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APRIL 2013 • VOL 23, NO 1

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BrugalRumUSA #TheRumThatIsnt © 2013 Brugal & Co. C. Por A., Dominican Republic, Brugal® Rum, 40% Alc./Vol., Imported by Rémy Cointreau USA, Inc., New York, NY. Please Drink Responsibly.

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Letter from the Editor

The Americas Duty Free & Travel Retailing (ISSN 0962-0699) is published four times a year April, June/July, October, November/ December) by Global Marketing Company Ltd., 26 Pearl Street, Mississauga, Ontario L5M 1X2 Canada. It is distributed throughout Central America, South America, the United States, Canada, U.S. Virgin Islands, U.S. Pacific islands and the islands in the Caribbean. Subscriptions: $200 for one year. Art and photographs will not be returned unless accompanied by return postage. The views expressed in this magazine do

Making our own opportunities fter only four short years reporting on the duty free industry, I’m still learning every day. There is, though, one thing that I’m confident to say I’ve gleaned from speaking to innumerable industry veterans across the Americas, Asia and the Middle East/North Africa: There’s never a shortage of opportunities out there for those who truly believe they can make a difference and add value. In the early twentieth century, British philosopher James Allen put it as succinctly as anyone else to come before or after: “Dream lofty dreams, and as you dream, so shall you become.” In an interview with Mohamed Mannah on page 74, I asked about the key to his success and his answer was “audacity.” Fortytwo years ago when he and Atef Mannah started Grupo La Petisquera, I doubt many would have believed the company would reach the level of success that it now enjoys. Mohamed Mannah had the audacity to dream it, though, and it’s clear that he believes this is a major reason for his company’s success. Another operator that has been dreaming big is Grupo Wisa, having lately made significant inroads into the South American duty free market. Vice President – Corporate Cono Sur Marcelo Montico tells Americas Duty Free on page 28 that in five years he sees Grupo Wisa with stores “straight from Mexico down to Argentina and in all points in


between.” Given Grupo Wisa’s stunning successes to date, we’re inclined to believe him. Suppliers, too, are daring to think outside the box. Diageo GTME has put a huge investment behind The Explorer’s Club Collection, with Managing Director Roland Abella telling us in Cannes last year that he has faith in the channel and in the value of the product. You can read more about the Collection on page 206. Brown-Forman’s Sinatra Select is another great example of a product that breaks all moulds. Sure, there have been celebrity tie-ins in duty free in the past, but the coming together of two American icons like Frank Sinatra and Jack Daniel’s is a rare occurrence indeed. You can read about this match made in heaven on page 200. This issue is full of dreamers that are making it happen in travel retail—more of them than I have space to mention here. We’re very proud of our 2013 IAADFS issue and we feel it’s an apt reflection of the success the industry in the region is enjoying at the moment. I urge you to have a read and, more importantly, walk the floor to search out the people and products we discuss herein. I’m looking forward to finding out what inspires you to dream big this year in Orlando.

not necessarily reflect the views and opinions of the publisher or editor. April 2013, Vol. 23, No. 1. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2013 Global Marketing Company Ltd. The Americas Duty Free & Travel Retailing 26 Pearl Street Mississauga, Ontario L5M 1X2 Canada Tel: 1 905 821 3344; Fax: 1 905 821 2777 PUBLISHER Aijaz Khan



Kind regards, Ryan White Liquor, Concessions and Tobacco Editor




Wonderful fragrances Collecta able cosmetics Exquisite jewellery One way to have it all


Letter from the Editor

Crear nuestras propias oportunidades l cabo de cuatro años reportando para la industria duty free, sigo aprendiendo cada día. Sin embargo, hay algo que me siento confiado en decir, luego de hablar con innumerables veteranos de la industria en las Américas, Asia y el Oriente Medio/Africa del Norte: nunca habrá carencia de oportunidades para quienes creen realmente que pueden marcar una diferencia y añadir valor. A principios del siglo XX, el filósofo británico James Allen lo expresó de forma tan sucinta como cualquiera que lo hubiera dicho antes o después: “Sueña en grande, pues te convertirás en lo que sueñes”. En una entrevista concedida por Mohamed Mannah, que podrán leer en la página 74, le pregunto cuál es la clave de su éxito, y su respuesta es: “Audacia”. Hace cuarenta y dos años, cuando él y Atef Mannah fundaron el Grupo La Petisquera, dudo que muchos creyeran que la compañía llegaría al nivel de éxito de que goza actualmente. Mohamed Mannah tuvo la audacia de soñarlo, y está claro que cree



que es una razón importante para el éxito de su compañía. Otro operador que ha soñado en grande es Grupo Wisa, el cual ha materializado recientemente incursiones significativas en el mercado duty free suramericano. Marcelo Montico, Vicepresidente Corporativo para el Cono Sur, le asegura a Americas Duty Free (página 28) que dentro de cinco años Grupo Wisa tendrá tiendas “desde México hasta Argentina y en todos los puntos intermedios.” Dados los sorprendentes éxitos de Grupo Wisa hasta la fecha, nos inclinamos a creerle. Los suministradores también están dejando los caminos trillados por nuevos senderos. Diageo GTME ha realizado una enorme inversión en The Explorer’s Club Collection. Roland Abella, su Director Gerente, nos dijo el año pasado en Cannes que tiene fe en el canal y en el valor del producto. Encontrarán más detalles sobre la Colección en la página 206. Por su parte, Sinatra Select de Brown-Forman es otro gran ejemplo de un producto que rompe todos los moldes. Por supuesto, siem-


pre han existido alianzas de celebridades en el sector duty free, pero la unión de dos iconos estadounidenses como Frank Sinatra y Jack Daniel’s es realmente un acontecimiento inusual. Usted podrá leer más información sobre esta pareja ideal en la página 200. Este número está lleno de soñadores que logran realidades en el sector minorista de viajes. Tantos, que no dispongo de espacio para mencionarlos a todos. Nos sentimos muy orgullosos de nuestro número dedicado a IAADFS 2013, y creemos que es un reflejo apropiado del éxito que está teniendo actualmente la industria en la región. Les invito a leer, y, más importante aún, a recorrer el salón de exposiciones en busca de las personalidades y productos que aparecen en estas páginas. Espero saber lo que les inspira a soñar este año en Orlando. Un cordial saludo, Ryan White Editor de Concesiones, Licores y Tabaco

Global travel retail excellence


APRIL 2013 • VOL 23, NO 1

Contents 20 24

IN BRIEF Airmall at PIT Named “Best Overall Concessions Program” ■ Passenger demand uptick continues in 2013, says IATA ■ International visitation to US up 4% in October 2012 ■ FDFA releases January land border duty free sales statistics


Grupo Wisa opens its Cono Sur offices and expands its international footprint even more


" Grupo Wisa inaugura sus oficinas en el Cono Sur, y cumple su promesa de transformarse en una operación cada vez mas internacional

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Despite a last-minute change in gate assignments, The Nuance Group and DFASS remain confident in the potential of their new stores at Orlando Airport


Top Brands continues showing year-on-year organic growth as it expands the well known El Dorado Duty Free name to new markets

Business in Latin America continues to grow, albeit at a slower pace, as operators opt to invest in new stores and renovations



Aer Rianta International’s Canadian operations achieve solid performance in 2012 on the back of innovative instore promotions and events


Uruguay has a lot of things going for it when it comes to duty free, but what does the future hold for the country as growth levels out in South America?



En el campo duty free, están ocurriendo múltiples acontecimientos en Uruguay, pero ¿qué le depara el futuro al país, y a los niveles de crecimiento en Suramérica?


Los negocios en Latinoamérica van en aumento, aunque a paso lento, mientras los operadores optan por invertir en nuevas tiendas y renovaciones








42 years after the founding of parent company Grupo La Petisquera, Mannah Duty Free shows no signs of slowing down

The number of outbound Chinese travelers is on the rise, and they’re drawn by long-haul destinations with ample opportunities to shop



(305) 895-2600


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Americas Duty Free looks at what’s new and notable at four of the world’s top airports


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Americas Duty Free speaks with three wayfinding experts to discover how airports and airport retailers can benefit from incorporating new wayfinding solutions

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FlyInStyle is set to change the way travelers, brands and retailers interact in the airport environment with the release of an innovative new smartphone application

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Guatemala’s La Aurora International Airport evolves its business model to focus on stronger relationships with concessionaires and brands for the benefit of all


! Miami International Airport sizzles with record-setting 2012 passenger numbers and a host of large-scale renovations to better serve travelers


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A series of high-profile concessions awards will see LS travel retail North America opening numerous big-name stores in the US this year



Baja Duty Free opens two new stores and continues its upward trajectory despite competition from the local market and violence in Mexico





After a very successful 2012, the FDFA expects to maintain the momentum with it May 2013 Business Development Summit and Golf Tournament

L’Oréal Travel Retail Americas eyes positive potential in the Americas


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The venerable TR distributor continues to build its business on a foundation of strong relationships

Americas Duty Free talks to three industry organizations planning dazzling and informative events for this year’s duty free calendar






Americas Duty Free habla con tres organizaciones de la industria que proyectan eventos fascinantes e informativos para el calendario duty free de este año




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" The Cloudbreak Group may be new to travel retail, but its brand savvy has been years in the making

BEAUTY NEWS Parlux and Kenneth Cole sign licensing agreement ■ Painting the Caribbean with Manifesto by Yves Saint Laurent ■ ‘Try before you buy’ at Kiehl’s ■ Striking out on his own ■ Travalo takes a hold on the Americas at IAADFS 2013


'& Flowers, fruit and foliage set the tone




Stronger colors, better skincare based on scientific support





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Following a significant management rehaul, Clarins Group focuses on boosting service at its top-selling doors and rolling out a powerful new anti-aging serum

MOSCOW LONDON BEIJING ISTANBUL NEW YORK SANTIAGO VANCOUVER Visit us at Booth #1515 or contact Vivian Guzman-Wischt of GMP Services at 1.305.895.2600 or vivian.wischt@


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! With a versatile product offering, Thomas Sabo moves beyond jewelry


" Buckley London Jewellery takes on the Americas, with help on the ground from distributor International Brand Builders



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Men’s skincare has arrived, and these brands plan to make the most of it


Crabtree & Evelyn courts North American travel retail


Quadrant’s new Calibre Beauté division takes on North America and beyond

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SUPPLIER NEWS Lacoste strengthens its leverage ■ Lambretta hits the high seas ■ Braun revolutionizes personal care ■ CBM Inc. / Meade Ray International bags comfort and style ■ ALFA brands presents its latest vice ■ Wildfox Couture explores new territory




Geneva Watch Group makes time for change






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The sunglass category becomes more technologically advanced this season, with the increased interest in polarization among other trends




BT Fashions looks forward to steady growth in 2013, building on continued success of the flagship Bijoux Terner brand and its fresh new AdiXion brand

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Armed with a new strategy, Glam Rock is increasing its exposure and gaining interest across the board




With new sales strategies in the works, Cross is looking at another successful year

CONFECTIONERY NEWS Goldkenn revisits and refreshes ■ Chocolat Frey focuses on gifting and sharing ■ Fazer’s offerings take flight ■ Perfetti promotes confectionery’s increasing potential ■ Hawaiian Host showcases its new grab-and-go stand up bags in Orlando ■ Hershey’s launches exclusive new chocolate bar flavors and variety box ■ Jakeman’s launches Hockey Tribute bottles and Maple Infusions


" KFWTR backs up its brand dominance with lots of customer research


# $ While premiumization is all the rage, there’s no denying that the market for high-quality, affordable spirits is still very lucrative, especially when it comes to the popular vodka category


Russian Standard goes for the gold in the Americas duty free channel

VODKA NEWS Exposure is key for Absolut heading into IAADFS ■ Three Olives to launch new vodka honoring Hollywood legend Marilyn Monroe ■ Ladoga Group’s Imperial Collection Gold positioned for duty free growth ■ The Jewel of Russia brings authentic Russian vodka to IAADFS ■ Roust Inc. appoints Oleg Kirillin as CEO ■ White Gold targets worldwide consumers with redesigned “True Original” bottles ■ Absolut releases Denim, new GTR limited edition gift pack


$ Iceberg Vodka premieres new packaging and three flavors at this year’s IAADFS, but for CEO and President David Meyers it’s what’s on the inside that really counts


Americas Duty Free brings readers our favorite spring cocktails


Jessica Chastain



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US distilled spirits prove to be favorites at home and abroad according to a recent report from the Distilled Spirits Council of the United States


! William Grant & Sons reports a record year in travel retail and focuses on exclusive lines of its bestselling spirits for 2013


" " Americas Duty Free speaks with some big-name liqueurs, discovering that regardless of how big they get, innovation is key to remaining relevant in travel retail


" ! The continued popularity of premium whisky and the burgeoning high-end rum market put The Edrington Group in an enviable position for 2013





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# $

We speak with Area Director of Rémy Cointreau Travel Retail Americas Francois Van Aal about the continued potential of the company’s diverse portfolio in the Americas



" % Bacardi announces its Cruise Competition Bartender of the Year and Chef of the Year in sunny Florida, marking the first time a bartender has won the cocktail portion of the event two years running



" A very special Jack Daniel’s honoring “Ol’ Blue Eyes” continues to roll out across Americas travel retail and beyond



Diageo unveils Latin America-inspired The Gold Route, the second travel retail exclusive blend from Johnnie Walker’s The Explorers’ Club Collection

LIQUOR NEWS Paul Sapin to distribute Seva Group’s travel retail wine range in LATAM ■ Courvoisier Le Voyage de Napoleon to sail into the Americas ■ Patrón Spirits introduces duty free exclusive Gran Patrón Piedra ■ Americas plays important role in Chivas Brothers’ Blend global rollout ■ Jaan offers something different for duty free ■ Tequilera Corralejo warms up for Orlando ■ Prowood offers two exquisite spirits from France and Armenia ■ MONARQ Group poised for continued growth in Americas travel retail ■ Specialty Brands to showcase wide variety of wines and spirits at IAADFS


Horizon Premium Brands, Inc. comes to Orlando with a number of high-quality tobacco products aimed at valueconscious travelers


New Tonino Lamborghini Ice Volt heats up sales for KT&G





Americas Duty Free speaks with Marcos Novis, Key Account Manager – Americas at BAT International, about what attendees can expect from the company this year in Orlando


The XV Habanos Festival took place last month, introducing attendees to new cigars, wine and food pairings, celebrity guests and much, much more

TOBACCO NEWS J. Cortès vies for visibility ■ Agio boosts range, retail concepts ■ JTI Worldwide Duty Free appoints new head of corporate affairs and communications ■ World of Patria brings Vaepe E-Cigarettes to travel retail ■ Villiger eyes Asia, Europe and the US for continued growth




Over 60 years in the making, the company sits at the forefront of the industry with innovations in cigarette making

" The boom in premium rums is heartening, says CEO of Industrias Licoreras de Guatemala Roberto Garcia-Botran, but there’s still work to be done in educating the consumer on rum as a choice for lovers of high-end spirits





At IAADFS this year, WOPI showcases a new blended Scotch whisky and specially produced water to compliment your favorite single malt


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NEW & NOTABLE Stoli Salted Karamel ■ Wonderful Pistachios ■ Kit Kat Phone Box Tin


$ Americas Duty Free gives industry executives the chance to shine the light on their most loyal companions

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In Brief Passenger demand uptick continues in 2013, says IATA he International Air Transport Association (IATA) released global air travel demand statistics for January showing a continuation of the uptick in passenger travel that began at the end of 2012. Overall, demand was up 2.7% on the previous January, which is slightly ahead of the 2.2% expansion in capacity. Load factors stood at 77.1%. Strong demand for air travel driven by the Chinese New Year has distorted the January figures. Chinese New Year fell in January 2012 and in February this year. The comparisons to such a strong month made January 2013 demand look weaker than the underlying trend would indicate. After adjusting for such seasonal factors, IATA estimates that the actual growth would have been 3.5%. This growth is still lower than the 5.3% 2012 average. However, air travel growth slowed sharply through the year and the results of the past few months represent an acceleration of demand growth. “Passenger travel is growing in line with business confidence levels. Recent months have seen some positive economic signs emerge in both the US and China,


irmall USA has announced that the Airmall at Pittsburgh International Airport (PIT) was named “Best Overall Concessions Program (medium airport)” in the Airport Revenue News (ARN) 2013 Best Airports & Concessionaires Awards program. Airmall received the award at a reception during the ARN 2013 Revenue Conference & Exhibition. “With a commitment to consistently enhancing the traveler experience through high-quality concessions and exceptional customer service, the Airmall at PIT has set the gold standard for airport concessions since it opened in 1992,” said Jay Kruisselbrink, Vice President of Development for Airmall USA. “We’ve recently launched

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and the Eurozone crisis seems to have stabilized. Of course risks remain; the impact of US budget cuts has yet to play out and fuel prices are high. But even with those headwinds—real and potential— we still see underlying support for continued and potentially even strengthened growth,” said Tony Tyler, IATA’s Director General and CEO. In terms of international travel within the Americas, Latin America posted the second highest growth in demand at 12.2%. This was outpaced by capacity growth of 13.7%. Load factors stood at 79.0%, only exceeded by North American airlines. The regions’ growth is being fueled by expanding economies— particularly Bolivia, Chile, Colombia and Peru—where reduced unemployment has boosted consumer demand. North American carriers reported a 1.5% expansion in demand even as capacity was trimmed by 0.8% when compared to year-ago levels. Demand is strong on the back of improved economic performance in the US, says IATA, and airlines are tightly managing capacity. The region’s airlines posted the highest load factor at 79.4%.

the first phase of a yearlong construction project that will result in a significant overhaul of the concessions program and add eight new retail units. This project is another testament to our desire to offer a dynamic concessions program to travelers, and we’re honored that ARN has recognized our efforts to continually strive for excellence.” In fall 2012, the AIRMALL at PIT unveiled an aggressive plan to reshape the award-winning concessions program at PIT. The US$10-million upgrade will create a new retail core in the Center Core of the airport’s airside terminal, a move that is aimed at attracting some of the nation’s top brands.

In Brief

FDFA releases January land border duty free sales statistics

International visitation to US up 4% in October 2012 he US Department of Commerce today announced that 5.6 million international visitors traveled to the United States in October 2012, a 4% increase over October 2011. October 2012 registered the 19th straight month of increases in total US visits. In October 2012, the top inbound markets continued to be Canada and Mexico, with each market up 6% and 7%, respectively. Seven of the nine overseas regions were up in October 2012 (Asia +13%, South America +13%, Oceania +7%, Middle East +8%, Central America +1%, Eastern Europe +5%, and Africa +6%). Western Europe and the Caribbean registered the only two declines, down 8% and 4% respectively in October 2012 compared to a year ago. For the first ten months of 2012, visitation was up 6% compared to the same period in 2011.




he Frontier Duty Free Association (FDFA) recently announced January 2013 land border duty free sales statistics. According to the organization, the main categories that dominated sales in land border duty free are as follows, in order of sales highest to lowest: Alcohol; Tobacco; P&C; Food; Beer; Jewelry, Watches and Clocks; Clothing; Accessories; Souvenirs; Office and Travel Supplies; Glassware, Crystal, China, Figurines and Porcelain; Other; Arts and Crafts; and Electronics. The national land border duty free sales figure for January 2013 was CAD$7.1 million (US$6.92 million), representing a 1.51% increase in sales compared to January 2012. The national airport duty free sales figure for January 2013 was CAD$20.4 million (US$19.9 million). This is an increase in sales of 6% compared to January 2012. For January 2013, the Prairie Region saw sales of CAD$628,000 (US$612,000). This represents a slight decrease in sales of 2.4% compared to January 2012. The Pacific sales figure for January 2013 was reported as CAD$1.2 million (US$1.17 million), a 7% increase in sales compared to the same period last year. The Ontario sales figure for January 2013 was CAD$4 million (US$3.9 million). This is an increase in sales of 0.98% compared to January 2012. Finally, the sales figure for the Atlantic/Quebec region for January 2013 was CAD$1.2 million (US$1.17 million), which represents a marginal increase of 0.1% from the same month last year.


Top Story: Grupo Wisa



mericas Duty Free first broke the story of Grupo Wisa’s move into South American duty free just over a year ago in our IAADFS 2012 issue. Since that time, a number of important changes have taken place at the company that make good on former Commercial Director of Travel Retail Marcelo Montico’s initial promise of expanding Grupo Wisa’s international footprint even more than before. Montico moved from Panama to his new home base of Montevideo, Uruguay in September 2012 to head up Grupo Wisa’s Cono Sur operations in the capacity of Vice President – Corporate Cono Sur. Taking responsibility in Panama for the position of Vice President – Northern Travel Retail is Reinaldo Rangel. “From Montevideo I’m handling logistics, human resources and essentially everything that goes into the job of starting a business in a new country,” Montico told us recently. From Grupo Wisa’s Cono Sur home base, Montico and company will oversee the Uruguay/Brazil border store business, which Grupo Wisa is in the process of acquiring, in addition to handling future business opportunities in other South American countries. For the moment, though, Montico has his sights set firmly on the renovation of six stores on the border that will give Grupo Wisa plenty of selling space with which to begin its foray into the highly lucrative South American market. With refurbishment work ongoing at the locations, Grupo Wisa has already submitted the proposed acquisitions to Uruguay’s Ministry of Economy and Finance. “In terms of renovations, we’re expecting to have the first ‘La Riviera’ flagship store open by May 2013,” explains Montico.

Montico tells us that Grupo Wisa’s South America initiative has been carefully planned and the operator’s move into the region will take place in 24



three phases, with the first being the aforementioned renovation and opening of the six Uruguay/Brazil border stores. Phase 2 consists of participating in a number of Brazilian airport tenders, while Phase 3 will see the company move into Peru and Chile with both travel retail and domestic market initiatives. In terms of the first phase, Grupo Wisa’s Uruguay base in Zona Franca de Libertad has been established as the logistical heart of the Brazil border store operation. Goods from Panama—or in certain cases the US, Europe and parts of South America—will be shipped there and then distributed among the six stores located in Rivera, Rio Branco and Aceguá. The company’s flagship South American store, measuring 850 square meters, will be located in Rivera. “It’s a prime location,” says Montico. “About 60% of Uruguay’s border store business is done in Rivera.” Grupo Wisa will operate two more border stores in Rivera measuring 300 and 350 square meters. “We also have a new store in a highend shopping mall in Rivera called ‘Melancia.’ The location will measure 4,000 square meters and will open in March of 2014. We are one of two major stores at the mall.” Travelers to Rio Branco and Aceguá will also soon see modern La Riviera-branded stores measuring 850 and 1,300 square meters,






An artist’s rendering of what Grupo Wisa’s new store in Rivera, Uruguay will look like once completed

3). These tenders are expected to be announced in the second semester of this year and Montico assures us that Grupo Wisa will be participating as part of the second phase of its expansion plan. “The buying power of Brazil’s middle class is fully double what it was just five short years ago,” Montico explains. “These are some of the things that we considered when first moving into the region. The conditions for developing business in Brazil specifically and South America in general are very good right now and we expect this environment to continue fostering growth in the mid to long term.” The third part of Grupo Wisa’s expansion plan consists in moving into the domestic markets of Peru and Chile. Montico explains: “Part of this last phase relates to a fashion house brand, which is a local market concept that Grupo Wisa has franchise rights to operate in some major markets,” he says. “In terms of travel retail in these countries we’re currently examining our options but I can’t yet give any details other than to tell you it likely won’t be the purchase of existent companies, but rather competing for tenders where opportunities arise. In Chile, for example, we’ll be competing for tenders that should be announced in the second half of this year.

respectively. In actuality the Aceguá location currently measures 650 square meters, but in a significant move renovation efforts will see the store double in size. Montico tells us that a bigger store in Rio Branco may be a possibility in the future as Grupo Wisa may potentially look to expand the commercial area, but for the moment no plans have been finalized.

Of course, it’s clear from any number of success stories of late that selling to the large base of Brazilian cross-border travelers from stores in Uruguay is big business. However, Grupo Wisa has also identified a number of future opportunities at major airports within Brazil—namely at Curitiba, Porto Alegre and Guarulhos (Terminal

Operators all over the world who cater to Brazilians are keenly aware of the draw that major brands can have on these travelers. Arguably one of the most popular brands for this nationality is cosmetics icon MAC. Ironically enough, the brand isn’t currently present in any Uruguayan border stores. Significantly, Grupo Wisa has secured exclusive rights to sell MAC products in Rivera. As previously mentioned, the city makes up about 60% of the border business done in Uruguay, giving Grupo Wisa a distinct advantage over the competition. “This is big and the importance of this development can’t be understated,” says Montico. In fact, befitting a brand as beloved by Brazilians as MAC, Grupo Wisa’s flagship store in Rivera will feature a special shop-in-shop completely dedicated to the brand. “We’ve always believed that in order to flourish, regardless of the region, we need to add value,” Montico continues. “This is one of many ways that we’re adding value in South America. We’re continually on the lookout for brands that our clients will appreciate and we will no doubt have more announcements of exclusive offers as the Cono Sur project progresses.”

Grupo Wisa’s new Uruguay stores will feature bestselling products across a range of categories

Top Story: Grupo Wisa

Grupo Wisa’s flagship South American store in Rivera, Uruguay will feature a special MAC boutique; the operator is the exclusive retailer of the brand in Rivera

“For us, opening the Conos Sur office isn’t a one- or two-year project. This is a ten- or twenty-year initiative—there’s no doubt that we’re in it for the long term,” Montico tells us. “Grupo Wisa had to go outside of its comfort zone a bit to continue growing. We identified early on that this region of the world will continue growing over the coming years and as such it’s the perfect opportunity for us. “When you look at the company’s organic growth over the last year, it certainly isn’t bad, but we want to be considered as a more international operator than before,” he continues. “South America has a lot of opportunity for further development.” Montico points out that soy, one of the region’s main exports, is selling at over US$500 a ton at the moment. As a result, the GDPs of some countries in this region have been rising significantly, fuelling a middle class with both purchasing power and the desire to spend. “Put simply, in five years I see Grupo Wisa with stores straight from Mexico down to Argentina and in all points in between,” Montico concludes. “This isn’t a ‘try it out and see how it goes’ plan. We’re here for the long term and we see some amazing opportunities in South American travel retail.”

“2012 was an extraordinary year for our existent travel retail operations,” says Grupo Wisa’s new Vice President – Northern Travel Retail Reinaldo Rangel. “Our commercial strategy—focused on upping average spend and penetration combined with expansion in the region—resulted in a growth of close to 15% versus 2011. This represents the fifth year in a row that the company has grown double digits. Notably, our business results have outpaced the growth in the GDPs of the countries where we operate—namely Panama, Colombia, Mexico, Guatemala, El Salvador, Costa Rica, Nicaragua and Belize.” Grupo Wisa’s strategy for 2012 focused on high-impact launches and promotions every 15 days, which resulted in a 5% increase in average ticket to US$95.10. Furthermore, penetration in the region reached 17%. “The success of our promotional program is indicative of the large number of options that we offer our supplier partners when it comes to developing their brands in the region,” says Rangel. “We’re able to offer promotional packages to our partners by region, country or store, with the ultimate goal of helping the brands reach their maximum potential.”

Travelers in Bogota can now be treated to an outstanding duty free shopping experience in Grupo Wisa’s new 1,314-square-meter walkthrough store, located just at the entrance of the commercial area



TAIRO International 2013

Top Story: Grupo Wisa

prestigious names such as Burberry, Bvlgari, Tous, Tag Heuer and Michael Kors. In terms of Cartagena, a major boom is currently taking place in the city. Grupo Wisa’s departures store in the airport measures 350 square meters and features a wide variety of its bestselling products across the major duty free categories. “In addition to these openings, we’ve also gone a long way toward developing plans to support our operations in Mexico, Guatemala, Nicaragua, El Salvador, Belize and our commercial partners from IMAS in Costa Rica,” Rangel adds.

In the second half of 2012 Grupo Wisa inaugurated bespoke, modern stores in newly renovated airports El Dorado (Bogota, Colombia) and Rafael Núñez (Cartagena, Colombia). “For us, it’s a real honor to be a part of the infrastructural development in Colombia—and indeed in all of the countries where we operate,” explains Rangel. Travelers in Bogota can now be treated to an outstanding duty free shopping experience in Grupo Wisa’s new 1,314-square-meter walkthrough store, located just at the entrance of the commercial area. “This completely open location—the first store in the commercial area— has already turned into a favorite, must-see store for travelers given the amazing variety of product offerings across categories,” Rangel explains. In the store, just like in all La Riviera stores, travelers can find worldfamous brands in categories such as P&C, sunglasses, watches, luggage, toys, confectionery, spirits and tobacco. Additionally, very soon Grupo Wisa’s Bogota store will feature boutique shop-in-shops from

In terms of 2013, Grupo Wisa forecasts another 15% increase in sales over last year, largely due to a continued focus on increasing average spend per PAX and penetration. The operator has developed a promotional calendar for the entire year in order to ensure that suppliers are provided key spaces to promote exclusive brands. “Of course, we’re also continuing to focus on providing our clients with the best shopping experience,” Rangel says. “Our objective is to be the preferred store for duty free purchases in the region.” Rangel also promises that in 2013 the expansion of Grupo Wisa’s northern Latin America operations will continue. “As reported in numerous sources, Panama’s economy continues to be the fastest growing in Latin America, and there we’ll be opening six more stores in the recently inaugurated North Terminal at Tocumen Airport,” he explains. Two of the above stores will offer P&C, beauty treatments, sunglasses, watches, spirits, tobacco and chocolates. Another store will offer highend handbags, while the fourth will be dedicated to the toys category. The fifth store will offer luggage and the sixth will be a boutique. In April, the operator will also be opening an arrivals store and a duty paid location in Cartagena, further strengthening its position in Colombia on the back of a January store opening at Baranquilla. “With these new openings, we’ll reach 80 points of sale in the region, with 1,400 staff offering the best in service to more than 15 million passengers,” Rangel concludes.

In the Bogota store, just like in all La Riviera stores, travelers can find world-famous brands in categories such as P&C, sunglasses, watches, luggage, toys, confectionery, spirits and tobacco



RIHANNA® and Nude by Rihanna™ are trademarks owned by Roraj Trade LLC, protected by trademark registrations and other laws, and are used under license by PARLUX FRAGRANCES, LLC. All rights in and to such marks are reserved by Roraj Trade LLC.

“Wear it with nothing else” Rihanna

Top Story: Grupo Wisa The Fragrances section of the new South America flagship store in Rivera, Uruguay


ace casi un año, Americas Duty Free dio la primicia de la incorporación de Grupo Wisa al sector duty free suramericano, en su número dedicado a la IAADFS 2012. Desde entonces, se han producido numerosos cambios importantes en la compañía, en concordancia con la posición inicial de Marcelo Montico, Director Comercial de Travel Retail, de que esta expansión le daría a Grupo Wisa una cobertura geográfica aun mas internacional que la que tenía hasta el momento. . En septiembre del 2012, Montico se trasladó de Panamá a su nueva sede en Montevideo, Uruguay, para dirigir las operaciones de Grupo Wisa en la región, como Vicepresidente Corporativo para el Cono Sur. Entretanto, Reinaldo Rangel tomó la posición en Panamá como el nuevo Vicepresidente Comercial de Travel Retail para la Región Norte de Latinoamérica. “Desde Montevideo estoy a cargo de la logística, los recursos humanos, el plan de negocios y esencialmente todo lo que implica la labor de iniciar un negocio en un país nuevo”, afirmó Montico recientemente. Desde la sede de operaciones de Grupo Wisa para el Cono Sur, Montico y sus colaboradores supervisarán el negocio de tiendas en la frontera Uruguay/Brasil, en proceso de adquisición por parte de Grupo Wisa; además de manejar futuras oportunidades de negocios en otros países suramericanos. Sin embargo, por el momento, Montico está firmemente concentrado en la renovación de seis tiendas de frontera, que le proporcionarán a Grupo Wisa abundante espacio de ventas para comenzar su incursión en el altamente lucrativo mercado suramericano. Mientras se llevan a cabo los trabajos de renovación en los diferentes establecimientos, Grupo Wisa ya ha presentado las propuestas de adquisiciones al Ministerio de Economía y Finanzas de Uruguay. “En lo que respecta a renovaciones, esperamos inaugurar la primera tienda insignia, ‘La Riviera’, en mayo del 2013”, explica Montico.

Montico nos dice que la iniciativa de Grupo Wisa en Suramérica se planificó cuidadosamente, y que la introducción del operador en la región 30


se llevará a cabo en tres fases. La primera consiste en la renovación mencionada y la inauguración de las seis tiendas en la frontera Uruguay/Brasil. Por su parte, la segunda fase consiste en la participación en varias licitaciones de aeropuertos brasileños; mientras que en la tercera fase la compañía entrará a Perú y Chile con iniciativas de Travel Retail y de mercado local. En lo referente a la primera fase, la base logística de Grupo Wisa en Uruguay, ubicada en la Zona Franca de Libertad, se ha establecido como centro de distribución de la operación de las tiendas de frontera en Brasil. Las mercancías procedentes de Panamá—o en ciertos casos, de los Estados Unidos, Europa y varias partes de Suramérica— se enviarán a esa base, desde donde serán distribuidas a las seis tiendas localizadas en Rivera, Rio Branco y Aceguá. La tienda insignia de la compañía en Suramérica, con una extensión de 850 metros cuadrados, estará en Rivera. “Tiene una ubicación privilegiada”, asegura Montico. “Cerca del 60% del negocio de tiendas de frontera de Uruguay se lleva a cabo en Rivera”. Grupo Wisa operará otras dos tiendas de frontera en Rivera, con extensiones de 300 y 350 metros cuadrados respectivamente ubicadas estratégicamente en la zona con el mejor desempeño comercial de la ciudad. “También contaremos con una de las dos tiendas “anclas” en el nuevo centro comercial llamado ‘Melancia’, el cual abrirá al público en Marzo del 2014 y donde La Riviera contara con 4,000 metros cuadrados para ofrecer una experiencia de compra difícil de igualar en este canal,” explica Montico. Muy pronto, los viajeros con destino a Rio Branco y Aceguá tendrán a su disposición dos modernas tiendas de marca La Riviera, con extensiones de 850 y 1,300 metros cuadrados, respectivamente. En realidad, el establecimiento de Aceguá ocupa actualmente 650 metros cuadrados, pero estamos trabajando en un diseño de tienda que nos permitirá casi duplicar esa superficie.. Montico nos afirma que la existencia de una tienda más extensa en Rio Branco podría ser una posibilidad en el futuro, pues probablemente Grupo Wisa ampliaría el área comercial, aunque por el momento no se ha concluido ningún plan al respecto.

The New Men’s Fragrance

Top Story: Grupo Wisa

Grupo Wisa’s new Uruguay stores will feature bestselling products across a range of categories

Por supuesto, según las numerosas y recientes historias de éxito que conocemos, está claro que venderle a la gran cantidad de viajeros brasileños que cruzan la frontera en las tiendas de Uruguay es un gran negocio. Sin embargo, Grupo Wisa identificó numerosas oportunidades futuras en aeropuertos importantes de Brasil como Curitiba, Porto Alegre y Guarulhos ( Terminal 3). Se espera que estas licitaciones se anuncien en el segundo semestre de este año, y Montico se muestra confiado en la participación de Grupo Wisa en las mismas, como parte de la segunda fase del plan de expansión. “El poder adquisitivo de la clase media en Brasil es plenamente el doble de lo que era hace sólo cinco años”, explica Montico. “Estos son algunos de los factores que consideramos cuando nos introdujimos por primera vez en la región. Las condiciones para crear negocios en Brasil específicamente, y en Suramérica en general, son muy buenas en este momento, y esperamos que este ambiente siga fomentando el crecimiento de mediano a largo plazo”. La tercera parte del plan de expansión de Grupo Wisa consiste en su introducción en los mercados nacionales de Perú y Chile. “Parte de esta última fase se refiere a la marca de una casa de diseño de modas, un concepto de mercado local del cual Grupo Wisa tiene derechos de franquicia para operar en algunos mercados importantes”, explica Montico. “En términos de operación de Travel Retail, estamos examinando actualmente nuestras opciones en esos países, pero no puedo dar más detalles al respecto, sólo decirles que no habrá adquisiciones de compañías existentes, sino más bien una competencia por licitaciones donde surjan oportunidades. Por ejemplo, en Chile, competiremos por licitaciones que serán anunciadas en la segunda mitad de este año.

Los operadores de todo el mundo que les venden a los brasileños, están muy conscientes del atractivo que ejercen las marcas importantes en

estos viajeros. Posiblemente, una de las marcas más populares para esta nacionalidad sea MAC, un ícono de los cosméticos. Por decisiones propia de la marca, hasta el momento la misma no estaba disponible en ninguna de las tiendas de frontera con Brasil, ya que el ambiente de reatil no era el propicio para los standarts que MAC requiere. La buena noticia es que La Riviera ha llegado a un acuerdo con MAC para vender en carácter de exclusividad los productos en la ciudad de Rivera. Como se mencionó previamente, la ciudad compone cerca del 60% del negocio de frontera que se realiza en Uruguay, lo cual le da a Grupo Wisa una clara ventaja sobre la competencia. “Es un hecho considerable, y la importancia de este acontecimiento no se puede pasar por alto”, asegura Montico. A propósito de ello, para ponerse en sintonía con una marca tan querida por los brasileños como MAC, la tienda insignia de Grupo Wisa en Rivera contará con una “Shop in Shop” dedicada totalmente a la marca. “Siempre hemos pensado que, para crecer, independientemente de la región, hay que añadir valor”, prosigue Montico. “Es una de las muchas maneras en las que estamos añadiendo valor en Suramérica. Estamos en búsqueda continua de marcas que apreciarán nuestros clientes, y sin duda haremos más anuncios de ofertas exclusivas en la medida que progrese el proyecto Cono Sur”.

“Para nosotros, la apertura de la oficina para el Cono Sur no es un proyecto de uno o dos años. Es una iniciativa de diez o veinte años. No hay duda de que permaneceremos en ella a largo plazo”, dice Montico. “Grupo Wisa tuvo que ampliar la cobertura geográfica de sus operaciones para seguir creciendo. Pudimos identificar de antemano que esta región del mundo seguirá creciendo en los próximos años, y como tal, es la oportunidad perfecta para nosotros”. “Cuando se comparan los crecimientos orgánicos de los últimos años, los mismos no lucen nada mal, pero queremos que se nos A render of the Electronics section of Grupo Wisa’s new flagship South America store, located in Rivera, Uruguay



Top Story: Grupo Wisa

Travelers in Bogota can now be treated to an outstanding duty free shopping experience in Grupo Wisa’s new 1,314-square-meter walkthrough store, located just at the entrance of the commercial area

considere como un operador cada dia mas internacional”, continúa Montico. “Suramérica tiene muchas oportunidades de mayor desarrollo”. Montico destaca que la soja, uno de los principales renglones de exportación de la región, se está vendiendo en estos momentos a más de US$500 la tonelada. Como resultado, el PIB (Producto Interno Bruto) de algunos países de la región ha crecido significativamente, estimulando una clase media con poder adquisitivo y deseos de gastar. “En resumen: dentro de cinco años veo a Grupo Wisa con tiendas desde México hasta Argentina y en todos los puntos intermedios. No se trata de un plan de ‘probar a ver qué pasa’. Estaremos aquí a largo plazo, y vemos algunas oportunidades sorprendentes en el sector retail de Suramerica”, concluye Montico.

“El 2012 fue un año extraordinario para nuestras operaciones de Travel Retail ya existentes”, afirma Reinaldo Rangel, el nuevo Vicepresidente Comercial de Travel Retail de Grupo Wisa para la Región Norte de Latinoamérica . “Nuestra estrategia comercial—enfocada en incrementar el ticket promedio y la penetración, combinada con una expansión en la región—dio como resultado un crecimiento cercano al 15% en comparación con el 2011. Este representa el quinto año consecutivo con crecimiento de doble dígito para la compañía . Notablemente, los resultados de nuestro negocio han superado el crecimiento del PIB de los países en los que operamos: Panamá, Colombia, México, Guatemala, El Salvador, Costa Rica, Nicaragua y Belice”. La estrategia de Grupo Wisa en el 2012 se enfocó en lanzamientos de productos y promociones quincenales de alto impacto , lo cual resultó en un incremento de 5% del ticket promedio alcanzando un nivel de US$95.10, con una penetración regional que alcanzó un 17%. “El éxito de nuestro programa promocional radica en la variedad de opciones que les ofrecemos a nuestros proveedores para el desarrollo de sus marcas en la región”, añade Rangel. “Podemos ofrecerles paquetes promocionales a nuestros socios comerciales a nivel regional , por país o por tienda, con el propósito principal de ayudar a que las marcas alcancen su máximo potencial”. En la segunda mitad del 2012, Grupo Wisa inauguró modernas tiendas en los aeropuertos renovados de El Dorado (Bogotá, Colombia) y Rafael Núñez (Cartagena, Colombia). “Para nosotros es realmente un honor formar parte del desarrollo de la infraestructura en Colombia, así como en el de todos los países en los que operamos”, explica Rangel. En la actualidad, los viajeros en Bogotá pueden disfrutar de una extraordinaria experiencia de compras duty free en el nuevo formato de tienda “Walk Through” de 1,314 metros cuadrados de Grupo Wisa, ubicada a la entrada el área comercial. “Este establecimiento completamente abierto—la primera tienda en el área comercial—ya se ha convertido en una parada obligada para los pasajeros, dada la sorprendente variedad de ofertas de productos en diferentes categorías”, prosigue Rangel. 34


En la tienda, al igual que en todos los puntos de venta de La Riviera, los pasajeros pueden encontrar reconocidas marcas a nivel mundial en categorías como perfumes, tratamientos y cosméticos, lentes de sol, relojes, equipos de viaje, juguetes, confitería, licores y cigarrillos. Además, esta nueva tienda de Grupo Wisa en Bogotá pronto contará con boutiques de lujo “shop-in-shop” de marcas prestigiosas como Burberry, Bvlgari, Tous, Tag Heuer y Michael Kors. Considerando el extraordinario auge que está experimentando la ciudad de Cartagena, Grupo Wisa abrió operaciones en la sección de salidas del aeropuerto, la misma tiene una extensión de 350 metros cuadrados, y cuenta con nuestro amplio portafolio de productos de mayor venta en las principales categorías duty free. “Además de este plan de expansión, hemos avanzado enormemente en la creación de planes para respaldar nuestras operaciones en México, Guatemala, Nicaragua, El Salvador, Belice, y de nuestros socios comerciales de IMAS en Costa Rica”, añade Rangel.

En lo que respecta al 2013, Grupo Wisa pronostica un crecimiento de ventas del 15% , en comparación al año pasado, debido en gran medida a un enfoque continuo en el incremento del ticket promedio por pasajero y de su nivel de penetración. Para esto el operador ha creado un calendario anual de promociones , a fin de garantizar que sus proveedores cuenten con espacios clave para la promoción de marcas exclusivas. “Por supuesto, también seguimos enfocándonos en proporcionarles a nuestros clientes la mejor experiencia de compras”, puntualiza Rangel. “Nuestro objetivo es convertirnos en el lugar preferido para las compras duty free en la región”. Rangel también promete que en el 2013 continuará la expansión de las operaciones de Grupo Wisa en Latinoamérica. “Como han reportado numerosas fuentes de información, la economía de Panamá sigue siendo la de más rápido crecimiento en Latinoamérica, por lo que se abrirán seis nuevas tiendas más en el recién inaugurado Muelle Norte del Aeropuerto Tocumen”, explica. Dos de las tiendas mencionadas ofrecerán perfumes y cosméticos, tratamientos de belleza, lentes de sol, relojes, licores, cigarrillos y chocolate. Otra tienda venderá carteras o bolsas de lujo, mientras que una cuarta estará dedicada a la categoría de juguetes. Finalmente, la quinta tienda se dedicará a la categoría de equipos de viaje o maletas, y la sexta será una boutique. Para consolidar su posición en Colombia, en el pasado mes de Enero el operador abrió dos tiendas en el aeropuerto de Barranquilla, una Duty Free y una Duty Paid. En Cartagena además de la tienda recién inaugurada a finales del 2012, el Grupo Wisa abrirá su tienda en el area de llegadas y una tienda Duty Paid. “Con estas nuevas tiendas, llegaremos a 80 puntos de venta en la región, con un personal de 1, 400 empleados que ofrecen lo mejor en servicio a más de 15 millones de pasajeros”, concluye Rangel.

The Nuance Group/DFASS

The P&C section at Airside 1; given lastminute changes to gate assignments, Nuance and DFASS are looking at changing up the product mix slightly to cater to the largely Latin American clientele passing through the terminal

Adapting to change Despite a last-minute change in gate assignments, The Nuance Group and DFASS remain confident in the potential of their new stores at Orlando Airport

he Nuance Group and DFASS recently opened two new stores in Orlando International Airport, located in Airsides 1 and 4. The two locations cater largely to international passengers from Canada, South America, Britain and Europe, and the stores have been designed with this clientele in mind. Travelers can find luxury cosmetic brands such as MAC, Kiehl’s, Estée Lauder, Clinique and Lancôme, luxury fashion brands including Longchamp, Tumi, Gucci, Tag Heuer and Mont Blanc, plus a host of other high-end brands across the main duty free categories. Despite a last-minute change in gate assignments that has left Nuance Group and DFASS with the job of rearranging the product mixes at each of the stores to better cater to the differing passenger profiles at Airsides 1 and 4, Senior Vice President of Business Development at Nuance Group John Menchella and President, Ground Stores at DFASS Jon Potash tell Americas Duty Free that business has been good during the first few months of operation.

T 36


Americas Duty Free: Can you tell us a bit about the thinking behind the duty paid/duty free combination? Are you expecting a major part of the sales to come from the duty paid portion? John Menchella: This kind of concept does generate some incremental sales because it allows you to expand your customer base so that you can sell to the domestic traveler for all the items that you normally carry in a duty free shop, except for the bonded items, such as liquor and tobacco. We do this at other airports and results tend to vary. For example, in Orlando we actually don’t expect much in the way of duty paid sales because first of all, before the customer even gets to the airport, there are all kinds of factory outlet malls that carry high-end brands. Furthermore, they have quite a significant pre-security offering in Orlando. Having said that, we only began full operations in December, so we don’t have enough history right now to know exactly how much benefit we’ll see from the duty paid portion of the business. ADF: Can you tell me a bit about why Nuance Group and DFASS decided to partner on this initiative? What are the advantages for each company? JM: It’s a joint venture between Nuance and DFASS, but then we also have ACDB partners, which are a requirement in most government concessions in the US. Nuance and DFASS originally

“If we get the volumes and the mix that we expect to get based on the passenger information provided by the airport administration, we’re quite comfortable in our estimates.” John Menchella, Senior Vice President of Business Development, The Nuance Group

“We’re very excited with this opportunity. The initial business that we’ve seen is very encouraging.” Jon Potash, President, Ground Stores, DFASS

The Nuance Group/DFASS

The Airside 1 store at Orlando International Airport measures 243 square meters

partnered several years ago and we work together in Chicago O’Hare and Fort Lauderdale. The reason we came together is that there are certain synergies between the companies that we’re able to take advantage of. In terms of buying, some of it is regionally based and some of it is global. The North American region is the smallest region for Nuance. It represents a very small percentage of the overall business, whereas with DFASS, this is their home turf and they also have the inflight business. With respect to regional buying, there are certain advantages to teaming up with someone like DFASS on that. Nuance Group is also able to leverage some of its established infrastructure here on the airport side of things and so together we’re really taking advantage of our respective strengths. DF: Can you tell us a bit about the stores? JM: The Airside 1 store measures 243 square meters. The Airside 4 duty free shop is 467 square meters. In terms of design, what we did is to make the stores a lot more open and inviting. You’ll see much wider storefronts. Jon Potash: Yes, there’s a clearer path for the travelers to walk through and browse in each of the areas. JM: There’s more ease of use now, where luggage isn’t bumping into furniture. We also tried to make the stores more inviting and use the natural lighting available to us through the glass ceilings to make the stores brighter, more inviting and more spacious. When you’re in the concourse you can actually see inside the store and see focus brands. JP: There were some non-structural impediments in the previous store design that we removed, which really opened up the locations. ADF: What about the passenger profiles at Airsides 1 and 4? I understand there have been some changes since the opening was announced. JM: Airside 1 is primarily Canadian and Latin American travelers. What’s happened since the time of the bid is that they’ve shifted over some of the airlines that were supposed to be in Airside 4 to Airside 1. As such, the Latin American traffic is now going through Airside 1. In Airside 4, it’s primarily European, Mexican and Caribbean destinations. 38

ADF: This has to throw a bit of a wrench in the plan in terms of product mixes at the two locations… JM: Well, we built according to the information that was given to us at the time of the development and the bid. As in most airports, sometimes gating assignments get switched around. As an operator you have to react accordingly. We try to build flexible stores, but you can only do that to a certain extent. For example, we have a MAC store in Airside 4, which is a boutique. Of course, this is a brand that is very appealing to the Latin American customer. We don’t have that in the current Airside 1 location. Naturally, we’re going to have to revisit our assortment and adjust accordingly, but this is something that happens from time to time. JP: Of course, Airside 1 is a significantly smaller door, so we would limit the range to what we would fit most effectively in that space given the customer profile. JM: Although the demographics are different in Airside 4, there are obviously going to be the core ranges in both. However, where space allows and depending on the customer mix, we will have a greater range of specialty gifts in Airside 4. We currently have specialty cosmetic brands like MAC and Kiehl’s in Airside 4. We’re exploring options to enhance or somewhat modify the range over in Airside 1, particularly with the Brazilian PAX that are beginning to grow significantly there. JP: The general rule is that we look at the passenger mix and do an analysis of that passenger profile. We’re able to tap into global databases to understand what they buy. We have our own experience here in North America but we can also tap into a global database of information. We then design our assortments accordingly. JM: Because it’s a flexible environment anyway, we occasionally revisit and make adjustments accordingly. ADF: You’re quite bullish on your sales forecasts. Can you tell us a bit about what factored into your calculations? JM: When we arrive at our sales estimates there are some elements that are proprietary to us,


but another big factor is what the airport is telling us in terms of their international passenger volume growth. What are they telling us in terms of the mix, and so on? A good portion of our sales estimate is based on whether the airport’s estimates come through. If we get the volumes and the mix that we expect to get based on the passenger information provided by the airport administration, we’re quite comfortable in our estimates. However, again, it’s a moving target because as we know, things can change. We think it’s an achievable goal, but it should be kept in mind that the sales forecast is based on the assumptions that we had at the time of the bid. ADF: I understand you’ll be including a special American whiskey section at the Airside 4 store. Can you tell us about that? JM: The American whisky section will include a number of brands, but the predominant brand featured will be Jack Daniel’s, which is the strongest in the category and the one that is particularly appealing to the British passenger. JP: We’ll have at least two full back walls for personalization and a floor unit for adjunct merchandise such as gifting, which we have done at some of our other locations as well. This is the first of what we’ll do as we start to expand some of our areas. It’s the first category that we saw the opportunity to work with. ADF: Is it fair to say that the recently launched Sinatra Select will play a role in this initiative? Can we expect any big promotions or activations in relation to the variant? JP: We will certainly be including Jack Daniel’s Sinatra Select as it becomes available and we intend to give some promotional focus to that as well. It’s a high-profile, high-ticket item. We’ve already seen exceptional results in Las Vegas when the variant launched. ADF: All in all, it seems you’re happy with the overall project, despite the gate assignment hiccup… JM: We know that the administration is very pleased with the buildout. It exceeded their expectations and we’re very happy with it as well. We know that there is some fine-tuning that we’re going to do now that we have more information as things have changed. It’s a continuing story that is constantly evolving and we have to adjust our business based on the passenger volumes and the mix going through the airport. JP: We’re very excited with this opportunity. The initial business that we’ve seen is very encouraging. We’re looking forward to growing with the Orlando Airport Authority over the next seven-plus years.

