Gulf-Africa TFWA AP May 2016

TFWA TFWA AP AP 2016

DUTYFREEMAGAZINE.CA DUTYFREEMAGAZINE.CA MAY MAY 2016 2015 ·· TFWA TFWA AP AP ·· VOL VOL 26 19 ·· NO NO 12

The World’s Top 5 Airports for Shopping

QATAR DUTY FREE PERFUMES AND COSMETICS

Smooth sailing for Bhatia Traders p. 6 Dan Cappell talks strength of ADDF p. 10 p. 14Chinese travelers around the p. world 26 p. 40 p. 12

LETTER FROM THE EDITOR

MAY 2016 · TFWA AP · VOL 26 · NO 1

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. May 2016, Vol. 26, No.1. Printed in Canada.

All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2016 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 www.dutyfreemagazine.ca PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca EDITORIAL DEPARTMENT EDITOR-IN-CHIEF Hibah Noor hibah@dutyfreemagazine.ca SENIOR EDITOR Wendy Morley wendy@dutyfreemagazine.ca ART DIRECTOR Jessica Hearn jessica@globalmarketingcom.ca ADVERTISING SALES ADVERTISING & MARKETING EXECUTIVE Jacqueline Hammill jacqueline@dutyfreemagazine.ca CIRCULATION & SUBSCRIPTION MANAGER accounts@globalmarketingcom.ca

Cautious optimism T he Middle East has proven to be a bright spot in a generally challenging worldwide environment for travel retail. According to Airports Council International, preliminary statistics indicate that the region took the top spot for year-over-year air travel growth in 2015—11.3% for total passengers and, importantly for duty free, 11.9% in international passenger travel.

The three major aviation hubs of the region reported impressive growth on an annualized basis, with Dubai adding 7.5 million additional passengers over the year, Doha adding 4.5 million and Abu Dhabi increasing its passenger count in 2015 by 3.4 million. In total, the three airports generated an additional 15.5 million passengers in the region over the course of the year.

And travel retail operators are capitalizing on these passenger increases. Dan Cappell, Abu Dhabi Airports’ Acting Chief Commercial Officer, tells us that sales for Abu Dhabi Duty Free over 2015 rose 7% to US$294 million. Further good news is that Dubai Duty Free maintained strong total sales in 2015, at US$1.933 billion. This represents a marginal increase of 0.83% over 2014. To round out the big three, Qatar Duty Free remains at the top of its game; at press time, Skytrax named the retailer the fifth-best for airport shopping in the world, while Hamad International Airport was named the best airport in the Middle East.

And while it’s true that some travelers are spending less given economic hardships in many countries the world over, IATA notes that the Middle East will benefit from average growth of 4.9% per year in passenger traffic to 2034—tied for first place with AsiaPacific in terms of forecasted growth over the next 18 years. This represents an extra 234 million new passenger a year on routes to, from or through the region.

In this issue of Gulf-Africa Duty Free, you’ll find news from retailers, brands and service providers, each with different opinions on the current state of affairs in Middle Eastern travel retail ranging from expectations of continued challenges to cautious optimism. For our part, we’re leaning towards the latter; with passenger numbers rising strongly in a region that just happens to be home to some of the world’s most innovative retailers and brands, there is certainly a good base from which to build growing sales in the years to come.

Kindest Regards,

Hibah Noor Editor-in-Chief hibah@dutyfreemagazine.ca

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CONTENTS

What’s inside

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FEATURES 6 Retailer News: Bhatia Traders A STRATEGY FOR SMOOTH SAILING

Duty free operator Bhatia Traders is successfully catering to seamen with its plan for continuous improvements in quality standards and customer service

8 Retailer News: Dubai Duty Free DUBAI DUTY FREE DELIGHTED AT 15TH DUTY FREE SHOPPING AWARD

Duty free powerhouse Dubai Duty Free tops a reader survey to win Best Airport for Duty Free Shopping in the Middle East – for the 15th consecutive year

10 Retailer News: Abu Dhabi Duty Free DAN CAPPELL TALKS STRENGTH OF ADDF

Abu Dhabi Duty Free hit record sales in 2015, thanks to its ongoing marketing activations throughout the year and several high-profile firsts in its evolving product offering

12 Chinese travelers BIG BUSINESS

Not only is the number of Chinese travelers passing through the world’s airports increasing, in many cases so too is the amount that they’re spending

10

16 Liquor: Diageo THE JOY OF MALTS

Diageo is not one to rest on its laurels with regard to the ever-strong whisky market in the Middle East and India; new executions, campaigns and innovations ensure a constant rush of lifeblood

