balanced collection at different price points for both genders.

Looking forward, the brand plans to stick to the fundamentals, creating brand visibility, servicing customers, training sales associates and introducing products that appeal to both men and women. These are the factors that Marks believes have brought Maui Jim success since it entered travel retail in 2006. But aside from the fundamentals, Marks says that it’s really market and customer opinion that enable Maui Jim to promote its products most effectively, even with other media options available. “Without getting into specifics, it would be safe to say that the principal drive promoting our product has been word of mouth—testimonials from both the marketplace and from consumers wearing and enjoying Maui Jim for years,” explains Marks. Although testimonials have served the company well, Maui Jim plans to continue to promote the brand in the select media channels that it feels are best positioned to support its unique culture and image. Looking ahead to 2013, Marks feels there are both challenges and opportunities in all regions, but that statistically, the Asia-Pacific region has demonstrated remarkable growth potential. Between now and the end of the year, Maui Jim plans to launch over 10 new models, many of which will be launched during TFWA World c Exhibition in Cannes this October.

“Ginger” in charcoal with neutral grey lenses and in chocolate with HCL bronze lenses use PolarizedPlus2 lens technology for premium eye protection

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THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012


Sunglass News Tommy Hilfiger

BY

MELISSA SILVA

Tommy Hilfiger’s Fall/Winter 2012 collection offers a small-sized model for women, featuring an alternate color combination to the classic red and blue

builds on silver year success The Tommy Hilfiger Group has introduced an updated take on the brand’s classic TH 1985 sunglasses and optical frame model. This collection of men’s, women’s and children’s sunglasses and optical frames features styles in combinations of red and blue that reflect Tommy Hilfiger’s iconic color palette and the brand’s classic “American cool” style. Manufactured and distributed by

Tommy Hilfiger’s large-sized model for men in red and blue color combination

Safilo Group, the collection draws inspiration from the iconic TH 1985 model created in 2010 to celebrate Tommy Hilfiger’s 25th Anniversary. Featuring an 80s-inspired shape and temples bearing the Hilfiger logo, the square-shaped model offers “a preppy, youthful look and timeless style.” Also part of the collection is “TH 1985/B/S,” a large-size model designed for men; “TH 1985/S/S,” a small-sized model crafted for women; and “TH 1073/S,” the children’s version for eight- to 12-year-olds.

Marchon finds

profitable pockets With sales approaching last year’s benchmarks, eyewear and sunwear manufacturer and distributor Marchon Eyewear is finding what Lloyd Gittler, Vice President of Retail, calls “pockets of opportunity” all over the world. Understanding consumer demand is a key factor in developing these pockets, and it’s a concept Gittler pays a lot of attention to. “Consumers are looking for price and value,” he says. “They appreciate brands and they want function, for example, polarization, comfort, etc.” In order to meet customer expectations and set trends, Marchon relies on its sector expertise, resources and solid brand recognition. “We are experts in our industry and we deliver fashion for a living,” Gittler explains. “We have amazing resources including design/product development/licensor and retail partnerships, plus we have long term success and credibility.” As for bestsellers in the Americas, Gittler

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ck’s “CKJ720S,”a glamorous rectangular silhouette crafted in luminous plastic

notes Michael Kors, NIKE, ck, Salvatore Ferragamo and Lacoste as some of the company’s top performing collections. This year, Marchon launched Nine West, Salvatore Ferragamo, Valentino and Calvin Klein Jeans (sunwear only). The Calvin Klein Jeans Eyewear fall 2012 collection for men and women features modern interpretations of vintage silhouettes, from classic aviators to retro rounds, crafted in translucent zyl and slender metal. Styles include

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

“CKJ103S,” part of the Wire Temple range—an aviator style—featuring rounded frames with strong colors along the brows and applied to brow bars. The style is available in black with solid smoke lens, brown with G15 lens, lime with silver flash lens, and navy with navy flash lens. In the fall, just in time for the TFWA WE Exhibition in Cannes, Marchon is set to have a limited launch of Chloe.

ck’s “CKJ103S,” an aviator style featuring rounded frames in brown with G15 lens


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Sunglass News

Tom Ford’s “Colette” (250), which features a metal frame with a crisscross front and a softly squared shape

For Marcolin, attention to trends sets the stage Marcolin, a fairly new entrant to the duty free/travel retail category in the Americas, has made tremendous strides since the appointment of Marco Lares in 2008 as the company’s Manager for the Americas. With sales up this year as a result of launching various new collections—including Diesel and Tod’s, and new fragrance launches for Tom Ford and Roberto Cavalli—Marcolin says that its brand recognition is finding a wider audience. Marcolin has experienced continued positive growth in 2012 with sales in Latin America and inflight on international flights from US airports. The company has also made a point of attending all the major trade shows, providing sales training and seeking out strategic duty free partnerships—all factors in its market success. The company is also working on providing displays for some of its collections, in order to increase its impact and presence in retail locations. This decision was made in response to changing trends in retailer buying, specifically the fact that retailers have less space when it comes to displaying sunglasses. “Retailers have less space to display sunglasses and are looking for the top brands to attract buyers,” says Marco Lares, Marcolin USA Travel Retail/Duty Free Sales Manager. “Because of this, retailers have reduced the number of collections on display and consider additional brands only when a separate display or tower is offered with it.” Marcolin believes it will be able to take advantage of these changes thanks to its strong and diverse portfolio, which includes Montblanc, Kenneth Cole, DSquared and Timberland in addition to those already mentioned. As for trends on the customer front, Lares has noticed a shift in the rationale behind purchasing sunglasses, with customers increasingly making a purchase based on the brand rather than the level of protection.

“The main reason for choosing sunglasses should be for protection of the eyes; however, more and more people choose sunglasses because of the brand name recognition, shapes, design and overall comfort,” says Lares. Marcolin works closely with licensors to understand what Lares calls “the DNA of each brand,” and turns suggestions into designs. “After that, each new style we create goes through a very extensive process of design which takes into account shapes, trends, colors and sizes,” Lares says. For example, there’s strong demand for sunglasses that offer fashion, design and technology in one package, a demand Marcolin has answered by launching several styles with polarized lenses and other innovations. During this year’s TFWA World Exhibition, Marcolin will be launching Tom Ford’s autumn/winter 2012 collection, which presents seven new sunglasses frames and 21 new optical frames. The collection features an emphasis on women’s frames, feminine colors and the launch of a special edition optical collection. Women’s models in the collection include “Colette” (250), featuring a metal frame with a crisscross front and a softly squared shape, and “Evelyn” (251), the cat-eye version. For men, the collection offers two new iterations of the aviator sunglasses frame: the rounded “Matteo” (254) frame and the square-shaped “John” (255) frame.

“Matteo” (254), a rounded iteration of the aviator sunglass frame

Silhouette’s sunny forecast for 2013 Silhouette has created a special easy-to-wear collection offering new full-rim styles and an extension of the aviator series called Sun 2013. The collection features an array of models including: “Melody” (8139), which lends from the style of the 70s, featuring big lenses; “Class” (8647), a masculine design that is available in three colors and with polarized sun protection lenses; and “Center Court” (8129, 8652, 4059), featuring high-tech titanium and the SPX polymer compound and is available in rimless or full-frame models as well as prescription clip-ins for eyeglasses. “Silhouette has expanded its range with nylon variants and full frame SPX shades proving that glasses with frames can be very light, offering maximum wearing comfort,” says Silhouette Designer Gerhard Fuchs about the new Silhouette full frame sunglasses. “The expressive full frame glasses lend the style-conscious wearer an extraordinarily fashionable touch.” Designer Martin Preuer-Lackner elaborates on the minimalistic-sporty aspect of the collection: “Minimalism is foremost in my

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THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

Melody and Class (top), both from Silhouette’s new easy-to-wear collection called Sun 2013

designs. I tried to keep the line as clear and clean as possible with the new Center Court models. The classy appearance of this model is enhanced by a fine balance of SPX and titanium.


in t e r n at io n a l asso o f airp c iat io n o rt d u t y fr ee sto re s

2013

Duty Free S how of t he

Americ as

April 7 -10, 2013 O rl an d o Worl d Cente Or lando,

rM

Florida arriott , USA

Pack your bags to join us for the most important week for your business. “I’ve been attending for over 25 years and it always pays for me to be present.” “Exceeded all expectations, we will be back in 2013 for sure.” “Very impressed with the show in terms of the decision makers that attend this event.” - 2012 Attendees

The Duty Free Show of the Americas is THE place to do business, with all primary show events taking place in one venue. Visit www.iaadfs.org/dutyfreeshow for more information and registration, or call +1-202-367-1184 for assistance. The Duty Free Show of the Americas is hosted by the International Association of Airport Duty Free Stores, representing the duty free industry for more than 45 years.


South Point Gallery’s CEO Alejo Lopez de Armentia and General Sales and Marketing Manager Paula Cristina Martinez

South Point Gallery

This year, SPG’s main goal is to expand its presence in the Americas, including the Caribbean and US markets for TAG Heuer

Made in the shade(s)

South Point Gallery opens Americas travel retail markets with luxury sunglasses EO Alejo Lopez de Armentia and General Sales and Marketing Manager Paula Cristina Martinez are the mother-and-son team behind luxury goods distributor South Point Gallery (SPG). The company was founded only a year ago to fill a gap in travel retail distribution for luxury brands, specifically in the eyewear category. SPG already boasts sunglasses from the iconic luxury brand TAG Heuer as its major line. De Armentia says the key to the company’s strategy is to market the product as a luxury accessory more than as sunglasses. “It’s one thing to sell prescription eyewear to an optometrist,” de Armentia says. “When you go to these stores you’ll see the back wall full of frames. There’s no ‘luxury’ sale there. But travel retail is like a window to the world for the brand. The brand has to be displayed the right way.” SPG’s approach differs from that of traditional eyewear distributors, for whom optical stores are the core business. SPG has been careful to select brands that won’t cannibalize each other, de Armentia says, preferring to offer an assortment that has big growth possibilities. “We want brands that are fresh, with a lot of potential.” The present lineup includes eyewear from TAG Heuer, Fred, Naf Naf, Salomon, Bolle and Clic, bijou brands like Antica Murrina, Thomas Sabo and Phantasya, and luxury pens from Omas. SPG also recently concluded a deal with luxury sunglasses manufacturer Marcolin to distribute Marcolin’s Swarovski and DSquared collections in Latin America. One of the attractions for Marcolin, which decided

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it was time to hand its growing Latin America travel retail distribution to the pros, was Martinez’s deep travel retail experience and contact network. The connection with TAG Heuer, SPG’s main brand, is especially strong. Martinez served as the brand’s Area Sales Manager for Latin America for 25 years. One of SPG’s main growth drivers in the early days was the need to have a full company structure behind the distribution of TAG Heuer eyewear. More recently SPG has launched the brand aboard Norwegian Cruise Lines, and has taken over official travel retail distribution in the US. In designing sunglasses lines such as “Racer,” TAG Heuer very consciously ties in with its iconic watches. The Racer series in particular derives inspiration from the brand’s “Link” series of sports watches and chronographs. The cross-category association certainly doesn’t hurt SPG’s work for the brand, de Armentia says. “There’s a lot of synergy between the watch brand and us.” Other headliners include Naf Naf, which retails for around US$120, Fred, Thomas Sabo and the Omas luxury pen line, which is 60% owned by LVMH, and which de Armentia feels has a unique luxury proposition. “Omas

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

BY

HIBAH NOOR

is more of a prestige thing for us—their high quality can match with Montblanc. They do regular pens, and they do special and limited editions—they did this for Lamborghini. The quality is superb.” SPG is still fine tuning the market placement for Omas. Clic is an interesting proposition too. “It’s a lower-end brand, but a cool concept,” Armentia says. “It’s something different. They all come with a prescription.” For 2012, SPG’s main goal is to expand its presence in the Americas, including the Caribbean and US markets for TAG Heuer. “We’re trying to increase the image of the brands,” de Armentia says, “trying to keep the brands on a personalized display. I don’t want to see my brands getting lost on a back wall.” The strategy includes a drive to open all the big accounts like DFA and Dufry America. “And we’ve got the newly formed World Duty Free Group, which used to be Aldeasa in our area. We’re waiting for the renovations in Santiago Airport and we’ll start there too. SPG has recently started shipping its products to major retailer Dufry Brazil and Diamonds International in Cozumel, Mexico. “Our main goal is not just to open doors, but to make sure that those doors stay open.” c In designing sunglasses lines such as “Racer,” TAG Heuer very consciously ties in with its iconic watches


Honora

“A fresh new look at pearls” Honora has ambitious plans for its freshwater pearl jewelry

BY

HIBAH NOOR

earl jewelry purveyor Honora is devoting some time to working out its travel retail strategy for the Americas and elsewhere. The largest importer of freshwater pearls in the US, and a leader in developing the category since freshwater pearls hit the market two decades ago, Honora wants to develop what Danielle Casella, General Manager, National and Travel Accounts, describes as a giftable open-sale program. “We’ll be putting together different sets that are US$99 and under,” Casella says. “We’ll also be working just in cooperating some traditional standard collection items. Pricing will range from US$50 to $99. Our design team focuses heavily on producing dozens of SKUs within this price range.” Honora uses all genuine stones and metals. The brand utilizes the top 3% of the entire Chinese pearl harvest. Given that there’s no grading system for freshwater pearls as there is for diamonds, Honora has developed its own scale. The three top benchmarks that Casella says separate the Honora pearl from competitors are high luster, cleanliness (no marks, scrapes or crevasses in the surface), bright color and consistency in matching process. The main trend right now, Casella says, is a preference for ‘bling,’ fun and sparkle, incorporating crystal elements. “We were focused a few years ago on a lot of color, and now we’re seeing a resurgence of plain white pearls but with some embellishments. A symbolic bead with crystal is just getting so much attention, so we’re building collections working around this, working with some crystal elements. It’s like taking a classic look and giving pearls a fashion twist.” Honora’s collections offer pearl designs with fashion accents, utilizing bright colors as well as classic white pearl motifs, incorporating various semiprecious gemstones, crystal and sterling silver elements. Honora hasn’t started marketing to the South American travel retail market, but is already developing its profile through appearances in inflight magazines and at airport locations. Casella believes that growing these two areas in travel retail in the Americas will help position the brand for growth opportunities worldwide. “The cruise business is also very strong and we’re expanding the assortment as well as expanding out to new ships,” Casella says. “We began partnering with cruise line companies such as Harding Brothers and Princess Cruises over the last few years, and more partnership opportunities are in the works.”

Honora’s collections offer pearl designs with fashionable accents

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The product has been very successful. Casella says that the assortment was adapted slightly from the usual airport format in order to be a better fit for cruise lines. “We see the airport locations as quick— passengers coming in and out, needing something to keep, or to gift. With the cruise lines you have your audience for a longer time. We’re working with the cruise lines to really build product knowledge with the sales associates, giving them the Honora experience, helping them understand about the brand, piquing their interest.” Honora’s price points of US$50-$300 seem to be gelling well with the brand’s matrix of customers in inflight, instore and onboard settings. The US$50-$99 multiplepiece (earrings, bracelets, etc.) boxed set format is doing especially well. Casella says that pendants on sterling silver chains are also very strong, as are products up to the US$129 price point. Plans are to continue to expand distribution and open new markets within the current distribution. Next year Honora will focus on launching a new program and expanding especially aggressively in Latin America, as well as the Americas generally. But in the end the market will determine the course Honora takes, and growing customer interest and its own dedication to quality are generating a lot of optimism. “The fun thing about Honora is we’re affordable fashion jewelry,” Casella says. “We try to stay on trend, and I can’t say enough about the quality levels. We’re so new it’s hard to say. We don’t know what tomorrow will c bring… but the sky’s the limit.”

Special pre-made sets available in duty free and travel retail


Supplier News Don Bas offers a range of styles for businessmen and entrepreneurs who enjoy international travel

Anchors aweigh as

Don Bas steers into travel retail A new addition to the duty free market, new luxury apparel brand Don Bas Collection is now hitting the waves aboard major cruiselines, with plans for more shipboard debuts on the horizon. Already maintaining a presence on land across the US with stores in Florida, New York and California to name a few, Don Bas boarded Seabourn’s Quest Atlantis cruise ship in July (where it was introduced by UKbased operator Harding Brothers) and Crystal Serenity in September, and plans are in the works for many more voyages in the coming months. “My background is from duty free,” explains Rita Mendez, Global Sales and Business Development, Don Bas Collection, when asked about the company’s recent entrance into the duty free and travel retail market. “I worked many years [at] Bijoux Terner as Sales Executive for all of the Middle East, Asia, and Australia. I attended all duty free trade shows as well. I set up all the stores throughout all those countries and regions for many years.” Although currently the brand is present only in stores and on major cruiselines, Mendez wants to see it expand into duty free stores throughout airports, in both multi-brand shops and in its own Don Bas store in the near future. As for regional distribution, Don Bas has already entered the Middle East, with the Gulf being Mendez’s passion and main focus along with Asia. “The US is my backyard, and it’s also where I want to

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have Don Bas, so this is a difficult question to answer. I want to be in all three markets,” Mendez says, when asked in which region she plans to start distribution. With an array of styles geared towards the businessman and entrepreneur who enjoys traveling internationally from the Americas to Europe, Don Bas is positioned to do well in duty free and travel retail. Across the brand’s 22 collections, bestsellers include the “Rita,” the brand’s number one shirt, named after Mendez herself who also created the design, and the “Cypress,” with an abstract design. The “Omni” and the “Cutler,” which feature a double cuff—something Mendez says no one else currently offers—also perform quite well from a sales perspective. Other designs include “Bellagio,” “Mirage” and “Riviera,” names that evoke a sense of travel. “Nicole Diaz, my friend and partner, is an amazing designer with her sense of fashion, style, originality and elegance, which all combined make our shirts stunning,” says Mendez. In addition to Mendez and Diaz, Sebastian Bastian completes the trio behind Don Bas designs. “We buy Italian fabric, manufacture in Turkey and only buy the best fabrics and use the best factory,” Mendez says. On the horizon for new styles, Mendez says consumers should watch for polos, flag polos and v-necks, and that two new designs will be added to the collection every month. In addition to an array of styles, Don Bas carries a large range of sizes, from small to 5 extra large, “so every man can have a chance at fashion.” Mendez hopes to attend the TFWA WE Cannes show in October, as well as the trade shows in Singapore and Fort Lauderdale. Having recently exhibited at the international trade show Who’s Next Paris 2012, where Don Bas was well received, Mendez is optimistic about the brand’s future as it enters new markets around the world.