Top Brands




In the liquor category, whisky, rum and vodka saw strong performance in 2012 at Top Brands’ stores; pictured are the El Salvador operations



Top Brands continues showing year-on-year organic growth as it expands the well known El Dorado Duty Free name to new markets


or the fifth consecutive year in 2012, Top Brands International continued its double-digit growth trend,” Juan Ameijeiras, Managing Director of Latin American & Caribbean Duty Free at Top Brands, tells Americas Duty Free. Just as important as the impressive figures posted at the operator’s El Dorado-branded duty free stores is the fact that the company exceeded its objectives for the year and doubled volumes in a number of popular duty free categories. In terms of bestsellers, fragrances and spirits continue to be the strongest categories. While Ameijeiras notes that fragrance sales were really across the board in 2012, he does point to Chanel, Carolina Herrera, Bvlgari and D&G as being strong luxury brands; Paco Rabanne, Hugo Boss, Lacoste and Mont Blanc doing well in the

The fragrances section in Top Brands’ El Salvador operations

premium section; and Beyonce, Shakira and Lady Gaga taking the top spots in lifestyle fragrances. In the liquor category, whisky, rum and vodka saw strong performance in 2012 at Top Brands’ stores. Popular names included Johnnie Walker, Buchannan’s, Chivas Regal and Old Parr in whisky; Flor de Caña and Bacardi in rum, with Zacapa taking the top spot in the premium rum segment; and Absolut, Stolichnaya and Finlandia performing well in vodka, with Grey Goose showing strong growth in the ultra-premium vodka segment.

Building the business “In line with our vision of offering shoppers the highest standard of service, which includes instore innovation and technology in addition to unmatched staff interaction, we’ve implemented Juan Ameijeiras, Managing Director of an aggressive renovation plan to upgrade the Latin American & Caribbean Duty Free, Top Brands image of our stores,” Ameijeiras explains. 40


Top Brands

A panoramic view of Top Brands’ current operations in Chilé

A render of one of five Top Brands stores upcoming in Chilé

A render of Top Brands’ upcoming Fragrance store in Chilé

The layout of many El Dorado Duty Free locations has already been modernized, and the operator plans to have the new branding implemented across all locations in the next 18 months. First on the list will be the company’s stores in El Salvador International Airport this year, with renovation work in other markets expected to be finished in the first half of 2014. The renovations, says Ameijeiras, offer both shoppers and supplier partners exciting new environments. New displays and different options for showcasing brands have gone a long way toward creating a sense of excitement on the shop floor. “In the stores that have already been renovated, we’ve achieved a significant impact,” Ameijeiras tells us. “Things are much more interesting for travelers and brand partners alike.” On the topic of new stores, Top Brands inaugurated its first three

El Dorado Duty Free stores in Chilé ’s Zona Franca de Iquique (ZOFRI) in February of this year. The stores measure 250 square meters and offer products in Liquor, Chocolates, Watches, Sunglasses, Health and Beauty and Fashion Accessories. Also recently opened under El Dorado’s new luxury store format is a 140-square-meter store in Cabo San Lucas. The Mexico locale is a port store dedicated to servicing largely high-income American and Canadian cruisers. Top Brands tells us that more than 350 cruise ships and 700,000 tourists per year visit Cabo San Lucas. Top Brands is also currently in the process of opening new stores in Uruguay on the border with Brazil. The first of the stores is expected to open in June of this year.

Glass half full

Adding to the team Juan Ameijeiras joined the Top Brands team in August of 2012, working in the capacity of Managing Director of Latin American & Caribbean Duty Free. He was tasked with the design of a strategic expansion plan. Indeed, given the new store openings in late 2012 and those planned over the course of the next two years, it’s clear that the plan is now in full effect. Ameijeiras has more than 23 years of international experience, having held various key roles with Revlon Overseas, including General Manager of Exports for Latin America & the Caribbean. “We’ve already gained significant ground at Top Brands in expanding the well known El Dorado Duty Free name to new markets,” says Ameijeiras, “and I’m looking forward to continuing to sustainably grow the business, ensuring that Top Brands maintains its reputation as a responsible, results-oriented travel retail operator “We currently operate 31 stores in six countries—Chilé, El Salvador, Panamá, Mexico, Puerto Rico and Belize,” he concludes. “We’ve got aggressive plans to expand our presence into additional markets over the short term.”



With regard to the economic outlook for Latin America in general, Ameijeiras says that he’s optimistic. “We’ve shown continued growth for a number of years now and forecasts for the region are still positive. Panamá and Chilé specifically have emerged as the Latin American countries with the most optimistic prospects, while moderate growth is forecast for Mexico and El Salvador. Finally, most other Latin American countries are forecast to grow this year at generally the same rate as they did in 2012.” In line with the above, Top Brands has an aggressive regional expansion plan. In addition to the three new stores opened in Chilé, the operator was awarded five more new stores in ZOFRI. Located on the seventh level of the mall, they will measure 400 square meters each and are expected to be inaugurated in December of this year. In combination with new store openings and renovations, Top Brands will focus on maximizing spend per head at its stores through staff training, new product launches and promotions that add value for consumers. In fact, Ameijeiras tells us that Top Brands is currently in talks to list a number of new brands at El Dorado Duty Free stores, but declined to give specifics until the details have been ironed out. He did tell us, though, that given El Dorado Duty Free’s already strong product mix, working to maximize sales of existent products in the stores will also be an area of concentration.

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Bright Star regularly revises its product mix as part of its annual action plan, swapping out underperforming names for hot new brands or tried and true favorites

Latin America Report

Leveling out Business in Latin America continues to grow, albeit at a slower pace, as operators opt to invest in new stores and renovations RYAN WHITE BY


mericas Duty Free learns from a number of Latin American operators that while growth was still the buzzword in 2012, year-on-year increases were generally more subdued. Two main concerns that came up in this year’s discussions with South American operators included the stability of the Brazilian Real and Argentineans spending less when traveling outside the country because of government policies and the relative value of the Argentinean Peso. More to the north in Central America and Mexico, business appears to be humming along, and Latin America as a whole is still performing well when compared to the rest of the world. The good news for South America is that with the World Cup and the Olympics expected to bring a slew of sports fans to Brazil and neighboring countries, duty free sales the region may be on the upswing again sooner rather than later..

P&C and promotion in Paraguay For Bright Star Duty Free, sales growth in 2012 climbed to 10% above 2011 statistics. Trade Manager Antonella Nuovo tells us that although these numbers are certainly respectable, things could have been even better if it weren’t for a number of circumstances beyond the operator’s control. “The devaluation of the Real, trade restrictions in Argentina and Pluna Airlines’ closure affected us during the second semester of 2012,” she explains. “Nonetheless, looking at our overall results for 2012 we did well, especially considering the fact that 2011 was a particularly good year for us.” In terms of categories, it’s no secret that one of Bright Star’s major concentrations is P&C, and Nuovo tells us that the category once again outperformed last year. Dolce & Gabbana, Dior, Calvin Klein and Chanel were top sellers in Perfumes, while Lancôme, Clinique and L’Occitane piqued the interested of Cosmetics consumers. “Of course, our objective is to always continue innovating and offering new options to travelers,” Nuovo explains. “As such, a number of new brands were introduced last year to a very good response, including Burt’s Bees and H2O.” Another major part of Bright Star’s promise to keep things interesting for passengers is regular promotions. In

December, for example, the operator gave shoppers a free fragrance with the purchase of US$150 or more in store. The objective was to raise the average basket and Nuovo says that results were heartening. “We’ve got an important project in the works for 2013 that will see our stores at Silvio Pettirossi Airport increase in size as a means of making them more easily navigable and bringing more brands into the mix,” Nuovo explains, although she notes that details aren’t yet available. Bright Star regularly revises its product mix as part of its annual action plan, swapping out underperforming names for hot new brands or tried and true favorites. With the renovations and the resultant new space, Nuovo tells us that this yearly activity will be kicked up a notch or two in 2013. “By the time ASUTIL and TFWA WE come around we’ll surely have more surprises to share with you, both in terms of products and renovation news,” hints Nuovo.

“The devaluation of the Real, trade restrictions in Argentina and Pluna Airlines’ closure affected us during the second semester of 2012.”



Antonella Nuovo, Trade Manager, Bright Star

WDFG’s bestselling categories in Latin America include such staples as P&C, Spirits, Tobacco and Confectionery

New concepts in Latin America At press time World Duty Free Group’s (WDFG) full year 2012 sales statistics weren’t available, but to the end of the third quarter of last year the business in Latin America was seeing double-digit growth over 2011. In terms of consolidated figures, the operator finished the third quarter with a year-on-year sales increase of 11.5%. While other regions of the world may see larger monthly or yearly fluctuations in the duty free categories that are popular with travelers, bestselling brands in WDFG’s Latin American business arm tend to be rather predictable. They include such staples as P&C, Spirits, Tobacco and Confectionery, says Nancy Santarelli, Head of International Operations LATAM at WDFG. In terms of popular brands, the list reads like a who’s who in each respective category, including Estée Lauder, Parbel, The tasting bar at Los Cabos Airport in Mexico; as can be expected, tequila is a favorite purchase for tourists passing through the airport Chanel, Dior and Procter & Gamble in P&C; Diageo and Bacardi in spirits, plus destination-driven liquors such as tequila in Mex- space double in size. WDFG is also planning to open the first standico, pisco in Peru, wine in Chile and rum in Jamaica; Philip Morris, alone MAC store in a Latin American airport at Cancun’s Terminal BAT and JTI in tobacco, as well as Imperial tobacco in destinations 3. The location is expected to measure 55 square meters. The opersuch as Mexico, where large numbers of British travelers tend to ator is hoping to roll the brand out in other Latin American counvacation; and Kraft, Cadbury and Ferrero in confectionery. tries in the future, in addition to introducing other exclusive brands “We’ve also noted an important new trend in destination-related to the region. Finally, Santarelli says a new arrivals store is set to be confectionery items,” says Santarelli. “This runs across all of the Latin opened at Sangster Airport. American countries in which we operate.” Given WDFG’s plans for its business in Latin America, it’s clear And on the topic of up and comers, leather goods are also on the that the company is bullish when it comes to the potential of the region upswing, with travelers searching out brands such as Longchamp, Sam- at large in 2013. We asked Santarelli for her specific opinion on some sonite and Kipling. Finally, a trend being noticed across the indus- key Latin American countries. try is an increasing appetite for electronic items. It’s no surprise that “In 2012 we secured the duty free concessions in Belem Airport in this category Apple takes the top spot. in Brazil. It’s a small airport but very important for us as it allows us In terms of new stores, November of last year saw two new loca- to plant the seeds for further growth in the country,” she explains. tions open, one arrivals and one departures, at Los Cabos Airport in “Brazil’s importance for travel retail will only increase in the future Mexico, thereby reinforcing WDFG’s leading presence at the airport as the World Cup and Olympics come to the country. since 2000. Furthermore, travelers are now reaping the benefits of a “We’re also hoping for good market performance in other councompletely renovated Fragrances section in WDFG’s Sangster Airport tries where we have operations—Mexico, Peru and Chile, for examstore in Montego Bay, Jamaica. ple,” Santarelli continues. “The case can be made that these countries Upcoming projects include the complete renovation of the depar- will see continued growth given relatively stable economies, low tures stores in Terminal 2 at Cancun Airport, which will see the retail inflation and also low unemployment rates.” THE AMERICAS DUTY FREE & TRAVEL RETAILING


Latin America Report

The storefront of Motta’s new Attenza Duty Free store in Bogota’s El Dorado Airport

Coming back to Quito “2012 was a good year for Attenza Duty Free,” says Erasmo Orillac, CEO of Motta Internacional, owner of the Attenza Duty Free Stores in several airports of the region. “In general passenger traffic in the airports where we operate grew in line with projections.” P&C and spirits, says Orillac, are always the company’s bestsellers. Furthermore, with two new stores—one departure and one arrivals—in Bogota’s El Dorado Airport and a passenger base ready and willing to spend, hopes are high for 2013 across all the major duty free categories. Motta also recently opened two new Attenza Duty Free stores at the New Quito International Airport in Ecuador. One of the new stores is a walkthrough location measuring 886 square meters. Located just after the immigration counters for international travelers, the operator has access to both departing and transiting passengers. A second smaller store measuring 266 square meters is located in the international arrivals section. 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. This results in higher traffic and larger airplane capacity for this part of the continent. The new airport opened in the first quarter of 2013. “We are very excited about our new project in Quito after 10 years of absence,” Orillac said. “Attenza Duty Free brings our distinguished shopping experience to all the passengers traveling through 46


this new airport, which serves Quito and will help to 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. “While our branding is immediately recognizable to travelers,” says Orillac, “where we really set ourselves apart from the pack is in customer service. Whether in Bogota, Quito or any of our other locations, making sure our clients receive the best treatment is paramount to Attenza’s success.”

“Whether in Bogota, Quito or any of our other locations, making sure our clients receive the best treatment is paramount to Attenza’s success.” Erasmo Orillac, CEO, Motta Internacional

Dufry’s renewal at Guarulhos will run to 2016

Strengthening bonds in Brazil It’s clear that selling to Brazilians is foremost on the minds of many operators in South America. Earlier this year, Dufry announced a major development that will see its dominant position within Brazil continue with the renewal of its concessions contract at Guarulhos until 2016. Dufry currently operates eight duty free shops at the airport with a total area of 4,500 square meters of retail space. The agreement also foresees that Dufry will enlarge its retail space by 2,100 square meters. The new operations are expected to start in the second quarter next year. The expansion of the commercial area will be located at the arrival and An aerial view of Shopping China’s gigantic flagship store in Pedro Juan Caballero

“More of what they want” Shopping China is another operator that has felt the pinch related to the devaluation of the Real in 2012 and the lingering effects of the economic crisis. The company notes that Brazilians, its bread and butter when it comes to shoppers, are still purchasing, albeit at a more subdued level, and sales did increase slightly last year over 2011. “All of our stores are focused very heavily on Brazilian cross-border travelers,” says CEO of Shopping China Felipe Cogorno. “The good news is that the Real appears to have stabilized at this point, although its value is still down from 2011. We feel that Brazilians will continue to be high spenders this year as their fear of purchasing subsides. As

“We know our clientele extremely well given our long history on the border with Brazil.” Felipe Cogorno, CEO, Shopping China

departure area of Terminal 2, adding almost 50% more retail space to Dufry’s activities at this airport. The expanded retail space will allow Dufry to further enhance its comprehensive range of products, and offer its clients international bestselling brands and a unique shopping experience. Julian Diaz, CEO of Dufry Group, commented: “We are very pleased about this new agreement with Guarulhos International Airport. The renewal allows us to further develop the business at Sao Paulo airport and with the new space we will be able to generate additional revenues very quickly. The renewal of our duty free contracts is a great platform to build on the future cooperation with Guarulhos International Airport and we are excited to develop the new space together with the airport’s team. The contract also secures and reinforces our position in Brazil and illustrates the quality of our operations, where we have developed a strong organization with deep knowledge of the Brazilian consumer. “Taking a broader view, we are privileged to have the opportunity to play an important role in the build-out of the Brazilian infrastructure,” Diaz adds. “The country enters an era of significant investments in infrastructure to support and promote accelerated economic growth. In this context, we are confident that our experience and knowledge of the travel retail market enables us to work closely with Guarulhos Airport reaching its full potential, offering an even better shopping experience to its passengers, and we are confident that this agreement is the beginning of a long-standing partnership.” such, we expect to continue growing as we have in the previous years.” As can be expected given its clientele, many of Shopping China’s top selling brands are suitably high end. Cogorno notes that the Michael Kors and Tommy Hilfiger brands are selling well in watches; Versace and Rayban are popular sunglasses brands; Whyte & MacKay, Dewars and Grey Goose are the spirits brands of choice; and Kit Kat, Toblerone, M&Ms and Lindor reign in the confectionery category. In terms of renovations, Shopping China is still working on outfitting the new space that was added to its flagship store in Pedro Juan Caballero last year. As can be expected, filling the additional 7,000 square meters of space that is now available there is a big task, especially considering the fact that the operator isn’t content to put just any old brands there. “We know our clientele extremely well given our long history on the border with Brazil,” explains Cogorno. “As such, we’re very exacting in what we list in the stores. It’s not just a matter of filling the new space at the flagship store; it’s a matter of making sure the most attractive brands across categories are there and displayed in a manner that suits their status.” Additionally, a good indication of just how many people pass through Shopping China’s flagship store on a given day is the fact that the company last year added 800 new parking spaces. “While very different from products and store renovations, this is still a very important part of our customer service commitment,” explains Cogorno. Objectives for this year include continuing construction on a planned store in Uruguay measuring an impressive 40,000 square meters and introducing new brands Shiseido, Azzaro, Thierry Mugler and Michael Kors purses in accessories. Finally, jewelry is a growing category that Shopping China currently doesn’t deal in, but this year the company has plans to start carrying such brands as Majorica, Guess and Michael Kors, among others. “We want to continue providing our customers with more of what they want,” concludes Cogorno. “If this means larger stores, we’ll do it. If it means adding different categories, we’ll do it. For us, the key to continued growth is listening to our customers and going above and beyond in our efforts to give them what they want.” THE AMERICAS DUTY FREE & TRAVEL RETAILING


Latin America Report

London Supply’s annual charity golf tournament raised US$303,585 for Puerto Iguazú Public Hospital

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The World’s Favourite Belgian Chocolates

© 2013 Chocolaterie Guylian N.V., Belgium



Commercial Manager of London Supply Magdalena Ducos tells Americas Duty Free that the company ended 2012 about 20% ahead of the year before in terms of sales. “The results are in line with our initial forecasts at the beginning of 2012,” she says. “The good news is that we are still welcoming a lot of Brazilian travelers who even just a few short years ago weren’t traveling and buying as much.” Like other operators in the region, London Supply’s business is sensitive to fluctuations in the valuation of the Real, but Ducos says that one of the company’s saving graces is its unique in-store concept—the stores tend to attract travelers as touristic destinations in their own right, and those visiting wonders such as Iguazú Falls tend to see London Supply’s stores as an equally important stop on their trips. In terms of renovations that travelers can expect to see finished in the short to mid term, Ducos tells us that the new underground parking lot at the Iguazú location, featuring 600 spaces, will be ready in April. Also in Iguazú, an initiative is underway to double the size of the current store. Given the scope of the project and heavy rains of late, Ducos tells us that this project won’t be completed until the first quarter of 2014. London Supply is currently working on a theme for the new section of the Iguazú store, which will feature new sportswear and luggage sections, as well as increased space for confectionery, spirits and P&C. “I can’t go into details,” she says, “but rest assured that the new section will be just as spectacular as the rest of the store.” In other London Supply news, January saw the operator’s 9th annual charity golf tournament take place. A total of 132 golfers joined in the fun and US$303,585 was raised for Puerto Iguazú Public Hospital. “We were fortunate enough to receive sponsorship support from nearly all of our supplier partners,” explains Ducos. “Whether it’s in store or working for a good cause such as Puerto Iguazú Public Hospital, we pride ourselves on the relationship we have with our suppliers. We look forward to continuing to grow the business with them in 2013 and helping more and more people in our philanthropic efforts under the guidance of London Supply’s President Teddy Taratuty.”

Latin America Report One of Bright Star’s main objectives is to continue innovating across categories to keep shoppers coming back for new products and special offers

Allanando el camino

Los negocios en Latinoamérica van en aumento, aunque a paso lento, mientras los operadores optan por invertir en nuevas tiendas y renovaciones


umerosos operadores latinoamericanos le han revelado a Americas Duty Free que, si bien el crecimiento siguió siendo la palabra de orden en el 2012, la comparación de incrementos de año en año resultó generalmente más modesta. Las dos preocupaciones principales que salieron a la luz en las conversaciones de este año con operadores suramericanos, fueron la estabilidad del real brasileño, y la reducción de los gastos de los argentinos en sus viajes al exterior, a causa

de las políticas gubernamentales y el valor relativo del peso argentino. Más al norte, en Centroamérica y México, el negocio marcha y Latinoamérica en general experimenta un buen rendimiento si se compara con el resto del mundo. La buena noticia para Suramérica es que, como se espera que la Copa Mundial y las Olimpiadas atraigan numerosos aficionados al deporte a Brasil y los países vecinos, las ventas duty free en la región se incrementarán más temprano que tarde.

Perfumería, cosméticos y promoción en Paraguay Para Bright Star Duty Free, el crecimiento en las ventas ascendió en el 2012 al 10% por encima de las estadísticas. Antonella Nuovo, Gerente Comercial de la firma, nos reveló que, si bien las cifras son realmente respetables, podrían haber sido mejores de no existir varias circunstancias ajenas al control del operador. “La devaluación del real, las restricciones comerciales en Argentina y el cierre de Pluna Airlines nos afectaron durante el segundo semestre del 2012”, explica. “No obstante, si analizamos nuestros resultados generales del 2012 nos fue bien, considerando especialmente el hecho de que el 2011 fue un año particularmente bueno para nosotros”. En términos de categorías, no es secreto para nadie que una de las principales concentraciones de Bright Star es en perfumería y cosméticos, y Nuovo añade que la categoría volvió a superar las metas el año pasado. Dolce & Gabbana, Dior, Calvin Klein y Chanel tuvieron ventas importantes en perfumes, mientras que Lancôme, Clinique y L’Occitane despertaron el interés de los consumidores de cosméticos. “Por supuesto, nuestro objetivo es seguir siempre innovando y ofreciéndoles nuevas opciones a los viajeros”, explica Nuovo. “Como tal, el año pasado se introdujeron varias marcas con una respuesta muy buena, como Burt’s Bees y H2O”. 50


Otro componente importante de la promesa de Bright Star de mantener el interés de los pasajeros son las promociones regulares. Por ejemplo, en diciembre pasado, el operador les ofreció a los compradores una fragancia gratis con la compra de US$150 o más en la tienda. El objetivo fue incrementar la compra promedio, y Nuovo asegura que los resultados fueron muy estimulantes. “Tenemos un proyecto importante en marcha para el 2013, que consistirá en el incremento de la extensión de nuestras tiendas en el Aeropuerto Silvio Pettirossi, como medio de hacerlas más fácilmente navegables e incorporar más marcas a la mezcla”, explica Nuovo, aunque aclara que no puede revelar aun los detalles. Bright Star revisa con regularidad su combinación de productos como parte de su plan anual de acción, sustituyendo los nombres con escaso rendimiento por marcas nuevas y populares, o que han demostrado ser favoritas con el paso del tiempo. Según Nuovo, con las renovaciones y el nuevo espacio resultante, esta actividad anual se incrementará en uno o dos puntos en el 2013. “Cuando lleguen las fechas de inicio de ASUTIL y TFWA WE, tendremos con toda seguridad más sorpresas que revelarle, tanto en términos de producto como de noticias de renovación”, asegura Nuovo.

©2013 General Cigar, Inc.

©2013 General Cigar, Inc.

Latin America Report

One of WDFG’s Los Cabos stores; the operator has been present in the airport since 2000

Nuevos conceptos en Latinoamérica Al cierre de esta edición, las estadísticas de ventas totales del año 2012 de World Duty Free Group (WDFG) no estuvieron disponibles, pero al final del tercer trimestre del año pasado, el negocio en Latinoamérica experimentaba un crecimiento de dos dígitos con relación al 2011. En términos de cifras consolidadas, el operador culminó el tercer trimestre del 2011 con un incremento de año en año ascendente al 11.5%. Si bien otras regiones del mundo pudieran experimentar mayores fluctuaciones mensuales o anuales en las categorías duty free que gozan de popularidad entre los viajeros, las marcas con mejores ventas en la rama comercial latinoamericana de WDFG tienden a ser más predecibles, y cuentan con productos básicos como perfumería y cosméticos, espirituosos, tabaco y confitería, según afirma Nancy Santarelli, Directora de Operaciones Internacionales en Latinoamérica de WDFG. En lo referente a marcas popular, la relación se asemeja a una lista de componentes importantes en cada categoría respectiva, como Estee Lauder, Parbel, Chanel, Dior y Procter & Gamble en perfumería y cosméticos; Diageo y Bacardi en espirituosos, así como licores orientados a destinos como el tequila en México, el pisco en Perú, el vino en Chile y el ron en Jamaica; Philip Morris, BAT and JTI en tabaco, y el tabaco Imperial en destinos como México, donde acostumbran a vacacionar numerosos turistas británicos; y Kraft, Cadbury y Ferrero en confitería. “También notamos una tendencia nueva e importante en los artículos de confitería relacionados con destinos turísticos”, añade Santarelli. “Esto ocurre en todos los países latinoamericanos en los que operamos”. En cuanto a las categorías de nueva promoción, los artículos de piel están en boga, y los viajeros buscan marcas como Longchamp,

Samsonite y Kipling. Finalmente, otra tendencia evidente en la industria es un apetito creciente en los artículos electrónicos. Y no es sorpresa que, en esta categoría, Apple sea la marca principal. En términos de nuevas tiendas, en noviembre pasado se inauguraron dos nuevas tiendas, una en la sección de llegadas y otra en la de salidas en el Aeropuerto de Los Cabos en México, lo cual solidifica la presencia dominante de WDFG en el aeropuerto desde el año 2000. Además, los viajeros se están beneficiando con una sección de Fragancias totalmente renovada en la tienda de WDFG en el Aeropuerto Sangster de Montego Bay, Jamaica. Entre los próximos proyectos está la renovación complete de las tiendas de la sección de salidas en la Terminal 2 del Aeropuerto Cancún, en la que se duplicará el espacio minorista. WDFG también tiene en proyecto la apertura de su primera tienda MAC independiente en aeropuertos latinoamericanos, en la Terminal 3 de Cancún. Se espera que el establecimiento ocupe 55 metros cuadrados. El operador espera llevar la marca a otros países latinoamericanos en el futuro, además de introducir otras marcas exclusivas en la región. Finalmente, Santarelli afirma que se inaugurará una nueva tienda en la sección de llegadas del Aeropuerto Sangster. Dados los planes de WDFG para su negocio en Latinoamérica, está claro que la compañía es optimista en lo tocante al potencial de la región en general durante el 2013. Al respecto, le pedimos a Santarelli su opinión específica sobre algunos países latinoamericanos claves. “En el 2012 aseguramos las concesiones duty free en el Aeropuerto de Belem en Brasil. Es un aeropuerto pequeño pero muy importante para nosotros, porque nos permite sembrar las semillas de un posterior crecimiento en el país”, explica Santarelli. “La importancia de Brasil para la industria minorista de viajes sólo se incrementará en el futuro, cuando lleguen Copa Mundial y las Olimpiadas”. “También esperamos una buena marcha del mercado en otros países donde tenemos operaciones: México, Perú y Chile, por ejemplo”, prosigue Santarelli. “Se puede afirmar que estos países experimentarán un crecimiento continuo, dadas sus economías relativamente estaNancy Santarelli, Head of International Operations LATAM, WDFG bles, la baja inflación y, además, las tasas de desempleo, también bajas”.

“In 2012 we secured the duty free concessions in Belem Airport in Brazil. It’s a small airport but very important for us as it allows us to plant the seeds for further growth in the country.” 52


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Latin America Report

Regreso a Quito “El 2012 fue un buen año para Attenza Duty Free”, asegura Erasmo Orillac, director ejecutivo de Motta Internacional, propietaria de Attenza Duty Free Tiendas en varios aeropuertos de la región. “En general, el tráfico de pasajeros en los aeropuertos donde operamos aumentó en correspondencia con las proyecciones". Según Orillac, las categorías de perfumes y cosméticos, así como los espirituosos, son siempre los que más vende la compañía. Además, con sus dos nuevas tiendas—una en la sección de salidas y otra en la de llegadas—en el Aeropuerto El Dorado de Bogotá, y una base de pasajeros lista y proclive a gastar, tienen grandes esperanzas para el 2013 en las principales categorías duty free. Recientemente, Motta inauguró dos nuevas tiendas Attenza Duty Free en el Aeropuerto International Nuevo Quito en Ecuador. Una de las nuevas tiendas es un establecimiento de tráfico obligado que mide 886 metros cuadrados. El operador, ubicado justo a continuación de los puestos de inmigración para pasajeros internacionales, tiene acceso tanto a los viajeros que salen como a los que están en tránsito. Además, una segunda tienda más pequeña, con 266 metros cuadrados de extensión, está ubicada en la sección de llegadas internacionales.

Dufry currently operates eight duty free shops at the Guarulhos Airport with a total area of 4,500 square meters of retail space, with 2,100 square meters to be added in

Fortalecimiento de lazos en Brasil Está claro que venderles a los brasileños es una idea bien presente en las mentes de numerosos operadores en Suramérica. A principios de año, Dufry anunció un acontecimiento importante que propiciará la continuidad de su posición dominante en Brasil, con la renovación de su contrato de concesiones en Guarulhos hasta el 2016. Dufry opera actualmente ocho tiendas duty free en el aeropuerto, con un área total de 4,500 metros cuadrados de espacio comercial. El convenio también pronostica que Dufry ampliará su espacio comercial en 2,100 metros cuadrados. Se espera que las nuevas operaciones comiencen en el segundo trimestre del año. La expansión del área 54


Motta’s departures store at Bogota’s El Dorado Airport

El Aeropuerto Internacional Nuevo Quito se describe como único en su tipo en la región, debido a que es el primero en Suramérica con una infraestructura totalmente nueva. Esto da como resultado un mayor tráfico y acceso a aeronaves de mayor capacidad a esta parte del continente. El nuevo aeropuerto fue inaugurado en el primer trimestre del 2013. “Estamos muy entusiasmados con nuestro nuevo proyecto en Quito luego de 10 años de ausencia”, afirma Orillac. “Attenza Duty Free lleva nuestra distinguida experiencia de compras a todos los pasajeros que pasan por este nuevo aeropuerto, que presta servicios a Quito y contribuirá a aumentar el turismo y los viajes de negocios a Ecuador. Nos hace felices ampliar nuestra red de tiendas Attenza a este nuevo sitio donde podemos ofrecerles a nuestros clientes nuestro servicio y nuestros productos”. “Si bien nuestra identidad de marca es inmediatamente reconocible para los viajeros”, continúa Orillac, “donde realmente nos distinguimos de la competencia es en el servicio al cliente. Ya sea en Bogotá, Quito o en cualquiera de nuestros establecimientos, garantizar que los clientes reciban el mejor tratamiento es de suma importancia para el éxito de Attenza”. comercial estará ubicada en el área de llegadas y salidas de la Terminal 2, lo cual incorpora casi un 50% de espacio adicional a las actividades de Dufry en este aeropuerto. El espacio comercial ampliado propiciará que Dufry incremente aun más su gama integral de productos, y les ofrezca a sus clientes marcas internacionales de gran venta, y una experiencia de compras única. “Estamos muy complacidos de este nuevo convenio con el Aeropuerto Internacional Guarulhos. La renovación nos permite desarrollar aun más el negocio en el aeropuerto de Sao Paulo, y con el nuevo espacio podremos general rápidamente ingresos adicionales. La renovación de nuestros contratos duty free es una gran plataforma para aprovechar la futura cooperación con el Aeropuerto Internacional Guarulhos, y nos entusiasma crear juntos el nuevo espacio con el equipo del aeropuerto. El contrato también asegura y solidifica nuestra posición en Brasil, y ejemplifica la calidad de nuestras operaciones, donde hemos creado una fuerte organización con un profundo conocimiento del consumidor brasileño”, comenta Julián Díaz, director ejecutivo de Dufry Group. “Y con una visión más amplia, tenemos el privilegio de contar con una oportunidad de desempeñar un papel importante en la construcción de la infraestructura brasileña”, añade Díaz. “El país entra en una etapa de inversiones significativas en infraestructura, para apoyar y promover el crecimiento económico acelerado. En este contexto, confiamos en que nuestra experiencia y conocimiento del mercado minorista de viajes nos permita que nuestra colaboración con el Aeropuerto Guarulhos alcance su máximo potencial, ofreciendo una experiencia de compras mucho mejor a sus pasajeros, y confiamos en que este convenio sea el inicio de una alianza duradera”.

Latin America Report

Given the spending habits of its largely Brazilian clientele, many of the products offered at Shopping China’s stores are suitably high end

“Más de lo que desean” Shopping China es otro operador afectado por la devaluación del real en el 2012 y los efectos prolongados de la crisis económica. La compañía destaca que los brasileños, su renglón principal en lo tocante a compradores, siguen comprando, aunque a un nivel más modesto, y las ventas se incrementaron ligeramente el año pasado, en comparación con el 2011. “Todas nuestras tiendas están concentradas intensamente en los viajeros brasileños que cruzan la frontera”, explica Felipe Cogorno, director ejecutivo Shopping China. “La buena noticia es que aparentemente, el real se ha estabilizado en este momento, aunque su valor sigue por debajo del alcanzado en el 2011. Creemos que los brasileños seguirán siendo grandes compradores este año después que se disipe su miedo a comprar. Como tal, esperamos seguir creciendo como lo hemos hecho en años anteriores”. Como es de esperar, dada su clientela, gran parte de las marcas de mejores ventas de Shopping China son razonablemente de lujo. Cogorno explica que las marcas Michael Kors y Tommy Hilfiger están disfrutando de buenas ventas en la categoría de relojes; que Versace y Rayban son marcas populares de espejuelos de sol; Whyte & MacKay, Dewars y Grey Goose son las marcas de licores favoritas; y Kit Kat, Toblerone, M&Ms y Lindor dominan en la categoría de confitería. En cuanto a renovaciones, Shopping China sigue su trabajo de equipamiento del nuevo espacio incorporado el año pasado a su tienda en Pedro Juan Caballero. Como se esperaba, llenar los 7,000 metros cuadrados adicionales de espacio disponible es una tarea ardua, considerando especialmente el hecho de que el operador no se contenta con colocar allí marcas viejas. “Conocemos muy bien a nuestra clientela, dada nuestra extensa historia en la frontera con Brasil”, explica Cogorno. “Como tal, somos muy exigentes en lo que colocamos en las tiendas. No es una simple cuestión de llenar el nuevo espacio en la tienda insignia, sino de garantizar la presencia de las marcas más atractivas, y exhibirlas de manera que se correspondan con su estatus”. Además, un buen indicador de la cantidad de personas que pasan por la tienda insignia de Shopping China en un día específico es el hecho de que el año pasado, la compañía añadió 800 espacios nuevos para estacionamiento. “Aunque es muy diferente de las renovaciones de productos y de la tienda, sigue siendo una parte muy importante de nuestro compromiso con el servicio al cliente", añade Cogorno. Entre los planes para este año está proseguir la construcción de una tienda programada en Uruguay, con una impresionante extensión de 40,000 metros cuadrados, e introducir las nuevas marcas de bolsos Shiseido, Azzaro, Thierry Mugler yMichael Kors en accesorios. Finalmente, aunque la joyería es una categoría en crecimiento que no opera actualmente Shopping China, pero este año la compañía proyecta incorporar marcas como Majorica, Guess y Michael Kors, entre otras. “Queremos seguir proporcionándoles a nuestros clientes lo que desean. Si esto equivale a tiendas más grandes, lo haremos. Si implica la incorporación de diferentes categorías, lo haremos. Para nosotros, la clave del crecimiento continuo es escuchar a nuestros clientes, y esforzarnos al máximo por darles lo que quieren”, concluye Cogorno. 56


The new underground parking lot at London Supply’s Iguazú location, featuring 600 spaces, will be ready in April

El elemento escénico Magdalena Ducos, Gerente Comercial de London Supply, le revela a Americas Duty Free que la compañía finalizó el 2012 un 20% por encima del año anterior en términos de ventas. “Los resultados se corresponden con nuestros pronósticos iniciales a principios del 2012”, afirma. “La buena noticia es que seguimos recibiendo numerosos viajeros brasileños, que incluso hace pocos años no viajaban ni compraban tanto”. Al igual que otros operadores en la región, el negocio de London Supply es sensible a las fluctuaciones en el valor del real, pero Ducos destaca que uno de los factores que salva a la compañía es su concepto único del interior de la tienda, pues los establecimientos tienden a atraer a los viajeros como destinaciones turísticas en sí, y quienes visitan maravillas naturales como las Cataratas del Iguazú son proclives a considerar las tiendas de London Supply como una parada igualmente importante en sus viajes. En lo referente a las renovaciones concluidas que los viajeros pueden esperar a corto y mediano plazo, Ducos afirma que el nuevo estacionamiento subterráneo en el establecimiento de Iguazú, que cuenta con 600 espacios, estará listo en abril. Y también en Iguazú se está llevando a cabo una iniciativa para duplicar la extensión de la tienda actual. Dada la naturaleza del proyecto y las intensas lluvias que afectaron la zona recientemente, Ducos afirma que el proyecto no estará terminado hasta el primer trimestre del 2014. London Supply está trabajando actualmente en un tema para la nueva sección de la tienda de Iguazú, que contará con nuevas secciones de ropa deportiva y equipaje, así como un mayor espacio para confitería, espirituosos y perfumes y cosméticos. “No puedo ofrecer más detalles, pero les aseguro que la nueva sección será tan espectacular como el resto de la tienda”, afirma la alta funcionaria del operador. En otras noticias de London Supply, el operador realizó en enero su noveno evento anual de golf con fines benéficos. Un total de 132 golfistas participaron de la diversión, y se recaudaron US$303,585 para donarlos al Hospital Público de Puerto Iguazú. “Fuimos lo suficientemente afortunados de recibir el patrocinio de casi todos nuestros suministradores”, explica Ducos. “Ya sea en la tienda o en el trabajo por una buena causa como el Hospital Público de Puerto Iguazú, nos enorgullecemos de la relación que tenemos con nuestros suministradores. Esperamos seguir incrementando los negocios con ellos en el 2013 y ayudar a más y más personas en nuestras iniciativas filantrópicas bajo la dirección de Teddy Taratuty, Presidente de London Supply”.

ARI North America


great white north

Aer Rianta International’s Canadian operations achieve solid performance in 2012 on the back of innovative in-store promotions and events BY



mericas Duty Free recently had the opportunity to speak with John Bolger, Regional Manager – North America and Caribbean at Aer Rianta International (ARI), about how the company performed last year in its Canadian operations and what’s in the pipeline for 2013. He tells us that sales in Canada during 2012 were good for the company, largely due to a concentration on theatrical in-store promotions. Furthermore, despite competitive pricing in the domestic liquor market, Bolger says the outlook for 2013 in Canada is good due to the duty free industry’s generally strong performance in the country.

The international transborder store in Montreal welcomed Irish dancers for two special events on March 15 and 16, 2012; at press time, a similar event was being planned for this year

locations such as Ottawa,” Bolger says. “All of this was achieved on the back of fairly flat traffic during the year.” In terms of the top-selling categories at ARI’s stores in Canada, P&C, Spirits and Tobacco were the most popular. In recognition of a trend that a number of operators have commented on lately, Bolger tells us that there was a noteworthy improvement in ARI North America’s wine sales, especially during the charter season, which runs from November to March/April. When asked who is buying, Bolger told us that the company’s customer base “is primarily Canadian on the international side,” with an “equal split between Canadians and Americans on the transborder side.” In terms of the Canadian operations in general, Quebec is ARI North America’s main

Ending the year on a high note “Sales for 2012 in Canada reached another record level, and we were particularly pleased with the improvement in some of our smaller 58


market, and despite tough conditions largely due to a sluggish economy, the operator has still shown some growth in the province. “In this economic climate, customers are more careful on spending on high ticket items,” says Bolger, “so we have to become more focused on travel retail exclusives.” In addition to selling wares that travelers can’t find outside of airports, ARI North America has seen success with categories such as sunglasses, souvenirs and confectionery. Overall, says Bolger, an attractive product mix also helped sales in 2012.

Keeping it interesting Late in the year, many tourists tend to visit Montreal to enjoy its colorful autumn landscapes, and ARI North America took advantage of the increased travelers by targeting two

“Clearly, the competitiveness of our duty free offer [over domestic retailers] represents an opportunity for us and this will be a major focus in 2013 for ARI North America.” John Bolger, Regional Manager – North America and Caribbean, Aer Rianta International

ARI North America

A recent maple syrup promotion at one of ARI’s Montreal stores was very popular, with sales of maple syrup products increasing by 61%

direct flights to Japan from All Nippon Airways and Japan Airlines. The objective of the event was to target the booming Asian market with a tasting of local confectionery products. As can be imagined, maple-flavored treats played a significant role. “‘The sugar of snow,’ or ‘La tire d’érable,’ is one of the most well known winter traditions in Québec,” explains Bolger. “It consists of boiling maple syrup, which is then lifted with a wooden stick from a ‘snow tray.’” In an innovative move, Biodélices, a Canadian company and producer of organic maple syrup, installed a full refrigeration system at one of ARI North America’s Montreal stores in order to recreate the sugar of snow for the passengers. The promotion was very popular, with sales of maple syrup products increasing by 61% during the period of the activation. “The event brought a warm ambience to the duty free store and it was a great opportunity to promote local brands,” says Bolger. “Some of the customers mentioned they were delighted by the Canadian traditions and very satisfied to bring back home delicious and authentic Canadian souvenirs.” Another popular event in Canada, and indeed throughout many parts of the world, is St. Patrick’s Day. “The St. Patrick’s Day parade is one of the oldest in Montreal and one of the most important celebrations in the city,” notes Bolger. “As such, we brought a piece of our own Irish tradition directly into the shops.” The international transborder store in Montreal welcomed Irish dancers for two 60

The sugar of snow, or ‘La tire d’érable,’ is one of the most well known winter traditions in Québec; recently, visitors to ARI’s Montreal store got a chance to experience the tradition firsthand A recent promotion at ARI in Montreal targeted Asian travelers and focused on traditional Canadian products

special events on March 15 and 16, 2012. The objective was to give to the customers an Irish experience during their shopping at the duty free store. The dance was performed by a local group called Celtic Grace and generated a significant amount of buzz at the location. At press time, a similar event was being planned for this year.

Moving forward We asked Bolger about his opinion on the general state of affairs in North American duty free and he told us customer awareness of the savings that duty free offers is still not as high as it could be. However, he noted that in a way this is a positive: “Clearly, the competitiveness of our duty free offer represents an opportunity for us and this will be a major focus in 2013 for ARI North America. “There are also differences between the Canadian market and the US,” he continues. “In Canada, all the major airports have placed strong emphasis on duty free and they clearly see the commercial benefit of this sector. Our own airport partners give us great support in this regard. We demonstrate clear savings


versus downtown—generally at least 20%— although in the case of liquor the pricing policy of the provincial liquor board can make it difficult to be competitive on price with other international airports.” Different dynamics in the US, says Bolger, mean that many times duty free isn’t given as high a profile in airports’ commercial areas. Furthermore, savings over the US domestic market can be harder to identify because of very competitive prices. In some cases, this makes it more difficult for ARI North America to communicate the value of the duty free message in Canada to American travelers. Overall, however, Bolger notes that the duty free industry at large in Canada has shown “strong growth” in 2012, with final numbers showing an increase of almost 7% for the country as a whole. “There can be great optimism for the future,” he says. Bolger ended by telling us that ARI North America will continue to up the ante when it comes to giving shoppers a more memorable experience in its stores. Next on the todo list is an exciting renovation for the company’s Montreal stores. As plans are still being laid, he couldn’t give us specifics, but did say that the renovations “will bring the stores more into the 21st century and offer our customers a better shopping experience.”

Regional Report: Uruguay

Uruguay has a lot of things going for it when it comes to duty free, but what does the future hold for the country as growth levels out in South America? BY RYAN WHITE he World Bank recently released its economic outlook for Latin America. Apart from external factors such as oil prices and capacity constraints in certain countries, a recent deceleration in growth in South America was blamed largely on the sharp deceleration of growth in the economic behemoth that is Brazil. While mentions of Brazil often pepper discussions of the duty free industry in Uruguay, Americas Duty Free decided to take a fresh approach by asking a number of companies what it’s like to work within Uruguay—touching on everything from government regulations and infrastructure to geography and culture—as opposed to viewing it through the lens of its oft-discussed neighbor. The World Bank notes that “growth in Uruguay eased from a robust 8.9% rebound in 2010 to a still strong 5.7% growth in 2011.” Much like many other Latin American countries, growth in Uruguay


is expected to be more subdued in the near future, forecast at an average of 4% over the next four years. Despite worries over Uruguay’s dependence on Brazil, the World Economic Forum’s Global Competitiveness Report 2013 notes that “Uruguay still benefits from one of the best functioning institutional set-ups in the region.” However, the organization expresses concerns about whether Uruguay can sustain the growth it has experienced in recent years. Our discussions with duty free executives who do business in Uruguay tend to parallel the thoughts presented in the World Economic Forum’s report, and indeed thoughts on South America in general. While growth is slowing, there’s still an attitude of optimism for the region in general, and given a governmental and infrastructural framework that is often seen as being a cut above many other Latin American countries, this optimism seems to be amplified when speaking of Uruguay specifically.

“A bright future”

Robert De Monchy


Robert De Monchy, Founder of distribution company MONARQ Group, tells Americas Duty Free that for a duty free spirits supplier, Uruguay offers a number of advantages: “Uruguay is on the border with Brazil and many of the duty free zones there target high-spending Brazilian travelers,” he explains. “Additionally, there is excellent duty free retailing at the new Carrasco Airport.” De Monchy went on to tell us that the port of Montevideo gives easy access to neighboring countries Argentina and Paraguay. Furthermore, for a spirits distributor especially, the port is important because it allows MONARQ to easily supply cruise ships and commercial vessels. Indeed, MONARQ is well versed in doing business in the


country, with partners that include Kraudal Trading, Neutral, Pramsa, UETA and more. De Monchy echoes the World Bank’s sentiments that Uruguay may be too reliant on other countries—Brazil, in his opinion—but generally believes that a number of characteristics converge to make the country a good bet for continued growth in years to come. “I believe Uruguay has quite a bright future ahead,” he explains. “The political system is stable and administrative, business and banking structures are well developed. Uruguay is historically a trading nation with an open view to the world, and businesspeople are generally well educated and speak English.”

A distinct ambiance

Felipe Cogorno

“The duty free retail landscape in Uruguay has been very thoroughly explored by a number of businesses,” says CEO of Shopping China Felipe Cogorno, “which gives travelers myriad choices when it comes to shopping. Furthermore, it’s a very touristic country that is easily accessible by a number of nationalities.” Cogorno echoes Robert De Monchy in noting that the Port of Montevideo is an important aspect to Uruguay’s position as a South American economic power. “Given the ease of access for ships, Uruguay has developed a system that facilitates the importation of products,” he says. In terms of who is visiting Uruguay, Cogorno

says that the main traveler is upper middle class. “There are many families visiting Uruguay looking for the distinct ambience of the country, which can be described as a mix of European and Latin cultures and values,” he says. As to what the future holds for Uruguay, Cogorno notes that investment in the country is at an all-time high. “This has helped to make Uruguay a very stable place to do business,” he explains. “Furthermore, given the growth of neighboring Brazil and the frequency that Brazilians travel to and purchase in Uruguay, I feel one can certainly make a case that the country will continue to flourish in the years to come.”

“A very good business opportunity”

Rene Dufry

In the case of Dufry, Rene Riedi, COO of region Latin America, tells us that the company’s airport business in Uruguay—a total of 2,400 square meters spread across two stores at Carrasco Airport in Montevideo and one store measuring 860 square meters at Punta del Este Airport—was impacted last year due to the bankruptcy of Pluna Airlines. As such, Dufry developed a contingency plan to minimize negative effects on the business. Riedi tells us that the forecast for 2013 in this regard is looking much better. “We are confident that the trend will be reversed in 2013 as Brazilian and Argentinean airlines have already started to increase frequencies to and from Uruguay,” he says. “There are also some Uruguayan government plans to launch a new airline.” While it’s clear that border stores such as Shopping China are catering largely to Brazilians, Riedi tells us that Uruguayans are the main shoppers at Dufry’s airport stores, followed by Brazilians and Argentineans. In terms of focus categories directed at these shoppers, Dufry’s Uruguayan stores are in

line with the group’s general concentration on P&C, luxury goods, confectionery/food and wine & spirits. To get a sense of the importance of Uruguay to Dufry, we asked Riedi why the airport stores, acquired in 2011, were an attractive option for the company: “Dufry acquired the operations in Uruguay, Argentina and Ecuador as part of its business development plan for South America as it considers this region to have great potential for growth in terms of a tourist destination,” he says. “Furthermore, South America is an emerging market, which is part of our overall strategy at Dufry. “Business in Uruguay is a key in the region given the country’s strategic position between Argentina and Brazil, thereby positioning itself as a transit country between the two,” Riedi concludes. “The ‘airlift’ between Buenos Aires and Montevideo carries a lot of business travelers between Argentina and Uruguay, which over the year generates a very good business opportunity for us.”

Fulfilling obligations

Alejandro Sosa

A major influencer for trading in Uruguay is “the ease of doing business, combined with the fact that the government has always fulfilled its obligations and has a history of being serious when it comes to regulations and laws,” says Alejandro Sosa, Vice President of Uruguay-based distributor Lucas-Calcraft. In terms of commenting on the travel retail landscape in and around Uruguay, Lucas-Calcraft is particularly well suited to the task as the company works with such operators as Dufry, Buquebus/Bernabel, UETA, Neutral, Siñeriz, Mannah, Shopping China, Laser Comercial and Perfumerias Vicencio. Sosa agrees with other interviewees in that when it comes to logistics, it doesn’t get much better than Uruguay given the country’s location and reputation for efficiency. Furthermore, he cites a uniform national tax system independent of individual states and the relative simplicity of setting up a business as other big advantages.

Among the various modes of travel (air, land and ferry), Sosa lists Argentineans, Brazilians, Uruguayans, Chileans, Paraguayans, Europeans and Americans as the primary traveling consumers in the country. Sosa does differ slightly with the above opinions in regard to his thoughts on the future of the country: “The future for Uruguay and the region is challenging. There will be opportunities with new operators installing themselves on the border with Brazil,” he explains. “On the other hand, the market seems to have peaked and is leveling out compared to previous years. Businesses will have to be creative in their product offering and displays, and iron out any wrinkles that inhibit sales, such as logistics and out of stock situations, and also reduce lead times from bonded warehouses to stores. “However, in general duty free operators in the region are betting on long-term growth with big investments,” he adds. THE AMERICAS DUTY FREE & TRAVEL RETAILING


Regional Report: Uruguay Punta del Este is a popular vacation spot for South American and European travelers

En el campo duty free, están ocurriendo múltiples acontecimientos en Uruguay, pero ¿qué le depara el futuro al país, y a los niveles de crecimiento en Suramérica? ecientemente, el Banco Mundial dio a conocer su perspectiva económica para Latinoamérica. Independientemente de factores externos como el precio del petróleo y las limitaciones de capacidad en ciertos países, se responsabiliza en gran medida la reciente desaceleración en el crecimiento de Suramérica a la aguda desaceleración de ese coloso económico que es Brasil. Si bien a menudo la mera mención de Brasil despierta comentarios de la industria duty free en Uruguay, Americas Duty Free decidió hacer una aproximación actual preguntándole a varias compañías qué significa trabajar dentro de Uruguay—tocando múltiples temas, desde las regulaciones gubernamentales e infraestructura a la geografía y la cultura—en vez de analizarlo por el lente de su vecino sobre el que tanto se habla. El Banco Mundial destaca que el “crecimiento en Uruguay se posibilitó gracia a una robusta recuperación del 8.9% en el 2010, a un crecimiento aun sólido del 5.7% en el 2011”. Al igual que muchos países latinoamericanos, se espera que el crecimiento en Uruguay sea


Punta del Este

más modesto en un futuro cercano, pronosticado a un promedio del 4% en los próximos cuatro años. A pesar de la preocupación sobre la dependencia de Uruguay con respecto a Brasil, el Informe de Competitividad Global 2013 del Foro Económico Mundial, destaca que “Uruguay sigue beneficiándose de una de las creaciones institucionales que mejor funcionan en la región”. Sin embargo, la organización expresa su preocupación con respecto a si Uruguay puede sostener el crecimiento experimentado en los últimos años. Nuestras conversaciones con ejecutivos del sector duty free que hacen negocios en Uruguay, tienden a alinearse con los pensamientos presentados en el informe del Foro Económico Mundial, y mucho más los que se refieren a Suramérica en general. Aunque el crecimiento está haciéndose más lento, aun existe una actitud de optimismo por la región en general, y dado el marco gubernamental y de infraestructura que se considera con frecuencia mejor que otros tantos países latinoamericanos, el optimismo parece amplificarse cuando se habla específicamente de Uruguay.