17 Liquor: J. Cortes EYES ON THE PRIZE While some companies have stepped back from GTR recently, J. Cortès has gone in the opposite direction and is reaping huge dividends

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

www.duba aidutyfree.com

RETAILER NEWS: BHATIA TRADERS

A strategy for smooth sailing by

FAYE BARTLE

Bhatia Traders has a network of seven seamen’s clubs in the UAE

Duty free operator Bhatia Traders is successfully catering to seamen with its plan for continuous improvements in quality standards and customer service

Rajeev Bhatia, Managing Director, Bhatia Traders

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GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2016

B

hatia Traders is taking care of business in 2016 by maximizing the performance of its existing locations in the UAE while looking at smart ways to move forward.

The company, which is headquartered in Sharjah and has a network of seven seamen’s clubs, nine duty free shops and multiple bonded warehouses across seaports of the UAE, is upbeat about potential growth opportunities over the next 12 months.

“A sustained weakness in oil prices combined with the slowdown in Europe, as well as various other factors, had impeded growth in 2015 and the repercussions will be felt in 2016,” explained Managing Director Rajeev Bhatia. “Being optimistic but realistic, however, we have planned to concentrate on our existing operations instead of further expansions in 2016. We would be focusing more on improving our quality standards and customer service in each of the locations.”

Introducing new entertainment and theme nights in its seamen’s clubs is proving a popular way to entice guests.

“We organize events and theme nights in our clubs on various occasions,” said Bhatia. “Theme nights for 2016 and beyond

The company is focusing on existing operations instead of further expansions in 2016

Bhatia Traders has recently renovated its duty free shop in Fujairah to increase floor space by a quarter

include Valentine’s Day celebrations, Seafarers Day, American Independence Day, Christmas and New Year. Other than these we have regular monthly promotions depending on vessel schedules.”

One of the most recent developments has been the renovation of the Fujairah duty free shop, which is benefitting from an increased floor space of 25%.

“The renovation plan for the Fujairah duty free shop has worked very well in our favor and we have received a lot of positive feedback from our regular clientele,” said Bhatia. “The extended space has not only provided a better shopping experience but has also allowed us to display a wider variety of products for our customers.”

He continued: “It allowed us to design a better floor plan and showcase specialized products such as fine cigars and gold and diamond jewelry. Sales have risen by more than a quarter compared to 2014 levels.”

The company has also invested in collaboration with Mission to Seafarers for a shop inside a boat called ‘Flying Angel’ for seamen at the Fujairah anchorage.

“The Flying Angel operations have been a great move for the organization,” said Bhatia. “Not only has it increased our toppling but, at the same time, it has presented us with an opportunity to satisfy more seamen, which is the core objective of our organisation. From the feedback received from the anchorage through our customers, we have increased our product mix to satisfy their daily needs and gifting requirements.”

Plans for a new Seafarer Centre at Mina Zayed, originally planned to open in October 2015, have been delayed but progress is being made. “Although the facilities are not fully operational, we have been serving various vessels through specially organised events,” said Bhatia. “The opening preparations are in full swing and facilities are expected to be 100 percent operational soon.”

Bhatia Traders’ duty free outlets, bonded warehouses and seamen’s clubs are located in Sharjah, Jebel Ali, Umm Al Quwain, Fujairah, Khorfakkan, Ras Al Khaimah, Ajman, Abu Dhabi and Hamriyah Free Zone. To find out more, visit www.houseofstbhatia.com.

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RETAILER NEWS: DUBAI DUTY FREE

Dubai Duty Free Executive Vice Chairman Colm McLoughlin and Vice President - Marketing Sinead El Sibai receive the Business Traveller Middle East Award for Best Airport for Duty Free Shopping in the Middle East from Paul Fox, British Consul General to Dubai, and British celebrity chef Marco Pierre White

Dubai Duty Free delighted at 15th duty free shopping award Duty free powerhouse Dubai Duty Free tops a reader survey to win Best Airport for Duty Free Shopping in the Middle East – for the 15th consecutive year

F

or the 15th consecutive year, Dubai Duty Free was named the Best Airport for Duty Free Shopping in the Middle East at the Business Traveller Middle East Awards held in April at the newly opened Palazzo Versace, Dubai.

Dubai Duty Free, which achieved record sales of US$1.888 billion in 2015 and is now ranked as the number one single airport retail operation in the world, topped the readers’ survey conducted by the magazine within the category Best Duty Free Shopping in the Middle East.