Bouton Jewellery well primed for Cannes premiere

Buckley London is looking forward to the launch of its trademark Bouton designer jewelry brand into the Americas duty free and travel retail market at TFWA WE in Cannes, says Bouton’s Brand Director Sam McDermid. “The reaction we’ve had to the brand in the UK after launching at IJL has been quite overwhelming,” McDermid says. “Retailers and consumers alike can't get over how much Bouton looks like fine jewelry. Even the most experienced eyes have been caught out!” While the debut takes place at TFWA WE (booth H4, red village) and will be followed by a late-fall counter release in selected locations, McDermid reports that Bouton has already received positive feedback from travel retailers in Asia, the Middle East, Europe and the Americas who have had a chance to preview the brand. McDermid notes that the intention of Buckley’s Founder Adrian Buckley in founding Bouton was to create “a beautiful brand of classic, wearable jewelry with a contemporary twist that the lady wearing Bouton will enjoy for years.” The 200-piece Bouton collection retails for US$70-$750, ranging from the classic Bouton stud earrings to a 600-jewel encrusted collar. In addition to its jewelry collection, Bouton has also developed customized display cabinets that it offers to retailers free of charge. Bouton is looking to Miami-based International Brand Builders (IBBI) to help develop and expand its Americas distribution, McDermid says. “IBBI Owner Katherine Patch Sleipnes has more than 20 years experience in the Americas travel retail and export market, which allows her to map out clear strategies for each brand in our portfolio, including Buckley London, Attwood & Sawyer

Bouton Jewellery is looking to International Brand Builders to help develop and expand its Americas distribution

and Bouton, depending on their go to market strategy,” she says. The campaign will focus on retailers who can showcase the brand and provide strong in-store support. “Apart from travel retail doors, IBBI is looking for domestic market retailers and distributors for the Caribbean, Latin America and Canada,” McDermid says. “We’ll be launching in domestic and duty free doors throughout the next 12 months.” Bouton’s PR and marketing focus will be on the Bouton Button with micro pave detail. “This is our USP, and our ambition is to make the button iconic,” McDermid says. Button styles include a tennis bracelet, pendant and earring studs, in addition to which all of Bouton’s pendants have the button charm at the end of the two-inch extender chain. The rings displayed on Bouton’s ring stand have been very well received, McDermid says, adding that their look is extremely well complemented by the LED-lit, chandelierstyle cabinet. All of Bouton’s rings come in eight ring sizes, guaranteeing a fit for every size finger. McDermid says that the Bouton stacker rings outmatch many others now on the market, and that the micro pave detail on the shoulders enhances their appearance when they’re stacked together. In addition to the new collection, Bouton will also be showcasing its visuals and display units at its Cannes booth.

Festina dials it up in travel retail

Inspired by cycling, this chronograph timepiece from the Chrono Bike collection is available in a stainless steel case and is water resistant up to 10ATM

Barcelona-based watch company Festina has been performing well in inflight sales programs across the Americas for over a decade now, and says that this long-term success has enabled it to position itself as a standard in travel retail while increasing its brand awareness in North and South American domestic markets. Over the next two years, the company plans to expand into other channels like airport retail and cruise lines. “Festina has had growth over the past three years in these two retail channels in other geographical areas, mainly due to the value for money category in which the brand operates,” explains Jason Newman, Worldwide Director of Travel Retail. Sales have been growing in domestic markets such as Mexico and Chile and the brand’s success is mirrored in duty free sales with partners such as Aldeasa, Newman says. This year

in North America, Festina began working with Duty Free Americas Inc., a partnership Newman expects will prove to be profitable and bring growth opportunities. Presently, Festina’s Chrono Bike and Ceramic collections are continuing to perform well in travel retail. Released earlier this year, the Chrono Bike collection embodies the brand’s dedication to cycling, and reflects Festina’s status as Official Timer of some of the biggest cycling events in the world, such as the Tour de France, Il Giro d’Italia and La Vuelta a España. The collection features 16 chronograph models for men with a sporty design matched with high-technology workings. Eight models are fitted with solid stainless steel bracelets and eight with black straps. The 48.50mm large, round, robust case includes many design features with cycling elements, and the sporty colored dials are characteristic of the collection.

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

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Supplier News

20 years for Touche Éclat This year Yves Saint Laurent (YSL) is celebrating the 20th year of its famous Touche Éclat makeup highlighter pen. Now used by professional makeup artists around the world, Touche Éclat has garnered a “professional” status that YSL says is unmatched by any other beauty product on the market. “More than a concealer or corrector,” YSL says, “the iconic pen in its sleek gold case instantly beautifies the complexion, giving it the spectacular, luminous glow of a star.” It utilizes a special formula based on micro-emitters that create an optical smoothing effect. Touche Éclat can be used day or night and applied on bare skin or over foundation. “Touche Éclat is the one product that is always found in the make-up kits of every beauty addict,” YSL says. One Touche Éclat makeup pen is sold some-

YSL’s Touche Éclat has become a “must-have” since it entered the market 20 years ago

where in the world every ten seconds, according to the company. To celebrate the milestone, YSL staged a number of events throughout the Americas travel retail market. In July in Argentina, for example, YSL store counters were decked out with Touche Éclat visuals. The sales team, dressed in special gold and black uniforms and offered free makeovers to customers. Further events are planned for the remainder of 2012 to reinforce the buzz surrounding the anniversary. In July, that momentum got a big boost from Kate Middleton, Duchess of Cambridge and wife of Prince William, when she revealed to the online magazine RTL.be that she uses Touche Éclat to enhance her complexion and add finishing touches to her makeup.

Nighttime news In April, Biotherm launched the new Aquasource Nuit into the Americas travel retail channel. The product was released at seven Dufry Argentina stores and at Uruguay stores, eight Bernabel stores and one London Supply store. The Dufry Argentina launch was reinforced by a one-month flyer campaign inviting customers to enter a contest to win a three-day trip for two to the famous Iguazu waterfalls. The debut of the “gel-turns-balm” hydrating formula, an outgrowth of the Aquasource moisturizer that Biotherm developed in 1998, was supported by high-impact custom-developed spaces with specially designed counter furniture. From the beginning of 2012, Aquasource Nuit accounted for the majority of Biotherm’s promotional activities in Americas travel retail. The energy seems to have been well placed: the company says that during the promotion period the brand grew faster than the market. The Aquasource franchise has done very well for Biotherm over the years. The company reports that an Aquasource product is sold somewhere in the world every eight seconds. The original Aquasource moisturizer concentrates the equivalent of 5,000 liters of thermal water in a gel-cream texture. Biotherm says that the new Aquasource Nuit, its first night-specific treatment, capitalizes on this success with “a breakthrough in texture for the nighttime skincare sector.” The company says that the introduction of its new product follows a study finding that as the natural evaporation process speeds up at night, skin loses as much as four times more water than it does during the day. At the same time, other studies report that only 35% of women currently use a night-specific treatment. In addition to what Biotherm describes as its breakthrough texture, Aquasource Nuit is formulated with mannose, thermal plankton cellular water and P. Antarctica, a microorganism noted for its water-retention characteristics. The end result: “upon wakening, the skin looks beautiful and more luminous, day after day,” Biotherm says.

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Biotherm introduces Aquasource Nuit with the support of specially designed furniture to entice travelers to test the new product


Ana Mallea

T: (707) 399 2765

E: amallea@jellybelly.com


Nestlé’s philosophy is to offer traveling shoppers exclusive product formats of their favorite global brands

Confectionery News Nestlé is

set to reveal The Perfect Store At this year’s TFWA World Exhibition, Nestlé International Travel Retail (NITR) (Golden Village GO3) will be showcasing its evolving Perfect Store category initiative, demonstrating to visitors how it has been proven to accelerate confectionery category growth and deliver results. The Perfect Store initiative, along with key shopper insights, is also key to the development of Nestlé’s new product program for 2013. The NITR Perfect Store initiative and its four key category drivers provide a solid framework to actively address both levels of footfall and conversion by creating the building blocks for increasing sales. Through understanding the traveler-shopper, in terms of their gifting and self-purchase needs, associated behavior, motivation and emotional triggers to purchase, Perfect Store provides solutions which work. “In Cannes, NITR will be showing delegates an engaging video piece on the emotional challenge versus reward faced by shoppers when buying gifts, and how we have used this insight to better target both the confectionery and non-confectionery shopper, through the Perfect Store three step cycle of insight-action-evaluation,” says Alan Brennan, Customer Marketing Manager, NITR. “Delegates will be able to see first-hand case study results that show how Perfect Store

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has increased category footfall, conversion and basket size along the shopper journey,” continues Brennan. “We believe the combined sequence of material which will be showcased in Cannes is very powerful and demonstrates our innovative and first to market approach. Using shopper insight to accelerate category growth delivers compelling results through Perfect Store—it is a fact!” Based entirely on shopper insights from around the world and more than a decade of understanding travelers, NITR will also be launching its new product concepts for 2013 with a continuing support for the new Nestlé Swiss Premium range as well as high focus on the snacking and sharing sub-category. “Aligned with our Perfect Store vision, each product is primarily a reflection of what consumers are telling us they would want and value, rather than what we want them to buy,” says Devrim Cobek, General Manager, NITR. “New products are developed to further entice, engage and convert an everincreasingly demanding shopper—with a mission to continue growing the category in all its sub-categories.” As always, all product development for key brands such as Nestlé Swiss, Kit Kat and Smarties are developed exclusively for travel retail. “This guarantees that the shopper/traveler will find products within the travel retail environment which he/she will not have seen on the domestic market, either for snacking and sharing along the journey or to purchase as a gift for a loved one, with no comparison to any other product,” continues Frederic Porchet, Marketing Manager, NITR.

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

BY

ZUHAIR KASHMERI

NITR’s Perfect Store initiative provides a solid framework to actively address both levels of footfall and conversion

“NITR’s philosophy is to offer traveling shoppers innovative and exclusive product formats of their favorite global brands, and this we are doing through an expanded range of exclusive offers which meet all emotional purchasing needs,” Porchet continues. “Of course, as per our philosophy, all these new introductions are funneled down from the Perfect Store initiative, based on deep shopper understanding. This is the key for success.” “We have really exciting results and data to report at TFWA World Exhibition,” concludes Brennan. “As confectionery becomes an increasingly important category within the travel retail mix, buyers are urged to come and talk to us in Cannes this year.”


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New Johnnie Walker filled chocolates by Turin enter travel retail through AeroCos International

Confectionery News

A Tuileries stroll with flavored tea

Fauchon of Paris is planning to take attendees on a stroll of the historic Tuileries garden in Paris, via the new Tea Collection it is launching at Cannes to underscore its positioning as “Creator of flavored tea since 1886.” One of the lead teas in this collection, says the company, is Balade aux Tuileries, meaning “a stroll through the Tuileries,” the world famous gardens built in Paris in 1664. Here’s how Fauchon describes Balade aux Tuileries: “Light and refreshing, this white China tea symbolizes the broad, white paths of the Tuileries Gardens in Paris. A bouquet of floral heart notes evokes the rose garden and orangery, followed by a touch of melted sugar, like cotton candy at a fair.” While tea accounts for 14% of Fauchon’s total revenue, the brand is also offering new chocolate recipes: pralines with gift box, and the seasonal collections “Cristal Christmas,” “Chic Chick Easter Collection” and Valentine’s Day. Fauchon successfully launched its savory new gift set “Apéritif Chic” in July. In terms of promotions, in keeping with its luxury positioning, Fauchon will offer for the first time a new range of exclusive gifts with purchase—a hand jewel, a traveling set and a handbag hanger. Recently, Fauchon opened two new gift shop concepts in Paris Roissy Charles de Gaulle at Terminal 2, Gates A and C in March, and Terminal 2 Satellite 4 in June. The shops combine three star product lines: macaroons, chocolate and sweet and savory gourmet gifts. Travel retail accounts for 7% of Fauchon’s total revenue, and reported an increase of 10% this year compared with 2011. Balade aux Tuileries is a white China tea by Fauchon

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Aero-Cos’ trump card: Johnnie Walker Black chocolates Global travel retail distributor Aero-Cos International Ltd. is planning a launch in partnership with Mexico-based Chocolates Turin—a new chocolate filled with one of the best known whiskies in the world, Johnnie Walker Black. “We’re obviously pursuing very aggressively a place within the key duty free operators in Asia, Europe and the Americas,” says Nathan Barbanel, President and CEO of AeroCos. “This is now our lead product even though our other liquor filled confectionery, such as Bailey’s, will continue to be marketed as aggressively.” Chocolates Turin also uses other widely known spirits such as Jose Cuervo, Baileys, Kahlúa and Grand Marnier as fillings.After a soft introduction of Johnnie Walker Black at Singapore earlier this year, Barbanel has his team ready for Cannes. Meetings have already been set up with scores of operators at the trade fair, even though Aero-Cos itself will not be exhibiting. “Johnnie Walker Black is brand new for us and we intend to push it very aggressively,” Barbanel says. The Johnnie Walker brand is distributed by liquor giant Diageo, whose market presence also adds weight to the Aero-Cos push. “Johnnie Walker is Diageo and Diageo is Johnnie Walker,” says Barbanel. He points out that Johnnie Walker is also available in Blue and in Double Blue and Double Black, although these haven’t made it into Chocolates Turin treats just yet.

Alfa Brands gets set to rock In September Alfa Brands began distributing its latest fare from Pez Candy, Inc.—a limited edition of the Pez Kiss Gift Tin Set that it forecasts will be a hit with fans of rock band Kiss. The set, which is numbered with a gold sticker representing its exclusive number in the production series, will include four dispensers, representing the four members of the band, as well as six rolls of candy. The members include The Demon, The Starchild, The Catman and The Spaceman. Alfa is hoping that the success of the rock band, which sold more than 100 million albums worldwide, will translate into sales of its new collection. Success on this front would be an appropriate follow-up on the impact of the special gift box created by Jelly Belly for its cupcake candy dish, which is now listed onboard United Airlines flights for its summer inflight program. It is also now available to all of Alfa Brands’ duty free customers. Also, Alfa Brands has something for dieters—“a unique new product offering from Torie & Howard Organic Hard Candy.” The new candies are made with all organic and natural ingredients, and contain only 12 calories per candy.