“Un futuro brillante” Robert De Monchy, fundador de la compañía de distribución MONARQ Group, le asegura a Americas Duty Free que, para un suministrador de espirituosos duty free, Uruguay ofrece numerosas ventajas: “Uruguay tiene fronteras con Brasil y muchas de las zonas duty free dedicadas a viajeros brasileños con alto nivel de gastos”, explica. “Además, en el nuevo Aeropuerto Carrasco existe un excelente Robert De Monchy mercado duty free”. De Monchy añade que el puerto de Montevideo proporciona acceso fácil a los países vecinos Argentina y Paraguay. Además, y especialmente para un distribuidor de espirituosos, el puerto es 64


importante porque le permite a MONARQ el fácil suministro a barcos de cruceros y mercantes. En realidad, MONARQ es muy versado en los negocios con el país, y entre sus socios están Kraudal Trading, Neutral, Pramsa, y UETA entre otras. De Monchy se hace eco de las opiniones del Banco Mundial con respecto al exceso de dependencia de Uruguay con respecto a otros países—Brasil, en su opinión—pero cree generalmente en la convergencia de varias características para que el país tenga una gran posibilidad de crecimiento continuo en los próximos años. “Creo que Uruguay tiene un futuro brillante por delante”, explica. “El sistema político es estable, y las estructuras administrativas, comerciales y bancarias están bien desarrolladas. Uruguay es históricamente una nación comercial con una visión abierta al mundo, y generalmente sus comerciantes son instruidos y hablan inglés”.

Regional Report: Uruguay

Una atmósfera diferente “El escenario minorista duty free en Uruguay ha sido explorado atentamente por numerosos negocios”, afirma Felipe Cogorno, director ejecutivo de Shopping China, “lo cual les da a los viajeros múltiples opciones en lo tocante a compras. Además, es un país muy turístico y fácilmente accesible por numerosas nacionalidades”. Cogorno, al igual que Robert De Monchy, destaca que el puerto de MonFelipe Cogorno tevideo es un aspecto importante para la posición de Uruguay como potencia económica suramericana. “Dada la facilidad de acceso para los barcos, Uruguay ha creado un sistema

que facilita la importación de producto”, explica. En cuanto a quién viaja en Uruguay, Cogorno afirma que los principales visitantes son de clase media alta. “La mayoría son familias que visitan Uruguay en busca de la atmósfera diferente del país, que puede describirse como una mezcla de culturas y valores europeos e hispano”, añade. Con referencia a lo que le depara el futuro a Uruguay, Cogorno destaca que las inversiones en el país alcanzan uno de los niveles más altos de la historia. “Esto ha contribuido a que Uruguay sea un sitio muy estable para hacer negocios”, explica. “Más aun, dado el crecimiento del vecino Brasil y la frecuencia con la que los brasileños viajan y compran en Uruguay, creo que esto evidencia que el país seguirá floreciendo en los próximos años”.

“Una excelente oportunidad de negocios” En el caso de Dufry, René Riedi, director operativo para la región de Latinoamérica, nos dice que el negocio aeroportuario de la compañía en Uruguay—un total de 2,400 metros cuadrados en dos tiendas del Aeropuerto Carrasco en Montevideo, y una de 860 metros cuadrados en el Aeropuerto de Punta del Este—fue afectado el año pasado a causa de la bancarrota de Pluna Airlines. Como tal, Dufry creó un plan de contingencia para minimizar los efectos Rene Dufry negativos en el negocio. Riedi nos señala que el pronóstico para el 2013 en este aspecto parece mucho mejor. “Confiamos que la tendencia se revertirá en el 2013, pues las aerolíneas brasileñas y argentinas ya han comenzado a incrementar sus frecuencias de vuelos hacia y desde Uruguay”, afirma Riedi. “También se reportan algunos planes del gobierno uruguayo para crear una nueva aerolínea”. Si bien está claro que las tiendas de frontera como Shopping China están dedicadas en gran medida a los brasileños, Riedi denota

que los uruguayos son los principales compradores en las tiendas de aeropuerto de Dufry, seguidos por los brasileños y los argentinos. En términos de categorías dirigidas a estos compradores, las tiendas uruguayas de Dufry están en concordancia con la concentración general del grupo en perfumes y cosméticos, artículos de lujo, confitería/comidas y bebidas, y espirituosos. Para tener una idea de la importancia que tiene Uruguay para Dufry, le preguntamos a Riedi por qué razón las tiendas de aeropuerto, adquiridas en el 2011, fueron una opción atractiva para la compañía: “Dufry adquirió las operaciones en Uruguay, Argentina y Ecuador como parte de su plan de desarrollo de negocios en Suramérica pues considera que esta región tiene un gran potencial de crecimiento en términos de destino turístico. Más aun, Suramérica es un mercado en surgimiento, lo cual es parte de nuestra estrategia general en Dufry”, responde. “Los negocios en Uruguay son claves en la región, dada la posición estratégica del país entre Argentina y Brasil, colocándose por ende como país de tránsito entre los dos. El ‘puente aéreo’ entre Buenos Aires y Montevideo lleva consigo numerosos viajeros de negocios entre Argentina y Uruguay, lo cual, con el transcurso del tiempo, genera una excelente oportunidad de negocios para nosotros”, concluye Riedi.

Cumplir con las obligaciones Un importante factor de influencia para el comercio en Uruguay es “la facilidad de hacer negocios, combinada con el hecho de que el gobierno siempre ha cumplido con sus obligaciones, y tiene un historial de seriedad en lo tocante a regulaciones y leyes”, expresa Alejandro Sosa, vicepresidente de Lucas-Calcraft, distribuidor radicado en Uruguay. En lo tocante a comentar sobre la situación del sector minorista de viajes en y alrededor de Alejandro Sosa Uruguay, Lucas-Calcraft está particularmente bien equipado para la tarea, pues la compañía trabaja con operadores como Dufry, Buquebus/Bernabel, UETA, Neutral, Siñeriz, Mannah, Shopping China, Laser Comercial y Perfumerías Vicencio. Sosa está de acuerdo con otros entrevistados en que, cuando se habla de logística, Uruguay está entre los mejores, dada la ubicación y reputación de eficiencia que caracteriza al país. Además, hace mención de un sistema uniforme de impuesto nacional independientemente 66


de estados individuales, y la relativa simplicidad de crear un negocio como otras grandes ventajas. Entre las diversas modalidades de viaje (por aire, tierra y transbordador marítimo), Sosa menciona a los argentinos, brasileños, uruguayos, chilenos, paraguayos, europeos y estadounidenses como los principales viajeros consumidores del país. Sosa está en ligero desacuerdo con las opiniones anteriores con respecto a sus pensamientos sobre el futuro del país: “El futuro es un desafío, tanto para Uruguay como para la región. Habrá oportunidades con los nuevos operadores que se instalen en la frontera con Brasil. Por otro lado, el mercado parece haber llegado a su punto máximo, y se está nivelando en comparación con años anteriores. Los negocios tendrán que ser creativos en sus ofertas y exposición de productos, y eliminar cualquier obstáculo que inhiba las ventas, como logística y situaciones de existencias agotadas, y reducir además el tiempo de tránsito de mercancías de los almacenes a las tiendas”, dice. “Sin embargo, en general, los operadores duty free en la región están apostando al crecimiento a largo plazo con enormes inversiones”, concluye Sosa.

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Mannah Duty Free

42 years after the founding of parent company Grupo La Petisquera, Mannah Duty Free shows no signs of slowing down BY RYAN WHITE


or the last half-decade or so, the duty free business in Paraguay— both border and airport retail— has evolved at a rapid clip. And with the increase in traveling consumers, retailers have put a greater emphasis on client comfort, modern store designs and a high-end product mix. Mannah Duty Free has been at the forefront of the evolution with a number of significant renovations and high-profile store openings.

store in Asunción, Paraguay in Silvio Pettirossi International Airport. “We’re the first company in Paraguay to have this type of store,” Mannah tells us. “The aim is to give travelers not only a place where they can buy the products they want, but also where they can have direct and memorable experiences with their favorite brands.” Mannah is currently planning a brand personalization project for the store, beginning with the spirits section before moving

“After 42 years since the founding of Grupo La Petisquera, we’ve created a history marked with the drive to overcome, determination and success.” Mohamed Mannah, President, Mannah Duty Free Americas Duty Free recently spoke with President of Mannah Duty Free Mohamed Said Mannah about the company’s work of late. He brings us up to speed on what was accomplished last year and what the company has planned for duty free shoppers in 2013.

In October of 2012, Mannah Duty Free inaugurated an impressive walkthrough duty free 70

on to other categories. The renovations, says Mannah, are directly related to an expected boom in passenger numbers at the airport. “In 2013 it is estimated that flights to and from Silvio Pettirossi Airport will increase by 20%,” he explains. “They’ve now begun the process of expanding the area of the airport designated for international flights in anticipation of the increase.” Currently, one finger of Silvio Pettirossi Airport is designated for international flights


Mannah Duty Free’s renovation of the façade of its flagship La Petisquera store

and the other for national flights. The renovations will see both fingers earmarked for international flights, nearly doubling the number of international gates. Also in Asunción, Mannah Duty Free’s 100-square-meter store in the five-star Hotel Bourbon Conmebol is up and running. “The hotel caters to a lot of high-profile clientele,” says Mannah. As such, the shop contains the highest-quality products in spirits, accessories, clothing, sporting goods and more. “The location is also very convenient, at just five minutes from Asunción Airport,” he adds.

Mannah Duty Free is equally committed to its border business, and Mannah tells us that after two months of intense work in the bustling border town of Ciudad del Este, Paraguay, November 2012 saw work completed on the completely redesigned storefront of the operator’s flagship La Petisquera store. “The storefront is 20 meters high and contains a unique combination of mirrors that foreshadow the luxury and comfort that shoppers will experience within,” says Mannah. In addition to being a sight to behold, the storefront is also functional, offering a number of spaces where brands can be advertised. “It was important for us to have an area where the best brands in the world can communicate their messages to shoppers on a large scale,” Mannah tells us.

Mannah Duty Free

The inauguration of Mannah Duty Free’s walkthrough store in Silvio Pettirossi Airport

The renovated storefront at the flagship La Petisquera is actually just the beginning of a project that will see the entire store, outside and inside, renovated. “The store will be completely transformed with an eye toward customer service and satisfaction,” says Mannah. After work on the flagship store is completed, the operator will renovate its second La Petisquera store in Ciudad del Este. To ensure consistent branding, the façade will be brought up to date according the standards of La Petisquera 1. On the inside the Watches section will be expanded on account of its growth as a high-selling duty free category over the last couple of years and its potential for continued success in the years to come, says Mannah. Changes will also take place this year behind the scenes. In Asunción, Mannah SRL is planning on increasing the size of its offices, warehouse and vehicle fleet as a means of better serving Asunción and Gran Asunción.

“We’ll be opening two new stores this year,” Mannah tells us. “Very soon we’ll inaugurate the first of the two in Salto del Guairá, Paraguay. It’s a city that has witnessed a lot of commercial growth in the last few years.” The Salto store will measure 1,000 square meters. Mannah tells us that considering the city is on the border with Brazil, he expects business there to continue flourishing for some time. The second scheduled store opening for this year is in the Uruguayan city of Rivera. Mannah Duty Free is currently wrapping up the paperwork required for the new location before construction begins. The La Petis72

quera-branded store will be located on the border with Santana do Libramento in Rio Grande do Sur, Brazil. Finally, Mannah tells us that the distribution arm of the company, Mannah SRL Importadora, continues growing in line with the travel retail business. In fact, 2013 will see a large-scale personalization project across Mannah Duty Free’s major locations for Mannah-distributed brands such as Absolut, Label 5, Drambuie, Salvatore Ferragamo, Jaguar Ferrari and others.

Last year’s store openings and renovations notwithstanding, we took the opportunity that our conversation afforded to ask Mannah about sales and top-selling categories in 2012. “Generally speaking,” he says, “last year wasn’t as good as 2011 for the border store business in Paraguay. Nonetheless, Mannah Duty Free maintained sales in line with 2011. Although we saw slower months such as June and July, strong periods in May and at the end of the year made up for this.” Bestselling categories across stores in 2012 included Accessories (watches, sunglasses and wallets) and Spirits (vodka, sparkling wine and whisky). Mannah tells Americas Duty Free that the right product mix was crucial to the company’s success last year, as was a strong promotional calendar, which included two large initiatives—one for the stores in Ciudad del Este and one for the locations in Asunción. In Ciudad del Este, Mannah launched an impactful promotion called “La Petisquera takes you on an unforgettable vacation.” For every US$100 spent, shoppers received a scratch ticket that gave them the chance to win


a number of instant win prizes. Each contestant that received a scratch ticket was also entered into a draw to win a Brazilian beach cruise for two. The draw was held in December with special guest Brazilian singer Marina Elali on hand to perform for attendees. “The promotion was a huge success,” notes Mannah, “and thanks to our gracious supplier partners, over 2,000 instant-win prizes were handed out over the course of the promotional period.” The other promotion in Asunción took place both at the airport and hotel stores. Called “Magic Days,” shoppers could find over 2,000 products on special discount. In terms of promotions in 2013, Mannah recently put on a successful Mother’s Day promotion in May. The operator is also planning to begin its end of the year promotion in October, and Mannah tells us that will be bigger and better than anything yet seen at his stores.

Mannah Duty Free has been a staple of Latin American travel retail for over forty years. In 1970, Mohamed and Atef Said Mannah started Grupo La Petisquera with the objective of offering shoppers high-quality, imported goods at fair prices. After years of hard work and perseverance, Grupo La Petisquera now consists of an impressive six thriving companies. We asked Mannah what his secret is. “A pioneering attitude, audacity and professionalism,” he told us. “After 42 years since the founding of Grupo La Petisquera, we’ve created a history marked with the drive to overcome, determination and success. Quite simply, this is our brand—this is Grupo La Petisquera.”

Outbound Industry & Retailer ChineseNews travelers

For 17% of Chinese travelers, shopping is purely for gift giving

The number of outbound Chinese travelers is on the rise, and they’re drawn by long-haul destinations with ample opportunities to shop BY MELISSA SILVA

Chinese travelers are the highest spenders per capita in the travel industry, spending close to US$7,000 per person


ith China set to be the world’s largest economy by 2021, it’s no wonder that Chinese travelers are gaining popularity in the travel and tourism industry. Along with the Chinese traveler comes wealth, and according to Alexander Glos, CEO of market research consulting firm i2i Group China, 400 million people in China each travel over 500km every year, rendering China the largest domestic tourism market worldwide. China is the third largest aviation market in the world, with 325 million people flying to the country this past year. Beijing Capital Airport is the second busiest airport on a global scale, handling over 80 million passengers per year, while the airports in Shanghai Pudong and Hong Chow handle in excess of 100 million people, making them the second busiest municipal airports in the world.

Travel trends Based in Shanghai, Beijing and Hong Kong, i2i Group China focuses largely on the patterns and habits of the Chinese world traveler. "The Chinese are learning to travel domestically and more importantly, they’re beginning to travel internationally," says Glos. In 2012 about 78 million Chinese traveled, some 20% more than in 2011. According to Glos, Chinese travelers are the highest spenders per capita in the travel industry, spending close to US$7,000 per person. In addition, Glos says Chinese travelers take longer trips, often for more than 12 days. One of the top destinations for Chinese travelers is Hong Kong. In 2012 alone, the city received 16 million Chinese visitors. Macau is also on the list, as it’s the largest gaming destination in the world, 74


bringing in more revenue than gambling hot spot Las Vegas. Thailand is another top destination, welcoming over two million Chinese travelers, the same as Malaysia. Taiwan had just over a million Chinese visitors. “In Indonesia, the largest international visitors to Bali are Chinese,” says Glos. “In 2012, the UAE tracked 225,000 Chinese visitors, which is an increase of over 40% from a year prior.” In terms of longhaul destinations, Australia, France and Germany combined lead the way, having attracted five million Chinese travelers in 2012. The US attracted 1.5 million, an increase of 40% from 2011.

China is the third largest aviation market in the world, with 325 million people flying to the country in 2012

Market shares The growing numbers can be broken down into three markets: the group market, the FIT market (independent or individual travelers and couples) and a new market, which is growing rapidly, the MICE market. “We’re talking about people that are attending meetings, conferences and exhibitions,” says Glos in defining the MICE market. “The group market is the largest outbound segment, which typically includes older travelers over the age of 35.” Glos says the group market largely comes out of what can be called “second tier” cities in China. “The first tier cities are Beijing, Shanghai and Guangzhou; second tier cities are interior cities—about 26 cities with over five million people,” he says. Most importantly, the FIT market is the fastest growing outbound sector coming from China presently. “These independent travelers tend to be younger, with an average age of about 30,” says Glos. “They are university educated and work for international companies. They’re usually comfortable with English and travel for business.” The newest sector, the MICE market, is comprised of the highest spenders, spending on average over US$12,000 per person per trip, and US$145 on average per night on hotels. In addition, the MICE market is traveling longer that the other sectors. “In 2013, over 200,000 MICE tourists will travel largely to Southeast Asia,” says Glos. “This market is starting to grow into North America, Europe and the Middle East.”

International investment Whether looking specifically at the group market, the FIT market or the MICE market, the number one activity for all Chinese travelers is shopping, which is done predominantly while traveling abroad. Sixty eight percent of Chinese travelers say the primary reason they travel abroad is to shop. “Today, the Chinese account for only 10% of luxury sales in China,” says Glos. “Forecasts predict that in 2020, 44% of global luxury sales will be conducted in China.” On average, 25% of tour groups and tourists who travel from China to France and Italy are traveling specifically to go shopping, and the number of female shoppers among these groups is increasing. “The average spend per outbound Chinese tourist on shopping alone is US$1,500 per person,” says Glos. “That equates to US$40 billion globally.” In France, 27% of premium products are bought by Chinese tourists, while in Hong Kong, that percentage rises to 30%. Additionally, Chinese tourists purchase 18% of the world's gold supply. Chinese travelers shop internationally for prestige, even though

you can easily purchase a brand such as Louis Vuitton in Shanghai and Beijing. “It’s much more prestigious to buy it in Paris, where you can have your picture taken in front of the store,” says Glos, which explains why the top shopping destinations for the Chinese traveler include London and Paris. The experience of the purchase itself is important for this traveler. Price is also very important, and import duties on products into China range anywhere from 50% to 125%, which makes the price differential to purchase abroad compelling. If you are planning to buy US$15$20,000 worth of goods, the differential pays for the cost of the trip. Price aside, another motivation is selection. “The Chinese perceive that there is a far greater amount of choice available overseas, which isn’t always true, but they certainly believe that,” says Glos.

Maintaining rank According to Glos, China has over one million millionaires—not in terms of assets, but in terms of money in the bank. “These millionaires on average are 15 years younger than millionaires in Europe or North America,” he says. The high percentages of Chinese travelers shopping abroad will therefore likely not change, not only thanks to the disposable income of these travelers, but also the reason behind such large scale spending—status. “What’s driving this crazy shopping for the Chinese? It’s a trophy of success,” says Glos. “China is becoming wealthy very fast and disposable income is on the rise. Urbanization, economic growth and disposable income in the second and third tier cities are all growing rapidly.” For 17% of Chinese travelers, shopping is purely for gift giving. In Chinese business and politics, giving gifts as part of a business relationship is absolutely critical. This explains why 37% of accessories purchased are gifts and why 60% of watch sales in the US are being sold to Chinese tourists, which has basically kept the industry afloat. Singapore has turned out to be the top destination for buying luxury watches and jewelry. “We’re seeing an increased diversity of shopping,” says Glos. “It’s not just premium products; it’s also electronics.” Real estate is also showing up at an increasing rate, which demonstrates the financial clout behind Alexander Glos, CEO, i2i Group China

Outbound Chinese travelers

the Chinese consumer’s desire to enjoy an international lifestyle. The shopping patterns of Chinese travelers have rendered them the world’s biggest tax free shoppers, according to Tax Free fund provider Global Blue. “Chinese tourists generate the biggest tax free sales globally,” says Glos. “Last year they chalked up more than US$3 billion in tax free shopping transactions.”

Paying it forward As for the future of Chinese outbound shopping, Glos believes that it will be driven by domestic conditions and factors inside China. The country’s economy is continuing to grow at an impressive pace, and this growth will escalate in the next three to five years, which can only translate to more shopping. “Chinese shopping will continue to grow in excess of 20% at least in next three years,” says Glos. “Some of our research suggests that the Chinese economy will have to basically slow to about 1% growth before you can see any type of drop in Chinese shopping around the world, because the shoppers coming out of China just aren’t going to be affected by a slowdown of a small portion compared to a radical slowdown in the Chinese economy.” Although three categories have been defined, it’s not always easy to identify exactly who the Chinese shopper is as many different kinds of people travel out of China today. “It’s the 30-year-old who is looking for a certain type of product, it’s the 50-year-old who is looking for a completely different offer," says Glos. “It’s entirely possible for them to be buying a high-end

bag at Louis Vuitton and then go to a shopping warehouse in the afternoon and buy socks and underwear at the cheapest price they can find. It’s a very diverse market.” There’s an increased seasonality in the market, and a lot of premium brands are claiming that the biggest season for sales has become the first quarter of the year, not the fourth, since Chinese New Year is celebrated in February. In fact, in February 2012 during Chinese New Year, the national railways sold 1.1 billion tickets. To put that into perspective, German national railways move that many people in five years. “We’re seeing an increase in October due to national day holidays, which is a large outbound travel period, and of course June, July and August—these are the primary outbound travel periods for the Chinese,” says Glos. This explains why two years ago in June, Louis Vuitton stores in Paris reported three consecutive months of business thanks to the Chinese buyers visiting their stores. There are also some companies who have developed products specifically for the Chinese market, such as Estée Lauder. The company is said to be developing an entire range for Chinese consumers. Looking to future trends, Chinese living abroad seem to be behaving just like Chinese shoppers coming out of the mainland, a phenomenon that has become evident in several markets. As a case in point, the current number three entry point into the US for Chinese visitors is the highway between Vancouver, British Columbia and Seattle, Washington—which demonstrates that Chinese nationals who live in Vancouver are driving across the border to shop. If current trends are anything to go by, the Chinese traveler’s financial clout and love of shopping are going to be even bigger marketmakers in the years to come. Future trends indicate that Chinese living abroad seem to be behaving just like Chinese shoppers coming out of the mainland, a phenomenon that has become evident in several markets



Busiest Airports Hartsfield-Jackson is tops in the US for passenger dining, amenities and business traveler services




meets quality Americas Duty Free looks at what’s new and notable at four of the world’s top airports

Hartsfield-Jackson: still ahead by a mile


or those who believe that quantity and quality don’t mix, the case of Hartsfield-Jackson Atlanta International Airport is instructive. The airport is on top in more ways than one. In addition to being the world’s busiest airport for 15 years running as of last year, Hartsfield-Jackson is also capturing awards for the quality of its facilities and services. Last year the airport broke its own record with 95.5 million passengers, up from 92.3 million in 2011, over 13 million passengers ahead of its closest rival. International travelers make up about 10% of the traffic at 9.2 million. What really makes for good news is that while passenger figures are up, the number of takeoffs and landings has not kept the same pace, meaning that the airport is using capacity more efficiently. In January, Travel Leaders Group’s annual Travel Trends survey named Hartsfield-Jackson the top US airport for passenger dining, amenities and business traveler services, and the best place for passengers with a connecting flight. A big part of the picture is the airport’s retail and duty free operations, which got a huge boost last year with the opening of a new US$1.4 billion terminal. “We now have a consolidated international terminal

with 40 international gates,” says Aviation General Manager Louis Miller. “It’s one of the largest international complexes in the country.” Named the Maynard H. Jackson Jr. International Terminal, the facility’s new Concourse F will help to expand duty-free operations, which in 2012 garnered US$29.6 million in revenue, or 6.4% of total concession revenues for the airport. Duty free in Concourse F is operated by Duty Free Americas Peachtree, LLC, a subsidiary of Duty Free Americas. Concourse E is subleased from Duty Free Americas Peachtree by Atlanta Duty Free Partners JV, a joint venture of Airport Electronics Inc. and FWW Management Inc. The retail landscape is going to change following the issuing of a new RFP last year that will transform the food and beverage offerings at Hartsfield-Jackson. “Some of these new concessions will be in the new international concourse,” Miller says. “We’ll be adding a lot of retail and duty free.” A separate project will see the expansion of Midpoint Concourses C and D. When completed, the concourses will add over 560 square meters of retail space—460 square meters in Concourse D and 100 square meters in Concourse C. Hartsfield-Jackson Atlanta: the world’s busiest for 15 years and still expanding



Lower/arrivals level meet and greet in LAX’s new Tom Bradley International Terminal; the dome changes colors to welcome passengers *Photo courtesy of LAWA

LAX adds new food and retail concepts Los Angeles World Airports (LAWA) reports that Los Angeles International Airport (LAX) passenger volume increased 2.9% to 63,688,121 passengers in 2012, up from 61,862,052 in 2011. International traffic grew 2.5% to 17,152,914 passengers, up from 16,731,324 in 2011 “LAX is undergoing a billion-dollar capital improvements program, with the centerpiece being the New Tom Bradley International Terminal [TBIT] project,” says Katherine Alvarado, a LAWA Public Relations Specialist for LAX. The new terminal is part of the airport’s comprehensive LAneXt modernization program. The New TBIT will open this summer with 18 new boarding gates, nine of which will be dedicated to the “New Large Aircraft” category, which includes the Airbus A380 and Boeing’s B787 Dreamliner. A new Great Hall will house luxury dining and retail. The internal structure of the new terminal will accommodate an Integrated Environmental Media System (IEMS) that will display constantly changing electronic art and images. “There are a plethora of new food [and] beverage and retail concepts coming to existing terminals and the new TBIT,” Alvarado says. “The major focus is putting the ‘LA Back into LAX’ by bringing local landmarks and concepts, including concepts never before seen in an airport environment that reflect Los Angeles cuisine and culture.” Upgrades and modernization of people mover systems are due for completion in 2016, while a new US$7 million runway status light system will improve pilot awareness during taxi and takeoff. Several other major airfield and facility projects are also underway. These include a new US$438 million energy-efficient, computer-managed Central Utility Plant due for completion in 2014, new taxiways and taxi lanes and renovations to other terminals.

AeroMexico’s new service between Heathrow and Mexico City was four years in the making

“Surprise and delight” at London Heathrow The number of passengers traveling through London Heathrow Airport in 2012 fell just a few thousand short of 70 million. For 2013, Heathrow’s passenger traffic is predicted to increase 1.2% to 70.9 million, which reflects “a marginal increase in the expected number of flights and larger average aircraft size.” Revenue is slated to increase 9.7%, thanks primarily to increased passenger numbers and aeronautical tariffs supported by growth in retail income per passenger. “We are constantly looking at new ways to improve our passenger experience and the new Terminal 2 building is the most significant upgrade we are working on,” says Retail Director Muriel Zingraff. “Heathrow is famous for being full in terms of flight capacity and with our retail space in such high demand, we need to be innovate in order to create new commercial opportunities. To respond to this challenge, we’re increasingly using pop up stores as a way of providing new experiences for passengers and introducing brands which respond to passenger’s demands.” Pop up stores provide a great test platform for new brands looking to enter Heathrow’s retail environment on a permanent basis, Zingraff says. They also provide a location for transient experiences which “surprise and delight” frequent flyers. In 2012 some 19 pop-up and permanent retailers opened at Heathrow, including Dolce and Gabanna, Michael Kors (Harrods), Hugo Boss and Apostrophe on the permanent side, and Swarovski, La Maison du Chocolat, Ray-Ban and London 2012 through pop-ups. “Our passengers really value the retail experience as part of their airport journey, and we are constantly seeking to improve this service and offer passengers interesting retail opportunities that are relevant to their needs,” says Zingraff. Work in 2013 is focused on building the food and beverage offer and providing passengers “with a quality and range unsurpassed by any other airport”; further strengthening the luxury offer by working with existing brands to introduce an “experiential” element to their stores; and building Heathrow’s positioning as a beauty destination “by bringing together the best brands and expertise in one place for customers on the go.” China Southern Airlines launched three times weekly service between Heathrow and Guangzhou last year

The ticketing lobby in the Tom Bradley International Terminal upper/departures level); airline information displays can also show images and videos *Photo courtesy of LAWA

Busiest Airports In January, the City of Chicago announced plans for a range of new specialty retail contracts at ORD, including spa services for travelers who want to pamper themselves

Chicago O’Hare realigns runways, retail Chicago’s O’Hare International Airport (ORD) won the Global Traveler Award for “Best Airport in North America” in 2012 for the thirteenth year in a row. For 2012, total passenger volume was approximately 66,825,000, of which about 9,974,000 were international travelers. As of 2011, the busiest routes to Terminal 5, O’Hare’s international terminal, included London, Toronto, Frankfurt and Tokyo Narita.

For several years now the City of Chicago and the Chicago Department of Aviation have been at work on the massive O’Hare Modernization Program (OMP), one of the largest construction projects in the US. The modernization will completely reshape the airport’s current runway layout into an efficient parallel-runway configuration. This is intended to reduce flight delays and increase capacity. The airport’s main retail concession areas are in Terminals 1, 2 and 3. The same goes for food and beverage outlets, with brands such as Wolfgang Puck, Burrito Beach, Chili’s, Cinnabon, Quiznos and Starbucks. As of January 2012 there were a total of 108 food and beverage concessions at ORD, and some 67 retail outlets, including duty free, making up a total space of 11,800 square meters In January, the City of Chicago announced plans for a range of new specialty retail contracts at ORD, packaged into ten separate agreements covering 13 locations and a total of over 1,200 square meters of space, some 725 square meters of it new space. Spa services are also part of the package, and travelers will also enjoy an “extended stay” option. Twenty-nine private rooms with daybeds and computer workstations will be available for a US$30 hourly rental or $120 overnight. In October, the City of Chicago also announced that Westfield Concession management will manage more than two dozen new restaurants and retail concessions that are scheduled to open later this year as part of the US$26.2 million renovation of Terminal 5. The 25 postsecurity restaurants will include Big Bowl, Hub 51, Intelligentsia Fresh Roasted Coffee, tocco, Frontera tortas, urban olive and Wow Bao.

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Airport wayfinding

Leading the way Americas Duty Free speaks with three wayfinding experts to discover how airports and airport retailers can benefit from incorporating new wayfinding solutions BY



ayfinding is about providing subtle cues and elements within an environment that act as reference points to which people can relate,” says Gregory Neely, Cofounder of Forge Media + Design. “If you think about how you naturally find your way in an unknown environment, you’re cognitively conceptualizing the physical space around you and setting landmarks for yourself. It’s about helping people establish their own landmarks and making it an intuitive experience.” Forge Media + Design is a multidisciplinary design firm based in Toronto, Canada focused on experiential branding and design. Forge has worked on a variety of projects for clients ranging from Apple Canada, Four Seasons Hotels and Resorts, Shoppers Drug Mart, The Children’s Hospital of Philadelphia, Toronto Port Lands Company and many more. Neely tells us that making the wayfinding experience organic—ensuring that it is seamlessly incorporated into the environment—is of paramount importance at airports.

Wayfinding 101 “The more you can streamline an airport, the better the traveling experience is going to be,” Neely explains. “Perhaps more than anywhere else, wayfinding in airports is about the efficient movement of people.” Relaxed travelers are more easily converted into shoppers, and getting them to their gates quickly opens up a number of opportunities for retailers. In addition to being less stressed in an airport environment with good wayfinding, travelers will have more dwell time. “It’s about incorporating cues into the overall travel experience, whether we’re talking signage technology or other elements,” Neely says. Perhaps a bit paradoxically to those not used to thinking about how they navigate the world around them, certain elements of the wayfinding experience—signage, for example—work best when the user 82

hardly notices they’re there. Different elements, such as touchscreens and other interfaces, should be used in very specific ways, Neely advises. His team approaches wayfinding first and foremost by thinking about what the overall user experience should be. They then shape their approach based around what works best for the project at hand. “We’re always looking for opportunities to incorporate technology in an intelligent way into wayfinding—not as a spectacle or to


make people say, ‘Wow, they’ve got a big touchscreen!’” he explains. “We use technology to help the wayfinding be more responsive.” One Forge project currently in development is for the Canadian Museum for Human Rights. Technology is an integral part of how the wayfinding works there and Neely says it’s very responsive to the environment and what’s going on in the space. Another Forge project that incorporates wayfinding in a way that may be of interest to airport retailers is a donor wall in The Children’s Hospital of Philadelphia. In addition to containing interactive video and audio on past donors and patient stories, the wall offers users the opportunity to make a donation of their own as part of the interface. “With the donation wall, it comes back to the experience, branding and the impression you leave,” Neely says. “If you want to connect with people, and especially if you want them

Gregory Neely, Cofounder, Forge Media + Design

One of Forge’s projects that exemplifies the notion that wayfinding should be an organic part of the environment

Airport map


Flight information A recent ASQ survey on airport wayfinding determined the most popular information provided by interactive kiosks in airports


Phone for information


Several languages available


City tourism information


Directions to shops / restaurants


Directions to facilities


Directions to gates


Public transportation schedule


Possibility to give feedback



A recent Forge project that incorporated an interactive touch screen; the company uses technology to improve the overall wayfinding experience as opposed to aiming for the “wow” factor

to donate or buy something, you need to do it in a way that’s going to be positive, engaging, fun and part of a entire experience. The wall was part of a visual narrative that takes users on a journey, and a natural part of that narrative is the opportunity to give. The key is making sure all of your elements are part of the overall inertia of the experience.” We ended the conversation by asking about the future of wayfinding, specifically in airports, and Neely told us that augmented reality is a promising development. In his opinion, though, it’s not yet at the stage where it can be seamlessly incorporated into the travel experience. “Right now you have to hold a phone or tablet in front of your face, which isn’t very convenient,” he says. The potential is massive, though, with glasses technology already in the works. “The end goal is to communicate intuitively with users,” Neely concludes. “Some of the technology is there and some of it isn’t, but costs keep coming down and new possibilities for novel experiences arise every day.” For more information on Forge Media + Design, please visit

Room for improvement


DKMA specializes in passenger research and advisory services for the global aviation industry and publishes a series of Airport Service Quality (ASQ) Performance studies that measure the levels of service delivered by an airport. They then put those measures into context through comparison with other airports. A recent ASQ study delved into wayfinding at airports. The study looked at 102 airports—25 in Africa, the Middle East and Asia, 43 in the Americas and 34 in Europe. One of the key findings of the study is that for many travelers, wayfinding starts well before a trip. While 80% of airports studied have maps on their websites, only 29% of the total offers interactive maps. Furthermore, only 9% of the airports studied have videos on their websites that show passengers where to go. Clearly, there’s room for improvement when it comes to making the trip a little easier for passengers. We asked James Ingram, Senior Manager at DKMA, about the advantages of interactive maps: “Simplicity and customization are the two main advantages,” he says. “Passengers are able to select the information they want to appear on the map depending on their interests—showing only the restaurants for instance—as opposed to non-interactive

20% 14% 0%



60% Yes

Is walking distance indicated on your signage? The ASQ survey also asked participating airports whether walking distance was indicated on their signage; the majority said no despite the fact that this information is proven to help relax travelers


100% No



maps where all airport services and processes tend to be symbolized, which can lead to a fair amount of clutter.” Once again, ease of use and reducing stress for the passenger seem to be the order of the day, and in terms of an airport’s website, Ingram believes that an interactive map is likely the best way to go. Neely warned against using technology that doesn’t contribute to the end goal of making the experience better, and Ingram echoes this sentiment. He tells us that videos, while polished and often impressive, are of limited use for wayfinding because passengers can’t refer to them to find their way from point A to point B as they would with a map. The ASQ survey on airport wayfinding



Airport wayfinding

also explored what happens once passengers enter the airport, dividing the tools available to travelers into two categories: self-help (maps, leaflets and interactive kiosks) and staff (people at information counters or circulating around the airport). DKMA found that the majority of airports still prioritize human contact when assisting passengers. In terms of self-help tools, only 44% of airports studied used interactive kiosks as part of their wayfinding strategy. Interestingly, 74% of airports in Asia Pacific provide interactive kiosks, compared to only 36% in the other regions, indicating that there’s clearly space for more innovation in airports in the Americas when it comes to wayfinding. “In Asia, where many passengers are tech-savvy, the use of interactive kiosks is fairly widespread,” explains Ingram. “Kiosks enable airports to provide a wide range of information to passengers at a fairly low cost since they spare the cost of staff.” The last topic the ASQ survey on airport wayfinding tackled was signage. Interestingly, while the content and layout of the sign is important, so is color. Nearly half of the airports surveyed use white letters on a blue background. Ingram tells us that this color scheme actually plays into the repeated theme of stress relief for the traveler. “White letters on a blue background is the most popular choice since blue stands out well from the background and has the added benefit of symbolizing the sky and being associated with stability and calm,” he says. “When used with white lettering the contrast is excellent, making the wording stand out well.” If anything, the ASQ survey adds another level of depth to what most of us in the industry already understand on a relatively superficial level—good wayfinding is anything but accidental and has the potential to play a huge role in airport revenues. Ingram leaves us with an important thought for airports, retailers and suppliers alike in the Americas: “As more and more airports are focusing on developing non-aeronautical revenue, they are increasingly working to find ways to keep passengers in or near the commercial areas and out of the gates as much as possible,” he says. “One of the key findings of the ASQ Retail commercial survey is just how strongly purchases in airport retail and F&B can be linked to passenger footfall in the outlets.” 84

Dallas/Fort Worth (pictured) was cited by Gresham, Smith and Partners’ Jim Harding as one of the top airports in the US in terms of wayfinding

Understanding the why Despite the fact that the ASQ survey’s results suggest that the Americas may be somewhat behind Asia when it comes to airport wayfinding, the US is certainly working at ensuring that travelers have a better time of navigating airports in the future. The Airport Cooperative Research Program (ACRP)-sponsored “Wayfinding and Signing Guidelines for Airport Terminals and Landside” report, compiled by Gresham, Smith and Partners (GS&P), was designed to be a “single resource for airport operators to consult as they review, update, enhance or develop their airport wayfinding and signing plan,” says Jim Harding, Principal at GS&P.

might not be in the cards for every airport, so we asked Harding how airports concerned about wayfinding can start to make small, lowcost changes now. “A total sign replacement requires substantial time, effort and resources,” he concedes. “Is there a better value approach available? The answer is yes. The concept behind the value approach is simple: build on what works and fix what does not.” GS&P’s wayfinding report contains a checklist that outlines the key elements that airports should be evaluating. Once completed, an airport authority should have a complete breakdown of the different wayfinding aspects of its air-

Jim Harding, Principal at Gresham, Smith and Partners “Previous to this project, there was information out there, but nothing that targeted the specific needs of the airport in a holistic way,” he explains. “The information that was available was fragmented and often out-of-date— or if it told you what to do, it didn’t tell you why. If you don’t understand the ‘why’ behind wayfinding design, you will not be able to properly diagnose the true extent of the wayfinding problem, much less develop holistic wayfinding solutions.” We asked Harding for an example of an airport in the US that has gotten it right in terms of wayfinding, and Dallas/Fort Worth (DFW) was at the top of his list. GS&P actually worked with the airport over the course of several years to program and design a comprehensive wayfinding system—from roadway to gate— that included some 12,000 signs and cost a total of US$21 million. DFW’s wayfinding is built upon GS&P’s “three Cs” approach: Consistency, Connectivity and Continuity. Throughout the traveler’s entire journey at the airport, identifiers are consistently presented as easy-to-understand icons, taking much of the headache out of the experience for rookie and seasoned travelers alike. Of course, a 20-million-dollar overhaul


port. The authority can then pick and choose what elements need improvement based on its own set of priorities. Items on the checklist include the consistent order and placement of messages, the consistent location of signage and other information sources, the visibility of information sources, legibility, consistent and clear formatting, frequency, color and much, much more. “Focusing on improving the passenger level of service can directly impact an airport’s bottom line,” explains Harding. “For example, according to Stuart Greif, Vice President and General Manager of the global hospitality and travel practice at J.D. Power and Associates, ‘Airports can best facilitate passenger progress and improve satisfaction by focusing on key elements such as the clarity of airport signage, facilitating quick and accurate delivery of baggage and partnering with the TSA to reduce security check wait times.’ “Happy passengers are super spenders,” concludes Harding. “[A recent J.D. Power study] showed passengers who report being ‘delighted’ spend an average of 45% more than their unhappy counterparts.” Indeed, this fact alone should be reason enough for most airports to start seriously looking at better wayfinding solutions.

Association Q&A

Americas Duty Free talks to three industry organizations planning dazzling and informative events for this year’s duty free calendar BY RYAN WHITE


ith IAADFS numbers looking very solid at publication time, the TFWA AP exhibition and conference having to open up a new floor of the Suntec Center to accommodate exhibitors and ASUTIL coming off a fabulous show in Argentina, 2013 is shaping up to be a memorable year for all three organizations. Americas Duty Free sat down with Michael Payne, Executive Director of IAADFS; Erik Juul-Mortensen, President of TFWA; and José Luis Donagaray, Secretary General of ASUTIL to get their thoughts on why 2012 is set to be a banner year.

Michael Payne, Executive Director, IAADFS Americas Duty Free: Can you give us an update with regard to attendance at this year’s show? Michael Payne: As compared to the same period last year we are running well ahead of the 2012 pre-registration numbers but it’s way too early to know what final numbers will be as we have a large on-site registration. Nonetheless, we are encouraged and I think we will have a strong turnout. Our pre-registration for buyers has been very good. ADF: Can you give us a breakdown of booths by category? MP: Sure, we have 190 exhibitors, consisting of Liquor (50), Jewelry, Accessories/Cosmetics (46), Gifts/Writing Instruments (16), Confectionaries/Gourmet Foods (19), Tobacco (11) and Services (4). ADF: What is the mindset of members this year? MP: I do believe people are feeling more positive and upbeat compared to the previous year, but still cautious. There is plenty of good news out there such as Miami airport having a million more passengers in 2012 than in the previous year. That is good growth by any definition. In fact, we did a very quick survey question recently. Over 60% 86


of the respondents felt 2013 would be better than last year and only 20% felt the business would decline. ADF: In terms of sales and passenger traffic in the Americas, in your opinion how did duty free fare in 2012 as compared to 2011? MP: The Americas showed positive growth in 2012 compared to 2011. Some regions/areas were stronger than others but overall the trend was upward. Data shows increased air traffic, which should lead to more sales. ADF: Are there currently any airport- or duty free-related projects in the Americas that you’re particularly excited about? Please explain. MP: There are too many to mention and I’m certain to forget someone, but we all should be excited about the upgrades and expansion of stores throughout the Americas. Improved designs, brighter stores, enhanced product offerings and better service are apparent. This is a case where that old expression “a rising tide raises all boats” fits. This enhancement of duty free projects across the Americas will impact everyone in the region in a positive way.

the Travellers Brand



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Association Q&A

ADF: Are there any changes being made to this year’s show as compared to last year? MP: The format is generally the same. We have expanded the exhibits area but still cannot accommodate everyone who has requested space and/or expanded booth size. I believe everyone will find the social/networking events upgraded, and The Gala Dinner and Club Americas should be a big hit with attendees. We have some new exhibit offerings and are continually working on upgrading food choices with the hotel. ADF: What sponsors have confirmed so far for this year’s show? MP: So far we are proud to have sponsors that include Pernod Ricard, Philip Morris, Hershey’s, Godiva, Advanced Wireless, Caldris/28

Black, T-Tech by Tumi, Industrias Licoreras de Guatemala, BrownForman and Perfetti Van Melle. These sponsorships are really important for us and we try to recognize and honor their support during the meeting as much as possible. ADF: What is your favorite duty free-related memory or experience from 2012? MP: For me, probably both the resiliency and generosity of this industry. Despite threats, the industry continues to grow, prosper and adapt. Also, I don’t know many industry sectors that have the commitment and drive of ours to support and sponsor so many charitable causes across the globe. It’s a real testimony to the type of people that make up our industry.

technology and new media to ensure we are at the top of our game, or “Perfection Personified,” which will show how the human touch remains central to customer service. The afternoon workshops will be followed by a closing plenary to draw the various threads together.

ADF: What do you have planned for the 2013 TFWA AP exhibition and conference? Erik Juul-Mortensen: Planning for TFWA Asia Pacific Exhibition & Conference 2013 is well advanced and we are delighted that the positive trends in evidence last May—high demand for stands and excellent visitor figures—seem to be continuing this year. The most exciting change this year is that demand for exhibition space means that not only have we filled the exhibition floor on level 4 in the Singapore Suntec Center, but also that exhibitor confirmations justify the opening of a new exhibition hall on level 6. The new added level will house a varied and interesting selection of companies and brands from all categories of duty free and travel retail. This demand from major international brands to participate is testament to the rapid growth of our industry in Asia Pacific.

ADF: How many exhibitors have confirmed at this stage and how does that compare to last year? EJM: Last year we accommodated 236 exhibitors by spilling over onto the mezzanine level. Roughly a quarter of all exhibitors were fragrance & cosmetic companies, with jewelry & watches and wine & spirits accounting for 17% each and fashion, accessories & leather goods occupying 14% of stands. The confirmed total is currently 233, already more than at the same stage last year, with proportions by category remaining fairly constant. ADF: What’s your opinion of the duty free business in Asia at the moment? EJM: Growth overall has slowed down a bit in Asia but it remains the region with the greatest untapped potential across all categories. It is also worth noting that the demand for premium and super-premium goods is more marked here than elsewhere. ADF: What sponsors have signed on at this stage? EJM: Singapore Airlines is the official carrier; Interparfums will partner with us on the traditional golf tournament; many of our wine & spirits colleagues will supply the TFWA Asia Pacific Bar; and a host of other sponsorship and advertising agreements have been drafted or are in the pipeline.

ADF: What is the theme of this year’s conference? Can you tell us a bit about speakers and sessions? EJM: The theme of the 2013 TFWA Asia Pacific Conference, which starts on Monday, May 13, is “Striving for Perfection.” We have invited speakers both from the industry and from the broader commercial world so we can expect a stimulating programme. We will be offering two fascinating workshops after the plenary: “Perfect Journey,” exploring how store design, terminal layout and commercial branding can engage the traveling consumer, and “Perfect Pitch,” on how partnerships and sharing skills can create the perfect consumer proposition. Erik Juul-Mortensen, President, TFWA After the lunch break we will offer “e-Perfect,” on harnessing 88



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Association Q&A

Iguazú, the venue for last year’s ASUTIL Conference

ADF: How was the reaction to last year’s conference? José Luis Donagaray: The reaction to last year’s conference was very good, largely because the delegates got the chance to get to know Iguazú, and by extension Brazil and Paraguay. Furthermore, I think it was a great conference in terms of content. The speakers were excellent and the networking time was also appreciated by delegates. There were a lot of positives. One of the hallmarks of ASUTIL is that usually all delegates are in the same hotel, which tends to facilitate networking. In 2012 this wasn’t possible given spatial restrictions, and this is something that attendees said they missed from years past.


! José Luis Donagaray, Secretary General, ASUTIL

ADF: The conference is in Punta Cana this year. Are you planning on alternating between South America and a more central location every other year? JLD: We’re going back to South America in the future, of course, but it tends to be very expensive. We negotiated a very good price in Punta Cana. The rate is all-inclusive for US$170 and as its name suggests, the Barcelo Premium is a high-end hotel for adults only. Furthermore, we’ve kept registration prices for the conference the same as last year. Right now we’re planning on one year in South America and one year in a more central location, but to pay some US$300 per room in Brazil isn’t going to work. We need to make sure the conference is realistically priced in order to ensure that we keep breaking attendance records in the years to come. ADF: Can you tell us a little about the theme of this year’s conference? JLD: The theme of this year’s conference, taking place from June 12 to 15, is “Creating New Paths.” We’re looking forward to digging 90


deeper into topics that we’ve previously discussed while at the same time giving delegates a new perspective on developments that have occurred over the last year. ADF: What sponsors have confirmed at this stage? What about the social activity? JLD: The Gala Dinner sponsor will be DFA. Dufry will sponsor the opening cocktail. JTI will sponsor one of the lunches. We’re also speaking with other companies about further sponsorships. In terms of the social activity, that’s part of the surprise! Unfortunately I can’t yet announce anything in that regard. ADF: How do you feel business was in South America in 2012? What are your predictions for 2013? JLD: In terms of South America, 2012 was as good as 2011 or even slightly better for duty free. We didn’t reach the levels of growth that we saw in previous years but nonetheless it was a good year. Provided people keep traveling and there aren’t any unforeseen developments, I’d like to think that 2013 will be another great year for the industry in South America.

Association Q&A

Americas Duty Free habla con tres organizaciones de la industria que proyectan eventos fascinantes e informativos para el calendario duty free de este año


racias a las sólidas cifras de asistencia a la IAADFS al cierre de esta edición, al hecho de que la Conferencia y Exposición TFWA AP tuvo que acondicionar otro piso del Suntec Center para acomodar expositores; y al fabuloso evento logrado por ASUTIL en Argentina, el 2013 tiene todas las posibilidades de ser un año memorable para las tres organizaciones. Americas Duty Free conversó con Michael Payne, Director Ejecutivo de IAADFS; con Erik Juul-Mortensen, Presidente de TFWA; y con José Luis Donagaray, Secretario General de ASUTIL, quienes nos dieron sus opiniones sobre por qué el 2013 será un año insignia.

Americas Duty Free: ¿Puede actualizarnos con respecto a la asistencia al evento de este año? Michael Payne: En comparación con el mismo período del año pasado, estamos muy por encima de las cifras de pre-inscripción del 2012, pero es muy temprano para determinar cuáles serán las cifras finales, pues contamos con un gran número de inscripciones en la exposición. Sin embargo, estamos entusiasmados y creo que tendremos una enorme concurrencia. La pre-inscripción de compradores ha sido muy buena. ADF: ¿Puede darnos un desglose de puestos por categoría? MP: Por supuesto. Tenemos 190 expositores, consistentes en: Licores (50), Joyería, Accesorios/Cosméticos (46), Regalos/Instrumentos para Escribir (16), Confitería/Comida Gourmet (19), Tabaco (11) y Servicios (4). ADF: ¿Cuál es la actitud de los miembros este año? MP: Creo que la gente se siente más positiva y animada en comparación con el año pasado, pero sigue existiendo la cautela. Hay muchas buenas noticias en todas partes, como que el aeropuerto de Miami reportó un millón más de pasajeros en el 2012 que el año anterior. Es un buen crecimiento en cualquier definición. A propósito, recientemente hicimos una breve encuesta de preguntas. Más del 60% de los participantes estimó que el 2013 sería mejor que el 2012, y sólo un 20% consideró que los negocios disminuirían. ADF: En términos de ventas y tráfico de pasajeros en las Américas, ¿cómo considera que fue el rendimiento del sector duty free en 2012, en comparación con el 2011? MP: Las Américas mostraron un crecimiento positivo en el 2012, comparado con el 2011. Algunas regiones/zonas experimentaron un mayor crecimiento que otras, pero en general la tendencia fue ascendente. Los datos revelan un incremento en el tráfico aéreo, lo que daría como resultado más ventas. ADF: ¿Existen actualmente proyectos relacionados con los aeropuertos y el sector duty free en las Américas que le entusiasman particularmente? ¿Puede explicar? MP: Hay demasiados para poder mencionarlos sin que se me olvide alguno, pero todos deben estar entusiasmados con las actualizaciones 92


y expansión de tiendas en todas las Américas. Son evidentes mejores diseños, tiendas más brillantes, mayores ofertas de productos y un mejor servicio. Es un caso donde puede aplicarse el conocido refrán de “a marea alta ganancia de pescadores”. Esta renovación de los proyectos duty free en las Américas ejercerá un impacto positivo en todos los participantes de la región. ADF: ¿Se han hecho cambios en la exposición de este año en comparación con el anterior? MP: El formato es generalmente el mismo. Hemos ampliado la zona de exposiciones, pero aun no hemos podido acomodar a todo el que ha solicitado espacio y/o aumento del tamaño del puesto. Creo que todos verán que se han actualizado los eventos sociales/de contacto profesional, y la Cena de Gala y Club Americas tendrán una gran aceptación de los asistentes. Tenemos algunas ofertas nuevas de exposición, y trabajamos continuamente con el hotel en la actualización de opciones gastronómicas. ADF: ¿Qué patrocinadores han confirmado hasta ahora su asistencia al evento de este año? MP: Hasta ahora nos enorgullece tener patrocinadores como Pernod Ricard, Philip Morris, Hershey’s, Godiva, Advanced Wireless, Caldris/28 Black, T-Tech by Tumi, Industrias Licoreras de Guatemala, BrownForman y Perfetti Van Melle. Estos patrocinios son realmente importantes para nosotros, y tratamos de reconocer y honrar lo más posible su apoyo durante la reunión. ADF: ¿Cuál fue su recuerdo o experiencia relacionada con el sector duty free en el 2012? MP: Probablemente la resiliencia y la generosidad de esta industria. A pesar de las amenazas, sigue creciendo, prosperando y adaptándose. Además, no conozco a muchos sectores de la industria que tengan el compromiso y el impulso de los nuestros para respaldar y patrocinar tantas causas benéficas en el mundo. Es un testimonio verdadero del tipo de personas que componen nuestra industria.