More than 350 executives from the travel industry attended the awards ceremony hosted by Motivate and Panacea Publishing.

Guest of honor for the evening was British celebrity chef Marco Pierre White,

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GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2016

who has restaurant interests in Dubai and was in the city to promote his new book.

Commenting on the latest award, Dubai Duty Free Executive Vice Chairman Colm McLoughlin said: “This award reflects the views and opinions of frequent travelers, and to receive this for the 15th consecutive year is very special and reflects the hard work of all of our employees. I would like to thank H.H. Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of Dubai Duty Free, for his ongoing support and my thanks to those who have given us their vote.”

The award was presented to Colm McLoughlin and Dubai Duty Free Vice President - Marketing Sinead El Sibai

by Paul Fox, British Consul General to Dubai, along with Marco Pierre White.

Dubai Duty Free’s Colm McLoughlin and Sinead El Sibai with the Business Traveller Middle East Award

EXTRAORDINARY C H O C O L AT E S O U V E N I R

Visit us at TFWA Singapore - G26 www.neuhaus.be

RETAILER NEWS: ABU DHABI DUTY FREE

Abu Dhabi Duty Free stores offered record sales in 2015

Dan Cappell talks strength of ADDF Abu Dhabi Duty Free hit record sales in 2015, thanks to its ongoing marketing activations throughout the year and several high-profile firsts in its evolving product offering

D

emonstrating its resilience in challenging times, Abu Dhabi Duty Free (ADDF) has achieved record sales in 2015, reaching AED1.5 billion (US$408 million) sales across its retail, food and beverage (F&B) and services sectors, according to its latest commercial figures. Sales were up 10.3% on 2014’s figures, despite economic volatility worldwide.

The retail category continued its upward growth trend, rising by 7% to AED1.079 billion (US$294 million) from AED1.009 billion (US$275 million) in

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GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2016

2014, contributing to a strong and steady 13.2% compound annual growth rate (CAGR) from 2010 to 2015. F&B sales recorded a 25.7% increase to account for the majority of growth across Abu Dhabi Airports’ businesses last year, while the services sector posted a 15.2% rise, of which 26.8% was fuelled by airport advertising.

“This was an excellent achievement, particularly taking into account the volatility in exchange rates, the decline in the Russian economy and the Chinese austerity drive,” said Dan Cappell, Abu

Dhabi Airports’ Acting Chief Commercial Officer. “Our commercial team works very closely with DFS to review the ranges we have available and to ensure that every square metre of space is as productive as possible. We also work together to adapt the retail offerings to market changes in order to facilitate continuous growth.”

Abu Dhabi Duty Free also rewarded selected passengers with gift vouchers worth AED1 million (US$272,000) and coordinated a ‘lucky seat’ program on targeted flights to engage Abu Dhabi International Airport’s 23 million passengers in 2015. Furthermore, passengers were treated to several firsts, including the sale of products made exclusively in the UAE and the world’s first Sephora store housed in an airport.

Perfumes and cosmetics, food and confectionery, luxury watches, electronics and gold generated the largest growth rates within Abu Dhabi Duty Free. The sale of luxury watches rocketed 185.1%, sales of sunglasses went up by 13%, books & magazines by 9.6%, food and confectionery by 7.3%, and pharmacy goods by 5.5%.

As of December 2015, London, Mumbai, Bangkok, Doha and Jeddah had emerged as the top five routes from Abu Dhabi International Airport (AUH) and the shopping proposition is evolving to better reflect the demographic.

“We have worked hard to develop offers for our Indian sub-continent customers, for instance, which has paid dividends through providing real value for money and innovative promotional activations that are driving conversion,” said Cappell.

Promotional campaigns such as “spin and win” are also proving popular among passengers – a concept we can expect to further see developed over the course of the year.

“One of the key factors in achieving record sales in 2015 was the ongoing marketing activations throughout the year,” explained Cappell. “We also opened two spas at AUH and we are upgrading our children’s play area in the coming few weeks. We are always looking to provide something exclusive for passengers.”

The optimistic outlook is commendable considering factors such as the reduc-

tion in Chinese spending and currency variations (especially regarding the Ruble) influencing business dynamics.

“The global economic factors that have impacted the business in 2015 will continue to challenge it in 2016,” admitted Cappell. “In spite of this, 2015 proved to be a record year for us. Every year we set ambitious growth targets and we expect to meet these by working closely with our partners and all our concessionaires. They are supporting the airport in driving superior customer experience and of course this, in turn, generates strong growth. We will continue to provide a value for money offering linked with innovative promotional and marketing campaigns, across our consumer demographics.”

