Gulf-Africa Duty Free & Travel Retailing

MAY 2013 TFWA AP • VOL 23, NO 1

TFWA AP 2013 Outbound Chinese travelers p.12

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DDF at Concourse A p.

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FLEMINGO flies high p.

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AL NASSMA’S p. success

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Letter from the Editor

Regional unification

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he decision, taken in the first quarter of this year, to add Africa to what had formerly been the Middle East Duty Free Association (MEDFA) was a significant move. Indeed, it officially adds a huge and fastchanging market to the association’s scope. And of course, this important change brought with it a new name—The Middle East & Africa Duty Free Association (MEADFA). MEADFA is now a bellwether in the duty free industry across an even bigger part of the globe.

The decision was made during MEADFA’s annual general meeting, at which time Dubai Duty Free Vice President – Operations Sean Staunton was named President. Gulf-Africa Duty Free caught up with Staunton shortly after the announcement and he told us about the positive impact that adding Africa will have on the organization as a whole, and about MEADFA’s plans for the year ahead.

Staunton has added reason to feel upbeat these days. In the first quarter, Dubai Duty Free’s sales hit the US$438 million mark, up a full 12% over Q1 2012. Much of that success was thanks to the recent opening of Concourse A and a large increase in selling space for the operator.

Not everything is so positive, unfortunately. Media outlets covering the March annual general meeting of Bahrain Duty Free (BDF) recorded Chairman Farouk Almoayyed’s concerns over new tobacco labeling laws. The rules require new pictorial warnings for tobacco products. Oddly, while the rules are in force only domestically elsewhere in the Gulf, Bahrain is reportedly alone in extending them to duty free. Almoayyed warns that the laws could chop as much as 20% off profits given that suppliers have yet to provide packaging that conforms with the new rules.

Meanwhile, Jack Daniel’s is riding high in the Gulf with the opening of a unique branded restaurant. In collaboration with regional F&B specialists Emirates Leisure Retail (ELR) and Maritime Mercantile International (MMI), Brown-Forman Global Travel Retail, which owns the Jack Daniel’s brand, recently opened Jack’s Bar & Grill at Dubai International. The concept was developed specifically for the airport’s new Concourse A in Terminal 3. The opening is the latest in a number of retail and F&B openings for MMI-ELR in Concourse A, and the story as whole certainly one of the more heartening successes to come out of the region in recent memory.

Finally, chocolate supplier Al Nassma has been notching up some notable successes as it brings its very specialized brand into duty free. While the Al Nassma name is still relatively new, the fact that it’s the first producer and distributor of camel milk chocolate anywhere in the world has been attracting notice. Al Nassma now has its first café at Al Majlis Dubai to complement its space in Dubai Mall, in addition to retail displays close by the anchor store Galeries Lafayette and in the Mall of the Emirates.

The region has proven to be somewhat of a mixed bag over the first half of 2013, but whether it’s finding ways to capitalize on past successes or overcoming new obstacles, operators and suppliers alike in MENA are nothing if not resourceful. Whatever happens in the months to come, we look forward to reporting on the always proactive moves the travel industry makes to ensure continued growth in this dynamic area of the world.

Kindest Regards, Hibah Noor Editor hibah@dutyfreemagazine.ca

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 2013, Vol. 23, No.1. 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 www.dutyfreemagazine.ca PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca EDITORIAL DEPARTMENT EDITOR Hibah Noor hibah@dutyfreemagazine.ca CONCESSIONS, LIQUOR & TOBACCO EDITOR Ryan White ryan@dutyfreemagazine.ca ASSOCIATE EDITOR Melissa Silva melissa@dutyfreemagazine.ca ART DIRECTOR Patrick Balanquit patrick@globalmarketingcom.ca LAYOUT & PRODUCTION ScheerDesign scheerdesign@gmx.com CONTRIBUTORS Andrew Brooks Claire Malcolm ADVERTISING SALES ADVERTISING & MARKETING MANAGER Kim Carrera kim@dutyfreemagazine.ca SENIOR REGIONAL MANAGER Neelma Hasan nhassan@globalmarketingcom.ca CIRCULATION & SUBSCRIPTION MANAGER Deepa J deepa@globalmarketingcom.ca

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MAY 2013 • VOL 23, NO 1

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Contents 6 9 12 14 18

Qatar Airways enters into strategic F&B agreement with SSP at Hamad International Airport n King Abdullah officially opens new Queen Alia airport terminal n Turkish Airlines records 67% growth in passengers from Kuwait n Bahrain Airport Company holds award ceremony for employees

first camel milk 22 World’s chocolate producer goes global AL NASSMA CHOCOLATE

UAE based Al Nassma Chocolate shares recipe for success as international consumers and travel retail partners develop a taste for a unique product with added value health benefits

TOP STORY: MEADFA

Embracing Africa

26 Brand builder

NABEEL PERFUMES GROUP

The Middle East Duty Free Association formally welcomes Africa into its folds and undergoes a name change to indicate the region’s importance

Nabeel Perfumes gains momentum in Middle Eastern travel retail

DUBAI DUTY FREE

More space, more sales

28 A distinctly Southern experience BROWN-FORMAN

Dubai Duty Free sees selling space—and sales—at Dubai International increase substantially with the opening of Concourse A

Jack Daniel’s debuts unique dining concept in Dubai with the opening of Jack’s Bar & Grill

OUTBOUND CHINESE TRAVELERS

30 Exclusively yours LIQUOR REPORT

Destined to shop The number of outbound Chinese travelers is on the rise, and they’re drawn by long-haul destinations with ample opportunities to shop

Suppliers focus on travel retail with releases targeted specifically at the channel

ABU DHABI AIRPORTS COMPANY

Ensuring growth Abu Dhabi is certainly one of the more vibrant emirates, but ADAC is doing its part to ensure continued growth with renovations at Abu Dhabi International and a growing Air Expo

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LIQUOR NEWS Baileys unveils elegant new bottle design to global travel retail n German Behn Group acquires Danzka Vodka n Le Clos launches a Bordeaux promotion and a money-cannotbuy dream prize n FIX Wines & Spirits launches new Courvoisier Le Voyage de Napoleon with Dubai Duty Free

34 The things that matter most BRITISH AMERICAN TOBACCO

FLEMINGO INTERNATIONAL

Flying high

British American Tobacco considers sustainability crucial to its worldwide business, publishing its 2012 Sustainability Summary Report

Flemingo International has controlling interest in Turkey’s one and only inflight duty free operator Iris Ekspres and sets its sights on increasing sales

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AIRLINE AND AIRPORT NEWS

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TOBACCO NEWS Bahrain Duty Free expects challenges as a result of tobacco law implementation n Habanos releases Romeo y Julieta Petit Churchills in a three-unit aluminum tube n Villiger introduces new color-coded mini and corona cigar line n JTI recognized as top employer n KT&G plans Dubai launch for Tonino Lamborghini Ice Volt cigarettes n J. Cortès releases new products for duty free, gains listings in Kuwait and Qatar

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Top Story: MEADFA

Embracing AFRICA The Middle East Duty Free Association formally welcomes Africa into its folds and undergoes a name change to indicate the region’s importance by RYAN WHITE

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n the first quarter of this year, the Middle East Duty Free Association made an important decision to embrace Africa. The association announced just after its annual general meeting that duty free and travel retail companies from Africa are now welcome to become members. The inclusion of Africa also involved a change in the name of the association to The Middle East and Africa Duty Free Association (MEADFA).

Another important announcement at the meeting was the appointment of Dubai Duty Free’s Vice President – Operations Sean Staunton as President of MEADFA. Gulf-Africa Duty Free had the opportunity to catch up with Staunton not long after this exciting news broke to discuss how welcoming Africa into its folds will positively affect MEADFA and what the organization has planned in the coming year.

Gulf-Africa Duty Free: How do you feel about being elected President of MEADFA? S e a n S t a u n t o n , P r e s i d e n t , M E A D FA : I a m b o t h

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Spirited discussion has been a hallmark of MEDFA conferences in years past, and organizers are hoping that formal recognition of Africa will bring about more participation from the region’s operators and suppliers, thereby enhancing the conference as a whole

“MEADFA has had members from the African continent in our association for a number of years. We wished to formalize this as well as inviting other African travel retail operators into our association. We see it as a natural and exciting progression.”

Sean Staunton, President, MEADFA 6

GULF-AFRICA DUTY FREE & TRAVEL RETAILING TFAP MAY 2013

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Top Story: MEADFA delighted and honored to be elected the President of MEADFA. Having worked in the duty free industry in the Middle East for 19 years, it means a lot to me to have this opportunity to make an impact in MEADFA. GADF: What are your main objectives with regard to MEADFA in 2013?

SS: MEADFA has been very successful over its short history. I wish to continue the excellent level of communication there is within MEADFA. The association has a very dynamic board and a lot is and can be learned from each other’s experiences. I wish to work on the challenges that face our industry.

Furthermore, I believe the Middle East Exclusive [MEE] exhibition is very important to the travel retail industry in the Middle East.

MEADFA is a partner in MEE and I wish to develop MEE to reach its true potential. Developing MEADFA and building on our membership in Africa is also an important objective for 2013.

GADF: I know it’s early days, but do you have any updates with regard to the 2013 MEADFA show? What are you planning?

SS: The MEADFA 2013 conference will be held on November 25 and 26 in Qatar. We plan to have a number of presenters from within the industry who know our business well.

GADF: Why do you feel the inclusion of Africa in the name and organization is important?

SS: MEADFA has had members from the African continent in our association for a number of years. We wished to formalize this as well as invite other African travel retail operators into our association. We see it as a natural and exciting progression.

GADF: How will the inclusion of Africa change the dynamics of the conference? As you mentioned, African operators have participated in years past, so is this just more of a formal recognition of the region’s importance than anything else?

SS: The main objective of the conference is that it is successful and beneficial for the attending delegates. The winning formula of the MEADFA conference will continue. There have been presentations on the African travel retail industry in the past at the MEADFA conference and we plan to build on this.

Tourvest Duty Free: Selwyn Grimsley WDF - Aldeasa Jordan Airport Duty Free: Taleb Izmigna AerRianta International Middle East: Philip Eckles Jordan Duty Free Shops: Haitham Al Majali Dubai Airports Company: Eugene Barry International Duty Free and Trading Agencies Ltd: Sherif Toulan Tax Free World Association: Erik Juul-Mortensen Sherif Toulan of International Duty Free and Trading Agencies Ltd. was appointed as Secretary General of the association. Following the annual general meeting, the designated board nominated the committee officers as follows: President: Sean Staunton Vice President: Taleb Izmigna Treasurer: Eugene Barry

New name, new look Shortly after the annual general meeting, MEADFA announced the revamping of its logo after the change in the name of the association.