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

The candies are offered in tins of four flavors: d'anjou pear & cinnamon; pomegranate & nectarine; blood orange & honey; and pink grapefruit & tupelo honey. In addition to the tins, there’s also a Torie & Howard handbag filled with an assortment of the four flavors. “2012 has been a great year with lots of new developments at Alfa Brands,” says Operations Manager Amy Hildreth. “We are excited about the new members of our team, Bernie McCloskey and Shawna Fallmann. We have launched several new lines and have increased our liquor category.” Alfa introduces a limited edition Pez Kiss Tin Set


The Hershey Company

Hershey’s launches a sweet new merchandising system in time for Cannes Designed for travel retail, the kit-of-parts provides a range of branded fixtures designed exclusively for retailers to use in duty free and travel retail stores BY MELISSA SILVA he Hershey Company has announced its first complete merchandising system for travel retail. Called the kit-of-parts, the new system provides a range of branded fixtures designed exclusively for retailers to use in duty free and travel retail stores. The fixtures can be adapted to fit any store layout and comprise back wall units, point of sale (POS) displays and gondola floor fixtures. The concept was designed to address two key travel retail objectives: create a consistent brand expression across the Hershey’s portfolio and drive sales of Hershey’s products as well as the category as a whole. “The kit-of-parts provides our travel retail customers consistent messaging and branding that will help drive their sales,” says Steve Bentz, General Manager, Hershey World Travel Retail. Hershey’s is focusing significant resources on developing superior consumer and retailer insights, which informed the development of the flexible and scalable kit-of-parts that provides consistency across varying retail formats. “We understand that each of our retail partner’s needs are different, and we offer the kit-of-

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parts fixtures as a whole or customized to meet individual needs,” says Bentz. Gondolas and back wall units are designed to attract shoppers to the confectionery area with proprietary logo, bold color and product imagery of the Hershey’s Kisses and Reese’s brands. The concept delivers a high-impact brand experience and brings the Hershey’s core product family of global, iconic brands to life through use of product illustration, brand logos and color. The kit-of-parts supports the marketing line of the three defining brands in the travel retail portfolio: Kisses is the iconic chocolate treat, Hershey’s is the signature product harnessing pure chocolate, while Reese’s is the perfect combination of peanut butter and chocolate. POS fixtures for brands such as Ice Breakers and Hershey’s chocolate bars will be introduced for use on cash wrap counters. The

A rendering of the gondolas and back wall units for Hershey’s, Kisses and Reese’s brands

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fixtures are designed to showcase branding and drive impulse purchases while taking up minimal counter space. Jolly Rancher candy and Ice Breakers mints and gum have also been given merchandising treatment that highlights the brands in unique ways. The Jolly Rancher floor fixture features the vibrant colors of the Jolly Rancher fruit flavors. The Icebreakers fixture is enhanced with an icy-looking material finish to represent the brands signature flavor crystals. In 2013, the kit-of-parts will also be rolled out for the latest addition to the Hershey’s

POS fixture for Hershey’s chocolate bars for use on cash wrap counters

product portfolio: Brookside, which is an ideal fit for duty free with its range of rich dark chocolate and healthy fruit. At the TFWA World Exhibition in Cannes, October 21 to 26, Hershey’s will be highlighting three core Brookside products—Dark Chocolate Pomegranate, Dark Chocolate Acai with Blueberry and Dark Chocolate Goji with Raspberry. Brookside is already a proven success in Canada and the other global markets where it is available. Hershey’s will highlight details of the kitof-parts merchandising system in Cannes. “We are thrilled to present this alongside the latest travel retail exclusive sharing pouches and nostalgic tins, which we are also launching at the show,” says Bentz. The focus will be on three sharing pouches: Hershey’s snack size assortment, Hershey’s miniatures and Hershey’s Special Dark miniatures pouch. Hersheys World Travel Retail will also introduce an exclusive nostalgic tin collection featuring Hershey’s miniatures, Reese’s miniatures and Extra Creamy Kisses. Marketed as both a gift and collector item, the three tins feature nostalgic original poster designs from the c archives.


Angry Birds is a registered trademark of Rovio Entertainment Ltd. All Rights Reserved. Copyright Š2009-2012 Rovio Entertainment Ltd. All Rights Reserved.

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Electronics Report

Electronics advances

Market knowledge paves the way for innovation based on customer need BY MELISSA SILVA Braun’s new Series 7 Premium beard trimmer

Braun’s Series 7-799cc, the latest addition to the Series 7 family A model from Braun’s new Series 5 shaver lineup

Designed with an edge ne of Braun’s key travel retail market strategies is to understand the need of many young people to own products that look different from those of their parents. Accordingly, the brand has set out to create products with a modern yet playful look, such as its cruZer range of hair and beard stylers and trimmers. “The style of our new Series 5 shaver lineup resembles a modern sports car, emphasizing performance as well as aesthetics and superior quality,” says Klaus Mellin, Sales Agent Travel Retail and Special Markets. “We’re also introducing more and more black household products that look good in modern and stylish kitchens.”

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With shavers and epilators leading the way as bestsellers in the Americas, Braun plans to launch many more products in this category at this year’s TFWA World Exhibition. One of the many products set for launch is the Series 7-799cc. This latest addition to the Series 7 family can be used in the shower and comes with a Clean and Renew system and a premium leather travel case. Braun will also reveal the new Series 7 Premium beard trimmer. Oral-B TriZone rechargeable toothbrushes and brush heads will also be on display. These brushes and heads combine the familiarity of manual brushing with Oral-B’s cutting-edge Triple Action Deep Cleaning technology. Braun also plans to show various watches and clocks. Having experienced “moderate” growth so far in 2012, Braun feels the greatest growth in 2013 will come from Asia, specifically Korea and China.


Adaptive aptitude ravel accessory specialist Go Travel believes that there’s a direct correlation between the demand for innovative electronics and the company’s growth rate—as the former increases so does the latter. With the brand’s global sales experiencing strong growth rates—including in the US and Latin America— and with July being its highest month on record, Go Travel doesn’t anticipate any slowdown for the foreseeable future. The recent addition of two new sales positions, occupied by Enric Subiros and Kellie Robertson, has also strengthened Go Travel’s international duty free business from sales to distribution. In Latin America, Go Travel’s growth remains steady with Grupo Wisa, Motta International and Mannah (Paraguay), names that have supported the company since its first entry into the region. “A new airport kiosk at Lima’s Jorge Chavez International Airport has created a successful template that we hope to roll out with other duty free operators in the region,” explains Go Travel’s David Lomas. “Being the most recent area to launch the brand, we see Latin America as an area of great potential in our future plans.” Go Travel also sees great growth potential in Latin America in 2012/2013, as the region is new for the company and has the greatest room for growth—but that’s not to say the brand doesn’t also have its eyes on other opportunities, specifically the US. “For 2012/2013 the US offers the greatest potential for growth,” says Lomas. “As a company, we are still relatively new to this market, but have made excellent headway and achieved exponential growth year-on-year. This year, we are mak-

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Go Travel’s USB Worldwide Charger charges two USB devices simultaneously from the mains in more than 150 countries worldwide

Go Travel’s pocket-sized travel shaver is rechargeable through any USB port

ing greater inroads and have bolstered existing logistics operations with a new West Coast warehouse to service this area faster and more efficiently, making it more cost effective for customers in the region.” With the US consumer fixated on Smartphone technology, the demand for Smartphone accessories has skyrocketed and Go Travel has taken note. With adapters serving as the brand’s best-seller in the Americas—and even globally—Go Travel is in a good position to meet this demand. For Go Travel, chargers and adapters have been strong performers, as they have been for over 30 years. During this year’s TFWA WE (Green Village, Stand K60), Go Travel will be introducing its new Worldwide USB Charger, a revolutionary device that allows users to charge or power two USB devices at once in over 150 countries. “Small and compact, the Worldwide USB Charger has a 1.3A output, making it a powerful partner for a variety of electronic equipment including iPads, iPhones and other Smartphone and tablet devices,” explains Lomas. A convenient sliding-pin mechanism allows the user to quickly switch between countries. Go Travel says that its 20-strong in-house design team, which monitors market trends and anticipates future demand, along with positive customer feedback and annual key product category refreshes leaves the company optimistic about future market success.

TRI’s picture perfect product line-up istributor Travel Retail Innovations (TRI) will be showcasing the Sony NEX-7 camera in the Yellow Village booth C29 and B27 during the TFWA World Exhibition. Available in travel retail outlets this fall, the mid-range camera with interchangeable lenses offers exceptional image quality for both stills and video and all without the size or weight of a standard DSLR (digital single-lens reflex) camera.

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The Sony NEX-7 camera will be available this fall

The ultra-high resolution 24.3 megapixel Exmor APS HD CMOS sensor offers excellent imaging performance with detailed, low-noise pictures, even in low light. With the option to switch to video mode, one can capture smoothly detailed, high definition videos with quick autofocus even while zooming. Background defocus effects add an extra dimension for creative movie shooting. The precision Tru-Finder electronic viewfinder offers an ultra-clear, high contrast view of the scene and allows the user to frame and shoot even in bright sunshine with the camera held close to the eye. TRI will also unveil Cellular Line’s full line of Galaxy S3 accessories, including soft cases, hard cases and a range of high quality screen protectors. From October, the Galaxy S3 range will include more than 50 SKUs, which will be branded Cellular Line and Momodesign. Offering an array of colors and materials, from a classic black hard shell case to a shocking pink shiny rubber case with Super Glass invisible, glue-free screen, there is a style to suit every user. Protective corners, easy key and socket access and a perfect fit come as standard. A few of the 15 innovative Cellular Line designs include Clean Sleeve protective sleeve in strong black Napuk-effect padded fabric lined with microfiber material, which polishes the screen each time it is inserted, and Smart Flap black eco-leather case with a transparent flap and magnetic closure. www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

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Electronics Report

Premier Portfolio’s Handheld Screen Cleaning Kit, a portable cleaning kit featuring specialized cleaning fluid and a micro-fiber cleaning wipe

Gadgets to go remier Portfolio works on the ‘gadget’ side of the electronics market, with a portfolio that ranges from headphones to screen cleaners. The brand, which specializes in supplying electronic products and accessories, but also offers a wide range of toys, logoed and gifts items, says it has experienced success in the Americas with its Waterproof MP3 Case and Earphone Set. With the rise in the number of Smartphones and tablet computers on the market, Premier Portfolio has decided to focus on offering convenient accessories that optimize the use of these items, such as its screen cleaning product, which allows users to remove and smudges or fingerprints from touchscreen devices and LCD screens. “Consumers are always looking for new and innovative gadgets. We aim to supply accessories that complement and work alongside the range of new technologies,” says Garry Maxwell, Sales Director, Premier Portfolio. At this year’s TFWA WE (Stand M44 in the Green Village), Premier Portfolio plans to launch an array of new products, notably the Motormouse. Premier Portfolio recently agreed to act as distributors for Motormouse’s travel retail business. The Motormouse brand first appeared on the BBC’s series Dragon’s Den, which began with a generic sports car model and has more recently developed a licensed Mini range, featuring both the 1960s and current models. The Mini comes

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with decals and stickers to allow users to personalize their vehicle. The mouse is packaged with a mouse mat, carry case and batteries. Also set to be introduced is the Smug Earphones Twin Pack with Splitter, which offers hi-fi quality stereo earphones in both black and white. The earphones offer noise isolation, stereo listening via high quality neodymium driver units and modified speaker components. Premier Portfolio says that the earphones give “crystal clear perceived sound balance across bass, mid-range and high frequencies.” The set includes 3.5mm stereo jack plugs, a 3.5 mm dual listening adaptor and spare silicone earpads. Featuring 32 Ohms impedance with a high-tech rubberized finish, the earphones are suitable for all types of hi-fi and portable music players and can be used inflight. Premier Portfolio will also be revealing its Handheld Screen Cleaning Kit, a portable cleaning kit featuring specialized cleaning fluid and micro-fiber cleaning wipe to prevent screen scratching, suitable for laptops, tablets, androids and all PC screens. Looking forward to 2013, Premier Portfolio identifies South America as the market with the greatest growth potential. The Motormouse, which comes with decals and stickers, a mouse mat, carry case and batteries

B&S Group has a positive impact on Sea & Sky Supply ea & Sky Supply has experienced a number of changes since joining international wholesaler and distributor, B&S Group, which have impacted its electronics business. Dufri International joined the group earlier this year in April, while B&S acquired Capi-Lux. Sea & Sky Supply says that the changes will translate into greater customer satisfaction with the introduction of the right brands, right products and expertise in profitable duty free and travel retail concepts. “The products are changing very fast and we need to be updated by the industry and our customers pretty fast,” says Gerrit van Til, Managing Director, Sea & Sky Supply. “However with our knowledge and expertise in the group now we are able to handle this fast changing business better.” At this year’s TFWA World Exhibition, B&S Group will be presented

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at booth G31 Blue Village by Sea & Sky Supply and booth A11 Blue Village by Capi Trading. Sea & Sky Supply will present its “Cloudz Travel Comfort” concept with a wide range of electronic accessories (Philips, Beats by Dr. Dre, Sony, Golla, Caselogic) and gadgets (Wowee, spider, magic cube) as well as its kids concept. Together with Capi Trading, Sea & Sky Supply will present the complete electronics assortment at the Capi Trading booth. Sea & Sky Supply will also introduce a range of inflight electronics and gadgets. Next to the existing Sector range, Sea & Sky Supply will launch a new exclusive watch range of the brand Maserati. Capi Trading will show Capi’s own brand of consumer electronics called “MiTone” in the former Dufri booth. The booth will also be used to demonstrate the company’s expertise and background in the duty free electronics market. Major brands like Canon, Nikon, Samsung and others will be presented during the show.


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Part Frozen. All Luxury.

inniskillin.com PLEASE ENJOY RESPONSIBLY.

“MAKING GOOD WINE IS A SKILL. FINE WINE IS AN ART.” – ROBERT MONDAVI

RobertMondavi.com Please enjoy our wines responsibly.


Wine Report RYAN WHITE

A variety of varietals BY

Americas Duty Free speaks with five wine suppliers and discovers that wine enthusiasts will have a plethora of choices at this year’s TFWA WE

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ine is a comparatively small but certainly growing subcategory of the travel retail spirits offering. Americas Duty Free spoke with Gerard Bertrand, Distilleria Bottega, Vincor, ALFA Brands and Bodegas Torres to get a sense of what new developments the companies have in the pipeline surrounding TFWA WE. As you’ll see, recurring themes include sales bolstered by high-spending international travelers, strong performances at worldwide competitions and a concentration on responsible wine production.

International success “Gerard Bertrand’s sales in the travel retail channel have shown a high increases over the first half of 2012 and we have significantly strengthened our position,” says Christophe Balay, Travel Retail Director at Gerard Bertrand Wines. “Our strong identity and differentiation, our recent election as Best European Winery of the Year [by Wine Enthusiast] and our status as flagship [wine] producer of the South of France have played a role in this achievement.” Gerard Bertrand’s sales are increasing on an Code Rouge international level, particularly with Dufry in is a super premium North and South America; in the Middle East Cremant de Limoux with a with Le Clos, Dubai Duty Free, Qatar Duty Free new bottle for and Muscat Duty Free; in France and Turkey this year’s with Nuance; in Northern Europe with ferry TFWA WE operators such as Tallink Silja, Viking Line and P&O; in Amsterdam Schiphol with SAR; in Helsinki with Finnair; and at Keflavik Airport with Frihöfnin. “Our partnership with Aelia has developed considerably with a larger range and extended distribution, not only in French airports, but now also in the UK, Poland and New Caledonia,” Balay adds. Favorites among travelers are Gerard Bertrand’s core Réserve Spéciale varietal range; Cigalus, a highly rated bio-

dynamic wine; Terroir and Grand Terroir wines from Corbières, Minervois and Pic Saint Loup; and Legend Vintage fortified wines. There are no surprises in terms of high-spending travelers—baskets tend to be considerably higher with Chinese and Russian nationals, and Gerard Bertrand is taking this into account in its communication and training efforts. New wines at Gerard Bertrand’s stand during TFWA WE include Code Rouge, a super premium Cremant de Limoux; the Prima Nature range with no added sulfites; and the Legend Vintage range of fortified wines. Nero Bottega is characterized by a smooth and luscious flavor that recalls the essence of pure chocolate and the fruity scents of grappa

Chocolate and Raspberries Bottega is capitalizing on the boom in the creams/liqueurs subcategory by launching two new products at TFWA WE this year: Nero Bottega and Raspberry Bottega. The company will also showcase Bottega Gold with a new fashion bag, perfect for gifting. Nero Bottega is made with dark chocolate and grappa. It is characterized by a smooth and luscious flavor that recalls the essence of pure chocolate and the fruity scents of grappa. The fact that it is 15% ABV makes this product an excellent after dinner drink, but it can also be enjoyed anytime alone or in a cocktail. Raspberry Bottega is a raspberry, white chocolate and grappa-based creamy liquor. It is characterized by a moderate alcohol content that makes it very soft in the palate and by the unmistakable flavor of raspberries. As mentioned, Bottega Gold is also now available with a new fashion bag made from what the company calls “eco-leather.” While the bag is new, the bottle retains the same classic gilding that carries a distinctive aesthetic impact and serves to protect the wine against light, keeping its features unchanged and giving a longer life to the wine.

Raspberry Bottega is a raspberry, white chocolate and grappa-based creamy liquor characterized by a very soft palate

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Wine Report

An Asian favorite Amanda Dolotowicz, Business Development Manager at Vincor, tells Americas Duty Free that Robert Mondavi wines and Inniskillin Icewine continue to sell well at DFS stores in San Francisco, Los Angeles, Hawaii, Vietnam, Singapore and Abu Dhabi airports. In fact, at the operator’s stores the Robert Mondavi brand has been seeing a healthy double-digit growth. “In terms of the North America, it’s fair to say that our focus is on Inniskillin Icewine and continuing to grow the Robert Mondavi brand,” she explains. “However, we’re hoping to soon launch Kim Crawford wines with DFS at HKIA. They’ll be our first customer for the brand and this will really help us position these wines in the marketplace.” Dolotowicz notes that based on the success of the wines with DFS, a further rollout to other operators and locations may take place in the future. For the Kim Crawford listing Vincor will be focusing on a unique tier that sets itself apart from other wines by virtue of the fact that it is handcrafted in small volumes.

Vincor’s Robert Mondavi brand continues to sell well at DFS stores in the Americas

In other parts of the world, Dolotowicz notes that Black Velvet sales are doing well in Europe, and Vincor continues to work at establishing itself in the Middle East. “We’re gaining headway, for sure,” she reports. In South America, Vincor is currently very active domestically and is looking to increase the footprint of its brands, especially Inniskillin Icewine, in duty free. Good news, though, is that sales are doing well in Americas duty free stores where Vincor’s wines are listed. Dolotowicz cites an increase in Asian travelers as a huge advantage for Inniskillin Icewine. Another group that suppliers and operators alike are watching is Brazilians. Thanks to TV and radio spots in Brazil, Inniskillin Icewine is also quickly becoming a favorite among this important group of travelers when they visit the US and Canada. Furthermore, sure to help shelf standout and keep the brand top of mind is an updated label for Inniskillin Icewine, which is expected to make its way to store shelves worldwide in the spring of 2013.

