Global Travel Retail MEADFA November 2024 by Paramount Publishing Ltd.

In Memoriam:

Colm McLoughlin, travel retail leader, role model and true gentleman

It is with great sorrow that we mark the passing of one of the travel industry’s greatest leaders.

Colm McLoughlin, the former Dubai Duty Free Executive Vice Chairman and CEO and a man recognized throughout the industry for his strength, his statesmanship and his down to earth approach, retired from the industry in May this year. He passed away October 30.

Colm was known and recognized as the force behind Dubai Duty Free’s path to become a world leader in the travel retail industry. He was also known as a true gentleman, a fierce supporter of those not just around him but within the wider industry. An Irish man of his word, a visionary, a hands-on leader.

Global Travel Retail Magazine Editor in Chief Hibah Noor writes, “It is with great sadness that I struggle to come to terms with the news of Colm’s passing. So many special memories with him over the years.

“I met Colm and his wife Breeda in

Jordan when I was on a business trip with my father, Aijaz Khan. I was just 18 at the time and not yet involved in the travel retail industry. Colm and Breeda were with us on a tour of Petra. They chatted, both very down to earth and welcoming, and I was quite shocked when my father pointed out that Colm – the man who had somehow taken me under his wing – was the Dubai Duty Free CEO.

“As I started to work within the industry Colm was always there for me; supportive, encouraging, he would always make time to see me. He was a kind soul, someone that never gave up, and his passing is a massive loss for me personally and for the industry.”

GTR Magazine Founder Aijaz Khan adds, “The news of Colm’s death comes as a great shock, followed by profound sadness. To say that this outstanding man, this gentleman, has supported and assisted me over the years, would be an understatement. I will forever be grateful for having known him, for having

worked with him within the industry and he will be remembered as the one and only Colm McLoughlin.”

Over his 41-year tenure, Colm, as a pivotal figure in the global travel retail industry, grew Dubai Duty Free into the world’s largest single airport retailer, with sales rising from US$20 million in 1984 to well over US$2 billion last year.

Dubai Duty Free is the recipient of hundreds of awards, many of which have been attributed directory to Colm. The ‘Most Distinguished Employee Award’ presented in 2000 by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai and ‘Irish Presidential Distinguished Service Award’ presented in 2014 by President Michael D. Higgins are just two of many.

This special man will be sorely missed.

Colm is survived by his wife, Breeda and their family. Our sympathy goes to them all.

Fond memories with the one and only Colm McLoughlin

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Building the future together

As we gather for the 2024 MEADFA Conference in Abu Dhabi, there’s a renewed sense of optimism in the air. This year’s event arrives at a pivotal time for the travel retail industry in the Middle East and Africa as we move beyond recovery, to growth. The discussions here will shape how we meet the challenges and seize the opportunities of this dynamic region.

In this issue, we delve into the strategies leading companies are implementing to stay ahead. Dubai Duty Free continues to make significant strides, focusing on enhancing customer experience while expanding its retail footprint, with Phase 1 of its Terminal 3 Arrivals shop now open.

Lagardère Travel Retail’s tailored mix of retail and dining at Abu Dhabi’s Zayed International exemplifies how companies are adapting to evolving passenger needs. The company’s continued focus on Africa, with plans for expansion in 2025, highlights the region’s growing importance. And Heinemann has secured important partnerships in Saudi Arabia, positioning itself for growth in the region.

Sustainability remains a core focus, with brands like Sterling Perfumes and ANDS addressing environmental concerns while innovating in their product categories. Davidoff has reduced its use of hard-to-recycle materials, presenting its Year of the Snake collection in eco-friendly wooden packaging. Morocco’s International Duty Free Shops has adopted energy-efficient technologies and waste reduction initiatives across its expanding retail network. Additionally, Lagardère Travel Retail has implemented locally sourced materials and energy-efficient designs within its airport stores to reduce environmental impact.

We also look at how companies are pushing the boundaries of innovation. Qatar Duty Free’s blend of cultural immersion and luxury experiences continues to redefine airport retail, and its soon-to-launch, revolutionary data platform will give brands unprecedented access to real-time customer data, transforming the way they engage with travelers. Diageo is driving innovation with its focus on experiential retail and premiumization, including the launch of Johnnie Walker Black Ruby to attract a new generation of whisky drinkers. Meanwhile, L’Oréal Travel Retail is spearheading beauty tech advancement, with personalized skincare solutions and digital tools offering travelers unique, high-tech beauty experiences.

As you read about all this and more, you will be reminded of the resilience and creativity of our industry, an industry with boundless potential. We’re excited to share these latest developments with you, and we look forward to joining you on the journey into an exciting future.

Kindest regards,

HIBAH NOOR Editor-in-Chief hibah@gtrmag.com

Global Travel Retail Magazine (ISSN 0962-0699) is published seven times a year by Paramount Publishing Company Inc. The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or the editor. November 2024, Vol 36. No. 7. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. Paramount Publishing Company Inc.

GLOBAL TRAVEL RETAIL MAGAZINE Tel: 1 905 821 3344 www.gtrmag.com

PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca

EDITORIAL DEPARTMENT

EDITOR-IN-CHIEF Hibah Noor hibah@gtrmag.com

DEPUTY EDITOR Laura Shirk laura@gtrmag.com

SENIOR EDITOR Wendy Morley wendy@gtrmag.com

SENIOR WRITER Alison Farrington alison@gtrmag.com

ASIA CORRESPONDENT Karuna Tuli karuna.tuli@gmail.com

ART DIRECTOR Jessica Hearn jessica@globalmarketingcom.ca

ADVISORY BOARD Gary Leong

CIRCULATION & SUBSCRIPTION MANAGER accounts@globalmarketingcom.ca

WHAT’S INSIDE

Features

RETAILERS

22 Dual focus

Dubai Duty Free’s Managing Director, Ramesh Cidambi, discusses strategies to navigate softer trading conditions while preparing for long-term expansion and relocation

26 Emerging markets flex

With its focus on growth in the Middle East and openings planned for Africa, Lagardère Travel Retail is looking to prove how its tailored blend of retail and F&B can be flexed to fit local market needs. GTR Magazine talks to Vincent Romet, CEO and Regional COO Middle East & Africa

30 A big win

Leading Germany-based travel retailer Gebr. Heinemann is focusing on targeted growth in the Middle East and Africa; recent acquisitions demonstrate the region’s potential, according to Bernard Schlafstein, Director Sales Middle East and Africa

36 Exceeding expectations

ARI’s new flagship store at Zayed International Airport is blending Emirati heritage with cutting-edge technology to align with the hub’s passenger-first approach

Your valuable travel companion in the region.

At Gebr. Heinemann, we’re all about building strong and valuable partnerships. With our global expertise, we’re ready to be your valuable travel companion in the MEA region. We create innovative concepts for both retail and distribution in collaboration with our partners. Let’s connect at MEADFA and shape the future of travel retail together!

46

40 A look to the future

Enjoying a strong period of growth, Iraq Duty Free is focused on its ability to offer a world-class travel retail shopping experience

46 Revolutionizing resale

From B2C start-up to B2B powerhouse, LePrix is transforming the US$43B pre-owned luxury wholesale industry. Co-founder Emily Erkel discusses the company’s innovative platform, rapid growth and expansion into travel retail, showcasing how authenticity and sustainability are reshaping the market

ASSOCIATIONS

48 A recap of Cannes

TFWA World Exhibition & Conference saw a record number of buyers and landlords this year. The association welcomed an all-women conference line-up and marked its 40th anniversary in Cannes

50 Insight into Abu Dhabi

The 2024 MEADFA Conference brings together industry leaders for crucial discussions on travel retail’s future in the Middle East and Africa

BEAUTY

52 A beauty tech pentarchy

Beauty tech and personalization techniques are at the forefront of L’Oréal Travel Retail’s growth strategy. GTR Magazine talks to Baptiste Beau, head of the company’s Luxe Division, as the group invests in deeper digitalization plans across its brand portfolio to create memorable experiences for travelers

54 Affordable luxury

With a robust presence in over 130 countries and a commitment to innovation, UAE-based Sterling Perfumes is reshaping the fragrance landscape in travel retail, offering premium scents at accessible price points

56 Hello to healthy skin

Based on advanced technology and catering to all age groups, Geske is on a mission to democratize the pursuit of healthy beautiful skin

CONFECTIONERY & FOOD

60 Feeding off tangible results

Nestlé International Travel Retail’s General Manager, Frédéric Porchet, and Marketing Manager, Aura Sanchez, dish on its portfolio revamp, sustainability commitment and more

62 Sweet talk

Toms Gruppen International Business Manager, Tim Lund Sydtoft, discusses the brand’s travel retail strategy, including its successful Baileys partnership and its approach to the cocoa crisis

SPIRITS & TOBACCO

66 Seeing red

1800 Guachi Monton Tequila celebrates the legacy and agriculture of the tequila region of Jalisco, Mexico. This new entry into the category is a great poster child for global travel retail’s tequila wave, as it moves to highlight more aged products

68 Growth and innovation

Habanos, S.A. achieves record revenues as it reaches its 30-year milestone. The Cuban cigar leader is focusing on innovation and exclusive launches to drive growth in travel retail, while nurturing its Trinidad brand as a rising star in the luxury market

70 Celebrating in style

The Davidoff Year of the Snake Limited Edition cigars and accessories will be available at select Davidoff appointed merchants and flagship stores around the world from November 14

72 One-stop shop

The Middle East-based company, ANDS, aims to place its technologically advanced alternatives within the reach of one billion adult smokers

Bold vision

Qatar Airways Group’s Chief Retail and Hospitality Officer Thabet Musleh discusses revolutionizing airport retail through innovation, leadership and unprecedented integration of retail, airline and airport operations

by HIBAH NOOR

Qatar Duty Free (QDF) is crafting a narrative of innovation and growth that’s capturing global attention. With revenues soaring year-on-year and ambitious plans for expansion, QDF’s fiscal performance tells only part of the story. The real magic lies in how the retailer is transforming the very essence of airport shopping, blending retail, technology and cultural experiences in ways that are deeply attuned to traveler needs.

“My new role as Chief Retail and Hospitality Officer at Qatar Airways

Group is a company-wide role, so Qatar Duty Free is now just one part of what I look after,” says Thabet Musleh. “I not only look after QDF, which is the retail and F&B side. Dhiafatina, which is our hotel business, and all lounges under the Qatar Airways brand are also now under my remit. Additionally, I take care of Al Maha, which comprises of our meet and greet services.”

Unique model

What makes QDF truly unique is that it is part of a trinity model, driven by the integrated ecosystem of Qatar Airways

Group. As Musleh states, he’s probably the only person in the industry today that represents retail, airport and airline in one position. This approach allows for seamless coordination across all customer touchpoints.

“The vision is still the same, which is to deliver a great customer experience,” he says. “With my new role, I now have access to our customers directly at all these different touchpoints. At the end of this year, you will see something we have done strategically with a big brand that will encompass an entire airport takeover.”

World-class team

To support this ambitious vision, Musleh has assembled a formidable leadership team. “We’ve made bold promises last year saying we’re going to double our business in three years and we’re on target for that. We’re already

The serene and peaceful atmosphere of ORCHARD at DOH makes it hard to believe you're actually in an airport – an impression carefully cultivated by the Qatar Duty Free team

+28% up against last year,” he shares. “To deliver what I need to deliver, you need great people alongside you.”

