Gulf-Africa TFWA AP May 2018

TFWA AP 2018

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DUTYFREEMAGAZINE.CA MAY 2018 · TFWA AP · VOL 28 · NO 2

Arrival of VAT p. 6 Beirut growth spurt p. 8 Airport news p. 12

4/13/18 12:28 PM

Letter from the Editor

MAY 2018 · TFWA AP · VOL 28 · NO 2 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 2018, Vol. 28, No.2. Printed in Canada.

All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2018 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 ASSOCIATE EDITOR Jas Ryat jas@dutyfreemagazine.ca SOCIAL MEDIA COORDINATOR Eman Khan eman@dutyfreemagazine.ca ADVERTISING AND MARKETING MANAGER Kevin Greene kevin@dutyfreemagazine.ca ART DIRECTOR Jessica Hearn jessica@globalmarketingcom.ca

Challenges & opportunities A

s a region both hugely profitable and volatile for luxury goods, the Gulf region keeps the duty free industry on its toes.

After a contraction caused in part by the economic decline in Russia and in part by socio-political issues in the region, the rebound in 2017 was strong, with over 13% growth.

Additionally, Africa has now emerged as a strong growth market. After years of negative numbers, travel on the continent is on an upswing.

North Africa is a real shining star with strong double-digit growth, but sub-Saharan Africa has also moved into solid positive territory.

Taking advantage of this opportunity, MEADFA has announced it will widen its scope, enabling it to better represent the interest of the Duty Free and Travel Retail industry. “Affiliated membership” is now open for brand owners, suppliers including related associations, and distributors operating in the Middle East and Africa region.

But as always, the region is not without its challenges. Two taxes are threatening duty free in the region: a newly introduced excise duty, or “sin tax,” and the inclusion of arrivals duty free under the scope of VAT. This strongly affects the sale of tobacco in particular, which might be taxed up to 100% under the excise tax.

Dubai Duty Free is leading the choir in discussions with the UAE Federal Tax Authority, and the reaction so far has been positive. But the lobbying capacity is limited due to the nature of the GCC. The hope is that a unified voice via MEADFA will help duty free retailers in the region to traverse these rough seas.

While tobacco and alcohol may face a rough ride ahead, other luxury categories such as fashion and lifestyle are performing extremely well in the region. Also, outside of the GCC, Africa is offering substantial growth opportunities to all categories across the board.

Please enjoy learning about this region-specific information and more in this TFWA Asia Pacific issue of Gulf-Africa Duty Free & Travel Retailing. Singapore welcomes many guests from the Gulf-Africa region for this event, and we wish you all great success.

Kindest Regards,

CONTRIBUTORS Claire Malcolm

CIRCULATION & SUBSCRIPTION MANAGER accounts@globalmarketingcom.ca

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

www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

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Contents

What’s inside

8

Lead Stories 6 DDF/GCC tax implications Taxing times

A wholly tax-free retail environment no more, the arrival of both excise and value added tax (VAT) into the region is proving to be more than simply a major administrative headache for airports and operators

8 Beirut Duty Free

PAC man’s up for Beirut growth spurt Phoenicia-Aer Rianta Trading Company’s (PAC) successful 2017 tender at Beirut Rafic Hariri International Airport has given the long-term incumbent four more years and the team is going all out to future-proof sales opportunities

12 Malaysia Airports A year to celebrate

13

As Eraman celebrates its 25 year anniversary, the company’s strategic plan implemented over the past years has put the company on track for future growth

13 Diverse Flavours

Approachable diversity Diverse Flavours is on a mission to share the hidden gems of South African wine with GTR, while making them more approachable for consumers

14 Imperial Tobacco blu smoke

blu launches next-generation e-vaping device in sleek new format

14

DDF/GCC tax implications

Taxing

times

by CLAIRE MALCOLM

Bernard Creed, Vice President Finance, Dubai Duty Free

A wholly tax-free retail environment no more, the arrival of both excise and value added tax (VAT) into the region is proving to be more than simply a major administrative headache for airports and operators

T

he dual implementation of the newly introduced ‘sin tax’, and arrivals duty free unexpectedly falling under the scope of VAT, is having a double whammy impact on duty free prospects with the UAE and Saudi Arabia the first GCC nations to introduce both forms of taxation.

