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TFWA WE 2013


Bhatia Traders’ regional realm p.

WDFG Kuwait goes mini p.



Bahrain Duty Free overcomes p.

JTI finds solutions p.



Cate Blanchett

the new fragrance

Letter from the Editor

Brighter days


orldwide markets are constantly in flux, and the increasingly global nature of business means that developments— whether positive or negative—in one corner of the world can have very real and far-reaching effects thousands of miles away. As we all know, travel retail is particularly sensitive to the ebb and flow of markets worldwide, and the MENA region specifically is a study in how a multitude of internal and external factors can affect a region’s prosperity. While it’s clear that some pockets of MENA are in the throes of change, other areas—Dubai and upcoming emirate Ras al Khaimah (RAK) being two examples of many—are actually seeing a growth in passenger numbers in part because they’re seen as even more attractive destinations for travelers in the region given the sociopolitical issues plaguing some neighboring countries. Farther afield the slow but steady economic stabilization in Europe has also resulted in an incremental increase in the number of Europeans visiting parts of MENA, and despite a recent easing in the pace of economic growth in Asia, and particularly China, Asian travelers are still very important to the continued growth in travel to the Middle East. In fact, recent traffic statistics from IATA indicate that the Middle East is the fastest-growing emerging market worldwide in terms of passenger numbers. Of course, the areas experiencing high growth in MENA represent only a small portion of the region as a whole, meaning that there’s plenty of potential for continued growth. This, of course, is not meant to minimize the very serious sociopolitical issues that some countries are now facing; rather, it is an effort to look optimistically at a region that, on the whole, is still performing remarkably well. As I write Dubai Airports is ramping up for the opening of Al Maktoum International at Dubai World Central, and Hamad International Airport in Doha—with a capacity of 50 million passengers—is a clear indication that the State of Qatar is expecting to welcome many more travelers in the coming years. As mentioned, RAK is another example of an emirate that is experiencing phenomenal growth in traffic of 25% year on year. Despite starting from a small base, this growth is forecast to continue. If you need inspiration to imagine where RAK may be in 20 years, just think of what Dubai looked like in 1993. And success stories are also coming out of areas that were experiencing problems this time last year. Bahrain Duty Free performed remarkably well in the first half considering it had a drop in passenger traffic at Bahrain International Airport and new tobacco restrictions to contend with, and year-on-year tourist numbers to Tunisia were up a heartening 27% during the first half. Indeed, inspiration and opportunity still abound in the region. I invite you to browse through our TFWA WE 2013 issue of Gulf-Africa Duty Free and see for yourself how airports, operators, suppliers, distributors and service providers in MENA are making every effort to ensure a bright future and an ever-growing travel and duty free industry. Kindest Regards, Ryan White Concessions, Liquor and Tobacco Editor



Gulf-Africa Duty Free & Travel Retailing (ISSN 0954-0592) is published four times a year (Spring, Fall and Winter) by Global Marketing Company Ltd., 26 Pearl Street, Mississuaga, Ontario L5M 1X2 Canada. It is distributed to duty free operators and distributors in the following countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE, Yemen, Algeria, Azerbaijan, Benin, Cameroon, Cape Verde, Djibouti, Egypt, Ethiopia, Gabon, Ghana, Guinea, Iran, Ivory Coast, Jordan, Kenya, Lebanon, Madagascar, Malawi, Mali, Mauritius, Morocco, Mozambique, Niger, Nigeria, Namibia, Pakistan, Reunion, Senegal, Seychelles, South Africa, Sudan, Syria, Tanzania, Togo, Tunisia, Turkey, Turkmenistan, Uzbekistan and Zaire, as well as to duty free suppliers worldwide. Subscriptions: $200 for one year, $300 for two years and $400 for three years. Art and photographs will not be returned unless accompanied by return postage. The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or editor. October 2013, Vol. 23, No.2. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2013 Global Marketing Company Ltd.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING 26 Pearl Street Mississauga, Ontario L5M 1X2 Canada Tel: 1 905 821 3344; Fax: 1 905 821 2777




OCTOBER 2013 • VOL 23, NO 2

Contents 10 Regional realm


With a well established presence in the UAE, Bhatia Traders eyes expansion in Africa and farther afield

14 Staying on track DUBAI DUTY FREE

Dubai Duty Free is no stranger to year-on-year sales increases, and the company’s performance over the first eight months of the year indicates that 2013 may indeed be another record-breaker

18 Keeping busy in Kuwait

34 Chart toppers INDUSTRY REPORT


The Mideast may not be the world’s biggest air travel market, but it’s definitely the fastest growing

36 Committed to the cause MIDDLE EAST AIRLINES

Middle East Airlines remains committed to ensuring its passengers continue spending onboard with high-end duty free offerings tailored to its largely Lebanese clientele

38 The taste of luxury


Kreol Trading Establishment partners with Duc d’O to bring the company’s unique and delectable truffles to the Arabian Gulf region


In addition to a recent large-scale promotion, Aldeasa That-es Salasil Kuwait Duty Free plans the opening of a new 160-square-meter store

22 A world of possibilities

40 Overcoming challenges BAHRAIN DUTY FREE

Bahrain Duty Free has had its share of challenges over the first half, but the operator continues to find innovative ways of enticing travelers to spend


Commercial and Finance Director Mohammed Qazi tells Gulf-Africa Duty Free that a bright future lies ahead for Ras Al Khaimah International Airport

26 Modern appeal

42 Embracing Africa MEADFA

The continent of Africa will play a major role during MEADFA’s 2013 conference, along with workshops focusing on airports, inflight and social media


With a newly renovated shop, Iraq Duty Free is seeing the rewards with increased passenger traffic and sales

28 Paying it forward BOUTIQUES DE MAPUTO

Following a large-scale expansion and a newly completed international terminal at Maputo International Airport, Boutiques de Maputo excels on the sales and traffic fronts

30 Falling into place

Red Kite leads the way 44 One through turbulent times ONE RED KITE

Innovative travel retail consultancy brings new research tools to the market

46 Under one roof TRAVELLER

Chalhoub Group consolidates its travel retail into a single operation


Dubai International nears 6 million passengers in August and reaches a major milestone toward the October opening of Al Maktoum International at Dubai World Central

32 Going Green


Abu Dhabi Airports Company’s Midfield Terminal Building receives recognition for sustainability as AUH’s existing operations exhibit sustained growth in traffic

48 Feeling fragrant ITF

ITF expands globally with the launch of three branded fragrances

50 The heady scent of success AJMAL PERFUMES

New travel retail exclusives and ongoing international demand for oudh based fragrances is giving Ajmal Perfumes a global advantage

52 New—but still known

72 Teeming with tradition

54 Playing on the world stage

74 Sky high

56 Premium plus

76 A recipe for success

58 A keen edge

78 On the up and up


Clinique reworks its science-based Dramatically Different Moisturizing Lotion, but keeps the trademark texture



MacDuff International showcases three new whisky variants at Cannes, each with its own compelling story


A number of famous city skylines get the blue treatment with the new limited edition Johnnie Walker Blue Label skyline range

Amouage crosses the threshold as an international leader in luxury fragrances


BPI’s ultra-premium offers find a warm welcome in the Middle East and Africa


New niche consultancy aims to shake up the luxury end with unique ‘storied’ brands

60 Top of class


As the gift-giving season approaches, spirits suppliers release special editions for travel retail that exude equal parts style and substance


With revenue up in the first half, a clear focus on travel retail and a strong portfolio of recognized brands, Distell enters the final stretch of 2013 on a high note


Although facing a market slowdown, Aigner remains focused on launching novelties and catering to promising regions

62 Tateossian set to accessorize

80 Generating a buzz GRUPPO CAMPARI

Gruppo Campari prepares to wow attendees at this year’s TFWA WE with numerous new showcases across a variety of exciting spirits brands


Global jewelry brand extends its line of fashionable pieces onboard

82 Authenticity abounds RUSSIAN STANDARD

With the acquisition of CEDC, Russian Standard Corporation adds more than a dozen authentic brands to its portfolio to compliment the tremendous success of Russian Standard Original, Gold and Platinum

64 Autumn accents


Jewelry brands have taken note of this season’s bold trends and have delivered accordingly with new collections

66 Next Stop: The Middle East



Scorpio Worldwide takes the region by storm with a brand new office and product ranges

70 Ahead of the game

tina secures new wine listings, expands beyond the category to confectionery

90 Finding solutions

Japan Tobacco International commits itself to worldwide travel retail, working with operators and airports to drive tobacco and cross-category purchases

68 Creating a city of chocolate ANTHON BERG

n Freixenet makes inroads in Middle Eastern duty free with varied portfolio of quality wines n Savary Argen-



Valrhona’s quest for excellence sees it launch La Cité du Chocolat this month



Anthon Berg stays ahead by focusing on implementing new developments and targeted strategies


TOBACCO NEWS n Ray Tobacco sees success with Walton Whisky in the Gulf, focuses on securing listings in Asia n British

American Tobacco International to continue innovating with new products at TFWA WE 2013 n Imperial Tobacco brings a fresh Gauloises taste to Cannes

NEW AND NOTABLE n Blue Square Travel n The Cybill Bag n Halloween Fleur

Bhatia Traders

Regional realm With a well established presence in the UAE, Bhatia Traders eyes expansion in Africa and farther afield by



hatia Traders L.L.C. is an independent arm of House of S.T. Bhatia, a UAE-based trading house established in Sharjah in 1969. S.T. Bhatia has a wide range of business interests in sectors as varied as logistics, hospitality services, diplomatic supplies, management consulting, event management and training. The company was the first of the parent company’s independent arms to be launched. The core business of S.T. Bhatia’s Bhatia Traders arm encompasses the operation of

Suresh T. Bhatia is the Chairman of House of S.T. Bhatia and has taken on an advisory role as the company continues to pursue an aggressive expansion and development agenda

Bhatia Traders’ Managing Director, Rajeev Bhatia is actively looking at business expansion opportunities abroad


duty free shops, bonded warehouses and a chain of seamen’s clubs spanning ports across the northern UAE. The company also supplies ship chandlers, oil rigs, cruise lines, cargo ships and more. Bhatia Traders runs a total of seven duty free shops in the UAE: two at Sharjah’s Port Khalid, one at Sharjah’s Hamariyah Free Zone, and one each at Khorfakkan, Fujairah, Ajman and Ras Al Khaimah. It also runs five seamen’s clubs: one each at Port Khalid, the Hamariyah Free Zone (the scaled-down facility there is described as a Deli/Cafe), Khorfakkan, Fujairah and Ras Al Khaimah’s Saqr Port. There are bonded warehouses in the Jebel Ali Free Zone, the seaports at Sharjah and Fujairah, and also at the Ajman, Khorfakkan and Umm Al Quwain seaports. After the company’s first concession at Sharjah, the operation branched into the seaport business, where the free trade system within the Emirates made them a lucrative business proposition, according to Rajeev Bhatia, Managing Director of Bhatia Traders, and son of S.T. Bhatia Chairman and Founder Suresh T. Bhatia. “Free trade came about because of UAE’s access to the sea,” Bhatia says. “That traditional way of doing business, [the] sea has been the way UAE has traded with the rest of the world or has been used as the hub of central trading. When the seaports started getting organized, my father [S.T. Bhatia Founder and Chairman Suresh T. Bhatia] saw a huge opportunity, that this was a free trade zone like an airport. They also needed similar services.” The first duty free store, at 75 square meters, sold duty free staples such as liquor, perfumes and tobacco, but quickly built out its product range from this starting point. Fujairah’s seaport and airport came next, with Bhatia Traders having the distinction of being the inaugural concession holder at the airport. The seaport was a key win for Bhatia, as it is the largest


multipurpose seaport located on the eastern seaboard of the UAE. Indeed, along with Singapore and Rotterdam, it’s one of the largest bunkering ports in the world. “As a home-grown UAE company with a single owner, we had these limitations and we were building our experience,” Bhatia recalls. “The challenge was whether it was an international company coming into play or another company which was going to make a higher financial bid for the concession—and both ways we know exactly what type of business can be sustained in these markets. We chose to do the businesses which made more sense for us.” More recently the company opened a shop at Ras Al Khaimah’s Saqr Port about 18 months ago. The Saqr Port, one of the bulk cargo ports in the Middle East, is an important addition to Bhatia’s network. Ras Al Khaimah is also the fourth largest emirate in the UAE and boasts a highly diversified economy. The duty free store is based on the company’s standard layout, an approach Bhatia understands is important to generate customer familiarity and loyalty. “If you walk into any of our shops we have a grid layout —we work like any other international duty free operator,” he says. All of the company’s duty free stores were renovated in the last seven years, tapping an annual budget for “face lifts” for the facilities. Bhatia says the company employs 15 people in each shop, with the logistics backend employing another 60 to 75 people, a number that includes IT support staff.

Seaside service

Seaports are very unique businesses, says Bhatia. “For us a majority of our sales are made to repeat customers. Our customer base is the crew of the ships, whether they’re container ships, bulk cargo carriers, oil rigs that come in for repairs or cruise liners—and then there are ferries from adjoining countries.”

Asians make up 50-60% of the crews so they’re the biggest customer group. Europeans, who fill the managerial roles, make up 10-15%. There’s also a strong contingent from countries in Eastern Europe. And about 10% of the customer base is made up of marines, Bhatia says. All major cruise lines are also listed. “These people aren’t going from point A to point B,” Bhatia says. “These are people that live on the ships on a daily basis. They need to cater to themselves for daily amenities, whether it’s a pair of socks, shoes, some clothes or toiletries. So we offer convenience stores. We also sell high-sea fishing equipment for people who fish. And when people finish their tenure they need gifts for their families like perfume, souvenirs and so on.” The average spend is US$75-$100 and consists of one to three items. The company is also aware of a strong demand for gifts. “When you’re on a ship you can’t go home on festive seasons,” Bhatia says. “We actually courier your gifts to your home. We’ve been doing this for the last four or five years. You pick 10 gift items and we will send a courier to your family. You pack your own box and seal it and we’ll ship it.” Bhatia says it’s very important for the customer to have this one-stop kind of service. Connectivity is also vitally important to seamen, who are frequently isolated and far from terra firma for very long periods of time. Accordingly, Bhatia Traders has developed an operation that provides laptop repair and other computer services with the same one-stop mentality and an emphasis on quick turnaround. “As we provide services and laptops, we also service these products,” Bhatia says. “This can be arranged by email. We try and service the laptop while the customer is at the port. We have drivers that will take the laptop to a service center that we work with.” The network of seamen’s clubs operated by

All of Bhatia Traders’ duty free stores were renovated in the last seven years

Bhatia Traders offers a wide range of services for seamen when they’re in port. In addition to audio and video entertainment systems, they offer electronic gaming, pool tables, library services with newspapers and periodicals, international telephone service, a restaurant, a bar and cafeteria amenities, religious facilities and what’s called a “slop chest,” where customers can buy and mail postcards or buy souvenirs and other memorabilia. The seamen’s clubs, while forming a unique and distinctive part of Bhatia Traders’ business, also in fact perform double duty for the company’s other operations, as Bhatia explains. “The seamen’s club at Fujairah Seaport has a bar service from 8am to 11pm and also serves food. It’s more of a social place and it’s used as a marketing tool for our duty free facility. Customers that are using the port facility don’t have to walk away from the port they can stay and utilize the shop facilities.” Bhatia Traders also provides up and down shuttle services between all shipboard berths and the shop. Additionally, the company provides ship chandelling services onboard, where buyers can order goods from the shops and have it delivered directly. Timing is all important in this type of operation, and transactions have to be completed in advance of a vessel’s arrival; Bhatia says it has established a track record of timely delivery, which keeps the company in good stead with existing customers and also helps in acquiring new ones. The product ranges covered include wines and spirits, tobacco, confectionery, frozen meats, canned foods and electronic products. The company’s far-flung diplomatic supply

operation covers the entire Middle East and Indian subcontinent, supplying wines and spirits, tobacco, cosmetics, perfumes and fastmoving consumer goods (FMCG), a category that covers products that are sold quickly and at low cost but in relatively high volume, such as soft drinks, toiletries and groceries. Overall, the shops under Bhatia Traders’ purview offer no fewer than 11,000 SKUs in all the major duty free product categories: liquor, tobacco, perfumes and cosmetics, foodstuffs, computers and electronics, healthcare, toiletries, sporting goods, apparel, luggage, home appliances and more. The company maintains an emphasis on consistent product pricing, backed up by continuous evaluation and adjustment in response to market developments. Customer feedback is taken seriously and helps to develop business strategy, says Bhatia.

The strongest links

Vital to Bhatia’s duty free business, the company’s bonded warehouses across the region perform an important logistical role, enabling the storage and rapid shipping of products to seaport and airport retail locations as required. Service is provided 24/7, and the warehousing and retrieval systems are highly mechanized, which reduces labor time, increases the accuracy of order picking and minimizes the risk of damage. Bhatia Traders also benefits from S.T. Bhatia’s extensive global network of suppliers and manufacturers. The company won the highly coveted ISO 9001:2008 designation for retail and wholesale duty free operations after GULF-AFRICA DUTY FREE & TRAVEL RETAILING


Bhatia Traders drinking cup, and the non-profit Keepers of the Quaich fellowship is promoted collectively by the industry to spread the word about Scotch whisky and develop international awareness and exposure. Founding partners and members include Chivas Brothers Ltd., George Ballantine & Son, Whyte and Mackay and Diageo Plc. While Suresh T. Bhatia has occupied the Chairman position and more of an advisory role lately rather than an active one, the company continues to pursue an aggressive expansion and development agenda. Long term goals include the expansion of seaport operations outside the UAE, particularly into the Far East and further into the African market. “We’re trying to find the right place and the right opportunity, and also where we can do justice to the business,” Bhatia says, promising activity within the next six months to More recently the company opened a shop at Ras Al Khaimah’s Saqr Port a year. Bhatia’s background as

a detailed operational audit by Bureau Veritas, a global testing, inspection and certification specialist. And in an interesting twist, S.T. Bhatia’s involvement with and knowledge of the premium Scotch whisky category won Rajeev and his father induction into the prestigious “Keepers of the Quaich” fellowship in 2011, in recognition of their service to the category. The Quaich is a traditional Scottish two-handled

a graduate from UK & Executive programs at the Harvard Business School gives him strong awareness of global markets and opportunities, and of the need to develop a unified, consistent presence across markets and cultures that can differ very widely. “They’re very similar operations, just in a different part of the world,” he adds. “We’re looking at strategic alliances with companies in the same business, and we’d go in as joint venture partners into these businesses, and add our funding and our industry experience. Our strategy is rather than being clients to our brands, we are brand partners, and we understand the brand strategies ands how they see our markets,” Bhatia says. “We know what we’re good at—we don’t try and be overambitious. Our growth in the seaport business today is because the seaports realize we know what we’re doing. It’s a plugand-play operation.” Despite clearly having a firm grasp on the company’s diverse business interests, Bhatia was quick to give credit where credit is due when asked about the reason for S.T Bhatia’s success over the years: “My father is a visionary,” he says. “We owe all our success to him.” 

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Dubai Duty Free




on track

Dubai Duty Free is no stranger to year-on-year sales increases, and the company’s performance over the first eight months of the year indicates that 2013 may indeed be another record-breaker


ubai Duty Free announced just before this year’s TFWA WE that it recorded sales figures of US$1.14 billion in the first eight months of the year, representing a 12% increase over the same period last year and signaling an excellent prospect for the operation’s 30th year. Since opening its doors for business on December 20, 1983, the operation has seen year-on-year growth with sales doubling six times since then from US$20 million to an anticipated US$1.8 billion this year. Employing 6,000 people, the operation has consistently raised the benchmark for airport retailing in the Middle East. “We are pleased with the operation’s performance and no doubt the opening of Concourse A in January has contributed towards this,” said Executive Vice Chairman Colm McLoughlin with regard to the most recent sales figures. “Plans are very much in place for the opening of retail operation at Al Maktoum International in October. In the longer term, we are busy planning the new retail area in Concourse D at Dubai International,” he added.

Perfumes, Liquor and Gold retained the top three category positions, with Perfumes showing a sales increase of 16% to US$181 million year to date, while Gold retained its third position showing an increase of 11% to US$113 million. Sales of Tobacco were up by 12% to US$96 million while sales of Confectionery were up by 13% to US$92 million. Other notable increases in sales were seen in Cosmetics and Delicatessen, which rose by 17% and 13% respectively over the same period last year. Moreover, departure sales have increased by 12% compared to the same period in 2012 and similarly, arrivals and public shops have shown an increase of 15% and 14% respectively. To date Dubai Duty Free has received over 300 awards which bear testimony to the operation’s retail success, and those received this year alone include the Global Traveller award for Best Duty Free Shop; the Business Traveller Middle East award for Best Airport for Duty Free Shopping; the DFNI award for Middle East Travel Retailer of The Year and the Patron of the Arts award presented by the Sheikh Mohammed bin Rashid Al Maktoum Patron of Arts Awards.


Indeed, while Dubai Duty Free has proven that it’s more than capable of achieving significant year-on-year growth, the opening of Dubai Airports’ Concourse A, the world’s first purpose-built facility for the Airbus A380, certainly hasn’t hurt business. With 11 floors and a total built-up area of 528,000 square meters, Concourse A is connected to Concourse B and Terminal 3 via an underground train. Unlike any other airport facility in the world, the First Class and Business Class lounges have dedicated floors that offer direct and convenient access to aircraft boarding gates. The lounges, which extend the entire length of the concourse, are the largest in the world and offer customers fine dining with showcase kitchens, conference rooms, business centers, a Timeless Spa, entertainment zones, dedicated smoking areas as well as children’s play areas. The


Dubai Duty Free’s operations in Concourse A


“We are pleased with the operation’s performance and no doubt the opening of Concourse A in January has contributed towards this.” COLM MCLOUGHLIN, EXECUTIVE VICE CHAIRMAN, DUBAI DUTY FREE

First Class lounge passengers also have the added convenience of a dedicated duty free shopping area and a Le Clos wine cellar. Of course, Concourse A also offers an enhanced duty free shopping and dining experience featuring a wide variety of high-quality and globally recognized food and beverage brands which include Paul, Umaizushi Bistro, Picnic, Wafi Gourmet, Carluccio’s, Cho Gao, Pulp Juice Bar, McDonalds and McCafe, Shake Shack, Costa Metropolitan, Starbucks, Le Pain Quotidien, Giraffe, Heineken Lounge, Jack’s Bar & Grill and Moet & Chandon Champagne Bar. Concourse A boosts capacity at Dubai International from 60 million to 75 million passengers per year and is considered a vital part of Dubai Airports’ US$7.8 billion Strategic Plan 2020, which will increase airport capacity to 90 million by 2018. Concourse A boosts capacity at Dubai International from 60 million to 75 million passengers per year, helping to ensure that Dubai Duty Free has plenty of potential customers

Wonderful fragrances Collecta able cosmetics Exquisite jewellery One way to have it all


Dubai Duty Free

Dubai Duty Free’s liquor store in Concourse A, advertising one of the car giveaways for which the operator is known

Surprising shoppers

Promotions have always played an important part in Dubai Duty Free’s strategy of engaging with travelers, and just before the 2013 Cannes exhibition, the operator conducted the 151st Draw of its popular Millennium Millionaire promotions, announcing another lucky winner who can proudly call himself a dollar millionaire. Aliasghar Pazoki, an Iranian national living in Dubai, received the surprise phone call from Dubai Duty Free informing him that his ticket,


no. 4495 in Series 151, was drawn. Pazoki, a fifty-five-year-old businessman who owns a trading company in Dubai, is the third Iranian national to win a million dollars in the Millennium Millionaire promotion and was understandably in shock when he first heard about his win. Dubai Duty Free conducted its Finest Surprise Draw directly after the Millennium Millionaire draw and announced three lucky winners of luxury vehicles.


Ellienti Girija, an Indian national living in Dubai, won a Bentley Continental Flying Spur Speed in Series 1538 with ticket no. 1132, while Cato Naeverdal won a Mercedes Benz S500 in Series 1540 with ticket no. 0085. Finally, a Ducati Streetfighter 848 was won by Abin Raj, a twenty-nine-year-old Indian national living in Dubai, in Series 219 with ticket no. 0234. Following the draw, a presentation was made to two previous Finest Surprise winners. A three-year-old boy from Dubai, Danial Khezri visited Dubai Duty Free along with his father Mahmood Khezri, an Iranian national, to receive his first car, a Porsche 911 Carrera Coupe, which he won in Series 1536 with ticket no. 0798. Another winner, Jose Cornejo, a Filipino national living in Sharjah, received the keys to a Ducati Superbike 848 EVO, which he won in Series 218 with ticket no. 0888. The Millennium Millionaire and Finest Surprise draws and presentations were conducted by Dubai Duty Free senior officials, namely Colm McLoughlin; George Horan, President; and Sinead El Sibai, Vice President – Marketing. 

