Global Travel Retail Magazine TFWA October 2022

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Qatar Duty Free expands HIA offerings p. 12 “Amazing” journey so far for new Dufry CEO p.20 Dubai Duty Free discusses soaring sales p. 24 FOREO’s scoop on consumer-led innovation p. 44 GTRMAG.COMOCTOBER 2022 TFWA CANNES VOL 34 · NO 6
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energetic expansionsFast-paced firsts,

While this month’s event marks the second inperson return of the Tax Free World Asso ciation’s World Exhibition and Conference in Cannes, this issue of Global Travel Retail Magazine (GTRM) highlights many firsts. We see these stories as a sure sign that recovery is underway as operators are pursu ing plans and making bold moves to enhance the duty free and travel retail experience.

Dufry is delivering on the first of its strategic pillars with new CEO Xavier Rossinyol leading the charge. The operator joined forces with Autogrill earlier this year and together the combined Group will bring travel retail and travel F&B together in one offering.

“Our combined entity will reach 2.3 billion travelers in over 75 countries through over 5,500 outlets in over 1,200 airport and other locations. We will be fully focused on developing new experiences, services and options that are centered on the needs of these billions of travelers worldwide,” Rossinyol tells GTRM in a Q&A.

He also says fundamental drivers for the return to travel have remained “largely consistent.” People are still looking for experiences, exclusive products, limited edi tions and promotions, all of which have been contributing to increasing sales for Dufry, Rossinyol explains.

Meanwhile, Iraq Duty Free’s (IDF) first-ever Downtown Duty Free Shop in the center of Baghdad is “showing sales figures in the first quarter of business that are above and beyond expectations,” says Ahmed Kamal, Chairman at IDF.

Qatar Duty Free (QDF) has expanded its presence at HIA with increased retail space from 90 outlets to more than 175 shops. There are 30 new F&B outlets, ranging from fast food to luxury restaurants and cafes, bringing the total number of options to 71.

“The expansion of Hamad International Airport is a vital part of the future success of the Qatar Airways Group, and of course of the country’s preparations to host the 2022 World Cup [in November]. It is also a strong sign that Qatar’s economy is robust and acts as a further economic stimulus, providing excellent opportunities for local and international contractors,” said Qatar Airways Group CEO Akbar Al Baker at the Global Tourism Forum in Brussels last month.

Bahrain Duty Free will host the MEADFA Conference for the first time in the King dom of Bahrain in November.

Bassam Al Wardi, CEO of Bahrain Duty Free, says its expansion to the new terminal at Bahrain International Airport brings the opportunity to solidify itself as an “innova tion trailblazer” and to showcase its world-class offering to the wider industry ahead of the conference.

Along with these fast-paced firsts and energetic expansions, this issue covers previews from operators and suppliers on what they plan to announce, promote and showcase this month in Cannes.

It certainly feels like an exciting time in the industry. We look forward to reconnect ing with colleagues and friends in Cannes and will be there to cover all news on what has been accomplished since we were here together last year.

Kindest Regards,

OCTOBER 2022 · VOL 34 · NO 6

Global Travel Retail Magazine (ISSN 0962-0699) is published seven times a year by Paramount Publishing Ltd. It is distributed digitally worldwide, with printed issues in April, May, June, July, Septem ber, October and November.The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or the editor. October 2022, Vol 34. No. 6. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. Paramount Publishing Ltd.



Aijaz Khan





SENIOR EDITOR Mary Jane Pittilla

ART DIRECTOR Jessica Hearn




WHAT’S INSIDE Lead Stories

12 A Year of Success

Qatar Duty Free devoted in Doha Recovery is on the rise and Qatar Duty Free is reaping the benefits of HIA’s expansion and the upcoming FIFA World Cup in Doha

20 Q&A with Dufry CEO

Strengthening its global presence

Dufry’s new CEO Xavier Rossinyol answers questions about the retailer’s strategic plan moving forward and how it will strengthen its global presence, plus more details on joining forces with Autogrill

24 Spend-Per-Head Surge

Increased spend-perhead drives DDF

Improved sales from the Middle East, Americas and Indian subcontinent sectors among others are compensating for the lack of sales among the traditionally high-spending Chinese and Russian passengers

26 Bahrain DF’s Sense of Place

More than a place to shop

With a thriving new terminal store and preparing to host the MEADFA Conference for the first time, Bahrain Duty Free discusses its successes of 2021 and the promising end to 2022

32 MEADFA Conference Heads to Bahrain

Toulan spotlights strong Middle East MEADFA President Sherif Toulan tells Global Travel Retail Magazine about the upcoming MEADFA Conference in November and what is coming up for the Middle East & Africa Duty Free Association


Features  Contents 64 54 24
with Lotte DF CEO 48 Caribbean Update 54 Lagardère’s F&B Game Changer 58 Aphrodite DF Store Openings 62 India Update with DDFS 64 12
Departments Editor’s Letter 6 News 98

Lead Stories

34 TFWA Update

Reconnecting in Cannes Industry expert and TFWA President Erik Juul-Mortensen reveals what to expect at TFWA World Exhibition & Conference, plus the Association’s outlook on the future

42 Interview with ASUTIL’s Donagaray

Harmonizing duty free allowances

In an interview with José Luis Donagaray, Secretary General at ASUTIL, Global Travel Retail Magazine gets the latest updates on the Association’s current objectives and upcoming conference

38 Beaming in Baghdad

Iraq Duty Free’s big expansion plans

Iraq DF completes phase five of its expansion plan with downtown Baghdad store and discusses plans to open more in major Iraq cities in 2023

44 Product Development & Innovation

Consumer-led innovation

Gary Leong, Global Travel Retail Director at FOREO, shines a light on its leading proof data, trend observation and product development practices

China Report

Interview with Antoine Bona Rituals

Moroccanoil Transformation

BEAUTE LUXE Partnership

Kavalan’s Twist on Whisky 86 Mazaya’s New Brand Identity 88 FSW Mexican Whisky 92 WGS NoLo Category 94 FDFA Update 104 Q&A with Wrappr 106

Contents 68
74 Guest Column:
80 Cloetta Strategic Design 82
Features 38


From a single store in 1933 trading only perfumes and liquors, Shopping China has grown to become the big gest duty-free border retailer in South America. Today, the company has six duty-free stores in Paraguay, one in Bolivia and two in Uruguay. All of the physical stores are strategically located and capable of successfully attending the needs of over 200 million people per year. Our greatest achievement was to gain the trust of our clients and fulfill their needs by providing an innovative, safer and faster shopping experience. After the pandemic they were success fully able to restart the activities and operations with the security, enthusi asm and unique quality that has always characterized the company for 89 years. This would not be possible without the support of all the collaborators and sales departments involved.

From the beginning to the present day Shopping China’s main goal has always been to grow and offer a unique shop ping experience. Last year, the company started to develop the project for what will be the largest store in latin amer ica. This store will be located in Ciu dad del Este, a city in Paraguay that is considered to be the largest city within the triple frontier, mostly known for its shopping tourism. This project of sev en floors with ninety thousand square meters of sales area, offices, food court, parking and warehouse intends to pro vide the best experience in self-service consumption. Since the beginning of the construction the company has gen erated and will keep generating thou

sands of employment opportunities. Now, Shopping China in Ciudad del Este has become the largest construc tion project in Paraguay. Besides con tributing to the economy, this project has been motivating and encouraging the local competition, which results in an increased number of tourists that cross the border looking forward to a new shopping experience. Shopping China’s main goal is to stay innovative and contribute to the growth of the country.

Project for the Shopping China’s building in Ciudad del Este, seven floors with a ninety thousand square meters, sales area, offices, food court, parking and warehouse.

QDF Devoted in Doha

Recovery is on the rise and Qatar Duty Free is reaping the benefits of HIA’s expansion and the upcoming FIFA World Cup in Doha

Named the world’s best airport for the second year in a row by SKYTRAX, Hamad Interna tional Airport (HIA) in Doha saw a 164% increase in passenger traffic in H1 2022, serving 15.6 million passengers. With the recent expansion of the airport due to open this month, it now has capac ity for 53 million passengers annually – ideal for the flood of travelers expected for November’s FIFA World Cup Qatar 2022TM hosted by the capital city.

With recovery on the rise, HIA is an ideal place to be a retailer – and Qatar Duty Free (QDF) couldn’t agree more.

“Last year was a fantastic year for us. We achieved financial numbers in unison with our pre-COVID sales of 2019. This year for sure, we will exceed the 2019 pre-COVID numbers. We have already

surpassed previous results with specific categories and brands,” Thabet Musleh, Head of QDF, tells Global Travel Retail Magazine (GTRM).

“These fantastic results are down to the great work my team has done at Qatar Duty Free in bringing innovation to the redevelopment we have done at HIA. The team has been working around the clock to deliver this outstanding outcome, and the proof is in the great numbers we are achieving.”

Best airport in the world

Receiving the title “Best Airport in the World” for back-to-back years is a notable accomplishment for HIA. The airport offers world-class luxury shopping, including brands such as Bvlgari and Chloé, many dining options, a sleep ‘n fly

Hamad International Airport’s passenger traffic levels showed an increase of more than 164% in the second quarter of 2022 Thabet Musleh, Head of Qatar Duty Free Akbar Al Baker, CEO, Qatar Airways Group

Sleep Lounge, the Be Relax spa and the Vitality Wellbeing & Fitness Centre with pool, gym and hydrotherapy tub.

Musleh says the partnership between QDF and HIA is aligned with a focus on the passenger experience.

“We believe customer experience does not only come from one isolated element within the customer interaction with the airport. Passengers want to feel comfort able, reassured and emotionally stimu lated when traveling through any airport – and that’s what we are creating between HIA and QDF.

“We work in unison to offer the level of

emotion that passengers expect. Passengers traveling through HIA expect and receive the best retail and dining offerings, having access to the best brands in the world, exclusive products and experiences that you cannot find anywhere else,” he says.

Qatar Airways Group CEO Akbar Al Baker confirmed the official opening of the HIA expansion at the Global Tourism Forum in Brussels in September. He said it is due to open this month.

“The expansion of Hamad International Airport is a vital part of the future success of the Qatar Airways Group, and of course of the country’s preparations to host the

2022 World Cup. It is also a strong sign that Qatar’s economy is robust and acts as a further economic stimulus, providing excellent opportunities for local and inter national contractors,” he said at the event.

Musleh tells GTRM Qatar Duty Free has increased its retail and F&B footprint in the new terminal.

But, Musleh adds, “Actions speak louder than words and I look forward to welcoming all my industry colleagues, all our customers, and the world, to Doha to see for themselves. It is unique in the life of an organization to be fully involved in the biggest event in the world, opening a

Qatar Airways launched a special new livery on its 777s aircraft to celebrate the FIFA World Cup in 2022 Year of Success for Qatar DF Qatar Airways launched a special new livery on its 777s aircraft to celebrate the FIFA World Cup in 2022

new terminal and doubling our retail and F&B capabilities all at the same time. We thrive and grow through immense chal lenges and this year will be no different.”

The final phase of the expansion will begin January 2023 and is expected to increase handling capacity to 65 million passengers annually.

The future: FIFA and beyond

In November, a flood of excited travelers will head to Doha to celebrate the FIFA World Cup. As the official airline partner

of the competition, Qatar Airways is celebrating “the universal language of football by connecting global fans through music and innovation,” reads the September press release for the television commercial campaign.

The commercial features British rock band Queen’s We Will Rock You anthem, reflecting the airline’s belief that “sport is a universal language that unites fans and transcends verbal barriers.”

Fans can view the commercial through the airline’s virtual reality (VR) experience

Qverse. Onboard the Qsuite Business Class seat in the virtual world, users can watch the campaign via the inflight enter tainment screen and can play the Inflight Delight Game for a chance to win a FIFA World Cup travel package, inclu sive of match tickets, return flights and accommodation.

Meanwhile at HIA, QDF has perma nently expanded retail and dining offers in preparation. Retail space has increased from 90 outlets to more than 175 shops, expanding existing and introducing new

Qatar Airways invites fans to view its FIFA television commercial through the airline’s virtual reality experience QVerse. Users can win a FIFA World Cup travel package, including match tickets, return flights and accommodation Qatar Airways stirred up excitement in the lead up to FIFA World Cup Qatar 2022 with the “The Journey Tour,” an interactive bus tour that kicked off across Europe starting August 13, giving winners a chance to attend the tournament
Year of Success for Qatar DF

brands. There are 30 new F&B outlets, ranging from fast food to luxury restau rants and cafes, bringing the total number of options to 71 – ensuring to satisfy preferences of all travelers.

There are also VR experiences in the airport, such as the opportunity to play in a virtual World Cup stadium. QDF will also give passengers the ability to access fan zones to watch games, as well as other offers for existing and new brands.

Thriving and growing

While FIFA World Cup is an opportune time for QDF, Musleh says the retailer’s vision and goals span way beyond the cherished sporting event.

“We need to continue introducing innovation and world firsts. We must continue bringing experiences of the highest standard possible to our custom ers because this is what makes us unique. This is what makes us Qatar Duty Free,” says Musleh.

Musleh recalls words from Al Baker during the second annual Qatar Eco nomic Forum in Doha this June.

“He said, ‘Qatar Airways was there for people who had to travel during this period. They transited through HIA and shopped at Qatar Duty Free for the first time, and realized that our retail offering is far superior than anything they have ever tried,’” explains Musleh.

To this sentiment, Musleh adds, “Qatar Duty Free has learned to adapt to the most difficult situation, we are getting stronger with every crisis we have to endure.”

Barriers to success

Qatar Airways was the first global airline to receive the 5-Star COVID-19 Airline Safety Rating by SKYTRAX. HIA also has the 5-Star designation. While this does bring peace of mind to travelers, Musleh says the biggest challenge facing QDF and the travel and travel retail industry currently is that COVID is still lingering. He highlights the lack of consistency with testing in different countries as the main factor affecting travel, plus lack of staff in airports.

“We see people as they come through HIA and QDF spending and wanting to experience new things. One of the main accelerations from the past few years in the evolution of our passenger behavior is the desire to be presented with a seam less journey across all touchpoints – be it online or offline,” he explains.

Musleh tells GTRM that trying to focus on the customer journey without taking these access points into account is futile to gaining new customers and retaining existing ones. To support the future goals of Qatar Airways Group, QDF has devel oped an integrated e-commerce platform to meet expectations of travelers online.

“In challenging times, we do not stand still, we keep innovating in new store concepts, constantly adding new brands, making sure we upgrade our existing vendors, get exceptional deals for our consumers and train our teams to offer the best possible level of service,” says Musleh.

Qatar Duty Free at Hamad International Airport Hamad International Airport has received the title “Best Airport in the World” for back-to-back years
Year of Success for Qatar DF


Xavier Rossinyol, CEO, Dufry by JANE HOBSON
20 GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022 Q&A with Dufry CEO Xavier Rossinyol its global presence In this Q&A, Dufry’s new CEO Xavier Rossinyol answers questions about the retailer’s strategic plan moving forward and how it will strengthen its global presence, plus more details on joining forces with Autogrill

Dufry appointed Xavier Rossinyol as its new Chief Executive Officer (CEO) on June 1. Before this, Rossinyol had various management positions within Dufry from 2004 to 2015, including as Chief Financial Officer until 2012 and Chief Operating Officer EMEA and Asia through to 2015. Rossinyol also held the role of CEO at gategroup between 2015 and 2021, before returning to Dufry in March 2022.

Global Travel Retail Magazine (GTRM): How has the journey as CEO been thus far?

Xavier Rossinyol, CEO, Dufry: Dufry has an amazing team of experienced and dedicated professionals and over the past few months, I have met many colleagues of the whole organization and across all hierarchy levels to gather input from the local teams. This gave me the opportunity to take a deep dive into the company processes, analyze the operational and financial performance and learn about the current ways of working.

I also met with our key external busi ness partners such as landlords, brands and the financial community to learn how Dufry is seen from an external perspec tive and where we have opportunities to further improve the service to our customers. To this purpose, I also visited several companies in the Silicon Valley to see and learn about latest technologies and developments allowing to engage digitally with customers and identify shopping behaviors.

GTRM: What is the strategic vision moving forward with you as CEO?

Rossinyol: We have three main pillars. First, “Delivering the travel experience revolution” by bringing together travel

retail and travel F&B in one offering. An offering that has more contact points with travelers and provides a seamless and per sonalized experience, both in the stores and digitally.

Second, “Diversifying our geographi cal presence” including a focus on the highly attractive and resilient U.S. market, a focused strategy for Asia-Pacific and Chinese travelers, as well as an organic business development for the rest of the world.

Third, we want to “Further foster a culture of continuous operational improvements” across all our business activities to drive efficiencies and cost savings. This will allow us to generate sustainable cash flows while investing in innovation and growth.

Finally, we will incorporate ESG across all these pillars and make it an inherent part of our business. Empowering our already excellent team is key to deliver these goals, and together, we can gener ate sustainable long-term value for our customers, landlords, brand partners, and, ultimately, our shareholders.

GTRM: Dufry and Autogrill officially combined. You will lead as CEO of the combined Group – what does this role mean for you?

Rossinyol: I am very happy to be able to lead this transformative combination, which I am sure will reinforce the new Group strategy and will create sustain able long-term value for our customers, employees and all our other stakeholders. It will all be about the team – the spec tacular and strong teams from Autogrill and Dufry.

Combining the experience of both teams and their specific skills allows us to offer customers a new seamless travel experience and a new set of offerings, ser

vices and benefits. Creating the planned hybrid shops concepts will further inspire and drive the creativity of our employees, ultimately resulting in an increased career development and mobility opportunity for all our team members.

Moreover, I also want to highlight the importance of the support of Edizione and the Benetton family as new largest shareholders of the combined Group and the long-term strategic engagement they provide.

GTRM: How will the combined Group redefine the boundaries of the industry?