Abu Dhabi Duty Free will continue the expansion of its world-class product offering featuring innovative sales and marketing concepts when the Midfield Terminal Building opens in 2017. Abu Dhabi Airports will have awarded all core commercial contracts for the new terminal within 2016.

Promotional campaigns are proving popular among passengers

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CHINESE TRAVELERS

BIG

BUSINESS by

RYAN WHITE

Not only is the number of Chinese travelers passing through the world’s airports increasing, in many cases so too is the amount that they’re spending

R

ecently released statistics from the United Nations World Tourism Organization (UNWTO) indicate that international tourist arrivals grew by 4.4% in 2015 to reach a total of 1,184 million in 2015. Some 50 million more tourists (overnight visitors) travelled to international destinations around the world last year as compared to 2014.

Noteworthy for travel retailers and brands with a focus on duty free is that China continues to lead the pack when it comes to outbound travel.

UNWTO calls China a “leading source market” that has “driven tourism expen-

“In 2015, Chinese travelers represented 3.75% of all passengers, but they spend considerably more than many other nationalities.”

COLM MCLOUGHLIN, EXECUTIVE VICE CHAIRMAN, DUBAI DUTY FREE

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GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2016

diture in 2015.” Indeed, China has posted double-digit growth in tourism expenditure every year since 2004. Destinations such as Japan and Thailand are benefiting, but the United States and selected European countries are also seeing their fair share of Chinese travelers.

At the airport A recent conversation with Executive Vice Chairman of Dubai Duty Free (DDF) Colm McLoughlin backs up UNWTO’s findings. “The Chinese passenger comprises an important segment of our customer mix,” he tells us. In 2011 Dubai International Airport (DXB) served 2,183,679 Chinese passengers. In 2015 this number grew to 2,830,972, representing an increase of 29.64%. For Chinese travelers departing DXB, the top five destinations are Beijing, Hong Kong, Shanghai, Guangzhou and Kunming.

Los Angeles International Airport (LAX) is also seeing a large number of Chinese travelers pass through its gates.

Los Angeles World Airports, operator of LAX, tells us that in 2014 there were 449,155 arriving passengers from China, with 54 planes arriving weekly from the country representing 17,150 weekly seats.

Echoing the figures from LAX, Jamie Foley, Vice President of Global Communications for the Los Angeles Tourism & Convention Board, tells us that 2015

The South Concourse at Los Angeles International; in 2014 the airport welcomed 449,155 arriving passengers from China

visitation figures shed light on the high numbers of Chinese travelers visiting The City of Angels. “China was the most dynamic market driving international visitation [in 2015], with a year-over-year growth of 13.6%, officially becoming LA’s number two international market behind Mexico,” she says.

In the stores It’s no secret that Chinese travelers like to spend when abroad. In the US, for example, Chinese visitors spent a staggering US$24 billion 2014 according to marketing organization BrandUSA. DDF’s McLoughlin says that the demographic’s reputation also holds true at DXB. “In 2015, Chinese travelers represented 3.75% of all passengers, but they spend considerably more than many other nationalities,” he explains. “Chinese travelers accounted for 12.7% of total DDF sales in 2015.”

Average Chinese spend per person at DDF in October 2011 was AED338 (US$92); this rose to AED413 (US$112) in 2015, representing an increase of 22%.

Their favorite categories in order of highest to lowest in 2015 were Cosmetics; Watches and Clocks; Cigarettes, Tobacco and Cigars; Perfumes; and Spirits.

Moreover, Chinese travelers appear to be remarkably consistent in the categories they purchase, with the order of top categories in 2011 being the same with the

POPULAR GUESTS AT ANY PARTY

YOU CAN NEVER BE TOO GENEROUS

CHINESE TRAVELERS

A Chinese New Year promotion at Dubai Duty Free

exception of Cosmetics and Watches and Clocks switching places.

McLoughlin tells us that Chinese travelers are also very interested in the Fashion category: “Our introduction of luxury fashion brands like Chanel, Gucci, Hermes and Salvatore Ferragamo in Concourse A at DXB has resulted in a significant increase in Fashion sales,” he says.

“The majority of Chinese passengers are brand-oriented and continue to patronize luxury brands that are known worldwide.”