ADF: ¿Qué tienen en proyecto para la exposición y conferencia TFWA AP 2013? Erik Juul-Mortensen: La planificación para la Conferencia y Exposición TFWA Asia Pacific 2013 va muy avanzada, y nos complace que las tendencias positivas en evidencia en mayo pasado—alta demanda de puestos y excelentes cifras de visitantes—parecen continuar este año. El cambio más atractivo de este año es que la demanda de espacio de exposición no sólo significa que está lleno el piso de exposiciones del nivel 4 del Singapore Suntec Center. También que las confirmaciones de expositores justifican la apertura de un nuevo salón en el nivel 6, que contendrá una variada e interesante selección de compañías y marcas de todas las categorías duty free y minorista de viajes. Esta demanda de importantes marcas internacionales para participar es testimonio del rápido crecimiento de nuestra industria en Asia-Pacífico.

Dare to experience the Sensations

Association Q&A

ADF: ¿Cuál es el tema de la conferencia de este año? ¿Puede hablarnos un poco sobre los ponentes y las sesiones? EJM: El tema de la Conferencia TFWA Asia Pacific 2013, que comenzará el lunes 13 de mayo, es “Striving for Perfection” (“En pos de la perfección”). Hemos invitado a ponentes de toda la industria, y del mundo comercial más amplio, por lo que podemos esperar un programa estimulante. Ofreceremos dos talleres fascinantes después de la plenaria: “Perfect Journey” (El viaje perfecto) que explorará cómo el diseño de tiendas, la estructura de las terminales y la identidad comercial de marcas puede atraer al consumidor que viaja; y “Perfect Pitch” (Afinación perfecta”) sobre cómo las alianzas y el intercambio de destrezas puede crear la proposición perfecta para el consumidor. Después de almuerzo, ofreceremos “e-Perfect”, que tratará sobre cómo aprovechar la tecnología y los nuevos medios para estar actualizados; o “Perfection Personified” (“Perfección personificada”), sobre cómo el toque humano sigue siendo vital para el servicio al cliente. Al término de los talleres vespertinos se llevará a cabo la plenaria de clausura, para resumir y unificar todos los temas. ADF: ¿Cuántos expositores han confirmado su asistencia hasta ahora, y cómo se compara la cifra con el año pasado?

EJM: El año pasado acomodamos a 236 dispersos por el entresuelo. Cerca de la cuarta parte de los expositores eran compañías de perfumes y cosméticos, mientras que las de joyerías y relojes, y de vinos y licores conformaron el 17% cada una, y las de accesorios y artículos de piel ocuparon el 14% de los puestos. El total confirmado actual es de 233, que supera la cifra en el mismo periodo del año pasado. Las proporciones por categoría siguen siendo bastante constantes. ADF: ¿Cuál es su opinión sobre el negocio duty free actual en Asia? EJM: El crecimiento general ha disminuido un poco en Asia, pero la región sigue siendo el mayor potencial inexplorado en todas las categorías. También vale la pena destacar que la demanda de artículos de primera y de súper primera calidad es más marcada aquí que en otras partes. ADF: ¿Qué patrocinadores están confirmados en esta etapa? EJM: Singapore Airlines es la aerolínea oficial; Interparfums será nuestra colaboradora en el torneo de golf tradicional; muchos de nuestros colegas del sector de vinos y licores abastecerán el TFWA Asia Pacific Bar; y ya se han redactado otros convenios de patrocinio y publicidad, y hay otros por venir.

JLD: Volveremos a Suramérica en el futuro, por supuesto, pero nos resulta muy caro. Logramos negociar un precio muy bueno en Punta Cana. La tarifa es de todo incluido por US$170 y, como sugiere su nombre, el Barceló Premium es un hotel de lujo solo para adultos. Además, pudimos mantener los mismos precios de inscripción del año pasado para la conferencia. En estos momentos estamos planificando la conferencia un año en Suramérica y otro en un sitio más céntrico, pero pagar unos US$300 por habitación en Brasil no va a resultar. Es necesario garantizar que la conferencia tenga un precio realista para asegurar que sigamos rompiendo récords de asistencia en años futuros. ADF: ¿Puede hablarnos acerca del tema de la conferencia de este año? JLD: El tema de la conferencia de este año, que se llevará a cabo del 12 al 15 de junio, es “Crear nuevos caminos”. Queremos ahondar más en temas que hemos analizado previamente, y al mismo tiempo darles a los delegados una nueva perspectiva sobre los acontecimientos ocurridos el año pasado. ADF: ¿Cómo fue la reacción a la conferencia del año pasado? José Luis Donagaray: La reacción a la conferencia del año pasado fue muy buena, sobre todo porque los delegados tuvieron la oportunidad de conocer Iguazú, y por extensión a Brasil y a Paraguay. Además, creo que fue una gran conferencia en términos de contenido. Los ponentes fueron excelentes, y las oportunidades de contacto fueron muy apreciadas por los delegados. Hubo muchos aspectos positivos. Una de las características definitorias de ASUTIL es que, usualmente, los delegados están ubicados en el mismo hotel, lo cual facilita el contacto entre ellos. Esto no fue posible en el 2012 debido a restricciones de espacio, y es algo que los asistentes aseguraron que echaban de menos después de tantos años. ADF: La conferencia de este año será en Punta Cana. ¿Tiene en proyecto realizarla entre Suramérica y un sitio más céntrico en años alternos? 94


ADF: ¿Qué patrocinadores están confirmados en esta etapa? ¿Qué puede decirnos sobre la actividad social? JLD: El patrocinador de la Cena de Gala será DFA. Dufry patrocinará el coctel inaugural. JTI será el patrocinador de uno de los almuerzos. Además, estamos hablando con otras compañías acerca de otros patrocinios. En términos de la actividad social, ¡es parte de la sorpresa! Lamentablemente no puedo hacer anuncio alguno sobre este particular. ADF: ¿Cómo considera el comportamiento del negocio en Suramérica durante el 2012? ¿Cuáles son sus predicciones para el 2013? JLD: En lo tocante a Suramérica, el 2012 fue tan bueno como el 2011, o incluso ligeramente mejor para el sector duty free. No alcanzamos los niveles de crecimiento que vimos en años anteriores, pero de todas formas fue un buen año. Dado que la gente sigue viajando y no hay acontecimientos imprevistos, me gustaría pensar que el 2013 será otro gran año para la industria en Suramérica.

LS travel retail North America

Expanding the footprint

A series of high-profile concessions awards will see LS travel retail North America opening numerous big-name stores in the US this year BY



S travel retail North America recently announced the opening of Geppetto’s and USA TODAY Travel Zone in Dallas Fort Worth International Airport (DFW) Terminal A, the first of a series of openings that mark the company’s first steps in DFW. “This is a major milestone for our team, as well as our brand partners,” said Gerry Savaria, President and CEO of LS travel retail North America. “We are pleased to be joining the concession program at DFW—the eighth busiest airport in the world—and to offer such exciting and engaging concepts to the Texas travelers.” Geppetto’s is one of the largest regional toy chains in the United States, offering classic toys for children aged 12 and under. This 90square-meter location features a selection of games and toys from popular brands such as LEGO, Mattel, Hasbro, Melissa & Doug and Ty. The rebranded USA TODAY Travel Zone offers a large selection of travel essentials and is combined with a Ruta Maya coffee bar featuring 100% organic and “fair” coffee. The stores precede the opening of six other concepts in the airport throughout the next two years. Awarded as part of DFW’s important Terminal Development Program, they include a Boutique iStore, carrying innovative electronics and related accessories for the digital mobile lifestyle, including iPods, iPads and MacBooks; two 7-Eleven convenience stores, located in Terminals A and E; ARTIZAN, one of the fastest-growing apparel and accessories concepts in North America; Texas Territories, offering a handpicked selection of local and regional gifts and souvenirs; and a combined Sierra News/Ruta Maya location, set to open in Terminal B.

Expanding in Texas Earlier this year LS travel retail North America was awarded a retail package of two locations as part of a Request For Proposals for new concessions in George Bush Intercontinental Airport (IAH) Terminal B. Representing close to 280 square meters, the two new stores—LS travel retail’s flagship RELAY and iStore—are the first to be operated by the company in Houston. Tendered in May last year as part of the Terminal B Southside Redevelopment Project, the two stores will bring both a local and a global touch to United’s “signature” facility at IAH. With 1,300 stores in 23 countries, including a strong footprint in the United States, RELAY is geared towards making the traveler’s journey smoother by making shopping easy and facilitating comfort, exploration and relaxation. At IAH, the large store will offer everything travelers need, from convenience and media items to local gifts and souvenirs. Carrying both hardware and accessories for PC as well as Mac users—laptops, tablets, media players, cameras, e-readers, headphones, from leading brands Apple, Sony, Panasonic and many more—iStore will be the place Terminal B customers shop to get the very best of the digital world. One of the fastest growing specialty retailers of digital electronics in North America, iStore is a true hub where travelers can directly interact with mobile technologies and learn how they can enhance business, leisure and travel activities. "We are honored to be asked to join such an award-winning program and look forward to working closely with United and Westfield in the delivery of a fantastic traveler experience,” said Vadim Motlik, Chief Development Officer at LS travel retail North America. "LS was most responsive on those specific locations during the Competitive Evaluation Process and overall delivered what is a very impressive proposal,” commented Gerry Cecci, Vice President of Airport Management for Westfield Concessions Management.

LS travel retail North America’s first The Economist is a store modeled on the world-renowned news magazine, the design of which was conceived specifically to enhance TBIT’s sophisticated lines

The two new stores recently awarded—LS travel retail’s flagship RELAY (pictured) and iStore—are the first to be operated by the company in Houston

Gearing up in Los Angeles The most recent announcements from LS travel retail North America are just the latest in a series of high-profile concessions awards in the US. Late last year, a venture between the company and the Los Angeles-based Concourse Concessions, Inc. was awarded a retail package of nine locations as part of a request for proposals (RFP) for new concessions in Los Angeles International Airport (LAX). Tendered in April as part of Los Angeles World Airports’ multi-billion dollar development program—the biggest public works project in the history of the City—the nine concessions are all located in the newly-enhanced Tom Bradley International Terminal (TBIT). They include three national and international travel essentials stores: LS travel retail’s flagship RELAY, a rebranded USA TODAY Travel Zone and the company’s first The Economist. Other stores include 7-Eleven, two iStores, a Porsche Design store, Bienvenida Flowers & Gifts and Malibu Shades. Set to open in spring 2013, the new stores are expected to generate about US$130 million in sales throughout the term of the contract. “We are honored to be joining LAX’s worldrenowned concession program,” said Vadim Motlik, Chief Development Officer at LS travel retail North America. “This is a major milestone for our team and we look forward to opening this exciting selection of concepts in the new and highly anticipated Tom Bradley International Terminal. Like us, Westfield is committed to providing the US travelers with superior shopping experiences and we are thrilled to work closely with their team to keep delivering on this promise.” THE AMERICAS DUTY FREE & TRAVEL RETAILING


La Aurora International Airport

Guatemala’s La Aurora International Airport evolves its business model to focus on stronger relationships with concessionaires and brands for the benefit of all RYAN WHITE BY


n order to succeed in travel retail and generate higher non-aeronautical revenues, a change of mindset is required on the part of airport authorities,” says Elubia Gaitan, Manager, Project ICAO in Guatemala. “Airports are no longer just providing infrastructure for airlines—an airport is a sophisticated market that can generate diversified revenue streams.” Guatemala International Airport is currently reinventing itself with the clear goal of being in closer partnership with concessionaires and brands alike. The airport has taken a number of considerations into account in order to maximize traveler spend at duty free stores and F&B locations. For example, Gaitan tells us that gate assignments can have wide-ranging effects on non-aeronautical revenue. For this reason,

ers and brands to work together to improve efficiencies and develop a synergistic relationship that benefits all.” With the above goal in mind, Guatemala International Airport has also been looking at traveler satisfaction. From reducing overly long queues or ensuring adequate wayfinding to reduce stress, Gaitan assures us that the airport is doing its part. “If people are in a place where they’re relaxed and comfortable, they’re going to spend more. This fact has been proven time and again at airports all over the world.”

A plan put into practice With the goal of further increasing commercial opportunities at the airport, Guatemala International Airport has developed a plan that it calls “Retail Marketing Support,” which will come into effect in Sep-

“The thinking used to be that fewer passengers equate to less profit. La Aurora International Airport is aiming to be proof positive that this isn’t the case.” Elubia Gaitan, Manager, Project ICAO in Guatemala

Guatemala International Airport makes a point of carefully studying passenger profiles on both legacy and low-cost carriers when deciding where planes should depart and arrive. “Concessionaires are effectively putting their trust in our hands as an airport authority,” Gaitan says. “By the same token, we trust them to help us generate more non-aeronautical revenue. It behooves airports, retail100

tember 2013. Gaitan has been tasked with starting up the project, including hiring a project lead and ensuring the initiative is in accordance with ICAO and Federal Aviation Authority guidelines. “The retail marketing support project will be implemented in partnership with an external consultation firm with expertise and knowledge of the travel retail and aviation industries,” explains Gaitan. “Ahead of the Sep-


tember launch, Guatemala International Airport will be contacting brands directly in late July. The program will run for two years and will be by invitation only.” The idea is for the airport to be more involved with the brands themselves and act as a support for the promotional efforts of concessionaires and their brand partners. Going a step further from considerations such as the abovementioned gate assignments and traveler comfort, Guatemala International Airport will offer support for advertising, on-concourse activations, in-store promotions and more. “It’s about being another point of reference for the brands and complimenting the hard work of the concessionaires,” explains Gaitan. “As in other airports worldwide, we want the brands to feel comfortable in contacting us if they feel there’s a way that the airport can enhance sales outside of what a retailer can do.” Gaitan sees the project as a real step change for Guatemala International Airport, envisioning a near future replete with special events, sponsored areas on the concourse and more interaction among the brands, the airport and the passengers. Previous airport administrators haven’t had quite the same take on the potential that non-aeronautical revenue holds, but Gaitan says that under the guidance of airport management, the thinking has evolved. "Many smaller airports the world over have proven conclusively that non-aeronautical revenue can be the key to unlocking huge profits,” Gaitan concludes. “The thinking used to be that fewer passengers equate to less profit. Guatemala International Airport is aiming to be proof positive that this isn’t the case.”

Juicy, lively and full of sunshine Explore the taste of Blossom Hill

The BLOSSOM HILL words and associated logos are trade marks. ŠBLOSSOM HILL Winery 2013.

Visit us at IAADFS, Orlando 8-10 April 2013, Booth 1300

Visit us at IAADFS Orlando, 8-10 April 2013

Booth 1300 We search the world to bring travellers extraordinary products to discover. Each innovative brand has its own unique personality and all embrace values of quality and exclusivity, differentiated by small batch and limited release production. It’s all in the mix

Miami International Airport


heat is on


The North Terminal’s International Arrivals area


Miami International Airport sizzles with record-setting 2012 passenger numbers and a host of large-scale renovations to better serve travelers


y all accounts it was an amazing year for Miami International Airport (MIA). The hub set new alltime records for annual passenger and cargo traffic in 2012 with 39.5 million passengers and 2.1 million tons of cargo. The annual passenger total increased by 3%, up more than 1.1 million passengers from 2011, and cargo volume grew 4.6%. International passengers led the way with an increase of 5.2% to 19.4 million travelers, while domestic passengers grew by 1% to 20.1 million. MIA's passenger traffic benefited from hub carrier American Airlines beginning in November its largest schedule ever at the airport with 328 daily flights and expanded service to 38 cities. American launched six new routes from MIA in 2012 as well: Asuncion, Paraguay; Barcelona, Spain; Manaus, Brazil; Recife, Brazil; Roatan, Honduras; and Seattle, Washington. MIA also added five new carriers in 2012: LAN Colombia began four weekly flights from Bogota; Mexican low-cost carrier Interjet began daily flights from Mexico City; Dutch Antilles Express began daily service from Curacao; Russian carrier Aeroflot began three weekly flights from Moscow; and Brazilian low-cost carrier GOL began weekly charter service from Sao Paulo in July that expanded to daily service in December. With the addition of American's direct flights from Recife and Manaus, MIA is now the US airport serving the most destinations in Brazil, with a total of seven cities: Belo Horizonte; Brasilia; Manaus; Recife; Rio de Janeiro; Salvador; and Sao Paulo. A clear indication of the fact that Brazil is still a force to be reckoned with in the Americas is that the country was MIA's top international market

Miami-Dade Aviation Department Deputy Directors Ken Pyatt and Miguel Southwell; Concession Business Chief Adrian Songer; and Aviation Director José Abreu with ARN magazine’s 2012 Best Overall Concessions Program Award for the new North Terminal

with 1.4 million passengers. Combined, American, TAM and now GOL provide 123 flights per week between Brazil and MIA. Importantly, people aren’t just traveling, but purchasing, says MIA’s Communications Director Greg Chin: “Non-aeronautical revenue in 2012 represented 34% of the [MiamiDade] Aviation Department’s total operating revenue,” he explains. While non-aeronautical revenue as a percentage of total revenue has remained relatively steady over the last few years at 31-34%, the increase in travelers has certainly helped duty free and F&B sales.”

Renovations to match passenger growth Chin tells us that the Miami-Dade Aviation Department is at the end of a very robust development schedule, which took place over the past three years. In January, two new stand-alone stores developed by Duty Free Americas (Michael Kors and Tommy Hilfiger) opened in MIA’s South Terminal postsecurity concession hall. On the duty paid side, MIA is in the midst of soliciting five new food operations for its North Terminal Marketplace project, which will include a series of small units in Concourse D, and a large, 557-square-meter food and beverage operation in the pre-security area of the North Terminal. MIA is also redeveloping a generic gift store into a Michael Kors boutique in Concourse D.

For this year, three major projects at MIA are slated for completion, says Chin: “We are on schedule to open a dedicated eight-lane re-check area for the new North Terminal international arrivals facility in March,” he says. “When completed, passengers arriving on international flights in concourses D, E and F can avoid exiting the post-security area and make connections more quickly. The new re-check area will also relieve some congestion in the pre-security check-in area of North Terminal for American Airlines.” Furthermore, the three remaining gates in Concourse D (D-26, D-27 and D-28), part of the new North Terminal, are scheduled to open in May, and Miami Central Station, the last major section of the Miami Intermodal Center (MIC), is scheduled to be completed by the Florida Department of Transportation in December. Central Station will include a new Tri-Rail station and connections to Amtrak, Greyhound and other inter-city ground transportation. Travelers will connect between MIA and Central Station via the MIA Mover. “2012 was an outstanding year of growth at MIA in terms of passenger and cargo numbers, and in terms of large-scale capital development,” says Chin. “With additional improvements slated for completion this year, MIA looks forward to welcoming even more travelers to Miami-Dade County and all of South Florida.”

Brazil bolstered MIA’s passenger traffic significantly in 2012; Brazilian low-cost carrier GOL began weekly charter service from Sao Paulo in July that expanded to daily service in December



Frontier Duty Free Association

After a very successful 2012, the FDFA expects to maintain the momentum with its May 2013 Business Development Summit and Golf Tournament BY RYAN WHITE


he Canadian land border duty free industry finished 2012 on a high note, with total numbers above those of the previous year. The holiday season specifically proved fruitful for the travel retail industry in Canada. In December 2012, land border duty free in the country racked up a total of CAD$11.6 million (US$11.62 million) in sales, representing a 1.68% increase in sales compared to December 2011. January to December 2012 sales saw a 2.57% increase compared to the same period in 2011, and sales at land border duty free shops for January to December 2012 totaled CAD$146 million (US$146.2 million). Another highlight near the end of 2012 was the fact that attendance at the annual convention and tradeshow was the highest in recent memory. While it’s still early days this year, the industry is looking to keep the momentum going, not only in terms of sales, but also with regard to special events such as the first annual Golf Tournament and Business Development Summit and, of course, the 2013 convention and tradeshow.

Attendees to last year’s FDFA event in Niagara Falls were given a summary of what the organization’s national marketing campaign has achieved. Good news for the industry in Canada, and indeed for cross-border travelers, is that original objectives were exceeded on a number of fronts. Executive Director of the FDFA Laurie 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,” Karson told us at the time. “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, it was reported that has been successful at driving traffic to operators’ sites. The next phase of the campaign, ongoing this year, will be about finding a balance between awareness and acquisition, and Karson promises more contests like the popular Road Trip Rules are on the way. Also during last year’s convention and tradeshow, attendance was high at the operator meeting, where a number of important themes were discussed including taxation of Americans crossing the border versus Canadians and operators providing currency exchange services. Other events at the show included a Diageohosted lunch introducing the Johnnie Walker Explorer’s Club Collection; the annual silent auction at the opening cocktail; the tradeshow itself; and of course the Gala Dinner, which not only recognized operators and suppliers who went above and beyond in 2012, but also acted as a nice cap off to a great year. Also announced at the 2012 FDFA convention and tradeshow was the new FDFA board, consisting of Abe Taqtaq as President; Peter Brain as Vice President; Jim Pearce as Treasurer; Paul Dickinson as Secretary; and Jim Foster, Len DeSilva and Justin Guay as Directors. 104


From the tradeshow floor to the Gala Evening and innumerable social networking opportunities, the 2012 FDFA tradeshow and convention was widely considered a success

Frontier Duty Free Association

“We hope to see everyone in Whistler, as it should be an outstanding event that is geared to raising awareness and funds for such an important cause.” Laurie Karson, Executive Director, FDFA

The FDFA recently announced that its first annual golf tournament will take place on Thursday, May 9 in Whistler, BC at the Chateau Golf Course followed by dinner at the Westin Whistler. The FDFA has now opened registration and notes that all FDFA members and key industry stakeholders, in addition to invited guests, are welcome to attend. “The FDFA will be managing this event, and we anticipate most of our land border duty free owners/operators will attend, since we have a two-day Business & Professional Development Summit taking place in Whistler two days prior to the tournament,” says Karson. The objective of the tournament is to raise funds for the National Breast Cancer Foundation in memory of Pernod Ricard’s Lori Watson. “We invite all duty free industry representatives—store employees, suppliers, airport members, and so on— to consider attending this terrific networking event,” continued Karson. “If you wish to visit one of the land border duty free stores after the tournament, the FDFA requests that you contact the stores individually, as this is not part of the FDFA mandate. “It should be noted that we have secured an outstanding hotel rate at the Westin Whistler and shuttle discount from the Vancouver Airport to Whistler,” says Karson. “For supplier members who wish to stay in Vancouver on May 10 or 11, the FDFA will be sending out a hotel discount link at the Westin Bayshore. “We hope to see everyone in Whistler, as it should be an outstanding event that is geared to raising awareness and funds for such an important cause,” concluded Karson. The FDFA Operator Only Business Development Summit will take place two days prior to the golf tournament.



Baja Duty Free

Baja Duty Free opens two new stores and continues its upward trajectory despite competition from the local market and violence in Mexico BY RYAN WHITE


uccess sometimes has its price. In the case of Baja Duty Free, 2012 year-on-year statistics didn’t show a huge increase, largely because 2011 was one of the best years the operator ever recorded. The company fell short of its forecast in terms of sales, admits Irene Rojas, Marketing Manager at F&S, owner of the Baja Duty Free name, but given such strong performance in 2011 it’s easy to forgive their optimism. “Another factor contributing to our performance last year was the competitive local market in the US when it comes to liquor,” Rojas explains. “People can now buy spirits in pharmacies, convenience stores, discount stores— just about anywhere. This has affected traffic in duty free stores on the US/Mexico border.” It’s easy to understand how the small difference in liquor prices between domestic and duty free, combined with the ease of being able to purchase spirits almost anywhere domestically, would leave travel retailers on the border fighting an uphill battle. “People look for convenience above all,” Rojas explains. “When you factor in long lines at the border and the insecurity in Mexico at the moment, it makes

to the east of the San Ysidro/Tijuana crossing and a lot of people use it as an alternative to the long lines there,” explains Rojas. “As such, it’s a strategic spot for us.” Another important store opening recently took place at the Tecate crossing. While small at just over 80 square meters, the location is significant in that Baja Duty Free is the only duty free operator in the area. Both the Tecate and Otay Mesa stores boast a large selection of spirits, including domestic and imported beers, as well as tobacco, perfumes and accessories, all from big name brands. While no openings are yet planned for 2013, Rojas tells us that Baja Duty Free is always on the lookout for new opportunities— both in regard to stores and new products— that will allow it to continue strengthening its position as one of the premier duty free operators on the US/Mexico border. In the end, it comes down to differentiating oneself from the local market, says Rojas. Fortunately, Baja Duty Free has always put customer service as a top priority. “The best way to compete with the domestic market is to continue offering excellent service,” she explains. “Some good examples of this are our promotions and our customer loyalty program. It’s more than just a sales transaction for us; we want customers to think about the experience as a whole the next time they decide where to make their purchase.”

things difficult to say the least.” Rojas points out that the instability in Mexico presents problems in some areas more than others. On the border with Texas, at the Eagle Pass/Pierdas Negras and Brownsville/Matamoros crossings, for example, the effect tends to be felt more strongly as the presence of armed soldiers, however necessary, clearly doesn’t lend itself to a relaxed duty free shopping experience. Despite competing with domestic liquor sales in the US, Rojas tells us that the spirits category continues to be Baja Duty Free’s best performer. As can be expected, Diageo is leading the pack in this regard, especially since Rojas tells us that Scotch is a particularly popular spirit at the border. Despite good sales of Johnnie Walker, Rojas tells us that Diageo’s Buchanan’s brand is the clear winner at Baja Duty Free stores given that the brand is a favorite in Mexico. Despite external factors, Baja Duty Free continues to invest in the business and at the Otay Mesa crossing, travelers will now be greeted with a brand new Baja Duty Free store measuring 245 square meters. “Otay liquor section of Baja Duty Free’s Otay Mesa Mesa is located about 15 minutes The store; the company is focusing on customer service in the face of US domestic spirits retailer

Irene Rojas, Marketing Manager, F&S

Baja Duty Free continues to invest in its business; pictured is the company’s new store at the Otay Mesa border crossing



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The FlyInStyle team: (from left) Katherine Patch Sleipnes, Business Development Leader; Amanda Anthony, CEO & Founder; and Jonathan Torrens, Lead Developer




FlyInStyle is set to change the way travelers, brands and retailers interact in the airport environment with the release of an innovative new smartphone application


lyInStyle is a social travel app company that is building a new smartphone application to give travelers the best of their favorite social apps plus a personal travel assistant all in one. Americas Duty Free sat down with Amanda Anthony, CEO and Founder of FlyInStyle, to get a sense of how the app can help travelers, retailers and brands alike at airports around the world. Americas Duty Free: Can you briefly explain your company and your app? What need does it fill and how is it different from what’s currently out there Amanda Anthony, CEO and Founder, FlyInStyle: FlyInStyle is developing a social travel application for the airport traveler. Our first product will help travelers find promotions, deals, product launch news, happy hours and more. We are addressing the “pain points” of retailers and airports to help drive traffic to their stores and increase spend/ticket. On the traveler side we are focusing on taking the “drag” out of airport down time by offering shopping and dining deals. We will continue to evolve with fun new ways to pass the time and connect with others. Current airport apps are focused on the navigation and logistics part of the trip. FlyInStyle is focused on providing travelers with deals, promotions and event information to entertain and delight them. Some duty free retailers have launched individual apps for their stores as well. Our app will include all con-


cessions across categories globally. We will work with those apps to provide links to help them grow traffic to their websites and apps. ADF: What advantages does the app provide for travel retailers and suppliers? AA: FlyInStyle is positioned to launch the smartphone social shopping application for the travel retail industry. Our team has decades of travel retail industry experience so we understand the distinct challenges and needs of airport retailers and restaurants. FlyInStyle is committed to design the right platform to help address those challenges and build the social relationship between brand, retailer and traveler throughout the globe. We also have a unique opportunity to collect and track the consumer behaviors of airport travelers through mobile, which will help retailers and brands provide more targeted campaigns and hopefully increase the ROI on their promotional activity. ADF: Are you currently in negotiations with brands or retailers? AA: We are in discussions with many global brands and retailers, as well as key regional players to partner with us during the design phase and the beta launch. We will formally announce these partnerships with a press release closer to launch. ADF: It’s been noted that very few travelers use roaming when traveling. Is this is a concern for you?


AA: With any smartphone application, roaming is a concern. The app will work with a wireless connection, even in airplane mode. We are evaluating how much information the traveler will be able to access during flights, for example, when both wi-fi connection and phone service may be absent. ADF: How did this idea come about? AA: Working for P&G Prestige gave me many opportunities to hear the issues the industry is facing—the everyday concerns of my customers and of our brands. I thought, “We could use an app to address the challenges of engaging travelers to increase traffic and sales.” We are using both a lean and agile methodology to develop this product, meaning that we are testing constantly and building in small increments to ensure we are bringing to market only what users want. ADF: You’ll be at IAADFS, I understand. What are your main goals for the exhibition? AA: We are focused now on expanding the airport retail, food & beverage and brand partnerships both for the design and the beta launch periods. Because we are testing constantly, we will also use this show to collect feedback on the app, the database and the reporting tool we are creating on the back end and our website. We will involve the industry as much as we can to ensure we are building this app to fit the needs not only of the traveler but of our retailer and brands customers as well.

Monseñor Rodríguez, 654 - Ciudad del Este, PARAGUAY - Tel +595 61 500645 -



Ralph Lauren will stage a Big Pony Garden Party, an animation that combines Big Pony Men and Big Pony Women in a single space

aims higher

L’Oréal Travel Retail Americas eyes positive potential in the Americas BY



rowing market share in a region that is progressing remains the main goal this year for Javier Labarta, CEO of L’Oréal Travel Retail Americas, Parbel. “The wordwide duty free industry is developing at a healthy pace,” Labarta says. “However the unfavorable exchange rate of the Brazilian real is slowing the rhythm of growth [in the Americas] compared to the growth that other regions are experiencing. We estimate that business in the Americas will grow in the range of 6% to 7%.”

Javier Labarta, CEO of L’Oréal Travel Retail Americas, Parbel

The aim for L’Oréal Travel Retail Americas is to grow at a rate that’s 50% faster than the market, Labarta says. “In the last two years, we have reinforced our leadership gaining market share versus our competitors. This year, once again, growing market share continues to be our main objective as well as strengthening our relations with the key retailers. I personally consider that establishing a partnership with our clients is a goal that should be on every company’s agenda.” Labarta characterizes the Americas duty free market as very dynamic, with lots of changes underway. Business on the Brazilian borders is developing rapidly, he says, and airports in North America are evolving and modernizing to meet the demands of the discerning and high-spending Asian travelers who are arriving in increasing numbers. Part of this evolution is moving travel retail in this part of the world away from the standard food and beverage orientation of yesterday to a luxury gourmet offering, and from the typical souvenirs and gifts layout to a luxury retail mall. Labarta looks to the west coast of the US to lead regional growth thanks to the massive influx of visitors from China. That said, L’Oréal Travel Retail Americas is careful not to neglect any parts of the market, so attention will also focus on the US eastern seaboard, where European and Latin American travelers are the main drivers of growth. Mexican prospects are good too, Labarta says, and Brazil, however worrisome its currency woes may be, remains a major contributor to growth in the southern hemisphere.

New launches for Lancôme this year will include Teint Visionnaire, Absolue Range Renovation, Rénergie Reviva Plasma

As consumers become more demanding, the focus in travel retail is increasingly on product innovation and quality rather than price as a growth generator. Labarta has an expansive definition of “quality.” For him, it means not only the quality of the product itself, but also the quality of the shopping environment and in particular the perceived value of the services and advice offered by in-store beauty advisors. Exclusivity—access to specific and selective brands—counts heavily on luxury markets a major market-maker in the Americas. Labarta believes that the Clarisonic skincare application brand has an edge here, and accordingly it will be made available in the Americas in the near future. Looking at the overall brand portfolio for L’Oréal Travel Retail Americas, Labarta notes that fragrance brands are more highly developed in Latin America while the cosmetics ranges are grounded mostly in North American markets. Lancôme is of course a market mainstay, with strong offerings across all beauty categories. Labarta describes it as “the most desired brand in both South and North America.” For 2013, key new product launches will take place under the Lancôme, Giorgio Armani, Cacharel, Yves Saint Laurent, Kiehl’s and Biotherm banners. Lancôme enjoyed a strong year in 2012 and for 2013 the brand will expand on the success of the “Super Serums” animation. “This year we will not only re-push the two pillars Génifique and Visionnaire separately, but also promote the use of them together,” Labarta says. The goal of the animation is to create strong POS traffic and reinforce the efficacy message of the products. The animation invites the customer to experience the Super Serums duo at Lancôme counters. Other launches for Lancôme will include Teint Visionnaire, Absolue Range Renovation, Rénergie Reviva Plasma, and the continuing development of La Vie Est Belle with a slate of new introductions this year.

Armani works with water For 2013 Giorgio Armani will develop its Acqua For Life initiative, a partnership with Green Cross International that constructs safe drinking water systems in the developing world. This year the objective is to collect 60 million liters of water for projects in Ghana, Bolivia, Haiti and India. The initiative will be displayed alongside the bestselling Armani fragrances Acqua di Gio and Acqua di Gioia, accented by “Acqua for Life” sleeves and a dedicated Pantone color that symbolizes the

In the makeup category, Yves Saint Laurent ran a special promotion during the Chinese New Year in DFS-operated Waikiki store, Hawaii

ongoing work. The campaign is a collaborative project that includes social media activities and digital content that can be shared, making use of the viral spread of ideas on social networks. Under the Armani brand, a new launch extending the Eau Pour Homme line will complete the franchise. This year Ralph Lauren will stage a Big Pony Garden Party, an animation that combines Big Pony Men and Big Pony Women in a single space. It’s a strong, fresh story around the Big Pony collection, which is deeply rooted within the Ralph Lauren DNA. The Kiehl’s business is based on core products, some of which have been offered since the launch of the brand and have proven to be long-term market performers. “We assure that any of our new products we offer to the consumer is “uniquely Kiehl’s” and can be relied on to retain credibility. One notable launch is the Kiehl’s Dermatologist Solutions,” says Labarta. In the makeup category, YSL is running a new “The Light Belongs to YSL” theme. “We educate the consumer on how to use YSL products to achieve complete, luminous signature makeup results,” Labarta says. “It starts with skincare as a ‘way to,’ continues with the ‘magic’ pen Touché Eclat and foundation Le Teint Touché Eclat, and finishes with Vernis à Levres.” The latter combines the shine of lip gloss, color of lipstick and longlasting effects of a lip stain. For Lancôme the current star performer is the anti-aging line— Absolue, Rénergie and the Super Serums Génifique and Visionnaire. In Lancôme makeup, Rouge in Love leads in the lip segment and Hypnôse Drama leads in mascara. The Hypnôse line was recently reinforced with Hypnôse Star, which won the Elle International Beauty Award. In fragrances, La

Vie Est Belle and Trésor continue to be the “pillars,” Labarta says. Acqua di Gio Homme has been maintaining its position as the top masculine fragrance in North American travel retail for Giorgio Armani. Labarta describes it as “a fresh, sensual blend that has become a classic men’s fragrance,” embodying masculinity in harmony with nature. For Ralph Lauren’s World of Polo collection the bestsellers are the Polo Black, Polo Blue and Polo Green entries. In Cacharel Amor Amor is the top seller, and with Victor and Rolf the Flowerbomb EDP leads the pack. “In YSL the L’Homme franchise— L’Homme, La nuit and L’Homme libre— became a true favorite of the consumer,” Labarta says. YSL is known for producing market-leading makeup, with iconic offerings such as the Touche Eclat pen, which has been on the market for 20 years. “We recently received two prestigious Marie Claire awards for our make-up products: for le Teint Touché Eclat foundation and for Vernis à Levres.” Under the Biotherm banner in face care, the top selling line is the hydration line Aquasource. L’Oréal Travel Retail Americas actually doubled sales for Aquasource in travel in the Americas last year, Labarta says. Biotherm is also strong in men’s skincare, occupying top spot in the market globally as well as in the travel retail space in the Americas, Labarta says. The most popular product in the Biotherm Homme line is the Aquapower hydrating range. “With such an amazing portfolio of brands, personally I feel that they are one of the best in the industry, we are highly optimistic that 2013 will be a groundbreaking year for L’Oreal Luxe in Travel Retail Americas. The adventure has just begun,” concludes Labarta. THE AMERICAS DUTY FREE & TRAVEL RETAILING


Essence Beauty

Essence Beauty recently rolled out Versace Eros by Euroitalia in the Caribbean market

The venerable TR distributor continues to build its business on a foundation of strong relationships


f power lies in partnerships, then Essence Corp. is a powerful company indeed. The Miami-based distributor regularly represents some of the most prestigious fragrances in the industry, and 2013 is proving no different. Jimmy Choo, Bulgari, Versace and Moschino are just a handful of the big-ticket brands rounding off the company’s portfolio this year. “We had the privilege to partner with Bulgari,” says Guillaume Bona, Executive Sales Director, Caribbean. 2012 was the first year Essence Corp. partnered with Bulgari for the distribution of the brand in the Caribbean. Consolidation, adds Bona, is high on the agenda for Essence Corp. right now, with some enticing new developments in store. As he explains: “Our goal is to consolidate our business with our current partners. There are great projects and news that will be announced very soon.” One recent noteworthy development, per Antoine Bona, Executive Sales Director, TR Americas is Essence Corp.’s management of the Euroitalia brands, Versace and Moschino, with Dufry Brazil. The company expects a substantial boom to its business as a result of this advantageous new partnership.

huge success for Essence Corp. The company is also on schedule for some impressive new travel retail launches being rolled out this spring. Topping the list is Burberry Body Tender, the latest new fragrance from the iconic London brand. A follow-up to Burberry Body, the Tender variant is understated and feminine, with a lighter, more spirited expression than that of its predecessor. The sparkling scent brings together lemon, dewy English rose and white jasmine. It launched in Caribbean travel retail in March 2013. Then there is Jimmy Choo Flash, the illustrious shoe designer’s new fragrance. The scent, based on a bouquet of white flowers, is best described by Jimmy Choo Creative Director Sandra Choi: “Flash is about the cool rush of excitement and the sense of power a woman feels when dressed in a pair of sexy shoes. Its character, which is both heady and effervescent, captures this perfectly.” Brands like Burberry, Versace and Jimmy Choo help Essence Corp. maintain a strong positioning in markets where the company operates. This is no easy task given that some regions are facing notable challenges – including the devaluation of the Brazilian real and

Argentinean peso, as well as a drop in purchasing power in some parts of the Caribbean. “2012 was an election year in the US, Europe and Venezuela. If tourism was up, purchase power per visitor is decreasing,” says Guillaume Bona. “We estimate the territory to be between -5 and -10%.” Fortunately, things fared better further north, offering Essence Corp. a beacon of hope and providing a substantial boost to their growing business. “In the north we had a positive year led by Mexico and Canadian duty free accounts,” says Antoine Bona. “Overall, I am proud to say we grew 20% in travel retail North and South America.” Burberry Body Tender is the latest new fragrance from the iconic London brand

Back to basics When it comes to the day-to-day running of the business, Essence Corp. will be focusing on the essentials in what Guillaume Bona calls a “back to basics” approach. They will concentrate on the local population in regions where they are active, on training, in-store animations, and on re-promoting key pillars while capitalizing on new launches. In the Caribbean, one of these recent launches is Versace Eros, a fragrance for men that has done exceedingly well, and will now be launched in travel retail. The bold scent embraces the characteristics of its namesake Greek god, namely love, passion, beauty and desire. It has been a 114


Jimmy Choo Flash is based on a bouquet of white flowers



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The Cloudbreak Group

Brand builder

Fabulous, the first fragrance by fashion designer, TV personality and businessman Isaac Mizrahi

The Cloudbreak Group may be new to travel retail, but its brand savvy has been years in the making BY MELISSA SILVA


lthough the company was established three years ago, distributors The Cloudbreak Group understands how to market a fragrance brand. Much of that understanding can be attributed to the company’s CEO, who has a background in operations and brand development, working throughout his career for an array of high end fragrance and beauty brands such as Louis Vuitton (Michael Kors and Marc Jacobs), John Varvatos and Prada. The New York-based company currently houses three fragrance licenses—The New York Yankee Fragrance Brand, Isaac Mizrahi and Dennis Basso—and it is in the process of expanding. “Our first New York Yankees products launched in April of 2012 and we are incredibly happy with the platform of luxury, lifestyle and sport that we have been able to build around this iconic, global brand. We are on plan which is a great feeling,” says CEO Thomas Butkiewicz. “You never end up hitting targets exactly as planned, but 2013 looks to take our Yankee brand to over US$15 million at retail in the sports category, and we will be adding some additional teams to the roster that have an international presence.” In terms of travel retail, The Cloudbreak Group is new in the market, but it’s actively looking to expand its distribution. “As we really focused on our partners in 2012, we will expand distribution into additional Latin America countries, Asia, Europe and additional partners in North America,” says Butkiewicz. “We shipped to the military channel in February, which supports and helps expand our travel retail business.” The company also plans to begin rolling out into South Africa. As for trends, Butkiewicz says he is seeing both consumers and retailers focus on brands with integrity and longevity. “Fashion brands and brands which have a media presence or lifestyle component will continue to do well,” he says. “A multi-channel distribution strategy is a must.” For Butkiewicz, impulse shoppers and holiday seasons definitely play a significant role for almost all fragrance brands; however, he says balanced with continuous business. “Our 116

promotional calendar has been strong, and we have created cash wrap style items that consumers ‘need,’” he says. Gift with purchase (GWP) offers, on the other hand, play a significant role in increasing sales for the company, as is common in the fragrance category. “GWPs provide great value and a unique experience,” says Butkiewicz. Although GWPs will continue to be an important aspect of The Cloudbreak Group’s success, the company has other assets to excite and bring value to the consumer. These are what Butkiewicz calls “experiential GWP” offers that give the consumer a “special moment” as opposed to a takehome gift—“access to certain events or experiences that they may normally not be able to take advantage of, such as meet-and-greets with star players; access to events, such as being on the field; attending batting practices; and participating in media plays with the brand or its stars,” explains Butkiewicz. Presently, the New York Yankee Fragrance Brand is performing very well in both men’s and women’s scents. “We launched Isaac Mizrahi this past fall and are now beginning to expand distribution into additional department stores, specialty retailers, military, travel retail and various international markets,” says Butkiewicz. The Dennis Basso fragrance—a brand that Butkiewicz is personally quite fond of— has been quite successful in the US since its launch. “Dennis Basso, the designer, is simply amazing,” Butkiewicz says. “Dennis Basso is an exclusive high end fashion designer based in New York. His business has been a real success, with the fragrance scent and packaging portraying the sophistication and class that Dennis portrays in all aspects of his life, personal and professional,” he adds. “He is the ultimate gentleman and we are looking forward to nurturing this brand with rollout planned for the UK this spring.” Looking ahead, The Cloudbreak Group has a host of additional opportunities in the works for 2013 outside of the current portfolio expansion. The company plans to main-


The New York Yankee Fragrance for him and her

The self-titled first signature fragrance from New York fashion designer Dennis Basso

tain its present strategy of “building brands with heritage and credibility that are not a flash in the pan, but have a history of excellence and tradition.” When asked about distributing fragrances released by celebrities, Butkiewicz comments, “we would consider a celebrity only if it’s a ‘top’ celebrity, and if he or she has a long term vision for the fragrance.”

Beauty News Parlux and Kenneth Cole sign licensing agreement Kenneth Cole fragrances’ new partnership with Parlux marks the beginning of a new era

‘Try before you buy’ at Kiehl’s With its finely honed apothecary image, Kiehl’s is focusing on providing customized skincare solutions to customers in 2013. The renowned skincare brand is introducing a special “Change Your Skin” program in select locations across the globe, including a number of travel retail shops. The “Change Your Skin” program starts with a skin check and skin diagnosis, handled by Kiehl’s customer representatives, to determine exactly which Kiehl’s products match a customer’s unique skincare needs. This customized approach will ensure that customers new to the Kiehl’s brand start off with just the right products for their skin. Customers will also be provided with five free samples, giving them the opportunity to try out the products in the privacy of their own homes. This personalized approach addresses the growing consumer need for information and samples when purchasing skincare items. Kiehl’s data shows that 76.8% of female consumers wish they could access more expert advice and more samples. With its Change Your Skin program, Kiehl’s addresses this wish head-on. This consumer-focused approach is not a completely new undertaking for the 161-year-old company. Kiehl’s has a long history of exemplary customer service. It touts itself as a “pioneer” in this field, pointing to the fact that its strategy has been studied by Harvard Business School, and has inspired many similar service models at Fortune 500 companies.



Travalo takes a hold on the Americas at IAADFS 2013 At this year’s IAADFS show (stand 2402) Travalo will launch Skyline, a new rectangular perfume spray developed in collaboration with leading designer Millicent Lai. This is part of an overall strategic push in the US that will see the whole Travalo product range supported by a multi-million dollar TV and print advertisement campaign in 2013, in conjunction with George Lois. Premier Portfolio Int. Ltd. was appointed in 2012 as global travel retail distributor for Travalo and has been working closely to achieve success within the Americas. “The Americas are a huge market for travel retail,” said Garry Maxwell, Sales Director, Premier Portfolio. Travalo’s products are perfectly suited to all travelers.” “With Travalo’s ever expanding range, we feel there’s an option to cover every customer profile,” said Maxwell. “The new Skyline offers a luxury finish and we hope to have continued success with this item.” New inflight listings of the Skyline have already been secured for the Spring/Summer season with US Airways, Avianca, Delta and Air Canada. The Skyline has the patented refilling system and is available within a presentation gift box in four precious metal colors; silver, gold, pink and rose gold. The product will retail at US$40 and will be launched as an airline exclusive.

Travalo launches Skyline atomizer

Kenneth Cole Productions has entered a new licensing agreement with leading beauty company Parlux Ltd. With over 20 years experience in marketing and developing fragrance brands, the collaboration marks the beginning of a new direction for the Kenneth Cole fragrance business. “We welcome the addition of Kenneth Cole to the Parlux family. This iconic New York brand provides its consumers with a combination of intelligence, irreverence and style,” said Linda Levy, Senior Vice President and Chief Marketing Officer of Perfumania Holdings, Inc., the parent company of Parlux. “We are thrilled to be part of his brand evolution and look forward to creating future opportunities together. “As we enter into our 30th year with a strong focus on global expansion, the partnership with Parlux marks the beginning of a new era for Kenneth Cole’s fragrance business. We believe they are the perfect partner to develop a new scent direction and their strength in the international fragrance market further supports our strategic marketing initiatives,” said Michael DeVirgilio, President of International and Licensing, Kenneth Cole Productions Inc. After a 10-year partnership, Kenneth Cole Productions Inc. and Coty have mutually agreed to end the fragrance license. “Coty has enjoyed a very strong and collaborative decade long partnership with Kenneth Cole and Kenneth Cole Productions,” said Jean Mortier, President, Coty Prestige. “Working with such a respected designer as Kenneth Cole was a great honor, and we wish him continued success in the future.”

Tairo hosts Manifesto promotion with Le Rouge in Curacao (right) and Perfume Bar in Nassau

Painting the Caribbean with Manifesto by Yves Saint Laurent Luxury distributor Tairo International recently launched Yves Saint Laurent’s Manifesto in the Caribbean. Described as a scent that tells the story of “intuition and audacity that aims to celebrate the aura of a woman” com-

prises key ingredients of white jasmine, lily of the valley, blackcurrant, cedar, sandalwood vanilla and tonka bean. To promote the fragrance, dedicated retailers Perfume Bar (Nassau), Penha (Aruba)

and Le Rouge (Curacao) hosted in-store events where local artists were invited to create one-of-a-kind paintings inspired by Manifesto. The works of art were later presented as a prize to select customers.

