Americas vol23 no3

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JUNE 2013 • VOL 23, NO 3

ASUTIL 2013 THE RUM THAT ISN’T JUST AGED; IT’S AGED IN SELECT CASKS RESERVED FOR THE WORLD’S FINEST SINGLE MALT.

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r Letter from ASUTIL

Welcome to the

2013 ASUTIL conference!

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t’s no secret that the South American travel retail market has been growing significantly over the last few years, and it continues to be a very attractive region for duty free suppliers, operators and airport authorities. As the region has grown both in terms of sales and the quality of offers on hand, so has ASUTIL. I think one of the organization’s greatest successes has been in becoming trusted by the industry at large. By this I mean that attendees know exactly what they’re going to get when they take part in the event— namely top-notch speakers, lively discussions with major players in South American travel retail during the conference portion and social events, and the opportunity to network in a more relaxed setting than is generally available at many other industry events.

As we all know, the growth of any organization presents its own set of challenges, but the distinctly South American flavor of the ASUTIL conference will not change. I’m a firm believer that the close-knit ambiance attendees experience at ASUTIL is one of the reasons why

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’d like to take this opportunity to welcome all attendees to the 2013 ASUTIL conference in Punta Cana, Dominican Republic. We have a wonderful speaker lineup planned that includes thought-provoking presentations of particular relevance to the travel retail industry in South America, including plenty of hard data to back up the discussions.

I’m pleased to note that ASUTIL is as vibrant as ever, and this year we’ve broken another record in terms of attendance. The format of this year’s show remains very much the same as in years past, with the conference portion interspersed with ample networking time. Of course, we’ll also have occasion to enjoy a number of social activities, including the Reception and Opening Cocktail sponsored

by WDFG, a Gala Dinner sponsored by Dufry and a very special Saturday activity, which has become a very enjoyable mainstay of ASUTIL events.

the conference has become so popular. Similarly, in terms of geography our focus will continue to be on South America. Having said this, we also feel it’s important to cater to all attendees. Two great examples of this would be last year’s wonderful venue of Iguazú Falls, Argentina and this year’s sunny location of Punta Cana, Dominican Republic.

I’d like to take this opportunity to thank Secretary-General of ASUTIL José Luis Donagaray and his tireless staff. They outdo themselves every year in continually upping the quality of speakers and making sure that relevant and engaging topics are discussed.

Lastly, I’d like to touch on the theme of this year’s conference, “Creating New Paths.” South America is a growing region and it’s important that we move out of our comfort zone a little bit and discover news ways of doing things. The speakers at this year’s event all have some amazing ideas about how we can continue growing as a region and as an industry. I look forward to opening new doors with you at this very exciting time in South American travel retail’s history.

Sincerely,

José Carlos Rosa President, ASUTIL The region continues to grow, and this is great news. However, growth isn’t at the levels that it was in previous years. Far from being a negative, I believe this presents us with a wonderful opportunity to be even more active in “Creating New Paths” for ourselves in South America.

Of course, in addition to planning the annual conference, ASUTIL remains committed to closely monitoring possible threats to the travel retail channel in South America, including tobacco legislation, LAG restrictions and much more. Indeed, we continue to work with members to address their concerns and work toward achievable solutions.

I’d like to thank you very much for attending the 2013 conference.

I look forward to speaking with you during the course of the event, where we will celebrate the past year’s successes and get down to the business of ensuring continued growth for the coming year.

Sincerely,

José Luis Donagaray Secretary-General, ASUTIL

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

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Letter from ASUTIL

¡Bienvenidos a la Conferencia ASUTIL 2013!

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o es un secreto que el mercado minorista de viajes de Suramérica ha crecido de forma significativa en los últimos años, y sigue siendo una región muy atractiva para los proveedores y operadores duty free, así como para las autoridades aeroportuarias. Y en la medida que la región ha crecido en términos de ventas y calidad de las ofertas disponibles, también lo ha hecho ASUTIL. Creo que uno de los más grandes éxitos de la organización ha sido ganarse la confianza de la industria en general.

Con esto quiero decir que los asistentes saben exactamente lo que van a recibir cuando participen en el evento: ponentes de primera línea, dinámicos intercambios con importantes factores del sector minorista de viajes suramericano durante la porción de la conferencia y en los eventos sociales; y la oportunidad de tener contactos profesionales en un ambiente más relajado, que está disponible usualmente en muchos otros eventos de la industria.

Como todos sabemos, el crecimiento de cualquier organización trae consigo sus desafíos, pero el sabor inconfundiblemente suramericano de la Conferencia de ASUTIL no cambiará. Creo firmemente que el ambiente de unidad que perciben los asistentes a ASUTIL es una de las razones por las cuales la conferencia es tan popular. De forma similar y geográficamente hablando, seguiremos enfocados en Suramérica. Dicho esto, también consideramos importante agasajar

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uiero aprovechar esta oportunidad para darles la bienvenida a todos los participantes de la Conferencia ASUTIL 2013 en Punta Cana, República Dominicana. Este año contamos con un magnífico grupo de ponentes, que llevarán a cabo presentaciones reflexivas de particular importancia para el sector minorista de viajes en Suramérica, incluyendo muchos datos reales y concretos para sustentar sus análisis.

Me complace destacar que ASUTIL sigue tan vibrante como siempre, y este año hemos roto otro récord en términos de asistencia. El formato del evento de este año sigue siendo en su mayoría el mismo que en los años anteriores, y la porción de la conferencia está combinada con abundante tiempo para contactos profesionales. Por supuesto, también tendremos la oportunidad de disfrutar varias actividades sociales como la Recepción y el Coctel de Bienvenida, patrocinado por Dufry, así como la actividad especial del sábado, que se ha convertido en un agradable rasgo distintivo de los eventos de ASUTIL. La región sigue creciendo, lo cual es buena noticia. Sin embargo, el crecimiento no se está produciendo a los mismos niveles de años

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a todos los participantes. Dos ejemplos notables de esto fueron la ubicación de la conferencia del año pasado en las maravillosas Cataratas del Iguazú en Argentina; y la de este año 2013 en Punta Cana, un lugar favorecido continuamente por el sol en la República Dominicana.

Quiero aprovechar esta oportunidad para expresarle mi agradecimiento al Sr. José Luis Donagaray, Secretario General de ASUTIL y a su incansable equipo, quienes se esfuerzan cada año en elevar continuamente la calidad de los ponentes, y en garantizar que se traten temas importantes y fascinantes.

Por último, quiero explicar el tema de la conferencia de este año: “Crear nuevos caminos”. Suramérica es una región en crecimiento, y es importante que salgamos un poco de los caminos trillados, para descubrir nuevas formas de hacer las cosas. Los ponentes del evento de este año tienen sorprendentes ideas sobre cómo podemos seguir creciendo como región y como industria. Espero abrir nuevas puertas con la ayuda de ustedes, en este momento tan vital de la historia del sector minorista de viajes suramericano.

Cordialmente,

José Carlos Rosa Presidente de ASUTIL

anteriores. Pero creo que esto, lejos de ser una situación negativa, nos proporciona una maravillosa oportunidad de ser aún más activos en “Crear nuevos caminos” para nosotros mismos en Suramérica.

Naturalmente, además de planificar la conferencia anual, ASUTIL sigue comprometida con la atenta observación de posibles amenazas contra el canal minorista de viajes en Suramérica, como las leyes contra la venta de tabaco y las restricciones contra los líquidos, aerosoles y geles (LAG) a bordo de los aviones, entre otras. Por supuesto, seguimos colaborando con los miembros para darles respuesta a sus inquietudes, y llegar a soluciones alcanzables.

Quiero agradecerles a todos su asistencia a la Conferencia 2013.

Espero hablar con ustedes durante el curso del evento, donde celebraremos los éxitos del año pasado, y nos dedicaremos a garantizar un crecimiento estable para el año entrante.

Un cordial saludo,

José Luis Donagaray Secretario General de ASUTIL

THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2013

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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, 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.

Asking the tough questions espite subdued growth in recent months, Latin American travel retail is still a bright spot when the industry is considered on a worldwide scale. Will this performance continue? Perhaps more importantly, will growth go back to the impressive levels that we saw just a couple of years ago? Of course, no one can say for sure, but the Olympics and FIFA World Cup heading to Brazil in 2014 seem to bode well for the industry in South America.

Indeed, we know Brazilians are world travelers and fervent spenders when the offer is right, but soon the world will be converging on Brazil— an entirely new situation when you consider the main driver behind the growth in South American travel retail over the last few years. As we look forward to the next 18 months, we would do well to consider whether visitors to the country will be spending at the level that Brazilians do when they themselves travel. More to the point, we should be thinking about how we as an industry can encourage traveling sports fans in Brazil to spend their hard-earned money at the airport or the border.

Fortunately for us, it appears that ASUTIL has given these questions some serious thought.

We’re sure to be able to glean some very useful information from Manager of Customer Marketing at Mondelez International Anna Szentivanyi’s presentation, titled “Delighting Travelers.” Furthermore, Global COO and President – International of Patrón Spirits John McDonnell will be giving a talk on “Creating New Paths to Opportunity,” another very pertinent topic deliv-

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ered by a man who knows a thing or two about seizing—and creating—opportunity.

Similarly, Partner and Co-founder of m1ndset Peter Mohn has impressed me personally at other industry events with both his insights on consumer behavior and his willingness to tackle some difficult questions, and this year’s ASUTIL presentation should be no different. Finally, it’s difficult to objectively assess our current lot and simultaneously look to the future without the help of experts whose interests lay outside of the duty free industry. As such, “Latin America: Continent of the XXI Century,” presented by Georgetown University Professor Arturo Valenzuela, will with any luck shake up some of our necessarily biased opinions about the industry and provide muchneeded fodder for conversations on where we’re collectively headed.

Most suppliers, operators and distributors that I’ve spoken to personally feel the future is bright for Latin American travel retail; it is, understandably, difficult for them to say just how bright.

One thing we can say with relative certainty is that all eyes will be on Brazil in 2014. How many of those eyes are tempted by our offering is largely, it seems, up to us. I’m looking forward to making the most of our week in Punta Cana and preparing together for the wave that is set to crest just months from now.

Subscriptions: $200 for one year. Art and photographs will not be returned unless accompanied by return postage. The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or editor. June 2013, Vol. 23, No. 3.

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 www.dutyfreemagazine.ca PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca EDITORIAL DEPARTMENT EDITOR Hibah Noor hibah@dutyfreemagazine.ca CONCESSIONS, LIQUOR & TOBACCO EDITOR Ryan White ryan@dutyfreemagazine.ca ASSOCIATE EDITOR Melissa Silva melissa@dutyfreemagazine.ca ART DIRECTOR Patrick Balanquit patrick@globalmarketingcom.ca CONTRIBUTORS Andrew Brooks ADVERTISING SALES

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

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

THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2013

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Letter from the Editor

Preguntas difíciles pesar del modesto crecimiento logrado en los últimos meses, el sector minorista de viajes latinoamericano no ha perdido su esplendor cuando se considera la industria a una escala mundial. ¿Continuará este nivel de rendimiento? Y otra pregunta más importante aún: ¿Volverá el crecimiento a las impresionantes dimensiones de las que fuimos testigos hace sólo un par de años? Por supuesto, aunque nadie puede asegurarlo, las Olimpiadas y la Copa Mundial de la FIFA que se llevarán a cabo en Brasil durante el 2014, son eventos promisorios para la industria en Suramérica.

Sabemos que los brasileños viajan por todo el mundo y gastan con entusiasmo cuando la oferta es adecuada, pero también que, en breve, el mundo entero se dará cita en Brasil, una situación totalmente nueva, si consideramos el principal propulsor tras el crecimiento en el sector minorista de viajes suramericano en los últimos años. Cuando avizoramos los próximos 18 meses, sería apropiado tener en cuenta si los visitantes al país suramericano tendrán el mismo nivel de gastos de los brasileños cuando viajan. Concretamente, deberíamos pensar en qué forma nosotros, como industria, podemos estimular a los amantes del deporte que viajan a Brasil a gastar, ya sea en el aeropuerto o en la frontera, ese dinero que han ganado con tanto esfuerzo.

Por suerte para nosotros, es evidente que ASUTIL ha analizado exhaustivamente esas preguntas. Estamos seguros que obtendremos una información muy valiosa con la presentación de Anna Szentivany, Gerente de Mercadotecnia de Clientes de Mondelez International, titulada Delighting Travelers (“Deleitando a los viajeros”). Y lo mismo esperamos de la ponencia Creating New Paths to Opportunity (“Crear nuevos caminos a la oportunidad”) de John McDonnell, Director de Operaciones y Presidente de la División Internacional de Patrón Spirits. Otro tema muy relevante, tratado por un hombre que conoce a fondo lo que es aprovechar— y crear—oportunidades.

Del mismo modo, Peter Mohn, Socio y Co-fundador de m1ndset, me impresionó personalmente en otros eventos del sector, tanto por sus conocimientos sobre la conducta del cliente como por su disposición para responder preguntas difíciles, y su presentación de este año en ASUTIL no deberá ser diferente. Finalmente, es difícil evaluar con objetividad nuestro propio campo y vislumbrar simultáneamente el futuro, sin la ayuda de expertos cuyos intereses son diferentes a los del sector duty free. Atendiendo a esto, la ponencia Latin America: Continent of the XXI Century (“Latinoamérica: Continente del siglo XXI”) a cargo de Arturo Valenzuela, profesor de la Universidad de Georgetown, podría cambiar radicalmente y con algo de suerte algunas de nuestras opiniones necesariamente prejuiciadas sobre la industria; y proporcionar la tan necesaria motivación para las conversaciones acerca de adónde nos dirigimos colectivamente.

La mayoría de los proveedores, operadores y distribuidores con los que he hablado personalmente, creen que el futuro es brillante para el sector minorista de viajes latinoamericano. Pero les resulta difícil (y es algo comprensible) decir en qué medida. Sin embargo, podemos afirmar con relativa certeza que todos los ojos estarán dirigidos hacia Brasil en el 2014. Aparentemente, y en gran medida, depende de nosotros cuántos de esos ojos estarán tentados por nuestra oferta. Espero aprovechar al máximo nuestra semana en Punta Cana, y prepararnos juntos para recibir esa ola lista para alcanzar su máxima altura en cuestión de unos meses.

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Saludos cordiales, Ryan White Editor de Concesiones, Licores y Tabaco ryan@dutyfreemagazine.ca 8

THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2013

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JUNE 2013 • VOL 23, NO 3

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TOP STORY – SIÑERIZ

Adapting to change Siñeriz keeps pace with the boom in border stores in Rivera, Uruguay with a new 13,000-squaremeter location and plans to modernize its other store on the city’s main street

Saber adaptarse a los cambios Siñeriz se mantiene a tono con el florecimiento de las tiendas de frontera en Rivera, Uruguay, con una nueva instalación de 13,000 metros cuadrados, y planes de modernizar otro establecimiento en la calle principal de la ciudad

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LATIN AMERICA REPORT

Changing landscapes

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Despite subdued growth in Latin American travel retail as compared to recent years, operators continue investing in their businesses and see a bright future ahead for the region

Un paisaje cambiante A pesar del modesto crecimiento en el sector minorista de viajes latinoamericano en comparación con años recientes, los operadores siguen invirtiendo en sus negocios, y avizoran un futuro brillante para la región

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DUFRY

Profitable growth Dufry’s strong performance in 2012 underscored the operator’s commitment to focusing on profitability and emerging markets

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AUTOGRILL

Saving grace Travel retail buoys Autogrill’s first quarter results as Autogrill-owned World Duty Free Group plans renovations in Mexico’s Cancun Airport

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LONDON SUPPLY

Gearing up London Supply’s sales skyrocket in the first quarter of 2013 as the operator prepares to double the space of its Iguazú store early next year

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MONALISA

Embracing change With renovations and service changes underway, Monalisa is working towards creating the ultimate customer experience on the border with Brazil

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AVIATION DAY CENTRAL AMERICA

Aviation has its day IATA and ALTA host inaugural Central America Aviation Day, emphasize aviation’s economic role, need to upgrade infrastructure

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From Mexico to the world Desde México al mundo Con un incremento en las cifras de pasajeros y renovaciones en las terminales, ASUR está dando pasos agigantados en la aviación latinoamericana en el Aeropuerto de Cancún

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Aviancataca signs agreement with CFM valued at US$2.7 billion LAN Airlines now offers the widest selection of entertainment on flights to and from South America Guadalajara International Airport focuses on better connectivity within Mexico AMR Corporation reports April 2013 revenue and traffic results Avianca Holdings successfully debuts in the international capital markets

YVES SAINT LAURENT

YSL hits high gear in travel retail

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BEAUTY NEWS Clarins refines its approach to Latin America Repechage brings the sea to duty free Beauty2Market continues to expand L’Occitane gives back to move forward

SHISEIDO

Service for success With a new skincare line and a new target demographic, Shiseido stays focused on service

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CONFECTIONERY NEWS Hershey’s mixes it up

Perfetti gains presence

GUEST WRITER

Accelerating category growth in the turbulent global travel retail market Alan Brennan, Customer Marketing Manager, Nestlé International Travel Retail

AIRLINE NEWS

For 2013, Yves Saint Laurent accelerates its approach to key markets and rolls out new products

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ASUR

With increasing passenger numbers and terminal renovations, ASUR is making great strides in Latin American aviation with Cancun Airport

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FLO

Going with the FLO The FLO fragrance atomizer brand is ICG’s key to new markets

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MARCOLIN

Made in the shade Marcolin builds its presence in the Americas

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SUPPLIER NEWS T-Tech by Tumi introduces design-inspired accessories Victorinox stands the test of time

GUEST WRITER

Innovation is key Diane Buchanan, Global Travel Retail Region Manager Americas and Caribbean

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Global travel retail excellence www.worlddutyfreegroup.com

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PERNOD RICARD

The leading edge From exclusive flavors to eye-catching packaging and unique collaborations, ABSOLUT continues to lead the vodka category in innovation and commitment to the duty free channel

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SPECIAL REPORT: TEQUILA

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FRATERNITY SPIRITS

Gaining momentum In addition to its popular range of Corralejo tequilas, Fraternity Spirits gains ground in duty free with a host of new launches highlighting quality and craftsmanship

The heat is on

SCORPION MEZCAL

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Depth and breadth Scorpion Mezcal introduces travel retail to a spirit with a surprisingly robust history that is targeted specifically at lovers of high-end liquids

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Smooth operator A new, extra-smooth Herradura limited edition release spearheads Brown-Forman’s plans for the brand across the Americas

TEQUILA REPORT

Activity heats up in the popular tequila subcategory as suppliers vie for a piece of the premium pie in travel retail

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BROWN-FORMAN

TEQUILA COCKTAILS

Some of that Latin flavor

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Americas Duty Free gives readers a number of easy-to-make cocktails using one of the Americas’ most versatile spirits—tequila

TEQUILA NEWS Tequila Arraigo secures new listings in Uruguay, runs promotion with Shopping China Frida Kahlo Tequila builds domestic distribution in lead-up to 2014 push into travel retail Patrón Spirits International appoints Stephane Gonzalez Duty Free Manager for the Americas

DIAGEO GTME AMERICAS

A view toward innovation Diageo GTME Americas, informed by robust consumer-focused research, aims to grow ahead of the spirits category in general through a focus on innovation across its portfolio

An Eye For Details Cross Readers

Conventional Lens

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Cross Aspheric Lens

Aspheric Lenses Aspheric lenses are thinner and lighter than conventional lenses with a wider field of vision

Contact us for our Innovative Travel Retail Solutions David Ferreira dferreira@cross.com

THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2013

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.com DRINK WITH CARE. STOLICHNAYA® Premium vodka. 40% Alc./Vol. 100% Grain Neutral Spirits. © 2013

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LIQUOR NEWS Bacardi launches Baron Otard in Americas travel retail Brugal launches new variants, packaging at IAADFS 2013 Russian Standard Vodka builds on travel retail success FRUTTA Winespirit targets Americas travel retail White Gold targets worldwide consumers with redesigned “True Original” bottles SPI Group gets sweet and spicy Beam Inc launches Courvoisier Le Voyage de Napoleon in North American duty free Bottega helps raise over US$12,000 to help Breast Health International Savary secures listings with Dubai Duty Free

BOTRAN

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Staying power

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Botran has been crafting high-end Guatemalan rums for generations and now brings the same dedication to its push into worldwide travel retail

TOBACCO NEWS Villiger sees strong performance in Argentina, looks to 2014 for increased growth in Brazil Horizon Premium Brands targets value-conscious consumers who still want high-quality products

TAX FREE WORLD ASSOCIATION ASIA PACIFIC REVIEW

TFWA Asia Pacific Conference and Exhibition closes on a high note Innovation and an ability to roll with the punches has kept Zippo on top of its travel retail game

New perspectives Cigar companies are pulling out all the stops to give consumers a fresh take on some of the world’s best-loved brands

Rising above Innovation and an ability to roll with the punches has kept Zippo on top of its travel retail game

CIGAR REPORT

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ZIPPO

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NEW & NOTABLE Vintage Toro Tub Green Tea Mints

Tous Man Intense

Sencha

JAPAN TOBACCO INTERNATIONAL

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Redefining retail In addition to Camel’s 100th anniversary celebrations in Latin America, JTI rolls out its innovative retailing strategy in the Americas with International Shoppes

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THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2013

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NATURALLY IRRESISTIBLE

NEW FLEUR DE FIGUIER FRESH FRAGRANT WATER

WWW.ROGER-GALLET.COM

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Top Story – Siñeriz

The Spirits category was identified as an area where Siñeriz could up the ante in terms of the offering and creating theatre in-store

Adapting to change Siñeriz keeps pace with the boom in border stores in Rivera, Uruguay with a new 13,000-square-meter location and plans to modernize its other store on the city’s main street RYAN WHITE BY

iñeriz has been a major player in the world of travel retail in Uruguay’s border city of Rivera for the last 25 years.

The company recently opened a new 13,000-squaremeter store just off Rivera’s main street, and Project Leader Rafael Parodi tells Americas Duty Free that Brazilians crossing the border to purchase goods will find something truly different in the new location.

Indeed, Parodi notes that the response to the new Siñeriz Shopping center has already been beyond expectations. “Sales have increased in the first quarter of 2013 as compared to the same period last year, and we attribute a lot of this to our new store,” he explains. “It’s five or six times the size of our other store, which is located on Rivera’s main street.”

Of course, in addition to the size of Siñeriz Shopping, Parodi notes that the product mix and the layout is considerably different than what the company previously offered. Indeed, after an in-depth analysis of duty free stores in the area, he likes to think of the new store as something apart from what is currently on offer by any operator.

In addition to the retail area, which measures 10,000 square meters, Siñeriz Shopping contains a food court and a move theater contained within a larger entertainment space that adds an additional 3,000 square meters to the location.

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Different is good In terms of differentiating itself from the myriad other duty free stores in the city, Siñeriz first analyzed other operators’ offerings with the clear goal of ensuring a greater selection in key categories such as P&C and Spirits. Other categories where Parodi felt Siñeriz

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The façade of Siñeriz’s brand new, 13,000-squaremeter shopping complex in Rivera, Uruguay

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Top Story – Siñeriz

The sprawling new Siñeriz complex offers something for essentially every taste and budget

could add value included Toys, Foodstuffs and Luggage.

“In addition to identifying key categories where we felt we could offer something different, we also noticed that many of the stores in Rivera lacked a certain ambiance of elegance,” Parodi notes. “The challenge from that point was to create a store that sophisticated shoppers would feel good about being in while at the same time not alienate shoppers that traditionally frequent the stores on the main street, which are fairly different in terms of ambiance than the newer, more modern locations that have cropped up in the area.”

With the above in mind, Siñeriz set about to create two different sections in the new store, one that offers popular brands across categories and another that contains a more selective, high-end product mix. The luggage department, for example, totals about 100 square meters—clearly enough space to offer something for essentially any taste or budget. P&C also received this treatment, with offerings running the gamut from high-end fragrances and cosmetics to shampoos, creams and other toiletries.

“Our P&C section is a great example of our original objectives being met,” says Parodi. “We’re very competitive with other stores that are offering high-end fragrances, but at the same time we’ve got other offerings in the same category that aren’t seen as often in duty free. We’re taking what we know works from our quarter century of experience and also adding some fresh offerings to the mix.

“We wanted people to enter our new store and realize that not all stores in Rivera are created equal,” he continues. “Despite the competition, you can still offer a different shopping experience.”

Additionally, the design of the store is anything but accidental.

Themed areas can be found throughout the sprawling complex, with unique elements peppering the location. One example that Parodi gave us was a basketball court in the sporting goods section.

Indeed, it’s clear that Parodi’s goal of being “different in a good way” is something that the entire Siñeriz team took to heart when designing the store.

Knowing that sales have increased over last year, we asked Parodi about what categories have been the most successful, and he noted that Siñeriz’s concentration on offering more variety in key categories has paid off. Toys, foodstuffs and P&C have all performed particularly well since the store’s opening.

The Sporting Goods section; as a means of differentiating itself, Siñeriz actually installed a basketball court in the area

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THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2013

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Discover the Duty Free World

DUTY

Paraguay, Sudamérica

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FREE Mannah Duty Free

Aeropuerto Internacional Silvio Pettirossi Asunción - Paraguay Phone: (+595 21) 645 715 / 645 753 Aeropuerto Internacional Guaraní Ciudad del Este - Paraguay Phone: (+595 64) 421 075 dutyfree_asu@mannah.com.py

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Top Story – Siñeriz

“The performance of these categories indicates to us that our goal of differentiating our offering from other stores was on target,” he explains. “On the other hand, what we’ll call the classic P&C products—fragrances, makeup and so on—have also performed very well.

We’ve added brands such as Shiseido and Chanel, so we’re very aware that it’s important to keep the luxury P&C offering competitive.”

Glass half full Of course, with all the work put into the impressive new location, it’s clear that Siñeriz is bullish when it comes to business on the border with Brazil, despite concerns that the robust growth experienced over the last few years may be tapering off somewhat. Parodi sees the situation, at least on the Uruguayan side of the border, as being largely related to an increase in competition.

“I think that what has happened is that there a number of new stores on the border with Brazil,” he explains. “Brazilians are still visiting the border, but obviously they now have many more options with regard to where to shop than they did just a few years ago.”

Given the increasing number of stores in Rivera, Parodi says that sales have been dispersed among a number of operators. He gives DFA/UETA as an example, noting that at one point they had a single store in Rivera, whereas now there are four.

“Despite this issue, it doesn’t mean that Brazilians have stopped traveling to Uruguay and purchasing,” Parodi explains. “The middle and upper class are now buying with a variety of players instead of sticking with just a couple of stores. Given that we’ve really analyzed the current situation and adapted accordingly, we feel we’ve got a great proposition going forward.”

Furthermore, Parodi notes that developments that may affect one country negatively sometimes yield positive results for other countries.

He gives the example of inflation in Brazil and the resulting devaluation of the Real. This, he says, has made the tax-free offering in Rivera even more attractive to Brazilian shoppers looking for a deal, luxury items or both. “I think we’re very well positioned in terms of offering what the Brazilian middle class traveler wants,” Parodi says.

Going forward Siñeriz’s big objective for the rest of the year is to renovate its first store, located on the main street in Rivera. The location currently measures 1,400 square meters and by the time work is completed another 600 square meters will be added. The objective, says Parodi, is to bring the location up to the standard of the new store in terms of branding and design.

Importantly for Siñeriz, the concept will be similar to that of the new store, with offerings that will suit both its traditional clients on the main street and those looking for higher end, more exclusive products. “In this manner,” says Parodi, “we’ll be able to keep our current customers while still offering something unique to more selective shoppers who come to the city with the aim of making luxury purchases.”

The operator is currently working on the layout of the store— which features cleaner lines of sight and larger pathways—and expects to begin work in July. The project should take between six to eight months to complete.

“We've been a significant player in Rivera for quite some time now,” says Parodi, “and as a result of the new stores popping up in the city it's important to us to bring our first store up to date.

“It's really about continuing to offer shoppers the highest quality experience,” he concludes. “Considering the popularity of the store, we’re very much looking forward to giving it a look and feel befitting of its stature. If we've learned anything over the last two and a half decades, it's that analyzing and adapting is vital to our continued success.”