In addition to introducing the above brands, DDF has taken other steps to ensure that Chinese travelers feel at home when passing through DXB. The retailer has increased the number of Mandarin-speaking staff over the years, from 33 in 2006 to 682 as of January 2016.

Furthermore, when adding new products to mix across categories, DDF factors in Chinese buying habits. A great example of this, says McLoughlin, is that many products now offer packaging that features Mandarin translations, certainly an advantage when it comes to capturing this attention of this high-spending demographic. Finally, DDF has ensured that

top-selling products now feature signage in Mandarin to increase visibility among Chinese shoppers.

Expanding the focus The Los Angeles Tourism & Convention Board notes that the Chinese aren’t the only Asian travelers arriving to LA in droves; visits from South Koreans also grew by 11% year over year in 2015 to reach 282,000. For its part, LAX is also seeing a swell of arrivals from other Asian countries, with 222 weekly flights in 2014 representing 68,260 weekly seats from points of origin as diverse as Japan, China, South Korea, Taiwan, Hong Kong and the Philippines.

And widening the scope of the discussion for DDF, it becomes clear that Chinese travelers aren’t the only Asians buying when passing through DXB. Indeed, South Asian travelers make up an important portion of total spend at the retailer’s operations. The top five nationalities in terms of spend, in order from highest to lowest, are Indians, Chinese, Brits, Saudi Arabians and Pakistanis.

Dubai Duty Free’s introduction of luxury fashion brands in Concourse A at Dubai International has resulted in a significant increase in Fashion sales across the board, including to Chinese travelers

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UNWTO figures tell a similar tale with regard to travel from other Asian countries in 2015. The vast Asia Pacific region (+5%) recorded 13 million more international tourist arrivals last year to reach 277 million. Oceania (+7%) and South-East Asia (+5%) led growth, while South Asia and Northeast Asia recorded an increase of 4%.

Bright future Based on the current trends, UNWTO forecasts international tourist arrivals to grow by 4% worldwide in 2016. While this increase can be characterized as modest, it should be heartening for companies with a stake in travel retail to know that Asian travelers, and especially the Chinese, will continue to lead the pack.

By region, growth is expected to be stronger in Asia and the Pacific (+4% to +5%) and the Americas (+4% to +5%), followed by Europe (+3.5% to +4.5%).

The projections for Africa (+2% to 5%) and the Middle East (+2% to +5%) are positive, though with a larger degree of uncertainty and volatility.

COMPANY REPORT: DIAGEO

The joy of malts Diageo is not one to rest on its laurels with regard to the ever-strong whisky market in the Middle East and India; new executions, campaigns and innovations ensure a constant rush of lifeblood by

WENDY MORLEY

A

s with many regions throughout the world, the Middle East has seen its challenges in 2015 and into 2016. “The region has faced headwinds,” says Zeina Hatem, Diageo’s Regional Director, Middle East & North Africa (MENA). “The Russian economy is very weak and both the Ruble and the Euro have dropped considerably.”

India, blends and JOHNNIE WALKER The Rupee, on the other hand, has increased in recent years and indeed India is the only BRIC country with both its present and future appearing bright. In the Gulf region, Indians make up the larg-

Diageo’s success comes in part from creating unique experiences for travelers such as the JOHNNIE WALKER Blue Label Cities Collection – Dubai Edition activation in Dubai Duty Free

est percentage of passengers, so that has been helpful in the health of the duty free business in the region.

“India is a huge Scotch whisky market.

The country has traditionally been a strong consumer of blended whiskies.

The combination of this tradition, the quality of the brand and its heritage have helped make JOHNNIE WALKER the number-one spirit in the region,” says Hatem. Diageo has released plenty of travel retail exclusives and other exquisite luxury products perfect for both the traveler and the collector. These include the JOHNNIE WALKER Gold Label Reserve Dubai Duty Free Exclusive and the JOHNNIE WALKER Blue Label Cities Collection – Dubai Edition.

The brand’s newest travel retail innovation is the JOHNNIE WALKER trunk, a luxurious display unit that brings the essence of the extremely successful JOHNNIE WALKER House to other locations. The trunk, which opens into a stately display, attracts customers, showcases exclusive products in the JOHNNIE WALKER range and offers an opportunity for specially trained brand ambassadors to tell the JOHNNIE WALKER story.