Striking out on his own Frank Policastro, who earlier held the position of Vice President International of manufacturer and distributor Five Star Fragrances, is a seasoned player in the fragrance market. Building on this expertise, he is now bringing his insight and know-how to the duty free channel as an independent International Consultant. Policastro has already picked up some key accounts as an independent operator. This includes Calibre Beauté, a division of Quadrant Cosmetics of Toronto Canada, marketer of cosmetics, fragrances and toiletries. Policastro will be focusing on the company’s No Bleeding Lips Secret Lip Liner. Other brands picked up by Policastro include Emeshel Fragrances, manufacturer of fragrances, Jane Carter Solution, supplier of hair products, and 21 Drops, an aromatherapy company. “I’m working closely with the New Jersey-based hair company Jane Carter Solution,” says Policastro. “I have worldwide global responsibilities for establishing distribution of this product.” The product line’s key selling point is that it is made up of allnatural ingredients and targets all hair textures, with a particular focus on repairing the dry and damaged hair that many women suffer from today. “This is hair care for humanity,” says Policastro. “This is how we are promoting it. It is in thousands of doors across the United States, from specialty stores to pharmacies to whole foods and vitamin shops. We hope to take this overseas in 2013.” Jane Carter Solution’s specialized line of hair care products

With Jane Carter, Policastro will target both domestic and travel retail markets outside the US. He will be attending numerous trade shows throughout the year, and will look at the following regions in particular: the Caribbean, the UK, Canada, Australia, Singapore, the Middle East, the EU and South Africa. Policastro is equally enthusiastic about the 21 Drops product, which offers a modern experience in aromatherapy. There are 21 products in the range – numbered one to 21 and presented in modern, colorful tubes – and each blend treats a particular concern or aspiration, such as sleep or stress or headaches. “These are essential oils,” says Policastro. The #18 Sleep oil, for instance, helps relax the mind, easing the user into a good night’s sleep. It is made up of sandalwood, ylang ylang flower, palmarosa grass and vetiver root – all of which help sedate and soothe. The #11 Stress oil, on the other hand, helps ease the stresses of anyone dealing with overwhelming demands. Its components include frankincense resin, lavender flower, ylang ylang flower and German chamomile flower, all of which promise to steady nerves and relieve tension. 21 Drops offers essential oils to provide relief from specific concerns like headaches or stress

Beauty Beat: Fragrances


frenzy Flowers, fruit and foliage set the tone

Valentina Acqua Floreale by Valentino Company: Puig Description: Inspired by the fragrances of a summer garden, this unique floral scent starts with the freshness of bergamot combined with notes of neroli, followed by a blend of mimosa, jasmine, orange blossom, and tuberose. Accords of amber and patchouli complete the bouquet IAADFS location: Crystal Salons P&Q

Nina L’Eau by Nina Ricci Company: Puig Description: A fresh, fruity floral fragrance created by Olivier Cresp, master perfumer for Nina. The juice is enclosed in a soft pink frosted glass apple with silver leaves IAADFS location: Crystal Salons P&Q

L’Eau d’Issey Absolue Company: Beauté Prestige International Description: Master Perfumer Olivier Cresp (Firmenich) chose night-blooming jasmine, a flower with an intense fragrance. Lotus flower and freesia accord make up the top notes. Cresp enhances these notes with a touch of tuberose. In the heart of the fragrance, Provence honey absolute plays the leading role and bourbon vanilla absolute and wood accord conclude the juice Halloween Man Beware of Yourself by J. Del Pozo Company: Perfumes & Diseño Description: The masculine oriental scent that the company describes as second skin opens with apple martini, violet leaves, grand vert basil and mandarin; followed by the heart that comprises aphrodisiac ginger, cinnamon, lavender and Tunisian orange blossom. Bottom notes include leather, musks, grey amber and vanilla IAADFS location: 1615

Peach Blossom by Tommy Hilfiger Company: Estée Lauder Description: A “lush floriental” scent opens with Italian bergamot set off against a background of white peach and tart and cassis. A floral heart unfolds in the middle with purple iris and mimosa wrapped around a light veil of vanilla. The dry-down consists of musk, tonka bean, and exotic smoked coconut IAADFS location: Crystal Salons K&L


Clinique Happy in Bloom Company: Estée Lauder Description: A fresh, frosty floral scent that opens up with notes of yellow plum, a cocktail of frozen fruit, and watery green notes for a crisp introduction. Notes of muguet, white freesia and a mimosa accord from the original Happy lend a tactile nuance of petals. Transparent amber and white wood provide depth with a natural feminine softness IAADFS location: Crystal Salons K&L


The Game by Davidoff Company: Coty Prestige Description: The aromatic woody juice is composed by Symrise’s Bernard Ellena in partnership with the Davidoff creative team. It opens on a gin fizz accord, building to a heart of iris, atop a blackwood base IAADFS location: Crystal Salons M&N

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Beauty Beat: Fragrances Guess Girl Company: Coty Beauty Description: A fresh easy-to-wear fruity floral fragrance presented in a soft pink folding box. The lovely box is decorated with a printed fuchsia ribbon that wraps around the package and forms the letter “G.” A new black script logo appears on the package and bottle, and a black ribbon is knotted around the gold pump IAADFS location: 1515

Tous Man Intense Company: Perfumes & Diseño Description: Created by Alienor Massenet and Pierre Wargnye, the fragrance is comprised of sage blended with orange blossom, along with musk, amber, moss and tonka bean IAADFS location: 1615

RV Pure Woman Company: Perfumes & Diseño Description: A floral-green fragrance created by Domitille Bertier that consists of top notes of green violet leaves and pink pepper. Mimosa stands out in its heart, together with rose and water lily. Musk, moss and cedar make up the base IAADFS location: 1615

bebe Desire Company: Inter Parfums Inc., Essence Corp. Description: This new signature fragrance includes top notes of lemon, iced berries and kumquat wrapped around a heart of frangipani, violet and pink peony. The base resonates with woody undertones and is rounded off with dry-down of hints of blond wood, bleached sandalwood, amber, musk and praline IAADFS location: 1703

Zippo Feelzone for Him Zippo Feelzone for Her Company: Mavive Spa Description: A new line dedicated to youngsters, this twin product targets the new hi-tech generation. This is echoed in the product’s minimal and smart packaging, metal finish, colors and aerodynamic shape, all of which reflect the design of new-generation technologies IAADFS location: 2307

Nautica Aqua Rush Gold

Gap Established 1969 Electric

Company: Coty Beauty Description: Created by perfumer Joachim Correll of Symrise, Nautica Aqua Rush Gold is a masculine, citrusy, woody scent enhanced with marine notes that create a compelling and thoroughly captivating mélange. Brisk, bold and alluring, Nautica Aqua Rush Gold is a rich yet subtle aroma IAADFS location: 1515

Company: Company: Inter Parfums Inc., Essence Corp. Description: A fragrance that conveys the attitude of the Gap brand – lively and optimistic. The fresh aquatic signature scent is infused with black pepper and blue cedar wood IAADFS location: 1703

Gap Established 1969 Bright Company: Inter Parfums Inc., Essence Corp. Description: A burst of crisp fruits enveloped with lily, fresh muguet and fluorescent musk are encased in pink high gloss bottle topped by a silver cap that replicates the 1969 premium denim button IAADFS location: 1703





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Beauty Beat: Skincare & Cosmetics



Stronger colors, better skincare based on scientific support Hydra Lip Booster Company: Artdeco Description: New color nuances Company: La Prairie Description: This new luminescent eye translucent baby rose No. 37 and translucent wood rose No. 39 impart a cream uses selected technologies to focus on darkness in the eye area. By trace of color to the lips. Blue Seakale, a seaweed extract, stimulates collagen stimulating circulation beneath the synthesis. Hyaluronic Filling Spheres surface of the skin, White Caviar and Marine Filling Spheres make the Illuminating Eye Cream helps relieve lips appear smoother. Collageneer, a under-eye puffiness and brightens combination of active ingredients made skin while firming, moisturizing and from sunflower oil and extract of lupine protecting it against future damage seed, promotes elasticity with potent anti-oxidants

White Caviar Illuminating Eye Cream

Freeze 24-7 ArcticLift Firming Neck Cream Company: TPR Holdings Description: This hydrating and nourishing cream firms, tightens and lifts the neck’s slacking area. Featuring a new break-through ingredient, Rejuvelle, a proprietary Cactus Pectin, and never-before seen technology, ArcticLift is a miracle worker, says the company, offering visible results after just one use IAADFS location: 1519

Skin Perfecting BB Cream Company: Artdeco Description: This moisturizing beauty balm consists of SPF 15 and a slight tint. Artdeco offers the cream in shade No. 3, a light beige, and No. 6, a slightly darker color. This 8in-1 product is a multi-active, light skincare product “that conjures a perfect, radiant complexion while moisturizing the skin”

Chubby Stick Intense Moisturizing Lip Colour Balm by Clinique Company: Estée Lauder Description: Packaged in playful crayon-like barrels featuring a new fuller coverage formula with more intense color results. The lip balm will be available at Clinique counters in Asia Pacific

Cargo Lip Gloss Company: TPR Holdings Description: The longwearing formula is clinically proven to last up to six hours, providing staying power while moisturizing and leaving a high-shine finish. It can be worn alone or layered on top of your favorite lipstick for a glossy effect IAADFS location: 1519

Pure Actives Company: Collistar Description: Three specialties make up this mini-line, offering “molecules of the youth” that are essential to the skin. The formula can be applied under regular moisturizing cream



Smoky Trendy Palette Company: Collistar Description: The palette holds three strong powder colors—fuchsia, violet and black—for those who prefer contrasts. The powders can be used wet or dry, building them with the applicators provided, and their hold is enhanced by the brand new eye primer included in the set

Clarins Group *Photo courtesy: Guido Mocafico, Clarins


vibrant new reality at Clarins BY


fter restructuring its management team in the Americas, Clarins Group is starting to reap the rewards of this move, posting strong sales across many of its brands. Thierry Mugler’s Angel and Alien, in particular, are flying off the shelves, says the company, as is the Clarins brand of skincare and cosmetics. “If we focus on Clarins Cosmetics, we are doing great,” says Massimiliano Giordano-Don, LATAM – TR Americas Marketing Director, Clarins Group. “We’ve had nice results in 2012, so we are very happy.” Giordano-Don attributes much of this success to a major rehaul of the company’s management structure, initiated in late 2011. “We changed the team here in Miami [and] we are seeing the first effect of this [new] team,” he says. As part of the revamp, the company brought a full-scale Clarins team to its Miami office, and assumed responsibility for its travel retail business throughout most of the Americas and Latin America local market. Essence Corp., which had earlier managed the Miami office, took on direct distribution of Clarins’ products in the Caribbean.

Focusing on top doors The company has started placing special attention on its top-selling locations in the Americas travel retail channel. “We call these doors our ‘million-dollar doors,’” explains Giordano-Don. “In 2011 we had one top door, in 2012 four or five, and in 2013 [there will be] almost 10 in Americas travel retail.” First, Clarins took steps to define its ‘milliondollar door’ category, and then proceeded to pay special attention to the services and products available at the targeted points of sale. “This means a 360-degree approach,” notes Giordano-Don. “It includes promotions, training and a full assortment of products.” Currently, the Clarins Group’s ‘million-dollar doors’ cut a wide swath across duty free in the region – they are in Hawaii (operated by DFS Group), Vancouver (Aldeasa), Los Angeles (DFA) and Montreal (Aer Rianta). In addition to focusing on top-selling hot spots, Clarins is concentrating on adapting its services to better reflect customer demographics in each region. A case in point is Hawaii, where there are large 126



Following a significant management rehaul, Clarins Group focuses on boosting service at its top-selling doors and rolling out a powerful new anti-aging serum

numbers of Asian travelers passing through. To optimally serve this niche clientele, Clarins has finetuned their offerings, introducing special Asian corners to their counters and adapting product catalogues to reflect unique Asian taste preferences. Asian holidays have garnered specific attention. “For the Chinese New Year, we produced special visuals. We have beauty advisors that speak Mandarin and we have leaflets,” notes Giordano-Don. “We offered a special gift with purchase at specific locations. In Hawaii we had a small event with a lot of animation on the counter. There is a real focus on the Asia strategy in our Asian doors. This is new; we were not doing this before.”

Spotlight on serum In terms of products, Clarins is paying special attention to the rollout of its Double Serum – an anti-aging treatment that combines 20 powerful plant extracts to help eradicate wrinkles and skin laxity and tighten large pores. The Serum is currently being introduced to the local market in the US. It was also previewed late last year in the DFS-operated Hawaii store, in part because of the location’s large Asian clientele. “We wanted to make sure that Hawaii got the Double Serum in time for the Chinese New Year due to the influx of Chinese travelers passing through, and also because we had already launched this product in Asia earlier.” Elsewhere in the Americas, the Double Serum will be available in May, and will be supported with numerous animations. “We are targeting to have 170 animations all year only for Double Serum for Americas travel retail,” notes Giordano-Don. “We are planning to launch the 30ml size, which is the regular size.” So far, interest in the powerful anti-aging Serum has been phenomenal, both in local markets and in travel retail in Europe and Asia, says GiordanoDon. “In Europe they are going crazy,” he notes, “and it’s also booming in Asia where it was launched at the end of last year. We’ve had fantastic results.” Now, with its own home team settled in Miami, the Clarins Group is looking forward to building on this success and growing its business even further in the region.

Clarins’ Double Serum anti-aging treatment combines 20 powerful plant extracts to help eradicate wrinkles and skin laxity and tighten large pores

SINGAPORE, 1212-16 16 MAY MA AY A Y 2013


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H2O Plus is in the process of rebranding its current Oasis Men line, with updates to packaging as well as the introduction of line extensions

Men’s skincare



Men’s skincare has arrived, and these brands plan to make the most of it BY HIBAH NOOR

H2O Plus eyes emerging markets

L’Oréal’s Men Expert moves north

arine skincare specialist H2O Plus has been paying close attention to men’s skincare lately. Europe has always been the best market for this category, but, says Global Vice President of Marketing Tiffany Cavallaro, category growth in Europe is slow as the market is near saturation point. However, sales of men’s skincare products have recently begun to deliver double-digit increases in Asia and India as economic growth drives increases in disposable income. The category is also a prime mover in Brazil. “Men are joining women in the quest to maintain a healthy and youthful appearance,” Cavallaro says. “They are becoming more and more receptive to using products tailored to men that help to improve the look and feel of their skin. While it’s safe to say men’s focus on skincare will never outpace women, male customers are becoming more involved in skincare purchase decisions.” H2O Plus is refocusing and expanding its men’s skincare offerings as category sales continue to climb. The company is in the process of rebranding its current Oasis Men line, with updates to packaging as well as the introduction of line extensions including an Energizing Cleanser and the multi-tasking all-in-one Ultimate 5-in1 Facial Spray, which will launch in the second half of the year. Men’s shaving products are still category leaders in the broader market, Cavallaro says. For H2O Plus however, SKUs from the ‘before’ and ‘after’ shaving segment lead the way. “Our Oasis Men Energizing Face Scrub, which buffs away impurities and preps the skin for an ultra-smooth shave and the Post Shave Balm that instantly cools, comforts and hydrates freshly shaved skin are the collection’s top sellers,” she says. Also, H2O Plus’ top global bestseller, the oil-free Oasis Hydrating Treatment gel moisturizer, has always enjoyed an extremely strong following among male consumers. While men are paying more attention to their skin, they still have a long way to go, Cavallaro says. To ease them further into the category, H2O Plus has introduced key essentials that fit conveniently into a man’s daily grooming habits. “As we grow the brand family we expect the male consumer to grow with us and eventually seek out more specialized products. Also, we are focusing on the development of multitasking products that are straightforward and convenient to use.” Duty free business remains strong, with GWP offers doing well in the Americas. However as demand for men’s products grows, the company will be refocusing its efforts, messaging and delivery to target male buyers. “We plan to launch more market exclusive sets which cater to our customers who look for a mix, with multiple quantities of our bestselling SKU’s,” Cavallaro says. “Also, in 2013 we plan to update our point-of-sale and gondolas at duty free locations worldwide to reflect our recent rebranded image.”

For L’Oréal Travel Retail Americas Consumer Division, the Men Expert by L’Oréal Paris men’s skincare range has become the fastest growing segment within the skincare category, with a 20% increase in volume in 2012 over 2011, says Division Manager Sebastien Levi. It accounted for 19% of the brand’s entire skincare category in 2011, and jumped to 25% last year, thanks in large part to a strategy of targeting multiple age groups. Men Expert was launched into duty free in 2005 after a successful debut in European local markets proved that male consumers were interested. “As 65% of passengers are men, it was really important for us to target the male customers,” Levi says. “To ‘increase shop penetration and generate additional sales,’ which is the mission of L’Oreal Paris in travel retail, really applies for Men Expert because it is the most affordable men’s brand in travel retail, it attracts new customers to the category.” That interest is reinforced by the range’s packaging design, impactful communication and the strong brand positioning. Last year L’Oréal Travel Retail Americas expanded Men Expert into North American travel retail with Duty Free Americas, building on a well developed base in Central and South America. The range launched at airports in Miami, Atlanta and New York, was supported by a standalone tower dedicated to the brand. The result was that 2012 growth in North America was 60% over 2011 figures.




Men Expert gift-withpurchase promotion held at Bernabel-operated ferry stores in November 2012

Biotherm strengthens its market leadership through visual differentiation of Biotherm Homme with impactful product merchandising improving the shopping experience

Biotherm ups the pace

Limited edition Hydra Energetic Poker set displayed at Aer Rianta-operated store in Montreal airport, end of last year

This year’s main launch will be Vitalift Force Serum, the first revitalizing serum for men. “The expertise of L’Oréal Paris in anti-aging products and especially in serums—with launches of three different serums for L’Oréal Paris in 2012—was very useful to create this technologic and innovating product,” Levi says. “Thanks to its very concentrated and powerful formula, this serum starts acting in only one minute. It provides an immediate lifting effect and reduces the appearance of wrinkles. It also contains very powerful actives that have a deep fortifying action.” The top three bestsellers in the men’s skincare category for L’Oréal Paris are the Hydra Energetic Ice Cool Eye Roll-On—which became a bestseller very quickly as tired-looking eyes are a concern for men of all ages—the anti-aging moisturizer Vitalift and the range of ultra-efficient anti-perspirants launched in 2010. Since it was launched, Men Expert has been strongly differentiated from its women’s counterparts through bold colored packaging, light and fresh formulas and masculine scents, and brand positioning that targets concerns of male travelers such as jet lag, long flights, short nights and tired-looking skin. Levi also cites the high profile and credibility generated by brand spokesmen such as Patrick Dempsey, Gerard Butler and Hugh Laurie.

L’Oréal Luxe’s Biotherm is the world’s leading brand in men’s skincare and is also tops in the Americas travel retail market, says Marketing Manager Renata Holmes, citing Euromonitor and Generation Research 2011 results. It is also adding to that lead by growing faster than the market. “We focus on strengthening our market leadership through visual differentiation of Biotherm Homme versus female skincare, and impactful and simple product merchandising which improves the shopping experience for our customers,” Holmes says. Biotherm is also actively exploring new ways to recruit new consumers to the brand and turn non-users of male skincare into active category spenders. “The potential is there if you think about the profile of a typical traveler, and as market leader we want to grow the market.” Men are becoming better educated about the value of using skincare products specifically developed for their needs, Holmes says. Ten years ago the only skincare product most men used was an aftershave balm, but today the percentage who use skincare products has rapidly increased. “Instead of using their wife’s face creams, men are getting more educated and demanding,” Holmes says. “They’re looking for simple but efficient solutions: Biotherm Homme focuses on just that.” Today Biotherm Homme’s bestsellers are the men’s hydration line Aquapower, the High Recharge anti-fatigue face care products—especially the High Recharge Eye Shot—and the Force Supreme anti-aging Biotherm is line for mature consumers. launching the new Force The brand is currently launching the new Supreme Youth Force Supreme Youth Architect, Biotherm’s Architect, its first anti-aging serum first new anti-aging serum for men. The forfor men mula includes a combination of blue algae extract and pro-xylane, which Biotherm says helps to visibly rebuild youthful tone. Something new for Biotherm in the Americas travel retail market has been its focus on the concept of the “global shopper” and its strategy of marketing to consumers in their own languages. “Specifically in Canada, in airports which have Chinese passengers we even have Biotherm Homme visuals with actor and singer Kaneshiro Takeshi, who has been for the past couple of years the ambassador of the brand, and is a popular idol in Asia,” Holmes says. While the global men’s skincare market is growing at around 25% by L’Oréal’s own internal estimates, in travel retail the category growth is half that, which Holmes takes as a sign of great future potential. And growth is especially rapid in Asia. THE AMERICAS DUTY FREE & TRAVEL RETAILING


Crabtree & Evelyn The Somerset Meadow fragrance collection will launch in May

Crabtree & Evelyn courts North American travel retail BY HIBAH NOOR


ince its founding in 1972 by Cyrus Harvey, Crabtree & Evelyn has evolved from its roots as a specialist in fine soaps into a major global company known for original fragrances, premium toiletries and gourmet foods, as well as upscale gift items. The company now has offices in Europe, North America, Asia and Australia, and has maintained its signature focus on natural fruit, flower and plant essences. Crabtree & Evelyn’s attendance at this year’s IAADFS trade show will be only the second time the company has exhibited at the event, and the brand is still a relative newcomer to travel retail in the Americas. Crabtree & Evelyn will be highlighting its newest botanical collection called The company will be highlighting its two main Tarocco Orange, Eucalyptus & Sage body and hand care range at IAADFS launches of the year. Its newest botanical collection, Tarocco Orange, Eucalyptus & Sage body and hand care suite, features Tarocco Sicilian Red Orange, which is rich and shower gels and hydrating body lotions and creams in antioxidants and Vitamin C, along with eucalyptus and are also high on the list of favorites. sage. The collection joins the brand’s other botanical ranges, “Customers who buy Crabtree & Evelyn products are Citron, Honey and Coriander, Avocado, Oil and Basil, and looking for products that allow them to transform the ordiPomegranate, Argan and Grapeseed. nary rituals of daily life into extraordinary pleasurable expeIn May Crabtree & Evelyn will launch Somerset Meadow, riences,” the company states. “Our customer appreciates its newest fragrance collection. Described as a light green fruity- the benefit-rich ingredients, beautiful fragrances and fine floral fragrance, Somerset Meadow joins the established detail in packaging of our scented bath, body, Nantucket Briar and Summer Hill florals. The company home and gift collections.” says that one of the most unique products in the new collection is a Parfum Gel, which is a new product format for the brand, and one that is tailored for the traveling consumer. On the agenda for later in the year is an expansion of the hair care range and a new collection of hand washes. Crabtree & Evelyn’s best sellers include its award-winning Hand Therapy, a proprietary blend of macadamia nut oil, shea butter and hydrating ceramides and myrrh extract, presented in the trademark metal tube. The product is available in more than 15 scents including best-selling Heritage soaps are among Crabtree & Evelyn’s customer favorites fragrances La Source, Gardeners and Citron. Other customer picks include Crabtree & Crabtree & Evelyn’s best Evelyn’s broad range of bath and body products sellers include its awardwinning Hand Therapy in its original fragrances. The fine soaps, bath 130


Calibre Beauté

Quadrant’s new Calibre Beauté division takes on North America and beyond BY HIBAH NOOR n July of 2012 Toronto-based Quadrant Cosmetics Corp., which markets cosmetics, fragrances and toiletries, launched a new division, Calibre Beauté, to market select cosmetics, fragrances and toiletry brands. Quadrant is the exclusive domestic distributor for Procter & Gamble Fine Fragrances in Canada, along with other brands. “Calibre Beauté has been developed to secure emerging and select niche brands in the market, providing a focus for growth via a distinct, separate sales and marketing team to help strengthen its franchises through strong retail programs for the existing business as well as support exciting future initiatives,” Quadrant stated in the press release announcing the new division. Calibre Beauté added No Bleeding Lips Secret Lip Liner in October. In February the new lip liner was rolled out to North American retailers at the ECRM Cosmetics, Fragrance and Bath trade show in Las Vegas. No Bleeding Lips Secret Lip Liner has been developed to prevent lipstick and lip gloss from bleeding and feathering around the lips. The product creates an invisible edge around the lips and can be worn with any lip gloss and lipsticks of all colors. The liner is applied with a twist of the liner pen. Calibre Beauté says that the super-glide formula is “soft and creamy, ensuring even product deposit around the lips.” The dermatologically approved formula is wax-based, waterproof and lasts for five hours and more. Calibre Beauté also says that No Bleeding Lips is non-transferable, smudgeproof, and is manufactured without the use of preservatives, mineral oil, paraffin and animal-derived ingredients.


“Say goodbye to the days of trying to figure out which color lip liner best matches your favorite shade of lipstick or lip gloss,” Calibre Beauté stated in the press release announcing the new lip liner. “No Bleeding Lips Secret Lip Liner delivers a clear solution with a liner that glides on effortlessly with a simple twist of the liner pen. Just outline the lips and apply lipstick or lip gloss to achieve that perfect pout anywhere, anytime.” The product was first launched through Shoppers Drug Mart stores in Canada in October and is now rolling out throughout the US, at a suggested retail price of CAD$14.99. No Bleeding Lips is featured in a dedicated counter merchandiser that Calibre Beauté says is easy for a store to display and works as a ‘silent salesperson.’ The product can be easily recommended by sales staff and makes a logical add-on to the sale of any lipstick or lip gloss as it can be used with any shade. In addition to promoting the Calibre Beauté portfolio in the travel retail market, Calibre Beauté plans to make inroads with No Bleeding Lips. Frank Policastro has been taken on as an independent International Consultant for the new lip liner. A seasoned player in the duty free market, Policastro served as Vice President International of Five Star Fragrances, a manufacturer and distributor of international fragrances, for five years. He is based in New York.

Policastro says that his goal for Calibre Beauté as a supplier member of IAADFS for 2013 is to seek formal distribution within the Western Hemisphere and globally for No Bleeding Lips in the immediate future, and to establish the franchise as the foundation for new products Calibre Beauté is planning to introduce later this year. Policastro will be attending this year’s IAADFS though he says he will not have a booth at the event. “My focus is to market No Bleeding Lips in all export markets globally in local markets and travel retailing doors as an International Consultant for Calibre Beauté except in North America,” Policastro says. “Regarding distribution, I’m conducting ongoing conversations with retailers and distributors for Latin America who are interested in marketing this unique cosmetic product. No Bleeding Lips Secret Lip Liner is a necessary product for every woman’s lipstick needs, particularly when using the very fashionable bold lip shades.” For more information, email Frank Policastro at


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Supplier News

The Flight Case Pop-Up Store Concept was designed specifically for airport environments and can be arranged in a variety of permutations

Lacoste strengthens its leverage Currently celebrating its 80th anniversary, Lacoste is gearing up to make the most of its milestone year with a new collection and a new retail concept—the Lacoste Flight Case Pop-Up Store Concept. The Flight Case Pop-Up Store Concept is a toolbox of mobile furniture specifically designed for airport environments. The coordinated modular pieces come in a variety of sizes and shapes that can be arranged in a variety of permutations. The pieces enable retail-

ers to align in-store displays with retail environments and target shopper profiles. Like a mobile fashion store, the units accommodate both hanging and folded clothing, as well as accessories such as leather goods, eyewear, jewelry, watches and fragrances. The new concept was designed to enhance sales over Lacoste’s 224 points of sale in 55 countries. The wheeled ensemble can be transferred easily from one airport to another. Its adaptability makes it ideal for

cross-merchandising, provides the option for a pop-up store within a main store and allows for use at departure gate locations and on the concourse. “As a successful leisure brand and a symbol of elegant lifestyle, Lacoste has earned itself a legitimate place in the travel retail business and now intends to become a key player in the field through the development of its retail solutions,” says Catherine Bonelli, International Travel Retail Director.

ALFA brands presents its latest vice At this year's IAADFS, ALFA Brands will be exhibiting VICE Vodka Icewine, from Vineland Estates Winery (Booth 532). The winery recently appointed ALFA Brands as the North American travel retail exclusive agent for VICE Vodka Icewine, the uniquely Canadian product that retains the apricot, peach and honey notes of Vidal Icewine while being less sweet than traditional icewines due to the vodka fortification process. With VICE performing well, making inroads into new channels and expanding its customer base, Vineland Estates felt ALFA Brands to be the ideal representative. “ALFA Brands will be a great partner as we continue to grow our business into new accounts and channels within the North American travel retail space” says Allan Schmidt, President of Vineland Estates. “Our VICE business has evolved to the point where it can really benefit from joining the ALFA Brands team and we are very excited about the future in this channel.” “We are enthusiastic and honored by this partnership, as VICE Vodka Icewine represents a truly authentic and upscale offering to our consumers, well suited to travel retail and a natural addi-



tion to our brands portfolio,” says Franco Gabriele, President of ALFA Brands. “We are committed to build on the progress that VICE has made in the marketplace, leveraging on our brand building skills to expand the footprint of this very unique product.” In addition to partnering with Vineland Estates, ALFA Brands has also been appointed by Sencha Naturals as its brand ambassador to launch Sencha Green Tea Mints in travel retail. The entire line of mints is all-natural, vegan, kosher and gluten/sugar/caffeine-free. The company has taken conscious strides to be more eco-friendly by manufacturing the mints in its solar powered facility in Valencia and using recyclable and biodegradable packaging. “There is no customer better suited for the powerful, immune-boosting effects of our mints than those traveling, whether by plane, boat or automobile,” says Sencha Naturals founder David Kerdoon. Made by Vineland Estates Winery, VICE Vodka Icewine retains the apricot, peach and honey notes of Vidal Icewine while being less sweet than traditional icewines

Braun’s Satin Hair 7 SensoCare styler features built-in sensors that are capable of “reading” the hair 20 times per second to detect moisture levels

Braun revolutionizes personal care At this year’s IAADFS exhibition, Braun is set to launch novelties with revolutionary features that include the CoolTec shaver, Silk-épil SkinSpa and the Satin Hair 7 SensoCare styler. The aluminum cooling bar in Braun's CoolTec shaver head cools the skin during the shaving process, not after. The secret element is Braun’s innovative Thermo-Electric-Cooling technology (TEC). While most shavers allow warmth to build up in the head of the shaver, CoolTec features an aluminum cooling bar in the shaver head that cools down the skin during the shaving process, directing heat away from the skin. Braun’s Silk-épil SkinSpa combines short hair removal in and out of water with a unique skin-refining attachment that eliminates dry skin cells to activate the skin’s natural regeneration process. Silk-épil 7 SkinSpa combines two beauty treatments: the epilator removes unwanted hair

while the exfoliation brush removes dead skin cells for natural smoothness. More than 3,000 micro-vibrations per minute exfoliate the skin four times more effectively than a manual treatment alone and 10,000 fine bristles sweep away dead skin cells, stimulating the regeneration of the skin surface. The ergonomic angle enables convenient usage on all body areas. Braun’s Satin Hair 7 SensoCare styler features built-in sensors that are capable of “reading” the hair 20 times per second to detect moisture levels, automatically adapting to the ideal temperature for smooth, longer-lasting styles. The styler’s NanoGlide ceramic plates provide gliding three times smoother than conventional plates. The advanced display guidance provides feedback on the styling process for better styling results.

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Contact us for our Innovative Travel Retail Solutions David Ferreira

Supplier News

CBM Inc./Meade Ray International bags comfort and style

Made with Nylon, Club Rochelier’s “Kaitlyn” handbag features the popular cross body style with easy access front pockets and an adjustable shoulder strap

Leather goods company CBM Inc. /Meade Ray International returns to IAADFS this year with two new launches in store (booth #1710 in the Palms Salon). The company recently expanded into fashion accessories, most notably handbags, belts, cold weather accessories and footwear from recognized brands Roots and Club Rochelier. The wallet from Roots’ Brittania collection offers several card CBM Inc./Meade Ray International will be exhibiting slots, gusset pockets and a removable checkbook holder Club Rochelier’s newest handbag collection “Kaitlyn.” Made with nylon, the collection is ideal for warmer weather and features spring hues. The popular cross-body style features easy access front pockets and an adjustable shoulder strap for added comfort. Also on display will be Root’s new spring 2013 collection, “Brittania.” Designed in the season’s colors, the wallet from the collection offers several card slots, gusset pockets and a removable checkbook holder.

American vintage-inspired women’s knitwear brand is making its duty free debut at this year’s IAADFS show (booth 2407). Established in 2007 by childhood friends Emily Faulstich and Kimberley Gordon along with CEO Jimmy Sommers, Los Angeles-based Wildfox has become known for its soft, comfortable fabrics, unique designs and versatile product offering, which ranges from tops, bottoms and dresses to scarves and denim as well as a series of collections such as Wildfox Jewelry, Wildfox Sun and Wildfox Kids. Already available domestically at high end department stores such as Saks Fifth Avenue, Nordstrom and Neiman Marcus, and with distribution in over 30 countries worldwide, it seemed a natural progression for the brand to establish a presence in travel retail. “We are thrilled with the opportunity for retailers to experience the Wildfox concept and for travelers to gain access to our products in airport stores and airlines around the world," says Sommers. At IAADFS, Wildfox will be exhibiting 10 new styles in varying shapes and colors for Spring/Summer 2013 from its sunglass collection, Wildfox Sun. Designed and developed by eyewear designer Benjamin Montoya of Benjamin Eyewear, the frames are handmade using a mixture of both acetate and metal materials. Primary lens materials include CR39 optical grade lenses that come with either a solid sun or gradient lens tint and feature 100% UVA and UVB protection. The “Deluxe” series features advanced optical grade mirror or multicolored mirror coated lenses that offer increased glare reduction, while still providing 100% UVA and UVB protection. Of the new styles are “Winona,” with rounded lenses and a thin, metal frame; “Twiggy,” a modern take on a retro design with round, oversized lenses accompanied by thick, circular frames; “The Kitten,” an oversized version of the retro-inspired cat eye sunglasses with an exaggerated rim; and “Clubfox,” a custom, slightly oversized version of the classic wayfarer frame with sculpting along the top of the glasses which lessens along the bottom of the frame. Wildfox is also exhibiting its Wildfox Basics category for Fall 2013, which is centered around a sampling of staple loungewear pieces offered in seasonal colors of the brand’s signature, soft Vintage Varsity fabric—what the brand has become known for. Tops include both crew and v-neck jumpers and hooded track suit jackets. “The Kitten” from Wildfox Couture’s Wildfox Sun collection is an oversized version of the retro-inspired cat eye sunglasses with an exaggerated rim



Cielo "Metallic Party" watches featuring vibrant pink, silver and blue

Lambretta hits the high seas After a successful trunk show on a major cruise line in the Caribbean in 2012, Lambretta Watches plans to roll out permanently on several cruise lines this year. "We are also actively launching our well received fashion concept Cielo in airport stores in North, Central and South America," says Jonas Dahlgren, CEO, Capella Industries. So far, this year is looking promising as sales in duty free have increased by 34%. "We are inspired by these prospering results and are looking forward to continue working hard and flourishing in expanding our brand throughout the year," says Dahlgren. According to the Generation Research Sky Shopping Report, during the third and fourth quarter of 2012 Cielo was the most listed watch onboard airlines around the world. To supplement Cielo, Lambretta plans to launch three "Metallic Party" watches as well as the Cielo "Pin-Up" line featuring retro-inspired dots and stripes. Lambretta is also launching two new brands this year—the famous Swedish Swimwear brand Panos Emporio, featuring 10 ATM, and its own brand "Velox." The first collection from Velox is called XC1 Creative. Dahlgren anticipates new color trends for spring, specifically solid dark colors such as Monaco blue and emerald green. "Patterns are strong now in fashion as well, hence why we have picked up some interesting pattern combinations for 2013."


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Ice-Watch’s DNA consists of its color offerings, which totals 10 different hues

Industry & Retailer News

Watch News Known for its colorful watches, Ice-Watch recently launched special packaging exclusively for inflight. Specifically designed to fit inflight trolleys, the packaging features detailed information about each model. "The fact that that we have been able to design a smaller size has made a huge impact," says Marketing and Communications Manager Nathalie Deroanne. "It provides an additional incentive to buy because for the collectors it's something you can't find in the domestic markets." As the brand continues to increase its global presence, the demand for more models listed onboard has increased. "At the beginning we only proposed a few colors from our Ice-Forever collection, but in response to the demand we've extended our offer to include more colors and other models as well," says Deroanne. In terms of the company, Ice Watch recently decided to reinforce its commercial team for

travel retail. Alongside Thierry De Poerck, Managing Director, the new team includes: Frederik Westelinck, Travel Retail for Europe, America and Middle East, and Kevin Ng, APAC Manager. "These three people are really the key people who will be expanding the business," says Deroanne. "Our goal is to put a lot of attention towards travel retail." Currently onboard a total of 67 airlines, IceWatch recently signed two contracts in Asia Pacific with Cathay Pacific and Air Tahiti Nui, and opened a new store in Terminal 2 at Changi Airport. At the end of 2012, the brand's sales reached €400 million (US$522 million) and it reported stores in 110 countries. Although the brand's best region is Europe, it plans to approach the US, Asia and the Middle East. "We will be present this year at two shows in Asia—ARC and TFWA Asia Pacific in Singapore,” says Deroanne. “This is the best way for us to expose the brand globally and in Asia as well.”

Geneva Watch Group

makes time for change Geneva Watch Group's popularity is soaring thanks to its two recent launches—Kenneth Cole New York and its performance lifestyle brand Freestyle. "The popularity of our brands ties back to the price to value relationship trend we are seeing in the travel retail market, as well as a desire by customers for a stylish statement piece," says President of Global Sales Gary Bollinger. The Freestyle brand has done very well thanks to an increase in impulse purchases and consumer-friendly price points. New to this season's Freestyle collection is the Kampus XL timepiece, an oversized digital version of the original Kampus. With sales currently strong and ahead of last year, the brand hopes to increase its presence in Latin America. As for trends, Bollinger anticipates rose gold will continue to dominate along with vibrant, bold colors. In keeping with these trends, Geneva's Kenneth Cole New York 138

brand's automatic watch features rose gold stainless steel straps and its Freestyle brand's new Candy collection features the Shark Classic Candy watch offered in vibrant colors. "We’ve also introduced pops of color to the Shark Classic and Killer Shark collection—five new colors in the Killer Shark for spring and four new colors in the fun Candy collection," says Bollinger. In partnership with Kenneth Cole New York, Geneva Watch Group has released the limited edition "Powered by You" watch, the latest addition to its renowned automatic watch collection. The watch is designed to inspire individuals to create change in their global community with a portion of the proceeds benefitting amfAR, the Foundation for AIDS research.


New for spring is the Killer Shark model from Geneva Watch Group’s new performance lifestyle brand Freestyle

A portion of the proceeds from the Kenneth Cole New York Limited Edition Powered by You watch will benefit amfAR, the Foundation for AIDS Research

Creating New Paths 12th - 15th June


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Sunglass Report

Technology at your temples

For Spring/Summer 2013, Tom Ford presents striking frames that are evolutions of his best-selling eyewear designs

The sunglass category becomes more technologically advanced this season, with the increased interest in polarization among other trends BY MELISSA SILVA


lthough style remains foremost on the priority list for sunglasses this season, functionality and technology are moving in to claim the top position. Polarization, the technology used to reflect shine, is becoming more and more popular across the category. Designed to enhance the quality of vision, polarized sunglasses selectively block out glare rather than dim the field of vision, making them ideal for athletic and regular wear.

Light years ahead Luxury eyewear distributor Marcolin has taken note of this technological evolution in the category and has focused on offering more polarized designs this year. "More of our sunglasses in our top fashion collections will be polarized," says Marco A. Lares, Travel Retail/Duty Free Sales Manager. "Polarized sunglasses can eliminate reflected light off of water, snow and similar surfaces because of its polarization. At the same time, optimum quality sunglasses such as the ones we manufacture, can eliminate the ultraviolet part of the spectrum, cut down on direct light to the point where it is comfortable and eliminate or decrease reflected light." Marcolin's latest launch, the Polarized Sunglass collection from Timberland,

reflects this focus. The collection designed by Marcolin's Miami team will feature state-of-the-art technology including anti-reflective lens coating, Gripstick technology, polycarbonate lens material, environmentally friendly green plastic and TR90, a thermoplastic polyamide which is up to 20% lighter than other plastics. The collection features two classes of models: polarized and polarized-plus. Distributors Marchon has also noticed the increasing interest in innovation with eyewear polarization. "Consumers want quality and value for the price as well as differentiation and individuality," says Erwan Le Guennec, International Travel Retail Director. "They are also technology-driven and looking for features such as polarized lenses." Known for its PolarizedPlus2 lens technology, Maui Jim's most recent launches meet the current demand for polarized innovation. "Hot Sands" the new model from Maui Jim's sport sunglass collection, which will be on display at IAADFS (booth 1503), offers glare protection and color enhancement thanks to PolarizedPlus2 lens technology. The lightweight, durable frame and non-slip temples and nose-pads makes Hot Sands ideal for high-performance and active lifestyles. Equally as important as the polarization is the manufacturing approach. For Marcolin, there are between 50 to 90 manufacturing stages for each pair of sunglasses. "Marcolin sunglasses are the result of a manufacturing approach that combines a passion for handcrafted quality with state-of-the-art technological procedures," says Lares. "Still today, the majority of our sunglasses are predominantly manufactured in the Italian factories." Production is subdivided into specialist areas in accordance with the three materials used: metal/titanium, acetate and injected acetate.

Targeting trends Before manufacturing can begin, it's crucial 140


This model from Swarovski Couture features an oversized round shape with wide temples in gradient blueish grey/ochra/light grey with gradient grey/ochre lenses

Chloe’s Caspia line features a modern take on the cat’s eye style with four small metallic details, seen here in peach

Salvatore Ferragamo’s refined aviator frames feature Italiancraftsmanship, protective gradient lenses and comfort-fit nose pads

to understand what consumers are looking for, which Marchon achieves by performing targeted research. "By constantly collecting market input and supplying the demands of the consumer, we continue to meet/exceed their expectations," says Le Guennec. As to what consumers are drawn to this season, Lares names vintage styling, luxe details, blocked-out frames, leather detailing and metal accents as just some of the trends this year. "For Marcolin, sunglasses are all about updated looks this year, such as the new Cavalli styles, vintage styling, like the ones in the Tom Ford collection and luxe details, as in the adornments placed in the Swarovski collection" says Lares. Tom Ford’s collection is particularly notable for its vintage flair. The Grant design, with a rounded mask-like look, takes inspiration from 1960s’ ski goggles, while the aptly named Bardot model boasts a distinctive bat-wing frame — a look that is subtly presented in the Lana model as well. Three of the frames deliver a new twist on Tom Ford’s most popular women’s styles, including Jade, which revisits the designer’s signature criss-cross front in a lightweight frame with metal rims. The collection boldly plays with color.

Sunglass Report

The injected cat-eye Anastasia comes in six shades — including orange, violet and bluette — while the vintage-inspired Christophe rounds things off with nine shades. An additional big-hit trend this year is the updated aviator, which makes an appearance in collections from Tom Ford, Tod’s and Montblanc. At Tom Ford, these newer aviator designs include the Robbie model with its striking combination of injected rims, metal temples and a unique metal bridge, as well as the metal front Tate, which delivers a sexy edge. The Callum and the Lennon present masculine shapes with a more vintage feel. And then there are the round sunglasses, whether in metal or plastic, that are making their mark this season. "Black, as well as classic and fresh takes on tortoise are key for this style, while keyhole bridges and browline frames add sophisticated, retro flair," says Lares in reference to Marcolin’s round sunglass models. Speaking of a fresh take on tortoise frames, Maui Jim's "Kanani" is available in three color ways, two of which are modern approaches to the design: Tortoise/Peacock blue with HCL bronze and grey Tortoise with Maui rose lenses.

Kanani features Maui Jim's proprietary single gradient tint, MauiGradient to combat overhead glare as well as PolarizedPlus2 lens technology and is fitted with ST (SuperThin) Glass lenses, which are 20% thinner and lighter than standard laminated glass lenses. Maui Jim's "North Point" is another model that demonstrates the current aviator trend. These aviator-inspired sunglasses offers the PolarizedPlus2 lens technology, protecting against glare to give a clear, undistorted view. North Point is available in Matte Titanium with Neutral Grey lenses or Matte Chocolate with HCL Bronze. The frames are Monel metal and the lenses are ST Glass so they are lightweight for comfortable wear.

Showstoppers Adding to its success with Tom Ford, Cavalli, Diesel, Swarovski and Montblanc, at this year's IAADFS show Marcolin will be launching the Balenciaga sunglass collection, which Lares expects will deliver positive results dur-

Luxottica reports record sales in 2012,

and is on track for more of the same in 2013 For Luxottica Group S.p.A., 2012 was another year for the record books. Net sales were reported to be the highest ever achieved in the Group’s history, exceeding €7 billion (US$9.1 billion). This represents an impressive +7.5% increase over 2011, with Luxottica’s retail division clocking in €4.3 million in sales and its wholesale division €2.7 million (US$3.5 million). “2012 was another record year for Luxottica,” noted Andrea Guerra, the company’s Chief Executive Officer. “The rate of growth witnessed throughout the year, with excellent performance, rewarded the Group’s commitment to customers and consumers.” A strong focus on a loyal customer base, combined with the successful execution of key initiatives, is what Guerra credits for the impressive 2012 sales performance. While the increase was reflected across all geographic regions in which the Group operates, emerging countries boasted the largest increase, experiencing a 26% rise in net sales. In comparison, total net sales in North America rose by 6%, and in Europe by 4% – combined, this is less than half that shown by the Group’s business in developing economies. Fortunately for Luxottica, things are looking equally promising for the year ahead, and the company is looking forward to yet more impressive growth. “Initial results for 2013, and for North America in particular, continue to present strong growth prospects,” said Guerra. “We believe that some of our businesses could expand by more than 10% in 2013.” Specifically, said Guerra, the company is continuing to keep an eye on its business in emerging world markets, where opportunities are rife. “One need only look to the emerging countries and the extraordinary success achieved in these markets in recent years,” he pointed out. The Luxottica CEO also noted that the company has a number of newly developed sales channels, such as department stores, e-commerce, and, most importantly, travel retail. Key growth drivers, he said, are the Group’s well-known Ray-Ban and Oakley brands, as well as the premium Giorgio Armani brand – newly added to the company’s luxury segment portfolio. Also important to the Group’s success has been the international expansion of its Sunglass Hut chain of eyewear shops. “We are already totally committed to ensuring that our 2013 plans are implemented properly in all countries and across all our business lines,” summed up Guerra. “We have excellent growth opportunities since we operate in a young industry and have the chance to increase the overall penetration of our products in the international markets.”



Maui Jim’s, Kanani features MauiGradient to combat overhead glare, and PolarizedPlus2 lens technology seen here in tortoise/Peacock blue with HCL bronze lenses

Aviator-inspired North Point by Maui Jim features PolarizedPlus2 lens technology, Monel metal frames and SuperThin glass, seen here in matte chocolate with HCL bronze lenses Maui Jim’s Hot Sands features non-slip temples and nose-pads, and polycarbonate lenses coated with Clearshell making them scratch-resistant, seen here in “Rootbeer” with HCL bronze lenses

ing the last quarter of the year. Also this year, Marcolin aims to strengthen its market position, expansion, implementation of new sales and its marketing strategies. Due to the recent acquisition of Marcolin by the PAI Partners, the company expects to increase its presence on a global basis in duty free. "PAI already owns other companies already operating in the travel retail industry such as the Nuance Group, a leading player in the global travel retail and duty-free industry with over 90% of sales coming from the airport retail channel," says Lares. PAI's investment in Marcolin is aimed at expanding the company’s international footprint and longterm contracts with major designer brands. With 2012 bringing the company success, this year Marcolin will focus on the regions that promise the most growth—the Americas, specifically the northern border with Canada and the southern border between the US and Mexico. Speaking of 2012, distributors Marchon experienced a healthy increase in sales since last year thanks to a strong performance of its existing brand portfolio and the introduction of new brands. Over the past 12 months, Marchon launched Chloe, Valentino, Salvatore Ferragamo, Lacoste and Dragon, providing the company with a good launch pad for 2013. With technology dominating the category, it's obvious these companies have a clear view of how to incorporate innovation without compromising quality and design.

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BT Fashions

For this season’s Wonderlab trend, Bijoux Terner offers sleek and shiny silver jewelry

BT Fashions looks forward to steady growth in 2013, building on continued success of the flagship Bijoux Terner brand and its fresh new AdiXion brand BY



t has been a busy year for BT Fashions, but unsurprisingly, the trailblazing company is showing no signs of slowing down in 2013. “We are expecting an exciting year,” says BT Fashions’ President and CEO Gabriel Bottazzi. “We are enjoying continued success of our core Bijoux Terner concept, and we have several growth initiatives that we are excited to roll out and new channels we are expanding into.” It won’t be easy for the company to top the last couple of years in terms of new endeavors. Last year, this pioneer of the US$10 one-price concept unveiled a new corporate identity – BT Fashions. Even more significantly, it rolled out an entirely new multi-brand, multi-price concept – AdiXion. The first AdiXion boutique opened its doors at Miami International Airport in the summer of 2011, with more openings following throughout 2012. This included a 139-square-meter store in Las Vegas that combines the two brands – AdiXion and the single-price Bijoux Terner brand – in a side-by-side layout. The higher-quality, premium AdiXion accessories are priced as low as US$16 and, depending on the product and design, can go up to US$50 or more. “With styles both bold and classic, AdiXion is perfect for discerning fashionistas,” notes Lina Henao, Chief Creative Officer. Adds Bottazzi: “AdiXion offers consumers quality, statement pieces at reasonable prices and gives our partners the opportunity to achieve higher gross margins.” The move to a multi-price, multi-brand concept represents an evolution for a company that built its business on a one-price model. As a result, the introduction of AdiXion caused quite a buzz in the travel retail trade. For BT Fashions, it provides the company with a new competitive edge in the rough and tumble world of duty free. Building upon its early success as a store concept, “AdiXion is growing to a fully multi-priced premium accessory brand,” says Bottazzi. “We are building on the core competencies that have made Bijoux Terner a dominant success story in travel retail for 40 years and continue to propel its growth, leveraging all the great partnerships and relationships we’ve built along the way to grow this great new brand.”

Looking ahead What‘s in store this year for Bijoux Terner? Oscar Guzman, the company’s Brand & Marketing Manager, is guarding the details tightly, but says the company is refining its architecture as well as its product portfolio. It is hoping to reveal more at the IAADFS Duty Free Show in Orlando. “We are excited, not just to show our new AdiXion brand, but to unveil some great new updates of our flagship brand – Bijoux Terner,” Guzman says. Visitors to the company’s booth 432 can expect to see an exciting new look for the travel retail mainstay with nearly 1,000 locations worldwide. “The travel retail industry has been the cornerstone of our business over the past four decades and we look forward to continued growth and success with our partners in 2013.” 144


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The SoBe-Tech collection continues the rose gold trend with its rose gold stainless steel and carbon fiber watch with black stainless steel bracelet

Glam Rock



Armed with a new strategy, Glam Rock is increasing its exposure and gaining interest across the board atch company Glam Rock has enough market knowledge to know when to change its sales strategy. Instead of working exclusively with one major chain, the brand recently decided to spread its distribution to smaller chain groups and independent retailers. As a result, sales for the company have increased by 30%. Exhibiting at both the TFWA Asia Pacific trade show in Singapore and the TFWA World Exhibition in Cannes for the first time last year played a large part in the company's sales increase. "The number of contacts we made was extremely important and now starting 2013 we are beginning to see results from those contacts gained," says Isabelle Maujean, President. "We experienced growing attention from countries located in Northern Africa including Egypt, Morocco and Tunisia. Asia too has showed great interest towards the brand." As for retailer-buying trends, Maujean believes price is the main driver of sales. "Strong advertising campaigns and smart promotions are also becoming more and more important elements," she adds. Maujean feels smaller sizes will be making a comeback this season as well as yellow gold, and diamonds or Swarovski crystal elements. "Requests for yellow gold are higher in the US than in the Middle East and Asia," she says. "Diamonds or Swarovski are the best window items to lure in potential consumers depending on the product being offered." Glam Rock's latest launch is the Miami Beach Art Deco collection. The line features designs inspired by the Art Deco architecture of Miami Beach and offers 10 different case shape and size variations, including round,


square, barrel and rectangular. "It offers a great quality product with a retail price starting at US$175," says Maujean. "This collection has received major attention in the US market where we are present in major department stores, as well as the Caribbean and cruise markets." The collection includes interchangeable pieces including yellow and rose gold bracelets, silicone straps, mesh and expandable bracelets, beaded and pearl-embellished threads, and croc-embossed leather. The straps can be mixed and matched to transition the watches into accessories. The candy-colored dials were designed to resemble the iconic Miami buildings that line Collins Avenue. “We have always been flirting with the idea of creating watches that are true fashion accessories,” says Founder Enrico Margaritelli. “Miami Beach Art Deco’s retro aesthetic expands the concept of mixing and matching within the world of watches for an everchanging, always sophisticated look. This new smaller, feminine and vintage-inspired collection makes a huge statement in the fashion timepiece category.” Glam Rock has also launched SoBe-Tech, a men’s collection, following its successful SoBe collection. Boasting the same interchangeable qualities seen with the SoBe collection, SoBe-Tech draws inspiration from classic race cars, reinterpreting the style with 50mm dials and tachymeter bezel with carbon-fiber details. The range pairs dashboard-inspired faces with oversized subdials and colored indexes with interchangeable straps in sporty, perforated leather and textured silicon that resemble tire

Glam Rock’s stainless steel and carbon fiber model from the SoBe-Tech collection, featuring black silicon pattern strap

treads. Because the watch faces have removable case covers, the style of the watch can be easily altered. Each SoBe-Tech watch begins with three stainless steel covers with varying finishes. Additional bezel covers and straps can be purchased starting from US$65. SoBe-Tech was a result of Margaritelli’s desire to create a timepiece for men that combined luxury and function. “The possibility of personalizing a watch as a man would his favorite car is very appealing,” he says. “SoBe-Tech offers men options in a quick and practical way, which is something they can work into their wardrobes and schedules.” Although relatively new to travel retail, Glam Rock feels Asia is where the brand will make its strongest impact.

The Miami Beach Art Deco collection features 10 different case shape and size variations as well as interchangeable bracelets and candy-colored dials



Thomas Sabo


Made from 925 Sterling silver and imitation turquoise, this bracelet from Sterling Silver’s Special Edition line can be worn with various pendant combinations

silver lining

This large Arabesque disc with yellow gold plating embellished with white synthetic zirconia stones is one of the main pieces from Thomas Sabo’s Sterling Silver’s Special Edition line

With a versatile product offering, Thomas Sabo moves beyond jewelry




erman fashion jewelry company Thomas Sabo got its start in 1984 when jewelry enthusiast Thomas Sabo set up his own jewelry company in the town of Lauf an der Pegnitz in Bavaria. Over the years, the company has evolved into more than just a jewelry brand. “We're still a jewelry company, but we’re developing into more of a fashion company, a lifestyle company,” says Travel Retail Director Jordi Valls. The company offers an array of products from jewelry—including its popular charms—to watches and a beauty line, which boasts several fragrances. “When we launched our beauty component in 2010 it was very successful,” says Valls. “So we're always looking for new products, new chances, and I think we're moving towards achieving that.” New for Spring/Summer 2013 is a design signature for the Sterling Silver collection, which includes 18-karat gold plated items. The new signature features sterling silver jewelry combined with 18-karat rose gold and 18karat yellow gold. “Glam and Soul” is the women’s collection, which features warm colored elements incorporated into gold-plated jewelry pieces. “Rebel at Heart” is the unisex collection and features blackened silver. The “tricolor” element seen with the Sterling Silver collection has been applied to the Charm Club collection, also new for Spring/Summer 2013. Charm Club offers 73 new charms. Another range that features gold is the Sweet Diamonds collection, which includes detailed jewelry with delicate diamonds and a hint of gold. “We noticed a growing demand for gold,” says Valls. “We recognized this some time ago, so we introduced some plated gold into our Sweet Diamonds collection, combining silver with gold and diamonds. This trend represents our forthcoming direction.”


