Americas Duty Free & Travel Retailing Magazine - IAADFS MARCH 2014 (Vol. 24 No. 1) by Paramount Publishing Ltd.

Ing lés y

MARCH 2014 · IAADFS· VOL 24 · NO 1

esp añ ol

IAADFS 2014

London Supply pushes boundaries p.

South America shines p.

Uruguay-Brazil border p.

The Asian impact p.

Letter from the Editor

Getting creative

ood news for the Americas travel retail industry is that from Argentina to Canada, operators are reporting strong performance in relation to key indicators such as sales, average ticket, penetration and traffic. Of course, in the case of South America, for example, this isn’t to say that growth is as robust as it was a few years ago, but the sense we’re getting here at Americas Duty Free is that operators and suppliers knew all along that strong double-digit growth wasn’t sustainable over the long term. The focus in South America, it seems, is on the fact that the industry is consistently bettering its previous year’s performance. Optimism also abounds up north, where the slowly improving US economy is generally resulting in slightly more travel (and importantly, more spending) on the part of American travelers. While North America and South America are currently dealing with drastically different social and economic situations, there is one common thread; continuing to increase sales moving forward will require no small measure of creativity on the part of operators and suppliers. Indeed, the 2014 IAADFS issue of Americas Duty Free is replete with companies who are doing just that—getting creative. Digital pursuits abound in the industry, from Motta Internacional’s new pre-order website for its Attenza-branded stores to FlyInStyle’s mobile app for duty free shoppers on the go. Just how best to take advantage of the digital revolution has been a topic of conversation for some time, and both of the above companies have interesting takes on a question that the industry has wrestled with over the last few years. But other companies are getting back to basics, focusing their efforts on education and old-fashioned consumer engagement. From Brown-Forman’s initiative to acquaint spirits lovers with its large American Whiskies portfolio to World Duty Free Group’s focus on celebrating regional flair in its Latin American stores with activities ranging from tequila tastings to cultural dancers, airports in the Americas are certainly exciting places to be at the moment. Yes, there is a measure of concern for the future, but this will always be so. What’s more, it’s a healthy concern peppered with an understanding that we create our own path as we forge ahead. Carlos Loaiza Keel, Secretary-General of Cámara de Empresarios de Free Shops del Uruguay, for example, tells us that while ensuring a level playing field when duty free shops eventually take root on the Brazilian side of the border is an area of focus for the organization, he sees the development as a positive one that will bring more attention to the region. Similarly, despite a rough first half of 2013, President of Mannah Duty Free Mohamed Mannah tells us that the second half of the year was stellar and that he expects big things in 2014. These are just two examples of the optimism that is a hallmark of the travel retail industry. Every journey has peaks and valleys, of course, but it’s what we do during the low points that determines just how high the next upswing will take us. Things aren’t what they used to be a few short years ago, granted, but I would argue that the industry is still riding high as a result of its foresight and ability to see opportunity around every corner. Kindest Regards, Ryan White Concessions, Liquor and Tobacco Editor ryan@dutyfreemagazine.ca

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

The Americas Duty Free & Travel Retailing magazine (ISSN 0962-0699) is published five times a year March, April, June, October and November by Global Marketing Company Ltd. 26 Pearl Street, Mississauga, Ontario L5M 1X2 Canada. It is distributed throughout Central America, South America, the United States, Canada, U.S. Virgin Islands, U.S. Pacific islands, and the islands in the Caribbean. The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or the editor. March 2014, Vol 24. 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.

AMERICAS 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 ART DIRECTOR Jessica Hearn jessica@globalmarketingcom.ca CONTRIBUTORS Melissa Silva David Nusair Cindy Sosroutomo Jeff Mackay John Guise Jennifer Bill

ADVERTISING SALES ADVERTISING & MARKETING MANAGER Kim Carrera kim@dutyfreemagazine.ca CIRCULATION & SUBSCRIPTION MANAGER Deepa J deepa@globalmarketingcom.ca

SEE SPORT BETTER. Make a statement when the weather heats up with a comfortably lightweight wraparound frame. Bold Nike Swoosh branding on each side of Mercurial sunglasses adds the perfect touch.

Letter from the Editor

Ser creativos

L advertisement removed for legal reasons WINNER

Balmoral Dominican Selection The Balmoral Dominican Selection Collection 12

offers a luxury assortment box containing Small Panatela, Panatela and Corona cigars. To produce these high-quality cigars, modern craftsmanship is combined with the finest tobaccos from the wide region of the Caribbean. Taste the authenticity. Expect the unexpected.

The Real Dominican Experience Visit us at IAADFS Orlando, booth 1340

a buena noticia para el sector minorista de viajes de las Américas es que los operadores están reportando un rendimiento sólido en relación con indicadores claves como ventas, gasto promedio, penetración y tráfico. En el caso de Suramérica, esto no quiere decir que el crecimiento es tan robusto como lo fue hace algunos años, pero la sensación que tenemos es que los operadores y proveedores sabían positivamente que aquel crecimiento de dos dígitos no era sostenible a largo plazo. Aparentemente, el enfoque actual en Suramérica es estar conscientes de que la industria no está superando sistemáticamente el rendimiento del año anterior. También abunda el optimismo en la región norte, donde el lento crecimiento de la economía de los Estados Unidos da generalmente por resultado un modesto aumento en los viajes. Si bien Norteamérica y Suramérica están enfrentando actualmente situaciones sociales y económicas diferentes, existe un hilo común: seguir impulsando el incremento de las ventas necesitará todo tipo de medidas de creatividad por parte de operadores y proveedores. El sector goza de una gran abundancia en búsquedas digitales, desde el nuevo sitio Web de pedido previo creado por Motta Internacional, hasta la aplicación para teléfonos celulares de FlyInStyle para comprar mercancías duty free en plena marcha. La mejor forma de aprovechar la revolución digital ha sido un tema de conversación durante algún tiempo, y las compañías mencionadas tienen interesantes puntos de vista con respecto a este asunto. Otras compañías están volviendo a lo básico, enfocando en la información y la participación a la antigua del consumidor. Desde la iniciativa de Brown-Forman para familiarizar a los amantes de los espirituosos con su enorme portafolio de whiskeys estadounidenses, a la concentración de World Duty Free Group en celebrar el talento regional en sus tiendas latinoamericanas; nadie duda que los aeropuertos de las Américas son sitios atractivos en estos momentos. Por supuesto, existe cierto grado de preocupación por el futuro, pero siempre lo habrá. Más aun, es una preocupación sana matizada con la certeza de que hacemos nuestro camino al andar. Por ejemplo, Carlos Loaiza Keel, Secretario General de la Cámara de Empresarios de Free Shops del Uruguay, nos dijo que si bien garantizar la igualdad de condiciones cuando se enraícen las tiendas en el lado brasileño de la frontera es un punto importante para la organización, él considera el acontecimiento en general como algo positivo. De forma similar, a pesar de un comienzo difícil del 2013, Mohamed Mannah, Presidente de Mannah Duty Free, nos dijo que la segunda mitad del año fue estelar, y que espera grandes cosas en el 2014. Cada trayecto tiene sus cumbres y sus valles, pero lo que hacemos en momentos difíciles es precisamente lo que determina la grandeza del próximo paso. Claro, las cosas no son lo que fueron hace pocos años, pero la industria sigue una marcha ascendente, como resultado de su previsión y capacidad para ver oportunidades en cada rincón. Un cordial saludo, Ryan White Editor de Concesiones, Licores y Tabacoo ryan@dutyfreemagazine.ca

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

399 BDS Collection 12 adv 94X275_v2.indd 1

30-01-14 13:01

MARCH 2014 • VOL 24, NO 1

Contents

LATIN AMERICAS REPORT

Emerging on top Americas Duty Free speaks with six operators that prove Latin America is still the region to watch in 2014 when it comes to emerging markets

IN BRIEF

Un resurgimiento triunfante

Passengers to FlyInStyle with their favorite brands n Shopping China sees 25% year-on-year increase in sales during 2013 n International air passenger traffic hits a record 185.4 million in 2013

Americas Duty Free habló con seis operadores quienes demuestran que Latinoamérica sigue siendo la región a observar del 2014 en mercados emergentes

TOP STORY: LONDON SUPPLY

Pushing the boundaries Americas Duty Free speaks with London Supply’s Commercial Manager Magdalena Ducos about the operator’s exciting achievements in 2013 and what’s to come this year

Trascender los límites Americas Duty Free habló con Magdalena Ducos, gerente comercial de London Supply sobre los importantes logros del operador en el 2013 y lo que esperan para este año

AER RIANTA INTERNATIONAL

BRIGHT STAR

BRAZIL-URUGUAY BORDER

Breaking new ground Flemingo bursts onto the Americas travel retail scene with the clear goal of continuing to target emerging markets on the road to US$20 billion in sales by 2020

A future of opportunities Americas Duty Free discusses land border duty free in Uruguay with Secretary-General of Cámara de Empresarios de Free Shops del Uruguay Carlos Loaiza Keel

Un futuro de oportunidades

What lies ahead Regional Manager – North America at Aer Rianta International John Bolger expects a strong 2014 given large-scale renovations at the operator’s international store at Montreal Airport

New spaces, better experiences In a major investment into the business, Bright Star expands its operations at Silvio Pettirossi International Airport

FLEMINGO INTERNATIONAL

NUANCE NORTH AMERICA

Gearing up Nuance celebrates a contract extension at Fort Lauderdale-Hollywood Airport and partners with Estée Lauder in Toronto on a one-of-akind promotion

Americas Duty Free analiza el negocio duty free de frontera terrestre en Uruguay con Carlos Loaiza Keel, Secretario General de la Cámara de Empresarios de Free Shops del Uruguay

WORLD DUTY FREE GROUP

ASIAN TRAVELERS IN AMERICAS

ESTÉE LAUDER ON ASIAN CLIENTELE

The Asian impact Retailers, airlines and airports continue to reap the rewards as more and more Asians find themselves traveling each year

The afterglow effect Premium luxury brands answer the call of Asian consumers with a number of new, high-performance skincare products designed to refresh and renew

92 86

TARGETING NON-SHOPPERS

MID-SIZED US AIRPORTS

ASSOCIATION Q&A

Closing the deal Americas Duty Free speaks to travel retailers and suppliers about the important business of enticing non-shoppers to enter stores and purchase

The little airports that could Bigger doesn’t necessarily mean better, something these mid-sized airports are happily proving

New year, new opportunities Americas Duty Free speaks with the organizers of three of duty free’s most important trade shows and conferences to get a sense of what the industry can expect from events in 2014

Año Nuevo, oportunidades nuevas Americas Duty Free habla con los organizadores de tres de las exposiciones y conferencias más importantes del sector duty free para determinar lo que puede esperar la industria de los acontecimientos en el 2014

106 108

BAJA DUTY FREE

Border guards

118

DUFRY

122

L’ORÉAL TRAVEL RETAIL AMERICAS, PARBEL

Crystal clear From a new store aboard Buquebus’ Francisco Papa to a variety of fresh products and promotional activities, Bernabel Trading’s focus on the consumer has never been clearer

110

MIAMI INTERNATIONAL AIRPORT

112

FRONTIER DUTY FREE ASSOCIATION

116

CARIBBEAN ARI

Getting bigger and better With consistent record-setting years and continued growth on the horizon, MIA is growing its services and accommodations to better serve its customers

A new chapter The Frontier Duty Free Association says goodbye to Niagara Falls as its venue as the organization looks forward to a 2014 full of new initiatives and experiences

Terminal velocity Caribbean ARI celebrates another successful year in Barbados

Dufry’s focus on emerging markets has led to a number of new developments in Latin America and the Caribbean

A sonic leap forward L’Oréal’s newest acquisition offers a revolutionary skincare product

124

ESSENCE CORP.

Essence Corp. enjoys sweet smell of success The future continues to look bright for the luxury fragrance distributor

126

FERRAGAMO PARFUMS

Ferragamo Parfums debuts Signorina Eleganza Ferragamo continues its quest to create luxurious fragrances for high-end customers

128

Baja Duty Free stays competitive along the US-Mexico border

BERNABEL TRADING

Staying ahead of the game

H2O PLUS

H2O Plus launches new collections New products released for 2014, Caribbean distributor added

130

PERFUME HOLDING

132

BEAUTY BEAT: FRAGRANCES

A firm hold in the Americas Perfume Holding sets its sights on improving brand awareness in the region

Beauty boosters A host of alluring scents fill the air as suppliers roll out their best offerings yet for the warmer seasons

122

THE ULTIMATE SKIN EXPERIENCE CLINICALLY PROVEN 24-HOUR HYDRATION

NEW OASIS BODY TM

• 100% OIL-FREE • BIOACTIVE SEAWATER

VISIBLY RENEWS

• FORMULATED TO SMOOTH,

SOFTEN, AND PLUMP SKIN

• FREE OF SULFATES

AND PARABENS

VISIT US AT BOOTH #1716 OR CONTACT: GMP SERVICES – VIVIAN WISCHT VIVIAN.WISCHT@GMPSERV.COM / (305)895-2600

134 134

Refined tones CLARINS GROUP

Aiming for a bigger and better future Clarins builds on a successful 2013 by expanding on several best-sellers and readying a series of exciting new launches

138

CRABTREE & EVELYN

142

BIOTHERM, PARBEL

143

Paving a brand’s expansion Crabtree & Evelyn heads into 2014 with a bold, innovative sense of purpose

Biotherm pushes into 2014 with exciting new initiatives

L’ORÉAL TRAVEL RETAIL AMERICAS CONSUMER DIVISION

Dominating the cosmetics and skincare industry SHISEIDO

A bright future for a travel retail mainstay Shiseido capitalizes on the success of 2013 by prepping a number of new products

148 152 154

166 168 169 171

CONFECTIONERY NEWS

178

DANZKA

180

VODKA NEWS

Making an impact

L’Oréal Travel Retail Americas Consumer Division looks to beat records in 2014

146

164

LINDT

BEAUTY BEAT: SKINCARE AND COSMETICS LAUNCHES

Stronger colors, better skincare based on scientific support

136

162

SOURCING NETWORK INTERNATIONAL

SUPPLIER NEWS

Step into the spotlight Iconic brands ready new products for 2014

WATCH NEWS Geneva Watch Group makes time for new collections n Classic timepieces from SolarTime impress on many Levels

BULOVA CORPORATION

Bulova partners with Manchester United The leading watch company unveils new timepieces at the IAADFS show

156

NISHI PEARLS

158

SUNGLASS REPORT

Designing a brighter future Nishi Pearls set to break into the mainstream this year

A bright forecast ahead Sunglass sales are looking to eclipse 2013 sales figures in 2014

188

A sharper future SNI revives the Sharper Image brand for the travel and casino retail markets

Lindt’s power year Following the debut of Lindor’s Limited Edition Tube this spring, Lindt sets its sights on making an even greater impact with its new autumn limited edition at this year’s IAADFS

Mars takes new innovations to the Americas n Godiva reinforces its authenticity with refined collection reflecting the artistry of Belgian chocolates

DUC D’O CHOCOLATERIE

Duc d’O expands to Americas Belgian Chocolatier brings sweets to new markets

SPECIAL REPORT: VODKA VODKA REPORT

Shining star The vodka subcategory shows no signs of slowing down in travel retail; Americas Duty Free looks at what suppliers have in store for traveling vodka lover over 2014

A toast to success Family-owned German company Waldemar Behn GmbH expands its horizons with DANZKA Vodka acquisition

Bacchus brings Beluga Vodka to IAADFS after overseas success n Ladoga Group brings its line of prestigious vodkas to the Americas n MONARQ Group keeps improving its presence in the Americas n Stoli Group embarks on a collaboration with the L.A. Gay & Lesbian Center

TITO’S HANDMADE VODKA

Served straight up After cornering the market in Big Country, Austinbased Tito’s Handmade Vodka sets its sights on the Americas and beyond

138

190

VODKA SPRING COCKTAILS

That’s the Spirit It’s that time of year again, when duty free takes center stage at the annual IAADFS exhibition. We’re toasting the event with delicious cocktails from this year’s top vodka brands, all of which will keep you extra chilled this spring season

192

PROXIMO SPIRITS

194

WILLIAM GRANT & SONS

196

LIQUEUR REPORT

200

GRAND MARNIER

202

RÉMY COINTREAU

204 206

A spirited success Proximo Spirits builds on its growing portfolio with a new Elvis Presley themed vodka offering from Three Olives

Made for travelers William Grant & Sons focuses on travel retail exclusive ranges with emphasis on core brands at this year’s IAADFS exhibition

Sweet success

208

BOTRAN RUM

210

HEINEKEN

212

DIAGEO GTME

214

LIQUOR NEWS

Americas Duty Free looks at the liqueurs subcategory and examines how brands are vying for attention in the competitive travel retail channel

Grand Marnier goes global New offerings reinvigorate the classic liqueur and ensure its place on the home bars of traveling consumers in the Americas and across the globe

From the ground up Rémy Martin launches Cellar Master’s Selection, a new exclusive travel retail range of cognacs

BROWN- FORMAN

It’s all in the barrel Brown-Forman Travel Retail adds wood to its North American Whiskey initiative as Master Distiller Chris Morris offers barrel tutorials at IAADFS

HALEYBROOKE INTERNATIONAL

Shine bright like a diamond Haleybrooke gets set to unveil Russian Diamond Vodka and other lavish spirits at the annual IAADFS show

214

An international brand Botran continues its expansion into new markets on the back of the brand values that include tradition, craftsmanship and authenticity

Getting crafty in duty free Heineken has big things planned for 2014, including the release of a new craft beer and a continued emphasis in global duty free on the popular Heineken brand

“The richness of travel” Diageo brings two travel retail exclusive Johnnie Walker variants and a decadent Baileys variant to the IAADFS exhibition in Orlando

Sauza 901 Tequila takes back the night with Justin Timberlake n Camus Rarissimes Range debuts 1983 vintage Fin Bois Cognac n Fraternity Spirits World extends portfolio at Orlando trade show n MacDuff International brings Islay Mist, Grand Macnish and Lauder’s to IAADFS Show n La Fée Absinthe expands its reach into the Americas market n House of Lanson launches Extra Age Brut champagne n WEBB sees profits double in 2013 n Pryat Rum increases sales by 31% in global duty free n Bottega wins Best Buy Onboard Product at ISPY 2014 n Diego Zamora Group brings in new blood n Macallan leads the way for Edrington’s impressive growth n South African wine exports reach new high

220

JAPAN TOBACCO INTERNATIONAL

222

HABANOS

224

TOBACCO NEWS

Staying strong Japan Tobacco International achieves double-digit growth in its full-year 2013 earnings, with market share increasing in many key regions

Celebrating craftsmanship A focus on quality and tradition can be seen in essentially every aspect of the latest releases in Habanos’ Partagás and Montecristo cigar lines

ALFA Brands enhances tobacco lineup for IAADFS n J Cortès Cigars bolsters travel retail division Marlboro celebrates the Year of the Horse with Chinese New Year Special Edition 2014

226

AGIO CIGARS

228 230

NEW AND NOTABLE

Offering something special Agio Cigars exhibits at IAADFS this year with a clear focus on travel retail exclusives and capturing the gifting occasion

Bardinet French Brandy VSOP n Caorunn Gin n Viña Santa Rita Triple C

THE LAST WORD

The industry’s furry friends Americas Duty Free gives industry executives the chance to shine the light on their most loyal companions

In Brief US-International air passenger traffic hits a record 185.4 million in 2013 International air traffic to/from the US totaled 185.4 million passengers in 2013, a 4% increase over 2012. US citizen travel (81.0 million) was up almost 4% and comprised 44%of all air traffic. Non-US citizen air travelers (104.4 million) increased by 5% with their market share at 56%. US airlines carried 98.4 million passengers, up 3%, with their share at 53%, down from 2012. Foreign flags carried 86.9 million passengers, up 6% from 2012. Overseas air traffic accounted for 138.5 million passengers, 75% of all international, and grew by 4% in 2013.US citizen travel (61.1 million) was up 2% comprising 44% of overseas air traffic. Non-US citizen air travelers (77.4 million) were up by almost 6%

with their market share at 56%. US airlines carried 70.2 million passengers, up 3%, their share at 51%. Foreign flags carried 68.2 million passengers, up 6% from 2012. North American markets accounted for 25% of US international air traffic flows. Canadian air traffic accounted for 25.7 million passengers, 14% of all international traffic, and increased by 4%. US citizen travel (7.0 million) increased almost 7% and comprised 27% of air traffic. Canadian, and other foreign national citizen air travelers transiting through Canada (18.8 million), increased by 3%. Market share was at 73%. US flags carried 12.0 million passengers, up 4% from last year, with their share at

almost 47%. Foreign flags carried 13.8 million passengers, up 4%. Mexico air traffic accounted for 21.2 million passengers, 11% of all international traffic, and was up 7%. US citizen travel (12.9 million) increased 8% and comprised 61% of air traffic. Mexicans, and other foreign national air travelers (8.2 million) transiting through Mexico, increased by almost 6%, with 39% market share. US flags carried 16.2 million passengers, up 6% from last year, however their share slipped to 77%. Foreign flags carried 4.9 million passengers, up 11% increasing share to 23%.

Shopping China sees 25% year-on-year increase in sales during 2013 CEO of Shopping China Felipe Cogorno tells Americas Duty Free that despite the Real’s inflation over 2013, purchases from the operator’s largely Brazilian customer base continued to be strong during the year. This fact is particularly impressive given the fact that Shopping China operates in Bolivia, Uruguay and Paraguay, three countries known for welcoming their fair share of Brazilian tourists. “Comparing 2013 with 2012, sales increased about 25% last year,” Cogorno explains. “We saw a big boost in sales in the P&C category, particularly with brands such as Lancôme, Shiseido and L’Occitaine.”

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Given the sheer size of Shopping China’s stores in Pedro Juan Caballero and Salto de Guaira particularly, renovations have centered mostly on incorporating personalized furniture as opposed to spatial increases. Brands that have recently received the personalized treatment at Shopping China’s stores include Tommy Hilfiger, Guylian, Mentos and all of Luxottica’s brands. “We’re planning on having a number of other personalized furniture pieces ready during this year,” Cogorno says. “We’ll also be starting construction on a 32,000-square-meter store in Chuy during this year.” Despite Shopping China’s impressive stores, Cogorno concluded our conversation by noting that customer service is just as important as the buildings that house the products. “Whether it’s one-on-one consultation with our sales staff, a comfortable shopping experience or sales and promotions, our prime objective is ensuring our customers are happy,” he explains.

Age Youthfully. NEW

Super Restorative Day Replenishes, lifts, illuminates

You can look as young as you feel. Clarins new Super Restorative Day cream is now enriched with harungana extract, a powerful organic plant ingredient that targets maturing skinâ&#x20AC;&#x2122;s specific needs. By intensively replenishing skin at every level1, Super Restorative Day cream helps ensure skin looks firmer, smoother and healthier. You look good, you feel good. Love the age you are. Clarins, No.1 in luxury skin care brand in Europe2. 1. Ex vivo and in vivo tests. 2. Source: NPD BeautyTrends, total sales of 4 countries: France, Italy, Spain mainland and UK, skin care products sold in perfumeries, luxury brands, sales in value in 2012.

Official online store: www.clarins.com

In Brief

Passengers to FlyInStyle with their favorite brands FlyInStyle, launching in the App Store in early March 2014 (with an Android version following shortly) helps travelers connect with their favorite brands and retailers for instant deals, product launches, happy hours and more. FlyInStyle opens a mobile communication platform for airport brands and retailers never before seen in the industry, allowing them to reach their consumer in innovative ways while increasing consumer understanding in the airport. It is the first airport app of its kind, specializing in improving the airport experience by showcasing offers and events in retail and restaurants. Amanda Anthony, CEO & Founder, states: â&#x20AC;&#x153;Eventually we will have a better understanding of how mobile can influence buying decisions. In the airport, as passenger traffic increases and people turn more and more to their mobile devices for entertainment, the opportunity to engage passengers will continue growing.â&#x20AC;? FlyInStyle allows its beta merchant part-

ners to publish content in any airport globally in minutes and determine the duration of each offer and event, so efforts can be highly targeted. The focus in the first half of 2014 is in the Americas as the company ramps up with exciting offers, deals and events while building its user base. They also have sights set on engaging high potential demographic targets like Brazilians and have accelerated expansion of multiple language support. The company is pushing merchants to publish global offers to give the passenger the best possible experience in the app for their entire trip. FlyInStyle is working alongside its brand and retail merchant partners on driving awareness, downloads and usage during the trip through activities at the airport and online. FlyInStyle is in beta testing with select brand and retail partners but will gradually add more merchants throughout the beta period. If you are interested in partnering, please email Amanda@flyinstyleapp. com for more information

Orlando - Palms Ballroom - Booth 2500 20

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Top Story

Pushing the

BOUNDARIES

Americas Duty Free speaks with London Supply’s Commercial Manager Magdalena Ducos about the operator’s exciting achievements in 2013 and what’s to come this year

nder the direction of visionary travel retailer Teddy Taratuty, London Supply has grown to be one of the industry’s premier operators, known not only for pushing the boundaries of the consumer experience, but also for championing the importance of corporate social responsibility. Americas Duty Free speaks with Magdalena Ducos, London Supply’s Commercial Director, and finds that as always, she exemplifies the passion of the company at large in her enthusiasm for both the duty free business and the good work that London Supply does in the Iguazú community. Americas Duty Free: How were sales in 2013? Magdalena Ducos, Commercial Manager, London Supply: We closed 2013 with sales about 40% higher than the previous year. This was the result of a number of factors that favorably affected our business and the region in general as a tourist attraction. Tourists visiting Iguazú—one of the new Seven Wonders of Nature—increased

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

RYAN WHITE

London Supply’s Iguazú store, as much a tourist attraction as the iconic Iguazú Falls

year-over-year in 2013, which certainly helped matters. Furthermore, a number of economic variables in Argentina make buying by Argentineans within the country more favorable than buying outside the country. So, with more visitors and an increase in the average ticket over 2012, London Supply, and specifically the Iguazú store, ended 2013 on a particularly high note. ADF: Can you tell us a bit about the most popular categories and brands at your stores during 2013? MD: P&C remains the leader in sales followed by Spirits. We’ve also seen a huge increase in Fashion sales over the last few years, which seems to be a trend across all of travel retail. It’s always difficult to highlight specific brands as we appreciate all of our respected supplier partners, but I can tell you that the well known brands that tend to perform well throughout travel retail are also very successful in our stores. Further to this, London Supply also makes a concerted effort to include a range of brands and prices

“Shoppers are more likely to return to our stores when they associate the experience with a great memory in addition to a great purchase.” MAGDALENA DUCOS, COMMERCIAL MANAGER, LONDON SUPPLY

Top Story for essentially every taste—consumers can find the best-known brands in the world here and at the same time find something new and exciting that they didn’t even know existed. Recognized brands and emerging brands all have a place here; it’s part of the appeal of travel retail in general and our shops specifically. ADF: How is the expansion of the Iguazú store going? Is there anything new to report? MD: We’ve been focused on the Iguazú expansion for a year now, which will see the retail space double and the addition of a new parking area with capacity for 600 vehicles in addition to tourist coaches and taxis. The objective of this large-scale renovation is firstly to include new lines and brands in the mix, and secondly to give appropriate space to the brands with which we’re currently working. We’ve been working hard on this project and around the end of March visitors to our store in Iguazú will see dedicated spaces that include a bazaar; luggage and travel accessories; sports; eyeglasses; wines; and confectionery. Furthermore, as a result of the expansion, consumers will see larger areas for P&C, Spirits and Fashion. We’ll also have exclusive areas for brands like MAC and Tommy Hilfiger, and of course a selection of many new brands never before seen in the store.

Indeed, there are so many positive changes happening in the Iguazú store that I think it’s best that your readers visit us in Argentina to truly understand the full scope of the renovations! ADF: Can you give us your sense of the current economic situation in South America? MD: The forecast for South America in 2014 is similar to the last couple of years. Our job as a retailer is to concentrate on consumer behavior, which is of course informed by economic factors in certain countries that affect consumption. Our main clients are Brazilians and Argentineans, who generally exhibit high levels of consumption. The key is to continue working to make our store and Iguazú as a whole a more and more attractive destination to tourists. ADF: London Supply is known for having perhaps the most unique store in travel retail. How are you planning to continue differentiating yourself from the competition in 2014? MD: Quite simply, we will keep concentrating on ensuring excellence in execution informed by experience. As I’m sure you’re aware, for London Supply ensuring excellence means giving every potential client an unforgettable shopping experience, which is of course linked to our thematic store departments. This way, clients see each

section of the store as distinct and have a highly visual experience. Of course, emotion plays a role in the experience as well, and this is where our various theatrical elements come into play. From flash mobs to Brazilian music and dancers, consumers are encouraged to enjoy themselves. Indeed, they’re more likely to return to our stores when they associate the experience with a great memory in addition to a great purchase. ADF: Is there anything else you’d like to let our readers know about? MD: Whenever you ask this question I’m always excited to speak about the people at London Supply, which for us is equally as important as the business side of things. It’s sometimes nice to get away from the statistics for a moment and speak about the people that make the business. As always, I want to highlight the employees as they make London Supply the unique entity that it is. Everyone who works here believes in what we do and believes that the impossible can be achieved. Certainly, this stems from the direction of our President Teddy Taratuty and the fact that we’re all like-minded in holding values that go beyond our work and daily responsibilities as important—values such as giving, helping and believing that things won’t be better unless we work to make them better. A recent Big Pony activation at London Supply’s Iguazú store; the operator makes a point of going the extra mile for supplier partners

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

The New Limited Edition

Top Story Of course, our highest expression of these values takes the form of the London Supply Group Foundation. We ended 2013 having built primary and secondary schools that I’m pleased to say are up and running very smoothly. We’re also constructing our Jardin Maternal, which is a facility that offers help and support to expectant mothers and babies up to 45 days old. We’re expecting to inaugurate the building this year, which will result in a full-service education complex dedicated to helping local children from birth to their 18th birthday when they graduate secondary school. Currently, we have over 1,200 students attending the primary and secondary schools, a beautiful children’s orchestra and a sports park with teams that compete at a provincial level, all created with the objective of ensuring that local children in Iguazú grow up with equal opportunities. On a related note, 2014 began with our annual Golf Tournament, where we raised US$562,490 which will be set aside to finish up the construction and outfitting of the Jardin Maternal. Finally, I’d like to thank every single one of our supplier partners who listen to our ideas, support us in our goals and get as excited about our plans as we do. Thank you for taking this journey of differentiation with us. Most of all, thank you for forging forward with us year after year and ensuring we continue working toward a better and more human industry. A particularly busy shopping day at the Iguazú store; ongoing renovations will result in a large car park and double the retail space at the location

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Christmas at London Supply’s Iguazú store

Discover the Duty Free World DUTY Paraguay, Sudamérica

FREE Mannah Duty Free

Aeropuerto Internacional Silvio Pettirossi Asunción - Paraguay Phone: (+595 21) 645 715 / 645 753 Aeropuerto Internacional Guaraní Ciudad del Este - Paraguay Phone: (+595 64) 421 075 dutyfree_asu@mannah.com.py

Top Story

Trascender

los límites

Americas Duty Free habló con Magdalena Ducos, gerente comercial de London Supply sobre los importantes logros del operador en el 2013 y lo que esperan para este año

London Supply’s Iguazú store contains themed areas designed to make shopping an experience for consumers

ondon Supply, bajo la dirección del visionario minorista de viajes Teddy Taratuty, ha crecido hasta convertirse en uno de los principales operadores del sector, al cual no solo se conoce por trascender los límites de la experiencia del consumidor, sino también por defender la importancia de la responsabilidad social corporativa. Americas Duty Free habló con Magdalena Ducos, gerente comercial de London Supply, y descubrió que, como siempre, ella ejemplifica la pasión de la compañía en general, con su entusiasmo tanto por el negocio duty free como por el buen trabajo que realiza London Supply en la comunidad de Iguazú. Americas Duty Free: ¿Cómo se comportaron las ventas en el 2013? Magdalena Ducos, gerente comercial de London Supply: Cerramos el 2013 con ventas superiores en un 40% a las del año anterior, resultado de varios factores que afectaron favorablemente nuestro negocio y la región en general como atracción turística. La cifra de turistas que visitan Iguazú—una de las Siete Maravil-

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

las de la Naturaleza—se incrementó en el 2013, comparada con el año previo, lo cual ayudó realmente. Además, ciertas variables económicas en Argentina hacen que las compras de los argentinos en el país sean más favorables que fuera del mismo. Por tanto, con más visitantes y un incremento en las ventas promedios con respecto al 2012, London Supply, y específicamente la tienda de Iguazú, terminaron el 2013 con una nota particularmente alta. ADF: ¿Puede describirnos brevemente las categorías y marcas más populares en sus tiendas durante el 2013? MD: La categoría de perfumería y cosméticos sigue al frente en las ventas, seguida de los espirituosos. También hemos visto un enorme incremento en las ventas de modas durante los últimos años, lo cual parece ser una tendencia en el sector minorista de viajes. Siempre resulta difícil destacar marcas específicas, pues apreciamos a todos nuestros respetados proveedores, pero puedo decirles que las marcas conocidas que tienden a un buen rendimiento en el

sector minorista de viajes también son muy exitosas en nuestras tiendas. Asimismo, London Supply también realiza un esfuerzo concertado de incluir una amplia gama de marcas y precios, esencialmente para cada gusto. Los consumidores pueden encontrar aquí las marcas más conocidas del mundo, y al mismo tiempo cosas nuevas y atractivas de cuya existencia ni tenían noticia. Hay espacio para todas, tanto para las marcas reconocidas como las emergentes. Es parte del atractivo del sector minorista de viajes en general, y específicamente en nuestras tiendas. ADF: ¿Cómo marcha la expansión en la tienda de Iguazú? ¿Algo nuevo que reportar? MD: Llevamos un año concentrados en la expansión de Iguazú, lo que se materializará en un espacio doble, y la incorporación de una nueva zona de estacionamiento con capacidad para 600 vehículos, además de ómnibus turísticos y taxis. El objetivo de esta renovación en gran escala es primeramente la inclusión de nuevas líneas y marcas, y en segundo lugar,

advertisement removed for legal reasons

Top Story darle el espacio apropiado a las marcas con las que trabajamos actualmente. Nos hemos esforzado en este proyecto, y para fines de marzo, los visitantes a nuestra tienda de Iguazú verán espacios dedicados como un bazar; equipaje y accesorios de viaje; deportes; lentes; vinos y confitería. Además, como resultado de la expansión, los consumidores verán mayores áreas de perfumería y cosméticos, espirituosos y modas. También contaremos con áreas exclusivas para marcas como MAC y Tommy Hilfiger, y, por supuesto, una selección de muchas marcas nuevas nunca antes vistas en la tienda. Como se están llevando a cabo tantos cambios positivos en la tienda de Iguazú, ¡creo que es mejor que sus lectores nos visiten en Argentina, para comprender realmente el alcance total de las renovaciones! ADF: ¿Puede darnos una idea de la situación económica actual en Suramérica? MD: El pronóstico para Suramérica en el 2014 es similar a los dos últimos años. Nuestro trabajo como minoristas es concentrarnos en la conducta del consumidor, lo cual, por supuesto, se nutre de la información de los factores económicos en ciertos países que afectan el consumo. Nuestros principales clientes son los brasileños y argentinos, quienes presentan generalmente altos niveles de consumo. La clave es seguir trabajando para hacer que nuestra tienda,

y a Iguazú en general, un destino cada vez más atractivo para los turistas. ADF: London Supply es conocida por tener quizás la tienda más original en el sector minorista de viajes. ¿Qué planes tienen para seguir diferenciándose de la competencia en el 2014? MD: Para decirlo de forma simple, seguiremos concentrándonos en garantizar la excelencia en la ejecución, informados por la experiencia. Estoy segura que sabes que la garantía de excelencia de London Supply equivale a darle a cada cliente potencial una experiencia de compras inolvidable, lo cual, por supuesto, está vinculado a nuestros departamentos temáticos de las tiendas. Así, los clientes ven cada sección de la tienda como un lugar diferente, y gozan de una experiencia altamente visual. Está claro que la emoción también desempeña un papel en la experiencia, y ahí es donde entran en juego varios elementos teatrales. Recurriendo a diversos métodos, desde aglomeraciones repentinas a música y bailarinas brasileñas, se estimula a los clientes a disfrutar. Y, por supuesto, serán más propensos a volver a las tiendas cuando asocian la experiencia con un gran recuerdo, además de una excelente compra. ADF: ¿Hay algo más que quiera revelarles a nuestros lectores?