Rossinyol: Dufry is recognized as the global leader in travel retail and Autogrill is the global leader in travel related F&B. By combining our strengths to create one integrated global business we can redefine the travel experience and set new industry standards. Our combined entity will reach 2.3 billion travelers in over 75 countries through over 5,500 outlets in over 1,200 airport and other locations. We will be fully focused on developing new experiences, services and options that are centered on the needs of these billions of travelers worldwide.

GTRM: Dufry reported an impressive performance for the first half year categorized by continuous improvements and increasing sales trends in most global regions. What does this indicate about recovery and traveler trends?

Rossinyol: Dufry has seen strong demand for the resuming of travel following the easing of restrictions and the general improvement in the health situation, with our offer forming an inherent part of the overall travel experience. Custom ers have shown their propensity to travel, first domestically and then not only for leisure during these summer months, but GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022 21

also for business. This positive trend has seen contributions from nearly all regions globally. The fundamental drivers for cus tomers have remained largely consistent. Experiences, exclusive products, limited editions and promotions are a key part of our retail offer and the travel experience and keep driving increasing sales trends.

GTRM: While all regions overall did well, what regions were leading and why?

Rossinyol: We have seen the ongoing recovery of travel and markets such as in North and Central America, in the Carib bean and in some European countries because of increasing flight frequencies earlier in the year. Other locations have taken longer to reopen but have now also shown good recovery in the second quar ter and during the summer.

Looking more specifically at the regions, Europe, Middle East and Africa – Dufry’s largest region, which includes 32 countries – has shown a good perfor mance as travel restrictions have eased. We have seen the highest recovery levels in the Americas (North, South, Central and the Caribbean), which was driven

by the early resumption of travel and the pick-up of domestic and intra-regional flights with the U.S. We have also seen good levels of recovery in Brazil and Argentina, along with the reopening of the U.S. and Canada for transcontinental flights from Europe and elsewhere. The only region still lagging and taking longer to recover is Asia, due to the restrictive travel policies of some countries.

GRTM: In May, Dufry spoke about its customer research, which reveals demand for sustainable products, products for wellbeing, and exclusive, premium products. Which products and shop concepts have been introduced in response to this, and what has been the response from customers?

Rossinyol: We have certainly seen an increasing focus and interest from customers in sustainable products and in response, we have accelerated many aspects of our sustainability or ESG engagement. A good example is our “Sus tainable Product Identification Initiative.” This allows customers to easily identify sustainable products across all core prod

uct categories based on specific criteria including vegan, palm oil-free, plasticfree, refillable, recyclable, sustainable, and supporting local communities. So far, we have implemented this Sustainable Product Identification System in 171 shops across 128 airports worldwide.

Moreover, we have recently launched a new concept to showcase a collection of healthier and sustainable products branded “Mind, Body and Soul.” The first of these shop-in-shops located in Jordan and Brazil are nearing completion and a global rollout of the concept will then follow.

As wellbeing and sustainability are just two of the topics that are very much a pri ority for many travelers now, we are offer ing more options in terms of healthier, relaxing, nutritious products and energyfocused foods for health-conscious customers. This includes many brands across the core travel retail categories that are ethically sourced or proactively benefit the environment and are intrinsically linked with our ESG principles.

GTRM: What do you see as the future for Dufry in the next five years?

Rossinyol: We are confident with the prospects of our industry and our own ability to redefine the travel experi ence for our customers. In the short-term, the tourism and travel industry will still see some disruptions, we need to remain cautious and vigilant, but demand and the propensity to travel remain fundamentally strong. Clearly, the improved situation in terms of travel and global health is sup portive.

Therefore, our focus as a team, will be on reenergizing growth and addressing the long-term challenges of the industry and the group. We need to further capti vate our customers with our own initia tives but also work in close collaboration with our landlords, suppliers and other key partners.

I have discovered a strong sense of spirit and commitment for close col laboration across the whole Dufry team and likewise, our traditionally strong rela tionships with suppliers, landlords and other business partners are confirmed. This provides an excellent base to further evolve the company over the next five years and beyond.

Q&A with Dufry CEO Xavier Rossinyol

Increased spend-per-head drives Dubai Duty Free

Improved sales from the Middle East, Americas and Indian subcontinent sectors among others, are compensating for the lack of sales among the traditionally high-spending Chinese and Russian passengers

Historically, Chinese and Russian passengers have been key contributors to overall business for Dubai Duty Free (DDF), but with the ongoing ban on Chinese passengers traveling abroad due to COVID-19 and the war involving Russia and Ukraine, this is no longer the case.

The imposition of the Chinese travel ban has meant the contribution of this important consumer group, which accounted for around 18% of DDF’s departures sales in 2019, is almost zero (0.42% from January to March 2022).

Russian customers, however, are still playing their part. The number of flights from Dubai International Airport to Russia may have decreased from 35 to 18, but the spend-per-head of those traveling is high. Pre-conflict (January to February 2022) Russian consumers contributed 5% of total departure sales and in recent weeks they have still accounted for 4%.

Prior to this latest bout of major conflict there were eight flights to Ukraine from DXB, but unsurprisingly all flights have now been suspended.

Spend-per-head surge

“We have seen improved sales from the Middle East, Americas, and Indian subcontinent sectors to name a few, in addition to the strong UK and European markets,” says Colm McLoughlin, Executive Vice Chairman & CEO, Dubai Duty Free, tells Global Travel Retail Magazine. “Also, as further compensation [for the lack of sales among Chinese and Russian consumers] those other customers who are traveling are spending more. At one point, spend-per-head increased from US$32 to US$50 and is currently around US$47.”

Assessing the current state of the Middle Eastern duty free and travel retail market, McLoughlin says the level of confidence

Colm McLoughlin, Executive Vice Chairman and CEO, Dubai Duty Free

in travel and travel retail is strong and people are happy to fly for business or leisure.

“The Arabian Travel Market (ATM) exhibition has returned after a two-year break and the attendance has been fantastic. This shows a real desire to return to travel. We are experiencing a big growth in passenger numbers from Middle East countries including Iran, Israel and Syria.”

He adds, “Middle Eastern airlines’ traffic rose 245.8% in March compared to March 2021. Looking at January to March 2019 figures, the Middle East sector has contributed 18% of Dubai Duty Free’s total departure sales.”

Reflecting on 2021, McLoughlin describes this period as “a very good year for the operation” despite the challenges. Last year, DDF reported sales of AED3.563 billion (US$976 million) an increase of 40% year-on-year.

He says, “The entire team at Dubai Duty Free has worked hard to ensure a return to positive growth and to provide passengers with a first-class shopping experience at Dubai International Airport.”

DDF has resumed its operation at Al Maktoum International Airport and recalled 1,665 staff members who had been laid-off during the pandemic. This brings its total workforce to 4,200.

Changes were minimal in terms of purchasing trends in 2021, with the category split remaining the same. The top-five selling categories were perfumes, liquor, cigarettes and tobacco, gold, and electronics.

Perfume sales reached US$191 million and contributed 19.59% toward total sales. In the liquor sector, sales amounted to US$169 million, accounting for 17% of total annual sales. Tobacco sales reached US$95 million, contributing 10% toward total revenue, while sales in departures reached US$818 million (84% of total 2021 sales).

Boutique openings

Key commercial projects in 2021 included the opening of a forecourt Public Shop at Terminal 3, two 100-squaremeter Christian Dior boutiques in Concourses A and B and a 245-square-meter Louis Vuitton retail outlet in DXB Concourse B.

“We have since opened a Cartier boutique in Concourse B in February 2022 and the sales are doing extremely well,” McLough lin remarks. “All these boutiques are performing as expected and some above, as we have seen great results on luxury items includ ing fashion items and leather goods. Altogether, the boutiques now represent 10% of total Dubai Duty Free business in 2022.”

Overall, things have started well for DDF in 2022. Year-todate (January to August 28, 2022), sales have reached US$1.043 billion, an increase of 103.88% compared to the same period last year, but 18.45% lower compared to 2019.

McLoughlin comments, “Our priority is to continue driving sales by working closely with our suppliers and partners on great value offers. We will also continue with our refurbishment plans, which began last year [and included the opening of the luxury boutiques at Dubai International Airport] and have had a posi tive impact on our business.”

DDF will also continue building its digital presence, which McLoughlin says has resulted in greater engagement with cus tomers especially during the pandemic.

In addition, DDF will intensify its investment in marketing. “We will actively look at adding value wherever possible that will give Dubai Duty Free and Dubai the kind of exposure that will continue to keep us on the map and in turn attract travelers.”

Refurbishment program

The retailer is striving to complete its refurbishment and renova tion plan at DXB, with particular focus on Concourse B. This includes refurbishments in the two liquor shops (East and West) and the electronics shop.

“We have relooked at our brand/category allocation wherein various refurbishment projects have taken place to give our customers a better exposure, particularly in Concourse D. We have also allocated promotional space to brands like Guerlain, Glenmorangie, Givenchy and YSL to name a few.

“These dedicated promotional areas are unique, and we are highly optimistic they will help us continue the organic growth for Dubai Duty Free.

“In summary there are a number of ongoing projects, and we are continually looking at improvements throughout the retail operation.”

Key commercial projects for Dubai Duty Free in 2021 included the opening of a forecourt Public Shop at Terminal 3, two 10-squaremeter Christian Dior boutiques in Concourses A and B GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022 25

BAHRAIN DUTY FREE: More than a place to shop

With a thriving new terminal store and preparing to host the MEADFA Conference for the first time, Bahrain Duty Free discusses its successes of 2021 and the promising end to 2022 by JANE HOBSON

Brand new to Bahrain

Among all discussions happening in the duty free and travel retail industry, two topics stand out for Al Wardi ahead of November’s MEADFA Conference: the use of technology to enhance the customer experience, and driving recovery in the post-pandemic world.

Bahrain Duty Free is the official host of the November 27 to 29 event managed by the Tax Free World Association (TFWA). This year marks the first time the MEADFA conference will be hosted in the Kingdom of Bahrain.

“At Bahrain Duty Free, we consider ourselves as pioneers in the industry, especially within the MENA region. Partnering with MEAFDA and TFWA is a great opportunity for us to be involved in the discussions and debates that are most important to global travel retail right now,” Al Wardi tells Global Travel Retail Magazine in August.

Bassam Al Wardi, CEO & Board Director, Bahrain Duty Free

Al Wardi says the partnership helps solidify Bahrain Duty Free as an “innovative trailblazer” in duty free experiences and gives it the opportunity to showcase its world-class offering to the wider industry. It also brings chances to build on existing and foster new relationships with suppliers and partners who continue to play a vital role in its business.

Bahrain Duty Free plays a prominent role as a global travel retailer, and this fall it is due to host the MEADFA Con ference for the first time. One year after relocating to the new terminal at Bahrain International Airport, Bassam Al Wardi, CEO of Bahrain Duty Free, speaks to Global Travel Retail Maga zine about its successful expansion and opportunities to come.

“Just as TWFA and MEAFDA are committed to the exchange of identifying trends and building awareness for the global duty free and travel retail industry, we are equally dedicated to sharing with, and learning from, our peers in this fast-paced and exciting industry,” says Al Wardi.

Migration to new terminal

While hosting for the first time, Bahrain Duty Free is no stranger to welcoming travelers and providing unique hospitality experiences.

26 GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022  Bahrain Duty Free’s Sense of Place
Celebrate with us at our booth in Bay Village 11B at TFWA WE&C Cannes 2022

Last year, Bahrain Duty Free migrated its store to the new Departures terminal at Bahrain International Airport.

“We had the challenge – and opportunity – to build a best-inclass duty free experience. We needed to create an airport shop ping experience that was memorable and truly unique, and that is exactly what we have done at Bahrain Duty Free,” Al Wardi says. “We wanted to mirror and elevate the downtown shopping experience in our store.”

Bahrain Duty Free’s managing company Aer Rianta Interna tional (ARI) helped execute the vision for the new terminal.

“Their experience and expertise within the industry is unmatched, and they’ve helped us to go through with brand propositions, as well as independent promotional campaigns that align with our voice,” says Al Wardi.

The retailer’s main strategy was to create a custom sense of place and a luxury mall-style relaxed atmosphere. The new store, at 4,700 square meters, is more sophisticated and integrated, with bespoke and boutique brands alongside luxury labels and some high-street offerings.

With annual capacity at 14 million passengers, Al Wardi says traditional and core category shops, such as cosmetics, fragrances, tobacco and liquor, are performing well in the new space. Specially curated areas for apparel, accessories, and elec tronics, including an Apple authorized reseller, plus other new brands in beauty, fashion and jewlery, are also performing well with travelers who want a detailed sense of place.

“It can be easy to get complacent in retail — but we are con stantly striving to improve our shops and spaces,” says Al Wardi.

The new store heavily focuses on niche fragrances, a key shop ping trend and gap identified by Bahrain Duty Free’s internal research team. Among the new products available at Bahrain

International Airport are Xerjoff Universe, family-owned Ital ian perfume house Terenzi, and precious extrait parfums from British brand Thameen. These join the existing names such as, Cartier, Chopard, Hugo Boss, Al Zain Jewelry, Michael Kors and Rolex.

“This effort to source and launch more niche brands is an example of how Bahrain Duty Free aims to keep its offerings fresh and unique,” Al Wardi explains.

Digital screens with bright dynamic visuals are placed throughout high-traffic areas in the airport to capture passen ger attention. For in-store communications, the screens can be configured into multiple shapes and sizes. QR codes enhance customer engagement by delivering relevant ads to passengers and alerting them to deals.

“By providing essential information on brands and offers, we help to streamline their shopping and improve communications. They have better opportunities to relax and spend more of their wait time at Bahrain Duty Free shops,” Al Wardi explains.

In addition, the shop also has a cigar lounge where travelers can unwind while they shop, a VIP personal shopping lounge, and the traditional Souq Al Qaysariya designed like an Arabian marketplace that showcases products from local artists.

“The goal is to go beyond a place to shop. We endeavor to create a sense of place – from the layout of our shops to our highly personable customer service, to our unique product range and our use of technology to create seamless transactions for travelers. We have encapsulated the genuine warmth and essence of Bahraini culture in our store so that even if a traveler is only transiting through the airport, they will experience a true sense of Bahrain as we welcome guests with open arms and host them in the utmost comfort.”

The Bahrain Duty Free luxury shopping experience with Hermès
Bahrain Duty Free’s Sense of Place
Your best duty free experience

Modern and inventive planning

Another unique offering from Bahrain Duty Free is its Shop & Collect and Click & Collect lockers at Bahrain International Airports Arrivals, which Al Wardi calls proof of the retailer’s “modern, inventive planning.”

Bahrain Duty Free is one of the first operators in the region to implement the service, and it has so far proven a “huge suc cess,” he says.

The lockers can be used for free, allowing passengers to shop and pay in Departures before they fly and collect on return from travel. It helps eliminate inconveniences of weight constraints and carrying around extra items. The service is available for all passengers arriving in Bahrain post-travel. When they get to the Arrivals hall, they collect the item from a dedicated locker using a unique pin that is sent via SMS.

“The ease and simplicity of using the lockers has made the service incredibly appealing,” Al Wardi says.

Bahrain Duty Free’s take on recovery

With the successes, there remain some challenges in recovery, Al Wardi warns, noting that supply chain constraints, lack of availability of certain materials and responding to evolving traveler needs will impact how fast and to what extent the market will recover. Duty

The Shop & Collect lockers can be used for free, allowing passengers to shop and pay in Departures before they fly and collect on return from travel

He says Bahrain Duty Free’s commitment to offering excep tional value in both price and experience across all categories and accessibility to luxury items have been significant driving factors behind its post-pandemic success so far.

During the pandemic, the operator developed internal cloud systems, introduced digital payments and increased the frequency of its special offers and promotions to deliver a seam less and integrated duty free experience for its customers and service teams.

Bahrain Duty Free net profit in the first quarter of 2022 was up by +65.2% year-on-year.

Al Wardi attributes this to the retailer’s internal work to align its goals for the future, as well as Bahrain being one of the busiest hubs in the region connecting North America and Europe to Asia. The rise in affordable air travel and access to vaccines and testing also play a role.

“We are incredibly proud of the whole team and all the departments that have made it possible for us to deliver such strong results as we emerge from a global pandemic. This is a tes tament to the return of air travel passengers and their enthusiasm for a quality duty free shopping experience,” he says.

Bahrain Duty Free store at the new Departures terminal at Bahrain International Airport
Free’s Sense of Place
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MEADFA spotlights strong Middle East

Toulan says attendees can expect a major source of opportuni ties for business in the MEADFA region. Top speakers will be there to discuss the challenges with a concrete, holistic perspective.

MEADFA represents brands, distributors, retailers and air ports. It is not only a networking platform, but also a trade body, working as the voice of the industry in Africa and the Middle East. The conference aims to build momentum on challenges and opportunity in terms of advocacy, sustainability, sharing and rewarding best practices.

Sherif Toulan, President of the Middle East & Africa Duty Free Association (MEADFA), is brimming with optimism about the MEADFA Conference 2022 in Bah rain and speaks eloquently about how the Middle East association is evolving.

The three-day MEADFA Conference takes place November 27 to 29 at the Art Hotel & Resort, Bahrain. It is managed by the Tax Free World Association (TFWA) and hosted by Bahrain Duty Free.

“Our Association has become a strong and structured lob bying organization, serving and protecting our industry and its stakeholders in the region,” he says.

MEADFA is holding the event in Bahrain as part of its aim to highlight its members’ successess.

“Bahrain has an impressive new airport with state-of-the-art duty free shops. It deserves to be celebrated and highlighted to the rest of the industry. The Board unanimously voted for having this year’s conference in the Kingdom of Bahrain,” says Toulan.

MEADFA President Sherif Toulan tells Global Travel Retail Magazine about the upcoming MEADFA Conference in Bahrain in November 2022 and what is ahead for the Middle East & Africa Duty Free Association by MARY JANE PITTILLA
MEADFA Conference Heads to Bahrain

Strong industry recovery

Post-COVID, the region is booming and Toulan is adamant that “recovery is already here.”