“MEADFA’s mission is to serve its members through a permanent instrumental platform to promote the business potential and global standing of the Middle East and Africa duty free and travel retail industry,” said the organization in a statement released to the press.

“Partnering to impact, we are powered to expand. MEADFA aims to create a wider business networking and collaboration platform by growing our membership while maintaining a position as one of the leading duty free & travel retail associations in the world.”

The new MEADFA logo is designed in dark blue and gold, two colors that MEADFA says reflect the openness and the dynamism of the region; the round shape of the logo is meant to symbolize unity, nurturing and wholeness

GADF: What do you feel are the major challenges facing travel retail in the Middle East/Africa? There are no easy solutions, but what can operators and suppliers do in the face of these challenges?

SS: The GSO 246 regulation on tobacco in Gulf states is a major challenge at present. Communication and preparation is key to such a topic, as well as learning from experiences other duty free associations have had around the world. There is tremendous growth in the airports of the Middle East and Africa. Planning for this growth is a challenge, but engagement by the landlord, suppliers and the operator strengthens results.

Fresh faces Also at this year’s annual general meeting, the association elected a new MEADFA committee to serve for the new term, which started in February 2013 and will run to February 2015. The nominated members selected to form MEADFA board for the new term are as follows: Dubai Duty Free: Sean Staunton Emirates Airline: John Sime Qatar Duty Free Company: Keith Hunter International Duty Free and Trading Agencies Ltd: Kamal Toulan 8

“We are proud to introduce our new logo,” said Sean Staunton at the time of the announcement. “We think it is fresh and vibrant and ties in perfectly with the inclusion of Africa.”

Simple and clear, the logo is designed in dark blue and gold, two colors that MEADFA says reflect the openness and the dynamism of the region. The round shape of the logo is meant to symbolize unity, nurturing and wholeness. c

GULF-AFRICA DUTY FREE & TRAVEL RETAILING TFAP MAY 2013

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Dubai Duty Free occupies over 8,000 square meters of prime retail area in Concourse A, bringing the operation’s total retail space in the airport to 26,000 square meters.

Dubai Duty Free

Dubai Duty Free’s Electronics store in Concourse A

MORE SPACE, MORE SALES

Dubai Duty Free sees selling space—and sales—at Dubai International increase substantially with the opening of Concourse A by RYAN WHITE

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oncourse A at Dubai International Airport, which is dedicated to the Emirates A380 fleet, began a phased opening on January 2, 2013. Dubai Duty Free occupies over 8,000 square meters of prime retail area in Concourse A, bringing the operation’s total retail space in the airport to 26,000 square meters.

In what is one of a series of firsts for the retail operation, Dubai Duty Free features a shop in the Emirates First Class lounge at Concourse A. The First Class shop measures 595 square meters in size and features an array of exclusive, high-end and ultra-luxury products.

“A good deal of time has gone into ensuring that there is the right product mix for the first class clientele,” says Dubai Duty Free’s Executive Vice Chairman Colm McLoughlin. “We have a higher number of exclusive high-end and luxury products in the first class lounge including products such as Royal Salute

Tribute to Honor—a whisky that is retailing at US$200,000—which creates a good deal of interest.”

The First Class shop features special display units from the leading luxury brands in the world such as Royal Salute, Johnnie Walker, Chanel, Vertu and others.

Navigating the many options The main retail concourse also features a series of retail firsts for Dubai Duty Free. A dedicated M&M’s shop, which occupies 27 square meters of prime retail space close to the Foodplus & Liquor shop, is destined to keep younger travelers busy and entertained. Concourse A will also feature two retail units selling Emirates airline merchandise to passengers covering a total area of 94 square meters.

Concourse A will also have two Dubai Duty Free Perfumes & Cosmetics shops each

“We have had a very good start to the year and no doubt the opening of Concourse A has contributed towards this. The new facility has been extremely well received by passengers.”

Colm McLoughlin, Executive Vice Chairman, Dubai Duty Free

at either end of the retail area, with a total area of 1,629 square meters. Furthermore, the operator notes that the Fashion category will see some changes with the introduction of new high- end fashion brands, most of which are scheduled to open later in the year.

Concourse A has been divided into East and West zones containing 25 retail areas, including a pre-immigration shop for passengers arriving to Dubai. In Concourse A, Dubai Duty Free will continue to see the duplication policy of having two Foodplus & Liquor shops at either end of the Concourse.

The Liquor shops in particular feature highly stylized furniture for the white spirits along with areas to prominently feature high-end and ultra-luxury brown spirits. The central area in the West Liquor shop features Cognac brands, with Rémy’s Louis XIII occupying a prime section at the center of the prominent feature area. The West FoodPlus shop measures 1,536 square meters in size, while the East Foodplus shop is 1,683 square meters.

“The Gifts from Dubai retail area once again takes center stage at the central side of the main walkway in Concourse A,” explains McLoughlin. “Featuring a wide range of souvenirs, from confectionary to ornaments, the Gifts from Dubai shop is styled in an Arabian theme and covers 376 square meters.”

The Electronics shop occupies 332 square meters and provides customers with the opportunity to sample the latest technology with products openly on display, while the popular Watches and Gold categories collectively occupy 756 square meters in

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Dubai Duty Free Watches sales in the first quarter of this year rose by 23% to reach US$27 million; pictured is Dubai Duty Free’s Watches store in the new Concourse A

Concourse A. Dubai Duty Free also notes that given demand from passengers, a special emphasis has been placed on having two pharmacies at either end of the concourse. Furthermore, there are two “At Your Service” shops for passengers looking for smaller items such as newspapers, water and snacks.

Adding to the offering Along with all the regular brands featured at Dubai Duty Free, a number of new brands have been introduced in Concourse A, including SKII, Bobby Brown, Coach, Michael Kors, Chaumet and Tag Heuer mobile to name a few.

In terms of technology, Dubai Duty Free notes that there are numerous marketing and advertising opportunities for brands in Concourse A as Dubai Duty Free has placed digital screens, managed by Connectiv, at strategic locations across each of the shops in the concourse. The retail areas now have a brand new Digital Media Network which will centrally control the 100+ screens within the retail domain. The network can be used for corporate advertising, the promotion of special offers and for communication to passengers on special occasions such as Eid or Chinese New Year.

First quarter sales up 12% A busy first quarter has seen Dubai Duty Free sales reach US$438 million, representing a 12% increase over the same period last year and signaling an excellent prospect for the retailer’s 30th year of business.

Of course, the opening of Concourse A and the increased selling space that the operator now enjoys has played a large part in the sales increase.

“We have had a very good start to the year and no doubt the opening of Concourse A has contributed towards this,” says Colm McLoughlin.

“The new facility has been extremely well received by passengers.”

Sales in Terminal 3, which is dedicated to Emirates operations, rose by 19% and continues to be the biggest in terms of accumulative sales for Dubai Duty Free, accounting for 61% of total turnover. However, the average spend of passengers in Terminal 1, which accounts for 31% of sales, is higher. Sales in Terminal 2 rose by an impressive 22% for the first quarter.

Liquor, Perfumes and Gold held on to the top three spots category-wise in the first quarter of the year. Significant sales increases were evident in many categories, including Perfumes, which rose by 16% to reach US$67 million. Confectionery sales also rose by 16% to US$36 million, while Electronics rose by 12% to reach US$33 million. Cosmetics sales rose by 13% to reach US$30 million and Watches by 23% to reach US$27 million.

In line with its recent expansion of the retail operation, recruitment at Dubai Duty Free continued apace in the first quarter of 2013 with 648 new sales assistants appointed, bringing the total staffing levels to 5,717.

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An auspicious start to a new chapter

On the day that Dubai Duty Free’s new retail operation opened for business in Concourse A at Dubai International Airport, the operation announced 2012 year-end sales figures of a record Dhs5.9 billion (US$1.6 billion), representing a 10% increase over 2011.

Perfumes retained its position as the top-selling category, with sales reaching Dhs907 million (US$249 million), an increase of 13%—or US$28 million—over the previous year.

The Perfumes category now contributes 15% towards total sales at Dubai Duty Free.

The second highest category was Liquor, which showed an increase of 17% to Dhs871 million (US$239 million), while Gold retained the number three position with sales of Dhs582 million (US$159 million). Tobacco sales reached Dhs476 million (US$130 million), a 10% increase year on year.

Confectionery sales jumped to the fifth position and recorded sales of Dhs465 million (US$127 million), representing an 18% increase over last year. Other steep increases were seen in Electronics, which rose by 13% to Dhs460 million (US$126 million); Watches, which rose 11% to Dhs396 million (US$108 million); and cosmetics, which rose by 14% to Dhs373 million (US$102 million).

Sales increases were seen across all Dubai Duty Free retail areas in all three Terminals. Terminal 1 recorded a 7% increase on overall sales; Terminal 2 sales increased by 15%; and Terminal 3 increased sales by 11%. Finally, sales in the Arrivals retail areas increased overall by 13%.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING TFAP MAY 2013

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Chinese Outbound Traveler

Destined to

SHOP

The number of outbound Chinese travelers is on the rise, and they’re drawn by long-haul destinations with ample opportunities to shop by MELISSA SILVA

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ith China set to be the world’s largest economy by 2021, it’s no wonder that Chinese travelers are gaining popularity in the travel and tourism industry. Along with the Chinese traveler comes wealth, and according to Alexander Glos, CEO of market research consulting firm i2i Group China, 400 million people in China each travel over 500km every year, rendering China the largest domestic tourism market worldwide.

China is the third largest aviation market in the world, with 325 million people flying to the country this past year. Beijing Capital Airport is the second busiest airport on a global scale, handling over 80 million passengers per year, while the airports in Shanghai Pudong and Hong Chow handle in excess of 100 million people, making them the second busiest municipal airports in the world.

Travel trends Based in Shanghai, Beijing and Hong Kong, i2i Group China focuses largely on the patterns and habits of the Chinese world traveler. “The Chinese are learning to travel domestically and more importantly, they’re beginning to travel internationally,” says Glos. In 2012 about 78 million Chinese traveled, some 20% more than in 2011.

According to Glos, Chinese travelers are the highest spenders per capita in the travel industry, spending close to US$7,000 per person.

In addition, Glos says Chinese travelers take longer trips, often for more than 12 days.

One of the top destinations for Chinese travelers is Hong Kong.