MD: Cada vez que me haces esa pregunta, siempre me entusiasma hablar del equipo de London Supply, que para nosotros es tan importante como el ángulo comercial de las cosas. En ocasiones es agradable dejar a un lado las estadísticas por un momento, y hablar sobre aquellos que contribuyen a la buena marcha del negocio. Como siempre, quiero destacar la labor de los empleados que hacen de London Supply la entidad original que es. Todo el que trabaja aquí cree en lo que hacemos, y en que se puede lograr lo imposible. En realidad, es un concepto que emana de la dirección de nuestro presidente Teddy Taratuty, y de que todos coincidimos en apreciar la importancia de los valores que van más allá de nuestro trabajo y las responsabilidades diarias. Valores como la generosidad, la colaboración y la creencia en que las cosas no van a mejorar si no nos esforzamos para que sean mejores. Por supuesto, nuestra expresión más alta de esos valores toma forma en la Fundación London Supply Group. Terminamos el 2013 con escuelas primarias y secundarias construidas, las cuales, me complace decirlo, están funcionando a la perfección. También estamos construyendo nuestro Jardín Maternal, una instalación que ofrece ayuda y apoyo a las embarazadas y a los bebés hasta de 45 días de nacidos. Esperamos inaugurar este año el edificio, que será un complejo de educación con servicios completos,

London Supply recently raised US$562,490 for its CSR work through its annual golf tournament (pictured is the 2012 tournament)

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

dedicado a ayudar a los niños locales desde su nacimiento a su 18 cumpleaños, edad de graduación de la enseñanza secundaria. En la actualidad contamos con más de 1,200 estudiantes en la enseñanza primaria y secundaria, una hermosa orquesta infantil, y un parque deportivo con equipos que compiten a nivel provincial. Todo lo hemos creado con el propósito de garantizar que los niños de Iguazú crezcan con oportunidades iguales para todos. En un aspecto relacionado, quiero decir que el 2014 comenzó con nuestro Torneo Anual de Golf, donde recaudamos US$562,490 que serán dedicados a terminar la construcción y equipar el Jardín Maternal. Finalmente, quiero agradecerles a todos y cada uno de nuestros proveedores, quienes escucharon nuestras ideas, nos apoyaron en nuestros objetivos, y se entusiasmaron tanto como nosotros con los planes que llevamos adelante. Les agradezco que hayan emprendido con nosotros este viaje de diferenciación. Y, sobre todo, gracias por avanzar con nosotros año tras año, y por garantizar que sigamos trabajando por una industria mejor y más humana. 

Christmas at London Supply’s Iguazú store

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

ARI North America

What lies by

RYAN WHITE

ahead

Regional Manager – North America at Aer Rianta International John Bolger expects a strong 2014 given largescale renovations at the operator’s international store at Montreal Airport

“The new international shop will offer a much better shopping experience in terms of access from the main walkway and very clear product offerings. We’re already seeing higher average transaction values.” JOHN BOLGER, REGIONAL MANAGER – NORTH AMERICA AT ARI, ON RECENT RENOVATIONS TO THE OPERATOR’S INTERNATIONAL SHOP IN MONTREAL AIRPORT

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

“In

general across the four airp or ts where we operate— namely Montreal, Winnipeg, Halifax and Ottawa—international traffic increased marginally,” Says John Bolger, Regional Manager – North America at Aer Rianta International (ARI). “However, transborder traffic performed slightly better, showing an increase of approximately 3%, peaking towards the end of the year.” Although the North American airports where ARI operates saw only slight increases in traffic, ARI was able to increase penetration rates across the stores as the result of what Bolger calls “a much stronger marketing effort.” This increase in penetration, however, was tempered to some extent by a decrease in average transaction value due in part to lower tobacco sales and extensive renovations in Montreal last year. Despite the above, Bolger is very optimistic for 2014 for a number of reasons: The operator will see renovations completed at its international store in Montreal; forecasts suggest increases in passenger volumes to key European destinations; and a more focused and robust marketing strategy will be rolled out this year. “We are looking forward to a strong 2014,” Bolger says. With regard to the renovations in Montreal, the first stage of the project (the P&C category) was complete on-time in October of last year. The Liquor, Tobacco and Confectionery categories came next, with work completed just before Christmas. Furthermore, by March 2014 travelers will see a new Fashion category and an Oakley shop-in-shop. “The new international shop will offer a much better shopping experience in terms of access from the main walkway and very

Spirits is a strong category for ARI North America, and the whiskey subcategory specifically has received an upgrade of late, with the official launch of ARI’s “Whiskey Collection” to take place later this year

clear product offerings,” Bolger explains. “We’re already seeing higher average transaction values.”

Upgrading and upping spend Tobacco, Liquor and P&C remain ARI North America’s best-selling categories. In 2013 the operator spent considerable time and effort in enhancing its whiskey offering given the popularity of the subcategory. Bolger says ARI is already seeing the fruits of its labors in the form of increased whiskey sales. “The focus on this category will continue into 2014, with the official launch of our new ‘Whiskey Collection’ in Montreal International,” he explains. When asked about purchasing trends, Bolger told us that ARI’s main consumers at the Montreal store are from Quebec, France and the US. “Significantly we have noticed an increase in average spend among transborder customers, which is a very welcome development,” he says. Indeed, Bolger predicts that the refurbishment of the international store combined with ARI North America’s compelling retail proposition—put together in partnership with Montreal Airport—will yield results in 2014. Of course, in addition to renovations and focusing on strong-selling categories, ARI North America has a regular promotional calendar planned for 2014 with the aim of enticing travelers to spend more. The operator recently concluded an Icewine promotion with Canadian hockey legend Wayne Gretsky that featured prominently on the giant video wall at the entrance to the new international shops. “Though promotions have been limited somewhat in the past few months because of the renovations, we have some really interesting events planned for 2014,” Bolger concludes. 

Bright Star

New spaces,

better experiences

mericas Duty Free recently had the opportunity to sit down with Cynthia Barreto, General Manager of Bright Star, to discuss what the operator has planned for 2014 at Silvio Pettirossi International Airport. We learned that a large-scale expansion project is currently in the works that will see Bright Star offering better experiences, a new ambience and an increased product selection to travelers passing through Paraguay by air. “The generally strong performance of the Latin American economy has resulted in an influx of investment into many countries in the region, and given Paraguay’s strong GDP the country is at the center of the region’s success story,” says Barreto. “For this reason, it’s important for us to foster unforgettable experiences since for many travelers, the airport is their first and last experience of a country.” With this in mind, Bright Star has undertaken an ambitious expansion project in its operations at the airport. From the physical layout of the store itself to the products contained within, Barreto tells Americas Duty Free that Bright Star’s goal is to welcome and send off travelers to and from Paraguay with a pleasant duty free shopping experience firmly planted in their minds. “This isn’t just an expansion, but a new store concept,” she explains. “The new stores will offer passengers the latest and best products across categories, catering to the expectations of the luxury-driver travelers that pass through the airport.”

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

In a major investment into the business, Bright Star expands its operations at Silvio Pettirossi International Airport by RYAN WHITE

P&C plays major role

More to come

Given the importance of the P&C category to Bright Star’s overall sales, Barreto tells us that the category will necessarily play a major role in the renovations. New brands will be brought into the mix as a means of giving passengers more choice and, says Barreto, hopefully increasing sales at the same time. “The objective is really to make sure that we’re catering to all of the passengers’ needs by offering a wide selection of brands and products,” she explains.

In addition to the expansion project, Barreto tells Americas Duty Free that Bright Star has plans for more innovations in the months to come. “Our broad focus is ensuring excellence in everything that we do,” she explains. “As such, the expansion project is one of many plans that we have as part of our mission to offer world-class stores and the best products to travelers at Silvio Pettirossi International Airport.” 

A large-scale renovation project at Bright Star’s Silvio Pettirossi International Airport operations will see product selection and customer service brought to a new level

Nuance

Gearing

up by

RYAN WHITE

Nuance celebrates a contract extension at Fort LauderdaleHollywood Airport and partners with Estée Lauder in Toronto on a one-ofa-kind promotion

“Together with our partner DFASS, we look forward to working closely with Fort Lauderdale International Airport to expand our duty free offering, introduce exciting new stores and to delivering an outstanding retail experience.” RICHARD RENDEK, CEO, NUANCE NORTH AMERICA

uance has announced that it has been awarded a sevenyear duty free concession contract extension for Fort Lauderdale-Hollywood International Airport in partnership with The DFASS Group. As part of the new airport development program, Nuance will unveil an expanded and truly exciting duty free and luxury offer for international travelers. Estimated overall sales for the duration of the concession will be in excess of US$80 million. Fort Lauderdale-Hollywood International Airport is located in Florida between the cities of Fort Lauderdale, Hollywood and Dania Beach, about 30 km from the north of Miami. It offers nonstop service to more than 100 destinations in the US, Canada, Bahamas, Caribbean, Mexico, Latin America and Europe. Nuance President & CEO Roberto Graziani commented: “We are delighted to continue our successful partnership with Fort Lauderdale-Hollywood International Airport. Nuance has enjoyed a long-standing presence in North America, and this

AMERICAS DUTY FREE & TRAVEL RETAILING

“We are delighted to continue our successful partnership with Fort Lauderdale-Hollywood International Airport.” ROBERTO GRAZIANI, PRESIDENT & CEO, NUANCE

contract further strengthens our position in this important market.” Nuance North America CEO Richard Rendek added: “Together with our partner DFASS, we look forward to working closely with Fort Lauderdale International Airport to expand our duty free offering, introduce exciting new stores and to delivering an outstanding retail experience that reflects our combined commitment to excellence in quality, innovation and customer service.” Benny Klepach, CEO of The DFASS Group, said: “As Fort Lauderdale-Hollywood International Airport pursues its dramatic expansion, we are very excited to have the opportunity with our partner, Nuance, to further develop a first class duty free offering for the international passengers traveling to and from South Florida. The fact that this is in our ‘backyard’ makes the project that much more exciting.” Nuance currently operates 35 stores across eight airports in the US and Canada. The airport locations are Calgary, Toronto, Chicago, Denver, Fort Lauderdale, Houston, Las Vegas and Orlando.

Nuance

A unique experience In other Nuance news, the operator has partnered with world renowned beauty house Estée Lauder to bring Toronto International Airport the beauty brand’s first major outpost promotion in North America featuring Modern Muse and Advanced Night Repair Synchronized Recovery Complex II. “Bringing this unique brand experience to Toronto’s Pearson International Airport has allowed us to engage and interact with our customers outside of the store environment,” says Nuance’s Vice President Buying & Merchandising Andrew Rattner. Over the course of a 3-month period from December through February in Terminal 1, Nuance & Estée Lauder interacted and engaged with customers traveling through Toronto to an international destination to showcase the leader in beauty’s fragrance and skincare regimes and provide customers with the ability to purchase these highperformance products outside of the main duty free store, directly from the outpost. Estée Lauder’s Advanced Night Repair Synchronized Recovery Complex II builds on decades of inspiration and expertise in the fields of DNA research and Chronobiology. This innovative serum with revolution-

ary ChronoluxCB Technology supports the natural nighttime purification process vital to younger-looking skin. To coincide with the launch of Advanced Night Repair Synchronized Recovery Complex II, Estée Lauder commissioned an unprecedented independent clinical study with University Hospitals (UH) Case Medical Center. The results from this groundbreaking study show a chronic lack of sleep can accelerate signs of skin ageing and that poor quality sleep can slow skin’s natural repair processes. Helping skin maximize its natural nightly renewal like never before, Advanced Night Repair Synchronized Recovery Complex II slows down the look of premature aging, dramatically reducing the appearance of lines and wrinkles and significantly improving the appearance of skin radiance and evenness of skintone. Of course, Estée Lauder has also unveiled Modern Muse, a new fragrance that is inspired by the intriguing duality of today’s woman and complements every aspect of her dynamic life. This fragrance captures the essence of a Modern Muse with a lush floral woody scent—a true statement in modern luxury that conveys confidence, style and creativity with a modern, youthful attitude. 

In other Nuance news, the operator has partnered with Estée Lauder to bring Toronto International Airport the beauty brand’s first major outpost promotion in North America featuring Modern Muse and Advanced Night Repair Synchronized Recovery Complex II

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

“As Fort LauderdaleHollywood International Airport pursues its dramatic expansion, we are very excited to have the opportunity with our partner, Nuance, to further develop a first class duty free offering for the international passengers traveling to and from South Florida.” BENNY KLEPACH, CEO, THE DFASS GROUP

advertisement removed for legal reasons

Latin America Report

Emerging on top by

RYAN WHITE

Americas Duty Free speaks with six operators that prove Latin America is still the region to watch in 2014 when it comes to emerging markets

Increased flight frequency to Paraguay on the part of a number of airlines has helped Mannah Duty Free’s airport business

“We’re currently adding a number of new brands across categories—this, and simply the need for a more modern look and feel are the reasons behind the recent renovations.” MOHAMED MANNAH, PRESIDENT, MANNAH DUTY FREE

mericas Duty Free recently spoke with six Latin American operators about business throughout 2013 and what we can expect in the year to come. From renovations and new stores to staff training and the increasing importance of technology to operators’ businesses, we found that there’s no shortage of innovation in the region as companies chase even bigger sales in 2014.

Paraguay powers through Last year was a mixed bag of sorts for Mannah Duty Free. During the first half of the year, political instability in Paraguay resulted in fewer travelers entering the country. As such, President of Mannah Duty Free Mohamed Mannah tells us that sales were down for the period as compared to 2012. The results of Paraguay’s April 2013 election, however, saw the return of the Colorado Party—in power for 60 years before losing the 2008 election to the Christian Democratic Party—and hence a return to normalcy in many regards, especially where cross-border and air travel to the country was concerned. “The second half of the year was a complete turnaround,” Mannah explains. “We

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

did very well in terms of sales. A number of airlines increased the frequency of their flights to and from Paraguay, and new airlines introduced routes into the country as well, which certainly didn’t hurt matters.” Despite a less than stellar performance over the first half, Mannah closed the books on 2013 with sales over those of 2012 given the particularly strong second half. And it wasn’t only Mannah Duty Free that finished the year on a high note. Mannah tells us that “economically Paraguay is doing very well.” Indeed, he reports that the country ended 2013 with a 13% growth in its GDP, putting it well above the average GDP growth for the year across the Americas region as a whole. Furthermore, Mannah tells us that the situation in neighboring countries, with the exception of Argentina, is also stable. “The slight drop in total sales to Argentineans has been more than made up for by increased sales to Paraguayans,” he says. Despite the dichotomy between the first and second halves of the year where the operator’s retail performance is concerned, Mannah tells us that the classic duty free offerings of P&C and Spirits performed the best across the company’s land border and airport duty free stores, with the Accessories category also proving very popular. He cites

specific brands such as Carolina Herrera, Paco Rabanne, Fossil, Michael Kors, Johnnie Walker and Chivas Regal as big contributors to year-end sales statistics. Given the strong performance of the Fragrances category, Mannah necessarily wants it to look its best. The operator is currently in the process of changing out the furniture and backwall in the section throughout its stores. Other renovations currently ongoing include changes to the Spirits, Cosmetics, Luggage and Watch departments. In addition, Mannah Duty Free’s promotional area is also be updated. “We’re currently adding a number of new brands across categories—this, and simply the need for a more modern look and feel are the reasons behind the renovations,” Mannah tells us. Looking ahead to the rest of this year, Mannah sees big things ahead, not only because of the FIFA World Cup in Brazil and the expected increase in travel to and from nearby countries, but also because the operator expects its new store in Salto de Guaira, originally announced early last year, to be completed in 2014. “We’ve got a lot of other projects that we’re working on as well,” Mannah says, “always with the objective of capturing more

The layout for an upcoming Top Brands store

clientele and, perhaps most importantly, earning their loyalty so they return to shop with us again and again.”

Bigger and better Similar to Mannah Duty Free’s experience, President of Top Brands Danny Yohoros tells Americas Duty Free that conditions in the countries where the operator does business—namely, Belize, Salvador, Panama, Honduras, Guatemala, Puerto Rico, Cuba, Colombia and Chilé—have been favorable. In 2013 the company’s sales at its El Dorado Duty Free-branded stores were up 18% compared to 2012, with Fragrances and Spirits being the strongest performers category-wise. Furthermore, in a trend that is common throughout travel retail, Yohoros tells us that Confectionery is an up-and-coming category, with brands such as M&Ms, Hershey’s and Ferrero Rocher making an impact with consumers. Indeed, 2014 will be an important year for Top Brands given that the company is currently putting the finishing touches on a whopping nine stores in Chilé ’s Zona Franca de Iquique (ZOFRI). The business at ZOFRI will be varied, says Yohoros, with Top Brands operating a variety of locations from multi-category duty free stores to

spaces with a focus on specific categories such as Spirits, Accessories, Confectionery or Health & Beauty. This year will largely be taken up by ensuring its newest operations are running like a well-oiled machine, but Top Brands isn’t quite done with ZOFRI yet; the operator has plans this year to open another store there, this time 200-square-meter multicategory location that will offer all of the products that consumers have come to expect from Top Brands, along with a few additions. “We’ll be including some new lines as well into the multi-category mix, such as Electronics, Clothing and Health & Beauty,” Yohoros explains. Top Brands also has its hand in border retail, with the expected 2014 opening of a 600-square-meter store in the booming city of Rivera, Uruguay. Yohoros tells us that given Top Brands’ excellent relationship with suppliers and distributors, the store will carry an impressive assortment of brands across popular travel retail categories as a means of catering to the discerning cross-border travelers that frequently shop in Rivera. “We made a point of buying prime real estate in Rivera to ensure that the location of the store was exactly where we wanted it to be,” Yohoros explains.

“At the flagship store [in Cobija, Bolivia] we’ll have a number of products for sale that aren’t currently available in the area, so we have big expectations, largely because our research is telling us that consumers have an intense interest in these exclusives.” BORIS ZABALA, MARKETING DIRECTOR, GRUPO ZAIRE

“We were also recently awarded a contract to operate a store in El Dorado International Airport in Bogota, Colombia,” Yohoros adds. “At this new location we will be able to offer our brands to the more than 2 million travelers passing through the airport.” Indeed, given the recent large-scale renovations to El Dorado International and the quantity of passengers passing through the airports—many of whom are businesspeople looking for specifically for world-class duty free shopping—Yohoros is understandably excited about the development and what it means for the future growth of Top Brands and the El Dorado Duty Free brand. If the above weren’t enough, Top Brands will remodel two stores in El Salvador International Airport, and Yohoros says that expansion plans will continue throughout the year, with the opening of another two new stores in Chuy and Rio Branco, Uruguay planned for sometime in 2014.

Big things in Bolivia For Bolivian duty free operator and distributor Grupo Zaire, in business in the country since 1984, this year is also about expanding the business. The company is the exclusive distributor of KT&G tobacco products in Bolivia, and in 2010 Grupo Zaire realized that not only was there a huge opportunity for the tobacco category along the BoliviaBrazil border, but the duty free retail business in general was booming. As such, the company opened a number of small tobacco shops on the Bolivian side of the border that it still operates to this day. In the four years since the stores’ openings, Grupo Zaire has continued updating the locations, having added Spirits and Electronics categories in 2013. The big news this year, however, is the expected opening of the company’s flagship store in Cobija, the largest free zone in Bolivia, in July. A considerably larger project than the company has to date undertaken, the Cobija store will measure 6,000 square meters when finished and offer a cross-category selection of popular travel retail items for cross-border shoppers. “We’re expecting to cater mainly to travelers from Acre, Rondonia and Amazonas in Brazil,” says Boris Zabala, Marketing Director at Grupo Zaire. “We’re also expecting our fair share of travelers from Madre de Dios in Peru.” Given the space that the company will have to work with come July, Zabala is

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

Latin America Report

Monalisa is known throughout the region for its wine cellar, which contains many high-end bottles that simply can’t be found anywhere else in the area

Wi-Fi access is just another way that Monalisa ensures a comfortable shopping experience for its clientele

expecting sales to increase over Q2 2013 in the second half of this year. He tells us that full-year sales at Grupo Zaire’s existing operations in 2013 totaled about US$10 million, on par with 2012. “At the flagship store we’ll have a number of products for sale that aren’t currently available in the area, so we have big expectations, largely because our research is telling us that consumers have an intense interest in these exclusives,” Zabala tells us. “Furthermore, the shopping experience itself will be different from what many people may expect from Cobija—the store will be fully air conditioned, feature a supermarket layout and have its own parking lot to accommodate 60 vehicles.” Located on the popular Avenido Cornejo, where the majority of the border shops in Cobija operate, Grupo Zaire’s new store will be a sight indeed, boasting four floors of duty free shopping that will include dedicated spaces for Spirits, P&C, Electronics, Tobacco, Watches, Sunglasses, Toys, Gifts and General Merchandise; Clothing, Sporting Goods and Fishing and Hunting Equipment; and a food court with an entertainment area for children. 48

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

“The Cobija store is the main project on our radar this year, but we’re not stopping there,” concludes Zabala. “Grupo Zaire intends to open more border shops in Bolivia in the future. We’re planning on opening two more stores in Guayaramerin and San Matias at the end of 2015.”

Above and beyond Erasmo Orillac, Director of Motta Internacional, tells Americas Duty Free that the operator ended 2013 with sales above those of 2012 and “in line with our expectations for the year.” In terms of the bestselling categories, he says there weren’t any surprises, with Spirits and P&C being the most popular among travelers. When it comes to specific products that sold well, he says highlights included the Johnnie Walker range of Scotch whiskies and fragrances from Chanel and Carolina Herrera. The digital revolution and just how to best take advantage of the increasing number of travelers online has been a topic of great debate lately in travel retail, and at the end of last year Motta made a big move toward targeting passengers at Tocumen Airport in Panama before they travel with

the launch of www.attenza.net. The website gives air travelers the option to view the entire Attenza Duty Free catalogue online and reserve products ahead of their travel date. Given that travelers who take advantage of this service are generally looking to speed along their duty free experience when in the airport, the pick-up area is separate from the Attenza stores and allows for quicker service. Orillac tells us that Motta Internacional is expecting the sales trends seen in 2013 to continue this year. New brands are being added into the mix all the time—most recently Omega in Colombia and Tommy Hilfiger and Hugo Boss in Quito and Bogota—and the operator remains committed to a calendar of regular promotions. “Our promotions tend to be aggressive and creative,” Orillac says, “which helps to differentiate us from the competition. This year the focus will be on maintaining the level of promotional activity, increasing the options on the new pre-order website and continuing our staff training program to ensure that we’re offering customer service that goes above and beyond in every respect.”

At the crossroads of three countries Much like Mohamed Mannah, Charif Hammoud, Vice President of Paraguayan border retailer Monalisa, cites a slower first half in 2012 leading to a pickup in sales over the June to December period. P&C, Fashion, Spirits Gourmet, Sunglasses and Watches were among the bestselling categories at the operator’s large downtown duty free store in Ciudad del Este. After over 40 years of doing business in the same location, Monalisa has built up a significant amount of repeat business. Indeed, the operator offers numerous products across categories that are difficult to find anywhere else in the region, which certainly helps with customer loyalty, but just as important is the relaxed, luxury shopping experience that the store provides. As such, Hammoud tells us that Monalisa makes a point of scheduling regular renovations to make sure each section of the store is up to its clientele’s demanding tastes. “We’ve recently opened two new restaurants—one called simply ‘Sushi’ and the other called ‘Bistro MO’—and we’ve also expanded the gourmet foods area,” Hammoud explains. “The larger gourmet space

The new Attenza Duty Free pre-order website gives air travelers the option to view the entire Attenza catalogue online and reserve products ahead of their travel date

has allowed for the addition of a number of new confectionery brands.” Knowing the importance of keeping up with technological advances just as surely as Motta Internacional, Monalisa has recently installed a Wi-Fi hotspot in the store as well, giving consumers the option of connecting to the internet while shopping. This year the operator plans to open up a dedicated space for Victoria’s Secret products, introduce a VIP cosmetics area and renovate the Fashion & Housewares floor of the shop. On the domestic side of things, Monalisa

continues to expand its Aphrodite-branded Perfumery shops, and training to ensure excellent customer service combined with the return of last year’s “Big Sale” promotion will ensure that things continue hum along on the duty free side of the business. Hammoud is optimistic about what 2014 holds for Monalisa and the country of Paraguay. “Strong growth in the GDP and the construction of a second bridge connecting Ciudad del Este to Brazil is a good indication that there will be more opportunities for everyone in 2014,” he says.

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

Latin America Report

A positive outlook In Guatemala, 2013 was somewhat of an unconventional year for Sociedad Protectora Del Niño (SPN) given that the operator’s stores in La Aurora International Airport were actually closed for two full months for large-scale renovations. Nonetheless, SPN ended the year 2% above 2012 sales. Alejandro Asturias, SPN’s General Manager, tells us that while he was hoping to gain a little more ground in sales over 2013, the year-end results bode well for business in 2014. Zacapa, Johnnie Walker, Old Par, Bacardi, Grey Goose and José Cuervo are among Sociedad Protectora Del Niño’s bestselling spirits

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

“The economic situation in Guatemala is very stable, even though growth wasn’t as strong as we expected in 2013,” he explains. “Additionally, the US economy continues to improve, and the prospect of more Americans traveling in 2014 is certainly of benefit to everyone in the duty free industry.” Strong-performing brands in SPN’s toptwo-selling categories (P&C and Spirits) include Carolina Herrera, Chanel, Dolce & Gabanna, Christian Dior, Ralph Lauren, Zacapa, Johnnie Walker, Old Par, Bacardi, Grey Goose and José Cuervo. Asturias tells us that with the renovations on the stores now complete, the company can focus on

the business of improving sales through the incorporation of new brands into the mix— SPN looks at product mix on a monthly basis—and a concentration on making sure the year’s big launches are given the appropriate attention in store. “Of course, customer service is another area in which we always strive to improve,” Asturias explains. “In addition to making sure that consumers can find the brands they want, it’s important that they’re receiving quality service.” SPN also plans on making sure that promotional activities takes center stage this year. “We’ve got promotions planned for every month of the year in cooperation with suppliers,” says Asturias. “This, combined with the newly renovated stores and our concentration on product selection, should result in strong sales throughout 2014. “Regardless of what we’re doing in store, though, it’s important to note that we’ve always got our eyes on the ultimate goal, which is helping Guatemalan children and their families,” Asturias concluded. “I’d like to thank all of our supplier partners and customers for aiding us in this important cause.” 

Latin America Report

Un resurgimiento triunfante

Americas Duty Free habló con seis operadores quienes demuestran que Latinoamérica sigue siendo la región a observar del 2014 en mercados emergentes

mericas Duty Free habló recientemente con seis operadores latinoamericanos sobre los negocios en el 2013 y lo que se puede esperar este año. Descubrimos que, desde renovaciones y nuevas tiendas, a capacitación del personal y la creciente importancia de la tecnología para los negocios de los operadores, abunda la innovación en la región, con vistas a mayores ventas en el 2014.