Keeping it exclusive Although not attending this year’s TFWA WE, distribution company ALFA Brands continues to makes waves in Americas travel retail, most recently with the release of two new duty free exclusives from Pillitteri Estates Winery: a new Icewine decanter that is exclusive to duty free and Red Leaf Icewine in a 250 ml bottle. The new decanter is currently available for the Exclamation Winemakers Special Selection Icewine, which is a Gewurztraminer Riesling Icewine, and in a Sauvignon Blanc Icewine. The Icewine comes in a beautiful decanter that is in a gift box with a detachable label that won’t leave any residue on the glass. The decanter comes with a cork inside and a glass stopper to be used once the decanter has been opened. The Icewine recently won a gold medal at the 2012 Challenge International du Vin Competition, as well as a Gold at the International Wine and Spirits Competition, receiving a score of 19.25 out of 20. As mentioned, Pillitteri Estates has also released its Red Leaf 250 ml Icewine in a duty free exclusive gift box. A testament to its popularity with consumers, Red Leaf Icewine was the product used in the 2011 FDFA Best Marketing Program Award for a Canadian product, won by Niagara Duty Free.

Fair is fair Bodegas Torres is currently working on a number of new projects, says Area Manager Andrea Serrat Draper. However, one of the more noteworthy developments is Santa Digna Santa Digna Estelado Chilean sparkling wine. Estelado is a 100% Chilean Estelado is made with 100% País grapes, sparkling wine that is certified which were in fact the first grape variety fair trade brought to Chile 500 years ago. “The varietal is cultivated in dry zones with humility, hard work and dedication, generally by small winegrowers who have passed their land from father to son over several generations,” Serrat Draper explains. In 1850 the first French vines were introduced to Chile, 126

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The Exclamation Winemakers Special Selection Icewine recently won golds at the Challenge International du Vin and the International Wine and Spirits Competition

leaving País grapes all but forgotten. Over the years, the price of this particular varietal skyrocketed and by 2007 many País grape growers had been forced to abandon their lands. It was that year in particular that Miguel Torres Chile, together with the University of Talca, began a project aimed at studying País grapes. Working together with producers from Cauquenes, Chile, Torres was able to produce a 100% Chilean sparkling wine with País grapes obtained from 100-year-old grapevines. Estelado is certified as fair trade, meaning that the farmers are paid a fair price for their grapes. Furthermore, a portion of sales is put toward social projects in the community of Cauquenes. “Indeed all of Torres’ Santa Digna range is certified fair trade,” Serrat Draper tells us. “Santa Digna... is proof that qualc ity and CSR can go hand in hand.”


TFWA WE Wine Preview

A feast for the senses Americas Duty Free looks at some of the new wine and champagne offerings set to be showcased at this year’s TFWA WE BY

RYAN WHITE

rance is considered by many to be the home of Old World wines, and as such it’s appropriate that Americas Duty Free brings you the best and brightest of new wine and champagne products at TFWA WE. From new wine producers to some old favorites, there will be no shortage of options for exhic bition attendees to explore in Cannes this year

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Company: Casa Vinicola Zonin Booth: Blue Village, F4 Company profile: Innovation combined with tradition has made Casa Vinicola Zonin a reference point for high-quality Italian wines. For nearly two centuries the Zonin family has committed itself to the craft of winemaking and today the company offers numerous wines across several estates. New wines/champagnes for Cannes: Castelo D’Albola Chianti Classico Riserva, made with 100% Sangiovese grapes; Principi di Butera Insolia, made from grapes picked in the first week of September, placed in small wooden cases and then given a very soft pressing; Principi di Butera Nero d’Avola, made with 100% Nero d’Avola grapes and matured for 12 months in oak barrels followed by a period of bottle aging; and Zonin Prosecco DOC, made from 100% Glera grapes—an excellent aperitif that can also be served throughout a meal. Tasting notes: Castelo D’Albola Chianti Classico Riserva: Well-balanced and dry, with good structure and a velvety texture; Principi di Butera Insolia: Rich and well-balanced, with delicate, sweetish hints of almonds; Zonin Prosecco DOC: The flavor is very well-balanced and appealing, with the extremely delicate almond note that is typical of Glera grapes. Contact: Maura Marciante, Export Department Coordinator (maura.marciante@zonin.it)

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TFWA WE Wine Preview

Company: Champagne Henriot Booth: Red Village, J3 Company profile: It was in 1808, under Apolline Henriot, that Champagne Henriot was officially founded. From generation to generation, the House of Henriot has devoted all its talent to creating the most superb wines from grapes carefully selected from the great terroirs on the Montagne de Reims and the Côte des Blancs. New wines/champagnes for Cannes: La Cuvée des Enchanteleurs 1998, an exceptional cuvée that delights both the eye and the palate with a new vintage and new packaging; Bourgogne Pinot Noir Réserve, which matures in the cellars of the 15th century Château de Beaune, property of Bouchard Père & Fils; and Le Chardonnay de Chardonnay, available in a twin gift-pack especially designed for the duty free market, together with a bottle of Bourgogne Pinot Noir Réserve. Tasting notes: La Cuvée des Enchanteleurs 1998: Discreet notes of candied citrus fruit, hazelnut and pastry delight the nose. Roasted aromas, along with toasty, buttery and brioche notes blend with citrus and vine peach fragrances. The wine then develops with honeyed flavors and delicate exotic tones; Bourgogne Pinot Noir Réserve: Very perfumed bouquet unveiling flavors of red fruit delicately entwined with notes of undergrowth—a fruity, delicate and harmonious mouth; Le Chardonnay de Chardonnay: Intense nose, developing flavors of flowers and white fruit combined with a very light touch of oak—a perfect marriage of freshness and roundness. Contact: Marion Milesi, Communications (mmilesi@champagne-henriot.com)

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Company: Gerard Bertrand Booth: Red Village, K11 Company profile: Gerard Bertrand was born and raised in the South of France and grew up making wine with his father, Georges, since the age of 10. Gerard Bertrand offers the full range and diversity of wines from the region—red, white, rosé, varietal, appellation, estate, still, sparkling and dessert. Committed to producing quality wines of great value, Bertrand is hands on in every facet of the winemaking process. New wines/champagnes for Cannes: Prima Nature, an exclusive range of wines without any added sulfites and additives; Legend Vintage, a collection of exceptional fortified wines available in wooden boxes (1875, 1890, 1895, 1900, 1910, 1914 and more); and Code Rouge, a super premium Cremant de Limoux available in 75 cl, Magnum and Jeroboam sizes. New developments: Gerard Bertrand recently acquired Chateau La Sauvageonne in AOP Coteaux du Languedoc - Terrasses du Larzac. This represents Gerard Bertrand’s seventh estate. The company calls it a promising new area. Contact: Christophe Balay, Travel Retail Director (c.balay@gerard-bertrand.com)

Company: Paul Sapin SA Booth: Blue Village, H17 Company profile: Quick bites to eat, sometimes alone, at the office, on a train or a plane are a fact of life for many people these days. This fact has led Paul Sapin to innovate and provide the delicious, fruity quality wines that consumers want to enjoy in bottles of all sizes. From individual portions to 75 cl bottles for a drink with friends, Paul Sapin markets a very wide range of wines from France and the New World, selected from among the best producers. New wines/champagnes for Cannes: Chateau Blomac AC Minervois is an award winning rich red wine from the South of France. Recent wins include a gold medal at the prestigious Mundus Vini awards for the second consecutive vintage. This classic wine is now available in Multi Layered PET (MLP) format, which is an unbreakable, lighter and ecofriendly packaging often referred to as “the friendly bottle.” Tasting notes: The combination of 50% rich, spicy Shiraz married to old vine Carignan (30%) and full flavor Grenache (20%) make this wine full and rounded. A big, fruity mouthful of ripe wild berries and pepper followed by a finish with smooth silky tannins distinguish this premium wine as one of the best from the south of France. Contact: Barry Geoghegan, Head of Global Travel Retail (+353862354173; barry@barryglobalinnovation.com)


Take Home a Taste of Canada wi th NHL Al um ni Wines or Icew ine & Map le S yrup!

Exclusive Duty Free Agent for North America T: (336) 775-2995 F: (336) 775-2996

Email: ahildreth@alfabrandsdfs.com


Wine News

Brut Réserve in City Spirit is presented in a collector’s metal gift canister

Champagne Nicolas Feuillatte launches City Spirit collection Having developed what it calls a “City Spirit” theme, Champagne Nicolas Feuillatte has chosen to reveal its symbiotic relationship with urban adventure, its energy and modernity at TFWA WE 2012. “City Spirit is a universal and cosmopolitan concept that evokes the brand signature— ‘Epernay, New York, Beyond’—and reflects the new brand identity with the compass logo at the heart of the brand. In adopting City Spirit, Nicolas Feuillatte affirms its cosmopolitan outlook and vibrant lifestyle,” says the company. Included in the collection is the limited edition City Spirit jeroboam (3 liters), a refreshing take on the iconic Brut Réserve Particulière Champagne created by Mr. Nicolas Feuillatte in the late 70s. Its industrial hammered metal label bears the key “City Spirit” message as if stenciled with the flair of a street artist. Numbered, only 500 jeroboams of this limited edition cuvée will be released in the world, making this very limited edition an absolute must for Champagne Nicolas Feuillatte enthusiasts! The limited edition City Also new for the exhibition and part of Spirit jeroboam (3 liters) is a refreshing take on the collection is the Brut Réserve in City the iconic Brut Réserve Spirit gold metal canister. Utterly daring and Particulière Champagne created by Mr. Nicolas unique, this metal gift canister will accom- Feuillatte in the late 70s pany the Brut Réserve cuvée and will delight Champagne collectors and aficionados alike. The hammered metal finish and its golden hue firmly anchor the collection in a timeless urbanism, just as reminiscent of 20th century New York building sites as of the towering skyscrapers of our modern day cities. Visitors to TFWA WE 2012 who wish to see the products for themselves can visit Champagne Nicolas Feuillatte at stand J18 in Red Village.

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Barton & Guestier to showcase Passeport range at TFWA WE 2012 Barton & Guestier (B&G) will be showcasing its Passeport range at this year’s TFWA WE. Covering 19 appellations from the six main wine-growing regions, the B&G Passeport range  is designed to allow consumers to discover a number of great French vineyards. “The  distinctive label shape, the  strong B&G branding—both on the label and the capsule— and the  red B&G Passeport stamp make this B&G Passeport range very impactful on the shelf,” said the company. B&G also notes that education was a prime concern in the design of this new range. In addition to the name of the appellation, the labels carry the name of the region inside the passport stamp, the name of the varietals and taste descriptors in French and English for the classic appellations. The more prestigious appellations carry a regional or village symbol. All the "icebucket-friendly" backlabels provide information and QR codes linking to the product sheet, the B&G website and the company fanpage on Facebook. The classic appellations of each region are delivered in  right-weight Bordeaux and Burgundy shaped bottles, and the wines are packed per 6 or per 12 in dedicated B&G Passeport outershippers. The B&G Passeport range replaces the B&G Gold Label range, but the quality of these appellation wines is still monitored closely by the B&G winemaking team. The launch of the B&G Passeport range is ongoing worldwide and is accompanied by advertising as well as promotional actions for trade and consumers with B&G cooler bags, free dropstops on informative neckhangers, giftpacks and a real B&G Passeport. St-Emilion and Bordeaux, two of the wines featured in the B&G Passeport range, which will be showcased at this year’s TFWA WE in Cannes


THE MINIS


Vodka Report For Grey Goose Cherry Noir, the 100% natural essence of ripe cherries is then expertly blended with Grey Goose

Liquid gold

Americas Duty Free speaks with suppliers who have proven that premium and super-premium vodka is a solid path to success in travel retail and duty free markets

lthough its roots are firmly planted in the “vodka belt” countries of Northern, Central and Eastern Europe, vodka has today become one of the most widely traveled spirits in the world. And as in many other categories, the development of premium and super-premium variants is proving to be an increasingly lucrative path for suppliers, especially when it comes to the duty free and travel retail market. Russian Standard, for example, has been the fastest growing vodka in Americas travel retail over the last two years, says Marine Legrand, Rémy Cointreau’s Global Trade Marketing Manager for the Russian Standard portfolio. “We moved the brand from nowhere two years ago—600 cases—to nearly 30,000 cases with every key duty free operator in the Americas.” Although Russian Standard is still a relatively small player in the vodka market, the brand draws a lot of strength from its strong customer appeal. Legrand says that Russian Standard is getting increasing business on cruise lines, which reflects the brand’s performance domestically “as it goes from strength to strength.” The task now, she says, is to take that growth to the next level through continuous investments and new tactical strategic listings with airlines and cruise lines over the next year. For Russian Standard, Legrand says that strong brand sales help to maintain good space in-store through permanent merchandising and sampling. On-site sampling hostesses interact with customers to explain and sample the taste differences and levels available across the full Russian Standard range. At TFWA WE this year Russian Standard will focus on launching the new Russian Standard Gold in the Americas. The new bottle for Russian Standard Gold is a feast for the eyes. Its

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elegant glass design and cork closure evokes images of pure celebration. Key features of Russian Standard Gold are highlighted on the label, including the key ingredients of Siberian Ginseng.

Stoli Salted Karamel is exclusive to travel retail and selected markets, offering the perfect combination of golden brown caramel enhanced with salt

The flavor makers Stolichnaya Premium vodka will also part in TFWA WE this year, showcasing the latest additions to their portfolio and reinforcing their position as flavored vodka pioneers at stand D3 in the Blue Village at the show. Exhibited on the stand will be two of the newest additions to the Stolichnaya Flavored Premium vodka portfolio, Stoli Hot and Stoli Sticki. Based on Stoli’s original Pepper and Honey & Herb flavors introduced in 1962, the flavored vodka pioneer has remixed the variants to achieve the perfect original taste. Stoli Hot offers the warm, fiery sensation of jalapeño peppers; spicy on the palate yet with a delicate smoky quality. By contrast, Stoli Sticki is inspired by the delicious, candied taste of the finest honey and incorporates complex floral notes to complement its subtle sweetness. The newest variant in Stolichnaya’s line of flavored vodkas will also be available at TFWA World Exhibition. Stoli Salted Karamel, exclusive to travel retail and selected markets, offers the perfect combination of sweet and savory—golden brown caramel delicately enhanced with salt. Finally, using Stolichnaya Premium vodka as the base, Stoli has created a perfect blend of premium Stolichnaya with sweet, tart cranberry in Stolichnaya RED. A brightly colored red liquid, cranberry flavored and only 20% alcohol by volume, the result is a refreshing liquid that can be enjoyed neat as a shot, on ice or as a long drink mixed with club soda and fresh lime.

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

The new bottle for Russian Standard Gold features an elegant glass design and cork closure, evoking thoughts of celebration


Danzka posted double-digit growth last year, and is looking to accelerate that pace

“It’s about being original and innovative,” says Jean-Philippe Aucher, Global Duty Free and Travel Retail Director for SPI Group, brandowners of Stolichnaya. “Stoli has been known for half a century as a pioneer in the vodka category and this is how we differentiate ourselves.” Bacardi Global Travel Retail is also launching a new flavor, Grey Goose Cherry Noir, in selected airports in the Americas. The variant represents a bold, rich and sensuous side of the super-premium category leader. Of course, at the heart of its exceptional taste is Grey Goose vodka, made with the finest French wheat and blended with pure spring water from the Cognac region. The 100% natural essence of ripe cherries is then expertly blended with Grey Goose under the supervision of the Grey Goose Maître de Chai (cellar master) François Thibault. In order to craft the extraordinary flavor profile of Grey Goose Cherry Noir, Thibault worked closely with one of the world’s leading flavor houses based in Grasse in the South of France. The flavor houses in Grasse have established an international reputation for their expertise in extracting the most exquisite aromas and flavors from natural ingredients. Grey Goose Cherry Noir has an aroma of fresh cherries and a long, warm, lingering finish. “We’re very excited about the launch of Grey Goose Cherry Noir,” says Leigh Irvine, Regional Director for the Americas at Bacardi Global Travel Retail. “As Grey Goose is the leader in super premium vodka, we will only launch a new flavor when it’s of such an exceptional quality that we can proudly present it alongside the current Grey Goose portfolio. We have established a reputation for quality with the trade and consumers which must be respected and upheld.”

ket and enjoys success in all regions, in part because of its unique aluminum bottle. Danzka is sold through all Dufry shops in North America and the Caribbean, excepting cruise lines, and is continuing to gain market traction across Latin America while also enjoying success in Europe and Asia. Overall Danzka posted double digit growth in 2011, says Rosendahl. The promotional side is very active for Danzka, Rosendahl says. “We’ve produced a smashing new Danzka Vodka display in steel called ‘Zero.’ It’s been developed especially for off-trade outlets such as super markets, border shops and airport shops. The eye-catching unit is easy to assemble and will make Danzka Vodka stand out even more.” Danzka has a built-in edge when it comes to promotions, Rosendahl says. “One advantage Danzka has over all other vodkas on the market is the [aluminum] bottle, [which] instantly stands out on the shelf.”