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Confectionery and the larger Foodstuffs category have performed well, largely as a result of making sure a wide variety of products are available

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Top Story – Siñeriz

Saber adaptarse a los cambios Siñeriz se mantiene a tono con el florecimiento de las tiendas de frontera en Rivera, Uruguay, con una nueva instalación de 13,000 metros cuadrados, y planes de modernizar otro establecimiento en la calle principal de la ciudad

iñeriz ha sido un participante notable en el sector minorista de viajes en la ciudad fronteriza de Rivera, Uruguay, en los últimos 25 años. Recientemente, la compañía inauguró una nueva tienda de 13,000 metros cuadrados cerca de la calle principal de Rivera, y Rafael Parodi, líder del proyecto, explica a Americas Duty Free que los brasileños que cruzan la frontera para comprar mercancías encontrarán algo realmente diferente en el nuevo establecimiento.

Parodi destaca que la respuesta al nuevo centro comercial Siñeriz ha superado las expectativas. “Las ventas se incrementaron en el primer trimestre del 2013, en comparación con el mismo período del año pasado, algo que atribuimos en gran medida a esta nueva tienda”, explica.

“Es cinco o seis veces más grande que la otra tienda, ubicada en la calle principal de Rivera”.

Por supuesto, además de la extensión de Siñeriz Shopping, Parodi añade que la combinación de productos y la disposición son considerablemente diferentes de lo que ofrecía previamente la compañía.

Y efectivamente, luego de un análisis exhaustivo de las tiendas duty free de la zona, estima que la nueva tienda es algo aparte de lo que cualquier operador está ofreciendo actualmente.

Además del área comercial, con una extensión de 10,000 metros cuadrados, Siñeriz Shopping cuenta con una zona de restaurantes y un cine contenido en un espacio de entretenimiento de mayor extensión, que incorpora otros 3,000 metros cuadrados a la instalación.

S

Es bueno ser diferente A la hora de diferenciarse de las numerosas tiendas duty free existentes en la ciudad, Siñeriz analizó primeramente las ofertas de otros operadores, con el claro propósito de garantizar una mayor selección en categorías claves como Perfumería y Cosméticos, y Espirituosos. Además, entre las otras categorías que Parodi consideró que podría incorporar estaban: Juguetes, Alimentos y Equipaje.

“Aparte de identificar categorías claves en las que consideramos que podíamos ofrecer algo diferente, también detectamos que gran parte de las tiendas en Rivera carecían de un cierto ambiente de elegancia”, explica Parodi. “El reto a partir de ese punto era crear una tienda en la que se sintieran bien los compradores sofisticados, sin alienar al mismo tiempo a los que frecuentan tradicionalmente las tiendas de la calle principal, bastante diferentes en términos de ambiente que las insta26

laciones más recientes y modernas que han surgido en la zona”.

Con todo lo anterior en mente, Siñeriz se dispuso a crear dos secciones diferentes en la nueva tienda: una que ofreciera marcas populares en todas las categorías; y otra que ofreciera una combinación más selectiva y costosa. Por ejemplo, el Departamento de Equipaje, ocupa unos 100 metros cuadrados, un espacio más que suficiente para ofrecer esencialmente de todo para cualquier gusto o poder adquisitivo. Por su parte, Perfumería y Cosméticos también recibió ese tratamiento, con ofertas que abarcan una amplia gama, desde fragancias y cosméticos de lujo, a champús, cremas y otros artículos de tocador.

“Nuestra sección de Perfumería y Cosméticos es un buen ejemplo del cumplimiento de nuestros objetivos originales” asegura Parodi. “Somos muy competitivos con otras tiendas que ofrecen fragancias caras, pero al mismo tiempo tenemos otras ofertas en la misma categoría, que no se ven con tanta frecuencia en tiendas duty free. Estamos utilizando lo que nuestra experiencia de un cuarto de siglo nos dice que funciona, e incorporando algunas ofertas nuevas a la combinación”.

“Queríamos que los compradores entraran a nuestra nueva tienda, y se dieran cuenta de que no todos los establecimientos en Rivera son lo mismo”, prosigue Parodi. “A pesar de la competencia, siempre se puede ofrecer una experiencia de compras diferente”.

Además, el diseño de la tienda no es nada parecido a lo accidental. En el amplio complejo existen áreas temáticas, y la instalación tiene abundancia de elementos originales. Un ejemplo que nos da Parodi es la existencia de una cancha de baloncesto en la sección de artículos deportivos. Por supuesto, está claro que el propósito de Parodi de “ser diferentes de una forma apropiada” es algo que el equipo de Siñeriz siguió al pie de la letra en el diseño de la tienda.

Como sabíamos que las ventas se habían incrementado en relación con el año pasado, le preguntamos a Parodi sobre las categorías más exitosas, y éste destacó que la concentración de Siñeriz en ofrecer una mayor variedad en categorías claves ha dado resultado. Los juguetes, alimentos, y perfumería y cosméticos han tenido un rendimiento particularmente bueno desde la apertura de la tienda.

“El rendimiento de estas categorías nos indica que nuestro propósito de diferenciar nuestra oferta de las demás tiendas fue acertado”, explica. “Por otra parte, lo que consideramos como productos clásicos de perfumería y cosméticos—fragancias, maquillaje y otros—también han experimentado un buen rendimiento. Hemos incorporado

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Top Story – Siñeriz

Siñeriz made a point of analyzing what was currently on offer at the border before tweaking its product mix to offer tried and true favorites plus a good selection of new products

marcas como Shiseido y Chanel, por lo que estamos muy conscientes de que es importante mantener competitiva la categoría de perfumería y cosméticos de lujo”.

Negativo para unos, positivo para otros Por supuesto, con todo lo invertido en esta nueva e impresionante instalación, es obvio que Siñeriz es optimista en lo relacionado con los negocios en la frontera con Brasil, a pesar de las preocupaciones de que la robusta experiencia de crecimiento de los últimos años podría disminuir hasta cierto punto. Parodi está consciente de que la situación, al menos en la parte uruguaya de la frontera, está relacionada en gran medida con un aumento en la competencia.

“Creo que la causa está en la existencia de numerosas tiendas nuevas en la frontera con Brasil”, explica. “Los brasileños siguen visitando la frontera, pero, obviamente, ahora tienen más opciones de tiendas, en comparación con lo que encontraban hace algunos años”.

Debido al aumento de la cantidad de tiendas en Rivera, Parodi afirma que las ventas se han repartido entre varios operadores, y cita como ejemplo a DFA/UETA, destacando que de inicio tenían una sola tienda en Rivera, y ahora cuentan con cuatro.

“A pesar de esta situación, esto no quiere decir que los brasileños han dejado de viajar a Uruguay y comprar”, añade Parodi. “Las clases media y alta están comprando en una amplia gama de operadores, en vez de hacerlo en sólo un par de tiendas. Debido a que hemos analizado realmente la situación actual y nos hemos adaptado como corresponde, estimamos que contamos con una gran proposición en progreso”.

Asimismo, Parodi destaca que los acontecimientos que pudieran afectar negativamente a un país implican en ocasiones resultados positivos para otro, y da el ejemplo de la inflación en Brasil y la devaluación resultante del real. Según él, esto ha hecho que la oferta libre de aranceles en Rivera sea mucho más atractiva para los compradores brasileños que buscan ofertas, artículos de lujo, o ambos inclusive.

“Creo que estamos muy bien ubicados en términos de ofrecer lo que quieren los viajeros brasileños de clase media”, asegura Parodi.

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A toda marcha El principal objetivo de Siñeriz para lo que resta de año es renovar su primera tienda, ubicada en la calle principal de Rivera. El establecimiento ocupa actualmente 1,400 metros cuadrados, y cuando se concluya la renovación, tendrá otros 600 metros cuadrados más. El propósito, según Parodi, es que el establecimiento esté acorde con el estándar de la nueva tienda, en lo tocante a identidad de marca y diseño.

El concepto será similar al de la nueva tienda (un aspecto de vital importancia para Siñeriz), con ofertas que atraigan tanto a los clientes tradicionales de la calle principal, como a quienes buscan productos de lujo más exclusivos. “De esta forma”, añade Parodi “podremos mantener a nuestros clientes actuales, y ofrecer simultáneamente algo único a los compradores más selectivos que vienen a la ciudad con el propósito de hacer compras de lujo”.

El operador está enfrascado actualmente en la estructura de la tienda—que contará con líneas visuales más despejadas y pasillos más extensos—y espera concluir la remodelación en julio. El proyecto podría demorar entre seis y ocho meses.

“Hemos sido un factor significativo en Rivera durante bastante tiempo”, afirma Parodi, “y atendiendo al surgimiento de nuevas tiendas en la ciudad, es importante que actualicemos nuestro primer establecimiento”.

“Lo principal es seguirles ofreciendo a los compradores una experiencia de la más alta calidad. Considerando la popularidad de la tienda, esperamos proporcionarle una apariencia y sensación digna de su estatura. Si algo hemos aprendido en las últimas dos décadas y media, es que el análisis y la adaptación son vitales para nuestro éxito per durable”, concluye Parodi.

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Latin America Report

In terms of bestsellers, P&C remains the top category for Dufry in Argentina, with brands such as Carolina Herrera, Issey Myake, Dolce & Gabbana, Dior and Chanel outperforming

Changing landscapes Despite subdued growth in Latin American travel retail as compared to recent years, operators continue investing in their businesses and see a bright future ahead for the region ttendees at this year’s ASUTIL Committed to conference in Punta Cana will no emerging markets

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doubt have occasion to discuss the slight weakening of growth in Latin American travel retail, but from conversations with Dufry, Mannah Duty Free, Bright Star Duty Free, Motta Internacional and Sociedad Protectora Del Niño, Americas Duty Free learned that operators throughout the region are still optimistic and are investing heavily in their businesses. Indeed, the general consensus seems to be that at the end of the day, subdued growth is still growth, and with large-scale events such as The Olympics and the FIFA World Cup coming to Brazil in 2014, another upswing is expected in the not-too-distant future.

From store inaugurations and renovations to promotions and the latest in new releases, operators are pulling out all the stops to make sure that both airport and cross-border travelers have a reason to spend.

Of course, challenges do exist, but the operators we’ve spoken with for this issue’s Latin America Report appear confident that they’ve got the tools to continue increasing sales in the short term until the world flocks to the region in 2014.

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One operator that has remained consistently bullish when it comes to business in Latin America is Dufry. René Riedi, COO of Dufry’s Region America 1, tells Americas Duty Free that 44,000 square meters of store space are in the pipeline for the region over the next 18 months. Our conversation with Riedi centered on Region America 1 specifically, and he told us that about 6% of the total retail space mentioned above will be in the region. In addition to expanding stores there, Riedi tells us that renovations are also being planned.

In terms of bestsellers, P&C remains the top

BY

RYAN WHITE

category for Dufry in Argentina, with brands such as Carolina Herrera, Issey Myake, Dolce & Gabbana, Dior and Chanel outperforming.

And despite Argentineans making up the majority of passengers, Riedi tells us that Brazilians are still a driving force for business, purchasing more than any other nationality.

In terms of passengers’ reasons for buying, Riedi says that “in Argentina we’re seeing a general trend in products and brands that are not easily available in the domestic market. For instance, we’re seeing a healthy growth in the food and confectionery category.”

Of course, Dufry isn’t relying solely on its product offering in Argentina. The operator also runs regular promotions to encourage passengers to purchase. The latest, called the Anniversary Promotion, offers more than half a million dollars in prizes. Shoppers can

“In Argentina we’re seeing a general trend in products and brands that are not easily available in the domestic market. For instance, we’re seeing a healthy growth in the food and confectionery category.”

René Riedi, COO - Region America 1, Dufry

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Before and after façade renovations at Mannah Duty Free’s flagship La Petisquera store; the operator is now in the process of renovating the interior of the store

win vouchers worth US$10, $20 or $30, and even packages with a variety of products valued at up to US$500. Brands involved, says Riedi, amount to a veritable who’s who in travel retail—Giorgio Armani, Ralph Lauren, Carolina Herrera, Kenzo, Valentino, Yves Saint Laurent, Lancôme, Givenchy, Lindt, Tommy Hilfiger, Lacoste, Samsonite, The Glenlivet, Chivas Regal, Absolut, Beefeater and Ballantine’s.

Larger promotions such as the one above generally last about four months, with another major promotion then taking the previous one’s place. “The mechanics of these promotions are simple,” says Riedi. “To participate shoppers must buy US$100 worth of goods to get a scratch and win coupon. For every additional US$50 spent they get an additional coupon.”

Further underlining Dufry’s commitment to Latin American travel retail is the fact that three new stores were opened at the end of last year in Argentina’s Ezeiza Airport Terminal B. The first is a last-minute shop selling top P&C, Tobacco, Spirits and Confectionery brands, while the other two carry Electronics and some Fashion and Accessories brands.

Notably at Terminal B, eight extra boarding gates and new VIP lounges were recently opened. As such Riedi tells us that Dufry has “great expectations that the stores at Terminal B will generate healthy revenues.”

Booming at the border Like many other operators, Mannah Duty Free knows well that business on the border is booming, and given the operator’s expertise in this area from years of serving shoppers in Ciudad del Este, Paraguay, a new border store is planned for inauguration later this year.

“Very soon we’ll inaugurate a new store in Salto del Guairá, Paraguay,” says Mohamed Mannah, President of Mannah Duty Free.

“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.

In addition, a recently renovated storefront at the flagship La Petisquera store in Asunción 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—the company’s distribution arm—is planning on increasing the size of its offices, warehouse and vehicle fleet as a means of better serving Asunción and Gran Asunción.

“Very soon we’ll inaugurate a new store in Salto del Guairá, Paraguay. It’s a city that has witnessed a lot of commercial growth in the last few years.”

Mohamed Mannah, President, Mannah Duty Free

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Latin America Report

OPI products were recently launched at Bright Star’s stores in Silvio Pettirossi Airport in Paraguay

Expanding in Paraguay Americas Duty Free spoke with Bright Star Duty Free Trade Manager Antonella Nuovo near the end of May, an important month for the operator given its concentration on P&C and the fact that Mother’s Day had just passed.

Nuovo told us that sales increased across all categories, but specifically in P&C as the products are generally favorite gifts for moms.

To ensure that sales were at their peak, the operator ran a promotion in conjunction with a popular Latin American bank called ITAU across categories. Customers paying with ITAU credit cards received a significant 30% discount on their purchases.

In general over the first quarter, Nuovo tells us that business was brisk as the result of a concentration on promotions and new launches such as Burberry Body Tender, Chanel’s Coco Mademoiselle and OPI products.

Additionally at the end of May, Bright Star launched its winter inflight catalogue for TAM. As the result of a new tender for inflight duty free sales aboard the airline, this will be the last catalogue that Bright Star produces.

The cover will feature Gucci Premier and as always, inside travelers will find a good mix of the latest launches and old favorites. “Bright 32

Star would like to take this opportunity to thank all of our supplier partners who supported us since we put out our first inflight catalogue with TAM in 2004,” Nuovo says.

While inflight sales represent about 20% of Bright Star’s total sales, Nuovo tells us that given a large-scale store expansion project at the company’s departures location in Silvio Pettirossi Airport, she expects any loss in revenue from the inflight business to be offset by sales generated from the newly redesigned store.

“This is a very important project for us,” she says. “We’ll be adding about 65 square meters of new space, giving the store a total of 270 square

meters. Given our track record with P&C, we’ll be concentrating on this category, but we’ll also be adding a bit of space to fashion and accessories, which is a category that is growing.”

The expansion is slated to begin in September and should be finished by year’s end.

Bright Star is currently working with key supplier partners on new personalized spaces for brands within the redesigned store. “We’re looking forward to continued growth as a result of our strong relationships with suppliers and a thorough knowledge of what travelers want to see when shopping airport duty free in Paraguay,” Nuovo concludes.

“We’re looking forward to continued growth as a result of our strong relationships with suppliers and a thorough knowledge of what travelers want to see when shopping airport duty free in Paraguay.”

Antonella Nuovo, Trade Manager, Bright Star Duty Free

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Latin America Report

A proactive stance Americas Duty Free spoke with Erasmo Orillac, CEO of Motta Internacional, at this year’s IAADFS exhibition in Orlando, Florida. Orillac was in high spirits given the February 20 start of operations at the New Quito Airport in Ecuador, telling us that business was good in the first month there, despite the fact that the full retail space hadn’t been opened at that point.

“We’re still missing about 500 square meters across the two stores,” Orillac said in March. “We opened with two small shops, one in arrivals and one in departures. With regard to the space yet to be opened, it’s a question

with in departures, so we had to make some decisions on what to include in the store,” Orillac notes.

“In terms of what’s in there now, we’re noticing that Confectionery, and specifically chocolates, are becoming very important, so we’ll be looking to add more options there in the near future.”

The arrivals shop will soon be expanded by about 100 square meters, and Orillac expects this to result in increased sales. Chocolate will also be Motta Internacional’s new Attenza operations at the New Quito International Airport in Ecuador a concentration in this location.

In addition to its travel retail of airport regulations—adding sprinklers business, Motta Internacional continues with and things like that to the area—so the issue its strategy of building its tax-paid business should be resolved shortly.” in Panama, Colombia, Costa Rica and Puerto Fortunately for Motta Internacional, the Rico. “We see this as a very important part of departures store is located very close to the our business,” Orillac notes.

VIP lounge, meaning that a lot of VIP pasThrough to December the company plans sengers will be passing through the location. on opening four Apple stores in Colombia, For the moment the company is focusing on giving Motta Internacional a total of 17 by Spirits, P&C, a focused selection of Elec- the end of the year. In fact, Orillac attends tronics, Watches, Sunglasses, Writing Instru- IAADFS and other shows in part to look for ments, Clothing, Handbags, Confectionery, more lines to work with in this regard. “Not Leather Goods, Fashion and Accessories. everyone passes through airports,” he says.

“Given the temporary spatial constraints, “We need to be proactive in searching out the we only had about 196 square meters to work customers.”

Rum, and specifically Zacapa, is a big seller at Sociedad Protectora Del Niño’s stores in Guatemala’s La Aurora International Airport

A noble pursuit Alejandro Asturias, General Manager of Sociedad Protectora Del Niño (SPN), tells Americas Duty Free that sales in the first quarter of 2013 suffered somewhat due to the partial closing of two retail locations in Guatemala’s La Aurora International Airport. The stores, located in the north wing of the airport near Gates 7 and 11, were remodeled in an effort to bring them up to date with the rest of the newly renovated airport.

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“We added a very small amount of space to each store but the primary purpose of the project was cosmetic,” Asturias says. “Of course, closing portions of the stores for the renovations affected sales, but this is something that we expected. Everything went according to plan and the project is now completed, so we should see things go back to normal—and hopefully improve—during the rest of the year.”

P&C, Tobacco, Spirits and Chocolates are

the main categories with which SPN works.

In spirits, Zacapa rum is a bestseller. Whisky is also popular, says Asturias, with Johnnie Walker leading the pack. Argentinean and Chilean wines are dominating the wine subcategory, and in P&C, brands such as Chanel, Carolina Herrera, Dior, Boss and Dolce & Gabbana are the must-haves for travelers passing through La Aurora.

Of course, in addition to perennial favorites, SPN makes a point of incorporating new launches into the mix on a regular basis. The operator has noticed a trend toward single malt Scotch, and as a result has bolstered its portfolio with a number of new additions. Furthermore, as a means of capturing luxury-driven clientele, brands such as Jimmy Choo, Prada and Swarovski have recently been added.

And if the excellent product selection weren’t enough, Asturias reminds readers of the good work that SPN does on behalf of disadvantaged children in Guatemala: “Regardless of what we’re doing, whether it be renovations or revamping the product selection, it’s important to note that we’ve always got our eyes on the ultimate goal, which is helping Guatemalan children and their families. I’d like to thank all of our supplier partners and customers for

aiding us in this important cause.”

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Un paisaje cambiante

A pesar del modesto crecimiento en el sector minorista de viajes latinoamericano en comparación con años recientes, los operadores siguen invirtiendo en sus negocios, y avizoran un futuro brillante para la región

S

in duda alguna, los asistentes a la conferencia de ASUTIL de este año en Punta Cana tendrán la ocasión de analizar el ligero debilitamiento del crecimiento en el sector minorista de viajes latinoamericano. En conversaciones sostenidas con Dufry, Mannah Duty Free, Bright Star Duty Free, Motta Internacional y la Sociedad Protectora Del Niño, Americas Duty Free sacó en conclusión que los operadores de la región siguen teniendo optimismo e invirtiendo sustancialmente en sus negocios. En realidad, el consenso general consiste en que un crecimiento modesto es, a fin de cuentas, crecimiento, y con eventos de gran escala como las Olimpiadas y la Copa Mundial de la FIFA que se celebrarán en Brasil en el 2014, se esperan mejoras en un futuro no muy lejano.

Los operadores están recurriendo a todo tipo de iniciativas, desde inauguraciones y renovaciones de tiendas a promociones y lo último en presentaciones de nuevos productos; para garantizar que tanto los viajeros de los aeropuertos y los de cruces de frontera tienen una razón para gastar. Por supuesto, hay retos, pero los operadores con quienes hablamos en la redacción de este número, expresaron confianza en que tienen las herramientas necesarias para seguir incrementando las ventas a corto plazo hasta que el mundo afluya a la región en el 2014.

Compromiso con los mercados en surgimiento Un operador que ha mantenido el optimismo en lo tocante a los negocios en Latinoamérica es Dufry. René Riedi, director de operaciones 36

de Dufry en la Región América 1, le aseguró a Americas Duty Free que en los próximos 18 meses, crearán en la región un espacio de 44,000 metros cuadrados de espacio comercial. Nuestra conversación con Riedi se centró específicamente en Región América 1, y el alto funcionario nos explicó que cerca del 6% del espacio comercial total mencionado ante-riormente será en ese región. Además de ampliar tiendas, Riedi nos dijo que también se están planificando renovaciones.

En términos de los renglones con mejores ventas, la categoría de Perfumería y Cosméticos sigue manteniendo el primer lugar para Dufry en Argentina, y las marcas como Carolina Herrera, Issey Myake, Dolce & Gabbana, Dior y Chanel reportan el mayor rendimiento. Y a pesar de que los argentinos conforman la mayoría de los pasajeros, Riedi asegura que los brasileños siguen siendo una fuerza vital para el negocio, pues compran más que las demás nacionalidades.

En lo tocante a las razones que tienen los pasajeros para comprar, Riedi destacó que “estamos viendo en Argentina una tendencia general en productos y marcas que no están fácilmente disponibles en el mercado nacional. Por ejemplo, detectamos un crecimiento saludable en la categoría de alimentos y confitería”.

Por supuesto, Dufry no depende solamente de su oferta de productos en Argentina.

El operador también realiza promociones regulares para estimular a los pasajeros a comprar. La más reciente, titulada “Promoción de Aniversario”, ofrece más de medio millón de dólares en premios. Los compradores pueden ganar cupones con valores de US$10,

$20 o $30, e incluso paquetes con una variedad de productos valorados hasta en US$500.

Según Riedi, las marcas participantes equivalen a un auténtico “quién es quién” en el sector minorista de viajes: Giorgio Armani, Ralph Lauren, Carolina Herrera, Kenzo, Valentino, Yves Saint Laurent, Lancôme, Givenchy, Lindt, Tommy Hilfiger, Lacoste, Samsonite, The Glenlivet, Chivas Regal, Absolut, Beefeater y Ballantine’s.

Generalmente, las promociones de mayor dimensión como la mencionada en el pá-rrafo anterior tienen una duración aproximada de cuatro meses, y son sustituidas por otra promoción importante. “La mecánica de estas promociones es simple” explicó Riedi.

“Para participar, los compradores deben adquirir mercancías por un valor de US$100 para ganar un cupón. Por cada US$50 adicionales que gastan se les proporciona otro cupón”.

Un hecho que resalta más aún el compromiso de Dufry con el sector minorista de viajes latinoamericano, es la inauguración de tres nuevas tiendas a finales del año pasado en la Terminal B del Aeropuerto Ezeiza en Argentina. La primera está dedicada a compras de último minuto que vende marcas de perfumería y cosméticos, tabaco, espirituosos y confitería; mientras que las otras dos ofrecen marcas de artículos electrónicos y de modas y accesorios. Es menester destacar que en la Terminal B se inauguraron recientemente ocho puertas de salida adicionales y nuevos salones VIP. Por tanto, Riedi afirmó que Dufry tiene “grandes expectativas de que las tiendas de la Terminal B generarán ingresos saludables”.

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Florecimiento en la frontera Al igual que muchos otros operadores, Mannah Duty Free sabe muy bien que los negocios en la frontera están floreciendo, y dada la experiencia que tiene el operador en esa área, acumulada durante años de servicio a los compradores en Ciudad del Este, Paraguay, se está planificando una nueva tienda de frontera que sería inaugurada a finales de año.

“En breve, inauguraremos una nueva tienda en Salto del Guairá, Paraguay”, afirmó Mohamed Mannah, presidente de Mannah Duty Free. “Es una ciudad que ha experimentado un gran crecimiento comercial en los últimos años”.

La tienda del Salto tendrá 1,000 metros cuadrados. Mannah explica que, considerando que la ciudad está ubicada en la frontera con Brasil, espera que el negocio siga floreciendo por algún tiempo.

Además, la reciente renovación de la parte frontal de la tienda insignia La Petisquera en

Asunción es sólo el inicio de un proyecto en el que se remodelará todo el establecimiento, tanto en su interior como en el exterior. “La tienda será totalmente transformada, con especial énfasis en el servicio y satisfacción del cliente”, añadió Mannah.

Cuando concluyan los trabajos en la tienda insignia, el operador renovará su segunda tienda La Petisquera en Ciudad del Este. Para garantizar una identidad de marca consistente, se actualizará la fachada según las normativas de La Petisquera 1. En su interior, se ampliará la sección de relojes, en correspondencia con su crecimiento como categoría de grandes ventas duty free en los dos últimos años, y su potencial de éxito continuo en los próximos, agrega Mannah.

Además, este año se llevarán a cabo cambios tras bastidores. En Asunción, Mannah SRL—división distribuidora de la compañía— está planificando un incremento en la extensión de sus oficinas, almacén y flotilla de vehículos, para un mejor servicio a Asunción y Gran Asunción.

de nuevos productos como Burberry Body Tender, Chanel’s Coco Mademoiselle y OPI. Además, a finales de mayo Bright Star presentó su catálogo de ventas a bordo en TAM correspondiente al invierno. Como resultado de una nueva licitación para ventas duty free a bordo de la aerolínea, este será el último que produce Bright Star. La portada presenta a Gucci Premier, y como siempre, sus páginas les ofrecen a los viajeros una buena combinación de productos nuevos y favoritos de siempre. “Bright Star aprovecha esta oportunidad para agradecerles a todos nuestros suministradores que nos apoyaron desde nuestro primer catálogo de ventas a bordo con TAM en el 2004”, expresó Nuovo.

Si bien la operación a bordo representa aproximadamente un 20% de las ventas totales de Bright Star, Nuovo destacó que, gracias al proyecto de expansión en gran escala de la tienda en la sección de salidas del Aeropuerto Silvio Pettirossi, no se esperan pérdidas en los

ingresos provenientes del negocio de ventas a bordo, pues éstos serían sustituidos por las ventas generadas en la tienda recién remodelada.

“Es un proyecto muy importante para nosotros”, agregó Nuovo. “Vamos a incorporar unos 65 metros cuadrados de nuevo espacio comercial. Dada nuestra trayectoria en la categoría de perfumería y cosméticos, nos concentraremos en la misma, pero también le dedicaremos algo de espacio a la de modas y accesorios, una categoría en crecimiento”.

La expansión está programada para septiembre, y deberá concluir a fines de año.

Bright Star está trabajando actualmente con importantes proveedores en nuevos espacios personalizados para las marcas en la tienda remodelada. “Esperamos un crecimiento continuo, como resultado de nuestras sólidas relaciones con los proveedores, y un profundo conocimiento de lo que los viajeros quieren ver cuando compran en una tienda duty free de aeropuerto en Paraguay”, concluyó Nuovo.

Coco Mademoiselle is one of the many new releases available in Bright Star’s robust P&C section

Expansión en Paraguay Americas Duty Free conversó con Antonella Nuovo, gerente de comercio duty free de Bright Star a finales de mayo, un mes importante para el operador, dada su concentración en la categoría de perfumería y cosméticos, y la reciente celebración del Día de las Madres. Nuovo nos reportó un incremento de las ventas en todas las categorías, pero específicamente en perfumería y cosméticos, cuyos productos son generalmente regalos favoritos para las madres.

Para garantizar un mayor incremento en las ventas, el operador llevó a cabo una promoción, en conjunción con ITAU, un popular banco latinoamericano en las diferentes categorías. Los clientes que pagaron con tarjetas de crédito ITAU recibieron un significativo descuento del 30% en sus compras.