Recuperación en Paraguay El año pasado trajo una serie de acontecimientos diferentes para Mannah Duty Free. Durante la primera mitad del año, la inestabilidad política en Paraguay dio como resultado la disminución de la entrada de viajeros al país. En vista de la situación, Mohamed Mannah, Presidente de Mannah Duty Free, nos dijo que las ventas cayeron durante ese período, en comparación con el 2012. Sin embargo, los resultados de las elecciones de abril del 2013 en Paraguay propiciaron el regreso del Partido Colorado—que

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

P&C is one of Mannah Duty Free’s more popular categories in terms of sales

In addition to P&C and Spirits, Accessories are proving very popular among Mannah Duty Free’s clients

estuvo en el poder durante sesenta años antes de ser derrotado en las elecciones del 2008 por el Partido Demócrata Cristiano— lo cual implicó un retorno a la normalidad en numerosos aspectos, especialmente en lo tocante al cruce de frontera y los viajes por vía aérea. “La segunda mitad del año fue un vuelco total”, explicó Mannah. “Nos fue muy bien en términos de ventas. Numerosas aerolíneas incrementaron la frecuencia de sus vuelos hacia y desde Paraguay, y otras también incorporaron rutas al país, lo cual trajo más beneficios”. A pesar de un desempeño menos que estelar en la primera mitad del año, Mannah cerró los libros contables del 2013 con ventas superiores a las del 2012, debido a una segunda mitad particularmente exitosa. Mannah agregó que “a Paraguay le va muy bien económicamente”. El alto funcionario reporta que el país concluyó el 2013 con un crecimiento del PNB del 13%, muy por encima del crecimiento promedio de ese renglón durante el año en la región de las Américas en general. Además, Mannah añadió que la situación en

los países vecinos es estable, con excepción de Argentina. “La ligera caída en las ventas totales de los argentinos ha sido más que compensada por el incremento de las ventas para los paraguayos”, dijo. A pesar de la dicotomía entre la primera y segunda mitad del año en lo que respecta al rendimiento del operador, Mannah agregó que las ofertas clásicas duty free de perfumería y cosméticos, y de espirituosos, tuvieron los mejores índices en las tiendas duty free de frontera y de aeropuerto de la compañía, mientras que la categoría de Accesorios también tuvo gran popularidad, y cita marcas especificas como Carolina Herrera, Paco Rabanne, Fossil, Michael Kors, Johnnie Walker y Chivas Regal como los principales propulsores de las estadísticas de ventas de fin de año. Dado el sólido desempeño de la categoría de fragancias, Mannah quiere necesariamente que tenga la mejor apariencia. El operador está actualmente en proceso de cambiar el mobiliario y la pared de fondo de la sección en todas sus tiendas. Además, hay otras renovaciones en proceso, como cambios en los departamentos de Espirituosos,

advertisement removed for legal reasons

Latin America Report Cosméticos, Equipaje y Relojes. Y por si lo anterior fuese poco, el área promocional de Mannah Duty Free está siendo sometida a una actualización. “Estamos incorporando actualmente varias marcas nuevas en las diferentes categorías. Esto, y simplemente la necesidad de una apariencia y sensación más modernas, son las razones que impulsan las renovaciones”, aseguró Mannah. En cuanto a lo que vendrá el resto del año, Mannah avizora grandes acontecimientos, no solo por la Copa Mundial de la FIFA en Brasil y el esperado incremento en los viajes hacia y desde los países vecinos. El operador también espera la apertura de su nueva tienda en Salto de Guaira, anunciada originalmente para el año pasado, pero que se llevará a cabo en el 2014. “Tenemos otros tantos proyectos en los que trabajamos, siempre con el objetivo de captar más clientela, y, tal vez lo más importante, ganarnos su lealtad para que regresen una y otra vez a nuestras tiendas”, añadió Mannah.

común del sector minorista de ventas, Yohoros nos dijo que la confitería es una categoría de nueva promoción, con marcas como M&Ms, Hershey’s y Ferrero Rocher logrando un impacto en los consumidores. A propósito de ello, el 2014 será un año importante para Top Brands, debido a que la compañía está dándole actualmente los toques finales a un sorprendente conglomerado de nueve tiendas en la Zona Franca de Iquique (ZOFRI) en Chile. El negocio en ZOFRI va a ser variado, según Yohoros, y Top Brands operará una amplia gama de instalaciones, desde tiendas duty free con categorías múltiples, hasta espacios enfocados en categorías especificas como Espirituosos, Accesorios, Confitería o Salud y Belleza. Este año se dedicará especialmente a garantizar que sus operaciones más recientes funcionen como una maquinaria bien aceitada. Pero la labor de Top Brands en ZOFRI no ha concluido, pues el operador proyecta inaugurar allí otra tienda este año, esta vez una instalación de categorías

Más grandes y mejores De forma similar a la experiencia de Mannah Duty Free, Danny Yohoros, Presidente de Top Brands, señaló a Americas Duty Free que las condiciones en los países donde hace negocios el operador—Belice, Salvador, Panamá, Honduras, Guatemala, Puerto Rico, Cuba, Colombia y Chile— han sido favorables. En el 2013 las ventas de la compañía en sus tiendas de marca El Dorado Duty Free experimentaron un aumento del 18% en comparación con el 2012. Las categorías de fragancias y espirituosos fueron las más aventajadas. Además, en una tendencia

Top Brands’ business at ZOFRI will be varied, with the company operating a variety of locations from multi-category duty free stores to spaces with a focus on specific categories

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

múltiples de 200 metros cuadrados, que ofrecerá todos los productos que pueden esperar de Top Brands los consumidores, conjuntamente con algunas incorporaciones nuevas. “Estaremos incorporando algunas líneas nuevas a la mezcla de categorías múltiples, como Electrodomésticos, Ropa, y Salud y Belleza”, explicó Yohoros. Top Brands también tiene planes en el campo minorista de frontera, con la esperada apertura de una tienda de 600 metros cuadrados en la floreciente ciudad uruguaya de Rivera para el 2014 . Yohoros nos dijo que, debido a las excelentes relaciones existentes entre proveedores y distribuidores, el establecimiento contará con un impresionante surtido de marcas en las categorías populares del sector minorista de viajes, como medio de satisfacer a los exigentes viajeros de frontera que compran frecuentemente en Rivera. “Hemos enfatizado en comprar propiedad inmobiliaria de primera en Rivera, para asegurar que la ubicación de la tienda estuviese exactamente donde queríamos”, explicó Yohoros.

AMERICAN WHISKE YS

VISI T T HE A M E RI C A N W H ISK E Y B AR I N T HE C L UB O F T HE AM E R I C A S &

E X P E R I E N C E A M E R IC A N WH IS KE Y R E S PONS IBLY. © 2014 Brown-Forman, Jack Daniel’s, Old No 7, Silver Select, Gentleman Jack, Old Forester, and Woodford Reserve are registered trademarks. All rights reserved.

Latin America Report

Cobija, Bolivia is a popular destination for cross-border travelers looking for the best in duty free shopping

“También se nos otorgó recientemente un contrato para operar una tienda en el Aeropuerto Internacional El Dorado en Bogotá, Colombia”, añadió Yohoros. “En esta nueva instalación podremos ofrecer nuestras marcas a los más de dos millones de viajeros que pasan por el aeropuerto”. Dadas las recientes renovaciones en gran escala que se realizaron en el Aeropuerto Internacional El Dorado, y la cantidad de pasajeros que transitan por los aeropuertos—muchos de los cuales son hombres de negocios que buscan específicamente compras duty free de clase mundial—es comprensible que Yohoros esté entusiasmado con el desarrollo y por lo que el mismo implica para el crecimiento futuro de Top Brands y la marca El Dorado Duty Free. Y por si lo anterior no fuese poco, Top Brands remodelará dos tiendas en el Aeropuerto Internacional de El Salvador International, y Yohoros afirmó que los planes de expansión proseguirán durante el año, con la apertura de dos nuevas tiendas en Chuy y Rio Branco, Uruguay, planificada para algún momento del 2014.

Grandes logros en Bolivia Para el operador y distribuidor duty free Grupo Zaire, que opera en Bolivia desde 1984, este año se dedicará a la expansión del negocio. La compañía es la distribuidora exclusiva de productos de tabaco KT&G en Bolivia, y en el 2010 Grupo Zaire se dio cuenta de que no solo existía una enorme oportunidad para la categoría del tabaco en la frontera Bolivia-Brasil, sino que, además, el negocio minorista duty free en general 56

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

estaba en etapa de florecimiento. Como tal, la firma inauguró varias tiendas pequeñas de venta de tabaco en el lado boliviano de la frontera, que sigue operando en la actualidad. En los cuatro años que transcurrieron desde la apertura de las tiendas, Grupo Zaire ha seguido actualizando las instalaciones, incorporando las categorías de Espirituosos y Electrodomésticos en el 2013. Sin embargo, la mejor noticia del año es la esperada apertura en julio de la tienda insignia de la firma en Cobija, la principal zona libre de Bolivia. El establecimiento de Cobija, un proyecto considerablemente mayor de los que la compañía ha emprendido hasta la fecha, tendrá 6,000 metros cuadrados cuando esté concluida, y ofrecerá una selección intercategorías de populares mercancías de tiendas minoristas d de viajes para los compradores que cruzan la frontera. “Esperamos dedicarnos principalmente a los viajeros procedentes de Acre, Rondonia y Amazonas en Brasil”, explicó Boris Zabala, Director de Mercadeo de Grupo Zaire. “También estamos esperando una buena proporción de viajeros procedentes de Madre de Dios en Perú”. Debido al espacio que tendrá la compañía para trabajar en julio, Zabala espera un incremento de ventas superior en la segunda mitad de este año en comparación al segundo trimestre del 2013. El alto funcionario nos dijo que las ventas del año completo de las operaciones existentes del Grupo Zaire en el 2013 totalizaron unos US$10 millones, al mismo nivel del 2012.

“En la tienda insignia tendremos numerosos productos a la venta que no están disponibles actualmente en la zona, por lo que tenemos grandes expectativas, en gran medida porque nuestras investigaciones revelan que los consumidores tienen un intenso interés en estos productos exclusivos”, aseguró Zabala. “Además, la experiencia de compras en sí será diferente de lo que muchos podrían esperar de Cobija. La tienda tendrá aire acondicionado central, una estructura de supermercado, y su propio estacionamiento con capacidad para 60 vehículos”. La nueva tienda de Grupo Zaire, ubicada en la popular Avenida Cornejo, donde opera la mayoría de las tiendas de frontera en Cobija, atraerá la atención, con sus cuatro plantas dedicadas a la venta duty free, y espacios dedicados para Espirituosos, Perfumería y Cosméticos, Electrodomésticos, Tabaco, Relojes, Lentes de Sol, Juguetes, Regalos y Mercancía General; Ropa, Artículos Deportivos, y Equipos de Caza y Pesca; además de un área de restaurantes con un espacio de entretenimiento para niños. “La tienda de Cobija es el principal proyecto que tenemos este año, pero eso no es todo”, concluye Zabala. “En el futuro, Grupo Zaire se propone abrir más tiendas de frontera en Bolivia. Tenemos en proyecto la apertura de otras dos tiendas en Guayaramerín y San Matías a finales del 2015”.

Latin America Report

Por encima del nivel Erasmo Orillac, Director de Motta Internacional, le reveló a Americas Duty Free que el operador concluyó el 2013 con ventas superiores a las del 2012 y “en correspondencia con nuestras expectativas para ese año”. En términos de categorías con mayor venta, añadió que no hubo sorpresas, pues los espirituosos, así como la perfumería y cosméticos fueron las más populares para los viajeros. En cuanto a los productos específicos con buenos resultados, agregó que entre los mejores estuvieron la gama Johnnie Walker de whiskeys escoceses, y los perfumes de Chanel y Carolina Herrera. La revolución digital y la mejor manera de aprovechar la creciente cifra de viajeros en Internet, han sido temas de gran debate últimamente en el sector minorista de ventas. A fines del año pasado, Motta tomó una medida sustancial dirigida a los pasajeros del Aeropuerto Tocumen en Panamá que esperan sus respectivos vuelos, con la inauguración del sitio Web www.attenza.net. La página les ofrece a los viajeros la opción de ver todo el catálogo de Attenza Duty Free en línea, y reservar productos antes de la fecha del vuelo. Dado que los pasajeros que aprovechan este servicio buscan generalmente acelerar su experiencia duty free una vez en el aeropuerto, la zona de recogida está separada de las tiendas Attenza, y propicia un servicio más rápido.

Orillac agregó que Motta Internacional espera que las tendencias de ventas que caracterizaron al 2013 prosigan este año. Se están incorporando nuevas marcas todo el tiempo—recientemente Omega en Colombia, y Tommy Hilfiger y Hugo Boss en Quito y Bogotá—y el operador sigue cumpliendo con el compromiso de un calendario de promociones regulares. “Nuestras promociones tienden a ser agresivas y creativas”, afirmó Orillac, “lo cual ayuda a diferenciarnos de la competencia. Este año el enfoque estará en mantener el nivel de actividad promocional, mantener las opciones del nuevo sitio Web de pedidos previos, y seguir nuestro programa de capacitación del personal, para garantizar que estemos ofreciendo un servicio al cliente por encima del nivel en todos los aspectos”.

“This year the focus will be on maintaining the level of promotional activity, increasing the options on the new preorder website and continuing our staff training program.” ERASMO ORILLAC, DIRECTOR, MOTTA INTERNACIONAL

The new Attenza Duty Free pre-order website gives air travelers the option to view the entire Attenza catalogue online and reserve products ahead of their travel date

One of Motta Internacional’s popular Attenza-branded duty free stores

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Latin America Report

En la encrucijada de tres naciones De forma muy similar a Mohamed Mannah, Charif Hammoud, Vicepresidente de Monalisa, minorista de frontera en Paraguay, citó un descenso en la primera mitad del 2012, al que siguió una recuperación en las ventas durante el período de junio a diciembre. Las categorías de Perfumería y Cosméticos, Modas, Espirituosos Gourmet, Lentes de Sol y Relojes estuvieron entre las de mayores ventas en la extensa tienda duty free del operador en la zona comercial de Ciudad del Este. Luego de más de 40 años de operar en la misma instalación, Monalisa ha logrado crear una clientela fiel. A propósito de ello, el operador ofrece numerosos productos en diferentes categorías que son difíciles de hallar en otras partes de la región, lo cual ayuda realmente a mantener esa lealtad. Pero lo más importante es la experiencia relajada y lujosa que ofrece la tienda. Hammoud explicó que para Monalisa es muy importante la programación de renovaciones regulares, a fin de garantizar que esa sección de la tienda esté al nivel de los exigentes gustos de la clientela. “Inauguramos dos restaurantes recientemente—uno con el nombre simple de ‘Sushi’ y el otro, ‘Bistro MO’—y también ampliamos el área de comida gourmet”, explicó Hammoud. “La ampliación del espacio de comida gourmet nos ha permitido la incorporación de varias marcas nuevas de confitería”. Conociendo, al igual que Motta Internacional, la importancia de estar a tono con los progresos tecnológicos, Monalisa instaló recientemente un punto de conexión inalámbrica gratuita en la tienda, lo cual les proporciona a los consumidores la opción de conectarse a Internet mientras hacen sus compras. Este año, el operador se propone inaugurar un espacio dedicado para productos Victoria’s Secret, así como incorporar un área VIP de cosméticos, y renovar la sección de Modas y Artículos para el Hogar.

“Strong growth in the GDP and the construction of a second bridge connecting Ciudad del Este to Brazil is a good indication that there will be more opportunities for everyone in 2014.” CHARIF HAMMOUD, VICE PRESIDENT, MONALISA

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

THE WARRIOR SERIES This exclusive Global Travel Retail range is a journey of flavours. Navigating from classic citrus, vanilla of American oak sherry casks, to the rich, fruity and spicy European oak sherry cask flavours.

www.highlandpark.co.uk

Please enjoy our whisky responsibly

Latin America Report

Monalisa’s new Bistro MO offers shoppers more food options at the Ciudad del Este store

En el aspecto doméstico, Monalisa sigue ampliando sus tiendas de perfumería de marca Aphrodite, y capacitando al personal para ofrecer un excelente servicio al cliente, lo cual, combinado con el retorno de la promoción “Gran Venta” del año pasado, garantizará la buena marcha del campo duty free del negocio. Hammoud se muestra optimista sobre lo que le depara el 2014 a Monalisa y a Paraguay. “Un sólido crecimiento en el PNB y la construcción de un segundo puente que conecta a Ciudad del Este con Brasil es una buena indicación de que habrá más oportunidades para todos en el 2014”, concluyó el alto funcionario.

Perspectiva positiva En Guatemala, el 2013 fue en cierta medida un año fuera de lo convencional para la Sociedad Protectora Del Niño (SPN), debido a que las tiendas del operador en el Aeropuerto Internacional La Aurora International estuvieron cerradas durante dos meses por renovaciones. Sin embargo, SPN terminó el año con un crecimiento del 2% en comparación con las ventas del 2012. Alejandro Asturias, Gerente General de SPN, nos dijo que, si bien espera que aumenten un poco las ventas con relación al 2013, los resultados de fin de año evidenciaron una buena marcha para los negocios en el 2014. “La situación económica en Guatemala es muy estable, aunque el crecimiento no fue tan sólido como esperábamos en el 2013”, explicó. “Además, la economía de Estados Unidos sigue mejorando, y la posibilidad de

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

que más estadounidenses viajen en el 2014 nos beneficia a todos los participantes del sector duty free”. Entre las marcas de mayores ventas en las dos principales categorías de SPN (Perfumería y Cosméticos y Espirituosos) están Carolina Herrera, Chanel, Dolce & Gabanna, Christian Dior, Ralph Lauren, Zacapa, Johnnie Walker, Old Par, Bacardi, Grey Goose y José Cuervo. Asturias añadió que, luego de haber concluido las renovaciones de las tiendas, la compañía se puede enfocar ahora en el negocio de incrementar las ventas con la incorporación de dos nuevas marcas—SPN realiza mensualmente la combinación de productos—y en garantizar que se les dé la atención apropiada en la tienda a las grandes inauguraciones de productos del año. “Por supuesto, el servicio al cliente es otra área que siempre nos esforzamos en

mejorar”, aseguró Asturias. “Además de garantizar que los consumidores encuentren las marcas que desean, es importante que reciban un servicio de calidad”. SPN también se propone garantizar que las actividades promocionales ocupen un primer plano este año. “Tenemos promociones planificadas para cada mes del año, en cooperación con los proveedores”, destacó Asturias. “Esto, combinado con las tiendas recién renovadas, y con nuestro enfoque en la selección de productos; deberá dar como resultado ventas sólidas durante el 2014”. “Sin embargo, independientemente de lo que estamos haciendo en las tiendas, es importante destacar que siempre estamos concentrados en el objetivo principal: ayudar a los niños guatemaltecos y a sus familias. Quiero agradecer a todos nuestros proveedores y clientes por ayudarnos en esta causa tan importante”, concluyó Asturias. 

With newly renovated stores at La Aurora International Airport in Guatemala, Sociedad Protectora Del Niño is ready to take on 2014 with a full calendar of promotional activities

Monseñor Rodríguez, 654 - Ciudad del Este, PARAGUAY - Tel +595 (061) 500 645 www.monalisa.com.py - facebook.com/MonalisaParaguay

Flemingo International

Breaking new ground by

RYAN WHITE

Flemingo bursts onto the Americas travel retail scene with the clear goal of continuing to target emerging markets on the road to US$20 billion in sales by 2020

IAADFS 2013, the possibility of Flemingo International breaking into the highly lucrative Americas duty free channel was but a whisper, but a year is a long time, and the operator has been hard at work securing contracts that will help ensure that it reaches its vision of US$2 billion in sales by the year 2020. Most recently in terms of concessions announcements, Flemingo secured three F&B concessions and one fashion concession at Princess Juliana International Airport in St. Maarten, known by some as “the gastronomic capital” of the Caribbean. The company will run a full service restaurant, coffee and sandwich bar, a coffee kiosk and a multi-brand fashion concession. The four concessions are all airside in a combined space of 388 square meters. Princes Juliana Airport, which saw 1.7 million passengers in 2012, awarded a seven-year concession for the F&B operations and a five-year contract for the fashion shop. Flemingo notes that it will create a true “sense of place” through design and communication to support the airport’s goal of making St. Maarten the destination for future holiday travelers to the Caribbean. Flemingo also recently won a 10-year contract at Salvador, Brazil, and Atul Ahuja, CEO of Flemingo, says he sees more opportunities in emerging markets: “These concessions are important as we diversify into other formats [and] seek longer contracts and relationships with airport owners, taking us one step closer to our vision.” This Starter store, opened in Juan Santamaria International airport in January, represents Flemingo’s entrance into travel retail in the Americas and bodes well for the company’s future development in the region

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

What started it all Flemingo’s first location in an Americas airport—the Starter convenience store brand—commenced its operations at Juan Santamaria International airport, Costa Rica in January. The concession was originally announced in mid-2013. The operation is located in a space of 74 square meters at the arrivals section with a contract period of four years. The store carries food and beverages, including snacks, sandwiches, hot dogs, rolls, coffee, water, soft drinks and beer, in addition to flowers, toiletries, gifts, souvenirs and travel accessories. The business has been steadily growing from the start of the operations and the response from the passengers and airport staff has been very positive. Arrival passengers traveling through the airport totaled 2.3 million last year. Flemingo reports that the traffic is a mix of travelers from the US, Canada, Latin America and Europe. Starter also plans to create an Airport Employee Service where home utility products will be delivered to each employee’s work station by 6 pm if they order by noon. The brand also plans to launch combo packs (meal, water and beverage), as well as goods manufactured and retailed exclusively from Costa Rica in the near future. For Flemingo’s part, this format plays an integral part in achieving its 2020 turnover goals. In related emerging market news, the company was recently awarded contract to operate eight convenience and book store formats in two airports in Indonesia. With the brands Starter and Xpress operating today at three locations (Gdansk as part of a master retail contract, Costa Rica and Malaysia), Flemingo is set to open a further 40 outlets by the end of 2014, largely in Latin America and South East Asia. 

Tyohu greisat surprise

g n i r b l il w d n e i new fr

This year Kinder proudly presents its new pilot mascot, set to become the brand ambassador of the chocolate invented for kids in travel retail and the favourite travel companion of children, parents and grown-up fans alike. A 360째 platform has been developed around this character to guarantee a unique and exclusive shopping experience with dedicated gifting articles of Kinder Surprise T7 and Kinder Chocolate, eye-catching and traffic-generating POSM and interactive in-store activations. Watch your sales take off with this new friend!

Brazil-Uruguay border

A future of

opportunities Americas Duty Free discusses land border duty free in Uruguay with Secretary-General of Cámara de Empresarios de Free Shops del Uruguay Carlos Loaiza Keel by

he Uruguay-Brazil border has long been a favorite shopping destination of Brazilians looking for deals across the most popular travel retail categories, and the opportunity that the area represents for South American travel retail cannot be understated. Americas Duty Free recently sat down with Carlos Loaiza Keel, SecretaryGeneral of Cámara de Empresarios de Free Shops del Uruguay (CEFSU), to get a sense of the history of the border shop business in Uruguay and an idea of where the industry is headed in the years to come.

RYAN WHITE

“The border shop business in Uruguay started over two decades ago in a small number of Uruguayan border towns,” Loaiza Keel tells us. “Since then the industry has expanded considerably into what we know today—a thriving business to say the least.” Of course, border shops anywhere, and particularly in Uruguay, have always been especially sensitive to currency fluctuations, and the rise of the Brazilian middle class’ buying power over the last five years or so—albeit now starting to slow slightly—has generally resulted in booming sales never before seen in the region’s border shop

(from left) Carlos Loaiza Keel, Secretary-General, Cámara de Empresarios de Free Shops del Uruguay; Luis Porto, Uruguay’s Under Secretary of Foreign Relations; and José Luis Donagaray, Secretary-General, ASUTIL at the First Annual Border Meeting in Rivera, Uruguay

“New consumption habits on the part of Brazilians have helped to make travel retail in the region very vibrant. The effects can be seen from simply speaking to the operators, but CEFSU has also performed studies that back up the more anecdotal evidence.” CARLOS LOAIZA KEEL, SECRETARY-GENERAL, CÁMARA DE EMPRESARIOS DE FREE SHOPS DEL URUGUAY

business. “New consumption habits on the part of Brazilians have helped to make travel retail in the region very vibrant,” he says. “The effects can be seen from simply speaking to the operators, but CEFSU has also performed studies that back up the more anecdotal evidence.” Indeed, the border shop business in Uruguay is worth over US$300 million, representing an important contribution to the country’s economy, especially where taxes and job creation are concerned (the border business represents 11% of Uruguay’s customs earnings and up to 30% of employment in some border towns). CEFSU itself was formed in 2011 “as a reflection of the new market realities on the Uruguay-Brazil border,” Loaiza Keel explains. The organization’s remit is to collaborate with operators, suppliers, service providers and above all the Government of Uruguay for the purpose of regulation and the benefit of the industry at large.

The perfect partnership Given the importance of the land border travel retail business in Uruguay, CEFSU recently partnered with Asociación Sudamerica de Tiendas Libres (ASUTIL) for the First Annual Border Meeting, which took place at the Rivera Casino & Resort in Rivera, Uruguay. Themed “The Border: A Future of Opportunities,” the meeting

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Brazil-Uruguay border brought together major players with interests in the future of land border duty free in Uruguay. Entrepreneurs, professionals and various commercial sector agents from Uruguay, Argentina and Brazil participated, including prestigious analysts from Argentina, Brazil and Uruguay, and the Under Secretary of Foreign Relations Luis Porto. During his speech, Porto stated that the economic activity developed in the border regions is essential for building bilateral relations between neighbor-countries. Considering the importance of Uruguay’s relations with Argentina and Brazil, the Government official remarked that “the borders are the gateway to the future.” The conference further stressed the importance of the free shops sector for the Uruguayan economy in general and the Uruguay-Brazil border region in particular. For his part, Secretary-General of ASUTIL José Luis Donagaray highlighted the importance of the large investments in the north and northeast border regions such as Siñeriz’s new store and the Melancia shopping mall in Rivera—following the example of Neutral and La Riviera stores—and the forthcoming construction of a shopping

ASUTIL Secretary-General José Luis Donagaray cited Siñeriz’s new store in Uruguay as a prime example of the growth the country’s land border business is experiencing

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

mall and a hotel in Rio Branco recently announced by Duty Free Americas. And the outlook for the Uruguayan border store business is strong. Tatiana Pinheiro, Senior Economist at Santander Brazil, estimated during her talk at the meeting that over the next 18 months, Brazil will have positive indicators, mainly due to the forthcoming National Elections. CPA Ferrere partner Gabriel Oddone, on the other hand, indicated that the scenario is changing in Uruguay. “The cheap dollar, low interest rates and capital inflow have come to an end. The good news is that the nation is prepared to face the new scenario and avoid dramatic situations,” he stated. Finally, Argentinean economist Carlos Melconian remarked that his country “will definitely have to take economic measures between 2014 and 2015,” and noted that the recent legislative elections “marked the end of a cycle.” “Given the success of the first meeting, we’re planning on making it an annual event,” Loaiza Keel tells Americas Duty Free. “The border with Brazil has been an area of increasing foreign investment in recent years and I believe the retail industry there

should certainly have a forum whereby we can discuss developments and plan our future course of action.”

Moving forward Of course, it’s no secret that Brazil has its own plans for duty free stores along the Uruguay-Brazil border. Loaiza Keel tells us that the Government of Brazil has approved the concept and regulation is currently underway. Nonetheless, he tells us that it may be some time before consumers can purchase duty free goods on the Brazilian side of the border. “It’s a complex and challenging process,” he says. We asked him about his point of view regarding the competition that Brazilian border stores would necessarily present to shops on the Uruguay side, and clearly his view is that more development in the region is good for the industry as a whole. “Our role is to help support the project with the belief that it will bring further prosperity and development to the border,” he says. “Of course, CEFSU is also working to ensure that both sides of the border are working in a way that ensures a level playing field.” In terms of upcoming challenges to the

industry in Uruguay, Loaiza Keel says that effectively managing slower growth in relation to Brazil’s spending is certainly on CEFSU’s radar. “Retail is a very demanding industry,” he explains. “The ability of CEOs to continue being creative as a means of further growing their businesses will be key in the coming months and years.” He also notes that corporate social responsibility is something that should be high on the list of priorities for border retailers. “Social and economic development within the towns and cities where retailers operate is something that should continue to be addressed,” Loaiza Keel explains. With regard to upcoming opportunities for the border store business in Uruguay, Loaiza Keel sees consolidation as a positive, provided it’s handled in the correct manner: “If it’s done in a sensible and creative way, it can certainly lead to more business in Uruguay,” he says. For CEFSU’s part, the organization will continue to facilitate dialogue among operators, suppliers and the Government of Uruguay while working in the fields of regulation and fostering best practices. “It is essential to have a legal framework that may provide certainty and security for investors, and protect our border from certain illegal practices which have been in place for years in other borders around the world, which hamper the sector’s sustainable development in the long term. “As always, will continue working toward a bigger and better land border duty free industry here in Uruguay as we serve our members and society at large,” Loaiza Keel concluded. 

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

Brazil-Uruguay border

Un futuro de

oportunidades Americas Duty Free analiza el negocio duty free de frontera terrestre en Uruguay con Carlos Loaiza Keel, Secretario General de la Cámara de Empresarios de Free Shops del Uruguay by RYAN WHITE

a frontera Uruguay-Brasil ha sido desde hace muchos años un destino de compras favorito para los brasileños en busca de buenos precios en las categorías más populares del sector minorista de viajes, y la oportunidad de que la zona representa para ese tipo de negocios en Suramérica no puede pasarse por alto. Americas Duty Free conversó recientemente con Carlos Loaiza Keel, Secretario General de la Cámara de Empresarios de Free Shops del Uruguay (CEFSU), para analizar la historia del negocio de tiendas de frontera en Uruguay, y

Cámara de Free Shops del Uruguay’s Board of Directors

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

tener una idea de adónde se dirigirá la industria en los próximos años. “El negocio de tiendas de frontera en Uruguay comenzó hace dos décadas en un pequeño grupo de ciudades limítrofes uruguayas”, dijo Loaiza Keel. “Desde entonces, el sector se ha ampliado considerablemente hasta lo que conocemos hoy: un negocio floreciente, para decirlo con palabras simples”. Por supuesto, las tiendas de frontera en todas partes, y particularmente en Uruguay, han sido especialmente sensibles a las fluctuaciones del cambio de divisas, por lo que el incremento del poder adquisitivo

de la clase media brasileña en los últimos cinco años más o menos—que en estos momentos comienza a experimentar un ligero descenso—ha dado generalmente como resultado un incremento de ventas nunca antes visto en el negocio de tiendas de la región fronteriza. “Los nuevos hábitos de consumo por parte de los brasileños ha contribuido a que el sector minorista de viajes de la región sea muy vibrante”, añadió Loaiza Keel. “Solo basta conversar con los operadores para apreciar esos efectos, pero la CEFSU también ha realizado estudios que complementan la evidencia más anecdótica”. En realidad, el negocio de tiendas de frontera en Uruguay tiene un valor superior a los US$300 millones, y representa una importante contribución a la economía del país, especialmente en lo tocante a impuestos y creación de empleos (el negocio de frontera representa el 11% de los ingresos aduanales de Uruguay, y hasta el 30% de

los empleos en algunas ciudades limítrofes). La propia CEFSU fue creada en el 2011 “como reflejo de las nuevas realidades del mercado en la frontera UruguayBrasil”, explicó Loaiza Keel. El cometido de la organización es colaborar con operadores, suministradores, proveedores de servicios y, sobre todo, el gobierno de Uruguay, con propósitos de regulación y el beneficio de la industria en general.

La alianza perfecta Dada la importancia del negocio minorista de viajes fronterizo en Uruguay, CEFSU creó recientemente una alianza con la Asociación Sudamericana de Tiendas Libres (ASUTIL) para la realización de la Primera Reunión Anual de Frontera, que se llevó a cabo en el Rivera Casino & Resort de Rivera, Uruguay. El evento, cuyo tema fue “La frontera: un futuro de oportunidades”, congregó a importantes factores con intereses en el futuro del negocio duty free de frontera en Uruguay. Participaron empresarios, profesionales y varios agentes del sector comercial de Uruguay, Argentina y Brasil, incluyendo prestigiosos analistas de esas naciones, y Luis Porto, Subsecretario del Ministerio de Relaciones Exteriores de Uruguay. En su discurso, Porto señaló que la actividad económica desarrollada en las regiones fronterizas es esencial para las relaciones bilaterales entre naciones vecinas. Considerando la importancia de las relaciones de Uruguay con Argentina y Brasil, el funcionario gubernamental destacó que “las fronteras son la puerta al futuro”. La conferencia evidenció aun más la importancia del sector de tiendas libres para la economía uruguaya en general, y para la región fronteriza Uruguay-Brasil en particular. Por su parte, Luis Donagaray, Secretario General de ASUTIL, resaltó el papel vital desempeñado por las grandes inversiones en regiones fronterizas del norte y el nordeste, como la nueva tienda de Siñeriz y el centro comercial Melancia en Rivera—siguiendo el ejemplo de las tiendas Neutral y La Riviera—y la próxima construcción de un centro comercial y un hotel en Rio Branco, anunciada recientemente por Duty Free Americas. La perspectiva para el negocio de tiendas de frontera en Uruguay es esperanzadora. Tatiana Pinheiro, Economista Principal de Santander Brazil, estimó durante su charla en la reunión que en los próximos dieciocho meses, Brasil tendrá indicadores positivos, debido en gran medida a las elecciones nacionales que se avecinan. Por su parte, Gabriel Oddone, socio de CPA Ferrere, indicó que la situación está cambiando en Uruguay. “El dólar barato, las bajas tasas de interés y la afluencia de capital han llegado a su fin. La buena noticia es que la nación está preparada para enfrentar el nuevo orden de cosas, y evitar situaciones dramáticas”, aseguró. Finalmente, Carlos Melconian, economista argentino, destacó que su país “tendrá definitivamente que tomar medidas económicas entre el 2014 y el 2015”. Además, resaltó que las recientes elecciones legislativas “marcaron el final de un ciclo”. “Dado el éxito de la primera reunión, nos proponemos convertirla en un evento anual”, aseguró Loaiza Keel a Americas Duty Free. “La frontera con Brasil ha sido un área de creciente inversión extranjera en los últimos

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

Brazil-Uruguay border

Argentinean Economist Carlos Melconian gives attendees at the First Annual Border Meeting his take on what the future holds for the region

años, y creo que el sector minorista allí debería tener realmente un foro en el que podamos analizar los acontecimientos, y planificar la línea de acción futura”.