World Duty Free Group

Keeping busy in Kuwait



In addition to a recent large-scale promotion, Aldeasa That-es Salasil Kuwait Duty Free plans the opening of a new 160-square-meter store


ust ahead of this year’s TFWA exhibition, Aldeasa That-es Salasil Kuwait Duty Free announced one of its hottest in-store promotions to date by giving its customers a chance to drive away with a 2013 Mini Cooper R56 Hatchback. With each single purchase in the duty free store of KD35 (US$123), customers had a chance to win a fabulous prize of the latest edition Mini Cooper R56 Hatchback. Indeed, Aldeasa That-es Salasil has something of a history of giving away exceptional prizes to its valued customers. In 2008, the store gave away a brand new Audi Car and in 2009 an iconic Harley Davidson Motorcycle. This year the store is delighted to offer its customers the chance to win a sleek Mini Cooper—a car that is recognized and loved around the world. The promotion started in early July and ran through to September 30, 2013. The company notes that the promotion has generated a lot of interest and excitement in store. At press time, the winning draw was scheduled to take place on October 6, 2013.

Going to the source

Gulf-Africa Duty Free took the opportunity when learning about the operator’s latest promotion to speak with Hassan Shishani, CEO of Aldeasa That-es Salasil Kuwait Aldeasa That-es Salasil Kuwait Duty Free is giving its customers a chance to drive away with a 2013 Mini Cooper R56 Hatchback Duty Free, about business in general over the first half of the year. We started spots. In Confectionery specifically, Tang is by asking him if he’s seen an uptick in traffic the number one SKU, with Mars and Nestle products following second and third, respecsince starting the Mini Cooper promotion. “We run this promotion in one form or tively. With regard to P&C, Shishani told us another every year, and this year traffic and that Chanel, Dior, L’Oréal and Yves St. Laurent sales have been in line with our expectations,” products are popular with shoppers. Finally, in he explained. “In the past we’ve offered other Tobacco, Philip Morris brands lead the pack, car models and even a kilo of gold, so this followed by British American Tobacco and promotion has always been something that Imperial Tobacco products. gets shoppers excited.” Shishani noted that business over the first Who is buying? half of the year has been within forecasts, Shishani told us that despite sociopolitical and that Kuwait International Airport has tensions in pockets of the Middle East, the experienced a 3.75% increase in passenger situation in Kuwait is stable, which certainly traffic over the same period. helps business. The company caters mostly In terms of bestselling categories, Con- to Kuwaitis, Egyptians, Indians and Benfectionery, P&C and Tobacco take the top galis, with certain categories tending to be particularly popular with different nationalities. For example, Indians, Egyptians and Bengalis tend to purchase Confectionery, while Kuwaitis and Egyptians make up the bulk of Tobacco sales. Finally, about 75% of perfume purchases at Aldeasa That-es Salasil are made by Kuwaitis. “We have a distinct HASSAN SHISHANI, CEO, ALDEASA THAT-ES SALASIL KUWAIT DUTY FREE price advantage over the local market when it comes to per-

“The area [where our new store will be] looks onto the runway, and in addition to our new store there will be two coffee shops and two VIP lounges. As such, we’re expecting it to be a popular space for travelers to sit, relax and perhaps pick up any last-minute duty free items.” 18




World Duty Free Group fumes, with savings of 10 to 20%,” Shishani explained. “The savings can sometimes get as high as 30% if we have special offers on.” In terms of the nationalities visiting the stores and who is purchasing what, Shishani said that there hasn’t been much of a change in recent years. “Our shoppers are generally locals or expats,” he told us. “There aren’t many tourists here.” However, what has changed, says Shishani, are the destinations of those flying out of Kuwait International Airport. Whereas many travelers used to vacation in Egypt, Syria and Lebanon, the most popular destinations of late appear to be Dubai, Turkey, Cyprus and Europe in general.

New store to open this year

Given the popularity of the Confectionery category, Shishani explained that Aldeasa That-es Salasil has reduced the custom Jewelry and Watches department and dedicated the extra space to Confectionery. The refurbishment is ongoing but is expected to be finished by the time TFWA rolls around. In terms of the product mix generally, Aldeasa That-es Salasil knows what the demographic passing through the airport wants and thus hasn’t made any major changes recently as the offering is already geared toward shoppers. Nonetheless, Shishani notes that some underperforming perfumes have been changed out recently to ensure that the mix is precisely what travelers are looking for. Perhaps the biggest news of late from Aldeasa That-es Salasil is that before the end of the year, the operator will be opening a new 160-square-meter shop in a new waiting area that Kuwait International Airport has opened up. At press time the furniture for the new store was in the process of being shipped. “The area looks onto the runway, and in addition to our new store there will be two coffee shops and two VIP lounges,” Shishani told us. “As such, we’re expecting it to be a popular space for travelers to sit, relax and perhaps pick up any last-minute duty free items.”

The new retail area will bring Aldeasa Thates Salasil’s store count in Kuwait International Airport to six in total. The operator currently has two large shops—one dedicated to perfumery and luxury items and the other a general duty free store—in addition to two small gate shops and a small gold and jewelry shop. The total retail space of Aldeasa That-es Salasil’s operations when the new store is opened will be about 860 square meters.

Staying stable

We ended our conversation with Shishani by asking about what he expects for the business to the end of the year, and while unforeseen events are always a possible, he tells us that Kuwait International Airport has generally seen very stable year-on-year traffic increases in the mid single digits, and that Aldeasa That-es Salasil’s sales have likewise remained relatively predictable. Shishani concluded by noting that a small civil aviation terminal beside the airport was recently opened. The effects on the operator’s business, if there are any, remain to be seen. “flydubai is currently operating 8 flights a day and will soon increase this to 12,” he said. “As such, some of our passengers have been lost. We should have a better idea of how this will affect business in the coming months.” 

One of Aldeasa That-es Salasil Kuwait Duty Free’s store in Kuwait International Airport

In terms of bestselling categories at Aldeasa That-es Salasil Kuwait Duty Free’s stores, Confectionery, P&C and Tobacco take the top spots




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Ras Al Khaimah International Airport RAK Airport expects year-on-year traffic growth of 25% over the next five years given the increasing popularity of the Emirate as a business and leisure destination

A world of

possibilities Commercial and Finance Director Mohammed Qazi tells Gulf-Africa Duty Free that a bright future lies ahead for Ras Al Khaimah International Airport by RYAN WHITE


ulf-Africa Duty Free recently had the pleasure of sitting down with Mohammed Qazi, Commercial and Finance Director at Ras Al Khaimah (RAK) International Airport, to discuss business over the last couple of years and the airport’s big plans for the future. Indeed, the Middle East has established itself as a standout region among emerging markets, and the Emirate of Ras Al Khaimah specifically has seen strong double-digit growth in the number of businesspeople and tourists visiting over the last few years. For its own part, RAK Airport is committed to growing sustainably with passenger numbers. Qazi tells us that he sees a world of possibilities for the future—not only for the airport, but also for potential partners committed to contributing to the growth of an Emirate that is fast becoming the UAE’s newest shining star. Gulf-Africa Duty Free: Can you tell us a bit about passenger numbers at the ariport? Mohammed Qazi: Our passengers have grown in line with our expectations. We serviced about a quarter of a million passengers last year versus 100,000 passengers the year before. GADF: What are your forecasts for passenger traffic over the next 5 years? MQ: Our expectation going forward is growth of 25% every year. If you look at UAE airports in general, the growth in traffic has been astonishing. We’ve got a five-year plan which started about 18 months ago. By July of this year we finished initial expansions at the airport. We will hit half a million passengers this year and as a result of the expansions we are now ready to process a million.


We’ve added more check-in desks, updated the technology, added new Departures gates and installed new in-line baggage systems. It’s the same building but given the refurbishment we’re now able to process many more passengers. GADF: How is RAK Airport committed to improving service for travelers as traffic increases in the coming years? Can you tell us about the renovation/construction projects planned for the near future? MQ: We’re currently working on two different strategies by first talking to a number of companies for Build-Operate-Transfer (BOT)

MQ: Duty free is a very crucial part of our strategy. Currently a third of our revenue actually comes from duty free. As such, it’s a very important part of the airport jigsaw, so to speak. I can tell you that currently there are a number of parties interested in duty free and F&B at RAK Airport. At the moment we operate our own duty free and F&B outlets but in the longer term we’ll have a more strategic focus with a landlord-tenant arrangement. In terms of duty free and F&B I can tell you that the concept is there and it’s about speaking to the interested parties and ensuring that they share our vision for a high-end space.

“Duty free is a very crucial part of our strategy. Currently a third of our revenue actually comes from duty free. As such, it’s a very important part of the airport jigsaw, so to speak.” MOHAMMED QAZI, COMMERCIAL AND FINANCE DIRECTOR, RAS AL KHAIMAH INTERNATIONAL AIRPORT

opportunities at RAK Airport. Additionally, I have just commissioned the analysis for the master planning of the airport for the next 20 years. By the time the analysis is ready we will have narrowed the selection down to four or five business for the BOT. GADF: Can you tell us about the importance of duty free and F&B to RAK Airport’s overall plan?


GADF: Can you tell us a bit more about the current duty free offer at the airport, including key measurables and who you’re catering to in terms of passenger demographics? MQ: We took control of the duty free at the airport last year. Penetration used to be 35 or 40% and now we’re looking at a penetration rate of around 60%. Spend per PAX tends to change with the season but averages about US$15. We can, however, see this increase

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Ras Al Khaimah International Airport From seas, beaches, desert, mountains and a variety of high-end hotels, there’s no shortage of things to see and do in Ras Al Khaimah

is very popular with Russians and Eastern Europeans; Rotana brand hotels; and the first Waldorf Astoria in the UAE. Furthermore, a Turkish brand is opening a resort in the first quarter of 2014 and a number of other local and international hotel brands are due to open in 2014. The economy of RAK is rated A+ by Standard & Poor’s. It’s a very diversified economy, with no single sector making up more than 25% of the gross domestic product. Indeed, there are many strong businesses in RAK. Finally, RAK is also a very safe place for tourists, and given that we have seas, beaches, desert and mountains, there’s no shortage of things to see and do. The temperature in RAK is generally 6-8 degrees cooler than the rest of the UAE, and the Emirate has a very Middle Eastern flair, perhaps more so than Dubai.

by 300% during certain times when we get a lot of Europeans, and especially Russians, in the stores. In addition to the above, we’re also very focused on stock turnover as a means of determining what is selling. It’s a very dynamic environment and we need to make sure we track the products and stay on top of trends. GADF: You mentioned European travelers. Can you tell us a bit more about the passenger profiles passing through the airport? MQ: The main carrier at the airport is RAK Airways, with 11 destinations at the moment that are predominantly in Central Asia, the Middle East and North Africa. In the winter the mix changes a bit, with more Russians, Swedes and Germans passing through the airport. Given the growth in traffic at the airport, we’re keeping very close watch on passenger profiles, and as a result the travel retail offering is constantly evolving. One recent development is the hiring of Russian staff at our


stores to better cater to this important group of passengers. GADF: Are there currently any major promotions ongoing at RAK Airport’s duty free stores? MQ: We constantly have special offers and promotions. However, I wouldn’t say they’re like what you would get at other airports in the Middle East, with car giveaways and the like. It’s more suited toward the predominant passenger profile. We welcome a lot of passengers looking for special deals on food products, chocolate, etc. We do offer promotions, but we do it in line with our passenger profile. GADF: In terms of Ras Al Khaimah in general, can you tell me what the Emirate offers business travelers and tourists? Why is it a good option for travelers? MQ: RAK has developed itself as an “affordable luxury.” We are next to Dubai and Abu Dhabi, and we have a number of hotels and resorts ranging from three stars to seven stars, such as the Hilton Resort and Spa, which


GADF: As we know, there are regional pockets facing sociopolitical issues in the Middle East. Is this affecting Ras Al Khaimah at all? MQ: There are no sociopolitical problems here whatsoever. We have actually become a more favored destination because of what may be going on in other areas of the Middle East. Everything is geared toward welcoming guests. Security is important and we have a zero tolerance policy on inappropriate behavior. GADF: What would you like our readers to take away from this article? MQ: The main message we’re sending out is that RAK itself is a hidden gem. Not many people know about it as a destination, but interest is growing. RAK has a lot to offer both tourists and businesspeople and we cater to both markets. In terms of RAK Airport, we’re looking for interested parties to join us, invest in the airport and manage the part of the supply chain that they know best. Indeed, the entry barriers are low and the government support is there, not to mention support from the airport as landlord. 

Iraq Duty Free Part of the renovations involved implementing new wall units such as this Lacoste apparel and accessories corner wall unit


The new Casio G-Factory shop-in-shop at Iraq Duty Free at Baghdad International Airport


With a newly renovated shop, Iraq Duty Free is seeing the rewards with increased passenger traffic and sales


ince undergoing a major store renovation in Babylon Terminal C Departures at Baghdad International Airport this past summer, Iraq Duty Free has had its hands quite full. Although the renovations were extensive—essentially an overhaul of the previous layout and design—Iraq Duty Free understood the promise that lay in undergoing major changes. Having limited space and outdated fixtures for several years, Iraq Duty Free decided it was necessary to renovate its shop at Baghdad International Airport. The main goals for the renovations involved expanding the shop’s retail space, introducing new and modern designs, furniture and fixtures and also to create a walkthrough concept. The total time frame for the project was six months. Although the duty free shop renovations were completed on time, the additional renovations arranged for the terminal—luggage belt, floors and WC— were delayed by five months. Of all the tasks, the most major renovation involved the floor, ceiling and entrance doors. “The floor, the ceiling and the entrance doors were all demolished to make way for a spacious entrance,” says Nabil Mohsin, Director of Business Development Iraq Duty Free. “All old displays and wall units were installed—we basically ripped out all of the furniture and lighting and started from scratch.” Prior to performing the renovations, Iraq Duty Free performed research to identify its exact course of action. Results showed that 50% of passengers did not enter the shop due to its outdated appearance. Postrenovations, Mohsin believes that the percentage of visiting passengers will significantly increase. “Now our duty free shop at Baghdad Airport is no different than any developed airport in Europe or anywhere else, so this will attract more passengers,” he says. “To passengers, a new modern shop indicates new launches and prestigious products.” The changes made at Iraq Duty Free’s shop are immediately noticeable upon entering, specifically the new open-concept feel that was 26


Iraq Duty Free hopes travelers will visit not only for the new shop, but also experience the new Babylon Terminal C Departures

The official opening ceremony of the renovated shop attracted positive attention, bringing new interest to the shopping opportunities at Iraq Duty Free

purposely created. “The old shop had window fronts and entrance doorways, but the new shop has no doors—travelers can just freely walk through,” explains Mohsin. In addition, the wall units in the shop were designed following an oak wood theme, but have now been replaced with colorful, modern wall units. In addition, new gondolas from fragrance brands Puig and Coty, as well as a new generic cigarettes stand, a new Casio G-Factory shop-in-shop, a new Lacoste apparel and accessories corner wall unit and new elegant promotion tables have been added. New wall units for Safilo sunglasses as well as Boss, Gucci, Marc Jacobs and Carrera have also been implemented. Lastly, all display fixtures are now new and up-to-date. Most importantly, the renovations—completed only this past July— have already increased the number of passengers visiting the store, and consequently, the number of transactions. “Transactions have increased by 40% this year from the same month last year,” says Mohsin. With the renovations complete, Iraq Duty Free can now focus on operating an inviting and profitable duty free shop. Along with its operator, Financial Links Co., Iraq Duty Free hopes travelers from all corners of the globe visit the new shop at Baghdad International Airport and also experience the new Babylon Terminal C Departures, with many return visits in the future. 

Produced under license of Ferrari Spa. FERRARI, the PRANCING HORSE device, all associated logos and distinctive designs are property of Ferrari Spa.Š Benjamin Henon et Dino Darenzelli.

Boutiques de Maputo Boutiques de Maputo Duty Free has had a promising year so far, with sales up 25% and a 15% increase in traffic

Paying it


Following a large-scale expansion and a newly completed international terminal at Maputo International Airport, Boutiques de Maputo excels on the sales and traffic fronts


njoying its home in the new international terminal at Maputo International Airport in Mozambique, Boutiques de Maputo Duty Free has had a promising year so far, with sales up 25% and a 15% increase in traffic. The increased sales at Boutiques de Maputo is partly due to the increased passenger numbers at Maputo International Airport. Following a US$132 million expansion and modernization of the airport back in 2007, it’s no wonder passenger numbers are steadily increasing. In addition, last year marked the completion of the new international passenger terminal, which officially opened in August 2012. Designed to service two million passengers per year, the new terminal is outfitted with two large halls that have been constructed to accommodate 280 passengers in arrivals and 300 in departures. If the expansion coupled with the new international terminal aren’t reasons enough for the rise in travelers shopping at Boutiques de Maputo, the increased number of airlines passing through the airport—including TAP Portugal, South African Airways, Qatar Airways, Ethiopian Airlines, Kenya Airways and British Airways including LAM—Mozambique Airlines—makes it even clearer. Situated in an area of 270 square meters near a café and the new CIP (Commercially Important Passengers) lounge, Boutiques de Maputo Duty Free has managed to maintain competitive pricing when compared to other

shops nearby, such as Johannesburg Duty Free Shop. Indeed, its focus on offering attractive pricing is yet another reason why travelers keep returning each time they pass through the airport. Last year’s plans to increase Spirits sales seem to be on track, as the current top-selling categories for Boutiques de Maputo include Perfume, Spirits and Cigarettes. In terms of fragrances, top brands for men include Ferragamo, Paco Rabanne, Davidoff and Azzaro. For women, top fragrances include Ferragamo, Gres Coff Cabotine, Azzaro, Eclat D’Arpege and Paco Rabanne. From a geographic standpoint, the bulk of consumers that visit Boutiques de Maputo And tend to purchase the most arrive from Angola, Portugal and South Africa. This seems to be on point, as Abílio Soeiro, Boutiques de Maputo Chairman, noticed the rise in Portuguese and Angolan customers just last year. In order to capitalize on trends and attract additional customers, Boutiques de Maputo makes it a priority to focus on creating sophisticated layouts. As is expected, promotions are at the top of the priority list for Boutiques de Maputo. Last year’s successful promotion for French cosmetic company Black Up Cosmetics set the bar high. As such, the retailer currently has four exciting promotions in the works for beauty, skincare and fragrance brands Clarins, Chanel, Ferragamo and Carolina Herrera. Each promotion will run for a total of two months and will include targeted signage,

The CIP (Commercially Important Passengers) lounge at Boutiques de Maputo





large and inviting displays positioned outside the shop as well as competitive pricing. “Boutiques de Maputo is expecting a very positive response,” says Soeiro. In terms of new products, Boutiques de Maputo recently launched new chocolate products given the increasing popularity of the confectionery category generally in travel retail, and as always, the operator is looking for future opportunities across categories. In other news, Abílio Soeiro recently completed a 263-page book project after two years of research, titled Thank you Madiba. An autobiography and tribute to Soeiro’s close friend Nelson Mandela, or “Madiba” as he is more affectionately called, the book, which has been translated into ten languages, explores the life of Soeiro and the emergence and strengthening of his friendship with Madiba. A launch ceremony for the book was held this past July at an esteemed hotel complex in Maputo. “It causes some regret that the book is being released at a time when the health of Madiba is critical, but at the same time, I consider it my duty to take the project to fruition, since the wish of Madiba has always been that this book becomes a reality,” says Soeiro. “In 2012, I was pleased to hand him the first printed copy,” he adds. Fifty percent of the book’s sales will be donated to Nelson Mandela Children’s Hospital, Rotarty International and to the Rotary Club of Maputo to help fight against polio. 

Boutiques de Maputo has four exciting promotions in the works for beauty, skincare and fragrance brands Clarins, Chanel, Ferragamo and Carolina Herrera

Dubai Airports

Falling into place Dubai International nears 6 million passengers in August and reaches a major milestone toward the October opening of Al Maktoum International at Dubai World Central


raffic at Dubai International Airport (DXB), the world’s second busiest international airport, surged 23.8% in August, making it the busiest month in terms of passenger numbers in Dubai International’s history. Monthly passenger traffic at Dubai International reached 5,999,375 in August, a year-onyear increase of 23.8% compared to 4,847,152 in the corresponding month in 2012. The surge is the result of a strong growth in almost all markets and the effect of Ramadan and Eid travel, which further boosted traffic during the month. With monthly traffic breaching the 5 million passenger mark for nine consecutive months, year-to-date passenger numbers increased by 16.4% to 43,971,839 compared to 37,784,946 recorded during the first eight months of 2012. Spurred by the strong growth in markets such as Saudi Arabia, Bahrain, Qatar and Kuwait, the AGCC routes topped the list of regions with the largest growth in passenger numbers (+289,021). Western Europe (+258,288), which has been positively affected by the launch of Qantas’ services to Dubai, was followed by the traditionally strong market of the Indian subcontinent (+163,657) and Africa (+89,533). The top regions in terms of percentage growth in traffic included Eastern Europe (82%), Australasia (45%) and Asia Pacific (40.4%). Aircraft movements during August reached 31,198, up 11.5% from 27,986 recorded during the corresponding month in 2012. During the first eight months of the year aircraft move-


ments totaled 242,571, up 7.3% compared to 226,064 during the corresponding period in 2012. Year to date cargo volumes increased by 8.1% to reach 1,588,716 tons compared to 1,469,476 during the first eight months of 2012. Monthly cargo volume contracted by 3% in August reaching 184,877 tons compared to 190,770 tons in August 2012. “The results have been very satisfying so far this year with the airport achieving a traffic growth rate well over the projected figures,” says Paul Griffiths, CEO of Dubai Airports. “While five million passengers per month has become a standard at Dubai International, it’s worth noting that in August we were barely two Airbus A380s short of hitting the 6 million passenger figure. “The signs are good for the remainder of the year, the highlight of which will be the launch of passenger operations at Al Maktoum International at Dubai World Central [DWC],” Griffiths continued. “We have signed MoUs with two airlines and are in discussion with a number of other carriers to start services at the new airport while Wizz Air has confirmed it will start operations on October 27 as DWC’s launch customer.”

Well on the way

In related news, the General Civil Aviation Authority has certified Al Maktoum International at DWC for passenger operations after assessing and confirming full compliance of the aerodrome with its stringent requirements, paving the way for a successful opening of the new passenger terminal building.

The General Civil Aviation Authority has certified Al Maktoum International at DWC for passenger operations after assessing and confirming full compliance of the aerodrome with its stringent requirements




“The signs are good for the remainder of the year, the highlight of which will be the launch of passenger operations at Al Maktoum International at Dubai World Central” PAUL GRIFFITHS, CEO, DUBAI AIRPORTS

In a letter issued by GCAA’s Air Navigation and Aerodrome department yesterday, the regulator accepted the implementation process for full passenger operations at the new airport and acknowledged the “hard work and commitment of Dubai Airports in achieving the status of full aerodrome operations.” Regulatory oversight is managed through the close cooperation of Dubai Airports Airside Operations staff, who work closely with the GCAA to ensure that all aspects of operations at both DXB and DWC are fully compliant with the highest professional international standards and regulations set out in federal law. “This is a welcomed and critical step forward in the process of preparing DWC for full passenger operations,” said Jamal Zaal, Vice President of Airside Operations at Dubai Airports. “We will continue to press ahead with trials that test every system, process and piece of equipment in the new terminal—be it signage, gates or boarding procedures—to make sure the new facility is ready to accept passengers on October 27.” 