The restructured business now includes VPs driving department growth. The team includes veteran duty free and travel retail industry leaders including Augusto Deymonnaz, Vice President of Marketing and Communications; Nuno Moreira, Vice President of Strategy & Commercial; Stuart Barnard, Vice President of Supply Chain, Warehouse and Logistics; Przemyslaw Lesniak, Vice President of Retail Operations and Grant Fleming, Vice President of Food and Beverage.

Revolutionary data platform

QDF is poised to launch a groundbreaking data platform that promises to revolutionize the industry. The platform, which has been in development for 2.5 years, reflects QDF’s commitment to excellence. “It’s been ready for nine months but you know I’m a perfectionist. We won’t go live until it blows everyone away,” says Musleh.

Expansion and innovation

The retailer’s growth plans include significant physical expansion. “We’re adding two new concourses. 23 more contact gates. Over 2,500 square meters

of new retail space,” Musleh states. “My team at QDF consists of world-first pioneers who bring amazing concepts, and that isn’t going to stop.”

These innovations have included the world’s first Louis Vuitton Lounge and the world’s first Dior spa in an airport, marking a new era in luxury travel retail. The retailer has also introduced Souq Al Matar, a unique concept that brings the essence of traditional Qatari marketplaces into the heart of Hamad International Airport.

Retail for everyone

Musleh emphasizes that QDF’s strategy

QDF’s partnership with YSL Beauty showcased the power of the integrated ecosystem offered by Qatar Airways Group and the power of Musleh’s new role

Qatar Airways is the only airline in the world that deposits Avios points before passengers board their flights, supercharging shopping opportunities at QDF

is about creating a diverse and inclusive shopping experience. “Customer experience is the essence of everything we do,” he states.

This approach is evident in the wide range of retail options available at Hamad International Airport. From high-end boutiques to accessible brands, QDF ensures that every traveler can find something that suits their needs and budget.

“As long as our customers are happy, we're confident we'll keep growing strong,” says Musleh. This focus on customer satisfaction across all segments

has been a key driver in QDF’s success, allowing the retailer to not only meet but exceed traveler expectations in an increasingly competitive market.

Looking ahead

The future holds exciting prospects for QDF. “We’ve already got double-digit projects lined up that will continue to grow the business,” Musleh reveals. The retailer’s efforts have garnered numerous accolades from Skytrax, the Food + Beverage (FAB) and Hospitality Awards, and the Frontier Awards. That said, Musleh is quick to share the credit.

“We’re very, very proud. We cannot do this without our partners. We cannot do this without the fantastic teams that we have on the shop floor. The awards are for them.”

As QDF continues its journey of innovation and growth, Musleh hints at significant developments on the horizon. “You’ll be seeing lots of new things over the next 12 to 18 months,” he promises. Given the transformative breakthroughs and sustained expansion we've continuously seen since Musleh joined QDF in 2015, one can only imagine what might be coming.

The Qatar Duty Free team recently was honored with Airport Retailer of the Year at the 2024 Frontier Awards in Cannes, France

The dynamic Qatar Duty Free team at the TFWA WE & Conference in Cannes last month

Global Travel Retail Magazine’s Hibah Noor sits down with QDF’s Thabet Musleh to learn about a host of 2025 plans

Join Club Avolta

by HIBAH NOOR

Avolta recently launched its “revolutionary” new groupwide consumer loyalty program, Club Avolta. The industry-first program – revealed by Avolta’s Chief Executive Officer Xavier Rossinyol last month – seamlessly integrates duty free, duty paid, F&B, brands, airports, airlines, hotels and more.

This strategic initiative aims to revolutionize the global travel experience, enhancing traveler satisfaction and driving sales. It delivers substantial benefits to key stakeholders across the travel ecosystem by incorporating the company’s full offering of travel retail, convenience and F&B outlets, giving travelers exclusive benefits and experiences with the world’s favorite brands.

Consumer focus

As Vijay Talwar, Avolta’s Chief Commercial & Digital Officer, points out, Club Avolta is a key part of the group’s focus on being more customer-centric.

Talwar has over 25 years of broad industry experience, encompassing both emerging and premium brands. His background is “equal parts brand from my Nike days, digital from my Blue Nile days and retail from my Footlocker and Avolta days,” he explains. Talwar says his current role with Avolta is centered on changing the way things have worked.

“If you look at the last decades in travel retail we talk a lot about change but haven’t been able to operationalize it. You’re now seeing in the newer airports two big elements: one is digital and the other one is called retailtainment,” he says, adding that the company is not implementing digital and

Becoming a Club Avolta loyalty program member is straightforward and frictionless – available to everyone

entertainment for the sake of doing it, but rather to become a more customercentric organization.

Entertaining engagement

Talwar highlights the success of a recent Avolta entertainment concept featured in Ibiza. “For that activation we drew on the popularity of dance music in Ibiza, using this to create a buzz around the brand and something that travelers would remember fondly,” he says. “We did a campaign in Türkiye that showcased elements of local culture, some food, and other types of entertainment. This excited our employees, too.”

In the UK, Avolta partnered with a liquor brand on a pop-up promotion outside of the regular duty free store setting, to target those travelers who

don’t usually spend time shopping at the airport. The promotion highlighted one of the brand’s more exclusive expressions. “Many people were stopping to pick up a bottle on their way through,”

Talwar says.

He outlines Avolta’s collaborations with passenger lounges around the world. “Most frequent travelers are a part of our existing loyalty program,” he says. “Now with Club Avolta we can target them in new ways through the app, to offer additional services that make their travel experience even more enjoyable.”

Inclusive and exclusive Club Avolta is simple, intuitive, and tailored to each traveler’s unique needs. The program rewards members when

they spend at Avolta stores in one of 73 countries with nearly 5,000 points of sale, with access to exclusive offers, products, experiences and instant rewards.

Talwar points out that becoming a Club Avolta loyalty program member is straightforward. Consumers need to simply scan a QR code, add their first and last names and an email address.

“Sign-up is frictionless,” he says. “It’s open to everybody. As consumers go through transactions they move in tiers, getting benefits and unlocking more opportunities.”

While at its launch the program offers considerable value for travelers, airports and brand partners, Avolta will continue to improve its Club Avolta offer. “The loyalty program isn’t just

Snapshots from Avolta’s Cannes Cocktail

A candid and insightful interview between GTR Magazine’s Hibah Noor and Avolta’s Vijay Talwar

Avolta CEO Xavier Rossinyol announced the launch of "Club Avolta" during an exclusive event in Cannes

about what it is the day we announced it, but more about what it can be three to five years from now,” he says. “It’s part of a long-term strategy, because the reality is that a small percentage of our customers drive a much higher percentage of our revenue.”

Greater ecosystem

These benefits are not available only in Avolta stores, but also in affiliation with lounges and airlines. “We are starting with only a few, but we have plans to grow and diversify our portfolio of partners. This is all about making the loyalty program more of a lifestyle,” Talwar says.

While the loyalty rewards include entertainment offers, experiences and points to earn and burn, a “members

travel better” focus underlines partnerships within the ecosystem outside of Avolta stores, in some cases outside of the airport.

“Another element – one that is my favorite – is that members can give back through our app. For example, in the UK travelers can participate in our affiliation with a UK-based not-for-profit, ‘One Water’,” he adds.

One Water launched in 2005 with a simple vision: to sell bottled water in the UK to fund water projects across the world. The name “One” represents the idea that you cannot change a billion people’s lives, but if you can change one life, one day at a time, that is a definition of success.

“We have been working together with One Water for nearly 15 years. They

have already saved 500,000 lives and many of those are children in Africa. Consumers wanted to know how they could give back, so we came up with this partnership idea and it is working well,” Talwar says.

Sustainable integration

At the launch event in Cannes last month, Rossinyol explained to guests how Club Avolta supports the group’s ambition to maximize value for its customers while driving sustainable growth for our business.

“As the largest travel experience player, our diversification across travel retail, F&B and convenience gives us a competitive edge through our ability to generate insights from proprietary data points,” he said. “For members, Club Avolta starts as a simple transaction but quickly becomes a habit, and eventually a lifestyle. The program allows us to understand our clients and their purchasing behavior even better, enabling data-driven business decisions that align with our Destination 2027 strategic objectives.”

For airports, Club Avolta will drive increased sales, while also boosting traveler satisfaction. The program is designed to integrate with existing airport loyalty schemes, complementing and enhancing the overall customer experience. Brands will also benefit from increased visibility of purchasing behaviors, allowing for data-driven investments in experiences and rewards that resonate with travelers and help grow market share.

Club Avolta and the corresponding branding is being rolled out across all Avolta locations globally during a transition phase as the company retires Red by Dufry. Current members of Red by Dufry will have their membership automatically transferred to Club Avolta, with the current app prompting an automatic update for a full member experience.

Dual focus

Dubai Duty Free has unveiled the first phase of grand T3 arrival shop, expanding retail footprint and elevating traveler experience, with promising early results

Dubai Duty Free’s Managing Director, Ramesh Cidambi, discusses strategies to navigate softer trading conditions while preparing for long-term expansion and relocation

by WENDY MORLEY

Dubai Duty Free is navigating a complex retail landscape, balancing immediate market challenges with long-term strategic planning. Managing Director, Ramesh Cidambi, who took the helm on June 1, is steering the company through what he describes as “a long hot summer” of softer trading conditions while simultaneously preparing for future expansion and relocation.

Market headwinds

Cidambi candidly describes the current market situation. “The biggest challenge has been the softening of the business, which we started to see earlier in the year in March, April,” he says. “By the

time we rolled on to May, it was fairly certain that penetration was down, spend was down, and consumer sentiment had definitely deteriorated.”

This downturn has been particularly pronounced in the luxury fashion segment. “We saw that footfall into the fashion boutiques dropped. Conversion of people, passengers going into the boutiques dropped. The average transaction value dropped by nearly US$200 compared to January,” Cidambi explains.

Despite these challenges, Cidambi maintains a balanced perspective, noting that while the high-end fashion brands, which contribute 11% of Dubai Duty Free’s business, have been significantly impacted, “the 89% of our busi-

ness which was not the big four or five brands, that was a bit more resilient.”

Strategic response

In response to these market conditions, Dubai Duty Free is implementing a multi-faceted approach. Cidambi has engaged directly with brand partners, particularly in the luxury segment. “We have had multiple conversations with the brands and asked them to look at assortment, to look at pricing, to look

Ramesh Cidambi, Managing Director, Dubai Duty Free

at customer service, to look at whatever levers retailers have in terms of improving the situation,” he says.

Internally, the company is focusing on enhancing customer experience and operational efficiency. Cidambi elaborates, “We have been looking at customer service, customer experience, the price perception that people have. We have been looking at the profitability of the business, staff productivity, and all of the work that we are doing in terms of seeing all these different aspects of the business while continuing to invest.”

Ongoing investments

Despite the challenging market conditions, Dubai Duty Free continues to

invest in its retail infrastructure. Cidambi highlights recent developments, “We opened the Terminal 3 phase one of the arrival shop. The arrival shop is a big shop, it’s 1,100 square meters, but in the first phase we opened about 500 square meters of it in September.”

These investments are already showing positive results. “The initial results from the phase one opening are very positive,” Cidambi notes. “If you have an improved retail offer people will spend. It’s simple, but it’s not easy.”

Long-term vision

While addressing immediate challenges, Cidambi is also focused on long-term strategic planning. “All the things that we are doing in terms of looking at our

business will translate into a strategic plan for the next five years,” he explains. “We hope to finish the plan by the beginning of November. The plan will cascade into a business plan for each year and the business plan will cascade into the budget for 2025.”

This strategic plan will encompass various aspects of the business, including assortment, margin management, supplier relationships, staff productivity and other operational considerations.

