Diageo GTME
Liquor Report: Standout Spirits
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Just in time for TFWA AP in Singapore, Diageo releases two new expression in the iconic Johnnie Walker range of blended Scotch whiskies BY RYAN WHITE
A new limited edition release of the world’s leading blended Scotch whisky will be released exclusively in global travel retail: Johnnie Walker Blue Label – The Casks Edition. Crafted from some of Diageo’s rarest casks, each noted for their intensity and depth of flavor, this special edition, bottled at 55.8% ABV, has intensified wood flavors and “is a tribute to the perfect harmony of the oak casks used in the blending of Johnnie Walker Blue Label,” says Diageo. Johnnie Walker Master Blender Jim Beveridge says: “This limited edition is a chance to enjoy the remarkable experience of Johnnie Walker Blue Label in a new way. Only one in ten thousand of our casks have sufficient character for Johnnie Walker Blue Label and in creating this special edition we really wanted to showcase the incredible flavors that come from the casks themselves. The flavors drawn from these carefully selected casks have intensified to produce a robust and powerfully fla-
Diageo’s second new addition to the Johnnie Walker range is Johnnie Walker Platinum Label. Inspired by the Walker family’s historic tradition of creating exclusive “private blends” for favored customers, directors of the company and select private gatherings, Johnnie Walker Platinum Label has been crafted by Jim Beveridge “for today’s increasingly sophisticated global consumers—the ‘new whisky set’—to enjoy at their own intimate gatherings,” says Diageo. It is a delicate, smoky blend that embodies the characteristic full flavors of the Johnnie Walker range of blended Scotch whiskies. Jim Beveridge explains: “Like the rare and precious metal after which it is named, Johnnie Walker Platinum Label is rich and refined, delivering the distinctive depth and complexity that is synonymous with Johnnie Walker. In fact, I believe that if John Walker were to create a whisky today, Johnnie Walker Platinum Label would be the result. It is a bold, intense and smooth blend, crafted from some of our most treasured whiskies, for the evolving tastes of 92
iddle Eastern travelers are known for their love of whisky, and International Beverage Holdings (Interbev) is breathing new life into some promising brands with package redesigns and special editions that were introduced at this year’s TFWA WE in Cannes in September. The standout Old Pulteney single malt whisky and Hankey Bannister blended Scotch whisky have been boldly redesigned. In addition, a special two-pack of Hankey Bannister Original and 12 Year Old was recently introduced and has been performing well in the Middle East. Old Pulteney, which is one of the fastest growing malts in the industry, has revealed a vibrant new design with a bolder logo to drive a premium message and improve retail
vored blended Scotch whisky that has rich woody notes, deep smoke, traces of spice and a long, lingering oak finish.” Produced in limited quantities and blended in small batches, the bold blend is a contemporary expression of the powerful 19th century character pioneered by the Walker family, created for true connoisseurs who are seeking new depths of flavor. Steve White, Marketing Director, Diageo GTME, said: “Johnnie Walker Blue Label – The Casks Edition is a Scotch whisky with a remarkably powerful flavor, the result of almost two centuries of unbroken blending expertise. This limited edition release is a rare opportunity to enjoy a bold amplification of the powerful cask flavors contained in Johnnie Walker Blue Label—it is rarity redefined.”
today’s global whisky consumer.” “Johnnie Walker Platinum Label is the richest, most precious crafted 18 year old blended Scotch whisky John Walker & Sons has ever created—its price point reflects this,” says Steve White. “We believe that consumers will quickly develop a real affinity for Johnnie Walker Platinum Label and that it will offer real value for our trade partners. “It is a thoroughly modern interpretation of the ‘private blends’ that our company has produced from the very beginning and is a contemporary blended Scotch whisky that is perfect for exclusive occasions,” he added. Johnnie Walker Platinum Label is available now in 75cl size in limited Asian Duty Free locations with a global Duty Free launch of the 1L variant from June 2012. Priced at an RRP of USD $100 for 1 liter in duty free, Johnnie Walker Platinum Label is a premium whisky that will sit towards the top end of the Johnnie Walker range.