In 2012 alone, the city received 16 million Chinese visitors. Macau is also on the list, as it’s the largest gaming destination in the world, bringing in more revenue than gambling hot spot Las Vegas.

Thailand is another top destination, welcoming over two million Chinese travelers, the same as Malaysia. Taiwan had just over a million Chinese visitors.

“In Indonesia, the largest international visitors to Bali are Chinese,” says Glos. “In 2012, the Alexander Glos, CEO, UAE tracked 225,000 Chinese i2i Group China visitors, which is an increase of 12

For 17% of Chinese travelers, shopping is purely for gift giving

over 40% from a year prior.” In terms of long-haul destinations, Australia, France and Germany combined lead the way, having attracted five million Chinese travelers in 2012. The US attracted 1.5 million, an increase of 40% from 2011.

Market shares The growing numbers can be broken down into three markets: the group market, the FIT market (independent or individual travelers and couples) and a new market, which is growing rapidly, the MICE market.

“We’re talking about people that are attending meetings, conferences and exhibitions,” says Glos in defining the MICE market. “The group market is the largest outbound segment, which typically includes older travelers over the age of 35.” Glos says the group market largely comes out of what can be called “second tier” cities in China.

“The first tier cities are Beijing, Shanghai and Guangzhou; second tier cities are interior cities—about 26 cities with over five million people,” says Glos. Most importantly, the FIT market is the fastest growing outbound sector coming from China presently. “These independent travelers tend to be younger, with an average age of about 30,” he says.

“They are university educated and work for international companies.

They’re usually comfortable with English and travel for business.”

The newest sector, the MICE market, is comprised of the highest spenders, spending on average over US$12,000 per person per trip, and US$145 on average per night on hotels. In addition, the MICE market is traveling longer that the other sectors. “In 2012, over 200,000 MICE tourists will travel largely to Southeast Asia,” says Glos. “This market is starting to grow into North America, Europe and the Middle East.”

International investment Whether looking specifically at the group market, the FIT market or the MICE market, the number one activity for all Chinese travelers is shopping, which is done predominantly while traveling abroad. Sixty eight percent of Chinese travelers say the primary reason they travel abroad is to shop. “Today, the Chinese account for only 10% of luxury sales in China,” says Glos. “Forecasts predict that in 2020, 44% of global luxury sales will be conducted in China.”

On average, 25% of tour groups and tourists who travel from China to France and Italy are traveling specifically to go shopping, and the number of female shoppers among these groups is increasing. “The average spend per outbound Chinese tourist on shopping alone is

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US$1,500,” says Glos. “That equates to US$40 billion globally.” In France, 27% of premium products are bought by Chinese tourists, while in Hong Kong, that percentage rises to 30%. Additionally, Chinese tourists purchase 18% of the world’s gold supply.

Chinese travelers shop internationally for prestige, even though you can easily purchase a brand such as Louis Vuitton in Shanghai and Beijing. “It’s much more prestigious to buy it in Paris, where you can have your picture taken in front of the store,” says Glos, which explains why the top shopping destinations for the Chinese traveler include London and Paris. The experience of the purchase itself is important for this traveler.

Price is also very important, and import duties on products into China range anywhere from 50% to 125%, which makes the price differential to purchase abroad compelling. If you are planning to buy US$15$20,000 worth of goods, the differential pays for the cost of the trip.

Price aside, another motivation is selection. “The Chinese perceive that there is a far greater amount of choice available overseas, which isn’t always true, but they certainly believe that,” says Glos.

Maintaining rank According to Glos, China has over one million millionaires—not in terms of assets, but in terms of money in the bank. “These millionaires on average are 15 years younger than millionaires in Europe or North America,” says Glos. The high percentages of Chinese travelers shopping abroad will therefore likely not change, not only thanks to the disposable income of these travelers, but also the reason behind such large scale spending—status.

“What’s driving this crazy shopping for the Chinese? It’s a trophy of success,” says Glos. “China is becoming wealthy very fast and disposable income is on the rise. Urbanization, economic growth and disposable income in the second and third tier cities are all growing rapidly.”

For 17% of Chinese travelers, shopping is purely for gift giving. In Chinese business and politics, giving gifts as part of a business relationship is absolutely critical. This explains why 37% of accessories purchased are gifts and why 60% of watch sales in the US are being sold to Chinese tourists, which has basically kept the industry afloat.

Singapore has turned out to be the top destination for buying luxury watches and jewelry.

“We’re seeing an increased diversity of shopping,” says Glos. “It’s not just premium products; it’s also electronics.”

Real estate is also showing up at an increasing rate, which demonstrates the financial clout behind the Chinese consumer’s desire to enjoy an international lifestyle.

The shopping patterns of Chinese travelers have rendered them the world’s biggest tax free shoppers, according to Tax Free fund provider Global Blue. “Chinese tourists generate the biggest tax free sales globally,” says Glos. “Last year they chalked up more than US$3 billion in tax free Sixty eight percent of Chinese travelers say shopping transactions.” the primary reason they travel abroad is to shop

Paying it forward As for the future of Chinese outbound shopping, Glos believes that it will be driven by domestic conditions and factors inside China.

According to Glos, the country’s economy is continuing to grow at an impressive pace, and this growth will escalate in the next three to five years, which can only translate to more shopping.

“Chinese shopping will continue to grow in excess of 20% at least in next three years,” says Glos. “Some of our research suggests that the Chinese economy will have to basically slow to about 1% growth before you can see any type of drop in Chinese shopping around the world, because the shoppers coming out of China just aren’t going to be affected by a slowdown of a small portion compared to a radical slowdown in the Chinese economy.”

Although three categories have been defined, it’s not always easy to identify exactly who the Chinese shopper is as many different kinds of people travel out of China today. “It’s the 30-year-old who is looking for a certain type of product, it’s the 50-year-old who is looking for a completely different offer,” says Glos. “It’s entirely possible for them to be buying a high-end bag at Louis Vuitton and then go to a shopping warehouse in the afternoon and buy socks and underwear at the cheapest price they can find. It’s a very diverse market.”

There’s an increased seasonality in the market, and a lot of premium brands are claiming that the biggest season for sales has become the first quarter of the year, not the fourth, since Chinese New Year is celebrated in February. In fact, in February 2012 during Chinese New Year, the national railways sold 1.1 billion tickets. To put that into perspective, German national railways move that many people in five years.

“We’re seeing an increase in October due to national day holidays, which is a large outbound travel period, and of course June, July and August—these are the primary outbound travel periods for the Chinese,” says Glos. This explains why two years ago in June, Louis Vuitton stores in Paris reported three consecutive months of business thanks to the Chinese buyers visiting their stores.

There are also some companies who have developed products specifically for the Chinese market, such as Estée Lauder. The company is said to be developing an entire range for Chinese consumers.

Looking to future trends, Chinese living abroad seem to be behaving just like Chinese shoppers coming out of the mainland, a phenomenon that has become evident in several markets. As a case in point, the current number three entry point into the US for Chinese visitors is the highway between Vancouver, British Columbia and Seattle, Washington—which demonstrates that Chinese nationals who live in Vancouver are driving across the border to shop.

If current trends are anything to go by, the Chinese traveler’s financial clout and love of shopping are going to be even bigger market-makers in the years to come. c www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

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ADAC

The recent expansion project for Terminal 3 at Abu Dhabi International is designed to ensure the airport can handle increasing passenger numbers until the 2017 delivery of the Midfield Terminal Complex (pictured)

ENSURING

QGROWTH

Abu Dhabi is certainly one of the more vibrant emirates, but ADAC is doing its part to ensure continued growth with renovations at Abu Dhabi International and a growing Air Expo by RYAN WHITE

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bu Dhabi Airports Company (ADAC) recently released Abu Dhabi International Airport’s traffic report for February 2013, indicating a 13.1% growth in passenger traffic over the same period last year, with over 1.2 million (1,221,686) travelers passing through the airport. Aircraft movements in February also grew by 7.5% over the same period last year, totaling 9,960 movements, and cargo volume increased by 16.7%, reaching 50,020 tons.

Commenting on the traffic report, Ahmad Al Haddabi, Chief Operating Officer at ADAC, said: “The significant increase in passengers, aircraft and cargo volumes is in line with the anticipated growth trend for Abu Dhabi International Airport. ADAC’s ongoing investment in improving facilities for every business and leisure traveler, alongside its comprehensive airline marketing strategy, are ensuring that the award winning airport continues to provide the needed facilities and capacity whilst attracting new airlines and launching new routes.”

India recorded the highest traffic for the capital’s airport in February 2013, with traffic growing by 9.1% over the same period last year, followed by Germany, then Thailand, Saudi Arabia and Pakistan.

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The AED84,040,082 (US$22.8 million) joint venture between Taylor Woodrow and Abu Dhabi contractor Fibrex Construction Group will see extensive upgrades at the airport’s Terminal 3. Commencing in March 2013, the 12-month project includes the addition of two new passenger buildings and a link bridge.

A 6,015-square-meter bus gates building will provide a lounge area for 2,000 passengers and serve as the transfer facility between Ter-

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Abu Dhabi International enjoyed 13.1% year-on-year growth in passenger traffic during February 2013, with over 1.2 million (1,221,686) travelers passing through the airport

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ADAC

A growing force Proof of the vibrancy of the aviation and duty free industries in Abu Dhabi is the fact that ADAC has confirmed that the total value of sales at Abu Dhabi Air Expo 2013, the region’s only general aviation exhibition, reached in excess of AED3 billion (US$817 million). The successful show, which ran from March 5 to 7 and was celebrating its second year, also saw a 30% increase in attendance, with 13,000 visitors and 160 exhibitors from local, regional and international companies participating.

The opening ceremony was held under the patronage of His Highness Sheikh Hazza bin Zayed Al Nahyan, National Security Advisor and Vice-Chairman of the Abu Dhabi Executive Council, who attended alongside H.H. Sheikh Surour bin Mohammed Al Nahyan; Sheikh Hamdan bin Mubarak Al Nahyan, 16

A Memorandum of Understanding (MoU) was signed between ADAC and Royal Jet at Abu Dhabi Air Expo 2013 that will facilitate the expansion of the airline’s operations into Al Bateen Executive Airport

Minister of Higher Education; Sheikh Sultan bin Tahnoun Al Nahyan, Chairman of Abu Dhabi Tourism and Culture Authority; and Sheikh Zayed bin Sultan bin Khalifa Al Nahyan.