Al Maktoum International Airport

Dubai Duty Free is also actively involved in planning for its future operations at Al Maktoum International Airport. Cidambi shares insights from recent discussions, “We had the first

Cidambi has been working with luxury brands, urging them to evaluate their product range, pricing strategies, customer service quality, and other retail tactics to enhance their overall performance

meeting to look at the design of the new airport, the passenger flow, the broad outline in terms of the retail areas and the overall passenger experience that the designers are working towards.”

Understanding and potentially influencing passenger flow is crucial for retail success, Cidambi says, emphasizing the importance of this aspect. “The first step in having a strong retail offer is understanding the flow, and then having

the opportunity to impact the flow if possible, but having the opportunity to tweak the flow in order to have the best chance of success from a retail perspective.”

Optimism amid challenges

Despite current headwinds, Cidambi remains optimistic about Dubai Duty Free’s future. He reminds us of the company’s strong foundation, “We have

a fantastic business. It will do in excess of US$2 billion a year. We have a great team of 6,000 people, but we also have ambition for what we want to achieve in the next three to five years.”

Cidambi concludes with a reminder of the dynamic nature of retail, “With a retailer, every day is a new day and every day you have to deliver in terms of what you have promised the owners of the business.”

New self-checkout counters are just one example of how Dubai Duty Free is making shopping more convenient for travelers

Emerging markets FLEX

With its focus on growth in the Middle East and openings planned for Africa, Lagardère Travel Retail is looking to prove how its tailored blend of retail and F&B can be flexed to fit local market needs. Global Travel Retail Magazine talks to Vincent Romet, CEO and Regional COO Middle East & Africa

by ALISON FARRINGTON

The mix of retail and food and beverage (F&B) concepts at Zayed International Airport in Abu Dhabi represented a milestone opening for the group in the last year. For its H1 2024 results, Lagardère Travel Retail reported revenue increased sharply by 13.5%, with growth driven in part by strong passenger numbers across Europe, the Middle East and Africa, said the company.

“Our operations in the Middle East and Africa are performing vey well, marked by a strong recovery, increasing

passenger traffic, and emerging opportunities in both regions,” says Vincent Romet, CEO and Regional COO Middle East & Africa.

In the Middle East, particularly at major hub airports like Dubai and Abu Dhabi, Romet says the recent improved performance has been buoyed by robust international travel demand, driven by both leisure and business sectors. “The region's strategic position as a global transit hub continues to be a significant factor in our performance,” he states.

In Africa, Romet is expecting the

same positive outlook, with 2025 set to be a big year for expansion in strategic, emerging market locations. “Our operations in key African markets are benefiting from ongoing infrastructure improvements and growing spending power among African travelers,” he adds.

Retail and dining transformed Lagardère’s retail and dining offers at Abu Dhabi’s Zayed International Airport have been performing strongly since it opened its collection of 18

Lagardère Travel Retail’s retail offering in Abu Dhabi spans a broad range, from valuefocused items to exclusive, high-end products, with a special emphasis on local brands

Vincent Romet, CEO and Regional COO Middle East & Africa at Lagardère Travel Retail

regionally nuanced, unique traveler locations in Terminal A in November 2023. In addition to redesigning the Abu Dhabi Duty Free stores, Lagardère Travel Retail has created four bespoke duty free concepts that are exclusive to its Terminal A operation. These comprise a fine food outlet Le Gourmet, which specializes in the best of Arabian hospitality; Le Club and Little Le Club, described as “havens for the enthusiasts of champagnes, wines, spirits and tobaccos sourced from all corners of the globe”; plus a luxury fragrances and cosmetics offer called Scent.

“We've strategically enhanced both the retail and dining experiences, continuously adapting to passenger behavior and preferences,” says Romet. As an example, he highlights how the retailer transformed the small liquor store, Little Le Club, while integrating the liquor offer within its Abu Dhabi Duty Free shop. “This agile approach allows us to optimize the overall traveler experience and drive commercial success,” he says. According to him, the location-specific liquor store also features a strong gifting theme.

Romet describes Lagardère’s retail offering in Abu Dhabi, a major Middle Eastern hub as spanning a broad range, from value-focused items to exclusive, high-end products, with a special

emphasis on local brands. “This creates a diverse and multi-sensory experience that appeals to the varied passenger profiles at the airport,” he says.

On the dining side, Lagardère has introduced destination-worthy concepts such as Todd English Global Food Hall & Pub, developed with the renowned chef, alongside options like The Meat District for craft burgers and Yasamin Kitchen and Bar. “These unique offerings ensure that both retail and dining at Abu Dhabi Airport deliver an immersive, engaging experience that goes beyond the traditional airport shopping model,” Romet explains.

Plans for the future

Looking ahead to 2025, Romet is excited about several developments in West Africa. “In Africa, we're expanding into Benin, where our strategic focus will be on introducing a tailored mix of retail and F&B concepts that align with local market needs. We are also focusing on enhancing our operations in Dakar with the refurbishments of all our stores there,” he says.

At the core of Lagardère’s expansion plans for the region is the continuation of its pioneering three-business lines strategy, which has already been implemented across the Middle East and Africa in key locations, resulting in a

seamless and holistic customer journey, according to Romet.

“This integrated approach has become a key differentiator for us in these markets. Over the past months, we've seen significant success, particularly at major airports like Dubai International Airport, where we've created a bespoke retail environment that combines these three divisions. This model has not only enhanced the passenger experience but also contributed to substantial sales growth.

“Looking ahead, we continue to focus on delivering innovative and locally tailored retail solutions. By combining duty free, travel essentials, and F&B, we ensure that travelers can enjoy a comprehensive and engaging experience, with each division complementing the other to meet evolving traveler needs. This strategy will remain at the heart of our development plans as we expand further into the region,” Romet adds as the company eyes what’s next.

In February, Lagardère Travel Retail opened a F&B specialist outpost for department store, Fortnum & Mason, in Dubai

Lagardère Travel Retail has transformed its liquor offer at Zayed International Airport in Abu Dhabi with its Le Club and Little Le Club concepts

In early 2024,

A big win

by ALISON FARRINGTON

During its earnings call in April this year, Gebr. Heinemann announced it was “very satisfied” with its financial performance in 2023. The company reached €3.6 billion (US$4 billion) in turnover compared to €2.9 billion (US$3.2 billion) in 2022, representing a 25% jump. At that time the company said it was due to taking “important strategic steps in order to diversify the business.” Regional sales highlights include joint venture operations in Turkey and Israel, which reached US$1.1 billion and US$500 million respectively in 2023, despite geo-political headwinds affecting these locations.

MEA hub

These strategic diversification plans will continue to focus on the Middle East and Africa (MEA) region, where Heinemann recently won the retail concession at Jeddah Airports and for stores aboard AROYA, the first cruise ship for Cruise Saudi, both due to launch in 2025.

MEA accounts for almost one third of Gebr. Heinemann’s overall turnover, with the company active in retail and distribution businesses across over 40 countries in the region. “This is a great basis to leverage further growth potential for our business in the Middle East as well as in Africa across all sales

Heinemann won the concession to operate stores at Jeddah’s King Abdulaziz International Airport in Saudi Arabia, a new joint venture with JAH Arabia International Duty Free via partners Jordanian Duty Free Shops and the Astra Group

Bernard Schlafstein, Director Sales Middle East and Africa at Gebr. Heinemann, has been working for the company for 18+ years

channels,” confirms Bernard Schlafstein, Director Sales MEA.

According to Airports Council International (ACI), airports in the Middle East are expected to handle 1.1 billion passengers by 2040. This represents a significant increase of nearly 300% from the region’s traffic in 2019 (405 million). Significant investments in infrastructure are required to accommodate this growth, says Schlafstein. “Already today, countries in the region are making large investments in constructing new airports. This outlook, combined with an attractive spend per PAX in the region, provides several opportunities for travel retail,” he says.

A key driving factor for Heinemann’s ongoing global planning is staying close to partners and customers. To be well

connected within MEA, the company recently strengthened its local Dubai hub, headed by Oleksandr Shevchenko, Head of MEA Dubai Multi Commodities Centre. “This way, we are able to strengthen our existing partnerships, as about 70% of customers from Africa have their offices in Dubai, as well as increasing potential new customers,” says Schlafstein.

Eyes on Saudi Arabia

One highlight in H1 2024 for Schlafstein was the concession win for Jeddah’s King Abdulaziz International Airport in Saudi Arabia, a new joint venture with JAH Arabia International Duty Free, via partners Jordanian Duty Free Shops and the Astra Group. “Teams are now

working on bringing our vision for this airport to life. In August we took over operations and started the construction. The official opening will take place in Q2 2025,” he says.

Schlafstein has high expectations for increased performance in Saudi Arabia, which he considers a dynamic development market. The tourism sector is a key part of the country’s “Vision 2030” and its aim for annual visitors was recently increased to 150 million by 2030.

The government is planning for strong growth in its aviation industry. By 2030 the country wants to deliver service to about 300 million passengers per year and be connected to 250+ destinations. The plans include key

Heinemann’s operation at Tel Aviv Airport is a key regional location

YEAR OF THE SNAKE 2025

infrastructure projects like the new Riyadh-based King Salman International Airport, which will have a capacity of 120 million passengers. In addition, a new NEOM International Airport is being developed to serve the Red Sea developments in the north-west of the country.

Based on these figures, Schlafstein expects passenger numbers to rise, along with an increase in travelers targeting Saudi Arabia as a destination. “This is very promising for the travel retail business at [these] airports. In addition, on the regulatory side, the country is making progress, as the recent decision to allow arrivals duty free shows,” he says.

Schlafstein also sees growth potential for other sales channels: in border shops and in the cruise business. “Our colleagues from the cruise department are already looking forward to starting the operation aboard the country’s first cruise ship, AROYA,” he adds.

Schlafstein is also pleased about the company’s tender win in Antalya, Türkiye. “We are proud that our joint venture partner, ATÜ, has been selected as the next duty free operator for Antalya Airport. ATÜ will manage a total of 12,000 square meters, featuring core duty free stores, ATÜ’s multi-brand concept Luxury Square, and the local concept brand Old Bazaar. With an operational network that already spans 21 airports and cruise ports across seven countries, our JV partnership with ATÜ puts us in an ideal place to bring industry expertise, know-how, and highly qualified human resources to Antalya Airport,” he says.

Africa rising

Heinemann is active in 35 countries in Africa, and Schlafstein believes the market has unprecedented potential. “A key driver will be the significant increase in purchasing power expected for Africa’s middle classes in the years to come. This

overall development, combined with the growth of the aviation industry across the continent, will provide great opportunities for the travel retail industry at airports," says Schlafstein.

Inflight and border shops are also on Schlafstein’s growth plan. “We have already established a solid footprint for our distribution business to border shops, and we see a huge potential for further growth in this channel.”

Schlafstein is convinced the company will benefit from its openness to different business models and partnerships in Africa. “We are always keen in supporting our customers to provide state-ofthe-art duty free shops and offers to travelers. Therefore, we are happy to share our expertise as a globally operating company in fields like shop design or category management and at the same time we are benefiting from their expertise on local conditions or local business practices,” he concludes.

According to ACI, airports in the Middle East are expected to handle 1.1 billion passengers by 2040

Exceeding expectations

ARI’s new flagship store at Zayed International Airport is setting new standards in airport shopping, blending Emirati heritage with cuttingedge technology to align with the hub’s ambitious growth strategy and passenger-first approach

by WENDY MORLEY

The travel retail landscape at Abu Dhabi’s Zayed International Airport has been transformed with the opening of ARI’s new flagship store in November 2023. This expansive retail space, spanning 2,608 square meters, represents a significant milestone in the airport’s strategy to enhance passenger experiences and solidify its position as a leading international hub.