Abu Dhabi Airports Company

Going Green



Abu Dhabi Airports Company’s Midfield Terminal Building receives recognition for sustainability as AUH’s existing operations exhibit sustained growth in traffic


ust before this year’s TWFA WE, Abu Dhabi Airports Company (ADAC) announced that Abu Dhabi Urban Planning Council (UPC) awarded the Midfield Terminal Building (MTB) project, currently the largest sustainable building in the Estidama programme, with a 3 Pearl Design Rating from the Estidama Pearl Building Rating System (PBRS). “Abu Dhabi Airports is committed to environmental sustainability and to supporting Abu Dhabi Vision 2030, and takes pride that its commitment and efforts have led the project to achieving the 3 Pearl Rating,” said H.E. Ali Majed Al Mansoori, Chairman of ADAC. “Sustainability is and has always been a key consideration at every stage of the Midfield Terminal Building’s development, with the goal of Abu Dhabi International Airport becoming a global leader in sustainable airport design, construction and operations.” Designed to be the new gateway to Abu Dhabi, the MTB is now the highest-rated airport terminal in the GCC, and the largest singular building ever to be rated globally. Having identified an unprecedented opportunity to collaborate, the UPC and ADAC worked together to take the MTB project from a 2 Pearl to a 3 Pearl Design Rating. Indeed, the MTB was designed to achieve a considerable reduction in annual energy consumption through the specification of an appropriate and climate-responsive building

form and façade, which will feature a high performance low-e double glazing to reduce solar gain and low U-values specified for the walls and roof to minimize heat gain. Substantial energy demand reductions will also be achieved through the use of a highly efficient lighting system and an adaptive and effectively controlled HVAC system. A sophisticated Building Management System and an Advanced Energy Measurement and Targeting System will also be in place to allow the energy performance of the building to be recorded and monitored, which will enable clear monitoring and understanding of energy use and potential improvements. This information is planned to be used to assist sustainable communication practices for both passengers and operators alike. Limiting the use of potable water was a priority in the MTB design. Water demand was specifically studied and water fixtures were selected based on their ability to maximize reductions. In doing so, the MTB can achieve and maintain a reduction in water consumption of 45% over a comparative baseline case. Furthermore, there is a commitment to divert a minimum of 75% of construction waste from landfills during the construction phase. In addition to using recycled materials where practical, regional materials have been selected for the construction of the MTB to reduce the demand for fossil fuels for transportation purposes.

The MTB is the third airport project for ADAC to receive Pearl certification. The new Bus Gate Building and the new Arrivals Hall at AUH have also recently received Pearl certification. These two projects are key elements of the Capacity Enhancement Programme at AUH.

In the meantime…

As construction on the MTB continues, the existing AUH facilities are experiencing solid growth over 2012 traffic statistics. The airport’s traffic report for the month of July 2013 shows a growth of 4.8% in passenger traffic compared to July 2012, with close to 1.4 million passengers traveling through the airport. In July 2013, aircraft movements totaled 11,355 and represented a 12.1% increase compared to aircraft movements in July 2012. Furthermore, cargo traffic grew by 26.6%, reaching 63,794 tons of cargo moved. “Efforts to attract new airline partners and new routes have led to yet another month of steady growth in passenger traffic, making Abu Dhabi International Airport one of the world’s fastest growing airports,” said Eng. Ahmad Al Haddabi, Chief Operations Officer at ADAC. “This continued growth in passenger traffic is the catalyst for the Capacity Enhancement Programme, which will enable AUH to accommodate more than 17 million annual passengers through the completion of vital projects, including the new Arrivals Hall.” 

Designed to be the new gateway to Abu Dhabi, the MTB is now the highest-rated airport terminal in the GCC, and the largest singular building ever to be rated globally



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Industry Report

Chart toppers The Mideast may not be the world’s biggest air travel market, but it’s definitely the fastest growing by ANDREW BROOKS


he latest figures from the International Air Transport Association (IATA) show that global air passenger travel grew 6% year-over-year in June. It’s a solid number which, measured in revenue passenger kilometers (RPK), is well above the 4.8% growth reported for the first six months of 2013 compared to the first six months of 2012, and is also ahead of the 5.6% capacity expansion recorded for June 2013 compared with June 2012. It’s probably no surprise that the Asia Pacific market accounted for fully half of the increase in RPKs, but IATA was careful to point out that Asian volatility precluded any assumption that this performance could be taken as an indicator of things to come for the rest of the year. What did stand out was the performance of the Middle East, which narrowly topped Africa’s 10.8% increase with its own growth of 11% to maintain its status as growth leader among what IATA defines as emerging markets. Globally, international air travel growth was in virtual lockstep with demand, at 5.9% overall for June compared with the same month in 2012. Global capacity kept pace at 5.7%, with load factors coming in at 81%. But again, the Middle East headed the charge, with international travel in the region up 12% (again, narrowly edging out Africa, which came in at 11.2%). This figure lagged slightly behind capacity expansion, which came in at 13.4%; this disparity produced a slight sag in load factor, which registered at 78.4%. Interestingly, domestic RPK is a “negligible” (IATA’s term) consideration in evaluating Middle Eastern traffic figures, as it accounts for a paltry 6% of air traffic in the region, well behind the rest of the world, for which domestic travel accounts for 37% of the total. The robust growth in Middle East traffic is less remarkable when one considers that the region’s total passenger numbers for 2012 were 144.1 million, well behind every other region except Africa (Asia Pacific accounted for 947.9 million). Within the Middle East the UAE was the traffic leader at 40.6 million passengers.

Dubai International Airport predictably heads up the list of overachievers in the Gulf. (Photos courtesy Dubai Airports)



Speaking of unsurprising news, in its report on June passenger traffic figures, Airports Council International (ACI) ranked Dubai International Airport as one of the world’s busiest. Its traffic for that month increased by 17.5%, second only to Kuala Lumpur International’s 22.3%. This follows the 18% growth Dubai turned in for the month of May. ACI figures show that international passenger figures for the Middle East in June rose 10.6% compared with June 2012, while Africa’s rose 7.6%. ACI reports that for the first half of the year passenger traffic in the Middle East was up 11.6% over the same period in 2012. The organization includes the Middle East within the Asia Pacific region for purposes of reporting, and Dubai was the top airport within the entire region for international traffic in the first half of the year. The airport had the greatest growth in total passenger throughput for the first six months of 2013, at 16.9% or 32.7 million passengers, setting a record for any sixmonth period in the airport’s history. The rapidly growing Abu Dhabi International also posted double-digit growth over this period, at 12.6%. One of the notable new projects underway in the Gulf is the construction of Qatar’s US$15.5 billion Hamad International Airport (HIA) also known as New Doha International Airport. The new facility is expected to open at the end of 2013. HIA will relieve chronic capacity constraints at Doha International Airport (DIA), which is struggling to keep up with passenger traffic demand despite a comprehensive series of upgrades, including major improvements and additions to the duty free offer. When it opens at the end of 2013 HIA will become the primary international gateway for Qatar, which is experiencing rapid economic growth. The airport will open with a five-story, three-concourse terminal capable of handling 28 million passengers—an impressive figure until one realizes that DIA, which handled 21 million passengers in 2012, is forecast to see 25 million this year. The retail and F&B area will cover 28,755 square meters and will offer a wider selection of offers than is currently available at DIA. 

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Middle East Airlines


Passenger numbers aboard MEA increased a marginal 6.3% during the first half of the year as compared to the same period last year

to the cause by


Middle East Airlines remains committed to ensuring its passengers continue spending onboard with high-end duty free offerings tailored to its largely Lebanese clientele


ulf-Africa Duty Free recently had the opportunity to speak with Mounir Seifeddine, Head of Cabin Purchases at Middle East Airlines (MEA), about recent developments as the carrier heads into the fourth quarter of 2013. He tells us that duty free sales remained essentially flat for the first half of the year as compared to the same period last year, while passenger numbers aboard MEA increased a marginal 6.3% during the same period. Interestingly, despite the flat sales, MEA’s core passenger demographic—Lebanese, representing about 85% of inflight sales on the airline—are actually spending slightly more than last year. “Syrians, who are traditionally not high spenders when it comes to inflight duty free, were traveling more during the first half of the year and are generally responsible for the rise in MEA’s passenger numbers,” Seifeddine explains. “At the same time, given the sociopolitical issues here, we had fewer passengers from the Gulf, who will certainly spend if the offer is high-end and geared toward their taste.” As such, MEA essentially gained nonspending passengers and lost higher-spending passengers over the first half. In this context, breaking even with last year in terms of inflight

duty free sales was a feat in itself. “Our core customers, Lebanese travelers, actually continued spending and offset the losses from the decline in Gulf passengers,” Seifeddine sums up. Popular categories for MEA’s onboard sales have remained relatively consistent over the years, with Beauty, Spirits and Tobacco taking the top three spots. Popular brands within those categories include Burberry, Givenchy, Johnnie Walker and Marlboro. New listings for this year can be found in this past summer’s MEA inflight duty free catalogue and include a number of beauty products and Johnnie Walker XR, a variant of the popular Scotch whisky that Seifeddine tells us has received a warm response from travelers. For the moment, MEA isn’t making any radical changes to its inflight offering given the fact that it has spent years honing the mix to suit the taste of its mainly Lebanese passengers. Nonetheless, Seifeddine tells us that a new passenger type is emerging—one with perhaps slightly less knowledge of high-end products, requiring the guidance of highly trained inflight salespeople. “We pride ourselves on the fact that our salespeople are very knowledgeable about the products we sell onboard,” Seifeddine says.

The cover of MEA’s latest inflight duty free magazine; the airline has spent considerable time honing its offering to target its largely Lebanese passenger base

“For many of our Lebanese passengers, who have an expert knowledge of the products they’re buying onboard, it’s important to have staff who can speak to them on their level. At the same time, for passengers with a more selective knowledge, it’s equally necessary to have salespeople who can engage them and perhaps teach them something new, which in turn may close the sale.” Training sessions for inflight staff are a regular occurrence at MEA’s offices, and recent visits by companies such as Givenchy, Clarens, La Prairie and many more ensure that MEA passengers looking for the latest in core travel retail categories will continue to receive top-notch service, whether making a $15 or a $500 purchase. In conclusion, Seifeddine noted that passenger numbers tend to ebb and flow anywhere in world, and the outlook for the Middle East in the mid- to longterm is still generally very good, despite pockets of instability. Indeed, the carrier’s commitment to keeping on top of product trends in duty free—combined with the proven track record its passengers have for spending—provides as good an indication as any that when traffic MOUNIR SEIFEDDINE, HEAD OF CABIN PURCHASES, MIDDLE EAST AIRLINES numbers do find their feet, MEA’s inflight duty free sales will also soar. 

“We pride ourselves on the fact that our salespeople are very knowledgeable about the products we sell onboard. For many of our Lebanese passengers, who have an expert knowledge of the products they’re buying onboard, it’s important to have staff who can speak to them on their level.” 36


Kreol Trading Establishment

The taste of


Kreol Trading Establishment partners with Duc d’O to bring the company’s unique and delectable truffles to the Arabian Gulf regio


AE-based Kreol Trading Establishment (Kreol Trading) has announced that it has been appointed as authorized travel retail distributor of Duc d’O confectionery products for the Arabian Gulf region. Starting in 1983 as a family company, Duc d’O became a part of the Belgian chocolate group Gudrun in 2011. Situated near Antwerp, chocolatier Duc d’O is famous for its flaked chocolate truffles and pralines sold in over 70 countries. The company has a particularly strong presence in Korea, Hong Kong, Singapore, Russia, Belgium, Germany, France, the UK and Scandinavian countries. “We entered the travel retail arena in 2002 when we partnered with Alpha Retail (now part of World Duty Free Group) to create a successful duty free operation in India,” notes A.S. Lal, CEO of Kreol Trading. “We also independently represent many global and regional brands, and have established a strong distribution network in the Arabian Gulf countries. Therefore, we are excited at this opportunity to represent the unique Duc d’O company. “We are working in tandem with our partners and associates, such as Beyond Brands, to maintain the premium positioning of Duc d’O confectionery products as befits its exclusive status,” Lal added. Indeed, Kreol Trading has a dedicated team to serve its clients that includes brand ambassadors specifically appointed to further the presence of Duc d’O in the region. “We have already received a very positive response from the major duty free operators in the Arabian Gulf region and hope to be listed with all of them soon,” Lal tells us.

Opportunity abounds

Indeed, the Middle East ranks among the top ten markets for confectionery products in the




world, with a high per capita consumption of chocolate in particular. Lal notes a recent study indicating that the total Middle East confectionery market is valued at over US$100 billion, making it the perfect place for Duc d’O to grow its business. “The market has grown by 15% over the last three years, with Saudi Arabia and Qatar leading the spurt,” Lal explains. “This growth is fueled not just by greater disposable income, but also by the influence of the region’s burgeoning population of young consumers and the traditional role of sweets in Arab culture. Confectionery remains an extremely fastgrowing sector in the Middle East with sales forecast to increase by 15 to 20%.” More generally, the sub-region of the GCC countries is considered by Business Monitor International to be an extremely fast-growing retail market. Furthermore, Euromonitor International indicates that the confectionery market in the UAE has grown by nearly 95% in just over the last half-decade compared with 19.6% growth in the US, just over 40% growth in China and under 20% growth in the UK. Furthermore, consumers in the UAE are known to have a taste for luxury, and Duc d’O’s positioning fits perfectly with the high-end preferences of shoppers in the region. Belgian chocolate truffles are famous worldwide as a symbol of traditional artisan-crafted luxury. Duc d’O’s unique truffles have rough flakes on the outside and a soft and delicate filling on the inside that is especially airy thanks to Duc d’O’s unique recipe. The “Untamed Delicacy” of the brand is also brought forward with striking packaging that features a handmade touch, making each package unique. “We are delighted to establish our presence in the Arabian Gulf region with Kreol Travel Retail,” said Luuk Reijnders, Global Business Director at Duc d’O upon the announcement of the partnership. “We look forward to sweet success!”


Kreol Trading Establishment CEO A.S. Lal (right) with Duc d’O Global Business Director Luuk Reijnders

Finally, during this year’s TFWA exhibition, Duc d’O will be competing at the Frontier Awards at Hotel Martinez in Cannes as its luxury bags have been shortlisted in the Star Products category. 

Duc d’O’s products have already proven to be a huge hit with consumers worldwide, and Kreol Trading looks to introduce consumers in the UAE to the brand’s delectable truffles

While a relatively small space, BDF’s recently renovated 190-squaremeter arrivals shop accounts for 17.5% of the operator’s business

Bahrain Duty Free



Bahrain Duty Free has had its share of challenges over the first half, but the operator continues to find innovative ways of enticing travelers to spend

ollowing Garrett Coogan’s reassignment to ARI’s operations in Cyprus, Gulf-Africa Duty Free sat down with acting General Manager of Bahrain Duty Free (BDF) Fadi Allam to discuss the operator’s business over the first half of the year. He tells us that while the environment has been challenging of late, the operator has been pulling out all the stops when it comes to promotions as a means of continuing to entice travelers to spend. Passenger numbers at Bahrain International Airport dropped 9% to June, resulting in some tough operating conditions for Bahrain Duty Free, Allam tells us. Nonetheless, the operator managed to punch above its proverbial weight, especially considering the fact that it wasn’t able to sell tobacco products in its stores over the first quarter of the year. Briefly, the Bahraini Ministry of Health required BDF to sell only tobacco products that met GCC regulation 246/2011 standards—the main requirement being new pictorial health warnings—in its stores. This resulted in the operator being unable to sell tobacco products during Q1. Paradoxically, Bahrain was the only country in the GCC that decided to implement GCC regulation 246/2011 in duty free.

Bahrain Duty Free’s recent Vault of Fortune promotion was a largescale effort that kept interest high at the operator’s stores




“Thankfully, with the assistance of tobacco suppliers and the Middle East & Africa Duty Free Association, we have succeeded in postponing the implementation of the regulation in duty free,” explains Allam. “However, it will be reviewed at the next GCC Ministers of Health meeting at the end of 2013. BDF has had regular duty free tobacco product back on sale since late April 2013.”

Keeping interest high

Spirits, Perfumery and Confectionery are BDF’s top three categories in terms of sales, and Allam notes that Diageo and Pernod Ricard; Chanel and Dior; and Mars and Nestlé products are particularly popular in their respective categories. An encouraging sign is that spend per PAX is starting to increase at BDF’s stores, and to ensure that travelers continue spending, BDF has investing in the complete refurbishment of its 190-square-meter Arrivals duty free shop. “This is an important location for us, representing 17.5% of our total business,” Allam explains. The store focuses on the main categories of Spirits, Perfumery, Tobacco and Confectionery. In the future, Allam notes that an upgrade of the Departures duty free area is necessary as a means of catering to the changing passenger profile. In addition to the above store upgrade, Allam tells us that that BDF’s recent promotional activity has had a positive effect on sales and customer engagement. The operator recently ran a large-scale promotion called “The Vault of Fortune,” wherein for every BD50 (US$133) spent at its stores, BDF gave shoppers the opportunity to win prizes of US$20,000, $10,000, $5,000, $2,500 or $1,000 in shopping vouchers instantly. The more travelers spent, the more opportunities they had to win. Each US$133 spent gave them a key to unlock the Vault of Fortune and the possibility of unlocking a truly amazing prize. To date BDF has announced a number of winners from the Vault of Fortune promotion. Other activities that have contributed to sales over the first half of the year, says Allam, include the operator’s Golden Dallah and Treasure Hotel promotions. “The sociopolitical situation in Bahrain is improving and things have calmed down considerably,” Allam told us. “Business confidence is rebounding as well, and this is a good sign. We hope to be in a much different position when we speak to you this time next year.” 





The continent of Africa will play a major role during MEADFA’s 2013 conference, along with workshops focusing on airports, inflight and social media


he Middle East & Africa Duty Free Association (MEADFA) has announced that the role of retail in new airport infrastructure will be a key focus of the 12th annual conference, which will take place at the Ritz Carlton Hotel in Doha, Qatar on November 25 and 26, 2013. As the association embraces Africa officially, the conference will also enable delegates to learn more about the African consumer, whose importance to global travel retail is set to grow. Opening keynote speaker Akbar Al Baker, Chief Executive Officer of Qatar Airways, will explain how the new Hamad International Airport will help realize the fast-growing airline’s ambitions to establish Doha as a global hub. He will then join a panel of CEOs, including Paul Griffiths of Dubai Airports and Kjeld Binger of Queen Alia International Airport in Jordan, to discuss how commercial objectives are increasingly central to airport infrastructure planning in the region. In a session entitled “Embracing Africa,” George Uriesi, Managing Director of Federal Airports Authority Nigeria, one of Africa’s largest airport groups, will lead a panel discussion focusing on the African consumer, which will draw on key findings of a recent report into this dynamic and growing market. With the travel market in North Africa still severely affected by the repercussions of the Arab Spring, Sherif Toulan, Director of International Duty Free and Trading Agencies, and Joachim von Winning, Chief Commercial Officer at Cairo Airport, will illustrate how Egypt’s leading travel retail companies are adapting to a “new normal.” In “Coping with change,” Philip Eckles, CEO of Aer Rianta International - Middle East, and other leading retailers will analyze how hub airports in the Eastern Mediterranean, 42

“Through our annual conference, MEADFA has always tried to combine great content with ample networking opportunities, and this year will be no different. We’re delighted with the quality of our speaker lineup and we’re confident this will be another memorable event.”

the Middle East and North Africa are faring during this period of economic and political upheaval. And as Dubai Duty Free prepares to celebrate its 30th anniversary, the retailer’s Executive Vice Chairman Colm McLoughlin will look to its future as the pace of retail development at Dubai International Airport steps up further still.

More choice for delegates

In a change to the customary format, participants at the MEADFA Conference this year will be offered the choice of two workshops during Day One of the event to enable them to delve deeper into subjects relevant to their business. Workshop A will focus on “Making airports special: Surprising the traveler,” led by a panel of retailers and brands including Emirates Leisure Retail CEO Andrew Day and Qatar Duty Free Senior Vice President Keith Hunter. Workshop B will look at “Innovation inflight,” featuring contributions from Emirates Airline Vice President Retail Services John Sime, Kenya Airways’ Emmy Letting and Montblanc General Manager Travel Retail Frank Passmann. A session on “Social media in action” will allow delegates to hear case studies from two travel retail companies with real expertise and experience in engaging the traveler in new ways: Changi Airport Group and SSP. Providing an update on the key advocacy and regulatory issues facing the industry in the Middle East, Africa and beyond will be MEADFA President Sean Staunton and European Travel Retail Confederation Presi-



dent Sarah Branquinho. The closing keynote speaker, Jose Maria Palencia, CEO of World Duty Free Group, is well placed to provide inspiring testimony on how success can be achieved in airport retail. He will address the company’s recent openings in Jordan as well as its long-awaited debut in Saudi Arabia, a market whose potential remains as yet untapped. “Through our annual conference, MEADFA has always tried to combine great content with ample networking opportunities, and this year will be no different,” said MEADFA President Sean Staunton. “We’re delighted with the quality of our speaker lineup and we’re confident this will be another memorable event. “The pace of change in the Middle East never slows, and when you add to that the growing importance of traveling consumers from Africa, we have a lot of ground to cover,” he added. “We look forward to welcoming all those with an interest in our region to Doha for what will be a great event.” 

Global travel retail excellence

Advertorial: One Red Kite

One Red Kite

leads the way through turbulent times Innovative travel retail consultancy brings new research tools to the market


n increasingly common term used by senior management in organizations around the world is VUCA, which stands for Volatility, Uncertainty, Complexity and Ambiguity. It describes the chaotic and turbulent conditions that businesses find themselves trading in. Change is happening and it is happening fast. VUCA was originally a US military term that emerged in the 1990s. Today, it almost seems the perfect definition for travel retail. Since the banking crisis in 2008, travel retail has come under significant pressure from all angles: • • • •

Suppressed passenger numbers Changing spending behaviors Higher expectations from shoppers An influx of a new shopper (the Chinese)

These changes have required operators, retailers and brands to think differently about this channel, and One Red Kite, a global retail consultancy, believes that it is leading the way. Founded on four key principles—integrity, quality, innovation and knowledge—the consultancy has a team with a fine pedigree. Kevin Brocklebank, Founder and Managing Director of One Red Kite, states “Navigating turbulent times requires experience and knowledge, and that is why our team is made up of people who have been on the front line and managed teams in the face of crises such as SARS, 9/11, liquid and gel issues, the ash cloud and so forth. We love travel retail for that very reason; every location is different, has 44

its own set of unique challenges and requires a different approach drawn from a core set of skills that can only be gained by experience.” The team is well placed to deal with those VUCA situations and has pioneered new tools and approaches to maximize profitability quickly and effectively. If knowledge is power, retailers and brands will love the new research service One Red Kite has launched, called the Terminal Retail Universal Shopper Survey Tool (TRUST). “To give the shopper what they want, you need to know what they are thinking,” Brocklebank says. “Until now, research has been seen as an expensive and time consuming process which can often deliver little in the way of significant insight. With TRUST, we are going to change that.” TRUST is a free tool which allows retailers to understand and quantify commercial and actionable insights quickly and easily. “We see this as a game-changing tool that will change the way retailers understand shoppers and make commercial decisions,” says Brocklebank. “This is a simple, easy to use, straight-out-of-the-box tool which can be activated and run in store within the hour. Our unique approach allows retailers to use iPads or iPhones in store to capture shopper responses or let the shopper complete the survey at a later date at home or while travelling. Our unique set of questions has been developed to drive a deeper understanding of the shopper and deliver clear insights to enable new strategies for driving growth.” A deeper understanding of the shopper might mean bigger surveys, but Brocklebank demonstrates that this is not the case. “We have extensively tested our survey and the average completion time is remarkably quick.


At One Red Kite, we review everything we do through the VUCA lens and therefore speed is of the essence when conducting research in the airport. A deep knowledge of shoppers is not about working harder; it is about working smarter. Research should be quick, easy and cost effective.” TRUST is a powerful tool for travel retailers but can also benefit brands and airports. “We are passionate about seeing greater collaboration in our channel,” Brocklebank says. “The beauty of TRUST and its simplicity allows retailers to share powerful insights with their brand partners. We do not see TRUST as an exclusive retailer tool as such. Brands are able to use this tool too. TRUST will facilitate greater collaboration and knowledge building.”