“If we consider Airports Council International (ACI) annual traffic for 2021, we are impressed by African figures with 115 million passengers, up 49.4% from 2020. Middle East results are also good with 169 million passengers, an increase of 24.9% from 2020. Operations in Egypt, South Africa and Nigeria show a strong recovery.

“In the Middle East, especially in Dubai, from January to June the recovery has been 10 percentage points better than forecast. Dubai International Airport is back at 80 to 90% of pre-pan demic levels for footfall. Overall, summer 2022 is very good and in some countries our members are struggling with the surge of travelers,” Toulan explains.

He says Africa’s operations have recovered faster than the rest of the world and describes the Middle East as “above average” in terms of world recovery in 2022.

Noting several key challenges that remain, he cautions, “This summer is the best season we have ever had since 2019 but it is harder to satisfy our consumers’ surge in demand, especially due to the global logistics and supply chain disruption.”

Working for growth

Along with the MEADFA Conference, the Association is making moves to help ensure the continued growth of the business. Toulan says MEADFA is taking a holistic approach, focusing on:

1. Advocating and protecting the specificity/uniqueness of the industry via its dedicated Advocacy Committee and its relevant task forces chaired by MEADFA Board Member Rob Marriott.

The Advocacy Committee and its task forces are moni toring and engaging authorities to defend the industry. It is active in the Gulf regarding the track and trace of tobacco products and in Egypt because of the reduction in duty free allowances and all other challenges in the region.

“We support our members to ensure authorities consider our supply chain so they understand that domestic marketinspired regulations should not be implemented in duty free and travel retail,” he says.

2. Research and development. The Membership & Training Committee, chaired by MEADFA Board Member Roger Jackson, is constantly adding to the services, insights and opportunities that membership offers. This includes keeping members updated through its monthly communique and keeping the dialogue open between members and industry stakeholders via MEADFA's regular webinars and online events. It also conducts training seminars covering topics that the members vote for.

3. MEADFA seeks to ensure its members’ growth is sustain able, which is the goal of the Sustainability Committee, chaired by MEADFA Board Member Munif Mohamed.

4. Encouraging, highlighting and celebrating its members’ success. “The region is the fastest growing, with the biggest investments and results. Promoting and rewarding excel lence is the goal of our newly formed MEADFA Awards Committee, chaired by MEADFA’s Board Member Bernard Creed,” says Toulan.

Powerful partnerships

MEADFA continues to work with public and government enti ties. It has renewed its relationship with the Federal Tax Author ity in the UAE.

“We are very happy with this cooperation,” he says.

The Association works with customs agencies and ministries of economy and finance in every country where there is a need.

MEADFA is a Business Council member of COMESA (the Common Market for Eastern and Southern Africa). It also has a strong relationship with Airports Council International Africa and is a World Business Partner to ACI Africa.

Lastly, the Association initiated dialogue with the World Tourism Organization during its webinar in June 2022. GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022 33

Reconnecting in Cannes

Throughout summer 2022 the return to travel was more visible than ever before. IATA reports overall total traffic in June 2022 was up 76.2% compared to June 2021, and global traffic increased to 70.8% of precrisis levels. In Europe specifically, traffic rose 234.4% compared to June 2021. And this summer, IATA reports that industry-wide profitability in 2023 appears within reach.

With numbers up and the Tax Free World Association (TFWA) preparing for its second in-person World Exhibition & Conference since the start of the pandemic, the future is looking bright.

“Resilience is nothing without agility, and it’s essential that we’re nimble in our response to these changes,” TFWA President Erik Juul-Mortensen tells Global Travel Retail Magazine.

He says TFWA has planned many new opportunities at this year’s event, along with the return of expected favorites. As for the future, the Association has sustainability goals on the radar and a realistic view of post-pandemic challenges.

Erik Juul-Mortensen, President, Tax Free World Association Cannes will see the return of many networking events, plus some new opportunities PHOTO CREDIT: NATHALIE OUNDJIAN



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Confidence in Cannes 2022

Last year’s in-person event was slightly smaller compared to years prior, but things are normalizing in 2022. Juul-Mortensen says TFWA expects a “very healthy” number of exhibitors, buy ers, and attendees at the event, which runs October 2 to 6 at the Palais des Festivals in Cannes, France.

The total square meters of floor space reserved by exhibitors for 2022 has far surpassed that of 2021, says Juul-Mortensen. Several exhibitors are expanding their space with larger booths, which he calls a sign of confidence and willingness to invest in the event and the future.

“The scale of this year’s event won’t be on par with preCOVID levels, but it is certainly not far from that.”

The conference, exhibition, ONE2ONE meeting service, TFWA i.lab, and several social events such as the opening Get Together evening and the TFWA Lounge: After Work Session, offer delegates a plethora of networking and learning opportuni ties throughout the week. To maximize socializing opportunities for attendees later in the evening, TFWA is introducing a night time social concept on the Carlton Beach, named TFWA Lounge: Night-Time Session.

Focused on learning, TFWA’s workshops return with two ses sions, the Airport Forum and Innovation in Action, which take place on October 4 and 5, respectively.

Keeping with the Innovation in Action theme, TFWA i.lab returns as a physical exhibition featuring tech businesses in mobile and digital technology, data analytics, e-commerce, traveler research, sustainability and corporate citizenship. The ONE2ONE meeting service is open to all exhibiting brands, key buyers, airports, trade agents and i.lab participants on October 5 and 6.

“Given the considerable amount of interest there has been in the event this October from all industry players across the globe, both big and small, I strongly believe that TFWA World Exhibi tion & Conference will once again prove itself to be the most important industry event in duty free and travel retail,” says Juul-Mortensen.

TFWA outlook on the future

While confident about the trade fair, Juul-Mortensen expresses cautious optimism about the future of the industry. He notes that while recovery is clearly underway, repercussions from the conflict in Ukraine combined with supply chain challenges and airports and airlines being stretched beyond their capacities could put a strain on progress.

He calls it “frustrating” but says there are still reasons to be positive.

“The pent-up demand for travel is clearly there. It’s up to us to ensure that we, collectively as an industry, can get up to speed so that we don’t lose the momentum created by this demand.”

The gradual relaxation of travel restrictions and social distanc ing measures, as well as the resumption of travel in Europe and the US, coupled with the impact of “revenge shopping,” is also encouraging he says. In Asia-Pacific, many countries are taking a careful approach to reopening borders and international travel in this region will take time to bounce back, he adds.

TFWA has held conversations with brands, experts, industry leaders and industry disruptors to understand what is next. What is clear is the industry’s need for a digital transformation.

“During TFWA’s recent Beauty in Travel Retail webinars, we saw and discussed how the beauty sector has been leveraging the power of technology to create unforgettable, immersive experi ences for customers. The pandemic was a stark reminder that we must learn how to marry the physical with the virtual to stay connected with today’s customers, and consequently, futureproof our industry,” says Juul-Mortensen.

Another important topic in TFWA’s agenda is sustainability. Juul-Mortensen says he acknowledges there has been progress to improve the environmental impact, but that the collective effort of all industry players is necessary to truly make a sizeable impact.

“It is therefore crucial for our industry to come together and collaborate to devise viable solutions. We should focus on incor porating sustainable initiatives into our current business model to adapt to the new world,” he says.

Challenges in the post-COVID world

Issues with aviation capacity due to labor shortages and a lack of qualified, well-trained staff have been slowing growth in some parts of the world during the first half of 2022, Juul-Mortensen says. In travel retail, retention of good, well-trained staff is another major issue, he says, adding that research suggests that the role of sales staff is even more important than it was preCOVID, making it essential to solve the problem.

In July, m1nd-set revealed that shopper demographics have evolved significantly over the past five years, including shopping drivers, purchase planning and the level and importance of staff interaction.

“Sales associates have a significant impact on the decision to purchase and this varies considerably by customer segment, as well as by region. The research reveals that the impact of the interaction has increased considerably in the wake of the pan demic as travelers set to the skies again,” reads the report.

When asked about TFWA expectations to return to 2019 sales levels, Juul-Mortensen concludes, “We can’t expect to get back to 2019 levels until global air traffic returns to full strength, and lat est IATA figures suggest that global air traffic will recover by the latter half of 2023. Positively, spend per passenger has been high since last year, and although we can’t rely on this continuing, it bodes well for the future.”

Erik Juul-Mortensen, President, TFWA says the Association expects a “very healthy” turnout at the 2022 event in Cannes next month PHOTO CREDIT: NATHALIE OUNDJIAN
TFWA Event Preview and Outlook



This spring Iraq Duty Free (IDF) opened its first-ever Downtown Duty Free Shop in the center of Baghdad. Ahmed Kamal, Chairman at IDF, tells Global Travel Retail Magazine the opening marks the completion of phase five of the retailer’s larger expansion plans.

Official opening

His Excellency the Minister of Trade Dr. Alaa Al Jubouri, Kamal, and other officials attended the opening of Downtown Duty Free Shop on May 17. Located in bustling Baghdad, the store is attached to the Central Markets Shopping Mall, which is a standalone building part of the Ministry of Trade.

Instead of being restricted to the air port, the downtown shop gives all travel ers coming or returning to Iraq, including foreign nationals and the diplomatic core, the opportunity to make purchases

within 30 days of their arrival. To shop, local nationals must show a copy of their passport entry stamp and foreigners must present their passport.

At the opening event, Kamal empha sized that the purpose of Downtown Duty Free Shop is to offer the same authentic products across all categories that travel ers love and trust in IDF’s airport stores. At Baghdad International Airport, Basra International Airport and Sulaymani yah International Airport, the retailer is known for its wide range of luxury brands, including Cartier, Bvlgari, Burb erry, Gucci, Hermès and others.

Plus, Kamal adds, IDF granted sup pliers a larger space for their brands at Downtown Duty Free Shop since the store is bigger, bringing more variety to shoppers.

The downtown store will also mimic promotions and activities that take place in the airport shops.

Beaming in Baghdad

Just a few months after the opening, Kamal says IDF is already beaming with success in Baghdad.

“Travelers, including embassy staff and security companies, are visiting the shops after a day or two from their entry to Baghdad for their purchases. Sales are proving to be growing,” he says. “It is showing sales figures in the first quarter of business that are above and beyond expectations.”

Kamal attributes this to IDF’s work to promote the new location ahead of its opening.

Iraq Duty completes phase five of its expansion plan with downtown Baghdad store and discusses plans to open more in major Iraq cities in 2023
Ahmed Kamal, Chairman, Iraq Duty Free The storefront of Iraq Duty Free’s Downtown Duty Free Shop in Baghdad, which opened in May

Special leaflet advertisements are distributed to all Arrivals passengers at Baghdad Airport, and to Departures passengers at Basra and Sulaymaniyah. Banners are displayed at Arrivals and Departures shops in all three airports, encouraging travelers to visit the new location. And, e-mails and leaflets have been distributed to the diplomatic core and security companies in Baghdad, Kamal explains.

The expansion speaks to the state of recovery in the region and globally. IDF reports it closed 2021 with a 72% turnover of what it achieved in 2019. In 2022, IDF is aiming for a very ambitious target with a 10% increase goal in sales on 2019 – while simultaneously opening the new stores and renovating existing shops.

More expansion to come Kamal says the intention is also to expand stores to all major populated cities throughout Iraq.

“New locations are in the pipeline. We are targeting areas where we do not have airport shops and areas that are known for having frequent travelers who want to shop known brands in perfumes or other categories,” he says, adding that locations will be disclosed when the time is right.

Any new stores are subject to nego tiations with the Ministry of Trade to finalize terms and locations in the selected cities, he explains.

With phase five complete, the retailer has already moved on to phase six of its expansion plan. IDF is renovating the store at the International Airlines Ter minal at Baghdad International Airport, known as Babel, says Kamal. The update should be complete by the second quarter of 2023.

He says IDF is in discussion with sev eral niche brands and private collections with existing partners to list some “very sought after” news brands, specifically in cosmetics.

Kamal says IDF would be unable to carry out its expansion without the encouragement and dedication of the Iraq population and government. “It is adding courage to our vision,” he says.

The alcohol selection at the Downtown Duty Free Shop Confectionery brands at the new Baghdad store include Toblerone, Godiva, Nestlé, Ferrero, Lindt, Mars and more The fragrance offering at the Downtown Duty Free Shop in Baghdad
Iraq DF Beaming in Baghdad
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HARMONIZING DUTY free allowances

Global Travel Retail Magazine sat down with José Luis Donagaray, Secretary General at Asociación Sudamericana de Tiendas Libres (ASU TIL), to discuss the state of travel retail in South America and ASUTIL’s upcom ing Encuentro Border Shops conference (EBS).

The conference will be held Novem ber 8 to 10 at the Hyatt Centric Hotel in Montevideo, Uruguay. Registration is now open and the theme of the in-person event is “35 Years of the Border Duty Free Shop.” According to Donagaray, this year’s

conference destination has been selected to celebrate the 35th anniversary of the implementation of the Uruguayan duty free border store legislation.

Donagaray explains that the confer ence will cover changes made to Brazil ian law and the move to harmonize duty free allowances across the region. Due to the spend afforded to Brazilian travelers entering via land border ($US500), he says the Association’s strategy for new store openings along land borders is to locate them in the largest cities where there is a high concentration of Brazilian

In an interview with José Luis Donagaray, Secretary General, ASUTIL, Global Travel Retail Magazine gets the latest updates on the Association’s current objectives and upcoming conference
From left to right: Gustavo Fagundes, ASUTIL President, Enrique Urioste, ASUTIL Vice President and José Luis Donagaray, ASUTIL Secretary General

travelers. ASUTIL is also working to boost the duty free allowance for air travelers in Uruguay and Argentina to match that of Brazil (US$1,000). With this in mind, it is focusing on the electronics category and the overall product mix available.

“Duty free has a direct relationship with tourism. The idea is to show a lot of

hard data that will compare what has happened in the first six months of this year versus the first months of 2019, before the pandemic. There is a lot to share,” he says during the video interview.

Attendees can also expect to receive relevant and up-to-date political and

economic news and learn more about Donagaray’s expectation that four new land border stores will open in Brazil before the end of this year. Echoing industry professionals across the channel, Donagaray listed networking as one of the greatest assets of the event. He adds it is an opportunity for suppliers to travel to observe operations in Brazil, Uruguay, Argentina, Chile and other regional countries.

Following an opening cocktail on the first day, the event will consist of confer ence sessions, networking opportunities and a gala dinner on day two; plus addi tional conference sessions and a brunch on day three to conclude the conference.

“The Encuentro de Border Shops is a unique opportunity for suppliers and operators to network and Wednesday afternoon (November 9) will be dedicated to this opportunity,” says Donagaray.

On a separate note, Donagaray also shares that the annual ASUTIL Confer ence will return – for the first time since 2017 – in early June 2023. The location is still to be announced. GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022 43

Having noticed an increase in the desire for small, appealing and compact products, Leong points out that consumer-led innovation is even more applicable to the travel retail channel

Consumer-led innovation in beauty travel retail

Gary Leong, Global Travel Retail Director at FOREO, shines a light on its leading proof data, trend observation and product development practices

As one of the largest and most popular beauty tech brands in the world, FOREO has devel oped a series of cutting-edge products and revolutionized the cosmetics indus try. Referred to online as the “TESLA of Skincare” and a champion of TikTok (according to its website, FOREO is the number one most viewed skincare tool on the social media network globally), the Swedish powerhouse cultivates innova tion, education and leadership at all levels.

Considering the above, Global Travel Retail Magazine contacted FOREO to learn more about consumer-led inno vation and how the beauty category pioneers tech innovation, as a result of its loyal consumer base. According to Gary Leong, Global Travel Retail Director at FOREO, product innovation at the com pany comes from two directions: in-house

Product innovation at the company comes from two directions: in-house ideas (alongside technology development) and market and trend observation
44 GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022  Product Development and Innovation

ideas (alongside technology development) and market and trend observation.

“[At FOREO] it is crucial that during the development phase we explore all options creatively and acquire proof of feasibility. Proof data is vital for this and we use insights from social media and online shop systems to receive feedback and understand the customer needs and desires. We also rely on our own Cus tomer Care data. At the heart of it, data is the business – and we build based on the data that we have accumulated to perfectly tailor our next product to the desires of the market,” says Leong.

Elaborating on the role that social media plays in the brand’s consumerled innovation, Leong notes that it goes beyond marketing, sales and customer service. He says social media trends impact FOREO’s product development lifecycle and help to determine which products FOREO believes are necessary for future development. Keeping in mind the fickleness of social media trends, it’s key to in a way, predict future trends.

“With the astounding growth of e-commerce over the last couple of years, catering to a social media-based audi ence is definitely a profitable avenue. It’s critical to understand how social media is enabling innovation since e-commerce and social media growth complement one another. Then, you can develop solutions to fill in any gaps and increase business value,” explains Leong.

Sourcing activities & phase one innovation

When it comes to processes and guide lines, sourcing activities are a main

component of product development at FOREO. The team relies on close commu nication with designers and engineers so that sourcing experts clearly understand the requirements of core components. Subsequently, Leong says, when purpose and function is fully understood, a wide overview of potential alternatives – or even better – replacements with surplus advantages can be found.

During the first phase of innova tion, FOREO establishes a start-up feel, embracing open minds, a high level of creativity and as many different opinions from all levels of employees as possible. Once a concept has been validated, the team moves toward “the conservative route”: proper planning alongside R&D and manufacturing, with all that the mod ern industrial set-up has to offer – from high-tech design tools to an efficient QM system.

Building a consumerfocused culture

Having noticed an increase in the desire for small, appealing and compact prod ucts, Leong points out that consumer-led innovation is even more applicable to the travel retail channel. Without compromis ing on quality, these product traits are the ones more likely to pique the interest of travel retail customers. Considering this fact, it works well for FOREO that these traits are desirable across the board, trans lating into a boost in both sales and social media coverage.