“Overall, the store has exceeded expectations, aligning well with the airport’s strategy to enhance passenger experiences and boost its status as a

leading international hub,” says Adrian Bradshaw, General Manager of Travel Retail Sales and Services (TRSS), reflecting on the store’s performance since its launch.

This success is bolstered by a substantial increase in passenger traffic through Terminal A. In the first half of 2024, the terminal welcomed 13.9 million passengers, marking a 33.5% year-on-year increase. This surge in foot traffic has significantly contributed to the strong performance, creating a bustling retail environment that caters to a diverse

clientele.

Adrian Bradshaw, General Manager of Travel Retail Sales and Services, emphasizes the store's commitment to blending Emirati heritage with modern luxury, creating a unique shopping experience for international travelers

Emirati heritage

A standout feature of the new store is its commitment to creating a unique sense of place. The design philosophy seamlessly blends traditional Emirati elements with contemporary luxury, offering passengers an immersive cultural experience. Stunning art installations and sculptures are strategically placed throughout the space, while carefully chosen colors and motifs evoke the essence of the Emirati landscape and heritage.

international

The “Essence of Arabia” fragrance section offers a multisensory experience with interactive displays, allowing customers to explore scents in an innovative way

“We’ve managed to showcase the fusion of traditional and modern elements that define Abu Dhabi, where heritage meets luxury,” says Bradshaw. “The design embodies the rich local culture, integrating elements of Emirati architecture and art with stunning art installations and sculptures.”

Cutting-edge innovation

Innovation and technology play a crucial role in enhancing the customer experience at the new ARI store. The retailer has incorporated cutting-edge digital platforms and interactive displays to create a more engaging and personalized shopping journey. These technological integrations are particularly evident in key product categories.

The fragrance section, aptly named “Essence of Arabia,” offers a multisensory exploration of scents through interactive displays. This innovative approach allows customers to engage with fragrances in a novel way, moving

beyond traditional sampling methods. In the sunglasses section, a digital “magic mirror” utilizes augmented reality technology to help customers find the perfect pair for their face shape, merging practicality with a touch of high-tech entertainment.

Committed to flexibility

Notwithstanding the store’s initial success, ARI remains committed to continuous improvement and adaptation. The diverse passenger profile at Zayed International Airport presents both opportunities and challenges. “The passenger profile is quite broad and diverse, so we are constantly evolving and adjusting our offering to make sure we have the best range to meet passenger needs,” says Bradshaw.

This commitment to flexibility extends to ARI’s product offerings. The beauty category, featuring over 100 brands, has emerged as a top performer. The selection includes a mix of niche

fragrances and high-demand brands, many of which are exclusive to the region. This carefully curated range reflects ARI’s strategy to provide a diverse and unique shopping experience that caters to the varied preferences of international travelers.

ESG standards

Sustainability is another key focus area for ARI, reflecting the growing global emphasis on environmental responsibility in the retail sector. The store’s design and operations adhere to ARI’s ESG standards and practices, as well as local Estidama regulations, which focus on sustainable building and operational practices. This commitment to sustainability extends to product selection and packaging, with ARI actively working with brand partners to promote more environmentally friendly options.

Looking to the future, ARI’s plans for growth are closely aligned with the airport’s expansion strategies. The retailer is poised to capitalize on emerging opportunities, leveraging its prime retail space to maximize passenger engagement and sales. This forward-thinking approach is guided by ARI’s comprehensive Customer Value Proposition, which Bradshaw describes as encompassing “exceptional range and value, a bespoke sense of place, a hyperconnected experience, great retail theater, convenience, sustainable solutions, unrivalled customer service, and a safe shopping environment.”

The success of ARI’s new store at Zayed International Airport is underpinned by strategic partnerships, particularly through TRSS, a joint venture between ARI Middle East and local partners. This collaboration has been instrumental in developing bespoke retail concepts and securing exclusive product ranges for the region.

“From a business partnership point of view, it’s about collaboration, innovation and flexibility as we work towards business success,” says Bradshaw.

The store’s expansive beauty section showcases over 100 brands, including exclusive and niche offerings, catering to a diverse international clientele

A look to the future

Enjoying a period of strong growth, Iraq Duty Free is focused on its ability to offer a world-class travel retail shopping experience

by HIBAH NOOR

With an eye to the future, Iraq Duty Free is underlining its commitment to customer service and sustainability.

The travel retailer has welcomed a sharp increase in sales since the recent reopening of its Babylon Duty Free shop at Baghdad International Airport’s International Departures Terminal.

The shop’s bold new look, with perfumes & cosmetics claiming a standout presence, is a clear indication of what

the travel retailer’s offer, be that at airport or downtown stores, will look like in the future.

Expansion plans are key to Iraq Duty Free’s strategy, with the travel retailer set to expand its downtown duty free business with a shop in Al-Karkh on the western side of Baghdad. That store will mark its second off-airport location in the Iraqi capital with further downtown stores nationwide in the coming years. Renovations are also scheduled for the Baghdad International Airport Samarra

arrivals duty free store later this year, along with Iraq Duty Free’s Basra International Airport operation.

Considering the impact of the new-look Babylon Duty Free shop, an Iraq Duty Free spokesman said, “The redesign of the shop has given an excellent overall shopping experience, in particular for our top-selling category perfumes. The introduction of new brands into the niche segment in our shop has added to sales, including brands such as The House of Amouage, Jardin de Parfum, Argos to name a few in addition to our new arrival brands of face, hair and body such as L'Occitane and Sol de Janeiro offering travelers a wider selection of items that are in demand but not previously available. This has boosted sales tremendously.”

The spokesman said improved brand and product presentation has led to a sharp increase in sales in the perfumes & cosmetics category. “The relocation of categories such as confectionery, liquor and tobacco to the rear of the store has made the shop front much more attractive and appealing to customers.

Iraq Duty Free has witnessed a sharp increase in sales following the reopening of its Babylon Duty Free store

into the store has increased tremendously, as have sales,” he added.

He noted that the Babylon Duty Free shop design has been well received. “The general look and feel of the store is certainly more inviting and more attractive to customers,” he said.

At the same time, Iraq Duty Free has welcomed a sharp increase in both liquor and tobacco sales, helped by a new approach to showcasing premium and fast-moving SKUs. An increased demand for higher end single malt whiskies, as well as premium Scotch brands, champagnes and Cognacs has also been noted. The wine category is attracting attention, as Iraq Duty Free’s customers become more accustomed to wines of different quality and from different regions.

Whisky remains the number one seller in the spirits category, with vodka brands also in high demand.

Marlboro leads the brands in the cigarette category, followed by Winston. Iraq Duty Free has seen an increased demand for cigars, and shisha tobacco is enjoying a “tremendous growth in sales.” Heated tobacco products (HTPs) or heat-notburn (HNB) products follow, along with vaping products.

Gifting continues to play a key role in Iraq Duty Free’s offer as the travel

retailer caters not only to the needs and demands of its local customers but also those of foreign visitors.

Commenting on Iraq Duty Free’s strategic long-term goals behind the recent renovations and expansions –and including the downtown store in Al-Karkh – the spokesman said, “Iraq Duty Free has vast experience with more than 21 years running this business. We understand our customer base and want to bring a world class shopping experience with not only premium brands but also the latest trends and innovations to our loyal customer base. The trust and appreciation we have earned quite rightly from our customers encourages us to continue to strive to reach higher goals and excel ourselves to present a world class travel retail shopping experience in Iraq.

“We are very excited that our new downtown duty free store in the Al Karkh area will provide another gateway for customers residing in other parts of Baghdad, offering the opportunity to purchase items that they possibly missed at the airport along with additional gift items too.”

With a focus on integrating sustainability practices into its new and renovated stores, Iraq Duty Free is looking into replacing single-use shopping bags

with more environmentally friendly bags and is actively searching for a trusted source to collaborate with.

The travel retailer has also upped its focus on quality and service, with an eye on the new and upcoming store locations such as those in Kirkuk, Mosul, Al Najaf and Al Nasiriyah.

“With the recruitment of our new training manager on board we intend to ensure that a continuous follow up with supplier training will always be done,” the spokesman added. “Customer service training, grooming and correct strict uniform policies are always adhered to as per the company’s policies. Regular visits to all of our shops from the marketing, procurement, stock control and top management ensures that the business is run efficiently, and with as few mistakes as possible, following our strict guidelines rules and regulations that we have become accustomed to throughout our 21 years’ experience running this business.”

Upcoming promotions and activations include a raffle-based draw to win a car in July. The promotion will feature strongly at the front of Iraq Duty Free departure stores and the travel retailer expects the campaign to run at least twice a year, depending on its success and ticket sales.

The footfall

Milestone of distinction

Artistic rendering of International Duty Free Shops’ new “Grab & Go”

International Duty Free Shops is preparing to celebrate its 35th anniversary in 2025, while simultaneously embarking on an ambitious expansion and renovation program across its retail network

by HIBAH NOOR

From humble beginnings with a single store in 1989, Morocco’s International Duty Free Shops (IDFS) has grown to become the country’s premier travel retail operator, with presence in ten major airports and 25 shops across the country. The company was the pioneer of duty free shopping in Morocco and maintained its position as the sole duty free operator in the country for many years.

“We are celebrating our 35th anniversary next year, which is an achieve-

ment that we’re proud of,” says Anthony Courchet, General Manager of IDFS. “To mark this milestone, we will align with the Kingdom, as there are many new developments happening in Morocco. We want to make our stores an integral part of the tourism experience.”

The anniversary celebrations will feature a series of events engaging customers, partners and employees, with detailed plans expected to be unveiled by the end of November.

Expansion and renovation

IDFS is currently implementing a comprehensive renovation strategy across its duty free shops. A major focus is Casablanca Airport, where significant changes are underway. The company has closed its Terminal 1 transit shop and will reopen a new “Grab & Go” concept across from its Terminal 2 Fashion Boutique. This strategic relocation will be followed by an expansion and renovation of the Fashion Boutique itself, creating what the company envisions as a “Fashion Avenue.”

“Construction will begin before the end of the year, with completion and opening scheduled for Q1 2025,” Courchet says. “The new location will effectively capture passenger flows from

concept. It will be situated across from the retailer's Terminal 2 Fashion Boutique at Casablanca Airport

Anthony Courchet, General Manager of International Duty Free Shops

both terminals, with one side serving passengers from the T1 bridge and the other side serving T2, with transit passengers in the middle, offering a brandnew fashion experience.”

The company is also exploring opportunities at Rabat Airport’s new terminal, with ongoing discussions with ONDA (Office National Des Aéroports) regarding new retail space. Additionally, the Agadir location will undergo a refresh before the end of 2024.

Strong market recovery

The expansion comes amid robust recovery in Morocco’s travel industry. “Most Moroccan airports are registering double-digit growth compared to 2023, with the exception of Casablanca, which maintained single-digit growth,” notes Courchet. “This resurgence is driven

by a combination of pent-up demand, improved travel conditions and effective promotional strategies by the Moroccan government and tourism stakeholders.”

IDFS has observed significant shifts in consumer preferences, particularly in health and wellness products and sustainable offerings. Tobacco remains the primary sales driver, with the category adapting through the introduction of reduced-risk products. The perfumes & cosmetics category has expanded with new partnerships, including an exclusive arrangement with Bath & Body Works and the introduction of Payot, both aligned with growing demand for sustainable products.