Kevin Brocklebank, Founder and Managing Director, One Red Kite

Knowledge into action

Knowledge is something that Brocklebank is passionate about. His blog (www.trknowledge. com) has been well received by the industry and that has prompted him to publish his first ebook, Travel Retail Knowledge Volume 1. “I am so grateful for the wonderful responses I have had on the articles that I have published in my blog. Travel Retail Knowledge is a platform for sharing insights, knowledge and experience. I do not sell advertising on the site; it is just a forum for debate and developing a unique perspective on our dynamic industry.” But it doesn’t stop there. Along with the publication, Brocklebank has launched training programs too. “Along with the great feedback, I received lots of questions and that prompted me to develop training courses for retailers, brands and operators. Readers found the insider perspective to be of great benefit and they wanted to know more.” ONE RED KITE HAS LAUNCHED SIX KEY TRAINING COURSES TO START WITH: • Category Management for Travel Retail • How to Analyse Your Category to Create Insights • Range Reviews Made Easy

Each course is run over the course of a day and is highly interactive. “For me, training shouldn’t be something that you go on and forget a week later,” Brocklebank says. “We have designed these courses to be instantly useable the very next day. Part of One Red Kite’s ethos is to deliver measurable value and we certainly do through these courses. We believe that these courses represent excellent value for money.” One Red Kite offers complete flexibility when it comes to training. If you have five attendees or more, trainers from One Red Kite can visit your location. Alternatively you can attend the courses set up throughout the year at locations including London, Dubai, Miami and Singapore. One Red Kite can also create unique courses based around your specific business needs. “We love travel retail,” Brocklebank says. “We are passionate about it and we continuously strive to innovate for the benefit of our channel in turbulent times.TRUST, Travel Retail Knowledge and One Red Kite Training are just the beginning.” Brocklebank remains tight-lipped on future developments the company is working on. It is certainly a busy time for this consultancy; they are currently developing a new way of segmenting the shopper—live on the shop floor. “One of the big challenges that retailers

face is to be able to target shoppers effectively and improve conversion,” Brocklebank says. “The use of personal shoppers in store can help grow retail sales, however we believe that there are opportunities to step change their performance.” One Red Kite has invested in research to find a way for personal shoppers to segment the customers they interact with. The research has found some common traits within certain shopper types, and when these are understood, it becomes much easier to sell to the customer and covert them. Brocklebank says that One Red Kite has uncovered what he believes is a master key to highly effective selling within the travel retail environment. “For us, the development of any tool must be driven by an obsession for practicality and simplicity,” he says. “For this reason, we combined our research capability with our front line operational experience to drive out a simple model which can be applied directly on the shop floor.” Can One Red Kite lead the way through turbulent times? Their passion for innovation and continuous improvement has certainly led to the development of what they believe to be ground breaking tools. Their agenda is clear—to continuously improve for the benefit of their clients. This team is certainly one to watch. 

• Travel Retail Metrics – A guide to the metrics travel retailers use • Introduction to Space Planning For Travel Retail • High Performance – Delivering in-store excellence

Kevin Brocklebank is the Founder and Managing Director of the global retail consultancy One Red Kite Ltd. He leads a team of experienced travel retail consultants who have worked for retailers and brands in a fast paced airport environment. Their global reach means that they can support any project in terms of research, category development and people development anywhere in the world. GULF-AFRICA DUTY FREE & TRAVEL RETAILING



Under one roof Chalhoub Group consolidates its travel retail into a single operation by


Traveller has managed to train more than 2,000 airline cabin crew members in 2013


ubai-based Middle East luxury retail giant Chalhoub Group has recently decided to consolidate all of its travel retail activities within Traveller, the company’s travel retail service arm, which was originally formed 20 years ago. In a strategic move to consolidate operations and achieve greater efficiencies, the Chalhoub Group announced in July 2013 that Traveller, hitherto responsible exclusively for the inflight retail operations of the business, will also be taking on travel retail operations at the duty free and border shop levels, thereby creating a centralized travel retail entity within the larger organization. “Apart from being a very exciting opportunity for Traveller, having everything under one functional unit facilitates a lot of the interaction with both sides of the coin—the inflight retail side and the duty free shop side especially when distributing a brand that’s common to both retailers,” says Traveller’s General Manager Rami Madi. “We’ve just kicked off the operation and are looking forward to a very challenging and rewarding experience over the coming few months.” Within travel retail, sales to date for 2013 have been very good, and a rising tide does indeed seem to be floating all boats; Madi says that Traveller has noticed that all of its suppliers and clients are showing healthy growth figures themselves, a situation which naturally bodes well for Traveller’s own figures further down the road. Part of that market success undoubtedly stems from the other big piece of news for 2013, Madi says; the launch of novelty fragrances Voile Rosé and Voile Doré. The launch builds on Traveller’s successful debut in fragrance creation with Voile Noir (for women) and Voile Blanc (for men). Voile Rosé and Voile Doré premiered exclusively aboard Saudi Arabian Airlines in March of this year—not the first time that Saudi Arabian has served as Traveller’s launch platform for new fragrances



into the Middle Eastern market. The premiere of the latest two iterations under the Voile banner proved to be fully as lucrative and gratifying in terms of sales figures as the first two marques, Madi says. Both were further rolled out to most Middle Eastern airlines in July with excellent results, he adds. “A year after having introduced Voile Noir and Voile Blanc excluexclu sively through our airline partners, Rami Madi, General Manager, Traveller we authorized the limited distribu distribution of these two references via our in-house retail boutiques,” Madi says. “Voile Noir and Voile Blanc are currently available at very selective Faces outlets in the UAE, Saudi Arabia Qatar and Kuwait with sales surpassing our initial expectations—by far!” Going forward, Traveller’s plan is to maintain Voile Rosé and Voile Doré in an exclusively onboard positioning up to March 2014, before offering them as a complement to Voile Noir and Voile Blanc. The planning that went into the creation and launch of Voile Noir and Voile Blanc was based on a huge amount of initial sampling to narrow down the range of preferred scents in line with the goal of developing a product based on traditional Arab oils with Asian elements. Similar attention was devoted to the packaging, in particular the flacon. The “Voile” branding itself was determined up front and combines ideas from eastern and western cultures, with the French word for veil denoting both the traditional item of eastern dress and the notion of mystery.

The launch of novelty fragrances Voile Rosé and Voile Doré builds on Traveller’s successful debut in fragrance creation with Voile Noir (for women) and Voile Blanc (for men)

While Madi says that Traveller was able to get a good idea of the market performance of all four Voile fragrances thanks to the outstanding sales returns they generated, it was more difficult to pinpoint the nationalities of the actual purchasers. “Gathering customer intelligence onboard is no easy feat,” he says. Fortunately, opening the domestic market distribution channels has yielded a much more detailed understanding of customer profiles and demographics. “With Voile Noir and Voile Blanc, we noticed that 60% of our buyers were GCC nationals looking for an authentic Arabic fragrance which simultaneously offered them a modern and occidental twist,” Madi says. Twenty-five percent of Voile buyers were Arab nationals who were particularly interested in heavier, oriental fragrances. The remaining 15% was—surprisingly—a mix of Western European, Southeast Asian and Latin American buyers, who Madi says were interested in “the tantalizing scents of the Orient and who wanted to explore a new olfactory palette.” Madi attributes the outstanding success of the Voile family in part to what he describes as “the overly daring visuals” used to highlight the launch of the four references and to promote purchasing. The initial visuals featured a female model clothed in black with a square gold-colored, metallic-accented mask/veil partially covering the face. The male model was dressed in all-white traditional Arab garb. Traveller has traditionally viewed advertising and marketing as absolutely pivotal activities in terms of ensuring the success of any brand. Typically, Traveller relies on having a solid presence in an airline’s inflight catalogs and magazines, and is careful to run promotions that take into account client preferences. “That said,” Madi adds, “all repeat purchases—which obviously contributed most of the sales numbers—are due to the fact that the fragrances themselves hit the jackpot. The look and feel, the price point, the scent, the names… all these elements came together and helped make Voile what it is today. “We aim to continue to slowly and steadily build this brand through adding more references to the range as well as growing the distribution network, especially with Traveller now having taken over the group’s full travel retail unit.” Traveller’s care in offering a product mix tailored to each individual airline on the basis of passenger profile, route portfolio and demographic preferences will help to ensure that the network grows naturally and solidly, Madi says.

The people side of success

Crew incentives continue to be a strategic element of the overall plan for Traveller. The company believes that crew motivation is key to ensuring positive results, and is essential in providing the added local know-how that can make the crucial difference in any market. Over and above the typical rigorous training programs that Traveller runs for airline crew members, standouts on the motivational side include the Tumi bag Incentive, where two Tumi Cabin Crew 20” travel bags were offered to Saudi Arabian Airlines’ top-selling crew members each month over a four-month period. With the Car Incentive, Traveller covers the charges of an automobile to be offered to the Oman Air crew member with highest total sales over a six-month period. And the Cash Incentive offers a total of US$30,000 over six months based on Qatar Airways’ calculation of which cabin crew have the best sales results. Throughout the month of August, AED1,000 (US$272) a day was offered to Etihad Airways crew members who posted the best daily sales. In addition to incentives, Traveller continues to emphasize the importance of crew member training individualized for each airline, particularly in sales techniques and presentation skills. It’s not surprising when you consider the entire group’s commitment to excellence. As this article went to press, Traveller had managed to train no fewer than 2,000 airline cabin crew members in 2013. With additional training programs slated through to the end of the year, Madi said he expected the year-end total to reach some 3,000 trainees overall.  GULF-AFRICA DUTY FREE & TRAVEL RETAILING



Feeling fragrant by


ITF expands globally with the launch of three branded fragrances


ince its inception in 2002, Italian Fragrances (ITF) has grown to become a formidable presence in the fashion and beauty world. With a top-notch management team headed by Massimo Cappini, a prominent figure in the Italian perfumery industry, ITF handles the creation, development and worldwide distribution of the fragrance and beauty lines of such reputable brands as Blumarine and Blugirl, and Custo Barcelona in Italy, Germany and Austria. And as a subsidiary of the ICR Industrie Cosmetiche Riunite S.p.A., the company is well positioned to become even more competitive in the marketplace. Being an Italian company, it’s no surprise that ITF is doing exceptionally well in Italy where it has premium locations in Rome, Milan and at a number of airports. Europe, in general, is a strong market—elsewhere in the world poses a few more challenges. “In Asia, our brands aren’t as strong so we are finding difficulties we need to overcome,” says Marcio Dos Santos, Export Manager. “The brands aren’t as well known. We are available in Bali and Jakarta in Indonesia, but not in Changi and other key airports.” In the Middle East, ITF has a number of initiatives to increase its presence in the region. This month, it’s launching Potion Royal Black, an intense fragrance by Dsquared2 that Dos Santos believes is “very tuned to the Middle East type of preference.” Its name is rooted in the ancient Egyptian hieroglyph meaning ‘black earth’, which was used to describe fertile soil. Dsquared2 has rejigged this concept to evoke themes of masculinity, sensuality and passion in the fragrance’s seductive scent and modern, glossy black packaging. Also this fall, Trussardi My Name will be rolled out in Italy. Dubbed “a visual interpretation of a woman’s feminine seduction”, this ultra feminine fragrance has notes of lilac, white violet and vanilla, and draws inspiration 48

Jewelry powerhouse Powellato is a new license for ITF, acquired less than a year ago

from antique spray bottles with its pearly color and sleek, oval shape. As a perfect complement to Trussardi’s feminine touch, jewelry powerhouse Powellato is a new license for ITF that was acquired less than a year ago. “We took the time to develop the fragrances for this jewelry house. It has premium boutiques in key Italian cities. It’s a very important group in Europe as they are the fourth biggest jewelry group in Europe, excluding watches,” said Dos Santos. “It’s a brand we are very excited about. Powellato is our first jewelry house and it has tremendous recognition— everyone that knows the brand loves it.” Different from every other brand in ITF’s portfolio, Powellato has been very well received by distributors. Its iconic Nudo jewel was the inspiration behind three new perfumes bearing its name—Pomellato Nudo Amber, a tribute to Oriental sensuality with notes of jasmine, Pomellato Nudo Blue, a European symbol of femininity scented with iris, and Pomellato Nudo Rose, an emblem of Asian purity. Each bottle echoes the exclusive cut of Nudo and is enhanced by a jeweled cap. Powellato debuted in the Italian market this month, to be followed by rollouts in Asia and the Middle East from November through March 2014. “We are trying to respond more to preference. We’re looking to the markets as an inspiration for scents, which is perhaps why we are doing so well. Even when there isn’t a strong enough presence in the market, we gain some credibility mostly due to the quality of the fragrance and the packaging,” added Dos Santos.


The launch of Dsquared2, Trussardi and Powellato will no doubt increase ITF’s reach in the global market, and signifies the company’s continued dedication to growth and brand recognition. Overall, ITF is experiencing double-digit growth; Trussardi in particular is exceeding expectation with an increase of 60% worldwide in 2012 compared to 2011. In the first quarter of 2013, ITF is seeing a 30% increase over the same period last year.  Also this fall, Trussardi My Name will be rolled out in Italy

Ajmal Perfumes

The heady



scent of success New travel retail exclusives and ongoing international demand for oudh based fragrances is giving Ajmal Perfumes a global advantage


ubai-headquartered Ajmal Perfumes has released a number of new travel retail exclusives this year, and with reported yearto-date sales growth of 10%, is looking to the sector as an important vehicle to drive the brand’s growing global presence. A 62-year old GCC family business, according to Abdulla Ajmal, General Manager, the success of the company’s 300-strong fragrance portfolio lies in its unique appeal. “We believe we have a unique product to sell within the crowded [travel retail] space and that has helped immensely push our sales up,” he remarks. Ajmal Perfumes has an established distribution network covering over 30 countries from the GCC to the Far East, and is increasing its duty free footprint with eight key locations to date, as well as onboard retail agreements with seven international airlines including British Airways, Kenya Airways and Saudi Airlines. Both general retail and travel retail figures are looking healthy for the second half of the year, and Ajmal believes that the travel retail environment is a “general barometer” for overall market performance. “We have presence within a number of major tourist destinations, from malls to souks, and the increase in inbound travelers has helped us to grow over the last eight months,” he says. The 2013 release of six new travel retail exclusives - Ambre Pimente, Ambre Fruite, Taaj Al Raas, Accord Boise, Accord Violet and Unveil - has also placed Ajmal Perfumes center stage, with positive traction in both duty free and onboard channels. “Overall, we have seen a good response to our travel retail exclusive products. All these references are international both in their fragrance and packaging design, meaning acceptability across segments is fairly high,” Ajmal elaborates. The sextet of travel exclusives is proving to be 2013 best sellers, with Ambre Pimente,


Ambre Fruite and Taaj Al Raas in particular, performing well. Ajmal Perfumes’ consumer base continues to be dominated by its historically strong source markets of Saudi Arabia and the UAE, where the sheer size of the population, and destination popularity are driving tourist purchases. Travel retail channel presence is also influencing general retail sales, and is often the first brand encounter for prospective customers, but there’s another major benefit, as Ajmal explains: “We own and operate largely out of signature Ajmal branded perfume outlets; therefore we know that there will be consumers who would not walk in because they would feel out of place. “Through presence in travel retail we are able to communicate our brand values and proposition to consumers who would normally not consider our product.” Market expansion remains an agenda issue for the brand, but while no new locations are committed as yet, a number of early stage negotiations are taking place. According to Ajmal, consolidation is the current focus. “We aim to strengthen our existing presence with new introductions as well as extensive product promotion and have been looking at Western markets for a while now, but market conditions dictate a calculated approach,” he says. Ongoing demand from an international audience for fragrances with oudh notes is working in the brand’s favor, and is reflected in its diversified customer base. “Travel retail is a wonderful environment as it presents us with the opportunity to attract a host of nationalities, and we are also being accepted by tourists from Russia, England and Germany,” says Ajmal. “There is a lot of interest from the buyers and the industry is following suit with global brands launching oudh based fragrances, and


Some of Ajmal’s travel retail exclusives include Accord Boise, Taaj Al Raas and Unveil

this is helping players within the industry gain global recognition,” he adds. And it seems that while the Gulf audience is used to more potent oudh-based fragrances, Ajmal reports that international consumers are increasingly buying into stronger scents, proving that this quintessentially Khaleeji (Gulf) fragrance is always in fashion. 


New—but still known

Clinique reworks its science-based Dramatically Different Moisturizing Lotion, but keeps the trademark texture


linique has been eager to get the word out about two new travel retail exclusive sets that feature its new Dramatically Different Moisturizing Lotion+ (DDML+). DDML+ is Clinique’s bestselling moisture lotion. The company says that continued use will make skin more resistant to degradation by external factors. The formulation is allergy tested and is 100% fragrance free. More is new with DDML+ than just the travel retail exclusives. The DDML formula has been revised to offer double the moisturization levels—without any extra oil—and a 54% improvement in the skin’s barrier strength after eight weeks of use. The trademark velvety texture is unchanged. The new sets became available at Clinique counters at travel retail locations across the Asia Pacific, Europe, the Middle East and Africa in July, with the Americas following in August. Below we present a Q&A discussion with Janet Pardo, Clinique’s Senior Vice President, Global Product Development. Q: So many people have grown to love DDML over the years. Why would you change the formula, today?

Janet Pardo, Senior Vice President, Global Product Development, Clinique

50 52

JP: Clinique is consistently researching new ingredients and technology to modernize its products and ensure clients receive the maximum benefits. The world has changed since DDML was launched in 1968, and consumers need more from their daily moisturizer. As a leader in the skincare industry, it’s Clinique’s duty to provide a solution. We work closely with our formulating dermatologists Dr. David and Dr. Catherine Orentreich to learn about people’s current skin care needs. Their patients have noted skin sensitivities caused by environmental assaults that the doctors have diagnosed as a weakened skin barrier. Clinique treats dermatological concerns so it was our duty to reformulate the Dramatically Different Moisturizing Lotion in order to help skin keep in the healthy essentials and better resist environmental influences. Q: Is it true that the creamier the texture, the better it moisturizes? JP: False. While it might seem logical that the thicker the cream, the more effective it is, the question is: effective at what? It is certainly more occlusive, which means it sits on the skin’s surface and may prevent moisture from escaping. Q: Should women use different types of moisturizers at different stages of their lives? For example, are lotions more targeted for teens and creamier formulas targeted for women? JP: This isn’t necessarily true. Skincare technology has made dramatic strides in recent decades, so light weight moisturizers can be packed with powerful ingredients that work elegantly and invisibly, no matter what your age. It really depends on the user’s preference and what end benefit she is looking to achieve.


Q: Why doesn’t the new Dramatically Different Moisturizing Lotion+ contain sunscreen? JP: Dramatically Different Moisturizing Lotion+ is for use twice daily; morning and night. Sunscreen is for use during the day when skin might be exposed to the sun’s rays. Also, when you add sunscreen ingredients, you change the texture of a product. Loyal DDML users have always been profoundly attached to its inimitable texture—and that is a delicate aspect of any well made formula. However, since the new Dramatically Different Moisturizing Lotion+ is very lightweight, we always advise using a moisturizer with SPF on top of the lotion, especially if you are not using a foundation with sunscreen. Q: What does “balance” mean in the context of great skin? JP: Physiologically speaking, balance has to do with the proper ratio of oil and water in the skin, so that it’s neither dry and irritated, nor greasy due to over-active oil glands. Clear, hydrated, calm skin that functions unimpeded is skin in balance. That’s healthy skin. Q: Clinique products are allergy tested. What is the difference between “hypoallergenic” and “allergy tested?” JP: Although the word “hypoallergenic” appears on many beauty products, there’s no agreement on what it really means which is why we set our own standards for ensuring skin’s comfort. All Clinique skin care products are allergy tested by a medical research organization under a dermatologist’s supervision. Each formula is tested on 600 people twelve times for a total of 7,200 applications. If a single one of those 600 shows an allergic reaction, the formula is rejected. c

30 years of challenges


Playing on the

world stage by


or high-end perfume house Amouage, the duty free trade is very good these days, according to CEO David Crickmore. Crickmore says Amouage’s duty free business is currently running at 35% up on 2012, and he expects that rapid growth will continue over the next two years. Amouage has recently made a calculated choice to get out of onboard duty free on most


airlines, the one exception being Oman Air, where Crickmore says that Amouage has been “incredibly successful.” But that one case aside, Crickmore says that Amouage has concluded that onboard duty free selling isn’t a good fit simply because ultra-premium products really need to be presented to consumers by highly trained and knowledgeable staff who specialize in this area, and this kind of treatment simply can’t be offered by flight attendants for whom

David Crickmore, CEO, Amouage



Amouage crosses the threshold as an international leader in luxury fragrances

duty free sales aren’t their main focus. The withdrawal from onboard probably won’t have a major impact on returns, as Amouage is at the same time opening up more firmly in the US, European and other duty free markets. “We believe the brand is now so widely accepted in the international arena that this has to be the next logical step,” Crickmore says. “Europe has major potential considering our continuing success there downtown, and the Far East too is proving interesting. This year we’ve seen considerable strides made in the US, and we’ve just opened really well in several countries in South America—so we can now truly claim to be an international luxury house.” Amouage has a solid presence in the Gulf, Crickmore says, with the brand firmly ensconced as one of the top-ranked brands in Dubai, Abu Dhabi and Sharjah. Growth is good in Kuwait, Qatar and Jordan. “We’re waiting for the new developments planned for Saudi Arabia, and of course our presence is very strong in Muscat Duty Free,” Crickmore adds. “Our sales in Singapore [with Changi] are also excellent.” Singapore’s Changi Airport is a key locale for Amouage. The brand has traded there since late 2007, and is in terminals 2 and 3. The Terminal 2 presence includes a brand personalized gondola plus additional in-store exposure. In Terminal 3 Amouage has a wall bay plus some front space and gondola space. Purchasers include Europeans, Australians and New Zealanders, Americans, Indians, Indonesians, Singaporeans, Malaysians, Russians and mainland Chinese. Sales are growing at a brisk 20-25% per year. In the Americas, Amouage is in discussion with DFS for space at JFK’s Terminal 3, while the brand as yet has no duty free presence in South America, having just entered the downtown market in that part of the world. Amouage is currently on the ground in Chile, Paraguay, Uruguay, Mexico, Costa Rica, Panama and El Salvador and Crickmore says it will be in Argentina, Colombia and Venezuela by Christmas 2013. “This is an exciting new development for us in markets where we believe there is a huge potential due to

Fate for Woman

consumer taste being international these days.” Crickmore has noticed a shift in retailer buying behavior in the fragrance category. “I think there’s a change, and the buyers aren’t just going after the same ubiquitous brands as they’ve always bought,” he says. “More and more buyers are looking for a point of difference or to reflect local trends or taste. There’s more of a focus on the top-end consumer, I believe—and that suits us just fine.”

Speaking for itself

The brand’s market success is all the more notable when you consider that Amouage doesn’t emphasize promotional activities as part of its marketing mix. “We tend not to run promotions as we believe our product speaks for itself without trying to convince people to buy through the use of gimmicks or free gifts,” Crickmore says. “Our strategy is to increase the depth of product offer through the opening of dedicated, identified sites, as this has been a proven way to success, especially when we see the sales in Dubai, Muscat and other areas where we have an identified presence with well trained staff.” With promotional activity relegated to the second tier, critical market differentiators for Amouage are product quality and attention to detail in packaging, Crickmore says. “We believe that we don’t disappoint consumer demands,” he says. While he hesitates to assert that Amouage views itself as a setter of trends in the market, he is satisfied to note that more and more mainstream brands are attempting to use more unusual, niche ingredients. “As for following trends, we try to set our own direction rather than slavishly following what everyone else is doing,” he says. “Amouage has a métier in its fragrances that is recognized by consumers and retail buyers alike, and to

Fate for Man

date it seems to have stood us in good stead, as business is growing well.” Ongoing best sellers for Amouage include the recently launched Interlude and Honour lines, but Crickmore is quick to note that the very newest launches are always the top sellers. In Amouage’s case this is Fate. The fragrance expresses the end of the first cycle of the Amouage narrative and is available in both men’s and women’s iterations. “I wanted to celebrate the power of mystery and end the narrative without a defined conclusion,” says Creative Director Christopher Chong. “Amouage fragrances have always challenged convention, and in tribute, the last story of our first chapter does not pre-ordain the characters’ fortunes but instead sets them free into the world, where their fate awaits them.” Fate sports a floral heart underscored by a “dark and destructive” accord. Fate for Woman opens with spicy accords, fronting a base powered by a blend of frankincense, oakmoss and leather. Fate for Man highlights notes of citrus, absinthe and sharp ginger, which opens into a heart of rose and frankincense. The woody accord in the base voices notes of cedarwood, sandalwood, musk, liquorice and tonka bean. The fragrances are presented in the trademark Amouage clear glass-crystal bottle with a rainbow undertone, and the gold plated caps are accented with a Swarovski crystal inspired by aurora borealis. The bottles are housed in kaleidoscopic

purple-toned boxes with gold foil illustrations depicting varied interpretations of Fate. Men’s and women’s fragrances are available in 50ml and 100ml EDPs. The women’s 50ml EDP retails for US$260 and the 100ml EDP for US$325 in the GCC. The men’s 50ml EDP sells for US$245 and the 100ml EDP for US$300 in the GCC. The fragrance has been forcefully launched in all of Amouage’s 15 international standalone shops in the Gulf, Malaysia and the United Kingdom. Amouage is also now sold in more than 50 countries in the world’s most prestigious stores in London, Hong Kong, Singapore, Australia, Berlin, Geneva, Russia and New York City. 