En marcha hacia delante Por supuesto, para nadie es un secreto que Brasil tiene sus propios planes para las tiendas duty free en la frontera con Uruguay. Loaiza Keel nos reveló que el gobierno brasileño ha aprobado el concepto, y la regulación está en marcha actualmente. Sin embargo, añadió que transcurrirá algún tiempo hasta que los consumidores puedan comprar mercancías duty free en la parte brasileña de la frontera. “Es un proceso complejo y difícil”, agregó. En respuesta a nuestra pregunta sobre su punto de vista con respecto a la competencia que las tiendas brasileñas de frontera significarían necesariamente para las del lado uruguayo, nos respondió claramente que más desarrollo en la región beneficia al sector en general. “Nuestro papel es contribuir al apoyo del proyecto con la certeza de que traerá más prosperidad y desarrollo a la frontera”, dijo. “Por supuesto, CEFSU también está trabajando para asegurar que ambos lados de la frontera funcionen de una forma que garantice igualdad de condiciones”. En cuanto a los próximos retos para el sector en Uruguay, Loaiza Keel afirmó que el manejo efectivo de un crecimiento más lento en relación con el nivel de gastos de Brasil es un factor que CEFSU está considerando. “El comercio minorista es una industria muy exigente”, explicó. “La capa-

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

cidad de los directores ejecutivos de seguir siendo creativos como medio de desarrollar más sus negocios será clave en los meses y años futuros”. El prominente funcionario también destacó que la responsabilidad social corporativa es algo que debe figurar primordialmente en la lista de prioridades de los minoristas de frontera. “El desarrollo social y económico en los pueblos y ciudades donde operan los comerciantes minoristas es algo que debe continuar atendiéndose”, aseguró Loaiza Keel. En lo referente a las próximas oportunidades para el negocio de tiendas de frontera en Uruguay, Loaiza Keel vio la consolidación como algo positivo, siempre y cuando se realice en forma correcta: “Si se hace de forma sensible y creativa, puede conducir ciertamente a más negocios en Uruguay”, puntualizó. Asimismo, CEFSU seguirá propiciando el diálogo entre operadores, proveedores y el gobierno de Uruguay, y trabajando en los campos de regulación y fomento de metodologías acertadas. “Es esencial contar con un marco jurídico que ofrezca certeza y seguridad a los inversores, y que proteja nuestra frontera contra ciertas prácticas ilegales que se han venido realizando durante años en otras fronteras del mundo, lo cual afecta negativamente el desarrollo sostenido del sector a largo plazo” añadió Loaiza Keel. “Como siempre, seguiremos trabajando en pos de un sector duty free de frontera más grande y mejor aquí en Uruguay y para servir a nuestros miembros y a la sociedad en general”, concluyó Loaiza Keel. 

ASUTIL Secretary-General José Luis Donagaray cited Siñeriz’s new store in Uruguay as a prime example of the growth the country’s land border business is experiencing

World Duty Free Group

Finding a balance World Duty Free Group targets areas of Latin America with bespoke, airport-specific stores in a large-scale refurbishment project while still maintaining its overall identity by RYAN WHITE rebuilt to present a modern and appealing design that maintains its true concept and sense of space. Moreover, the other main store in Chile, international departures, is currently under reconstruction, and is expected to re-open this year. It will be a walkthrough store with an increased area from 1170 square meters to 1600 square meters.

From regional products to traditional dancers, WDFG has redoubled its focus on making sure its Latin American operations exude a local appeal

mericas Duty Free recently spoke with Pedro Castro, International Operations Director at World Duty Free Group (WDFG), about the operator’s ambitious renovation projects aimed at giving its stores in Latin America a more local look and feel while still maintaining a strong global brand presence. During the conversation he also told us about performance in Latin America in 2013 and what he expects from the region in 2014. With renovations ongoing throughout the year and a full calendar of promotions planned, he tells us WDFG will certainly be busy.

Americas Duty Free: Have there been any recent renovations in any of your Latin American stores lately? Can you explain the nature of the renovations and what stores are affected? Pedro Castro, International Operations Director, WDFG: In August 2013 we completed significant refurbishments to the commercial space at Santiago de Chile Airport and redeveloped the international arrivals and departures lounges there. The second most important commercial area at Santiago Airport is the international arrivals walkthrough store, at nearly 850 square meters. The store was recently

“In 2014 we hope to take travel retail experience in the region to the next level. The spaces we are developing will offer customers the best shopping experience in a tailored, unique and engaging environment with expert staff.” PEDRO CASTRO, INTERNATIONAL OPERATIONS DIRECTOR, WDFG

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

ADF: How was business in the Latin American region in 2013 as compared to 2012? PC: The performance of WDFG’s operations in Latin America increased during 2013. With passenger numbers growing and spend per passenger increasing, 2013 brought important operations to our Latin America region, particularly in Mexico. Consequentially, Latin American business presented a good commercial performance. This is especially considered successful, as one of the main operations in Chile was affected by the restructuring taking place in 2013. WDFG will continue to deploy its ambitious refurbishment plan for the region, which includes optimizing store locations, implementing walkthrough stores, introducing new commercial brands in the Latin American market, a new digital marketing strategy, the “Contentainment” concept, and, of course, new buying experiences. Our main target is to achieve the best results whilst delivering exceptional customer service. This new approach will help us raise spend per passenger to levels comparable to other airports in the WDFG portfolio. ADF: Have you opened any new stores lately? If so, can you tell us about them? PC: WDFG is leading an ambitious renovations plan to develop Latin America airport

advertisement removed for legal reasons

World Duty Free Group Promotions like this tequila tasting in Mexico’s Cancun Airport are an important aspect of WDFG’s commitment to consumer engagement

stores in 2014. WDFG is advancing a total redesign of the commercial areas, adding more local flavor, and focusing on the development of the walkthrough stores. Depending on the airport location, some stores will experience a complete rebuild, and others will be refurbished and redeveloped. The aim is to design each store to reflect its location and unique passenger profile. This means continuously developing stores, regularly updating product ranges and adding new brands whilst considering new market trends and consumer needs. A good example of this is the total store renovation at the departures store in Cancun Airport T2, Mexico. Furthermore, we are reopening our main store in Cancun, on the second floor of T2, and will transform it into a walkthrough of 981 square meters, entirely rebuilt and renovated. WDFG recently opened its first MAC Cosmetics standalone store in Latin America, located at Cancun T3. And in the second half of the year, WDFG also will also open another MAC store. With these significant openings, we continue to reinforce the group’s presence in Mexico. ADF: What promotions have you run in Latin America recently? What was the response? PC: WDFG is constantly in talks with brand partners in order to meet passengers’ needs and expectations when visiting our stores. Through innovative, targeted marketing campaigns, we are able to create effective pre-awareness of our extensive and exclusive ranges, especially in tandem with key launches. For example, in our Mexico stores we celebrated the Super Bowl with special, tailored promotions and in-store enter76

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

tainment activities, and with our Summer Drinks festival in Chile we create in-store theatre that engages passengers to ensure memorable, unique shopping experiences. We want to implement a sound mix between specific campaigns for each country and others that we do at a global scale. ADF: How do you feel about 2014 in terms of your Latin American business? PC: With passenger numbers growing and spend per passenger increasing in Latin America, the future for airport retail looks bright. The rapidly developing Latin American travel markets are driving a large percentage of this, but passenger spending in markets has also grown. We have moved further into Chile and Mexico, as well as beginning operations at Jamaica’s Sangster Airport. It is very important to be mindful that with the new walkthroughs and refurbishments we expect the core business to grow across beauty, liquor, confectionary, tobacco and in other category areas like sunglasses, watches or souvenirs. In every operation we open around the world, we strive to have the most unparalleled stores in the industry. We want to create attractive commercial areas with wide aisles, customizing furniture and implementing the latest technologies. Tailoring stores to passenger profiles and to the country in which we operate ensures a truly unique and enjoyable shopping experience. ADF: What do you feel is the biggest untapped opportunity in 2014 for WDFG? PC: In 2014 we hope to take travel retail experience in the region to the next level. The spaces we are developing will offer customers the best shopping experience in a

tailored, unique and engaging environment with expert staff that will provide the most efficient service to all passengers. We enhance business by engaging potential customers through pre-awareness product demonstrations, expert advice and innovative theatre in the stores. WDFG’s program for 2014 delivers multi-channel, commercially focused digital marketing campaigns, promoting new, established and exclusive products to the most brand aware customers in the world. ADF: Conversely, what do you feel is the biggest challenge for WDFG in 2014? PC: As we continue through the process of redesigning and renovating our stores, our main concern is timing. We want to open these new stores as soon as possible, and that means beginning with refurbishments in many countries at the same time. We will increase our retail space in most of our operations in Latin America. The main challenge for this year is to complete the work’s schedule in the entire region. 

Pedro Castro gives the example of WDFG’s operations in Cancun as representative of the look and feel that the operator is aiming for in many recent refurbishment projects throughout Latin America

The perfect way to enjoy Patr贸n is responsibly. 漏 2013 Patr贸n Spirits International AG, Schaffhausen, Switzerland. 40% Alc./Vol.

Handcrafted in Mexico. Coveted worldwide. Patr贸n tequila is made in small batches in Jalisco, Mexico, the home of authentic tequila. The fruits of that craftsmanship are cherished worldwide.

Simply Perfect. patronspirits.com

Asian travelers in Americas

World Duty Free Group’s Vancouver location is of particular interest, especially considering the high volume of Asian travelers

The

ASIAN IMPACT

here’s no question that Asians make up a huge portion of global airline passengers, their economic impact felt at airports and local communities around the world. One of the many retailers who’ve directly benefitted from traffic from the East is DFS Group, the world’s largest luxury travel retailer. With airport outlets and its T Galleria department stores selling everything from fashion and fragrances to jewelry, wines and tobacco, DFS is well aware of the importance of the Asian traveler. “While DFS caters to the international traveler, it is no coincidence that DFS took root in Asia,” says Polly Nelson, Managing Director, North America, DFS. “We have always had a huge focus on and deep expertise in serving Asian travelers, and believe that they will continue to make markets in North America, as well as the rest of the world.” Similar sentiments were shared by Freda Cheung, Managing Director at World Duty Free Group (WDFG) Vancouver, another

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Retailers, airlines and airports continue to reap the rewards as more and more Asians find themselves traveling each year

leading travel retailer with over 500 stores in 21 countries. According to Cheung, “Asian travelers have been on our radar for over three years,” and they play a significant role in the company’s growth and development. “During this time, through focused and strategic effort placed on targeting these passengers, we have seen an extensive increase in average ticket value and conversion rate, resulting in growth in overall revenue,” she says. It’s clear that the impact of the Asian traveler is invaluable, especially for travel retailers like DFS and WDFG. With so much of their business dependent on this market alone, it’s no wonder companies are investing their time and resources to understanding Asian travelers inside and out.

Knowing the Market Not only does WDFG boast hundreds of stores in four continents, it has also developed its own unique commercial concepts tailored to match the purchasing preferences of travelers. Through these main tax & duty free and specialist concept stores, the com-

pany sells a variety of products that includes fragrance, liquor, skincare, cosmetics, food, souvenirs and more. Its Vancouver location is of particular interest, especially considering the high volume of Asian travelers. In fact, according to Cheung, Asians have consistently accounted for over half of all international passengers passing through Vancouver Airport over the last five years. “Asian spend is above average compared to other international passengers. This is a steady upward trend and we expect this to continue,” she says. “Because of their significance to the business, we continue to invest in understanding the needs and requirements of our Asian customers.” DFS, which focuses on providing premium shopping to Asian travelers in particular, has recognized that this market is incredibly diverse and ever changing. “During the 1980s and much of the 90s, the most prolific group of travelers were visitors from Japan,” notes DFS’ Nelson. “Today, travelers from the People’s Republic of China are a major driver for growth in the luxury

Freda Cheung, Managing Director at World Duty Free Group (WDFG) Vancouver notes that gifting plays an integral role in Asian culture, which is why multi-packs and gift sets with substantial savings are a must in a retailer’s product lineup

All DFS customers are offered a 100% Worldwide Guarantee, which allows them to exchange, repair or return products at any of its stores around the world

DFS, which focuses on providing premium shopping to Asian travelers in particular, has recognized that this market is incredibly diverse and ever changing

The most popular categories among Asian consumers at World Duty Free Group’s Vancouver stores are beauty, luxury fashion and premium liquor

retail market, and based on the enormous size of that potential travel market, they will likely remain the top Asian market for the foreseeable future.” Nelson also pointed out South Korea, Vietnam, Thailand, Indonesia, India and Russia as emerging middle class markets, all of which pull in major numbers at its shops in San Francisco International Airport (SFO), John F. Kennedy International Airport (JFK), and Los Angeles International Airport (LAX). At LAX, of the 17.8 million passengers that passed through in 2013, 11 million (or 61%) were from Asia. “The Mainland Chinese tourist market is growing very rapidly, with the Chinese government allowing tourist travel during the past few years,” says Nancy Suey Castles, LAX Public Relations Director, Los Angeles World Airports. “Also, with the US government allowing South Korea and Taiwan to participate in the Visa Waiver program, this has resulted in increasing number of tourists from those two countries during the last two years.”

Their spending habits Part of knowing your customers is tracking their spending habits. What are they buying? Where are they buying it? And who are they buying for? According to DFS North America, the typical Asian customer spends more than double what the overall average spend is for all non-Asian nationalities. “In fact, a significant proportion of our customers visit multiple DFS stores across a number of our locations globally,” adds Nelson. “This is true for all customer nationalities, but is particularly important for maximizing the productive potential of our Asian customers.” WDFG’s Cheung notes that gifting plays an integral role in Asian culture, which is why multi-packs and gift sets with substantial savings are a must in a retailer’s product lineup. “At WDFG, we focus predominantly on delivering unparalleled in-store experiences. This is achieved through combining the fantastic expertise of our knowledgeable sales associates with proficient customer services to help make the shopping experience more

enjoyable. As a result, these positive experiences enhance the buying decision in favor of higher conversion rates,” says Cheung.

What are they buying? When Asian travelers arrive at DFS’ stores in North America, says Nelson, they tend to buy cosmetics and spirits as either keepsakes or gifts. The most popular brands within the product groups “are generally consistent with the most popular brands in each customer’s respective home country.” Over at WDFG, the most popular categories among Asian consumers at its Vancouver stores are beauty, luxury fashion and premium liquor. In particular, says Cheung, “beauty brands such as Chanel, Crème de la Mer and Estée Lauder have proven especially favored” while in luxury fashion Hermès, Burberry, Bvlgari and Cartier are high on their list. And across the company’s premium liquor offering, Cheung recognized Remy Martin Louis XIII and rare Scotch whiskey as extremely prevalent among Asian customers.

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

Asian travelers in Americas

Catering to the customers When asked exactly how DFS North America targets Asian travelers, Nelson credits the company’s close relationships with governmental groups, travel agencies and other key stakeholders in promoting travel, identifying travel trends and marketing the company’s services. She acknowledged that in order to service Asian travelers, a comprehensive approach works best, one that starts even before they begin their travel planning and continuing through their departure from the US. “When travelers arrive in the US, we have local programs that include the distribution of marketing materials on arrival to ensure that our customers know what merchandise and services will be available to them on departure and to advise them of active promotions or other special offers,” she says.

DFS North America also meets with groups upon their arrival back at the airport for their departure home to provide more information and an offers interactive customer experience. Once there, interactive customer experiences like spirits tasting and beauty makeovers await them. All DFS customers are offered a 100% Worldwide Guarantee, which allows them to exchange, repair or return products at any of its stores around the world. But to service Asian travelers specifically, DFS ensures that on-floor staff possess the language skills needed to serve customers based on flight departure profiles. “The vast majority of our DFS sales team members are multilingual,” adds Nelson. “While Asian language skills predominate, we make sure that staff that possess most

LAX’s Tom Bradley International Terminal offers a host of luxury travel retail stores

*PHOTO COURTESY OF JASON A. KNOWLES © FENTRESS ARCHITECTS

Tom Bradley International Terminal, LAX

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

other primary foreign languages appropriate to other active departures are also available on the selling floor.” Similarly, WDFG employs a dedicated team of specialists who are “exceptionally knowledgeable in Asian culture.” According to Cheung, these specialists work closely with commercial and store operation teams to develop appropriate strategies inside and outside of stores, in terminals as well as outside the airport to specifically target the Asian market. “This insight allows us to effectively implement pre-travel communication, instore multi-language signage, bilingual sales associates and product assortment that appeals to Asian tastes, with particular attention paid to appropriate size, color and style,” says Cheung.

Taking action at LAX LAX is the leading U.S. gateway to Asia Pacific with 202 weekly nonstop flights by 17 airlines to nine Asia markets, which are more flights and destinations in Asia Pacific than any other US airport. Passengers traveling LAX is doing its part to cater directly to the Asian market. Los Angeles World Airports’ Castles applauded its 300 bilingual Customer Service Representatives in all Customs Arrivals Halls who assist overseas arriving passengers. The CSRs are scheduled according to arrival flights at each of the five LAX terminals with international operations. “In other words, Mandarin and Cantonese Chinese-speaking customer service reps will be in the Customs Arrivals Halls when flights arrive from Chinese-speaking countries,” says Castles. “We also have Japanese, Korean, Malaysian, Filipino, Thai, Cambodian, and Vietnamese speakers to assist travelers from Asia.” Castles also confirms an increase in Asia service at LAX in the last few years. US and Chinese airlines have expanded service, while this spring Cathay Pacific will also follow suit with its fourth daily flight to Hong Kong. Since 2008, several Asian

airlines started Airbus A380 super jumbo jet service on a daily basis at LAX, which gives the airport the highest number of A380 daily flights in the US. LAX currently has seven airlines with nine daily A380 flights, six of which go to Asia-Pacific: Korean (2), Singapore (1), China Southern(1), Qantas (2), Air France (1), British Airways (1) and Emirates (1).

The pursuit of the international traveler If you’re still questioning the impact that Asian travelers have in the aviation and travel retail industries, just look at the numbers. Airport officials recently announced record international passenger volume at LAX, with a year-end total of 17,852,110 international passengers in 2013. This eclipses the previous high of 17,486,263 in 2005. International passengers represent almost 27% of LAX’s total traffic, which grew 4.7% in 2013 to 66,667,619 passengers from 63,688,121 in 2012. “The record international passenger activity at LAX is attributable to an improving worldwide economy, especially in the Asia-Pacific region, and to a modest strengthening of the Southern California economy,” says Gina Marie Lindsey, executive director of Los Angeles World Airports (LAWA), the Los Angeles City department that owns and operates LAX. “In addition, US and overseas airlines are starting or expanding international service at LAX as

a result of our ongoing, multi-billion-dollar LAX Modernization Program, which is complemented by major airlines investing hundreds of millions of dollars to renovate their respective domestic terminals.” As part of the program, a total of US$4.11 billion is already committed to 25 projects in LAX’s first phase of its capital improvement program. This is creating 40,000 jobs and pumping nearly US$6.89 billion into the local economy. US$1 billion will be spent on direct and/or indirect improvements to passenger safety and security, while a US$438 million replacement of the Central Utility Plant will make the airport more energy efficient. Canopies over the sidewalks in the Central Terminal Area will be modernized, as will elevators, escalators and moving walkways. A new LAFD aircraft rescue and firefighting station is completed. The customs and immigration arrival areas and the passenger security screening areas in several terminals will be upgraded and expanded. LAX has also embarked on a second phase of its capital improvements with almost another US$4 billion in upcoming investments. All of these upgrades are in line with LAX’s goal to improve both domestic service and welcome passengers from abroad in the best way possible. As Castles notes, major airlines are investing at least US$1 billion total to renovate their terminals to “not only provide better service for domestic passengers, but also to accommodate their pursuit of the international traveler.” 

To service Asian travelers specifically, DFS ensures that on-floor staff possess the language skills needed to serve customers based on flight departure profiles

*PHOTO COURTESY OF JASON A. KNOWLES © FENTRESS ARCHITECTS

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

Estée Lauder on Asian clientele

Hailed for its lifting properties is Plantscription Powerful Lifting Cream, the newest addition to the Origins Plantscription franchise

The

afterglow

effect Premium luxury brands answer the call of Asian consumers with a number of new, highperformance skincare products designed to refresh and renew by

HIBAH NOOR

La Mer debuted The Lifting Contour Serum, a highperformance sculpting serum for the face and neck

nternational beauty and skincare companies know all too well the importance of understanding the customer. Their products, just like the many faces that adorn them, are vast and varied, something of a necessity considering that no two faces are alike. With this in mind, companies have launched a number of products designed specifically for Asian clients, who represent a huge segment of the global market. According to a Euromonitor 2012 survey, the ‘premiumization’ of beauty and personal care is on trend in China, meaning that Chinese consumers are buying more premium cosmetics than those produced for the masses. Premium skincare, which accounted for 73% of sales in the Chinese market in 2012, grew at a rate of 13.1% compared to mass skincare, which fell behind with a growth rate of 10%. In response to these findings, as well as the revolutionary trend of ‘shape creation’, La Mer debuted The Lifting Contour Serum, a high-performance sculpting serum for the face and neck. It’s designed to give

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

skin a tighter feeling and help re-shape the look of contours, so that the jawline looks more lifted, and skin appears firmer and more defined. “Some Asian countries have started to define youth by the appearance of heartshape facial definition. Characteristics of this youthful look include plump cheeks, a defined chin line, and smooth, firm skin. Heart-shape facial definition can be created on any face shape by lifting sagging skin, restoring youthful definition and plumping skin,” says Dr. Lieve Declercq, Vice President, Basic Science Research Europe & Asia and Global Spokesperson for Origins. “As we grow older, skin begins to sag particularly in the jaw line around the jowls of the face and near our nose and mouth, aging our appearance. Also, the older we get, our skin naturally produces less collagen and elastin, which are essential for skin’s firmness, elasticity and pliability. Aging goes beyond wrinkles and fine lines. Lifting the skin is equally as important to restoring a youthful appearance of facial contours.” Hailed for its lifting properties is Plantscription Powerful Lifting Cream, the newest addition to the Origins Plantscription franchise. This plant-powered formula works deep within the skin’s surface to help visibly lift and revolumize skin, ultimately restoring the youthful look that many Chinese clients strive for. In a clinical study, 92% of panelists using Powerful Lifting Cream showed visibly lifted and re-contoured skin in just two weeks. Expected to be a hit among Asian consumers in particular is Clinique’s new Even

Better Essence Lotion. Numerous studies have shown that Asian skin is more sensitive and susceptible to irritation and dehydration due to a thinner skin barrier. What Even Better Essence Lotion accomplishes is to help skin stay hydrated, smooth and luminous with a new NMF Complex comprised of watermelon and apple extract. In addition, La Mer’s Blanc de la Mer collection has expanded with the addition of Blanc De La Mer SPF 50 UV Protecting Fluid, considered the brand’s most powerful sunscreen to date. Designed exclusively for Asian skin, this weightless formula helps prevent the appearance of future hyper-pigmentation and signs of aging by defending skin against UVA and UVB rays. It features a blend of photonic spheres, gemstones and smart seaweed to infuse skin with light and luminosity. But perhaps the biggest breakthrough in Asian skincare is Estée Lauder’s brand new Micro Essence Skin Activating Treatment Lotion. Rigorously tested on Asian women in Asia, this advanced ‘essence-in-lotion’ has been proven to strengthen the skin’s barrier, reduce fine, dry lines, hydrate the skin and provide a youthful radiance. It delivers a precise concentration of exclusive MicroNutrient Bio-Ferment, which penetrates the skin “to nourish and energize like never before.” It’s obvious from this range of new Asianinspired products that the brands make every effort to know their clients. And with such a wide variety of products available, Asian consumers can rest easy knowing that their skin is in good hands. 

Targeting Non-shoppers

Closing the DEAL Americas Duty Free speaks to travel retailers and suppliers about the important business of enticing nonshoppers to enter stores and purchase

ver the last few months of 2013, the news media was filled with stories of retailers’ expected success or failure due to Christmas holiday sales. The global duty free retail market has been spared much of the up-anddowns that other retailers have faced over the last few years with the market expected to reach US$64 billion in sales next year. But even though duty free retail has a committed customer base who schedule visits to airport stores into their travel itineraries, retailers cannot depend 100% on those customers if they are going to reach their goal. Retailers need to target the elusive non-shopper—that frequent flier who is often in the airport but does not spend his time browsing the shops.

Characteristics of a non-shopper The first step towards attracting non-shopper is finding out what keeps them away from the retail concourse. According to a recent study of Asian frequent fliers done in 2013 by market research firm Counter Intelligence Retail (CIR), the top three reasons that non-shopper do not purchase duty free goods include lost relevance, other activities and value perception. “Those who cited lost relevance as a reason for not shopping indicated that travel retail had lost its appeal; that it does not offer anything different in terms of range; and while the stores may be high-end, there is a lack of attention given to basic execution,” CIR Director Garry Stasiulevicuis told Americas Duty Free in an October 2013 interview. “Some respondents also told us they don’t shop because airports now offer a significant number of opportunities to help passengers spend time, work and even leave

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Nestlé believes in attracting non-shoppers by communicating with them at various points throughout the journey

the airport all together, which falls under the other activities category,” Stasiulevicuis said. “Finally, some respondents told us that travel retail’s obvious value perception has eroded as products are available elsewhere and promotion has impacted the value message.” Stasiulevicuis said that travel retailers can get many non-shoppers into their stores by communicating with them throughout their trip, starting when they book their ticket online, followed by advertisement along the road to the airport, at information kiosks in the airport as well as on the concourse and through in-store communications. Alan Brennan, Global Head of Sales at Nestlé International Travel Retail (NITR), says that communication with passengers is key to the marketing of NITR’s products through its retail partners, as well making sure that NITR’s products are placed in the right location in the store to ensure the best reception by passengers. “As part of our

fourth quarter global Android Kit Kat event in travel retail, NITR focused on engaging the traveler at different touchpoints in their journey, the first of which was the concourse area at a number of key airports,” he said. “The primary objective of the concourse activation was to interrupt the traveler through digital and analogue activations, and to increase footfall and conversion in the main retail store.”

Retailers do their part A key consideration for retailers to attracting the non-shopper is to make them feel welcome in the store, according to Karla Galindo Barth, Beka International’s Category Manager of Specialty Shops at Guatemala Airport. One of the techniques Beka used at its stores in December was offering 4oz glasses of Guatemalan beer to passengers everyday during lunch hour. For the New Year it offered passengers an opportunity to throw Cancun Airport encourages non-shoppers to take a bit of Mexico home with them

foam darts at a large dart board and win a free beer if they hit a bulls eye. “Guatemalan beer, besides being an icon, has received several international awards, including the gold medal in Belgium’s “Monde Selection” in recognition of its outstanding quality,” Galindo Barth said. “It has also won the Prestige Award, which is the highest beer award it can receive—only two beers in all of America have received this award.” Beka has also worked with Guatemala’s Dirección General de Aeronáutica Civil (DGAC), the operators of La Aurora International Airport, to set up large holiday displays to promote its products for seasonal holidays including Christmas, Hanukkah, Easter, Valentine’s Day and Halloween. In addition to retailers, airport operators can play an important role in creating an environment that attracts the nonshopper. Mexico’s Cancun Airport provides catalogues to all of its passengers on its retail concourse. The catalogues include 14 pages of promotions with the best seasonal offers. The airport also does activities that get attention, such as running flash mobs on weekends. During the NFL Super Bowl season in January it offers scratch and win tickets in addition to giving away prizes including hats and t-shirts. Cancun Airport’s most successful promotional campaign is its Viva Mexico event, which allows passengers to have one last experience of Mexico and the opportunity to take some its culture home with them. “We’ve been doing the Viva Mexico campaign for two years, and we have noticed

that it is very popular with customers. We offer tequila tasting, folk dances, mariachis and great discounts on Mexican products,” Manuel Gutiérrez Sola, Commercial Director of Aeropuertos Del Sureste told Americas Duty Free.

Developing loyalty CIR’s Stasiulevicuis added that a retailer’s product range and service can also make an impact once a customer enters a store. “In order for retailers and suppliers to purchase in duty free stores investment is needed in a product range and customer service experience that they cannot receive anywhere else,” he says. Beka trains its staff to always be helpful to customers and never chat with co-workers. Staff are also taught to help passengers even if they’re not looking to do any shopping, knowing that this may result in a purchase. Galindo Barth notes that both retailers and the airport authority, including Director Jair Samayoa and Airport Manager Ingrid Hernandez, hold customer service as the highest priority. “Some expert travelers know exactly what they need, however most of the passengers are confused. Our staff remain near the concourse with the idea of adjusting to people’s needs and moods. Greeting customers gives the staff the opportunity of quickly analyzing if they can help a passenger without seeming pushy or rude,” Galindo Barth told Americas Duty Free “While on the concourse, if staff are questioned about other matters not related to the stores, we never say ‘no’ or ‘we don’t work in the air-

François Le Gloan, Vice President Americas and Oceania for la Prairie, says his company uses personalized service to attract non-shoppers

port’—we always try to find a solution to a passenger’s questions and queries that will have them enter the store. For example, if a customer is lost and looking for his gate, help him with directions and invite him to try out sunglasses.” For cosmetics supplier La Prairie, attracting non-shoppers comes down to providing one-on-one customer service, and in fact, this is the company’s main focus for 2014. “We’ve strengthened our Miami/New York-area travel retail locales with Spanish and Portuguese-speaking Beauty Advisors to assist with the influx of Brazilian consumers who shop there,” Le Gloan said in a recent interview. “We’ve recently rolled out signature La Prairie relaxation services, performed atcounter by our beauty advisors, to help customers relax before they embark on a long journey,” he added. “These services—hand massages; a full cleansing and moisturizing of face to prepare it for travel, ensuring customers arrive at their final destination with clean, hydrated skin; a touch-up of complexion products to ensure a radiant look for those arriving after a shorter flight—help bring our products to life in a high-touch service way as only la Prairie can do. For those interested in the brand but not quite ready to commit to a purchase, we offer samples best-suited for their concerns.” In addition, offering an exclusive selection of products can add value to a passenger’s shopping experience. Nuance has done this at its Pearson International Airport

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

Targeting Non-shoppers location in Toronto, where from July to September last year it offered the Johnny Walker Explorers’ Club Collection in Terminal 1 and 3 in the airport where passengers were able to sample and purchase the offerings right on the concourse. Nuance also launched the first duty free outpost in North America for Estée

Lauder at Pearson International Airport last December. “The promotion highlighted the new Muse fragrance launch and Advanced Night Repair Synchronized Recovery Complex II. The outpost space allowed for consultations, demonstrations of fragrances/ skin care and the ability for the passenger to purchase right at the outpost,” Joanie Nuance has been able to attract nonshoppers with its tasting outposts

Anderson, Manager – Events & Promotions with Nuance North America, told Americas Duty Free. Additionally, Nuance has had success at McCarran International Airport in Las Vegas by working with the airport authority and suppliers on a space for exclusive product launches. To date Nuance has used the location for exclusive worldwide launches like Jack Daniels Sinatra Select and full brand experiences like Bacardi Craftsmanship, which highlighted the making of Bacardi rum and the story behind the four pillars of the Bacardi family. Whichever strategy a company uses, it is important to think outside the box. “Airport shoppers often have more time on their hands than everyday shoppers, and they tend to be in the mood to try new brands,” Beka’s Galindo Barth said. “Our biggest hit in promotions is giving one free beer in the purchase of sunglasses or watches. Why? Because no one is expecting a free beer for a purchase, and no one has ever mixed beer sampling with accessories.” 

BEYOND LUXURY

MEET US AT IAADFS ORLANDO BOOTH 727

www.dooleystoffee.com

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Mid-sized US Airports

The little airports

that could Bigger doesn’t necessarily mean better, something these mid-sized airports are happily proving by

Austin-Bergstrom International Airport (AUS) in Austin, Texas

CINDY SOSROUTOMO

hances are you would have either flown in or out of a high-traffic airport like JFK, Schiphol or Charles de Gaulle at some point in your life. Transporting millions of passengers each year, these international hubs bring in major business, with traffic expected to rise as air travel continues to increase. But there are smaller airports that prove that you don’t have to post big numbers to provide good service, that despite accommodating a fraction of passengers that, say, Atlanta’s HartsfieldJackson pulls in, they’re still considered respectable, profitable and just as deserving of your business.

Austin-Bergstrom International Airport (AUS) in Austin, Texas There’s no minimizing the economic impact Austin’s airport has on the local area. Serving 9.4 million passengers in 2012, with a 6% increase in traffic year-to-date, AUS generates US$2.4 billion annually, is entirely self-sustaining and flies nonstop to 41 destinations. But its high volume isn’t what puts this airport on the map. While other hubs are often described as sterile and ultra modern, Austin-Bergstrom is fun, laidback and quintessentially Texan.

“The airport reflects the unique character and nature of Austin. Travelers will find live music throughout the airport with 23 shows each week in six different venues,” said Jason Zielinski, Public Information Specialist Senior at Austin-Bergstrom International Airport. In keeping with this quirky theme, the airport recently debuted two new dog parks, which replace the old dog park located on the east side of the terminal. This was closed to make way for the East Terminal Infill project, a 5,110-square-meter expansion that includes a 10-lane security checkpoint and expanded Customs area. Other enhancements include a bigger international arrivals area, which was timed to coincide with the launch of British Airways’ nonstop service to London on March 3. Operated on a Boeing 787 Dreamliner five days a week (to increase to daily in May), the flight connects Heathrow and AustinBergstrom and marks the first regular transatlantic air service for the city of Austin. “We know that London is among the top destinations for international travel from Austin and equally, Austin is home to some of the most important global cultural events,” said Sean Doyle, EVP Americas, British Airways. “We are looking forward to providing a convenient and high quality service to new and existing customers.”