At TFWA WE Pernod Ricard will be introducing ABSOLUT Unique, another brand that isn’t afraid of breaking away from the pack with new concepts. According to Pernod Ricard Americas Travel Retail (PRATR) Marketing Director Antonio Suarez, the variant will be available in key airports within the Americas from November. “We also have a very interesting media plan around the product,” says Suarez, although at press time no further details were available. Every bottle of ABSOLUT Unique is a oneof-a-kind work of art. To achieve the desired end result, Absolut had to re-engineer the entire production process. Splash guns and colorgenerating machines were set up, and complex coating, pattern and placement algorithms were programmed in to ensure that no two bottles would be alike. Thirty-five different colors were used, and fifty-one pattern types were applied to the bottles. A striking look was achieved by color contrasts and a white, mat paper label that features each bottle’s unique number. This is a collection where everyone will find a design that catches their eye and becomes a truly personalized gift—or the perfect addition to a party or collection. In September ABSOLUT Unique premiered at Nuance stores in Stockholm-Arlanda Airport in Sweden, the home of the world famous vodka brand. PRATR also continues to roll out ABSOLUT ELYX across the Americas duty free market. “The brand and product are performing well,” says Suarez, “and with ABSOLUT ELYX now in distribution in almost all airports, we expect c it to continue to do so.”

In addition to the launch of ABSOLUT Unique in Cannes this year, ABSOLUT ELYX is outperforming in the Americas, especially in Brazil

Different is good Belvedere’s two main vodka products in travel retail are the flagship Sobieski Vodka brand and Danzka Vodka. Brand Manager Laila Rosendahl Schmidt calls Danzka “the best traveling vodka in the world,” saying that the brand is ideally suited for the duty free and travel retail marwww.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

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TFWA WE Liquor Preview

On the

Nemiroff Goal Company: Nemiroff Ukrainian Vodka Company Stand: Blue Village, G1 New product(s) featured: Nemiroff Goal Description: Nemiroff has introduced a limited quantity of specially packaged vodka called Nemiroff Goal. The bottle takes the shape of a soccer ball on a pedestal and has a special logo that looks like a soccer pitch. Nemiroff Goal is a special presentation of the company’s popular vodka Nemiroff Delikat. The main characteristics of the drink include smoothness and purity of taste Target consumer: Soccer fans Contact: Irina Petrovskaya, Senior Sales Manager, Export (ipetrovskaya@nemiroff.com.ua)

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BY

RYAN WHITE

Americas Duty Free presents a guide to some of the many must-see spirits exhibitors at this year’s TFWA WE FWA WE has long been known as the world’s premier duty free event, and one look at this year’s exhibitor list makes it clear that the 2012 exhibition won’t disappoint. From new companies and products to returning suppliers showcasing old favorites, it’s sometimes hard for attendees to know where to begin. Below Americas Duty Free presents a guide to what’s new in the world of spirits in Cannes this year.

Glen Kirk Company: Angus Dundee Distillers Stand: Green Village, L55 New product(s) featured: A new single malt whisky range from Charles Hamilton Ltd. Three editions of Glen Kirk have been released: a standard aged version, an 8 YO and a 12 YOs Description: The packaging is distinctive, with each age styled in its own striking color enhanced with a rich gold finish. The bottles are displayed for sale in matching, attractively designed cylindrical cartons. The new launches will be available in key European, duty free and selected world markets Target consumer: The discerning drinker who is looking for the

opportunity to try excellent Speyside single malt whiskies and appreciate the nuances of taste differences at various ages of maturation Contact: Duncan Baldwin, Regional Director (dbaldwin@angusdundee.co.uk)

Phraya Company: International Beverage Stand: Marina Village, S1 New product(s) featured: Caorunn Gin; anCnoc single malt Scotch whisky, Peter Arkle Travel Retail Edition; and Phraya deep matured gold rum Description: Caorunn Gin is a super premium small batch Scottish gin and the only gin produced at a historic malt whisky distillery, Balmenach Distillery on Speyside. anCnoc is a premium single malt Scotch whisky from Knockdhu Distillery, Scotland with a label and gift tube designed by New York-based artist and designer Peter Arkle. Finally, Phraya is a 12 YO super premium Asian rum matured in oak barrels and bottled in Thailand Target consumer: Travelers worldwide Contact: James Bateman, Global Travel Retail Manager (jbateman@interbevgroup.com)

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Botran Solera 1893 Company: RCP Corp Stand: Yellow Village, G45 New product(s) featured: Botran Solera 1893 is a blend of select rums aged between 5 and 18 years, offering balance and roundness. Botran Reserva is described as a blend of Solera rums aged between 5 and 14 years, featuring an approachable complexity with well balanced flavors of freshness and age Target consumer: Travelers looking for an artisanal, handcrafted rum that offers great value for money Contact: Frank Quinones, Global Director (fquinones@rcpcorp.com)


Mabille Company: Rémy Cointreau Global Travel Retail Stand: Marine Foyer 1A New product(s) featured: Cointreau Mabille Description: Alexis Mabille revisits the bottle of the iconic French liqueur with a special sleeve decorated with his signature bow tie, his favorite emblem and a timeless symbol of sophistication and edginess, in lustrous gold Target consumer: Cocktail lovers—at the heart of innumerable cocktails, Cointreau (40% ABV) is versatile and timeless, playing a key role in some of the most popular drinks of all time, including the Margarita, Cosmopolitan, Sidecar and White Lady Contact: Matthew Hodges, Marketing and Business Development Director – GTR (matthew.hodges@remy-cointreau.com)

Chase Marm Company: World of Patria International Stand: Blue Village, G13 New product(s) featured: Chase Marmalade Vodka; Chase English Potato Vodka; and William Chase’s Gin Description: Chase English Potato Vodka is Britain’s only potato vodka, made from home-grown potatoes (Lady Rosetta and Lady Claire) in a converted, retro style hop kiln on owner William Chase’s farm in Herefordshire, England. For Chase Marmalade Vodka, Seville Orange Marmalade is marinated with Chase Vodka in a copper still. The vodka is then distilled a fourth time with the vapors passing through orange peel to give off the oils and color. Lastly, William’s Chase Gin is distilled from Apples grown on his own farm Target consumer: Premium vodka and gin drinkers with an appreciation for British quality Contact: Kevin Baker, Director (kevin@worldofpatria.com)

Quita Penas Company: Tequilera Corralejo Stand: Blue Village, E1 New product(s) featured: Quita Penas Margarita Mix Description: No artificial flavors are used in Quita Penas to make it as close as possible to a freshly prepared Margarita cocktail. Each 750ml bottle is 10% ABV and is decorated with a bright pink and yellow floral motif. Simply serve over crushed ice for the perfect Margarita Target consumer: Travelers looking for a top quality cocktail mix with a very authentic and natural flavor Contact: Raffaele Berardi, Tequilera Corralejo (raffaeleb@tequilacorralejo.com.mx)

Islay Mist 17 Company: MacDuff International Limited Stand: Green Village, L52 New product(s) featured: Islay Mist 12 YO and 17 YO in liter sizes Description: Following on the success of Islay Mist 8 Year Old in both the US and Canadian domestic markets, MacDuff is launching Islay Mist 12 Year Old & 17 Year Old for the first time in liter size at Cannes. The liter bottles will come in attractive tubes. Both the 12 Year Old & 17 Year Old are past winners of their categories at the World Whiskies Awards. Islay Mist is described as a perfect synthesis of the unmistakable notes of peat, smoke and sea air found in Islay Malts combined with the smoother, sweeter hints of Speyside Malts Target consumer: Blended scotch drinkers looking for a premium option with more character, lovers of Islay malts and travel retail customers looking for a premium gift in high quality packaging Contact: John Scott, Export Sales Director (john.scott@macduffint.co.uk) www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

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Pernod Ricard Americas Travel Retail ABSOLUT ELYX stands as a good example of new premium variants; Pernod Ricard Americas Travel Retail plans to push new premium brands even more in the coming months

From Asia to the Americas

CEO of Pernod Ricard Americas Travel Retail Franck Lapeyre takes learnings from Asia travel retail and puts a push on premium spirits in the Americas BY RYAN WHITE arlier this year, Franck Lapeyre made the move from the premium spirits-oriented Asia travel retail market to the position of CEO of Pernod Ricard Americas Travel Retail. Americas Duty Free had the opportunity to sit down with him ahead of this year’s TFWA WE to discuss his plans for Pernod Ricard’s brands in the Americas. We discovered that with increasing numbers of luxury-driven Asian and South American consumers traveling throughout the Americas, Lapeyre plans to take what he knows best about the Asian travel retail market and sharpen Pernod Ricard Americas Travel Retail’s concentration on premiumization in the region.

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Americas Duty Free: How do you feel your experience in Asia will help you in your Americas role?

Franck Lapeyre, President and CEO, Pernod Ricard Americas Travel Retail: As far as US duty free is concerned, it’s obvious that many people who purchase when they travel through US airports aren’t actually US citizens. Korean, Japanese, Chinese, Indian, Russian, Brazilian, Dominican and Puerto Rican travelers, just to name a few, are all purchasing a lot of goods at US airports. Even though the economic situation in the US is a bit soft at the moment, it turns out that we have quite a resilient, nicely growing business there, especially with super premium and ultrapremium brands. When Chinese and Indian travelers enter a duty free store, for example, they’re not looking for your standard whisky or vodka. They’re looking for Royal Salute Diamond Jubilee or Ballantine’s 17YO Limited Edition. This holds true

“Premiumization is something that Pernod Ricard has been developing for a while now. I want to accelerate that. I’m not interested in going into the low end of the market.” Franck Lapeyre, CEO, Pernod Ricard Americas Travel Retail

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in the US just as it does anywhere else. In short, in travel retail in the US specifically, we are benefitting a lot from this flow of knowledgeable customers who have an eye toward highend spirits. ADF: How is Pernod Ricard Americas Travel Retail making this most of this boom in Asian and South American travelers? FL: We’ve boosted our research budget in order to get more information to find out who is traveling, where they’re traveling and what they’re looking for. I think this is very important. It seems to me that the wines and spirits industry is still a bit shy to get into research and understanding more specifically what the consumers want. There’s an attitude that whenever something is launched in the domestic market, it should automatically be in travel retail. Pernod Ricard Americas Travel Retail is challenging that notion. We completed some shopper insight research earlier this year and Royal Salute Diamond Jubilee, a luxury whisky lover’s dream, will have more of a presence in US duty free in the months to come


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Pernod Ricard Americas Travel Retail

will be releasing the results shortly. We are also planning some research on Brazilian duty free and in the Dominican Republic, and this will begin in the coming months. This stems from the need to better understand who the consumers are and what they’re looking for and then adjust our range and assortments accordingly. ADF: What’s upcoming in terms of new product releases? FL: We’re going to be launching several new SKUs this year [Ed. Note: See page 150 for more details on TFWA WE launches from Pernod Ricard Travel Retail Americas]. There are going to be a lot of things presented to our customers this year. A good example was this year’s IAADFS show, where we featured ABSOLUT ELYX, which has been performing very well, and the new Jameson Limited Edition. We will also have a new Chivas Regal global travel retail exclusive coming up very soon. There’s also something quite unique on ABSOLUT in the pipeline as well. Premiumization is something that Pernod Ricard has been developing for a while now. I want to accelerate that. I’m not interested in going into the low end of the market—I’m interested in exploring the 18, 21 and 25YO whiskies and to push even further in terms of premiumization. When consumers go into airports or on a cruise, it’s true that sometimes what they’re looking for is the brand that they regularly buy but at a lower price. However, more and more consumers—and especially Asian, Brazilian and Russian consumers—are looking to uptrade to something that they wouldn’t normally buy in their domestic market. If it’s well presented, they can taste it and the price is right, we’re finding that more and more they’ll go for it. So in this sense I see a lot of opportunities for expressions like Chivas 18YO, Royal Salute 21YO and ABSOLUT ELYX.

“Priority.” We’re a relatively small organization—76 people—taking care of travel retail across the Americas and the domestic markets in the Dominican Republic and the Caribbean islands. We have limited resources and we need to concentrate our efforts. We have identified about 15 key brand-market combinations (BMCs) where we’ve determined that we need to spend most of our time and effort, becoming more aggressive and bringing exclusive offerings and promotions to the operators. Some examples would be US duty free for ABSOLUT, Chivas Regal, Royal Salute and The Glenlivet; the Dominican Republic with Chivas Regal; and Brazilian duty free for ABSOLUT and Chivas Regal. There’s been a complete reallocation of a lot of resources that were previously concentrated on smaller markets. ADF: What’s the third P? FL: The third “P” is “Partnership.” Research, limited editions and the development of new SKUs is something that we need to do hand in hand with the industry. Prior to this we were very much in a buyer-seller relationship. I want to concentrate more on premium SKUs and focus more on key markets. The best way to do this is to brainstorm with our customers to better understand what works and what doesn’t. This collaboration is key to offering the right product at the right price with the right promotions as opposed to offering the same thing everywhere. In fact, there’s really no other way to accomplish this than by strengthening relationships with our buyer partners. This, in a nutshell, is the new, aggressive direction we’re taking. The inspiration really comes from Asia. We can’t stand still; we must be more innovative and more aggressive. This is the mindset that my team is fostering.

ADF: Are there certain areas of the Americas where you’ll be concentrating on pushing premiumization? FL: Our new strategy can be called the “Three Ps,” with “Premiumization” being the first of these. The second pillar is From the US to the Dominican Republic and Brazil, Chivas Regal will be an area of concentration for Pernod Ricard Americas Travel Retail

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ADF: Having come from Asia I’m curious as to your opinion of US duty free as compared to duty free in Asian airports. Many in the industry often point out that there seems to be a bit of a gap in terms of luxury retailing between the two regions…

Franck Lapeyre asserts that limited editions such as Ballantine’s 17 Year Old Signature Distillery - Glenburgie Edition are just the type of high-end spirits travelers in the Americas are looking for

FL: It’s true that it’s a different business model in the US as compared to Asia. However, this is changing. Look at five years ago in the US and where the industry in the region is today. For example, DFA has done a great job and things are moving in the direction of Asia in terms of the shopping environment. International Shoppes has also made some fantastic inroads. I believe that the strong influx of Asian, Russian and South American travelers will change the landscape of airport retailing dramatically. This is happening now and I think it will only accelerate in the years to come. Operators, suppliers and the industry in general are opening their eyes to the fact that we need to develop something different. ABSOLUT ELYX, Chivas Regal 18 and 25YO, Royal Salute Diamond Jubilee and some upcoming SKUs are, at their very core, ways of addressing consumers’ desire for more exclusive and luxurious brands in US duty free. It is our responsibility to engage operators to enhance the way we present our brands. In Brazil, for example, we’re changing the displays for ABSOLUT to something much more luxurious. I think this shift to premiumization is happening now and in five years’ time we could have this conversation again and most US airports will be largely on par with Asian airports. Cosmetics companies have been very good at grasping this trend. Pernod Ricard is also embarking now on trying to change the c travel retail landscape.