Amouage’s best sellers include the recently launched Interlude and Honour lines, but the very newest launches such as Fate are always the top sellers GULF-AFRICA DUTY FREE & TRAVEL RETAILING


Beauté Prestige International

Premium BPI’s ultra-premium offers find a warm welcome in the Middle East and Africa

plus by


he prestige, design-oriented fragrance house Beauté Prestige International (BPI) is already well established throughout the Middle East and Africa, says Olivier Decazes, Travel Retail Director, Europe and Middle East. BPI has enjoyed substantial growth over the last three years thanks in large part to Issey Miyake, Narciso Rodriguez and the outstanding performance of Elie Saab fragrance since it was launched in 2011. Travel retail has been especially robust in Dubai, Beirut, Abu Dhabi, South Africa, the Maghreb and Egypt, while the domestic side has fared well in Saudi Arabia, the UAE and Kuwait over the last couple of years on the strength of Elie Saab and Narciso Rodriguez. “In travel retail we’ve grown roughly by more than 15% since 2011,” Decazes says. “We expect to keep that pace for the next two years.” Decazes is emphatic in stating that the Middle East is expected to be the top growth generator for 2013/14, with a 15% benchmark set. Growth on the domestic side, meanwhile, is expected to average around 10% across the region. “BPI has a strong partnership with the key retailers in the region,” Decazes says. “We have played some exclusive podiums with Dubai Duty Free for the launch of Elie Saab EDP and EDP Intense, which have met with great success, with average sales on Elie Saab of more than 270 pieces a day, for example. We’re planning the same kind of mega podium for the launch of Narciso Rodriguez For Her Amber Musc in September.” With Beirut Duty Free, BPI has also played large podiums that have enabled it to reach close to 10% market share in fragrances during the launch of Elie Saab, Decazes adds. BPI has invested heavily in staffing over the last few years and plans to continue. And the company is benefiting from the launch of a number of new products tailored to Middle East customers, like Narciso Rodriguez For Her Amber Musc. A high-end premium Elie Saab collection will launch in 2014 with key retailers.


BPI has enjoyed substantial growth over the last three years thanks in large part to the outstanding performance of Elie Saab fragrances


Best-sellers in the Middle East include the Elie Saab EDP, EDP Intense and EDT, and Narciso Rodriguez For Her. From Issey Miyake, L’Eau d’Issey and L’Eau d’Issey pour Homme are among BPI’s top six lines. For the TFWA World Exhibition, BPI will highlight a new variation within the Elie Saab Le Parfum line, due to hit counters next February. Also in the spotlight will be a new feminine fragrance from Narciso Rodriguez, due toward the end of 2014. A new catalog segment for a new territory for Issey Miyake l’Eau d’Issey pour Homme is also slated for around the same time. Jean Paul Gaultier is also due for some novelty, this time to infuse modernity into the Classique marque, an initiative Decazes says should recruit new customers. Of late, the market has been increasingly driven by demand for ultra-premium collections, as well as distinctively Middle Eastern notes such as oud and amber. Retailers have responded by asking suppliers for exclusives and avant-première opportunities, Decazes says. “These mechanisms enable us to develop key partnerships with some top retailers,” he says. “Premium space and promotions are granted against avant-première, for example.” During the promotions, retailers and customers demand perfection in the service they receive, of course. For all of its brands, BPI is in the habit of offering travel retail exclusive value sets, miniature sets and—for the most established lines—duo sets. Decazes says that exclusive editions will be proposed for some specific key retailers in the future. The unique DNA of BPI continues to be its emphasis on the individual designers who create the fragrances, Decazes says. But that alone isn’t enough. The brand listens closely to retailer feedback and requests, and conducts its own market research. And having feet on the ground is still the best way to stay in touch; Decazes says BPI’s Beauty Advisors in the field continue to be a vital conduit of information about what customers are saying. 


Beauté Prestige International is benefiting from the launch of a number of new products tailored to Middle East customers, like Narciso Rodriguez For Her Amber Musc

Be Keen

A keen

edge by


New niche consultancy aims to shake up the luxury end with unique ‘storied’ brands

Antoine Khouzami co-founded Be Keen with Abla Bencheikh to focus on introducing unique, one-of-a-kind brands into domestic and duty free channels


he niche brand means a lot to Antoine Khouzami, President of newly established travel retail agency Be Keen. Khouzami co-founded Be Keen with Abla Bencheikh to focus on introducing unique, one-of-a-kind brands into the perfumes, cosmetics and skincare channels in both the domestic and travel retail channels. Both are especially keen on brands that set themselves apart by having a strong, “genuine” story line to back up their market presence. Khouzami and Bencheikh bring to their new project a wealth of experience that puts Xerjoff is a Turinbased perfume house specializing in artdriven luxury perfume and combining Italian craftsmanship with French perfume know-how

the new agency in an ideal position to introduce its unique brands to the market. Bencheikh managed key travel retail accounts in Europe and Africa for LVMH and L’Oréal, and Khouzami’s background includes stints with LVMH and Godiva, where he was responsible for local markets as well as travel retail. The press release announcing the formation of Be Keen says that the new agency “aims to be ‘the’ strategic partner for niche luxury brands, helping companies to launch and build business in travel retail through long-term, qualitative partnerships.” Khouzami is quoted as saying that the travel retail industry, while complex, challenging and highly competitive, has now evolved to the point where it serves as the main arena and growth driver for many leading luxury brands. “We understand totally the specifics of the niche fragrance category—where the rules are different to other luxury categories,” says Khouzami. “Through our contacts we are able to work directly with the brand owners, perfumers, ‘artists’ and understand the constraints and concern for their creations. We speak their language [and] understand their need to project the magic of the brand; the ‘dream’ they are trying to convey to consumers.” Khouzami says that the travel retail market has always been a “daring” channel, where market developments frequently become evident before they manifest in the domestic market. “At least this was my belief,” he says. “So why don’t we try to offer consumers

something different—something they won’t find everywhere?” The business partners were encouraged to pursue this vision by the beautiful retail environments that have been created in many airports, where there seemed to be room to add something unique and different. “We’ve seen a trend of niche brands taking more and more space in department stores from Milan to London to Moscow, even in Asia. We really fell in love with these brands; their stories are amazing. Most of them have a creator behind them, so we’re really talking about genuine stories with amazing products, incredible raw materials, and fine quality.” Be Keen, which also works in the domestic channel, is now hard at work with a number of brands that have genuine stories, Khouzami says—stories that he believes will have a huge market impact once they are properly presented. “We’re not sitting around the table and making concepts up,” he says. “We’re talking about very old brands that were vanishing, that have been purchased by passionate people and relaunched. We’re always speaking about brands with heritage—or about new brands and new creators.” The agency has been working to launch Penhaligon’s, L’Artisan Perfumeur, Xerjoff, Parfums d’Orsay, Teo Cabanel or The Different Company brands in travel retail. In the high-end fragrance category, Khouzami says, opening new stores requires an operator that understands that this is in fact a separate, fourth category beyond makeup, skincare and

fragrances. “High-end fragrances need a different approach, even in the way the products are merchandised and supported.” A measure of Be Keen’s success is the fact that the agency is currently in talks with operators in Korea, China and Japan. “We didn’t expect such great feedback from Asia. Everyone says Asia is a skincare market—and China is definitely a skincare market—so we were extremely surprised to find out they were interested in our brands. They’re interested in offering differentiation. They’re ready to do something to offer that to the consumer.” After some brief initial skepticism from some quarters, Khouzami says Be Keen’s luck turned with Nuance, DFS or Qatar Duty Free, who he says understand the category well. “We’re expecting some regions to pick up much quicker than others, and Asia was a huge surprise.” In the run-up to the TFWA World Exhibition in Cannes, Bencheikh singles out the Xerjoff, L’Artisan Parfumeur, The Different Company and Tiziana Terenzi brands. Xerjoff is a Turin-based perfume house specializing in art-driven luxury perfume and combining Italian craftsmanship with French perfume know-how. Bencheikh promises that the brand is hard at work on a “very exciting” exclusive project but was unable to reveal any more than that.

Explosive emotion

Bencheikh says that L’Artisan Parfumeur is one of the most iconoclastic fragrance houses in the world. Founded in Paris is 1976 by parfumier/chemist Jean Laporte, it was one of the first “niche” perfume houses and now boasts a portfolio of 33 fragrances. The presentation is distinguished by a heptagonal bottle against black packaging, with colored highlights to accent each product. For September, the house’s new release is “Explosions d’Émotions,” a new collection of eaux de parfum. The foundational cedar of “Amour Nocturne” is surrounded by notes of hot milk and caramel, and succeeded by a finishing burst of gunpowder and orchid. “Déliria” proffers a contrast between metallic, rhum and gourmand notes of toffee apple and candy floss. Top and base notes are enveloped in the heart. “Skin on Skin” merges sensual iris with a suede, velvety leather overcast. The combination of saffron, whisky, lavender and rose devolves into musks and skin effects. Be Keen has also partnered with The Different Company and Tiziana Terenzi, Bencheikh says. The Different Company defines itself as the only haute parfumerie contemporaine, and combines luxury fragrances with cutting edge design. Tiziana Terenzi’s perfumes derive

Be Keen has also partnered with The Different Company who defines itself as the only haute parfumerie contemporaine, and combines luxury fragrances with cutting edge design

their narrative story line from a journey voyage through and about fire. The family-owned Italian niche brand was launched in 1968 and remains family owned to this day, with the eponymous Tiziana Terenzi serving as designer and co-owner with her brother Paolo. Two new launches are planned for September. “We have received very positive feedback from the trade, which has confirmed to us that, without a doubt, the industry is looking for premium and niche fragrances,” Khouzami says. “There’s a very real and high demand from the traveling passengers for new and innovative lines. That has been seen to be true whatever the region—it is a global demand.” With more and more retailers eager to come on board, Be Keen is now in detailed discussions on a number of potential new openings. And the agreements with existing retail partners are being expanded as new brands are added and in-store niche brand projects are launched. New developments include an opening with Nuance in Antalya’s Terminal 2, where Be Keen’s brands command a sizeable proportion of the luxury perfume footage. Add to that a new opening at JFK International’s Terminal 4 through DFS, in an area dedicated solely to the premium fragrance category. Four more airport locations will open by year’s end, Khouzami says. Be Keen will also be featuring its exclusive brands in the massive new Doha International Airport, which is scheduled to open by year’s end. “O u r c u r r e nt retail partners understand that niche

brands need to be treated differently from commercially established brands, that the activation programs are different, that the whole concept demands a different approach,” Khouzami says. Positioning itself firmly as a full-service agency, Be Keen ensures that once a brand is in place, regular follow-up site visits and communication are maintained to ensure that all targets are achieved. That service ethic extends to the point that Be Keen will also work with operators to develop airport sites that may not initially offer the retail setting required for the presentation of the luxury niche brands it specializes in. Khouzami and Bencheikh are gratified by their success so far. “We’re thrilled and proud to have been working hand in hand with Nuance and DFS this year,” Khouzami says. “It’s been an amazing journey—and this is only the beginning.”  Be Keen has been working to launch Penhaligon’s into the duty free and domestic markets GULF-AFRICA DUTY FREE & TRAVEL RETAILING




The new Travel Collection concept offers the Piccolina handbag in various new colors and is available in both medium and large sizes


Although facing a market slowdown, Aigner remains focused on launching novelties and catering to promising regions by



ike any industry, travel retail has a particular ebb and flow. More often than not, this rhythm is controlled by economic conditions. With suppliers facing challenging times thanks to slow market development and a general decline in sales at the moment, companies are switching gears and focusing their efforts on productivity. Such is the case for leather lifestyle brand Aigner. With the current slowdown, Aigner is focusing heavily on its product offering and is preparing to launch several novelties. “It is very important for us to compensate this loss with a great collection and continuous growth in different markets,” says Myriam Staude, Head of Sales, Middle East, Africa and Travel Retail Europe. At this year’s TFWA World Exhibition in Cannes, Aigner will launch its Travel Collection concept based on the palette of the main collection, incorporating new styles, prints— including a special print version in Sand and Blue—and limited seasonal colors—Tucan Yellow, Heliconia Red and Vibrant Purple. “The new products feature great functionality and at the same time offer strong design elements that combine a color-rich range with the latest fashion trend,” says Staude. The new collection includes new models and existing models in new colors. Existing model Piccolina, a handbag with a leather strap and handles, is available in new seasonal colors— Icon Fabric and a specially designed print with a snaffle-bit pattern exclusively for travel retail .With a magnetic lock and large zip compartment, Piccolina is ideal for traveling. Another model, the Crossover Bag, is available in two styles and a variety of colors. With


its shoulder leather patch and adjustable strap, the crossover bag is also ideal for traveling. The bag is light, folds flat and has plenty of pockets, rendering it highly functional. The Messenger version of the Crossover bag features padded compartments for an iPad and iPhone. With its zipper closure, the bag is distinguishable thanks to its large Aigner logo. Lastly, the Mini Bag is an extra small bag ideal for evenings out. With a horse shoe buckle on the front and an attachable strap, it can be worn as a shoulder bag or kept as a clutch or vanity bag to hold accessories.

Focused on offerings

In addition, Aigner is also launching a new color called Pitaya Pink, which will be an inflight exclusive. Along with the bags, MiniPiccolina key chains and card holders, a matching shawl will be offered in Pitaya Pink and Night Blue. “One of our main aims for 2014 is to focus on our core styles and colors and at the same time give customers a variety of choice that will suit each individual need,” says Myriam Staude, Head of Sales. “Our products are high quality and items like the key chains and card holders are a perfect gift option.” Moreover, Staude felt it was important to provide airlines with a point of difference over ground shops, which was the impetus for launching the exclusive new color—Pitaya Pink. Also set for launch at the TFWA World Exhibition is Aigner’s new “It” bag—the Cybill Bag, which was dedicated to Sib-


Cybill, Aigner’s new “It” bag, was dedicated to Aigner CEO Sibylle Schön and features Italian craftsmanship

ylle Schön, Aigner CEO. Inspired by the successful Heritage collection, which was designed to pay homage to the accessories of the 1970s and featured leather classics, the Cybill Bag combines traditional Italian craftsmanship with the requirements of a modern business handbag. The second collection set for launch is Brazilian Beats, the Aigner Leather Collection for Spring/Summer 2014. The collection features new bag shapes, including Saffiano, Copa and “It” bag Cybill. The shapes include A-logo patterns and innovative textural embossing, with a focus on fine quality leather, along with careful finishing and modern design. “We are extremely proud of our 2014 Spring/Summer collection,” says Myriam Staude, Head of Sales. “Our exclusive leather creations bring together traditional leather

craft and innovative style in an impressive way. Aigner has a true love for leather, and this collection really showcases that.” The Spring/Summer 2014 collection offers three themes or color ranges: Birds of the Amazon, featuring Palm Green, Rio Blue and Tucan Yellow paired with White and Raffia hues; Sublime Nature, featuring Amazon Green, Bast White, Terra and Bahia Brown; and Copa Carnival featuring Heliconia Red, Pitaya Pink and Gold, anchored by Black. In addition to the Cybill Bag, available in Black, Taupe, Heliconia Red, Burgundy and Amazon Green, the Leather Collection for Spring/Summer 2014 features Saffiano, a soft leather bag available in Black, Heliconia Red, Terra Brown and Vibrant Purple. The collection also features Copa, available in Black, Tucan Yellow, Terra Brown and Azalea.

more on its leather collection. In addition, Aiger has noticed that price is often disregarded in favor of quality and design in the Middle East. “One example is our new “It” bag, the Cybill—although the price is comparably high, it is selling extremely well, which shows us that it is not always the price that matters,” explains Staude. “And of course, all bags with our well known logo materials are generating great sales.” In addition to favoring quality and style over price, Staude notes consumers in the Middle East are also looking for recognition. “When the bag is perfect in quality, color and style, they buy it; however, they look more and more for an outstanding bag which can be recognized all over the world,” she says. “Our logo material in many different colors and styles is still one of their all-time favorites.”

Taking note

Future plans

Collections aside, Aigner is working towards targeting the Scandinavian and Eastern European markets as it feels there is significant buying potential from the regions. “Moreover, we are expanding with our Travel Collection on various airlines to catch passengers not only at the airports but also on the airplanes,” Staude adds. Presently, Aigner has noticed a trend towards small bags and accessories and a focus on color. “Customers do not only want the best quality and functionality from their bag, but also look for outstanding design and strong colors which characterize and create a really individual look and personal style for the owner,” says Staude. Aigner’s Travel Collection is currently doing well in the Middle East even though customers in the region tend to concentrate

Looking ahead, Aigner sees great potential in the Middle East and also in Asia, as the region is currently the largest buying group worldwide. The brand will continue to invest in various media outlets as a means of gaining further exposure in profitable regions. Currently the brand has a TV spot at Munich Airport, banners and light boxes at Amsterdam Airport and light boxes at Beijing Airport. Furthermore, Aigner is actively taking part in various promotions such as Munich Airport Shopping Night.  Part of Brazilian Beats, the Aigner Leather Collection for Spring/ Summer 2014, the Saffiano and Copa bags feature fine quality leather

To maintain relevance, meet customer demand and continue to set trends, Aigner’s design team travels extensively to seek out the newest trends and developments in the world’s fashion capitals. “It is extremely important that they keep up with the current trends and styles but without losing track of our roots and heritage,” says Staude. “On the other hand, our sales teams function between our buyers/distributors/ end-consumers and our design team.” In addition, Aigner also consults client feedback, which Staude feels is the most effective method for determining consumer demand. “Their preferences and what they tend to criticize—this feedback is passed on to our design team to include into new designs,” says Staude.

Aigner’s Crossover Bag is available in two styles and a variety of colors and features a zipper closure and a large Aigner logo GULF-AFRICA DUTY FREE & TRAVEL RETAILING



Tateossian set to

accessorize Global jewelry brand extends its line of fashionable pieces onboard


f you look at Tateossian’s company history, it’s evident that the leading jewelry and accessory brand has achieved steady growth since its inception in 1990. After launching its first men’s collection in 1991, the company introduced the watch cufflink in 1994, which instantly became a global hit. Soon after, several stores made their debuts around the world including the first corner concept in Hong Kong in 2000, its flagship store in the exclusive Royal Exchange in London in 2001, four additional stores in London between 2004 and 2010, and most recently in 2011 its first international stand-alone store in Yerevan, Armenia. But now Tateossian is setting its sights on continuing the momentum in the duty free market, both in the air and on ground. According to CEO Robert Tateossian, the company hopes to venture into airports now since “these types of items are easy to pick up and run with.” These include pens, which he says the company has made a breakthrough with thanks to a new listing with British Airways, and the gear cufflink, Tateossian’s number one product that’s now being sold onboard Virgin Airlines and KLM. But what’s really exciting to the CEO is a new listing with Asiana Airlines of a men’s watch. “We recently got a listing with Asiana, which I’m really happy about because I’ve been trying to work with Korea and Asiana for literally six to seven years,” he says. Elsewhere in Asia, Tateossian is seeing growth from developing and emerging markets like Indonesia and Malaysia, while Hong Kong continues to show strong numbers. “India is a market that’s opening up for us,” he says, adding that the company now has a distributor there as well as seven points of sale. In China, Tateossian is pursuing opportunities though he admits there are obstacles since China is a market that’s largely interested in “super branded products”. As for the rest of the world, Turkey has emerged as an incredibly strong market while Canada and the US continue to pick up speed.




Of course, you can’t have company growth without innovative products, of which Tateossian has plenty. Its well-established bracelet line has expanded with new additions this season like the Tateossian Small Nugget featuring semi-precious beads, as well as the Tateossian Carbon Fibre bracelet, which combines braided Italian leather with a highly polished clasp. Of the latter, the ‘Scoubidou’ is selling particularly well with the new ‘Double Scoubidou’ expected to follow suit. On the men’s side, a new variation of the widely successful Gear cufflink has been introduced to the duty free market. Available exclusively onboard British Airways, the Gear Perspex comes in various sizes, is framed in a round casing and is set against multicolored gears. Each component can be manually rotated to create a completely interactive experience. “We continue to do lots of bracelets and cufflinks – anything that is mechanical, anything that moves is popular,” says Tateossian, who has long been known as ‘The King of Cufflinks’ within the industry. “We continue to see huge opportunities for men’s accessories. We’re very well positioned because we are one of the leaders in this sector.” But it’s not just jewelry that’s on offer – the company has made a natural progression from men’s and women’s jewelry to gadgets and tech accessories. According to Tateossian, currently in development is a line of iPhone and iPad cases inspired by the brand’s history of innovative use of materials like semi-precious stones, stingray and leather. The Leather Case series will be available in a spectrum of vivid colors ranging from orange to purple, each one lined with a micro fibre lining and embossed with the Tateossian signature logo. “These cases will be made in Turkey while the bracelets will continue to be made in the UK,” he adds. “This is a huge opportunity. There’s a lot of cheap and cheerful out there but in terms of designer wear, not many people are doing it.” 


Tateossian has developed a line of iPhone and iPad cases inspired by the brand’s history of innovative use of materials like semi-precious stones, stingray and leather



Hamad International Airport, Doha

Luxury Jewelry Report A Fontenay Paris necklace set in 18-carat gold-plated metal with cubic zirconia stones


accents Jewelry brands have taken note of this season’s bold trends and have delivered accordingly with new collections by

Fontenay Paris earrings set in 18-carat gold-plated metal with cubic zirconia stones



hen it comes to jewelry in the fall, lush diamonds, gemstones and rich yellow gold seem to take center stage. This year seems to be no different, as brands have launched collections featuring opulent combinations that illustrate this season’s palate. New from Swarovski is its Fall/Winter Collection 2013/2014, titled “Secret Treasures.” Inspired by the Silk Road—the historical network of trade routes named after the lucrative Chinese silk trade—the collection was designed around four legendary locations, from China to the Himalayas, India and Venice. “As I was strongly influenced by my travels to Asia, China, the Himalayas and India, I have a special connection with the inspiration of this collection,” says Nathalie Colin, Creative Director, Swarovski. Featuring winter-inspired elements warmed by color, the collection displays Swarovski’s precision, re-invention, modernity and refinement.

Finding inspiration

In Secret Treasures Swarovski demonstrates its mastery in jewelry techniques and crystal cutting. Settings, Pointiage, pavé work, beading and embroideries are enhanced with cut crystal stones, crystal mesh, and crystal rock that give crystal added radiance, revealing a mix of heritage and innovation. From China, Swarovski adopted the symbolism of yin and yang, illustrated by the Stone theme. Luxurious and streamlined, this piece features sensual curves that are given ultra shine by pavé crystal work. The microfiber base material with a black and white color


Fontenay Paris ring set in 18-carat goldplated metal with cubic zirconia stones

gradation is embroidered with crystals, while in the center a large faceted crystal stone is proudly placed. The matching oversized earrings evoke a key jewelry trend this season. Their harmonious and feminine lines illuminate the face and add charm. In the Himalayas, mountains, forests and glaciers leave a mineral imprint on creations with organic lines, of which the Vita line is a perfect example. Cut into a cabochon, the central crystal stone sees its contours highlighted by small tone-on-tone crystal stones, set by hand using the exclusive Pointiage technique. Vita takes on frosty winter tones and lends itself to a range of looks from sophisticated to classic. India’s influence is easily detected with the abundance of colors, silk, rich gold, and precious stones: India’s influence leaves its ornamental and exuberant mark. By inviting the talented Shourouk to design some pieces for the collection, Nathalie Colin has initiated a new collaboration for the collection. Shourouk is familiar with Swarovski as she has used crystals on her own creations in the past, and has now designed a necklace aptly titled Swarovski by Shourouk. Flexible and mounted on cord, the necklace features a bib form embroidered with crystals. Venetian inspiration can be detected in


these pieces, which were designed to evoke palaces in Venice. The large Venetie cuff plays on this opulence in rosegold plated metal, richly decorated with a blue crystal cabochon, pearls and baguette-cut crystals. With interlacing chains in black PVD, the Vermeil cuff exemplifies the spectacular side of Venice and adorns the wrist with modern lace in strong, graphic lines. In the center lays a large cabochon entirely covered with hand-applied crystal stones, while other crystal details add a touch of gold, arguably this season’s biggest trends.