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onsumer preferences aren’t static, and thankfully for globetrotters the travel retail industry is especially good at staying ahead of trends and treating duty free shoppers to new and exciting experiences. Gulf-Africa Duty Free recently spoke with International Beverage Holdings, Bacardi Global Travel Retail and Brown-Forman about how they’re going about pleasing discerning spirits lovers in the Middle East. Among the latest developments from these suppliers are new liveries for two iconic whisky brands, the introduction of a new spiced rum with a big heart and a collaboration between two American legends.
iageo recently announced that two new expressions of its iconic blended Scotch whisky Johnnie Walker will be available in travel retail. The first—a global travel retail exclusive—gives one of the brand’s legendary expressions a new woody, smoky twist, while the second—inspired by the Walker family tradition of creating exclusive “private” blends—offers consumers a strong, sweet and elegant spirit crafted in traditional Speyside style.
display while at the same time retaining Old Pulteney’s distinctive bottle shape and “Maritime Malt” positioning. “Old Pulteney is distilled in Wick, Scotland,” says James Bateman, Global Travel Retail Manager at Interbev. “In fact, there are no other Scotch whisky distilleries there, so we’ve communicated Old Pulteney’s unique origins on the bottle. We’ve also taken the boat and put it to the back so that it can be seen through the front of the bottle. These changes, combined with the redesign of the words ‘Old Pulteney,’ have resulted in much more shelf standout.” Hankey Bannister blended Scotch whisky has unveiled a striking, super-premium presentation pack of its 21 year old “Partner’s Reserve” that features an elegant black box, proprietary bottle and gold embossed label. The new limited edition Hankey Bannister 25 year old “Partnership Blend” was also previewed in Cannes. It comes beautifully encased in a Lochinver decanter and luxurious bordeaux-red presentation box. This new expression has been specially selected by Master Blender Stuart Harvey using the very finest non-peated single malts, resulting in a distinctively delicate and smooth flavor. Interbev is banking on increased traction in Asia duty free with the above super-premium Hankey Bannister offerings. Bateman told Gulf-Africa Duty Free that in the Middle East,
Hankey Bannister Original and 12 Year Old expressions are very popular, particularly with Indian travelers. “For the Gulf we’ve introduced a gift pack featuring two one-liter bottles—Hankey Bannister Original and 12 Year Old,” Bateman explains. “It offers a savings to shoppers and has already been launched in airports in Dubai and Sharjah to great effect. “Duty free is a great channel for us to generate awareness of these brands,” Bateman continues. “Hankey Bannister is a very regional brand that is popular in India. As such, it’s also popular with Indians living and working in Dubai, which helps us develop in the Middle East.” Old Pulteney has revealed a vibrant new design with a bolder logo to drive a premium message and improve retail display
Pernod Ricard Asia Duty Free
Asian travelers are known for having a keen eye for luxury offerings and brown spirits, and Pernod Ricard caters to both tastes with a wide range of new releases BY RYAN WHITE sia Duty Free recently sat down with John O’Sullivan, Marketing Director at Pernod Ricard Asia Duty Free, to discuss the numerous new launches in the region that coincide with the TFWA AP exhibition in Singapore. We also took the opportunity to ask him about business in general in the region and get an update on last year’s big news during the exhibition, the Martell Experience Boutique.