Nuovo añadió que en general, durante el primer trimestre, el negocio fue dinámico como resultado de una concentración en las promociones, así como en la presentación 38

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Una posición proactiva Americas Duty Free habló con Erasmo Orillac, director ejecutivo de Motta Internacional, en la exposición IAADFS de este año en Orlando, Florida. Orillac se mostró muy optimista con el comienzo de operaciones el 20 de febrero en el Aeropuerto Nuevo Quito en Ecuador, y nos dijo que los negocios marcharon bien en el primer mes, a pesar de que en ese momento no se disponía de todo el espacio comercial planificado.

“Nos faltan unos 500 metros cuadrados en las dos tiendas”, explicó Orillac en marzo.

“Inauguramos dos tiendas pequeñas, una en la sección de llegadas y otra en la de salidas.

En lo tocante al espacio que queda por abrir, es sólo una cuestión de regulaciones del aeropuerto —instalar rociadores contra incendios y cosas por el estilo en esa área—por lo que el problema debe ser resuelto en breve”.

Por suerte para Motta Internacional, la tienda en la sección de salidas está muy cerca del salón VIP, lo cual implica que muchos pasajeros VIP transitarán por el establecimiento.

Por el momento, la compañía se está concentrando en las categorías de espirituosos, perfumería y cosméticos, una selección concentrada en artículos electrónicos, relojes, lentes de sol,

instrumentos de escritura, ropa, bolsos, confitería, artículos de piel, moda y accesorios.

“Debido a las limitaciones temporales de espacio, sólo contábamos con unos 196 metros cuadrados para trabajar en la tienda de salidas, por lo que tuvimos que tomar varias decisiones sobre lo que debía ofrecer el establecimiento”, agregó Orillac. “Como en lo que respecta a las existencias actuales en la tienda estamos notando que los productos de confitería, específicamente el chocolate, están cobrando gran importancia, por lo que esperamos incorporar nuevas opciones en un futuro cercano”.

En breve, la tienda de la sección de llegadas será ampliada en unos 100 metros cuadrados, y Orillac espera que esto implique un aumento en las ventas. Además, el chocolate será un

punto focal en ese establecimiento.

Además de su negocio minorista de viajes, Motta Internacional prosigue su estrategia de incrementar sus operaciones de ventas con pago de aranceles en Panamá, Colombia, Costa Rica y Puerto Rico. “Consideramos que es una parte muy importante de nuestro negocio”, aseguró Orillac.

La compañía tiene en proyecto hasta diciembre la apertura de cuatro tiendas Apple en Colombia, lo cual le proporcionará a Motta Internacional un total de 17 para finales de año.

Por cierto, Orillac asiste a IAADFS y a otras exposiciones en parte para buscar más líneas de trabajo al respecto. “No todo el mundo pasa por un aeropuerto”, agregó. “Tenemos que ser proactivos en la búsqueda de clientes”.

“Not everyone passes through airports. We need to be proactive in searching out the customers.”

Erasmo Orillac, CEO, Motta Internacional commenting on the company’s duty paid operations

Una noble misión Alejandro Asturias, gerente general de la Sociedad Protectora Del Niño (SPN), le reveló a Americas Duty Free que las ventas en el primer trimestre del 2013 se afectaron en cierta medida debido al cierre parcial de dos tiendas minoristas en el Aeropuerto Internacional La Aurora de Guatemala. Los establecimientos, ubicados en el ala norte del aeropuerto, cerca de las puertas 7 y 11, fueron remodelados para ponerlos a tono con el resto del aeropuerto recién renovado.

“Incorporamos una cantidad muy pequeña de espacio a cada tienda, pero el propósito principal del proyecto fue cosmético”, explicó Asturias. “Por supuesto, el cierre de porciones de las tiendas para renovarlas afectó las ventas, pero era algo que esperábamos. Todo marchó según el plan, y ya se concluyeron los trabajos, por lo que las cosas deben volver a la normalidad—y esperamos que mejoren— durante el resto del año”.

Las categorías de perfumería y cosméticos, tabaco, espirituosos y chocolate son las de mayor rendimiento con las que opera SPN. En los espirituosos, el ron Zacapa está al frente en las ventas. El whisky también es popular, según Asturias, y Johnnie Walker totaliza las mayores ventas. Por su parte, los vinos argentinos y chilenos dominan en la subcategoría de vinos, mientras que en perfumería y cosméticos, las 40

Sociedad Protectora Del Niño’s ultimate goal remains helping underprivileged Guatemalan children and their families

marcas como Chanel, Carolina Herrera, Dior, Boss y Dolce & Gabbana son imprescindibles para los viajeros que pasan por La Aurora.

Por supuesto, además de los favoritos perennes, SPN incorpora nuevos productos a la combinación con regularidad. El operador ha notado una tendencia que favorece al whisky escocés de malta simple, y como resultado ha robustecido su portafolio con nuevas adiciones. Asimismo, y como forma de captar una clientela proclive a los artículos de lujo, se han incorporado recientemente marcas como Jimmy Choo, Prada y Swarovski.

Y como si su excelente selección de productos no fuese suficiente, Asturias les recordó a los lectores el buen trabajo que realiza SPN en representación de los niños necesitados en Guatemala: “Independientemente de lo que estemos haciendo, ya sea en las remodelaciones como en la renovación de nuestra selección de productos, es importante destacar que siempre estamos concentrados en nuestro propósito principal, que es ayudar a los niños guatemaltecos y a sus familias. Quiero agradecerles a todos nuestros proveedores por colaborar con nosotros

en esta causa tan importante”.

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Dufry

Profitable growth

Dufry’s strong performance in 2012 underscored the operator’s commitment to focusing on profitability and emerging markets

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ufry recently released its business results for 2012, and the company notes that 2012 was a year of important achievements and strong performance as the Group continued to add new businesses to its portfolio. Turnover grew by 19.6% and reached CHF 3,153.6 million (US$3.34 billion).

Indeed, Dufry continued to play a major role in the consolidation of the travel retail industry. The acquisition of several travel retail operations in South America, as well as Martinique and Armenia in August 2011, were fully consolidated during 2012 and the integration was concluded in August 2012, well ahead of the initial timetable. Furthermore, in November 2012 Dufry signed an agreement with Guarulhos International Airport in São Paulo, Brazil, for the extension of its concession until 2016 and the expansion of retail space in the airport of almost 50%.

Solid performance across regions In 2012, Dufry’s turnover grew by 19.6% to CHF 3,153.6 million (US$3.34 billion) from CHF 2,637.7 million (US$2.79 billion) in 2011. Organic growth contributed 3.7% and 4.6% when excluding extraordinary effects. Like-for-like growth was 1.5% and 2.4% respectively, and new concessions, net of closings, contributed 2.2%.

Acquisitions added 11.2% to the turnover growth, and finally the translational currency effect was positive by 4.7%.

Turnover in Region America I increased by 48.3% to CHF 778.3 million (US$824.5 million) compared to CHF 524.7 million (US$555.7 million) in 2011. The operations in Mexico showed strong sales growth supported by passenger growth. Apart from the operations in the British Caribbean, which remained weak due to a change in the passenger profile and different itineraries of the cruise lines affecting the numbers of customers, the other parts of the Caribbean performed very well. Especially the business in the Dominican Republic and Trinidad performed strongly. In South America, Dufry’s operations in Argentina and Uruguay were affected by the bankruptcy of the Uruguayan airline Pluna at the beginning of July.

Turnover in Region America II increased by 0.2% to CHF 730.6 million, compared to CHF 729.4 million (773.7 million) in 2011. After many years of continued strong performance, operations in Brazil were impacted by the economic slowdown in the country, a softening of the Brazilian Real against the US Dollar, as well as capacity constraints in some of the Brazilian airports. The company notes that it successfully implemented several measures to safeguard the profitability in the region.

BY

RYAN WHITE

Turnover in Region United States & Canada increased by 15.5% to CHF 809.3 million (US$857.1 million) in 2012, compared to CHF 700.5 million (US$741.9 million) one year earlier. Turnover continued to show solid growth driven by like-for-like growth, as well as through adding new concessions and retail space. The expansion of the company´s presence in the region is not only based on the Hudson News convenience store concept, but Dufry has also successfully expanded its portfolio of brand boutiques and specialized shops, as well as duty free shops.

Performance in the last quarter of 2012 in the region was impacted by hurricane Sandy but the negative effects were relatively short-lived.

Julian Diaz, CEO of Dufry Group, comments: “Our strategy, which we have been implementing for the last 8 years, remains unchanged going forward: We continue to focus on profitable growth and on cash generation, developing the company in emerging markets and tourist destinations.

“The medium- and long-term trends in the travel retail industry, namely the ongoing global passenger growth, as well as the continuation of the consolidation of the travel retail industry, have been confirmed and will remain valid,” Diaz continues. “Hence, we will continue to focus on growing organically in our current operations through space expansion and accelerating like-for-like growth. Finally, we also will continue to actively pursue acquisitions of high quality assets where we can generate synergies.

“As for 2013, our general outlook is positive, although there are still some global and regional economic issues that need to be addressed,” he concluded.

“Passenger traffic remains positive with global passenger growth being forecasted at 5.5%. While regional differences will continue to persist, all regions are expected to have positive passenger growth

in 2013.”

“The medium- and long-term trends in the travel retail industry, namely the ongoing global passenger growth, as well as the continuation of the consolidation of the travel retail industry, have been confirmed and will remain valid.”

42

Julian Diaz, CEO, Dufry Group

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

Saving grace

Travel retail buoys Autogrill’s first quarter results as Autogrill-owned World Duty Free Group plans renovations in Mexico’s Cancun Airport

A

utogrill recently announced that revenues in the first quarter, traditionally a low season for the company’s businesses, were “substantially stable.” Good performance in the airport channel in both business sectors mitigated the effects of the persistently difficult economic situation, the company said. Europe, and Italy in particular, continue to suffer stagnant or shrinking GDPs and significant contraction in motorway traffic.

Food and beverage sales in the United States grew faster than traffic thanks to an increase in the average receipt value and the introduction of new concepts to capture new customers. The situation in Europe, on the other hand, was difficult, partly because the group operates mostly in the motorway channel there.

Importantly, Autogrill reports that its travel retail business continued to grow, with revenues outdoing traffic trends, especially in the UK and airports outside Europe. Business in Spain, however, contracted.

Travel retail margins continued to rise in the quarter, while food and beverage profitability was penalized by the heavy contraction in sales in Italy, where problems of oversupply in the motorway channel, together with the high impact of fixed operating costs (labor and rents), zeroed the positive effects of the successful recovery of margins in North American airports.

Big things in Latin America In terms of Latin America specifically, November of last year saw two new Autogrill-owned World Duty Free Group (WDFG) locations open, one arrivals and one departures, at Los Cabos Airport in Mexico, thereby reinforcing WDFG’s leading presence at the airport since 2000. Furthermore, travelers are now reaping the benefits of a completely renovated Fragrances section in WDFG’s Sangster Airport store in Montego Bay, Jamaica.

Upcoming projects include the complete renovation of the departures stores in Terminal 2 at Cancun Airport, which will see the retail space double in size. WDFG is also planning to open the first standalone MAC store in a Latin American airport at Cancun’s Terminal 3.

The location is expected to measure 55 square meters. The operator is hoping to roll the brand out in other Latin American countries in the

RYAN WHITE

future, in addition to introducing other exclusive brands to the region.

Finally, a new arrivals store is set to be opened at Sangster Airport.

Given WDFG’s plans for its business in Latin America, it’s clear that the company is bullish when it comes to the potential of the region at large in 2013. We asked Nancy Santarelli, Head of International Operations LATAM at WDFG, for her specific opinion on some key Latin American countries.

“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,” she explains.

“Brazil’s importance for travel retail will only increase in the future as the World Cup and Olympics come to the country.

“We’re also hoping for good market performance in other countries where we have operations—Mexico, Peru and Chile, for example,” Santarelli continues. “The case can be made that these countries will see continued growth given relatively stable economies, low inflation and also low unemployment rates.”

Looking ahead In the first 18 weeks of the year, Autogrill’s sales rose 0.5% (stable at current exchange rates) compared to the same period in 2012. The trends that determine full-year results have not yet run their course.

As such, the company notes that it would be “premature to give quantitative forecasts of the results for this year.” However, the Group is confident it can make up for the weakness of results in Italy with good performance and prospects in North America and the resiliency of the travel retail business.

Finally, to maintain dynamism in its different business units, Autogrill is separating its food and beverage and travel retail arms. “I’m convinced that the creation of two distinct and independent groups will help release new energy in both businesses and provide greater room for each to express more effectively its strengths and better pursue its objectives,” said Autogrill CEO Gianmario Tondato Da Ruos when commenting on the latest numbers. “The move will also make it easier for financial markets to understand and assess the specific strategies of each business and will also facilitate the clearer evaluation of value creating business combinations as and when these arise.”

WDFG’s bestselling categories in Latin America include such staples as P&C, spirits, tobacco and confectionery

44

BY

The tasting bar at Los Cabos Airport in Mexico; as can be expected, tequila is a favorite purchase for tourists passing through the airport

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London Supply

Gearing up

London Supply’s sales skyrocket in the first quarter of 2013 as the operator prepares to double the space of its Iguazú store early next year

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agdalena Ducos, Commercial Manager at London Supply, tells Americas Duty Free that the Argentina-based operator enjoyed sales that were much better than expected in the first quarter of this year. Fluctuations in regional exchange rates have favored both Argentineans and Brazilians purchasing in the operator’s stores, resulting in sales being up an impressive 50% in March 2013 versus March 2012. In fact, throughout the first quarter sales have been strong at +23% year on year.

Tourism is also a bright spot. According to Ducos, tourist numbers keep rising as a result of the government’s concentration on promoting travel by Argentineans within the country. International travel is also heavily promoted given that Iguazú Falls was named one of the new Seven Wonders of Nature, making for an all-round positive situation in terms of vacationers looking to see the sights and make duty free purchases.

“We’re seeing more tourists with a greater spending power, which has certainly helped sales,” Ducos explains.

While purchasing power has changed for the better, Ducos says that in-demand categories have remained relatively stable. “We’re seeing each of our main categories maintain the same proportion of total sales,” she notes.

“However, we’re noticing that last year customers might have only picked up one product from a given category; now they’re choosing two or three products.”

with the expansion project, which will see the Iguazú store double in size, the fashion and accessories department is undergoing a facelift.

“It’s really about giving the category the space it deserves to continue growing,” Ducos tells us. “The renovations to this category are centered on improving displays, maximizing flow and making sure that lineups are minimized at the registers. With people trying on clothes and really spending a lot of time in this area of the store, the challenge for London Supply is making sure that they can find what they want quickly, that they have room to try on an item if they wish and that they can quickly and easily decide to take it.”

The right brands Also in the fashion and accessories category, London Supply has added a number of new brands that have only recently become available in Brazil. The aim, says Ducos, is to give Brazilian travelers access to new brands that are up and coming in their country. With regard to new listings across categories, London Supply sees this year as a crucial time given that decisions are already being made on what brands to include in the new store space at Iguazú upon completion of the project in the first quarter of 2014.

“We’ve had to really analyze the value of each

Fashion gets a facelift Of course, this doesn’t mean that London Supply is resting on its laurels. In addition to large-scale renovation projects that include increased parking and an expansion of store space at the Iguazú location, category innovations are also a priority. In conjunction

BY

RYAN WHITE

brand to our business and then project that onto the new space to determine what the requirements will be when the expansion is finished,” says Ducos. “The whole idea behind doubling the size of the store is to give our shoppers all the brands and categories that they’re looking for. As such, we’re currently defining how we plan to change up the current offering and incorporate new brands across categories.”

Shared successes Ducos ended our conversation by noting that London Supply remains committed to its robust corporate social responsibility program, which includes of course the educational facilities that the operator has built—and continues to expand—in Puerto Iguazú. The complex currently features an elementary school, a secondary school and will soon have a daycare and a church.

“Fully 2,000 families are benefitting from the CSR work we’re doing in Puerto Iguazú,” says Ducos. “I’d like to take this opportunity to thank our partners—suppliers, distributors, the media and everyone else we work with—for their support of London Supply.

Just as they share in our successes as a travel retailer, they’re also a big part of the work we’re

doing to help families in Iguazú.”

“The whole idea behind doubling the size of the store is to give our shoppers all the brands and categories that they’re looking for. As such, we’re currently defining how we plan to change up the current offering and incorporate new brands across categories.”

Magdalena Ducos, Commercial Manager, London Supply

London Supply’s Iguazú store will double in size; the project is scheduled for completion in the first quarter of 2014

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THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2013

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Monalisa

Embracing change BY

MELISSA SILVA

With renovations and service changes underway, Monalisa is working towards creating the ultimate customer experience on the border with Brazil

F

or border store Monalisa, 2013 has been a good year so far with sales up 15% thanks to Ciudad de Este’s growth as a border city over the past few years. With new buildings, infrastructure and hotels on the rise in response to increased consumer demand, Monalisa has followed suit by increasing and upgrading its retail area to optimize the shopping experience for travelers.

“Our penetration rate is 50%,” says Charif Hammoud, Vice President of Monalisa. “For every 10 people who walk in, five purchase a product or service at Monalisa.” On an average business day, Monalisa receives about 3,000 clients. “Our record in 2011 was 16,000 people in one day,” says Hammoud.

Monalisa’s top performing categories include perfume & cosmetics, watches & jewelry, leather goods, writing instruments and fashion. Top selling brands within its top categories include L'Oreal, Estée Lauder and Beauty Prestige International for perfume & cosmetics; Cartier, Bvlgari, MontBlanc and Tag Heuer for watches & jewelry; and Polo Ralph Lauren, La Martina, Tommy Hilfiger and Lacoste for fashion. Brazilians, Argentines and Paraguayans serve as the top purchasing nationalities.

In order to keep up with consumer demand, Monalisa routinely attends launches, shows and conventions. “Our clients are savvy consumers,” says Hammoud. “They seek the newest products and quality at a reasonable price. We bring the best of each category to our clients and at Monalisa they can find what they like best, with outstanding customer service.”

The company works routinely with its marketing team to build brand awareness in Latin America. “We participate in relevant events in Paraguay and we plan strategic promotions during holidays in partnership with banks,” explains Hammoud.

To further increase its appeal, Monalisa has undergone extensive renovations. The company recently added a 900-square-meter painting of La Gioconda (Mona Lisa) to the exterior of its building, which faces the Brazil border. Hammoud acquired the idea for the painting while in Las Vegas at a Leonardo da Vinci event where he had the chance to meet a painter from Florence, Italy, who is well

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trained at painting La Gioconda. “This creation has been all over Paraguay and Brazil's regional media, where you can find many related articles,” says Hammoud.

The elaborate painting is only one of many upgrades the company has made to maintain its appeal to consumers. “Our city is constantly receiving an increasing number of clients per year, so we are adapting to these changes and demands,” he adds. Monalisa also recently increased its retail area with the addition of two floors. In addition, the company provided

Monalisa recently added a 900 square-meter painting of La Gioconda (Mona Lisa) to the exterior of its building, which faces the Brazil border

In addition to a robust retailing experience, Monalisa offers shoppers a variety of F&B options

Lancôme, La Prairie, Giorgio Armani, Clinique and Biotherm with perfume counters containing new furniture on the ground floor of its flagship store.

“The ground floor renovation has been a success for the company since it optimized our space and delighted our clients,” says Hammoud. Watches & jewelry, leather goods and writing instruments are offered on the first floor. New furniture was created by a subsidiary company of Monalisa, Home Deco, for brands such as Cartier, Bvlgari, Tag Heuer and Mont Blanc. Additionally, the company plans to build a Monalisa Bistro on the sixth floor.

“Changes are also visible in our modern café area, where you can enjoy a cup of tea at the sound of a Steinway & Sons piano playing daily,” Hammoud adds.

Renovations began last year and the company is still in the process of renovating all other floors. “We are renovating gradually in order

for our clients to feel comfortable while at Monalisa,” says Hammoud. “Monalisa is known in Paraguay as the most prestigious— if not the only—luxury department store.

Our clients have high expectations when entering Monalisa. We have built a unique reputation in Paraguay over 40 years, and keeping in mind our clients’ demands and expectations, we do our best to delight them with a comfortable shopping experience.”

Looking ahead, Monalisa will continue listing new products. Some of its newest brands include Jaeger LeCoultre, Givenchy, Yves-Saint Laurent, Payot, Clarins and Dior. In addition to new brands, the company is currently developing a new website for its Paraguay-based clients to purchase products through its new customer service e-commerce system to further accomplish Monalisa’s ultimate goal of meeting client demands and expectations with

outstanding service.

THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2013

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Aviation Day Central America

Aviation has its day

IATA and ALTA host inaugural Central America Aviation Day, emphasize aviation’s economic role, need to upgrade infrastructure BY ANDREW BROOKS

O

n April 12, 2013 in San Salvador, El Salvador, the International Air Transport Association (IATA) and the Latin American and Caribbean Air Transport Association (ALTA) jointly hosted the first Aviation Day Central America, a symposium dedicated to highlighting aviation’s contribution to economies in the region and to urging the region’s governments and aviation authorities to support the further development of the aviation sector in their respective jurisdictions.

Aviation Days are cooperatively hosted by ALTA and IATA to support the aviation industry in countries throughout the region, in a different country each time. The purpose is to “create a forum for dialogue among the key stakeholders of aviation within a specific market, addressing the topics that are most relevant for it.”

Among the nearly 200 attendees at the San Salvador event were airline executives, government agencies, political leaders, regulators, suppliers and concessionaires. Participants included the Secretary General of the Central American Integration System (SICA), Juan Daniel Aleman, the President of the Board of Directors of the Central American Corporation of Air Navigation Services (COCESNA), General Manuel Enrique Cáceres, the Minister of Public Works, Transportation, Housing and Urban Development of El Salvador, Gerson Martinez, the Minister of Tourism of El Salvador, Jose Napoleon Duarte and the President of the Board of Directors of the Civil Aviation Authority of El Salvador Alirio Serrano.

In addition to ALTA and IATA, participating organizations included the respective airlines associations of El Salvador, Guatemala, Honduras, Costa Rica, Nicaragua and Panama. Sponsors included ARINC, PROESA, the AviaTrade Group and the AirSupport Group. The official airlines were TACA and Avianca, both of which are members of the Star Alliance. Representatives of Airports Council International, Civil Air Navigation Services Organization and the FAA were also on hand, along with members of the media.

Latin America is currently one of the fastest growing regions for

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air travel; IATA says that aviation supports 4.6 million jobs and US$107 billion in GDP across Latin America and the Caribbean. But IATA notes that further growth and job creation are potentially challenged by infrastructure constraints, fees and taxes that it says are often not cost-based, and poor regional integration.

“We’ve brought aviation to a level of development and sophistication that will allow us to satisfy the ongoing expansion of travel demand, strengthening commercial aviation in Latin America and the Caribbean,” said Roberto Kriete, President of ALTA. “That said, to truly achieve our vision and deliver on the promise of the future contributions of aviation to the benefit of the countries in the region, we must continue to reiterate the need for communication and dialogue among the airlines, air transport associations and the authorities to bring about the improvements that are so clearly necessary.”

Topics covered in the one-day agenda included the value of aviation as an economic driver, infrastructure, the rights and obligations of passengers and airlines, safety, passenger and cargo security and market opportunities.

As the event wrapped up, ALTA and IATA jointly presented a Call for Action that they believe will help aviation realize its full potential as “a catalyst for regional socioeconomic benefits.” The communiqué set forth ideas for action by governments and the private sector under a broad range of topic headings. In the realm of safety, ALTA and IATA noted that LATAM carriers on the IATA Operational Safety Audit (IOSA) registry recorded no accidents in 2012, while for the same period non-IOSA carriers in the region experienced 5.10 accidents per million flights. “A connection clearly exists between safety performance and participation on the IOSA registry. IATA and ALTA therefore encourage participation in the IOSA registry. In addition, governments should mandate participation on the IOSA registry as part of the operator's certificate,” the press release stated.

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First Aviation Day Central America conference hosted by International Air Transport Association and the Latin American and Caribbean Air Transport Association, held in San Salvador

*Photo courtesy: Félix Amaya, Grupo Dutriz

Prioritizing privatization Concerning airport privatization—always a topic of urgency for IATA—the communiqué urged that early-stage consultation with airport users should be made a systematic part of the infrastructure planning and design process. Airport operators should be made accountable for maintaining standards of quality, efficiency and competitiveness, while operators and regulatory authorities should be strictly independent of one another. “Airport operators and airlines are partners and airlines should have a formal role in capital investment decisions, establishing measurable and accountable cost efficiency targets and implementing service level agreements,” the statement said.

The two hosting organizations called on the region’s governments to make infrastructure development a priority as a way of maintaining the pace of airport and air traffic control modernization that will have to be maintained to cope with steadily increasing traffic demand. An important step will be to make service level metrics integral to the regulatory framework governing future infrastructure development, and to develop government support for the implementation of technologies such as Performance Based Navigation (PBN). PBN, which allows aircraft to fly precisely defined paths without resorting to ground-based signals, delivers safety, environmental and efficiency benefits such as fuel savings and fewer emissions, the communiqué said. “One element of PBN, Required Navigation Performance (RNP), is being implemented at airports around the world owing to the efficiency, reliability and safety benefits it offers,” the statement read. “With IATA funding, an RNP approach was developed for Juan Santamaria Airport in San Jose, Costa Rica.”

In addition, the event communiqué urged that a strong, independent economic regulator be put in place to support planned privatizations.

Efficiency is also a priority for the aviation industry, and the event communiqué reinforced the point by calling on COCESNA to deliver on its commitment to implement the issuance of a single Central American license for pilots, which “will allow airlines to respond to rising passenger and cargo demand.” Governments in the region were also urged to immediately conduct a thorough analysis of the cost struc-

ture of fuel in the region. “The price of fuel is higher in many countries in Central America than in other countries with similar conditions,” the communiqué noted.

"Aviation is a key driver of economic growth across Latin America and the Caribbean region,” said Peter Cerda, IATA's Director Safety, Operations & Infrastructure, the Americas and Atlantic. “Central America is well positioned geographically to more fully benefit from the connectivity enabled by aviation if the challenges of inadequate infrastructure, excess fees and charges, and a lack of coordination among States can be addressed.”

For his part, IATA Executive Director Alex de Gunten noted that “industry and government must join forces to bring about the changes that have to take place for our aviation's sustainable success. This Aviation Day served to propel a number of areas that should be prioritized. The perseverance of air transport associations like ALTA and IATA throughout the years has helped the industry enhance their safety and efficiency performance. We are aiming for the same level of attention to our concerns this time.”

Future plans? Dulce Carrillo-Kuti, ALTA’s Director of Communications & Media Relations, says another Aviation Day will be held in the Caribbean in early autumn, and in Brazil a couple of months later. These events are seen as an important way to maintain channels of communication between countries and between the public and private sectors. “It is essential that we maintain a spirit of collaboration to realize the full potential that the industry has to offer for the benefit of the region’s economies,” Carrillo-Kuti says.

Perry Flint, IATA Head of Corporate Communications, The Americas, says that the level of communication and cooperation is increasing, but that more needs to be done. “Clearly, aviation is a catalyst for economic growth and development,” he says. “Governments in the region should use the power of aviation to help build their economies and provide connectivity that drives trade and tourism. But lack of adequate infrastructure to cope with rising travel demand could act as brake on development if governments do not act more ambi tiously on airport and airways capacity.” www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

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ASUR

From Mexico to the world

With increasing passenger numbers and terminal renovations, ASUR is making great strides in Latin American aviation with Cancun Airport eropuertos del Sureste (ASUR) has enjoyed success so far this year thanks to its top-performing airport in Cancún. Out of the many airports ASUR operates, Cancún Airport has routinely risen to the top in terms of passenger numbers. Because of the increased activity, ASUR has put several renovation plans in motion to bring the airport’s appearance up to speed with its status as a major Latin American aviation hub.

International passenger numbers for January, February and March 2013 at the airport increased by 7.16%, 4.02% and 11.67% respectively when compared to the same period last year. Passenger numbers for all three months increased by a total of 22.86%. Similarly, domestic passenger numbers for January, February and March were on the rise when compared to the year prior. Domestic passenger numbers increased by 6.08%, 1.94% and 6.97% respectively, totaling to a 22.87% increase. Airlines arriving from the US and Canada are still the main contributors to passenger traffic at the airport.