Indianapolis International Airport (IND) in Indianapolis, Indiana It may seem unlikely for an airport to be considered eco-friendly but that’s exactly what Indianapolis International has worked towards. Its efforts paid off in 2012 when it was granted LEED certification for an entire terminal campus, which at more than 111,480 square meters makes it one of the largest projects to be awarded the distinction. A number of green initiatives were recognized, including the use of natural light and energy-efficient equipment, the implementation of a recycling program, indoor air and comfort monitoring, low-impact construction and water-saving fixtures. There’s even a park located on site as well as electric vehicle charging stations, which are available at no additional cost to passengers. To take things even greener, the airport is home to the largest airport-based solar farm in the US, a project that aims to increase the city’s sustainability while helping to grow and diversify renewable sources of electricity. Spanning an incredible 75 acres, the farm produces 16.5 megawatt hours per year (enough to power 1,800 homes), which prevents approximately 10,700 tons of carbon dioxide from being released into the environment each year.

Indianapolis International Airport (IND) in Indianapolis, Indiana

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

Mid-sized US Airports

Portland International Airport (PDX) in Portland, Oregon

General Mitchell International Airport (MKE) in Milwaukee, Wisconsin

Indianapolis International Airport accommodated a total of 7,333,733 passengers in 2012 and was voted the number one airport in North America that same year by Airports Council International as part of the annual Airline Service Quality awards. In 2013 it debuted the highly anticipated Service Plaza, which features 24 fueling positions, a fully automated green carwash, automobile detailing and a number of restaurants.

General Mitchell International Airport (MKE) in Milwaukee, Wisconsin As the low-cost alternative to Chicago’s O’Hare Airport, it’s no wonder that General Mitchell International Airport sees its

Portland International Airport (PDX) in Portland, Oregon

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

fair share of traffic. It serves approximately seven million passengers annually and provides nonstop service to 35 cities coast to coast with more than 150 daily departures, making it the largest and busiest airport in Wisconsin. Inside, travelers will find an array of offbeat amenities, including live piano players, a free ping pong table, an aviation museum and what might possibly be the only used bookstore at an airport. There are also newly installed charging stations, plenty of retail shops and eateries, as well as children’s play areas located in all three concourses. Last year, MKE began a major renovation of the Baggage Claim building. Upon completion in 2015, the new facility will be energy efficient with a green roof and glass canopy covering the roadway.

PDX’s claim to fame isn’t so much the record-breaking 15 million passengers it served in 2013, nor is it the 87.5% on-time departure record or its recent distinction as best airport in the nation by Travel + Leisure¬ magazine. What makes Portland International truly unique is its much beloved 20-year-old signature carpet. The distinct green and blue flooring has a peculiar cult following comprised of local travelers who post photos of it on social media to document their homecoming at PDX. It even has its own Facebook fan page and an entire line of merchandise like socks and t-shirts designed by local designers who’ve also caught onto the trend. But after two decades of heavy use, the iconic carpet will finally be replaced later this year with a new design that Port of Portland, the district that oversees PDX, hopes travelers will grow to love just as much as the old. In addition to designing the new flooring, Port of Portland was also responsible for launching a food donation program last year. The program encourages food and beverage vendors in the airport terminal to divert unsold, ready-to-eat food products to the local charitable organization of St. Vincent de Paul. In the first eight months of collection, donations weighed in at over 32,000 pounds, an equivalent to more than 21,000 meals. 

Association Q&A

A positive response

Americas Duty Free: Can you give us an update with regard to registrants for the 2014 Duty Free Show of the Americas? Michael Payne, Executive Director, IAADFS: The exhibitor response has been very positive this year, with 185 exhibiting companies at the show. We are fortunate have such a loyal exhibitor base and the expectation is that we will be sold out at the show. It is a little early for attendance numbers [mid-January] but I can say we are experiencing a really good response and we should see a spike as the discount registration deadline approaches. Also, we normally have quite a large on-site registration so we obviously will not know those results until the show. ADF: With the information you currently have, can you give us a breakdown of booths by category? MP: Of course. The booth information we have at the moment is as follows: Confections & Gourmet Foods: 21 companies Fragrances & Cosmetics: 41 companies Gifts & Writing Instruments: 9 companies Jewelry, Accessories & Luggage: 49 companies Liquor: 51 companies Services: 3 companies Tobacco: 11 companies

Some of our exhibitors represent multiple product categories, and the above counts are based on their primary product category. ADF: How does the mindset of members this year compare to last year? MP: The people I have spoken with seem very positive and upbeat this year, as they were last year, in my opinion. They are optimistic about the business, travel is up and investments are continuing in the stores.

ADF: In terms of sales and passenger traffic in the Americas, in your opinion how did duty free fare in 2013 as compared to 2012? MP: I don’t have exact data but 2013 saw an improvement over 2012 and I fully expect that to continue in 2014 barring any unforeseen events. ADF: Are there any airport- or duty free-related projects in the Americas currently that you’re particularly excited about? MP: Honestly there are so many improvements and investments going on throughout the region that it is difficult not to be excited about all of them. I think the really important point here is that every time an airport upgrades and enhances its duty free offering, the entire channel benefits because it helps underscore the attraction and cache that duty free shopping has to offer. ADF: In your opinion what are the major challenges facing duty free in the Americas today? MP: Capturing more passengers/customers interested in visiting the stores and then purchasing; penetration rates are still too low in many locations. We will continue to struggle with some regulatory concerns such as restrictions affecting liquids and gels, which create confusion and uncertainty. Additionally, efforts by some to restrict passengers from bringing certain carry-on luggage onboard could be a real problem for our customers—this is sometimes known as the one bag rule. We need to address that whenever and where ever it emerges. ADF: Who are the 2014 sponsors? MP: Our confirmed sponsors for 2014 include beauty2market, Brown-Forman Beverages Worldwide, Godiva, Hershey’s, Botran Rum, NJOY, Perfetti Van Melle, Philip Morris Duty Free and Travel Retail Distribution Group. We are still working to finalize a couple of other potential sponsorships.

The people I have spoken with seem very positive and upbeat this year, as they were last year, in my opinion. They are optimistic about the business, travel is up and investments are continuing in the stores.” MICHAEL PAYNE, EXECUTIVE DIRECTOR, IAADFS 92

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Association Q&A ADF: What is your favorite duty free-related memory or experience from 2013, surprising, amazing, shocking, emotional, or otherwise? MP: Well it is not a surprise, nor is it shocking, but both the generosity and resilience of the industry is a strong takeaway for 2013. Every time one opens one of the industry publications or sees an online version there is someone in the duty free industry leading, contributing to or sponsoring an effort to raise funds to help people. It’s an outstanding cultural trait for an industry to have. In spite of the economic challenges and/or specific regional challenges we might experience, this industry roars on. It’s very impressive.

ADF: What are room prices set at for the 2014 conference? JLD: The price per night will be US$217 with internet, breakfast and lunch included. The Hilton Mexico City Reforma hotel has provided us with a great rate.

Strengthening the future

ADF: Can you tell us about the speakers you’ve got lined up for this year’s ASUTIL conference? JLD: We’re currently in the process of organizing the speakers, but what I can tell you is that we’ve commissioned a m1ndset study on South American border shops, so Peter Mohn will be presenting what I’m sure will be some very interesting conclusions. Of course, we’re also expecting Carlos Melconian to update us again on the situation in the region. We should have more news on speakers during the IAADFS exhibition, but what I can tell you is that for the 20th anniversary of the organization we’re really looking at bringing some excellent contributors to the stage.

Americas Duty Free: What was the reaction like to last year’s ASUTIL conference? Jose Luis Donagaray, Secretary-General, ASUTIL: The conference was very well received. Attendees were very pleased with the topics, especially Owner of M1indset Peter Mohn’s research and Economist Carlos Melconian’s roundup of influencing factors in Latin America. All in all, the evaluations were very positive. ADF: Can you tell us why you chose Mexico City as the venue for the 2014 conference? JLD: We chose Mexico City because we’ve never chosen the Distrito Federal as a venue before. It’s an amazing city with a great airport, a lot of connections to major regions all over the world and a lot of options for hotels and social activities.

ADF: Can you tell us about the theme of this year’s conference? JLD: We’ve been considering various titles for this year’s conference and we’ve decided on “Strengthening the future.” Largely because ASUTIL is celebrating its 20th anniversary this year, and although there will be some looking back on what we’ve collectively accomplished as an industry, the focus is certainly on ensuring that we enjoy another 20 years of successes.

ADF: Will the conference return to South America in 2015? JLD: Brazil has been discussed in the past but at the moment it’s very expensive for this type of event. We’re thinking about Argentina for 2015 or 2016, but nothing is set in stone.

ADF: Have any sponsors been lined up yet? JLD: As every year, Bacardi and Diageo will be sponsoring the bar during the networking sessions. Of course, Americas Duty Free and Godiva will again be sponsoring the coffee breaks. That’s all I can confirm at the moment but I expect we’ll have participation from the same companies that have been kind enough to support us in recent years.

ADF: What about Uruguay? JLD: The problem we have with Uruguay in June is that it’s very cold. Furthermore, hotels of the size that we need for the conference are in Punta del Este. Punta del Este is great in the summer, but not so much in the winter!

ADF: How do you feel the industry in the region performed over 2013? JLD: Things slowed down a bit during July, August and September, but things considerably improved over the last quarter of the year. Of course, we haven’t returned to the strong double-digit growth

ASUTIL 2014 will be held in Mexico City.

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Mars ITR is a leading player in the confectionery category. We combine insights, vision and global strength with powerful brands to create fantastic in-store opportunities. Contact your local account manager and see what we can accomplish together!

Visit Mars International Travel Retail at booth 523

® M&M’s and the M&M’s Characters are registered trademarks. © Mars 2014.

They sell as good as they taste

Association Q&A we were experiencing a couple of years ago. Having said this, there’s certainly cause for a positive outlook in 2014 given the infrastructural improvements taking place in the region and especially the World Cup in Brazil. ADF: Finally, can you tell us about the First Annual Border Meeting held in Uruguay? JLD: Things went very well. About 90 people attended so we had a packed room, which was very nice to see. It’s certainly something that we’re looking to repeat every year. We’re looking at the possibility of changing venues each year. I think it was a great opportunity to discuss topics that are of great importance to many of our members.

Shaping the world

Awmericas Duty Free: Can you tell us what you have planned for this year’s TFWA Asia Pacific tradeshow and conference? Alain Maingreaud, Managing Director, TFWA: TFWA Asia Pacific Exhibition & Conference will be staged for the second year in Marina Bay Sands in Singapore. Our exit polls last year showed a very positive reaction to the new venue and we have been able to secure dates which suit the industry calendar, namely May 11 to 15. The event will follow the tried and tested format of the conference and a choice of workshops on the Monday and the exhibition from Tuesday through Thursday. The Welcome Cocktail will be at Raffles and the Singapore Swing party at the Alkaff Mansion—both venues with fascinating histories and real style. The Chill-Out Party will be at an exciting new venue, the Skypark on top of the Marina Bay Sands with spectacular views out across the city.

in the region with China not far behind. The appetite for luxury goods in every category is the most remarkable factor, whether it is a designer handbag, an extremely rare malt, a very exclusive limited edition fragrance or some other luxury. My view is that the region’s duty free & travel retail business will continue to grow through 2014 but at a less frenetic pace than has been charted over the last decade. Once people have experienced international travel, top quality products and international brands, they will not wish to revert to their old lives. ADF: Can you tell me about sponsors who have already signed on? AM: TFWA is in negotiation with several partners for elements of TFWA Asia Pacific Exhibition & Conference. The sponsors confirmed so far are Qatar Duty Free, Changi Airport, Ferrero, Chupa Chups and Inter Parfums. ADF: Can you give us an update on the Duty Free World Council? EJM: We are very pleased that the official launch of the Duty Free World Council is imminent; its first board meeting will take place in Orlando during the IAADFS week. TFWA has strongly supported this initiative and will continue to provide assistance as required. The other big news is that TFWA is to move its headquarters to larger premises in Paris in the spring. 

“ ”

ADF: Do you have any speakers confirmed for the Asia Pacific conference? What topics will be discussed? AM: The conference this year is themed “Asia: shaping the world.” It will help delegates to explore how geopolitical, economic and consumer trends in Asia Pacific are increasingly influencing the way business is conducted around the world. We are delighted that Julia Gillard, Prime Minister of Australia from 2010 until June 2013, and Parag Khanna, leading global strategist, traveler and bestselling author, have agreed to be among our keynote speakers. The workshops this year will focus on four geographical zones: India and South Asia; China and East Asia; South-East Asia; and Australia and New Zealand, each led by experts from the region. ADF: How many exhibitors have been confirmed for the trade show portion of the event? How does this compare to last year? Are there any notable new additions? AM: Last year we accommodated 253 exhibiting companies—a record number—with a little room to spare, and it looks as though we have matched that figure already with several more companies still in the booking process.

ADF: Can you give me your opinion of the duty free business in Asia in 2013? Are there any categories or regions that are outperforming right now? Do you think the industry in the region can grow in 2014?’ Erik Juul-Mortensen, President, TFWA: The duty free and travel retail business continued to perform extraordinarily well in Asia Pacific last year, although there was a slight decline in demand from Chinese travelers. South Korea remains the biggest market 96

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

My view is that the region’s duty free & travel retail business will continue to grow through 2014 but at a less frenetic pace than has been charted over the last decade.

ERIK JUUL-MORTENSEN, PRESIDENT, TFWA

SOLO LAS MEJORES MARCAS ONLY THE BEST BRANDS

P A R A G U A Y www.dutyfree.com.py

Association Q&A

Respuesta positiva

Americas Duty Free: ¿Puede actualizarnos con respecto a las inscripciones para Duty Free Show of the Americas 2014? Michael Payne, Director Ejecutivo, IAADFS: La respuesta de los expositores ha sido muy positiva este año, y contamos con 185 compañías expositoras. Nos sentimos afortunados por tener expositores tan leales, y esperamos que el espacio se llene totalmente. Aunque es bastante temprano para dar cifras de asistencia [mediados de enero] puedo decir que esperamos una respuesta realmente buena, y podremos ver un incremento en la medida que nos acerquemos al vencimiento del plazo de inscripciones con descuento. Además, como por regla general muchos expositores se inscriben a su llegada, no conoceremos obviamente esos resultados hasta el comienzo de la exposición. ADF: De acuerdo a la información que tiene en estos momentos, ¿puede darnos un desglose de quioscos por categoría? MP: Por supuesto. La información que tenemos hasta el presente es la siguiente: Confituras y alimentos gourmet: 21 compañías Fragancias y cosméticos: 41 compañías Regalos e implementos de escritura: 9 compañías Joyería, accesorios y equipaje: 49 compañías Licores: 51 compañías Servicios: 3 compañías Tabaco: 11 compañías

Algunos de nuestros expositores representan múltiples categorías de productos, y las cifras anteriores se basan en la categoría principal. ADF: ¿Cómo es el actitud de los miembros este año, en comparación con el año pasado? MP: Todos aquellos con quienes he hablado parecen positivos y animados este año, en mi opinión. Sienten optimismo sobre el negocio, los viajes van en aumento y se sigue invirtiendo en las tiendas. ADF: Atendiendo a las ventas y el tráfico de pasajeros en las Américas, ¿cómo se comportó en su opinión el sector duty free en el 2013 comparado con el 2012? MP: No tengo datos exactos, pero en el 2013 se produjo una mejoría con respecto al 2012, y espero que la misma continúe en el 2014, a no ser que ocurran acontecimientos imprevistos. 98

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

ADF: ¿Hay algún proyecto actual en aeropuertos o en el sector duty free en las Américas por el que se sienta particularmente entusiasmado? MP: Honestamente, hay tantas mejoras e inversiones en curso por toda la región, que resulta difícil no entusiasmarse con ellos. Pienso que la cuestión realmente importante es que cada vez que un aeropuerto se actualiza y amplía su oferta duty free, todo el canal se beneficia, porque contribuye a resaltar la atracción y cache que ofrecen las compras duty free. ADF: ¿Cuáles son, en su opinión, los principales retos que enfrenta el sector duty free actualmente en las Américas? MP: Captar más pasajeros/clientes interesados en visitar las tiendas y comprar; los índices de penetración siguen siendo demasiado bajos en muchos establecimientos. Seguiremos luchando con algunos problemas regulatorios como las restricciones que afectan los líquidos y geles, las cuales crean confusión e incertidumbre. Además, los esfuerzos de algunos por impedir a los pasajeros llevar cierto equipaje a bordo—lo que se conoce como ‘reglas de equipaje’— podría ser un gran problema para nuestros clientes. Tenemos que resolver ese conflicto dondequiera y cada vez que surja. ADF: ¿Quiénes son los patrocinadores del 2014? MP: Nuestros patrocinadores confirmados para el 2014 son beauty2market, Brown-Forman Beverages Worldwide, Godiva, Hershey’s, Botran Rum, NJOY, Perfetti Van Melle, Philip Morris Duty Free y Travel Retail Distribution Group. Seguimos trabajando en la finalización de otros dos patrocinios potenciales. ADF: ¿Cuál es su recuerdo o experiencia favorita, sorprendente, impactante, emotiva o de otra índole, del 2013? MP: En realidad no es una sorpresa ni algo impactante, pero la generosidad y resiliencia de la industria es un sólido recuerdo del 2013. Cada vez que abrimos una de las publicaciones del sector, o vemos una versión por Internet, encontramos a alguien que ha contribuido o patrocinado una iniciativa de recaudación para ayudar al prójimo. Es una característica cultural notable que debe tener una industria. A pesar de los retos y/o desafíos regionales específicos que podríamos encarar, la industria sigue su marcha. Es bien impresionante.

Association Q&A

Fortaleciendo el futuro

Americas Duty Free: ¿Cuál fue la reacción a la conferencia de ASUTIL del año pasado? José Luis Donagaray, Secretario General de ASUTIL: La conferencia fue muy bien recibida. Los asistentes se sintieron muy complacidos con los temas, especialmente con la investigación de Peter Mohn, propietario de M1indset; y el resumen que hizo el economista Carlos Melconian de los factores con influencia en Latinoamérica. En general, las evaluaciones fueron muy positivas. ADF: ¿Puede decirnos por qué escogieron a Ciudad de México como sede de la conferencia del 2014? JLD: Escogimos a la Ciudad de México porque nunca habíamos elegido antes al Distrito Federal como sede. Es una ciudad sorprendente con un magnífico aeropuerto, muchas conexiones a importantes regiones del mundo, y numerosas opciones de hoteles y actividades sociales. ADF: ¿Regresará la conferencia a Suramérica en el 2015? JLD: Brasil se ha analizado como opción en el pasado, pero en estos momentos es muy costoso para este tipo de evento. Estamos pensando en Argentina para el 2015 o el 2016, pero aun no hay nada fijo. ADF: ¿Uruguay es una de las opciones? JLD: El problema que tenemos con Uruguay es que hace mucho frío en junio. Además, los hoteles con la capacidad que necesitamos para la conferencia están en Punta del Este. Punta del Este es incomparable en verano ¡pero muy diferente en invierno! ADF: ¿Cuáles son los precios de las habitaciones para la conferencia del 2014? JLD: El precio por noche será US$217, que incluye acceso a Internet, desayuno y almuerzo. El hotel Hilton Mexico City Reforma nos ha ofrecido una buena tarifa. ADF: ¿Puede hablarnos acerca del tema de la conferencia de este año? JLD: Hemos estado considerando varios títulos para la conferencia de este año, y nos decidimos por “Fortaleciendo el futuro”, específicamente porque ASUTIL celebra este año su vigésimo aniversario, y aunque habrá algunas retrospectivas sobre los logros que hemos alcanzado juntos, el enfoque será realmente en garantizar que disfrutemos otros veinte años de éxitos.

“

There’s certainly cause for a positive outlook in 2014 given the infrastructural improvements taking place in [Latin America] and especially the World Cup in Brazil. JOSE LUIS DONAGARAY, SECRETARY-GENERAL, ASUTIL

100

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

ADF: ¿Puede hablarnos de los conferencistas con los que cuenta ASUTIL de este año? JLD: Estamos enfrascados actualmente en el proceso de organizar los conferencistas, pero puedo decir que hemos encargado un estudio a m1ndset sobre las tiendas de frontera en Suramérica, por lo que Peter Mohn presentará lo que estoy seguro serán conclusiones muy interesantes. Por supuesto, también esperamos que Carlos Melconian vuelva a actualizarnos sobre la situación en la región. Aunque tendremos más noticias sobre los conferencistas durante la exposición IAADFS, puedo decirte ahora que para el vigésimo aniversario de la organización, estamos buscando excelentes expertos con excelentes ponencias. ADF: ¿Ya cuentan con algunos patrocinadores? JLD: Como todos los años, Bacardi y Diageo patrocinarán el bar durante las sesiones de contactos profesionales. Por supuesto, Americas Duty Free y Godiva volverán a patrocinar las pausas para tomar café. Eso es todo lo que puedo confirmar en este momento, pero espero que contaremos con la participación de mas mismas compañías que han sido tan amables en apoyarnos en los últimos años. ADF: ¿Cómo considera el rendimiento de la industria en la región durante el 2013? JLD: Aunque disminuyó un poco el ritmo en los meses de julio, agosto y septiembre, las cosas mejoraron considerablemente en el último semestre del año. Por supuesto, no ha habido retorno al sólido crecimiento de dos dígitos que disfrutamos hace un par de años. Dicho esto, hay razón cierta para una perspectiva positiva en el 2014, gracias a las mejoras de infraestructura que se están llevando a cabo en la región, y especialmente la Copa Mundial en Brasil. ADF: Finalmente, ¿qué puede decirnos sobre la Primera Reunión Anual de Fronteras que se llevó a cabo en Uruguay? JLD: Todo marchó muy bien. Asistieron unas 90 personas, por lo que la reunión se realizó a sala llena. Es en realidad algo que esperamos repetir todos los años. Estamos analizando la posibilidad de cambiar de sede anualmente. Creo que fue una gran oportunidad de analizar temas de gran importancia para muchos de nuestros miembros.

Association Q&A

Dándole forma al mundo

Americas Duty Free: ¿Puede decirnos lo que tiene en proyecto para la exposición comercial y conferencia TFWA Asia Pacific de este año? Alain Maingreaud, Director Gerente, TFWA: La Exposición y Conferencia TFWA Asia Pacific se realizará por segundo año consecutivo en Marina Bay Sands, Singapur. Las encuestas finales del año pasado revelaron una reacción muy positiva a la nueva sede, y hemos podido garantizar fechas convenientes para el calendario de la industria, o sea, del 11 al 15 de mayo. El evento seguirá el formato probado y demostrado de la conferencia, y una opción de talleres el lunes, y la exposición de martes a jueves. El Coctel de Bienvenida será en Raffles y la fiesta Singapore Swing en Alkaff Mansion. Ambos sitios tienen historias fascinantes, y un estilo incomparable. Por su parte, la fiesta —The Chill-Out Party será una opción nueva y atractiva, en el Skypark, ubicado en la parte alta de Marina Bay Sands, con vistas espectaculares de la ciudad. ADF: ¿Tiene oradores confirmados para la conferencia Asia Pacific? ¿Qué temas se analizarán? AM: La conferencia de este año tiene el tema “Asia: Dándole forma al mundo”, y ayudará a los delegados a explorar cómo las tendencias geopolíticas, económicas y del consumidor en la región AsiaPacífico influyen cada vez más en la forma de hacer negocios en todo el mundo. Nos complace que Julia Gillard, primera ministra de Australia desde el 2010 hasta junio del 2013; y Parag Khanna, prominente estratega global, viajero y escritor con récords de venta de sus libros, hayan aceptado estar entre nuestros conferencistas principales. Los talleres de este año se enfocarán en cuatro zonas geográficas: India y el sur de Asia; China y el este de Asia; el sudeste de Asia; y Australia y Nueva Zelandia. Cada uno de los talleres tendrá al frente a un experto de la región. ADF: ¿Cuántos expositores tiene confirmados para la porción del evento dedicada a la exhibición? ¿Cómo se compara al año pasado? ¿Tienen nuevas incorporaciones notables? AM: El año pasado contamos con 253 compañías expositoras—una cifra récord—en un espacio muy limitado. Aparentemente hemos igualado esa cantidad con varias compañías más que están en proceso de reservación. ADF: ¿Puede darme su opinión sobre el negocio duty free en Asia durante el año 2013? ¿Existen algunas categorías o regiones que estén al máximo rendimiento en estos instantes? ¿Cree que podrá haber crecimiento en la industria de la región durante el 2014? Erik Juul-Mortensen, Presidente, TFWA: El sector duty free y minorista de viajes logró un rendimiento extraordinariamente bueno en Asia Pacífico el año pasado, aunque se reportó una ligera disminución en la demanda por parte de los viajeros chinos. Corea del Sur sigue siendo el mercado más grande de la región, seguida de cerca por China. El apetito por las mercancías de lujo en cada categoría es el factor notable, independientemente de que se trate de un bolso de diseñador, un whiskey extremadamente raro, un perfume exclusivo en edición limitada, o cualquier otro producto. Estimo que el negocio duty free y minorista de viajes de la región seguirá creciendo en el 2014, pero a un ritmo menos frenético en comparación con la última década. Una vez que el público sabe lo

104

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

que son los viajes internacionales, los productos de alta calidad y las marcas internacionales, no quiere volver a sus vidas antiguas. ADF: ¿Qué patrocinadores han confirmado su apoyo? AM: TFWA está en negociaciones con varios colaboradores en varios elementos de la Exposición y Conferencia TFWA Asia Pacific. Los patrocinadores que tenemos confirmados hasta el momento son Qatar Duty Free, Changi Airport, Ferrero, Chupa Chups e Inter Parfums. ADF: ¿Puede ofrecernos una actualización sobre el Consejo Mundial Duty Free? EJM: Nos sentimos muy complacidos con el hecho de que la inauguración oficial del Consejo Mundial Duty Free es inminente. Su primera reunión de la junta directiva se llevará a cabo en Orlando durante la semana de la IAADFS. TFWA ha apoyado firmemente esta iniciativa, y seguirá ofreciendo ayuda cuando se necesite. La otra buena noticia es que en la próxima primavera, TFWA va a trasladar su sede en París a otras oficinas más grandes. 

“

The conference this year is themed ‘Asia: shaping the world.’ It will help delegates to explore how geopolitical, economic and consumer trends in Asia Pacific are increasingly influencing the way business is conducted around the world.

”

ALAIN MAINGREAUD, MANAGING DIRECTOR, TFWA

Baja Duty Free

Baja Duty Free is focusing on growth and renewal among its 10 stores along the US border with Mexico

BORDER GUARDS Baja Duty Free focuses on staying competitive with both duty free and domestic retailers along the US-Mexico border by

In Spirits, Baja Duty Free is competing with both domestic and duty free retailers, so its offering has to be spot on to attract consumers

JENNIFER BILL

iquor is certainly a competitive industry, and when it comes to duty free, competition amidst local markets can be fierce. Only the strong survive, and Baja Duty Free is living well given a concentration on ensuring that cross-border travelers have a wide variety of choices when entering its stores. Indeed, Baja Duty Free maintains its status as the premier operator along the US-Mexico border, and indications suggest that 2014 will be a robust year. Indeed, accessibility to alcohol in the US is easier than ever. With liquor sold at gas stations, grocery and convenience stores, more and more consumers are turning to the corner shop than traveling to the border to buy their spirit of choice. With many choosing convenience over price, duty free stores are feeling the pinch. Why wait in long lines when you can buy close to home? Baja Duty Free knows this all too well, and the duty free operator continues to forge ahead, focusing on growth and renewal among its 10 stores along the US border with Mexico. Elisa Castro, Vice President of Retail at Fairn & Swanson, owner of the Baja Duty Free name, says today’s travel retail market landscape is ever-challenging, and the company must continually evolve its strategies. “The gap between travel retail and US retail pricing continues to shrink, resulting in many products being less attractive for duty free clients,” says Castro, and “the continued increase in the cost of goods and competition with the US domestic market has resulted in shrinking margins.” Subsequently, Baja Duty Free is concentrating its efforts on products that are more

106

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

margin-driven, tipping the spotlight on travel retail exclusives and the ever-popular brand name category. The last few years have seen substantial growth for the retailer. Two new stores were added to its lineup in the fourth quarter of 2012, and Baja Duty Free refined its focus for 2013 toward building business within those new markets. “Sales for the first year in both new stores exceeded expectations,” Castro explains. “We look forward to continuing to grow these markets.” It was 2011, however, that saw the company’s bottom line skyrocket, with one of Baja Duty Free’s most prosperous years to date. The operator’s numbers shot so high they were tough to beat, and despite lower than expected sales this year, Baja Duty Free continues to strive for those peaks. Battling against domestic liquor sales in the US, spirits and beer remained standout categories for 2013, Castro said, dominated by Buchanan’s and Johnnie Walker Scotch whiskies, as well as Bud Light. With objectives including expanding retail space and adding more brands/catego-

ries to its large selection of spirits, domestic and imported beers, tobacco, perfumes and accessories, Baja Duty Free’s growth typically ebbs and flows with socioeconomic factors in both the US and Mexico. “We are affected by both economic climates,” said Castro. “While we see our US clients spending money again we are affected by the tightening security regulations and allowances along the border.” However, Baja keeps its competitive strategy consistent, focusing on offering an unparalleled shopping experience, complete with innovative in-store programs and social media outreach, including a blog to ensure the company is keeping channels open with its customers. Above all else, Baja Duty Free’s aims to “provide customers with quality brands at low prices.” Castro says Baja plans to work closely with its suppliers in 2014 to ensure an unforgettable shopping experience. “Every year new products are introduced to the travel retail world and we expect to keep on top of it and offer customers the best in the market,” she concludes. 

Bernabel Trading

CRYSTAL CLEAR From a new store aboard Buquebus’ Francisco Papa to a variety of fresh products and promotional activities, Bernabel Trading’s focus on the consumer has never been clearer by RYAN WHITE

ernabel Trading has carved out a respectable travel retail business in Montevideo, Colonia del Sacramento and Buenos Aires onboard Buquebus’ fleet of cruise ships. In Montevideo, Zeinal Hnos. S.A., the original company started by the Zeinal family, currently operates nearly 500 square meters of seaport store space spread across three different locations offering general duty free items, clothing, accessories and perfumery. The company’s ferry duty free business is considerably more robust, consisting of over 2,100 square meters of retail space aboard the Francisco Papa, the Silvia Ana, the Atlantic III, the Eladia Isabel, the Juan Patricio and the Flecha de Buenos Aires. Americas Duty Free recently sat down with Walter Zeinal, Director of Bernabel Trading, to discuss the company’s latest store opening onboard Buquebus’ brand new ferry, the Francisco Papa, and business in general over 2013. “Last year turned out to be excellent, with Bernabel Trading ending June 2013 at +12% in terms of sales,” Zeinal tells us. “The

108

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

second half of the year saw sales on par with those of H2 2012, allowing us to close the year on a very positive note.” In terms of top-selling categories last year, Zeinal cites P&C and Confectionery (particularly chocolates) as standout performers. Furthermore, he notes a marked improvement in the Electronics category as the result of a focus on adding prestige brands such as Bang & Olufsen and Bose into the mix. Finally, gourmet foods and make-up for young adults sold well last year given the fact that Bernabel Trading made a concerted effort to give the categories more space in its stores.

Sailing the seven seas In October of 2013 Buquebus’ newest ship, the Francisco Papa, set sail. “The Francisco Papa is really the beginning of a new chapter in the region’s ferry business,” Zeinal told us. “The ship is truly amazing and is designed to carry 1,200 passengers and 170 cars across Río de la Plata from Montevideo to Buenos Aires and back in a very speedy 2 hours.” Bernabel Trading opened a new 1,200-square-meter duty free store aboard the Francisco Papa coinciding with the ship’s launch, and Zeinal tells us that Buquebus and Bernabel Trading were well aligned in their vision for the shop. “The ship was built in Australia and features the highest standards in technology,” he explains. “Similarly, our new store exceeds all expectations in terms of comfort and luxury, providing travelers with an extremely attractive retail offer that consists of an extensive range of products.”

Bernabel Trading’s new store aboard the Francisco Papa is the height of comfort and luxury, providing travelers with an extremely attractive retail offer that consists of an extensive range of products

Zeinal also made a point of noting that Buquebus is stepping up its game in terms of its commitment to the environment. Impressively, the Francisco Papa utilizes a new type of propulsion that reduces emissions up to 98% as compared to existing technology. “It’s refreshing to work with a company that is making a significant contribution to the preservation of the environment,” he adds.