Saudi Arabia was first through the starting gate, introducing excise tax in June 2017, with the UAE following in October, and Bahrain in December; while both Saudi Arabia and the UAE kicked off the new year with the introduction of VAT. According to Bernard Creed, Vice President Finance, Dubai Duty Free, who laid bare the bones of the fledgling legislation in a session at this year’s MEADFA conference, the rest of the GCC isn’t far behind.

6 GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2018

“The legislation in Kuwait and Qatar is developed, but they still haven’t confirmed when they will bring in excise tax; and Oman is still lagging behind. Bahrain is expected to introduce VAT in Q3 or Q4 this year with the rest of the GCC countries set to bring it in by January next year,” he said.

Industry on the defensive

Generally payable on alcohol, cigarettes and soft drinks, excise duty (also known as the ‘sin tax’) may be a one-time nonrefundable amount, but with the amount ranging anywhere from 50-100% - in the case of tobacco – there’s a skyrocketing end cost to the consumer.

VAT in both Saudi Arabia and the UAE is currently set at 5%, which is extremely reasonable compared to many international jurisdictions, and departures as well as onboard duty free remains tax-free, but the inclusion of arrivals duty free within the taxable scope has been an unexpected blow to the industry.

Said Creed: “The risk to our industry is that if you want a duty free sign over your arrivals shop, and you’re selling product such as tobacco, for example, and charging VAT and excise, is the whole concept of duty free being eroded? We believe that it is.”

Sharjah Duty Free has already stopped selling tobacco on

arrivals, with Abu Dhabi set to follow suit as the category has effectively lost its competitive pricing advantage.

“The legislation defines arrivals as vatable but departures as not, so any movement between departures also means very different VAT or VAT refund scenarios,” he said, and added: “It influences so many aspects of our business, for example sales of our Millennium Millionaire tickets, online business and buy on departure, collect on arrivals – it’s really quite complex.”

The planned implementation of both forms of taxation across the rest of the GCC in the coming months is another area of industry concern, as Creed explained: “Potentially, within the next 12 months, anyone leaving our departures area and going to [other] GCC countries will be charged VAT, and we disagree with that.”

A unified voice

It’s still early days, and Creed also noted that Dubai Duty Free’s dealings with the UAE Federal Tax Authority have been very positive. “[The] implementation of any new legislation, particularly when there is no precedent in a country or region, is so mammoth, and the introduction of VAT has such huge ramifications domestically and for the region, that I think airports and duty free got lost in that,” he remarked.

The company has initiated a ‘request for reconsideration’ – and is working with other UAE airport partners to have industry concerns formally addressed. Dubai Duty Free also led the

charge in establishing an industry advisory board.

“Abu Dhabi, Dubai, Ras Al Khaimah and Sharjah all came together to see how we could react to what was in the legislation so far, and to ensure that we all had the same voice and also, individually have the opportunity to speak with different influencers,” he noted.

Lobbying for legislative change may be new territory for the region’s duty free community but is absolutely necessary according to Nuno Amaral, MEADFA Vice President and CEO Middle for East Aer Rianta International (ARI).

He said that while duty free arrival sales are up in Bahrain and Oman, this is only a short-term advantage, with all the GCC countries set to be tax-aligned in the next one to two years.

“We’ve discussed the situation not only as a company, but also the MEADFA board and the difference in this region is in terms of our lobbying capacity,” he noted.

“It is much more difficult than in other geographies to find someone on the ‘other side’ who is organized to speak to us as an association, and represent all the GCC countries, and there’s no such thing as a European Commission equivalent body,” he noted.

“The work needs to be done in each country but we also need to speak with one voice. As an organization, MEADFA can support its members and provide relevant information and material, but each company in each country has to address its own authorities,” he concluded.

Cederberg, Kleinood, 88 Vineyards, Deetlefs, Avondale, Groot Constantia, Napier, Mt Vernon, Ernie Els, Delaire Graff

Taste and discover award-winning wines from South Africa.

To schedule a meeting, contact Anthony Budd at Diverse Flavours: +27 71 255 7344, anthonybudd@diverseflavours.com

Premium South African Wines

Stand D34 TFWA Asia Pacific 2018 6-10 May, Singapore diverseflavours.com www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

7

Beirut Duty Free

Three new shops were added to the East and West terminal wings to capitalise on passenger growth in 2017

PAC man’s up for Beirut growth spurt

Phoenicia-Aer Rianta Trading Company’s (PAC) successful 2017 tender at Beirut Rafic Hariri International Airport has given the long-term incumbent four more years and the team is going all out to future-proof sales opportunities

by CLAIRE MALCOLM

B

eirut Rafic Hariri recorded its busiest year to date in terms of passenger growth, welcoming 8.2 million travelers in 2017 (+8% year-on-year), and for Beirut Duty Free it was a similar success story in terms of sales, with 2018 also off to a strong start.