Making progress Although Cancún Airport takes the top position in terms of the authority’s airports, ASUR’s secondary airports have also experienced notable increases. Cozumel Airport handled 59,487 passengers this past March, a 2.4% increase from the same time last year. Although Huatulco handled 17,130 passengers during the same month, indicating a 41.7% increase from last year, the difference only accounted for just over 2,500 passengers. Mérida Airport came in close to Huatulco, with 12,143 passengers, representing a 26.7% increase.

Passenger numbers at Cozumel, Huatulco and Mérida airports were a mixed bag for the first two months of the year. In January, Cozumel Airport handled 32,288 passengers, followed by 38,830 passengers in February; Huatulco handled 19,654 passengers in January, followed by 18,166 passengers in February; and Mérida Airport handled 9,915 passengers, dropping slightly to 9,576 in February.

Commercial success An increase in passengers has the potential to translate into an increase in duty free purchasing. World Duty Free Group, Cancún Airport’s duty free operator, has brought in a considerable amount of commercial income over the last decade or so. Between 2003 and 2012, commercial income increased by 15.66%. The airport's commercial income went from representing 15.44% of the airport's total income to 27.63%, demonstrating a notable increase of 12.91%.

In addition, in the first quarter of 2013, Cancún Airport brought in a total of US$414,496.29 in revenue, representing 30.16% of the airport's total income. If this performance continues, the airport is looking at around US$1.65 million in commercial income by the end of 2013, which is a whopping increase of 17.2% over last year.

To maintain consumer interest and keep commercial revenue on the rise, ASUR routinely offers duty free promotions at its airports

BY

MELISSA SILVA

such as special discounts, new products, thematic campaigns, tasting events and new product launches.

Successful commercial income means having a successful-looking airport, so renovations of the departures stores in Terminal 2 are currently in the works. When renovations are completed, the space will be double the size. In addition, Cancún Airport’s Terminal 3 will soon see the first stand-alone MAC store in a Latin American airport, measuring 55 square meters.

Up to speed In order to increase the capacity of passenger service, ASUR is renovating Terminal 2 to enlarge the space surrounding security access points. "During 2013, Cancún Airport is performing enlargement, remodeling and relocation projects in Terminal 2," says Manuel Gutiérrez Sola Aguilera, Commercial Director at ASUR. The commercial area in B waiting rooms will be relocated and remodeled and the restrooms in the waiting rooms will also be remodeled and enlarged to improve passenger comfort.

In addition, the electric substation will be relocated in order to have a new escalator installed, which will allow for wider access to room A in Terminal 2 as well as direct access to the new duty free store on the upper floor. Lastly, ASUR will be enlarging the upper floor to provide customers with a more comfortable space and will be relocating several commercial services, including the Duty Free and Duty Paid Shop, the Convenience Store, Sunglass Island, Watch my Watch, Joy Joyería y Artesanías, Los Cinco Soles, Pineda Covalin, Harley Davidson, Grab & Go, Sr. Frog’s, and others.

Construction has already commenced and will be completed any time between this year and 2014. Renovations couldn't have come at a better time, as the number of travelers visiting Cancún in the last few years have been steadily increasing, evidenced by the airport's current passenger numbers. "One of the goals is to improve the passenger's experience at the airport," says Gutierrez Sola Aguilera. Because construction is currently underway, Gutierrez Sola Aguilera says the improvements in terms of wayfinding, check-in, gates and amenities won't be realized until the end of the year. It’s safe to say these changes will not only be realized, but will also amount to a more enjoyable

airport experience.

Total Income at Cancun Airport – 2003 - 2013 History Year Commercial Income Total Income % 2003 221,571.84 1,435,092.35 15.44% 2004 392,861.80 1,923,677.62 20.42% 2005 489,986.66 2,020,168.41 24.25% 2006 541,025.86 2,238,960.82 24.16% 2007 728,908.52 2,725,236.91 26.75% 2008 904,396.89 3,168,707.36 28.54% 2009 941,832.96 3,131,184.42 30.08% 2010 1,041,697.15 4,235,471.89 24.59% 2011 1,187,450.46 4,573,306.41 25.96% 2012 1,414,590.48 5,119,890.03 27.63% Mar-13 414,496.29 1,374,508.08 30.16% Commercial income at Cancún Airport has steadily increased over the last ten years

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ASUR

International passenger numbers for January, February and March 2013 at the airport increased by 7.16%, 4.02% and 11.67% respectively when compared to the same period last year

Desde México al mundo

Con un incremento en las cifras de pasajeros y renovaciones en las terminales, ASUR está dando pasos agigantados en la aviación latinoamericana en el Aeropuerto de Cancún eropuertos del Sureste (ASUR) ha logrado grandes éxitos este año gracias a su aeropuerto de alto rendimiento en Cancún. Aparte del gran número de aeropuertos que opera ASUR, el Aeropuerto de Cancún ha ascendido periódicamente a los primeros lugares en materia de cifras de pasajeros. Debido al incremento de la actividad, ASUR ha puesto en marcha varios planes de renovación para que la apariencia de la instalación esté a tono con su estatus de importante centro de aviación latinoamericano.

El tránsito de pasajeros internacionales correspondiente a enero,

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febrero y marzo del 2013 en el aeropuerto aumentó en un 7.16%, 4.02% y 11.67% respectivamente, en comparación con el mismo período del año pasado. Las cifras de pasajeros en los tres meses se incrementó para lograr un total del 22.86%. Igualmente, la cantidad de pasajeros nacionales en enero, febrero y marzo experimentaron un aumento cuando se comparan con el año previo. El tránsito de pasajeros nacionales aumentó en un 6.08%, 1.94% y 6.97% respectivamente, para totalizar un incremento del 22.87%. Por su parte, las aerolíneas procedentes de los Estados Unidos y Canadá siguen siendo las fuentes principales que aportan tráfico de pasajeros en el aeropuerto.

THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2013

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ASUR

Progresos evidentes Aunque el Aeropuerto de Cancún ocupa el primer lugar entre las instalaciones que opera la autoridad, los aeropuertos secundarios de ASUR también han experimentado incrementos notables. El Aeropuerto de Cozumel recibió 59,487 pasajeros en marzo pasado, con un incremento del 2.4% en comparación con ese mismo mes del año pasado. Aunque el de Huatulco reportó 17,130 pasajeros durante ese mes, cifra indicativa de un incremento del 41.7% incremento comparado al año anterior, la diferencia sólo fue de unos 2,500 pasajeros.

Finalmente, el Aeropuerto de Mérida quedó muy cerca del de Huatulco, con 12,143 pasajeros, y un incremento del 26.7%.

Las cifras de pasajeros en los aeropuertos de Cozumel, Huatulco y Mérida experimentaron altibajos durante los dos primeros meses del año. En enero, el Aeropuerto de Cozumel reportó 32,288 pasajeros, seguido por 38,830 en febrero; Huatulco recibió 19,654 pasajeros en enero, y 18,166 en febrero; y el de Mérida reportó 9,915 pasajeros, con un ligero descenso a 9,576 en febrero.

Éxito comercial Un incremento en el tránsito de pasajeros tiene el potencial de traducirse en un incremento de las compras duty free. World Duty Free Group, operador duty free del Aeropuerto de Cancún, experimentó un aumento considerable de ingresos comerciales en la última década aproximadamente. Entre el 2003 y el 2012, los ingresos comerciales aumentaron en un 15.66%. Los ingresos comerciales del aeropuerto pasaron de representar un 15.44% de las ganancias totales del aeropuerto aumentando al 27.63%, lo cual demuestra un notable incremento del 12.91%.

Además, en el primer trimestre del 2013, el Aeropuerto de Cancún reportó un total de US$414,496.29 en ingresos, representando el 30.16% del ingreso total de la instalación. Si se mantiene este rendimiento, el aeropuerto espera ingresos comerciales de unos US$1.65 millones para fines del 2013, un incremento sorprendente del 17.2% con relación al año pasado.

Para mantener el interés del consumidor y el aumento de los ingresos comerciales, ASUR ofrece periódicamente promociones duty free en sus aeropuertos, como descuentos especiales, nuevos productos, campañas temáticas, eventos de degustación y presentaciones

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de productos nuevos.

Como el éxito en los ingresos comerciales equivale a un aeropuerto con apariencia exitosa, ya se están llevando a cabo renovaciones en las tiendas de las secciones de salidas en la Terminal 2. Cuando concluyan, el espacio se duplicará. Además, la Terminal 3 del Aeropuerto de Cancún será muy pronto la primera tienda MAC independiente en un aeropuerto latinoamericano, con una extensión de 55 metros cuadrados.

A toda máquina Para incrementar la capacidad del servicio a los pasajeros, ASUR está renovando la Terminal 2 para aumentar el espacio que rodea los puntos de acceso de seguridad. “En el 2013, el Aeropuerto de Cancún ha puesto en marcha proyectos de expansión, remodelación y reubicación en la Terminal 2”, explica Manuel Gutiérrez Sola Aguilera, Director Comercial de ASUR. La zona comercial en las salas de espera B serán reubicados y remodelados, y los baños en las salas de espera también serán remodeladas y ampliadas para mejorar la comodidad de los pasajeros.

Además, la subestación eléctrica será reubicada, para poder instalar una nueva escaladora, lo cual propiciará un acceso más amplio al salón A de la Terminal 2, así como facilitar el acceso directo a la nueva tienda duty free en la planta alta. Finalmente, ASUR ampliará la planta alta, para proporcionarles a los clientes un espacio más cómodo, y reubicará varios servicios comerciales como la Tienda Duty Free y la Tienda con Pago de Aranceles, la Tienda de Artículos Varios, Sunglass Island, Watch my Watch, Joy Joyería y Artesanías, Los Cinco Soles, Pineda Covalin, Harley Davidson, Grab & Go, Sr. Frog’s, y otros.

Las labores de construcción ya comenzaron y concluirán en algún momento entre este año y el 2014. Las renovaciones son realmente oportunas, pues la cantidad de viajeros que han estado visitando Cancún en los últimos años ha aumentado continuamente, lo cual evidencian las cifras actuales de pasajeros en el aeropuerto. “Uno de los objetivos es mejorar la experiencia del pasajero en el aeropuerto”, añade Gutiérrez Sola Aguilera. Como los trabajos de construcción están en marcha, Gutiérrez Sola Aguilera agrega que las mejoras en términos de orientación, despacho, puertas de salida y amenidades no se materializarán hasta fines de este año. Es prudente destacar que esos cambios no sólo se materializarán, sino que también propiciarán una experiencia más agradable en el aeropuerto.

THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2013

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Airline News

Aviancataca signs agreement with CFM valued at US$2.7 billion Panama based AviancaTaca Holdings recently announced that is has selected the advanced technology LEAP-1A engines to power 33 Airbus A320neo family aircraft, in addition to ordering CFM56-5B engines to power an additional 18 Airbus A320ceo family aircraft.

The airline has also opted for a comprehensive engine maintenance service package.

The agreement has a total combined value of US$2.7 billion at list price.

AviancaTaca signed a 15-year RPFH (Rate per Flight Hour) agreement to support both the new CFM56 and LEAP engine fleets under which CFM will guarantee maintenance costs on a dollar per engine flight hour basis. Deliveries of the A320ceos are scheduled between 2014 and 2016, while the A320neos will be delivered in the 2017 to 2019 timeframe. The airplanes were originally announced in June 2011.

Avianca has been a CFM customer since 2006 and currently operates a fleet of 66 CFM56-5B-powered Airbus A320 family aircraft. The airline merged with TACA in 2010 to create one of the largest carriers in Latin America, transporting more than 23 million passengers in 2012. The new aircraft will be used for both fleet renewal and growth.

“We picked the LEAP-1A after a very thorough technical evaluation and we believe it is the right engine for our A320neo fleet,” said Fabio Villegas Ramirez, CEO of AviancaTaca. “The fuel efficiency it will bring coupled with the CFM standard for reliability and for maintenance cost will

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make it a critical tool in implementing our long-term growth strategy.”

“This order is a continuation of what has already been a phenomenally good relationship,” said Douglas Izarra, VP Americas Sales for CFM. “We are excited to bring all of the benefits of LEAP technology—double-digit improvements in fuel burn, noise and carbon and NOx emissions

with CFM reliability—to AviancaTaca. We believe these engines will prove to be real assets for the airline.”

“We are always honored when an airline of this stature continues to put its trust in CFM,” said Jean-Paul Ebanga, President and CEO of CFM International. “We are looking forward to a great future with this team and to proving that their trust is well placed.”

AMR Corporation reports April 2013 revenue and traffic results AMR Corporation recently reported April 2013 consolidated revenue and traffic results for its principal subsidiary, American Airlines, Inc., and its wholly owned subsidiary AMR Eagle Holding Corporation.

Consolidated traffic was 1.1% lower year-over-year on 0.4% more capacity, resulting in a consolidated load factor of 81.%, 1.3 points lower than the same period last year. Domestic capacity and traffic were 1.5% and 1.4% lower year over

year, respectively, resulting in a domestic load factor of 85.%, 0.1 points higher compared to the same period last year.

The international load factor of 78.6% was 3.1 points lower year over year, as traffic decreased 0.6% on 3.4% more capacity.

April's consolidated passenger revenue per available seat mile was an estimated 2.9% below the same period last year. On a consolidated basis, the company boarded 8.8 million passengers in April.

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LAN Airlines now offers the widest selection of entertainment on flights to and from South America In 2013, LAN improved their selection of in-flight entertainment available on long-haul flights on its Boeing 767, Boeing 787 and Airbus A340 fleet, increasing the number of movies from 45 to 110 and thereby consolidating its position as the airline group with the widest range of in-flight entertainment in South America.

The 110 movies now offered onboard LAN flights include 12 new features every month, 8 movies recommended in recent months, 10 of the best Latin American films, plus 90 of the best movies of all time.

In addition to movies, the entertainment system offers three complete seasons of television series updated every six months, 42 TV channels, over 1,000 music CDs (10 new CDs each month), 10 exclusive audio channels and 25 games, that allow passengers to play alone or with other passengers.

“Several studies that we conduct every week indicate that what passengers value the most are movies, especially new releases. For this reason we invested in increasing considerably our in-flight selection, which now puts us well above other airlines in the region and in the top ten worldwide. We have chosen the best television series for our frequent flyers, such as the popular The Newsroom, whose third season is complete on board,” said Fernanda Toro, Travel Experience Manager at LAN. A good selection criterion is key in meeting passengers’ expectations, said Toro: “We are

pleased with our current selection. Proof of this is that eight of the movies available on LAN flights were nominated for Oscars in 2013, including “Silver Linings Playbook,” “Life of Pi,” “Les Miserables,” “Argo” and “Amour.”

The person who advises LAN in selecting their content is the prominent journalist and movie critic Ernesto Ayala, who has been selecting movies for the company for four years.

Ayala said that the movie selection for LAN passengers focuses on quality combined with the variety of selection. “Our main concern is to achieve a mixture of movies that combine two criteria— quality and diversity—in the smartest way possible. We are interested in attractive releases for every passenger and that these movies are of the highest quality. Thus, each month we offer the best comedies, dramas, romantic movies, action movies and independent films."

It is also worth mentioning that in 2012 LAN Airlines implemented a new entertainment system on board the new cabins for its Boeing 767 and 787 models. The main features of the new LAN in-flight entertainment system include higher definition screens and the new generation of 100% touch screen technology (9-inch for Economy Class and 15.4-inch for Premium Business Class).

For convenience, all cabins on the abovementioned fleet have a universal connection to charge computers, cell phones, iPods, tablets or other electronic devices.

Avianca Holdings successfully debuts in the international capital markets Following an extensive roadshow led by Citigroup and JPMorgan, which included cities such as Bogota, London, Boston, New York, Los Angeles, Lima and Santiago, Avianca Holdings successfully priced its inaugural seven-year international bond. This offering received orders from investors in excess of US$2.3 billion dollars.

More than 180 institutional investors participated in the transaction, supporting the company’s medium- and longterm business plan.

“Our entry into the international capital markets is a key milestone in the completion of the strategic objectives we have laid out for the company. This is one more step in our path to become the leading Latin American air services provider preferred by our customers worldwide. The results of this transaction reaffirm the market confidence in our business plan,” said Fabio Villegas, Avianca Holdings CEO. Avianca Holdings S.A (BVC:PFAVTA) is an investment firm that serves as an instrument for the execution of the shareholders agreement which resulted in the integration process known as AviancaTaca and acts as the controlling company for the integrated operation of various airlines, including TACA, that operate both domestically and internationally.

Guadalajara International Airport focuses on better connectivity within Mexico Grupo Aeroportuario del Pacifico (GAP) has announced that it continues to better its service throughout Mexico and indeed throughout the world. The airport authority has begun offering more flights to a number of different destinations at varying times across the 12 airports it manages in Mexico.

Starting on a scaled basis from May 22, the following new routes and times will be available to travelers: ■ Guadalajara – Chihuahua (Starting May 22 on Tuesdays, Wednesdays and Thursdays at 8:07 pm) ■ Guadalajara – Chihuahua (Starting May 23 on Wednesdays, Thursdays and Sundays at 10:47 pm) ■ Guadalajara – Puebla (Starting May 23 on Mondays, Wednesdays and Saturdays at 8:30 am) www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

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Yves Saint Laurent

YSL hits high gear in travel retail BY

HIBAH NOOR

For 2013, Yves Saint Laurent accelerates its approach to key markets and rolls out new products

Y

ves Saint Laurent is strengthening its position in travel retail in the Americas, says Renata Holmes, YSL Marketing Manager. YSL is part of the L’Oréal Luxe division, known as Parbel for the Americas division.

“In terms of fragrances, our strategy is to accelerate the growth we have been experiencing,” Holmes says. The company will continue to promote the growth of the L’Homme fragrances, but in female fragrances there is an opportunity to open up new markets.

“We have iconic feminine YSL fragrances, such as Opium or Paris, which have been on the market for over 30 years,” Holmes says.

“These are true classics to our consumers.”

Besides the timeless classics, YSL is opening up to new consumers with the recent launch of the new Manifesto fragrance.

YSL describes Manifesto as “a fragrance of independence, which affirms every facet of a personality on the go.” It was created by IFF’s Anne Flippo and Loc Dong around the idea of an olfactive encounter between a woman living in Paris and a man from New York. Key ingredients include white jasmine, lily of the valley, blackcurrant, cedar, sandalwood, vanilla and tonka bean.

“I think it would be simplistic to call this a floral fragrance, even though jasmine is one of its main aspects,” says Dong. Flippo notes that “it’s an audacious fragrance, full of contrasts, making a genuine statement, a real signature.”

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The Manifesto flacon, in 50ml and 90ml edp sprays, is a slim glass prism sporting an amethyst-colored, belt-like jewel. The cap logo and accents are gold. The face of Manifesto is actress Jessica Chastain, and the print ad campaign features Chastain with her hands coated in purple paint.

Manifesto has already gained new consumers for the brand in Europe, and is now launching in the Americas and Asia territories.

Holmes notes that the launch of the fragrance in Argentina and Brazil is underway now, and says that so far the feedback is very promising.

For July, YSL also has a limited edition of Paris Premières Roses in the works, as well as a limited edition of L’Homme Libre Cologne Tonic. The latter follows last year’s launch of the L’Homme Libre product, part of the L’Homme line, which today is the brand’s most important pillar.

The new variation is a citrus accent on the original. The L’Homme Libre juice, formulated by Olivier Polge and Carlos Benaïm, opens on notes of bergamot, violet leaves, basil, star anise, nutmeg and pink pepper. Other key ingredients include patchouli, vetiver, resin and leather.

The flacon is a reinterpretation of the original L’Homme and La Nuit de l’Homme bottles, capped with the signature hexagonal cap. The color scheme is silver and blue.

The Extremely YSL for Eyes palette is designed to provide a full eye makeover while traveling, and is available only in airports and on specific airlines Yves Saint Laurent will continue to promote the growth of the L’Homme fragrances in travel retail

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The YSL fragrance bar concept featured a bar-style area with a real bartender trained to create signature drinks inspired by the key notes of each L’Homme fragrance

A matter of taste YSL tried out its new “YSL fragrance bar” concept at Los Angeles airport in March. The onemonth animation featured a bar-style area with a real bartender trained to create signature drinks inspired by the key notes of each L’Homme fragrance. “We are asking tired travelers to come to the YSL bar for refreshments,” Holmes says. “They choose the drink they like, and based on their choice we offer them to try the corresponding fragrance.”

The promotion helped to boost sales of YSL fragrances above expectations in comparison to the month before, Holmes says. “It brought a lot of positive attention to the brand.” YSL Yves Saint Laurent describes Manifesto as “a fragrance of independence, which affirms every facet of a personality on the go”

will repeat the animation in key travel retail stores throughout the Americas.

Another signature YSL product, Touche Éclat, has been a staple on the market for 20 years. A Touche Éclat pen is sold every 10 seconds.

“In its sleek gold case, the Touche Éclat pen has become a true make-up icon,” YSL says.

“The pure luminosity of a complexion revealed by a magical formula loaded with micro-emitters that have made Touche Éclat the essential, high-tech beauty accomplice for two decades.”

Touche Éclat was reinforced last year with the addition of Le Teint Touche Éclat, the line’s new foundation.

Since 2012, Yves Saint Laurent has also offered world travelers its “Very YSL” make up Palette, with the signature Couture cases available exclusively at airports, duty free stores and onboard selected airlines. YSL has positioned the Palette as an essential travel accessory, and 2013 is witnessing a number of new developments, including the launch of “Extremely YSL.” “Extremely YSL is the first complete make up palette by YSL,” says Holmes. The new product has an assortment of 12 shades, along with applicators and mini mascara. Holmes says it was YSL’s number one seller at the launch event in Miami airport.

Extremely YSL for Eyes is designed to provide a full eye makeover while traveling, and is available only in airports and on specific airlines. The palette contains a large mirror, two brushes and an internal pouch and is sized to fit into a pocket. The champagne highlighter is accompanied by matte black to highlight the lashes.

The new Majorelle Blue shade follows on the red and purple editions—the palette jewel case contains ten colors assembled by brand makeup artist Lloyd Simmonds to work singly or in duos and trios. The kit is complemented by a “look book” that explores Simmonds’ sources of inspiration and offers a range of tactics and combinations.

The Palette devoted to Parisienne is also designed for women who travel frequently, picking up on YSL’s “Yconiques” codes such as black, gold and YSL Cassandra. It is also being made available only through airports, duty free stores and select airlines. This product has been designed to be versatile, enabling the user to recombine and restyle cheeks, lips and eye makeup quickly as needed. The slim-case palette comes with a wide panoramic mirror and for the first time includes Couture colors by Lloyd Simmonds.

“We aim to inspire our YSL consumers on how to use the palettes and discover countless possibilities of different signature makeup looks,” Holmes says. The brand has developed YSL makeup palette “look books” which are designed to help customers recreate the makeup looks easily. The look books will be available in all locations where the palettes are sold.

Last year YSL introduced a new skincare anti-aging line called “Forever Youth Liberator,” which introduced glycobiology technology. The line has since won the prestigious Elle beauty award as best anti-aging serum for 2013, as well the Marie Claire beauty award.

Holmes says that the brand’s current mission is to position Forever Youth Liberator in key points of sale where the brand provides premium service to consumers. “The line has been a true success in the local market in Japan, and we feel it in our performance in our key doors with Japanese consumers,”

says Holmes.

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EXTREMELY YSL

THE NEW TRAVEL EXCLUSIVE MAKE-UP ACCESSORY

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Beauty News Repechage brings the sea to duty free Over 30 years skincare company Sarkli Repechage (Repechage) has become known for its use of seaweed for premium skincare.

A family-run company, Repechage has a 50,000-square-foot manufacturing facility in Secaucus, New Jersey, and processes all of its seaweed in-house. “We have certain technology that allows us to do that,” says Lydia Sarfati, President and CEO. “The 100% concentrated extract of the seaweed is used in all of our formulations.”

Repechage is available domestically in over 30 countries and in all continents, with headquarters in Manchester, UK for the European market. After realizing there was substantial demand for its products at airports, Repechage decided to enter duty free. “This is our first venture into the travel retail market,” explains Sarfati. “In the last 33 years we’ve been available in spas and salons. We’re venturing out into the retail market with duty free and the reason why is because so many of our clients travel, and they always ask us why we don’t sell in travel retail.”

The company plans to have its products available worldwide.

“Repechage,” which means “second chance” in French, stands out among skincare brands for innovative products and treatments based on the principles of thalassotherapy. “It’s the therapeutic usage of sea water and seaweed—it’s a concentration of all of the properties of the sea,” says Sarfati. There are over 40,000 species of seaweed, and Repechage utilizes approximately 12 different species in its manufacturing process. "We have the ability of producing our filtrate, which is the concentrate of the seaweed, and this has 18 amino acids, 12 vitamins and 42 trace elements,” Sarfati says. “What’s wonderful about the serum of seaweed is that it’s very light and the molecular structure is very low and can easily absorb into the skin.” Repechage says that this structure means

Repêchage’s Sea Spa Body Care travel kit

Repêchage’s Hydra 4 travel kit for sensitive skin

that its products effectively hydrate, rebalance, regenerate, oxygenate, mineralize, detoxify, purify and offer anti-aging benefits.

Of the brand’s 167 products, Repechage has selected those that it felt would be best for travel retail. “We picked body oil, body wash, bubble bath, sea salt, hand and foot cream, and body cream,” says Sarfati. “We chose products that work really well for all skin types.” The selected products will be available in travel size in specially created travel kits.

L’Occitane gives back to move forward French skincare and fragrance company L’Occitane En Provence has been performing well in duty free, achieving double-digit growth for the last five years thanks to its identity as a brand. “We’re quite different from what you see with traditional brands in duty free,” says Maria Carolina Villanueva, Trade Marketing Specialist.

“We started with body products many years ago. We have over 10 years’ experience with face care and fragrances. Our hand cream is the symbol of L’Occitane.” Villanueva believes L’Occitane is an “inspirational brand” in the local market for Latin Americans. “The discount and savings are great in duty free for them,” she says.

For many years L’Occitane has been very active with philanthropic initiatives. The newest initiative is the brand’s partnership with Orbis, a non-governmental organization whose mission is to “fight blindness.” “It’s a flying hospital—an airplane that goes to remote places where there are no medical services, such as an optometrist, and where people don’t have the means to see an 64

optometrist,” says Villanueva. L’Occitane has been working with Orbis for a number of years, in accordance with The L'Occitane Foundation which has two long-term missions: supporting the blind and the economic emancipation of women. “The flying hospital is now being renovated and they’re going to make a section that looks just like Provence because of the significant contribution L’Occitane has made to the organization,” Villanueva adds.

In 2010, The L’Occitane Foundation partnered with “Aide et Action” to support women’s literacy centers in Burkina Faso, where it sources its shea butter. “Our bestseller—our hand cream—includes shea butter,” says Villanueva. “Since 1982 we started a development agreement with Burkina Faso, which is one of the poorest countries in the world. We started working with 100 women and now we work with 1,300 women.” L’Occitane purchases 80% of the shea butter produced in Burkina Faso, and have also built schools in the country.

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Clarins refines its approach to Latin America Following the introduction of a new set 200ml plus 30ml (complementary), special edition Azzaro Pour Homme specifically for Brazilian travelers, Clarins is sizing up its options in the Latin American market. The field seems wide open coming on the heels of a major restructuring of the brand’s management team in the Americas, a move which has yielded major sales gains across many of the house’s brands. Clarins has responsibility for Thierry Mugler’s Angel and Alien, Clarins cosmetics and Azzaro fragrances.

Azzaro Pour Homme blends notes of citrus and lavender, with noble woods and aromatic notes based on patchouli, vetiver, sage and basil, finishing with amber, musk and sandalwood. On the olfactive scale the fragrance registers as an aromatic woody fern.

“Our local partners will be very interested in this tactical offer,” says Massimiliano Giordano-Don, LATAM – TR Americas Marketing Director, Clarins Group.

“If you analyze the Brazilian local market, you’ll see that the first in volume for the Brazilian market in 2012 results is the 30ml size of Azzaro Pour Homme. I know that in travel retail they’re looking for big sizes and special offers, so instead of making a discount on the 200ml we’re offering a 30ml additionally.”

In addition to introducing Azzaro Pour Homme’s 200ml set to the Brazilian local market, Clarins is offering it in travel retail in Sao Paolo and Rio. Giordano-Don says the fragrance is at other airports in the Americas, such as Miami, where the product will also get good exposure with Brazilian passengers.