Keeping interest high And other new developments are on the horizon. Zeinal notes that Bernabel Trading makes a point of ensuring that its stores are always up to standard, which generally means a rotating calendar of renovations across the company’s operations. Next on the list for refurbishments are the Silvia Ana stores, with work expected to be completed by June of this year. “Regular renovations are a very good way to ensure that we’re capturing the attention of consumers with bespoke shopping environments,” Zeinal says. “Of course, the other piece of the puzzle is ensuring that all the newest and hottest brands are available. We have a good portion of clients who are frequent passengers. As such, we need to make sure that they’re seeing something new and interesting—whether that be the stores themselves, the products or promotional activities—every time they visit us.” And toward the above objective, Bernabel Trading has recently added brands such as Sisley and Victoria’s Secret to its stores, with the latter occupying a 60-square-meter standalone boutique aboard the Francisco Papa. Looking ahead, shoppers will be able to find brands like Hugo Boss, Paul & Shark, Hermes and other new arrivals at Bernabel Trading’s stores in the near future. 

P&C is one of Bernabel Trading’s most popular categories, and as such occupies a significant space in the operator’s Francisco Papa store

advertisement removed for legal reasons

Miami International Airport

GETTING BIGGER & better

n December 27, 2013, Miami International Airport (MIA) achieved an important milestone in its 85-year history, when, for the first time, the airport eclipsed the 40 million passenger mark. MIA has seen a steady increase in its passenger traffic, growing by more than 12% since 2010. A major factor in MIA’s success has been the airport’s aggressive strategy of seeking out new international carriers. In 2013, MIA added seven new foreign destinations, including Guadeloupe, Martinique, Cozumel, Milan, Curitiba and Porto Alegre through international carrier American Airlines; and Calgary via Canadian low-cost carrier WestJet. MIA’s global route network will expand further with three new route launches scheduled in the first six months of 2014: Belem, Brazil; Brussels, Belgium; and Doha, Qatar. In a press release, Miami-Dade Aviation director Emilio T. González said: “This is a proud moment for MIA and for the men and women who keep this airport going 24 hours a day, 365 days a year. Hitting the 40 million mark—with half of that total being international passengers—speaks to MIA’s staying power as one of the top international hubs in the world.” Since 2008, Brazil, Mexico and Colombia have been MIA’s top three international markets. In 2009, Brazil jumped from number three in that group to number one, and has remained in the top spot since then with more than 1.6 million annual travelers. MIA provides service to nine destinations 110

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

With consistent record-setting years and continued growth on the horizon, MIA is growing its services and accommodations to better serve its customers

in Brazil—more than any U.S. airport—and will be providing service to a tenth destination—Belem—in February 2014. With the 2014 FIFA World Cup taking place in Brazil from June to July 2014, MIA’s new destinations in Brazil are just in time to ensure access to one of the world’s largest sporting events. Mexico ranks second to Brazil among MIA’s top international markets with more than 1.2 million passengers annually. A fourth Mexican destination, Cozumel, was added by American Airlines in November 2013.

Looking ahead MIA anticipates modest yet steady passenger growth through to 2018. Passenger totals at the airport have been steadily increasing year-over-year since 2009, often exceeding projections, and actually setting new passenger records each year from 2010 to 2013. To accommodate its growing customer base and additional international markets, MIA is undertaking a renovation to its North Terminal, which is American Airlines’ hub for Latin America and the Caribbean. With an expected completion date of March 2014, this phase of the renovation will fully connect the inline baggage system to the facility’s federal inspection services area for international inbound flights. In November 2013, MIA received a US$101 million grant from the Transportation Security Administration (TSA) to install a new, state-of-the-art automated baggage screening system that will double the speed of the airport’s current system. A

five-year project, the implementation of the new system will completely replace MIA’s current manual system in MIA’s Central Terminal, and will renovate the existing automated system in the South Terminal to create one interconnected system with 12 new high-performance energy-dispersive X-ray spectroscopy (EDS) machines. The EDS machines will be capable of screening nearly 800 bags per hour, significantly increasing MIA’s screening efficiencies. The project will also construct new postsecurity corridors for connecting passengers between Concourses G and H. This phase of the project will be co-funded through the TSA grant and the aviation department. “While airfield capacity is ample and can accommodate the anticipated traffic growth, MIA will be making some adjustments to handle the growing number of flights and passengers,” said Greg Chin, Communications Director, Miami-Dade Aviation Department. “Starting with the North Terminal, all gates will be retrofitted to handle both large wide-body and smaller narrow-body jets. This flexibility is key to handling traffic growth, and long-term plans include retrofitting gates in the central terminal in the same fashion.” In addition to retrofitting gates, MIA is in the process of identifying new hard stand areas to accommodate aircraft that have prolonged wait times between flights. These hard stands act like additional parking for aircraft, so that they do not sit unoccupied at the gate for extended periods, thereby preventing other arriving aircraft from using the gate space.

In 2013, MIA added 36 Passport Express kiosks to its north terminal. The kiosks allow American and Canadian citizens to have their passports processed in less than two minutes, resulting in shorter wait times for passengers.

One of 15 Duty Free Americas shops located at Miami International Airport. Duty free stores are located strategically throughout the airport and offer products based on passenger demographic

Representatives from MIA and WestJet celebrated with a special cake to announce MIA’s service to and from Calgary via WestJet.

The inauguration of American Airlines flights from MIA to Cozumel, Mexico

New amenities for passengers To further accommodate its growing customer base, MIA has added a number of amenities to make travel at the airport even more efficient and convenient. In July 2013, CNN Airport Network, the nation’s preeminent source for on-thego news and entertainment in the airport industry, launched live streaming of its network at MIA, making its content available throughout the entire airport on multiple devices via the Wi-Fi system. CNN Airport Network also now offers a live simulcast of its 24-hour network as well as Spanishlanguage content from CNN Latino, a Spanish language programming block airing in key Hispanic markets across the country. Travelers at Miami International Airport will be able to view this content by accessing the airports Wi-Fi network, available not only in the terminal areas but throughout all public areas of the airport, as well as in the Miami International Airport Hotel, and across a variety of screens including online, mobile and tablet, for both Apple and Android operating systems. Live streaming of CNN Airport Network will be offered to additional partner airports, with American

Wire Gauge providing streaming capabilities to those airport partners. In fall 2013, TSA expanded its pre-check expedited screening program to three more checkpoints at MIA for a total of four checkpoints in MIA’s North and South Terminals. And in November, MIA became only the third airport in the US to provide automated passport control kiosks to its customers. MIA has installed 36 Passport Express kiosks in its north terminal with an additional 12 to be installed in the south terminal in 2014. Every four kiosks can do the work of approximately one Customs and Border Protection (CBP) officer, making the 36 kiosks in the north terminal the equivalent of adding nine new officers to MIA’s operations. “The new technology allows US and Canadian citizens to have their passports processed in less than two minutes via a self-service kiosk instead of waiting in line for a CBP officer,” said Chin. “The result is reduced wait times and shorter lines for passengers.” To provide further convenience for passengers, American Airlines has recently introduced self-service baggage check-in

kiosks that allow passengers to check their luggage without the need to wait in line to speak with airline representatives, resulting in quicker processing times for passengers. MIA also offers a comprehensive selection of products available through its duty free shops. Duty free is an important aspect in MIA’s overall profitability, accounting for 35% of unaudited non-aeronautical revenue in the airport’s 2013 fiscal year. Duty Free Americas is the sole duty free operator at MIA. To help promote products available through duty free stores at MIA, the airport offers its duty free operators access to an airport-wide marketing program designed to drive sales of duty free products. “Duty free is a major cornerstone of the concession program at MIA,” said Chin. “Duty free produced gross revenue of US$116 million in the 2013 fiscal year. Duty free products continue to attract international passengers, and while certain products may be found in other retailers, passengers are drawn to the ‘tax free’ concept. Duty free stores are strategically located and market-based on the passenger demographic of the area.” 

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

111

Frontier Duty Free Association

A new

chapter by

This year’s Business Development Summit and Golf Tournament will take place from May 6 to 8 in Kelowna, BC at the Delta Grand Okanagan

RYAN WHITE

The Frontier Duty Free Association says goodbye to Niagara Falls as its venue as the organization looks forward to a 2014 full of new initiatives and experiences

“

he 2013 Frontier Duty Free Association (FDFA) convention and tradeshow, held in November at the Hilton Fallsview Hotel in Niagara Falls, Canada proved to be a huge success, with an all-day operators meeting where a range of issues were discussed, including liquor and tobacco allowances; credit card transaction fees; continuing to educate the public on duty free’s unique offers; and the sharing of information between TFWA and FDFA for the benefit of the industry as a whole. Rob Rathke, Senior Director of MatchWeld, and Karen Badtke, Group Account Director of MatchDrive, were present at the operators meeting to discuss Match’s work on the FDFA’s national marketing campaign. Rathke noted that this year Match will be exploring opportunities for partnerships with a variety of companies, including tour operators, car rental agencies, gas stations, border towns, tourist attractions and more. A total of CAD$100,000 has been allocated for the next phase of the campaign, and the funds will be divided up among display ads; partnerships; Facebook ads; Google AdWords; community management activities; changes to the www.dutyfreeLAURIE KARSON, canada.com website; and agency execution. EXECUTIVE DIRECTOR, FDFA

Collectively we form a large industry that spans a very big country, but the show always has a very family-oriented feel and we’re very proud of this.

112

”

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Rathke gave those in attendance a preview of promotional elements for Black Friday and also presented a mock-up of the new-look www.dutyfreecanada.com website. In the future the site’s home page may feature region-specific artwork/information, and in the coming months both the site content and other marketing initiatives will be geared toward women given that they are often the planners and decision-makers in households. “In 2012, online travel e-commerce broke US$100 billion,” Rathke noted during the meeting, clearly excited for the potential that the next phase of the marketing campaign holds for the industry. Laurie Karson, Executive Director of the FDFA, announced that high on the organization’s list of priorities is an FDFA board meeting to work on creating a number of small committees, each with a specific remit, to better serve the industry. Karson took time to announce that the 2014 Business Development Summit and Golf Tournament will take place from May 6 to 8 in Kelowna, BC at the Delta Grand Okanagan. “This year’s Business Development Summit and Golf Tournament was a big success and we’re looking forward to another great event in 2014,” she said.

PLEASE COME VISIT PROXIMO SPIRITS CHASE INTERNATIONAL BOOTH #1111, Please Drink Responsibly. DRINK RESPONSIBLY. THE KRAKEN® BLACK SPICED RUM. ©2014 KRAKEN RUM CO.,JERSEY CITY, NJ 47% ALC/VOL. (94 PROOF)

Frontier Duty Free Association After a Diageo-sponsored lunch and some housekeeping notes back in the meeting room, the Welcome Reception took place at the Watermark Restaurant overlooking Niagara Falls. Delegates were treated to a tarot card reader, regional cuisine from various Canadian provinces and drinks sponsored by a number of spirits suppliers. Delegates with energy to spare met in the Hilton’s lobby at 6:30 am on Monday morning for a fun run/walk to benefit Child Find Canada before a full day on the tradeshow floor. Rob Rathke again spoke about the FDFA’s national marketing campaign at the TFWA-sponsored lunch. The evening saw an FDFA-organized media appreciation cocktail and a Moët event sponsored by Distribution Fontaine. The tradeshow floor was again open on Tuesday and Wednesday, with much more business being done during that time, before closing its doors down at 3:00 pm on Wednesday ahead of the highly anticipated Gala Dinner and Gold Standards Awards Presentation. Americas Duty Free spoke with Laurie Karson about her thoughts on the event on the morning of the last day: “We’ve welcomed a total of 223 delegates this year,” she explained. “So far it’s been another fantastic convention. It’s a little bitter sweet because this is our last year in Niagara Falls, but we’re very much looking forward to welcoming the industry to Toronto from November 16 to 19, 2014. “We’re up slightly from last year in terms of total registrants, and the number of suites booked by suppliers has also increased,” she continued. “I’d like to thank everyone participating in this year’s event—the sponsors, the operators, the suppliers and the media,” Karson concluded. “Everybody here is an integral piece of the puzzle. Collectively we form a large industry that spans a very big country, but the show always has a very family-oriented feel and we’re very proud of this.” 

114

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

The Gala Dinner and Gold Standards Award Ceremony on Wednesday was well attended by buyers, suppliers and service providers alike

The well-attended Welcome Reception took place at the Watermark Restaurant overlooking beautiful Niagara Falls

CHRONO CLASSIC 1/100 FROM A 1/100TH OF A SECOND CHRONOGRAPH TO A PERPETUAL CALENDAR 3-year warranty I Swiss Made I 41 mm I Water resistant to 100 meters I Scratchresistant, triple-coated anti-reямВective sapphire crystal I Ref. 241618

MAKERS OF THE ORIGINAL SWISS ARMY KNIFE I WWW.VICTORINOX.COM

Caribbean ARI

Runway Duty Free employee Keno Rollins poses next to one of his winning “Did You Know?” displays

Mount Gay rum experienced a 50% increase in sales thanks to discounted prices

Terminal velocity Caribbean ARI celebrates another successful year in Barbados by DAVID NUSAIR

ince its inception in 2007, Caribbean ARI has been serving Barbados’ Grantley Adams International Airport with three retail stores: Runway Fashion, Runway Beauty, and Runway Duty Free. According to Patrick Molloy, General Manager, Caribbean ARI, sales have remained at a consistent level over the past several years, with the company’s numbers for 2013 managing to hold steady despite a decline in departing passengers. “The mitigating factor has been an increase in our average transaction value coupled with an increase in penetration,” he explains. Says Molloy, Caribbean ARI’s top three categories are Liquor, Tobacco and Perfumes & Cosmetics. The latter paved the way for an increase in sales for Caribbean ARI’s Runway Beauty outlet, with, explains Molloy, “the improved resources and support” from Chanel, ensuring that the French brand sold especially well over the past year. The shop, which is stocked with a wide variety of fragrances, cosmetics and skincare products, also benefited substantially from an expanded assortment of Estée Lauder and Clinique merchandise. Molloy also credits Runway Beauty’s 2013 success to the creation of a new campaign geared towards women with darker skin tones. “We spotted a gap in the market,” explains Molloy, “and launched ‘Black Up’ in August this year to realize the potential in

116

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

this segment.” Noting that “initial sales have been very encouraging,” Molloy says that Caribbean ARI is focused on building brand awareness for this innovative promotion. Going into 2014, Runway Beauty is completing plans to renovate the existing displays for many of their top-selling brands—including Chanel, Yves Saint Laurent and Burberry. The shop also received a major boost from the September 2013 release of Rihanna’s fourth fragrance, Rihanna Rogue. “Interest in the launch has been extremely high,” says Molloy, due to Rihanna’s local heritage. The perfume “has proven extremely popular with visitors to the Island,” he explains. Although tobacco sales remained consistent in 2013, Caribbean ARI’s Runway Duty Free shop’s liquor offerings continue to comprise the majority of the company’s sales—not surprisingly with rum accounting for 50% of liquor purchases. Says Molloy, “whilst we have some amazing brands, the market leader for us in Barbados is our own locally produced Mount Gay.” The 300-yearold brand experienced a dramatic increase in sales due to a below-the-line promotion on their “Extra Old” reserve product. Liquor-based food products have also proven to be a hit with consumers. “Rum cakes remain incredibly important for us,” Molloy explains. “Novelty items are always popular with our local passengers and this year Smirnoff ’s confectionery-flavored vodkas have sold extremely well.” Addition-

Runway Beauty’s new “Black Up” line of cosmetics offers more choices for women of color

ally, Caribbean ARI’s support of local food products continues to bolster their presence in the region. With Caribbean ARI’s parent company Aer Rianta International celebrating its 25th anniversary in 2013, employees across the globe were invited to submit their concepts for new retail ideas and innovations. Explains Molloy, the winning suggestion from Barbados was called “Did You Know?” and provided “additional interesting facts for all the products that we are promoting in our stores.” The man behind the idea, Keno Rollins, has worked at Runway Duty Free since its inception and, Molloy says, he “won a great prize and was recognized across the ARI group.” 

Dufry

Staying ahead

of the game Dufry’s focus on emerging markets has led to a number of new developments in Latin America and the Caribbean

hen you consider the markings of any successful company, longevity is often at the top of the list. Take Dufry, for example, which boasts a nearly 150-year history, more than 50 of which are in travel retail. The global travel retailer has operations in 45 countries and operates more than 1,350 shops located at airports, seaports and onboard cruise liners. With a wide portfolio of high-end products ranging from perfumes and cosmetics to jewelry and baggage from more than 1,500 suppliers, it goes without saying that Dufry has become a major player in the duty free and duty paid markets. Headquartered in Basel, Switzerland with operations in four global regions, Dufry continues to focus on expanding its existing shops and strengthening its presence in attractive markets. Of these, some of the more important markets are Latin America and the Caribbean, where in 2011 Dufry

acquired retail companies in Argentina, Uruguay, Ecuador and Martinique. Most recently, the company signed long-term contracts in Sao Paulo, Brasilia, Viracopos and Natal to operate duty free and duty paid spaces, further solidifying its presence in Brazil. According to René Riedi, COO, Dufry Region America I, despite the fact that traffic in these regions has slightly declined, Q3 results show a robust growth in sales in 2013. He attributes this to a higher importance on promotional activities and service. “Price is still the main factor to purchase luxury items in duty free stores but service aspects are gaining importance,” he says. “In terms of categories, Tobacco is showing a negative trend, Liquor is stable, Perfume & Cosmetics’ importance is slightly increasing and Souvenirs is also growing in importance. The luxury sector shows clear signs of growth and offers room for further development.”

One of Dufry’s stores in Uruguay

118

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

“In terms of categories, Tobacco is showing a negative trend, Liquor is stable, Perfume & Cosmetics’ importance is slightly increasing and Souvenirs is also growing in importance.” RENÉ RIEDI, COO, DUFRY REGION AMERICA I

What’s hot in store In the Caribbean, the top-selling categories for Dufry are watches, jewelry and accessories, followed by liquor and perfume & cosmetics, which altogether represent a significant portion of total sales. Since the Caribbean is considered a traditional market for jewelry and watches, it’s no surprise this category is the leading seller for Dufry. The company sells this category in its stores at airports, ports, cruise liners as well as in downtown locations. Top-selling brands include Tag Heuer, Citizen, Guess, Michael Kors and private jewelry labels like Colombian Emeralds, with buyers mainly coming from the US. Not to be outdone is liquor’s importance in the Caribbean, which Riedi says is stronger than other regions in the Americas due to high local consumption and competitive prices. In this category, Dufry sells mainly at airports with top-selling brands being Johnnie Walker, Hennessy and Brugal Rum. As for perfumes and cosmetics, Chanel, Lancôme and Clinique outperform all other brands for Dufry. And in keeping with the company’s efforts to “capture its full potential,” new brands and products in nearly all categories have been acquired. These include Desigual, Invicta, La Martina, Fire CZ and Follie Follie.

Dufry

The buzz on promotions No product can be sold effectively without large-scale promotional efforts, something Dufry knows all too well. In 2013, the company implemented a number of in-store promotions in the Caribbean in order to keep up with recent market trends and increase brand exposure. “Dufry is adapting its supplier relationship and store layout to these trends. We have been reorganizing the spaces in all important locations and have added new products and brands that meet the changing customer demand,” added Riedi. In December, promotional areas in the Caribbean’s top locations were set up to highlight the Chanel No. 5 fragrance. A price promotion of US$24.90 on select fragrances from the likes of Calvin Klein and Nina Ricci was also launched from October-December,

the result of which boosted category sales in the region. Also during this time, Dufry promoted the launch of Johnnie Walker XR-21 with dress up and premier animation in the key market of Mexico. This high-impact launch included a rotunda space with visual displays and tastings, and certainly helped put the brand top of mind among consumers and introduce the new exclusive item to the masses. Additionally, the company launched an in-store customized promotional gondola in prime spaces from October 1, 2013 to January 31, 2014. Up to 40% off local prices was offered on select items in the Spirits, Confectionery and Fragrance categories. Discounted brands included Absolute, Johnnie Walker, Laurent Perrier, Nestlé, Lindt, Lancôme, Ralph Lauren and Calvin Klein.

Dufry offered special discounts and promotional prices last year in key markets in Latin America and the Caribbean

Dufry regularly renovates and enhances its retail concepts to stay up to date with market trends

120

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Retail concepts and renovations Dufry’s extensive network of retail outlets is comprised of four main concepts. Offering a large selection of products with over 50,000 item references, general travel retail shops are located in both Arrival and Departure areas in airports, with each location differing in product assortment, layout and operations according to respective customer profiles and spending patterns. In response to consumers’ habits in departure shops, Dufry has implemented walkthrough shops in more than 10 locations. While retail shops sell everything from tobacco and alcohol to food, perfumes and cosmetics, News and Convenience Stores offer mainly newspapers, magazines and books, complemented by convenience products like confectionary and travel electronics. Predominantly located in the United States and Canada under the Hudson News brand, these stores are quickly gaining traction with store openings in Puerto Rico, the Dominican Republic, Italy, Switzerland and Egypt. Brand boutiques are positioned primarily to complement Dufry’s general travel retail shops, either as standalone locations or integrated within stores. The company operates international boutiques for various prestigious brands such as Hermès, Armani, Victoria’s Secret, Lacoste, Omega and Bulgari. Rounding out the list are specialized shops, one of the main ones being the Colombian Emeralds International (CEI) shops. Located in airports, seaports, hotels and downtown locations, these outlets focus on different product categories like confectionary and electronics. To keep its retail concepts fresh, Dufry renovates each shop every three to five years. Most recent notable renovations include the main Departure and Arrival shops in Ezeiza (Buenos Aires), the Departure and Arrival shops in Aeroparque (Buenos Aires), the main walkthrough shop in Puerto Rico’s Terminal A, several shops in Terminals C and D in Puerto Rico Airport, and the new walkthrough shop in Puerto Vallarta. All enhancements are scheduled for completion by March 2014. “The reasons for these renovations include availability in commercial spaces, improvement of layouts and adaptations to customer trends,” said Riedi. “From these refurbishments, extensions and completion of new shops, we expect to see an overall enhancement of the shopping experience and a considerable increase in revenues.” 

L’Oréal’s Travel Retail Americas, Parbel

A sonic leap forward

L’Oréal’s newest acquisition offers a revolutionary skincare product

HIBAH NOOR

L’Oréal has stepped up its efforts to raise awareness among Asian customers and offered a limited edition Clarisonic device for the Chinese New Year to celebrate the Year of the Horse

or over 100 years, L’Oréal has been a forerunner in the world of cosmetics and beauty products. Flush with success and looking to expand its reach, the company got into the travel retail arena back in the 1960s and has since established itself as a market leader within the industry. L’Oréal’s Travel Retail division offers a number of luxury products to travelers all over the world, with such top-selling brands as Lancôme and Yves Saint Laurent falling under the group’s extensive purview. With the travel retail channel earning upwards of US$50 billion in 2012, L’Oréal’s staggering 21.6% market share has afforded it the ability to take a gamble on innovative new products. Purchased by L’Oréal in 2011, Clarisonic has perfected a revolutionary method of skincare that utilizes the very latest advances in sonic technology. The company boasts a wide range of cutting-edge products, from the one-speed, one-button Mia to the top-of-the-line, multi-speed Pro model. Clarisonic’s Sonic Method, which was initially developed for use by skincare professionals, allows the user to customize their cleansing experience depending on their 122

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

own skincare needs, with the brand’s cleansing brush progressing from a mild initial speed to a third speed that’s more than 50% more powerful than the first. “Clarisonic is an innovative brand that brings beauty to another level, which complements any skincare routine as it is a transversal device and can be used with any brand,” explains Paul Connors, General Manager, Clarisonic & Lancôme, L’Oréal Travel Retail Americas, Parbel. The “technological approach of Clarisonic” will allow L’Oréal to position itself within an entirely new segment of the skincare market, Connors says, and the company is extremely excited about the potential of Clarisonic’s innovative line of products. “Clarisonic does not vibrate nor rotate. Clarisonic’s patented sonic technology oscillates back and forth at more than 300 movements per second to gently cleanse the skin while removing impurities.” He continues: “The engineers who started this adventure had only one goal: to transform the skin one face/pore at a time.” To that end, Clarisonic’s products go beneath the skin to reduce the appearance of pore size, which ultimately creates a noticeably softer and smoother complexion. It’s a holistic approach that allows customers to create their own skincare regimen, and Clarisonic’s products have clinically been shown to remove makeup, dirt and oil better than traditional methods. Connors says Clarisonic’s Cleansing Brush gives the

user “a healthier, more radiant skin which is blemish free” and notes that “you can really feel the difference versus cleansing your face with your hands. The brush is clinically proven to perform six times better than a manual cleansing.” Unlike many of the other brands under L’Oréal’s umbrella, Clarisonic is unique in that it’s mostly discovered by customers during a spa treatment or through their dermatologist. “Clarisonic has been endorsed and is recommended by more than 4,000 leading dermatologists and available in well-known luxury spas,” says Connors. “Clarisonic has the particularity to create its own awareness,” which essentially means that customers who try it in a professional environment and see the results want to share it with their friends. “The word of mouth is what builds Clarisonic’s brand awareness.” And while other companies offer similar products, Clarisonic’s sonic technology ensures that it stands out head and shoulders above other brands. “Clarisonic is safe to use twice daily on your face, even for those with skin conditions such as rosacea,” says Conners. Noting that the devices are also completely waterproof, he explains that Clarisonic “cleanses the skin while preserving its natural elasticity, the fundamental element of the brand’s success.” Since purchasing Clarisonic in 2011, L’Oréal has had its sights set on improving the brand’s prosperity in territories beyond North America. Fortunately, says Connors, customers have embraced Clarisonic’s range of products with open arms. “Our retailers

are happy to see that Europeans, Asians and also Russians are responding well to this new product,” he explains. Clarisonic is already receiving extremely positive feedback from consumers and many retailers have “confirmed that being the first to launch is paying off.” L’Oréal is especially optimistic about Clarisonic’s potential within the Asian markets because compared to other passengers’ profiles, Asians tend to be more concerned about their skin. “It is no surprise they have one of the longest skincare routines of any culture. Clarisonic is therefore a necessary and complementary addition to their regimen as a preliminary step to any type of anti-aging or hydration application,” says Connors. As a result of the above, L’Oréal has stepped up its efforts to raise awareness among Asian customers, with the company offering a limited edition device for the Chinese New Year to celebrate the Year of the Horse. Clarisonic has already been launched at Los Angeles International Airport’s Tom Bradley International Terminal and Waikiki’s T Galleria, where, Connors explains, “a substantial majority of the passengers are Asian.” In the coming months the company is also introducing, “the Deep Pore Detoxifying Solution Kit, which helps reduce the appearance of pores for those with oily skin.” Though L’Oréal has only owned the Clarisonic brand for a short while, the company has already begun to see promising

results and impressive growth. In 2013 the results were above initial expectations, and the company was able to double the target it set due to the better-than-expected performance of the brand at the aforementioned LAX and Waikiki locations. The Clarisonic line of products have since been made available at four more points of sale, including Royal Caribbean’s Mariner of the Sea cruise line and Cancun’s Ultrafemme boutique. L’Oréal Travel Retail has ambitious plans for Clarisonic in 2014, with the company planning to make the brand available at many more points of sale throughout the year. This will, explains Connors, help L’Oréal develop its “distribution in the US and Caribbean, as well as in Mexico.” For his part, Connors is extremely enthusiastic about the potential of this revolutionary product. “I like to use it to prepare my skin before shaving. It helps the hairs on your skin to soften for a smoother, closer shave. It is really invigorating to start your day with a Clarisonic.” 

Clarisonic Aria Sonic Cleansing Brush offers three customizable speed settings and advanced features

The Clarisonic Plus Sonic Skin Cleansing Brush offers a total face and body experience for the most versatile cleanse

Mia 2 Facial Sonic Cleansing Brush is lightweight, compact and equipped with a travel case perfect for travelers on-the-go

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

123

Essence Corp.

Essence Corp. enjoys sweet smell

of success by

HIBAH NOOR

The future continues to look bright for the luxury fragrance distributor

positive growth continues to leave Essence Corp. in good spirits, with a 5% increase in business in 2013. Based in Miami, the distributor has some strong brand names in its corner including some of the most prestigious fragrance names in the industry: Jimmy Choo, Bulgari, Versace and Moschino are just a sample of what the company offers. Looking ahead to 2014, some key fragrances will make their debut at the IAADFS show in Orlando, and will find their way to duty free and travel retail markets shortly after their launch. Some of the major launches include Burberry Brit Rhythm Woman, Versace Bright Crystal Absolu, Montblanc Emblem, Karl Signature Duo for Him and Her, Jimmy Choo London Club, Dunhill Silver Men, GAP 1969 Inspire & Imagine, Agent Provocateur, Thierry Mugler Alien Eau Extraordinaire, Issey Miyake Pleats Please L’Eau, Elie Saab L’Eau Couture, Elizabeth Arden Untold Eau Légère, Britney Spears Naughty & Nice, Hermès Terre d’Hermès Eau Très Fraîche, Bulgari Omnia Indian Garnet and Aqua Amara, One Direction That Moment, Lolita Lempicka Elle l’Aime.

124

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

To celebrate the launch of these new products, Essence Corp. has planned some promotional activities with platinum launches in Brazil, airport animations in Caribbean airports, bus wraps in Cancun, full page advertising in in-flight publications, plus client magazines and catalogues. Essence Corp. has added two new employees to its roster, including an Area Manager based in Montevideo in 2013, and an Account Supervisor in Miami as of January 2014. These new positions complement the existing employees of Essence Corp., which includes 47 employees in Miami, 12 around the various regions, 38 in sales and training, 12 in marketing, 9 in administration and finance, plus 237 Beauty Consultants around the world. “We have also added new retailers in the Americas region,” explains Jean-Jacques Bona, President, Essence Corp. “We listed our brands with Heinemann, which set up

Some of Essence Corp.’s major launches include Burberry Brit Rhythm Woman and Versace Bright Crystal Absolu

a buying office in Miami in order to supply some cruise ships.” The company is particularly happy to see that North America is going to continue to be a large market for it in terms of growth, thanks largely to Asian travelers according to Bona. To help launch the new products, special promotional events are being held in duty free. “In partnership with our clients, we will participate in big in-store promotions that have not yet been defined,” states Isela Ledon, Operations Planning Manager, Essence Corp. “We will have travel retail exclusive sets and very qualitative gifts for in-store promotions.” Future plans for Essence Corp. will help the company to focus on the Asian consumer, as they pass through North American airports. LAX, SFO, JFK, Vancouver and Toronto are the airports that the company sees the highest traffic from Asian consumers. “In each of these locations, we hire Asian Beauty Advisors who speak multiple languages,” explains Bona. “We also coordinate launches simultaneously with the domestic launches in Asia in order to create a full travel retail halo effect. Asian consumers are also heavily driven by gift with purchases.” With such a large sampling of new fragrance products debuting in 2014, Essence Corp. will no doubt continue an upwards trend of growth well into the future. 

SUBSCRIBE TO AMERICAS DUTY FREE MAGAZINE

ONE YEAR – 5 ISSUE AND 24 ENEWSLETTERS

Subscribe to Americas Duty Free & Travel Retailing Magazine and its monthly eNewsletter to keep you informed of the latest news. Simply fill out and return this subscription card to the following address, or fax with your credit card details to +1 905-821-2777

TWO YEARS – 10 ISSUES AND 48 ENEWSLETTERS

US$200.00 US$300.00

SUBSCRIPTION FORM

company name

Please fill out this form and fax to 1-905-821-2777 or email to deepa@globalmarketingcom.ca

date

name

Americas Duty Free & Travel Retailing magazine 26 Pearl Street, Mississauga, ON Canada L5M 1X2 Tel: 1-905-821-3344 Fax: 1-905-821-2777 email: deepa@globalmarketingcom.ca

mailing address

city

province/state

country

postal code/zip

(

) area code

(

phone

) area code

❑

SIGN ME UP! I would like to receive a subscription to magazine ❑ One Year US$200.00 ❑ Two Year US$300.00

fax

❑

Enclosed is a cheque or money order made payable to Global Marketing Company Ltd.

❑

Bill me

❑

expiry date

credit card number

signature

date Paym ent in U. S. funds m us t ac c om pany this s ubs c ription c ard.