When asked how FOREO has evolved from practicing consumer-led innovation to building a consumer-focused culture in travel retail, Leong says this type of cul

ture is key to ensuring a strong customer experience – and a strong customer expe rience can’t be attained without a culture that is based on the needs of the client.

“A customer-focused culture puts the customer at the center of everything the company does – above profits, margins and sales. A model that prioritizes the needs of the consumer is far more sustain able since it is designed to adapt to their changing preferences.

“In tune with this, FOREO frequently launches travel retail exclusive experi ences, sets and discounts that can’t be obtained via the usual retail channels. Combined, these prongs allow us to cater specifically to the travel retail customer and their particular set of requirements. With our headquarters in Shanghai, we are able to put our ear to the ground and determine the next trend or the next most desirable item in line with travel retail consumption. By doing so, our travel retail sets are some of the most desired items released each year,” he adds.

In terms of providing experiences for the customer, FOREO recently conducted a closed-door beauty masterclass for Lotte Duty Free VIPs. Targeting a demographic directly allowed FOREO to seek out new customers using a grassroots approach, which increases the chance of repeat pur chasing. Additionally, the brand regularly experiments with pop-up activations and limited edition versions of its hero prod ucts via the travel retail adding an element of exclusivity.

FOREO recently conducted a closed-door beauty masterclass for Lotte Duty Free VPs GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022 45

An augmented anagram of Prada, PARADOXE is a name that is playful in essence, an intention to reconsider and reconstruct . It is an invitation to redefine the relationship between a woman and herself through the dynamic dialogue within every one of the dimensions that make her who she is PRADA PARADOXE is a celebration of the multi dimensional self exploration and expression in perpetual evolution: a woman who is never the same , yet always , uncompromisingly herself

An augmented anagram of Prada, PARADOXE is a name that is playful in essence, an intention to reconsider and reconstruct It is an invitation to redefine the relationship between a woman and herself through the dynamic dialogue within every one of the dimensions that make her who she is . PRADA PARADOXE is a celebration of the multi dimensional self exploration and expression in perpetual evolution: a woman who is never the same , yet always , uncompromisingly herself

An augmented anagram of Prada, PARADOXE is a name that is playful in essence, an intention to reconsider and reconstruct It is an invitation to redefine the relationship between a woman and herself through the dynamic dialogue within every one of the dimensions that make her who she is . PRADA PARADOXE is a celebration of the multi dimensional self exploration and expression in perpetual evolution: a woman who is never the same , yet always , uncompromisingly herself



An embodiment of the Prada woman, the British actor , activist , and artist Emma Watson epitomizes modern femininity, rewriting its codes for a new generation.


Her directorial debut is an empowered celebration of what it means to be a living paradox ; the film is her personal expression and perspective, an insight into her many differentiae in their unexpected symbioses . At its core , she orchestrates a dynamic symphony celebrating her every dimension the artist , the activist , the actor , the woman at once alive and vibrant within her , set free in the spirit of indefinability

An embodiment of the Prada woman, the British actor , activist , and artist Emma Watson epitomizes modern femininity, rewriting its codes for a new generation

An embodiment of the Prada woman, the British actor , activist , and artist Emma Watson epitomizes modern femininity, rewriting its codes for a new generation.

Her directorial debut is an empowered celebration of what it means to be a living paradox ; the film is her personal expression and perspective, an insight into her many differentiae in their unexpected symbioses At its core , she orchestrates a dynamic symphony celebrating her every dimension the artist , the activist , the actor , the woman at once alive and vibrant within her , set free in the spirit of indefinability.

Her directorial debut is an empowered celebration of what it means to be a living paradox ; the film is her personal expression and perspective, an insight into her many differentiae in their unexpected symbioses . At its core , she orchestrates a dynamic symphony celebrating her every dimension the artist , the activist , the actor , the woman at once alive and vibrant within her , set free in the spirit of indefinability.

C1 Internal use

ICONIC REINVENTED Celebrating sensuality notes flower signature an An garde, Master Maisondieu direction sensory Internal use ICONIC REINVENTED Celebrating sensuality notes flower signature an intimate An unexpected garde, Master Maisondieu direction sensory
C1 Internal



Celebrating multidimensionality in an interplay of feminine sensuality through contrasting expressions . With dominating notes of neroli and jasmine , the timeless florality of a white flower bouquet is twisted with an avant garde olfactory signature of Ambrofix™ and Serenolide™ accord to create an intimate and enduring trail led by a vibrant warmth An unexpected fragrance that is both timeless and avant garde, the floral ambery signature is blended by Givaudan Master Perfumers Nadège Le Garlantezec , Shyamala Maisondieu and Antoine Maisondieu under the creative direction of Miuccia Prada and Raf Simons to reveal new sensory experiences from iconic ingredients

Celebrating multidimensionality in an interplay of feminine sensuality through contrasting expressions . With dominating notes of neroli and jasmine , the timeless florality of a white flower bouquet is twisted with an avant garde olfactory signature of Ambrofix™ and Serenolide™ accord to create an intimate and enduring trail led by a vibrant warmth

An unexpected fragrance that is both timeless and avant garde, the floral ambery signature is blended by Givaudan Master Perfumers Nadège Le Garlantezec , Shyamala Maisondieu and Antoine Maisondieu under the creative direction of Miuccia Prada and Raf Simons to reveal new sensory experiences from iconic ingredients



The iconic triangle logo is reinvented once again into an askew yet powerfully grounded flacon that is designed to rest on its side As the house’s very first refillable fragrance, PRADA PARADOXE reconciles creativity and responsibility; the entire range is refillable to allow for less packaging material , while the glass bottles are designed to limit their weight and use of glass . A single 50 ml bottle and the 100 ml refill help avoid the use of 40 % less materials in total as opposed to three 50 ml bottles including 29 % of glass, 67 % of metals , 46 % of plastics and 39 % of cardboard. . in

The iconic triangle logo is reinvented once again into an askew yet powerfully grounded flacon that is designed to rest on its side As the house’s very first refillable fragrance, PRADA PARADOXE reconciles creativity and responsibility; the entire range is refillable to allow for less packaging material , while the glass bottles are designed to limit their weight and use of glass . A single 50 ml bottle and the 100 ml refill help avoid the use of 40 % less materials in total as opposed to three 50 ml bottles including 29 % of glass, 67 % of metals , 46 % of plastics and 39 % of cardboard.

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Internal use to and

As the duty free and travel retail industry continues to come to terms with the devastating impact of COVID-19, Lotte Duty Free (Lotte) is doing all it can to prepare for what it hopes will be a bright future.

Speaking candidly to Global Travel Retail Magazine, Kap Lee, CEO, Lotte Duty Free, admits the industry is still struggling and that the retailer is doing all it can to be able to capitalize once things improve.

“The reopening of our latest Tokyo Ginza [downtown] store in Japan in early January means we have finally reopened all our overseas outlets that were temporarily closed due to the pan demic,” Lee remarks.

“In early May, we opened a new downtown store in Sydney [Australia] and will begin operating two more downtown stores in Vietnam [Da Nang and Hanoi] by the end of the year.”

Lotte opened its new three-level 3,000-square-meter Sydney downtown retail space in May

Lotte is also running seven shops and one pop-up outlet at Singapore Changi Airport. A grand opening for the pop-up store will take place in the first half of 2023.

“We will continue reviewing RFPs for any duty free conces sions that meet our standards,” adds Lee.

Sydney downtown opening

Reflecting on the opening of its new three-level 3,000-squaremeter Sydney downtown retail space in May, Lee hailed “the big market potential” of Australia’s downtown duty free market.

“We believe that pioneering the nation’s downtown duty free market will ultimately give us predominance of the entire [Aus tralian] travel retail market, where sales come from operations at major airports such as Sydney, Melbourne and Brisbane.”

Closer to home, domestic sales from Korean customers have increased dramatically. This follows the easing of South Korea’s travel restrictions from March.

Lotte subsequently implemented several initiatives aimed at domestic customers. Among them, was an agreement with online travel and leisure platform Klook. The purpose of the Memorandum of Understanding, which came amid a rise in demand for outbound travel, was to provide benefits for Koreans traveling overseas.

“Klook is an e-commerce platform that provides a booking service offering discounted tickets, tours, and experiences in more than 1,000 cities. The Memorandum of Understanding will enable Lotte and Klook to create synergies through cross-mar keting toward respective customers,” explains Lee.

A Lotte Duty Free shop at Singapore Changi International Airport
We will continue reviewing RFPs for any duty free concession that meets our standards.”
Kap Lee, CEO, Lotte Duty Free
Interview with Lotte DF CEO

On a separate note, the retailer has launched LDF Pay to reduce the burden of high consumer prices on domestic shoppers, which are due to the high Korean Won-US Dollar exchange rate.

According to the retailer, this new digital payment platform was the first online pay-per-view alternative to existing prepaid cards and can be used for online and offline purchases.

Following the decision of the Japanese government to ease entry restrictions in June, domestic shoppers in Lotte’s down

town stores have been offered Tokyo/Osaka travel packages on a first-come first-serve basis.

Korean domestic shoppers are also benefitting from the scrap ping of the US$5,000 allowance at the country’s duty free stores.

“We provide huge benefits to those spending more than US$5,000 dollars,” Lee acknowledges. “With the exemption limit [for inbound travelers] set to increase from US$600 to US$800, we will come up with customer benefits to lure shoppers into our stores.”

An interior shot of the new Sydney, Australia, downtown store GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022 51
Artwork from world-renowned artists is on display at Shinsegae Duty Free's Myeong-dong store
The reopening of our latest Tokyo Ginza [downtown] store in Japan in early January, means we have finally reopened all our overseas outlets that were temporarily closed due to the pandemic.”
Lotte Duty Free has vowed to continue reviewing requests for proposals for any duty free concessions that meet its standards
Interview with Lotte DF CEO

New opportunity

Meanwhile, the South Korean government’s January decision to permit online sales of Korean domestic duty free products to overseas residents without them having to visit the country was viewed by Lee as a breakthrough during the pandemic.

“Selling [domestic] duty free products online to overseas residents is an unprecedented business model,” he emphasizes. “It will take some time to make a profit from this.”

According to Lee, this new online cross-border channel not only offers best-selling categories such as cosmetics and fashion, but also albums and related goods from world-renowned K-pop artists. “It will offer an expanded range of brands, support other languages and provide delivery services to other countries,” he explains.

Lotte Duty Free is not the only South Korean superpower to launch a cross-border e-commerce platform. Shinsegae Duty Free, which reported a 60% sales increase in Q1 compared to the previous corresponding period last year, introduced a similar e-commerce concept in early July.

According to the company, the online Shinsegae Duty Free Mall offers two languages and 3,000 Korean products across K-beauty, fashion, and health functional foods.

A Shinsegae Duty Free spokesperson tells Global Travel Retail Magazine, “In order to support the duty free industry, the Korean government has permitted the online sale of duty free products to foreign customers from July.

“Foreign customers can now purchase Korean duty free prod ucts online without visiting Korea. Accordingly, Shinsegae Duty Free sells products from domestic brands via online malls.”

Competitive edge

Standing out among its competitors is priority for Shinsegae, indicates the spokesperson.

“Shinsegae Duty Free is trying to give customers a reason to visit. We are reorganizing our stores with brands, which are ahead of the trend. At the Myeong-dong store, various pieces of artwork from world-renowned artists such as Carsten Höller are always displayed, and the work of new artists is displayed in a separate space called Art Space.

In addition, various events are being held including raffles for limited-edition sneakers and performances from live singers via the online malls.”

For the remainder of the year, Shinsegae Duty Free will con tinue communicating with customers through various channels and reorganizing its marketing, logistics and merchandising to lay the foundation for future growth.

The eventual return of high-spending Chinese travelers to its downtown and airport stores once travel restrictions are lifted will certainly be welcomed by Shinsegae among others.

“In preparation for the return of Chinese customers, we are reorganizing the relevant signage [in our stores] and other important information, while communicating with Chinese consumers through various channels.”

On the future of the channel in South Korea and beyond, Lotte Duty Free’s Lee concludes, “Travel retail is likely to be the last industry to recover from the pandemic, meaning that the whole industry will continue to suffer for the next couple of years.

This, however, does not mean we can sit back and do nothing until the pandemic ends. To keep pace with changes in market conditions, Lotte will continue to reorganize its offline business through overseas expansion and digital transformation.

The latter will be achieved by online expansion via various e-commerce platforms and pioneering metaverse duty free business.”

Shinsegae Duty Free reported a 60% sales increase in Q1 2022 compared to the previous corresponding period last year GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022 53


According to Jackie McDonagh, General Manager at ARI North America, recovery in Barbados is in line with the rest of the ARI estate

Across the travel retail experience, Aer Rianta International (ARI) is known for prioritizing sense of place and capturing the essence of each ARI location to create special moments in-store. The duty free operator relies on store design and product offering to reflect the diverse and colorful local culture and cuisine. Leading up to TFWA Cannes, Global Travel Retail Magazine connected with Jackie McDonagh, General Manager, ARI North America, to learn more about ARI’s presence in Barbados and its role in the revitalization of the capital Bridgetown. Elaborating on ARI’s year-on-year performance across retail categories in

Spirits and confectionery and fine foods have been performing especially well at Runway Duty Free Jackie McDonagh, General Manager, ARI North America

Barbados compared to its other locations around the world, McDonagh responds that broadly speaking, recovery is in line with the rest of the ARI estate. Mainly driven by gifting, self-treating and the growing desire for a sense of place among consumers, spirits and confectionery and fine foods have been performing espe cially well at Runway Duty Free.

Supporting local & paying homage Described as a small island that is burst ing with local talent and well known for the hospitality of its locals, its beautiful beaches and “superb rum,” ARI is cur rently working on a new island feature at each of its three stores. From locally

Rouge Maison a place in retail history

Considering an influx of investors, the restoration of its Historic District and the reopening of the largest refinery in the Caribbean, St. Croix has been growing at a faster rate than the rest of the U.S. Virgin Islands (USVI).

According to Rouge Duty Free (RDF), its approach to helping reclaim the island as a major destination for tourism and duty free shopping focused on driving engagement with the local market via a radio campaign, social media promotion, print advertising and in-store events, as well as catering to visitors.

At the end of 2020, RDF opened its flagship store in St. Croix, marking its second store in the USVI. With two anchor brands, Mont Blanc and Furla, the store is located near Christiansted National Historic Site at Orange Grove Shopping Center. By the end of its first year, the store ranked among RDF’s top three locations in the Caribbean.

Following the success of the St. Croix flagship, RDF established Rouge Maison. The mansion-style building and historical site is a 2500-square-foot retail space that showcases luxury brands and designer goods across retail categories, scenic views and Bistro Rouge. The second level of the Maison is a multi-suite Airbnb. Following a soft launch of the Maison in July, RDF expects the Bistro to open fully to tourists this fall.

Looking ahead, RDF tells Global Travel Retail Magazine that it has acquired a building in Frederiksted, St. Croix, which will become its next store location on the island. The operator says it is also on target to open the First Creed Boutique in St. Barth, as well as establish stores in Western Caribbean, and Mexican Riviera and Quintana Roo, Mexico. Plus, RDF will open two stores in Tulum, Mexico, this fall. Located close to the archeologi cal region of Aldea Zama, and at Hunab Lifestyle Center in Aldea Zama, separately, the pair will serve as the only perfumeries in town.

A look at RDF’s presence in the Caribbean travel retail market GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022 55

grown produce to locally flavored wines and locally designed skincare products, ARI pays homage to the region.

Beyond offering the world’s first African and Caribbean rum, Equiano, ARI works closely with leading local rum producer Mount Gay, which has been in operation since 1703. Mount Gay is worldrenowned for its vast collection of aged rum including premium selections Port Cask Expression and XO: Peat Smoke Expression. The duty free operator also highlights Doorly’s range of aged rum, as well as Bajan 1966, which are distilled locally at RL Seale Foursquare Distillery.

Naming local brands Agapey and Caribbean Confectionery Co., McDonagh says local confectionery is another sig nificant category for ARI at Runway Duty Free. These brands continue to perform well along with regional items such as Tortuga Rum Cakes and Visual Impact Rum Balls.

Tourism is key As published online, ARI can claim another first as it has become the first travel retailer to feature in the Global Thought Leader series. When asked how its presence in the Caribbean contributed to the success of its global operations – and this achievement –McDonagh refers to the importance of the tourism industry. As one of ARI’s more seasonal locations, with travel peaking during the winter months of November to April, and again in July and August, she notes that cruise ship business is central to operations in the region.

“Barbados relies heavily on the tourism industry. Inbound passenger numbers grew in Barbados by 27.7% between 2014 and 2019, with the UK being the primary driver. The impact of COVID-19 on inter national travel was felt strongly here, and since travel restrictions have been lifted there has been a renewed effort by local tourism officials to revitalize the sector.

“As international travel continues its growth toward pre-pandemic levels, we expect the recovery at Runway Duty Free to continue to be in line with growth across the overall ARI estate. To date, penetration has been driving an increase in PAX, with more passengers being converted into customers. This is all posi tive news as we look ahead to the winter season,” says McDonagh.

A sensorial journey by Molton Brown

TAIRO International (TAIRO) recently launched Molton Brown in the Carib bean and Mexico travel retail markets. A specialist in the distribution of perfumes and cosmetics across the region’s TR channel, the operator is shining a light on the iconic British brand.

TAIRO generated brand awareness via window animations, personal ized backwalls and gondolas. Accordng to TAIRO’s CEO Robert Bas san, its goal was to “paint the islands Brown, Molton Brown.” In addition to point-of-sale animations, TAIRO led its clients, beauty advisors and consumers on a sensorial journey. During in-person training sessions and in-store events, the team organized “an experience for the senses” with stations dedicated to sampling Molton Brown’s collection of hand soaps, body washes and lotions. The brand activation offered direct contact with the product ranges, as well as the opportunity for beauty advisors to explore the benefits of the line.

