Gulf-Africa Duty Free & Travel Retailing

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The Fifty-One starter kit will retail in duty free for about US$100; a refill cartridge costs US$3 and each can last as long as two pack of traditional cigarettes

Publicly traded pioneer leads electronic cigarette industry

Davidoff sees

success with Puro D’Oro Momentos Davidoff tells Gulf-Africa Duty Free that Puro D’Oro Momentos have received a warm reply in duty free since their launch late last year. Davidoff calls the cigars perfect for “aficionados who, despite being pressed for time, do not wish to forgo the exquisite experience of a spirited and emphatically aromatic Dominican Puro.” Puro D’Oro Momentos boast Davidoff Yamasá wrapper leaves in combination with Dominican binder and the filler tobaccos, making for a spicy, full-bodied smoke with hints of coffee and spices. Davidoff’s Puro The Puro D’Oro cigar line continues to generate D’Oro Momentos strong demand among passengers in the Middle East and Gulf markets. Indeed, the product has been launched via Dubai Duty Free, ATU Duty Free, Syria Duty Free and many others. More channels will come online as the year progresses, asserts Davidoff.

Since 2008, electronic cigarettes have become increasingly popular as an alternative to smoking traditional tobacco cigarettes given the fact that e-cigarettes can be used virtually anywhere. At the forefront of this burgeoning movement is pioneering ecigarette company Vapor Corp. [OTCBB: VPCO], which offers a range of e-cigarette brands—from the rechargeable Fifty-One brand to the disposable Krave brand—to satisfy the varied needs of virtually any smoker. “Vapor Corp.’s e-cigarette brands are distinct from many other e-cigarettes available today, both in terms of the quality and the cutting-edge technology employed,” says Adam Frija, Director of Business Development at Vapor Corp. “Our electronic cigarettes do not emit any second-hand smoke. Instead, our products emit an odorless vapor. Our electronic cigarettes look like, taste like and feel like a cigarette, but they aren't cigarettes." The filter of the Fifty-One contains flavoring, nicotine and an atomizer that essentially vaporizes the nicotine. When you inhale, a microcomputer activates the atomizer and the battery (contained in the white part of the e-cigarette). The end of the Fifty-One even glows when you puff it. Over the last 3 years, Vapor Corp. has crossed into virtually every distribution channel available in the US, such as convenience stores, tobacco shops and supermarket chains. The company also sells direct-to-consumer on its website and has carved out a very respectable niche selling in mall kiosks throughout the US. The worldwide duty free channel is attractive to a company like Vapor Corp. for two main reasons, says Frija: “First of all, airports are very high-traffic areas for retail, which is what any company looks for. Furthermore, e-cigarettes are a perfect fit for the duty-free customer, for the busy traveler on the go. Vapor Corp. has increased its business exponentially year over year since its inception and I have no doubt that both the traveling public and the duty free industry will see immense value in our brands.”

KT&G sets its sights on the Middle East

Given the success of its cigarette brands in Asia duty free, KT&G’s Kelly Song tells Gulf-Africa Duty Free that high-end lines such as ESSE and BOHEM may be a good fit for the Middle East

In a recent conversation with Kelly Song of KT&G, Gulf-Africa Duty Free learned that the company has set its sights on the Middle East for possible future expansion plans. “Our products have proven to be extremely popular in Asia, both in duty free and domestically,” said Song. “We feel that the Middle East may be a good fit our high-quality cigarette lines.” While no concrete plans have yet been laid, KT&G says it remains open to speaking to operators in the Middle East about the possibility of listing its products in the region. Most recently at this year’s TFWA WE in Cannes, KT&G featured the flagship ESSE and BOHEM brands as well as the new brand RAISON. KT&G also showcased the ESSE Compact Slim and ESSE AURA (flavored superslim) brands. Along with its super-slim brand, KT&G is targeting young adult consumers with king size RAISON and BOHEM cigarettes. ESSE sales volume and brand awareness has been growing strongly, KT&G says. ESSE is now sold in more than 40 countries in the super-slim category, appealing to young, trendsetting customers in their 20s. As the female smoker category grows and health awareness spreads, the super-slim, lowtar cigarette market is growing, helping to drive ESSE sales. Selling well in South Korea, the RAISON brand is targeted at consumers in their early 20s. “RAISON provides a clean and smooth fulfillment of smoking through dual charcoal filter and herb flavor,” KT&G says. BOHEM is made with 30% premium cigar leaves and is designed for “delicate smokers who prefer sweet and profound aromas.” The vintage style package design reflects “smokers with a bohemian spirit who have a chic style, professional careers and self-confidence.” www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

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