Ferragamo Parfums

Ferragamo Parfums will unveil Signorina Eleganza to the Americas at the IAADFS show

Ferragamo Parfums debuts

Signorina Eleganza Ferragamo continues its quest to create luxurious fragrances for high end customers

ringing new fragrances to the travel retail market is nothing new for Ferragamo Parfums, with an impressive range of perfumes in its fragrance base since founding the company in 2001. At the upcoming IAADFS tradeshow, Ferragamo Parfums will be introducing the newest addition to its fragrance catalogue with the launch of Signorina Eleganza. This new product is designed to be one of Ferragamo Parfums’ most sophisticated scents yet, creating a fragrance celebrating “feminine grace and seduction.” Coming from the olfactive family of floriental chypre, Signorina Eleganza includes grapefruit, pear, almond powder, golden osmanthus petals, patchouli and white leather elements. It is packaged in a nude beige palette with gold embossed lettering and a gros grain Vara bow that comes in two colors. During 2013, the Ferragamo Parfums brand consolidated its presence in the Americas market and will push forward and further establish its presence in Duty Free Americas and Dufry-operated stores,

126

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

while exploring selling in the open water on cruise ship retail locations. “We have achieved a positive trend in growth in the travel retail market,” explains Luciano Bertinelli, CEO of Ferragamo Parfums. “Our business has seen a doubledigit growth in 2013 due to the increase of travelers to which we continue offering a wide range of products and novelties. The increase of our duty free operators has also had a positive impact on our sales.” The company plans to consolidate its presence by driving sales and strengthening brand positioning by collaborating with strategic partners and retailers. Between its wide product assortment and sales space strategy the company will continue to focus on the travel retail market as a key growth area for its brand. “We also have dedicated departments in the APAC and LATAM regions dedicated to the development of our duty free business,” states Bertinelli. The company has seen that retailers are lighting up their assortments, shrinking inventories and focusing on products with higher returns and plans to work with retail-

HIBAH NOOR

ers to achieve those goals. The Asia Pacific market continues to be the largest market for Ferragamo Parfums, but it certainly sees potential in enlarging the company’s market share in Europe and Latin America, where it sees potential emerging markets in Mexico, Brazil and the entire Caribbean area. Ferragamo Parfums ensures that its fragrance products meet customer expectations through offering a large selection of products made available through its fragrance portfolio. “Our POS display and positioning is of course crucial for our business,” explains Bertinelli. “We need to move quickly and adapt faster to the market trends by strategically planning our distribution.” He explains that the fragrance market is driven by novelties, with consumers expecting higher and higher levels of luxury and high quality products. “Ferragamo Parfums evolution is constant and to reach its true potential, the brand introduces new products periodically. Our focus continues to be to build the brand pillars with high quality and appealing products that have a broad consumer base.” 

EDGE

U S A

info@edge-us.com

For Information please contact David Tillman

Beauty2Market - 914-815-0031 dctillman@beauty2market.com

H2O Plus

H2O PLUS

launches new

collections

H2O Plus extends its Oasis Collection into Bodycare with three key products all based on oil-free marine hydration

New products released for 2014, Caribbean distributor added

eriving its products from the sea, skincare developer and manufacturer H2O Plus will be showcasing its newest releases at the IAADFS trade show. The company prides itself on cultivating the skin-changing power of marine life, including sea weeds and algae that absorb a concentration of minerals and antioxidants. “Overall H2O Plus has experienced double-digit increases in retail sales over the past year,” explains Tiffany Cavallaro, Vice President of Global Marketing, H2O Plus. Notable achievements include growth in North America, positive results in Asia, and strong performance in Europe. “2014 will be a robust year of exciting new product introductions throughout our collections,” says Cavallaro. The first half of the year brings about an element of celebration within the company for a key anniversary. “As we celebrate H2O Plus’ 25th anniversary, we are extending our heritage brand family, the Oasis Collection into Bodycare with three key products all based on oil-free, marine hydration, including Oasis Body Cleansing Water, Oasis Body Scrub and Oasis Body 24 Hydrator.” The company continues to offer more variety

in the key moisturizer category. “Based on global demand, we are also launching Face Oasis CC Cream Broad Spectrum SPF 30 PA+++ in both a Fair/Light and Light/ Medium shades,” explains Cavallaro. The second half of the year will see a focus on the company’s spa based products, as described by Cavallaro, “We are pleased to introduce two new scents to our Spa Collection in 2014, Sea Amber and Sea Lavender. Our Spa line will smooth and revitalize the skin using rich marine ingredients to help restore softness and deliver an instant escape.” H2O Plus’s current Bath Favorites Collection is being reformulated and renamed, which will now be the Bath & Body Infusions Collection. All existing Shower & Bath Gels and Moisturizing Body Balms are being updated and will offer sulfates, parabens, phthalates, mineral oil and dye-free formulas. “We are also expanding our scent offerings to include Vanilla Almond, Crisp Cucumber and Grapefruit Bergamot. All of the above new products will be available at the IAADFS trade show along with the company’s core assortment of products for attendees to experience first-hand,” says Cavallaro. To facilitate its continued growth in the

H2O Plus’s current Bath Favorites Collection is being reformulated and renamed, which will now be the Bath & Body Infusions Collection

128

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

New Sea Lavender Collection

duty free industry, H2O Plus continues to strengthen its existing partnerships with travel retail. “We have enlisted Miami-based distributor, Philippe Gerard Enterprise, Inc., (PGE) to broaden our distribution in the Caribbean. We will continue to offer new, exciting collections to strengthen our presence in travel retail,” states Cavallaro. “In an effort to increase our presence in locations where customers shop, we recently launched in all Kohl’s Beauty Concept stores. This provides convenience to tried and true H2O Plus fans, allows the brand to reach never before distributed markets and introduce our products to new customers.” The company’s strongest growth forecasts continue in countries such as China, Russia, India, and it also has a strong focus on its European business. The company is looking forward to expansion in travel retail with Paraguay, Uruguay and the Caribbean through 2014. H2O Plus will offer customers some special promotions on its products in duty free. “We’ll be launching several new Gift With Purchase (GWP’s) which offer opportunities for our customers to try a combination of new products along with our bestsellers. As the global marketplace continues to be more competitive, we are implementing calls to action at the point of sale,” concludes Cavallaro. 

Perfume Holding

A FIRM HOLD

IN THE AMERICAS Perfume Holding sets its sights on improving brand awareness in the region by HIBAH NOOR

t didn’t take Perfume Holding very long at all to establish itself in the international market of fragrance licensing. The company is already well on its way to becoming a leader in the semi-selective segment with a presence in over 100 countries worldwide and a portfolio that includes such notable brands as Ferrari, Ducati, La Perla and more. And with the recent addition of Liu Jo, the Italian ready to wear fashion label, it seems that Perfume Holding has secured its foothold in European markets. But now the focus has shifted to the Americas, where Marco Lares, newly appointed Director of Sales, Americas, says Perfume Holding is on the verge of making a lasting impact. “The potential for our growth in the Americas is unlimited if we consider that with Ferrari alone, we have one of the most well recognized brands all over the world,” he says. “Be it with our current portfolio or with the new additions to our already very sophisticated fragrances and cosmetics, Perfume Holding is definitely prepared to compete in this market.” In Latin America, Lares notes that the company is very active in Mexico, Uruguay and Argentina where Ferrari is regarded as a top fragrance brand. Also, Ferrari is ranked one of the top five brands in Brazil’s local market. Beyond that, “we have distribution in all of the major markets in the Americas including the US, Canada, the Caribbean and many other locations in Central and South America,” he says. To help maintain this momentum, Lares points to the importance of having both selective and semi-selective brands in the company portfolio.

130

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

With this in place, brands can then be present in select retailers and enjoy wider distribution. “The goal in the next two years will be to have Ferrari in top positions through all regions, as well as to properly position brands like La Perla, Ducati and I Coloniali as a start,” he adds. “Our diverse portfolio of brands allows for us to grow according to the level of recognition of each one. For example, while we know that Ferrari and La Perla are widely known in the Americas and can do extremely well in all travel retail locations, other brands such as I Coloniali would do better in some more exclusive locations.” And as the new Sales Director for the Americas, it’s up to Lares to evaluate in the coming months the best way to promote Perfume Holding and its various brands. “Our goal would be to learn in which locations we would be able to satisfy the demand of the traveling public and who is aware of our products.” In Asia and the Middle East, for example, the company’s travel retail partners have benefitted greatly from the positioning of Ferarri fragrances. It is Lares’ mission and desire that partners in the Americas would similarly benefit. “The opportunities in travel retail are enormous for Perfume Holding and especially for Ferrari, which more and more people recognize as one of the top male fragrances in the world,” he says. “One of the goals in the region is to develop travel retail and give our brands the visibility they deserve.” The next steps for the company will involve intensive media activity, both online and offline during the second semester of 2013. Much of the focus will be dedicated to Ferrari in Brazil and Mexico, “two countries that represent our best opportunity for growth and where we expect a significant level of success,” Lares says. With this plan in place, it’s safe to say the future for Perfume Holding looks bright indeed. And no one is more up to the challenge of increasing awareness in the Americas than Lares, who brings to the table expertise in product launches, training, window displays, POS materials and brand repositioning. “I believe that Perfume Holding would greatly benefit from my background in sales and marketing of high-end European and international brands to the travel retail segment in all of the Americas,” he says. “My expertise in sales to the local markets in Mexico, Central America, South America and the Caribbean combined with my experience in dealing with distributors will be a great benefit in my new role as Sales Director for the Americas.” 

Beauty Beat: Fragrances

Beauty boosters A host of alluring scents fill the air as suppliers roll out their best offerings yet for the warmer seasons Perry Ellis Company: Falic Fashion Group Description: The woody aromatic scent opens with a bitter orange citrus burst and spices of cardamom, coriander and clary sage. The heart of the composition encompasses fir, mint, cedarwood and lavender, evoking the energy and wit of the Perry Ellis man. Base notes include sandalwood, patchouli and white moss wrapped in the warmth of tonka bean, amber and musk Booth: 2217

Elie Saab L’Eau Couture Company: Beauté Prestige International Description: The floral fragrance is encased in an elegant water-green box. The delicately facetted bottle reveals a crystalline green juice Booth: Atlanta salon Pleats Please L’Eau Company: Beauté Prestige International Description: Aurélien Guichard, the original creator of Pleats Please Eau de Toilette and Eau de Parfum, uses the phrase “ethereal freshness” as inspiration. The fresh scent combines fruity and floral notes Booth: Atlanta salon 132

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Travalo Crystal HD Company: Travalo Description: Travalo introduces its pioneering custom made high definition spray heads. With the focus on high performance, the custom made HD spray head offers a luxurious fragrance mist, increased wraparound coverage and more efficient overall fragrance usage Booth: 2500 Guess Girl Belle Company: Coty Beauty Description: Awardwinning perfumer Laurent Le Guernec of IFF combines vibrant fruity notes with floral tones. Sparkling top notes are made up of berries dropped into pink champagne. Middle notes consist of peony, violet and natural jasmine sambac. End notes contain Australian sandalwood, musk and mouth-watering vanilla Booth: 1716

Killer Queen by Katy Perry Company: Coty Beauty Description: Katy Perry’s new floral fragrance captures her “rebellious spirit, throwing convention to the wind.” Inspired by a queen’s scepter, the distinct jewel-shaped bottle in shades of royal red and gold portrays sexy luxury Booth: Nautica Voyage N-83 Company: Coty Beauty Description: Nautica’s latest men’s fragrance “embodies the feeling of exploration, power, and a bold desire to discover new adventures.” The “83” honors the year of the company’s founding and the brand’s rich sailing heritage, where every boat is identified by a unique sail number. The fragrance evokes crisp salty breezes, rugged spices and woody musks Booth: 1716

Valentino Uomo Company: Puig Description: Valentino Uomo is enveloped by zesty bergamot and its hint of spice. It opens with myrtle, notes of coffee and tones of gianduja cream. It is retained by an enveloping musky hint of white leather that reveals the majesty of cedar. A classic accord, softly smoky and woody Booth: Crystal salon P & Q

Guess Night Company: Coty Beauty Description: The fresh, invigorating scent is dominated by the masculine aroma of woody fougere. Hot pepper, notes of grapefruit and the essence of vetiver compliment the core aroma for a long-lasting cologne. The glass bottle is 360° faceted, creating a constant reflection of light. The electric blue edging detail and collar are reminiscent of pulsing night club lights Booth: 1716

Endless Euphoria by Calvin Klein Company: Coty Prestige Description: The perfume opens with cherry blossoms, refreshing mandarin and bergamot, the heart comprises floral notes of violet, pastel rose, and syringa. The base includes bamboo, sandalwood, and musk Booth: Crystal salon M & N

212 Vip Rosé By Carolina Herrera Company: Puig Description: This new fragrance is fresh and feminine and is made up of three accords including champagne rosé, peach flower and queen wood. The base note consists of queen wood. The juice is presented in a glass bottle in matte pink. It’s also engraved with a ring and has a magnetic top Booth: Crystal salon P & Q ck one Red Edition for women Company: Coty Prestige Description: The fragrance opens with watermelon and violet leaves with a burst of fruits for a mélange of forbidden exploration, says the company. The notes are composed of warm white amber, patchouli and musk to create a powerful blend of ‘seduction’ Booth: Crystal salon M & N Daisy Eau So Fresh Marc Jacobs Delight Edition Company: Coty Prestige Description: A fruity floral, Daisy Eau So Fresh Delight Edition puts a twist on the original with a rush of blood orange and exotic tiare tahiti, mixed with raspberry. Velvety apricot leaves a lingering impression Booth: Crystal salon M & N

Daisy Marc Jacobs Delight Edition Company: Coty Prestige Description: A luminous bouquet of freshpicked florals, Daisy Delight edition is a vibrant expression of daisy signature. The fragrance features quince flower and iris, brightened with crisp red apple. Sun-ripened woods and musks make up the dry down Booth: Crystal salon M & N

Cedar Essence by Ferrari Company: Perfume Holding Description: A fresh and vibrant perfume for men, is the latest fragrance in the prestigious Ferrari Essence Collection that includes Essence Oud, Silver Essence, Essence Musk and Leather Essence. Each Essence has been created to evoke a different aspect of the iconic Ferrari Gran Turismo spirit www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

133

Beauty Beat: Skincare & Cosmetics Phyto-Lip Twist Company: Sisley Description: A practical make-up tool, even on the move, with a zebra striped body and stunning shades. Its smooth texture glides onto the lips leaving a flash of color

Refined tones Stronger colors, better skincare based on scientific support Royal Program Company: Orlane Description: Three anti-aging treatments to bring skin back to life. These treatments are made for demanding skin types, providing the secret to longevity in Royal Jelly and the extraordinary anti-aging properties of 24-karat gold

Double Wear Stay-inPlace Brow Lift Duo Company: Estée Lauder, Clinique Description: This new, long-wearing brow pencil redefines and emphasizes brows with precision and striking dimension that stays in place up to 12 hours. Available in three neutral brow shades with highquality pigments of Black Brown, Rich Brown and Soft Brown for a naturally defined brow look

Dry Remedy Daily Moisturizing Oil Company: Estée Lauder, Aveda Description: The rich buriti oil ingredient is harvested from the fruit of the Moriche Palm, a tree that flourishes in Brazil’s wettest areas. Organic buriti oil is powerfully hydrating and the key ingredient in this remedy Sisleyouth Company: Sisley Description: Protects and maximizes the skin’s youthful potential by combating the visible effects of natural aging. To ensure that moisture remains at an ideal level, the mixture includes a natural extract derived from wheat sugars, which encourages water to be retained in the stratum corneum and improves the protective function of the skin

B21 Extraordinaire Company: Orlane Description: A product that can reset youth within the cells, and act on the source of aging itself, according to Orlane. This treatment is based on the Orlane laboratories’ active research and on scientific discoveries to create an exclusive reset complex combined with 21 essential amino acids that are essential to beautiful skin at any age

134

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

CC Cream SPF 35 Company: Estée Lauder, Bobbi Brown Description: This cream provides a blend of color correcting coverage and high performance treatment benefits in one easy step for instantly healthy-looking even toned skin

Clarins Group

Clarins’ Double Serum has become the company’s top-selling product in just a few short years

Aiming for a

bigger and better future Clarins builds on a successful 2013 by expanding on several best-sellers and readying a series of exciting new launches

The recent Chinese New Year has figured heavily into Clarins’ first-quarter promotional plans

Clarins is bringing its bold new counter design to DFS Group’s Galleria outlet in Waikiki, Hawaii in 2014

136

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

ith the 2014 IAADFS Duty Free Show of the Americas at hand, Clarins Group is excited to display its wares at a completely independent booth divided into two sections - with the first devoted exclusively to the company’s skincare products and the other to its fragrances. “We are delighted to present all these novelties in our brand new Clarins Group booth,” says Massimiliano Giordano-Don, Group Marketing Director for LATAM and TR Americas of Clarins Group. After an extremely successful launch of Double Serum 30ml in 2013 - the product has become Clarins’ top-selling item worldwide - the company is excited to introduce a new 50ml jumbo size that will be available in the spring all over the Americas. Clarins is also looking to get the word out on its Super Restorative line, which consists of creams designed to be used both during the day and at night (with the former releasing in the spring and the latter in the fall). Giordano-Don says that these launches will be supported by an “impactful trade marketing event” highlighting the Double Serum and all of Clarins’ anti-aging lines. Additionally, the company’s Body, ClarinsMen, and Make-up lines will be part of the key animations set to be played throughout the region in 2014. Clarins’ dedication to the travel retail arena remains as strong as ever, with the company set to bring its new counter design to DFS Group’s Galleria outlet in Waikiki, Hawaii in the coming months. (This is following a successful upgrade at California’s Los Angeles International Airport in 2013.) The redesign is part of the company’s push to highlight its most promising products, including the new Shaping Facial Lift, which

is designed to target Asian women and their specific concerns, says Giordano-Don. In addition to Clarins’ line of skincare products, the company has big plans for its fragrance offshoot, with a particular focus planned for its Azzaro and Thierry Mugler brands. The former’s Azzaro Pour Homme perfume has become one of the top-selling fragrances in Brazil, Clarins is planning a major press event in Sao Paolo designed to reveal the product’s bold new image. Giordano-Don explains, “an impactful media plan has been put together for Azzaro Pour Homme” that will be implemented simultaneously in travel retail and local markets, with the new brand image set to be a strong presence all over the region. Fashion and fragrance brand Thierry Mugler is set to launch the latest addition to its Alien line of perfumes in the coming months. Entitled Alien Eau Extraordinaire, the fragrance has been designed to “begin a new chapter in the story of Alien,” says Giordano-Don, and the product will come packaged in a crystalline bottle inspired by a precious, marquise-cut gemstone. Thierry Mugler’s line of Angel fragrances remains a top priority for 2014, continues Giordano-Don, with Clarins seeking to both highlight the uniqueness of the brand’s iconic pillar and, later in the year, reveal its new visual. The Mugler Source will also be animated throughout the year which will introduce customers to the art of refilling, an innovation in the modern world of perfumery. This is an ecological gesture demonstrating the generosity and avant-garde philosophy of Thierry Mugler, says Giordano-Don. The company, set to appear at booth 1717 at the exhibition, will also be using the annual event to introduce Patricia Abergel, who was recently named the new General Manager of Clarins Group’s Miami office. 

Crabtree & Evelyn

Paving a brand’s expansion Crabtree & Evelyn heads into 2014 with a bold, innovative sense of purpose by

For men, Crabtree & Evelyn offers the West Indian Lime collection containing a cocktail of citrus notes, fresh spices, and woody notes

HIBAH NOOR

or a company established more than 40 years ago, Crabtree & Evelyn has managed to retain and perpetuate its innovative spirit in the decades since its 1972 inception. Crabtree & Evelyn’s recent entry into the travel retail market has been met with great success, and it’s no surprise that the company is looking seriously at expanding into areas outside of its comfort zone - with Latin America and the Caribbean a specific target for the beauty supplier.

Leading the charge in the company’s travel retail expansion in the Americas is a team of executives with decades of experience between them: JuanCarlos Delgado, Managing Director, Latin America and Caribbean; Diego Aleman, Director of Sales; and Catherine Habermann, Sales and Marketing. In addition to handling Crabtree & Evelyn’s entry to travel retail, the trio have been tasked with overlooking the company’s entry to local markets of Latin America including Brazil. The team is busy readying an exciting new look for Crabtree & Evelyn’s travel retail and wholesale points of sale with the specialty-store business accounting for approximately 20% of the company’s sales, says Delgado. And while an innovative layout is designed to highlight all of the

company’s brands, hand therapy remains the most integral part of Crabtree & Evelyn’s lineup and will continue to be at the “forefront in any of our furniture,” explains Delgado. He continues as it relates to wholesale points of sale, “if a customer does not get at first glance that we’re about hand therapy, then we have not done our jobs.” And although Delgado admits that hand therapy will continue to be the focus for Crabtree & Evelyn’s domestic retail operations, the company’s brick-and-mortar locations will emphasize everything from home fragrance to body lotions to poured candles. The company is very excited about the launches of several new products and lines, starting with the already-released Verbena and Lavender de Provence Bath & Body collection. The set, which consists of a spray cologne, a bath and shower gel, a body lotion, a body bar, and hand therapy, has been created with French lemon verbena and lavender essential oils, with the scent also boasting hints of tonka bean, white amber, and cedarwood.

The Verbena and Lavender de Provence Bath & Body collection is created with French lemon verbena and lavender essential oils

138

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

SUBSCRIBE TO ASIA DUTY FREE MAGAZINE

ONE YEAR – 4 ISSUE AND 12 ENEWSLETTERS

Subscribe to Asia Duty Free & Travel Retailing Magazine and its monthly eNewsletter to keep you informed of the latest news. Simply fill out and return this subscription card to the following address, or fax with your credit card details to +1 905-821-2777

TWO YEARS – 8 ISSUES AND 24 ENEWSLETTERS

US$200.00 US$400.00

SUBSCRIPTION FORM

company name

Please fill out this form and fax to 1-905-821-2777 or email to deepa@globalmarketingcom.ca

date

name

Asia Duty Free & Travel Retailing magazine 26 Pearl Street, Mississauga, ON Canada L5M 1X2 Tel: 1-905-821-3344 Fax: 1-905-821-2777 email: deepa@globalmarketingcom.ca

mailing address

city

province/state

country

postal code/zip

(

) area code

(

phone

) area code

❑

SIGN ME UP! I would like to receive a subscription to magazine ❑ One Year US$200.00 ❑ Two Year US$400.00

fax

❑

Enclosed is a cheque or money order made payable to Global Marketing Company Ltd.

❑

Bill me

❑

expiry date

credit card number

signature

date Paym ent in U. S. funds m us t ac c om pany this s ubs c ription c ard.

Crabtree & Evelyn In terms of products new to the market, Crabtree & Evelyn is enthusiastic about the forthcoming release of its English Honey and Peach Blossom collection—which contains, among other things, a moisturizing cream, an all-purpose balm, and body butter. Designed to restore, condition, and transform the look of skin, the English Honey and Peach Blossom collection has been infused with a combination of peach blossom and wild flower honey extract that effectively hydrates dry, parched skin. Finally, the company will be re-launching a trio of long-standing favorites in its bath, body, and grooming collections for men. Formerly called Nomad, Moroccan Myrrh is a distinguished fragrance that combines myrrh with notes of bergamot, petitgrain, black pepper, and cardamom, while Indian sandalwood, previously known as sandalwood, blends spicy cypress, bergamot,

lavender, vetiver, and, of course, sandalwood to conjure a rich, woody scent. The third set in this collection is called West Indian Lime and it contains a cocktail of citrus notes, fresh spices, and woods that’s meant to evoke the atmosphere of the British West Indies. Such initiatives are part of Crabtree & Evelyn’s ongoing efforts to expand its reach in the travel retail sector, Delgado says. The company has recently signed contracts one with a major duty free retailer of the Americas and the other with a leading distributor for in-flight. “We are starting to pave the way at stores in airports in New York, Atlanta, and Mexico,” explains Delgado. With the growing emphasis on in-flight sales and travel retail in general, Crabtree & Evelyn has recently emerged with a whole line of portable products designed specifically for consumers on the go. The company is also looking to make its presence felt in the lucrative cruiseline industry. Noting that Crabtree & Evelyn’s products are a perfect fit for “premium cabins” aboard cruise ships, Delgado says that the company’s various lines can already be found aboard retail stores in the Norwegian Cruise Line and will soon be appearing on Princess Cruises’ fleet of ships. Crabtree & Evelyn will be building on this growing expansion by also moving into other areas of the

travel amenities market, with the company’s small-format products a perfect fit for hotels and business-related arenas. And leveraging that the Crabtree & Evelyn brand is extremely well-known to American consumers, Delgado says that the company is aiming to increase its namerecognition in other parts of the world —with the Latin American local markets. Explaining that Crabtree & Evelyn’s new look, feel and product offer will allow the entry to these new markets “with a more prestigious positioning.” With all of Crabtree & Evelyn’s travel retail plans emerging from a single office in Miami, the company is well on its way towards establishing itself as a power player within a notoriously competitive market. “We do believe we have a very strong team for travel retail as we go forward,” says Delgado, with Crabtree & Evelyn expecting big things from this year’s IAADFS show. The company may be a nascent player in the travel retail field, but it has certainly come a long way in this past year. Delgado estimates that the division will more than double its sales in the year to come and expand dramatically into a variety of new areas. Anchored by product launches and a new retail look, Crabtree & Evelyn is retaining its status as one of the body-andhome-products industry’s most respected and successful brands. 

Crabtree & Evelyn’s core seasoned players: From left: JuanCarlos Delgado, Managing Director, Latin America and Caribbean; Diego Aleman, Director of Sales; and Catherine Habermann, Sales and Marketing The English Honey and Peach Blossom collection is designed to restore, condition, and transform the look of skin

140

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Biotherm, Parbel

MAKING AN IMPACT Biotherm pushes into 2014 with exciting new initiatives

Skin Best targets young women who are starting to be concerned about signs of fatigue, skin texture, and fine lines

ince acquiring Biotherm in 1970, L’Oréal’s luxury products division has grown the brand to become one of the most lucrative purveyors of skincare products in the world. Biotherm’s presence in the travel retail industry has grown in leaps and bounds over the years, and the company is looking to expand its reach in this growing area in 2014, says Renata Holmes, Marketing Director, Biotherm. Biotherm has two key initiatives it’s working on for the Americas travel retail market in 2014, with the first, explains Holmes, an “extension of the existing successful antiaging line, Blue Therapy.” Introduced in 2012, Blue Therapy is a range of products designed to reduce years of accumulated skin damage in just a few short weeks. Biotherm’s latest addition to the Blue Therapy line is Blue Therapy: Serum-in-oil. Designed for use at night, Serum-in-oil combines the brand’s powerful serum with an oil called Ulkenia. Ulkenia is a microalgae oil that was discovered more than 30 years ago and has traditionally been used in nutrition, with the ingredient a perfect match for the cosmetics industry because of its resemblance to the skin’s cellular membranes. Biotherm’s second big push for 2014 revolves around its new face-care line called Skin Best. Says Holmes, Skin Best “targets young women who are starting to be con-

HIBAH NOOR

cerned about signs of fatigue, skin texture, and fine lines.” The product contains a unique combination of a dietary supplement called Spirulina, which energizes the skin, and a powerful antioxidant that protects the epidermis called Astaxanthin. Such initiatives are part of Biotherm’s push to expand its presence in the travel retail market. The company has recognized that traveling consumers want to be able to find what they want as quickly and efficiently as possible, says Holmes. “We addressed this need with development of Biotherm Face Care Geography,” which is a new way of merchandizing that clearly identifies the brand’s bestsellers and communicates the differences between various product lines. The company is additionally looking to expand its assortment of travel exclusive gift sets, because, Biotherm has seen a growing trend of consumers looking for gifts while traveling. Biotherm has also noticed an increased demand for multi-tasking products that combine a variety of skincare effects, which has resulted in the introduction of a new product called Aquasource CC Cream. Aquasource is a beautifying moisturizer that “combines deep-hydration properties with a complexion color-correction effect.” This ensures that the user immediately notices smoother, creamier skin, with the product’s lightweight texture providing a natural-looking finish that stays true throughout the day. In conjunction with the soccer World Cup in Brazil, Biotherm has developed various initiatives promoting its men’s skincare line. The Biotherm Homme brand is the number one men’s skincare brand worldwide and in the Americas travel retail, and is focused on offering simple and efficient solutions for men’s skincare needs, explains Holmes. Finally, Biotherm is planning a special, limited-time promotion on one of its most iconic products, Lait Corporel. The body-milk lotion, which has been on the market for over 30 years, will be offered at a special price at select stores in travel retail. “This will enable us to reach many new consumers through a trial of one of our iconic lines,” concludes Holmes. 

Biotherm’s latest addition to the Blue Therapy line is its Serum-In-Oil

Biotherm’s presence in the travel retail industry has grown in leaps and bounds over the years

142

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

L’Oréal Travel Retail Americas Consumer Division

Dominating the

L’Oréal Paris’ Age Perfect Extraordinary Oil is a face oil that contains anti-aging and antioxidant properties, with the product designed to nourish the skin without leaving a greasy residue

cosmetics

and skincare

industry L’Oréal Travel Retail Americas Consumer Division looks to beat records in 2014 by HIBAH NOOR

i t h w o r l d - r e n ow n e d names like L’Oréal Paris, The Body Shop, Roger et Gallet, Maybelline, and Essie under its purview, L’Oréal Travel Retail Americas Consumer Division has become one of the forerunners in the duty free beauty sector. The company has achieved this by aggressively promoting its various brands, with big launches often accompanied by eye-catching displays and a wide variety of sales. L’Oréal Travel Retail Americas Consumer Division fared especially well in 2013, with all its brands experiencing a market share gain in the region, says the Business unit’s Division Manager Sebastien Levi. Building on 2013’s strong sales, the business unit is readying several promising new products for the coming year. L’Oréal Paris’ Age Perfect Extraordinary Oil is a face oil that contains anti-aging and anti-oxidant properties, with the product designed to nourish the skin without leaving a greasy residue. L’Oréal Paris will also launch an instant skin smoother, Revitalift Magic Blur, that immediately erases the look of lines, wrinkles, and pores. L’Oréal’s Travel Retail Americas Consumer Division is also aiming to increase sales for its Body Shop brand, as the skincare outlet will be introducing Drops of Youth. With no silicones or parabens and an assortment of natural and organic ingredients, Drops of Youth has been designed to soften and revitalize the skin while at the same time enhance surface-skin cell renewal.

Another innovation planned by L’Oréal Travel Retail Americas Consumer Division involves a new product from Roger et Gallet, a well-established brand in Latin America. Roger et Gallet will be introducing a new perfume called Red Ginger, which has been designed to capitalize on the brand’s strong 2013 performance in travel retail in the Americas. With all these launches in the offing, L’Oréal Travel Retail Americas Consumer Division is looking for “new opportunities among duty free operators,” explains Levi. Aside from a focus on animations and impactful merchandising, the company is hoping to achieve this by continuing the successful introduction of categories like hair care and nail maintenance to the duty free arena, and by boosting its customers’ impulse purchase instincts with cash wraps. In terms of demographics, the business unit has its sights set on passengers that are “looking for affordable products in duty free,” says Levi. The company is making a specific effort to court middle-class passengers, as these consumers are willing to find these brands in duty free. In addition to adding a more affordable product like hand creams and gloss onto their planned luxury purchase, these individuals are more likely to be drawn to special promotions available only in the duty free sector—including travel exclusives, gifts with purchase, and products not available in the local market. There’s also been an ongoing attempt to target men in the duty free sector as well, and the company has noticed an increase in brand awareness and sales among men “especially when we have a tower dedicated to men’s products,” says Levi. 