Adding excitement to duty free Absolut Watkins, a limited edition exclusive to travel retail, was launched to the Asian market at Changi Airport in February 2011 and was then rolled out in Hong Kong, Thailand, Malaysia and Korea throughout March. Absolut Watkins offers the distinct qualities of freshly ground coffee with notes of
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almond, caramel and warm chili. The detailed image on the limited edition bottle is created by celebrated Swedish fashion illustrator and artist Liselotte Watkins, famous for her designs for fashion brands such as Miu Miu, Anna Sui and Barney’s, as well as for magazines such as Vogue and The New Yorker. In addition, Pernod Ricard Travel Retail launched its limited edition Chivas Regal 18 Year Old by Christian Lacroix in key Asian airports in March to showcase the new masterpiece and bring to life the brand values of luxury, craftsmanship and excellence. Only 3,000 bottles of this striking limited edition design were produced, of which a select number will be sold in Asia duty free. The activity kicked off at Hong Kong International Airport and Singapore Changi Airport where elaborate displays were positioned in high traffic locations to generate impact. The product was rolled out in April to Incheon International Airport and Kuala Lumpur International Airport. Also early this year, Royal Salute 62 Gun Salute was rolled out in Asia at Hong Kong International Airport, Taiwan Taoyuan Airport, Singapore Changi Airport and Korea Incheon Airport. The product was positioned on premium display units in the first class and business lounges of Korean Air. “Innovation is a key driver for Pernod Ricard and we have had some very successful recent launches,” says O’Sullivan. “As many have come to expect, Absolut has led the way with Glimmer and the travel retail exclusive Absolut Watkins. “The Chivas 18 Year Old by Christian Lacroix, the latest release in the Chivas 18 designer series, was a huge success,” he continues. “The product is very limited and will only be in store for a short time before it is sold out. Probably the most high profile launch we had this year was for Royal Salute 62 Gun Salute, which was supported with luxurious
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help us to tell the brand story and increase interest.” New launches are an important vehicle for creating excitement in the duty free channel and Pernod Ricard has released a number of new products in the past 12 months. Absolut has always been an active brand and its latest release was Absolut Mode, the fashion-themed bottling. Chivas is another brand that is regularly innovating and this is particularly evident with the Chivas 18 series of designer bottle releases. The latest was based on the work of British fashion designer Vivienne Westwood. Previous releases have been developed with fashion designers Christian Lacroix and Alexander McQueen. Other recent launches from Pernod Ricard include the Master Distiller’s Reserve expression of The Glenlivet, exclusive to travel retail, which was particularly visible recently in Taiwan and Hong Kong. And cognac brand Martell has recently benefited from the Centenary Edition of Martell Cordon Bleu with special packaging and, more recently, Chanteloup Perspective in the Extra category, named after the home of Martell. Significantly, the travel retail team collaborated with the domestic side to launch Glenburgie Edition, a 17-year-old limited edition Ballantine’s celebrating one of four signature Ballantine’s distilleries. The launch was initially focused on Korea, and response was “outstanding,” O’Sullivan says, with a high proportion of the travel retail allocation flying off the shelves in the first days. O’Sullivan also notes the recent launch of a single Martell eau de vie in the two dedicated Martell Experience boutique airport shops in Hong Kong and Kuala Lumpur. Titled “Millésimes,” the very exclusive launch came out in December.
ASIA DUTY FREE & TRAVEL RETAILING TFWA AP MAY 2012
Whisky Report
The “Dewar’s World of Discovery” promotion
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he Middle East continues to be an important market for Dewar's Scotch Whisky,” says Vinay Golikeri, Marketing Director for the Bacardi Global Travel Retail Division. The growth in the Middle East reflects a similar experience in Asia. Bacardi Global Travel Retail has employed strategic brand promotions to strengthen relationships with existing Dewar’s customers and create new ones, in the process helping to foster brand loyalty, Golikeri says. In June, Bacardi Global Travel Retail announced a partnership between Dewar’s and the internationally renowned National Geographic Society. The new promotion, called “Dewar’s World of Discovery,” gives entrants in a prize draw the chance to win six travel experiences created by National Geographic Expeditions: Costa Rica; a New York photography trip; an insider’s tour of Italy; the Amazon; New Zealand; and the home of Dewar’s, the Highlands of Scotland. Depending on the market, entry may require the purchase of Dewar’s 12 Years Old. Part of Bacardi Global Travel Retail’s strategy to grow Dewar’s in the Middle East saw the launch last year of a training program with Dubai Duty Free, Middle East Airlines and Beirut Duty Free. Conducted once or twice