Everyday opulence

Swarovski’s Secret Treasures collection delivers a range of offerings that allow women to mix and match their accessories, for either special occasions or everyday looks. “We live in a time when adaptability is key. Therefore, accessories must become more versatile, says Colin. “This is the guiding principle by which we design jewelry and accessories that will accompany women in their everyday lives.” French watch, jewelry and accessory company Fontenay Paris takes a page from this

Enjoy necklaces feature warm golden shades combined with a bead set with pavé white cubic zirconium

The Stone-themed oversized earrings evoke a key jewelry trend this season

The Swarovski by Shourouk Necklace is flexible, mounted on cord and features a bib form embroidered with crystals.

The First set features dark cultured freshwater pearls surrounded by rose gold

With interlacing chains in black PVD, the Vermeil cuff exemplifies the spectacular side of Venice and adorns the wrist with modern lace in strong, graphic lines

season’s gold and opulence book as well. Currently celebrating its 20th anniversary, Fontenay drew inspiration from the famous Fontenay Abbey in Burgundy, France. Currently available in Paris Gallery stores in Dubai, Fontenay Paris launched its first jewelry collection only last year. The brand created a second jewelry collection this year as part of its 20th anniversary celebration. Pieces in the collection are set in 925 sterling silver and 18-carat gold-plated metal. The collection also features cubic zirconia. “The designs have an everlasting sophistication that will please lovers of exceptional items, all at an affordable price,” says the company.

Mixing it up

Misaki’s latest collection Pearlity, meaning “pearls and purity,” adds something different to the fall jewelry trend lineup: pearls. Pearlity features pearls highlighted by jewelry with fluid lines that echo contemporary design. The Pearlity collection will be launched at this year’s TFWA World Exhibition in Cannes. Misaki designed its new collection with what the brand calls a “return to essentials” approach, where the designs celebrate pearls as

one of nature’s treasures. At the center of each piece, the pearls are embellished by flowing lines that showcase each pearl. The Pearlity collection showcases Misaki’s expertise as a pearl jewelry brand, best known for hand-picking pearls that are then integrated into its jewelry creations, such as Freshwater Cultured pearls, Tahiti pearls, South Sea pearls, Mother of Pearl and Misaki’s technologically advanced Handmade X-Treme Lustre pearls. Approximately 30 themes comprise the collection. Key themes include the First set, which features dark cultured freshwater pearls surrounded by rose gold. Articulated components allow the ring to be worn in two different ways, either open or closed. The Adore set adds Parisian chic to each piece. The pearls are arranged in a contemporary fashion in this set, which features Misaki’s high-quality Handmade X-Treme Lustre emulated pearls. The earrings display a prong setting on the top pearl and the matching sautoir reveals open work on decorative elements set with white pavé Cubic Zirconium. A notable piece in the Adore set—and adding silver to the fall lineup—is the True

bracelet. A minimalist adjustable silver bangle, the True bracelet showcases a 12-13mm buttonshaped cultured pearl in enigmatic silver, pure white or magical black. The Love set is an ideal gift for romantic occasions such as a wedding or Valentine’s Day. White cultured pearls—commonly symbolic of purity and innocence—are combined with a silver heart and a decorative element set with pavé cubic zirconium, which adds romantic appeal. Individual statement pieces, the Enjoy necklaces feature warm golden shades combined with a bead set with pavé white cubic zirconium. The necklaces are sterling Silver-925 and Rose or Hamilton Gold plated, for a tone-on-tone effect. The Agate pieces explore the beauty of white cultured pearls combined with Agate stones. Agates, whose talismanic properties have been recognized since ancient times, display themselves effortlessly in these statement jewels. Lastly, the See glass holder is easily an essential accessory. A long cultured pearl glass holder, See is available in white, pink or black and doubles up as a stylish sautoir.  GULF-AFRICA DUTY FREE & TRAVEL RETAILING


Scorpio Worldwide

Next Stop:



The Middle East Scorpio Worldwide takes the region by storm with a brand new office and product ranges


sk Richard Kennedy, Sales and Marketing Director of Scorpio Worldwide, about the key to company success and he’ll tell you it’s being receptive to change and innovative new ideas. If that’s the case, then it would seem that Scorpio is well on its way to becoming one of travel retail’s biggest success stories Founded in 1997 and based in the UK, this family-based business provides sales, marketing and distribution service for airlines, airports, duty free shopping groups, ferries and cruise lines. Over the course of its 15-year history, it has compiled an impressive list of products that include major brands in fragrance, cosmetics, watches, jewelry, accessories, gadgets and travel goods, and has grown so quickly that offices were opened in the Americas, Asia Pacific and the Middle East. In fact, the company is growing at such a rate that it recently opened a new regional office in Dubai which is five times the size of its previous showroom in the city. The new space at the Jumeirah Business Centre in Jumeirah Lake Towers was created specifically with growth in mind, featuring an open concept that allows for room to accommodate up to 20 staff members. “In simplest terms, we outgrew our present operation here in Dubai. Following the

For travelers who love their toys, there’s the Smart Control Sky Helicopter with a free downloadable Smart Control app, as well as the Smart Control Ferrari Enzo, an ideal gift for both kids and car buffs


success and compelling growth in the region, it was imperative that we provided a support structure to mirror the achievements that we are seeing here everyday. It was a natural progression to move to a 2,500 square-foot office to offer our customers a showroom, displaying all of our brands,” says Kennedy. The Middle East, which ranks as one of the company’s top three global operations, is “very important to us, which is why we have provided a platform of support for our valued customers and this ever emerging market,” he adds. In the region, Scorpio promotes a wide range of its brands, including JUST, Aviator, Pierre Cardin, Hot Diamonds, Time Design, Montine and its newest brand, Lip Smackers, to name a few. For its ground shops, the company’s best-seller is Humphrey the Camel range and the JUST plush range, which represent around a third of overall sales in the Middle East. Inflight, Aviator continues to lead the pack with significant market share in the region. Joining Aviator in the air is a brand new range of innovative products from thumbsUp!, a British developer of toys and gadgets for both adults and children. The products include the Aqua Case for iPhones, both form-fitting and waterproof, the Eye Scope for iPhone 4 and 5 with zoom lens, the SpyCobra Deluxe, ideal for parents and employers wanting to keep an eye on Internet activities, and the Touch Speaker, which uses new-tomarket Near Field Audio technology to pick up the phone’s frequency and amplify sound. For travelers who love their toys, there’s the Smart Control Sky Helicopter with a free downloadable Smart Control app, as well as the Smart Control Ferrari Enzo, an ideal


gift for both kids and car buffs. Both gadgets are compatible with iPhones 3, 4 and 5, iPad Touch, iPad 1 and 2 and Android devices. Alongside the launch of thumbsUp!, Scorpio’s previous gadget range, Travel Easy Elite has been rebranded under the new name Travel Easy. With a new point of entry pricing level, as well as a more contemporary look and feel, Travel Easy will now be targeted to travellers in search of everyday gadgets. Products are priced at £20 or lower and include a mini speaker, a handy adapter set that comes with an earphone splitter, earbuds and micro USB, a rechargeable USB shaver that lasts up to 10 times longer than regular battery shavers, and the Triple Wave Iron featuring three heaters and a maximum temperature of 200 degrees. These two product ranges provide more than just variety to consumers—they widen the scope of Scorpio’s product base and carve out a deeper niche for the company in the marketplace. As the saying goes, the sky’s the limit now. “With thumbsUp! and Travel Easy, Scorpio Worldwide continues to offer a portfolio of electronic and electrical gizmos and gadgets that are new, fresh, innovative and great value for money,” says Kennedy. “All are right on trend and are perfect for the inflight market.” 


Creating a city of

chocolate Valrhona’s quest for excellence sees it launch La Cité du Chocolat this month by



Valrhona has its in-house tasting juries conduct daily customer surveys to ensure that its products meet the refined tastes of chocolate lovers


eople can be very selective about what they eat. When it comes to chocolate they can be even more discriminating than they would be with other types of confectionery. Valrhona has catered to this gourmet market since it was founded by a pastry chef in 1922. The chocolatier from the Rhone Valley in France is committed to creating quality chocolate. The company opened three Écoles du Grand Chocolat to train pastry chefs throughout the world — one in Paris, one at its headquarters in Tain L’Hermitage and one in Tokyo. It is our commitment to quality that attracts duty free retailers and airlines, says Eric Carlier, Valrhona’s Global Travel Retail Manager. “The overall sales for Valrhona travel retail and duty free and doing very good. 2013 is a year of great and strong development. We are building strong business relationships with more and more operators that are looking for premium chocolate and high quality products.” Some of the business relationships that Valrhona has built this year include having retailers King Power and Heinemann list its products amongst their offerings. The company has also signed Asian clients such as China’s Hainan Duty Free, Malaysia’s Eraman Duty Free, Korea’s Shilla Duty Free, Nuance Watson Asia and Taiwan’s Everrich Duty Free and Tasa Meng Taipei. Carlier attributes the success to Valrhona’s consumers. “Gourmets are adventurous in their tastes and are always looking for rare taste experiences combining both pleasure and discovery, and that is why Valrhona has become an important actor in duty free and travel retail,” he says.


A cocoa bean grower as well as a chocolatier

Carlier said that Valrhona’s success has come from the company’s desire to create highquality gourmet chocolate. “Rare are the chocolate makers who go to the point of becoming planters so that they can better understand the cocoa and have full control over quality. Valrhona is one of them,” he said. “The rare varieties of cocoa beans allow Valrhona to create unique flavors and unforgettable aromatic profiles chosen by the world’s greatest gastronomy professionals as well as our gourmet consumers.” The company also has its in-house tasting juries conduct daily customer surveys to ensure that its products meet the refined tastes of chocolate lovers. The process has ensured that “Valrhona cultivates the passion for exceptional taste right from the source,” Carlier added. The company’s art of selecting the finest cocoa beans has allowed Valrhona to create a range of best selling chocolates such as its Grand Cru Tasting Box. The set is made up of 52 squares of four dark and milk Grands Crus chocolate. It includes Tanariva Milk 33%

Pure Origin Madagascar, Taïnori 64% Pure Origin Dominican Republic, Caraïbe 66% and Guanaja 70% chocolate. Carlier said a consumer favorite is its exclusive mini box of orangettes, whose ribbons of candied orange peel, coated with dark chocolate are “the most popular recipe for true chocolate lovers.” Another bestseller is the Equinoxe: a pure grand chocolate-coated delight. This gift box combines crunchy and crispy textures of almonds and hazelnuts, coated with Valrhona Grand Chocolate. The company also offers tin boxes of Pure Grands Crus, which is an attractive gift item for duty free customers. It features 18 squares of dark or milk chocolate (Abinao 85%, Guanaja 70% and Jivara Milk 40%). The company has also developed a chocolate gift box especially for its duty free customers. According to Carlier, Valrhona’s Sensory Journey is a travel pack made up of four 70-gram bars of dark chocolate with four different Grands Crus flavors. They include Manjari 64% Pure Origin Madagascar, Taïnori 64% Pure Origin Dominican Republic, Caraïbe 66% and Alpaco 66% Pure Origin Ecuador chocolate. Duty free customers will also receive an educational booklet that explains the key points of how to best taste the chocolate and illustrating one of Valrhona’s areas of expertise: flavor.

The next stage

The company launched its new line of chocolates in September and is showcasing them at this year’s TFWA World Exhibition in Cannes. The line features new recipes including new Grands Crus such as Bahibe Milk 46%, Pure Origin Dominican Republic and Araguani 72% Pure Origin Venezuela. Whether dark, milk, white or new Blond Dulcey, the custom-

ers can now explore Valrhona’s range of flavors with the company’s newly designed 70g bars. Valrhona will also be releasing its new White Chocolate Opalys 33% and Blond Chocolate Dulcey 33%, as well as its new tin box packaging. The new gift box contains 32 squares of eight different types of dark and milk chocolate, which Carlier said is “the best way for consumers to discover the complete collection of Valrhona Grands Crus.” The gift box will also be showcased during TFWA Cannes. The set includes Tanariva Milk 33% Pure Origin Madagascar chocolate, as well as Jivara Milk 40%, Manjari 64% Pure Origin Madagascar, Taïnori 64% Pure Origin Dominican Republic, Alpaco 66% Pure Origin Ecuador, Guanaja 70% and Abinao 85% chocolate. On October 24, the day after the end of the TFWA World Exhibition, the company will be going one step further to ensuring its goal of providing high-quality chocolate by opening La Cité du Chocolat, the company’s “backstage experience” into the world of chocolate. The 700-square-meter facility is a multi-sensory experience of the world of chocolate. It will be located at Valrhona’s historic factory in Tain L’Hermitage. The company plans to add a second 700-square meter floor to the facility in 2015-2016. “For the past five years, Valrhona has been developing the project to create a center for excellence: La Cité du Chocolat,” Carlier told Gulf-Africa Duty Free. “This unique place will reveal what is hidden behind Valrhona’s

Valrhona’s success has come from the company’s desire to create high-quality gourmet chocolate

famous chocolate squares. It will welcome both professionals and fine gourmets to discover, explore and take away the secrets of Valrhona.” The project came out of the company’s desire to give both its professional and gourmet customers the best experience when touring Valrhona’s factory. La Cité du Chocolat will lead visitors through the entire chocolate-making process, from the planting of the cocoa beans to the creation of Valrhona-branded products. La Cité du Chocolat is made up of a senses corner, where visitors can immerse themselves in chocolate by touching, smelling and tasting chocolate before they see it being made. This is followed by a visit to a cocoa plantation display, a recipe counter, the chocolate factory to see Valrhona products being made and the chef ’s laboratory where the company’s new products are created. Visitors will end their tour with an exhibition of chocolate artists and a trip to the chocolate workshop.  GULF-AFRICA DUTY FREE & TRAVEL RETAILING


Anthon Berg

Ahead of

the game

Anthon Berg stays ahead by focusing on implementing new developments and targeted strategies by MELISSA SILVA


nthon Berg has big plans for 2014. New developments including launches and state of the art activities for its Anthon Berg Generosity brand universe are already underway and the brand isn’t stopping there. “First of all, we are bringing new exciting products to the market,” says Tomas Bruun, Travel Retail Director. “We will be launching extensions to existing successful product lines, as well as brand new product category modules based on solid insight into consumer buying trends worldwide.” Bruun adds that Anthon Berg will be introducing state of the art brand activities never before seen in travel retail. “The new activities for 2014 are likewise customized experiences for the consumers, making the brand come to life and creating an added value to each purchase,” he says. Anthon Berg is continuously changing to stay ahead of the game. One change involves trimming its product portfolio in accordance with consumer buying trends based on the previous year. Having noticed its retail partners consolidating and focusing on the products and brands they carry to maximize profit, Anthon Berg followed suit and did the same. “This calls for a trimming of the product category modules, securing sharp and profitable offers for each purchase occasion,” says Bruun. “We meet this demand by tailoring the perfect planogram for each travel retail partner to make the products fly off the shelves. This way we are giving our retail partners the opportunity for the maximum profit from their space,” says Bruun.

the brand stand out amongst the rest in the category. “Style-wise, our brand color pink has tested very positive in all regions of travel retail,” says Bruun. “We stand out on shelves in bright pink,” he adds. Anthon Berg’s award-winning brand universe Generosity is another way it stands out. “The Generosity brand universe has endless possibilities of consumer involvement, a must for the postmodern traveler,” says Bruun. “The whole concept is built on strong consumer insight showing that unique and personalized experiences are key to driving sales.” A recent example of Anthon Berg’s Generosity brand universe is its Generous Chocolate Upgrader promotion, currently at Copenhagen Airport and Arlanda Stockholm. The promotion involves upgrading passengers’ seats with chocolate goodie bags. “Travelers stood in long lines and we upgraded more than 300 travelers on a daily basis, who all got engaged in the brand and the products.” Over 1,000 travelers competed for the grand prize—a pink suitcase filled with Anthon Berg products.

The bigger picture

Anthon Berg sees the confectionery category as more competitive than ever, a space game between the suppliers and a game of investment, marketing and communications to appease increasingly demanding

Standing out

In order to maintain interest, Anthon Berg has been focusing on elements that will help 70


Anthon Berg’s Generous Chocolate Upgrader promotion involves upgrading passengers’ seating with chocolate goodie bags, eye masks and other products

consumers. For Anthon Berg, the big game changer is that as a supplier it now has direct access to the consumer through channels other than in store. In addition, social media is playing a larger role in overall marketing strategies, and is being executed bilaterally to promotions with retailers. “This is absolutely the key to catching the attention of the 70% of travelers who have not decided on their purchase prior to their travel,” says Bruun. Currently, Anthon Berg’s strongest regions are the Americas and Asia—the latter has shown double-digit growth this year when compared to the same period in 2012. “We believe that this is partly due to travelers becoming more curious and not wanting to buy the products they can get domestically,” says Bruun. “We also see that executing our Generosity brand universe has a huge impact on sales,” he adds. Looking ahead, Anthon Berg plans to do what is has been doing for many years—continuously developing for the future, and not just for the next year’s portfolio. “Anthon Berg has been around for 130 years and we expect to be successful for the next 130 years as well,” says Bruun. “This simply means keeping ahead of the game.” 

Anthon Berg’s bright pink brand color has tested very positive in all regions, allowing the brand to stand out on shelves, seen here with its chocolate cocktails’ packaging

MacDuff International

Teeming with tradition MacDuff International showcases three new whisky variants at Cannes, each with its own compelling story by RYAN WHITE


ulf-Africa Duty Free recently sat down with John Scott, MacDuff International’s Export Sales Director, to discuss the company’s many new developments for Cannes this year. He tells us that new variants will be the order of the day as the company introduces new offerings from Grand Macnish, Islay Mist and Lauder’s Blended Scotch Whisky. The mood at the MacDuff International booth will be particularly jovial this year as the company celebrates the 150th anniversary of Grand Macnish Scotch whisky with a special edition. Grand Macnish has been in continuous production since its birth in 1863, making it one of the oldest blended scotches still on the market today. It was the brainchild of Glasgow merchant Robert McNish, who wanted to create a lighter, smoother type of scotch compared to the harsh whiskies of the day. The 150th Anniversary Edition maintains the traditional balance of the blend as well as the signature 6-pinch bottle, which has changed very little in 100 years. “We are very proud to be able to follow in the footsteps of Robert MacNish,” Scott told us. “In these days of supposedly old brands built around suspect marketing stories, we are dealing with the real deal, a much loved whisky that has been sold around the world in much the same style and presentation for a century and a half.”

Finding the perfect balance

MacDuff International has also announced the release of the latest addition to the historic Islay Mist range of Blended Scotch Whiskies. Islay Mist was originally created on the Scottish island of Islay in 1922 to celebrate the 21st birthday of Lord Margadale. It was thought that the local single malt Scotch, Laphroaig, might be too heavy for all the guests’ tastes so this unique blend of Laphroaig with Speyside malts and grain whisky was born. Islay Mist Peated Reserve has been specially created by second generation master blender Gilmour Burnett. Remaining faithful to the almost 100 years of tradition of Islay Mist, Peated Reserve maintains the brand’s world recognized, signature balance between Islay malt and softer mainland whiskies, but adds an extra smoky kick. The whisky is presented in a premium bottle previously only used for 72

Islay Mist 12 Year Old and Islay Mist 17 Year Old, featuring the 1,000-year-old Great Seal of Islay embossed on the neck.

The 150th Anniversary Edition of Grand Macnish maintains the traditional balance of the blend as well as the signature 6-pinch bottle

Islay Mist Peated Reserve maintains the brand’s world recognized, signature balance between Islay malt and softer mainland whiskies, but adds an extra smoky kick

All hail the Queen

At the stand this year, MacDuff International will also be showcasing the latest from the Lauder’s range of Blended Scotch Whiskies, Lauder’s Queen Mary. Indeed, Lauder’s has its own rich history steeped in tradition, having been created in 1834 at the Royal Lochnagar Vaults in Glasgow, making it one of the oldest blended scotch whiskies in existence. To create Lauder’s Queen Mary, a select number of aged malt and grain whiskies have been carefully chosen by Master Blender Gilmour Burnett to create a smooth but full-bodied blend with hints of sherry. Lauder’s Queen Mary celebrates Scotland and Glasgow’s proud engineering past. At the time when Archibald Lauder began selling his whiskies in 19th century Glasgow, the city was the engineering capital of the world. Iconic vessels such as the Queen Mary and Queen Elizabeth were among the estimated 25,000 vessels built on the river Clyde during its heyday. Many of these Clyde built ships helped make Scotch whisky the world’s favorite spirit by exporting around the world. “MacDuff International is quite unusual nowadays in that we work in much the same, traditional way that many of the old Glasgow blenders, such as Archibald Lauder, did 150 years ago, sourcing the best available malts and grain, and using the expertise of our master blender to create something unique,” Scott tells us. “Lauder’s Queen Mary is a true celebration of the art of blending.” Customers will be able to see and order the three new presentations at the TFWA exhibition at MacDuff ’s stand in Green Village L56. 


Also at the MacDuff stand this year will be the latest from the Lauder’s range of Blended Scotch Whiskies, Lauder’s Queen Mary

“MacDuff International is quite unusual nowadays in that we work in much the same, traditional way that many of the old Glasgow blenders did 150 years ago, sourcing the best available malts and grain, and using the expertise of our master blender to create something unique.” JOHN SCOTT, EXPORT SALES DIRECTOR, MACDUFF INTERNATIONAL

Diageo GTME

Sky high by



head of this year’s Cannes show, Diageo Global Travel revealed a limited edition range of Johnnie Walker Blue Label bottles engraved with designs inspired by the skylines of some of the world’s most famous cities, from New York to Hong Kong. The handcrafted range consists of seven city editions, each bearing an individually etched skyline design that has been filled with golden liquid blended by skilled craftsmen. The seven cities featured are Singapore, Hong Kong, Mumbai, San Francisco, Los Angeles, New York and Auckland. Accompanied by a bespoke sleeve, each bottle celebrates the unique craftsmanship of Johnnie Walker Blue Label, in which just 1 in 10,000 casks of the house’s rarest whiskies are handpicked by the master blender to create the exquisite blend. The bottles are individually numbered and available in limited quantity only in the cities that inspired them, reflecting the rarity and exclusivity of Johnnie Walker Blue Label. The seven city editions are available only at the airport stores of the DFS Group. “We know that travelers love to bring back unique mementos from their journeys which serve as a beautiful reminder of the experience,” says Steve White, Global Marketing Director of Diageo Global Travel and Middle East. “The Johnnie Walker Blue Label skyline range meets that need for our high-flying consumers. Tailoring a product to the

The seven cities featured on the Johnnie Walker Blue Label skyline range are Singapore, Hong Kong, Mumbai, San Francisco, Los Angeles, New York and Auckland



A number of famous city skylines get the blue treatment with the new limited edition Johnnie Walker Blue Label skyline range

“We know that travelers love to bring back unique mementos from their journeys which serve as a beautiful reminder of the experience. Tailoring a product to the local market is a mark of our commitment to offering innovation and differentiation to our travelers.” STEVE WHITE, GLOBAL MARKETING DIRECTOR, DIAGEO GLOBAL TRAVEL AND MIDDLE EAST

local market is a mark of our commitment to offering innovation and differentiation to our travelers.” “It is an honor to be the first travel retailer in the world selected to launch this special range,” added John Hoover, Senior Vice President of Global Merchandising - Spirits, Wine, Tobacco, Food and Gifts for DFS Group. “We are confident that these exceptional bottles, which capture the spirit and energy of some of the most iconic destinations where DFS is found, will delight world travelers.” The seven city editions of Johnnie Walker Blue Label will be available from September 2013 in DFS airport stores in Singapore Changi, Hong Kong International, Mumbai Chhatrapati Shivaji, San Francisco International, Los Angeles International, New York JFK and Auckland International Airports at a recommended retail price of US$399 (or local equivalent) for 1 liter. 