Digital enhancement

Looking ahead, IDFS is strengthening its digital presence with plans to launch

an enhanced online shopping platform by the end of 2024. The platform will be optimized for both desktop and mobile devices, offering detailed product descriptions and high-quality images to enhance the online shopping experience. The company has also increased its social media engagement through targeted campaigns and influencer partnerships.

This digital push is complemented by the company's strengthened commitment to sustainability. IDFS has implemented energy-efficient technologies and waste reduction programs across its operations, demonstrating its dedication to environmental responsibility.

Market relevance

In-store experiences have been enriched with cultural elements, including the incorporation of traditional Moroccan “moucharabieh” designs in different locations. During the festive season, the company creates unique experiences by combining local culture with holiday themes, such as using Moroccan tents instead of traditional Christmas market setups.

This cultural integration extends to staff training programs, where employees are specially trained to be knowledgeable about exclusive Moroccan products. IDFS actively seeks feedback from tourists and local stakeholders to continuously refine its offerings and better align with Morocco's tourism vision.

“We put a lot of work into keeping ourselves relevant in the market,” Courchet emphasizes. “We are professionals; we keep the passenger happy, offering great spaces with items that the customer is looking for.”

And thanks to a strong partnership with ONDA, IDFS is well positioned to continue its growth trajectory. The company’s focus remains on enhancing customer experience through experiential retail, strategic pricing and promotions, while maintaining its commitment to sustainability and local product development.

success is

in the

Revolutionizing resale

From B2C startup to B2B powerhouse, LePrix is transforming the US$43B pre-owned luxury wholesale industry. Co-founder Emily Erkel discusses the company’s innovative platform, rapid growth and expansion into travel retail, showcasing how authenticity and sustainability are reshaping the market

by WENDY MORLEY

Initially launched as a B2C e-commerce platform, LePrix soon evolved into a pioneering force in the pre-owned luxury wholesale industry. The company’s innovative B2B platform is reshaping how retailers source and sell second-hand designer items, addressing critical needs in a rapidly growing market.

“LePrix has been revolutionizing the US$43 billion pre-owned luxury wholesale industry since 2019,” says Emily Erkel, CMO and co-founder of LePrix. “We pioneered this business model with our proprietary B2B platform, helping retailers successfully launch and grow their pre-owned businesses.”

The pivot has proven successful, with the company’s growth trajectory speaking volumes. “As of January 2024, LePrix has exceeded US$100 million in cumulative sales since its inception,” Erkel notes.

Duty free has proven an important channel. As global air travel rebounds, LePrix sees an increasing opportunity. “Travel retailers recognize the growing appeal of vintage and pre-owned luxury items among discerning travelers,” Erkel says, adding that the luxury resale market is projected to reach US$86 billion by 2028, growing at a rate 11 times faster than traditional retail.

Trust through technology

Central to LePrix’s success is its commitment to authenticity. To build trust with both retailers and end consumers, LePrix provides a Certificate of Authenticity tag with each item. “Each item sourced from LePrix includes a tag with a QR code that the consumer can easily scan and see that the item was certified authentic,” Erkel says.

The company employs a rigorous authentication process, partnering with

independent authenticators. “Every item sourced from LePrix is authenticated at least two or three times,” she adds.

Capturing new markets

LePrix aims to capitalize on the growing demand for sustainable luxury experiences. “This has helped launch the category as an opportunity to capture new customers, like Gen Z and Millennials, who are adopting sustainable fashion more quickly than other generations,” Erkel states.

The cruise channel is also growing. “Our pre-owned luxury platform for retailers is well-positioned to help cruise lines navigate the choppy waters of pre-owned luxury to ultimately enhance the overall passenger experience,” says Erkel.

LePrix’s

rooted

complementary backgrounds of its co-founders. Elise Whang, CEO and co-founder, brings legal expertise from her previous career as an attorney, while Emily Erkel contributes valuable insights from her experience in retail strategy consulting

A recap of Cannes

TFWA World Exhibition & Conference saw a record number of buyers and landlords this year; the association welcomed an all-women conference line-up and marked its 40th anniversary

by LAURA SHIRK

Industry members from around the world gathered together last month in Cannes, France, to attend the 2024 TFWA World Exhibition & Conference. The annual event saw a record number of key buyers and landlords on the exhibition floor; a total of 2,861 attended the show, a rise of 4% versus 2023. 141 landlord companies attended including over 80 international airports, with airlines, cruise and ferry companies also strongly represented. As reported by Tax Free World Association (TFWA), many top travel retailers attended with considerably larger delegations than previous years.

Reflecting the truly worldwide nature of the event, 7,456 visitors representing “all corners of the globe” showed up to the event, during which TFWA celebrated its 40th anniversary. This figure is up 2% compared to last year’s visitor attendance.

A panel of world-class speakers, including former US Secretary of State Hillary Rodham Clinton, took to the conference stage on day one. Delegates packed the Grand Auditorium to hear from the all-women line-up on global leadership, digital technology and the future of travel.

Day two’s “Reimagining travel retail” workshop at the Majestic Hotel, which focused on innovative strategies that every stakeholder can adopt to thrive in

this dynamic environment, was also well attended.

462 exhibitors representing thousands of world-class established brands and new products from all categories occupied over 25,000 square meters of exhibition space in Cannes’ iconic Palais des Festivals.

A new format for the TFWA i.lab gave visitors the opportunity to learn about cutting-edge solutions and meet the most innovative start-ups aiming to elevate the retail experience for travelers in a refreshed, informal environment designed to encourage conversation and collaboration.

“It brings me great joy that the final TFWA World Exhibition & Conference I attended in the capacity of President was such a resounding success, and it was an occasion that many of us will remember for years to come,” says Erik Juul-Mortensen, TFWA President. “It is a testament to the strength of the industry and our shared commitment to growth that more landlords than ever before came this year to Cannes.”

Following the event, it was announced that the TFWA presidential election is set for Friday, December 13. Members of the Management Committee who are planning to stand for election are requested to inform the TFWA Election Committee of their intent by Thursday, December 12.

Insight into Abu Dhabi

The MEADFA

2024

Conference brings together industry leaders for crucial discussions on travel retail’s future in the Middle East and Africa

by WENDY MORLEY

The MEADFA 2024 Conference marks a significant moment for the industry as it gathers in one of the region’s most dynamic business hubs. MEADFA President Sherif Toulan opens the conference proceedings, followed by a keynote address from Abu Dhabi Airports’ Managing Director & Chief Executive Officer, Elena Sorlini.

The opening session features a comprehensive industry discussion on fueling growth, led by an expert panel including Marcus Spahn, General Manager Commercial Non-Aero at MATARAT Holding, Chichi Maponya, Co-founder and Executive Chairperson of Africa Travel Retail, Abdeslam Agzoul, CEO Middle East and Africa for Avolta, and Ashish Chopra CEO of Delhi Duty Free.

The power of partnerships takes center stage in a morning session featuring insights from Rob Marriott, CEO at Aer Rianta International Middle East and Chair of the MEADFA Advocacy

Group, alongside category leads and MEADFA Board members Banu Eksi, Rania Abou Hussein, Roger Jackson, and Chichi Maponya.

Duty Free World Council President Sarah Branquinho provides global context and strategic insights addressing key industry challenges, and the “Soaring Skies” session explores travel and tourism’s robust recovery, with ForwardKeys Vice President Marina Giuliano providing latest data and market insights.

The second day features focused discussions on East African growth opportunities and sustainability, with presentations from leaders including Ali Tounsi of Airport Council International for Africa, Munif Mohammed of Lagardère Travel Retail Saudi Arabia and Leila Naguib of Mars.

Innovation and technology feature prominently, with sessions exploring artificial intelligence’s transformative impact on customer experience, operations, and sales performance.

The comprehensive networking program includes a Welcome Cocktail on Sunday evening and a spectacular gala dinner on Monday night at Ethara F1 Circuit, hosted by Avolta.

This year’s event has attracted strong industry support, with Avolta serving as Gala Experience Partner, while Diamond Partners include ARI Middle East (hosting the Welcome Cocktail), Casa Maestri, Hama Gulf, International Duty Free Trading & Agencies (IDF), Sterling Perfumes, and Wellgio. Platinum Partners include Aphrodite Duty Free, Dubai Duty Free, Imperial Brands, JT International and Pernod Ricard Global Travel Retail. Gold Partners are Afrique Duty Free, Bahrain Duty Free, Bloom Dead Sea Gift Ent, Blue Gulf, House of Julius Meinl, Mondelēz and Scent of Africa.

“The remarkable industry response demonstrates the vital role the Middle East and Africa play in the future of travel retail,” says MEADFA President Sherif Toulan.

TFWA President Erik JuulMortensen adds, “As the Middle East and Africa continue their recovery, the MEADFA Conference allows delegates to discover more about the vast opportunities in this rapidly evolving region.”

MEADFA President Sherif Toulan

A beauty tech

pentarchy

Beauty tech and personalization techniques are at the forefront of L’Oréal Travel Retail’s growth strategy. GTR Magazine talks to Baptiste Beau, L’Oréal Travel Retail Luxe Division Worldwide –General Manager, as the group, invests in deeper digitalization plans across its brand portfolio to create memorable experiences for travelers

by ALISON FARRINGTON

An omnichannel strategy is no longer a nice to have for Baptiste Beau, L’Oréal Travel Retail Luxe Division Worldwide – General Manager, it’s a necessity. “We think about the customer journey holistically, including all the digital touchpoints. What is important is to be able to engage before, during and after the trip with travelers to make something convenient and memorable at the same time,” he says.

Over the summer, L’Oréal launched a beauty animation for YSL at Doha Airport in partnership with Qatar Duty Free. Beau explains the pilot was designed not only to create a podium where travelers can experience connected make-up and fragrances services, but also to leverage data before, during and after their trip. “I think of how we can and do data-driven and memorable experiences that deliver at the end. Because we are lucky enough to work in this data-rich industry,” he shares. Within the travel retail ecosystem, the Pentarchy has replaced the Trinity, says Beau. “For me, there are five key stakeholders that we need to work with: airlines, airports, retailers, brands and all the media and digital players. These are the important collaborators to elevate the consumer journey to new heights. Based on this pilot, which shows at the end we can deliver; we need to scale and expand. That's the bright future of travel retail, it relies on these kinds of experiences.”

In partnership with China Duty Free Group, the Lancôme Domaine de la Rose destination is an exclusive worldwide and was fine tuned to create the right balance between transaction and the Grasse experience

Derma dominance

Current skincare trends such as longevity and tailored derma-beauty consultations are a key component of L’Oréal’s focus on experiential activations in travel retail including the Lancôme Génifique at Changi Airport in Singapore. According to Beau, the secret is to find the perfect combination of scientific innovation and personalized expert services.

“We use a lot of R&I to develop breakthrough skincare innovations. From the power of beta-glucans with the Génifique Repair Clinic to the longevity science behind Absolue L’Extrait, both are examples from Lancôme and they make us trustworthy to our customers,” he says.

On the flip side: experience is paramount. “There is this balance between data-driven expertise and human connection, because the beauty advisor is what will make the difference at the end. We are always chasing for the most advanced technologies to create value for the end consumer,” Beau continues. “The more digitalized we are, the more human we should be. So, it's about finding the right balance with the beauty advisors. This is at the heart of the skincare consultation.”

Message in a bottle

Luxury fragrance positioning is an evolving story for L’Oréal Travel Retail. “It's a subtle mix of being in tune with each brand's DNA and experience

Lancôme Génifique Ultimate Travellers’ Repair Clinic at Changi Airport in Singapore showcases why L’Oréal Travel Retail places such an importance on the conversation of skincare, representing the evolving needs of consumers

because as far as fragrance is concerned, premium fragrance is one the fastest growing sub-categories for us,” says Beau.