Several important contracts were announced during the Air Expo, including a seven year contract between ADAC and Global Aerospace Logistics (GAL) to provide civil air navigation services at ADAC’s five airports starting May 1 of this year. A Memorandum of Understanding (MoU) was also signed between ADAC and Royal Jet, an Abu Dhabi-based international luxury flight services company chaired by H.E. Sheikh Hamdan Bin Mubarak Al Nahyan, which will facilitate the expansion of the airline’s operations into Al Bateen Executive Airport.

Other exhibitors also used the show as a platform to announce their latest innovations, agreements and ventures, with key signings including FlightSafety International and GAL signing a deal associated with training, and SPA and Private Air signing a deal related to cabin excellence.

Exhibitor satisfaction was clearly demonstrated through a 70% registration rate from this year’s exhibitors for next year’s event. Members of the community were also given opportunities to engage in the busy

Air Expo programme and ADAC welcomed hundreds of students from various colleges and institutions in Abu Dhabi to learn about what the aviation industry has to offer the next generation.

Yousif Hassan Al Hammadi, Chairman of the Organizing Committee for Abu Dhabi Air Expo and Deputy General Manager, Al Bateen Executive Airport, said: “ADAC is delighted with the growing success of Abu Dhabi Air Expo, as Abu Dhabi’s position as a key aviation hub for the region grows. The atmosphere of the week, exhibitor registration for next year’s show, the number of visitors welcomed and the generated sales value are all clear indications that Air Expo has an essential place in the regional aviation calendar.

“Al Bateen Executive Airport looks forward to Air Expo 2014, providing regional aviation enthusiasts with a rare opportunity to view the best products that the industry has to offer, and providing global aviation leaders with a platform to grow their businesses and engage with potential partners,” he added.

Visitors to the show also enjoyed a daily air display performed by Al Fursan Aerobatic team and Emirates Sky Diving team along with a daring display by the famous Captain Zoltan Veres, owner of five Guinness World Records in aerobatic displays. c

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minal 3 and remote aircraft parking positions.

The building’s first floor will be fitted with a 3,200-square-meter Etihad Business Lounge.

Additionally, a steel framed passenger link bridge will connect the building with Terminal 3’s departures level.

A second building will house the transfer passenger screening facilities. The steel framed structure will add 2,700 square meters to the existing terminal with matching architectural expression. The full project is planned to be completed and delivered by February 2014.

“ADAC is committed to providing best of services to its customers from airlines and passengers despite the existing capacity challenges,” said H.E Ali Majed Al Mansouri, Chairman of ADAC. “In 2012 the airport saw 18.9% growth in passenger traffic compared with 2011, and with the strong growth registered till date; traffic in 2013 is expected to follow last year’s growth trend.

“The new works at Terminal 3 will extend the handling capacity of its facility, accommodating the movement growth of Etihad Airways and other carriers operating from this terminal. ADAC will continue with its CEP to ensure the best solutions are made available, enabling an efficient operation at Abu Dhabi International Airport until the MTB is delivered in 2017,” added Al Mansouri.

Simon Jewell, Operations Director UAE for Taylor Woodrow International, said: “We are delighted to be working with Abu Dhabi Airports Company on this exciting project and being part of the continued expansion plans for this airport. Our company has a strong track record internationally in the delivery of airport-related projects and we are pleased to be able to utilize our expertise on this contract.”

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Flemingo Duty Free

Flemingo’s team in Turkey is dedicated to increasing inflight sales significantly at Iris Ekspres

Flying HIGH Flemingo International has controlling interest in Turkey’s one and only inflight duty free operator Iris Ekspres and sets its sights on increasing sales by RYAN WHITE

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lemingo International has announced that it is now the super majority shareholder of Turkey-based Iris Ekspres.

Flemingo, well known in duty free circles throughout the world, has been a majority shareholder in Onurair since 2010.

Back in 2001, Onurair founded an inflight duty free company called Iris Ekspres. “With over a decade of experience in the industry, Iris Ekspres currently works with nine airlines—SunExpress, Pegasus, Sky, Onurair, Corendon, Freebird, Atlasjet, Tailwind and airberlin,” says Sanay Levent Sanay, CEO of Flemingo’s Turkey operations. “These airlines handle 165 aircraft with a total seating capacity of 31,463, and they are operated from seven locations within Turkey.”

Foreign tourist arrivals increased significantly in Turkey between 2002 and 2012, from 12.8 million to 31.8 million, which made Turkey a top ten destination in the world for foreign visitors. In 2011, Turkey ranked as the sixth most popular tourist destination in the world and fourth in Europe according to the UNWTO World Tourism barometer. As such, the potential in inflight duty free is clear.

“One of the most important advantages that Iris Ekspres enjoys is exclusivity on inflight duty free for carriers based in Turkey,” Sanay continues. “Furthermore, the company has the expertise required to work with these airlines, backed by years of experience and the infrastructure with which to run the operation profitably and successfully. For example, Iris Ekspres has its own airline trolleys, fully trained warehouse staff and an information system substructure that has been customized for this specific line of business.”

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Iris Ekspres currently stocks around 700 SKUs in a variety of popular duty free categories such as Tobacco, Confectionery, Accessories, P&C, Spirits and Toys. “The average spend per PAX stands at just over €3 (US$3.85) and is steadily growing,” says Sanay, who is bullish about sales this year. “In 2011 alone the company served over 14 million passengers, so we’re very pleased about future prospects.

This year we’re targeting a turnover growth of 30% over 2012, which is a dramatic escalation compared to the 4.1% growth expectation of Turkey’s overall economy in 2013.

Key to increasing sales this year is the fact that Iris Ekspres has destination-specific offerings, allowing the company to cater to the various needs of different nationalities and traveler types. Furthermore, as a means of ensuring that transactions in the air are as seamless as possible, all Iris Ekspres inflight sales are processed using handheld devices running the highly reliable Verifone sales software, designed specifically for inflight use.

For Sanay, the final piece of the puzzle—

and certainly one of the most important—is the people behind the operation. “We have over 100 dedicated staff members working across our numerous offices in Turkey,” he explains. “While these employees handle the loading and off-loading of aircraft, we also have a very good relationship with the cabin crews. Clearly, proper training of the crew is extremely important if we’re to meet our sales goals.”

Iris Ekspres training sessions for cabin crews generally focus on passenger interactions and selling. Iris Ekspres contracts the training sessions out to a highly reputable firm that also does training for the likes of Philip Morris, Diageo, Paco Rabanne and others. Finally, when it comes to making sure that salespeople stay motivated, Iris Ekspres offers some very competitive incentives that include product bonuses, overseas vacations and electronic gifts such as computers and flat screen televisions.

“Iris Ekspres is one of a very small number of companies to have its own infrastructure in place as opposed to using third party solutions,” says Sanay. “Indeed, Flemingo International sees a very bright future for the company in this dynamic region of the world.

“However, our goal is not limited to this region,” Sanay concludes. “Within the next five years our plans are to become one of the major inflight duty free operators worldwide.

We have the knowhow and the passion to expand our high-quality services beyond our borders.” c

Iris Ekspres currently works with nine airlines, including Freebird

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Airport/Airline News

Qatar Airways enters into strategic F&B agreement with SSP at Hamad International Airport

Qatar Airways has signed a joint venture with SSP, The Food Travel Experts, to work with its subsidiary Qatar Duty Free to operate 11 F&B outlets at the new Hamad International Airport in Doha. The project will be SSP’s first business venture in Qatar and is for a seven-year term worth over US$190 million in revenue.

The new outlets, which will begin trading toward the end of 2013, will include a number of internationally renowned brands alongside a selection of SSP’s own concepts in a mix that has been designed to appeal to the airport’s cosmopolitan visitors, of which a large proportion are transit passengers.

Qatar Airways Chief Executive Officer Akbar Al Baker said: “We are delighted to enter into this significant strategic partnership with SSP to operate food and beverage outlets at Hamad International Airport, the State of Qatar’s brand new airport in Doha. SSP has shared our vision for the airport and has really delivered an outstanding mix of brands that will fit with our passenger mix. The outlets will cater to a diverse customer base, young and old, visiting or flying through this great new iconic airport which is set to become fully operational by the end of the year when Qatar Airways moves its entire operations to the new facility.”

Doha’s exceptional growth in passenger traffic in recent years along-

“SSP has shared our vision for the airport and has really delivered an outstanding mix of brands that will fit with our passenger mix.”

Akbar Al Baker, CEO, Qatar Airways side its aggressive expansion plans make it a perfect fit for SSP as it develops its presence in the region, as Andrew Lynch, CEO of SSP, explains: “Hamad International Airport will serve one of the world’s fastest developing economies, offering considerable potential for building our business in the Middle East. Passenger traffic at Doha has been expanding at an impressive rate in recent years, and this new facility will allow this growth to continue in the future. The new venture will continue to strengthen SSP’s presence in the Middle East and Asia. When Hamad International Airport welcomes its first passengers, it will be one of the most high profile openings of the decade, and we’re delighted to be taking this exciting step into the Qatari market.”

King Abdullah officially

opens new

The new QAIA terminal measures 103,000 square meters and can service 12 million passengers per year

Queen Alia airport terminal King Abdullah inaugurated Queen Alia’s airport terminal during a ceremony at the airport as guests including Her Majesty Queen Rania, senior officials and diplomats, looked on. The Jordan Times reports that the terminal was touted as the new gateway to Jordan, set to boost the country’s economy and strengthen commercial exchange.

“The old terminal is no longer capable of meeting the rising demand and turnout by passengers,” Transport Minister Alaa Batayneh was quoted as saying. “Opening the new terminal is a milestone for Jordan and will help meet passengers’ requirements.”

The new terminal measures 103,000 square meters and can service 12 million passengers per year, compared with the old terminal’s 3.5-million-passenger capacity. In phase one of the terminal’s development, the news source reports that seven new contact stands and one temporary remote boarding lounge will initially be opened, serving an expected seven million passengers.

Demolishing the airport’s old terminal will reportedly trigger another phase of the expansion plan, increasing the total capacity of the new terminal to nine million passengers annually.

Daily flight capacity at the airport will increase from 110 in 2006 to a forecasted 180 in 2018, while the number of destinations to and from the airport rose from 40 in 2006 to 61 in 2012.

An investment of JD500 million (US$705 million) has already been made to develop the airport, and the total cost will reach JD700 million (US$987 million) by the time the project is completed.

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King Abdullah inaugurated Queen Alia’s airport terminal during a ceremony at the airport as guests including Her Majesty Queen Rania, senior officials and diplomats, looked on

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Turkish Airlines

records 67% growth in passengers from Kuwait

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urkish Airlines, the national carrier of Turkey, recorded passenger traffic growth of 67% in Kuwait during 2012 compared to 2011, sustaining the momentum that the world’s fastest growing airline has reported across the Middle East and in Kuwait.