Giordano-Don explains that Azzaro was one of the first major brands to enter the Brazilian market in the early 1980s. With 20%

alcohol content the juice is long-lasting, which is an important factor for Brazilian customers, he says. “The perception of the brand is Paris. Azzaro Pour Homme has a high-end Parisian image, and the juice itself is very masculine and strong. Brazilian men love this image of strong men. It explains the success of the fragrance.”

Giordano-Don anticipates double-digit growth in Brazil, well ahead of the overall 3-5% growth for Latin America. In Brazil, Azzaro Pour Homme is offered with a gift-with-purchase spray. “If you buy an Azzaro Pour Homme 100ml, you get the Azzaro Pour Homme spray. You can’t purchase this spray—it isn’t sold anywhere,” he says.

The GWP is exclusive to Latin America local and travel retail markets. Having Enrique Iglesias as the face of Azzaro helps reinforce the product’s credentials with younger customers, Giordano-Don says.

Special edition of Azzaro Pour Homme tailored to Brazilian travelers

Beauty2Market continues to expand Beauty2market (b2m) represents a number of skincare and fragrance brands in the travel retail market, including skincare company Be Fine Food Skincare (Be Fine). In addition to Be Fine, b2m represents fragrance brands New York Yankees, Isaac Mizrahi (for North America) and Victor Manuel internationally (both local and duty free). B2m recently added Brut Fragrances to its portfolio and was given exclusivity for Brut’s glass bottle and has also signed an agreement to distribute Brut Black and Brut Blue, the brand’s two line extensions.

Domestically, this summer there will be new line extensions for Victor Manuel—Miami, New York and San Juan. “We will launch those brands in Puerto Rico because that’s where Victor hails from and is most well known as a singer and performing personality,” says David Tillman, Founder of Beauty2Market. “He just received an award at the Billboard ceremonies— — Best Tropical album 2012.

The company recently added Brut and the all-natural Australian men’s skincare and grooming line VitaMan to its roster for both global travel retail and expansion into the US domestic market.

Be Fine is currently working towards increasing its exposure in duty free and is reportedly in discussions with Canadian distributor Prestilux for Canadian domestic distribution. “Their background is very well established in skincare; they handle many top brands in specialty stores,” says brand owner Michael Barbanel. In addition, Be Fine is in the process of creating new packaging to upgrade the brand’s current look.

B2m plans to continue expanding its portfolio, and is currently market testing Steve McQueen’s fragrance, The King of Cool, although it hasn’t confirmed distribution. “We don’t know the status of the license yet or if we will take on the brand,” says Tillman. “Although he’s been gone for over 30 years, McQueen is an iconic celebrity and has become a well know brand with widespread recognition.”

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Shiseido

The Ibuki line offers a total of seven products—two cleansers, one softener, one day moisturizer with SPF 15, two night refining moisturizers and one eye cream

Service for

success

BY

MELISSA SILVA

With a new skincare line and a new target demographic, Shiseido stays focused on service

F

or over 140 years skincare powerhouse Shiseido has offered a sophisticated range of skin and cosmetic products to an up-market clientele. Focusing on service and technology, the brand has started to explore a new consumer group by way of its new age-specific hydrating line "Ibuki."

Named after the Japanese word for inner strength, vitality and life, Ibuki was created to capitalize on one of Shiseido's skincare pillars—hydration. "The objective is to launch this line in order to target a younger generation, which is called Generation Y or the 'millennials,'" says Jo-Ann Santiago, Marketing Manager. The specific age demographic of this group is 20s to early 30s.

"The line will target ‘The Skincare’ line consumers—the existing line that Ibuki is replacing—as well as this younger generation of consumers, consumers that have a very strong brand loyalty, very strong word of mouth, are connected 23 hours a day,” says Santiago. “When they look for a brand or a product, they believe in authenticity, they believe in the quality of the brand, and once they find a brand or a product that they like, they stick to it.”

Offering strategic solutions Shiseido's objective with Ibuki is to serve as the solution for skin concerns commonly seen with younger consumers. "Usually they start to notice changes in their 20s and those changes are due to factors which are external as well as internal, factors such as UV rays, dryness and pollution," explains Santiago. Other factors include diet, which tends to be poor among this age group, and lack of sleep. "So during the 20s all those skin concerns start to appear, to show, and we want to offer that consumer a solution, a line that is simple and one they will benefit from."

In addition to hydrating, Ibuki is also designed to build resistance in the skin. The line offers a total of seven products—two cleansers, one softener, one day moisturizer with SPF 15, two night refining moisturizers and one eye cream.

"The key product will be the refining moisturizer because besides hydrating, it will also address specific benefits such as breakouts, or pores or uneven skin tone," says Santiago. "So when you 66

look at the market, you either have moisturizers that are for hydrating or serums that address specific needs, but our refining moisturizer will address all the needs in just one product." By offering one product that addresses several needs, Ibuki is positioned to do well with this younger consumer group as they tend to gravitate towards the easy skincare solutions that offer value for their money.

"We are trying to educate them to have the basic needs," says Santiago. The price points for the line range from US$25 to US$45.

Shiseido has already received positive feedback regarding the line and is planning extensive marketing initiatives. "Internal feedback has been quite positive so far and we’re all very excited and we’re going to be allocating a substantial amount of investment behind it," says Michael Gebrael, Regional Director, Travel Retail Americas. Shiseido's advertising objectives for the new line involve supporting the launch with a 360-degree marketing approach. "We need to go to them, because usually they don’t go to the store to buy skincare," says Santiago. Ibuki will launch globally this September.

In addition to launching Ibuki, Shiseido also plans to continue supporting and expanding its customer following with its successful premium line, Future Solutions LX. "We are launching a new body cream and a new formulation for the serum in early 2014," says Isabela Casado, Marketing Coordinator. "We’re definitely capitalizing on the line’s spokesperson Jennifer Connelly,” Casado adds. Connelly will remain the line's spokesperson for another year.

Added value through service

mentary hand massages at Shiseido counters worldwide, which did very well. "The whole idea is to put the brand out there and stop traffic and offer the service and educate them on our products and try to get them to know our products," says Gebrael. "This year we will continue doing events on counter to support the different lines and launches."

Sun care events do very well for Shiseido in the Caribbean and South America, while events involving whitening and brightening products as well as hydration masks do very well with consumers in the vast Asian market. Currently, the brand is running an event surrounding its new Perfect Rouge lipstick called "Kiss and Tell" in key airports in North America and South America.

As for border stores, Shiseido is doing well at the Brazil-Uruguay and BrazilArgentina borders thanks to the brand's strong presence in the Brazilian market. "So when you put all the categories together, including MAC and Victoria’s Secret, we're number four," says Gebrael. “A fair comparison would be without Victoria’s Secret, because we don't consider it part of the category, but some retailers do, so in that case we would be number three."

Currently Shiseido is accelerating the rollout of new brands within its portfolio, and has already added successful cosmetics brands Bare Minerals and Nars to its roster. Shiseido will also be opening the first Cle de Peau store in Vancouver in a few months. Although the biggest shift the brand is engaging in is accelerating the rollout of its portfolio, Shiseido plans to stay focused in the months ahead on its core strengths—service and technology.

Because one of Shiseido’s main priorities is service, the brand normally offers Michael Gebrael, Regional Director, Travel Retail Americas; two large worldwide promotional Jo-Ann Santiago, Marketing Manager and Isabela Casado, Marketing Coordinator with Shiseido’s Future Solutions LX line events a year, which are often educational in nature. In 2011 Shiseido launched its "Passport to Beautiful Skin" event and in 2012 ran its most successful event to date, "How Thirsty is Your Skin?"

For its 140th anniversary last year, the brand also offered compli-

THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2013

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THE 1ST ANTI-AGING CARE*

TO CHALLENGE A LASER SESSION

NEW

REVITALIFT RE-PLUMPS RE PLUMPS / RE-FIRMS RE FIRMS / REFINES

EFFICACY TESTED AGAINST ONE LASER SESSION:

FOR THE 1ST TIME THE EFFICACY OF OUR SKINCARE USED DURING 8 WEEKS WAS COMPARED WITH ONE LASER SESSION ON CROW’S FEET.

“AN INSTANT MAKE-OVER FOR MY SKIN” Andie MacDowell.

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Confectionery News Perfetti gains presence

Since promoting Susan de Vree to Manager Global Travel Retail back in December 2012, confectionery giant Perfetti van Melle has made a more distinct separation between travel retail and the domestic market. “This is very important in my opinion,” says de Vree. “This year there will be a very clear focus on our side towards travel retail. I’d like to invest more in category management.” With Perfetti’s strong background in trade marketing, de Vree is confident the company can help the retailer to grow the total confectionery business. “With the right view on the category and the right visibility tools, we will increase purchases for gifting and direct consumption,” she says.

De Vree feels Perfetti needs to be clearer about identifying who its traveler is and what the traveler expects instead of focusing solely on new developments. “We really need to look at traveler needs and requests,” explains de Vree.

In addition, de Vree feels the company’s focus should not only be on international brands, but also on local brands. “Currently we are covering the market with our biggest international brands Chupa Chups and Mentos, but we noticed there is a need for a more local approach as well,” she says.

This year, Perfetti’s target is to increase the presence of sugar confectionery in the total confectionery segment. “For example, giving 10% more space for chocolate will not increase sales by 10%,” explains de Vree. “If you increase space for sugar confectionery by 10%, your sales will increase by 10%. It’s underdeveloped; it’s not a fair share within the business.” Perfetti has also noticed that retailers are focusing more on sugar confectionery, as they’ve come to realize that there is a need for sugar and not only for chocolate.

Sales are doing well for Perfetti and the company is

growing in Latin America. The US is a market that isn’t very mature for us yet,” says de Vree.

Chupa Chups remains one of Perfetti’s biggest “We started five years ago and international brands noticed this year that retailers are searching for us instead of the other way around.” Retailers have shown excitement in response to Perfetti’s first licensed product, its Smurf markers set. “It’s completely in line with that travel is about,” says de Vree. “The response from our retailers is amazing—they’re so excited. This set fills every need.”

As for consumers, de Vree has noticed gifting items have become increasingly popular, which puts the Smurfs Markers set in a position to do well. “The set is nice for gifting,” she says. “If you bring your children traveling, you can Retailers have shown excitement in entertain them on the airplane.” response to Perfetti’s first licensed product, its Smurf markers set

Hershey’s mixes it up Continuing its tradition of bringing goodness to consumers around the world with great tasting snacks, Hershey’s World Travel Retail has launched two travel retail exclusive products.

Two new extra-creamy chocolate bar flavors, Hershey’s Creamy Milk Chocolate Bars and Hershey’s Creamy Milk Chocolate Bars with toffee and almonds will make their debut. Both bars are 193g and come in an easy-to-open pack for convenience on the go. In addition, Hershey’s is introducing a new Variety Box, which offers an assortment of four favorite Hershey’s 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 exclusives and will be available beginning May 2013, debuting at TFAP in Singapore.

“Our new extra-creamy chocolate bars bring travelling global consumers the taste profile they prefer while showcasing our iconic, high-quality milk chocolate elevated to new levels,” says Steve

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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.”

Also being shown is Brookside, which is an ideal fit for duty free with its range of dark chocolate and fruit. Hershey’s will be highlighting three core Brookside products—Dark Chocolate Pomegranate, Dark Chocolate Açai with Blueberry and Dark Chocolate Goji with Raspberry. Brookside is already a proven success in Canada and the other global markets where it is available.

THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2013 Brookside offers a range of rich dark chocolate and healthy fruit

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Guest Writer

Accelerating category growth in the turbulent global travel retail market BY

C

ALAN BRENNAN, CUSTOMER MARKETING MANAGER, NESTLÉ INTERNATIONAL TRAVEL RETAIL

onfectionery is one of the core categories in the Global Travel Retail Market (GTRM) and has consistently delivered growth over the last five years. However, the pace and level of growth has slowed down – primarily driven by the combined forces of a turbulent economic environment, with retailers/brand owners applying the same legacy business model and retail practices to deliver category growth. Despite the shift in the traveler landscape – where BRIC, notably the Chinese, are shaping and driving sales growth in the GTRM – the traveler’s appetite for shopping and spending continues to diminish, which is impacting on the level of footfall and conversion in the retail store.

Against this challenging and turbulent environment, Nestlé International Travel Retail (NITR) has developed an insight-driven, category initiative called Perfect Store, which provides retailers with a framework of category drivers that provide the building blocks to increase footfall, conversion and basket size.

How? Firstly, by gaining insight to understand the traveler, their needs and expectations and secondly, to better-understand their associated behaviour in-store to establish the barriers to purchase.

Using this understanding, NITR has developed a three-step process: INSIGHT-ACTION-EVALUATION. This is used to develop an activation to overcome the barrier to purchase, which is then brought to market and measured.

Over the last 18 months, NITR has engaged with a number of key retail partners from different regions and channels within the GTRM on the benefits of Perfect Store, namely in terms of how it can increase sales and deliver incremental category growth.

As a result, a number of global category projects were commissioned where the principals of Perfect Store were applied based on an individual framework constructed on a store-by-store basis that centered on the shoppers’ need and motivation to purchase.

One of the biggest category projects undertaken in 2012/13 was at Schiphol Airport with Schiphol Airport Retail (SAR) at their Lounge 2 Central Store: a multi-category retail store of Liquor, Tobacco and Confectionery. The store had a poor track record for confectionery performance, particularly when benchmarked against other retail stores at Schiphol and against the average growth rates of the confectionery category in the GTRM.

The Project Goals ■ ■ ■ ■ ■

Increase Confectionery category sales value growth Increase Spend Per Head (SPH) Increase the Average Transaction Value (ATV) Increase the number of confectionery baskets Increase the number of baskets with two or more categories

The Strategy To target the confectionery and non-confectionery browser with five activations to accelerate confectionery sales growth.

How? ■ Greater range management efficiency ■ Redesign the confectionery category with a new segmentation plan ■ Locate complimentary categories together; premium confectionery and wine/champagne ■ Implement simple and engaging call-to-action category signage ■ Implement a central cross category Cash Till Point queuing system

The Results (May – Nov 2012/11: benchmarked against passenger growth (PAX) of 2%)

■ ■ ■ ■ ■

Confectionery category sales value growth Spend Per Head (SPH) Average Transaction Value (ATV) Number of confectionery baskets Number of baskets with two or more categories

+14% +12% + 4% + 9% + 4%

What’s more, total store sales across all three categories accelerated by +12% indicating the positive knock-on effect of the actions taken. The ATV of key nationalities also increased highlighting the positive impact of the activations in targeting key shopper nationalities. For example, Chinese and Indian shopper ATV increased by +12 and 9% respectively.

The performance of the Lounge 2 Central store continues to accelerate, with confectionery category sales growth increasing by an additional 200bps at the end of March 2013 despite the uncertainty and stability of the economy within the EU. This project is just one example of how Perfect Store can accelerate category sales growth and deliver results in a turbulent and everchanging trading environment of the GTRM. Perfect Store will continue to evolve and develop as NITR gains new traveler and shopper insight that will allow for a better understanding of the barriers and provide retailers with category solutions to increase footfall, conversion and basket size to ultimately, deliver

accelerated category sales growth.

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

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FLO

Going with the FLO BY

FLO’s new travel kit features a special organizer—a small pouch with a built-in mirror designed to store the most essential cosmetic products

MELISSA SILVA

The FLO fragrance atomizer brand is ICG’s key to new markets

T

he mission of concept-to-manufacture product development company ICG Ventures is to find rapidly growing markets for an array of products and services. The company’s specialty is capitalizing on fresh opportunities and conceiving, designing, producing, marketing and managing new products, such as FLO, the fragrance atomizer brand.

“ICG is the company behind the FLO accessories brand,” says Adoram Leshem, CEO. “What we do is look for unmet needs or consumer problems for people who travel, especially from the angle of personal care and beauty, and we develop products for this segment.” FLO started with the fragrance atomizer, a travel-size device that enables easy refilling of perfume, eau de toilette and cologne from any regular size bottle. “It enables people to take their fragrance with them anywhere, especially when traveling. With all the airport difficulties and security no one actually really wants to take their expensive fragrance bottles with them,” explains Leshem. Unlike "conventional" atomizers, FLO has been designed using interfunnel technology and thus doesn’t require a funnel or any other type of filling mechanism.

“It’s the only smart atomizer made of glass—it’s the best solution for travelers,” he adds.

Once FLO began receiving good distribution, ICG began looking into what else was needed in the travel beauty sector. “That’s how we started to develop, by understanding this segment of travelers, especially women who are traveling— understand and learn about their needs. This is how the system evolved and developed, and now we are really hands-on with what women need when they’re traveling,” says Leshem.

“Travel retail is a big part of what we’re doing.”

In 2005, ICG started out in domestic retail with Sephora and other leading beauty retailers. When the company got more traction in the last two years, it started to invest heavily into travel retail. ICG is now working with companies like British Airways, KLM, Virgin, easyJet, Austria Air and several others. “We have quite a lot of airline clients and we are develThis year ICG will launch its new LED celebrity mirror, which is already performing very well with the airlines

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FLO’s fragrance atomizer enables easy refilling of perfume, eau de toilette and cologne from any regular size bottle

oping our presence in duty free shops,” says Leshem. “It’s rapidly growing thus validating our hard work and focus.” ICG is interested in targeting and entering all regions and plans to take FLO global. “Our products are customized for travelers— mostly for women traveling,” Leshem says. “So usually it’s the same needs all over the world.”

ICG attends all of the major travel retail shows and conferences to gain even greater exposure in the industry. “We’re going to get more and more involved and get as many clients as we can and expand our network of agents and partners,” explains Leshem. In addition, the company will have news in the coming weeks that Leshem believes will change the perfume world for travelers and on-the-go users. “I think it’s going to get a lot of attention all over the world,” he adds. “It’s a very, very big project that we’re working on— its development and took us about four years. We’re working with some of the largest makeup brands of fragrances—international ones of course—and we are all very, very excited about it.”

This year ICG will launch its new LED celebrity mirror, which is already performing very well with the airlines, and will also launch new hair accessories for travelers including the click-to-release elastic hair band. “We are very, very excited to develop and invest much more in our brand in travel retail,” says Leshem. “It’s a very strategic channel for us and I think that everyone in the industry is going to see and hear about us more and more, and we’re very happy and proud about it.”

Currently the company is talking with a few distributors and agents and plans to approach more airlines and cruise lines as well as border stores. FLO will be launching its new travel kit that will have a special organizer—a small pouch with a built-in mirror. “It’s designed to store the most essential cosmetic products, like lipstick, lip gloss, mascara—and we developed a very small size of our crystal nail file to fit in this organizer, so we’re going to commercialize it and sell it to travelers in a set with an optimizer,” explains Leshem.

“We are always trying to analyze the usage patterns and come up with the best offering for every situation for our clients.”

Although FLO started as an atomizer, the company plans to take the brand further in the coming months. “Now we’re taking it to a totally different place, and the reactions we’re receiving are amazing, so we’re all very, very excited,” says Leshem. The plans involve developing personal care accessories for men in addition to women. “We are constantly developing new additional items for our clients” Leshem says. All of them will be under the FLO accessory brand, and all of them will be in the same category—personal care and beauty

accessories—which makes life in the air much easier.”

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Marcolin

Made in the shade

BY

HIBAH NOOR

Unique Roberto Cavalli frames from Fall/Winter 20132014 collection

Marcolin builds its presence in the Americas

I

talian luxury eyewear company The Marcolin Group has been a category leader for over four decades, benefiting from strengths in design research, product quality and distribution. It is also quick to respond to market trends, something that the market has taken notice of as Marcolin delivers more polarized lenses this year.

"More of our sunglasses in our top fashion collections will be polarized," says Travel Retail/Duty Free Sales Manager Marco A. Lares. "Polarized sunglasses can eliminate reflected light off water, snow and similar surfaces. 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."

Growth is running at 10-15% year-overyear, and new accounts promise to boost the momentum. Marcolin is working to build its presence on the southern US border. Lares says there’s been a good response; as this went to press, he was working on closing orders from three retailers. So far, most interest has been generated by Kenneth Cole, Timberland and Diesel. Lares also says the team is now talking with a major operator in Brazil, which he declined to identify by name.

On the product side, new collections have been launched. Lares singles out the entirely polarized allnew range from Timberland, which sells for US$70-$80 and is a good fit for travel retail. The collection includes five men’s and unisex frames with casual styling.

The Diesel marque has also been revamped with color changes and some shape redesign to make the models “a bit more in tune with a wider audience,” Lares says. The Fall/Winter 2013-2014 collection draws its design cues from denim supported by vintage accents. Following up on the success of last year, Denimize shades have been reintroduced in a full denim edition. The 72

collection features mirror lenses and unbalanced frames, inspired by unconventional personalities.

The Roberto Cavalli brand is generating interest with new licenses, the rollout of new stores and new café and bar concepts around the world. “Roberto Cavalli has a new emphasis as a brand in itself,” Lares says. “It’s speaking to the local Cavalli customers plus new customers. Cavalli is back, and it’s because the brand is strong and Cavalli is a fashion genius.”

The Fall/Winter 2013-2014 Roberto Cavalli collection has been beefed up with nine new optical frames and four new high-end

sunglasses models. At the fashion end of the spectrum are the RC0751, inspired by iconic brand accessories such as the Florence Bag, the rectangular, “architectural” RC0751 and the oversized cat-eye shapes of the RC0755 frame. The collection continues with a wide range of resilient models with designs that incorporate the signature Roberto Cavalli animal themes.

Marcolin is one of the few Italian fashion

“Roberto Cavalli has a new emphasis as a brand in itself. It’s speaking to the local Cavalli customers plus new customers. Cavalli is back, and it’s because the brand is strong and Cavalli is a fashion genius.”

Marco A. Lares, Travel Retail/Duty Free Sales Manager, Marcolin

sunglasses companies with a presence in the US, Lares says. The warehouse in Arizona, Marcolin’s US headquarters, can supply product quickly without import permits or other delays. “That’s important for our customers to understand,” Lares says.

“We’re here in the Americas and we can supply the products at any point in time, because we don’t have to wait for product to come from Europe.”

Diesel’s Fall/Winter 2013-2014 collection has been revamped with color changes and some shape redesign

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Supplier News

The T-Tech by Tumi Noise Canceling Headphones delivers 360-degree surround sound through high-protein ear cushions

T-Tech by Tumi introduces design-inspired accessories Jasco Products Company is continuing its focus on design-inspired travel accessories with the T-Tech by Tumi Electronics 2013 collection.

The T-Tech by Tumi Noise Canceling Headphones delivers 360-degree surround sound through high-protein ear cushions.

Active Noise Cancellation reduces up to 90% of ambient noise up to 20 decibels and the ear cups turn 90 degrees for better portability and storage. The brushed aluminum features add a modern accent.

Also part of the new collection is the T-Tech

by Tumi Universal Bluetooth Travel Keyboard, which is composed of injection-molded ABS plastic with aluminum top and brushed metal

aesthetics. The design features low-profile keys that sit flush with the keyboard so that keystrokes are more comfortable and quieter.

The keyboard features scissor key technology, which makes keystroke response faster than standard keyboards. The precision microscissors distribute force evenly across key surfaces, which make keystrokes smoother. The keyboard allows for universal pairing with all Android 3.0 and up, Windows/RT and Apple OS products, making it easier for mobile use.

The keyboard also supports Microsoft’s new operating system Windows 8. Wireless Bluetooth technology allows users to connect with mobile devices or computers from up to The Universal Bluetooth Travel Keyboard is composed of injection-molded ABS plastic with aluminum top and brushed metal accents

30 feet away with no interference. The keyboard meets international FCC and CE specifications.

“The compact designs are made to complement your tablet in size and weight to go everywhere with you,” says Cameron Trice, Jasco’s Executive VP of Marketing and Product Development. “The sophisticated brushed metal and rubberized finishes make the T-Tech by Tumi Universal Bluetooth Travel Keyboard the must-have travel accessory for any on-the-go user.”

Also new are T-Tech’s snap cases for the iPhone 5 and Samsung Galaxy S III, which offer improved screen protection. Materials range from brushed leather and real wood to protective polycarbonate that protects phones from scratches without adding weight or bulk. The collection is available in a variety of colors and textures.

T-Tech’s new snap cases for iPhone 5 and Samsung Galaxy S III are offered in a variety of colors and textures

Victorinox stands the test of time The name Victorinox is associated with the legendary “Original Swiss Army Knife,” which had its origins in the Swiss Officer’s and Sport Knife from 1897. Today, Victorinox produces and distributes a range of products for various uses: army knives, household and professional cutlery, timepieces, travel gear, fashion and fragrances.

The Victorinox Swiss Army brand emerged from a fusion of the Victorinox watch-making business and other Victorinox products. The brand Swiss Army was a creation of the American partner of Victorinox in 1989, which successfully launched the first watch collection under this brand name. Since integration into the Victorinox Group, Victorinox Swiss Army Timepieces have increasingly gained international exposure and recognition.

Victorinox has created a strong identity in the area of Swiss precision timepieces with the Victorinox Swiss Army brand. This term mirrors the tradi-

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tion of the “Original Swiss Army Knife” on the one hand, and the Swiss watch-making tradition and worldwide fame of the Swiss watch on the other.

Strongly focused on international retail develThe new Maverick timepiece collection opment, Victorinox Swiss Army has 60 flagship now features a restyled and refined dial and brand stores and over 4,500 point of sales emphasizing readability in more than 80 countries. In addition, the company also closely collaborates with its major partners in order to personalize corners, which provides an opportunity to increase the brand’s corporate visibility.

For 2013, new timepiece collections include: Maverick, which now features a restyled and refined dial emphasizing readability along with strong new The Infantry collection colors; Night Vision, the Victorinox Swiss Army best- features military-inspired seller, features a new brushed and polished steel case designs with a classic feel treated with Black Ice PVD for a sporty look; and Infantry, which features military-inspired designs with a classic feel.

Night Vision, Victorinox Swiss Army’s bestseller, features a new brushed and polished steel case treated with Black Ice PVD for a sporty look

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Guest writer

Diane Buchanan, Global Travel Retail Region Manager Americas and Caribbean

Innovation is key BY

DIANE BUCHANAN, GLOBAL TRAVEL RETAIL REGION MANAGER, AMERICAS AND CARIBBEAN

I

nnovation continues to be the key driver of growth in the global travel retail Americas and Caribbean region for Godiva Chocolatier. Inspired by the values of Lady Godiva, her passion, generosity and pioneering spirit, Godiva is dedicated to surprise and delight customers with strong innovation concepts showcasing our chocolatier credentials. These novelties are perfect for creating theatre and buzz on the shop floor.

Godiva has a dedicated visual merchandising team that creates unique and interactive chocolate experiences throughout the region. Each event is specifically tailored to the location with a focus on traveler profile and nationalities. The launch of new products are activated and brought to life with custom in-store events and theatre, which combine elegance with creativity.

Godiva recently launched Chocolate Exotique, our new travel retail exclusive, with an outpost in the International Terminal with DFS at San Francisco Airport. This unique gift box plays with current trends in colors, ingredients and textures and features a bold selection of double-layered chocolates that combine a fruity ganache with crunchy texture.

This launch event was extremely successful and was supported with our first dipping event in San Francisco Airport. Hostess and sampling activities along with interactive video displays brought the product to life. These events inspire passion for our brand and communicate a story that our consumers will remember as part of their journey.

This August Godiva will launch its new Collection Truffes. This collection features new recipes specially made by Godiva’s chefs. Travelers will discover an ideal selection of gift boxes, including a nine- and one-piece box and a 12-piece Truffles Liqueurs assortment box featuring five recipes made of the finest liquors.

To celebrate this launch, the one-year limited edition gift box, Truffles Premières, offers truffle connoisseurs a rich assortment of truffles, expertly crafted with ingredients from specific origins. The premium look and feel of the collection will position Godiva as the reference for Belgian Truffles in premium confectionery.

Growth in global travel retail Americas Godiva is committed to investing in the global travel retail (GTR) business in the Americas region. In January of this year Godiva opened a new office in the downtown area of Fort Lauderdale, Florida. This office serves as the headquarters for the dedicated GTR Americas team manager for the LATAM region.

This year we will add another field manager position to support our growing business in North America and the Caribbean. Due to the diversity of this market, we will tailor our promotions to the match the consumer base of each unique country.

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Thanks to the continued support of its customers in Panama’s Tocumen International Airport, Godiva will launch the Panama Souvenir Box with a bespoke promotion

To support our business in the region Godiva will expand our renowned souvenir collection in 2013 with the launch of three new destinations. The launches will be supported with in-store events and exclusive promotions. We will showcase the launch of the new Caribbean Souvenir Box in Punta Cana International Airport this June.