He knows that consumers are fragrance connoisseurs. “They are expecting to discover exciting, artistic and unique brands [in travel retail]. Maison Margiela has a unique positioning. We want to craft the edge and not to follow trends,” Beau comments.

Maison Margiela Replica Eau De Toilette (EDT) is a top-performing fragrance in Asia travel retail. Beau attributes this to the fact that “we decided to bottle universal memories with all the feelings and emotions that you leave behind.”

A new Replica Eau De Parfum (EDP) line is set to release next year and will explore extraordinary imaginary worlds. Beau explains, “We are going to propose to the fragrance connoisseur to explore an imaginary and extraordinary world of dreams. Fantasies like Soul of the Forest, Flying, A Walk on the Moon. We’ve got three beautiful masterpieces that just launched in China with very promising first results.”

Also recently launched in October in Hainan Block C, the Lancôme Domaine de la Rose retail concept is an ode to the home of perfumery in Grasse, France. “It all starts with the rose,” says Beau. In partnership with China Duty Free Group, the Lancôme Domaine de la Rose destination is an exclusive worldwide and was fine tuned to create the right balance between transaction and the Grasse experience.

“It goes beyond a simple point of sale, becoming a shopping destination, a real point of experience. This is the ideal space to experience the concept, my challenge is to scale this down to more scattered spaces, to work collectively and find ways to replicate it in the travel retail destinations,” he adds.

Since its launch into travel retail in 2020, Maison Margiela Fragrances has seen phenomenal growth, now ranking as a top three brand in premium fragrances in Asia

Affordable luxury

by WENDY MORLEY

In travel retail, where luxury and affordability can seem at odds, Sterling Perfumes has carved out a unique niche. Founded in 1998 under the umbrella of Fakhruddin Holdings, this UAE-based fragrance company has rapidly ascended to become a key player in the global fragrance industry, with travel retail especially important.

As Sterling Perfumes celebrates its 25th anniversary, the company’s trajectory reflects a remarkable journey of expansion and innovation. From its humble beginnings, Sterling has grown into a powerhouse with a 550,000 square-foot production facility in Dubai and a workforce of 2,500 employees.

Global growth

Gautam Siyal, Executive Director at Sterling Parfums Industries, reflects on the company’s growth. “Over the past decade, we’ve experienced phenomenal

growth, expanding our business tenfold from where we started,” he says. “Our success stems from our ability to offer high-quality fragrances at competitive prices, typically at about one-fifth the price of comparable luxury brands.”

Sterling’s global footprint is impressive, with its products sold in over 130 countries. The company has set an ambitious goal to be present in every country by 2030. “We’re not just selling globally; we’re also establishing distribution networks in key markets like the UK, US, and India,” Siyal notes.

Company evolution

Sterling’s success in travel retail is bolstered by its agility and innovation, especially in digital engagement. Siyal emphasizes the importance of staying ahead of trends. “Post-pandemic, we’ve embraced e-commerce and modernized our business strategies. This has been crucial in meeting the growing demand

for niche fragrances and maintaining our competitive edge,” he says. The company’s flagship brand, Club de Nuit, has become its biggest success story, exemplifying Sterling’s ability to deliver luxury-quality fragrances at accessible price points.

Looking to the future, Sterling is expanding into two exceptionally important areas. “We’re expanding into hair care and skin care, which will be a major focus for us in the coming years,” Siyal reveals. In the travel retail space, Sterling is making significant inroads into cruise, recognizing the unique opportunities this channel presents for fragrance sales.

As the industry moves towards more sustainable practices, Sterling is also adapting. “We’re conscious of our environmental impact and are taking steps to reduce waste, improve packaging sustainability, and optimize our logistics for reduced emissions,” Siyal states.

Siyal concludes with an optimistic outlook. “Our journey over the past 25 years has been incredible, but we believe the best is yet to come. We’re committed to bringing affordable luxury to travelers worldwide and continuing to innovate in ways that benefit both our retail partners and end consumers.”

Gautam Siyal, Executive Director, and Vineet Garmella, Assistant Manager - Brand Strategy and Research, in the company’s substantial booth at TFWA WE 2024. As Sterling Perfumes continues to grow and evolve, its impact on the travel retail fragrance market is undeniable

Sterling’s strategy in travel retail involves adapting to evolving consumer demands, particularly in the luxury and niche fragrance segments. The company recently launched Precieux I, a luxury fragrance specifically targeting GTR, offering a unique and accessible option for travelers

FLYING

Over 40,000 sq. metres of spectacular shopping.

Thousands of limited editions and travel exclusives.

Hundreds of the world’s most desirable brands. But only one glorious destination: Dubai Duty Free.

The brand’s Hello Kitty product range is made up of sonic facial brushes, MicroCurrent devices, smart masks, eye energizers and facial misters

Hello to healthy skin

Based on cutting-edge technology and catering to all age groups, Geske is on a mission to democratize the pursuit of healthy beautiful skin

by LAURA SHIRK

Known as a highly competitive market, Geske German Beauty Tech is currently making a splash in beauty travel retail. The innovative skincare brand brings together cuttingedge technology and clinically tested formulas to provide advanced skincare solutions. Available in Dubai Duty Free and in duty free in Saudi Arabia, Geske recently debuted in travel retail in the Americas, where according to Brand Director Ekaterina Cherne, the response has been “overwhelmingly positive.”

Geske has launched with Duty Free Americas, Bernabel, Boramix, Cell Motion and Cell Shop and is in partnership with the distributor, Tiyers. With the aim to enter American airports next year, the brand is expanding throughout Latin America and the Caribbean and will soon be present on cruise ships as well.

“We have created a presence across South America at a rapid pace and are launching in the Caribbean, with Rouge

Duty Free and Duty Free Americas, on 10 different islands. Early next year, we will also start retailing at Heinemann stores onboard the new Royal Caribbean cruise ship Icon of the Seas, which is the largest of its kind in the world,” shares Cherne.

The brand is still exploring options with regard to offering its products at scale in the airport environment. Several airports would like to offer

The free, AI-powered GESKE app allows customers to conduct a skin analysis to understand more about their skin

bundled assortments in duty free such as a Geske device and a matching skincare product. It has also received numerous requests from travel retailers for gifts with purchase.

Coming up, sales are expected to increase significantly in Dubai and Saudi Arabia because of the high season. “During this period, consumer demand typically spikes due to holidays, increased tourism and special shopping events like Black Friday or other regional festivals. These factors will likely drive higher sales in both regions,” explains Cherne.

Personalization and price point

When it comes to competitive advantage, Cherne notes that price point is a clear differentiator. According to her, Geske is successfully replacing other brands that charge up to five times the price for devices that feature the same

capabilities and technologies.

“We want to democratize the pursuit of healthy beautiful skin, and our product range with affordable price points offers incomparable value to customers in the skincare market. The free, AIpowered GESKE app allows customers to conduct a skin analysis to understand more about their skin,” she says. “Upon performing a skin scan, users receive curated, personalized recommendations on devices that would fit perfectly in their skincare routine and access to over 1,000 videos in 46 languages each to show them how to use each product.”

Rising beauty tech trends

With each Geske device designed to address a specific skin concern, Geske products cater to all age groups. Cherne says, the desire for more affordable and personalized beauty tech among consumers led to the idea of establishing a

brand that offers technologies in “every arena of skincare.” Geske’s Hello Kitty devices have proven to be very popular across all regions. “In terms of beauty tech trends, we are witnessing the demand for products that offer multiple functions to support the overall skin health. Many of our devices include up to nine different technologies,” she adds.

Discussing the projected growth of the global skincare industry, Cherne ties in personal health and wellbeing. “I think that the overall global awareness of skincare and beauty tech products has grown significantly due to social media and e-commerce,” she says. “With all of the latest technologies available at affordable price points to improve our skin's appearance and overall health, consumers are driven to take better care of themselves and make greater investments in their beauty and skincare.”

Geske’s SmartAppGuided™ Sonic Thermo Facial Brush serves as a 3-in-1 for lifting, firming and toning skin

Geske’s SmartAppGuided™ Sonic Facial Roller is designed to visibly de-puff and firm the fragile skin around the eyes via advanced vibration technology

BEAUTE LUXE Duty Free expands its influence in Africa

BEAUTE LUXE, the leading distributor of perfumes and cosmetics in Africa's travel retail sector, continues to expand its footprint across the continent. In 2024, the company launched 15 new retail locations in various airports, solidifying its dominance in this burgeoning market.

Strategic growth and expansion

With the recent additions, BEAUTE LUXE now operates over 120 travel retail locations across Africa. This strategic expansion allows the company to cater to an increasingly large international audience, addressing the rising demand for luxury beauty products. The growth in retail locations enhances accessibility for consumers traveling through African airports, improving their overall travel experience.

Diverse and prestigious partnerships

BEAUTE LUXE’s portfolio now includes prestigious brands from L’Oréal, Puig, Hermès, Coty and L’Occitane. These collaborations highlight the strength of the

company's distribution network and its ability to diversify product offerings. By expanding its brand portfolio, BEAUTE LUXE attracts a broader and more discerning clientele.

Extensive brand portfolio

The company continues to offer a wide range of over 60 luxury perfume and cosmetic brands, including iconic names like Armani, Lancôme, Hermès, Gucci, Paco Rabanne, and Jean Paul Gaultier. This diverse portfolio allows BEAUTE LUXE to cater to the varied preferences of consumers while maintaining high standards of service quality, ensuring constant innovation and adaptation to market trends.

Leadership in the travel retail sector

These expansions and partnerships reinforce BEAUTE LUXE’s leadership in Africa’s travel retail market. With a growing presence in major airport hubs, the company is well-positioned for continued growth. BEAUTE LUXE’s strategy is grounded in a deep under-

standing of consumer needs and market trends, ensuring its leadership status.

Looking ahead

David Dayan, President of BEAUTE LUXE, confirms that the company will continue to enhance the premiumization of perfume and cosmetic spaces in African airports in 2025, leveraging its prestigious brand portfolio. New contracts with brands and airports are under discussion. With an ambitious expansion strategy, including animations, pop-up stores, and skilled sales advisors, the company aims to offer an exceptional experience for passengers, meeting the expectations of increasingly demanding consumers.

The future appears bright for BEAUTE LUXE, as it strives to offer the best to travelers across Africa. Its rigorous growth strategy and strong partnerships position the company as a key player, ready to face challenges and seize opportunities in a dynamic market.

David Dayan, President, BEAUTE LUXE

FEEDING OFF TANGIBLE RESULTS

Nestlé International Travel Retail's General Manager, Frédéric Porchet, and Marketing Manager, Aura Sanchez, dish on its portfolio revamp, sustainability commitment and more

by LAURA SHIRK

Focused on a future where food is the number one most purchased category in travel retail, Nestlé International Travel Retail (NITR) has identified six industry growth drivers: travel retail exclusives, sense of place, experiential retail, personalization, sustainability and digitalization – all of which are part of its VERSE model (Value, Engagement, Regeneration, Sense of Place and Execution).

Described as consumer-centric and wide-ranging, NITR’s offer targets demand moments, which according to

the team effect over 90% of purchases in travel retail and take into account on-the-go purchases, self-consumption, gifting and sharing across age groups. While working to build KitKat into a travel icon, the company continues to explore developing segments including coffee and VMS (vitamins, minerals and supplements), as well as lead sustainability regeneration within the category. It’s fair to say its plate is full.