However, the 2017 concession renewal win came at a cost.

Andrew Baker, General Manager, Beirut Duty Free, explains: “PAC had to pay a very high license fee to win this tender, with the result that we will not be profitable this year.”

“The growth in passenger numbers, while welcome, also brought with it significant congestion at peak business periods, which the airport is now addressing. This and other constraints had an impact on the overall customer experience, while also impacting on KPIs such as Passenger Average Spends within our shops, but we have taken a number of steps to tackle these issues.”

8 GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2018

New experiences

Category growth is being led by tobacco, P&C and liquor, with Baker noting that the investment in a new sunglasses area at the end of 2016, “paid dividends in 2017, being one of the stellar success stories with sales up 33% last year”.

“Cigar business also continues to go from strength to strength, and a number of our sublets such as Halab and Goodies (confectionery and food) and Zoughaib and Germani (jewelry) all enjoyed good growth in 2017,” he says.

The first airport duty free to launch a standalone Kérastase store in the Middle East, Baker credits the success of this concept to a number of factors, including high quality brand execution, a prime location with high visibility, well-trained staff and a very competitive price proposition.

Concession renewal has also spurred refurbishment plans for the liquor, tobacco, confectionery/toys spaces, as he explains: “Works commenced this February with a completion date of early June and will see a total makeover and introduction of a number of new concepts, with key support from our stakeholders such as Diageo, PMI and Pernod Ricard.

“We have also commenced plans to refit the current jewelry and watch space by relocating these two categories and providing an additional 250 square meters of space for new cosmetic and skincare brands, which will include Benefit, Urban Decay, Nars, and Kiehls, as well as relocating MAC to act as the key anchor.”

of our customers when they reach the boarding gates,” he adds.

In 2017, Beirut Duty Free also launched its own confectionery brand– Lulu. Says Baker: “This been very successful, becoming our number two confectionery brand, and provides customers with a range of attractively packaged confectionery and foods that weren’t previously available, and perfect for gifting.”

Hi-tech retail

Beirut Duty Free’s 2017 launched own confectionery line, Lulu, is now its number two brand in the category

Future proofing

Strategic growth plans are driving other new initiatives. “Having come through an extraordinarily busy summer last year, it was identified that due to congestion issues within the terminal not all passengers were being afforded time to shop, so before the end of the year PAC built and opened two new shops on the East Wing and one on the West Wing, to support existing retail outlets,” he says.

“We also developed a very successful mobile shop concept where we take the retail offer directly to the customer at the gate in the form of an electric ‘aircraft’, which has added significant incremental sales to our business while challenging us to look at developing and introducing new product ranges to meet the needs

In another first, the company’s partnership with the Inflyter app, which went live at end April 2018, added a new level of excitement to its retail offering. Says Baker: “The retail element is only one small part of what makes up Inflyter. What is unique about the app is that it allows users to digitally book flights, hotel accommodation and car rental as well as make duty free purchases.

“This puts the customer in control. Once at the airport they can collect their purchases from one of three digital locker points located within the airside terminal building by simply scanning a bar-code or keying in a pin code sent by Inflyter.”

This will result in an improved shopping service, Baker hopes, and will free up in-store sales personnel to sell to other customers. “It also has the potential to totally digitize our Shop & Collect business in the future,” he adds.

Development of digital platforms is also on the cards with Baker reporting the recent hiring of a full-time dedicated social media, web and marketing executive to oversee the existing website and engage with customers and influencers across all platforms.

Now more than 12 months in the role, Baker is excited for what lies ahead. “Around 70% of our customers are Lebanese and they love to shop, especially when you offer them the best brands, competitive prices and value for money.

“With a strong management team and a committed group of people working in our shops and back offices, the outlook for this business is very positive and our focus will be on growing sales and driving this business back into profitability while improving the customer journey and their shopping experience.”

