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 Letter from the Editor

Sweet music

to our ears C

onfectionery, that’s entertainment. With numerous innovations around destination gifting, premium packaging, displays and sampling, the confectionery world in travel retail encapsulates retailtainment at its best. However, as we can see in this digital issue, many challenges lie ahead – not least the complex subject of sustainability. We speak to the multinational giants Mars and Mondelez, among others, for their take on an issue that’s so vital to today’s picky millennial shoppers. They’re launching billion-dollar programs and schemes with measurable goals, but there’s still a long way to go before their ambitions are reached in the areas of more sustainable and efficient farming, alleviating poverty, and supporting the hard-pressed communities in the major cocoa-producing countries. Labeling on packaging is also a confectionery industry bugbear. Enter the Duty Free World Council (DFWC) and the European Travel Retail Confederation (ETRC), which are promoting their own specially developed digital solution to this growing – and urgent – issue. A number of countries are clamping down on certain ingredients in an effort to tackle the obesity problem, for example, resulting in a packaging headache for manufacturers in travel retail. Whose jurisdiction do they follow? The DFWC and ETRC are proactively lobbying politicians and governments at the highest level on this matter. Our interviews with sugar confectionery makers such as Perfetti van Melle, Ricola, Haribo and Cloetta reveal that lack of in-store space and therefore visibility for this popular sub-sector remains a key issue. How can operators convert browsers into shoppers if their products aren’t displayed to their full potential? Generation Research’s preliminary FY 2018 figure of +9.3% global growth for duty free and travel retail sales is certainly sweet music to the ears of category stakeholders for whom the pathway to purchase is a pick ‘n’ mixed bag of opportunity meets innovation. “With brands continuing to innovate with new flavors and promotions, and eye-catching packaging to attract new and existing customers, the long-term outlook for the category looks very positive indeed,” is TFWA President Alain Maingreaud’s confident prediction. In its latest Confectionery Shoppers Insights, Swiss research firm m1nd-set homed in on the nuances of nationality-based consumer behavior and category opportunity. Asia Pacific’s active travelers lead the way for conversion, with 80% of confectionery browsers making a purchase. Passengers from the Middle East & Africa are just behind at 71%, while US and European travelers are harder to convince at 50% and 52%, respectively. According to Peter Mohn, m1nd-set Founder and CEO, in-store choices have gained significant momentum and represent a significant trend that deserves special attention, as he explains: “This represents huge potential to attract those undecided shoppers with in-store elements such as digital screens, tasting and sampling, brand and retail activations, staff interaction, gondolas, etc. It is especially relevant for confectionery shoppers from the Middle East & Africa who value experiential retail as the primary driver to purchase.” I end this note with the upbeat remarks of Maud Geerbex, Corporate Affairs Director at Mars International Travel Retail, who says: “There’s also a bright side to the story – it’s a fun category that can drive excitement on the shop floor. These [challenging] issues are important, but there’s a lot of fun to be had. Everyone loves chocolate and we shouldn’t forget that!” Kindest Regards,

JUNE 2019 · SPECIAL ISSUE Global Marketing Company Ltd., 26 Pearl Street, Mississuaga, Ontario L5M 1X2 Canada. It is distributed to duty free operators and distributors in the following countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE, Yemen, Algeria, Azerbaijan, Benin, Cameroon, Cape Verde, Djibouti, Egypt, Ethiopia, Gabon, Ghana, Guinea, Iran, Ivory Coast, Jordan, Kenya, Lebanon, Madagascar, Malawi, Mali, Mauritius, Morocco, Mozambique, Niger, Nigeria, Namibia, Pakistan, Reunion, Senegal, Seychelles, South Africa, Sudan, Syria, Tanzania, Togo, Tunisia, Turkey, Turkmenistan, Uzbekistan and Zaire, as well as to duty free suppliers worldwide.

AMERICAS, GULF-AFRICA, ASIA DUTY FREE & TRAVEL RETAILING 26 Pearl Street Mississauga, Ontario L5M 1X2 Canada Tel: 1 905 821 3344; Fax: 1 905 821 2777 www.dutyfreemag.com PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca EDITORIAL DEPARTMENT EDITOR-IN-CHIEF Hibah Noor hibah@dutyfreemagazine.ca DEPUTY EDITOR Jas Ryat jas@dutyfreemagazine.ca SENIOR EDITOR Mary Jane Pittilla maryjanepittilla@hotmail.com SENIOR WRITER Rebecca Byrne rebeccabyrne10@yahoo.com.sg ASIA CORRESPONDENT Elena Owyong owyongelena@gmail.com AMERICAS CORRESPONDENT Ronnie Lovler ronnie@dutyfreemagazine.ca ART DIRECTOR Jessica Hearn jessica@globalmarketingcom.ca CONTRIBUTORS Claire Malcolm

Hibah Noor Editor-in-Chief hibah@dutyfreemagazine.ca 6 JUNE 2019

CIRCULATION & SUBSCRIPTION MANAGER accounts@globalmarketingcom.ca

Profile for Global Marketing Company Ltd

Duty Free Magazine's Confectionery & Fine Food Special Issue 2019  

Duty Free Magazine's Confectionery & Fine Food Special Issue 2019