Price points for the collection range from €60 to €100 (US$80-$134), positioning it as affordable luxury. “It’s doing very well for us,” Valls says. In terms of beauty, Thomas Sabo’s latest fragrances include its first scent for men called Rebel at Heart, a spicy scent that mirrors the Rebel at Heart jewelry collection, and Glam and Soul for women, described as an elegant scent with hints of lychee. Both fragrances were created with the brand’s Sterling Silver jewelry collection in mind. “The fragrances launched only in September 2012, but first results are already very promising,” says Director Beauty Division Janin Schmelzer. In light of its successful Charm Club, Thomas Sabo also launched its aptly titled fragrance Charm Rose, a culmination of all Charm Club collections in a bottle. Said to be a scent about “luck, fashion, love and passion,” the heart resembles a bouquet of roses, hence the name. So far there hasn’t been anything new in terms of fragrances from the company in 2013, but Schmelzer says there might be a surprise at some point this year. After a successful 2012 that featured strong sales for Autumn/Winter 2012 collection, Thomas Sabo has set the stage for an equally successful 2013. “While our competitors are decreasing we are growing worldwide,” says Valls. The company will be working with new materials and new product presentation for its charms, and is optimistic about its Sterling Silver collection. Thomas Sabo’s strongest region is currently Europe, specifically Germany, Austria and Switzerland. The company recently entered Japan opening two shop-in-shops. “We have a strong partner in Japan,” says Valls. “We're growing very fast in Hong Kong and


An alternative to the yellow gold version, this Arabesque pendant made from cutout mother-of-pearl features 925 Sterling silver heart and oval turquoise pendants

now we're entering the Chinese market as well, so this is our next step to make our presence stronger.” Regarding the Middle East, the company has franchise shops in Kuwait, Lebanon and Dubai and is currently receiving a number of inquiries from Saudi Arabia. “We're always interested in entering new markets and developing the brand with strong partners,” says Valls. A few of the brand’s bestsellers are charms, some of which have been selling well for several years. One of the top selling charms is the Eiffel Tower because, as Valls says, everyone loves to travel. Another top seller is Thomas Sabo’s signature charm, the apple and snake. “We have a very good gift with purchase promotion across our home markets and exports, depending on the market,” says Valls. “We sell bracelets and consumers get a charm for free. The same with the sterling silver segment—with the purchase of a nice bracelet you get a pendant for free.” Thomas Sabo hasn’t yet engaged in advertising in airports, but the brand is present on almost every major airline.

Q&A: Buckley London Jewellery

to further expand into US airports and other border/downtown doors in spring.

Buckley London Jewellery takes on the Americas, with help on the ground from distributor International Brand Builders


t has been less than one year since Buckley London Jewellery teamed up with International Brand Builders (IBB) to help expand its distribution into the Americas’ market. IBB is acting as the brand’s exclusive agent in the region, and with Buckley’s support will be showcasing the brand’s in-store equipment and 2013 collections at the upcoming IAADFS show (Stand 2317). The Americas Duty Free recently sat down with Katherine Sleipnes, owner of IBB, and Neil Thompson, Sales and Marketing Director for Buckley London Jewellery, to check on the progress of this new partnership. Americas Duty Free: Buckley London has only recently entered into the Americas’ market and has made some great strides. How do you see this compared to the rest of the world? Even though Buckley is not yet a well-known brand in the Americas, it has a proven track record and strong sell-through in the markets where it is already established. This has also been the case in the recently opened doors in the Americas where the brand combines beautiful design, great quality and competitive pricing. The brand is also presented in high quality packaging and is displayed on a range of exclusive self-select merchandisers. It is a perfect addition to both travel retail (DF & DP) and domestic doors in the Americas. Since fall 2012 we have opened 10 new ground doors in the region and expanded our airline listings, with our initial focus in Caribbean, Mexico, and Central America. We have plans


ADF: You have impressive sell-through with important retailers. Do you expect this trend to continue? We have indeed seen strong sell-through in key doors that proves our right to play in this market. We are selling up to 500 pieces per month on a wellstocked stand. When you consider that the stand only takes up 0.25 square meters of floor space, this is an impressive return per square foot. This is consistent with global results, particularly wherever we have retailer support. Our standard four-sided merchandisers hold up to 350 pieces of jewelry, which guarantees the retailers great ROI for the space allocation. Retailers who have tried Buckley are never sorry. So yes, the trend should continue, as it is doing across the globe. ADF: You have a stunning new collection for 2013. What is your focus and how often do you update your collections? We focus on offering a variety of collections, from silver/rhodium-plated classics to designer fashion. We use the highest quality materials, including Swarovski crystals, real 18k gold plate and premium grade cubic zirconia. And we underwrite our quality with a one-year international warranty. This spring, Buckley is launching a new vintage collection, but will maintain its Russian collection, which has proven one of the best-selling collections globally, winning several awards for best product. We are also launching a new ring collection that comes with a compact ring stand, where all rings are priced at US$35. The stand has an innovative feature that allows customers to try the rings on our lit tester before grabbing one in their size. Our goal is to entice the consumer to purchase multiple items for themselves or as gifts. With retail pricing averaging at just US$39, it is normal to see multiple purchases. This helps increase the basket size and drive sales in the jewelry category. And we keep the newness flowing by phasing in new collections two times per year.


Buckley’s Royal Celebration collection

ADF: Why should travel retailers choose Buckley London over other brands? It’s important to understand that in addition to the Buckley London brand, the company also supplies its own label jewelry with a retail value of over US$60 million to a host of premium high street retailers. We feel this gives the company the opportunity to 'road test' designs before hand picking the best to be included in the range. All of our jewelry is designed in London and the majority of our designs are originals. ADF: How does Buckley do onboard? Buckley Jewellery is now sold on 120 airlines worldwide and on 15 major US carriers, with our designs typically ranking number one in jewelry. We have more than 300 skus listed in flight, with many airlines carrying fullpage advertising... Our Russian collection has been particularly successful, winning several major international awards for 'best inflight product.'

The Russian collection has won several major international awards for 'best inflight product'

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Cross as a brand within the writing Good guidance instrument category, other oper- Price and consumer satisfaction aside, in order ators see it as a brand itself,” to further attract—and keep—consumers, says Ferreira. “Because our offer- Cross relies on several sources to guide the ing is diversified with our floor brand through upcoming trends to ensure it fixture, presenting writing has all of the right colors and finishes at the instruments is not enough to right time and season. This is especially imporgenerate the highest sales per tant with its fashion-oriented items, Ferreira square foot,” he explains. “By says. “We also have to launch breakthrough offering very different products products when we know they answer specific within one fixture, it allows needs in the travel retail environment,” he retailers to generate incremen- says. “The recent launch of the multifunctal sales from three non-com- tion Tech3+ with Stylus is a perfect example.” peting product categories and Taking consumer satisfaction one step Cross’ aspheric at the same time reduce the further, in order to ensure the consumer has reading glasses represent the floor space that would have prea great experience when interacting with brand’s highestearning category, viously required two to three Cross, the company has testing stations curbringing in more fixtures from different brands rently in place in several airports in Canada than half of all sales in the and use the space for other pur- and the US. “Customers can become familAmericas poses.” Of these categories, Fer- iar with different styles and technologies reira notes that Cross’ aspheric without any assistance,” says Ferreira. reading glasses represent the With the writing accessory category growbrand’s highest-earning cate- ing, particularly in the brand’s emerging margory, bringing in more than kets, Cross ensures that its research and develhalf of the company’s sales. opment team in Lincoln, Rhode Island is Also doing well for the continuously working on ways to innovate the brand are its readers and writ- brand’s products—not only writing instruing instruments, specifically its ments, but also others such as wallets and Tech3+stylus Multifunction mini-retractable pens. With new sales strategies in the As 2013 progresses, Ferreira feels that from works, Cross is looking at another pen. “Our Tech3+ stylus Multifunction pen has received great a global perspective Asia will offer the largest successful year BY MELISSA SILVA acclaim and several awards, growth for the company. He believes growth usiness and personal accessory including the Buyer’s Forum award from in the Americas will come predominantly from company Cross experienced a Frontier magazine,” says Ferreira. "Our sales Brazil, Argentina and Uruguay in all changood year in 2012. Sales reached in the Americas are growing by the double dig- nels—airports, border stores and airlines. To further sales, Cross will continue to the double digits, leaving the com- its. In 2012 they were growing faster in duty pany optimistic about its perfor- free than in duty paid. Aspheric readers remain focus on its use of signage, packaging and merour strongest category in travel retail, putting chandising at airport stores, as Ferreira says mance this year. the brand’s products are more often purFor this year’s IAADFS trade show, Cross it ahead of writing instruments." The reason for this surge in sales may chased in the airport on impulse. “Our sigplans to focus on ways to improve sales per square foot from its self-serve fixtures, which have a lot to do with the fact that consumers nage, packaging and merchandising at the will require updates to its product mix. “We are not only shopping for gifts offered at a rea- POS stations are crucial,” he says. “This is will also offer products at a higher price point sonable price point, usually for under US$100, our primary way of conveying our message due to several requests,” says Cross’ Head of but also want a reliable brand that will not dis- to the end consumer.” Global Travel Retail, David Ferreira. “Our self serve fixture has done very well and was also acclaimed last December at the DFNI awards.” In terms of new developments, the company is working on several sets for David Ferreira, Head of Global Travel Retail, Cross travel retail that will be launched later this year. “We are also continuously looking at ways to improve our merchandis- appoint. Ferreira feels Cross meets these paring, especially around our reading and writ- ticular demands. “As Cross has been around for more than 167 years, consumers know how ing theme,” says Ferreira. With a noticeable change in retailer buy- well our products are crafted and feel coming trends, Cross feels the key to success lies fortable spending up to US$100 on a Cross in presenting its three core travel retail cate- writing instrument without even trying it gories: aspheric reading glasses, writing instru- first,” he says. “Our lifetime mechanical warments and journals. “Some buyers see Cross ranty is proof that we stand by our quality.”




©2013 The Hershey Company

Discover HERSHEY’S portfolio of iconic global brands and innovative Travel Retail Exclusive Products. ®

These travelers’ favorites are joined in 2013 by premium BROOKSIDE chocolates made with smooth dark chocolate covered real fruit juice pieces, offering unique flavor combinations.

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Goldkenn’s new Salted Butter Caramelized Crisps bar, featuring the brand’s new design concept—a clear viewing panel

Confectionery News Goldkenn revisits and refreshes Goldkenn has been making strides in travel retail with the brand now sold in over 250 international airports and duty free shops, onboard approximately 30 airlines as well as on a selection of international cruise lines. This spring, Goldkenn revisits its famous Teaming up with Jack Daniels, Goldkenn has launched its Jack Daniel’s Liqueur Delights series, including the Gift Box (160g)

Goldkenn Goldbar with the launch of the exclusive Metal Goldbar. Revamped in a metal case, the Metal Goldbar features 20 chocolate pralines in a collector’s tin. The pralines are made with Goldkenn’s “Noblesse” blend of fine Swiss milk chocolate accented with slivers of hazelnuts and almonds. Also new to the Goldbar collection is The Crystal Goldbar, named after its gold and transparent glass-effect casing. The Crystal Goldbar features 20 pralines dusted with cocoa sprinkles. The new Metal Goldbar and Caramelized Hazelnuts Bar both feature Goldkenn’s new packaging design concept—a clear viewing panel. The Caramelized Hazelnuts bar features milk chocolate with scattered caramelized hazelnuts, while the Salted Butter Caramelized Crisps bar offers sweet Swiss milk chocolate and sea salt. Also new is Goldkenn’s Jack Daniels series which features Luxury Sticks, Liqueur Delights Tin and Liqueur Delights Gift Box. The Luxury Sticks feature milk chocolate with a liquid drizzle of Jack

Daniels whiskey. The Liqueur Delights Tin features chocolate boules, each encasing the whiskey, while the Liqueur Delights Gift Box features 16 chocolate Jack Daniels whiskey liqueur boules with the same liquid centers as seen with the tin. In keeping with the liqueur theme, Goldkenn has also launched a Rémy Martin series identical to the Jack Daniels series except featuring Rémy Martin Champagne Cognac.

Perfetti promotes confectionery’s increasing potential Last year ended well for confectionery giant Perfetti Van Melle, as the company enjoyed strong sales. With a new manager onboard devoted to developing the company’s Chupa Chups gifting range, the remainder of 2013 looks promising. At this year’s IAADFS show (booth 1105), Perfetti will present the new Mentos Jumborolls Tutti Frutti, consisting of six single rolls of Bubblegum-flavored candy. The brand is currently working on a new display program including gondolas for new spaces, specifically a smaller one for its bestselling items—the Jumboroll and Mega Chup. Also on display will be the Mix of Minis Bag, which contains Mentos Mini rolls (strawberry/orange/lemon and cola flavors), Chupa Chups Mini Lollipops (strawberry/orange/cherry and cola flavors) and Fruittella pixels. Each bag contains 36 pieces. New from the Chupa Chups selection is the Chupa Chups Smurfs Markers, a travel pack containing eight markers, seven lollipops and one Smurfs coloring book. With consumer trends aimed toward gifting items and the Smurfs movie set for release later this year, the


Smurfs products are positioned to do well. Also new is the Chupa Chups Pouch Bag Exotic Tropic consisting of 25 lollipops in Banana & Strawberry and Coconut & Pineapple flavors. The lollipops are covered with little spots that produce different flavors. “Last year saw solid growth for PVM and core brands Mentos and Chupa Chups in the Americas,” says PVM Area Manager Global Travel Retail Eric Vermetten. “Our effort in building distribution has paid off in 2012 and will also positively influence sales in 2013. In 2013 we will continue to focus on increasing visibility in stores due to the highimpulse nature of our products. We also plan to look into the cruise business in greater detail.” Perfetti is launching the new Mentos Jumborolls Tutti Frutti, consisting of six single rolls of Bubblegum-flavored candy, at this year’s IAADFS


PVM reports growing success with border stores where the company sees further room for growth, particularly between Uruguay and Brazil. “The retailers there are doing a great job and continue to reinvent themselves with new initiatives and plans for the near future,” says Vermetten. Perfetti’s new Chupa Chups Smurfs Markers travel pack containing eight markers, seven lollipops and one Smurf coloring book

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Confectionery News Hershey’s new Variety Box includes an assortment of four popular chocolate bars

Hershey’s World Travel Retail announced new Hershey’s World Travel Retail Exclusive products. Adding to the company’s milk chocolate offerings, Hershey is introducing two new extra-creamy chocolate bar flavors, Hershey’s Creamy Milk Chocolate Bars and Hershey’s Creamy Milk Chocolate Bars with Toffee and Almonds. Both bars are 193g and come in an easy-to-open pack for convenience on the go. In addition, Hershey is introducing an exclusive, new Variety Box, which offers an assortment of four consumer favorite Hershey bars. Each bar is 100g making it perfect for snacking and sharing. The assortment includes a Hershey’s Creamy Milk Chocolate Bar, Hershey’s Creamy Milk Chocolate with Almonds Bar, Hershey’s Special Dark Bar and Hershey’s Cookies n Crème Bar. The Variety Box showcases Hershey’s Milk Chocolate’s bold logo and iconic color. The two new bars and the convenient Variety Box are travel retail exclusive and will be available beginning May 2013. Hershey will be debuting the three new Travel Retail Exclusive products at the Duty Free Show of the Americas in Orlando April 7-10. “Our new extra-creamy chocolate bars bring travelling global consumers the taste profile they prefer while showcasing our iconic, highquality milk chocolate elevated to new levels,” says Steve Bentz, Hershey World Travel Retail General Manager. “With our Variety Box, our consumers will be able to snack and share a number of our best-loved chocolate bars anytime, anywhere.”

Fazer’s offerings take flight Boasting a signature milk chocolate tablet that’s been produced for 90 years, Fazer knows a thing or two about the confectionery category. Known for using only the freshest milk—one bar is made with two cups of fresh milk—the 121-year-old company understands the category’s strength even in trying economic times. “Business is good and still going strong amid economic difficulties,” says Katja Santala, Senior Key Account Manager. "People tend to continue purchasing confectionery in tough economic times because a treat is always needed." Fazer’s best regions have long been the Nordics and Europe, but the brand is now increasing its position in Asia. Part of this focus involves making adjustments to the organization itself, specifically dividing the teams differently. “This is part of our strategy to have a stronger Fazer has launched the Angry Birds Red Bird gum jar and Angry Birds Green Pig gum jar, each 100g, available for the first time worldwide


presence in the future in international markets,” says Santala. “The Asian market is something that we’re going to be setting up in the future. The organizational change is also geared towards making our presence stronger in Asia.” As for the Middle East, Fazer has significantly increased its presence in Dubai and is still growing in Qatar. New from the company this spring are a number of Angry Birds novelties, including the Angry Birds pastilles four-pack (100g). Exclusive to travel retail, the pack consists of four Angry Birds pastilles boxes with the pastilles shaped in the form of four Angry Birds characters, available in four different flavors. Also new is the Angry Birds Red Bird gum jar and Angry Birds Green Pig gum jar, each 100g. The Red Bird jar contains strawberry and eucalyptus flavors and the Green Pig jar contains spearmint and pear flavors. The new Angry Birds lollipop bag 120g contains a mix of three different Angry Birds lollipops: Red Bird in strawberry, Green Pig in pear and Black Bird in cola. Each lollipop has a sour sugar center. The Angry Birds chocolate with toy two-pack is also new and includes two Angry Birds milk chocolate eggs (50g), each containing a toy. A total of five different toys can be collected.


Jakeman’s launches Hockey Tribute bottles and Maple Infusions Jakeman’s Maple Products has introduced Hockey Tribute Sr. and Jr., two new hockey syrup bottles. Available in 100ml and 200ml, the new bottles are being received well in cities and airports that support North American NHL teams. In addition to the hockey bottles Jakeman’s has introduced Maple Infusions, which offer the taste combination of maple syrup and fruit. Made with pure and natural maple sugar from the forests of eastern Canada, Maple Infusions are available in four uniquely Canadian flavors: Niagara Apple Spice, Okanagan Peach, Saskatoon Berry and Original Maple. As with all of Jakeman’s maple syrup products, both the hockey syrup bottles and Maple Infusions are made with naturally organic syrup, exactly the same syrup produced in nature. In addition, no chemicals are used during the collection process—trees grow and propagate naturally in a woodlot setting without the use of pesticides. New Maple Infusions by Jakeman’s combine maple syrup and fruit, and are available in four Canadianinspired flavors

Ana Mallea

T: (707) 399 2765


Confectionery News

Chocolat Frey focuses on gifting and sharing Last year, Chocolat Frey appointed OtisMcAllister/ACG as its travel retail distributor in the US, which may have contributed to the brand’s current double-digit growth as the distributor successfully introduced the brand to new customers. Chocolat Frey has a number of new launches in the works. The brand will be presenting three news SKUs in its Praline range in new modern packaging: two versions of 150g boxes in Swiss Prestige dark and Swiss Prestige assorted chocolates, each with 16 pralines in eight different varieties, and Swiss Prestige assorted in the 235g box with 25 chocolates in 11 different varieties. Also new are the 180g Crunchy Bars, which contain over 30% nuts and are offered in three chocolate flavors: milk-hazelnut, dark-hazelnut and white chocolate with almonds. Chocolat Frey has also redesigned its bestselling item—the 500g Chocobloc Mini pouches. One of the pouches will be filled with milk chocolate and the other will contain an assortment of four chocolate flavors: milk, dark, white and milk-orange. The pouches are now resealable and feature a display window. As evidenced with the success of the Chocobloc Mini pouches, Export Manager Travel Retail Claudia Rosenberg believes sharing products and informal gifting products are the driving forces in the confectionery category. “This will continue in the future and Chocolat Frey is also focusing on these segments when it comes to developing new items,” says Rosenberg. Rosenberg is optimistic about the brand’s development in the Americas and is positive this trend will continue in close co-operation with customers. A clear advantage is the amount of attention paid to the confectionery category, which Rosenberg feels has increased over the last few years, coupled with international brand awareness. “Compared to the past, we see more products of internationally unknown brands in certain locations,” she says. “Local brands usually are not in the position to fulfill the international requirements, but are interesting for a certain location.” “On the other hand international brand awareness is very important as well as supporting key customers on a global scale,” Rosenberg adds. “Overall much more attention is paid to confectionery compared to years ago.”

Chocolat Frey’s Finest Dark pralines (150g) featuring 16 pralines in eight different varieties and Finest Assorted Pralines (235g), featuring 25 chocolates in 11 different varieties



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A new travel retail exclusive from Trident includes multi-packs featuring five individually wrapped packs of the best-selling Peppermint, Spearmint and Strawberry flavors

Kraft Foods World Travel Retail

KFWTR backs up its brand dominance with lots of customer research BY HIBAH NOOR

Toblerone Crunchy Almonds has added crunchy caramelized almonds and a touch of salt to the popular chocolate brand


raft Foods World Travel Retail (KFWTR) speaks from a position of strength in the Americas market and globally, says Ivo Knuesel, Regional Manager Americas. While not revealing exact figures, Knuesel cites Generation SA research that shows KFWTR in the top position in travel retail globally and in the Americas. “We are delighted with the 2012 achievements,” Knuesel says. “Our strong leading brands continue to delight travelers in the region, and we can only thank our partners for their support in optimizing our programs.” While not singling out specific countries, Knuesel says that KFWTR is committed to success in the Americas and is seeing growth across different channels. He notes that the complex political environment in Latin America and economic challenges in North America require the brand to take a very selective approach to the market, but that he believes the growth Kraft is experiencing in this part of the world will continue. “We’ve built a strong team in the region, and they will receive even more support from our central function in 2013 and beyond,” Knuesel says. “Kraft Foods World Travel Retail made and makes a significant investment in channel specific surveys, and we are sharing these valuable insights with our partners in the region. Our close cooperation and ongoing dialogues are critical for a successful program.” Lately KFWTR has been investing more time and resources in studying traveler preferences and buying habits when embarking on new initiatives. “We con160

sider what they would buy, how we can make their shopping experience memorable and which brands will best address their various shopper needs,” he says. “Therefore, when we have a conversation with our retail partners, we discuss all of these elements and build an insight of the travelers at any given destination. I would say that this insight-driven dialogue is a new, positive trend.”

exclusive packaging. For the snacking sharing segment, the new Flake Bag presents miniature Cadbury Flakes in a bag format. Cadbury Dairy Milk will also debut with two travel retail exclusive chocolate tablets: Bubbly and Bubbly Caramel. Milka will be highlighting new tastes and textures as well as new products in the chocolate, candy and biscuit categories. Milka Luflée Caramel features an aerated Alpine milk chocolate tablet with liquid caramel filling in bubbly shapes, for self-consumption or informal sharing. Milka Toffee features Milka Alpine milk chocolate surrounding soft caramel with a liquid chocolate center. The pouch format makes it convenient for sharing at home or while traveling. The new Milka Choco Wafer, which offers crisp wafers with a cocoa filling covered in Milka Alpine milk chocolate, has been developed for cash-till placement.

Ivo Knuesel, Regional Manager Americas, Kraft Foods World Travel Retail

KFWTR will be presenting a number of innovations at this year’s IAADFS. Among these are Toblerone Crunchy Almonds, which adds crunchy caramelized almonds and a touch of salt to the popular chocolate brand. Designed for informal gifting, it is available in the trademark 400g tablet and a 6X100g Gift Box. Cadbury’s travel retail range will grow with new offers from the popular sub-brand Flake. The Flake Present Box is aimed at the informal gifting segment and features ten Cadbury Flake sticks in travel


Cadbury’s travel retail range offers The Flake Present Box aimed at the informal gifting segment

In 2013 the ‘freshness gum’ segment will be targeted with a new travel retail exclusive from Trident: multi-packs featuring five individually wrapped packs of the best-selling Peppermint, Spearmint and Strawberry flavors. And product designs in the ‘pleasure gum’ segment will be refined to entice travelers into last-minute, incremental purchases. “We’re thrilled by the power of our iconic brands, and how much they mean to people around the globe,” Knuesel says. “We know from our surveys that ‘brand’ is one of the most important decision-making criteria when buying a chocolate product in travel retail. Therefore, we constantly build on our global brands, adding a twist of travel retail exclusive innovation or an engaging in-store activity.”


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Vodka News p.


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DRINK WITH CARE. STOLICHNAYA® Premium vodka. 40% Alc./Vol. 100% Grain Neutral Spirits. © 2012

Vodka Report



While premiumization is all the rage, there’s no denying that the market for high-quality, affordable spirits is still very lucrative, especially when it comes to the popular vodka category BY

Boru Vodka, the only Irish vodka on the market, is five times distilled



hile travel retail is rightly considered an excellent shop window for brandowners pushing high-end spirits, it’s clear that many consumers are still looking for a good deal when traveling. Below Americas Duty Free speaks with four vodka brands that have the distinction of possessing equal measures of quality and affordability.

Green is gold Ireland-based Boru Vodka is positioned in the Irish travel retail market, on offer at Dublin Airport and Shannon Airport in the 1 liter format. In duty free Boru is priced at €12.95 (US$17.29). “Ireland has the well deserved reputation for producing many of the world’s finest spirits, a proud heritage we have carried on through Boru Vodka,” says Gillian Stewart, Sales Account Executive of Castle Brands. “Unlike most brands, Boru Vodka is five times distilled and it is this distillation process that produces a clean vodka of unusual clarity and exceptional smoothness. Boru Vodka is carefully filtered through 10 feet of Atlantic Irish Oak Charcoal for unsurpassed purity.” The vodka market is tight right now, with an abundance of competition as brands vie for shelf space. As the only Irish vodka on the market, Boru has maintained an edge by being creative with the

brand, paying attention to packaging and maintaining a competitive price. Stewart notes that one key strategy that has worked out well in duty free is Boru’s “2 for €20” offer. Boru has been experiencing growth in the export market, selling almost a million bottles worldwide primarily across North America and Europe last year. Recent months have seen sales on the rise in Asia as well. The vodka market is especially tough for a lesser known brand that doesn’t have the marketing capability of its competitors, Stewart says. However, the product quality holds up well in taste analyses against the best in the market and has received awards on a par with some of the top selling vodkas in the world. “We hope, in time, that people will ‘think Irish…think Boru,’” Stewart says. THE AMERICAS DUTY FREE & TRAVEL RETAILING


Vodka Report

Super premium vodka brand Van Gogh is available in 19 different flavors and in wheat, gin and “regular” versions. In worldwide duty free the best sellers are Espresso, Double Espresso, Acai Blueberry, Van Gogh Blue, Chocolate and Caramel, all selling in duty free for under $25. Van Gogh’s single strongest duty free market is Israel, with Western Canada, Puerto Rico, Australia, Asia, Peru and the Caribbean all also making strong contributions. The brand is also present in the US, throughout the Caribbean, and in Europe, Japan, Taiwan and India. Van Gogh doesn’t do much airport business apart from a presence at Dallas/Fort Worth International and New York JFK. Most worldwide duty free business comes through border stores. Van Gogh is also poured aboard half a dozen cruise lines. “Van Gogh is distilled in a 132-year-old distillery in Holland,” says Kevin Smith, Export Director and Vice President for Duty Free Worldwide. Distillation is in small flavored batches, and the infusion of each batch with premium Dutch spirits, takes from six to eight weeks to attain the optimal flavor balance. Van Gogh has more five-star ratings than any other vodka, Smith says. The Van Gogh wheat vodka is made from Van Gogh Blue wheat and is the only triple wheat vodka in the world. Sales in the US and Canada have been flat lately, attributable mainly to the decision not to undertake deep price discounting the way competitors have. Fortunately, Van Gogh doesn’t have all of its eggs in one basket: international sales now account for over 40% of business and are growing at double digit rates. Smith believes product samplings and special two-for-one price promotions Van Gogh’s will be the key to unlocking draBlue Triple matic sales increases in future. Wheat Vodka

Stolichnaya Premium vodka recently announced the launch of Stoli Hot and Stoli Sticki in the travel retail market via Dufry Do Brazil, one of the largest travel retailers in Latin America. The company is offering a very special price for the launch, making the two variants mustbuys for budget-conscious travelers. Following the availability in travel retail of Stoli Premium vodka, Stoli Chocolat Razberi and elit by Stolichnaya, Stoli Hot and Stoli Sticki will launch in Rio de Janeiro and San Paulo airports with a special introductory offer of two 1L bottles for US$35 instead of the usual US$40 price. Highlighting the partnership between SPI Group and Dufry Do Brazil, the distribution agreement will give Brazilian customers a chance Stoli Hot and Stoli Sticki will launch in Rio de Janeiro and San Paulo airports with a special introductory offer of two 1L bottles for US$35 instead of the usual US$40 price



to discover the two new flavors. Originally created for the 50th anniversary of Stolichnaya flavors, Hot and Sticki are based on Stoli’s first Pepper and Honey & Herb flavors, introduced in 1962. Tasting bars will allow shoppers at the airports to sample the two flavors before they purchase. Stolichnaya has remixed the original 1962 recipes to achieve “the perfect taste” for both flavors, produced using the brand’s four-stage filtration process. Stoli Hot offers the warm, fiery flavor of jalapeño peppers, which Stolichnaya says is “spicy on the palate, yet with a delicate smoky quality, making it ideal for Bloody Marys or drinks with a kick.” Stoli Sticki takes its cues from the candied taste of premium honey and incorporates complex floral notes to complement its sweetness; “the perfect vodka for a Sticki Moscow Mule,” Stolichnaya said. All of Svedka’s flavored vodkas are distilled five times

Care in choosing price point is key to the success of the Svedka Vodka brand, says Willy Brevet, Divisional Director – Spirits for Stansfeld Scott. “We’re at about two-thirds the price of Absolut,” Brevet says, “but at the same time we’re not an entry level either,” he says. “That price point attracts customers who are looking for that kind of value product, something that’s trendy, young and fresh.” Brevet adds that Svedka, which was named an Impact “Hot Brand” last year, has built its market success on prestige and quality, as well as on price point. Svedka is one of the top ten fastest growing spirit brands, in addition to being the second largest imported vodka in the US, Brevet says. The focus is currently on local markets, but Brevet notes that placement in duty free is important for the development of Svedka’s new Colada is promoted as the brand in the a consumer “experience” purchase Caribbean. Brevet and has redesigned packaging expects customers from the Caribbean and Central America to make up the bulk of visitors to the brand’s IAADFS booth. For 2013, Svedka has expanded its distribution by around 50% in the domestic and duty free markets. The Caribbean has taken to the new Svedka Colada, a blend flavored with Indonesian coconuts, pineapple and a hint of mango. Other flavors in the vodka range include Citron, Clementine, Grape, Raspberry, Vanilla and Cherry. The new Colada is being promoted now as a consumer “experience” purchase, with a grassroots strategy that tailors promotions and brand building to the characteristics of each individual market. Colada was launched in redesigned packaging, with targeted promotions in North America and some global markets scheduled for this year. Also, just like the other Svedka flavors, it is distilled five times.

Russian Standard

Russian Standard goes for the gold in the Americas duty free channel BY



ussian Standard Vodka, the top-selling premium vodka in Russia, launched a new product called Russian Standard Gold in August 2012. Russian Standard is one of the world’s fastest growing vodkas (IWSR), showing a growth of 30% for 2011. This makes it the fourth leading premium vodka in the world. Andrew Notcutt, Global Marketing Manager Travel Retail for the Russian Standard portfolio, says: “We are building on this success for 2012. Russian Standard was activated last summer in Rio and Sao Paulo airports and received great advertising visibility in the Boston, Massachusetts airport as well.” More recently, Russian Standard was featured in a tasting promotion in JFK Airport in New York and is regularly promoted in border stores in Argentina and Canada. The company’s Russian Standard Gold product is a unique combination of winter wheat from the Russian Black Steppes and glacial water from Lake Ladoga in northern Russia, which is near their distillery in St. Petersburg. Carefully selected extracts of Siberian Ginseng, or golden root as it is known in Russia, provide an unusual ingredient that adds vigor and vitality to its taste. Other flavors include vanilla, spearmint, cinnamon and caramel. Reviewers enjoy the aroma of the winter wheat and describe it as “silk in a glass.” “The Gold’s product packaging—with its sumptuous embossed gold foil label and luxurious gift box—inspires gift giving of this product and it’s the ideal vodka choice to celebrate the golden moments in life with friends, family and colleagues,” says Notcutt. The new luxury bottle for Russian Standard Gold also features an elegant logo design of the bear and eagle that pays tribute to centuries-old Russian symbols.


Russian Standard Original is the flagship product in Russian Standard’s portfolio

“Our sales performance is a strong double digit,” says Notcutt. “Europe, the Middle East and Africa remain the biggest region for sales, followed by the Americas and Asia Pacific.” Russian Standard Original, introduced in 1998, remains the flagship Carefully selected extracts of Siberian product for the company, Ginseng, or golden making up just over half of root as it is known in Russia, provide an the portfolio’s sales. unusual ingredient that “An increasing number of adds vigor and vitality to Russian Standard consumers are upgrading Gold’s taste themselves to Russian Standard Gold and Platinum to seek a more premium quality and stylish product,” says Notcutt. In general, the core consumer community is 18 to 34 year olds. “They are vodka switchers, both male and female, with a distinct millennial attitude to life and brands. They have become increasingly confident and successful and therefore their taste is becoming more sophisticated,” says Notcutt. “They are seeking more authentic brands versus the superficial vodkas they were previously consuming.” The US and Canada are also priority markets for the brand, as well as the destinations where these nationalities go on vacations. This includes a high concentration of Caribbean regions and cruise holiday destinations. The Canadian border is a key area, as are South American markets such as Argentina and Brazil. Russian Standard vodkas are derived from renowned scientist Dmitri Mendeleev’s 1894 classic formula developed for Russia’s Czars. The company likes to promote its pure Russian pedigree. Marketing efforts emphasize the 100% Russian production, from the historic Russian recipe and use of Russian raw materials, to More and more consumers in travel turning to Russian Standard the fact that it is distilled and retail arePlatinum in pursuit of a more premium quality vodka experience bottled in Russia.


Vodka News Ladoga Group’s Imperial Collection Gold positioned for duty free growth Vodka lovers generally want their favored brand to be authentic and high-quality, and Ladoga Group, based in the iconic Russian city of St. Petersburg, has been garnering accolades from the industry and consumers alike for its unique Imperial Collection Gold. This unique Russian vodka, distributed within Russia since 2003 as Czar’s Gold, is famous for a production process that includes a final filtration through membranes of pure golden thread. Since its successful re-launch in foreign markets as Imperial Collection Gold, the brand has become an icon in the Russian super premium vodka subcategory. Due to superb packaging and the finest quality ingredients, the brand has found a home in high-

end clubs, restaurants and hotel chains in Europe and the Americas. China and Australia are new targets, says Ladoga Group. Official launch parties are now being planned and will be announced later this year. Though Ladoga Group admits that the brand’s availability in duty free at the moment is limited, the Group is confident that the product is perfect for the industry given its shelf standout and quality design cues. “Duty free operators in Moscow and St. Petersburg rate it as the best selling vodka with their customers,” the company says. In fact, Ladoga Group is already in talks with a number of key duty free operators to have Imperial Collection Gold listed in store with a luxury gift set that includes a vodka decanter and four shot

Imperial Collection Gold’s gift pack is one of a kind and brandowner Ladoga Group feels it is perfect for traveling consumers searching for a high-end vodka

glasses made from Venetian glass. The decanter is topped with Swarovski crystals and packed in a Faberge Easter Eggshaped box. Giving new meaning to the concept of luxury, all decorative elements, as well as the eagle surmounting the egg, are gilded with 24carat gold. In fact, Imperial Collection Super Premium Vodka in a Pearl & Ruby Faberge Egg was recognized by the Beverly Hills International Spirits Awards 2012 with a Double Gold Medal.

Absolut releases Denim, new GTR limited edition gift pack From March 4, Absolut Denim is being launched in Changi International Airport in Singapore and then rolled out in selected international airports worldwide in April through July. Absolut Denim is the new innovative venture building on the heritage of Absolut’s creative collaborations with leading cutting edge creatives, this time with celebrated Brooklyn based edgy denim designer Loren Cronk. She has designed a perfectly fitted denim second skin gift pack out of which the iconic bottle slips with ease, elegance and swagger, street chic and cool. On the inside, the denim skin has a high tech shield with supreme cold preserving capacity. Furthermore, the

skin has a QR code which, when swiped with your smartphone, takes you into Absolut Drinkspiration, a world of exciting classic and innovative new generation cocktails, exploring unrivalled mixability qualities. “Exciting creative collaborations have always been a core source of energy for Absolut in our constant strive to enter new dimensions in our brand evolution,” says Anders Olsson, Director of The Absolut Company Global Travel Retail. “Loren Cronk is just the kind of gifted artist, creator and entrepreneur that has the capacity to push boundaries, which is what Absolut is all about.”

Absolut Denim is a collaboration with celebrated Brooklyn-based edgy denim designer Loren Cronk



Vodka News

Exposure is key for Absolut heading into IAADFS

The Jewel of Russia Ultra limited edition vodka, hand-painted and signed by Russian artists

The Jewel of Russia brings authentic Russian vodka to IAADFS For over 12 years, The Jewel of Russia brand has been proudly offering American vodkadrinkers a refined vodka based on centuriesold Russian recipes. The brand features a traditional Russian vodka bottle design that dates back at least 300 years; signs of regal distinction such as a hand-applied wax seal and emblem; a silk cord that decorates the Classic line; and exquisite, hand-painted traditional Russian scenes on each bottle of the Ultra line. The Jewel of Russia vodka brand reflects and enhances its deep devotion to the Russian past and Russian vodka-making traditions. The Jewel of Russia Classic is the main vodka line with an RRP of US$39.99 for a 1 liter bottle. It is exceptionally smooth with a distinctive taste, based on a blend of rye and elite winter wheat. This vodka undergoes a meticulously accurate on-site rectification process. Furthermore, it passes through five-step slow-flow filtration aimed to absorb and remove every trace of impurities left. The Jewel of Russia Ultra limited edition is the flagship line with an RRP of US$109.99 for 1 liter. This is the most exquisitely packaged vodka on the US market today. Each bottle is hand-painted and signed by Russian artists. New scenes are introduced regularly which makes this vodka a perfect gift of artistic rarity. Ultra has received numerous top awards and accolades, including a Four Stars rating by The Spirit Journal, and Best Vodka of the Year by Food & Wine magazine.


Yet another innovative creative collaboration from the world’s leading premium vodka brand has been launched exclusively for global travelers and will be showcased at this year’s IAADFS exhibition. In January Absolut Exposure was launched in selected duty free/travel retail markets (including Singapore, Heathrow and Manchester International Airports). Absolut Exposure is the new spectacular limited edition flavor from Absolut. The variant has been received with great enthusiasm by consumers for its bottle and gift pack design, its new generation flavor of honey melon and lemon grass, and for the entire concept of the innovative launch campaign. Absolut Exposure is the result of a collaboration with internationally esteemed Swedish photographer, director and visionary artist Johan Renck, and actress and supermodel Lydia Hearst. The concept celebrates the art of photography and its delusionary qualities, presenting Hearst in three different personas on three individual bottle designs. ”We’re thrilled about the Absolut Exposure launch,” says Anders Olsson, Director of The Absolut Company Global Travel Retail. “Both the product in itself, the overall concept, the packaging and the campaign represent some of our core Absolut brand values— premiumness, superior quality, innovation and cutting edge creativity. For a frontline brand like Absolut, it’s all about pushing boundaries, constantly re-inventing ourselves.”


Absolut Exposure celebrates the art of photography and its delusionary qualities, presenting supermodel Lydia Hearst in three different personas on three individual bottle designs

Three Olives to launch new vodka honoring Hollywood legend Marilyn Monroe Three Olives, in collaboration with The Estate of Marilyn Monroe, is launching the world's first celebrity collaboration for vodka. Three Olives Marilyn Monroe Strawberry Vodka offers fans a chance to pay tribute to the actress' exquisite style and glamor, combining delicious imported vodka from England with the tempting taste of strawberries and a hint of cream. The strawberry flavor is symbolic to Marilyn's sweet, flirty, luscious and sultry personality. “More relevant today than ever before, Marilyn Monroe lived a life and left a legacy that continues to excite fans all over the world,” said a spokesperson for Proximo Spirits. “Representing the spirits industry, we are excited to join other industry trades and brands to honor this legend's iconic Hollywood elegance. Three Olives Vodka's new Marilyn Monroe Strawberry is a perfect, sophisticated addition to our brand's existing premium vodka flavor portfolio." Three Olives Vodka is quadruple distilled from English Winter Wheat to deliver exceptionally smooth, superior tasting vodka perfect for the ultimate martini or cocktail. Three Olives Marilyn Monroe Strawberry will be introduced to travel retail at this year’s IAADFS Exhibition in Orlando. Three Olives Marilyn Monroe Strawberry will be introduced to travel retail at this year’s IAADFS Exhibition in Orlando



Vodka News

Roust Inc. appoints Oleg Kirillin as CEO Roust Inc., a leading Russian distributor of premium spirits brands and Russian Standard Vodka, has appointed Oleg Kirillin as CEO. Kirillin, who has served as Commercial Director of Roust Inc. since 2011, brings significant skills and experience in his new role as CEO. With over 15 years of Russian spirits industry business expertise, he has worked at Kazyonka, Russian Alcohol Group, Veda and, previously, from 1998-2003, at Roust Inc. “Oleg’s appointment is a demonstration Oleg Kirillin, new CEO of of our commitment to promote successful the Russian Standard managers and employees with strong expe- Corporation-owned Roust Inc., has over rience,” said Roustam Tariko, founder and 15 years of Russian President of Russian Standard Corporation, spirits industry business expertise which owns Roust Inc. “Oleg knows Roust Inc.’s business well, and he has consistently delivered solid results. I am confident that Oleg will meet and exceed our expectations in his new role.”

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 the company’s products are now famous all over the world, thus widening the consumer base and making it necessary for the company to reach out to vodka 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. The company’s namesake brand has three brand lines: 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). White Gold’s bottle redesign reflects the fact that the company’s consumer base has expanded significantly in recent years




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Iceberg Vodka

(from left) Crème Brûlée, Cucumber and Chocolate Mint, the new Ice Fusions line from Iceberg Vodka

In pursuit of purity BY


Iceberg Vodka premieres new packaging and three flavors at this year’s IAADFS, but for CEO and President David Meyers it’s what’s on the inside that really counts ceberg Vodka will showcase its new packaging and launch its flavored Ice Fusions line at this year’s IAADFS exhibition in Orlando. Americas Duty Free recently spoke with CEO and President David Meyers about these recent developments, and about how the “world’s purest vodka” is performing in travel retail. Currently, Iceberg Vodka is present in the duty free channel only in North America, the base of its business, but Meyers notes that the brand is gaining traction in Europe, which he says will be the next frontier for duty free—but first, full development of US/Canada DF will be the priority. “In duty free, we’re gaining additional distribution,” Meyers says. “We initiated marketing and consumer promotions at retail to enhance brand awareness, and 2013 looks like a positive year for sales in duty free as well as domestic.” Consumer promotions and tastings remain the key to driving sales, he adds, and Iceberg offers price-off promotions through DFA. The company is also looking at a number of GWP possibilities as a means of further capturing the attention of duty free shoppers. Sales in Canada, the US and the Caribbean are doing extremely well and 2012 was a record year. Meyers predicts 2013 will be even better, with a full brand relaunch and as the new Iceberg Ice Fusions line of flavored vodkas builds momentum. The Ice Fusions are available in Cucumber, Crème Brûlée and Chocolate Mint, and are slated for introduction at IAADFS. “We considered a number of different flavors for our Ice Fusions line,” says Meyers. “We eventually decided on Cucumber, Crème Brûlée and Chocolate Mint because they were unique enough to really stand out on the store shelf while at the same time still accessible enough to appeal to a wide range of consumers. All of the flavors are created using all-natural essences in keeping with the purity of Iceberg Vodka, and are designed to be enjoyed neat, on the rocks or in cocktails. “Our main message to consumers and the duty free industry at large, apart from the purity of our product and the unique way in which it is produced, is that we’re getting serious about innovation,” Meyers continues. “The vodka category is highly competitive and we’ve taken some big steps toward differentiating ourselves.” And on the topic of differentiation, Iceberg also recently redesigned its iconic bottle. With a more pre-




mium-looking font that goes across the bottle as opposed to lengthwise as it did before, as well as a holographic iceberg image, the packaging is set to make waves in duty free, where shelf standout is all the more important given travelers’ limited dwell time. “Our new label is an industry first in the vodka category with the first ‘cold-activated label,’” Meyers explains. “When the bottle is chilled down to 4°C/37°F, a red maple leaf appears out of the blue Iceberg. We feel that

Iceberg Vodka has trademarked the tagline “world’s purest vodka,” and it’s not just hype; the water used to make the liquid is harvested from icebergs that float from Greenland down to Newfoundland in spring

David Meyers, CEO and President, Iceberg Vodka this is a fun and Canadian way to indicate when the vodka is perfectly chilled, for those who enjoy this serve.” All of Iceberg’s vodkas are kosher, made with Ontario sweetcorn, triple distilled and gluten-free. But the unique selling point is the fact that the vodka is the only one in the world made using water from icebergs (in this case off the coast of Newfoundland). As Meyers points out, this water is of unparalleled purity, having been locked in ice for millennia and effectively protected from pollution. The brand has trademarked the tag line “world’s purest vodka.” We asked Meyers about global warming and melting icecaps, and he told us that Iceberg foresees no issues with regard to stock shortages in the foreseeable future. Indeed, the amount of ice needed for one year’s production of Iceberg Vodka is a very small portion of just one of the massive icebergs that floats down from Greenland to Newfoundland every year. Furthermore, Iceberg does its part by upholding environmentally friendly standards in the harvesting of the ice and the production of the vodka as a means of ensuring that it is helping in the fight against global warming. To learn more about Iceberg Vodka at this year’s IAADFS exhibition, visit ALFA Brands at booth 532.




Spring Vodka Cocktails

The Pure-tini, made with Crystal Head Vodka ■ 1 1/2 oz Crystal Head Vodka ■ 3/4 oz Dry Vermouth Method: Shake vodka and vermouth together with ice in a shaker. Strain into a cocktail glass, garnish with an olive and serve.

The Marylin Monroe Strawberry, made with Three Olives Marilyn Monroe Strawberry Vodka ■ 2 parts Three Olives Marilyn Monroe Strawberry Vodka ■ 2 parts cranberry juice ■ A splash of half & half Method: Mix all ingredients in a shaker filled with ice. Shake vigorously and strain into a chilled martini glass. Garnish with a strawberry.

For duty free executives in the Americas, the annual IAADFS exhibition signals the beginning of spring, and with so many amazing vodka brands on showcase this year, Americas Duty Free decided to bring readers a collection of some of our favorite spring cocktails

The Russian Peach, made with Imperial Collection Gold Vodka ■ 1 oz Imperial Collection Gold Vodka ■ 0.5 oz peach-flavored liqueur ■ 1 oz cherry juice ■ 0.5 oz cinnamon syrup ■ A splash of cranberry Schweppes on top Method: Fill a highball glass with ice and pour ingredients. Garnish with a strawberry, lime and orange peel.



Van Gogh's Potion, made with Van Gogh Double Espresso Vodka ■ 2 oz Van Gogh Double Espresso Vodka ■ A splash of Irish Creme Method: Chill in a shaker and serve in a martini glass

Gulf Beverages

Company News: Patron




Sustainable business practices give Patrón another way to lead the pack

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Gulf Beverages now has over a year under its belt distributing spirits in India and has a number of upcoming listings and promotions as a result of its effort BY RYAN WHITE


ulf Beverages has set its sights on being the go-to distributor for suppliers looking to crack the challenging Indian market. Asia Duty Free speaks with Leon Ashford, Director of Business Development at Gulf Beverages, about what the company has accomplished to date and what’s to come in the months ahead. Asia Duty Free: What advantages do you offer suppliers looking to get into the Indian market? Leon Ashford: Logistically we have the ability to get stock into India easily due to our location in Jebel Ali. Furthermore, we’re learning more and more about the idiosyncrasies of the Indian market as time goes on, making us a valuable partner for wine and spirits suppliers. I think our model truly does provide something different from the traditional model, which has been importing from the point of production or taking from one of the domestic operators, which is difficult given taxation and other regulations. ADF: What have you been up to in the region lately in terms of promotions? LA: The Jose Cuervo Margarita Mix gift pack is currently at DFS in Mumbai. It’s been there for a few months now and the response has been very positive. It’s also in Cochin Airport and will be in Delhi Duty Free in the very near future. Travelers who buy a bottle of Jose Cuervo Gold get a free margarita mix in the package.

Patrón’s distillery in the highlands of Jalisco is a showcase for environmental practices

ADF: Are there any new listings to speak of? LA: We now have rights to Jägermeister and it has been incredibly well received in the domestic market. We have some good duty free listings as well. It will be going into Delhi Duty Free in the next month or so and in Flemingo locations. In Bangkok Airport we were looking at the stats on Jägermeister and something on the order of 40% of the sales were to Indian passengers, so there’s certainly a lot of potential for the brand within India. ADF: You must get excited at the work Delhi Duty Free has been doing in terms of upping the standard of airport retail in India. LA: Delhi Duty Free is spearheading the revitalization of duty free in India and they’re a fantastic partner with a truly world-class travel retail experience. We’ve got some single malts going in there very soon, such as The Glenrothes and Tobermory. In fact they will also be taking a very top end Jose Cuervo 250 Year Anniversary edition around the festival period in September.

All of Patrón’s bottles are handmade from recycled glass

ADF: You mentioned wines earlier. Is there anything happening of note with your wine portfolio in India? LA: We are actually launching our wine and champagne portfolio into India. We’ve been up and running in India for just over a year now in earnest and to date most of our focus has been on the spirits side of things, but we’ve always felt that there’s huge potential for our wine portfolio. Right now we’re launching about 30 or so SKUs. We’ll also have a broader range launching in travel retail.

ADF: You’re also supplying spirits to Indigo, correct? LA: We’ve been supplying Indigo for about a year and we’re pleased with the volume they’re doing. Furthermore, as an LCC there’s no pouring—everything we supply is for sale onboard. In addition to this, we’re just now starting Leon Ashford, Director of Business Development, Gulf Beverages to look at diplomatic duty free stores and other possibilities such as military canteen The challenge with Indian travel retail is that Indian travelers genstores. We do a lot of diplomatic duty free business in the Gulf so our erally gravitate toward buying whisky. To get them away from this you track record there is well established. Really what we provide these have to provide a few incentives, and the Margarita Mix gift pack has operators is a sort of one stop shop that gives them a variety of great done just that. The pack will also be going into Flemingo outlets in brands. Right now it’s about exploring all the options in order to Colombo and Hyderabad in the coming months. expand our business.


uccess unshared is failure.” The phrase is something of a personal motto for John Paul DeJoria who, as co-founder of the upscale tequila marquee Patrón, evidently knows a thing or two about success. The ultrapremium Patrón, which was founded in 1989, today has over 1,200 employees at their distillery in Mexico and sells in over 120 countries around the world. Indeed, the company has probably done as much as any single tequila to move the category massively up-market with specialty brands, flavored drinks and Hacienda del Patrón, the distillery in the highlands of the Mexican state of Jalisco that embodies the boutique sensibility. Lasting success like this is founded on proprietary know-how that is jealously guarded. But the publicly minded DeJoria wants to offer the world—including competitors—an intimate look at everything the company does to minimize the impact its operations have on the environment. The discussion was very much on the mind of Greg Cohen, Patrón’s International Director of Corporate Communications, when he spoke with Americas Duty Free recently. “Our green commitment is an ongoing effort,” Cohen says. “We have a whole team that oversees nothing but our environmental program. We’re always finding new ways to improve—it’s something we’re very proud of.” Cohen points proudly to some Patrón landmarks. The company was the first tequila maker in Mexico to install a reverse osmosis process that enables it to convert most of the otherwise unusable wastewater generated during distillation back into clean water that can be used in the cooling towers, gardens and for cleaning. Patrón is also determined to get maximum value from used agave fibers. Cohen says that Patrón has set aside a 5-hectare site where the crushed fibers are composted. The company also welcomes waste fibers from other tequila makers in the vicinity of the Hacienda del Patrón. Last year, Patrón treated about 5,500 tons of spent fibers from other distillers. Most of the compost created—4,300 tons—went back to local agave growers, while Patrón used the rest in its own gardens. The company also provides compost to the nearby town of Atotonilco. The altruistic impulse runs deep at Patrón, Cohen says. “We’re very careful when it comes to certain proprietary elements of our distillation process and recipe, but we want our environmental work to be an open book. There, anyone can come in and see what we’re doing.” Case in point: Jalisco water authority SEMADAS regularly conducts tours of Hacienda del Patrón to show representatives from other business concerns what is possible. And PROFEPA, Mexico’s national environmental protection authority, recently presented its Clean Industry Award to Patrón. The company has also attained ISO 14001 for its environmental programs. When asked whether Patrón saves money with its earth-friendly practices, Cohen says point-blank that they cost Patrón more than they save. “We’re talking about fertilizer and water,” he says. “They aren’t expensive inputs.” And cost savings aren’t the point: environmental stewardship really is an end in itself for this company. “The spirits industry is doing a lot environmentally,” Cohen says. “But we’re proud that in the tequila industry we’re leading a lot of these efforts.” The theme was front and center at the 2010 “Fortune Brainstorm Green,” an event hosted by Fortune magazine to showcase the thinking of leading green scholars and entrepreneurs. It’s a mark of Patrón’s own stature that its COO and Executive Vice President John McDonnell was invited to speak. McDonnell opened the book on Patrón by highlighting for attendees everything that the company is doing. To what has already been covered here, he added the observation that all of Patrón’s hand-crafted bottles are made entirely from recycled glass. But he added a new twist by going on to note some of the environmental initiatives other spirits companies are pursuing. Indeed, to a seasoned trade show attendee, that willingness to share kudos is a remarkable demonstration of how important environmental consciousness is in Patrón’s operations.