The introduction of mobile aircraft-styled retail modules led to a significant increase in incremental sales in 2017

www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

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Malaysia Airports

During 2017 Eraman has capitalized on increased passengers to its airports

A year to celebrate As Eraman celebrates its 25 year anniversary, the company’s strategic plan implemented over the past years has put the company on track for future growth Zulhikam Ahmad, General Manager, Malaysia Airports (Niaga) Sdn Bhd

10 GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2018

M

alaysia Airports (Niaga) Sdn Bhd, also known as Eraman, is the largest airport travel retail and duty free brand in Malaysia. Operating more than fifty retail and F&B outlets, including kiosks, it offers a wide range of world-class and exclusive products ranging from premium chocolate to liquor, wine and spirits, skincare, cosmetics and fragrance as well as tobacco products in the country’s international and domestic airport.

2017 was a year of strong growth for Eraman due to increased passenger movements at all Malaysian international airports.

This has led to increased duty free sales particularly at KLIA, klia2 and Kota Kinabalu.

The sales trend for category growth for 2017 was strong with perfumes and cosmetics, and chocolates leading the way. This was helped by: favorable passenger movements; strong marketing partnership and collaboration with major financial players; joint campaigns and promotions with brand principals; and umbrella campaigns and contests.

Last year also saw the launch of the Eraman Shopping Extravaganza “Buy & Win” Contest for its second consecutive year. The contest, comprising of three phases, which is ending in May 2018, reinforces the Eraman’s brand value and offers customers bigger and better prizes worth RM1 million throughout its duration.

The first two phases of the contest that ran during 2017 attracted more than 300,000 entries with majority of participants from Malaysia, China, and India, which is consistent with the nationalities that spend the highest within Eraman stores.

To cater to the increasing Chinese visitors to the country, Eraman partnered with Alipay, the world’s largest online and mobile payment platform as well as Union Pay International, the fast growing global payment network. Both strategic partnerships saw attractive offerings in-stores for customers whilst giving the convenience in payments and an enhanced customers’ experience.

Eraman also fosters strong relationships with its brand partners especially leading beauty houses. In October 2017, the company worked with Dior to introduce an innovative perfumes and cosmetics boutique at Contact Pier, KLIA. It has also worked closely with the many high profile perfume and cosmetics brands and is looking to bring in more well-known brand names in the near future.

In the F&B category, Eraman won the Kulinary Top 25 Dining Choice Award 2017 for Bibik Heritage and Food Garden.

The brands involved were Mamak Kandar Rice, Pantai Timur, Nyonya Taste and Selera Nusantara. Eraman also received the ‘Best Supporting Partner’ award during the 2017 Concessionaires Conference. In August 2017, Eraman expanded its F&B franchise business under Gloria Jeans Coffees brand with the introduction of a kiosk at the Arrival and Departure Halls in KLIA. Moving forward, in conjunction with Eraman’s 25th Anniversary, Eraman will roll out its brand refresh in a coordinated approach covering the website, uniforms and store, and is on track to launch its refreshed brand by quarter three in 2018.

Eraman has worked with partners such as Dior to introduce new concepts Eraman is set for a year of growth

The annual Buy & Win Contest has made a positive impact on sales

www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

11

AIRPORT NEWS

Istanbul New Airport is 80% complete, says IGA Some 80% of the initial phase of Istanbul New Airport, which is due to open on October 29, is now complete, the airport operator has reported.

“We are working day and night for this project that will put Turkey’s stamp on the history of aviation,” says Yusuf Akçayoğlu, CEO of İGA Airports Construction.

“We have recently finished the baggage system which constitutes our airport’s core. And now we have made the runway number one ready for landing with all the required equipment and in compliance with the relevant global standards. We are looking forward to delivering Istanbul New Airport in its entirety in October.”

Istanbul New Airport is set to serve an approximate 100 airlines and become the world’s new aviation hub with 350 destinations in passenger and cargo transportation.

Qatar Airways signs MoU to acquire up to 25% of Vnukovo International Airport in Russia Qatar Airways announces that it has entered into an Memorandum of Understanding (MoU) with Moscow’s Vnukovo International Airport, to potentially acquire up to 25% of the airport’s total shares.

The signing ceremony took place on April 4 at the Oryx Rotana Hotel in Doha.

Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker, signed the MoU along with Chairman of the Board of Vnukovo International Airport JSC, Mr. Vitaly Vantsev. The signing took place in the presence of Deputy General Commerce for Vnukovo International Airport, Mr. Anton Kuznetsov.

Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker, said: “As we celebrate the Year of Culture between Russia and the State of Qatar, I am very pleased to announce the potential acquisition of up to 25% of Moscow’s Vnukovo International Airport. Such an investment will complement the strong ties we have already established with the country, with our launch of direct services to St. Petersburg late last year, as well as our triple-daily flights to Moscow. All our investments are part of our existing expansion strategy, through which we aim to be able to bring even more people together from all parts of the globe.”

Chairman of the Board of Vnukovo International Airport, Mr. Vitaly Vantsev, said: “Today we have signed the Memorandum of Understanding, the provisions of which, once implemented, could establish a foundation for productive partnership between Qatar Airways, one of the world’s leading air carriers and a true, recognised touchstone of sterling quality of passenger and in-flight services, and Moscow’s Vnukovo Airport. Vnukovo International nowadays boasts the best transport accessibility and most advanced, cutting-edge airport infrastructure in Russia, enabling the Airport’s consistently impressive passenger growth performance nationwide. This gives me every confidence that our potential partnership will be mutually beneficial and good for all concerned, through further synergies it will be creating for each partner, enabling further growth.”

DXB welcomed 6.9 million passengers in February Dubai International (DXB) welcomed nearly 7 million passengers in February, according to the monthly traffic report issued by operator Dubai Airports.

The monthly traffic in February totalled 6,928,547 compared to 6,948,157 passengers recorded during the same month in 2017, down marginally by 0.3%. The year to date traffic reached 14,888,693 passengers, down 0.6% compared to 14,985,165 recorded during the first two months of 2017.

In terms of percentage growth Eastern Europe was the fastest expanding market with traffic growing 17.6%, followed South America (13.3%) and CIS (12.1%).

India remained the top destination country by passenger volume with a total of 962,425 passengers during the month. The

12 GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2018

UK was placed second with 505,255 passengers, followed by Saudi Arabia with 490,058 and Pakistan with 336,875 passengers. London topped the list of destination cities with 305,768 passengers, followed by Mumbai (207,038 passengers), and Bangkok (201,077).

Flight movements at DXB totalled 31,456 in February down 3.2% compared to 32,486 during the same period in 2017. Year to date flight movements totalled 66,762 compared to 69,078 recorded during the first two months last year, down 3.4%.

The average number of passengers per movement during February reached 228 compared to 223 during the corresponding month in 2017, an increase of 2.2%.

Diverse Flavors Avondale Cyclus is a white wine blend that will be poured on Emirates in Business Class during 2018

Approachable

diversity

The 100% handcrafted Tamboerskloof John Spicer 2012 is made by Kleinood Estate and will be launching in duty free in the year ahead

by JAS RYAT

Diverse Flavours is on a mission to share the hidden gems of South African wine with GTR, while making them more approachable for consumers

D

iverse Flavours returns to the TFWA Asia Pacific tradeshow boasting a full line-up of approximately 50 wines to taste and review. The company continues to offer new and exciting products, whether it is premium wines from South Africa or Japanese sake, and proves that flexibility is key to approaching duty free.

Wine portfolio

Anthony Budd, Managing Director of Diverse Flavours, notes that wine consumers are constantly looking for fresh challenges, new wines and experiences.

“I think this is reflective of the amazing growth in the wine offering across Asia duty free over the last 10 years,” he says.

“The last 12 months has seen no change in this evolution. The wine section gets larger, the selection gets larger, the consumer gets braver, and more consumers enter the wine category, which drives us all harder (producer, supplier, retailer, channel) to make great and interesting wines available to them and ensure choice.”

Diverse Flavours offers a wide choice of wines. Favorites such as Avondale – one of the top organic and biodynamic

wineries from South Africa – continues to have its wines poured in First Class. Budd returns with Cederberg, South Africa’s highest winery at 1,000 meters, the popular Ernie Els range of wines, and from South Africa’s oldest wineries there will be Groot Constantia.

Budd will also be showcasing a personal favorite, The Ghost Corner Pinot Noir, produced at the most southerly end of South Africa in the Elim area.

Although best known for its wines, Diverse Flavours also offers Japanese sake. Japanese sake, like the South Africa wines, is a category that will take some time to strengthen in Asia and GulfAfrica. “The reaction so far has been very positive and I see a long-term potential for Japanese sake. Like wine, the sake category is multi-layered and sometimes seems even more complex and daunting.