Bacardi

A star-studded

activation Bacardi celebrates the art of cinema with a large-scale Grey Goose activation at Toronto Pearson Airport Terminal 1 BY RYAN WHITE

The Bacardi Bar in Terminal 1 Departures has been rebranded as a Grey Goose bar, complete with trained mixologists and hostesses

he Toronto International Film Festival (TIFF) gets bigger and bigger each year, and Bacardi’s French vodka Grey Goose has been a key part of the festivities for four years running, hosting screening parties at highend venues around town and serving signature Grey Goose cocktails to stars and fans alike. This year, though, Bacardi celebrates its 150th anniversary, meaning that there is more reason than ever to celebrate. As such, the supplier ramped up activities in Toronto with a largescale activation at Pearson Airport in addition to its usual about-town events. In cooperation with HMSHost, the Bacardi Bar in Terminal 1 Departures has been rebranded as a Grey Goose bar, complete with trained mixologists serving signature Grey Goose cocktails and hostesses informing travelers of a

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related promotion on Grey Goose (two bottles for CAD$86) just down the hall at Nuance stores. Of course, with its annual Cruise Competition, Bacardi is a driving force in promoting mixology, and drinks cards with the recipes of each drink are also available for travelers who would like to give the signature Grey Goose cocktails a try at home. The activation continues in Terminal 1 Arrivals, where a sampling bar is set up. Hostesses, trained by Bacardi’s Global Brand Ambassador Marc Plumridge, offer travelers of legal drinking age the Grey Goose Le Fizz, one of the signature cocktails served in Departures, and also give tips on where to see the biggest celebrities during the star-studded week. Handy Grey Goose pocket maps are also given out as a quick resource for movie lovers. The maps highlights not only areas

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

where the stars go to party, but also on-trade establishments that are recognized by Bacardi as being the best of the best for finding a Grey Goose cocktail. “Grey Goose has a global strategy that’s based around film, awards and festivals, so this activation is a perfect fit,” says Angelito David, Bacardi Global Travel Retail’s Trade Marketing Manager – Americas. “The beauty about Pearson is that everyone who flies to Toronto comes directly past our sampling bar. We’re really pleased with the way the activation turned out, thanks in a large part to our partners the Greater Toronto Aviation Authority, HMSHost and Nuance.” For obvious reasons, Bacardi Global Travel Retail is more accustomed to putting on activations in departures, but David told us that the clear links to the movies and the on-trade


(from left) Jessica Halloran, Trade Marketing Assistant at Bacardi; Angelito David, Trade Marketing Manager - Americas Travel Retail at Bacardi; Andrew Ratner, Vice President Buying,Merchandisng and Operations at The Nuance Group; and Todd Cooksley, Area Sales Manager at Bacardi

have given the company an opportunity to do something a little different in arrivals. “It really makes all the sense in the world,” he explained. “In arrivals, of course, we can’t sell anything, which gives us the opportunity to really concentrate on helping to promote our premiere parties in the city and our domestic team. Furthermore, it’s a fun way to engage with travelers and have them sample one of our delicious Grey Goose cocktails. And speaking of the cocktails, Marc Plumridge was on hand at Toronto Pearson Airport when Americas Duty Free visited to give us his take on the importance of interaction with travelers: “Generally when travelers sit down at the Departures bar we welcome them with a complimentary Amuse Bouche,” he explained. “It’s a simple combination of guava, Grey Goose La Poire, a touch of lemon juice and a bit of

maraschino. The idea is to give travelers time to peruse the menu and decide what drink they’d like to enjoy next. It’s a great environment to sit and relax—certainly not your average airport bar.” Indeed, the retrofit of the Bacardi Bar in Terminal 1 Departures is a brilliant accomplishment on the part of Bacardi and HMSHost. In fact, the word “retrofit” belies the high-end feel of the location. Decked out in the signature colors of Grey Goose vodka, an adjoining restaurant area is matched to the bar and serves a

selection of delicious food themed according to countries of the world. “Whether people love Grey Goose or aren’t familiar with the brand, we feel that this activation has something for everyone,” says Todd Cooksley, Area Sales Manager at Bacardi Global Travel Retail. “It’s a great example of an activation that is beneficial for everyone involved— the operators, the airport authority, the city of Toronto, the brand and perhaps most imporc tantly the travelers.”

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

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Edrington

Rare offerings

Two new Highland Park vintages, a pair of limited editions from The Macallan and a new ultra premium Brugal rum take center stage for Edrington at TFWA WE BY RYAN WHITE FWA World Exhibition gives us an excellent opportunity to showcase some of the innovations which Edrington is offering,” says Edrington Area Director Steven Sleigh. At the supplier’s booth this year will of course be Brugal 1888, first introduced to travel retail at IAADFS 2012. Additionally, Edrington is showcasing a new ultra premium Brugal variant called Papá Andrés. For whisky lovers at the show, Edrington will also be showcasing two new Highland Park vintages and the third in a series of limited edition Macallan travel retail exclusives. Finally, the show serves as an excellent Brugal 1888 was vehicle to show off The Black Grouse, which was bot- first introduced to travel retail at tled for the first time in March, and the new-look IAADFS 2012 and has since then Cutty Sark, which is now being rolled out worldwide. received a warm While details about Brugal’s new Papá Andrés were welcome from travelers scant at press time, Sleigh told us that the rum is ultra premium and has been enjoyed by the Brugal family for five generations. “Until now it has never been available for sale,” he explained. The launch will be “high profile,” says Sleigh, with an invite-only event complete with tasting led by fifth-generation Maestro Ronero Gustavo O. Zeller. As mentioned, whisky fans will find Highland Park Vintage 2001 and Highland Park Vintage 1991 showcased at Cannes. The 2001, like the earlier 1998 Vintage, emphasizes the smokier side of Highland Park because more first fill American oak casks were used in the maturing process. The sweeter notes from the American oak allow the smokier character from the distillery’s unique peat to be more pronounced. The 1991, on the other hand, uses a backbone of American oak casks balanced by a surprisingly rich and evocative sweet spiciness from first-fill European oak casks. “Additionally, on display will be the third in a series of limited edition travel retail exclusives, The Macallan 1824 Collection Limited Release MMXII,” Sleigh told us. “Just 1,824 decanters of this single malt whisky, which has been selected from some of the rarest casks at The Macallan Estate, were produced for sale so it is very special indeed.”

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Investment plays key role The Famous Grouse portfolio, including The Snow Grouse and The Black Grouse, has been promoted with tastings with Dufry in Uruguay and Brazil, and with London Supply in Argentina, which Sleigh tells us has helped to raise the profile of the brand. In fact, the whole Edrington portfolio is widely supported across the key channels. The latest IWSR data shows category growth for both blends and malts in the Americas travel retail and Edrington 144

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The Highland Park 2001 Vintage emphasizes the smokier side of Highland Park as more first fill American oak casks have been used The Highland Park 1991 Vintage uses a backbone of American oak casks balanced by an evocative sweet spiciness from first-fill European oak casks

is a key player in this development. “Our investments in Americas travel retail are also supporting the domestic markets, where both Cutty Sark and The Famous Grouse are in the top five blends in the standard blended Scotch category,” Sleigh says. Brugal is known for being the number one rum brand in the Caribbean. The high numbers of Americans who travel to the Caribbean on vacation have helped to build the brand presence in the US domestic as well as in travel retail markets. “Our focus here is to invest behind our travel retail exclusive products to build the premium values of the brand,” Sleigh explains. Finally, The Macallan is the number two malt in the USA domestic market, but due to limited stock, Edrington’s focus in travel retail is on building the brand with visibility investments in key locations. Other activities of note are initiatives such as the Masters of Photography series, which reinforce the brand’s luxury credentials. The most recent Masters of Photography offering, the Annie Leibovitz Edition, sees Leibovitz bring to life the essence of the brand through her unique photographer’s eye, with renowned Scottish actor Kevin McKidd cast in the role of leading man. The Macallan Masters of Photography: Annie Leibovitz Edition comprises 1,000 limited edition bottles, of which there are four different versions. Each bottle contains one of four unique single malts, crafted to reflect the mood of the signed Annie c Leibovitz print that it is paired with.


Never one to skimp on quality, Patrón has used their bestselling Patrón Silver tequila in the production of Patrón XO Cafe Dark Cocoa

Patrón

The darker

BY

Patrón XO Cafe Dark Cocoa originally launched as an exclusive with World Duty Free Group in Birmingham before a wider rollout

ZUHAIR KASHMERI

side of tequila

Patrón brings XO Cafe Dark Cocoa coffee liqueur—a whole new experience of the bestselling tequila—to Cannes for the first time ans of bestselling Patrón XO Cafehave something new to faun over with the release of Patrón XO Cafe Dark Cocoa coffee liqueur at Cannes. Notably, the product represents the first brand extension for the highly successful line. The company says their new product combines high-quality Patrón Silver tequila and the light essence of coffee with an “extraordinary chocolate flavor” to create something ultra-premium for the experienced palate. Earlier in the year, Patrón Spirits, World Duty Free Group and Birmingham Airport joined forces to install an Ice Bar on April 5 at the airport’s landside departures area, where passengers were able to sample Patrón’s ultrapremium tequilas and liqueurs, along with its Pyrat rum. Patrón used the opportunity to introduce XO Cafe Dark Cocoa, which was a European exclusive for World Duty Free Group and Birmingham Airport for a short period of time, making it the only European location in domestic or duty free where the spirit could be purchased. If the above isn’t enough, Patrón spokesperson Greg Cohen tells us that the company also plans to debut “a duty free exclusive package for our tequilas and Patrón XO Cafe liqueur— it’s a limited-edition collectable tin that we’ll be showcasing in Cannes.” After all, Patrón’s core competency is staked in tequila. Patrón Tequila has been recognized with numerous honors, including the American Academy of Hospitality Sciences’ "Five Star Diamond" award, Impact Magazine's "Hot Brand of the Year" award, and "Company of the Year" honors from the Beverage Forum. With this type of recognition, it’s no wonder that connoisseurs recognize it as the world's number one ultra-premium tequila, available in 130 countries. But Cohen points out that the company doesn’t rest on its laurels. “We continue to promote our high-quality luxury spirits across

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The recent Patrón XO Café promotion at London Supply; the brand sees cooperation with operators as vital to success

the globe through tastings, impactful displays, relevant and useful GWP offerings, in-airport advertising and staff education,” he says. When asked to elaborate on the company’s partnership initiatives and new marketing ventures, he says that Patrón works very closely with its duty free partners to develop programs that meet the needs of both operators and consumers. “We do not believe in the onesize-fits-all approach,” he said. “Rather we engage with travel retail operators to tailor initiatives to their individual needs.” Cohen gives the example of how Patrón, with help from London Supply, successfully promoted the recent listing for Patrón XO Cafe. Given the extremely sophisticated and selective consumers in the area, Patrón decided to develop a program with the operator that offered “a designer-quality bag to consumers who purchased three bottles.” Patrón then went further by supporting the initiative with tastings. Cohen points out that duty free operators across the globe have begun to discover the significant profit potential of the ultra-

All of Patrón’s tequila products are made using 100% Blue Weber agave

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premium spirits that are the hallmark of Patrón. “We are very committed to supporting all of our brands—Patrón tequilas, Patrón XO Cafe, Ultimat vodka and Pyrat rum—to help raise awareness for our spirits and create a consumer pull,” says Cohen. Indeed, such drive is not new at Patrón. It goes back to the inception of the company when two visionaries, Paul Mitchell Systems co-founder John Paul DeJoria and entrepreneur Martin Crowley, formed The Patrón Spirits Company with the goal of producing "the best tequila in the world." They took the 100% pure Blue Weber agave, grown in the hills of Jalisco Mexico, and blended traditional techniques with modern technology, effectively creating the world's first ultrapremium tequila. Since that time, the company’s growth has been staggering. Patrón Tequila continues to set new sales records every year, and was the first spirit brand in its price-point category to sell one million cases. With the release of Patrón XO Cafe Dark Cocoa, Patron’s portfolio now consists of a very respectable c eleven ultra-premium products.


William Grant & Sons

Beyond compare

William Grant’s 125th year turns into a medal bonanza for its celebrated Scotch whiskies BY ZUHAIR KASHMERI lenfiddich, the world’s most celebrated single malt Scotch whisky, is celebrating the 125th anniversary this year of the very first bottle that was distilled at the distillery built by William Grant, and the year is proving to be auspicious—the celebrated whisky has picked up 11 medals at some of the most prestigious wine and spirit shows. In July, as the world awaited the start of the Olympics in London, England, the Scotch was awarded a total of six “gold outstanding” and “gold” medals in the 2012 International Wine & Spirit Competition (ISWC), a fitting tribute to a century of pioneering efforts of the original William Grant. After blind taste assessments by a panel of specialist judges, Glenfiddich 15 Year Old picked up the highly coveted gold outstanding medal for its balance of warm spice with honey and rich fruit flavor. In addition, Glenfiddich was also awarded gold medals for five of its other outstanding whiskies: Glenfiddich Malt Master Edition Sherry Cask, Glenfiddich Snow Phoenix, Glenfiddich Age of Discovery Bourbon Cask Reserve 19 Year Old and premium Glenfiddich 30 and 40 Year Old. In addition, the prestigious gold medals

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were won less than a fortnight after Glenfiddich Single Malt Scotch Whisky had been awarded a trio of gold medals at the International Spirits Challenge. Impressing judges with its exceptional whisky making and against tough global competition, the premium whisky brand won a staggering 11 medals. “We are thrilled and proud,” said Brian Kinsman, Glenfiddich’s Malt Master. “The medals recognize the hard work of all the craftspeople and fulfill the vision of our founder, William Grant, who set out to create ‘the best dram in the valley’ 125 years ago.” He had reason to be proud. Founded in 1969, the International Spirits Challenge has evolved in recent years and has become the leading event in promoting quality spirits from around the world. This year the competition received 1,000 entries from over 70 countries. Each whisky underwent a blind taste test from each member of the judging panel, which comprised whisky experts from across the globe, and headed up by John Ramsay, who has worked in the whisky industry for over 40 years. In a statement rejoicing this win in August, William Grant and Sons said: “The latest medals mean that Glenfiddich has truly cemented its credentials as the world’s favorite and most awarded single malt Scotch whisky.” Grant’s blended Scotch also took home one gold and five other medals at the ISWC, while The Balvenie, described as “the most handcrafted single malt Scotch whisky,” picked up three gold medals at the same show. One of the gold medal winners, The Balvenie Tun 1401, also collected the top trophy prize for the best single malt with no age statement. The awards were an endorsement of The Balvenie Malt Master David Stewart’s work as he

The Balvenie Tun 1401 collected a gold medal and the top trophy prize for the best single malt with no age statement at IWSC 2012

celebrates his 50th year with the distillery. The ISWC, which aims to promote quality and excellence by judging on both blind tasting and detailed technical analysis, acknowledged the strengths at either end of The Balvenie’s range. The Balvenie DoubleWood Aged 12 Years and The Balvenie Thirty both collected gold medals. Commenting on the successes, David Stewart said: "There aren’t many of us at The Balvenie, but each brings a very specific craft to the production of our whisky and the release of Tun 1401 earlier this year was an excellent example of that harmonious work coming to fruition.” William Grant & Sons, Ltd. is an independent family-owned distiller headquartered in the United Kingdom and founded by William Grant in 1886. Today, the luxury spirits company is run by the fifth generation of his family and distils some of the world’s leading brands of Scotch whisky, as well as other iconic spirits brands such as Hendrick’s Gin, Sailor Jerry and Tullamore Dew Irish Whiskey. c

"There aren’t many of us at The Balvenie, but each brings a very specific craft to the production of our whisky.” Glenfiddich has now cemented its place as the world’s most celebrated single malt Scotch whisky

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David Stewart, Malt Master, The Balvenie


Liquor News

Celebrating 150 years of legendary parties, Bacardi has announced the 8th annual Bacardi Cruise Competition

Bacardi launches 8th annual Cruise Competition As Bacardí rum celebrates its 150th Anniversary, Bacardi Global Travel Retail has announced the launch of the 8th annual Bacardi Cruise Competition. Throughout its 150-year history, Bacardí rum has inspired the creation of many legendary recipes and now it's the turn of the talented crews onboard cruise and ferry lines as the Competition welcomes entries for the Bacardi Bartender of the Year and Bacardi Chef of the Year Awards, with each winning a prize of US$5,000. Onboard bartenders or chefs who want to join the many legends inspired by Bacardí over the last 150 years by making their mark in the mixology or culinary worlds should go to www.bacardicruisecompetition.com to enter their original recipes. “To celebrate the 150th Anniversary of Bacardí rum, we are offering more cash prizes than ever before and new categories to give even greater opportunity for onboard bartenders and chefs to express their creativity,” said Zachary Sulkes, Regional Manager, Bacardi Travel Retail Americas. New cocktail categories give bartenders the opportunity to use any of the premium products in the Bacardi portfolio to create a highball, rocks or martini cocktail, while chefs can also take

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their pick from the extensive Bacardi portfolio to create an appetizer, entrée or dessert. In addition, the new signature cocktail/dish category features one of the newest and most exciting additions to the Bacardi portfolio, Bacardí OakHeart, a bold spiced spirit drink of premium rum. As part of its celebration of 150 years of legendary parties, Bacardi Global Travel Retail is also offering the crew that enters the most cocktail and culinary recipes its own legendary onboard party—a truly memorable prize, which was won last year by Royal Caribbean International’s Allure of the Seas. “Collaborating with our cruise channel partners, the Bacardi Cruise Competition has inspired the industry’s talented bartenders and chefs to deliver an increasing level of quality and innovation in their food and drink offering for travelers,” added Zachary Sulkes. “Last year, the competition attracted a record-breaking 1,850 entries and we’re hoping to inspire even more talented cruise and ferry line professionals to take part this year.” The deadline for entries for the 8th Bacardi Cruise Competition is November 30, 2012 and the winners will be announced at an awards event in March 2013.


Old Ballantruan retains the smoky phenolic notes that characterize Islay malts, but with a slight sweetness associated with the normal Tomintoul “unpeated” whiskies

Angus Dundee to showcase newly launched Old Ballantruan Aged 10 Years At this year’s TFWA WE, Angus Dundee will be showcasing a new version of Old Ballantruan aged 10 years. Old Ballantruan retains the smoky phenolic notes that characterize Islay malts but in the background there is a slight sweetness associated with the normal Tomintoul “unpeated” whiskies, which is attributed to the distillation process. Indeed, Tomintoul Distillery has created a mature peated Scotch whisky of exceptional quality which can compete with the best brands. This 10 years old release is bottled at 50% ABV and un-chill-filtered. The majority of whisky brands are bottled at 40% ABV and are chill filtered prior to the bottling process to remove the fatty esters which, if not removed, would turn the

whisky slightly hazy. There is a suggestion that chill filtration removes some of the congener profile from these whiskies and that by not chill filtering the whiskies retain more flavor. Above 46% ABV the haze elements are not apparent, and therefore un-chill-filtered whiskies, including Old Ballantruan, are preferably bottled at higher strengths. The 50% target was selected as being different to the other peated single malt whiskies which were on the market. The bottle color and outer packaging reflect the color of the natural peat burnt during the malt drying process. To learn more about Old Ballantruan aged 10 years, visit Angus Dundee Distillers at stand L55 in Green Village.