Thanks to the continued support of our customers in Panama’s Tocumen International Airport, we will launch the Panama Souvenir Box with a bespoke promotion. And lastly, with a boom in tourism to Brazil, Godiva will also add a Brazil Souvenir Box to its collection.

During the second half of 2013, Godiva will continue to roll out our travel retail store concept in the LATAM region. We are working on the expansion project in the main Arrivals store in Sao Paulo Guarulhos Airport where Godiva will place a personalized wall unit. We will continue to work closely with our partners on the Uruguay border developing the business with wall units, personalized gondolas and floor units.

Godiva remains dedicated to providing travelers with unique experiences, combining chocolate and innovation and ultimately introducing them to Godiva’s

world.

This June, Godiva will showcase the launch of the new Caribbean Souvenir Box in Punta Cana International Airport

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©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.

For more information, contact your HERSHEY’S Business Manager today.

H ERSH EY ’S ®

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I

H ERSH EY ’ S ® KISSES ® I R E E SE ’ S ® I I C E B R E A K E R S ® I JOLLY RANCHER ®

I

BROOKSIDE ®

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Pernod Ricard

From exclusive flavors to eye-catching packaging and unique collaborations, ABSOLUT continues to lead the vodka category in innovation and commitment to the duty free channel BY RYAN WHITE

A

mericas Duty Free recently had the opportunity to sit down with Aldo Barrios, Americas Marketing Director for ABSOLUT Vodka, to discuss the brand’s recent successes in the region and see what’s planned for the rest of the year. Barrios tells us that ABSOLUT, known in the industry as a leading-edge innovator, will continue to provide traveling consumers with unique offerings in airports across North and South America.

Americas Duty Free: Since this is the first time we’ve spoken, can you tell us a bit about your role and your objectives for ABSOLUT? Aldo Barrios, Americas Marketing Director, ABSOLUT: My role encompasses both domestic and duty free in the Americas for the ABSOLUT brand specifically. Not only are we gaining ground in developing synergies between these two channels, but there’s also very clear global vision and commitment that informs what we do with the ABSOLUT brand here in the Americas. In terms of our major focus for travel retail specifically, I would have to say that innovation is certainly one of our top priorities

ADF: Can you tell us a bit about your most recent efforts on the innovation front?

AB: Well, the first of two major launches in the Americas is Absolut Exposure. It’s a really groundbreaking collaboration with visionary Swedish director, photographer and artist Johan Renck and model Lydia Hearst. Notably for your readers, this is a duty free exclusive.

Indeed, our commitment to the channel has never been clearer.

ADF: What is ABSOLUT Exposure’s availability in travel retail in the Americas?

AB: We started with Brazil, but ABSOLUT Exposure is now rolling out across the entire region, and we had a great response from retailers at this year’s IAADFS exhibition.

Loren Cronk has designed a perfectly fitted denim second skin gift pack out of which the iconic ABSOLUT bottle slips with ease, elegance and swagger. On top of its cool appearance, the exclusive gift pack also has additional high-tech qualities. On the inside, the denim skin has a high-tech shield with supreme cold preserving capacity. Taken from the freezer, the ABSOLUT Denim skin keeps the vodka deliciously cool and refreshing for up to two hours.

ABSOLUT Denim was first launched at Singapore Changi Airport but is currently being rolled out in travel retail throughout the Americas.

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We’ve really tried to capture a sense of dynamism with ABSOLUT and it’s clear that this is coming across in the conversations we’ve had with buyers.

ADF: You mentioned two innovative launches.

What’s the second?

AB: The second would be ABSOLUT Denim.

This is a product that has really resonated with consumers where it’s been released. Our goal is always to transform the retail experience and I think we’ve accomplished this with ABSOLUT Denim. For this product, we collaborated with Brooklyn-based designer Loren Cronk, who is known specifically for her work with denim.

For us, it really comes down to telling compelling stories at the point of sale and giving consumers something that they’re instantly attracted to. I think both ABSOLUT Exposure and Denim are great examples of this. We have a lot more innovative products in the pipeline, so travelers can rest assured that they’ll have many more reasons to stop by their favorite duty free store

the next time they’re in an airport.

“For us, it really comes down to telling compelling stories at the point of sale and giving consumers something that they’re instantly attracted to.”

Aldo Barrios, Americas Marketing Director, ABSOLUT Vodka

ABSOLUT has pioneered the market with its previous Traveler’s Exclusive limited edition launches. Now ABSOLUT Exposure crosses new boundaries. A new-generation flavor crafted with honey melon and lemongrass, ABSOLUT Exposure is presented in a bottle and gift package with an innovative and groundbreaking technique of incorporating photography—for the first time—in bottle printing.

Three images of Lydia Hearst were selected to illustrate the multifaceted nature of every individual, adding diversity to the product offer as well as an intriguing illusory effect to store displays.

By purchasing all three bottles, the consumer acquires an instant ABSOLUT limited edition collection. In addition to the images of Lydia Hearst, the bottle decor also features a bowler hat (a trademark of Johan Renck) and hands ”holding” the image, symbolizing the dual role of the artist—powerful in presence yet invisible in the work of art itself.

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SPECIAL REPOR T: TEQUILA

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Mezcal

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Tequila Report

Casa Noble Añejo, certified organic and kosher as the result of using only estate-grown Blue Weber agave and a stringent production process

The

Heat is on Activity heats up in the popular tequila subcategory as suppliers vie for a piece of the premium pie in travel retail BY

RYAN WHITE

mericas Duty Free speaks to five tequila companies doing big things in travel retail throughout the Americas. From unique propositions and promotions to taking advantage of the boom in premium tequilas, it’s clear that the dynamism present in the tequila subcategory shows no signs of slowing down.

Casa Noble In the world of spirits in general, and in tequila circles specifically, Casa Noble has a lot going for it. The brand, distributed in Latin America, Caribbean and USA duty free by MONARQ Group, is a family owned, “single-estate” tequila.

Furthermore, the Blue Weber agave used to make Casa Noble is sourced entirely from the family’s land, allowing for extremely high quality control. Largely because of this, Casa Noble is certified organic and kosher in the US. “Casa Noble is currently available at Shopping China in Paraguay and St. Thomas Duty Free in the US Virgin Islands,” says Robert de Monchy, Founder of MONARQ Group. “We’re also in talks with several other operators, including Grupo Wisa and Neutral.”

While the brand’s availability in travel retail is still limited at the moment, de Monchy tells us that MONARQ’s strategy was to first secure distrib-

ution in relevant domestic markets such as the Caribbean islands, Panama, Colombia, Peru and Brazil. At this point in time, de Monchy feels the brand is well placed enough domestically for the push to duty free to begin in full force.

Indeed, sales of Casa Noble are up 35% in the first quarter of this year as compared to the same period in 2012, pointing clearly to the brand’s phenomenal growth over the short term. In addition to getting listings, de Monchy tells us that education has proven key to encouraging people to purchase.

“There are many different aspects to making tequila, from growing the agave and distilling the spirit to aging and tasting techniques,” de Monchy explains. “We’ve found that consumers are also interested in Casa Noble’s organic certification. In the end, the more consumers know, the more likely they are to choose Casa Noble given its quality credentials.”

Known and loved Jose Cuervo is certainly the most recognizable tequila brand in the world, but brand education is still a priority, says Regional Director at Jose Cuervo International Alex Borbolla. In addition to ensuring that On-Trade staff are familiarized with our tequila portfolio, we also makes a point of consistently communicating directly with consumers via Facebook fan pages throughout the Caribbean and Latin America.

Of course, the brand’s hard work domestically tends to pay off in duty free circles as well. The company’s entire range of brands, consisting of Jose Cuervo, 1800 and Gran Centenario tequilas are available in travel retail stores at select airports in South and Central America, including Brazil, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras and Panama. Most recently, Dufry Brasil listed Jose Cuervo Reserva de la Familia Platino.

Borbolla tells us that part of Jose Cuervo’s success around the world is a result of the brands’ heritage: “Don Jose Antonio de Cuervo created the first tequila in 1795,” he explains. “Today, at the same distillery, the oldest in Latin America, the 10th generation Cuervo family continues to The 1800 family of tequilas, owned by Jose Cuervo International www.dutyfreemagazine.ca THE AMERICAS DUTY FREE & TRAVEL RETAILING

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Tequila Report

produce its unique range of tequilas enjoyed by consumers in over 90 different countries.”

Jose Cuervo’s biggest market is Brazil, with consistent growth over the last 4 years . Results during the first Quarter of 2013 were flat vs. last year due to the current macro-economic situation .Nonetheless, a number of activities in travel retail are running this year to support the launch of Jose Cuervo Platino with Dufry Brasil. “We’ve been very pleased with the results to date,” says Borbolla.

In addition to the above, the annual launch of the 1800 Tequila Essentials - Silver Artists Edition, also with Dufry Brasil, is creating a buzz among the country’s travelers.

The launch consists of a limited edition of six different bottles designed by renowned artists, effectively giving collectors and gift givers yet another reason to choose one of Jose Cuervo International’s brands when passing through Brazil.

The Tequila Milagro wall in Cabo San Lucas

Jose Cuervo Reserva de la Familia Platino, recently listed at Dufry Brasil stores

“One to watch” Olmeca Tequila is currently coming off a run of new contracts that will see the brand listed shortly in travel retail shops in the Dominican Republic, Costa Rica, Venezuela, Guatemala and Colombia. “We’re not afraid to take the lead and be the dynamic catalyst in building the tequila category in developing markets, whilst remaining committed to the quality of distribution in more mature markets,” says Michael Kaller, International Market Development and Planning Director for Olmeca. “We see a lot of opportunity for growth in the global tequila category at the moment, and as one of the most dynamic, quality-focused tequilas around, we strongly believe that Olmeca is well placed to capitalize on this.”

Indeed, the trade seems to be in agreement; Olmeca was cited as “One to Watch” in the tequila category in The Spirits Business World Spirits Report late last year.

Kaller tells us that the last 12 months have been “both busy and exciting” for Olmeca. With the launch of new packaging for Olmeca Altos, a super premium 100% agave tequila that is now rolling out in travel retail worldwide.

“We’ve also been concentrating on building our association with dance music with our dynamic “Be the DJ” campaign, which has resulted in increased consumer engagement in key markets such as South Africa,” Kaller says. “We’ve also seen encouraging growth in Russia, where we remain the number one tequila in the market.

That said, the global financial crisis means conditions remain unfavorable in many markets, and with that in mind, we’re pleased that current volumes remain in line with the same period Olmeca was cited as “One to in 2012.”

Watch” in the Much like the above brands, Olmeca has invested tequila category in The Spirits heavily in education as a means of setting itself apart Business World from the competition in travel retail. Like Jose Cuervo, Spirits Report late last year Bartenders in the on-trade are a concentration for Olmeca, because, as Kaller points out, they’re often the ones who influence consumer behavior.

With the above in mind, Olmeca’s Tahona Society is a global community of tequila-passionate bartenders that boasts more than 1,300 members from cities all over the world. “We offer insights into the origins and history of the spirit and its production process in order to eventually quash all those old tequila myths and increase appreciation for tequila around the world,” concludes Kaller.

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Focusing on quality and innovation Milagro Tequila, owned by William Grant & Sons (WGS), is particularly well placed in Americas travel retail, with current listings in Mexico with Dufry, WDFG, and Grupo Wisa; in Honduras, Costa Rica, Salvador, Panama, Colombia, Ecuador and Nicaragua with Grupo Wisa, Motta Internacional, Dufry and Top Brands; and aboard some of the region’s biggest cruise lines, including Starboard, Carnival, Royal Caribbean Celebrity and America.

We asked Pablo Boggio, Brand Activation Manager for Global Travel Retail at William Grant & Sons, what sets Milagro apart from the innumerable tequilas out there: “ Quite simply, quality, packaging and innovation,” he says. “Milagro one of the most awarded tequilas out there today.”

Boggio points to Milagro’s highend Select Barrel Range as an example of how packaging plays an important role in the brand’s success, especially in duty free. Indeed, travel retail is a concentration for the brand, we are constantly developing high end, limited edition packs with remarkable packaging. Another example would be last year’s release of Milagro Unico, an ultra premium limited edition Joven Tequila offering that was created specifically for Travel Retail and key US domestic venues.

Boggio notes that sales have seen

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Tequila Report Patrón’s new mini four-pack for travel retail

an uptick in the first quarter of this year.

“Overall, sales in Latin America are up in the first quarter as compared to last year due to these news listings,” he explains. “We’ve also seen good performance in the US domestic market. Mexico duty free in particular showed good performance, as did key airports in Colombia and Panama.”

In addition to duty free packs, promotional activities have also helped Milagro reach traveling consumers. The brand recently ran a highly successful mix and match program, says Boggio. Consumers were offered a free three-pack of mini Milagro bottles with a minimum purchase. “It was a great added value gift that allowed consumers to try all three variants—blanco, reposado and añejo,” he explains.

For the rest of the year, Milagro plans to take a two-pronged approach, focusing on popular US travel destinations while at the same time working on opening up domestic distribution in Latin America. “As we continue to secure domestic listings in Latin America, we feel that this can only help sales in duty free in the region,” Boggio concludes.

Four’s company Continuing with the theme of education, Patrón Spirits International has announced that it will be rolling out a new mini four-pack in travel retail, which will effectively give consumers the opportunity to try four of Patrón’s most popular expressions—Silver, Reposado, Añejo and XO Café—and discover which one they like best. The pack is intended to open up a dialogue between consumers and duty free sales staff, as well as encourage uptrading to one of the brand’s higher-end expressions.

The pack was introduced at this year’s IAADFS exhibition in Orlando, but in a recent speech at the TFWA AP conference and exhibition in Singapore, John McDonnell, Global COO and President – International of Patron, alluded to the continuing importance that education plays, even to a brand as wellknown as Patrón. “Everyone’s had a bad experience with tequila, and for better or worse it’s up to us to dispel these myths and communicate the fact that every expression of Patrón is a premium product made with the utmost care and attention,” he explained. “As such, education remains a priority.”

Of course, in addition to educating consumers, keeping visibility high is also important. As such, the company developed a contest called Art of Patrón, which plays on the parallels between the innovative tequila and the creativ-

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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

its fans. Participants were encouraged to find new uses for empty Patrón bottles and submit pictures for a chance to win a US$10,000 prize.

“We’ve received some amazing submissions,” says McDonnell, “including chandeliers made completely of Patrón bottles, margarita glasses and a number of impressive art pieces. It ties in nicely with our brand message and the fact that the bottles are meticulously handmade—they’re just too precious to throw away!”

Another big development at Patrón is the continued rollout of the ultra premium Gran Patrón Piedra, currently available exclusively in global duty free before an eventual rollout to 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. In addition to extra añejo ageing, 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 firstever 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.”

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Scorpion Mezcal Scorpion Mezcal Silver, Reposado and Añejo varieties offer three different taste experiences, from cocktails to enjoying neat or on the rocks

Just one of the 30 agave varieties that can be used to produce mezcal

Depth and breadth Scorpion Mezcal introduces travel retail to a spirit with a surprisingly robust history that is targeted specifically at lovers of high-end liquids

F

or years, Douglas French, Owner and Founder of Scorpion Mezcal, has been educating consumers and even the spirits industry at large about mezcal, one of Mexico’s most famous, but perhaps least understood, exports. Earlier this year at the IAADFS exhibition in Orlando, Americas Duty Free got a crash course in mezcal, learning among other things that the history of the spirit stretches as far back as 1400 B.C. Indeed, mezcal has a depth and breadth of tradition that rivals any Scotch or Cognac, and French is hoping that his Scorpion Mezcal brand will pave the way for a deeper understanding of the spirit in general in travel retail.

“In Mexico there are about 180 varieties of agave, which is the plant used to make mezcal,” explains French. “Approximately 30 of these varieties are able to be fermented and distilled.”

The multitude of different agave types that can be used to make mezcal results in a range of complex spirits that each have their own special characteristics while at the same time still falling under the mezcal umbrella. It’s easy to see how the spirit could be perfect for aficionados who enjoy exploring the way different ingredients and production processes change liquids.

One way that Scorpion is tapping into this trend, which is very popular in whisky culture, is to offer a special gift pack for duty free that features four 200mL bottles, each containing mezcal made with a different agave type. “This gives people the opportunity to sit down and note the differing flavor profiles of each,” French explains. “The gift pack is made especially for duty free and select high-end stores. It’s a limited edition and we’re planning on coming out with new packs on a regular basis that feature mezcal made with different agave types. In addition to making a nice gift, it also furthers our agenda of educating people about the quality and heritage of the spirit.”

Indeed, like many other spirits, mezcal has a denomination of ori-

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RYAN WHITE

gin which was made official in 2005, meaning that the product is effectively quality-controlled. This gives the consumer a guarantee that they’re buying a quality product. For Scorpion’s part, all of its products are stamped with this seal of approval, and French took us through some of the company’s most popular offerings.

“Silver is mezcal that is bottled fresh out of the still,” he explains.

“It’s great for crisp, clean-tasting cocktails. We also offer reposado— aged between two and twelve months in oak barrels—and añejo— aged for a minimum of twelve months in oak barrels. This is where tasting and nosing becomes really interesting.”

At this point, the complexities that an experienced mezcal producer such as Scorpion can achieve become apparent; the company offers a myriad of other mezcals that are unique by virtue of their proofs, the barrel-aging process, the length of aging and the type of agave used.

Scorpion Mezcal has already made some important inroads in travel retail in Australia and Paraguay, but French’s attendance at this year’s IAADFS exhibition was really about increasing awareness of the products in the Caribbean and other Latin American countries. The core of Scorpion’s business is done domestically in the US and in Australian travel retail.

“We're positioning the brand as the highest quality mezcal that we can,” French explains. “Our products have won numerous Gold and Platinum medals from prestigious spirits challenges around the world, including the Beverage Tasting Institute.

“The pricing is attainable for the consumer but the product is highend,” he concludes. “Other companies have recently proven that there’s room for new players in the luxury spirits category and we feel that our brand has a history behind it that stands up to spirits across subcategories. We feel Scorpion’s high-end appeal is perfect for duty free and we’re looking forward to increasing our presence in this very

important channel.”

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Tequila Cocktails

Some of that Latin flavor The annual ASUTIL conference is not only a chance to get a good grounding all the new developments happening Latin American travel retail, but it’s also a chance to network in a more relaxed setting that usually involves more than a little sun and fun.

With that in mind, Americas Duty Free gives readers a number of easy-to-make cocktails using one of the region’s most versatile spirits—tequila.

The Paloma, made with Tequila Arraigo Blanco ■ 1.5 oz Tequila Arraigo Blanco ■ 4 oz grapefruit soda Method: Fill a tall glass with ice and add Tequila Arraigo Blanco. Mix in grapefruit soda and garnish with a lime.

The Fresh Pineapple Margarita, made with Casa Noble Crystal ■ 3 cups fresh pineapple chunks ■ 1 cup fresh lime juice ■ 1 cup Casa Noble Crystal Tequila ■ 1/2 cup orange liqueur ■ 1/4 cup simple syrup or honey ■ Salt or sugar for rim Method: Place pineapple in a blender and pulse until combined. Stir in remaining ingredients until blended. Serve in salt-rimmed (or sugar-rimmed) glasses over ice. Garnish with lime wedges.

Olmeca Altos Jasmine Tea Margarita, Made with Olmeca Altos Plata ■ 2 oz. Olmeca Altos Plata ■ 1 oz freshly squeezed lime juice ■ 0.5 oz light agave syrup ■ 3.5 oz fresh chilled jasmine tea Method: Fill a glass with ice and mix in ingredients. Stir well. Garnish with a lime twist.

The Viva Frida Margarita, made with Frida Kahlo Blanco ■ 1.25 oz Frida Kahlo Blanco ■ 0.5 oz Triple Sec ■ 0.5 oz Canton ginger liqueur ■ 0.25 oz agave syrup ■ 1 tsp Fresh ginger ■ 0.75 oz lime juice Method: Shake well with ice and pour into a chilled martini glass.

Garnish with a lime.

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Brown-Forman The first in the Coleccion de Casa series, Reserva 2012 – Port Cask, is finished in port barrels for an extra two months

To match with the special port finish, the packaging of Herradura Coleccion de Casa is suitably high end

Smooth operator

A new, extra-smooth Herradura limited edition release spearheads Brown-Forman’s plans for the brand across the Americas RYAN WHITE BY

A

t this year's IAADFS show, Americas Duty Free had the opportunity to speak with Tim Young, Marketing Director at Brown-Forman Global Travel Retail, and David Page, Public Relations Manager at Brown-Forman Global Travel Retail, about the Herradura tequila brand in duty free, as well as a new high-end limited edition launch for Herradura called Coleccion de Casa Reserva 2012 – Port Cask.

"In general in duty free our tequilas are growing quickly, which isn't surprising since this is from a relatively small base in locations other than Mexico," Young told us. "For us, the opportunity is in education, particularly with non-US travelers that may not understand tequila as a category."

Young says that this is where travel retail is key to the growth of the brands. The tasting and education work that Brown-Forman does in airports gives the company a chance to reach European or Asian consumers, for example, and give them a bit more knowledge about the category in general and Brown-Forman's tequila brands specifically.

Not surprisingly given its premium positioning, Herradura is the focus for Brown-Forman in travel retail. “This isn't to say that we don't have an emphasis on el Jimador, but we feel that Herradura is really perfect for travel retail and those traveling consumers that are looking for something special to bring back home,” Young explains.

A perfect example of the work that Brown-Forman has been doing with Herradura in airports is in Cancun. A high-profile promotion last summer placed emphasis on a signature cocktail called the Paloma and the mixability of Herradura.

"We did tastings at Cancun Airport and this was one of our first big initiatives there," Young notes. "Consumers have an increasing interest in cooking at home and making great cocktails. However, both endeavors can sometimes be a bit intimidating. The activation was really about tapping into this trend in a fun way that was accessible."

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Essential for any traveler At the same time as it's been promoting Herradura in brand-specific activations, Brown-Forman has been doing a lot of work in bringing certain brands in its portfolio together under the umbrella of "The Essentials Collection." In this way, classic Brown-Forman brands such as Southern Comfort, Jack Daniel's, Woodford Reserve, Chambord and of course Herradura, are presented together as must-have spirits for travelers' home bars. Indeed, visitors to the recent IAADFS exhibition in Orlando will have noticed the cool retro graphics associated with The Essentials Collection displayed prominently at the company's booth.

The Essentials Collection has been on display at Heathrow and a number of other airports and has proven to be a good way of introducing people to the brands, and to Herradura specifically, says Young. As opposed to a tequila-specific activation, The Essentials Collection attracts travelers who may be interested in one specific brand with the added benefit of giving brand ambassadors and sales staff the opportunity to speak about other brands in the Collection.

"We're talking to people about the brand that they want to explore," says Young, "but we're also asking them if they've heard of Herradura and if they'd like to learn more about it. In some places where it doesn't make sense to have a standalone tequila activation we've found that sales of Herradura have seen an uptick."

“Herradura is really perfect for travel retail and those traveling consumers that are looking for something special to bring back home.”

Tim Young, Marketing Director, Brown-Forman Global Travel Retail

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The launch of Coleccion de Casa Reserva 2012 – Port Cask in New York featured a tasting and a demonstration of how Herradura’s barrels are made

Who's buying?

Young says that from a distribution point of view, all airports are important to Brown-Forman when it comes to Herradura. However, there are of course priority airports and travelers on the company's radar.

In addition to US and Mexican airports, Brown-Forman is targeting the Russian traveler and where they're going. "Russian is one of the biggest tequila markets in that part of the world," Young explains.

Of course, it's clear that Russians have a penchant for high-end products, and the premium positioning of Herradura is also helping the brand. Given the importance of this nationality, Brown-Forman is also targeting London, Frankfurt, Turkey and a number of other key airports when it comes to upping the visibility of the Herradura brand.

“We’re also working on a high-profile display with International Shoppes in June and July in JFK,” adds David Page. “Many of the flights there are favorable to tequila sales, so it makes sense.”

Something special While the new display at International Shoppes is big news, Page tells us that another recent development will have Herradura fans scrambling to get their hands on an innovative limited edition of the brand.

The first in the Coleccion de Casa series, Reserva 2012 – Port Cask, is finished in port barrels for an extra two months.

To match with the special port finish, the packaging of Herradura Coleccion de Casa is suitably high end. The bottle is taller than those in the standard Herradura range and comes nestled in a premium gift box that not only makes the expression a joy to display, but also gives some background on the brand and explains the finishing process.

Crafted by Master Distiller Maria Teresa Lara, Casa Herradura uses the finest blue agave, traditional production methods and a proprietary fermentation from naturally occurring wild yeast to create a tequila of unparalleled quality. The tequila is then rested in medium-char American oak casks for eleven months and then transferred to hand-selected vintage port casks from the renowned Douro Valley in Portugal for an

additional two months of aging. The double-maturation process accentuates the notes of cooked agave, increases complexity and delivers a nose of dried fruit and ripe plum infused with hints of cinnamon, caramel and chocolate.

“Herradura Reposado is extremely smooth in the first place, and this finishing step gives it an added softness and sweetness that needs to be tasted to be believed,” Page explains. “In duty free, Herradura 2012 – Port Cask will have a very limited availability in a few select airport stores.”

The brand’s official launch took place in late April in New York at Añejo Tequileria. The event featured a tasting, as well as a demonstration of how Herradura’s barrels are made.

The color of Coleccion de Casa series, Reserva 2012 – Port Cask is described as amber with shades of rose and copper, while the aroma offers up an enticing balance of sophisticated smoky notes, warm tobacco, dried fruit and a hint of spice. The distinctive taste of oakaged agave is complimented by hints of rich port, plum and pepper, and the finish, as Page notes, is as smooth as ever, with added undertones of dark chocolate brought about from the special finishing.

“We’re planning on releasing more limited editions in the future, all under the Coleccion de Casa umbrella,” explains Page. “It’s a great way to showcase the tradition and provenance of the brand while at the same time giving real tequila fans something new, interesting and

luxurious to look forward to.”

“We’re planning on releasing more limited editions in the future, all under the Coleccion de Casa umbrella. It’s a great way to showcase the tradition and provenance of the brand.”

David Page, Public Relations Manager, Brown-Forman Global Travel Retail

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

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Fraternity Spirits El Diezmo Tequila Cream is described a mixture of two major ingredients in the history of Mexico—tequila and chocolate cocoa

Gaining

WDFG recently listed Marques De Cuba Habanero rum, one of Fraternity Spirits’ newest launches, in selected stores in Mexico

momentum In addition to its popular range of Corralejo tequilas, Fraternity Spirits gains ground in duty free with a host of new launches highlighting quality and craftsmanship BY

RYAN WHITE

F

raternity Spirits, makers of the popular Corralejo tequila brand, recently announced two new additions to its portfolio—a Tequila Cream with Chocolate called El Diezmo and Marques De Cuba Habanero rum, popularly known as “El Ron Prohibido.” In addition to the above, the company notes that other spirits in its range of offerings, including Vodka Boker, Quita Penas ready-made margarita mix and of course the entire Corralejo range, are performing well in the LATAM region. Americas Duty Free caught up with Rafaelle Berardi, Managing Director of Tequilera Corralejo, at a recent industry event for an update on the company’s business in the Americas.

“The Latin American business is going well,” he said. “We’ve got new orders from Panama, Central America and the Caribbean.

We also just got listed with UETA in their stores throughout South America and the Caribbean.

Last but certainly not least, World Duty Free Group (WDFG) has agreed to list our existing line of Corralejo tequilas wherever they sell tequilas, so that’s very exciting. ” Indeed, Fraternity Spirits 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. The range includes Blanco (unaged); Reposado (aged four months in French, American and White Oak barrels); Añejo (aged 12 months in new American oak charred on the inside to achieve a smoky taste); Gran Corralejo (an exclusive reserve aged in oak barrels for at least two years); Triple Destilado, distilled twice in copper pots with a column-wise distillation in-between); and 99,000 Hours (Tequilera Corralejo’s special super premium commemorative aged tequila).

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Expanding the portfolio With regard to the new additions to the portfolio, El Diezmo Tequila Cream is described as a mixture of two major ingredients in the history of Mexico—tequila and chocolate cocoa. The brand has a unique taste and texture, featuring a creamy consistency and a distinct tequila flavor with notes of chocolate and real cocoa, making it an excellent after dinner drink. Available in a 750 ml size with 20% ABV, El Diezmo Tequila Cream with Chocolate is presented in a beautiful golden bottle, making it perfect as a gift item in travel retail.