Regarding regional performance, Basan says the Caribbean travel retail market has seen a major uptick in 2022. This has been spurred by the return of cruise ship business and pent up demand from North Ameri can consumers.

Celebrating a series of Fall 2022 launches acoss the Caribberan and Mexico, TAIRO continues to promote luxury living. The operator is also showcasing collections by Yves Saint Lauren, Gucci, Burberry and others. Notably, TAIRO joined forces with Sears Mexico Travel Retail to create a floral fantasy story for consumers via an interactive QR code displayed in floor merchandisers.

During in-person training sessions and in-store events, TAIRO organized “an experience for the senses” with stations dedicated to sampling Molton Brown’s collection of hand soaps, body washes and lotions
Caribbean Update


Learn more about our sustainability agenda and how we develop sustainable business solutions in stand alone stores in airports.

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Lagardère Travel

Lagardère Travel Retail (Lagardère TR) and HWH, renowned Dubai-based inde pendent restaurateur, have partnered and incorporated HWH’s food and beverage portfolio at Dubai Inter national Airport. In addition to HWH’s diverse F&B portfolio at the airport, which includes 13 restaurants, Lagardère TR has introduced a pipeline of opportu nities into its operations. The combined business is named Lagardère-HWH Travel Retail.

Featuring key brands such as Fix, Roti Bhai, Treehouse Juicery, Flour + Stone, Tranzeet and Grabb’it, the portfolio includes a broad mix of F&B concepts. Pre-acquisition, Lagardère TR operated the bespoke concept Daily DXB at Dubai Airport, a new generation food hall with an immersive street food atmosphere.

The integration represents a signifi cant leap in Lagardère TR’s ambition to further strengthen its alliance with airport

Fix at Dubai International Airport, Concourse B Flour + Stone at Dubai Airport, Concourse A
According to Vadim Motlik, CEO UAE, Lagardère Travel Retail, the acquisition of HWH at Dubai International Airport by the F&B operator is a “game changer”

landlord Dubai Airports Company and consolidate its foodservice footprint in the Middle East region. As part of the deal, which closed at the end of March 2022, HWH’s founder and management team are continuing to provide leadership and help drive the combined business at the airport.

“We started the merger immediately. With the support of HWH, both teams prepared in advance and were able to complete the switchover to Lagardère’s best-in-class POS and SAP systems on April 1. All staff had been trained and the master data prepared ahead of the switch to make it a success. We were effectively one consolidated team, working on the same systems the day after the transac tion. Beyond systems, such an integration is also very much a matter of people and adaptation to new ways of working. The team has since then become familiar with the new processes and we consider that the integration is indeed complete.

“We are very proud of the Daily DXB, which perfectly complements the iconic portfolio of HWH. All units are now managed under one team, which will continue to spare no efforts to come up with innovative concepts that are inspired by Dubai’s uniqueness, its heritage and history, but also the way it is open, sophis ticated and forward-looking,” comments Vadim Motlik, CEO UAE, Lagardère Travel Retail.

New technologies & the consumer experience According to Motlik, Lagardère TR and HWH share an interest in “disrupting the transient passenger dining experience” –and this shared philosophy contributes to the success of its collaboration.

Lagardère TR has partnered to imple ment innovative solutions such as Grab, Too Good To Go, Visibilishop and Pay My Table to enhance the consumer experi

ence. Similarly, HWH delved into plat forms like CarryOn, H Market and Byte. Motlik explains that Lagardère-HWH Travel Retail is on a mission to discover and explore new technologies that aim to improve the experience. The company’s focus has evolved from perfecting the basics of integration. Now, that this has been achieved, in stage two of the acquisi tion, Lagardère-HWH Travel Retail is reviewing its overall innovation strategy to learn how it can apply select solutions previously listed.

“We were surprised during the negotiation process to realize how much, despite their very different size and history, Lagardère Travel Retail and HWH had in common. This has greatly facilitated the transaction, integration –and now the approach to creating new concepts that will help DXB remain one of the most vibrant airports in the world. For instance, the integration of retail and food through more experiential concepts is very much on our agenda, combin ing Lagardère Travel Retail’s strengths in retail with HWH’s unparalleled concept creativity,” says Motlik.

Following the acquisition, LagardèreHWH is one of the key F&B operators at the largest international airport in the world. With the upcoming opening of the Midfield Terminal in Abu Dhabi, Lagardère will have two iconic F&B programs at the two largest UAE airports.

Compared to its position a couple of years ago, Motlik describes this as a major development and adds it’s certainly “a strong foothold” in securing an increased presence in the region.

Grabb’it at Dubai Airport, Concourse B The Daily DXB at Dubai Airport is a new generation food hall with an immersive street food atmosphere
Lagardère’s F&B Game Changer

APHRODITE DF’S expansion success story

Aphrodite Duty Free is preparing for the opening of a slate of stores that will begin operating this fall; one in the Beirut seaport, one in the Tripoli seaport, and two in international Libyan airports, Tripoli and Misrata. Not only are they state-of-the-art stores, but the four new locations also carry a mes sage of hope, optimism and renewal.

Founded in the mid-1990s in West Africa by Lebanese businessmen and brothers Karl and Jad Raphael, Aphrodite

The retailer is preparing for four store openings, each with high sales expectations in strategic locations
Karl Raphael, CEO, Aphrodite Duty Free Mariem Mersni, General Travel Retail Director, Aphrodite Duty Free Renderings of the new Beirut Seaport Duty Free store, with state-of-the-art design and feel

Duty Free has since shown continuous growth and success in creating a dynamic retail environment. It has become one of the leading companies in its sector through the creation of new business cooperations and its international product range. Its main customers are embassies, the United Nations ship chandler, cruise lines and other tourists.

The operator has tapped Tunisian businesswoman Mariem Mersni, a veteran in the duty free industry, to manage the soon-to-open stores.

“I feel very proud to be able to work with Karl and Jad. I have known them my entire career in duty free and I have the utmost respect for these professional and honest businessmen,” she says, adding that the brothers’ years of experience and collaborative teams is what continues to drive success of the business today.

Strong and dynamic infrastructure Mersni, who is the General Travel Retail Director at Aphrodite Duty Free, describes the new stores as “very unique; inspiring elegance, professionalism and modernity.”

The large stores will highlight Aphro dite’s legacy of offering the world’s bestselling brands of cigarettes, cigars, liquors, wines, perfumes, cosmetics, consumer electronics, high-end and collectible lighters, mobile phones, souvenirs and confectionery items.

The Port of Beirut, in Lebanon’s capital city, is one of the largest and busiest ports in the region due to its geographical posi tion. It is the midpoint between Europe, Asia and Africa and processes nearly three thousand ships per year. Serving as the major commercial and economic cen ter, it attracts thousands of tourists from

Europe and the Middle East annually.

Meanwhile in Libya, capital city Tripoli is the largest city in the country. It is home to the major seaport and is the commer cial and manufacturing center of Libya.

Tripoli International Airport is under going an expansion plan and currently has capacity for 3 million passengers per year. With two new passenger terminals underway, the airport will eventually have capacity for 20 million total passengers per year.

Coastal city Misrata is third largest in Libya, following second largest city Benghazi. Misrata International Airport welcomes approximately 1.5 million pas sengers per year, including many govern ment officials.

Mersni tells Global Travel Retail Magazine that Aphrodite Duty Free has high sales expectations in these strategic locations.

“Beirut and Tripoli are very lively cities. Most tourists are from Europe and the Middle East. We will carry all product categories. The embassy has a quota for buying, and they will order from us,” says Mersni.

The best duty free experience

Mersni, who divides her time between Beirut and Paris, believes she is the perfect fit for this position with her strong experience in the duty free business.

“I’m extremely enthusiastic about this project. The yellow and gray color scheme used throughout our stores signifies the sun and that the sun will rise again.”

Mersni is responsible for purchas ing, strategizing, marketing and budget planning. She says she looks forward to spending one-on-one quality time with suppliers she’s known for decades at the upcoming TFWA WE Cannes event.

Mersni tells GTRM, “You know my profound passion for the duty free business. While I will continue with my company’s usual activity, Aphrodite Duty Free will be my premium focus, and I will put my all in to making it the best duty free experience.”

*Mariem Mersni can be contacted on mobile in Lebanon: +961 71 039 050; France: +337 87 75 40 58; or email: GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022 63

DDFS returns to glory days

The resumption of international flights to and from India starting March 27, 2022, after a two-year hiatus, has unsurprisingly boosted the Indian duty free industry and Delhi Duty Free Services (DDFS) in particular.

Regular and scheduled international flights were first cur tailed on March 23, 2020, to curb the spread of COVID-19.

The Indian government announced that fully vaccinated for eigners with tourist visas could re-enter the country on chartered flights from October 2021 and on regular flights the following month. But within days of restarting regular flights, the govern ment was forced to reverse its decision because of the spreading of the Omicron variant.

Buoyed by positive results in the first half of 2022, Indian travel retailer Delhi Duty Free Services vows to continue focusing on promotions and its online business
Delhi Duty Free Services officially unveiled its new premium shopping experience at Delhi Indira Gandhi International Airport Terminal 3 in 2019
Ashish Chopra, CEO, Delhi Duty Free Services

For DDFS, which officially unveiled its new premium ship ping experience at Delhi Indira Gandhi International Airport Terminal 3 in 2019, business has rebounded strongly in the first half of 2022.

“We are particularly pleased with the results in the first half of the year. Currently, we are expecting to reach over 90% of 2019 levels [in the 2022 calendar year] and our sales in July 2022 exceeded those of July 2019,” Ashish Chopra, CEO at DDFS, tells Global Travel Retail Magazine.

Crucial border reopening Chopra attributes the positive results in H1 2022 to the reopening of borders and resumption of international commercial flights in India and other countries.

Reflecting on the incredibly tough period during the heart of the pandemic, he reveals that DDFS received constant support and guidance from majority shareholder Delhi International Airport Limited.

“As a team, we have worked on new initiatives, as well as improving sales and the overall passenger experience. Promo tional activities have also been a focus. Since the beginning of our business, we have been a disciplined retailer concentrating on top and bottom line. It was our approach to business, guid ance from shareholders and partnerships with suppliers and the airport, which helped us navigate the rough waters.”

Chopra says promotions have been at the forefront of DDFS’ strategy following the restart of international travel to and from India, including its flagship promotion Duty Free Delight, which has now ended.

“Other successful promotions include the Student Promo, the Birthday Offer, where we provided additional savings for passengers traveling on their birthday and the Him and Her promotion,” he says.

Chopra, who says he vows to increase the share of men and women shopping together, comments, “Promotional offers on best sellers remain a top attraction for international shoppers.”

Other initiatives include the launch of an airplane-designed mobile shopping cart, which the retailer said was a travel retailfirst in the Indian subcontinent.

DDFS added that the purpose of the mobile shopping cart was to make last-minute shopping easier, improve customer experience and boost sales. The cart offers a range of products including liquor and tobacco, perfumes and cosmetics and confectionery.

Outlining the reasoning behind the decision to introduce the cart, Chopra says, “We observed that due to COVID-19 and the subsequent low international passenger numbers, sales were significantly reduced.

It is a case of onward and upward for Delhi Duty Free, which reported positive sales performance in H1 2022 Ashish Chopra, CEO, Delhi Duty Free Services, does not expect consumers' buying habits to change too much post-COVID-19 GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022 65

“As a result, we launched a few initiatives for the convenience of passengers. We wanted to develop a mobile solution, which enables last-minute duty free shopping.”

Mobile cart launch

Regarding the function of the mobile cart, Chopra reveals that it moves to key gates depending on flight schedules.

“Customers can select from all core categories. Our team worked hard to create a unique and fantastic design based on an airplane, which we came up with after much deliberation.”

Digital development has also been at the forefront for DDFS during the pandemic. The retailer has certainly made the most of the pause period to introduce new concepts.

“We were among the first in global travel retail to introduce click and collect. Our click and collect services started three months following the onset of the pandemic, thus demon strating its relevance to our

business model,” Chopra says.

“Not only did we implement click and collect, but we also introduced selfcheckout, smartphone-based check-out, WhatsApp Chatbot, 24/7 Customer Rela tionship Management Assistance and heat mapping studies.”

Elaborating on the evolving needs and purchasing habits of consumers, Chopra does not believe they will change too much and that avid travelers will continue making the most of new opportunities to travel.

He says, “This is evident in the doubledigit growth in average ticket value, resulting in significant increases in aver age passenger spend compared to 2019. In all categories, the key value item ranges continue to drive growth, though it is evident that premiumization is driving transaction value.”

Pressed by Global Travel Retail Magazine on what DDFS has learned from the pandemic and what it might do differently in the post-COVID-19 world, Chopra underlines, “We will place greater emphasis on improving the competitiveness of our online business and promotions.

“Improving sales infrastructure to enhance consumer sim plicity is also an objective, along with establishing systems to respond to digital convergence and developing strong partner ships with stakeholders such as brands, airports and suppliers.”

In terms of the prospects for the channel and the retailer’s aims for 2022, Chopra is confident the industry will return to its “glory days” as international travel remains buoyant.

“Travel is one of the most basic human needs that is bound to grow and soon surpass 2019 levels. As an organization, we strive to be sustainable, resilient, and progressive. Supply chain issues are affecting availability across the globe, which is the biggest challenge facing the global travel retail community.”

It was our approach to business, guidance from shareholders and partnerships with suppliers and the airport which helped us navigate the rough waters.”
The Indian travel retailer has worked closely with brand partners to try and mitigate the impact of COVID-19 The key product ranges across all categories continue to drive growth, according to Delhi Duty Free Services
India Update with DDFS

The city of Beijing is also allowing non-traveling Chinese consumers to shop duty free online


Shanghai International Airport’s inability to deliver a sustained flow of affluent international shoppers prompted a new agreement, which requires CTG to pay leases based on actual passenger volume

Travel retailers’ profit from airports could recover faster than inter national passenger volume as the aftermath of the COVID-19 promotes favorable revisions of rental contracts.

This is according to Bloomberg Intelligence research (BI), which sug gests Shanghai Pudong, Beijing Capital International (BCIA) and other major airports could still receive part of a trafficdriven sales recovery through operators like China Tourism Group Duty Free Corporation Ltd (CTG), but with caps on minimum guaranteed revenue.

On the domestic front, Chinese duty free operators’ sales at domestic outlets and online malls expanded sharply during the pandemic, shifting the power balance away from airports.

Major airports could receive part of a traffic-driven sales recovery through operators such as China Tourism Group Duty Free Corporation Ltd, but with caps on minimum guaranteed revenue, says Bloomberg Intelligence research


BI says, “Sales already more than tripled from 2014 to 2019 in Hainan after looser offshore duty free shopping allowances and restrictions. Authorities further widened the province’s tax free spending limit per head to RMB100,000 (US$14,374) from RMB30,000 (US$4,312) in July 2020, fueling sales growth of 104% in 2020 from 2019.”

Online opportunity

The city of Beijing is also allowing non-traveling Chinese consumers to shop duty free online. Based on prelimi nary disclosures, CTG’s 2021 operating profit rose 52% year-on-year on the back of 29% revenue growth. “This was fueled by continued sales strength in Hainan and rent relief resulting from its contract revision with Beijing Capital International Airport.”

CTG may hold more than 90% of the Chinese domestic market, but overseas players such as Dufry Group, Lagardère Travel Retail and DFS Group have flexed their muscles in Hainan. This is by cooperating with local partners such as Hainan Development Holdings, Hainan Tourism Development and Shen zhen Duty Free, respectively.

BI says, “Still, domestic sales growth

could weaken when outbound travel recovers and channels buyers back to airports and overseas outlets. CTG may resume its duty free sales push at Chinese airports after the pandemic, especially with revised leasing terms offering better margins.”

Speaking of airports, the extended impact of COVID-19 hampered Shanghai International Airport’s ability to deliver a sustained flow of affluent international shoppers. This prompted a major revision of its duty free contracts, which according to BI would have offered 42.5% average

commissions and a 2.3-time surge in minimum guaranteed revenue from 2019 to 2025 without the pandemic.

“A new agreement, disclosed in Janu ary 2021, now only requires CTG to pay leases based on actual passenger volume with a cap of RMB3.5 billion (US$500 million) if traffic recovers to 81% to 108% of 2019 levels.

“The minimum guaranteed revenue in the original contract will now serve as payment ceilings if passenger volume exceeds 108% of 2019 levels in 2022 to 2025.

“Shanghai International Airport Com pany’s duty free revenue dropped almost 80% in 2020 and may only pick up in late 2022, assuming international resumes by then.”

Contract amendments

BCIA followed Shanghai International Airport in amending its contracts with CTG in October 2021. Details of the con tract revisions were undisclosed but are believed to be like Shanghai International Airport Company’s, which linked duty free leasing fees with passenger volume.

BI says, “As the current agreement only covered the period from February 2020 to February 2021, further extensions

Shanghai International Airport’s inability to deliver a sustained flow of affluent international shoppers prompted a new agreement, which requires CTG to pay leases based on actual passenger volume
Shanghai International Airport Company’s duty free revenue dropped almost 80% in 2020 and may only pick up in late 2022, assuming international resumes by then.”
“  China Report
Meet us at the TFWA Cannes, Harbour Village, M/Y ANTISAN, 2-6 October 2022

are likely to be negotiated. BCIA’s bar gaining power may remain weaker than Shanghai International Airport Com pany’s, since its international passenger recovery is likely to lag major Chinese peers as more flights relocate to the new Beijing Daxing Airport.”

Global Travel Retail Magazine under stands that rental contracts at BCIA taking effect from February 2018 offered 44% average commission and a minimum guarantee of RMB3.03 billion (US$430 million) in the first year. This is equivalent to 28% of BCIA’s revenue in 2019.

Back to Shanghai Pudong International Airport, where a new satellite terminal opened in 2019. The facility may sustain the airport’s long-term growth, but at the same time compromise its earnings resilience against COVID-19.