The key is to find the right brands and Japanese producers who can understand the dynamics of the travel retail industry and have a long-term vision. This takes time. We have now placed our sake into shops in UAE, Korea, and Hong Kong and even into the inflight shopping catalogue,” explains Budd.

Evolving purchasing habits

Diverse Flavours prides itself in focusing on the ever-evolving customer demographic. The flexibility to constantly bring something new to the table allows Diverse Flavours to tailor the offerings based on what the consumer wants.

Budd continues: “No consumer group is the same. The Indians buy differently from the Chinese, who buy differently from the Japanese or Singaporeans. I think purchasing habits evolve. Therefore we have probably seen more Indians buying wine in the last two years than ever before, while the Japanese may have slowed down.” He also explains that there are emerging independent travelers, and business travelers that are looking to buy a unique or different product as a gift.

These consumers are flexible, intuitive and adventurous and aren’t always drawn to the mainstream brands.

Budd is taking this opportunity in Singapore to help delegates understand South African wines and Japanese sakes.

He notes that there is an interest in sake from a broad range of consumers. His job is to educate the consumer and make it more approachable. He concludes: “The consumer shifts like sand in the desert and we must be agile and prepared to try new things and ideas to earn the sales and deliver customer satisfaction.”

www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

13

Imperial Tobacco

Blu smoke blu launches next-generation e-vaping device in sleek new format

by HIBAH NOOR

myblu’s pre-filled Liquidpods feature 11 flavors in three nicotine levels, including 2.4%, 1.2%, and a nicotine-free option

I

mperial Tobacco’s blu brand launched its new myblu electronic vaping product at retailers across the US in February 2018. blu’s next-generation e-vapor device, which boasts a sleek new form, has a prefilled POD system designed to revolutionize today’s vaping experience, Imperial Tobacco said. blu, a leader in the electronic cigarette industry, said the introduction of its myblu e-vapor device would provide “the utmost satisfying vaping experience available on the market today”. myblu seeks to deliver strong performance in a sleek and compact closed system – with none of the hassle, according to Imperial Tobacco. myblu fits comfortably in the palm of your hand. With a long-lasting and fast 20-minute USB recharge, myblu can be used anywhere at any time.

Featuring new pod technology with pre-filled Liquidpods, changing flavors is designed to be easier with its click-andgo system. myblu boasts the brand’s most expansive flavor range yet. The pre-filled Liquidpods feature 11 flavors in three nicotine levels, including 2.4%, 1.2%, and a nicotine-free option. They include Classic Tobacco, Carolina Bold, Gold Leaf,

Magnificent Menthol, Polar Mint, Cherry Crush, Vivid Vanilla, Blueberry, Blue Ice, Mango Apricot, and Green Apple.

The full assortment of flavors is available for purchase exclusively on blu’s website. In addition, blu’s best-selling flavors such as Gold Leaf, Magnificent Menthol, Polar Mint, Cherry Crush, and Vivid Vanilla are also offered for retail sale in 2.4% nicotine.

Wayne Jones, Senior Vice President Sales Operations at blu’s brand owner Fontem US, said: “Our constant quest for innovation and improvement has been a long-time tenant of the blu brand, and we are kicking off 2018 strong with our firstever product for the growing Pod segment here in the US. We believe myblu is truly the introduction of a next-generation standard in electronic vaping products for the industry.

“Having received continued positive feedback from consumers and selling out of product pre-orders faster than ever before, we are confident that myblu will truly add a game-changing e-vapor device to the current market line-up, answering smokers’ call with product that will transform the way consumers view and experience vaping today.” myblu starter kits, which include the myblu device, one USB charging cable,

14 GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2018

myblu is designed to deliver strong performance in a sleek and compact closed system, according to Imperial Tobacco

and one liquid pod in the Gold Leaf flavor, retail at US$19.99, with mybluLiquidpods including two pods priced at US$8.99.

Following the February 2018 launch, myblu is now available across retailers nationwide in the US. The new product carries a myCARE guarantee — blu’s first lifetime device warranty. This guarantee is only available in the US. blu is available online and in stores across the four largest vapor markets worldwide, including the US, UK, France and Italy. The brand is owned by Fontem Ventures, a subsidiary of the Imperial Brands Group, with international headquarters in the Netherlands and Charlotte, North Carolina.

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