Marques De Cuba Habanero rum is also new to the Tequilera Corralejo portfolio. By the year 1700, Spanish ships were arriving in the New World colonies loaded with products from Spain. One popular product was sweet wine stored in barrels, which were later emptied after use. These empty barrels were filled with Chinguirito, which is rum that was produced in Mexico, and shipped back to Spain.

As the rum aged in the sweet wine barrels during the trip back to Spain, it absorbed wood flavors and aroma from the sweet wine barrels, which gave it very special characteristics. The resulting rum became very popular in Spain, which local producers saw as a threat to sales of their existing products. Consequently, the King of Spain prohibited the production of this rum in the New World. Fraternity Spirits is now revitalizing this “Prohibited Rum” and making it available to travel retail globally. In fact, WDFG recently listed it in selected stores in Mexico.

In addition to the above products, Berardi notes that the response in travel retail to Vodka Boker, a Mexican corn vodka

presented in a highly attractive deep blue bottle, and Quita Penas readymade margarita mix has been very positive.

“Vodka Boker really stands out on the shelf and Quita Penas is a very high-quality ready-made mix, so we’re pleased with operators’ reactions,” Berardi notes. “We’ve got some good momentum and we’re looking forward to attending this year’s ASUTIL conference in Punta Cana and continuing to move forward through talks with

the operators there.”

Vodka Boker is a Mexican corn vodka presented in a highly attractive deep blue bottle

99,000 Hours is Tequilera Corralejo’s special super premium commemorative aged tequila

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Tequila News

Tequila Arraigo Blanco is one of two expressions available in travel retail, the other being a reposado variety

Tequila Arraigo secures new listings in Uruguay, runs promotion with Shopping China In the constantly evolving and dynamic tequila subcategory, there is a new player that has arrived with the firm intention of establishing itself as a key player among the many high quality brands out there. The company is specifically targeting South American business travelers thirsty for new, thrilling experiences. Tequila Arraigo is now available in Uruguay and expanding in Brazil. The company considers the countries its main markets for beginning the brand's journey in airports and border stores. These newest listings are just the latest of many in Latin America. Indeed, the brand is currently available in Panama, El Salvador, Honduras, Costa Rica, Colombia, Suriname, Paraguay, Chile, Aruba and Curacao.

Tequila Arraigo is made with 100% Blue Weber agave, a longtime hallmark of a quality tequila. Furthermore, the liquid is triple-distilled, giving it a smooth and unique taste. Largely as a result of a concentration on new listings and the quality hallmarks of the brand, business was up 30% year over year in the first quarter of 2013.

Tequila Arraigo says that promotions will be a concentration going forward given a successful activation late last year with Shopping China in Paraguay. The promotion, which was part of a larger Black Friday initiative on the part of the operator, saw 70,000 shoppers visit the store and went a long way toward increasing the visibility of Tequila Arraigo in the country. The company offered a discount of 20% when two or more bottles were purchased. The results were promising, to say the least—1,526 bottles were sold in just three days.

In terms of objectives for the rest of this year, Tequila Arraigo intends to concentrate on continuing to get its name out in the industry and educating consumers, especially with regard to the important points of heritage and quality.

Frida Kahlo Tequila builds domestic distribution in lead-up to 2014 push into travel retail Dave Willett, National Sales Manager at Dorado Pizzorni & Sons, tells Americas Duty Free that having a name like Frida Kahlo behind your brand is certainly helpful when it comes to exposure. Questions of quality aside (the agave used to make the brand is estate-grown and the aging process is proprietary), it’s nigh-on impossible to think of a more well-known personality in Mexico.

“Frida Kahlo is a national icon in Mexico, and certainly when people think about picking up a souvenir, a high-quality product with her name and image on it is a great option,” says Willett.

While Frida Kahlo tequila is currently available in duty free in Mexico, the Dominican Republic, Panama and the US, the company is focusing this year on strengthening domestic distribution throughout the Americas before pushing its duty free agenda in 2014.

Willet tells us that there appears to be a great interest in tequila in general on the part of consumers, which obviously bodes well for continued growth.

“Today’s shopper is very interested in learning about tequila,” he explains, “and it’s across all age brackets, which is nice to see. People are intrigued as to how it’s produced and there’s more of an attitude of connoisseurship these days, which is encouraging. Largely because of this trend, our sales in the first part of 2013 are up double digits over last year, and I’m confident that the brand will continue growing both in travel retail and domestic markets.”

While Frida Kahlo tequila is currently available in duty free in Mexico, the Dominican Republic, Panama and the US, the company is focusing this year on strengthening domestic distribution throughout the Americas before pushing its duty free agenda in 2014

Stephane Gonzalez, Patrón’s new Duty Free Manager for the Americas

Patrón Spirits International appoints Stephane Gonzalez Duty Free Manager for the Americas Patrón Spirits International has announced that it recently welcomed Stephane Gonzalez to its team as Duty Free Manager for the Americas. Gonzalez worked previously at Bijoux Terner and joined the Patrón team in February of this year.

This year’s IAADFS exhibition in Orlando was his first show working with Patrón. Americas Duty Free congratulates Stephane on his appointment.

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

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Diageo GTME Americas

A view toward Premiumization is a big concentration for Diageo, as is evidenced by John Walker & Sons Odyssey and Johnnie Walker Blue Label – The Casks Edition

innovation

BY

RYAN WHITE

Diageo GTME Americas, informed by robust consumerfocused research, aims to grow ahead of the spirits category in general through a focus on innovation across its portfolio

A

mericas Duty Free had the opportunity at this year’s IAADFS exhibition in Orlando to sit down with Matthieu Comard, Vice President of Diageo GTME Americas, and Louise Higgins, Regional Marketing Director at Diageo GTME Americas, to discuss what the world’s largest spirits supplier has planned for travel retail in the months and years ahead.

Given the recent launch of Johnnie Walker The Explorers’ Club Collection and the continuing success of luxury variants such as John Walker & Sons Odyssey and Johnnie Walker Blue Label – The Casks Edition, a good deal of the conversation was centered on the Johnnie Walker brand. Nonetheless, Comard and Higgins made it clear that Diageo’s focus will be on growing the business in new directions moving forward. To do that, they say, all of the key brands in Diageo’s portfolio will play a role.

“I can say that what we’re doing today in terms of innovation is more exciting than anything we’ve ever done.”

Matthieu Comard, Vice President, Diageo GTME Americas “The travel retail channel in the Americas is very exciting at the moment,” explains Comard. “Growing the business ahead of the category in general is going to require reworking the way we did some things in the past and, where applicable, going in completely new directions. Regardless, though, most of what we’re doing centers on innovation.

“Indeed, I can say that what we’re doing today in terms of innovation is more exciting than anything we’ve ever done,” he continues. “Every operator we’ve spoken to has been very excited about what our vision means for the spirits category in general.”

By this time, readers will of course be familiar with the most recent releases in the Johnnie Walker portfolio, but what might not be as clear is the research that has informed these launches. Higgins took us through some interesting statistics as a means of explaining what’s on the shelves now and shedding light on what’s to come.

Capitalizing on trends “We’ve been innovating for years, and importantly this is all based on consumer insight,” says Higgins. “We’ve done a wealth of research and have identified a number of trends that inform what we do with our retail partners in duty free.”

Diageo has isolated a number of consumer groups that are a focus, including Generation Y, or those who have grown up in economically challenging times and tend to make the most of what they have; Women, who represent only 5% of purchases in the travel retail liquor category; The Ageless, defined as 50-plus consumers with or without children that have disposable income; The Emerging Middle Class, or people who now have disposable income that they didn’t previously have; The Luxury-Driven, or those who want to purchase a high-end product and enjoy luxury treatment, even if it’s not a regular occurrence; The Holistic, or those who care about where a product comes from and how it’s made; and The Craft, those who are interested in the craft and effort of goods and for whom it is about “knowing rather than showing.”

Obviously, retail trends and what consumers want to get out of a shopping experience are also a key area of focus. As an example, Higgins explains something she calls “Retail 3.0”: “Consumers are becoming more technologically savvy,” she says. “Diageo is currently looking at what opportunities are out there for making the retail experience more advanced technologically.”

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THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2013

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Diageo GTME Americas

The Spice Road, the first release in the Johnnie Walker Explorers' Club Collection

Experiential Retail and Lifestyle Support are also key considerations: “People want to be treated in a special way when they purchase—they want the product explained to them and they want to be educated,” says Higgins. “Likewise, shoppers are also looking for products that add value to their life.”

Narrowing the focus Informed by the above, Diageo is focusing on differentiation, premiumization, luxury, Chinese shoppers and females in travel retail. With regard to differentiation, no doubt the best and most recent example from Diageo’s portfolio is The Explorers’ Club Collection. Launched in Cannes last year, the collection takes a cue from Alexander Walker’s famed Traveler’s Room, where Johnnie Walker sales agents would share stories of their trips around the world. The Explorers’ Club Collection features three different duty free exclusive Johnnie Walker variants, each blended to evoke sensations from different regions of the world, inspired by the ancient trade routes.

The Gold Route, the second release in the Johnnie Walker Explorers' Club Collection

With regard to the importance of luxury, Higgins offers up statistics indicating that 50% of travelers enter luxury stores not knowing what they are going to buy. “We need to have a solid grasp of luxury and how we market our brands in order to capture these consumers,” she notes.

And related to the above point, the Chinese traveler is certainly one of the biggest consumers of luxury products in travel retail. It’s no coincidence then, that the third and most luxurious variant in The Explorer’s Club Collection is called The Royal Route. The blend explores the sensory experiences of a trip to the Far East and as such effectively targets travelers in the region and Chinese traveling abroad, with Latin America and the US being the obvious priorities for Diageo GTME Americas.

Indeed, US airports are sometimes seen as lagging a bit in terms of luxury shopping when compared to what is on offer in many Asian airports, but Comard says that not only are many retailers in the US upping the ante when it comes to the look and feel of stores, but the US is also still a top destination for Chinese travelers: “Of the top 50 places that Chinese travelers go, seven of them are in the US,” he explains. “I see 100

US travel retail as really quite dynamic and many stores in main airports in the country rival stores anywhere else in the world.

“Like anything, it’s progressive,” he continues. “I think certainly in five years’ time there will be no room for debate—US travel retail will be on the same level as anywhere else.”

Comard also noted that when it comes to luxury and premiumization, Diageo’s commitment to innovation certainly doesn’t stop at The Explorers’ Club Collection: “In all honesty, the majority of the luxury spend today goes into jewelry, watches and fashion. Quite simply, we want to get our fair share. Launches such as John Walker & Sons Odyssey and Johnnie Walker Blue Label – The Casks Edition are a perfect example of how we’re trying to do that,” he says.

Finally, Higgins says that there are clear benefits to targeting the female consumer, which Diageo has done previously with releases like Smirnoff Gold and Nuvo: “There's a very interesting statistic which indicates that by 2014 female generated income will reach about US$18 trillion. This is three times the GDP of China! Of all the opportunities available to us at the moment, capturing the interest of the female consumer is at the top of our list of priorities.”

The bottom line “Quite simply, we’re very excited about travel retail in the Americas,” says Comard. “There are so many opportunities for us to leverage the channel.”

Diageo expects a forward growth of about 9% in the spirits category in the Americas. Comard’s ambition is to grow well ahead of this number into the double digits. He cites passenger growth, increasing spend per PAX and of course Diageo’s commitment to continued innovation as reasons to be optimistic.

“We’ve historically been very good at catering to our core consumer,” he says, “but now we’re also focusing on recruiting new consumers and taking more of a share of the luxury market across categories.

“In the past we may have been a bit guilty of relying too much on Johnnie Walker,” Comard concludes. “Obviously given our most recent releases, we’re not moving away from Scotch at all, but the approach will be much more balanced. Reaching our goals requires innovations across the entire portfolio going forward.”

THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2013

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Introducing the biggest innovation in handmade cigars since the humidor – the NEW locked-in humidity package.

Available for Macanudo, America’s #1 selling premium cigar, as well as Partagas, Punch and Excalibur. Now wherever you go you can enjoy the best-selling premium cigars in the U.S. – individually wrapped straight from the factory.

©2013 General Cigar Co., Inc.

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Liquor News

The distinctive taste of Baron Otard, which sets it apart from other cognacs, has its origins in Château de Cognac, the home of Baron Otard and a landmark in the heart of Cognac

Bacardi launches Baron Otard in Americas travel retail Bacardi Global Travel Retail is continuing to raise the profile of Baron Otard globally with the luxury boutique cognac receiving its Americas travel retail premiere recently at the Duty Free Show of the Americas. Delegates attending the IAADFS show were introduced to the finest Baron Otard cognacs, including Baron Otard VSOP, Baron Otard XO Gold, Baron Otard Extra 1795 and the ultimate expression, Baron Otard Fortis et Fidelis.

“We’re looking forward to introducing our key customers to the exceptional quality of Baron Otard cognac,” says Leigh Irvine, Regional Director - Americas, Bacardi Global Travel Retail. “The time is definitely right to throw the spotlight on Baron Otard and demonstrate our commitment to driving awareness of the brand

throughout the Americas.”

The distinctive taste of Baron Otard, which sets it apart from other cognacs, has its origins in Château de Cognac, the home of Baron Otard and a landmark in the heart of Cognac.

Baron Otard is aged in the historic cellars of Château de Cognac where the thickness of the ancient walls and the proximity of the River Charente guarantee a constant temperature and ideal humidity. It’s these unique ageing conditions that create the very specific, smooth, round taste of Baron Otard cognac.

The Americas debut of Baron Otard follows its biggest ever travel retail showcase in the World Duty Free store at London’s Heathrow Airport earlier this year.

Russian Standard Vodka builds on travel retail success Dynamic brand Russian Standard Vodka recently delivered two key innovations to the region at the IAADFS Duty Free Show of the Americas with the help of Rémy Cointreau Travel Retail Americas.

Indeed, Russian Standard Vodka is the world’s number one premium Russian vodka and the fastest growing vodka in travel retail, (IWSR 2011), as well as the number one premium vodka in Russia itself. The brand used the exhibition to launch Russian Standard Gold in travel retail in the US. This builds on the variant’s considerable success across the rest of the world where consumer samplings have helped deliver impressive purchase rates.

Russian Standard Gold is a unique combination of classic vodka and carefully selected extracts of Siberian Ginseng, or “golden root” in Russian. Russian Standard Gold is a luxurious vodka, with aromas of caramel, warm vanilla and cinnamon, which retails at just US$29.99 per liter. It is produced at the company’s state-of-the-art distillery in St. Petersburg using the finest Russian winter wheat from the southern Steppes of Russia and the softest waters from Lake Ladoga.

Secondly, a Russian Standard Original 2x1 liter pack was

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showcased, which is being offered in the Americas for the first time. This twin-pack enables consumers to receive a generous discount on the regular purchase price of a liter bottle.

With consumer education a key element in the extraordinary success of the brand to date, Igor Galburt, Russian Standard Vodka Brand Ambassador Americas and Rémy Cointreau Travel Retail Americas conducted staff training sessions at major airports including Atlanta, Chicago and Dallas this spring, reflecting the importance of the region to the brand.

Andrew Notcutt, Global Marketing Manager, Russian Standard Vodka: “Russian Standard Gold is a wonderfully smooth vodka with a touch of ginseng which sets it apart from the crowded shelf. We have been delighted by the success of Russian Standard Vodka in travel retail so far and, with a great product line, motivated staff and attractive price points, we have high hopes for the American market.”

Russian Standard’s new 2x1 liter pack is being offered for the first time in the Americas travel retail market

THE AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2013

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Liquor News The introduction of Papa Andres to duty free marks the first time the expression has been available outside of the family

Brugal launches new variants, packaging at IAADFS 2013 At this year's IAADFS exhibition, Americas Duty Free had the opportunity to speak with Juan Campos, Brand Development Manager Americas for Brugal at The Edrington Group, and Jassil Villanueva, Brugal's very first maestra ronera, about the many new developments that the brand showcased in Orlando.

"We have a lot of news," Campos told us. "In addition to some new packaging innovations we're also launching Brugal Especial Extra Dry. In the Americas, this is a core expression for us domestically. The rum is aged between two and five years—the same as Brugal Anejo—before being triple filtered, so it's something quite unique that we expect will have quite an impact on the world of high-end cocktails."

Brugal Especial Extra Dry marks the first time that Brugal is launching a white expression in travel retail. Fans of Brugal will notice that Especial Extra Dry's bottle is different from previous iterations of Brugal rum, and Campos tells us that the new packaging is actually part of a larger-scale redesign that also includes Brugal Añejo Reserva and Brugal Gran Reserva XV. In fact, with regard to Gran Reserva XV, the packaging isn't the only thing that has changed, Villanueva tells us: "The liquid itself is actually different," she explains. "We've started blending the traditionally aged Extra Viejo with rum aged in sherry casks. The addition of the blended sherry cask rum gives it a slightly sweeter palate, offering more fruit notes than you would normally find in Brugal Extra Viejo while maintaining its distinctive dry style.

For duty free, Añejo will be packaged with a net and Gran Reserva XV will be sold in an appropriately high-end gift box.

Also showcased at the IAADFS exhibition was Brugal 1888 and Siglo de Oro. The show stealer for Brugal, however, is Papa Andres. The blend was originally only for family members and

only 20 cases a year were made. The introduction of Papa Andres to duty free marks the first time the expression has been available outside of the family.

Commemorating the 125th anniversary of Brugal, only 500 bottles will be available worldwide.

"Each bottle is numbered and signed by the maestro ronero," explains Campos.

"As such, it's a very special expression suited perfectly to travel retail given its rarity.

Papa Andres was launched in Cannes and I can tell you that we received a very warm response from operators. We're looking forward to rolling out the Americas allotment, which is set at just 150 bottles.

Brugal is focusing on visibility, tastings and education in order to bring people up to speed on the relatively new boom in high-end rums. "We feel it's not a question of if high-end rums will explode in travel retail, but when," he adds. "You can already see consumers showing a great deal of curiosity in this relatively new spirits subcategory.

I also have to thank our Americas distribution partners Rémy Cointreau for the great work they've done in creating a lot of excitement around the Brugal brand and the rum category in general."

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

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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).

The company says that the White Gold brand makes up almost 14% of the premium vodka segment in Russia and is the number one premium vodka brand produced in Moscow. In 2011, the company sold more than 2.5 million 9-liter cases of vodka worldwide. White Gold, the company says, has gained listings with Gebr Heinmann, Aer Rianta International and Dufry Group since it was first launched in the travel retail channel in 2009.

In 2011, White Gold and Russian Gold reached numbers 26 and 29, respectively in the top 50 vodka brands in duty free worldwide.

White Gold’s bottle redesign reflects the fact that the company’s consumer based has expanded significantly in recent years

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Liquor News

FRUTTA Winespirit targets Americas travel retail

FRUTTA Winespirit has trademarked the tagline "Low Guilt" as part of its brand message given the fact that the beverage is 100% natural and is relatively low in alcohol and calories

At this year’s IAADFS exhibition in Orlando, Americas Duty Free spoke with Luis Merino, founder of FRUTTA Winespirit, about the company’s new offerings for travel retail. Billed as “the original Aperitivo Mediterráneo” and distributed in Latin America and the Caribbean by industry veterans MONARQ Group, FRUTTA Winespirit is the original handcrafted Mediterranean fusion of white wine, spirit and natural organic fruit juices.

“It’s a very versatile drink,” says Merino. “It can be drunk over crushed ice, used as a “spritzer” or even mixed into cocktails. Furthermore, the bottle design is unique and very impactful, always an important consideration for travel retail.”

FRUTTA Winespirit has trademarked the tagline "Low Guilt" as part of its brand message given the fact that the beverage is 100% natural and is relatively low in alcohol and calories. The range includes blends with Strawberry, Orange, Passion and Super Berries as the leading flavors. The range launched in 2013 and is, or will shortly be, available in Spain, Colombia, Norway, Mexico, Turkey, Germany, Belgium, Japan, the Caribbean, South Africa, Israel and Canada. Furthermore, Merino tells us that the reaction at IAADFS was very positive.

“Everyone loved it,” he explains. “From the taste to the unique positioning, we feel that FRUTTA Winespirit offers something truly new for the Spirits category in travel retail.”

On February 19 at Hotel Manzoni in Milan, a giant check was handed over by Sandro Bottega, President of Distilleria Bottega, to the President of the Breast Health Institute Susan Schwartz

Savary secures New World wines listings with Dubai Duty Free Savary Argentina has announced that it has recently secured listings with Dubai Duty Free in the UAE. The company will begin its partnership by listing a number of wines from its New World Wines portfolio “This is a very important listing for us as Dubai Duty Free is a very well respected retailer,” says Savary’s commercial team. “Furthermore, we’re very pleased to be breaking into the Middle Eastern travel retail market and feel that our high-end wine brands will offer something new and exciting to travelers through Dubai Airport.”

A selection of Savary’s wines will be listed with the operator starting this month. Also during the month, Savary will organize its first staff training session with Dubai Duty Free sales staff.

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Bottega helps raise over US$12,000 to help Breast Health International Bottega, in cooperation with duty free and travel retail operators, were able to raise €10,000 (US$12,931) throughout 2012 on the sales of Il Vino dei Poeti Rosè. This amount was donated to Breast Health International (BHI) to finance special programs to fight against breast cancer.

On February 19 at Hotel Manzoni in Milan, a giant check was handed over by Sandro Bottega, President of Distilleria Bottega, to the President of BHI Susan Schwartz, during an informal ceremony.

Always a great supporter of good causes, the initiative’s roots trace back to 2007, when Distilleria Bottega—helped by duty free operators—devised a special marketing plan that consisted of giving €1 (US$1.29) from the sale of each bottle of Il Vino dei Poeti Rosè sold in duty free to the BHI.

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Introducing Le Voyage de Napoleon,® a new collection from Courvoisier,® available exclusively in Travel Retail. This portfolio captures the brand’s rich, pioneering heritage, forever linked to one of the most famous travellers in history.

Courvoisier® was one of the few luxuries Napoleon brought with him when he was sent into exile. Thus it became known as ‘The Cognac of Napoleon’, a title that proudly adorns every bottle to this day.

This special edition trio of our renowned VS, VSOP and XO cognacs will appeal to loyalists and discerning drinkers alike.

Courvoisier®, the Napoleon device and Le Cognac de Napoleon are trademarks of Courvoisier® S.A.S. ©2013 Courvoisier® S.A.S.

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Liquor News

Beam Inc launches Courvoisier Le Voyage de Napoleon in North American duty free Beam Inc is launching Le Voyage de Napoleon, Courvoisier’s new exclusive duty free offering, across North American airports this month.

This follows its successful launch earlier in the year in European and Dubai duty free.

Showcased at TFWA Cannes and IAADFS, Le Voyage de Napoleon is a collection of Courvoisier’s renowned VS, VSOP and XO cognacs and is designed to appeal to modern, discerning consumers whilst tapping into the growing trend towards luxury products.

Inspired by one of the most famous travelers in history, the collection is presented in distinctive and opulent packaging inspired by the journeys of Napoleon, a figure intrinsically linked to Courvoisier’s rich, pioneering heritage. Featuring a linear design incorporating gold, burgundy and black across the range, the packaging celebrates the star that the French conqueror called upon for luck at the start of each battle. The symbol later became central to the design of the Légion d’Honneur, the French military order established by Napoleon.

Beam Inc director of US, Mexico and Caribbean Duty Free Jose Aponte says: “Duty free is an important channel for Beam and provides a great platform to showcase our brands

to a global audience.

“Le Voyage de Napoleon collection will appeal to Courvoisier loyalists as it offers the key expressions across the price range and the luxurious presentation reflects the quality, tradition and craftsmanship of Courvoisier. Its exclusivity makes it more desirable for duty free shoppers who look for luxury brands with a point of difference to those in domestic markets and the links with Napoleon will stimulate interest, making it the perfect gifting solution for today’s air travelers.”

Courvoisier has been passionately handcrafting the finest cognac since the reign of Napoleon more than 200 years ago and encapsulates this rich heritage and expertise with a world-class luxury spirit. Courvoisier is the only cognac house in the world to be awarded The Prestige de la France – the highest accolade for quality in France.

Legend has it that Napoleon held Courvoisier in such high regard that he chose it as one of his luxury items when sent into exile. Since then, the title ‘The Cognac of Napoleon’ has proudly adorned each bottle.

Le Voyage de Napoleon is a collection of Courvoisier’s renowned VS, VSOP and XO cognacs and is designed to appeal to modern, discerning consumers

SPI Group gets sweet and spicy SPI Group has effectively expanded its popular flavor range with the introduction of Stoli Hot and Sticki across travel retail. The recipes are based on Stoli’s original Pepper and Honey & Herb flavors introduced in 1962.

“Stoli Hot offers the warm, fiery sensation of jalapeño peppers—spicy on the palate yet with a delicate smoky quality, ideal for Bloody Marys,” explains a spokesperson for SPI Group. “By contrast, Stoli Sticki is inspired by the delicious, candied taste of the finest honey and incorporates complex floral notes to complement its subtle sweetness.

“We envisage awareness in the vodka category will continue to expand and will be reflected in the sales volumes,” continues the spokesperson. “Consumers are looking beyond their traditional drinking habits and moving towards the new trends with a greater focus on innovation and quality.”

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Stoli Hot and Sticki are based on Stoli’s original Pepper and Honey & Herb flavors introduced in 1962

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This display at Botran’s distillery pays homage to the hard work of previous generations in creating a rum that is truly unique among rums

Botran Rum

Botran Reserva Blanco, Botran Reserva and Botran Solera 1893, all available for duty free

Botran unique Solera aging process takes place in the mountains of Quetzaltenango, giving the rums a special character by virtue of the cold temperatures

Staying power Botran has been crafting high-end Guatemalan rums for generations and now brings the same dedication to its push into worldwide travel retail RYAN WHITE BY

e’re not in this for the short term,” Frank Quiñones, Commercial Director of Exports for Botran Rum, told me as we flew by helicopter from our hotel just outside of Antigua Guatemala to Botran Rum’s sprawling distillery in the mountains of Quetzaltenango. “Travel retail is a very important channel for us and it doesn’t do any good for anyone if we’re not committed 110%.”

While it’s hard for any brand to break into the channel, Quiñones does note that he’s grateful for the brand’s—and indeed the Botran family’s—reputation in Guatemala for producing rums of the highest quality for generations. And slowly but surely inroads are being made in travel retail. Quiñones notes that the operators the company has worked with to date are very pleased with the brand’s performance.

“It can really go one of two ways with a brand that is new in travel retail,” Quiñones explains above the chopping of the helicopter blades.

“Either you get someone who has bitten off more than they can chew or you get a company who has done its homework, is committed to 110

growing its business sustainably and is grateful for the opportunity to prove itself. With us, it’s most definitely a case of the latter.”

Tasting the difference When we arrived at the distillery we were greeted by Isabel Medina, Botran’s Global Brand Ambassador, who explained to us before a tasting that the Botran family has a long history of making spirits in Guatemala, starting with aguardiente (a sugar cane-based spirit), white rum and finally perfecting the art of aging rums after generations of practice.

The theme of commitment again arose as Medina explained the sugar cane harvest, which is essentially the first step in producing Botran’s award-winning rums: “The quality of the finished product necessarily relies heavily on the quality of our sugar cane,” she said. “As such, Botran is one of the only rum producers in the world to grow its own sugar cane. We carefully control the whole process— from the time the cane is harvested to the time the final liquid is poured into the bottle—as a means of ensuring that we’re producing the best rum that we can.”

Medina’s passion for rum was clear as she

walked myself and a number of other journalists through tastings of Botran’s three variants—Reserva Blanco, Reserva and Solera 1893, all available in travel retail. She explained that Botran rums begin with what is called “virgin honey,” which is the concentrated juice that is extracted from the sugar cane. Other rums use molasses, which is essentially a byproduct of sugar production.

In addition to tasting the rums themselves, we nosed and compared molasses and virgin honey, and the difference was palpable.

“When you start comparing the raw materials from the very beginning,” Medina explained, “Botran Rum’s unique characteristics are easily identifiable.”

And as dedicated as Botran is to making rum, the family also sees taking care of its own as part and parcel of the business. Quiñones explained to me that not only does the yearly sugar cane harvest provide much needed jobs for hundreds of Guatemalan men and women, the workers are also paid a wage that they would be hard put to earn doing anything else.