The untimely airport expansion boosted passenger capacity and operat ing costs by more than 30%, with limited gains from additional retail space follow ing the revision to its duty free contract.

Shanghai Airport's new satellite termi nal, which added 620,000 square meters of floor space and capacity for an addi tional 20 million passengers, increased annual operating expenses by 30%. But the airport company, however, will need robust international traffic growth and traveler spending to cover those costs, which looks unlikely until 2024 due to COVID-19.

The doubling of retail space at Shanghai Airport, as a consequence of the satellite terminal opening, may offer opportunities for concessionaire Sunrise Duty Free to better capitalize on passen

ger spending, but BI comments, “Shang hai Airport will no longer share the gains from higher sales per passenger following the [aforementioned] major revision in the contract, which only requires the duty free operator to pay lease fees based on actual passenger volume.”

In summary, Shanghai International and BCIA airport’s net losses could well widen versus 2021 as domestic traffic plunged due to tough lockdowns and travel restrictions.

“China may maintain cross-border restrictions amid its persistent zeroCOVID push, which could hinder international air traffic recovery in Asia,” BI concludes.

Sales already more than tripled from 20142019 in Hainan after looser offshore duty free shopping allowances and restrictions.”
BLOOMBERG INTELLIGENCE According to Bloomberg Intelligence research, travel retailers’ profit from airports could recover faster than international passenger volume due to rental contract revisions Major airports could receive part of a trafficdriven sales recovery through operators such as China Tourism Group Duty Free Corporation Ltd, but with caps on minimum guaranteed revenue, says Bloomberg Intelligence research
China Report “
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Focus on fragrance

average basket had increased. So, those who were traveling were consuming,” he explains.

Prioritizing exclusivity

After years of wearing much less makeup and fragrance due to masks, working from home and the general lack of travel and events, Essence Corp’s Antoine Bona, Vice President Sales, tells Global Travel Retail Magazine beauty is making a comeback.

Bona says people are purchasing beauty products again, and while num bers were down during the pandemic, it was due to traffic, not a lack of interest in beauty products.

“Our customers were saying that the conversion had increased and that the

For fragrance in particular, there has been a large uptick.

“We’ve seen a shift [among] consum ers coming back to fragrance – which was always the leader in the beauty industry,” Bona explains. “Leading up to the pan demic, it had been losing market share to makeup, skin care, indie makeup brands, indie skin care brands, and now we’ve been seeing this focus come back to fragrances.”

Bona tells GTRM he thinks this is largely due to the emotional connection to the sense of scent. Fragrance has the ability to make people feel lighter, cooler, more powerful, he explains.

“I think there’s a real connection between scent and people’s mood.”

As retailers dedicate more space within the beauty department to fragrance, Bona says he sees niche brands becoming a priority in travel retail in the Americas.

The trend toward niche brands started with labels such as Jo Malone and Tom Ford, he explains.

“Now you can see it’s a real priority for retailers to create a niche area within their beauty space. Niche [trends] have grown tremendously in the U.S. domestic market and they look at those trends and see that consumers are willing to spend more money to have a product [that is] different than the fashion brands that you can find more easily downtown. There’s a bit more exclusivity with the niche [brands] due to the distribution and price point.”

Meanwhile in other beauty news, Bona says disruptor brands, such as Kylie Cos metics, and wellness brands and products, such as candles and hand soaps, will continue to be important.

“Everybody is thinking about their wellbeing a lot more. [The pandemic] changed the way we look at our lives,” he says.

Latin America bouncing back

When looking at recovery in the region, it is not quite as simple as comparing numbers to 2019, Bona explains. Prepandemic 2019 saw a strong devaluation of the Brazilian real and the Argentinian peso, so 2019 was “not the best year.”

“Airports such as [El Dorado in] Colombia and Panama [Tocumen] are

74 GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022  Interview with Essence Corp’s Antoine Bona

achieving numbers much higher than 2019. Colombia, having a large population and being such a desirable population for tourism has grown quite a bit. Panama is an international hub. We see Argentina growing at plus 50% above 2019.”

In Argentina, there are two exchange rates available at the airport. The official, and the unofficial dollar blue. Airport operators sell at the fixed exchange rate, but if travelers can exchange their dollars into Argentinian pesos at the unofficial rate, they can then shop at the fixed rate allowing them to purchase goods at nearly 50% off, Bona explains.

Mexico’s geographical location also brings advantages for the Americas. The country remained open throughout the pandemic with few testing protocols.

“Areas like Cancun are kind of an extension of U.S. domestic, a desirable destination. For U.S. and Canada, [it is] a safe and easy destination to go to.”

“Mexico, Panama, Colombia are some real highlights of the territory, Argentina as well, due to the exchange rate. And now we see Brazil really recovering but it’s still trending down versus 2019, but every month it’s getting bigger.”

Bona attributes this to more flights, the reopening of hotels and the recov ery of the cruise ship business. Cruise is expected to recover fully in 2023 and outperform 2019, he says.

Focused on local

Much of Essence Corp’s business in the Caribbean is focused on local shoppers. With more than 42 million people living throughout the Caribbean islands who do not travel to the U.S. and importation restrictions on services such as Amazon, retailers are catering to locals.

“That being said, locals strive off tour ism and they need tourism to be back,”

he says. “We expect this season to be extremely strong.”

Niche fragrances have grown in the Caribbean as well. Essence Corp recently rolled out Parfum de Marly with Penha. Bona says the brand has great visibility and has performed quite well so far, along with Essence’s core brand portfolio including brands such as Dior, Shiseido, PUIG, Interparfums, Euroitalia.

Bona says Essence Corp looks for ward to a new partnership with Dolce & Gabbana now working directly with the fashion house for the Caribbean and cruise lines.

Retailer recovery

Retailers are consistently performing better in regions with fewer travel restric tions, Bona says. The U.S.-Mexico border has had extremely strong recovery since Q4 2020.

“Retailers that were dependent on airline travel were the ones who suffered the most, along with the Canadian border stores due to strong restrictions,” Bona says.

And fragrance played a strong role in performance, he reiterates. “Retail

ers with less brand personalization were able to adapt quicker. They saw fragrance was performing well and they were able to incorporate more [physical space for] fragrance into the beauty department.”

Victoria’s Secret and Bath & Body Works have proven to be quite resilient during and after the pandemic. The strong U.S. brand equity, assortment and dealings have molded them into leading brands in the Americas, he adds.

Some challenges ahead

Most challenges Essence Corp faces now are related to inventory, but Bona says suppliers and shipping companies foresee improvement in approximately the second semester of 2023.

We’re not out of it yet, he says.

In general, he says, inflation, rising interest rates to slow inflation and market contraction will be the biggest obstacles for the industry.

On a more positive note, travel will only continue to increase which will help compensate for market contractions, Bona says.

Additionally, Euroitalia has acquired two new brands during the pandemic: Michael Kors and Atkinson, which Essence will roll out in 2023.

Interparfums, acquired Salvatore Fer ragamo at the end of 2021 which is per forming well. It has also acquired DKNY, which Essence will roll out soon. Essence will also launch a new partnership with Rituals and Hudson in the U.S. domestic market in airports and duty free terminals with Dufry. The company has plans to open a store in San Diego at the end of this year with Duty Free Partners.

The launch of Versace Dylan Turquoise in March 2022 The launch of Montblanc Legend Red in Baja California in June 2022 Interview with Essence Corp’s Antoine Bona
wrappr design by wrappr is a trademark of briggs & macleod inc.

Our journey

In this Guest Column, Niki Schilling, Director Innovation & Sustainability at Rituals, discusses the company’s B Corp status, net zero mission and key pillars of sustainable wellbeing: Clean, Conscious & Caring

The need for improved wellbeing of both people and planet is universal and more relevant than ever before. We all want to leave the world a better and happier place, compared to how we found it. To accomplish this mission, we all need to take personal responsi bility. And more than anything, we all need to make conscious choices that will have a positive societal and environmental impact for years to come. At Rituals, we like to provoke others to think differently and to encourage the travel industry as a whole to become more sustainable.

Rituals has been on a mission to support the wellbeing of our customers since our founding 22 years ago. Our passion is to turn everyday routines into more meaningful moments; to help people slow down and rediscover happiness in the small est of things. Our philosophy extends to both personal and sustainable wellbeing as we believe that our emotional wellbe ing and sense of harmony comes from taking care of ourselves as well as the planet.

When it comes to our vision on sustainable wellbeing, we focus on three key pillars: Clean, Conscious & Caring.

Niki Schilling, Director Innovation & Sustainability, Rituals Rituals has committed to grow a tree for every refilled product sold, part of the company’s aim to plant five million trees by the end of this year toward wellbeing

“Clean” is about trusted quality prod ucts that are carefully formulated with ingredients of natural origin. Seventy percent of all Rituals products contain more than 90% natural origin ingredients for instance. One of our goals is that all personal care products formulated over 90% natural origin by 2023.

“Conscious” focuses on making sustainable choices for our packaging and our business. We offer refill options for a broad selection of our products and using our body cream refill for example, saves up to 70% carbon emissions, 65% energy and 45% water versus tradi tional formats. One of our goals in the Conscious category is achieving Zero Waste by 2025 by making every product either refillable, recyclable or made from recycled material.

A February m1nd-set study empha sised once again how sustainability is increasingly important to traveling customers. More than 80% are more con cerned about sustainability than before,

while 71% of shoppers globally prefer purchasing brands that proactively dem onstrate social, ethical, and environmen tal values and practices. Nine out of ten shoppers believe that sustainable values are important for the brand’s image. With this type of demand, Rituals’ refills will increasingly become a fundamental part of its assortment across duty free locations.

“Caring” is about supporting and developing programs that contribute to soulful societies. Since 2011, Rituals has supported Tiny Miracles, a pioneering foundation and for-purpose company that has found a way to enable people who are excluded from society to seize a life full of new opportunities. In addition, we co-founded SuperChill, an organiza tion that focuses on the mental wellbeing of children. It is our goal to inspire our customers to help navigate their journey of wellbeing, but also develop and support wellbeing programs in society and the younger generation.

As we recently announced, we are further accelerating our sustainability efforts and joining the race to net zero by reducing our greenhouse gas emissions by 50% per product by 2030, reaching net zero by 2050. In doing so, the com pany sets concrete goals in line with the Science Based Targets initiative and the Paris Agreement. After becoming a Certi fied B Corporation earlier this year, this commitment marks another important step in our continuous journey to sustain able wellbeing.

Next to reduction, Rituals also wants to support decarbonization outside its business. For instance, we support initia tives that preserve and restore natural ecosystems while aiming to improve people’s livelihoods. By doing so, we have committed to grow a tree for every refill sold, aiming for five million trees by the end of this year. Together with trusted environmental partners it supports plant ing, protecting and restoring mangroves in India and Kenya.

Achieving B Corp status marked an important milestone on our path to sustainable wellbeing, but we realize that this is just the beginning. We are com mitted to taking the next steps needed to move closer toward the goals we have set ourselves. Our journey to sustainable wellbeing is a journey in collaboration with our employees, our consumers, and our partners.

Our ongoing efforts have cemented our position as a sustainability leader in the industry, maintaining continuous conversations with partners to remain or become part of their Clean Beauty areas. Recognizing the value of these actions, our Founder and CEO, Raymond Cloos terman, has been invited to speak at the TFWA World Exhibition & Conference in Cannes this year, further underlining the relevancy of our commitment in the industry. We are extremely proud that we can claim to be a true leader when it comes to sustainability, and we hope that our journey can be an inspiration to the Travel Retail Trinity.

We understand that the path toward a more sustainable future is not one that we should or can travel alone. We look forward to working together with our partners, airports and other brands within the travel industry to exchange ideas and join forces to build a brighter future.

Rituals became a certified B Corp earlier this year GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022 79

With the spring launch of its Body Collection, Moroccanoil has successfully expanded into the body care category and evolved from a haircare product range into a lifestyle brand. Consisting of a hand wash, a body lotion and a shower gel, the product range encapsulates the essence of Moroccanoil. Rich in antioxidants and infused with the brand’s signature argan oil, the full collection is available in six different Mediterranean-inspired fragrances. With the October release of its hand cream assortment in travel retail, Moroccanoil has never been more appealing to con sumers worldwide.

Conscious luxury

Having revolutionized the haircare industry, Moroccanoil’s brand promise is to celebrate, inspire and empower women. Founded by Carmel Tal, the company has moved beyond its “one-woman begin

ning” into a loyalty-inspiring brand and continued to embody the values of its consumer group. Dedicated to making a difference via three vital methods: its products, its operations and its communi ties, Moroccanoil is serious about con scious luxury. According to the company, over the next five years, its commitment to using less virgin plastic and more recy cled material will save over 500 tons of virgin plastic. Furthermore, Moroccanoil recently joined PETA’s “Beauty Without Bunnies Program” to make its cruelty-free status official.

Maximizing potential

When it comes to how the company promotes its product range to appeal to the interests, opinions and attitudes of its target consumer group, Sebastien Levi, Vice President of Global Travel Retail at Moroccanoil, says online engagement is essential to the success of the brand. The

company’s objective to connect directly with consumers via social media helps to grow its following and share its message. Established lifestyle brands often develop a community based on shared values, which he comments can be difficult in travel retail.

“Since digital is not used to its maximum potential across the channel at both the airport and the operator level, continuing this conversation with our community in travel retail can be a major challenge and a great opportunity. We believe that by strengthening the partner ship between travel retail players, we’ll be able to seize this opportunity,” says Levi.

Responding to how Moroccanoil pro vides value to consumers and integrates its range into multiple aspects of their way of life, Levi adds that its priority remains product quality. This secures consumer satisfaction and the willingness to repeat purchase. In addition, other key elements include the ease of use and the sensory experience. This experience at the heart of the brand starts with its iconic scent being present in all Moroccanoil products and continues with the texture(s) of new scents available across its Body range. The result: healthy hair and healthy skin.

DEVELOPING A LIFESTYLE BRAND IN TRAVEL RETAIL reinforced its positioning as a lifestyle brand with the release of its Brumes de Maroc Hair & Body Fragrance Mist last year, Moroccanoil faces the challenge of growing a channel-based community by LAURA SHIRK
Moroccanoil has reanimated its iconic product, Moroccanoil Treatment, with a limited edition that emphasizes its crossgenerational appeal; this edition will hit travel retail in early 2023

Gebr. Heinemann has a clear vision for the future. Our willingness and ability to understand exactly what travellers want and expect from us has kept Gebr. Heinemann at the top of the travel market for over 140 years. As a family-run company, we will continue to stand for human experiences in global Travel Retail – physical and digital.

The Heinemann Family. We turn travel time into valuable time as the most human-centric company in global Travel Retail.



Having had time to reflect on the launch of its permanent installation at Prague Václav Havel Airport in November of 2021, Cloetta Global Travel Retail tells Global Travel Retail Magazine about the planning and design process of its Jelly Bean Factory. Marking its first collabora tion with Lagardère Travel Retail and its first display of this kind within the chan nel, the Swedish confectionery specialist opened the 12-square-meter space in Terminal 1.

When asked about the setting of SMART (specific, measurable, achiev able, realistic and time-bound) goals, the Cloetta team says it was difficult to come up with a sales number.

However, the airport retailer asked the company to accomplish three requirements within the space: tie

into the local market, create an interac tive component and provide a “wow” factor. Working closely with Lagardère, as expected, the team had to return to the drawing board a couple of times. With the three requirements in mind – and consid ering the increased expectations of con sumers today – the team landed on the idea to design an actual “Factory”, tying in the brand name. Consisting of transparent tubes, LED lights and a touchless photo booth, the installation gifts travelers with a digital souvenir of Prague, which is both interactive and customizable.

“Looking at the results of this year, at the Prague location alone, we have done exceptionally well. Our goal for this permanent space was to let travelers get to know The Jelly Bean Factory brand, its brand promise and to show the travel retail industry what Cloetta as a company

The Jelly Bean Factory
Offering an “unmatched sensory experience,” The Jelly Bean Factory installation at Prague Airport uses visual engagement to help define its brand identity
The Jelly Bean Factory
275-gram mini pack TR exclusive
175-gram mix of 36 huge flavors

is capable of,” says Jana Stroop, Global Travel Retail Manager at Cloetta Global Travel Retail.

Standing out from other permanent airport activations in the area, the height and structure of the installation easily captures the attention of passers-by and makes the display visible from a distance. Stroop points out that the final product has further excited the pair to expand the network of branded spaces worldwide and set the tone for collaborations to follow.

Bright colors and gourmet flavors

Research conducted by creative agency

Colorcom reveals that people make a subconscious judgement about a person, environment or product within 90 seconds of initial viewing – and that the majority of this assessment is based on color alone. Looking to offer an “unmatched sensory experience”, The Jelly Bean Factory unites food color and flavor to help define its brand identity and the consumer’s journey. As noted by Stroop, the company aims to create “the best possible experience in color, flavor and

texture” by choosing the finest natural ingredients.

“All of our jelly beans are colored with natural colorings, which we extract from all-natural ingredients; we’re proud of our multitude of bright colors and gourmet flavors, as they offer consumers a truly sensational taste experience. With our colorful beans, we want to add color to our consumers’ lives and help them to embrace flavor. As we invite consumers to join us on our journey, colors help us to be inspiring, adventurous and of course, full of flavors,” says Stroop.

Challenging the status quo

Recognizing that consumers are increas ingly loyal to brands whose values resonate with their personal and social identity, The Jelly Bean Factory at Prague Airport uses visual engagement to create an emotional connection. The incorpora tion of transparent tubes, which allow the beans to be visible, encourage visitors to connect sight, taste and experience. Once travelers step into the Factory, they are immersed in the Jelly Belly world and

greeted by key pillars of the brand: 36 huge flavors, no artificial colors or flavors, gluten- and gelatine-free.