A celebratory event was held in Kuwait City to honor travel agents for their contribution to driving passenger traffic and to announce expansion plans. The gala dinner, held at JW Marriott Hotel Kuwait City, was attended by Turkish Embassy representatives, Kuwait Civil Aviation and other country ambassadors. Leading travel agents in Kuwait attended the event, which included a ceremony announcing 12 awards for best performance.

Turkish Airlines provided an overview of expansion plans in Kuwait, announcing a gradual increase to around 35 flights a week over the peak summer season, more than double the current fourteen weekly flights. With a new average of five flights a day, Turkish Airlines says it will offer “flexible times, competitive prices and access to more countries than any other airline.”

Building on the recent growth achieved by Turkish Airlines in terms of passenger traffic from Kuwait, the airline increased the number of seats on flights to and from the country by 77% in 2012.

Adem Ceylan, General Manager for Turkish Airlines in Kuwait, said: “The travel industry has been integral in contributing to the robust growth of 67% in passenger numbers from Kuwait in 2012, highlighting the rising importance of Turkey as a business and leisure destination.

“The increase in passenger numbers is testament to the growth in demand from both business and leisure travelers to Turkey and beyond, and we are confident that with our award-winning inflight

service and competitive pricing the upward growth will continue,” Ceylan continued.

“We are delighted to celebrate the achievements of our partner travel agents in Kuwait, who have contributed to the rapid expansion of the Turkish Airlines network in the region, and to the airline’s 221-destination network—the largest country network in the world,” he added.

The construction of Turkey’s new airport in Istanbul, recently heralded as the largest in the world, is paving the way for further expansion of Turkish Airlines’ operations worldwide and across the Middle East, where the airline currently flies to 31 destinations. The airline has also seen an uptake in tickets purchased to Istanbul’s Sabiha Airport on the Asian side of the city, due to competitive ticket prices from Kuwait.

The company’s growth is in line with the recent IATA announcement that Middle East airlines posted the strongest growth rates for January this year, outperforming the global industry average by tapping into demand from emerging markets.

Turkish Airlines also recently launched The Turkish Corporate Club (TCC) in Kuwait, which provides corporations with benefits including competitive rates, exclusive discounts, free luggage allowance and flexibility.

Bahrain Airport Company

holds award ceremony for employees In celebration of fresh milestones, Bahrain Airport Company (BAC) recently held an award ceremony at the Movenpick hotel to honor employees who contributed to the successful hosting of large numbers of fans during the Gulf Cup Tournament 2013, as well as streamlined the arrival of VIP delegates during the meeting of the Supreme Council for the Cooperation Council for the Arab States of the Gulf.

Ninety-six employees from the Airport Operations Department were awarded by Mohamed Yousif Al-Binfalah, CEO of BAC, who praised staff capabilities in managing the remarkable increase in air traffic and passengers during the events.

Bahrain International Airport recorded a significant increase in

passenger traffic during the Gulf Cup Tournament, with more than 20,000 football fans arriving via commercial and chartered flights to support their teams. BIA and BAC staff worked to ease traffic movement and provide an optimal travel experience, whether that meant allocating extra numbers of staff or liaising with relevant authorities in the public and private sector.

Al-Binfalah said: “BIA is the gateway to the Kingdom and it connects Bahrain to the rest of the world. Therefore, the accumulated efforts of the team in welcoming and receiving visitors play a leading role in promoting Bahrain regionally and internationally during prestigious events such as the Formula One, an internationally renowned event that attracts thousands of travelers from around the world.”

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

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Al Nassma

Al Nassma guarantees quality control every step of the process in making its chocolates

World’s first camel milk chocolate producer goes

global

by CLAIRE MALCOLM

UAE based Al Nassma Chocolate shares recipe for success as international consumers and travel retail partners develop a taste for a unique product with added value health benefits

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relative newcomer to the premium confectionery market, launched in 2008 after years in development, Al Nassma Chocolate is fast making a name for itself on the international travel retail front as the world’s first producer and distributor of camel milk chocolate.

Using milk produced by 3,000 resident female camels at the Camelicious farm, located in the hinterland of the emirate of Dubai, Al Nassma’s growing range of quality gourmet chocolate offers more than mere curiosity value.

“The benefits of camel milk are that it has half the fat content of cow’s milk, five times more vitamin C, and is a good alternative for lactose intolerant or diabetic consumers – with no known allergies,” says Patrick Dorais, Al Nassma’s Director of Sales.

“Our products are also guaranteed halal and are free of artificial

Al Nassma has its own location in prestigious Dubai Mall

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Al Nassma’s General Manager Martin van Almsick says the company has created an entirely new category with camel milk chocolate

flavors and preservatives,” he adds.

With the camels collectively producing up to 4,000 liters of milk per day, a large percentage of which is pasteurized and sold locally under the Camelicious brand, mass chocolate production is not an option, but for Martin van Almsick, Al Nassma’s General Manager, this enhances the product’s premium positioning.

“We are one of the fastest growing confectionery brands in the UAE and our strategy is about staying premium. Every other brand in travel retail you also find in the supermarkets, but a major differentiator for us is the fact that we are a true travel retail exclusive. Concourse A at Dubai International Airport has been a game-changer, and we already have three camel displays sited in all their shop locations,” he says.

Currently sold through Dubai Duty Free, Abu Dhabi Duty Free and Muscat Duty Free, Al Nassma has moved beyond regional borders, and is also to be found in several premium Japanese and Chinese department stores, plus gourmet food retailers in Kuwait, France, Switzerland and the US. “For new markets we have adopted a measured approach. The merchandising and positioning of Al Nassma are very important, as is staff training and awareness; plus we always need the right partner -someone who understands and is aligned with the brand philosophy,” remarks Dorais.

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©2013 The Hershey Company

Discover HersHey’s portfolio of iconic global brands and innovative Travel retail exclusive products. ®

These travelers’ favorites are joined in 2013 by premium BrOOKsIDe chocolates, made with smooth ®

dark chocolate-covered real fruit juice pieces offering unique flavor combinations.

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Al Nassma

Al Nassma uses milk produced by 3,000 resident female camels at the Camelicious farm, located in the hinterland of the emirate of Dubai

“Distribution is selective and we’re also in key tourist attractions like Ferrari World in Abu Dhabi, At The Top in the Burj Khalifa – the world’s tallest building – and are the only chocolate sold at Burj Al Arab hotel, as well as in high profile five-star hotels including the Emirates Palace and Jumeirah properties,” he continues.

Al Nassma also has its own location in Dubai Mall, where it recently opened its first café Al Majlis Dubai, with a separate retail display near anchor store Galeries LaFayette, and a second situated in the popular Mall of the Emirates.

The product range plays on traditional flavor combinations as well as incorporating essentially Middle Eastern ingredients into its signature fillings such as fustuk halabi pistachios from Syria, cardamom and Arabic coffee. Quality sourcing is key to the high-end positioning, and authentic Bourbon vanilla, the finest acacia honey and macadamias are also used.

An ever-growing range of products includes a selection of five different 70-gram flavored milk and dark chocolate bars; pistachio, nougat and coffee cream pralines; camel-shaped pralines sold in a wooden gift box; and the brand’s iconic hollow gold-wrapped chocolate camel.

“Our latest release is the new nut edition; with three 70-gram bars in white chocolate with pistachio and vanilla, a milk variety with hazelnuts and cinnamon, and a rich dark chocolate version with whole almonds

and suggestion of cardamom,” says Dorais.

Al Nassma controls 100% of the manufacturing process, from raw material selection through to the finished product, working both with a local team and master chocolatiers in Europe, with the finished product aimed at the premium end of the market, and retailed alongside established brands like Godiva, Neuhaus and Valrhona.

Regional and international interest in the brand is taking Al Nassma into new markets, as Dorais explains: “We launched in Muscat in December 2012 with a single camel display and they’ve already asked us for a second one; and Qatar Duty Free at Doha airport is launching mid-April.

“We are also starting in Kuala Lumpur very soon, once the new airport opens, and are talking to other GCC countries. We’ve grown by 25-40% year-on-year so far, and have budgeted to increase sales by up to 50% this year.”

“We’ve created an entirely new category with camel milk chocolate,” says van Almsick, with a smile. “Rather than concentrating on the halal angle or low-fat benefit, our brand proposition is based on the gifting aspect and positioning Al Nassma as a 100% UAE product.” c

Camel Karma The company’s latest release is the new nut edition; with three 70-gram bars in white chocolate with pistachio and vanilla, a milk variety with hazelnuts and cinnamon, and a rich dark chocolate version with whole almonds and suggestion of cardamom

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“Only happy camels give good milk,” says Martin van Almsick, Al Nassma’s General Manager, and the state-of-the-art ISO22000 farm prides itself on providing its all-female ‘workforce’ with the best hay and grass, access to a four kilometre-long walking trail, team of top veterinarians and five-star ‘spa’ benefits including special soaps, shampoos and regular pedicures.

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Nabeel Perfumes Group’s head office in Dubai, UAE

Nabeel Perfumes Group

Brand builder Nabeel Perfumes gains momentum in Middle Eastern travel retail

Dubai-based luxury fragrance manufacturer Nabeel Perfumes Group recently gained a strong foothold with Dubai Duty Free operated stores, listing its products across Dubai International Airport’s departures terminals 1, 2 and 3 in the perfume section.

This department is close to the boarding gates, giving travelers an opportunity for last minute shopping before they board.

“I am confident that our association with Dubai Duty Free will prove to be a success.

We pride ourselves in giving the customer high quality luxury products at fantastic prices,” says Asghar Adam Ali, Founder and Chairman of Nabeel Perfumes Group.

The company’s brand portfolio comprises a range of luxury oriental perfumes as well as a French line of fragrances that go under the name Chris Adams. The perfumes are available in the UAE, Saudi Arabia, Oman, Bahrain, Qatar, Kuwait, Yemen, India and the UK. Nabeel Perfumes is expanding its distribution in the duty free and travel retail channel.

Its first step was to exhibit at the Middle East Exclusive that was held at the Dubai World Trade Center and coincided with the annual MEADFA conference last year.

“We want to connect with Sharjah and Nabeel’s Khaltat Al Shyookh is available in edp and oil perfume

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Abu Dhabi Duty Free,” explains Murtuza Fakhruddin, President-Group Operations, Nabeel Perfumes Group.