The Dewar’s brand has seen great success in the Middle East, largely as a result of creative promotional activity from brandowner Bacardi
a year with these organizations, the sessions are hosted by the Dewar’s Global Ambassador and consist of a tutorial on Scotch whisky production as well as a Dewar’s comparison tasting. “Training provides Dewar’s with a unique opportunity to create brand advocates in each of its core markets,” Golikeri says. “As the Scotch market continues to grow in the Middle East, we want to ensure that our key partners are equipped with the tools and information they need to help drive sales in their outlets.” “Of our brands there is one standout product across the Gulf and Africa as a wider region: Hankey Bannister Blended Scotch whisky,” says James Bateman, Global Travel Retail Manager for International Beverage Holdings (Interbev). Bateman’s focus right now is on improving the product’s distribution and visual displays. He says that premium expressions will be introduced, and the process is already underway with the launch this year of a new Hankey Bannister expression, 12 Years Old Regency. This product constitutes an entry into the premium blended Scotch category and retails for about US$25 for 100cl. Bateman says that Interbev will aim to launch the Hankey Bannister 21 YO and 25 YO super-deluxe blends at Cannes this year. New twin packs (2 X 100cl) specifically for travel retail will also be premiered.
The majority of duty free consumers of Hankey Bannister in the Gulf are residents originally from the Indian subcontinent, Bateman says. In terms of the travel retail trade, the main buyers in the Gulf are Dubai Duty Free, Dufry at Sharjah and Aer Rianta International’s regional network. Africa is a complex picture, but Bateman says Gebr Heinemann, Dufry and Flemingo are important network partners.“Egyptian airports are very important, and will be again once the tourists return in confidence. Big Five Duty Free in South Africa and Mauritius Duty Free are very important retailers of our products, and the expansion of Flemingo Duty Free has made it a real retail force on the continent.” The new travel retail display for Hankey Bannister In addition to Hankey Bannister, which has been available in the Gulf and parts of Africa for many years, in the last few years single malt Scotch has been developing a presence with retailers that want to build the category, for example Qatar Duty Free and Muscat Duty Free. “The development potential for our portfolio in Sub-Saharan Africa is also of great interest,” Bateman adds. 2011 so far has been very good, Bateman says. At press time, Interbev received some very welcome news that certainly won’t hurt its global presence. The company carried off no fewer than 16 awards at the 2011
GULF-AFRICA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
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South Africa is a standout market for Jameson Irish Whiskey
International Wine & Spirits Competition. Hankey Bannister was well represented with four awards, including a Gold for Hankey Bannister 40 YO. The brands represented by the Edrington Group are well liked in the Middle East and North Africa, says Keith Bonnington, Area Director, Africa and Middle East. However, the leading brand is Johnnie Walker, although Bonnington says the evidence points to future growth in the deluxe range—Black Label and above. “Many of the major Scotch brands— including Johnnie Walker and Chivas, which together hold around 60% Scotch volume share—suffered significant volume losses in 2009 and into 2010,” he says. Other categories, such as vodka and cognac, also suffered. “The Edrington Group portfolio on the other hand performed very well with The Famous Grouse and The Macallan dining at the top table in their respective categories.” The market has been buoyed by a more stable economic outlook after a tough 2010, Bonnington believes. Generally, travelers are returning, and one indication Bonnington takes some comfort in is the recent announcement that Dubai Duty Free has exceeded last year’s growth by 16%. Standard Scotch remains the volume leader, driven by its traditional blue-collar customer base, largely from the Indian subcontinent. A decline in this category over the past year could be a result of the sudden and dramatic shutdown of construction in the region following the global slump, Bonnington believes. The other backbone demographic shopping at the super-premium level is likely to be Asian or Russian and favors destinations such as Dubai and Abu Dhabi for business and leisure travel. “Our portfolio has shown stunning growth in recent years,” Bonnington says. The Famous Grouse family, which now includes Black Grouse and Snow Grouse, is number three in terms of total blended Scotch volumes, with a 6.5% market share. The Macallan, meanwhile, commands fully 15% of the malt Scotch category. Bonnington 80