“Planting and harvesting the sugar cane is as much an art as aging and blending,” Quiñones explained. “It behooves us as a

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“People are more and more concerned about the pedigree of the products they’re buying, and Botran’s story is as compelling as that of any other spirit.”

Frank Quiñones, Commercial Director of Exports, Botran Rum start to get repetitive, but I was pleased to learn that essentially every step in Botran’s production process has been customized or tweaked in one manner or another to produce the highest-quality rum possible. In addition to the colder temPlanting the sugar cane; Botran is perature at which the one of the only rum makers in the world to plant its own sugar cane, rums are aged, the yeast allowing it to use “virgin honey” as added to begin the feropposed to molasses, which is a byproduct of sugar production mentation process is a proprietary strain developed by the Botran family. Furthermore, rums are normally fermented for 24 or 36 hours, but Botran ferments its rums for five full days.

“The chemical compounds that produce flavor in rum cannot be imitated,” Medina told us. “Our five-day fercompany to make sure our workers are prop- mentation ensures that we extract all the erly compensated; each step in the process is necessary compounds—and of course all the extremely important.” flavor.”

The final step before aging—distillation— Tradition meets innovation is also replete with small variances on the After three days of enjoying Botran’s rums, I standard method. “Everything you do or was struck by how versatile they are. Any of don’t do to a spirit will change the final prodthe three variants can be enjoyed neat, and as uct,” Medina told us. “The current processes Medina explained, adding a few pieces of ice we employ at the distillery are the result of genor a bit of water gives an entirely different sen- erations of experimentation to ensure that we sory experience. Solera 1893 and Reserva get it right. Consistency is a hallmark of specifically are perfect to drink on their own Botran rums that we’ve very proud of.” by virtue of Botran’s proprietary aging process, I was surprised to learn that when the which takes place high in the mountains of rums do eventually make it into the barrels, Quetzaltenango at a colder temperature than Botran’s Solera aging system is a very dynamic most other companies age their rums. one to say the least. The rums are first aged On the other hand, the rums are just as in ex-bourbon barrels (American white oak) enjoyable in a cocktail. Indeed, Medina noted before being transferred to charred ex-bourthat the latest variant, Reserva Blanco, was bon barrels. Next it’s on to ex-sherry barrels made specifically with mixologists in mind from Jerez de la Frontera, Spain before a final given the current trend toward high-end finishing in port barrels from Portugal. cocktails.

Needless to say, the flavors and aromas Admittedly, after visiting more than a few presented by Reserva and Solera specifically distilleries, the jargon used by tour guides can are complex and ethereal, changing depend-

ing on the serve, what you might be eating or even your mood. The depth and breadth of experiences the rums present make them a must-have for any home bar.

Commitment to the channel “People are more and more concerned about the pedigree of the products they’re buying, and Botran’s story is as compelling as that of any other spirit,” Quiñones told me after the distillery visit. “Based on this we’ve secured a number of listings in Latin America, most recently with World Duty Free Group in Chile and Peru.”

I touched base with Quiñones again just a month after the trip to Guatemala at the TFWA AP exhibition in Singapore, and on the topic of commitment to the channel, he noted his presence there was a perfect example of the brand’s sustained push into travel retail.

“This is the second year we’ve attended the Singapore show in addition to IAADFS in the Americas and the Cannes show,” he said.

“We’re here for the long haul and we’re looking for operators who want a long-term partner that can bring a new dimension to the premium spirits sections of their stores and make a profit at the same time.”

For the rest of the year, Botran will concentrate on continuing to secure new listings, with key airports in the US as a top priority. Quiñones says the brand will also become more active in the duty free stores where it’s already listed through promotions and tastings in addition to gaining distribution in domestic markets.

While not everyone is lucky enough to travel to Guatemala to see the hard work and passion that goes into the making of Botran rum, Quiñones is confident that the tradition and heritage that goes into every bottle is converting consumers one by one as they taste the liquid. “If feel it’s just a question of time before duty free on a larger scale sees the benefits of listing Botran,” he concludes. “In the meantime, we’ll continue to invest in the brand and support the channel. We’ve been making quality rums for generations, so we’re

not going anywhere.”

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

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Cigar Report General Cigar’s new freshness pack is available for Macanudo (pictured), Partagas, Punch and Excalibur

New perspectives BY

RYAN WHITE

Cigar companies are pulling out all the stops to give consumers a fresh take on some of the world’s best-loved brands

F

rom new websites and marketing campaigns to innovations in cigar storage and new presentations of old favorites, it’s clear that the leading cigar companies servicing the Americas travel retail market are committed to keeping the category dynamic. Americas Duty Free speaks with General Cigar, Arturo Fuente Cigars, Habanos and Davidoff to get a sense of what traveling consumers can expect to find the next time they enter a duty free store in the Americas.

Macanudo’s six-cigar “Celebramos” ashtrays have performed particularly well for the company in travel retail

Form follows function

Alan Willner, Vice President of Marketing at General Cigar, tells Americas Duty Free that the main concentration for the company in travel retail has been on its freshness packs, originally introduced last year. The advantage of this innovation, says Willner, is that the packaging retains the moisture content of the cigars and provides a quality smoke while eliminating the need for humidification equipment. Travel retail buyers find this to be extremely beneficial, while also seeing the added benefit of meeting their customers’ needs for convenience and portability.

“We’re capturing the occasions when consumers are out playing golf, fishing and vacationing outdoors. They are often not able to enjoy premium cigars because purchasing them can be inconvenient while traveling. The freshness packs give cigar lovers the opportunity to seize the moment to enjoy a handmade cigar whenever they so choose.”

General Cigar selected the Macanudo brand when introducing its single-cigar freshness packs in travel retail last year. The newest size available, showcased at this year’s IAADFS exhibition in Orlando, is Rothschild. Also available in the new format in US duty free are the Punch, Excalibur and Partagas brands.

Other offerings performing well for General Cigar in duty free, Willner tells us, are the Macanudo six-cigar ashtrays and the new Don Tomas carrying packs, both of which were introduced last year.

“The travel retail business in the Americas has surpassed expectations,” explains Willner. “We’ve been concentrating on our core assort-

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ments and ACG, our distributor, has helped to ensure that the products and brands we’re offering are tailored to the needs of the travel retail industry.”

And the listings are there to back up Willner’s assertions. Marc Panara, Sales Director at ACG, gave us a run-down of recent listings, which include International Shoppes stores in New York, Philadelphia and Boston airports; DFS stores in San Francisco, Los Angeles and New York airports; Saint Honore stores in Panama; Dufry Miami aboard Norwegian Cruise Lines; all of Dufry Dominican Republic’s stores; Dufry Puerto Rico’s stores at San Juan Airport; Jamaica Farewell stores in Montego Bay; and DFA stores in Atlanta, Boston, Detroit, Washington and New York airports, to name but a few.

Despite the new innovations and listings, Willner ended our conversation by noting that General Cigar is showing no signs of slowing down. Macanudo is sponsoring Big Break, a popular reality competition which airs on NBC’s Golf Channel. The show features six men and six women competing in various golf-related skills challenges, with the winner receiving an exemption to compete either on the LPGA Tour at the 2013 Lorena Ochoa Invitational or on the PGA TOUR at the 2013 OHL Classic at Mayakoba.

“Macanudo is being featured prominently during the 11-week season,” says Willner. “On the show, there’s a beautiful oceanfront Macanudo lounge that will be featured in a number of the episodes, and the brand will also be a part of the skills challenges. To my knowledge, no other premium cigar company has had such prominent brand activation on TV, so it’s very exciting. It’s one of the many ways we continue to ensure that Macanudo is seen for its leadership role in the premium cigar category.”

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“Boots on the ground”

The travel retail channel is also a priority for Arturo Fuente Cigars. At this year’s IAADFS exhibition the company showcased its duty free exclusive travel bag, which contains five Arturo Fuente Sun Grown Double Chateau Cigars. A nice touch for operators, says Vice President of Operations at Arturo Fuente Cigars Karl Herzog, is that the packs have an integrated barcode for easier scanning.

“We’re also working on two other duty free exclusive travel bags specifically for the Asia region,” he notes. “The packs will contain three Arturo Fuente Sun Grown Double Chateau Cigars with a red ribbon given that this is seen as a very auspicious color in many parts of the region. We originally wanted to go with four cigars in the pack, but as that’s seen as an unlucky number, we went with three to get the price down a bit.”

Much like General Cigar, Arturo Fuente Cigars has also noticed that keeping product fresh is a big concern for operators. As such, the company has developed three different resealable multipacks that will stay fresh for two-plus years. In conjunction with this, special furniture is also in the works to display the new packs.

“We’re hoping to premier the furniture in ASUTIL,” says Herzog. “Most operators tend to have little or no humidor space so this is really about finding creative solutions. The operators we’ve shown the packs to in IAADFS were very excited about them.”

In terms of new listings, the company recently began working with a new operator partner in Australia. Despite this, Herzog is honest in his assessment of the company’s work in travel retail to date: “We haven’t done as good a job as we can in putting boots on the ground and getting more travel retail listings,” he explains. “We’re currently undergoing a bit of a reshuffling right now with the aim of focusing more on travel retail and regions that we identify as being underserviced.”

A refining of the distribution system has also led to more competitive pricing without sacrificing quality, which will certainly help in terms of listings and sales. Having said this, luxury cigar brand Opus X is still a big concentration for the company. Opus X Rare Estate Reserve 1992 in striking tin packaging was just recently released to great fanfare in the cigar world, and although quantities are very limited, Herzog tells us that duty free listings were secured with DFA in Miami and JFK.

New look, classic brand The theme of new pack presentations is something that Habanos has also been concentrating on lately. The company recently announced that following the presentation of Romeo y Julieta Petit Churchills in a 25-unit box in 2012, Petit Churchills are now available in a new presentation: an aluminum tube containing three units.

Romeo y Julieta was created as a Habanos brand in 1875. Its roots lie in the literary tragedy of the same name by the British playwright William Shakespeare. The brand enjoys considerable prestige worldwide and offers the widest range of 100% handmade sizes available in any Habano brand. The brand also features selected leaves from the Vuelta Abajo zone in Pinar del Río, making it a classic medium-bodied Habano.

Indeed, Winston Churchill was one of the most devoted smokers of the Romeo y Julieta brand. Ever since his visit to Havana in 1946, his name has not only been widely used on Habanos, but also came to represent the bestknown vitola within the brand: the Churchills

by Romeo y Julieta.

The new presentation of the Romeo y Julieta Petit Churchills in a three-unit aluminum tube is now available in all markets around the world, notes Habanos.

The new Opus X Rare Estate Reserve 1992 is available in very limited quantities but has been listed in DFA stores in Miami and JFK

Time beautifully spent

Davidoff recently launched its new “Time Beautifully Filled” campaign on a worldwide scale. The initiative is marked by an innovative visual identity, advertising, merchandising, and a digital platform.

“Time lies at the very heart of our philosophy,” says the company. “On one hand, it can be fleeting, passing all too quickly. And yet, on the other hand, it is an exquisite moment of indulgence—a luxurious occasion, just waiting to be filled beautifully.”

Part of the launch includes a completely new website—www.davidoff.com—that discusses the concept of time as it relates to enjoying a cigar, cultivating tobacco, creating a blend and making a cigar. Indeed, in a world where time is increasingly a highly sought after commodity, the website asserts that “time is the ultimate luxury,” inviting consumers to “fill it beau tifully” with a Davidoff cigar.

Davidoff’s newly redesigned website asserts that “time is the ultimate luxury” and invites consumers to “fill it beautifully” with a Davidoff cigar

The new presentation of the Romeo y Julieta Petit Churchills in a three-unit aluminum tube is now available in all markets around the world

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Japan Tobacco International

Redefining

To reflect the wide international appeal of Camel to adult smokers, JTI commissioned twenty international artists— designers, painters, musicians and DJs—to create images and soundtracks for over 100 original works of art

BY

MELISSA SILVA

retail

In addition to Camel’s 100th anniversary celebrations in Latin America, JTI rolls out its innovative retailing strategy in the Americas with International Shoppes BY RYAN WHITE apan Tobacco International (JTI) recently announced that for the first time, the company will roll out its duty free business strategy in the Americas. The strategy will be put in place at the main shop at Terminal E departures at Boston Logan airport.

The store was first opened in May 2012, after International Shoppes took over the concession of this and other stores at Boston Logan International. The store’s layout has been redesigned to actively drive total duty free sales, significantly enhancing overall revenues for the store.

JTI’s duty free merchandising solutions strategy presents a game-changing opportunity for travel retailers, the company says. “For a long time now, travel retailers have acknowledged that tobacco is probably the most effective footfall generator in their entire portfolio of products,” says David Francis, Head of JTI’s Worldwide Duty Free Business. “What we’ve done is to formulate a proven strategy for converting that footfall into consumer purchases, right across the store’s range of core products.”

“The duty free solution for our Boston Logan Terminal E shop that was developed in partnership with JTI has not only allowed for a logical display of tobacco products for our customers, but has also created an elegant sales solution that satisfies the FDA’s non self-service policies,” says Matthew Greenbaum, Vice President of International Shoppes. “This thoughtful approach resulted in enhanced sales of duty free tobacco products and has upgraded the overall look and feel of the shop as a whole. I am looking forward to deploying similar solutions throughout our other duty free outlets.”

The innovative duty free merchandising strategy developed by JTI, which swept the Best Supplier of the Year 2012 Frontier Award, has been developed to help grow cross-product sales in duty free. It shows how tobacco products as a whole can benefit the entire tax and duty free industry.

by “remixing” their imagery into entirely new and contemporary presentations. “The new designs resonate and connect with the interests and lifestyles of adult Camel smokers around the world,” says JTI. To reflect the wide international appeal of Camel to adult smokers, JTI commissioned twenty international artists—designers, painters, musicians and DJs—to create images and soundtracks for over 100 original works of art for the “Remix” celebrations.

The story of the Camel brand began in 1913 when the famous Barnum and Bailey Circus came to Winston Salem in the US, where RJ Reynolds Tobacco is based. RJ Reynolds himself saw a camel amongst the many circus animals. He decided to call his new cigarette “Camel,” which then became the image of the brand. Ever since, the Camel has featured in some of the advertising industry’s most famous and longrunning campaigns, including the “I’d walk a mile for a Camel” cam paign, which ran successfully for over forty years.

A special celebration In related news for JTI in the Americas, the company has announced that in April celebrations kicked off in Latin America to mark the 100th anniversary of the Camel brand.

Events took place in duty free locations at Mexico City International Airport with Dufry, at Cancun Airport with World Duty Free Group and at Punta Cana Airport with UETA. Special limited edition packs and standard Camel products featuring the 100 Year Anniversary design were available throughout all of Latin America.

“100 years remixed,” Camel’s centenary campaign, pays homage to some of the brand’s most memorable past advertising campaigns 114

JTI’s duty free merchandising solutions strategy presents a game-changing opportunity for travel retailers

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Zippo

Rising above Innovation and an ability to roll with the punches has kept Zippo on top of its travel retail game BY

MELISSA SILVA

E

conomic slowdowns, political unrest and other global turmoil mean one thing for the duty free industry: unpredictable business. What can make or break a company during tough times is the ability—or inability—to adapt and be innovative in the face of unwelcome change. When New York’s twin towers fell in September 2011 the aviation industry as a whole changed, and duty free was in the eye of the storm. Stricter rules developed by the TSA and the Department of Transportation put restraints on travelers, causing concern for retailers, operators and brands.

When 9/11 happened, domestically we had to stop being on board,” says Violet Snyder, Global Licensing Director. “That happened and it was tough for us. The laws changed and our company went and worked cooperatively with the TSA and the Department of Transportation because it was the Department of Transportation that was saying ‘no lighters.’”

Since lighters were permitted on board again in 2007, Zippo has become more focused on its travel retail business. “We brought on

Bart Collins, who is our District Sales Manager for travel retail/duty free and we’re also behind the business now with more marketing support,” says Snyder.

Because there is still the perception that lighters can’t be brought on board, Zippo has its work cut out for it. “You can legally take a lighter on board now. You can take it through security,” says Snyder. “So now the struggle has been to re-educate everybody that yes, you can take one lighter through security, legally. There are certain countries, like in China, it’s forbidden and in Germany there are some restrictions, but generally speaking it’s okay now.”

Although it took a while for the brand to regain business in travel retail, today sales are strong and growing, specifically in the Americas. “Our biggest client in the US is Hudson News, and we’re with them in many locations— airport locations, train stations and bus stations,” says Collins. “Zippo lends itself very well to such an environment because 30% of lighters were already being purchased as souvenirs to begin with, not even for smoking, so when we developed that program for Hudson it became very successful, especially with the destination pieces that we designed for them specifically.” Zippo customizes lighters with destination imprints for its airport stores, as seen with its Vegas, Chicago and Seattle lighters.

Zippo began venturing into apparel, having already added watches and pens to its

product offering. “The jump from Zippo lighters to apparel was a big jump, so what we’ve done is incorporated the legacy of Zippo into the style of the jeans,” says Collins.

“So the jeans have the lighter pocket, which incorporates the lighter into the jeans.” Made in California, the jeans are currently only available for men and priced at approximately US$120.

Zippo launched the jeans at the IAADFS show this past April to garner a response and has already made a lot of progress developing its marketing strategy for the novelty. “I think where we are heading is e-commerce, internet sales and offering the product to our existing clients, specifically the ones who have been very open to carrying the bags,” says Collins. “The idea is to have them open up shops-in-shops in their existing stores and we already have a few around the world who want to start.”

This year Zippo has already launched stores in China, which are doing very well, and has big plans for the next few years. “By the end of this year there are five more stand-alone stores planned,” says Snyder. “Some of them are already established distributors that carry Zippo that just want to expand, and some of them are completely new and all they deal with is the apparel.”

Above all else Collins believes Zippo has what consumers are looking for when it comes to accessories, and more recently, apparel. “I think consumers in general are looking for good quality brands at reasonable prices, and that’s exactly where we wanted to come in,” he says. “Our lighters are very reasonably

priced and they’re very unique.”

Zippo’s custom lighters range from a variety of themes including ace of spades, butterflies, the Statue of Liberty and personal messages

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Tobacco News

Villiger’s premium line, and especially its Aromatic Premium cigarillos, are a strong performer and have become a perennial favorite in travel retail

Villiger sees strong performance in Argentina, looks to 2014 for increased growth in Brazil Lydia Garcia, Area Export Manager for Central and South America at Villiger, tells Americas Duty Free that despite strong performance in Argentina in 2012 (the company was up 10% over 2011), better performance was expected in Brazil. Of course, like many other suppliers, the company is hoping sales will start increasing in Brazil this year and next as traffic continues to grow and the Olympics and FIFA World Cup take place.

In terms of international bestsellers, Villiger continues to enjoy success with its Premium line, and especially its Aromatic Premium cigarillos. “Our objectives for this year are to increase our market share in the travel retail sec-

tor by increasing brand awareness and listings in cooperation with operators,” notes Garcia.

To this effect, the company is running GWP promotions in Argentina given the strong performance there last year. Furthermore, training is also an ongoing initiative: “When the sales staff know the products better, they’re able to offer better service to a customer looking for a good cigar, so the importance of training can’t be understated,” Garcia says.

Garcia will be attending this year’s ASUTIL conference and says that she looks forward to speaking with operators and fellow suppliers at the annual event.

New Belaire Rosé launches in the Caribbean and beyond Industry veteran José Chao, President of Horizon Premium Brands, Inc. recently showcased a number of new tobacco products aimed at value-conscious travelers looking for something other than premium tobacco brands at this year’s IAADFS. Americas Duty Free spoke with Chao about what he had on offer at this year’s show.

“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 Group-owned 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 reengineered it with a new 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. Horizon Premium Brands has just completed a redesign initiative on the Pitbull brand that also

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included an upgrade in the tobacco quality.

Police is a value proposition that provides maximum savings to the consumer that holds value as the single most important factor in 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 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 “own” brand, says Chao. The brand comes in Full and Light Flavors.

Horizon Premium Brands’ new portfolio of tobacco products aimed at value-conscious consumers

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Tax Free World Association Asia Pacific

The welcoming cocktail was attended by 633 people and held at the Raffles hotel

TFWA ASIA PACIFIC CONFERENCE AND EXHIBITION CLOSES ON A HIGH NOTE A record breaking year for TFWA AP despite last minute venue change

T

he four-day TFWA Asia Pacific Conference and Exhibition, held from May 13 to 16, broke records for exhibition space, exhibitors and visitor numbers – a true testament to the ongoing importance of duty free and travel retail in the Asia Pacific region.

A total of 2,452 visitors, up 13% from last year, visited the show, representing 1,004 companies (9%) including 832 executives from duty free & travel retail operators—the key buyers and landlords. This represented a 14% increase on 2012.

Visitors were treated to a wide range of international and local brands from 253 exhibiting companies (up 6.8%), of which 74 were new or returning and included names such as Hugo Boss, Clarins, Paul & Shark, Haribo, L'Oreal Luxe, National Geographic, Red Bull Eyewear, Troika and Breo. In total they covered an impressive 8,100 square metres of exhibition space 17.7% up on last year.

“Notwithstanding the enforced last minute move to the Marina Bay Sands Expo Center, TFWA Asia Pacific Conference and Exhibition 2013 has been easily one of the best events to date with records broken all round and high levels of satisfaction. For TFWA this is an excellent result and we are delighted,” said Erik Juul-Mortensen, President TFWA, commenting on the last day of this year's Singapore-based event.

As has been well documented, the event was moved to the Marina Bay Sands as the usual Suntec Centre, under renovation, was not ready in time. “I wish to pay tribute to all the participants at TFWA Asia Pacific Conference & Exhibition for the way in which they responded to the last

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The annual four-day TFWA Asia Pacific Conference and Exhibition was held from May 13 to 16

A total of 2,452 visitors, up 13% from last year, visited the show

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Tax Free World Association Asia Pacific

minute change of venue. Our partners pulled out all the stops to ensure that we were able to stage an exhibition and conference event of the usual high standard; the exhibitors were very understanding and worked with us to resolve any issues related to their stands; the visitors adjusted their plans to suit the new venue where necessary; and my colleagues on the TFWA team have made a tremendous effort to produce a successful show,” said Juul-Mortensen.

TFWA is conducting a full survey of both visitors and exhibitors to gain feedback on the event and future venue options. The results will be taken into full consideration and the venue and date for TFWA Asia Pacific Conference & Exhibition 2014 will be announced before the end of June.

Business as usual Indeed it was 'business as usual' with a very positive and busy atmosphere throughout the conference and exhibition week; busy aisles; impressive stands—including three double-deckers from William Grant & Sons, Imperial Tobacco and JTI; and a packed ONE2ONE pre-arranged meetings service which facilitated meetings between airports, airlines, suppliers and other companies using a dedicated suite of meeting rooms.

More than 300 meetings were booked with 30 airports and 23 airlines, particularly important for new companies entering the channel.

As usual the week commenced with the Opening Conference, which this year took the theme 'Striving for Perfection'.

Some 714 people attended the opening plenary (+26%) where the highlight was undoubtedly Dr. Mahathir bin Mohamad, fourth Prime Minister of Malaysia with a very engaging and often humorous presentation.

The keynote speakers, who gave fascinating presentations, also included Gilbert Ghostine, President Asia Pacific Diageo, Dr Fan Gang, Director China National Economic Research Institute & Chairman China Reform Foundation, Sunil Tuli, President APTRA, and Erik JuulMortensen, TFWA President.

Four workshops took place during the day, attended by a total of more than 1,000 delegates, with speakers from all sides of the industry taking part. They covered Perfect 122

The Singapore Swing Party was hosted at The Alkaff Mansion * Photo courtesy of TFWA

Journey (improving the retail offer), Perfect Pitch (the importance of partnerships), e-Perfect (the growing role of digital and social media) and Perfection Personified (customer understanding and service).

The closing plenary saw Counter Intelligence Retail Managing Director Garry Stasiulevicuis and KPMG Principal Business Development Anson Bailey discuss the findings of research on the non-shopper and Chinese luxury consumers.

The change of venue did not affect the social networking program, which once again kicked off with a sold-out golf tournament in Sentosa sponsored by InterParfums. Six hundred and thirty-three people attended the Welcoming Cocktail in Raffles, 398 chilled out at the Mandarin Oriental poolside and 501 attended the Singapore Swing

Party at The Alkaff Mansion, despite the persistent rain.

398 chilled out at the Mandarin Oriental poolside * Photo courtesy of TFWA

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Puts skin irritation on ice.

Worldâ&#x20AC;&#x2122;s 1st shaver with active

cooling technology.

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

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New & Notable FASHION ACCESSORIES Breo Energy

Travalo Skyline

Company: Breo Description: Breo watches are just the thing for those looking for something a little different. Comfort is at the top of the Breo agenda and sport has provided the inspiration for many Breo watch designs. The new Breo Energy watch is high in tourmaline and is waterproof up to 5ATM

Company: Travalo Description: The Travalo Skyline is an evolution of the classic Travalo refillable travel perfume atomiser.

The new rectangular luxury atomiser has the amazing refilling system with a crisp and modern appearance.The Travalo Skyline refillable perfume container has the ingenious Genie-S patented refilling system. Available in three colours of Gold, Rose and Silver

Candy Lifestyle Collection Company: Furla Description: The Candy Lifestyle collection is expanding with new shapes including a Mini Cross Body, a trendy Backpack and a Minibag pouch with shoulder strap.

Material combinations include Gomma Gel with Saffiano Multirighe, Nappa Borchiata, vit st Siberian and Lucertolina

LIQUOR Pic’d Company: Pillitteri Estates Winery Description: Pic'd is a VQA White Wine blend of Riesling and Gewurztraminer. It is food friendly and a perfect summer sipper. Every several months, the brand will select roughly 300 pictures that the public has sent in via Twitter and Facebook and place them on the bottle’s label

Sencha Green Tea Mints Company: Sencha Naturals Description: Fight Dragon Breath with these Green Tea Leaf Mints that are naturally sugar free, gluten free, kosher, vegan and made in a solar powered facility in Los Angeles, CA. Three mints equals one cup of Green tea antioxidants

CONFECTIONERY Hippie Chic Leather Watch

Torie & Howard Organic Hard Candies

Company: Breo Description: A real leather bracelet with an antique-look watch face in various styles is adorned with metal charms and decorations

Company: Torie & Howard, ALFA Brands exclusive duty free agent Description: Torie & Howard’s hard candy is made with all organic, natural ingredients that taste of fresh fruit and are only 12 calories per candy

Cashmere/Merino/Silk mix wraps and scarves Company: Morgan & Oates Description: Animal prints being introduced are leopard, zebra, giraffe, tiger and snakeskin, while other new designs on show will include polka dots, paisley prints, web patterns and florals

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Christmas Tree Tin Company: Hawaiian Host Description: New Holiday Christmas Tree Tin includes 12 individually wrapped AlohaMacs, six milk chocolate covered macadamias and six dark covered chocolate macadamias

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New & Notable TOBACCO

TRAVEL ACCESSORIES

Vintage Toro Tubo Company: Rocky Patel Cigars Description: The Vintage Series is made up of premium quality aged tobaccos. Hondurangrown broadleaf and Ecuadorian Sumatra tobaccos are used to create the Vintage Series

Worldwide Adaptor Company: Travel Blue Description: A quality Worldwide Adaptor enabling connection in over 150 countries. Easy to use and child safe, this adaptor has a two year guarantee

Botanical D-Tox

FRAGRANCES & SKINCARE White Caviar Illuminating Hand Cream SPF 15 Company: La Prairie Description: Created to fight daily damage from the elements and protect against future discoloration

Company: Sisley Paris Description: An intensive onemonth treatment, Botanical D-Tox acts during the night, the best time for cellular regeneration, to fend off signs of fatigue. Highly concentrated in plant extracts, it acts globally on the 3 main levels of the skin detoxifying chain

Zippo Feelzone for Her Company: Mavive Spa Description: Feelzone offers a new design for women inspired by the latest trends in technology

Tous Man Intense Company: Perfumes y Dise単o Description: Tous Man Intense is a new fragrance that blends notes of herbs, flowers and woods. Top notes include neroli, petitgrain from Tunisia and sage essence. Lavender, Tunisian orange blossom and sage absolute are placed in the composition's core. The base is a classic fougere, made from tonka, moss, amber and musk

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So Intense Mascara Company: Sisley Paris Description: Volumeboosting and lashfortifying mascara using new Sisley technology to enhance length and thickness of bare lashes in just four weeks

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Creating New Paths

12th - 15th June PUNTA CANA Cover ASUTIL 2013 SINGLES.indd 3

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