“The Jelly Bean Factory has always been committed to offering customers unique tastes that they can’t find any where else. The main goal is to challenge the status quo when it comes to confec tionery and offer a flavor for every taste; delighting and surprising consumers from all backgrounds, hence its wide range of flavors,” adds Stroop.

Since these days consumers want candy to be less artificial, while still delivering an exceptional taste and texture sensation, The Jelly Bean Factory can also fill in “a white space.” All products are 100% vegetarian, allergen-free and crafted with natural colors and flavors.

The Jelly Bean Factory color wheel of 18 fruit flavors The Jelly Bean Factory permanent installation at Prague Airport GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022 83


bring boutique experience to India

Domestic air passenger traffic in India has been steadily increasing. The Government of India Ministry of Civil Aviation reported that July 2022 saw an increase of 66.73% compared to the same month in 2021.

“Domestic traffic has returned to the same level as before the pandemic and is based on an increase in passenger and air traffic of eight to 10% per year, which represents about 500,000 passen gers per day,” says David Dayan, CEO at BEAUTE LUXE.

With recovery on the rise in the region, Dayan says BEAUTE LUXE seized the opportunity to establish itself in the Indian market and signed a partner ship with one of the biggest leaders of fragrance distribution in the country, BEAUTY CONCEPTS.

BEAUTY CONCEPTS was estab lished in 1996 and is a member of Bahety Group of Companies. For three decades, BEAUTY CONCEPTS has brought luxury perfume and cosmetics into the Indian market, boasting a portfolio exceeding 100 brands including Guerlain, Bvlgari, L’Occitane, Victorinox, Clinique, Estée Lauder and more.

The goal of the collaboration is to establish luxury fragrance boutiques in the Indian travel retail market and expand the footprint of domestic duty paid travel retail spaces. To the partnership BEAUTE

LUXE brings its marketing management expertise with various brand associations while Beauty Concept brings its retail understanding and in-depth knowledge of the Indian market.

“The Indian market is a large and very specific market due to its ethnic, religious and geographical diversity so we could only develop this opportunity with a specialist in distribution of per fumes and cosmetics,” explains Dayan, adding that the visibility offered by having an airport presence brings excellent exposure to both brands. “We are convinced of the success that our per fumery chain can obtain in India, thanks to this partnership.”

BEAUTY CONCEPTS has so far opened one BEAUTE LUXE boutique airport perfumery in Calcutta Airport in early August, and a second one will open soon. The BEAUTE LUXE boutiques offer travel retail luxury brands with travel retail exclusives and exclusive gift with purchase, along with experiential engage ments and upscale services.

Rajiv Bahety, President of BEAUTY CONCEPTS says, “This would feature ‘quick retail’ but with experiential engage ments and upscale services, bearing in mind time constraints of travelers.”

Bahety says this allows consumers to enjoy the experience and help them make wise choices when shopping.

The Indian market is a gifting mar

ket with a very strong tradition of gift giving, explains Dayan. Passengers look for affordable prices because they buy in quantity. Brand awareness is also impor tant, he notes, adding that Tom Ford, Bvl gari and Hermès are very popular brands among travelers.

The partnership has committed to three additional BEAUTE LUXE bou tiques in domestic airport duty paid areas in Cochin, Amritsar and Indore.

David Dayan, CEO, BEAUTE LUXE Rajiv Bahety, Owner, Beauty Concept Pvt. Ltd. The first BEAUTE LUXE boutique airport perfumery under the collaboration opened in early August in Calcutta
BEAUTE LUXE has partnered with BEAUTY CONCEPTS in India to open luxury perfumeries in India’s domestic duty paid airport spaces

A twist

Located on the subtropical, northeast coast of Taiwan, Kavalan Distillery’s location not only influences its production process, but also enables the familyowned company to develop rich and complex whisky in only a few years. Known as “maturation redefined” Kavalan’s process is dependent upon the climate and seasonal temperatures of Yilan County. Due to the region’s varying climate, Kavalan features a non-age state ment portfolio of whiskies. This means rather than relying on a set number of years, only when the whisky is judged optimally matured, will the team bottle the product for distribution.

In 2010, the distillery launched the fourth expression in its trademark Solist series, Solist Vinho Barrique, a caskstrength single malt aged in ex-wine bar rels. This marked Kavalan’s first experi mentation with a cask treatment known as Shaving, Toasting and Recharring (STR). Solist Vinho Barrique was named World’s Best Single Malt Whisky by the 2015 World Whiskies Awards. The Solist series is now made up of 10 expressions, with each single cask displaying its own unique characters.

Packaging update

Several years after their addition to Kava lan’s portfolio, the company repackaged four Solist sherry casks and the Solist Port cask in 2021. The new edition of Kavalan Solist Amontillado, Manzanilla, Pedro Ximenez and Moscatel show an enlarged version of its four representative colors to highlight the uniqueness of each whisky: rose red, azure blue, grass green and grape purple. According to Kyle Lee, Duty Free Retail Sales Manager at Kavalan, the new packaging uses lighter materials to avoid excessive packaging and allow consumers to focus on the “excellent taste” of Kavalan’s sherry casks.

Since port casks are home to Portugal, the Solist Port cask features the two main colors of the Portuguese flag, green and red. Considering the packaging of Kavalan Solist Port consists of a dark ruby color, the distillery updated its packaging to a livelier green color.

“The green is in line with the dark ruby of the whisky to deepen the connection to its origin. The new packaging of Solist Port is available at New Delhi Airport, Delhi Duty Free and has been crowned Grand Gold at the [2022 The Spritz Achievers’ Awards],” says Lee.

Duty free presence

Earlier this year, Kavalan also launched Kavalan Batik Solist Vinho Barrique in collaboration with Singapore Airlines. Available online at, this limited edition matches Kavalan Solist Vinho Barrique and the “elegance of the batik motif.”

Regarding upcoming launches, Delhi Duty Free will release King Car Con ductor 40th Anniversary in September. This “richly intense whisky” marks the landmark anniversary of Kavalan’s par ent company and delivers distinct berry flavors and luxuriant toffee. The 1500-mil liter bottle shape expresses “elegance and strength” and its crown-shaped cork is decorated with Swarovski crystals.

“Kavalan will continue to expand its global presence and bring more surprises to excite consumers in the travel retail market. Consumers can expect more additions to our ranges, different casks used together with our exquisite crafts manship. Also, we are planning to launch more collaborations with travel retailers in the future,” adds Lee. on whisky

Delhi Duty Free will release King Car Group 40th Anniversary limited edition in September Kavalan’s warehouse staff during the production of its rich and complex whisky
A look at the production of Kavalan’s non-age statement portfolio, signature colors and travel retail presence
86 GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022  Brand History and Portfolio
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Elevating its identity

After navigating the worst of the pandemic through transparent communication, shisha brand Mazaya is working on the rollout of a new brand identity in domestic and travel retail markets

Shisha consumption remains a growing trend and will help increase the tobacco category’s basket size and generate profit

For Jordanian shisha brand Mazaya, the aims through the rest of 2022 are growth, expansion and reaping the benefits of all the arduous work undertaken last year in preparation for the restart.

Rawan Elayyan, Global Travel Retail Manager at Mazaya, tells Global Travel Retail Magazine how its strong partnerships with retailers and operators and understanding consumers’ behaviors are among the brand’s main strengths that served the company well through the pandemic.

“We work closely with operators to continuously optimize our portfolio and enhance our business model, be it in areas of fore casting, demand planning, shipping or logistics,” says Elayyan, adding that also understanding its consumer base and studying demographics enables it to sell products better. “This is some thing we stress and acknowledge through our intensive market and retail studies.”

Expansion plan

Last year, Mazaya secured important listings with Lagardère Saudi Arabia (Riyadh, Jeddah, and Dammam) and Dufry Morocco (Casablanca and Marrakesh). Now the company is focused on its plans to grow.

Mazaya kick-started 2022 by confirming listings with Iraq Duty Free, Heinemann Egypt in Sharm al Sheikh, and more

Mazaya’s French tobacco leaves are known for its high absorbing characteristics, according to the brand
88 GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022  Mazaya’s New Brand Identity

recently Dufry Egypt in Cairo, with other interesting locations are in the pipeline. In addition to new listings, expanding its travel retail portfolio is also on the agenda.

“Our observations indicate that more and more consumers are eager to experiment with new flavors, so having a variety of flavors in the duty free shops is key,” Elayyan explains.

Mazaya has always had two major consumer categories. One is those preferring classic/standard flavors (for example, Two Apples, Lemon Mint, Grape and Grapte Mint), while the other is consumers favoring new innovative flavors such as Ruby Crush, Candy Drops and Blueberry Exotica.

“We have not really observed a change in flavor preference where it is linked to the pandemic timeline, but flavor preference does change due to other factors.

“Millennials, for example, are open to trial and experimenta tion which, by default means new flavors are required to keep this consumer segment pleasantly served.”

Given the importance of a diversified portfolio and flavors meeting different consumer tastes and preferences, Mazaya says it always has new flavors in the pipeline. “One particular flavor we are extremely excited about and is already listed in a few shops is a new variant of the Two Apples flavor called Two Apples Masri. This has been performing strongly in many domestic markets including Levant, North Africa and GCC.”

Sense of optimism

As the recovery from COVID-19 gathers pace in many parts of the world, the sense of optimism in the greater Middle East area, an important market for Mazaya, is providing a sturdy base to continue to build on.

“Qatar is gearing up to host FIFA World Cup 2022 (Novem ber 21, 2022 to December 18, 2022) and visitors are expected to exceed 1.2 million.”

Amid all the hype around Mazaya in the region, the brand is not resting on its laurels and is currently working on various initiatives. “The state-of-the-art HPP that Mazaya is known for will soon be back on the shop floor after a long pause to delight travelers.

“We are also expanding our fleet of brand ambassadors to assist and educate shoppers and provide them with a smooth shopping experience.”

Mazaya is now in the process of elevating its brand identity. Its current identity is inspired by special moments shared with fam ily and friends because the company believes shisha smoking is a social activity that brings people together. This is emphasized by the brand’s logo, which shows two faces bonding with affection.

“The uplifted identity will still connect with Mazaya’s vision of special moments shared by people. The rollout of the new brand identity will start in domestic markets and then be applied to our marketing and advertising collateral in travel retail,” Elayyan explains.

High-quality ingredients

The quality of the brand’s ingredients is one of several factors that help create those all-important special moments, she emphasizes. “Our French tobacco leaves are known for their high absorbing characteristics. In fact, they are the most premium in the industry.

“Blended with food-grade flavors, high-quality glycerin, and natural honey, Mazaya molasses guarantee an enjoyable and long-lasting shisha smoking session. We also pride ourselves on our ability to manufacture products in highly advanced produc tion facilities with state-of-the-art equipment.”

As alluded to previously, placing consumers at the heart of its strategies is a key part of the brand’s vision and helps distin guish it from competitors. “We acknowledge the importance of understanding our consumers’ needs and catering our products accordingly.

“Our portfolio comprises over 150 flavors and is, therefore, altered to meet diverse consumer tastes with a superior quality of ingredients.”

As shisha smoking continues growing in popularity world wide, Elayyan is certain shisha molasses can add significant value to the tobacco category and drive its recovery.

“Throughout the various locations where we are listed, Mazaya has succeeded in growing the shopper’s basket size and proved an important revenue stream for duty free retailers and operators. This is crucial in accelerating the overall recovery of the tobacco category.”

The good news is that many operators have foreseen this trend and acknowledged the untapped potential of the shisha sector, Elayyan explains.

“For this reason, along with our strong commitment to the channel, shisha has dramatically developed its position within the tobacco category over the past five years.”

Natural Lemon with Mint Molasses is among Mazaya shisha brand’s classic/ standard flavors An exterior shot of the Mazaya yacht at the TFWA World Exhibition in Cannes last year
Mazaya’s New Brand Identity
Enjoy Heineken® Silver at the TFWA lounge in Cannes, 3-5 October.

FRATERNITY SPIRITS kickstarts a Mexican wave

Fraternity Spirits World (FSW), the Costa Rica-based drinks developer with a representative office in Mex ico, has extended its product portfolio of Mexican spirits.

The company is spearheading the worldwide rollout of a new Mexican whisky brand rollout called Ley Seca, and preorders are rolling in, according to CEO Raffaele Berardi. The spirit is made by Hacienda Corralejo, the Mexican familyowned maker of Corralejo tequila, which FSW has supplied to travel retailers for many years.

This Mexican 100% malt whisky is called Ley Seca (“dry law” in Spanish) because it references the 1919 Prohibition that banned the production of liquor in the U.S. and resulted in the smuggling of spirits across the Mexican-U.S. border. The whisky is distilled in a separate facility from the tequila factory and was launched globally in June 2022.

“Ley Seca whisky is an exciting product, and our balanced portfolio is an interesting angle for retailers,” Berardi tells Global Travel Retail Magazine. Berardi is a well-respected drinks indus

try figure who has supported the travel retail channel from the beginning. He established FSW in 1994.

The portfolio comprises Mexican mezcal, Mexican tequila, Mexican rum and now Mexican whisky, allowing FSW to create a specialist Mexican spirits sec tion inside liquor stores. Consumers can choose from a range of four distinctively packaged Mexican spirits brands at differ ent price points. As travel retailers battle to distinguish themselves from domestic outlets post-pandemic, this is an attractive retail proposition, Berardi says.

Berardi is targeting the US$40 retail price segment, which he believes is a sweet spot for consumers.

Nobushi Japanese whisky success

And the innovation continues. Three years ago, Fraternity Spirits World added another distinctive new brand to its portfolio: Nobushi Japanese whisky. After a pandemic pause that affected its rollout, Nobushi is performing well worldwide, as consumer enthusiasm for Japanese spirits gathers pace.

Kiyokawa Co Ltd. is a whisky blender and distiller based in the mountains of Nagano Prefecture, Japan
Fraternity Spirits World offers “wonderful balance” in its drinks – and also in its product portfolio, as entrepreneur and CEO Raffaele Berardi tells Global Travel Retail Magazine
Nobushi Japanese whisky is made from mountain barley grown on Kiyokawa distillery’s own farms

Nobushi is a craft spirit made by Kiyokawa Co Ltd., a blender and distiller based in the remote mountains of Nagano Prefecture, near Iiyama city. The distillery is located in an area known for big atmo spheric pressure changes, resulting in a whisky that represents more of the barrel's wood flavors and natural color.

Importantly, Kiyokawa was the first to bring the art of distillation into the region, and was the first Japanese distill ery to develop and grow mountain barley on its own farms as the main ingredient for the production of Japanese single malt whisky.

Today, Nobushi Japanese blended whisky is distributed all over Europe, and thanks to FSW’s network, Nobushi is distributed globally in domestic markets across the U.S., Canada, Mexico, Central America, India and Dubai. The brand has just been launched at Delhi Duty Free, where the US$40 item is proving popular with travelers. Nobushi also offers a single grain whisky and a pure malt expression under five years old, ranging from US$60 to US$90. A new five-year-old pure malt will be launched at the end of this year.

“We’re very excited about the Nobushi brand, it’s been very success ful, and the category is well accepted,” enthuses Berardi.

Speaking to Global Travel Retail Magazine in May 2022, Berardi said there was “a huge opportunity” for Nobushi to capture a share of the sizeable travel retail whisky market. “We’re working with the only mountain-based distillery that produces its own malt in the mountains – no one has ever done that before. It’s a unique product,” he says.

Next year, FSW will be unveiling a new vodka and a gin, both from Japan, in a bid to expand its Japanese spirits portfolio. A canny strategy, as noted above.

New ultra-premium tequila

Turning to the Mexican tequila brand Corralejo, a new high-end heritage line consists of 1810, 1821 and 1755 expressions. These ultra-premium tequilas are related to the history of Mexico and Hacienda Corralejo and have been launched only in the U.S. domestic market due to the limited supply.

Also new – and available in travel retail – is Tequila Corralejo Extra Anejo (40%abv), retailing at US$78, which was launched this year and is doing “extremely well”, according to Berardi, particularly in the U.S., where the market for high-end tequila is booming post-pandemic. “This unique liquid and the bottle are very attractive to the consumer,” Berardi adds.

Additionally, FSW has introduced to the U.S. market a Corralejo tequila product made with a higher agave sugar content, bottled at 40%abv. This smooth, sipping tequila has a sweeter taste and is available in Mexican travel retail.

As for Ron Prohibido, Berardi reports that the Mexican rum brand is perform ing very well in Europe, Canada, Mexico, Australia, Japan and Italy.

Despite the uncertain geopolitical situation, Berardi passionately believes in the future of his growing product port folio with its distinctive point of view. He has just returned from a long business trip to Japan to see Nobushi’s production in action. “It’s an exciting moment,” he says.

(Left) Raffaele Berardi, Owner, Founder and CEO of Fraternity Spirits World GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022 93

On the

NoLo lookout


William Grant & Sons (WGS) is adjusting to the low-liquor (NoLo) which is with top travel

The no- or low-liquor (NoLo) product category is expected to grow – and even spirits giants such as William Grant & Sons (WGS), maker of Glenfiddich and The Balvenie, are having to adapt.

Pioneering European retailer Gebr. Heinemann recognizes that there is a strong moderation trend sweeping across key global markets, bringing increased demand for reduced-alcohol or alcoholfree drinks.

According to drinks analyst IWSR, no-alcohol drinks grew by 15% globally in 2021 compared to 3% growth in alcoholic beverages. The pandemic is focusing attention on personal health, motivat ing consumers to search for drinks with no- or low-alcohol, fewer calories and additional health benefits for both the body and mind.

WGS’ Atopia range of super-premium non-alcoholic botanical spirits was introduced to Gebr. Heinemann’s airport retail teams and top distribution airport customers at the 2021 TFWA World Exhibition.

Glenfiddich’s The Perpetual Collection not only celebrates the return to travel but also the brand’s innovative whisky-making process and its ambition never to stand still
no- or
gaining ground
Lookout app was launched as part of an integrated program devoted to the support of GTR staff and customers

The ingredients of your journey

Available soon in duty free stores.