Editorial Highlights: • Feature Report on Asian retailers and top selling whiskies • Trend Report: An in-depth overview of the year ahead in the whisky category • Whisky News: What’s new and noteworthy • Tasting Notes: All the seasons must haves from some of the top whisky brands • Company Profiles: Highlighting the industry’s heavy hitters
S PECIAL R EPOR T: WH ISKY
ernod Ricard Asia Duty Free (PRADF) is a leader in the Asian travel retail and duty free market. While it covers the full range of channels in the duty free market, airports are definitely the main focus of activity, says John O’Sullivan, Marketing Director, Pernod Ricard Asia Duty Free. As air travel is especially strong in Asia these days—and growing— 2011 was a good year, O’Sullivan says, with the business rebounding quite well from the lows of the 2008-2009 economic crisis. According to the research that O’Sullivan and his team have access to, the Asia travel retail market is actually growing at a rate that puts it ahead of global trends in terms of passenger numbers, but also by volume and in terms of the value of the travel retail business overall. Asia presents quite a complex and varied mix when it comes to the combination of nationality profiles and preferences. It’s even more complicated when you factor in the amount of intraregional travel done by passengers of different nationalities. Koreans favor aged whisky, which puts Pernod Ricard in the sweet spot, with premium brands like Ballantine’s, Chivas Regal and Royal Salute. The big emerging market in Asia is of course China, and with Chinese passengers traveling more and more throughout the region, the Chinese buyer’s preference for premium brands represents a real opportunity for Asian travel retail. Here, O’Sullivan says, whisky and cognac are among the keys to success. In addition to the whiskies mentioned earlier, the Martell cognac marque in particular is a leading brand for the Chinese consumer. Shopping is an important part of the travel experience for Chinese travelers, O’Sullivan says. “They’re brand-conscious—a luxury consumer category is developing. Our presence is strong and our brands are well recognized, so we’re in a good position. It’s a matter of making sure that when Chinese passengers travel elsewhere in Asia, we engage them at strategic airports like Hong Kong, Macau, Singapore and so on.” Promotions play a double role. Of course they bring in added sales, but they also play an important part in boosting brand profile. “We work both levels with special packaging, limited editions, new launches, exclusive products,” O’Sullivan says. “All of these
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Promotions, messaging and experience keep these whisky leaders on top in a rising market ANDREW BROOKS
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The growing luxury market in Asia means there’s more growth ahead for Pernod Ricard in the region BY ANDREW BROOKS
ASIA DUTY FREE & TRAVEL RETAILING TFWA AP MAY 2011
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At this time last year, the Martell Experience Boutique concept at HKIA and Kuala Lumpur—designed to showcase Martell’s unique combination of traditional, cultural and modern attributes—was making headlines for its high-end, educational offering. O’Sullivan tells Asia Duty Free that over the last year Pernod Ricard’s expectations have been exceeded, both in terms of sales and making quality connections with travelers. “Selling was never a primary objective for the Martell Experience Boutique as this is the role of main duty free shops in the airports,” he explains. “Having said that, we have had some good sales, mainly to Chinese and Malaysian travelers. More importantly from a sales perspective our overall performance in Hong Kong and Kuala Lumpur International Airports has been very positive since the boutiques opened. The growth has been driven by our Prestige range, which consists of Martell Cordon Bleu, Martell XO, Martell Creation and L’Or de Jean Martell.” Given the popularity of both brown spirits and luxury offerings in Asia, Pernod Ricard is certainly in a good position going into the second half of the year with brands such as Chivas Regal, Royal Salute, Ballantine’s, The Glenlivet, Jameson and Martell. O’Sullivan asserts that outside this subcategory, vodka continues to show growth on a smaller scale, and Pernod couldn’t be happier with the innovations coming from the team at The Absolut Company. “All of these brands appeal to Asian customers because they are leading brands, if not the leading brands, in the categories,” O’Sullivan concludes. “They are also all premium brands, most of which fall into the super premium and above categories, which is important to the Asian customer.”