T H E DA L M O R E . C O M

Special Editions

A recipe for

For The Glenrothes Extraordinary Cask 1970, the shape of the instantly recognizable Glenrothes bottle has been enhanced further, using hand-blown lead crystal


As the gift-giving season approaches, spirits suppliers release special editions for travel retail that exude equal parts style and substance by RYAN WHITE


s a result of the Middle East’s geographical location between East and West, many Middle Eastern airports have proven to be major hubs exhibiting skyrocketing passenger numbers in recent years. As more and more people take to the skies—particularly affluent Middle Easterners and Asians, and even the up-and-coming middle classes from emerging markets—the importance of offering truly special finds in duty free has increased exponentially. Gulf-Africa Duty Free examines five special releases from some of the industry’s most engaging spirits suppliers to get a handle on what new and unique products will be trending in the Middle East as the gift-giving season fast approaches.

The second edition of the Jack Daniel’s Master Distiller’s Collection, honoring Jess Motlow


Something completely new

Berry Bros. & Rudd recently announced the launch of The Glenrothes Extraordinary Cask 1970, the latest in a line of rare whiskies from the distillery sure to pique the interest of connoisseurs in the Middle East. The offering is described as a beautifully balanced, elegant and well mannered single malt with peerless texture that perfectly expresses the hallmarks of quality and purity that set The Glenrothes apart. For this very special release, the shape of the instantly recognizable Glenrothes bottle has been enhanced further, using hand-blown lead crystal for the single cask decanter, but in a manner that is in keeping with the elegance of the whisky and the heritage of The Glenrothes. The essential shape has been retained but is now multifaceted—heavy crystal at the base elevates the bottle and frames the whisky within. A plaque made of polished brass is applied to just one front facet and engraved with the year of distillation and the bottle number to ensure the uniqueness and authenticity of each individual decanter. Of note for travelers in Dubai specifically, the home Berry Bros. & Rudd was recently reinterpreted in a window display in the luxurious Dubai Duty Free retail area located in the First Class lounge in Concourse A of Dubai International. The Glenrothes Extraordinary Cask 1970, along with a selection of Berry Bros. & Rudd’s Own Selection single cask whiskies, were put on display, with Dubai Duty Free noting the increasing importance that single malts are playing in sales in its Spirits shop. Brown-Forman Travel Retail is also no stranger to special editions. Indeed, the


popularity of Jack Daniel’s has spawned a number of rare and collectable incarnations over the years. At TFWA WE this year, the company will unveil the second edition of the Jack Daniel’s Master Distiller’s Collection. The new addition is the second in the collection, and is designed to honor Jack Daniel’s second Master Distiller Jess Motlow. As a means of capitalizing on travelers’ desire for exclusive products throughout the world, and particularly in the Middle East, the Master Distiller’s Collection is a travel retail exclusive. “The Master Distiller’s Collection bottle honoring Jess Motlow is a terrific addition to the Jack Daniel’s Travel Retail family, paying tribute to the invaluable role that Jess played in the quality, essence and appeal of Jack Daniel’s during his 30-year tenure,” explained Tim Young, Associate Vice President and Director of Marketing at Brown-Forman Travel Retail. Launched in March 2012, the Jack Daniel’s Master Distiller’s Collection was created to honor the seven master distillers who have crafted Old No.7 since the iconic whiskey’s 1866 inception in Lynchburg, TN. Each year a different Jack Daniel’s master distiller will be honored. The special-edition bottle will come in a distinctive gift box bearing the likeness of the master distiller being honored, and will be sequentially numbered on the back label with the chronological ranking of the designated individual being recognized prominently on the front label.

The Firebird Sleeve marks the first time across any market that there has been a special edition pack of the Russian Standard brand launched worldwide

Easy on the eyes

Russian Standard Original’s latest special edition bottle still holds the same pure vodka that has taken the channel by storm of late, but its new travel retail exclusive Firebird Sleeve will ensure maximum shelf standout in the competitive duty free vodka subcategory. The special edition celebrates the art of craftsmanship in Russia, depicting the magical “Zhar Ptitsa” firebird, famed in Russian folklore and tradition. This marks the first time across any market that there has been a special edition pack of the Russian Standard brand launched worldwide. Indeed, the innovation builds on the success of Russian Standard Gold in its new embossed bottle, which has now reached distribution to nearly 60% of international airports in Europe, Middle East and Africa, while Russian Standard Original is at 80%. Russian Standard is the third most distributed vodka brand across global travel retail according to Paxsmart data, and the brand’s growth in 2013 is at +13%, outperforming the category and key competitors. Russian Standard will be showcasing the new Firebird Sleeve at TFWA WE, and travelers worldwide can expect to be seeing the special edition in stores from December, just in time for the gifting season. Disaronno, the world famous Italian liqueur, also sees the value in special packaging, especially with holiday season fast approaching. The brand has linked with international designer Moschino for a limited edition bottle that will initially be launched through travel retail this month, with specialty concept stores and general retail following in November.

“We were interested in the idea of linking the iconic image of our bottle and brand to that of another, which is also recognizable all over the world, with a specially designed Christmas look,” says Stefano Battioni, General Manager of Illva Saronno. “Even though Disaronno is already known for Italian quality and style worldwide, we’re always trying to reinvent ourselves and stay fresh, which is why we decided to get involved in the world of fashion, in particular Moschino—another dynamic brand with an extensive Italian heritage.” Overprinted with a design repeating the famous Moschino red heart on a black background, the bottle will appear in key airports from October. “Travel retail was chosen as the initial launch distribution channel for the special edition as it is such a great platform to showcase the product,” continues Battioni. Dubai Duty Free has already listed the new Disaronno bottle, along with retailers in other parts of the world, including Heinemann, World Duty Free Group, Aldeasa, Hellenic Duty Free Shops in Greece, Dufry Italy and LS Travel Retail in Rome.

Purity meets rarity

As mentioned, rarity and exclusivity go a long way toward tempting travelers—and especially the affluent demographic passing through many of the Middle East’s airports— to purchase in duty free. Long the standard bearer in the ultra-premium spirits category, elit by Stolichnaya recently underscored its preeminence with the announcement of a new limited edition vodka perfect for the consumer looking for the ultimate in rarity—elit pristine water series: The New Zealand Edition. After traveling deep in to the heart of the Himalayas to source water for the first edition in this series, the master craftsmen at Stolichnaya set their sights on the jewel of New Zealand—the Blue Spring—for the second. Revered for its exceptional clarity and exquisite blue hues, the water that flows from the Blue Spring is naturally filtered over hundreds of years through the pumice of the towering Mamakau Ranges. This rarefied water is then combined with the most exceptional Russian Alpha Spirit at the historic Latvijas Balzams distillery in Latvia. This spirit is yielded from grains sourced alongside the all-natural Kershinskoye water reservoir. The blend, rich in character and flavor, is then filtered in the same utterly unique way as elit, with a freeze-filtration process at -18˚C. Stolichnaya commissioned Royale de Champagne, the 135-year-old French crystal studio renowned for its commitment to exacting standards and organic beauty, to handcraft a

Overprinted with a design repeating the famous Moschino red heart on a black background, the new Disaronno bottle will appear in key airports from October

one-of-a-kind bottle worthy of a vodka of this caliber. The crystal masterpiece is wrapped with a leather cuff emulating the New Zealand silver fern, galvanized in jewelry-grade Palladium. It is sealed with a weighty and visually striking Palladium closure. The case in which this handsome bottle is presented has been crafted by hand from ancient Kauri wood native to New Zealand. This rare wood, which has been perfectly preserved within New Zealand’s remote north, is the oldest workable wood in the world, and at 45,000 years old is one of nature’s finest works of art. Stolichnaya expects elit pristine water series: The New Zealand edition to be available for purchase in November, with only a very limited number of the 300 total bottles produced making their way to Middle Eastern travel retail. The New Zealand Edition is the second offering in the elit pristine water series, comprising only 300 bottles for global distribution GULF-AFRICA DUTY FREE & TRAVEL RETAILING



On the

up and up by



With revenue up in the first half, a clear focus on travel retail and a strong portfolio of recognized brands, Distell enters the final stretch of 2013 on a high note

Distell notes that its wine portfolio delivered solid value growth over the first half of the year

he Distell Group has announced that it succeeded in raising revenue 11.9% to R15.9 billion (US$1.65 billion) on a sales volume increase of 7.2% for the year to June 2013. This was despite exceptionally tough trading conditions, marked by a global slowdown in economic growth, contracted disposable income and reduced consumer spending in many of the regions where it markets its range of spirits, wines, ciders and RTDs. Headline earnings rose 12% to R1.1 billion (US$114.2 million), while operating profit

interest payable on the duty. The company acquired Burn Stewart Distillers Limited in April for £160 million (US$257.3 million). The strategic purchase of a range of Scotch whisky brands, several distilleries and stocks in maturation to service over 60 markets globally was made to strengthen its product portfolio, extend its global reach and advance its Southern African leadership of the spirits industry. Group Managing Director Jan Scannell said the results had been favorably impacted both by good sales and the weaker rand. “Steep increases in excise duties and market-

“We have a strong and diverse portfolio of appealing brands. We continue to enhance our route to market across a spectrum of markets and… are in a secure financial position to continue the pursuit of our strategic course.” JAN SCANNELL, MANAGING DIRECTOR, DISTELL GROUP

increased 26.6% to R1.8 billion (US$186.9 million). Normalized headline earnings and operating profit, excluding the impact of an additional excise duty provision of the previous year, as well as the interest provision and the full impact of the Burn Stewart Distillers Limited acquisition in the current year, increased by 14% and 8.3% respectively. Distell had provided R297.8 million (30.9 million) for additional excise duty on wine aperitifs stemming from tariff reclassifications the previous year. This year, a further R171.7 million (US$17.8 million) was allocated for 78

The strategic purchase of a range of Scotch whisky brands, several distilleries and stocks in maturation to service over 60 markets globally was made to strengthen Distell’s product portfolio

ing expenses were partially offset by foreign currency conversion gains. However, we also saw the benefits of improved efficiencies in the business and the normalization of certain raw material input costs.” He also noted that operating expenses had increased by 10.3%. Excluding the previous year’s provision for additional excise duty, operating expenses had risen 13.1%, compared to revenue growth of 11.9%. Consequently, net operating margin contracted to 11.2% from 12.1%.


Bringing brands to the forefront RTDs and ciders in particular had once again delivered excellent growth, not only domestically, but across a number of African markets. He added that new distribution partners for Savanna had been appointed in the UK, Amarula is the only South African brand to make it on to Impact Databank’s list of the world’s top 100 premium spirits brands; pictured is a 750 ml bottle of Amarula beside “Dinkie,” the recently released 200 ml mini bottle

enhancing its route to market. “We have also recently outsourced Savanna production offshore to Belgium to better service the UK, an important market for us.” The ongoing appetite for whiskies; the growth of Bisquit cognacs, acquired by Distell in 2009; and Amarula Cream’s continued good performance had all helped to offset the decline of the brandy segment. As a result, Distell’s global spirits business had been able to show reasonable value growth. The wine portfolio had also delivered solid value growth. Sales outside South Africa rose by 10.2% with revenue rising 23.1%. Sub-Saharan African markets, excluding South Africa, driven primarily by strong cider growth, had contributed 55.6% to foreign revenue. Scannell said the company was building a well-resourced business unit in Africa to further unlock opportunities on the continent. “We also continue to partner in joint ventures with local players in appropriate markets as far as possible to enhance our price-competitiveness, at the same time countering high import costs and government tariffs. To this end, we have made good progress in the key markets of Angola, Ghana and Kenya.” Domestic revenue increased by 8.6% and sales volumes by 6.1% with ciders recording the strongest increases. While volumes for wine sales were largely flat, good profit gains had been achieved, all the more noteworthy, he said, given the highly contested nature of the local market, characterized by aggressive discounting. The performance of the spirits portfolio had been hampered by the disappointing sales of brandy that had been most vulnerable to excise duty hikes, but Distell notes that investment in the category to reverse the decline was beginning to show encouraging results. “As the market leader, we continue our long-term commitment to revive the entire category. We are doing so by developing leading offers that are continually rewarded with accolades for excellence on international competitive platforms. We support the Brandy Fusion showcases in Johannesburg and Cape Town and we continue to access new consumers through celebrity endorsements and sports sponsorships.” At the super-premium level, brandy, cognac and whisky brands had grown by almost 50% in volume, helped by a growing awareness of quality credentials, as well as by successful consumer engagement initiatives and innovative gifting solutions, he confirmed. Scannell noted that challenging trading conditions were expected to persist. “There have been some tentative signs of economic recovery in the US, but the countries in the

Eurozone remain in recession. Emerging and developing countries, hit by the sluggish economies of their developed trading partners and lower commodity prices, are also growing at a slower rate than in the past. Domestically, high unemployment and limited disposable income continue to curtail consumer spending. “Nevertheless, we have a strong and diverse portfolio of appealing brands,” he added. “We continue to enhance our route to market across a spectrum of markets and, with a debt to debt plus equity ratio of 28.4% and a debt equity ratio of 39.7%, we are in a secure financial position to continue the pursuit of our strategic course.”

Focusing on travel retail To further drive sales in the all-important travel retail channel, Distell has strengthened its global duty free team with the appointment of one of its most senior executives to lead the division. From September 1, Marius Fouché, previously Distell’s Managing Director for the Asia Pacific region, began his role as head of Distell’s duty free business. The division has been performing exceptionally well, notes Distell, increasing sales volumes by double digits for the year to June 30 and outperforming the category. According to the most recently available figures released by global alcohol market researchers IWSR, global travel retail sales grew 4% between 2011 and 2012. Fouché’s appointment will allow present General Manager of Distell Duty Free Robyn Bradshaw to focus more on marketing and activation to sustain the division’s buoyant growth momentum. She succeeded in more than doubling sales volumes between her appointment in 2007 and June this year and in taking company flagship Amarula Cream to 36th spot in global travel retail. “We need additional expertise to unlock further potential in travel retail, particularly with the growth of Distell’s spirits portfolio and the growing profile of our drive wine brands, notably Nederburg,” explains Bradshaw. “Marius comes with extensive global experience.”

requested liqueur amongst the world’s top style bars by Drinks International. Additionally, locally, it was ranked amongst the top ten spirits brands in the Sunday Times Top Brands survey published last month. Distell says that what gave Amarula the edge in an intensely competitive global market was the unique flavor, derived from the tangy marula fruits harvested at the height of summer from trees indigenous to subSaharan Africa. Indeed, the brand, distributed to over 100 countries worldwide, is also distinctive for its immediate association with Africa and elephants, highlighted in much of Amarula’s marketing. The company notes that one of the most effective ways of building custom is through sampling, adding that the brand has an extremely high trial-to-conversion ratio given its versatility. The increasing affluence of Africa had fuelled good growth across the continent, Distell notes. Amarula was the category leader in both Angola and Kenya and continued to attract loyalists in many other countries, notably Nigeria, Mozambique, Zimbabwe and Zambia. Amarula has also become a highly desirable drink across Latin America, particularly Argentina and Chile, while maintaining its position as the indisputable market leader in Brazil. In Asia it continues to make great gains, as in Australia, reports Distell. Attendees at this year’s TFWA WE can visit Distell at Yellow Village E30 to learn more about the company’s efforts in travel retail and its award-winning portfolio of brands.  New distribution partners for Savanna Dry Premium Cider have been appointed in the UK, enhancing its route to market; Distell also recently outsourced Savanna production off-shore to Belgium to better service the UK

Amarula cracks Impact’s top 100

Evidence of Amarula’s strong performance is the fact that the brand is the only South African brand to make it on to the list of the world’s top 100 premium spirits brands in terms of volumes sold, according to Impact Databank. The list features brands that sell in excess of a million 9-liter cases annually. At the beginning of 2013, Amarula was identified as the seventh most frequently GULF-AFRICA DUTY FREE & TRAVEL RETAILING


Gruppo Campari

Campari will be presenting its unique 100% agave tequila Espolon, both in Blanco and Reposado (pictured) formats at this year’s exhibition


a buzz


A number of offerings from Wild Turkey (pictured is Wild Turkey Spiced) will also be on hand at Campari’s booth at TFWA WE


Gruppo Campari prepares to wow attendees at this year’s TFWA WE with numerous new showcases across a variety of exciting spirits brands


ulf-Africa Duty Free recently sat down with Andrew Holmes, Global Travel Retail Director at Campari International, to discover what the company will be bringing to Cannes this year. He tells us that the recent acquisition of J. Wray & Nephew (makers of Appleton Estate Jamaica Rum), combined with Campari’s existing portfolio of award-winning spirits, should make for a very exciting showcase at the company’s booth. “At Cannes this year, the newly acquired Appleton Estate Jamaica Rum portfolio— including the very limited edition 50 year old—will be showcased, which will be a first for both Appleton Estate and Gruppo Campari,” explains Holmes. “We are very excited with this strategic development which we believe will generate some real interest given Appleton’s uniqueness and respect from the trade as being one of the oldest, original and highest quality rums in the world today.” In addition, Campari will be presenting its unique 100% agave tequila Espolon, both in Blanco and Reposado formats at this year’s exhibition. Created by Master Distiller Cirilo Oropeza and named for the “spur” of the rooster, Espolon’s production process is unique. The company cooks its piñas (the heart of the agave plant) for 18 to 20 hours and employs a distillation process longer than most other tequilas. Furthermore, Espolon’s bottle and label stand out on-shelf with artwork in traditional 19th century Mexican style, making it a natural choice for travel retail. From its bourbon stable, Campari will be showcasing its small batch, super premium Russell’s Reserve in both 6 and 10 year old formats. Russell’s Reserve was created by Wild Turkey’s legendary master distiller Jimmy Russell, and his son, Associate Distiller Eddie Russell. It uniquely reflects the expertise that comes with their over 85 years of combined experience. Russell’s Reserve Bourbon is a beautiful deep amber color with a nose rich in vanilla, oak and toffee. Its mellow warmth is balanced by notes of white pepper and


orange peel. A testament to its quality, Russell’s Reserve Bourbon was awarded a Gold Medal at the San Francisco World Spirits Competition. Holmes also notes that Campari will also be launching Wild Turkey Spiced Bourbon. With this particular variant’s launch, he says, Campari is targeting North America and Australasia. Finally, on the packaging front, the company will be presenting a new, stylized gift pack for its famous Campari Bitters. Of note for operators is the fact that the pack will be a travel retail exclusive.

Focusing on duty free

Campari’s Global Travel Retail division is now being managed out of Campari International SRL’s offices in Milan, and with the change has come a number of new appointments. In fact, Holmes himself has recently taken over as Global Travel Retail Director from Matthijs Kramer, who is now Managing Director for Campari Switzerland. In addition to the above, Holmes explains that a number of new regional appointments have been made: “Lorenzo Gamba now heads up Southern Europe, Middle East and Africa, and Mariya Minkova has been appointed Regional Manager for North and Western Europe with Marie-Gladys Descamps now taking on the role of Regional Manager for Central & Eastern Europe. Two Trade Marketing positions have also been created, with Celine Lacroix assuming the role for the Aperitifs brands and Gabrielle Salzgeber for our Spirits brands.”

Going forward

Holmes tells us that the fantastic success of Aperol in Europe has led Campari to develop a new promotion that will take the place of the popular “Aperol Beach” program that has run in Europe over the last two years. Campari will be


presenting the new promotion to operators in Cannes. “With the launch of Appleton Estate Jamaica Rum, we will also be presenting how we plan to bring the brand to life in global travel retail through a unique concept that aims to focus on the upscale end of Jamaican lifestyle and our cask aged rums,” he added. “We invite retailers to visit Campari at Bay Village 25 to see all the new developments for themselves during this year’s TFWA WE.”  Appleton Estate Jamaica Rum 50 YO, a very limited edition rum now in Campari’s portfolio thanks to last year’s J. Wray & Nephew acquisition

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Russian Standard


abounds With the acquisition of CEDC, Russian Standard Corporation adds more than a dozen authentic brands to its portfolio to compliment the tremendous success of Russian Standard Original, Gold and Platinum



Russian Standard Gold (pictured) has seen tremendous success in travel retail to date, as has Russian Standard Original and Platinum


n the highly competitive vodka subcategory, certainly some of the bigger news over the first half of the year was Russian Standard Corporation’s acquisition of Central European Distribution Corporation (CEDC). The development adds more than a dozen brands to Russian Standard Corporation’s portfolio and effectively vaults the company to the position of second-largest vodka producer by volume in the world. The bartender and mixologist community The consolidated company has significant scale and breadth on a · has long taken note of Zubrówka, the original global basis, with over 34 million 9L cases of products sold annually. bison grass-flavored vodka with 600 years of heritage, as a complex and versatile spirit Russian Standard is also now one of the world’s leading integrated spirits beverage and sparkling wine businesses with distilleries, probartender and mixologist community duction facilities and distribution centers spanning Russia, Poland, has long taken note of Żubrówka, the Hungary and Italy. original bison grass flavored vodka with Green Mark, one of the major vodka brands now under the Russian 600 years of heritage, as a complex and Standard Corporation umbrella as a result of the acquisition, sold 6.9 versatile spirit for endless, exciting cockmillion 9L cases in 2012, and Russian Standard Global Travel Retail tail creations. The brand, present in over Marketing Director Andrew Notcutt tells us that the brand represents 50 countries, is among the best-selling a major opportunity as it is a leader in Russia’s competitive mainstream imported brands in France and Japan. segment and the number four vodka in the world by sales volume. In the US market, Green Mark and Already launched internationally in the United Kingdom, Germany and Żubrówka will benefit from Russian across central and Eastern Europe, Green Mark has now been launched Standard Vodka’s extensive network of in the US and will compete within the mid-premium segment, which distributors and partners, as well as the is projected to be the fastest-growing and largest vodka category in company’s unique expertise in growing 2013, following growth of over 12% in 2012. Russian vodka brands globally. Since “This is a major development for Russian Standard Corporation in launching in the United States in 2005, becoming the world’s second-largest vodka company,” says Notcutt. “We Russian Standard has invested signifihave the most authentic vodka portfolio of hero vodkas from Poland and Russia, all with their own unique selling points.” “This is a major development for Also as a result of the acquisition, Żubrówka, the legendRussian Standard Corporation in ary Polish vodka brand, has becoming the world’s second-largest transitioned its US distribution to Russian Standard. vodka company. We have the most Żubrówka, which is marketed authentic vodka portfolio of hero as ZU in the United States, will compete in the premium vodkas from Poland and Russia, all flavored vodka segment. With with their own unique selling points.” an on-premise marketing focus and strong off-premise distriANDREW NOTCUTT, GLOBAL TRAVEL RETAIL bution, Żubrówka is priced MARKETING DIRECTOR, RUSSIAN STANDARD at US$24.99 (750ml). The



cantly in sales and marketing infrastructure. For seven consecutive years the brand’s US growth has been recognized by the authoritative spirits journal IMPACT, most recently winning the publication’s coveted “Hot Brand” moniker.

Parliament is a premium Moscow vodka made using milk purification

Kauffman is known as the world’s most luxurious vodka brand

Travel retail potential

“We now have a full portfolio of brands in travel retail, enabling us to offer key category solutions for retailers: the premium brand Żubrówka, made from aromatic grass from the bison region of Poland, delivers a great taste with apple juice and is actually already established in travel retail and domestic markets; Green Mark, Russia’s number one vodka, which is priced under Russian Standard Vodka; Parliament, the premium Moscow vodka made using a unique milk purification process; and Kauffman, the world’s most luxurious vodka brand, available in vintage and non-vintage expressions,” explains Notcutt. One of the many advantages of the acquisition, says Notcutt, is the increased category solutions that Russian Standard can provide to travel retailers: “All the brands are a perfect complement to Russian Standard Vodka, Russia’s number one premium vodka and a brand that has enjoyed brilliant performance in travel retail. It is the number four premium vodka brand in global travel retail, particularly driven by new distribution of Russian Standard Platinum and Russian Standard Gold in its new attractive embossed bottle, both of which are experiencing exponential growth,” continued Notcutt. The Russian Standard Vodka portfolio dominates the premium segment in Russia with a 40% market share and sales of over 2.9 million cases in 2012 globally. Roustam Tariko, the founder of Russian Standard, introduced the flagship product, Russian Standard, in 1998 as the first authentic Russian premium vodka. Russian Standard vodkas are made with only the finest Russian ingredients—soft winter wheat from the Russian Steppes and pure glacial water from nearby Lake Lagoda—using the principles for vodka established in 1894 by famed Russian scientist Dmitri Mendeleev for Tsar Nicholas II. Two years after launch, sales of Russian Standard surpassed all imported premium vodkas on the Russian market, leading to broad international expansion and the launch of Russian Standard Platinum in 2001; IMPERIA Vodka, the company’s luxury brand, in 2004; and Russian Standard Gold in 2008. 