Atopia participated in Gebr. Heine mann’s first-ever NoLo category push activation “Fly High on Dry,“ which took place in Q1 2022. Atopia Spiced Citrus was seen across the operator’s key locations: Berlin, Frankfurt, Hamburg, Copenhagen and Amsterdam. Even dur ing a quiet period, the activation received “very positive” consumer feedback, according to Gebr. Heinemann.

Need for exclusivity

Aside from the NoLo category, WGS’ biggest launch in global travel retail in the last decade, Glenfiddich’s The Per petual Collection, not only celebrates the return to travel, but also the brand’s innovative whisky-making process and its ambition never to stand still. This disrup tive collection is exclusive to travel retail and WGS dubs it “the spine of our range, seeking to satisfy our consumers' need for exclusivity.”

This idea of perpetual motion also harks back to the liquid and its produc tion process – created using pioneering Solera vats, which are never emptied but rather continuously filled with a new generation of whiskies, for deep layers of flavor.

The Perpetual Collection launched in August 2022 in Europe and the global rollout took place a few months later in October.

“We’ve always aimed to be category innovators and leaders,” says Lindsay Hitzeroth, Head of Customer Marketing Global Travel Retail, WGS. “With The

The Balvenie is built by our craftsmen and their stories.

“And so, this range tells the stories of our community. The Stories range is a collection of single malts that celebrate human stories of endeavor and unex pected twists, as told by its craftsmen at the distillery in Dufftown, Scotland. They tell the story of the liquid.”

Even in digital, WGS is innovating. The company launched earlier this year The Lookout app designed to support the travel retail channel and sales staff. Devel oped by its partners at Quantum, the app is dubbed “an always-on, one-stop-shop that upskills, facilitates search and spin and networking, but also a place to inspire and motivate.”

“The response to the app has been great,” says Hitzeroth. “Our ambassadors feel more connected and informed.”

WGS plans to rollout The Lookout 2.0 app based on learnings.Perpetual Collection, we’ve set in motion an exciting Glenfiddich chapter, which we know will continue to embed our ambi tion, influence and leadership in luxury spirits. Through it, we’ve redefined our range to reflect our luxury agenda, pre miumizing our core to be the entry point into our luxury portfolio.”

The Solera vat process, pioneered by Glenfiddich in the whisky world, epitomizes Glenfiddich’s philosophy of breaking boundaries. The vats still contain the original liquid from 1998 – a line from the past into the future. Each successive vat fill is like a new generation of whisky building on the past, ever increasing in character and complexity, giving consum ers a distinctive experience with every sip. The range comprises four exclusive expressions: VAT 01 (40%abv); VAT 02 (43%); VAT 03 (50.2%, non-chill filtered); and VAT 04 (47.8%, non-chill filtered).

Human stories

The Balvenie’s Stories range, including the newly released travel retail exclusive Week of Peat Aged 19 Years, boasts an interest ing concept surrounding human stories. It tells of Ian Millar, Global Brand Ambas sador, and the one week per year The Bal venie distils a batch of peated malt, which adds an extra layer of peated intensity to the brand’s signature honey character.

“At Balvenie we believe in the people and the process,” says Millar. “Our distillery was founded (and still is) on a belief in the value of people, the special ness of things made by hand, with heart.

WGS’ Atopia Spiced Citrus, a No-Lo beverage

Atopia Spiced Citrus was seen across Gebr. Heinemann’s key locations: Berlin, Frankfurt, Hamburg, Copenhagen and Amsterdam as part of the “Fly High on Dry” activation
WGS NoLo Category

Beaute Luxe Foundation aims to help women in Africa

BEAUTE LUXE is introducing the Beaute Luxe Foundation. Based in Kigali, Rwanda, the Foundation aims to provide women in Africa in vulnerable situations with access to hygiene and beauty.

The Foundation is based on the belief that improving the wellbeing of people – whether through hygiene or beauty –can help improve self-esteem and self-confidence.

The Foundation provides complete hygiene and beauty bags with soap, shampoo, conditioner, shower gel, body cream, toothpaste, hairbrushes, sanitary pads and more to women who need the products.

“With our teams of volunteers, we organize monthly distributions in the main towns and villages of Rwanda with the support of the French Embassy in Kigali – and we hope to do the same in many other countries in Africa,” says David Dayan, Founder of the Beaute Luxe Foundation.

BEAUTE LUXE also provides employment opportunities to women in Africa in its companies across the continent.

Dayan says BEAUTE LUXE has been donating hygiene and beauty products for many years but felt that creating the Foundation would enable the company to better help people in need.

The Foundation will be audited annually by the indepen dent control office in Rwanda.

TAIRO International to distribute Frida Kahlo fragrance

TAIRO International has announced it will distribute Frida Kahlo fragrances in the Caribbean and Mexico travel retail markets. Manufactured by Fantasy Fragrances, Kahlo Eau De Toilette is inspired by world-renowned Mexican-born artist Frida Kahlo.

“We are thrilled to introduce this brand in the region,” says TAIRO CEO Robert Bassan. “Frida Kahlo’s legacy is still remembered globally, and the brand will be a perfect addi tion to our portfolio and those of our retailer partners.”

The fragrance aims to bring “the essence of Frida Kahlo to life,” says TAIRO. It encourages people to become immersed in “a fragrance that transcends time, art and nature.”

“Notes of pink grapefruit and black pepper blended with jasmine and lily of the valley guide you through a flourishing garden while patchouli and musk elevate your senses and linger on your skin. The scent is captivating and enduring, just like her legacy,” the company says.

The red lacquered bottle symbolizes Kahlo’s passion, courage and strength. The floral design on the bottle and outer packaging is representative of the artist’s love for nature. The fragrance is packaged in an illustrated garden within its reusable drawer box, and the bold floral patterns and vibrant colors bring collectible value.

“This fragrance is an homage to all the fearless people who embrace their authentic self,” TAIRO adds.

The Frida Kahlo Eau De Toilette features bold colors and floral designs, an homage to the late artist’s passion, courage and strength, as well as her love for nature David Dayan, Founder of the Beaute Luxe Foundation and CEO at BEAUTE LUXE

Champagne Lanson to launch Le Vintage 2012

In celebration of the variant’s 10th anniversary, Champagne Lanson will launch its Le Vintage 2012 at TFWA Cannes 2022 (Blue Village, C8). Le Vintage 2012 is characterized by its aromatic intensity and complexity. It is generous and intense on the nose, with notes of candied fruit, dried apricots and almond and punctuated by aromas of acacia honey and sweet spices. The freshness extends and blends delicately into a long and refined finish.

“The last two years have been very difficult, but the champagne category generally performed very well in 2021. In the UK, for example (one of Lanson’s top markets) consum ers purchased an extra 2.3 million liters, or 260,721 nine-liter, cases last year, according to Nielsen figures compiled by The Grocer magazine. For Champagne Lanson, this translated into more than 20% growth.

“As travel restrictions continue to ease, we expect to see similar rapid recovery for champagne sales in GTR, where the category is currently over performing within the W&S sec tor, as consumers want to celebrate after the difficult years. In this context of unexpected high demand, Champagne Houses need to pay special attention to the product stock in order to deliver to all clients,” says Edouard De Boissieu, Head of Travel Retail, Champagne Lanson.

Ritter Sport announces major launches for 2023

In Cannes, Ritter Sport’s campaign will be about the push to “Discover.” It will include elements from summer 2022 airport activations, 2023 product releases, the taste of Ritter Sport premium chocolate and its sustainability commitment at Mediterranean Village, N18.

Visitors will meet brand ambassador Don Choco and experience the holistic “Discover Ritter Sport” retail activa tion, which has run at Zurich and Frankfurt airports.

The trade show will also see two major upcoming launches in 2023.

Ritter Sport’s successful Taste the World Limited Edition 100-gram bar will launch as a Travel Retail Edition for the first time in 2023. It includes 5 x 100-gram Ritter Sport Limited Edition square bar varieties encased in a colorful gift box fea turing the travel-inspired design concept of Taste the World.

As an extension of its Ritter Sport Mini Tower range, a new fresh flavor mix in taste and color will also launch next year.

The Mini Tower 250-gram mix consists of 15 mini bars available in five different flavors, offering a blend of fruity, milky and crunchy textures. The colorful pastel-hued mix includes two of Ritter Sport’s top flavors – mini Strawberry Yogurt and mini Alpine Milk – plus, mini Fine Milk Chocolate.

And recently, Ritter Sport selected Frankfurt Airport as the latest location for its month-long “Colourful World of Choco late” activation, which seeks to educate travelers while also celebrating its lovable sloth mascot Don Choco.

Taking place throughout August, the #DiscoverRitterSport promotion has been designed to continue the brand’s sus

tainable campaign message, first launched at Zürich Airport in June. Run in partnership with Media Frankfurt/Frankfurt Airport, the campaign has a two-fold purpose: to build aware ness of Ritter Sport’s 30-year sustainable brand ethos and to bring an interactive, experiential element to the way travelers discover the brand’s travel retail exclusives range.

Taste the World Limited Edition (5 x 100-gram square bar varieties) Champagne Lanson’s Le Vintage 2012

Duty Free Dynamics adds Timex and Adidas to portfolio

Duty Free Dynamics has incorporated Timex and Adidas watches to its brand portfolio, to be distributed across Americas Travel Retail.

The relationship between Duty Free Dynam ics and Timex Group dates back eight years, when DFD started operations offering Guess watches. This strong bond is celebrated by both companies with the new agreement.

DFD is a one-stop partner for global brands throughout the travel retail channel worldwide, providing business models and services that add value to brands and retail operators alike.

Zamora highlights GTR exclusives range

Martin Miller’s Gin in the one-liter format

At Stand H22, Red Village in Cannes, Zamora tells Global Travel Retail Magazine it will have the full range of GTR exclusives from the Zamora Company portfolio on display. Particularly the 1-liter formats for its flagship brands including Licor 43 Original and Horchata, Martin Miller’s Gin Original and Villa Massa.

“Travel retail really is where the full litre format finds it home,” the company says.

Brown-Forman to purchase Gin Mare brands

Gin Mare Capri will be added to Brown-Forman’s growing portfolio upon completion of the transaction

Brown-Forman Corporation has revealed it has reached an agreement to purchase the Gin Mare brands from Vantguard and MG Destilerías. Upon completion of the transaction, Brown-Forman will add Gin Mare and Gin Mare Capri to its growing portfolio.

Gin Mare ultra-premium gin is a Spanish gin with a Mediterranean-inspired recipe of botanicals, including Arbequina olives, thyme, rosemary, and basil. Gin Mare Capri, introduced last year, is made with Italian bergamot and lemons, along with Gin Mare’s four principal botanicals.

"Gin Mare and Gin Mare Capri are unique gin brands with impressive sales growth and strong distribution in important European markets. They are excellent comple ments to Brown-Forman’s super-premium portfolio," says Lawson Whiting, President and CEO, Brown-Forman Corporation. "We believe this exciting acquisition enhances our capacity to deliver meaningful global growth for the long-term."

Gin Mare was founded in 2010 by the Giró Family of MG Destilerías and Alfonso Morodo and Antonio Pardo of Vantguard. Today, it is sold in more than 70 countries and is the largest ultra-premium gin brand in the world according to IWSR. Gin Mare will continue to be produced at MG Destilerías in Vilanova i la Geltrú, a fishing village between the Costa Brava and the Costa Dorada.

Duty Free Dyncamis will distribute Timex and Adidas watches across Americas Travel Retail
MOLINARI - J21 Red Village

combats stalled recoveryFDFA

Frontier Duty Free Association (FDFA) is continuing to lobby for changes in a bid to revive busi nesses at the U.S.-Canada land border, where duty free sales have been halved due to continued government border regulations and the ArriveCan app.

During a recent interview with Global Travel Retail Magazine, Barbara Barrett, Executive Director at Frontier Duty Free Association, defends the Association’s position, as it battles to eliminate Arrive CAN in order to ease travel across the country. Introduced mid-pandemic, the app enables travelers to submit mandatory health information to the Government of Canada upon entry into the country.

Following a mid-summer press conference, in which border communities touched on FDFA’s so-far-unsuccessful efforts to overturn the government’s deci sion, Barrett assured businesses that the Association remains committed to the issue.

“I wouldn’t call it a failed effort because we haven’t given up. As reported by recent news, the pressure has been building. Since the government is dug in on the ArriveCAN app, it’s going to take more than one press conference to get them to back down. The government, at the very least, should work with [FDFA] to find ways in order to make traveling across the land border less cumbersome,” says Barrett.

Along with mounting media pressure, the Association is in communication with government officials regarding a plan of action. Featuring its Economic Report, FDFA shared a press release at the start of August, which shows that sales are still standing at a 45% reduction vs. previous sales numbers. It is evident that chan nel recovery along the land border is not occurring at the same rate as the rest of the economy. Barrett demands that if ArriveCAN is here to stay, the govern ment needs to create a financial package in order to support those unfairly affected.

Barbara Barrett, Executive Director at Frontier Duty Free Association, discusses the state of U.S.Canada land border duty free business, where sales have been hampered by continued government regulations
FDFA defends the Association’s position, as it battles the federal government to eliminate ArriveCAN in order to ease travel across the country
104 GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022  Frontier Duty Free Association Update

Shifting focus

Frontier Duty Free Association joined forces with Tourism Association of Canada, Hotel Association of Canada and a list of other tourism sector associations to form the Coalition of Hardest Hit Businesses in September 2020. As it works to protect the overall travel and tourism industry, FDFA and the Coalition have had to modify their approach.

“When we started the Coalition, we focused on the support of the tourism industry and industries that were the hardest hit by the pandemic. We success fully worked to receive the support of the federal government. Now, our focus in on building recovery and breaking down barriers for travel into the country. When it comes to ease of travel, Canada is not in line with the rest of the world. That’s really our focus now – trying to get Canada back in line,” explains Barrett.

FDFA event details

Looking ahead on the calendar, the Association has once again made the difficult decision to not hold its annual FDFA Convention in traditional format. However, the FDFA Event Advisory Committee is finalizing the details of its upcoming “forum” 2022 and navigating opportunities for the return of standard programming.

“We’re looking at hosting the event in a smaller space and following a condensed format. For dates, it’s a moving target at the moment, but it will take place in November. We’re calling it a ‘forum’, so we can meet with some of the largest sup pliers and have one-on-one contact. And then, we’ll schedule a virtual forum in the new year to organize contact with other suppliers,” adds Barrett.

Although the Association still has a difficult road head, Barrett knows the

duty free business will thrive again. She notes that duty free remains the hardest hit.

“We expected with the border open to all vaccinated travelers – American and Canadian – that recovery would happen quickly, as in the rest of the economy. We know that once the border is back to normal, we’ll be able to fully recover. So, until that happens, we’re in this stalled recovery state. We will not stop working on achieving that.

“It feels a bit like a David vs. Goliath situation, where we’re not a big associa tion, but we are still moving the needle. Along the border, we have the support of almost every community across the country,” concludes Barrett.

Barbara Barrett, Executive Director, Frontier Duty Free Association GLOBAL TRAVEL RETAIL MAGAZINE OCTOBER 2022 105

WRAPPR steps into travel retail

For most travelers, picking up a last-minute gift or unexpectedly having too much to carry is famil iar. CEO and Founder Brittany Trafford says Wrappr is venturing into travel retail to help solve these problems, while keep ing sustainability, beauty and luxury top of mind.

Global Travel Retail Magazine (GTRM): Can you pinpoint the original inspiration behind Wrappr and its mission?

Brittany Trafford (Trafford): When I had my first baby in 2019, we received baby gifts in plastic-coated gift bags. Beyond the artwork being terrible, it was also very specific to a baby girl. The bags were not designed to be recycled or reused, and it felt like everyone in my life went to the dollar store and bought the same $2 gift bag that was destined for the landfill.

I wondered why there was not a reusable alternative, so I started looking. That’s when I remembered souvenirs that my brother brought home from Japan – Furoshiki wraps. They are the perfect solution. Easy to fold, incredibly beautiful, each one is a piece of art, and they can be endlessly reused and regifted.

Wrappr honors the Japanese concept of Furoshiki, wrapping gifts and items in fabric, which is seen as an art form in Japan. We have many Japanese artists among our worldwide commissioned designers who create the patterns for the wrap. Our artists are paid upfront for their work and receive a royalty on every sale.

We have two missions: the first to eliminate waste created by gifting, and the second to support real artists. Our goal is to give art, not waste.

GTRM: Why is the brand ideal for travel retail shoppers?

Trafford: We’re eager to work with travel retailers all over the world to bring this product to all people who love to travel. We’re well positioned to enter the travel retail space as we’ve expanded our product line in 2022 to four sizes and a wider range of materials, includ ing recycled polyester, mulberry silk and organic cotton. We already sell whole sale to small boutique retailers in North America, Europe and Asia, and Wrappr is currently available at retailers in Canada and the U.S.

Our Furoshiki wraps are a circular economy product, perfect for the traveler who cares about the environment and eliminating waste but who does not want to sacrifice beauty and luxury.

They are the perfect product for travel ers who are picking up a gift for a friend, family member or business partner on their journey. They serve as a simple, easy to use alternative for wrapping paper that requires no tape or scissors, which travel ers don’t have with them. They comple ment other popular travel retail purchases perfectly; a bottle of wine, perfume, confectionery, you name it.

And, our wraps can even be used as an accessory, such as a satchel for flight snacks, a scarf to keep warm on the plane, or as a shawl to cover up at tourist destinations. They really have endless use. Plus, they conveniently have the sustainability, beauty and luxury that travelers are looking for and few other products offer.

Using a Wrappr complements other popular travel retail purchases perfectly; a bottle of wine, perfume, confectionery, says CEO Brittany Trafford Brittany Trafford, CEO and Founder at Wrappr
3 Airports 3 Cities 8 Shops
EMMA WATSON The new refillable fragrance SCAN AND Explore the Paradoxe
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