Chivas Regal launches global travel retail exclusive The Chivas Brothers’ Blend Chivas Regal launched The Chivas Brothers’ Blend, the new ultimate whisky to share, on October 1, 2012, exclusively to the global travel retail channel. This perfect expression of the smooth Chivas style will be a permanent part of the Chivas portfolio and will be available only to shoppers in travel retail. This is the first product launch for the brand since Chivas Regal 25 Year Old was relaunched in 2007. Paying a contemporary tribute to Chivas Regal’s rich history, the brothers and their legendary blending skills is The Chivas Brothers’ Blend—a thoroughly modern whisky that is ultra smooth and perfect for sharing. This unique 12 year old blend uses a carefully selected range of malt whiskies, including high proportions of Strathisla and Longmorn Speyside malts, in order to recreate the extra smooth taste that made Chivas Regal’s whiskies famous. The Chivas Brothers’ Blend has a rich amber color that bursts with ripe soft fruit flavors including peach and pear, and accented with honey, marmalade and soft candy. The rich taste echoes the nose of fresh fruit flavors, giving way to a sweet, creamy texture. The Chivas Brothers’ Blend bottle and carton design is both unique and striking in its bold use of purple. With the etched Chivas Regal family crest on the bottle, it marries both tradition and modernity to create a product that has a regal nobility and great stand-out. The entire concept of The Chivas Brothers’ Blend brings to life the current consumer trend of revivalism, where iconic items are pulled from history and refreshed for today. Following the global travel retail teaser campaign “A New Arrival from Chivas” to fuel travelers’ excitement and curiosity, Chivas Regal will create a consumer journey in airports around the globe. From the point of arrival to the moment of departure, travelers can experience an eye-catching activation involving out-of-store theatre, digital interaction, innovative consumer engagement activities and more. James Slack, Global Brand Director, Chivas Regal, says: “We

are delighted to launch The Chivas Brothers’ Blend exclusively in travel retail and offer a new Chivas Regal product which focuses on our heritage of craftsmanship blended with a modern twist. The result is an ultra-smooth whisky for today’s travelers who are looking not only for brand innovation but also The Chivas Brothers’ Blend is an experience. The Chivas Brothers’ a unique 12 year old blend that uses a carefully selected range Blend is the ultimate whisky to share.” of malt whiskies, including high proportions of Strathisla and Longmorn Speyside malts

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Liquor News St-Rémy à la Crême displayed at Peninsula Duty Free in Canada; Rémy Cointreau GTR is planning a larger rollout to the US for the highly popular brandy liqueur

Rémy Cointreau GTR innovates across its portfolio for TFWA WE Americas Duty Free recently had the opportunity to speak with Matthew Hodges, Marketing and Business Development Director for Rémy Cointreau GTR, about what the company has planned for this year’s TFWA WE in Cannes. He tells us that as usual, Rémy Cointreau is constantly innovating and will have a number of new products this year. At TFWA WE, Rémy Cointreau GTR will be exhibiting the 2013 limited edition Rémy Martin VSOP Cannes; St Rémy à la Crême, which has to date been seen only in Canada; the Metaxa 5 Stars Rising Sun Limited Edition; a new design for Russian Standard Gold; and the new Piper Heidsieck range. In terms of recent promotional activity and launches in the Americas specifically, Hodges tells us there’s been plenty going on: “The bright blue Mount Gay Rum Eclipse G, the second in

our nautical flag series, was released in the Americas this summer,” he explains. “It makes a powerful visual impact in store and has performed well. Furthermore, Cointreau Mabille, created by fashion designer Alexis Mabille using his signature bow tie, was previewed in Europe and then rolled out with themed merchandising in the US.” Cointreau is favored as a cocktail base among leading bartenders and Hodges reports that this limited edition is performing well as a gifting purchase in metropolitan airports like New York and LA. St-Rémy à la Crême has enjoyed success north of the US border and Rémy Cointreau is now hoping to continue this success in other parts of the world. The variant was released in Ontario, followed by Quebec and BC, with a fabulous “agricool” display of cows and grass to pick up on the creaminess of the brandy liqueur. “We expect to release it in the ‘fertile meadows’ of the US markets soon,” Hodges quips.

It’s no secret that Rémy Cointreau’s brands, especially the Cognacs, are outperforming their respective categories in Asia, and thankfully the not insignificant number of traveling Asians is picking up the slack from the still slow economy in the US: “All our brands, but particularly Mount Gay Rum, Rémy Martin and St-Rémy, are performing pretty well across the Americas market with growth from Asian consumers compensating for the downturn in sales to travelers from Europe,” he explains. With more innovations in the pipeline, including another limited edition Rémy Martin bottle designed to appeal to the Asian traveler, it appears that Rémy Cointreau GTR is The bright blue Mount Gay Rum Eclipse G, the second in the nautical flag series, was released in the Americas this summer

White Gold targets worldwide consumers | with redesigned “True Original” bottles Russia’s largest vodka maker is continuing with a redesign of its bottles that it started at the beginning of this year, offering a cleaner look in the bottle that houses the White Gold Original Vodka and removing many of the excessive details on the earlier bottle. White Gold CEO Kirill Kirakozov says White Gold’s bottle the company’s products are now famous redesign reflects the fact that the company’s all over the world, thus widening the conconsumer based has expanded significantly sumer base and making it necessary for in recent years the company to reach out to vodka

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drinkers in diverse countries. The bottle redesign, he says, reflects this hugely expanded consumer base. While retaining its attractiveness for Russian vodka lovers, Kirakozov says that the brand has now “become international and we must think not only about consumers in Russia but worldwide.” In addition to the physical redesign, the signature of Graph Sheremetev, a long-time feature of the bottle, is being replaced with the words “True Original,” symbolizing purity without additives and targeting the “true original man” as the ultimate consumer.


Prowood offers premium Arman Cognac from France, Kilikia brandy from Ararat California-based Prowood Wine & Spirits’ (PWS) offering in Cannes this year is steeped in the mystique and luxury of premium spirits.The brands showcased are led by the aromatic and spicy but delicate Arman Cognac from France and an Armenian brandy called Kilikia, made from finest grapes grown in the Ararat Region. The importer and distributor of exclusive brands for the United States, Canada and Mexico, PWS is billing Arman Cognac, available in both the XO and VSOP expressions, as the jewel in its portfolio, with the “Signature of a royal man.” The company says Arman Extra Old Cognac is a blend of a hundred rare and selected eaux-de-vie from the premier growing areas of France kept in oak barrels for 20 to 50 years to achieve perfection. Kilikia brandy, on the other hand, is available in the XO expression and is named after the Armenian kingdom called Kilikia or “Little Armenia.” This Brandy is aged for 10 years. After tastings, experts described it as strong yet delicate, while at the same time leaving a definite hint of toasted wood and touch of cinnamon. “Since we established PWS in PWS is billing Arman 2003, we have continued to expand Cognac as the jewel in its portfolio, while the portfolio by responding to conKilikia brandy is aged for 10 years and sumer's desire for quality and described as strong exceptionally smooth spirits,” says yet delicate with hints of toasted wood and PWS owner and President Henrik cinnamon Sargsyan. “And that is why we observe the market situation with attention, to do our best to provide quality spirits with excellent taste and one of a kind packaging.” In the US, the company also actively targets different markets with strong promotional media support and sponsorships. It sponsored the USA and World Bartenders' Championship in 2006 and participated in the "internationally spirited vodka sipumentary." The company says that over the past few years it also has become one of the largest importers and distributors of Russian vodka in the US. The company’s namesake brand has three variants: White Gold Original, White Gold Premium (which contains a drop of ginseng extract and whose bottle was also redesigned earlier in 2012) and White Gold Black Edition (positioned as the ultimate vodka for cocktails). The company says that the White Gold brand makes up almost 14% of the premium vodka segment in Russia and is the number one premium vodka brand produced in Moscow. In 2011, the company sold more than 2.5 million 9-liter cases of vodka worldwide. White Gold, the company says, has gained listings with Gebr Heinmann, Aer Rianta International and Dufry Group since it was first launched in the travel retail channel in 2009. In 2011, White Gold and Russian Gold reached numbers 26 and 29, respectively in the top 50 vodka brands in duty free worldwide.

Armand de Brignac Troligie, a beautiful suitcase with two bottles of brut gold and one bottle of Rosé, has been launched with Dufry in selected locations in the Americas

WEBB unleashes special push for the “Champagne of Champions” WEBB, the Florida-based distribution company with an impressive stable of brands, is focusing on Armand de Brignac Champagne and by fall will already have both the Rosé and Brut Gold in all Dufry stores in Santo Domingo, Houston, Aruba, Newark, Seattle and Mexico City. “Sales have been going very well,” said WEBB’s Managing Partner Andy Consuegra just before press time. “We are about to launch Armand de Brignac in the new Nuance store in Las Vegas.” The Champagne with an elite history behind it has already become a top selling brand for WEBB, which is distributing it in travel retail throughout the Americas, as well as domestic markets in the Caribbean and South America.” Consuegra adds that in Dufry, WEBB has rolled out the Armand de Brignac Troligie, which is “a beautiful suitcase with two bottles of brut gold and one bottle of Rosé. The Armand de Brignac Trilogie has been extremely well received by staff and consumers.” Armand de Brignac has been produced by the Cattier family since 1763, who also grow their own grapes in large vineyards in one of the more picturesque areas of the Champagne region. The family continues to run the operation privately with a staff of less than 20, storing the Champagne in what is considered one of the deepest cellars in the region. “Armand de Brignac was rated the number one champagne in the world in 2010 by Fine Champagne magazine and has become the brand for championship celebrations,” says Consuegra. “WEBB is thrilled to be working with Dufry to introduce this brand in travel retail.” Indeed, pop culture is replete with nods to Armand de Brignac. Most recently, following their series-clinching Game 5 victory in basketball’s NBA Finals, the crowned champions Miami Heat celebrated at Miami’s LIV Fontainebleau with Armand de Brignac.

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Liquor News The Atlantico range of fine rums; singer Enrique Iglesias is a part owner in the brand

MONARQ spreads

its wings over the Americas with products and partnerships

MONARQ Group, the drink distribution and marketing company named after the famous butterfly whose migration all over the Americas has amazed ecologists, will be running a special promotion with Disaronno in Caribbean duty free retail and with Heineken’s James Bond liter bottles in Latin America duty free in the fourth quarter of 2012. In addition, Robert de Monchy, Managing Director and owner of MONARQ, says that the company is involved in a number of partnership promotions in Latin America and Caribbean duty free, most recently with London Supply‘s flagship border retail store in Iguazú, Argentina. He notes that other partnerships involving Heineken and Molinari Sambuca, “the number one Sambuca in the world,” have also taken place. As with its butterfly namesake, the company is hoping to spread its wings even wider in the Americas. In order to cover the Americas duty free markets more efficiently, MONARQ opened an office in Miami, Florida in the Brickell business district. The office is headed by Geoffrey Markle, Regional Director Caribbean & USA duty free. Overall, says the company, 2012 has been a very active year for MONARQ. Midyear it added two specialized products to its portfolio for the duty free channel. One was

Atlantico Rum, the super premium rum of coowner Enrique Iglesias, and the other the Morrison Bowmore portfolio. “Bowmore is nowadays the number two malt whisky in Europe duty free and we are currently introducing the brand throughout Latin America & Caribbean duty free,” says the company. “Besides Bowmore, we are focusing our efforts on Auchentoshan, the fastest growing malt whisky in this category.” MONARQ bills itself as a one-stop shop for the distribution and marketing of leading

The Black Grouse Alpha Edition wings its way to a silver medal The Black Grouse Alpha Edition, the latest premium blended Scotch whisky from the makers of The Famous Grouse, has been recognized by the International Wine & Spirit Competition 2012. The highly respected awards body gave the premium blend a silver medal in the Scotch Whisky Deluxe Blend (no age stated) category. The accolade was awarded by a panel of respected industry experts after a rigorous two stage judging process including a professional blind tasting and detailed analysis. To ensure perfect conditions the IWSC premises included temperature-controlled cellars and three dedicated tasting rooms. The Black Grouse Alpha Edition is exclusive to travel retail through September at selected airport stores, including London Heathrow, Edinburgh, Amsterdam, Paris and Moscow Sheremetyevo. It will also be featured at the

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independent drinks brands in the domestic and duty free channels of Latin America and the Caribbean, and duty free only in North America. Its specialists are continually identifying potential consumer needs and market opportunities. In addition to spirits, wine and beer, the company also markets mixers and other peripherals such as Mr & Mrs T, Clamato, ReaLemon & ReaLime and Rose's.

The Black Grouse Alpha Edition is exclusive to travel retail through September at selected airport stores

Scandlines Border shop in Puttgarden and on Tallink Silja and Birka Eckero ferries. Glen Gribbon, Director, The Famous Grouse, commented: “Since we launched Alpha Edition in April it has attracted a flock of new admirers. It’s fantastic that our whisky’s rich and smoky taste has impressed the highly esteemed judges of the IWSC.” The Black Grouse Alpha Edition is a richer, smokier expression of the award winning The Black Grouse and is created by blending a greater concentration of aged, peaty malt whiskies to achieve a fuller, richer whisky. The Black Grouse Alpha Edition will also be available from The Famous Grouse Experience in Scotland, online and at selected domestic retail outlets from October.


World of Patria launches Insignis Collection at Cannes as first-time exhibitor Premium wine, beer and spirits distributor World of Patria International (WOPI) has announced that it will be exhibiting for the first time at the upcoming TFWA World Exhibition (Blue Village, G13). WOPI will focus on its portfolio of exceptional quality and award-winning spirits, also highlighting the First Cape range of wines and its sponsorship of the British Lions Tour in WOPI is inviting visitors to Blue Village Australia and Hong Kong next year. G13 for “Follador at Key to WOPI's portfolio is its Five”—from 5 pm newly created Insignis Collection daily—to enjoy a chilled glass of of award-winning, highly rated and Follador Prosecco Torre di Credazzo exceptional quality spirits to savor and enjoy. This exceptional range comprises The Last Drop, the Douglas Laing range of Scotch Whiskies, Wemyss Vintage Malts, Orbis Aged World Whiskey, Snow Queen (Organic) and Chase English Potato Vodka, together with Darnley's View Gin. “We are now developing such a superb range of highly acclaimed spirits that we felt the need to create a specific category for the top rated and awarded expressions,” says Kevin Baker, WOPI Director. “The Insignis Collection relates to the score out of 100 given to the whiskies reviewed and rated in Jim Murray’s Whisky Bible 2012.”

Lions Tour The fourth largest wine brand in the UK, with increasing distribution in Europe, First Cape offers a range

of white, red and rosé wines plus a recently introduced lighter alcohol Café Collection which aims to become a 5 million case brand in the UK. Baker continues: “There is a huge amount of First Cape activity around the British & Irish Lions Tour, which takes in parts of Asia on its way to Australia. The brand is committed to extending this into travel retail with a significant investment in merchandising and promotional materials, including pop-up stores and high profile promotion ideas.”

Travel retail exclusives The Cannes show will also see World of Patria introducing several new lines to its portfolio, including Follador Superiore Cuvée Torre di Credazzo, a premium Prosecco which has been selected as exclusively available to travel retail. Also exclusive to travel retail are Firstland Glacier Wines, fine dessert wines grown and produced in the glacial terrain of New Zealand’s majestic South Island. These sweet wines have a unique provenance and extraordinary quality. “We are also very aware that travelers are keen to find products not available in their home market and are working with brandowners to develop limited editions and exclusives,” Baker continued. “Now that we have the portfolio it’s a question of retailers having the confidence to give our brands space to prove themselves. TFWA World Exhibition is, of course, the global event and for us absolutely essential if we are to continue building distribution for our portfolio.” WOPI is also inviting visitors to Blue Village G13 for “Follador at Five”—from 5 pm daily—to enjoy a chilled glass of the wonderful Follador Prosecco Torre di Credazzo.

International Beverage brings new Balblair Vintage 1996 to Cannes International Beverage Holdings is to unveil a new vintage of Balblair Highland Single Malt Scotch Whisky at TFWA Global Exhibition in Cannes. The first release of the 1996 Vintage replaces the very popular 1995 Vintage and is to be available exclusively through global travel retail in one-liter bottles. Balblair has become established as a favorite of discerning whisky drinkers worldwide. As well as being the only distillery solely releasing vintage malts, the contemporary packaging design sets it apart and the traditional production methods, resulting in a single malt of rare quality. As with every expression, Balblair 1996 is un-chill-filtered, naturally colored and bottled at 46% ABV for maximum flavor delivery. Sparkling golden in appearance, this expression is full of fruit and spice on the nose with aromas of lemon, orange, toffee and coconut with an intriguing hint of subtle smoke. Maturation in American oak ex-bourbon casks has added characteristic sweet toffee and vanilla

flavors. Sweet and spicy on the palate, summer fruits and toffee combine with chocolate and coconut in a long, smooth finish. Distillery Manager John MacDonald observes of his latest selection: “Much time and care has gone into creating this new vintage and I am satisfied that all the hard work, dedication and devotion have paid off. I am confident that whisky enthusiasts worldwide will really enjoy this newest member of the Balblair family.” James Bateman, Global Travel Retail Manager for International Beverage, states: “Travel retail is a key sales platform in International Beverage’s brands strategy for 2012. The decision to launch the latest Balblair Vintage at TFWA Cannes underlines our commitment to invest in the global travel retail channel.”