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displays in key airports.”
Luxury leanings
SPIRIT
The Whisky Supplement is designed as the most comprehensive whisky source for the travel retail industry in Asia Pacific. With indepth reports on the biggest brands and up-and-comers alike, as well as unparalleled coverage on innovation and trends, there is no doubt that the Whisky Supplement will provide both buyers and suppliers with an inside perspective on the iconic spirit.
ASIA DUTY FREE & TRAVEL RETAILING TFWA AP MAY 2012
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SUCCESSFUL New for 2013, presents an exclusive Whisky Supplement that will have bonus distribution at the 2013 TFWA WE exhibition in Cannes. Whisky is the spirit to watch in duty free given its wide popularity with high-spending travelers like the Chinese and the emerging Indian middle class.
The new presentation of Hankey Bannister 21 year old “Partner’s Reserve” features an elegant black box, proprietary bottle and gold embossed label
Company News: Pernod Ricard
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notes the brand’s huge franchise in Asia, Russia and the US. “In the next few years I believe consumers will see some very exciting developments across our malt whisky range,” Bonnington says. In particular, The Macallan will see the introduction of new super-premium concepts. At Cannes, Edrington Group will focus heavily on its super premium offerings, with the presentation of the latest Macallan in Lalique decanter and attention on reinforcing the travel retail exclusive 1824 range, Bonnington says. “We also have some interesting developments in The Famous Grouse,” he says. “And Cutty Sark is waiting in the wings.” Bonnington considers the latter a “sleeping giant,” destined to become a key player once again. “The key message from us is that 2010 was a ‘signature’ year for Jameson,” says Donagh McHenry, Regional Director Asia Pacific, Travel Retail and Africa/ME. “We’re up 16% in the calendar year, and we broke the 3 million case threshold. That’s overall, but there’s the same momentum in duty free— we’re up 14% there.” Within the Gulf-Africa catchment area, there are some markets that stand out for Jameson. South Africa is one such, McHenry says, with a high recognition level for the brand: sales into the domestic market totaled over 180,000 cases in 2010. On the duty free side, McHenry commends the ranging and distribution work done on Jameson, from Classic to Reserve, by Big Five Duty Free in Johannesburg and Cape Town. Jameson Signature Reserve, exclusive to travel retail, is also selling well in Big Five outlets. The consumer streams in South Africa are threefold: South Africans, international travelers and those traveling within
Africa. While South Africa is Jameson’s standard bearer in Africa’s southern cone, McHenry sees signs that Angola and Mozambique are approaching critical mass in the region too. In the Middle East the strongest market is Israel with domestic strength reflected in healthy duty free presence and sales. Lebanon is now benefiting from initial marketing and promotions. Other emerging markets recently showing potential for Jameson in the region are Egypt and Morocco. No one will be too surprised to hear that Dubai is the key Gulf market, posting a muscular 24% growth in 2010—a trend driven by international travelers who play a significant role in Jameson's current global momentum. On Jameson promotional activity, “we’ll do new global promotions every 18 to 24 months or so, as a rule,” McHenry says, highlighting the recent “Experience Our World” promotion, which has run globally from 2010 through mid 2011. On special editions for the Travel Retail channel, McHenry points to the Jameson St. Patrick’s Day limited edition bottle that was introduced in Europe this spring as a notable success. For Cannes, Jameson will be focusing on its successes in 2010 and its ongoing promotions, including some new promotional concepts and special editions that will hit in 2012. “We’re still working out the details,” McHenry says, “but we’ll have a bit more detail on those plans at Cannes.”
The core offerings in The Famous Grouse range (left) and The Macallan 1824
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Hibah Noor
Ryan White
Kim Carrera
Melissa Silva
Editor-In-Chief
Concessions, Liquor & Tobacco Editor
Advertising & Marketing Manager
Associate Editor
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