Currently the company has a presence in Ras-al-Khaimah Airport Duty Free with a 4 X 4 meter Nabeel kiosk and sales have been increasing. “The airport has increased its flights, which has helped, and the best part of it is that there are not only Arabs moving through the airport—there are also Russians and Indians flying from there,” says Fakhruddin. “We find that Eastern European customers like Arabic products. Most of our products have floriental notes, which doesn’t only pertain to the Arab population. Indians, Asians and Europeans love these types of fragrances, and they’re long-lasting.”

Nabeel Perfumes recently launched Khaltat Al Shyookh which is receiving a good response from the market and is available in edp and oil perfume. The fragrance is a blend of Istanbuli rose, amber, musk, dhanal oudh, sandal and oils from precious woods.

The packaging is inspiredby the traditional Royal attire in a velvet finished box with an elegant crystal bottle.

Nabeel Perfumes Group has been in business for 43 years. The company entered the retail market with oriental fragrances and more recently introduced the Frenchinfluenced counterpart Chris Adams.

“We’ve been very successful with Chris Adams, and it’s now available in more than 100 countries worldwide,” says Fakhruddin.

Nabeel is trying to introduce the brand into all the duty free outlets in the region and globally.

“With Nabeel we found it a bit difficult to get into the French perfumes line. There was no fusion with Nabeel with French perfumes. We got in a designer and designed these products in Paris and London,” says Fakhruddin. “We try to produce good quality perfume. To keep the price down we save on the packaging and have it developed in

by HIBAH NOOR

China.”

The innovative packaging goes a little further than traditional cartons. “We don’t have simple boxes. Our boxes are made out of material that can be re-used for many purposes—they’re made of wood or synthetic leather. Since the customer is paying for everything, why not give them something they can re-use,” says Fakhruddin.

Nabeel is entering the domestic retail market with its own exclusive outlets in the region. The outlets will be named Nabeel and will sell high-end premium Arabian products.

“We’ve started with Nabeel outlets in Dubai Mall, Dubai Outlet mall and in Sahara Center in Sharjah. We should be opening more shops and exclusive showrooms in the next three years. Our goal is to open 20 more stores,” explains Fakhruddin.

“We believe that quality is always the key to success, and we do not charge heavily. We try to maximize the quality of the products at a reasonable price. There are other competitors that are doing other things that are too expensive. Everyone should be able to use a quality product. We want to give a lifestyle product to our consumers.” c Murtuza Fakhruddin, President-Group Operations, Nabeel Perfumes Group at the Middle East Exclusive held last year in November

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Brown-Forman

A distinctly SOUTHERN experience Jack Daniel’s debuts unique dining concept in Dubai with the opening of Jack’s Bar & Grill by CLAIRE MALCOLM

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rown-Forman Global Travel Retail, brand owner of Jack Daniel’s, has officially launched Jack’s Bar & Grill at Dubai International Airport in partnership with regional F&B specialists Emirates Leisure Retail (ELR) and Maritime Mercantile International (MMI).

The first restaurant under the Jack Daniel’s banner, the ELR-operated concept was developed specifically for the airport’s new Terminal 3 Concourse A, which is home to Emirates Airline’s A380 fleet. A contemporary-styled 270-square-metre venue, the bar and grill is a showcase for the brand’s whiskey portfolio and has the added distinction of being the only location outside of the Jack Daniel Distillery in Lynchburg, Tennessee to offer exclusive pours of its signature Sinatra Select.

The idea for the concept was mooted a little over two years ago during a team visit to Tennessee, as Andrew J Day, Group CEO of MMI-ELR explains: “We were in the car with Jim Perry, Brown-Forman Travel Retail’s Managing Director, talking about how we could grow the brand faster in the UAE. “We discussed the retail opportunities and growth at Dubai Airport, which saw 50 million passengers in 2012, and about how we could create a different experience—and so Jack’s Bar & Grill was born,” Day added.

According to Tony McIver, Brown-Forman’s Director MENA/Israel, the airport location was chosen for two reasons. “Dubai is a hub, and 70% of passengers are in transit, so the audience is there. There is also significant volume of passengers from countries that are big for our business, such as the BRIC market, of which India is key.

“The Indian market accounts for 38% of sales of Jack Daniel’s in Dubai, and Indian travelers are therefore an influential segment when it comes to duty free sales,” McIver explains.

Duty free travelers can also personalize bottles of Jack Daniel’s pur-

Developed specifically for Dubai International’s gleaming new Terminal 3 Concourse A, Jack’s Bar & Grill is contemporary in design but boasts an atmosphere of southern hospitality

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(from left) Jeff Arnett, Jack Daniel’s Master Distiller; Andrew Day, Group CEO of MMI and ELR; US Consul General Rob Waller; and Tony McIver, Director MENA/Israel, Brown-Forman Travel Retail

chased at Dubai Duty Free, as well as choose from a range of exclusive branded merchandise unique to Dubai.

Open 24 hours and located at the departure level between Gates A15 and A16, the venue uses sustainable natural materials, including hardwoods and smoked glass bricks, to accentuate the warmth and “Southern hospitality” ambience.

Jack Daniel’s own Master Distiller Jeff Arnett, who flew over from Lynchburg for the grand opening, says: “The mix of cultures in Dubai is as multicultural as our distribution, which currently totals around 140 countries. The opening of the grill gives travelers a unique opportunity to try traditional Tennessee cuisine as well as enjoy a glass of Sinatra Select, and this experience isn’t available anywhere else in the world.”

“Jack’s Bar & Grill represents the next step in Brown-Forman’s campaign to ensure that the Jack Daniel’s experience is available to traveling consumers around the world.”

Jim Perry, Managing Director, Brown-Forman Travel Retail

The grill menu offers authentic Southern cuisine, with signature food items such as pork ribs, JD sliders and a 24/7 breakfast, as well as the ubiquitous Mississippi Mud Pie. “The establishment of the first Jack’s Bar & Grill in Dubai International Airport is a reflection on the vibrancy, sophistication and hospitality of the business climate in Dubai and the UAE,” says John Hayes, Senior Vice President and Global Brand Director for Jack Daniel’s Tennessee Whiskey.

“The growth target for Dubai International Airport this year is 75 million passengers, and this is about building brand presence in the region, as well as making Dubai a travel point of choice,” adds Iain Delaney, General Manager UAE, MMI. “We are excited to bring the first Jack’s Bar & Grill to the world’s traveling consumers and opening it in Dubai International in partnership with Emirates Leisure Retail and MMI,” says Jim Perry. “We look forward to welcoming the millions of travelers who will pass through the new Terminal 3, Concourse A. Jack›s Bar & Grill represents the next step in Brown-Forman’s campaign to ensure that the Jack Daniel›s experience is available to traveling consumers around the world.” c

GULF-AFRICA DUTY FREE & TRAVEL RETAILING TFAP MAY 2013

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2013-04-19 4:44 PM

Liquor Report

Exclusively

by RYAN WHITE

yours

Suppliers focus on travel retail with releases targeted specifically at the channel

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uppliers have long understood the importance of the travel retail channel as a shop window for their brands and have lately begun investing heavily with duty free exclusives as a means of capturing the gifting moment, enticing travelers to self-purchase on a special edition not available anywhere else or simply raising the profile of their brand. Gulf-Africa Duty Free takes a look at five travel retail exclusive spirits products currently making a splash in the industry.

Spirit of exploration The Johnnie Walker Explorers’ Club is based on the spirit of the Travelers’ Room established

by Alexander Walker at the company’s headquarters in the City of London in the 1890s.

Close to the shipping houses and docks from which its agents journeyed the world, they gathered to exchange stories and learnings from their travels, in turn inspiring generations of master blenders.

The Johnnie Walker Explorers’ Club sees the Johnnie Walker and John Walker & Sons Blended Scotch Whiskies displayed in new high-visibility globe-shaped wall bays in travel retail outlets as well as experiential pop-up clubs in selected leading airports. The initiative

will also be supported by striking advertising and activations.

The first offering is Johnnie Walker – The Spice Road Blended Scotch Whisky, an evocative expression of the spices, colors and fruits that the Johnnie Walker agents would have discovered in the thriving markets on their routes around Asia. The packaging around the iconic square bottle, its shape originally designed to reduce breakages as it traveled by ship, has taken similar cues, with a rich color palette and embossed pattern reminiscent of decorative Asian paneling.

The second release, The Gold Route, is crafted from the finest aged whiskies handpicked for a luxurious smoothness and vibrant flavor. The new blend evokes a sense of the exotic fruit flavors and beautiful rich golden colors reminiscent of Latin America. From Central America through the Andean mountains, passing the Inca pyramids and along the coast of the Pacific Ocean, the magnificent scenery and diverse cultures provided inspiration for the Johnnie Walker Master Blender to create a blend of finest aged whiskies gently matured in old American oak casks.

The third release in the Trade Routes Series—Johnnie Walker Explorers’ Club Collection –The Royal Route—will be available

The Spice Road and The Gold Route, the first two releases in the travel retail exclusive Johnnie Walker Explorers’ Club Collection

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exclusively in duty free stores later this year.

At the launch in Cannes late last year, Steve White, Marketing Director of Diageo Global Travel and Middle East, said: “Travel is in the DNA of Johnnie Walker and it is these credentials that we feel will resonate with today’s travelers who are undertaking bold journeys of their own. This travel heritage and pioneering spirit of adventure makes Johnnie Walker the perfect companion for today’s travelers.”

An act of bravery The Dalmore distillery recently launched a new expression called The Dalmore Valour for sale exclusively in travel retail. The spirit is

Launched with a high profile promotional display in Qatar Duty Free in March 2013, The Dalmore Valour and will be rolled out through travel retail outlets exclusively over the course of 2013

named after the Clan Mackenzie’s act of bravery in 1263 when an ancestor of the Mackenzie Clan bravely saved King Alexander III from a charging stag. The grateful King granted the Mackenzies with a Royal 12-pointer stag in their coat of arms. The Dalmore distillery was long owned by The Mackenzie family and every bottle of The Dalmore single malt whisky is adorned with this proud emblem, symbolizing the distillery’s royal pedigree.

A unique blend of three different cask finishes, The Dalmore Valour is matured initially in first fill ex-Bourbon casks from Boston and Clermont, USA and 30 year old Matusalem oloroso sherry butts from Gonzales Byass, Jerez de la Frontera in Spain. The spirit is then finessed in Port Pipes from Duoro Region, Portugal to create a truly unique Dalmore expression.

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Launched with a high profile promotional display in Qatar Duty Free in March 2013, The Dalmore Valour and will be rolled out through travel retail outlets over the course of 2013, priced at £50, €55 or US$72.