Single malts coming to fore

While travelers to the region show a strong predilection for JOHNNIE WALKER, single malts are a rapidly growing trend. Diageo is answering in part with the SINGLETON GLENDULLAN RANGE, exclusive to travel retail

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GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2016

Despite the strength of blended whiskies in the region and JOHNNIE WALKER in particular, there is a trend toward single malts, and the category is clearly growing. “Malts have been the real star,” says Antonia Ellis, Channel Marketing Manager - MENA, Diageo Global Travel

and Middle East. “We have the new travel retail-exclusive THE SINGLETON OF GLENDULLAN range and an expanded TALISKER range. This has had a real halo effect, resulting in substantial strong growth in malts.”

“Activations and promotions are important to draw attention no matter which airport or location throughout the world, but nowhere is that more the case than in the Middle East, where there are strict restrictions on the communication of alcohol. “THE SINGLETON new range has brought with it beautiful toolkits for execution in the airports,” says Ellis. “Additionally, we’ve held an exceptional amount of training of brand ambassadors and sales floor associates.

This really helps.”

Focus on joy Other recent executions in the region include a gifting campaign over Christmas in Dubai and Qatar based on JOHNNIE WALKER Blue Label’s movie, The Gentlemen’s Wager II. While whisky is the biggest news, Diageo recently launched CÎROC Derek Zoolander Blue Steel Limited Edition; “We are also looking at other parts of the portfolio,” says Regional Director, Hatem.

For all the brands, however, the focus is bringing joy back to travel. Hatem says: “Travel has become stressful and busy.

Diageo creates fantastic retail experiences bringing stories to life, and offering travel retail exclusives, helping to make travel a joyful experience once again.”

COMPANY REPORT: J CORTES

As part of J. Cortès’ investment in travel retail, the company held customized a Product-andSales workshop for the sales staff at key airports including WDFG at Queen Alia Airport, Jordan

Eyes on the Prize While some companies have stepped back from GTR recently, J. Cortès has gone in the opposite direction and is reaping huge dividends by

J

. Cortès travel retail saw a fantastic year in 2015. “We increased our locations by almost 25%, generating a growth of 30% in travel retail, though I’m still working hard to get listed with some of the big operators such as Dufry and Heinemann.” says Thomas Gryson, Export Manager & Travel Retail Coordinator for the company. “They keep a nice selection in their most important airports, but one manufacturer is missing in their beautiful range!” J. Cortès is internationally recognized as a top player in the cigar business, exporting to over 80 countries and with daily production of over two million.

Huge growth in the Middle-East Those two duty free giants might still be holding out, but listings with WDFG in the Middle East have moved J. Cortès closer to its retailer goals, especially considering Dufry’s purchase of WDFG last year. The company has seen an extremely successful year in the Middle East in 2015, with duty free sales in the region up 15% over 2014. “Thanks to several new listings with WDFG we grew substantially in the region. The brands Neos and J. Cortes are now listed at Jordan Queen Alia with WDFG. J. Cortès is also present with the brand Neos and J. Cortès at Dubai Airport, Qatar Duty Free and Bahrain, and has recently invested together with WDFG Kuwait in a new tobacco-cigar dedicated corner,” but he says there’s still plenty of room for growth. “The sales in Dubai Duty Free are under pressure but

WENDY MORLEY

we are very satisfied with the listing of our travel retail-exclusive Neos Selection 50 cigars since early 2015.

New display for an important market

available everywhere in flight packs. In Cannes, the company will present a new travel retail exclusive with its premium line J. Cortès. “Many cigar and cigarillo smokers are very happy to find their Neos and J. Cortès cigarillos in airports all over the world. They have the resources to buy our cigars and cigarillos not only for their own use, but also as gifts.”

This year, J. Cortès created a bespoke display specifically for the travel retail market, underlining its commitment. “The product display, which we call the J. Cortès Multi-Brand Floor display, This year, J. Cortès created a bespoke display specifically for the travel retail market, increases our brand visibility,” says underlining its commitment to the channel Gryson. “It allows the cigars and cigarillos to stand out from other tobacco products. Today the interest is mainly border shops, but we are also working on projects with Aelia and WDFG to have the gondola at the airports.”

Train to gain J.Cortès Cigars is investing heavily to support its travel retail business; one of the most important ways is by training the staff of airport shops.

This year J. Cortès has given a customized Product-and-Sales workshop for the sales staff of WDFG at Queen Alia Airport, Jordan and also two sessions with DFS at Changi, Singapore. “Knowledge is the start of everything,” says Gryson., adding: “This year I’ll be present at the MEADFA convention in Dubai. We still have a lot of work to do in the region.”

This year, J. Cortès is again focusing on the Neos Selection 50 cigars and the Neos Flavor Collection, now

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