Balblair 1996 is un-chill-filtered, naturally colored and bottled at 46% ABV for maximum flavor delivery

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Japan Tobacco International Winston’s shipment volume increased 8.4% driven by strong momentum in Russia, Italy, the Ukraine and other CIS+ markets; pictured is the new Winston smoking lounge at DXB

It’s

BY

RYAN WHITE

evolution,

baby JTI re-imagines the iconic Mild Seven brand with an eye on continued growth in the mid to long term after a solid first half of the year

n the heels of solid first half numbers, Japan Tobacco announced a complete redesign and name change for global flagship brand (GFB) Mild Seven. The brand will now be called Mevius and have a globally unified design. With active investment to strengthen brand equity and a greater presence around the world, Mevius is aiming to become the number one global premium brand. Mild Seven, known for its smooth cigarettes with a clean finish, has been the bestselling brand in Japan since 1978, a year after it was launched. JTI plans to roll out the new name and design across Japan, introducing the globally unified design in November 2012 while retaining the Mild Seven name, followed by the launch of the Mevius brand name in February 2013. Internationally, Mild Seven enjoys consumer popularity in markets including Taiwan, Korea, Malaysia and Russia. In markets where the new package design has been introduced, it already enjoys consumer popularity. The company plans geographic expansion after completing introductions of the new brand in existing international markets over the next 12 months. “The JT Group targets sustainable profit growth in the mid to long term, based on the ‘4S’ management principle of satisfying and fulfilling our responsibilities towards consumers, shareholders, employees and wider society,” said Mitsuomi Koizumi, President and Chief Executive Officer of JTI. “Tobacco is our core

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business and profit growth engine. By prioritizing investment in this business for quality top line growth and stronger business sustainability, we are targeting our tobacco business to grow EBITDA by mid to high single digits per year over the medium to long term. “Mevius is moving forward with a new name across the world, a unified global design and an expanded product portfolio in order to command a greater international presence by enhancing brand equity, aiming to become the number one global premium brand,” Koizumi concluded.

On the up and up According to the company’s most recent statistics, from April to June 2012 core revenue grew 2.5% driven by strong pricing, total and GFB shipment volume growth. At constant rates of exchange, core revenue grew 11.8% and core revenue per thousand cigarettes increased 8.6% over the same period last year. For January-June 2012, core revenue increased 6.6%, driven by strong pricing and GFB shipment volume growth. At constant rates of exchange, core revenue grew 13.4% compared to the same period last year and core revenue per thousand cigarettes increased 9.3%. Notably, total shipment volume grew across all clusters. GFB shipment volume grew 7.2% driven by Russia, Spain, Italy and Turkey. Year-on-year market share grew in most key markets, including Turkey, Spain, Italy, Canada and France. Total shipment volume and GFB shipment volume in South and West Europe decreased 3.5% and 2.9%, respectively due to ongoing industry contraction. Despite this, the overall performance was robust with strong market share gains in Spain, Italy and France. In North and Central Europe, total shipment

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

Popular brand Mild Seven is getting a makeover this year in the form of Mevius; the brand will have what JTI calls a “globally unified design”

volume decreased 1.8% due to industry contraction, mainly in the UK. GFB shipment volume increased 0.7% driven by growth in Germany and Austria. Market share grew in Poland and Germany. In CIS+ countries, total shipment volume grew 3.1% driven by 12.4% GFB shipment volume growth. GFB momentum continued in Russia and in several smaller markets. Market share in Russia grew for the second consecutive quarter on a three-month rolling average basis with continued GFB share growth. Finally, in the rest of the world, total shipment volume increased 7.7% driven by the acquisition of HCTF (+2.9% excluding HCTF). GFB shipment volume grew 1.3% mainly in Turkey, Taiwan and the Philippines. JTI also reports that market share grew in Turkey and Canada. In terms of the company’s global flagship brands, Winston’s shipment volume increased 8.4% driven by strong momentum in Russia, Italy, the Ukraine and other CIS+ markets. For Camel, shipment volume declined 2.9% due to industry contraction and down-trading in South & West Europe. However, JTI notes that this was partly offset by growth in Russia. Mild Seven shipment volume increased 1.5%, mainly driven by Taiwan as a consequence of last year’s trade inventory adjustments. Finally, shipment volume of LD increased 13.6%, driven by uptrading momentum in Russia. Volume also c increased in Turkey and Kazakhstan.


Selección Petit Robustos features two of each of the following brands in Petit Robusto size: Cohiba, Montecristo, Partagas, Romeo y Julieta and H. Upmann

Habanos BY

RYAN WHITE

Bringing out

the big guns This year sees the release of unique vitolas and duty free exclusives from some of Habanos S.A.’s most popular and sought-after brands 012 has already been a stellar year for Habanos S.A. During the Gala Evening at the hugely successful XIV Habanos Festival, two new Habanos were launched and sampled by attendees: the Romeo y Julieta Churchills Reserva 2008 and Romeo y Julieta Petit Churchills. The company also recently announced the launch of a new five-pack of H. Upmann Half Coronas in a metal tin and piqued the interest of cigar connoisseurs worldwide by announcing that the three brands to be honored with limited editions in 2012 are Montecristo, Partagás and H. Upmann. As if that weren’t enough, the latest news for Cannes is Selección Petit Robustos, an exclusive release for duty free and travel retail. Indeed, by all accounts handmade cigar fans certainly have a lot of new options to explore this year.

2

From success to success Following the 2011 launch of the 25-pack of H. Upmann Half Coronas and an excellent response from consumers, Habanos recently announced the worldwide release of a new presentation of H. Upmann Half Coronas—a five-pack of the sought after vitola in a metal case. Herman Upmann was a German banker whose passion for cigars inspired him to establish himself in Havana in 1840. He founded a bank and a cigar factory in 1844. Although the bank closed, his cigar brand is still considered a prime example of the craftsmanship that defines the highest quality handcrafted cigars. The H. Upmann Half Corona (44 ring gauge x 90 mm in length) is a short cigar that doesn’t give up the sensation of fullness that a Habano can offer. The blend of the brand is made with leaves from the Vuelta Abajo region in Pinar del Rio, Cuba. Furthermore, all H. Upmann Habanos are made completely by hand with long filler tobacco. 160

“H. Upmann Half Corona offers a smooth to medium flavor, and is very aromatic and balanced,” says Habanos. “It is ideal for consumers who wish to initiate themselves into the extraordinary world of the Habano.” H. Upmann Half Corona in the new five-pack will be available worldwide.

The big three Habanos also recently announced that the three brands that will be released in special limited editions this year are Montecristo, Partagás and H. Upmann. H. Upmann’s Edición Limitada will be the first to reach points of sale worldwide. Robustos (ring gauge 50 x 124 mm in length) is the size that has been selected for the H. Upmann Edición Limitada. Habanos notes that the Robustos size does not exist in the permanent H. Upmann range, but received a great response when it was launched in an exclusive travel humidor at Cannes in 2008. “The Robustos size is highly appreciated by Habanos smokers,” says Habanos. “They will now have the occasion to enjoy it within the H. Upmann brand with the 2012 Edición Limitada.”

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Selección Petit Robustos features two of each of the following brands in Petit Robusto size: Cohiba, Montecristo, Partagas, Romeo y Julieta and H. Upmann

Following the 2011 launch of the 25-pack of H. Upmann Half Coronas, Habanos is releasing a fivepack of H. Upmann Half Coronas in a metal case

All of the 2012 limited editions are made with longfiller completely by hand, with leaves coming from Vuelta Abajo (D.O.P), Cuba. They are produced in small quantities by expert Cuban cigar rollers so as to meet the expectations of Habanos enthusiasts worldwide. H. Upmann Robustos will be available in the classic H. Upmann labeled boxes of 25 units and have already made their way to travel retail outlets worldwide.

The spice of life Offering variety is certainly one way to the consumer’s heart, but when it comes to the traveling consumer, making sure that your wares come in a travel retail exclusive package is almost a sure recipe for success. As the name suggests, the new Selección Petit Robustos is a duty free exclusive pack that contains ten cigars that are sought after for their excellent flavor but also because of the fact that each can be smoked in just 20 minutes or so. Selección Petit Robustos features some of the brands that have made Habanos the go-to source for handmade cigars. In the bespoke wooden carrying case consumers will find two of each of the following brands in Petit Robusto size: Cohiba, Montecristo, Partagas, Romeo y Julieta and H. Upmann. c


Industry & Retailer News

Tobacco News

Tonino Lamborghini cigarettes were designed to be premium in every way and will be released this month at select airports throughout the Asia Pacific region

KT&G releases Tonino

Lamborghini cigarettes This month sees the launch of a new cigarette brand from KT&G developed as the result of a collaboration with the well known Italian luxury brand. The world’s first Tonino Lamborghini cigarettes contain premium smoking leaf tobacco—which represents only about 2% of the leaves grown in the world—and South European Orient leaves. KT&G says that the cigarettes offer “a soft throat and enriched taste,” and are designed to retain the optimal level of moisture for an improved smoking experience. Other high-end features include what KT&G calls an embossed “lip release filter.” The product features the familiar Toro emblem on the top of the package, the charismatic symbol of the Lamborghini family, to express strength, progressiveness and exclusivity. Two variants of Tonino Lamborghini have been released—L6 (6.0 mg of tar) and L8 (8.0mg of tar). Tonino Lamborghini will be available at China, Singapore and Hong Kong Airports from a unique taste and aroma. Showcasing a vintage package design, September 2012. Also new this year from KT&G is Bohem Mojito Double. KT&G says that Bohem Mojito Double is targeted toward stylBohem is made of 30% premium cigar leaves, giving the brand ish professionals who prefer a refined smoke. Ray Tobacco offers two brands of cigarettes— Walton, pictured here, and Ray, an American Blend), as well as Walton-branded whisky and beer

Villiger intro-

duces new mini cigarillo range

Ray Tobacco continues growing in travel retail

Hong Kong-based Ray Tobacco has made some significant inroads in travel retail in recent months. As a result of exhibiting at this year’s IAADFS and TFWA AP exhibitions in Orlando and Singapore, respectively, new listings have come online and promising contacts have been made that bode well for the supplier’s future in the industry. A triple threat, offering two brands of cigarettes (Walton, called a “Royal Blend,” and Ray, an American Blend), as well as Waltonbranded whisky and beer, Ray Tobacco has seen particular success in Egypt recently, with listings in some 50 points of sale—both airports and border stores—over the last few months. Other new travel retail listings include Australia, Cyprus and Turkey. “We’re also working on Dubai, Israel and Beirut,” says Chris Pfister, Export Director for

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Ray Tobacco, “but nothing has been confirmed yet. At the moment our duty free business is about 50% airports and 50% border stores. We do very well at border stores in the Middle East and I think many of these locations often get overlooked by suppliers.” In terms of the Americas, Pfister tells us that contacts made in Orlando in March have led to negotiations with stores in the Caribbean. However, no listings have yet been confirmed. South America is also looking like a good possibility for the future; Ray Tobacco has developed solid contacts in Honduras, Ecuador and Venezuela. “The first quarter was a little slow but things picked up in the second quarter,” Pfister tells us. “We’re looking forward to continued sales growth in the second half of the year as we continue to expand our reach in duty free.”

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

Villiger cigar manufacturing has introduced a new mini cigarillo line aimed at trendy and adventurous smokers. The company says that the Red Mini cigarillo “features a seductive, aromatic hint of vanilla, accenting the sophisticated combination of flavors of Virginia, Burley and Black Cavendish tobaccos.” The Black Mini is a mildly aromatic cigarillo that is satisfying and contains a harmonious blend of fine tobaccos. While both of the above cigarillos have rather light flavors, Villiger says that the Saphir Mini has “a little more spirit.” An elegant oriental blend, Saphir is a medium-strength, spicy smoke. Villiger calls it “a jewel of a cigarillo for adventurers.” To see Villiger’s entire range, including the new mini cigarillo line, attendees to this year’s TFWA WE can visit booth N7 in Mediterranean Village. Villiger’s new mini cigarillo line include Red, Black and Saphir varieties


New & Notable LIGHTERS

LIQUOR

Zippo Windproof Lighter

Tequilera Corralejo Añejo 99,000 Hour Aged

Company: Zippo Manufacturing Company Description: Each Zippo windproof lighter is authenticated with a distinctive bottom stamp revealing date of authenticity. Zippo offers many lighter finishes including a variety of engraving and imprinting options

Company: Tequilera Corralejo Fraternity Spirits World Description: 100% Blue Agave, double distilled in column and copper stills. The tequila is aged for 18 months in American oak barrels not any larger than 200 liters. The duration of time from growing the agaves to bottling spans a total of 99,000 hours Booth: E1, Blue Village

CONFECTIONERY Macadamia Truffles Company: Hawaiian Host Description: The truffle centre is made with macadamia butter and mixed with dark chocolate. The product is enrobed with Hawaiian Host’s signature milk chocolate. Each box of Macadamia Truffles includes 12 pieces and has a net weight of 156g

Wonderful Pistachios 300g Company: Paramount Farms International Description: A resealable premium stand up pouch in Roasted & Salted and Salt & Pepper flavors of California Pistachios. The size is developed exclusively for travel retail Booth: G9, Blue Village

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THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012

Copia de Boka Company: Tequilera Corralejo Fraternity Spirits World Description: An unusual Mexican corn vodka presented in an unusual yet attractive deep blue bottle which has a twisted effect. Made of corn that was discovered in Mexico from the Spanish conquistadors Booth: E1, Blue Village

Butlers 125g Jameson Truffles Company: Butlers Chocolate Description: Creamy milk chocolate truffles flavored with the distinctive taste of Jameson Irish Whiskey Booth: L73, Green Village

Nestlé Swiss Premium Company: Nestlé International Travel Retail Description: The Nestlé Swiss Premium line focuses on authenticity and quality. It consists of six products: Nestlé Swiss Alps (two premium boxes 130g and 236g), Nestlé Swiss Carrés (two premium varieties, Milk and Dark 160g), and Nestlé Swiss Tender Rocks (two premium varieties, Milk and Dark 180g) Booth: GO3, Golden Village


Series 7

José Mourinho World Football Coach of the Year

Does in the first pass what others do in two. Braun Series 7 with the world’s only intelligent Sonic Technology.

Braun GmbH, Dept. IAM-DF, Frankfurter Straße 145, D-61476 Kronberg, Germany, Tel.: +49 6173 30 2221, E-mail: mellin.k@pg.com, www.braun.com/global


New & Notable ACCESSORIES

Eternal Love Ring Surf Rider Company: Maui Jim Description: Premium polarized sunglasses for sports and active lifestyle. Available in black with blue interior and neutral grey super thin glass lenses, black stripe with neutral grey lenses, and tortoise with HCL bronze lenses Booth: M59, Green Village

Gear Cufflinks Company: Tateossian Description: The square frame gear cufflinks are made up of varying sizes and multiple colors of gears that rotate freely. Finished in gunmetal plating Booth: RF10, Riviera Village

Company: Clogau Gold Description: The handcrafted Eternal Love ring features an intertwining design, containing a touch of rare Welsh gold from Snowdonia Booth: D35, Yellow Village

Classic Watch Collection Company: Breo Ltd Description: The Classic watch combines a contemporary design with a range of colors that extend from flashy to more subtle tones. The timepiece has a soft rubber and wrist-hugging strap design, making it comfortable to wear Booth: H1, Blue Village

Wraps & Scarves Company: Morgan & Oates Description: New designs and colors of Morgan & Oates hand-painted and printed Cashmere & Merino wraps and scarves Booth: P19, Mediterranean Village

Set Clarisse Company: Secret Wish Description: Set Clarisse includes a chain, three pendants and a pair of matching earrings. Rhodium-plated, hand-polished and incrusted with Swarovski elements, the set is sold with the convenient Secret Wish travel pouch Booth: U6, Ambassador Village

18 karat Gold Collection Portofino Company: Leo Wittwer GmbH & Co KG Description: Completely manufactured in Germany, Leo Wittwerâ&#x20AC;&#x2122;s latest collection features jewels that are made out of 18 karat rose or white gold Booth: J7, Red Village

Alpha Bravo Knox Backpack

The Dri- Cat

Company: Tumi Description: A travel retail exclusive, Tumi presents Alpha Bravo Knox Backpack from the core Alpha Bravo Collection for business and leisure in Navy, Iron and CafĂŠ colors Booth: RG14, Riviera Village

Company: Advanced Wireless Technologies Description: The Dri-Cat, is a 100% waterproof iPhone 4/4S case with a carabiner clip. The silicone shield allows you to take photos, shoot video, make calls or listen to music all while your phone is secured in the protective case. Waterproof up to six meters Booth: F57, Yellow village

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THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2012


Ximena Navarrete Miss Universe 2010

Visit us at the P PARLUX ARLUX FRAGRANCES FRAGR Booth in the GREEN VILLAGE Stand M64


AMERICAS DUTY FREE  

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

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