The reverse osmosis system recycles 70% of the wastewater generated during distillation




The popularity of Herradura tequila has secured Brown-Forman’s foothold in Mexico, and the brand will benefit from new packaging in October

Evolving with the

times By Ryan White Tequilera Corralejo has been running a promotion at Delhi Duty Free Arrivals offering passengers the chance to win a trip to Mexico and a date with Miss Mexico

With packaging updates to Chambord and Herradura, plus a new Chambord Flavored Vodka, Brown-Forman proves that there’s no need to fear change


ig changes are afoot at BrownForman Duty Free/Travel Retail. The company recently announced major developments regarding Chambord, the French black raspberry liqueur the company purchased several years ago, and Herradura, the company’s wildly successful 100% agave tequila. Chambord’s iconic orb-shaped bottle, a staple on the back bar of practically every drinking establishment in the US and most of Europe, has received a considerable makeover, losing much of its “bling” in return for a sleeker, more contemporary appearance. In addition, a new Chambord Flavored Vodka is being introduced and is designed to compete in the high-end segment. The new spirit is scheduled to be on duty free shelves after the first of the year, is 75 proof and will mirror its namesake’s packaging evolution, being presented in the same distinctive orbshaped 750-ml bottle. “We do not make changes to our iconic brand packages without considerable deliberation. However in this instance we feel we have given Chambord liqueur a much sleeker and appealing contemporary touch that better reflects on its growing popularity as an integral ingredient in premium cocktails as well as a key ingredient in upscale culinary dishes,” says Jim Perry, Brown-Forman’s Managing


brings 99,000 Hours to Singapore, along with a modern vodka with ancient roots Continuing its passion for traditional production methods, Tequilera Corralejo is introducing a special commemorative edition premium tequila at this year’s TFWA Asia Pacific & GATE ONE2ONE exhibition (stand A15): 99,000 Hours. 99,000 Hours is aged in single Kentucky oak barrels (no bigger than 200 liters) for 18 months and double distilled in the traditional Corralejo Charente method using copper and column stills. This premium tequila is presented in a rounded carafestyle bottle and is designed for drinking neat on the rocks or in cocktails. Also new at the show is Vodka Boker, an unusual Mexican corn vodka presented in a highly attractive and unusual deep blue bottle that has a twisted effect. Initially launched to travel retail markets in India, Central America, Mexico and Canada, Vodka Boker is described as versatile and smooth as any of its international rivals, but with the added bonus of a direct link with centuries of history and culture. Tequilera Corralejo continues to build distribution in travel retail for its range of top quality Mexican tequilas produced by traditional methods using 100% pure Blue Weber Agave, including Blanco, Reposado, Añejo, Gran Corralejo and Triple Destilado. Not surprisingly, the company’s key markets are in the Americas with solid distribution across all Mexican border stores and international/local airports through Aldeasa, Dufry and regional


operators, as well as Caribbean duty free ports, Central America airports plus border stores in Brazil-Paraguay with Mannah Duty Free, Montevideo Uruguay and Argentina. However, the company is steadily expanding outside the Americas and now reports significant duty free business in India, the Maldives and Sri Lanka, plus in Spain through Aldeasa and via Russian border stores. The Middle East and Asia Pacific are next on the hit list and the company is keen to make new contacts at this year’s Singapore show. “We are very keen to work with retailers to promote Tequilera Corralejo,” says Raffaele Berardi, Managing Director of holding company Fraternity Spirits World Inc. “We are very active in creating consumer engagement with the brand. For example, currently throughout India we are running our first Corralejo Teqnicians Mixology Challenge 2012 with the finals taking place at The Park, New Delhi on April 9, where Miss Mexico will also be in attendance. The winner wins a trip to the distillery in Mexico and the winning recipe will feature in the Corralejo Teqnic Book.” Tying in with this the company has been running a promotion at Delhi Duty Free Arrivals with Aer Rianta featuring giant bottles of Tequila Reposado, offering passengers the chance to win a trip to Mexico and a date with Miss Mexico. The company reports that a Corralejo display at Bangalore airport with Nuance has also worked extremely well.



Director for Travel Retail. Perry also notes that while the Chambord liqueur package has been improved, its contents remain completely the same: “Trust me, the Chambord recipe is sacrosanct at BrownForman. We still lovingly handcraft it at our chateau in France’s Loire Valley and continue to select only the finest all-natural ingredients for its content.” Addressing the new Chambord Flavored Vodka, Perry explains that given the popularity of Chambord in high-end and elaborate cocktails, the evolution to an actual vodka was a natural one: “Chambord has always been an essential and versatile element of the perfect cocktail. However, in recent years there has been a considerable influx of vodka-based cocktails, so extending the brand into the flavored vodka category was a natural step. Chambord Flavored Vodka is a perfect balance of premium quality French vodka and Chambord’s trademark natural black raspberry flavor.” In other Brown-Forman news, Montgomery Wilson, Brown-Forman’s Director for Americas Duty Free, asserts that the company’s brands continue to grow in South America, particularly in both domestic and travel retail markets in Brazil and Argentina. As could be expected, bestsellers such as the Jack Daniel’s family of whiskies and Finlandia Vodka are leading the way in this regard.

In a recent interview with Americas Duty Free, Wilson highlighted the importance that both channels have with regard to the success of the company as a whole: “Domestic and travel retail certainly feed off of each other due to the huge arrivals sales business,” he says. “Therefore, we work very closely with our domestic teams to ensure our promotions are aligned and offer value to the consumer while building long-term brand equity.” Last year, Brown-Forman upped its investments in both promotions and manpower, and Wilson asserts that the feedback from customers to date has been extremely encouraging. Moving slightly north, Wilson tells us that Brown-Forman’s travel retail business in Mexico has been “coming back very nicely” just in time to launch the new packaging of Herradura tequila. This release comes hot on the heels of last year’s 100% Agave El Jimador campaign and the company expects similar success for Herradura this year. “The new Herradura packaging is very bold and colorful, yet still retains the quality and heritage that helped make Herradura Mexico’s favorite super-premium tequila,” explains Wilson. “The progress that we’ve made in Mexico, and indeed in the rest of the Americas, is notable. However, the opportunities that still exist are amazing and we are definitely up for the challenge.”




LUXURY SPIRIT New for 2013, presents an exclusive Tequila Supplement that will have bonus distribution at the 2013 ASUTIL conference. In recent years the spirit has broken away from old stereotypes and emerged as a highly sought after subcategory in travel retail. 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 Tequila Supplement will provide both buyers and suppliers with an inside perspective on the flourishing spirit. Editorial Highlights: • Company profiles • Distillation processes • Aging • Tequila news • Cocktails

Distilled delights p.


The agave masters p.


Tequila: In the mix p.


Made in Mexico p.

Tequila Report

Super premium tequila’s growth may signal the shift producers and travel retail are looking for


re consumers finally giving tequila the time and the consideration that its producers, such as Raffaele Berardi, chief executive officer at Tequilera Corralejo have been asking them to do for years? “A product that takes more than 99,000 hours to be produced is worth enjoying for at least 10 minutes,” said Berardi during a recent visit by Americas Duty Free to the company hacienda in Mexico where traditional methods of harvesting agaves, cooking, distilling and fermenting have been turning out premium tequila for decades. Some of the evidence of that appreciation by consumers is showing up in yearly beverage sales, which has the smooth, complex super-premium tequilas that producers like to compare to Cognac outpacing the growth of many other spirits categories in the U.S. and other parts of the world. And with new culinary trends taking shape, tequila exports increasing and some serious efforts made by producers to improve quality and court new buyers, the era of tequila as the loveable rogue of the spirits industry may be at least seeing something of an end. Evidence will also be in abundance at April’s International Association of Airport Duty Free Shops (IAADFS) event in Fort Lauderdale, with spirits companies touting tequila tradition and craftsmanship and the colorful people who shaped its history of the beverage from the field to the distillery. At this year’s event, visitors may have the chance to take part in taking apart an agave plant using the

presenta el exclusivo Suplemento de Tequilas, de estreno en el 2013, que se distribuirá adicionalmente en la conferencia de ASUTIL 2013. En los últimos años, los espirituosos han dejado de ser viejos estereotipos para convertirse en una codiciada subcategoría de la industria minorista de viajes.

By Rick Lundstrom

methods of the traditional jimadors who work the fields. They will also be able to chat with master distillers, such as Francisco Alcarez from the Patrón Sprits Company who will be on hand to dispense wisdom and samples. Despite the uneasy economic times, tequila seems to be well positioned in the middle of some important trends. Consumer affinity for premium products carried on unabated in 2008. And tequila producers who will be found in the usual numbers at the year’s IAADFS event are looking beyond the Americas for the next growth market for tequila. The cocktail trend is also taking mixology to new levels, incorporating exotic ingredients. Finally, tequila – with its blanco/silver, reposado and añejo categories – is perfectly suited for service in ‘flights,’ which is one of the most popular trends in dining. And the process of making tequila in all its incarnations offers teachable moments for a group of image-conscious consumers confronted with a bewildering array of choices. Super premium tequila remained one of the growth spirits categories in 2008 along with premium rums, vodka, and high-end premium and upper premium American, Canadian and Irish whiskeys. But, Peter Cressy chief executive officer of DISCUS said, it remains to be seen how the recession in the U.S. will affect the categories. “Premiumization continues,” Cressy said in a February Casa Herradura, owned by Brown-Forman now makes el Jimador tequila with a 100 percent agave process that has placed in the top 100 premium spirits. It is shown here in its new package design

briefing. The CEO of the council noted that many consumers appear to be “trading around, not trading down. Consumers are being more discerning about their buying decisions when it comes to alcohol.” Super premium tequila sales logged double-digit growth in both volume (10.6 %) and revenues (11.3 %) in the U.S. in 2008.According to DISCUS, more than 1.5 million ninelitre cases of super premium tequila were sold in the U.S. market (the largest outside of Mexico) in 2008. Other categories of tequila did not fare as well. While the sales of value tequila increased 6.4%, sales of high-end premium tequila dropped 9.2% and premium tequila dropped 1.3% for the same period according to the DISCUS year-end figures. And though the U.S. is an important consumer of tequila, the product is still made in Mexico, where the processes, traditions, and of course the agaves are grown in fields that stretch as far as the eye can see. One of those producers is Tequilera Corralejo, which each year visits the Tax Free World Association and the IAADFS. Like last year, Patron’s Master Distiller, Friancisco Alcarez will be attending this year’s IAADFS Show

A number of important processes make up the company’s line of tequilas. The company uses only hand-picked agaves, specially designed yeasts and an aging process that includes barrels from French and Canadian oak and a Mexican wood called Encino. But before the tequila is placed in the barrels, it is distilled in a copper pot method; called Charente, that is common in the production of cognac. “The Charente enables us to concentrate the most delicate aromas and bouquet of the agave, keeping only the very best components and eliminating the mediocre,” said Raffaele Berardi, the company’s CEO. In addition to the company’s line of Blanco, Reposado and Añejo which are found in distinctive tall, thin bottles, Corralejo makes a Triple Destilado which is distilled three times and a Gran Corralejo which is aged in oak for at least two years.

The Cocktail culture The Gran Burdeos, made by Patrón Sprits Company is meant to be consumed straight, but the company this summer will be launching a new concept for global duty free featuring its Patrón Silver tequila teamed with the tools for making cocktails at home. “Most anything they can mix with vodka or other white spirits, they can also mix with an ultra premium tequila like Patrón,” said Chris Spake, global brand manager with the Patrón Spirits Company, in the announcement of the company’s new Fruit Cocktail promotion that will be rolled out in travel retail this summer

The consumer-focused Fruit Cocktail program by Patrón will team Silver with a carrying bag, shaker and pint glass, a lemon/lime squeezer and jump drive with videos from mixologists. To support the program will be advertising, in-store demonstrations, tastings, display units and Duratan signage. Patrón appears to be seeing a trend with the development of the new Fruit Cocktail promotion. Spake told Americas Duty Free that the company has been seeing some slowing of sales growth in the U.S. market. “The trend we have seen is that the U.S. consumers are dining out less,” said Spake. However, he adds that the same consumers are continuing to entertain at home and the Fruit Cocktail GWP could be an effective promotion when it is launched this summer.“Our goal is to create high-impact, profitable programs for our travel retail partners that not only generate consumer demand but also excite and engage their shoppers,” said Spake, in a February announcement of the company’s plans for IAADFS.

Tequila and art Two companies, one small and growing, the other the fifth largest producer tequila in Mexico are finding effective ways of teaming their products with the rich cultural heritages of the country’s arts and crafts. Since 2005, Dorado, Pizzorni & Sons LLC based in Miami have been laboring to expand the line of handcrafted tequilas bearing the name of Mexican surrealist artist Frida Kahlo to the important U.S. market. Recently, the company added six more U.S. states to the THE AMERICAS DUTY FREE & TRAVEL RETAILING



Company News: Brown-Forman

Liquor news


No hay duda de que el Suplemento de Tequilas 2013, con sus reportajes acuciosos sobre las marcas más notables y las más recientes por igual, así como una cobertura insuperable de innovaciones y tendencias; les proporcionarán a compradores y proveedores una perspectiva interna del floreciente espirituoso. Coberturas más notables: • Reseñas de compañías • Procesos de destilación • Añejamiento • Noticias de tequilas • Cocteles

For more information on how to participate, please contact:

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Concessions, Liquor & Tobacco Editor

Advertising & Marketing Manager

Associate Editor

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Spirits Industry News

US distilled spirits prove to be favorites at home and abroad according to a recent report from the Distilled Spirits Council of the United States RYAN WHITE BY

he distilled spirits industry market share edged upward in 2012 according to the Distilled Spirits Council of the United States (DISCUS), gaining share from both beer and wine as companies innovated with new, sophisticated line extensions and as a decade of regulatory modernization for spirits continued to pay dividends. Overall, US supplier sales grew a solid 3.0% in volume to 202 million cases, while supplier revenues grew 4.5% to US$21.3 billion as consumers continued to gravitate to higher end premium and super premium product choices. Meanwhile, the distilled spirits industry grew its market share of sales for the third straight year to 34.3%, taking a bit of share from both beer and wine. "Exports of US spirits hit a new record in 2012, with percentage growth topping triple digits in markets such as Canada, Mexico, Australia, The Netherlands and France," said John McDonnell, DISCUS Chairman and President International/COO of Patrón Spirits. "This represents a tremendous opportunity for travel retail, as clearly consumers across the globe are increasingly interested in American spirits, and in high-end ultra-premium spirits in general." “Moderate growth driven by product innovations and sophisticated line extensions highlighted 2012 for distilled spirits companies of all sizes,” added Peter Cressy, President and CEO of DISCUS, at the industry’s annual briefing for Wall Street analysts and business media. “The premiumization trend continues to captivate consumers here in the US and around the globe.” Cressy pointed out that since 2002, 16 states have adopted Sunday sales of distilled spirits, for a total of 38 nationally. This is worth US$260 million in new annual sales. In the past two years, the last northeastern state, Connecticut, repealed its Blue Law, and even Georgia voted for the repeal, with local jurisdictions there racking up local election victories at an 85% clip. Cressy attributed the changes to the recognition of the economic benefits of modernization and consumer convenience. Also since 2002, 17 more states have passed legislation to allow distilled spirits tastings at liquor stores, for a total of 44 states that allow some form of tasting.


Watching whiskey DISCUS also projected a third-straight record year of export growth to US$1.5 billion, showcased by the continuing strength and appeal of American Whiskeys, which represent nearly 70% of exports and had solid gains in most traditional markets while growing rapidly in emerging markets. US distilled spirits exports now exceed wine exports by nearly a quarter of a billion dollars and are more than triple beer exports. Policy changes, including free trade agreements that resulted in significant tariff reductions or outright elimination in Korea, Colombia and Panama, and Permanent Normal Trade Relations (PNTR) with Russia in 2012, contributed to the record while providing a springboard to future export growth, says DISCUS. “Free trade agreements like the one in Korea, which resulted in immediate tariff elimination, improved American spirits access to the

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John McDonnell, Chairman of DISCUSS and President, International/COO of Patrón Spirits

fifth-largest spirits market in the world,” Cressy noted. “These are exciting developments for American spirits exports and, coupled with other market-opening measures such as PNTR for Russia, will provide a springboard for sustained export growth. “Just as in the US, premium drinks are steadily gaining favor, both in traditional export markets and among the rising middle classes in newly open emerging markets,” Cressy continued. “American Whiskeys are also well positioned from a flavor perspective to take advantage of the growing sophistication in cocktail culture.” "The favorable growth numbers we're seeing in the US closely mirror what’s happening in markets across the globe. Consumers are increasingly interested in high end, ultra premium spirits and innovative products, and that's what's largely driving the continued global success of our industry," concluded McDonnell.


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William Grant & Sons


illiam Grant & Sons (WGS) arrives at the Duty Free Show of the Americas this year (booth 100) with yet another record year in travel retail reported for 2012. All core brands—including Glenfiddich, The Balvenie, Grant’s, Tullamore Dew and Hendrick’s Gin—grew by value, with volume sales significantly above expectations. The travel retail result reflected global success for the company, with highlights including Glenfiddich becoming the first ever single malt Scotch Whisky to sell more than 1 million cases in a single year (IWSR); Grant’s Blended Scotch moving ahead of J&B to become the world’s third largest blended Scotch by both value and volume (IWSR); WGS being named IWSC Distiller of the Year for a record breaking fifth successive year; Hendrick’s Gin cementing its position as the world’s leading super premium gin; and the opening of the new Tullamore Dew Visitor Centre with large investment planned for a new distillery. At this year’s IAADFS, WGS notes that it will be focusing on exclusive editions for travel retail, seen as essential in customer engagement within the airport environment.

Three of a kind The focus for The Balvenie Single Malt Scotch Whisky is the launch of the travel retail exclusive “Triple Cask” range, comprising 12 year old, 16 year old and 25 year old variants. Created exclusively for travel retail, the Triple Cask range offers expressions of The Balvenie that have matured in the three most traditional types of cask—first-fill bourbon, refill bourbon and sherry—in a large wooden vessel known as a marrying tun. These new marriages of The Balvenie are made to precise recipes refined over time by David Stewart to ensure each captures the distillery’s distinctive rich, smooth and honeyed style. The three age expressions in the range all offer something unique: The Triple Cask 12 year old is elegantly sweet and spicy, with a mellow taste of dried fruits, vanilla and cinnamon; the Triple Cask 16 year old delivers a rich vanilla sweetness alongside hints of toffee and gentle oak; and the Triple Cask 25 year old is deep, rich and complex, with silky oak and spice and an exceptionally long and warming finish. Reflecting on the release of The Balvenie 180

The Balvenie Triple Cask range comprises 12 year old, 16 year old and 25 year old variants

Targeting the traveler

William Grant & Sons reports a record year in travel retail and focuses on exclusive lines of its bestselling spirits for 2013 RYAN WHITE BY

Triple Cask range, Malt Master David Stewart said: “The Balvenie is known for its rich, luxuriously smooth and honeyed character, so I had those flavors very much in mind when creating these whiskies. I nosed several hundred casks for each expression in the range, making sure we captured and brought together those special Balvenie traits that our drinkers know and enjoy.” Also available from The Balvenie during the first quarter of 2013, exclusively to travel retail, is The Balvenie Tun 1401, another unique creation from Stewart. After transferring specially selected casks from across the ages, including some of the distillery’s rarest treasures to a small marrying tun, the liquid is left to rest for several months prior to bottling to produce a single malt that enhances its already precious parts. The Balvenie Tun 1401 takes its name from the traditional oak marrying tun in which the aged whisky is married.


Glenfiddich Age of Discovery Red Wine Cask Finish

William Grant & Sons

The Balvenie Tun 1401 takes its name from the traditional oak marrying tun in which the aged whisky is married

Following the success of the travel retail exclusive Tea Time Martini gift pack, WGS is launching a new Teatime Pack for 2013 in Orlando

Travelers discover Glenfiddich One of the big success stories for 2011 and 2012 has been the launch of the travel retail exclusive 19 Year Old Glenfiddich Age of Discovery. Such has been the reception that, following the introduction of a second version, WGS is adding a third version in 2013. Again exclusive to the channel and designed to become a gifting range, Glenfiddich Age of Discovery Red Wine Cask Finish will also be a 19 Year Old, in this case celebrating Darwin’s voyage of discovery on board The HMS Beagle in 1831 that sailed from Plymouth in England. Charles Darwin, a young gentleman naturalist on board the ship, was recruited by Captain Robert Fitzroy to record the natural history and geology that they were to encounter in their travels. Age of Discovery Red Wine Cask Finish is an extraordinarily rich Glenfiddich Single Malt Scotch Whisky, finished in oak casks previously used to produce the smooth, complex wines of South America. Malbec, Merlot and Cabernet Sauvignon grapes combine with the oak to deliver exceptional smoothness complimented by warm spicy notes, while sweet berry flavors lend a velvety sweetness. Brian Kinsman, the Glenfiddich Malt Master and only the sixth in the brand’s history, has personally selected the single malt Scotch 182

whiskies used to create this exclusive Glenfiddich Age of Discovery. Age of Discovery Red Wine Cask Finish will be available to global travel retail in the first quarter of 2013 and joins Age of Discovery Madeira Cask and Age of Discovery Bourbon Cask Reserve. In other Glenfiddich news, to mark 125 years of pioneering spirit at the Glenfiddich Distillery, WGS has launched the new Glenfiddich 125th Anniversary Edition gift pack. Being launched exclusively for travel retail, the Glenfiddich 125th Anniversary Edition is a limited edition single malt Scotch whisky, also created by Kinsman. It is available in a very attractive gift tin, presented with a beautiful copper stopper, a certificate of authenticity and a leaflet on the product.

Irish true and Hendrick’s too In an increasingly competitive Irish whiskey market, Tullamore Dew has maintained its momentum, says WGS. Significant progress has been made on key strategic brand initiatives: the development and launch globally of the new brand positioning, the development and initial roll out of the global communication platform “Irish True,” the upgrade of the Tullamore Dew Original packaging design, and the ongoing development of a new brand home with the takeover of the Tullamore


Dew Visitor Centre. The Irish True communication platform, a key vehicle for differentiation, is currently being rolled out throughout GTR in the Americas in 2013. Outstanding growth for the world’s leading super premium gin continues in travel retail thanks to a program of high profile theatrical promotions and activities that highlight the unique manufacturing process and taste of Hendrick’s. The Barber Chair concept (launched at last year’s Duty Free Show of the Americas), was introduced into other key markets in GTR and has caused a stir wherever it has run. Following the success of the travel retail exclusive Tea Time Martini gift pack, WGS is launching a new Teatime Pack for 2013 in Orlando. This delightfully peculiar cucumber- and rose petalinfused gin has staked its claim as one of the industry’s most premium quality gin libations by taking silver at the world’s leading spirits competition, the 2012 International Spirits Challenge (ISC).

Continued growth for Grant’s and Sailor Jerry For Grant’s Blended Scotch Whisky—now the world’s number three brand in retail value according to IWSR—the focus continues to be premiumization of the brand with the continued roll out of the global travel retail exclusive 25 Year Old, the premium 12 Year Old and various cask finishes which highlight the depth and quality of the brand. To support the complete range of Grant’s whiskies, WGS continues to install a new range of wall bays at key airports across the globe while creating theatre in store with a series of high profile sampling activities. Finally, Sailor Jerry continues to enjoy growth with distribution limited to locations where listings are supported by strong domestic on- and off-trade presence, says WGS. Both are supported by impactful and entertaining promotions and sampling activity. Las year’s Flash art tattoo concept activation that went live in March in JFK is currently being launched throughout GTR in 2013, says the company.

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Liqueur Report

Amarula's new special edition chiller pack An Amarula and coffee; the popular liqueur is enjoyed by consumers in over 100 countries worldwide



Americas Duty Free speaks with some big-name liqueurs, discovering that regardless of how big they get, innovation is key to remaining relevant in travel retail


hen it comes to liqueurs, being a big name certainly doesn't hurt sales. Furthermore, when your brand is associated closely with a classic cocktail, you're practically a shoe-in for consumers' home bars. Nonetheless, household names like Amarula, Bottega and Drambuie—like any other spirit in travel retail—aren't impervious to the ebb and flow of markets and regional economies. As you'll see below, liqueur brands are working the duty free market with new releases, GWPs and special editions as a means of ensuring sales keep rising, or at the very least stay constant in regions where sales have been slumping.

From South Africa to the world “Globally, Amarula performed well in calendar year 2012,” says Dan Goodwin, Marketing Director, Wines & Spirits USA at Distell (USA) Inc. Interestingly, while most people talk of stagnation in Europe and growth in South America, Goodwin says that Amarula’s experience last year was quite the opposite. “The only region of concern was South America, where economic conditions did not favor growth,” he says. “Europe is an important region for Amarula and despite that region’s economic uncertainties Amarula showed growth there. Our home market South Africa also showed good growth as well, reflecting the brand’s iconic status in this market.” Indeed, Amarula is the quintessential souvenir for anyone traveling back from Africa, particularly after being on a Safari. The brand is often a featured drink in the Safari Sundowner, which Goodwin describes as “an outdoor happy hour.” The brand sells best in Johannesburg, South Africa’s OR Tambo Airport, but Amarula is without a 184


doubt a global brand, being sold in over 100 countries worldwide. In fact, about 1.4 million 9-liter cases are sold all over the globe each year. In North America, Goodwin points out that Amarula’s travel retail business was flat last year. Nonetheless, growth did pick up significantly during the second half of the calendar year, giving him hope that sales in 2013 will continue on the upswing. And to help sales along, Amarula has developed a new chiller pack that went on sale in South Africa in March. The company also signed supermodel and human rights activist Alek Wek to a global sponsorship deal. The model appears in Amarula's tv, print and digital advertising campaign. This marks the first time Amarula has engaged an international celebrity for the brand. Wek was born in South Sudan in 1977 and raised as part of the Dinka tribe. At the age of 14 she was forced to flee her homeland to escape the civil war, arriving in London as a refugee. Her life took a new turn in 1995 when she was spotted by a model agent in a London park, becoming a runway success almost overnight.

The Bottega liqueur display at London Supply's bustling Puerto Iguazú store

For lovers of the Italian lifestyle “Bottega offers a unique range of genuine liqueurs featuring nature’s scents and tastes,” says Sandro Bottega, President of Distilleria Bottega. In terms of the most popular varieties offered in duty free, Bottega cites Limoncino Bottega, Gianduia Bottega and Fiordilatte Bottega. Limoncino Bottega is made from the peelings of Sicilian lemons that are then alcohol infused. The addition of the highest quality Veneto grappa makes this a sweet and fragrant liqueur. Gianduia Bottega is a creamy and pleasantly sweet liqueur. “The elegant packaging of the bottle adds a unique touch to the product,” says Bottega. “Gianduia is characterized by a moderate alcohol content, which makes it smooth to the palate, and features a stunning Gianduia chocolate flavor.” Finally, Fiordilatte Bottega is a creamy and pleasantly sweet liquor. Like Gianduia Bottega, it also features a moderate alcohol content and offers a stunning milk and white chocolate flavor. Geographically, Bottega cites Europe, America and Asia as areas of interest for travel retail, including the airline and cruise channels. “Particularly interesting for us are lovers of the Italian lifestyle,” he says. In the Americas, Bottega’s liqueur is driven by Brazilian travelers and important locations include Sao Paolo, Brazil and Puerto Iguazú, Argentina. In North America, New York, Chicago and Orlando Airports are where the lion’s share of sales are made. Nero Bottega is Recent listings for Bottega’s Nero Bottega and dark chocolateRaspberry Bottega liqueurs were made near the end flavored liqueur that was recently of 2012 in Puerto Iguazú, Newark and Chicago. listed in duty free Nero Bottega is dark chocolate-flavored liqueur in Puerto Iguazú, Argentina while Raspberry Bottega mingles the flavors of raspberry and white chocolate with a creamy, grappa-based liqueur Bottega tells us that business for the company in 2012 was about 10% above 2011 worldwide. An indication of the important role that Distilleria Bottega’s liqueurs play is the fact that they represented 15% of overall turnover in 2012.

Drambuie 15 has been a strong performer for Drambuie, helping lift sales in some regions that would have otherwise remained flat year on year

Focusing on strengths William Birkin, Regional Manager Global Travel for the Drambuie Liqueur Company Ltd., says that 2012 was a good year for the liqueur in global travel retail. The brand saw double-digit growth both in terms of volume and value on a worldwide scale. While volumes in North America specifically were flat, largely due to a reduction in the cruise ship business, he tells us gains were brought about by the introduction of Drambuie 15. Latin America performed a bit more strongly for the brand, with single-digit growth brought about through the step change in sampling to coincide with the launch of Drambuie 15. The variant is a whisky connoisseur's expression of Drambuie drawn from the company's finest selection of 15 Year Old Speyside malts. Selected for their soft complex fragrance and flavor, the rare Speyside malts ideally complement and balance the herbs and spicy aromas of Drambuie's famed secret recipe. With a nose of Drambuie's aromatic citrus spice, fragrant grass and butterscotch notes, Drambuie 15 has a velvety soft mouthfeel with a tang of lemongrass and warming malty notes, berries and heather. A finish of shortbread, fresh herbs and the unmistakable long afterglow of the Drambuie elixir results in a refined, drier expression, perfect for sipping and savoring either neat or over ice. We asked Birkin what makes the brand popular: “I don’t think the fact we are a whisky liqueur makes us more likely to be picked up than a powerhouse category such as scotch,” he explains. “It’s the fact that in duty free brands are merchandised in a much more premium way than in most domestic outlets. Our biggest duty free markets are the USA, which is because it is our biggest domestic market, followed by Norway and Brazil as they have a huge arrivals business and high taxation in the domestic markets.” Given that Drambuie's Southern European business has been hit particularly hard in the last three years or so, the fact that global volumes have remained constant is a testament to the hard work of the worldwide team. For 2013, says Birkin, Drambuie's main markets of the US, UK, Canada and travel retail will be the continued focus, as well as developing markets in South East Asia, India and Chile. THE AMERICAS DUTY FREE & TRAVEL RETAILING


The Edrington Group

Brugal’s new ultra premium rum Papa Andres will be featured at this year’s IAADFS exhibition

Success in the Americas domestically bodes well for The Black Grouse in the region’s travel retail market




The continued popularity of premium whisky and the burgeoning high-end rum market put The Edrington Group in an enviable position for 2013


t this year’s IAADFS exhibition in Orlando, The Edrington Group will be showcasing a number of new launches. Attendees stopping by the booth will see Brugal’s Papa Andres ultra premium rum, which will soon be released to the travel retail market in the Americas for the first time; Brugal Extra Dry, a new white rum that is cask-aged in American White Oak barrels for 2-5 years and triple charcoal filtered; and updated packaging for Brugal Añejo and Extra Añejo. If that weren’t enough, Edrington will also be showcasing some spirits that were launched in regions other than the Americas last year: “Stocks of The Macallan single malt are limited but we have raised the visibility of the brand with special issues such as the Masters of Photography: Annie Leibovitz Edition, now appearing in the Americas,” says Juan Gentile, Area Director for Latin America and Duty Free Americas at Edrington. “Furthermore, the success of The Black Grouse in domestic retail here signals opportunity for this member of The Famous Grouse family—and indeed the award-winning Naked Grouse—in duty free in the Americas.”

Premium spirits drive growth Gentile tells us that business in the Americas last year was good across the board, with excellent results specifically for The Famous Grouse family and The Macallan. Added to the strength of the brands themselves is the fact that the Americas duty free channel is performing ahead of much of the rest of the world when it comes to spirits. “This is providing a strong platform for the development of our brands,” he says. In addition to the above brands, Cutty Sark’s new presentation, complete with gift box, was a hit in the Americas. The brand has effectively been revitalized more and more consumers are recognizing it as a versatile and attractive option when it comes to blended whiskies. Aside from Cutty Sark’s success, Gentile says that premiumization has really been the driver for Edrington’s growth in the Americas: “We have had particularly strong performance from the premium lines,” he explains. “The premium and super premium spirits categories 186


Brugal Extra Dry, also new this year, is a white rum that is cask-aged in American White Oak barrels for 2-5 years and triple charcoal filtered


performed well ahead of standard spirits and Edrington is well placed to capitalize on this trend with, for example, products such as Brugal 1888 and Siglo de Oro, The Black Grouse Alpha Edition and The Macallan 1824 Collection limited release decanter.”

Zeroing in In terms of Edrington’s geographic focus when it comes to the Americas, the company is giving particular focus to key cities in the US, Canada, Mexico and Brazil. In Latin America the emphasis is on blended whiskies, while in North America malts are performing particularly well. Despite these concentrations, Gentile says he sees growth potential across the region. The strength of the whisky subcategory, the growing popularity of rum and the above-mentioned trend toward premiumization certainly give Edrington an edge in the Americas given its strong portfolio. As such, Gentile foresees that premium brands will continue to drive growth this year. “IWSR reported in 2012 that super premium spirits had grown by 21.1% and premium spirits by +13.1%, compared with standard spirits growth of +6.6%,” cites Gentile. “This is reflected in the strong growth of the single malt whisky and premium rum segments, where The Macallan, Highland Park and Brugal are very well placed.” Gentile also notes that the continued internationalization of consumer traffic—more Asians traveling through American airports is likely the best example—is driving demand for internationally recognized luxury brands. “We are responding with limited editions, travel retail exclusives and innovation in our product range,” says Gentile. Given the premium nature of many of the brands in Edrington’s portfolio, education is important. Gentile says the company has about 20 brand activation managers in the Americas tasked with making sure that store staff and especially consumers are in the know when it comes to the portfolio. Promotions and tastings—which drive footfall for store owners and just as importantly start a dialogue directly with the consumer—have been and will continue to be a key strategy for Edrington to ensure the continued growth of the brands in its portfolio.


Rémy Cointreau Travel Retail Americas

Innovation, variety and luxury BY


We speak with Area Director of Rémy Cointreau Travel Retail Americas Francois Van Aal about the continued potential of the company’s diverse portfolio in the Americas Americas Duty Free: What new products will Rémy Cointreau be showcasing at IAADFS? Francois Van Aal, Area Director, Rémy Cointreau Travel Retail Americas: Last year we promised innovation and now we have it! Rémy Martin will introduce a 2013 VSOP Cannes limited edition with a red carpet theme to celebrate the brand’s ongoing association with the Cannes Film Festival. There is also an exciting Rémy Martin Limited Edition that features an Asian superstar, Jolin Tsai, which will be very appealing to consumers, particularly on the west coast of the US and in Asia. Cointreau has had a soaring year in the Americas, particularly in the South Latam Region where we have seen double digit growth. As we continue to build on Cointreau’s success, we will also highlight the launch of Cointreau Noir throughout the region. Cointreau Noir is a sultry mix of Cointreau orange liqueur and Rémy Martin Cognac. It will be on display and a key feature in this year’s IAADFS Orlando show. St-Rémy, another strong brand in our GTR portfolio, particularly with the introduction of its eye-catching Limited Editions offers. We are also planning the market introduction of an exclusive limited edition called St-Rémy “Une Nuit a Paris.” This new product will be available in April along with StRémy Extra Old Reserve Privee, a unique combination of eau de vie which have been aged for more than 10 years. Finally, Mount Gay Rum is another featured highlight and key brand in our portfolio. This year this wonderful rum made from the coral waters of Barbados will have some new, exciting and big news towards the third quarter. ADF: How was business in the Americas in 2012? How did it compare to 2011? 188

The Remy Martin 2012 VSOP Cannes display at DFS stores in San Francisco International Airport

Francois Van Aal, Area Director, Rémy Cointreau Travel Retail Americas

FVA: Business in 2012 was better overall compared to 2011, with some brands showing more growth than others. As a whole, GTR sold more than a million cases in the year. Americas Travel Retail, headquartered in Miami, accounted for a very respectable portion of the total. Rémy Cointreau trades exclusively in premium brands, which are growing at twice the rate of standard brands. Our Cognac brands Rémy Martin and Louis XIII are constrained to some degree by scarcity of liquid, placing them on allocation in global markets as demand remains very strong. ADF: Have you secured any new listings in the Americas recently? If so, can you tell me where and with what operators? FVA: We have managed to secure a few important listings with our new Cointreau Noir product. There is still ample opportunity to grow in distribution and volume. We expect the Orlando Show to be a good showcase of Cointreau Noir where operators will have a chance to taste and enjoy it. ADF: In terms of promotions, tastings, partnerships, sponsorships, etc., are there any big activations planned for 2013 in the Americas?


FVA: In San Francisco, we have rolled Van Aal sees great potential out a tasting and for Cointreau Noir in the the variant is educational program region; described as “a sultry mix with outstanding in- of Cointreau orange liqueur and Rémy Martin Cognac” store presence called “The Heart of Cognac” by Remy Martin. The main purpose of this program is to highlight the brand in a premium category, build brand awareness and solidify consumer loyalty through tasting sessions. ADF: Where are your areas of focus in the Americas for each of your main brands? FVA: Rémy Martin, Louis XIII, Cointreau, Mount Gay Rum, St-Rémy and Russian Standard Vodka have established track records in key airports across North America. In the case of Mount Gay Rum, a loyal following comes from the Caribbean region. Strong growth in the GDP of certain South American markets like Argentina and Brazil are stimulating demand for our premium spirits so that is a key focus area. Metaxa and Passoa are less well known in the Americas so there is potential there. Russian Standard Vodka is the fastest growing premium vodka brand and has a great future in the Americas as a whole.

Bacardi Cruise Competition

Bacardi announces its Cruise Competition Bartender of the Year and Chef of the Year in sunny Florida, marking the first time a bartender has won the cocktail portion of the event two years running BY RYAN WHITE


t press time, the 8th annual Bacardi Cruise Competition announced the 2013 Bacardi Bartender of the Year and Bacardi Chef of the Year at an exclusive awards event held on March 8 at the Bacardi Americas headquarters in Coral Gables, Florida. Adri Ford of Carnival Cruise Lines achieved the extraordinary when she was named the Bacardi Bartender of the Year for the second conBacardi Bartender secutive year. Her winning cocktail, the Bacardí Caribbean Hideaway, was cre- of the Year Adri (left) with ated using Bacardí Oakheart, which this year was the required ingredient for Ford Finalist Putu Supariana (right) the signature cocktail category. The Bacardi Chef of the Year was won by Alfredo Marzi of Princess Cruises for his dish Arawak’s Caribbean Style Pork Chop, which won the Entrée category and was made using Bacardí Superior rum. “With this year’s competition launched in the 150th anniversary year of Bacardí rum, it’s fitting that both winners’ recipes were inspired by Bacardí,” says Zachary Sulkes, Regional Manager, Bacardi Travel Retail Americas. Adri and Alfredo each received a glass trophy and a prize of US$5,000 for their winning entries chosen from four cocktail and four culinary finalists by a panel of judges that included cruise line and industry executives. The eight finalists won from a record-breaking 2,800 entries received for this year’s competition. For the party which followed the judging and awards ceremony, the 8th floor of the Bacardi Americas Headquarters was transformed into a cruise ship where lighting effects recreated sunlight reflecting on the waves and themed spaces were inspired by the different experiences available onboard. As the 600 guests—including finalists and industry colleagues—arrived, they were given an opportunity to vote for their favorite cocktail in a new People’s Choice Award. Guests were served samples of each of the four finalist cocktails before they made their selection via iPads. The winning cocktail was again the Bacardí Caribbean Hideaway by Adri Ford. Sulkes added: “This competition has always been about showcasing new talent and this year we’ve rewarded more chefs and bartenders onboard cruise ships and ferries than ever before. I’m immensely proud to look back over the last eight years at what we and our cruise partners have achieved and Bacardi Chef of the Year to see new talent like Adri emerging and receiving the accolades she deserves.” Alfredo Marzi created the tantalizing Arawak’s For Carnival Cruise Lines, Adri Ford’s win Caribbean Style Pork is its second major triumph this year, having Enrico Basile, Chop, made using Bacardí Superior rum already enjoyed success with its crew by winRoyal Caribbean ning a prize of an onboard Bacardí party for Bacardí Med-Mary submitting the largest number of entries. In Category: Martini Cocktail addition to Adri Ford, other Bartender of the Year finalists included: Putu Supariana, Celebrity Cruises Grey Goose Kin-ky Strawberry Category: Highball Melcio Mirandilla, Antonette Barrios, Ann Karlsson, Holland America Tallink Cunard Line Marvin Rivera, Chocolate Bacardí OakBacardí Oakheart Spiced Seared Scallops & Mango Holland America Line heart Ginger Pudding Superior Salmon Bacardí Limón vinaigrette Grey Goose Citrus Kiss Category: Dessert Category: Signature Dish Category: Appetizer Category: Rocks 190


Adri Ford’s winning cocktail creation the Bacardí Caribbean Hideaway, made with Bacardí Oakheart THE AMERICAS DUTY FREE & TRAVEL RETAILING



The Sinatra Lounge, premiered at Brown-Forman’s booth during TFWA WE 2012, will also make an appearance during IAADFS this year at booth 1409

Two legends unite

The Sinatra Experience at Las Vegas Airport is the first of a series of installations that will be launched in major global airports

A very special Jack Daniel’s honoring “Ol’ Blue Eyes” continues to roll out across Americas travel retail and beyond BY RYAN WHITE n recognition of the relationship between two American icons, Jack Daniel’s Tennessee Whiskey, in association with Frank Sinatra Enterprises (FSE), launched a new ultra-premium expression exclusively in travel retail during the 2012 TFWA WE in Cannes. Crafted from special “Sinatra barrels,” Jack Daniel’s Sinatra Select is bottled at 90 proof and comes in a specially designed one-liter bottle. The premium package also includes a specially designed gift box and book telling the story of the legendary Jack Daniel’s and Frank Sinatra relationship. Brown-Forman’s booth at Cannes featured a popular Sinatra Lounge, complete with piano, posters featuring quotes from Frank Sinatra relating to Jack Daniel’s and design cues that highlight the bottle’s striking packaging. IAADFS attendees can see the lounge for themselves at booth 1409 as BrownForman introduces the liquid to buyers at the first major travel retail exhibition in the Americas since its launch. Commenting on the special Jack Daniel’s offering honoring his father during a special






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! Frank Sinatra Jr.

the entertainment industry and in the world of Jack Daniel’s that Frank was one of Jack’s biggest and most loyal fans,” Perry said. “He often referred to his favorite whiskey as the ‘Nectar of the Gods.’ In discussing this special edition Jack Daniel’s, the Sinatra family responded with a great deal of enthusiasm. All Frank’s children were vocal and encouraging in their endorsement. We feel that Jack Daniel’s Sinatra Select will quickly become a cherished item for your home bar and encourage folks to enjoy this superb whiskey.” Hand selected by Master Distiller Jeff Arnett, the “Sinatra barrels” used to make the product were crafted to provide an extra full character and darker rich amber color by exposing the spirit to extra layers of toasted wood on the inner surface of the barrels. The extra rich barrels were mingled with classic Old No. 7 Tennessee Whiskey and bottled at 90 proof, resulting in a character that is full of oak and spice notes with an exceedingly smooth vanilla finish. “The smooth, bold character of the whiskey is meant to embody Jim Perry, Managing Director, Brown-Forman Travel Retail the smooth, bold character of the man,” said Brown-Forman.



press conference in Cannes, Frank Sinatra, Jr. said, “Dad would be very flattered by the association. This fine Tennessee Whiskey, or Old No. 7 as he referred to it, was a favorite part of my father’s life and he loved both sharing it with his friends and introducing it to new acquaintances. I’m very pleased to continue to be a part of the Jack Daniel’s family and feel the introduction of Sinatra Select is an appropriate tribute as we near my father’s 100th birthday in 2015.” According to Jim Perry, Managing Director for Brown-Forman Travel Retail, the idea for a Jack Daniel’s premium whiskey to salute “Ol’ Blue Eyes” has been suggested for many years. “It was common knowledge both within







A fitting launch A major part of Jack Daniel’s Sinatra Select’s rollout in travel retail includes “The Sinatra Experience” installations. In true Sinatra style, Las Vegas Airport was the first to delight travelers with the activation. Brown-Forman notes that this is the first of a series of installations that will be launched in major global airports and is fully equipped with three interactive Sinatra Experience stations to immerse consumers in the Frank & Jack story. Hand selected by Master Distiller Jeff Arnett, the “Sinatra barrels” used to make the product were crafted to provide an extra full character and darker rich amber color

Each Jack Daniel’s Sinatra Select installation of the Sinatra Experience will feature areas for tasting, viewing and listening. The tasting area will give consumers the opportunity to taste the ultra-premium product and will showcase one of the specially designed one-liter bottles. The viewing area provides an opportunity for visitors to enjoy photos of Frank Sinatra. The listening area will include Frank Sinatra’s music and the retelling of Frank Sinatra’s life and his relationship with Jack Daniel’s. “The Las Vegas Airport was selected to be the first place in the world to receive Jack Daniel’s Sinatra Select because Vegas was such an important part of Frank Sinatra’s life,” said Jim Perry. “Frank and Jack literally spent years flying around the globe together; wherever Frank went, Jack Daniel’s was by his side. Along with our retail partner, Nuance, we are very excited about the Las Vegas Airport installation. We feel that our airport installation will engage consumers in the story of the great friendship between Frank and Jack, as well as educate them about the unique craftsmanship

of this exclusive whiskey.” In addition to the Sinatra Experience stations, visitors may purchase a bottle of Jack Daniel’s Sinatra Select within Nuance’s duty free operations at Las Vegas Airport. The sleek special edition bottle comes in a luxuriously designed gift box and features a unique book telling the story of the legendary friendship between Jack Daniel’s and Frank Sinatra. It is known that on stages throughout the world from the 1950s through the 1990s, Sinatra would always offer a toast to his audience with a glass of Jack Daniel’s in his hand. Initially a travel retail exclusive, the suggested retail price for Jack Daniel’s Sinatra Select will be determined market to market. “We are very excited and honored to have been chosen by Brown-Forman to be the first retail partner to launch Jack Daniel’s Sinatra Select in Las Vegas,” said Richard Rendek, CEO of Nuance. “We very much value the relationship we have with the Brown-Forman team and look forward to working together on many more new product innovations.”

Jack’s Bar & Grill at Dubai International is currently the only bar in the world to pour Jack Daniel’s Sinatra Select by the glass



Jack Daniel’s Sinatra Select has also been making waves in the Middle East. Emirates Leisure Retail (ELR), a subsidiary of the Dubaibased Emirates Group, has opened the world’s first Jack’s Bar & Grill, a new F&B concept developed specifically for Dubai International Terminal 3 Concourse A, which opened on schedule on January 2. The drinks list at the world’s first Jack’s Bar & Grill showcases the world famous Jack Daniel’s family of fine whiskies, and notably travelers can find Sinatra Select poured by the glass. In fact, Jack’s Bar & Grill is the only bar in the world to do this. The new concept was developed by MMI-ELR in collabora-

tion with Jack Daniel’s brandowner Brown-Forman, and is managed and operated by ELR. Jack’s Bar & Grill features a very contemporary design showcasing a range of sustainable natural materials, such as hardwoods and smoked glass bricks, to amplify the warmness and conviviality of the atmosphere. Unique features include limited and special editions otherwise available only at the Jack Daniel Distillery in Lynchburg Tennessee, America’s oldest registered distillery. Personalization of Jack Daniel’s bottles purchased at Dubai Duty Free is a special option for traveling customers at the outlet, alongside the Jack’s Bar & Grill range of merchandise, which is also unique to Dubai. THE AMERICAS DUTY FREE & TRAVEL RETAILING


(from left) Botran Blanco Reserva, Botran Solera 1893 and Botran Reserva will be showcased at this year’s IAADFS exhibition in Orlando; Blanco Reserva, the newest offering, is a white rum crafted for high-end cocktails

Botran Rum

The boom in premium rums is heartening, says CEO of Industrias Licoreras de Guatemala Roberto Garcia-Botran, but there’s still work to be done in educating the consumer on rum as a choice for lovers of high-end spirits BY RYAN WHITE


mericas Duty Free recently had the opportunity to sit down with Roberto Garcia-Botran, CEO of Industrias Licoreras de Guatemala, owners of Botran Rum. The company will showcase its wares at this year’s IAADFS exhibition in Orlando, including a new white rum designed specifically for high-end cocktails. While aged dark rums are Botran’s forte, he tells us that from the sugar cane used to create Botran Blanco Reserva to the blending and bottling, the new rum is every bit as handcrafted as other variants in the Botran portfolio. Whether discussing education and getting “liquid on lips,” the boom in high-end rums or the importance of travel retail as a shop window for Botran, Mr. Garcia-Botran impressed us with his passion for the art of rum making and his commitment to the duty free channel. Americas Duty Free: Why is the travel retail channel important for Botran Rum? Roberto Garcia-Botran, CEO, Industrias Licoreras de Guatemala: We see duty free as a shop window for us that perfectly matches with the high-end nature of Botran’s rum portfolio. Generally, when a consumer passes through a major airport and sees a product in a travel retail store, they associate that product with quality and sophistication. This aligns well with our message of craftsmanship. As we say, Botran isn’t just aged, it’s nurtured. Going back to the notion of duty free being a shop window, it’s obviously very important to us that our rum is seen by people all over the world, and duty free is the best way to accomplish this. The channel has


always been one of our top priorities. ADF: Can you tell us a bit about Botran Blanco Reserva, your newest release? RGB: Botran Blanco Reserva was officially launched last year in Cannes and it started rolling out to stores earlier this year. Much like our other rums, it wasn’t designed to compete with other high-volume white rums. It’s more for highend cocktails. Botran Blanco Reserva is a nice compliment to our other rums. While our concentration is on dark aged rums, we felt that a quality white rum designed for mixologists and lovers of crafted cocktails would fill an important gap in the market. We see it having a place in high-end bars as it goes well beyond many other white rums in terms of quality, taste and versatility.

ADF: You mentioned education, and premium rums are booming right now in duty free. Do you think consumers are as educated ADF: How are you planning on marketing as they could be when it comes to rum? RGB: You’re right in saying that high-end the rum in duty free? RGB: Much like our other rums, tastings are rums are starting to gain more traction in key, so you can expect that this type of acti- travel retail, but I really think it’s just the vation will start taking place in major airports beginning. There’s a lot left to accomplish and where we are listed. Education is very impor- there are still many opportunities out there. tant, but once consumers taste our rums— Right now I would say the largest consumer not just Blanco Reserva but also offerings group for rum consists of people who aren’t such as Botran Reserva and Botran Solera necessarily concerned with the pedigree or 1893—the quality of the liquid becomes quality of the rum they’re buying, but rather purchasing it for mixing at parties. If you immediately apparent. think of the liquor category as a whole, though, it’s clear that there is an intense interest on the part of a large number of consumers in aged and/or premium spirits. This is where we feel the opportunity is—in educating people who may already be well versed in whisky or cognac about the quality of our product. Put simply, we feel that if duty free shoppers try Botran and understand that we’re making a high-end aged product created with the utmost care, more often than not we Roberto Garcia-Botran, CEO, Industrias Licoreras de Guatemala can convert them into buyers.






World of Patria International There are three Uisge Source waters available depending on the single malt being enjoyed—Islay, Highland and Speyside

At IAADFS this year, WOPI showcases a new blended Scotch whisky and specially produced water to compliment your favorite single malt BY



t this year’s IAADFS exhibition in Orlando, World of Patria International (WOPI) will be exhibiting two new products in addition to its award-winning stable of existent offerings. The first, Glencalvie Black Scotch Whisky, is described as a “classically smooth blended Scotch,” while the second, Uisge Source, is a range of specially selected spring waters designed specifically to give whisky lovers the best experience when tasting their favorite single malt.