“The Dalmore brand has had a stellar year in travel retail and we are proud to say that it is now the fastest growing malt in the channel,” says Travel Retail Director Francesco Scaglione. “This year, we will build on that momentum and continue to work closely with our partners to create innovative products and displays—the first of which is our new Dalmore Valour exclusive.”

Bubbly in a box Taittinger has created new packaging especially made for the duty free market. A new bottle has been designed for Nocturne Champagne, and the company notes that it has been a huge success worldwide since its release.

In terms of last year’s overall business, with over 5.5 million bottles sold and sales up nearly 8%, Taittinger recorded the best performance in its history. The company’s flagship, the Counts of Champagne Blanc de Blancs, progressed more than 50%.

“These good figures that affect all cuvees of the brand can be analyzed in many different ways,” the company says. “The quality of the wine has never been higher and more recognized. Solidity, ambition and passion of joint efforts continue to grow. A general will to innovate, to modernize and animate the brand tirelessly has made Taittinger one of the most dynamic champagne houses.”

Rewarded twice with awards in 2012 by one of the most prestigious packaging design agencies in the world, Taittinger’s bubble gift packs gave the company one of its most successful results last year in terms of sales and marketing. “The changes made reflect Taittinger house’s ambition to become a solid alternative to face the leaders who have traditionally dominated the champagne market,” the company concludes.

Darwinism at its finest Glenfiddich this year released Age of Discovery Red Wine Cask Finish, an adventurous whisky bursting with flavor and inspired by Charles Darwin’s legendary voyage. Left for at least 19 years to mature, this whisky has been finished in casks which previously housed the full bodied red wines produced in South

Glenfiddich Age of Discovery Red Wine Cask Finish is the third innovative whisky in the travel retail exclusive Age of Discovery range

Taittinger reports that its bubble gift packs gave the company one of its most successful results last year in terms of sales and marketing

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America and is available exclusively in Global Travel Retail.

This is the third innovative whisky in the Age of Discovery range, following the famous journeys of the Glenfiddich Madeira Cask Finish and Bourbon Cask Reserve. It marks the first time ever in Glenfiddich’s history that a whisky has been finished in red wine casks.

The Age of Discovery Red Wine Cask Finish takes its influence from the renowned journey of HMS Beagle. Setting sail from Plymouth, England in 1831, its passengers included Charles Darwin, a young naturalist, who was invited onboard to record his observations as they explored the South American coast line.

“This extraordinarily rich single malt Scotch whisky is finished in oak casks previously used to produce the smooth complex wines of South America,” says Glenfiddich

Malt Master Brian Kinsman. “After years of maturation, Malbec, Merlot and Cabernet Sauvignon grapes have combined with the oak to deliver exceptional smoothness, complimented by warm spicy notes with sweet berry flavors lending a velvety sweetness.”

A precious offering Bacardi Global Travel Retail has released a limited edition Baron Otard XO Gold in a special gold-colored pack. The Baron Otard XO Gold Precious Edition is a travel retail exclusive designed to give this outstanding cognac an even stronger presence in stores where it’s attracting a growing following among discerning consumers.

The personality of Baron Otard XO Gold is expressed through the perfect balance of the finest eaux-de-vie. On the nose, its roundness reveals a rich harmony of aromas of dawn woodland, with hints of hazelnut and leather enhanced by touches of honey. On the palate, the flavors are complex, combining all the finesse of the fruity aromas with the sweetness of just a hint of honey, enhanced by the remarkable length of the rancio. Its long stay in red oak barrels gives an amber hue to its natural color.

“The Baron Otard XO Gold Precious Edition is one example of how we are continuing to grow the presence of this exceptional cognac in travel retail,” says Sales and Marketing Director for Baron Otard Philippe Jouhaud.

“As the category continues to experience massive growth in Asia, Baron Otard XO Gold, along with Baron Otard Extra and Baron Otard Fortis et Fidelis, continues to meet the growing demand for higher quality cognacs.

The strong momentum behind the brand in travel retail is continuing to build.” c The Baron Otard XO Gold Precious Edition is a travel retail exclusive designed to give this outstanding cognac an even stronger presence in stores where it’s attracting a growing following

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

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Liquor News

Baileys unveils elegant new bottle design to global travel retail The makers of Baileys, the Original Irish Cream, recently announced the global travel retail launch of a new bottle that evokes the brand’s modern, feminine sense of style. The new bottle has been heightened and the shoulders lifted to give a more elegant profile and pose a more alluring and impactful prospect on shelves worldwide.

The bottle redesign follows the announcement made in October 2012 of the brand’s most ambitious global marketing campaign to date, created

by BBH. The “Cream with Spirit” campaign was launched across TV and print on every continent around the world, with the aim of shining a light on women and celebrating the spirit of modern womanhood.

Garbhan O’Bric, Baileys Global Brand Director,

said: “We have created a beautiful new bottle which is both modern and stylish, with a greater sense of femininity. Baileys is a brand that appeals specifically and uniquely to women, and through this redesign we embrace and celebrate that timeless appeal in a fresh and contemporary way.”

The bottle awakens the powerful and dramatic brand icon—the “Double B”—and elevates its visual prominence.

The new Original Irish Cream bottle also features a fresh interpretation of the iconic label, as well as new typography to compliment the stylish new look.

The new bottle will also house four unique flavors: caramel, biscotti, coffee and hazelnut, which are perfect to add a touch of magic to women’s favorite everyday indulgences and especially delicious poured over coffee or ice cream.

Baileys, the Original Irish Cream, will be available in its new bottle across global travel retail outlets.

FIX Wines & Spirits launches new Courvoisier Le Voyage de Napoleon with Dubai Duty Free

Designed to appeal to modern, discerning consumers whilst tapping into the increasing trend towards luxury products, Le Voyage de Napoleon highlights Courvoisier’s rich, pioneering heritage

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Leading global spirits company Beam Inc, in collaboration with MEA distributor FIX Wines & Spirits, is launching Le Voyage de Napoleon, Courvoisier’s new exclusive global travel retail offering, across Dubai Duty Free stores in June.

Previewed at TFWA Cannes 2012 by brand owner Beam Inc and launched across Europe in April, Le Voyage de Napoleon is a collection of Courvoisier’s renowned VS, VSOP and XO cognacs in new, luxurious packaging that highlights the quality, heritage and craftsmanship of the range.

Designed to appeal to modern, discerning consumers whilst tapping into the increasing trend towards luxury products, Le Voyage de Napoleon highlights Courvoisier’s rich, pioneering heritage intrinsically linked to Napoleon, one of the most famous travelers in history.

The collection is presented in distinctive and opulent packaging, featuring a linear design incorporating gold, burgundy and black. The packaging celebrates the celestial star that the French conqueror called upon for luck at the start of each battle, the symbol which later became central to the design of the Légion d’Honneur, the French military order established by Napoleon.

FIX Wines & Spirits Marketing Manager Céline Cabannes says: “Courvoisier Le Voyage de Napoleon epitomizes luxury and as an exclusive and unique set of Courvoisier cognacs across the price range will appeal to discerning travelers. Dubai is a very important showcase market in our region and this launch is sure to be well received, providing both an exclusive gifting solution and also a ‘must-have’ addition to enthusiasts’ collections.”

The house of Courvoisier has been passionately handcrafting the finest cognac since the reign of Napoleon more than 200 years ago and encapsulates its rich pioneering heritage and expertise with a world-class luxury spirit. Courvoisier is the only cognac house in the world to be awarded the Prestige de la France, the highest accolade for quality in France.

Napoleon is intrinsically linked to Courvoisier. Legend has it that he held Courvoisier in such high regard that he chose it as one of his luxury items when sent into exile. Since then, the title “The Cognac of Napoleon” has proudly adorned each and every bottle.

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German Behn Group acquires Danzka Vodka

Family-owned Behn Group, located in Eckernförde, Germany, recently announced that it has acquired Danzka Vodka, the fourthlargest premium vodka brand in the global duty free and travel retail business, for a nondisclosed price effective April 1, 2013.

The brand was sold by French company Belvédère SA, which has taken the brand to a new level in travel retail thanks to its very motivated Danish team. One member of this team, duty free veteran Torben Vedel Andersen, will join the Behn Group effective May 1, 2013 to continue the growth of the brand.

The deal is the biggest acquisition by far in the 121 year history of Behn Group, which is run by the fourth generation of the family.

Danzka Vodka is available in over 50 markets with a strong focus on volumes in the international duty free and travel retail business. Danzka comes in unique bottles made of aluminum, designed in homage to the world famous Danish design tradition.

Founded in Denmark in 1989, the brand moved to Danske Spritfabrikker, from there to Vin&Spirit and finally to Belvédère.

“Danzka’s long journey has now come to an end,” said Rudiger Behn, Managing Director of the Waldemar Behn Company, the new owner and distributor of Danzka Vodka. “Danzka is going to be one of our main assets, even in the next generation in our company.

Danzka ensures our independency in the liquor industry and will boost our international business, especially in duty free, heavily. And finally, with Danzka we are invested now in one of the largest and fastest growing spirit categories.”

Le Clos has positioned itself as the go-to source for highend wine and spirits at Dubai International and is currently running a new promotion for fans of Bordeaux wines

Le Clos launches a Bordeaux promotion and a money-cannot-buy

dream prize Le Clos is celebrating its recent store opening in Dubai’s new Concourse A with a special offer for customers. Le Clos is giving away a trip to the most revered Châteaux in Bordeaux as part of a fabulous prize that includes two Business Class return flights to Bordeaux; personal tours and tastings at all the first growths; and luxury accommodation at the stunning Château Pichon Baron.

For every AED1,000 (US$272) spent on the following wines, customers will receive one ticket for the Bordeaux draw.

The wines involved in the promotion include Château Lafite; Château Latour; Château Margaux; Chateau Haut Brion; Château Mouton Rothschild; Château d’Yquem; Château Cheval Blanc; Château Ausone; Château Petrus; and Château La Mission Haut Brion.

The Le Clos Bordeaux promotion runs until the end of May, 2013 and the winner will be drawn on May 31 and notified via email.

“Our aim at Le Clos is to provide great value to customers, with exceptional ranges and knowledgeable service— and to excite and reward our customers through really innovative offers such as

the Bordeaux promotion, which marks our recent openings,” says General Manager of Le Clos Ben Odgers. “Our new outlets at Dubai International are ideally located to offer convenient access to our unique, rare and valuable bottles, limited editions and expressions, as well as Le Clos’ highly qualified professional experts, who can guide customers on selections in more than 20 languages, 24 hours per day.”