Green Mark sold 6.9 million 9L cases in 2012 and the brand represents a major opportunity for Russian Standard GULF-AFRICA DUTY FREE & TRAVEL RETAILING


Liquor News

Freixenet makes inroads in Middle Eastern duty free with varied portfolio of quality wines Philippe Jamme, Global Duty Free & Travel Retail Manager at Feixenet, tells Gulf-Africa Duty Free that the company is looking forward to showcasing its extended product portfolio of cava and still wines at this year’s TFWA WE in Cannes. “Freixenet is known for its cava wines but not always for the fact that the Freixenet Group owns 20 wineries across the world and can offer wines from five different countries—Spain, France, Australia, Argentina and the US,” Jamme explains. “These wines offer a good choice to duty free operators who wish to expand their wine portfolio.” Indeed, proof of the wines’ suitability for travel retail is the fact that Freixenet has recently secured a variety of duty free listings in the Middle East at Dubai Duty Free; Bahrain Duty Free; Muscat Duty Free and Qatar Duty Free. Selected Freixenet wines were also recently listed in Scandinavia and aboard Princess Cruises. “Our aim is to offer to travelers the opportunity to buy our collection of still wines from both the northern and southern hemispheres—from everyday blends to single varietals and premium lines, as well as a fine range of sparkling wines,” explains Jamme. “The opportunity for us is to make duty free operators and travelers aware of the diversity and quality of products that the Freixenet Group can offer. Of particular note for Middle Eastern operators, at this year’s TFWA WE at Blue Village H17, we will showcase a Halal sparkling wine that has started to gain attention in travel retail.”

Freixenet is known for its cava wines, but the company owns 20 wineries across the world and can offer wines from five different countries—Spain, France, Australia, Argentina and the US

Jamme does note that in a spirits-dominated category, getting operators to take note of wines can sometimes be a challenge, although many are now getting wise to the benefits of having a well-rounded wine portfolio in their stores. To help matters along, Jamme says that Feixenet recently ran a summer promotion in Scandinavian duty free offering travelers the chance to win a bottle signed by football players Lionel Messi, Andrés Iniesta and Xavier Hernández from FC Barcelona. He tells us that more promotions are currently being developed as a means of continuing to raise the profile of Feixenet’s wine portfolio in duty free.

Distilleria Bottega brings a taste of Italy to Cannes Distilleria Bottega will attend this year’s TFWA WE with a number of new products that were positively received during May’s TFWA AP exhibition in Singapore. Those making the trip to Cannes for the biggest travel retail show in the world will find Bottega Rose Gold, Il Vino dei Poeti Bolgheri Rosso DOC and Amarone Prêt-à-Porter at Bottega’s stand, in addition to other tried and true favorites in the company’s portfolio. Bottega Rose Gold is a new sparkling wine that completes the glamorous Bottega wine collection and follows the worldwide success of Bottega Gold. The packaging of the bottle is characterized by its charming pink color, while inside is a Pinot Noir sparkling wine, produced with a selection of grapes harvested in Oltrepò Pavese. Il Vino dei Poeti Bolgheri Rosso DOC is a red wine produced in the Castagneto Carducci area of Tuscany, a region


is well known for its red wines. Il Vino dei Poeti Bolgheri Rosso DOC is described as winy, balanced, saline and structured, characterized by small red fruit, plum and balsamic notes, with hints of minerals and spice. Amarone Prêt-à-Porter is aged for a period of four years, and Distilleria Bottega describes it as a “very elegant, full-bodied and long-lasting wine.” The renowned American designer Denise Focil has partnered with Bottega to create a bottle that features a white leather label nestled in a bespoke white leather case embellished with debossed black lettering. Attendees at this year’s TFWA WE can get their own firsthand experience of Italy by visiting Distilleria Bottega at Blue Village A11.


Bottega Rose Gold is one of the many Italian wine products that attendees at this year’s TFWA WE will find at Distilleria Bottega’s booth


Plume Frapin Exceptional Cognac in a limited series of 500 numbered decanters The very quintessence of the savoir-faire of the Cellar Masters who built the Frapin name, Plume frapin is a prestige Cognac. In homage to Franรงois Rabelais, son of Antoine Rabelais ans Anne-Catherine Frapin, the Cognachouse took the image of the quill. This Premier Cru Cognac 100 % Grande Champagne has been produced uniquely on the 240 hectares vineyard around Chateau Fontpinot, distilled and aged on this Frapin single estate. The terroir, the art of blending, patience and respect for nature make Plume Frapin an exceptional Cognac.

BP 1, F-16130 SEGONZAC

Liquor News

Savary Argentina secures new wine listings, expands beyond the category to confectionery Savary Argentina represents major wineries from Argentina, Chile, the US, South Africa, Australia, France, Spain and Portugal, with a focus on developing travel retail exclusive products—including individual offerings and multi-packs—aimed at discerning wine consumers. The company recently began working with Dubai Duty Free, launching a selection of wines with the retailer this past summer. “This is a very important listing for us as Dubai Duty Free is a very well respected retailer,” says Savary’s Commercial team. “Furthermore, we’re very pleased to be breaking into the Middle Eastern travel retail market and feel that our high-end wine brands will offer something new and exciting to travelers through Dubai Airport.” Savary is also working in Argentina, Uruguay, the US, the Caribbean and Brazil. In fact, the company’s most recent travel retail exclusive pack was just launched with Dufry in Brazil, featuring wines from Cantena Zapata, including El Enemigo Malbec, DV Catena Cabernet Sauvignon, Angelica Zapata Malbec and Saint Felicien Tributo Bicentenario. Also at Dufry stores in Brazil, Savary has moved into the world of confectionery, having launched Argentina’s well known Havanna brand, which includes South American confectionery favorites such as alfajor and dulce de leche. Shoppers at Dufry stores in Brazil can now find their favorite Havanna sweets—including dark chocolate alfajor, white chocolate alfajor, cookies with lime mousse filling and chocolate-covered orange-flavored cookies—in a mini presentation perfect for travelers. In addition to its work in South America, Savary tells us that the recent listing at Dubai Duty Free represents a big opportunity to grow the business in the Middle East: “We’re dedicated to developing further in the region,” notes the Commercial Team. “There is a lot of potential there, both with regard to the wine and confectionery categories, and fortunately we’re working with some very high-end brands that will appeal to Middle Eastern tastes. We’re looking forward to seizing more opportunities across regions as they arise.”



The new Beehive French Brandy packaging is modern and elegant as a means of asserting a more up-market positioning

Beehive French Brandy announces new up-market packaging Beehive French Brandy has announced that it will unveil a new premium packaging with rounded edges and soft lines at this year’s TFWA WE in Cannes. Of course, the famous bottle—with its unique shape inspired by honeycombs, as well as the distinctive Beehive name—is still part of this new identity, but Bardinet notes that the packaging is more modern and elegant as a means of asserting a more up-market positioning. Bardinet also notes that to accompany the new packaging, a new advertising campaign has been developed. The tagline “BEEyond unique” will highlight Beehive’s individuality in the French Brandy segment. Attendees at this year’s TFWA WE can visit Bardinet at Yellow Village G54 to learn more about Beehive, as well as the rest of its award-winning portfolio of spirits.

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Liquor News

Armagnac Janneau exhibits for the first time at TFWA WE After exhibiting at the TFWA AP exhibition in Singapore, Janneau has announced that it will be exhibiting for the first time at TFWA WE in Cannes at Green Village K62. Janneau is the first export brand for Armagnac, and already the leading Armagnac brand in travel retail in Western and Eastern Europe, as well as in Russia. Janneau is a truly international brand, focusing exclusively on a premium positioning in Armagnac with VSOP, XO Royal and older expressions, including Vintages. Indeed, Janneau is the most awarded Armagnac at the world’s major tasting competitions with over 80 medals won in the last 10 years. “Janneau has always kept innovating in the Armagnac category and will continue to do so in the future,” says a spokesperson for the company. Indeed, Janneau reintroduced the pot still distillation method to the region of Armagnac and a few years ago launched a unique Single Distillery range. Last year it presented a new Vintage strategy—the company has extensive Vintage stocks—that included the Dragon Vintages, a new special edition range, which proved to be a great success. In the duty free sector, Janneau is focusing on its XO and Vintage offerings. Recent listings at London Heathrow via World Duty Free, At Seoul Incheon via Lotte, at Dubai International Airport with Dubai Duty Free and at Doha International Airport with Qatar Duty Free clearly indicate Janneau’s focus on the channel and commitment to producing offerings sought after by world travelers.

Janneau is the most awarded Armagnac at the world’s major tasting competitions with over 80 medals won in the last 10 years

The Macallan M debuts at Dubai Duty Free Edrington FIX Middle East recently announced the launch of The Macallan M at Dubai Duty Free. The Macallan M is the result of a collaboration between three masters of their crafts—Fabien Baron, Lalique and The Macallan—who all share the unique objective of creating the most sophisticated whisky in the world contained in an exclusively designed crystal decanter. M’s six angular facets pay homage to The Macallan’s Six Pillars and are reflected in the decanter’s shape. Edrington FIX Middle East notes that the luxurious offering is perfect for Dubai Duty Free’s discerning shoppers, with only a very limited number of decanters available every year. In addition to the few decanters on sale at Dubai Duty Free, four very special 6-liter M decanters were produced as one-offs. Dubai Duty Free displayed one of them for two weeks in September. The unique decanter, signed by the three masters, will be auctioned in Hong Kong in early 2014 at Sotheby’s with the proceeds donated to a Hong Kong charity. 88

In related news, Edrington FIX Middle East has announced the appointment of Nick Rees as Head of Sales and Marketing, a newly created role based in Dubai. His main responsibility will be to drive the company’s sales and marketing strategy in close partnership with the team and our brand partners. Nick will lead an agile and professional sales and marketing team, providing expertise and guidance with the aim to grow the equity and value of the company’s brands in the region. “Nick brings a wealth of knowledge and experience acquired over the last 10 years in the drinks industry in the Gulf region which will no doubt help him understand swiftly our business dynamics. He will also bring us a lot of valuable insights when it comes to understanding better our own customers’ expectations. I’m delighted to welcome Nick on board as I’m confident he’ll blend in nicely with the great team we have in place and will contribute to our future successes,” said Igor Boyadjian, Edrington FIX Middle East Managing Director.


The Macallan M is the result of a collaboration between three masters of their crafts—Fabien Baron, Lalique and The Macallan—and is now available at Dubai Duty Free






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World of Patria is a specialist Travel Retail and Duty Free Distributor. We search the world to bring travellers extraordinary products to discover. Each innovative brand has its own unique personality and all embrace values of quality and exclusivity.

Visit us at TFWA World Exhibition, Stand G13, Blue Village +44 (0)1892 890202

It’s all in the mix

Japan Tobacco International



Japan Tobacco International commits itself to worldwide travel retail, working with operators and airports to drive tobacco and cross-category purchases


JTI’s bespoke Tobacco Category Solutions are helping to drive tobacco sales in travel retail as well as cross-category purchases

he challenges facing tobacco sales in the global travel retail market are many and varied. They range from complying with different domestic regulatory regimes to protecting duty free sales within all travel retail channels. In 2011, global sales across all duty free categories totaled US$46 billion, of which 7% (US$3.2 billion) was accounted for by tobacco products. Airports generate the biggest share of global duty free tobacco sales, accounting for 70%. Other travel retail outlet types include in-flight, downtown duty and tax free stores, border crossings (road and rail), ships and ferries, seaports, duty free zones and diplomatic and military stores. Japan Tobacco International Worldwide Duty Free (JTI WWDF) operates in all duty free sales channels across 159 territories, as well as in four domestic markets (Afghanistan,

most sought-after in the world. They are a sophisticated, confident, brand-conscious and demanding shopper, seeking premium brands and products. “Selling tobacco in duty free has never been more challenging than it is today. As a responsible tobacco manufacturer, committed to full compliance with all regulatory requirements, we must operate within a wide range of differing travel retail regulatory scenarios,” says JTI WWDF. “In addition, we must also ensure that our operations are in harmony with local, domestic and national regulations. Our Corporate Affairs and Communications team monitors, assesses and ensures effective responses to all these challenges with tailored strategies and solutions.” In some airports with display restrictions JTI WWDF has created dedicated Tobacco Display Areas (TDA’s) that are only visible

JTI WWDF’s messages spell out the importance of tobacco as the single most effective footfall driver in airport stores and the single most effective generator of additional basket sales. The company also makes a concerted effort to highlight the benefits to airports of its smoking lounges and the Tobacco Display Areas approach to making tobacco visible and available to interested adult smokers only.

Challenging but rewarding

“The single most challenging aspect is keeping on top of the worldwide duty free business in 150 different countries,” says Gladys Rodriguez, JTI’s CA&C WWDF Director. “Duty free business operations vary significantly between countries. In some it is predominantly downtown stores, in others it’s about airports and yet for others it can be cross-border stores, road or rail outlets, ferries and cruise liners which can also cross borders. “We spend a considerable amount of time Furthermore, these channels liaising with domestic legal, trade marketing can be in national or international water, so that adds another and corporate affairs departments to make complication. sure we are 100% aligned. We cannot afford “Sometimes we operate to make a single mistake as the consequences through wholesalers and distribare potentially very damaging to the category utors, sometimes directly with the retailer,” she adds. “Regulaas a whole.” tions in each of these scenarios GLADYS RODRIGUEZ, CA&C WWDF DIRECTOR, JAPAN TOBACCO INTERNATIONAL are different and always subject to change. On top of that, it is our responsibility to be equally Northern Cyprus, The Maldives, Micronesia upon entry and are restricted to adult cus- familiar with the domestic regulations in each and Laos). This global coverage means that tomers. The company has also developed of these countries because, in many cases, they the company is present in over 2,600 outlets, its category solutions strategy, wherein it also apply to the worldwide duty free environtrading with almost 500 wholesalers or travel partners with airport retailers to guide their ment. We spend a considerable amount of time merchandising decisions with the objective of liaising with domestic legal, trade marketing retail operators. and corporate affairs departments in all the 150 It is generally accepted that around 80% increasing cross category sales. Sales of duty free tobacco products are sub- countries to make sure we are 100% aligned. of tobacco purchases in duty free are preplanned and that 90% of purchasers buy only ject to a sustained and vigorous campaign by We cannot afford to make a single mistake as one brand. There is no other product category the WHO (World Health Organization) which, the consequences are potentially very damagin duty free that enjoy this level of purchase under the terms of the FCTC (Framework ing to the category as a whole. We ensure that commitment. Airport retail customers, 20% Convention on Tobacco Control), is trying tobacco category is 100% compliant as well as 100% commercially effective.”  of which are adult smokers, are amongst the to impose a ban on duty free tobacco sales.





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Despite sociopolitical problems taking their toll on Ray Tobacco’s business in the MENA region, Asia represents significant opportunity.


British American Tobacco International to continue innovating with new products at TFWA WE 2013 British American Tobacco International (BATI) has announced that its space at this year’s TFWA exhibition will focus on bringing brands to life through a set of dedicated areas, revealing the nature of each of the brands in the company’s particularly strong portfolio. The objective, says BATI, is to give guests a glimpse of how this approach can be brought to life in the airport environment. This year, the Showcase—a regular feature of BATI’s Cannes experience—will take customers on a journey that demonstrates BATI’s ongoing commitment to the channel and approach dedicated to innovation and growth. Additionally, key product highlights to look out for at the BATI stand this year include Lucky Strike Patterson, a packaging redesign that includes a contemporary take on the iconic logo; a new Vogue exclusive offer perfect for those adult travelers looking for

gifting solutions or a souvenir; and the latest filter innovation from BATI pioneered by Kent. “In a channel as important and as premium as travel retail, we are constantly reinventing retailing with the aim of creating category excitement, not only for our own business, but for the benefit of our business partners, many of whom we are looking forward to meeting at Cannes this year,” says recently appointed General Manager of BATI Christian Löwe.

Lucky Strike Patterson, one of British American Tobacco International’s new innovations for Cannes

Imperial Tobacco brings a fresh Gauloises taste to Cannes To capitalize on the current crushball filter technology trend, which allows smokers to determine the strength of the menthol flavor in their cigarette, Imperial Tobacco has introduced a new travel retail offer for the key strategic brand Gauloises Blondes: Duo. Gauloises Duo is targeted at the open minded, freedom loving traveler who looks for individuality, independence and inspiration. Gauloises Duo incorporates an innovative freshness capsule hidden in the filter which can add additional flavor on demand. Consumers simply press the filter to crack the capsule, releasing a burst of flavor into the filter, instantly creating a “fresher” cigarette. Gauloises Duo will be launched to global duty free markets in the GCC (UAE, Qatar and Bahrain), Lebanon, Jordan, Greece, Turkey, Israel, Hong Kong and Singapore with availability from March 2014. Says Christian Drews, Imperial Tobacco Brand Manager Gauloises & Portfolio Brands: “Gauloises Blondes is one of our leading brands within the travel retail sector. This new Duo offer takes advantage of one of the main growth opportunities within the marketplace and perfectly aligns with our target group—travelers who like freedom of choice and generally have joie de vivre.” 92


Ray Tobacco sees success with Walton Whisky in the Gulf, focuses on securing listings in Asia Ray Tobacco tells Gulf-Africa Duty Free that it is working on new listings in the Gulf region, but Export Director Chris Pfister notes that operators seem to have adopted a strategy of focusing on the biggest brands to the detriment of others in the market. The result is a reduction in the overall number of brands displayed, and a takeover by the big names of more and more of the available shelf space. While this reduction of exposure represents a serious hurdle, Ray does benefit from a broad product footprint that provides some compensation: Pfister says that Ray’s Walton Whisky brand is selling well in the Gulf-Africa markets. In addition to this reduction in customer exposure, the political turmoil in many countries in the Middle East has taken a toll, Pfister says. He notes in particular the example of Egypt. “We’ve had good promotions in Egypt,” he says, “but since the new political turnover, the business obviously is down, since tourist visitors have been reduced dramatically lately.” The circumstances in Egypt are reflected more broadly throughout many parts of the Middle East, Pfister adds, where sales generally have declined. For the moment, Pfister notes that Asia is looking like a better option for the company and he’s actively searching out listings for the tobacco and spirits brands in Ray’s portfolio throughout the region. Gauloises Duo incorporates an innovative freshness capsule hidden in the filter which can add additional flavor on demand.


knowledge CLIENT understanding MEDIA

Essential Communications is an independent Public Relations agency specialising in the travel retail and duty free industry. Established for over ten years, our goal is to raise the profile of the companies we represent in the international and regional media. At Essential Communications, the client always come first and we will bend over backwards to put together a proposal that meets your needs...and your budget. Flexibility is the name of our game, so if you’re looking for a simple, straightforward press release program or an all singing, all dancing media campaign, we’ll give you a nononsense solution to your needs. And..we do it with a smile.

“I have worked with Essential Communications since it was first established in 1996. The company has always been the mainstay of a proven successful marketing strategy for the various companies I have been involved with. In working with Morgan & Oates for the last four years, EC has helped us to develop and establish a solid brand image within the Travel Retail sectors. Excellent editorial coverage, assistance with activities at exhibitions, and full assistance with Web site developments has ensured that Morgan & Oates is well respected in the Travel Retail arena. I would not hesitate to recommend their services.” Jeannie Archer, Managing Director, JA Associates Ltd

“Scorpio Distributors appointed Essential Communications in 2006 as part of an upgraded marketing strategy. They provide us with a friendly, efficient, pro-active service and, certainly for Scorpio, represent excellent value for money.” Stuart McGuire, Group Managing Director, Scorpio Distributors Ltd ‘Essential Communications has proved to be a vital part of the success and growth of Counter intelligence Retail in the channel. Always quick to respond to our needs, the reach the company has provided us has ensured we’ve always had the right amount of exposure and the most appropriate coverage at the right time’.

“I don’t know why everyone doesn’t use Row at Essential Communications. Fast, efficient, and makes sure that everything is done in the right way, is in front of the right people and in time for publication. Row has become a vital tool in our communication strategy and we are delighted to be working with her.” Ian Taylor, Global Marketing Manager, William Grant & Sons

Garry Stasiulevicuis, Managing Director, Counter Intelligence Retail

Rowena Holland Essential Communications 110 Falconwood Road Croydon Surrey, CR0 9BD, UK

Tel: 44 (0) 208 405 8109 Fax: 44 (0) 208 405 0330 Mob: 44 (0) 771 021 9784 Email:

New & Notable LIQUOR City Editions Company: Jameson Description: Jameson is appealing to the international jet setter with the release of a new special collection called City Editions, which will retail exclusively in travel retail outlets. The labels have been designed to capture the urban culture and essence of eight great cities around the world, featuring Amsterdam, Bangkok, Dublin, London, Moscow, Paris, Singapore and Sydney. Each label is finished with postage stamp edges


Drambuie 15 Company: The Drambuie Liqueur Co. Ltd Description: Drambuie will bring ‘A Taste of the Extraordinary’ to this year’s TWFA World Exhibition. Showcasing a number of products including Drambuie Original and Drambuie 15 Year Old, the exhibition will also see an exclusive glimpse of its upcoming duo pack, comprising of a bottle of Drambuie, Drambuie 15 and two glass tumblers Booth: Green Village L64

Blue Square Travel Company: Piquadro Description: The Blue Square Travel collection features the cabin trolley in the Blue Square line with the iconic blue piping. The fine Italian leather, with an aged look, offers an unusual contrast to the chrome details and hi-tech functionality of the trolley. The construction is soft and the two retractable handles also allow it to be carried like a travelling bag Booth: Green Village L 40 The Cybill Bag Company: Aigner Description: The Cybill Bag combines traditional, Italian craftsmanship with the requirements of a modern business handbag. The model stands out thanks to sophisticated design and timeless valency, and is suitable for a business woman’s entire schedule Booth: Yellow Village H 35

FRAGRANCES AND COSMETICS: Halloween Fleur Company: Perfumes y Diseno Description: Halloween Fleur was developed by perfumers Carlos Benaïm, Nicolas Beaulieu and Olivier Polge. The notes feature mandarin, violet leaves, pear, ginger orchid, jasmine, lilac, cashmeran, amber, vanilla and musk Booth: Blue Village F 3 94


TECH by Travel Blue Company: Travel Blue Description: The new TECH by Travel Blue range has been designed to meet every possible solution to connect and charge travelers’ USB devices worldwide with a product selection that includes Adaptors, USB chargers, Headphones, Speakers and Cables Booth: Red Village M24 Converse Company: Mondoticca Description: The perfect hybrid of fashion, function and funk. Bold colors, signature star logos and cutting edge designs are captured in every pair of converse sunglasses. With three collections, there is a look for every budget Booth: Red Village K 30

Harley Street Skincare – StemCellution Company: World of Patria International Description: A secret weapon for ageless beauty, packed with antiaging ingredients including peptides, epidermal growth factors, anti-oxidants and fruit stem cells. The range includes hydro cleanser, eye serum, anti-aging serum, all-day moisturizer and overnight moisturizer

Spring Summer 2014 Collection Company: Furla Description: Furla’s Spring Summer 2014 Collection is motivated by the colors of nature, with each delivery inspired bya themes of weather, light and shade, and different materials Booth Number: Bay 15

Your boutique in the sky.

With over 20 years of experience, Traveller Limited provides airline companies with a unique selection of exclusive luxury goods, perfumes, cosmetics, gifts, toys and electronics. Traveller offers easy, direct and tailor-made solutions to its customers and suppliers to ensure that no item is out of reach, even in the sky.

Gulf-Africa Duty Free & Travel Retailing (October 2013 TFWA Vol. 23, No. 2)  

Gulf-Africa Duty Free & Travel Retailing is published four times a year (Spring, Fall and Winter) by Global Marketing Company. It is distrib...

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