Global Travel Retail Magazine met with newly appointed General Manager Frédéric Porchet and Marketing Man-

ager Aura Sanchez for an interview at the TFWA World Exhibition & Conference in Cannes, France. In addition to NITR’s portfolio revamp, which focuses on an enhanced KitKat value proposition, the two discussed the current cocoa market and the early response to the Nestlé Sustainably Sourced Cocoa travel retail exclusive range.

KitKat: breaking right

As shared by Porchet, the iconic slogan “Give Me a Break” has been central to KitKat’s identity for decades and captures the brand’s essence as a snack that should be enjoyed during a break from daily activity. The “break” theme has evolved over the years and can vary per person. “For global travel retail, NITR has successfully interpreted [the slogan] to mean a travel break from daily life and work with themes that resonate with Gen Z,” he continued. “KitKat’s ‘Live Your Best Break’ campaign taps into Gen Z’s desire for experiences rather than just products. We know this generation values memorable moments

The latest KitKat products encourage travelers to bring variety to their break moment; pictured here is the travel retail exclusive KitKat Mix Pouch which consists of four flavors: Salted Caramel, Classic, White and Peanut Butter

Frédéric Porchet, General Manager, Nestlé International Travel Retail

Aura Sanchez, Marketing Manager, Nestlé International Travel Retail

and travel is seen as a way to explore the world, take a break and recharge.”

Sanchez introduced three new KitKat products at the exhibition and conference: KitKat Mix Pouch, KitKat Senses Miniatures and KitKat Ball. The new product launches, which encourage consumers to bring variety to their break moment, will be supported by campaigns across the entire travel journey including pre-trip digital assets and standout displays to ensure strong instore visibility and post-trip promotions via social media channels and influencers. All three are exclusive to travel retail and set to launch in 2025.

Speaking about NITR’s partnership with Avolta and KitKat’s integration into the retailer’s 360-degree Emotion campaign, Sanchez explained, “If we close the [consumer] journey on a strong presence at the point of sale and with engaging propositions and activations there, then we manage to transition

from awareness to consideration to purchase.”

Cocoa update

KitKat is the first global chocolate brand to use 100% sustainably sourced cocoa via the Nestlé Cocoa Plan and its collaboration with Rainforest Alliance.

The first KitKat made with cocoa sourced from beans grown by families engaged in Nestlé’s income accelerator program launched in European travel retail earlier this year. The program, which started as an additional layer to the plan, provides families with cash incentives so they can increase their income, improve their living standards and incentivize sustainable farming practices.

“This is a significant milestone in Nestlé’s ongoing sustainability commitment to ethical sourcing, as well as improving the welfare of cocoa farming communities, while offering consumers

the best cocoa that there is out there to find,” said Porchet.

While the price of cocoa has now stabilized to US$5,000 – 6,000 per tonne, it is still double the standard value. According to Porchet, cocoa prices reaching record levels in the past several months is due to three main causes: supply shortage due to climate conditions, previous underinvestment in cocoa farms and investor speculation.

“We have to continue as an industry to support cocoa farming. Now, importantly through our Cocoa Plan, we know that we have strong initiatives in place to improve cocoa availability, the quality of the crop and the support of the farming households. We’re also working to close the living income gap because it’s important that families don’t move away from producing cocoa,” Porchet added.

Nestlé pays for cocoa the market price, the living income differential, as well as the premiums required for quality specifications and responsibly sourced cocoa.

Sustainability regeneration

Launched in April, the Nestlé Sustainably Sourced Cocoa line will soon include Dark Chocolate Thins, a threeflavor assortment (70% Cocoa, Cocoa Nibs and Salted Caramel) of 20 individually wrapped squares that promise a multi-sensorial experience. Its comprehensive campaign which includes trade shows and industry events, online and in-store marketing and extensive sampling has been described as “just the beginning.”

“This launch underlines the commitment of Nestlé not only to innovation and travel exclusivity, but also to leading the overall sustainability regeneration of the category. It combines the Swiss chocolate expertise of Nestlé with the company’s sustainability efforts and is a direct result of Nestlé’s work with the Rainforest Alliance to support cocoa farmers and their communities,” said Porchet.

The release of the Nestlé Sustainably Sourced Cocoa travel retail exclusive range underlines the company’s commitment to lead sustainability regeneration within the category

A look at Nestlé International Travel Retail’s stand at this year’s TFWA World Exhibition & Conference in Cannes

SWEET TALK

Toms Gruppen International Business Manager, Tim Lund Sydtoft, discusses the brand’s travel retail strategy, including its successful Baileys partnership and its approach to the cocoa crisis

by WENDY MORLEY

Amid volatile cocoa markets, Danish chocolatier Anthon Berg is growing its travel retail footprint, fueled notably by its successful partnership with Diageo's Baileys brand.

“We’ve seen a 400% growth on the Bailey’s range in the past two years,” Lund Sydtoft says. Notably, he reports the Baileys line complements rather than cannibalizes Anthon Berg's core product sales. “What is so positive about the Baileys [range] is that it’s coming on top, it’s incremental,” he says.

The success of the Baileys partnership has led Anthon Berg to expand the range with the launch of three new variants in the Baileys Tasting Selection including orange, strawberry and tiramisu flavors.

Another area of success for Anthon

Berg has been its marzipan products, particularly when combined with Baileys. “We’re seeing traction from the traditional marzipan heartland, North and Eastern Europe, but actually also the Americas,” Lund Sydtoft states. “Demand has been extremely positive.” The success in the Americas indicates potential for growth beyond Anthon Berg’s traditional Nordic stronghold.

Cocoa crisis strategy

Like all chocolate producers, Anthon Berg is grappling with the unprecedented rise in cocoa prices. Lund Sydtoft describes it as “the biggest crisis” in the company’s 140-year history. However, the brand is taking a proactive approach to address the challenge. He emphasizes that this is a delicate balancing act. “We are not interested in pricing ourselves

out of the market. And the other side of that coin is that we need to protect our business.”

Anthon Berg is exploring various strategies to mitigate the impact of high cocoa prices without compromising product quality. “We don’t want to cheat the consumers in any way,” Lund Sydtoft asserts. “We want to make sure that we deliver real value.”

Travel retail focus

Anthon Berg continues to see travel retail as a key channel for growth and brand exposure. The company is working closely with major travel retail partners worldwide. Gifting remains a core focus for Anthon Berg in the channel, given the brand’s premium positioning along with its attention to packaging and presentation.

However, the company is also developing products to cater to different occasions and consumption moments. “We have a number of offers within the base range and other projects on the way that will be more sociable and cater to different occasions,” Lund Sydtoft says.

International Business Manager

Tim Lund Sydtoft at the Anthon Berg stand at TFWA World Exhibition & Conference

BACK TO THE FUTURE

For the Diageo Global Travel team, exploring future traveler engagement opportunities is key to driving growth in the spirits category. Global Travel Retail Magazine met with Managing Director Diageo Global Travel, Andrew Cowan, who walked the team through a preview of the company’s ground-breaking “Exploratorium of Spirits” scenario planning research at TFWA Cannes

by ALISON FARRINGTON

As a response to Diageo Global Travel’s ambition to grow the spirits category, traveler penetration, and conversion in the duty free channel, the company has produced a piece of research that looks at the future of travel retail. “It is about how we can inspire and partner with our retailers and look beyond brand moments –engagement and interaction are key,” said Cowan who highlighted Diageo’s new 360-degree Activation Menu. The menu features concepts such as “The Launch Pad”, “The Garden of Wellness”, “The Mixology Carousel” and “The Gifting Lab”, designed to amplify the group’s latest brand activations given enough space from retail partners.

Future traveler mindsets

Guests visiting Diageo’s stand at TFWA World Exhibition & Conference in Cannes, France, in October, explored different room sets that visualized how engaging and experiential retailing could work into the next decade.

“We are trying to understand and examine consumer mindsets for when travelers are airside and before and after they’re airside. We want to create ways of being inspiring and engage with them about our latest product innovations,” he stated.

Penetration strategy

This year’s event was also an opportunity for Cowan to underline the group’s strategy to improve penetration, increase conversion and grow Diageo’s market share for the spirits category in travel retail.

In the first instance, penetration is very low on beverage alcohol in duty free, noted Cowan who is on a mission to drive up the numbers for Diageo. According to him, with penetration currently at 6% (of those PAX entering the store 40% go on to make a purchase and spend around US$85) there is an opportunity to increase the 6% to 7%, the 40% to 45% and the US$85 to US$95. “Between now and 2030 those

Johnnie Walker Black Ruby was released in a bid to appeal to a new generation of whisky drinkers

Don Julio Primavera launched at TFWA WE in Cannes. According to Cowan, TRXs are a focus because consumers are looking for “a money can’t buy experience in travel retail”

“We painted our ports Johnnie Walker Blue for the launch of Xordinaire,” said Cowan

metrics add up to doubling the size of the category, that's US$8 billion at retail,” he said.

Cowan also described Diageo’s four key shopper missions to inspire consumers to buy alcohol. “These are: gifting, exploration, ‘make the moment’ opportunities such as a cocktail, and finally balance, people don't always want to drink alcohol.” It’s clear these themes are represented in Diageo’s research project as scenarios that can work as multi-brand.

A third strategic layer is expanding the brand portfolio. In order to double the category through its four shopper missions, Diageo is taking a good look at how its brands can participate in the marketplace more fully.

It is this strategic attention to brand innovation that Cowan is keen to showcase. The company is split between its premium core portfolio, including Smirnoff, Gordon's Gin, Tanqueray and Baileys, which comprises around two-thirds of travel retail sales, and its premium and luxury lines, with products priced US$100 and over, including Johnnie Walker Blue Label and the growing Don Julio 1942 brand. “We want to grow the business around all of those brands – core ladders up into luxury,” he shared.

TRX demand and premiumization

Diageo’s luxury business is under the spotlight for its experiential and traveler exclusive opportunities. “On one side, it’s Johnnie Walker Blue Label and on the other it’s tequila, in particular Don Julio 1942, which two years ago was almost non-existent, but now is a big part of our business,” continued Cowan.

Diageo has now invested heavily in Don Julio. “We've heroed 1942,” he commented. Year one, there was a focus on airport activations such London Heathrow. In year two, it’s about new premium products called Don Julio Primavera, as well as the Don Julio Ultima Reserva Extra Anejo, a very rare liquid. The aged products are becoming more of a focus, he added. There’s also the Don Julio range of stubbies –Blanco, Reposado, Añejo; plus the new 70 Cristalino.

“So, we've gone from being very product focused to being category focused,” said Cowan.

Additionally, there is Diageo’s focus on premium single malts in whisky, including TRXs. The Singleton Gardens of Abundance range debuted in travel retail in July. “While we're launching a broader range for The Singleton in travel, there’s also Talisker and Mortlach; and regionally, Lagavulin, a smoky whisky,” he said. Johnnie Walker Black Ruby was released in October, in a bid to appeal to a new generation of whisky drinkers.

Strategically, each pillar refers back to premiumization. “Whether it's Johnnie Walker Blue Label Xordinaire, chapter two of Don Julio, the non-aged The Singleton range or our TRX Zacapa rum. It's all logical and ladders back up to either gifting or exploration or creating value.

“We have invested in those traveler touchpoints to be more engaging, to make people linger a bit longer at the point of purchase. We want the look and feel of our brands in outlet to feel much more luxurious,” Cowan concluded.

Diageo Global Travel has launched the travel retail exclusive, Zacapa XO, to grow its premium rum category

Seeing red

by ALISON FARRINGTON

“Discover the Unexpected” is the global campaign of tequila brand 1800 Guachi Monton, which launched in global travel retail last year and according to the brand owner, Proximo Spirits, is so far growing well in key target markets.