The new Le Clos flagship store features a range of new elements, including an interactive whisky journey, in-store tasting, bottle engraving and a “bottle your own” option. With its dramatic new store design, complete with a decommissioned Whisky Still feature, Le Clos serves unique, rare and valuable bottles, limited editions and expressions that cannot be found anywhere else.

Le Clos allows customers to reserve their selections before their flights hit the tarmac through their interactive website.

Patrons of Le Clos wanting to discover more about the extensive portfolio are invited to browse through the online cellar, where they will find every product in the extensive range, including in-depth details on each of their unique qualities.

Danzka Vodka is available in over 50 markets with a strong focus on volumes in the international duty free and travel retail business www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

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Company News: BAT

THE THINGS THAT

MATTER MOST British American Tobacco considers sustainability crucial to its worldwide business, publishing its 2012 Sustainability Summary Report by RYAN WHITE

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ritish American Tobacco has released its 2012 Sustainability Summary Report, detailing the progress made on a range of targets and commitments, as well as outlining the areas it continues to focus on to ensure that not only the needs and expectations of society are met, but that the business continues to grow.

The Summary Report also highlights the company’s industry-leading sustainability achievements, ranging from the recently updated International Marketing Principles to the acquisition of an e-cigarette company.

Commenting on the Report, Nicandro Durante, Chief Executive of British American Tobacco, said: “I believe that growth and sustainability go hand in hand—you can’t have one without the other. And to grow our business we must operate sustainably, creating shared value for—and meeting the needs of—our shareholders and society in a challenging and changing landscape. By this I mean seeking opportunities to increase our competitiveness and grow our business while also meeting society’s needs and expectations.

“For years, many public health stakeholders told us that offering smokers less risky products was the most important thing we could do and we are therefore working hard on a range of new nicotine-based products for smokers that will be a critical future growth area for us,” he continued.

“But our sustainability agenda is about more than just one area. It’s about how we conduct our entire business—from how our products are made, starting with the farmers 34

who are at the root of our supply chain, to how they are responsibly marketed,” Durante explained. “This is a very exciting time to be leading British American Tobacco. We are currently developing a new sustainability agenda that increases our ambition and better measures our impacts, and I look forward to our company beginning to write the next chapter in our long history.”

Highlights of British America Tobacco’s 2012 Sustainability Summary Report include: • Inclusion in the Dow Jones Sustainability Index for the 11th consecutive year and achieving industry leader status with an overall score of 88% • The company’s work in biodiversity received the fifth highest score out of 127 European companies in a study by Vigeo, a European ratings agency • The acquisition of an electronic cigarette company • Preparations to launch a regulatory-approved nicotine inhalation product in the UK • The launch of the group’s new International Marketing Principles • 98% adherence to the global approach to youth smoking prevention • 41% reduction in CO2 equivalent emissions in 2012 (against a 2000 baseline) • 25% female Main Board representation in 2012 and 32% of women in management roles • 96% of contracted farmers’ wood fuel for curing did not come from natural forests (against a target of zero use of natural forests by 2015). c

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Tobacco News

Bahrain Duty Free

expects challenges as a result of tobacco law implementation It was recently reported in a number of Gulf-based news sources that Chairman of Bahrain Duty Free (BDF) Farouk Almoayyed expressed concern with regard to tobacco labeling laws at the company’s annual general meeting in March.

The law indicates that pictorial warnings be placed on tobacco products and also sets a limit for the maximum tar and nicotine content. According to reports, BDF says that profits could dip by as much as 20% as a result of the restrictions.

While the rules are in effect domestically across GCC states, it was reported that Bahrain is the only state that imposed these rules on duty free as well. BDF is reportedly arguing for an exemption given that the products are imported.

While BDF can, of course, sell products as long as they contain the appropriate graphics and health warnings, the problem reportedly lies in the fact that suppliers haven’t yet provided the operator with packaging that conforms to the law.

Habanos releases Romeo y Julieta Petit Churchills in a three-unit aluminum tube Following the presentation of Romeo y Julieta Petit Churchills in a 25-unit box in 2012, Petit Churchills are now available in a new presentation: an aluminum tube containing three units.

Romeo y Julieta was created as a Habanos brand in 1875. Its roots lie in the literary tragedy of the same name by the British playwright William Shakespeare. The brand enjoys considerable prestige worldwide and offers the widest range of 100% handmade sizes available in any Habano brand.

The brand also features selected leaves from the Vuelta Abajo zone in Pinar del Río, making it a classic medium-bodied Habano.

Indeed, Winston Churchill was one of the most devoted smokers of the Romeo y Julieta brand. Ever since his visit to Havana in 1946, his name has not only been widely used on Habanos, but also came to represent the bestknown vitola within the brand: the Churchills

by Romeo y Julieta.

Petit Churchills (50 ring gauge x 102 mm in length) is the ideal vitola for anyone looking for an aromatic, balanced Habano flavor to be enjoyed in just 20 minutes, says Habanos. This vitola was designed to complete the current range of the brand by adding a format that has been highly appreciated in recent years

by Habanos enthusiasts.

The new presentation of the Romeo y Julieta Petit Churchills in a three-unit aluminum tube is now available in all markets around the world, notes Habanos.

The new presentation of the Romeo y Julieta Petit Churchills in a three-unit aluminum tube is now available in all markets around the world

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Villiger introduces new colorcoded mini and corona cigar line

Villiger has introduced a new range of Mini and Corona cigars in bright, color-coded tins. Highly attractive on-shelf, there are six flavored variants available: Minis in Red (vanilla with and without filter), Black (Sumatra) and Saphir (Oriental Tobacco), as well as Coronas in Red (vanilla), Black (Sumatra) and Blue (Cuban).

The Red Mini cigarillo features a seductive, aromatic hint of vanilla, accenting the sophisticated combination of flavors of Virginia, Burley and Black Cavendish tobaccos. The Black Mini is pure tobacco pleasure, a mildly aromatic cigarillo with a satisfyingly harmonious blend of fine Java, Brazil, Havana and Oriental tobaccos, finished in a wrapper from Ecuador.

Finally, Saphir Mini features an elegant oriental blend and is described as a medium-strength smoke.

Available globally in travel retail/duty free, the Minis tins contain 10 cigarillos and the Coronas 3 tubes.

“We are continuing to keep the range fresh and interesting by introducing new formats and presentations,” says Senior Vice President Export Gert Kamphuis. “As our markets in Asia expand, particularly in China and Hong Kong, we need to offer travelers a bigger assortment.”

(from left) Villiger Black Minis, Villiger Red Minis and Villiger Saphir Minis

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Tobacco News

KT&G plans Dubai launch for Tonino Lamborghini Ice Volt cigarettes

JTI recognized as

KT&G, one of the top five global tobacco companies, expects worldwide success with its new Tonino Lamborghini Ice Volt cigarettes, says Overseas Brand Department Manager Jihyun Choi.

“Tonino Lamborghini Ice Volt is a menthol version within the Tonino Lamborghini family, rated at 6 mg of tar and 0.5 mg of nicotine,” Choi says. “It was developed to provide a powerful, cooling effect. It also has a champagne flavor so consumers can feel the fizz and taste the sparkle of luxurious champagne. It also provides the highest level of menthol flavor among menthol products.”

The package design was developed by ARC’S, a popular Italian design studio with brand credits ranging from Martini to Fiat. ARC’s also designed Tonino Lamborghini L6 and L8 (with 6 mg and 8 mg of tar respectively).

“This will maintain the design identity of the brand,” says Choi. The Toro emblem of a fighting bull, representative of the charisma of the Lamborghini family of products, is featured prominently.

“The Ice Volt design utilizes a blue thunderbolt image to visually express a powerful menthol flavor,” says Choi.

KT&G has the exclusive sales rights for the product worldwide. “The launching of Ice Volt rounds out the Tonino Lamborghini brand line in a perfect way.

KT&G has high expectations in the field of menthol cigarettes. The product already launched in leading Asian duty free shops in Hong Kong, Beijing and Shanghai,” says Choi. For 2013, the Russian, Taiwanese and Dubai markets are targets for launch, with North America in future plans.

Japan Tobacco International (JTI) recently received the Top Employer Europe 2013 certification during an awards ceremony held at the Park Plaza in London. Ten JTI offices were recognized for their excellence in human resources management by the CRF Institute as a result of an audit conducted by Grant Thornton: Belgium, France, Italy, Netherlands, Poland, Switzerland, United Kingdom, Czech Republic, Denmark and Greece.

“Hiring the best talents and investing in people development are the cornerstones of JTI’s human resources approach,” says Ilona Alonso, Human Resources Vice President for the Western Europe Region at JTI. “This recognition, combined with our recent Employee Engagement Survey results, gives us the confidence that we are doing things right.”

“There is a strong sense of common purpose at JTI: more than 91% of our employees worldwide support the company’s goals, objectives and values, and 94% are willing to make extra efforts to help JTI succeed,” adds Mark Phillips, Human Resources Vice President for the Central Europe region at JTI. “The Top Employer award is yet another reason for our employees to be proud of working for JTI.”

top employer

The Tonino Lamborghini Ice Volt design utilizes a blue thunderbolt image to visually express a powerful menthol flavor

J. Cortès releases new products for duty free, gains listings in Kuwait and Qatar

J. Cortès has a broad range of original flavor and aromatic cigars in travel retail under the J. Cortès and Neos brands. Bestsellers are the Neos Mini Java 5X20, J. Cortès Mini 5X20 and the Neos Mini Vanilla Filter 5X20.

“We have developed two new SKUs in 5x10 with a sleeve as a result of the success we had with our limited edition packs for J. Cortès Mini/10 and J. Cortès Dominican Mini/10, which we made last year exclusively for travel retail,” says Emmanuel Ghesquière, Export Manager Americas, Iberian Peninsula, Northern Africa and French Overseas Territories for J. Cortès.

Ghesquière finds that continuously striving to have better visibility on the shelves is the main path to success. He says that being close to the store entrance and close to eye level are the two key criteria of good positioning. Travel retail sales are growing steadily, he says, with some examples of new listings in Tunisia, Egypt and in South East Asia, specifically Sri Lanka, riding on the success J. Cortès has had with limited edition packs.

Ghesquière notes that his export colleague in the Middle East has already secured listings for the new packs with Qatar Duty Free and Kuwait Duty Free.

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J. Cortès has developed two new SKUs in 5x10 with a sleeve as a result of the success it had with its limited edition packs for J. Cortès Mini/10 and J. Cortès Dominican Mini/10

GULF-AFRICA DUTY FREE & TRAVEL RETAILING TFAP MAY 2013

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CASABLANCA

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2013-04-19 4:45 PM