Steeped in history House of S.T. Bhatia has announced the global launch of Glencalvie Black Blended Scotch Whisky, which the company calls “a whisky as honest and tenacious as the people of Strath Glencalvie.” The global travel retail and duty free business for the brand will be handled by WOPI and the SEVA Group (Latin America). Glencalvie can be seen at booth 1300 at the upcoming IAADFS event in Orlando. Glencalvie was born in an era where the Highland Clearances saw the eviction of thousands of Scottish Highland families from their homes and land. The Clearances, however brutal, did not dampen the spirit of the Glencalvie people. Tenacity kept many of these families alive, and Glencalvie Scotch Whisky was produced to celebrate these remarkable achievements of survival against all odds. Glencalvie Black is a classic 3 YO blend created by one of the world’s leading Master Blenders. Glencalvie Black’s carefully selected blend of grain and malt whiskies from Scotland’s finest regions combine to give a majestic nose. Glencalvie Black is exported from Glencalvie Black is a the heart of the Scottish Highlands to the classic 3 YO rest of the world, reminding those who blend of grain and malt savor it of the indomitable spirit of the whiskies from Scotland’s Scots in every sip. finest regions House of S.T. Bhatia will follow the launch of Glencalvie Black with the introduction of Glencalvie Blue, an 8 YO classic Scotch whisky which will add great value to the Glencalvie heritage.

The drop that makes the dram Experts agree that whisky is best appreciated by adding a dash of water. It creates a chemical reaction in the 196


glass, releasing the oils in the whisky and revealing the complexity of hidden flavors and aromas. It also softens the alcohol “prickle,” making it easier to enjoy those true flavors. Experts will also tell you that the best water to use to enhance the dram is the water that made the whisky, or water from the same source and with the same chemistry. Uisge Source waters make it possible for whisky lovers to get the very best from their single malt Scotch whisky by adding specially selected spring waters bottled by hand from private sources close to some of the leading malt whisky distilleries in the key whisky regions of Scotland. Already on sale in the UK and Europe since their launch in late 2012, with more overseas markets set to follow, Uisge Source waters are now available to travel retail markets from WOPI, and are perfect for selling alongside any retailer’s whisky portfolio. The range will be showcased at WOPI’s IAADFS stand and available for tasting. Uisge Source waters have been introduced by Graeme Lindsay who, during his years working for The Glenmorangie Company and Whyte and Mackay, noticed that the same whisky would have a different taste depending on which water was added and wondered why there was no special water for whisky. He discovered that some Scotch whisky distilleries used to sell small bottles of their water to loyal customers and Major Grant of the Glen Grant Distillery used to host tastings next to the distillery’s water supply where he could literally collect the best water for his dram from the burn. Lindsay’s answer to this problem is Uisge Source waters, which are tailored specifically to the whiskies they serve. “By using Uisge Source waters you are adding ‘more of the same,’” he explains, “so no foreign elements are introduced that might distort the character of the whisky.” There are three Uisge Source waters available— Islay, Highland and Speyside. Each has its own unique chemistry, which means whisky drinkers can also enjoy the benefit of consistency. Each of the waters is presented in distinctive 100ml glass bottles which contain enough water for up to 7 drams. For travel retail, a box containing one bottle of each variety will be offered.

Diageo GTME (from left) Steve White, Marketing Director of Diageo GTME; Jonathan Driver, Johnnie Walker Global Brand Ambassador; and Roland Abella, Diageo GTME Managing Director presenting Johnnie Walker Explorers’ Club Collection – The Gold Route

Diageo unveils Latin America-inspired The Gold Route, the second travel retail exclusive blend from Johnnie Walker’s The Explorers’ Club Collection BY RYAN WHITE


ohnnie Walker, the world’s leading Scotch Whisky brand, recently unveiled the latest innovative blend from its exclusive collection: Johnnie Walker Explorers’ Club Collection – The Gold Route. Crafted from the finest aged whiskies handpicked for a luxurious smoothness and vibrant flavor, the new blend evokes a sense of the exotic fruit flavors and beautiful rich golden colors reminiscent of Latin America. Available exclusively for travelers in duty free, it pays tribute to the travelling heritage of the John Walker & Sons agents who journeyed the world and navigated their way down the famous trade routes in pursuit of adventures bringing both new business and rich experiences which they would share on their return. From Central America through the Andean mountains, passing the Inca pyramids and along the coast of the Pacific Ocean, the magnificent scenery and diverse cultures provided inspiration for the Johnnie Walker Master Blender to create a blend of finest aged whiskies gently matured in old American oak casks. “We took inspiration from the fullness of flavors, sights and experiences of Latin America to help us select the most precious liquids for this blend,” commented Master Blender Jim Beveridge. “On the nose, there is an immediate wave of an exotic mix of bananas, mango and pitaya, complemented by a hint of vanilla sweetness. On first sip, the palate embarks on a journey that is as distinct and magnificent as the vistas of Latin America: tantalizing flavors, a perfect blend of fruitiness with hints of pineapples, guava, passion fruit and raisins, all balanced perfectly by deep charred peaty notes in keeping with the signature bold and smoky Johnnie Walker flavor. Best enjoyed neat or on the rocks, the finish is smooth and luxurious, a fitting addition to the Johnnie Walker lineage.” Steve White, Marketing Director of Diageo Global Travel and Middle East, said: “Johnnie Walker Explorers’ Club Collection – The Gold Route is a premium blend made exclusively for travel retail. It is a whisky to remind intrepid travelers of their own journeys and inspire them to plan new voyages, a whisky rooted in the travel DNA of Johnnie Walker. “This second variant of The Johnnie Walker Explorers’ Club Collection follows hot on the heels of the Johnnie Walker Explorers’ Club Collection –The Spice Road, which has seen great success to date,” continues White. “Together, this unique collection of exclusive blends signifies our 198


commitment to our highly valued travel retail customers.” Johnnie Walker Explorers’ Club Collection – The Gold Route is the second blend in the collection of three whiskies, collectively known as the Trade Routes Series, inspired by the richness that could be found along the great trade routes of the world. The first release, Johnnie Walker Explorers’ Club Collection – The Spice Road, which launched in November to critical acclaim and great retail success, is an evocative expression of the vibrancy, aromas and spices that the Johnnie Walker agents would have discovered in the thriving markets around Asia. The third release in the Trade Routes Series— Johnnie Walker Explorers’ Club Collection –The Royal Route—will be available exclusively in duty free stores later in 2013. With a recommended retail price of US$95, Johnnie Walker Explorers’ Club Collection – The Gold Route is now available to travelers in duty free stores globally.

Johnnie Walker Explorers’ Club Collection – The Gold Route is the second blend in the collection of three whiskies, collectively known as the Trade Routes Series



The Courvoisier Le Voyage de Napoleon bar at Heathrow’s Terminal 5

Liquor News

Courvoisier Le Voyage de Napoleon to sail into the Americas To mark the global launch of the new travel retail collection Courvoisier Le Voyage de Napoleon with World Duty Free Group, Maxxium Travel Retail recently unveiled a high profile campaign across London Heathrow, including a bespoke bar, tastings, advertising and social media. Central to the launch and located in the liquor area of the World Duty Free store at Heathrow T5, is a specially created bar based on the Paradis cellar at the Courvoisier château in Jarnac, home to the cognac’s most prized blends and vintages. For four weeks, travelers were invited to the bar to taste Courvoisier cocktails as well as the iconic XO directly from the cask and learn about the unique history and heritage of the luxury brand.

Alongside the bar, gondolas and a wall bay displaying the new Courvoisier range increase visibility and invite shoppers to participate in a sensory journey and explore the craft of cognac-making, bringing the brand’s luxury credentials to life. An augmented reality app features an exploration of the Paradis cellar and deconstructs the creation of cognac, explaining the artisan nature of the craft through the display of the key elements, including grapes, copper stills, wood and eaux de vie. In addition, tastings of Courvoisier VSOP took place at all other Heathrow terminals for one week, courtesy of the Heathrow Journey team. Inspired by one of the most famous travellers in history, this travel retail exclu-

sive collection consists of three unique expressions of Courvoisier’s renowned VS, VSOP, and XO cognacs. The range is presented beautifully in distinctive and opulent packaging inspired by the journeys of Napoleon and designed to appeal to modern, discerning consumers whilst tapping into the growing trend towards luxury. While the above activation took place at Heathrow, Americas Duty Free had the opportunity to speak with José Aponte, Beam Global’s Director – US, Caribbean and Mexico Duty Free. He tells us that travelers in the Americas will also soon be able to enjoy Courvoisier Le Voyage de Napoleon. The variant is slated for rollout in the Americas in May of this year.

Patrón Spirits introduces duty free exclusive Gran Patrón Piedra Patrón Spirits, producer of the world’s highest-quality ultra premium tequila, has announced the launch of the brand’s first extra añejo tequila to be available exclusively in global duty free before it eventually reaches the domestic market. Meticulously aged for more than three years in new American and French oak barrels, the new Gran Patrón Piedra offers a distinct range of flavors and aromatics to satisfy the most sophisticated and discerning palates. “We created Gran Patrón Piedra to offer tequila aficionados a tasting experience unlike any other,” said Francisco Alcaraz, Patrón’s master distiller, who developed the recipe and original distillation process for the entire line of Patrón tequilas and liqueurs. “Its complex flavor profile and remarkably smooth finish set Gran Patrón Piedra apart in the ultra-aged tequila category.” In addition to extra añejo aging, Gran Patrón Piedra is also distinguished by its very unique “Tahona” production process, a time consuming and ancient



method for creating tequila. Bottled at 80 proof (40% ABV), Gran Patrón Piedra is characterized by its deep mahogany color and sweet, subtle aroma of fruit, fresh mushroom, light citrus and toasted French oak. The taste is sweet, yet rich and complex, combining an earthy, herbaceous agave flavor with light vanilla and fresh mushroom. “We’re thrilled about the extraordinary addition of Gran Patrón Piedra to our portfolio of ultra-premium spirits, and our first-ever duty free exclusive,” said John McDonnell, President, International and Chief Operating Officer of Patrón Spirits. “Travel retail represents an important and significant sales channel for us, and we’re excited to make this exquisite spirit available first to our valued duty free partners and consumers.” Gran Patrón Piedra is a sophisticated luxury spirit that deserves an equally striking package. The signed and numbered bottle, which was inspired by the Tahona stone, has been placed in an elegant box that easily converts into a beautiful display case.

Meticulously aged for more than three years in new American and French oak barrels, the new Gran Patrón Piedra offers a distinct range of flavors and aromatics


速 Jim Beam速 Honey, Kentucky Straight Bourbon Whiskey infused with Honey and Liqueur, 35% Alc./Vol. 息2013 2013 James B. Beam Distilling Co., Clermont, KY.

Liquor News

Jaan offers something different for duty free Paul Sapin SA, in conjunction with Barry Global Innovation Ltd., has signed an agreement today with Seva Group to distribute their exclusive travel retail range of wines to Latin American travel retail operators. The partnership was made in time to present the range to those Latin American operators attending the IAADFS show in Orlando. Furthermore, Americas Duty Free has received confirmation that the wines will also be showcased at the ASUTIL conference in June. Commenting on the new partnership on behalf of Paul Sapin, founder of Barry Global Innovation Barry Geoghegan said: “We are delighted to be working with the Seva Group in Latin America as they have such strong, longstanding relationships in this region and are passionate about building a wine business together in this really exciting part of the world.” The Paul Sapin range includes wines from Chile, France, Australia, South Africa, Italy and New Zealand in multiple formats (75 cl and 18.75 cl). The wines are available in the unique unbreakable MLP format which has proven extremely popular with travel retail operators in many markets around the world. Paul Sapin will also be showing the new World Wine Cellar premium gift sets at IAADFS, which are also exclusive to travel retail operators.

Jaan now has a special limited time promotion where Jaan Chocolates are offered as a GWP with the purchase of a bottle in selected duty free stores in Canada

Jaan, meaning “life” or “love” in Hindu/Urdu, is a distinctive new liqueur that encapsulates the flavors and aromas of sweet paan, a betel leaf wrap containing various exotic spices commonly consumed in South and Southeast Asia. Americas Duty Free caught up with President of Jaan, Inc. Raj Dhanjal late last year during the FDFA convention and trade show in Niagara Falls. While it was his first travel retail trade show, it’s already abundantly clear that the travel retail channel, which generally looks favorably upon unique, high-end offerings, is quickly taking a shining to Jaan. This award winning product has won many accolades, including a platinum medal at the 2011 Spirits International Prestige awards in San Diego and gold medals at the 2011 San Francisco World Spirits Competition and the 2012 MicroLiquor Spirits Awards in Beverly Hills. “In terms of availability, Jaan is currently available at Ontario and Alberta land border duty free stores,” Dhanjal tells us. “It is also available at various retail stores across Alberta and Manitoba, as well as in London, UK.” Starting June 22, Jaan will also be available at Liquor Control Board of Ontario (LCBO) stores. Largely as a result of contacts made at the FDFA show, Dhanjal also tells us that the company is in talks with a number of other duty free store operators across Canada to secure listings. Later this year, Dhanjal is looking at launching two new product extensions—Jaan Whiskey and Jaan Tequila. “Based on the initial focus group,” he says, “the response was very positive.” Dhanjal also noted that for lovers of sweets, Jaan Chocolates were introduced at last year’s FDFA and were very well received. Perfect for the duty free industry and travelers looking for a gift, Jaan now has a special limited time promotion where Jaan Chocolates are offered as a GWP with the purchase of a bottle.

Americas plays important role in Chivas Brothers’ Blend global rollout Miami, the gateway to the Americas and home to one of the busiest airports in the US, was chosen as the location to host the global launch of The Chivas Brothers’ Blend. To promote the product’s international debut, Pernod Ricard Americas Travel Retail developed and executed a series of efforts targeted at consumers, retailers and members of national and international media. “The initiative marked the first integrated global product rollout to take the consumer engagement experience beyond the shelf and communicate core brand messages in three key phases: teaser, unveiling and experiential,” says Antonio Suarez, Marketing Director Chivas at Pernod Ricard Americas Travel Retail. “We created a strong experiential marketing campaign featuring global PR events, exclusive tastings, digital platforms, print placements, in-store displays, in-store activations, brand ambassador


programs and bottle-signing events with Master Blender Colin Scott.” To build anticipation, the teaser campaign featuring digital ads, a Facebook brand page ( and what Suarez calls a dedicated microsite (, which was activated four weeks prior to the launch. Digital ads generated buzz surrounding the reveal of the new product. The Facebook page provided messaging that set the tone and voice for the brand and encouraged consumer engagement, while the microsite provided an interactive countdown to the product’s unveiling. By October 1st, the Facebook page had reached approximately 20,000 followers, a number that has grown to more than 70,000 since that time. Attendees at this year’s IAADFS exhibition in Orlando can experience Chivas Brothers’ Blend for themselves at the Pernod Ricard Americas Travel Retail stand.


Chivas Brothers’ Blend is described as a thoroughly modern whisky that is ultra smooth and perfect for sharing




Jim Beam Jacob’s GhostTM Whiskey, 40% Alc./Vol. ©2013 James B. Beam Distilling Co., Clermont, KY

Liquor News

Morrison Bowmore is a new addition to the MONARQ Group portfolio; pictured is the special edition serve kit, designed to help whisky fans master the perfect serve

MONARQ Group poised for continued growth in Americas travel retail

Robert de Monchy, Founder of distribution company MONARQ Group, tells Americas Duty Free that 2012 was another great year for the company, quantitatively as well as qualitatively. “We opened our Miami office and welcomed two excellent industry professionals to our team, Janelle Lee Loy and Marte Salazar, respectively covering the Eastern Caribbean and Mexico, Central America and Pacto Andino in South America.” In terms of brand news, MONARQ welcomed Morrison Bowmore, North American Breweries, Fee Brothers and Chocovine products into the fold. De Monchy describes them as exciting brands that are leaders in their respective categories. We also asked about upcoming promotions in the Americas, and learned that given a previous successful promotion in cooperation with London Supply, plans are in the works for Heineken with another initiative in Argentina, including the introduction of the tequila flavored beer Desperados. Furthermore, a number of promotions have been confirmed in cooperation with Shopping China in Paraguay and Kraudal in Uruguay. “It’s still very early in the year so we expect many other operators to follow suit, such as Dufry and SMT Duty Free,” de Monchy says. “Furthermore, the development of US duty free will be a major focus for us with our new Miami office.” Of course, in addition to the new brands mentioned above, MONARQ Group is known for having a very diverse stable of highperforming spirits. De Monchy says sales are going well across brands, but mentioned Crystal Head Vodka as a particularly strong seller. In terms of the liqueurs subcategory, MONARQ is also particularly strong, with perennial favorites Disaronno, Bols, Molinari and Tia Maria leading the pack. “There’s always room for growth as long as you’re doing the right things right,” de Monchy concluded. “I believe in the strength of our organization and the portfolio. All that’s left is hard work and focus.”



Prowood offers two exquisite spirits from France and Armenia California-based Prowood Wine & Spirits’ (PWS) offering is steeped in the mystique and luxury of premium spirits. The brands are led by the aromatic and spicy but delicate Arman Cognac from France and an Armenian brandy called Kilikia, made from the finest grapes grown in the Ararat Region. 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, at the same time leaving a definite hint of toasted wood and touch of cinnamon. “Since we established PWS in 2003, we have continued to expand the portfolio by responding to consumer's desire for quality and exceptionally smooth spirits,” says PWS owner and President Henrik 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.” PWS is billing Arman Cognac as the jewel in its portfolio—Arman Extra Old Cognac is a blend of a hundred rare and selected eaux-de-vie from the premier growing areas of France PLEASE DRINK FIREBALL RESPONSIBLY BEBA FIREBALL CON RESPONSABILIDAD Please visit us at IAADFS at the Stansfeld Scott Stand #201 and Chase International Stand #1111


Liquor News

Tequilera Corralejo warms up for Orlando Tequilera Corralejo will be highlighting its latest spirits line at this year’s Duty Free Show of the Americas (Booth 828). Quita Penas, a ready-made Margarita Mix with no artificial flavors, is amongst the lineup. Each 750ml bottle is 10% ABV and is decorated with a bright pink and yellow floral motif. Consumers are encouraged to simply serve Quita Penas over crushed ice for the perfect Margarita. Also being shown is Vodka Boker, a unique Mexican corn vodka presented in a highly attractive deep blue bottle. Initially launched to travel retail markets in India, Central America, Mexico and Canada, Vodka Boker is also available in New Zealand and Africa. Tequilera Corralejo's special commemorative edition premium tequila, 99,000 Hours, will also be on display. 99,000 Hours is aged in single Kentucky oak barrels (no bigger than 200 liters) for 18 months and double distilled in the traditional Corralejo Charente method using copper and column stills. This premium tequila is presented in a rounded carafe-style bottle and is designed for drinking neat, on the rocks or in cocktails. Tequilera Corralejo notes that it continues to build distribution in travel retail for its range of top quality Mexican tequilas produced by traditional methods using 100% pure Blue Weber Agave, including Blanco; Reposado; Anêjo; Gran Corralejo; and Triple Destilado. On September 1 of this year, the brand will open the doors to its new warehouse, a 600 meter-long building which will be dedicated to the maturation of 99,000 Hours. “We are looking forward to a great show,” says Tequilera Corralejo Managing Director Raffaele Berardi. “The company’s key markets are in the Americas, with solid distribution across all Mexican border stores and international/local airports through Aldeasa, Dufry and regional operators, as well as Caribbean duty free ports, Central America airports, plus borVodka Boker der stores in Brazil-Paraguay with (above) and 99,000 Hours are just two Mannah Duty Free, Montevideo of the many Uruguay and Argentina. So from a offerings Tequilera Corralejo will be very strong base, we’re now lookshowcasing at this year’s IAADFS ing to further expand and consolishow in Orlando date our business in the region.”

Specialty Brands to showcase wide variety of wines and spirits at IAADFS “I’ve been asked many times how a company like ours can compete in a world of giants,” says Robert Syner, President of Specialty Brands Spirits & Wines Inc. “It’s not easy, but we’re very proud of the diverse portfolio we’ve put together.” In the company’s 17-year history, it has represented some high-profile brands, including Three Olives, Pinnacle and Robert Mondavi Wines. The company has built its sales network primarily domestically, which has allowed Specialty Brands the latitude to find smaller distributors in both the Caribbean and Latin America. Furthermore, Syner says that as the portfolio has grown over the years, so has Specialty Brands’ geographical reach. “I continue to keep an eye out for the next new spirit or wine that I believe has the potential to fit with our company,” explains Syner. As an example, he cites the 2012 introduction of Twisted Shotz RTD products, made with real spirits, to the Specialty Brands family. The company plans on introducing three more RTD line extensions this year—Big Shots, Cordina Frozen Cocktails and Suck & Blow Jell-o Shots. Other new additions for 2013 to the Specialty Brands portfolio include Deadhead 6 YO Rum, made in Veracruz and described as extraordinarily balanced; Apolcalypto Tequila, made from 100% Weber Blue Agave and handcrafted using stone ovens and old fashioned molinas before being aged for six months in American White Oak; Flashbang Reposado Tequila, a 100-proof tequila sold in a unique 50ml single-serve package modeled after an M84 non-lethal stun grenade; Ron de Jeremy, a Panamanian rum aged for seven years; O’Donoghu Irish Cream, containing cream sourced from a carefully selected pool of dairy farmers in Ireland and triple distilled Irish whiskey; Godet Icy Cognac, the first 100% clear Cognac made with a rare grape variety in France; Islay Mist Deluxe Blended Whisky, available in 8, 12 and 17 YO varieties with gift boxes; V Georgio Signature Vodka, an ultra premium vodka made from all-natural US grain; Old Pepper Kentucky Straight Bourbon, produced since 1780; Stone Whiskey, a spirit for lovers of “adventure, leaping forward and taking chances”; Crane Lake California wines; Allure Sparkling Moscato; and Schlumberger Sparkling Prosecco. “There’s plenty to see and taste at the Specialty Brands booth at this year’s IAADFS show,” concludes Syner. “I invite all attendees to stop by and peruse our diverse portfolio of wines and spirits.” Islay Mist Deluxe Blended Whisky is just one of a multitude of products to be showcased at the Specialty Brands booth at this year’s IAADFS



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Horizon Premium Brands, Inc.

(from left) Montana, Police, Pitbull, Flore, and Laredo tobacco brands can all be seen at Horizon Premium Brands’ booth (801) at this year’s IAADFS show in Orlandoby Ryan White

Horizon Premium Brands, Inc. comes to Orlando with a number of high-quality tobacco products aimed at valueconscious travelers BY



ndustry veteran José Chao, President of Horizon Premium Brands, Inc. will be back at IAADFS this year at booth 801 with a number of new tobacco products aimed at value-conscious travelers looking for something other than premium tobacco brands, which generally also come at a premium price. Americas Duty Free spoke with Chao about what he’ll have on offer at this year’s show.

high-quality blend tested with many consumers,” Chao explains. “All preferred it to the previous blend.” In addition to the above, a new pack and carton design ups the premium feel of the brand and puts it on par with the quality design packaging often found in international premium brands. The next brand, Pitbull, has a very high recall with the target consumer of urban males in their early twenties looking for a distinctive and highly appealing brand. “The brand name generates an image of the popular Pitbull dog and also generates high recall due the popularity of the pop music artist that goes by the same name,” Chao explains. “We are very excited for the possibilities that this brand could experience. Thus far the consumer acceptance has been tremendous.” Horizon Premium Brands has just completed a redesign initiative on the Pitbull brand that also included an upgrade in the tobacco quality. The ad campaign tagline for Pitbull is “Only

determining his or her brand choice. The brand, says Chao, targets both urban and rural consumers who have a desire to buy a brand with “a compelling package and an acceptable quality tobacco blend.” The marketing campaign tagline is “Work Hard, Play Harder.” Laredo Filtered Cigars will be one of the first filtered cigars to launch to the travel retail community. The target consumers are urban and rural males in their late twenties. Highlighting tradition, the ad campaign tagline is “Some things… just never change.” “The brand will offer Full, Lights, Menthol and Wild Berry flavors,” says Chao. “They are for consumers that want to have an alternative to cigarette brands, and also have a wide selection of flavors. The current flavors are just the initial offering—we are also planning to introduce other flavors based on the preferences of a given market.” Finally, Flore is described as a super slim offering that is targeting urban females to meet their “sophisticated side.” The brand’s attractive packaging is perfect for the woman looking for their

José Chao, President, Horizon Premium Brands, Inc.

“We have a portfolio of great quality tobaccos that are positioned for the consumer who wants to maximize the currency in his or her wallet,” Chao explains. “Our Progressive Groupowned tobacco brands are Montana, Pitbull, Police, Laredo Filtered Cigars and Flore. Horizon Premium Brands owns the rights to distribute Montana in the US and Canadian markets only. The company is targeting urban males and females with the tagline “Experience Freedom.” “We have conducted an extensive review of the brand and re-engineered it with a new 208

if you got it,” which Chao says fits perfectly with the wants and needs of the target consumer group. The brand is earmarked for export markets, but Horizon Premium Brands will also have a line extension for the US domestic markets with its filtered cigars line. “This is a fast growth segment in the US market that will further anchor the brand with our target consumers, who are looking for choice and quality in their brand selection process,” Chao says. Police is a value proposition that provides maximum savings to the consumer that holds value as the single most important factor in


“own” brand, says Chao. The brand comes in three flavors—Full Flavor, Lights and Menthol. “Tobacco is a category that generates billions of dollars in domestic markets, and the brands we are introducing will give the high number of value-conscious consumers an alternative to the higher-priced premium brands,” Chao concludes. “In the duty free channel many premium brands are often on allocation and have high price points that a value-conscious consumer will not buy. Our brands will offer a good alternative bridge for retailers and consumers alike.”

KT&G The Tonino Lamborghini brand’s packaging was designed by Italian design firm ARC’S The Tonino Lamborghini Ice Volt design utilizes a blue thunderbolt image to visually express a powerful menthol flavor



New Tonino Lamborghini Ice Volt heats up sales for KT&G


T&G, one of the top five global tobacco companies, “KT&G’s cigarette expects worldwide success with its new Tonino Lam- products are now purborghini Ice Volt cigarettes. chased mostly by KoreJihyun Choi, Overseas Brand Department Manager ans, Chinese and Rusfor KT&G, based in Beijing, says, “Tonino Lamborghini sians. Manufacturers Ice Volt is a menthol version within the Tonino Lamborghini fam- continue to develop ily, rated at 6 mg of tar and 0.5 mg of nicotine. It was developed to many kinds of cigarettes with new provide a powerful, cooling effect. It also has a champagne flavor so technologies such as better functioning filters and consumers can feel the fizz and taste the sparkle of luxurious cham- capsule-type filters. Generally, many consumers tend to gravitate to pagne. It also provides the highest level of menthol flavor among men- cigarettes with lower tar contents.” thol products.” Package design was developed by ARC’S, a popular Italian design studio with brand credits ranging from Martini to Fiat. ARC’s also designed Tonino Lamborghini L6 and L8 (with 6 mg and 8 mg of tar respectively). “This will maintain the design identity of the brand,” says Choi. The Toro emblem of a fighting bull, representative of the charisma Jihyun Choi, Overseas Brand Department Manager for KT&G of the Lamborghini family of products, is featured prominently. “The Ice Volt design utilizes a blue thunderTonino Lamborghini products were developed as a super-premium bolt image to visually express a powerful menthol flavor,” says Choi. cigarette for launch not only in the Korean market, but globally as Tonino Lamborghini Ice Volt cigarettes were introduced at Inter- well. KT&G reported in a media statement that “although the comtabac, the world’s largest tobacco industry fair held in Germany in pany considered the top price level in Korea due to the highest qualSeptember 2012, as well as at the TFWA World Exhibition in Cannes, ity of raw materials, development costs and the luxury brand value France in October 2012. “The design and taste of the products were of Tonino Lamborghini, we decided on the KRW 2,700 [US$2.55] price well received,” says Choi. point in consideration of the local economy and inflation.” KT&G has the exclusive sales rights for the product worldwide. “The Tonino Lamborghini cigarettes not only contain expensive premium launching of Ice Volt rounds out the Tonino Lamborghini brand line tobacco, they also feature high quality elements such as a special film in a perfect way. KT&G has high expectations in the field of menthol for superior moisture retention and an embossed lip release filter. cigarettes. The product already launched in leading Asian duty free shops KT&G does not have products solely for the travel retail market. in Hong Kong, Beijing and Shanghai,” says Choi. For 2013, the Russ- All products sold in travel retail are also found in local markets. Disian, Taiwanese and Dubai markets are targets for launch, with North plays are the only marketing devices used in airports since most do America in future plans. not allow any other kind of promotion. “At the moment, Asia is the biggest travel retail market for KT&G. In addition to the above, KT&G is well positioned for future sucWe also launched in the European and African markets in 2012,” con- cess with this product given the success of their flagship brand Esse. tinues Choi. “Our sales strategies for the North American travel retail More than 100 billion Esse cigarettes have been sold and the prodmarket have just begun so we have high expectations for a bright future uct is carried in about 148 airports around the world. “Esse is the best in the American market too,” she explains. The company plans to reach selling super-slim product in the world, has 30 sub-brands and is loved a global market within three years. by many consumers globally,” concludes Choi.




British American Tobacco International

Driving growth and innovation

Americas Duty Free speaks with Marcos Novis, Key Account Manager – Americas at BAT International, about what attendees can expect from the company this year in Orlando BY RYAN WHITE Americas Duty Free: What new products and innovations will BAT International be showcasing at IAADFS 2013? Marcos Novis, Key Account Manager – Americas, BAT International: At IAADFS 2013, we will demonstrate our leadership of the tobacco category by showcasing products such as Vogue Perle Capsule Classique and Lucky Strike Original Tobacco. For many adult consumers, personalization and the flexibility to choose are becoming increasingly important. To meet this need, Vogue will launch an addition to the Perle range—a premium demi-slim cigarette, featuring capsule technology that delivers a switch to spearmint taste when clicked. Vogue Perle Capsule Classique is about indulgence for such adult consumers. As the world becomes more environmentallyminded, people want to see their concerns reflected

ADF: In the Americas, which locations/regions were the strongest for BAT in 2012? MN: In terms of market share and volume, locations such as Cancun, Lima, Sao Paulo, Mexico City and Rio de Janeiro showed excellent performance. BAT capsule products—available in However, Santiago the Chile still remains the selected travel retail markets; for tobacco trade use only most important location due to its category size. In terms of partnerships, we enjoy excellent support and collaboration with all the key retail partners, and this is a big part of our success. Our customers understand the importance of our brands to build and grow the business. ADF: Which of your 2012 innovations was particularly successful in the Americas? Why? MN: In terms of innovation, I am very happy to say that our launches with capsules, such as Dunhill Switch, Kent iSwitch and Lucky Strike Click&Roll,

Marcos Novis, Key Account Manager — Americas, BAT

in the brands they choose from production to disposal. Consumers want their brands to be authentic and honest, and this trend is evolving across different segments. This is one of the reasons for developing the Lucky Strike Original Tobacco range. It’s a natural product with “back to basics” approach, all wrapped up in an authentic look and feel pack. ADF: How was business in the Americas duty free channel in 2012? MN: British American Tobacco International had an excellent year in 2012 in the Americas, especially when it comes to our Global Drive Brands, which showed excellent growth. The brands that performed the best are Lucky Strike and Dunhill. The growth is underpinned by a wide rollout of innovations that represent a significant share of our portfolio, as well as marketing campaigns based on our consumer insights. 212


enjoyed huge success all around the cluster. The convertible cigarette is the biggest cigarette innovation in recent years and, in this, BAT is leading the way. Our consumers have a choice: they can enjoy a regular tobacco taste or a fresher one, powered by a simple click. Another success story is Vogue, which is a growing brand. Our multipack offer also had a lot of success. Moreover, the in-store furniture was a successful innovation in 2012. We have replaced the previous models with solutions that are tailored to cater to all types of adult tobacco shoppers by providing engaging and premium executions that meet the basic needs of stocking, but through the use of added functions such as touch screens, can bring more of an “experience” to shopping. We think that this is very important for the category, and therefore for our retail partners.

Habanos S.A. The XV Habanos Festival Gala Evening was in honor of Partagás, a brand founded in 1845, which this year presented the first Gran Reserva in its 168-year history

Croatian chefs Grgur Baksic, Zoran Simunic and Pantelija Pekic hosted a special cooking show that took place during the XV Habanos Festival

A celebration

like no other

The XV Habanos Festival took place last month, introducing attendees to new cigars, wine and food pairings, celebrity guests and much, much more BY RYAN WHITE


he XV Habanos Festival, a mustattend event for cigar lovers the world over, took place last month in Cuba. The company welcomed aficionados from more than 70 countries and a host of international personalities. Those attending the XV Habanos Festival this year included former number one tennis player in the world Boris Becker; NBA star Gary Payton; Italian tenor Darío Balzanelli, widely regarded as Luciano Pavarotti’s successor; Cuban singer Omara Portuondo; and avantgarde Croatian chefs Grgur Baksic, Zoran Simunic and Pantelija Pekic, members of Gastronomadi. Not only did Balzanelli and Portuondo perform at the festival’s Gala, but Baksic, Simunic and Pekic hosted a unique cooking show called “Tobacco and Gastronomy.” A master class on pairing Habanos and Rioja was another high point of the Festival. The historical Morro Fortress was the exceptional stage for the Welcoming Evening. Attendees were able to sample—for that night only—the new vitolas in the Montecristo permanent range. The first one, Petit No. 2, enriches the historic Línea Clásica after many years’ wait and is notably conceived with a figurado taper at one end. The second launch from Montecristo is Double Edmundo, a larger Habano vitola that provides a smoking time of approximately one hour. Both vitolas will carry the new brand band, which highlights both simplicity and elegance, says Habanos. What is known as the Vegueros Evening— a very special event to honor the hardworking tobacco growers that provide Habanos


The historical Morro Fortress was the stage for the Welcoming Evening, and attendees were able to sample—for that night only—the new vitolas in the Montecristo permanent range

with its inimitable leaves—took place on February 28. The event, which was held in El Laguito Protocol Lounge, also included the relaunch of the Vegueros brand, and new handmade Tapados, Entretiempos and Mañanitas vitolas were available to be sampled together with Edición Limitada 2013. The night also reflected the relationship between Cuban tobacco and high cuisine, as one of the dishes served included tobacco as an ingredient. The XV Habanos Festival ended on Saturday, March 2 with the Gala Evening in honor of Partagás, a brand founded in 1845, which this year presented the first Gran Reserva in its 168-year history: Lusitanias Gran Reserva Cosecha 2007. During the night, Balzanelli sang the famous Cuban song “La Comparsa,” and Portuondo performed with


Maestro Patterson’s orchestra and Maestro Santiago Alfonso’s dance troupe.

Cigar lovers rejoice! In addition to the big XV Habanos Festival news and the coinciding brand launches, the company lately released a number of other new vitolas. Since its birth in 1875, Romeo y Julieta has become one of the best known Habanos brands. The brand is particularly appreciated by enthusiasts who want balanced blends with excellent aromas. Just before the Festival, Habanos introduced the first Reserva created by this brand after more than 135 years of history. The emblematic Churchill vitola, perhaps the most historical of the brand, has been chosen for this unique production cycle that comprises the first Reserva of Romeo y Julieta. In addition, solely for this occasion, the historic Romeo y Julieta band used on Churchill vitolas for decades has been resurrected and will be combined with a second band indicating the Reserva status of these Habanos. The Reserva of Romeo y Julieta is a unique product with an extremely limited production run of only 5,000 numbered cases, each containing 20 units. Habanos also recently announced that it has introduced Selección Petit Robustos, presented in an elegant travel retail case—of which just 5,000 have been produced—that will surely become a valuable and special gift appreciated by Habanos enthusiasts. The beautiful case contains 10 Petit Robustos (50 ring gauge x 102mm in the length), a vitola widely adored by Cuban cigar lovers. This selection includes five of the most prestigious Habanos brands: Cohiba, Montecristo, Romeo y Julieta, Partagás and H. Upmann. The limited edition is available at selected duty free and travel retail points of sale now.

Tobacco News The J. Cortès Mini/10 travel retail exclusive packs

J. Cortès has developed two new SKUs in 5x10 with a sleeve as a result of the success it had with its limited edition packs for J. Cortès Mini/10 and J. Cortès Dominican Mini/10

J. Cortès vies for visibility J. Cortès has a broad range of original flavor and aromatic cigars in travel retail under the J. Cortès and Neos brands. Bestsellers are the Neos Mini Java 5X20, J. Cortès Mini 5X20 and the Neos Mini Vanilla Filter 5X20. “We have developed two new SKUs in 5x10 with a sleeve as a result of the success we had with our limited edition packs for J. Cortès Mini/10 and J. Cortès Dominican Mini/10, which we made last year exclusively for travel retail,” says Emmanuel Ghesquière, Export Manager Americas, Iberian Peninsula, Northern Africa and French Overseas Territories for J. Cortès. Vaepe is positioning its brand at the more sophisticated and cultured traveler; key focus has been placed on designing a high quality, good looking and functional product

World of Patria brings Vaepe E-Cigarettes to travel retail Vaepe has announced the launch of its premium brand of e-cigarettes to the global duty free/travel retail market. Designed for the more sophisticated traveler who appreciates high quality “vaping” on the move, the brand will be introduced at the Duty Free Show of the Americas by recently appointed worldwide travel retail


distributor World of Patria International (WOPI) at booth 1300. The Scandinavian-patented designed product range is sleek, slim and sophisticated, with the aim of bringing chic back into the art of vaping. The global market for e-cigarettes is growing rapidly and Vaepe is positioning its brand at the more sophisticated and


Ghesquière finds that continuously striving to have better visibility on the shelves is the main path to success. He says that being close to the store entrance and close to eye level are the two key criteria of good positioning. Travel retail sales are growing steadily, he says, with some examples of new listings in Tunisia, Egypt and in South East Asia, specifically Sri Lanka, riding on the success J. Cortès has had with limited edition packs. J. Cortès will be on hand for IAADFS this year, and Ghesquière says that TFWA Singapore in May, ASUTIL in June and TFWA in Cannes in October will be the other main venues for the brand in 2013. cultured traveler. Key focus has been placed on designing a high quality, good looking and functional product, says WOPI, providing a pleasurable vaping experience to the user. The product benefits from a range of different strengths and flavors to suit all tastes and even includes a zero nicotine refill for those customers that have quit smoking or those who never started. “We're delighted to be bringing the Vaepe range to travel retail,” says WOPI’s Andy Butcher. “Using the Vaepe product, customers have an elegant and sophisticated vaping device which provides a pleasurable experience for use in most locations, without the health risks

associated with smoking tobacco, and saving considerable money using the Vaepe refills.” Vaepe has developed a range of products specifically aimed at the global travel market, including an exclusive Vaepe 200 Vaepe’s Lounge Travel Kit duty free package, which is an attractive alternative to the 200 cigarette blocks typically purchased. “We definitely expect this product to take off,” continues Andrew Wheeler, Vaepe International Sales Manager. “Early customer feedback and market forecasts predict a bright future for the Vaepe product targeted at the more demanding and sophisticated global customer.”

The BDS Short Corona 5 is new in travel retail

Villiger eyes Asia, Europe and the US for continued growth Americas Duty Free recently had the opportunity to speak with Senior Vice President Export at Villiger Gert Kamphuis about how the company performed in 2012 and what he expects from this year. “Business in general was very good for Villiger in 2012,” he tells us. “We realized double digit growth. We’ve especially grown the European business, and in duty free we’ve experienced growth specifically in Asia.” Kamphuis sees the Asian market as Villiger’s biggest opportunity in travel retail and he notes that the company has laid out plans for “further significant growth” through the launch of new products, including novel concepts from the popular Saphir line. In addition to Asia, Villiger does good business in the US and Europe, says Kamphuis, so continued focus will be placed on growth strategies for those regions in the coming months. In Asia, Villiger has laid plans for “further significant growth” through the launch of new products, including novel concepts from the popular Saphir line; pictured are existent variants in the range

For travel retail, Agio has developed special travel retail packs for its Mehari’s and Panter brand cigars. At the premium end there’s a Balmoral Dominican gift box with 12 Small Panatela, Panatela and Corona cigars, along with a Dominican Olor binder and Ecuador shade wrapper, in a wooden box. There are also fivepacks in models such as Churchill Tubos, Corona Tubos, Small Panatela Tubos and Short Corona. “Our bestsellers in travel retail are definitely the BDS Collection 12 gift box and the BDS assortment,” says Gertrude Stormink, Export Manager for Agio Cigars, who also manages the brand’s travel retail side. “Our filter aroma cigarillos like Mehari’s Filter Sweet orient and the Panter Filter Dessert are also very popular.” New products in travel retail are the Balmoral Dominican Selection Short Corona 5’s and the Filter Tip Sweet 50’s with vanilla flavor.

Travel retail sales grew in 2012 and Agio expects good things this year. There will be a major new rollout of the Balmoral brand, the premium shortfiller Balmoral Dominican Selection. There will also be some new travel retail exclusives under Balmoral, as well as a new retail concept designed to boost presentation and visibility of the short-filler cigar segment in travel retail. The BDS 12 gift box contains a range of premium products

JTI Worldwide Duty Free appoints new head of corporate affairs and communications JTI Worldwide Duty Free (WWDF) has announced that Gladys Rodriguez will be taking over from Santiago Llairo as the new Head of Corporate Affairs & Communications. Llairo will move to JTI’s UK offices in Weybridge, Surrey as Director of Corporate Affairs and Communication for the MENEAT region. “We are delighted to welcome Gladys to head the Corporate Affairs and Communications function for our Worldwide Duty Free business,” said David Francis, General Manager and Vice President for JTI WWDF. “Gladys brings to this role invaluable professional experience obtained from past employment with both a travel retail operator and JTI’s own duty free tobacco business, making her especially well qualified to ensure we continue to grow our duty free business effectively and responsibly. At the same time we wish Santiago every success with his new role in our MENEAT region.”

Gladys joined JTI WWDF in 2009 from the Dufry Group where she spent time as Deputy General Counsel based in Miami, Florida, and then in Zurich, Switzerland. Prior to joining Dufry, Gladys held various legal roles for the spirits company Bacardi, for Viacom’s MTV Networks Latin America and Blockbuster Inc., Walt Disney International and for the pharmaceutical giant Merck & Co. Inc. Gladys graduated in 1990 from Venezuela’s Catholic University Andres Bello School of Law with a Bachelor of Law. Under the Venezuelan government and Harvard University’s Latin American Scholarship Programme she was then awarded a full scholarship to pursue a Masters of Law degree in the United States. In 1993, she graduated from the University of Miami School of Law, Coral Gables, Florida with a Masters of Law in Comparative Law and a Master of Law degree in Ocean and Coastal Land. THE AMERICAS DUTY FREE & TRAVEL RETAILING



Djarum gives smoking

a creative edge

Djarum was the first to internationally market brown and black paper kretek

Over 60 years in the making, the company sits at the forefront of the industry with innovations in cigarette making


he clove cigarette, commonly called kretek, was developed in the late 19th century in the city of Kudus, Central Java. It was here that a man named H. Jamahri rubbed on his chest an ointment made of clove oil that provided temporary relief from recurring chest pains. Soothed by its warm yet refreshing sensation, Jamahri proceeded to blend a pinch of clove cuttings with tobacco so he could also feel the clove work in his chest when smoking the blend. And as legend has it, Jamahri’s chest pains disappeared and word of the mixture quickly spread throughout Kudus. Named kretek after the crackling sound of the cloves, Jamahri's mixture grew to be the backbone of his hometown’s economy and put Kudus on the map as the capital of kretek. Fostering the tradition of kretek making, Oei Wie Gwan established Djarum’s first workshop in 1951 in Kudus. With only 70 pairs of skillful hands and just enough handrolling equipment, Oei oversaw the selection and blending of cloves and tobacco. To ensure consistent quality, it was not uncommon to find Oei on the shop floor personally supervising each worker. After Oei’s passing in 1963, his sons Bambang and Budi Hartono took over the company.

Gaining devotees After the introduction of machine-rolling technology in 1970, Djarum’s growth catapulted. Today, Djarum is made of 86,000 employees and the factory in Kudus has a production capacity of 60 billion sticks per annum. In Indonesia, kretek dominates the cigarette market at 92%; the remaining is made of white cigarettes. Kretek also has a significant contribution to cigarette sales in neighboring countries, such as Malaysia and Brunei Darussalam. Today, the Djarum blend of kretek is available in South East Asia, Japan, Europe, North, Central and South America, the Middle East, South Africa and Australia.

Winning blends Djarum pioneered the production of low-tar, low-nicotine kretek with its Djarum Lights brand, which was especially created for the North American market. Djarum also pioneered the art of kretek cigarillos with its Djarum Cigarillos brand. Presently available in five continents, Djarum was the first to internationally market brown and black paper kretek as well as produce vanilla- and cherry-flavored kretek blends. Today, Djarum menthol, Djarum 218


Djarum was also the first to produce vanilla- and cherryflavored kretek blends

vanilla and Djarum cherry are enjoyed by consumers in some European countries. In addition, Djarum invented an advanced clove processing technology known as Superfine Clove. At home, Djarum Super is recognized as being among the most premium priced filtered kretek. Djarum Super is currently the brand most preferred by young kretek consumers in Indonesia. In Europe, Djarum Black and Djarum Special are the two most popular kretek brands.

A kretek legacy As the most recognized kretek brand to come out of Kudus, Djarum actively donates to the preservation and cultivation of the kretek museum located in the brand's hometown. Environment has also been a main concern of Djarum. One of its successes was mountain Muria reforestation in Kudus, Central Java. Once a barren land, Mountain Muria now has 30,000 trees. Other achievements include a plantation of 80,000 mango trees in Kudus. Since 1984, Djarum has granted scholarships to 5,000 students. Recipients from provinces throughout Indonesia are provided with funding to attend either private or public institutions in Indonesia. Since 1968, Djarum has become an active member of the sports community and funded the making of Indonesia’s future badminton world champions. PB Djarum, the Djarum badminton club in Kudus, is recognized as one of the strongest and most respected clubs in the country. Djarum’s successes have been consistent, the most significant occurring at the 1992 Barcelona Olympics—the winners of the gold, silver and bronze medals in the men’s singles were trained by PB Djarum as youths.



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New & Notable LIQUOR & TOBACCO Stoli Salted Karamel Agent: Stansfeld Scott Description: Stoli Salted Karamel represents the second launch in its portfolio of Sweet Indulgent flavors following Stoli Chocolat Razberi. A light saltiness draws out the buttery caramel flavor and is combined with Stoli’s premium vodka IAADFS booth: 201

Chila Orchata Company: Stansfeld Scott Description: A blend of Virgin Islands Rum, real dairy cream and a sprinkle of cinnamon. The ingredients create “a decadent, yet refreshing taste experience.” Served either on the rocks or mixed with sodas and other spirits IAADFS booth: 201

Beehive V.S.O.P Premium Reserve French Brandy Agent: Stansfeld Scott Inc. Description: Beehive V.S.O.P is a premium French brandy and has recently launched new packaging. The new and modern labels communicate Beehive’s premium positioning and feature details about Beehive’s history and brand identity IAADFS booth: 201

Midnight Moon Blackberry Moonshine by Piedmont Distillers Inc Agent: ALFA Brands Inc. Description: The moonshine is infused with whole pieces of blackberries for a sweet yet tart flavor. All of the flavor and color in the spirit is imparted from the fruit. Midnight Moon Blackberry Moonshine does not contain any extracts, color additives or artificial flavors. The spirit is triple distilled in a copper still and bottled in traditional moonshine jars at 100 proof IAADFS booth: 532

CONFECTIONERY Chupa Chups Pouch Bag Exotic Tropic Company: Perfetti Van Melle Global Travel Retail Description: The Chupa Chups Exotic Tropic collection contains 25 lollipops in banana & strawberry and coconut & pineapple flavors. The lollipops are covered with little spots that provide a different appearance and flavor IAADFS booth: 1105

Kit Kat Phone Box Tin Wonderful Pistachios Company: Paramount Farms International Description: A resealable, premium stand up pouch in Roasted & Salted and Salt & Pepper flavors of California pistachios. This package size, developed exclusively for travel retail, is large enough to be gifted or consumed as a shared snack IAADFS booth: 1316



Company: Nestlé International Travel Retail Description: Originally introduced for the UK travel retail market, the Kit Kat Phone Box Tin is now global. The 414g tin reminds buyers of Kit Kat's UK heritage with images of a British Guardsman carrying the union flag. It is designed for gifting, containing a slot to be reusable as a money box IAADFS booth: 1123


Metallic Stones Black

Hot Diamonds Jewellery Range Rocky Patel Special Edition Robusto by Rocky Patel Premium Cigars Agent: ALFA Brands Inc. Description: The special edition selection includes one of each of the following cigars: Decade 10th Anniversary, Fifteenth Anniversary, Sungrown, 1990 Vintage, Xen by Nish Patel and 1999 Vintage Connecticut IAADFS booth: 532

Company: Scorpio Worldwide Description: Hot Diamonds is a traditional fashion jewelry line that combines sterling silver and diamonds. New pieces have been added for 2013 IAADFS booth: 1031

Company: Kronos America, LLC Travel Retail USA & Caribbean Description: The Metallic Stones collection combines the lightness of the aluminum with Swarovski elements. The Metallic Stones are presented in unusual shapes IAADFS booth: 2209

Pocket Lamp Company: Troika Description: Troika’s new Pocket Lamp is designed in the shape of a modern pendant light which shines a bright LED beam, “a practical solution for the glove compartment and unlit keyholes” IAADFS booth: 739

Lip Smackers

Davidoff iD Company: Imperial Tobacco Description: Unique KS concept in two pack formats revealing “colorful pieces of art and the discovery of ideas.” This range is designed to make the luxury brand more accessible to smokers worldwide IAADFS booth: 713

Company: Scorpio Worldwide Description: “Inspired by Coca Cola, Fanta and Sprite, Lip Smackers adds a bit of fun to your beauty regime, they taste and smell great and they're even good enough to eat!” Sold in exclusive travel retail gifting tins of three or six units, Lip Smackers represent a value purchase merchandised in packaging from a well recognized brand IAADFS booth: 1031

Permanento Rose Gold Company: Aurora Description: A new made in Aurora pen, Permanento Rose Gold has a black graphite effect body with opaque finishing, while the top, clip and point are all accented by rose gold finishing

Sturmanskie Watches

Smarties Snacking Bag 180g Company: Néstle International Travel Retail Description: A new 180g snacking bag, containing 10 x 18g portion controlled sachets. For added uniqueness and play appeal, each bag incorporates a randomly colored moving propeller on the front. Each sachet also includes a special edition Orange flavored Smarties. IAADFS booth: 1123

Company: Scorpio Worldwide Description: The Sturmanskie brand, synonymous with space flight, was worn by the first astronaut in space back in 1961, Yuri Gagarin. It is designed for the everyday watch enthusiast as well as the avid collector of nostalgic timepieces IAADFS booth: 1031 THE AMERICAS DUTY FREE & TRAVEL RETAILING


The Last Word

Concessions, Liquor and Tobacco Editor of Americas Duty Free Ryan White hangs out with his dog Lacho before heading out to this year’s IAADFS exhibition in Orlando

Duty free

pet pictures Americas Duty Free gives industry executives the chance to shine the light on their most loyal companions

Around Executive Director of the Frontier Duty Free Association Laurie Karson’s house, it’s Otis the dog who calls all the shots

here’s no doubt that you can learn a lot about someone from their pet. For this year’s Last Word segment of the IAADFS issue, Americas Duty Free thought it would be nice to include some pictures of familiar industry faces with their animal companions. In addition to being welcomed home by family and friends, the below executives are greeted by a wagging tail or a soft purr. Enjoy!


Commercial Manager at London Supply Magdalena Ducos rescued her dog Pirata—the kisses in this picture are proof positive that he’s very appreciative

Guatemala-based independent consultant Karla Galindo Barth gives a much appreciated belly rub to her cat Eiky

Director of Communications at Patrón Spirits Greg Cohen gets some help answering our editorial questions from his blue-eyed buddy Duke Given the M&M’s handkerchief, it’s clear that Regional Marketing Manager for William Grant Paige Parness has taught her dog Mia a thing or two about branding Overseas Brand Department Manager for KT&G Jihyun Choi’s dog is named Tahn, but we just call him cute

Marketing Manager at Americas Duty Free Kim Carrera and her dog Billie; we’re convinced she’s a teddy bear but Kim swears Billie is a living, breathing dog

Vice President of Importations Guay Ltée Justin Guay and his dog Ashton discuss what we’re assuming is a rabbit or a cat just out of frame

Associate Editor of Americas Duty Free Melissa Silva takes time off from a deadline to hang out with her best friend Eliot

Amanda Dolotowicz, Constellation Brands’ Business Development Manager – Travel Retail, shares some quality time at home with her dog Callie