“We are seeing big tequila category growth and 1800 is doing well across all markets, especially in travel retail,” says Patrick Lynch, Trade Marketing Manager, Proximo Spirits.

Further to its US launch at JFK Airport in New York last November, the American market has led the way for the specialist aged 1800 Guachi Monton. The spirit is recognized as the first luxury añejo tequila aged in American and French oak barrels and finished in orange tequila liqueur casks. It honors the legacy and agriculture of the Tequila Valley and is presented in a red ceramic trapezoidal-shaped bottle with a spheri-

cal carved wooden cap, inspired by the pyramids and red clay found throughout the UNESCO World Heritage site of Los Guachimontones.

Proximo Spirits has invested in hightraffic locations for travel retail promotions including a US Open sponsorship spot at London Heathrow’s Terminal 3, during the US Open in August, as well as upcoming partnerships with Avolta in Spain, according to Lynch.

The World of Tequila is an activation concept that Proximo Spirits has previously debuted with Dubai Duty Free and is due to be re-released in further locations, to be confirmed. “The World of Tequila is a great category platform for educating travelers on their particular style of tequila,” explains Lynch. The company is investing in rolling it out with key travel retail partners such as Gebr. Heinemann in Istanbul and is in talks with several partners in Asia, where aged varieties of tequila are in demand.

As shared by Lynch, 1800 Guachi Monton has good potential to scale its footprint in travel retail via World of Tequila, which can serve as an interactive tool for brand ambassadors to engage with travelers to offer the perfect serve and gift with purchase elements that reflect the product’s rich history. Proximo Spirits also plans to create eye-catching wall bays for the brand to capitalize on its deep red color, wooden carved stopper and iconic bottle shape.

1800 Guachi Monton is the first luxury añejo tequila aged in American and French oak barrels and finished in orange tequila liqueur casks

1800 Guachi Monton is presented in a red ceramic trapezoidalshaped bottle with a spherical carved wooden cap, inspired by the pyramids and red clay found throughout the UNESCO World Heritage site of Los Guachimontones

Growth and innovation

by WENDY MORLEY

As Habanos, S.A. celebrates its 30th anniversary in 2024, the company continues to solidify its position as a leader in the premium cigar market. With its iconic status and brands like Cohiba, Montecristo and Partagás in its portfolio, Habanos has established a global presence in over 130 territories across five continents. This milestone year commemorates the company’s legacy and celebrates last year’s recordbreaking revenue of US$721 million, underlining its enduring dominance in the cigar industry.

Strong performance

The company’s impressive financial performance can be attributed to Habanos’ strategic plan focusing on promoting its

most luxurious, high-end cigars, both in mature markets and growing regions such as Asia and the Middle East, where demand for premium Cuban cigars continues to rise.

Co-presidents Luis Sánchez-Harguindey and Maritza Carrillo emphasize the significance of this achievement, stating, “This is a year of records.” The company’s success is particularly noteworthy given the challenges faced by Cuban growers, who are still recovering from the impact of Hurricane Ian in 2022 and the lingering effects of the pandemic.

Important channel

The travel retail channel plays a crucial role in Habanos’ success, typically accounting for up to 25% of the com-

pany’s total sales. While channel sales dipped to 19% in 2023, Sánchez-Harguindey expects that percentage to rise back to normal levels before long.

“Travel sales were greatly impacted by the pandemic,” he explains. “Production stopped, but consumption continued to grow domestically. People found their own places to smoke, and the demand for Habanos increased.”

Despite these challenges, the company remains excited about global growth. “We’re seeing growth in Asia, the Americas and the Middle East,” Carrillo notes. “These regions are becoming increasingly important for us.”

Habanos’ global market presence is dominated by Europe, which accounts for 56% of sales. Asia, particularly China, Hong Kong and Macau, repre-

The exclusive Cohiba is available only through duty free and travel retail channels, reaffirming Habanos, S.A.’s commitment to creating unique products for the most demanding Habanos aficionados to enjoy anywhere in the world

At the Habanos gala dinner during TFWA WE 2024, co-presidents discuss the company’s anniversary, the travel retail market and the

sents 21% of the market share, followed by the Americas at 13% and the Middle East at 10%. The co-presidents highlight the growing importance of these markets in driving future growth.

Strengthening partnerships

Habanos places great emphasis on nurturing relationships with travel retail partners. “We work closely with retailers, traveling and visiting them as much as possible,” Sánchez-Harguindey says.

“An important selection of our distributors work in exclusivity, and we are in close communication with them to treat our customers with care.”

This personalized approach extends to product launches and marketing initiatives. “Every year, we launch a product specific and unique to the

travel retail channel,” Carrillo says. “For example, we’ve introduced special sizes of Cohiba exclusively for this market.”

Innovation and experience

Looking ahead, Habanos is focusing on enhancing the customer experience. “We’re seeing a growing demand for innovation and unique experiences,” Sánchez-Harguindey explains. “We’re strengthening our quality control processes and working with distributors to ensure the highest standards.”

The company is also embracing digital innovation in different fields. The Casa del Habano in Beirut Airport has an app that allows potential clients to place orders, signaling a move towards more tech-savvy solutions.

Habanos continues to prioritize

industry events as a means of showcasing products and identifying trends. “TFWA World Exhibition is very important for us,” Carrillo says. “And the Middle East and Asia are crucial showcases where we can present our products and observe industry trends.”

Trinidad takes center stage

While Cohiba remains Habanos’ super-premium offering, the company is excited about another brand. “The real star this year is the Trinidad brand, which celebrates its 55th birthday,” Sánchez-Harguindey says. “It’s been a hidden jewel that needed to be discovered in all its splendor and potential.”

This focus on Trinidad was evident at the recent Habanos World Days event in London, where the brand was prominently featured. The company sees Trinidad as a boutique brand with significant growth potential.

Meeting demand

Despite the record-breaking sales, Habanos faces ongoing challenges in its production capacity. The aftermath of Hurricane Ian has led to a reduction in planting areas, with the 2023-2024 growing season falling about one-third short of pre-hurricane levels. However, the company has strategically focused on its most efficient, high-end farms to maintain quality.

As Habanos moves forward, the company is committed to meeting the growing global demand while maintaining the quality that has become synonymous with its name. “We’re working on increasing production to meet demand,” Carrillo states. “We’re focusing on innovation and maintaining our commitment to quality.”

Travel retail will continue to play a significant role. “We will keep launching products in the channel, including limited editions and special offerings,” Sánchez-Harguindey confirms.

TR-exclusive release

Celebrating

in style

The Davidoff Year of the Snake Limited Edition cigars and accessories will be available at select Davidoff appointed merchants and flagship stores around the world from November 14

by HIBAH NOOR

Davidoff has unveiled its latest edition and accessories inspired by a sign of the Chinese zodiac for brand and cigar aficionados.

Along with the Year of the Snake Limited Edition Lancero cigar, Davidoff will launch a Masterpiece Humidor with an exclusive gran toro cigar, an accessories gift set and a Year of the Snake Flagship Edition toro cigar, at select Davidoff appointed merchants and flagship stores around the world from November 14.

The cigar editions and the accessories gift set will include a collector’s coin.

2025 is the Year of the Snake, a sign of elegance and balance. Edward Simon, CMO at Oettinger Davidoff, said, "To mark this very special occasion, we wanted to delight our aficionados with novelties around our Lunar New Year celebrations, while preserving our original intention of these product launches: Celebrate in style, honor the zodiac and

create truly unique cigars that will fill our aficionados' time beautifully, for the first time with three different formats.

"I am convinced that with this new cycle we will distinguish ourselves through our leap forward in terms of innovation and packaging design. The changes we have made make our collection more relevant than ever to our customers around the world."

Although Davidoff has created Lancero cigars before, the taste profile of its Limited Edition 2025 Lancero (43 RG x 7“ | Ø 1.7 cm x 17.8 cm) is quite unusual, with flavors of lemon, leather and coffee. Dominican San Vicente and the Mexican Negro San Andres filler tobaccos drive the fresh and lemony notes and the blend is not only unique in taste, but also in tobacco innovation. It is only the second time that Davidoff’s Master Blenders have used a Mexican filler tobacco in a cigar. For the first time, the team has used a Dominican hybrid seed 98 tobacco from the Martin

Garcia terroir. The wrapper and the binder are both from Ecuador.

The Year of the Snake Flagship Exclusive (52 RG x 6“ | Ø 2.1cm x 15.2cm) is limited to 600 boxes of 24 Toro cigars worldwide. Davidoff has reduced the use of hard-to-recycle materials and presents both its Limited Edition and the Flagship Exclusive in a wooden box. The cigars have a second band in red with yellow accents. As red is considered a lucky color in Chinese culture, and yellow is one of the lucky colors of the Snake zodiac sign.

The Davidoff Year of the Snake Accessories Gift Set includes a porcelain ashtray for two cigars, case and punch cutter and is limited to 500 pieces.

The Year of the Snake Masterpiece Humidor is the most valuable piece of the Year of the Snake collection, holding 88 Gran Toro made with the same special blend as the limited Lancero and Toro cigars.

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ONESTOP SHOP

The Middle East-based company, ANDS, aims to place its technologically advanced alternatives within the reach of one billion adult smokers

by HIBAH NOOR

ANDS – a specialist in alternative nicotine delivery systems –claims to be “the one-stop shop of alternative nicotine.”

The Middle East-based company’s focus is on placing the most credible products and technologically advanced alternatives within reach of the one billion adult smokers in the Middle East, Africa and the world.

According to Managing Director MEA & Global Travel Retail Arnaud Piorkowski, ANDS customizes its product offering based on market insights and with a focus on flavor profiles and formats to align with local tastes and requirements.

Innovation in the ANDS product line is driven by a robust research and development (R&D) process focused on identifying consumer needs and market trends and considering idea generation, feasibility studies, prototype development, pilot production and fullscale production.

“Balancing innovation with consumer safety and regulatory compliance plays a key role in our strategy,” Piorkowski says.

He underlines ANDS’ strong focus on the travel industry and its claim to being the one-stop shop of alternative nicotine.

“We are proud members of TFWA and MEADFA and we are building with operators the future of the industry in front of the growing consumer demand. We are looking to increase our presence in existing markets and explore new geographical areas where travel retail is growing. This includes expanding further into Europe, Africa as well as LATAM as our focus markets.

“We also aim to introduce new product categories that cater to evolving consumer preferences and trends. This includes products with innovative formats that enhance convenience and user experience. We have just launched a range in Zero Nicotine, as well as in 50 milligrams in response to customer demand in specific segments and we have also introduced Nicotine pouches and a heat not burn tobacco proposition,” he explains.

Considering challenges centered on youth vaping and environmental

impact, Piorkowski says, “Addressing these issues is crucial to maintaining our commitment to CSR. Preventing underage use of our products is a top priority as is reducing our environmental footprint by focusing on sustainable practices in manufacturing and product lifecycle is another major challenge.”

ANDS expects innovations in vape technology to include more efficient batteries, improved e-liquid formulations and advanced flavor options, along with exclusive or limited-edition vape products that are not available in regular retail outlets.

Piorkowski says the company is looking at new categories that are gaining popularity among adult smokers including oral tobacco products and nicotine pouches. “We are working with our manufacturing partners to provide these products as part of our portfolio to domestic markets and travel retail too,” he adds.

ANDS looks to introduce new product categories catering to evolving consumer preferences and trends

Arnaud Piorkowski, Managing Director MEA & Global Travel Retail, ANDS

Leading the travel experience revolution together.

Global Travel Retail MEADFA November 2024

In Memoriam:

NEW MOROCCANOIL TREATMENT PURPLE

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46

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