L’Oréal Paris will launch its first instant skin smoother, Revitalift Magic Blur that instantly erases the look of lines, wrinkles, and pores

L’Oréal Travel Retail is aiming to increase sales for its Body Shop brand, as the skincare outlet introduces Drops of Youth

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

143

Tairo International by

Tairo spreads the word HIBAH NOOR

Tairo International hosted last year’s Beauty Advisor Seminar at the The glamorous Ritz-Carlton in Grande Lakes in Orlando, Florida

The busy beauty distributor educates its beauty advisors and rolls out new launches

The biennial Beauty Advisor event marketing event brought together the company’s top buyers and beauty advisors for several days of business and networking activities

airo International, the premium beauty products distributor serving travel retail in Mexico and the Caribbean, hosted its Beauty Advisor Seminar at the The Ritz-Carlton in Grande Lakes in Orlando, Florida last September. The biennial marketing event brings together the company’s top buyers and beauty advisors for several days of business and networking activities. Some 100 were in attendance, according to Robert Bassan, who co-owns the company with his wife Tania. The event was preceded by a six-month special promotion which ran from January 1 to June 31, 2013. The promotion recognized top stores, with attendance at the Orlando event for the individual sales winners. “Obviously not only were they able to have a nice time at Disney World, they were able to stay at the Ritz, and we were able to take advantage of having the top people see the initiatives and review the marketing plan,” says Robert Bassan. Some 60 individual stores were represented, among them the top stores in the region. Planning for the event began in December 2012. Bassan says that the get-together motivates the entire staff. The top sales people themselves are delighted to be there, 144

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

but the rest of the team also derives motivation from their presence. And the company’s ability to hang on to people over the long term really helps. “Most of the faces that you’ll see here have been selling our brands since we started—literally for 17 years,” Bassan says. “There’s incredible longevity. Our market is very unique both in the Caribbean and Mexico. There’s very little turnover at point of sale, and it’s great because these people have been with us all along.” One thing that makes Tairo unique is the attention it pays to constant animation at point of sale, and to training. The latter is conducted in a way that emphasizes fun and entertainment in delivering the brand and business content. “We have lot of strong brands in our portfolio,” Bassan says. “I think it’s important that these brands aren’t just presented in the office on a laptop PowerPoint. I think by coming to this marketing meeting or to the event in Orlando at IAADFS and showing them the TV commercials, the mood videos and the concept behind the fragrances, it becomes more of a holistic idea as to what the brand is trying to convey.” The discounting in the US domestic market has been challenging for the Caribbean market, Bassan says. Other market challenges listed by Bassan

include the increasing presence of online sales, a perceived lack of innovation in the perfumes and cosmetics category and the need to bring more professional beauty brands across to travel retail from the US domestic market. “Many of our partners have started dedicating a good amount of space for this category,” he says. Tairo’s not one for sitting still, however. The company’s Facebook page for beauty advisors has given them a great window to what Tairo is doing in the market, including details on promotional activities. It also provides insight into the activities of competitors. And it’s proven valuable in communicating with suppliers about Tairo’s activities, a task that can be a challenge across so many disparate markets in the region. In addition, Tairo has already opened a few doors in the Caribbean through a strategic engagement with Coty Prestige’s OPI nail polishes. “Sales have been fantastic,” Bassan reports. “It’s an impulse buy—it doesn’t cannibalize perfumes and cosmetics.” During this year’s IAADFS show, Tairo is proud to present fresh fragrances including P&G Prestige’s Escada Born in Paradise, Lacoste Sensuelle and Gucci Guilty Studs and Coty Prestige’s CK One Red and Marc Jacobs Delight. 

Robert Bassan says that the get-together motivates the entire staff and the top sales people from Mexico and the Caribbean Tairo managed to pack in work and play during the Beauty Advisor seminar, treating attendees to entertaining dinners, fun photo shoots and a trip to Magic Kingdom on their last day in Orlando

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

145

Shiseido

A bright future

for a travel retail mainstay Shiseido capitalizes on the success of 2013 by prepping a number of new products

Future Solution LX Superior Radiance Serum contains a revolutionary brightening ingredient designed to add a renewed clarity and radiant glow to the skin

Shiseido’s White Lucent Total Brightening Serum focuses on targeting dark sports and discoloration

146

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

HIBAH NOOR

apanese hair care and cosmetics giant Shiseido is coming off a lucrative 2013 that saw the brand experience growth in the Americas, specifically within the travel retail sector. The company has also managed to expand its presence in a number of vital regions, and Michael Gebrael, Managing Director, Shiseido Travel Retail Americas, credits this success to Shiseido’s willingness to change with the times. “Given the heritage and the type of corporation we are,” he says, “we remain true to our mission and values.” Shiseido has a number of exciting launches planned for 2014, with the company focusing on releases in its skincare and make-up brands. Shiseido skincare is especially going out of its way to launch a number of new products in the coming months, says Gebrael. The company is excited to introduce two new additions to its Future Solution LX anti-aging skincare line. Future Solution LX Total Protective Emulsion taps into the skin’s natural “daytime defense gene” to boost resistance against environmental damage, while Future Solution LX Superior Radiance Serum contains a revolutionary brightening ingredient designed to add a renewed clarity and radiant glow to the skin. With 2014 marking the 10th anniversary of the Shiseido Men line of skincare products, the company is readying the debut of a product designed to reduce visible signs of aging around the eyes. Called Shiseido Men Total Revitalizer Eye, the cream has been specifically made to combat wrinkles, dryness, sagging, and dark circles. Shiseido will also launch the Benefiance WrinkleResist24 Pure Retinol Express Smoothing Eye Mask, which improves aging and smoothes away wrinkles in the eye area in 15 minutes, and White Lucent Total Brightening Serum, a product that targets dark sports and discoloration. Shiseido’s make-up brand has a few innovations up its own sleeve, says Jo-Ann Santiago, Marketing Manager, Shiseido Travel Retail Americas. The company will be adding a new line to its lip collection, Lacquer

Shiseido will launch the Benefiance WrinkleResist24 Pure Retinol Express Smoothing Eye Mask, which improves aging and smoothes away wrinkles in the eye area in 15 minutes

Gloss lip, with the deep sheen and clear color inspired by Japanese lacquer artistry. This is in addition to the brand’s Sheer Eye Zone Corrector designed to erase the look of dark circles and uneven skin tone, and a Face Color Enhancing Trio that achieves a lively impression by manipulating blushing, sculpting, and harmonizing effects. The introduction of these new products is part of Shiseido’s efforts to continue the growth it experienced in the Americas in 2013. The company will support the upcoming duty free launches with animation events at its various points of sale, in addition to the ongoing personalized service by Shiseido’s beauty consultants. “We offer hand massage, touch-up tips, and counter treatments with face and eye masks,” explains Gebrael. The company is also excited to launch several of the other brands contained under its umbrella within the travel retail market, including NARS Cosmetics, Bare Escentuals, and Clé de Peau. Going into the future, Shiseido is focused on increasing its exposure and growth among Asian customers, says Santiago. The company has introduced a line of products that addresses the specific skincare needs of Asian consumers. Entitled Shiseido Revital, the line maintains beautiful skin texture, contour, and tone while offering anti-aging and whitening benefits. Santiago also notes that Shiseido’s beauty consultants in Asiandriven outlets generally speak Japanese and Chinese. Such initiatives are part of Shiseido’s continuing efforts to increase its reach at travel retail locations around the world. The company is first and foremost interested in anticipating and meeting its customers wants and desires, with Gebrael noting that “as a corporation, our customer is and always will be at the center piece of our purpose.” To that end, Shiseido is looking to move farther into territories that it has not traditionally dominated. “We like to play where we feel we have a strong chance of winning,” concludes Gebrael.

Supplier News All that glitters is Fervor Montreal A bright 2014 is in the forecast for Fervor Montreal, a global brand leader in fashionable jewelry that is created with the finest quality materials and workmanship, backed by the company’s exemplary customer service. “Fervor Montreal has witnessed exponential growth,” explains Tiago Oliveira, Sales and Marketing Manager of Fervor Montreal. “With global recovery, buyers are now more confident with their spending on luxury items – this has been evident with more than double in sales for us compared to last year.” The company’s product development team is working at a fast pace to cater to the increased demand in its jewelry products. At the IAADFS trade show, Fervor Montreal will be launching its Mosaique products – an elegant collection of colored glass jewelry. The multi-colored collection of necklaces, bracelets and earrings come in gold, rose or rhodium plating, and will retail at a range of US$40-$100. The company will also present its Duchess collection, a “sophisticated, yet elegant collection in a combination of 925 silver and semi-precious stones.”

Fervor Montreal’s Mosaique collection features colored glass jewelry

ScentStory will be showcasing ‘24’ and ‘Gossip Girl’ fragrances during IAADFS

The company, founded in 2000, has rapidly expanded its growth to include offices in Montreal, Dubai, Los Angeles and Bangkok. It prides itself on producing its fine products at affordable prices for consumers. With these new products debuting, Fervor Montreal anticipates global growth and will continue to rise in 2014. “We anticipate the Americas, along with the Middle East and Asia will bring us the most growth this year,” states Oliveira. Looking ahead at future promotions to assist retailers in delivering products to consumers, Fervor Montreal is working on a platform to connect the two operating segments: duty free/domestic market and e-commerce. All Fervor Montreal products will carry gift vouchers and surprises, making consumers cash in their gift in the newly developed e-commerce platform. “We also have fantastic offers as a free gift with purchase boosts during Valentine’s Day, Mother’s Day and other festive holidays,” explains Oliveira.

ScentStory brings the small screen to life through its fragrances ScentStory has been creating fine fragrances for over a decade now, and has embarked on a project to create a fragrance for the television show ‘24’ starring Kiefer Sutherland. The company had a lifelong dream to be a creator of an original fragrance product, and being fans of the television series, the idea to create a scent based on it was formed. Approaching Fox Television with the idea, a marketing team was formed to head the marketing and design development with one clear goal: to design high quality fragrances that will delight perfume lovers and TV fans. Another brand that ScentStory created is based on the hit television series ‘Gossip Girl ‘after acquiring the licensing rights from Warner Bros. ScentStory will be showcasing these television-themed fragrances at IAADFS show in Orlando. “We’ll be focusing on two brands at the show,” explains Gabriel Chami, General Manager of ScentStory. “‘24’ is a highly creative range of perfectly blended long-lasting fragrances, which last up to 24 hours, and are as thrilling as the television show they are based on. ‘Gossip Girl’ will also be featured, which is for sophisticated young adults, inspired by the characters of the show it is named after.”

148

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

BOUTON Jewellery reveals glimmering bracelets at IAADFS BOUTON is a Sterling Silver Jewellery line that is designed in Britain and owned by Adrian Buckley of Buckley London Jewellery Ltd. Adrian Buckley was recently named ‘Business Big Shot’ in the professional Jeweller Hot 100 Jewellers of 2013. BOUTON offers everything from rings to pendants to bracelets and is coming off a successful holiday season in which it outsold its closest retail competition in the UK, and is looking to enhance its reach significantly in 2014. BOUTON is excited to unveil two new collections at this year’s IAADFS exhibition, alongside Buckley London in booth 835. Katherine Sleipnes, CEO of International Brand Builders, and BOUTON’s Americas distribution agent, explains that the new collections are an important addition to the line that should perform well in our region, given they are unique, trendy and great value for price. Inspired by summer afternoons by the sea, BOUTON’s Riviera collection is highlighted by bracelets created with premium silicone material. Available in a fondant blue-grey hue in addition to classical cream and black, the Riviera bracelets have been adorned with a number of glamorous accents—including simulated stones set into sterling silver with 18 carat gold and rose-gold plating. The bracelets have been designed to be worn together with BOUTON’s Joie collection, and have been designed to “create an elegant layered look and fit seamlessly into the stacking trend. The collection offers an innovative new take on the traditional bracelet, as the silicon, which is much lighter than leather, ensures that the accessory is ideally suited for a number of outdoor occasions,” says Sleipnes. With the Joie collection, BOUTON offers up a sterling-silver bracelet designed to celebrate everything from the beginning of love to the sister-like friendship between women. “The sterling silver interwoven chains and delicate balls are fused together in a selection of gold, rose gold, or cool black rhodium, creating a

glistening effect with the movement of the wrist,” says the company. Designed to symbolize the unbroken bonds that are created and celebrated throughout life, BOUTON’s Joie bracelets, which come equipped with a magnetic clasp, feature the company’s signature simulated diamond pavé stones set onto either a delicate ring or the classic BOUTON button, says Sleipnes. The collection, which has been designed to be worn on all occasions, includes bracelets that are either dainty or chunky, while the necklaces contain a variety of different fusion details. The company will also be using the exhibition to unveil its exclusive 100 Facet BOUTON Cut solitaire set, which comes equipped with a pendant, earring, and ring on silver with rhodium plating. The set features an exclusive BOUTON solitaire cut, which, as a result of the 100-light reflecting facets, has almost twice the sparkle of a regular brilliant-cut diamond. The Joie collection has already shown promising results since its launch last Fall in World Duty Free-operated stores in Mexico and other select doors in Canada and the Caribbean. The company is looking to expand in 2014 and excited to partner with Americas’ buyers to bring these collections to life in their shops.

Two stunning pieces from BOUTON’s Spring/ Summer 2014 BOUTON Riviera collection

Travel Blue offers one-stop-shop for digital accessories with TECH range Travel accessory company Travel Blue is bringing its new TECH by Travel Blue range of digital ‘connect and charge’ accessories to the IAADFS show, booth 901. Said to be the largest and most comprehensive range in the world, TECH by Travel Blue offers travelers a complete range of over 150 electrical/electronic items including world-wide adaptors, power banks, speakers, earphones, headphones, car and wall chargers. The range includes, noise reduction and USB options. Together with the company’s ever growing range of travel accessories, Travel Blue now offers retailers a one-stop-shop for all their needs. “We really can say that Travel Blue is the world’s leading brand for travel accessories and digital items,” says the company’s Director of Travel Retail Jonathan Smith. “The brand is synonymous for ‘Travel in Comfort and Safety’ to the global traveler, with presence in more than 105 countries and strong distribution through

airports worldwide via retailers including: China Duty Free Group, DFS, Dubai Duty Free, Dufry, Heinemann, King Power Bangkok, LS Travel Retail, Sunrise, and many others.” The new TECH by Travel Blue range offers retailers further reason to introduce the brand to airport stores. “The TECH by Travel Blue range is allencompassing, easy to ‘select and buy’ and straightforward, yet at the same time it meets all the demands and standards of the modern day traveler,” says Smith. “We first introduced the collection at TFWA World Exhibition in Cannes last year and were delighted by the reception from retailers. We’re now launching the offer into the Americas and are confident of a similarly positive response.”

TECH by Travel Blue offers travelers a complete range of over 150 electrical/electronic items including world-wide adaptors, power banks, speakers, earphones, headphones, car and wall chargers

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

149

Supplier News

Victorinox launches Chrono Classic XLS at IAADFS 2014 Victorinox has announced the launch of the Chrono Classic XLS watch to duty free and travel retail markets at this year’s IAADFS exhibition in Orlando. The quartz chronograph’s new dial colors for 2014 complement a collection that has been a house bestseller for many years. With its generously sized stainless-steel case (45mm), the Chrono Classic XLS is an assertively masculine design that sits comfortable and elegantly on a man’s wrist. Its balanced proportions and flowing lines give it a very sober look, as do the integrated crown and oval pushbuttons. Indeed, it is the attention to detail that makes the difference. Intricately sculpted, the dial has immaculate finishes on its three levels and diamond counters at 2 o’clock, 6 o’clock and 10 o’clock. The applied numbers and hands are filled with luminescent material for maximum visibility in all conditions. Furthermore, the tachymeter scale is printed on the aluminum bezel. For 2014, the Chrono Classic XLS collection offers new dial colors and five new models: black dial with satin polished stainless-steel bracelet or black organic leather strap; gray silver dial with stainless steel bracelet; midnight blue dial with stainless-steel bracelet; and chocolate dial with brown organic leather strap. The Chrono Classic XLS is powered by the ETA G10.211 quartz movement—a Swiss-made guarantee of quality and reliability that makes this Victorinox Swiss Army classic an ideal “companion for life.”

The new Chrono Classic XLS in midnight blue dial with stainless-steel bracelet

Furla exudes its passion for Italy in Autumn-Winter 2014/15 collection The Furla woman remains the key focus across the brand’s August, September and holiday season releases. Furla’s tour of Italy continues into the winter season with the Main Collection 2014/15. Inspiration is taken from the spirit of beauty, passion and vitality typical of the Italian way of life, combining the traditions of elegance and

The Furla woman remains the key focus across the brand’s August, September and holiday season releases

150

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

art with a love of modernism and innovation. The collection will be shown to buyers at the Duty Free Show of the Americas. The Furla woman remains the key focus. The first August delivery will be a celebration of red in different tones, from sensual Cabernet to Mirto, Gloss and Rose. These combine with the popular Caramello neutral tone and modern, on-trend grays including Nebbia and Mist. As always, classic leathers Ares, Cervo and Nappa feature strongly, alongside inspirational new leathers like Vitello Pop star with its contemporary style and Ring Lizard print, ultra-sophisticated and unique. Winter-inspired colors dominate the September delivery; cool, chic grays in two different tones of Mist and Nebbia combine easily with neutral colors and with a cheerful slash of flashy, ultra bright Nettare yellow. The stillpopular animal print theme returns with a wonderful Giaguaro print, while elevated fur brings an elegance of its own. The final delivery, leading up to the holiday season, brings novelty and magic with metallic tones, light gold and dark lead colors mixing with brights such as Cabernet, Rose and Gloss. Grays Nebbia and Mist still feature, ensuring a perfect balance. New materials such as a metallic python, Vitello Shiny and soft lamb fur emerge here, while the strongest highlight is two special flower prints created exclusively for Furla by Danish artist-florist Nicolai Berg-

man, based in Japan. Designed specifically to celebrate the holiday season, elements of the prints also feature on the new Furla gift bags. As always the collection is divided into Basic, Premium, Iconic, Fashion and Candy themes with a combination of carryover lines and new looks. This season sees generally fewer styles but with a wider range of color and material options. The Basic range focuses on essential design, functionality and use, offering great value bags at a minimal price without compromising on function and fashion. Some lines feature new Furla charms to elevate the brand’s image. Example travel retail prices are $US198 to $348. The Premium segment focuses on ontrend designs combining design, functionality and price positioning. Typical travel retail prices are $US220 to $US548. The Icon line builds Furla’s brand image and value with unique, irreplaceable and timeless pieces which go beyond functionality to becoming desirable items in their own right. Typical travel retail prices are $US278 to $US698. Other releases for the IAADFS exhibition include Furla’s Fashion offer, the company’s highly successful CANDY line and a review of Furla’s small leather goods range with a focus on brand, functionality, high quality and design. Attendees to this year’s Duty Free Show of the Americas can see all of Furla’s new releases for themselves at booth 2223.

Making Friends Since 1834 BLENDED SCOTCH WHISKY Lauderâ&#x20AC;&#x2122;s Scotch Whisky first appeared in 1834. The original blend was developed by the Glasgow merchant Archibald Lauder soon after the distilling of whisky was made legal in 1815 and Lauderâ&#x20AC;&#x2122;s has changed little since it was first produced over 175 years ago in Glasgow, Scotland.

www.macduffint.co.uk

Watch News Geneva Watch Group makes time for new collections Founded in 1974, Geneva Watch Group has become synonymous with top-notch digital and analog watches and clocks. The company has created timepieces for a number of first-class fashion and lifestyle brands, including Tommy Bahama, Freestyle, and Kenneth Cole New York. With its overall travel retail sales up 8% over last year, Geneva Watch Group is expecting more growth from North and South America over the next 12 months. The company is also focused on expanding its presence within the European market. Geneva Watch Group’s latest partnership is with the iconic boat-shoe brand Sperry Top-Sider, with the company launching a line of Sperry fashion and sport watches. The inaugural Sperry Top-Sider watch collection includes a design element meant to echo the brand’s boat-shoe silhouette, in addition to a prominent component that

resembles the dashboard gauge-tech of vintage motor boats. Geneva Watch Group has gone out of its way to respect Sperry’s nautical origins, with one of the timepieces in the collection, the Authentic Original One-Hand Watch, built entirely around a vintage nautical design aesthetic. The company is proud of its association with Sperry Top-Sider, and confident it will raise its profile among younger consumers as the almost 80-year-old shoe brand has experienced a resurgence in popularity over the last several years with the Gen Y and Millennial generation. In addition to the Sperry collection, Geneva Watch Group is excited about the potential afforded by the forthcoming Kenneth Cole New York Diamond Collection. These timepieces will mirror the clean lines and elegant designs of Kenneth Cole’s line of men’s fashions.

Geneva Watch Group joins forces with the iconic boat-shoe brand Sperry Top-Sider

Solar Time brings classic and modern timepieces to IAADFS Solar Time Ltd is proud to present its portfolio of proprietary and licensed brands to build lasting relationships with distributors and retailers in the North and Latin American market visiting IAADFS. Offering flexibility and versatility for retail partners, Solar Time brings to the table a wide range of timepieces and personal accessory products, across various price points.

Brands such as Thomas Earnshaw, Fjord and Cross, currently present on various in-flight programs, are joined by accessory brand Klaus Kobec, pilot inspired watch brand Avi-8 and jewelry brand Carrington. Thomas Earnshaw, Solar Time’s flagship range of premier heritage inspired timepieces and accessories have received great reception via in-flight duty free sales. Beautifully intricate timepiece with skeletonized automatic movements, and preSolar Time’s goal at IAADFS is to build on and develop the company’s ground business, along with the duty free prospects in South and Latin America

cisely finished case and strap work pay tribute to the watch making legacy of one of England’s leading horologist. Also available in duty free outlets, Cross, a brand well-known for its writing instruments presents its range of timepieces and accessories. Items such as cufflinks, money clips and key chains are available in gift sets and individually retailing from US$90. Klaus Kobec watches and jewelry, another one of Solar Time’s proprietary brands, capture today’s trends in shape and color. “We have a range of products listed on in-flight duty free with a variety of airlines around the world,” explains Vishal Tolani, Director of SolarTime Ltd. “We are also presenting Latin American duty free stores with our Cross range of timepieces and accessories.” The goal at IAADFS is to build on and develop the company’s ground business, along with the duty free prospects in South and Latin America. Tolani plans to meet with duty free operators for those particular regions at the upcoming Orlando show. “We are nimble at pursuing new product opportunities and have worked with retailers across the world to develop new and exciting concepts across various product types. We will also be launching jewelry ranges suitable for all duty free channels,” explains Tolani. For more information, please contact: francisco_apostolo@ solartimeltd.com or anirudh@solartimeltd.com

2014

conference

Bulova Corporation

Bulova

partners with

Manchester

United

Just in time for the World Cup, Bulova has partnered with Manchester United and will advertise across all travel retail markets

The leading watch company unveils new timepieces at the IAADFS show by

JEFF MACKAY

Bulova’s Marine Star sport collection will offer a number of exciting introductions at IAADFS

ulova Corporation is proud to announce a partnership with Manchester United, along with releasing several new timepiece products at the IAADFS trade show in Orlando. After a successful 2013, in which sales for Bulova’s products continued to grow at a rate of double digits in the Americas, the company is thankful for all that its partners and distributors do to “make the difference,” says Saul Hernandez, Vice President, Latin America and Global Travel Retail for Bulova Corporation. “With all the new developments at Bulova, 2014 should see geometric growth.” 154

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Just in time for the World Cup, Bulova has partnered with Manchester United and will advertise across all travel retail markets. Its Marine Star sport collection, as well as the Precisionist collection with its precise torsional resonator quartz movement, will offer a number of exciting introductions at IAADFS. “In Marine Star we are bringing a fresh new look, with new materials and ‘made for water’ advertising,” explains Hernandez. “In Precisionist we have a new streamlined sports chronograph sure to break sales records for the third year in a row.” The Marine Star collection features four new chronographs with cases crafted of Bulova’s proprietary Duramic, a light, durable and heat resistant ceramic/nylon composite which is designed for effortless high-performance wear. The new designs include silicone straps, with navy blue, white, sand or dark green accents. The newest Precisionist collection of chronographs features a 47.5mm case, and offers precision timing to 1/1,000 of a second, as well as rotating bezels, tachymeters, screw-back cases and screw-down crowns, with water resistance to 200 metres. The styles include two silicone strap models, one in silver finish and one in rose-gold finish. It also comes in two bracelet models, in a choice of silver or rose-gold finishes. With Bulova partnering with Manchester United FC as Official Timekeeper, the company’s Bulova Accu-Swiss brand will

be introducing a collection of timepieces with the club’s crest, including a numbered, limited edition in 24-karat gold. In addition, “Bulova has a new travel retail team headquartered in Miami, Florida, to focus the company’s resources on doubling our business,” explains Hernandez. “It will do this with a combination of exciting new products, a new look at retail, new retail selling tools, and promotions. The Miami office is so new that it does not yet have a permanent location. We will be announcing its permanent Midtown Miami location soon. It will be staffed by five fulltime employees, all of whom will be solely dedicated to travel retail.” With the launch of the new Miami location, new retailers will be approached in the Americas region with renewed interest, allowing Bulova to directly serve customers that were previously serviced by third-party groups. As a result of retail markets weathering various trade and importation difficulties, Bulova expects duty free markets and sales venues to play a more important role in the coming year. Evidencing Bulova’s regard for the potential of the travel retail market, the company plans to offer some special promotions for its products in 2014, according to Hernandez, “Bulova will extend its product expertise to duty free by bringing in new exclusive offerings that cater specifically to the international traveler.”

GIFTS & ACCESSORIES DESIGNED IN GERMANY.

GUARANTEED MOBILITY

IAADFS

1301+ 1400

Been phoning and surfing all day again? And not found any power while out and about? Now anyone with a STROMKONSERVE plus can quickly recharge their smartphone with a USB connection and theyâ&#x20AC;&#x2DC;re on their way again. Without wasting any time at all. Ideal for trade show or trips, with robust aluminium housing. ... and if it gets a bit late in the evening again, help is at hand with the clever torch function.

LED-Torch

www.troika.org USB socket

Nishi Pearls

Designing a

Nishi Pearls set to break into the mainstream in 2014

brighter future by

HIBAH NOOR

Nishi pearls has worked with an array of award-winning designers that have brought their own unique spin to the company’s various products

amily owned and operated, Nishi Pearls has grown over the years to become an international pearl jewelry brand that boasts offices in Hong Kong, Montreal, Moscow, and Seattle. Cassia Napier, Brand Manager, Nishi Pearls, explains that the company “offers a comprehensive collection of luxurious pearl jewelry” designed to appeal to the chic, modern woman. Noting that pearls are synonymous with natural treasures of the ocean, Napier says that Nishi Pearls’ various collections are adorned with a complete range of Freshwater, South Sea, Akoya, and Tahitian genuine cultured pearls. Since its inception, the company has gone out of its way to forge its own path and separate itself from other companies. “Nishi Pearls puts a fresh twist on a classic gem, using only genuine cultured pearls with long-lasting intrinsic value,” says Napier. To that end, Nishi has continuously worked with an array of awardwinning designers that have brought their own unique spin to the company’s various products.

156

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

One such designer, Philippe Bouasse, earned Nishi Pearls a coveted prize from the Cultured Pearl Association of America’s (CPAA) design contest. Bouasse’s creation, a necklace entitled “Big Wave,” was honored with the Brilliance Award at the International Pearl Design Competition’s 2013-2014 ceremony. According to the CPAA, The Brilliance Award is given to the entry that “best illustrates the spectrum of pearl colors in the most beautiful way.” Nishi Pearls plans to capitalize on that impressive achievement by expanding its reach significantly in 2014. For the first time ever, the company will be participating in the IAADFS annual Duty Free Show of the Americas. “The Nishi Pearls team is thrilled about the opportunity to bring the genuinecultured pearl and our expertise about this beautiful gem produced by nature to the duty free market,” says Napier. The company will be showcasing its various lines and products, with a specific focus on what Napier calls “affordable luxury.” Items within this category would boast trendy designs and exquisite craftsmanship, and would be available at a retail

price ranging from US$50 to $300. Nishi Pearls is also excited to exhibit its “Made with Swarovski” collection, which combines Swarovski gems with the company’s own genuine-cultured pearls. Nishi Pearls’ dedication to quality is reflected in its partnerships with leading professionals in the industry, with the company working alongside experts ranging from “the best pearl farmers to the jewelry counters,” says Napier. Each Nishi Pearls piece is accompanied by a certificate of authenticity from gemologists, which is a testament to Nishi Pearls’ emphasis on quality. 2014 looks to be a breakthrough year for Nishi Pearls, with the company’s forthcoming presence at the IAADFS’ yearly convention sure to increase its international fan base. The recent Brilliance Award is merely the tip of the iceberg in terms of Nishi Pearls’ potential, and it’s clear that this company is heading for bigger and brighter things in the months and years to come. “This is a very exciting year for Nishi Pearls,” says Napier. “Our team is dedicated to sharing these gifts with all corners of the world.” 

The Tastes of Happiness.

Iconic brands. Delicious choices. And new Travel Retail Exclusives such as REESE’S Pieces and REESE’S White Peanut Butter Cups TM

Miniatures. You bring all this and more to your customers with Hershey’s extraordinary portfolio of chocolate and confections.

Visit us at Booth 1315 at the Duty Free Show of the Americas Americas.

HERS HEY’S ® www.hersheystravelretail.com ©The Hershey Company

HERSHEY’S ® KISS ES ®

REESE’S®

ICE BREAKERS®

J OL LY RA N C H E R ®

B R OOKS I DE ®

Sunglass Report

A bright

forecast ahead Sunglass sales are looking to eclipse 2013 sales figures in 2014

JEFF MACKAY

Models from Maui Jim’s Keanu and Waterways collections are perfectly tailored to suit the needs of its Asian consumers

ometimes a song title or lyric can sum up a situation more than anything, and in this case, it’s the Timbuk3 song from way back in 1986, “The Future’s So Bright, I Gotta Wear Shades.” Having seen phenomenal growth in the sunglass business in 2013, several companies have shared that profits have been up in 2013 with manufacturers stating growth at anywhere from doubledigit to an impressive 35% in one case. A bright future indeed… “Marchon is pleased with its performance in 2013, having achieved global sales goals and objectives, citing positive increases in almost all regions. We are poised for another great year, especially in the travel retail sector,” says Claudio Gottardi, CEO. For its foray into 2014, Marchon will debut its G-Star and Liu Jo collections of sunglasses at the IAADFS show. “We’ll also show the latest collections of our main brands during the exhibition, states Erwan LeGuennec, Director of Duty Free for Marchon. “We have opened many new points of sale in 2013 and plan to continue to expand our distribution in 2014.” He shares insight on

the current state of sunglass retail, explaining that there is a good level of exchange and trust with the retailers when it comes to selecting brands and assortments. LeGuennec feels that color will continue to be a very big trend in 2014, used in materials for both frames and lenses. “We use color in our lenses, both in gradient treatments as well as colored mirrored flash lenses.” By constantly collecting market input and supplying the demand of its customers, Marchon exceeds its customers’ expectations by meeting and also setting trends. With market for sunglasses constantly evolving, Marchon creates new ways to manipulate materials, lenses and hardware to maintain an innovative, fresh, product line. Looking ahead to 2014, LeGuennec feels that the Asia Pacific market will continue to be Marchon’s most dynamic market, while adding that the company’s brand portfolio has a good geographical balance which leads him to anticipate a successful year for the company in all markets. The continued use of marketing in all media outlets, including signage at airports and in-flight magazine

OPTICASET TOXIC COLLECTION The 2014 collection of Toxic sunglasses show the company’s commitment to the highest standards of innovation, quality, materials and workmanship. The designs have been strengthening since 1998 when the company first debuted. IAADFS will see the continuation of the line that the manufacturer feels is the perfect crafted collection of sunglasses with style and glamour that can be worn to any occasion. “Toxic offers a wide selection of fashion sunglasses that can be used on an everyday basis, with high quality polarized lenses, perfect shaped frames, and the latest trends in fashion.” (www.opticasetinc.com)

158

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

advertising assist Marchon in its marketing of products to consumers. Opticaset is the sunglass company that experienced a 35% sales increase from 2012 to 2013 – an extremely positive sign of growth in the eyewear market. The Montreal, PQ-based manufacturer, who also distributes lines such as Toxic and Fly sunglasses, has used that growing success to open a new facility in the Mount Royal neighbourhood of Montreal, ensuring fast delivery of products to its customers worldwide. The company will be launching its Toxic 2014 collection of products at the IAADFS show, a “perfect crafted collection of sunglasses with style and glamour to be worn on any occasion,” explains David Ifrah, CEO of Opticaset. He says that the company intends to enhance its growth in the US market, and looks forward to seeing its collection in top optical stores and duty free stores worldwide in the years ahead. Ifrah offers insight into how retailer buying trends have changed recently, stating, “Our customers are seeking innovation in design. Toxic’s collections are always ahead of fashion trends. For this year, we are

Sunlight is a natural resource we run out of once a day. Make good use of it. Maui Jim polarized sunglasses contain three rare earth elements that help you see truer color. Style shown: Maile

For more information, please contact Giles Marks, Director of Global Travel Retail at gmarks@mauijim.com. ÂŠ2014 Maui Jim, Inc.

Sunglass Report

Marchon G-Star lands in 2014 Debuting this March at IAADFS, Marchon’s G-Star Raw product line, created for both men and women, utilizes the company’s superior craftsmanship and brand philosophy of “Just the Product.” Pairing authentic aviator frames with their iconic straight-cut lenses, G-Star eyewear brings innovation to this straight-cut concept. Using exposed screws and industrial stamping of the style code on the outside of the temple, a feel of true construction is evident. Colors and style names are referenced throughout the eyewear collection, coming from the denim-based history of the company’s clothing lines. (www.g-star.com)

focusing on the glamour and elegance that can be worn in all types of events.” Some of the company’s best-selling products in the Americas have been Toxic models, specifically the TX 688 and TX 694 products. “Both models come only in black and are the perfect example of a high fashion sunglass with a modern design that makes you look like a star.” Toxic products deliver quality frames using the finest materials, with a design that enhances customers’ features, according

to Ifrah. “We make sure that the designs and models fit perfectly on the customers’ faces, while using the same colors and styles depending on the latest trends in the market.” He is pleased to announce the company will be developing two new electronic technologies including adjustable tinted sunglasses and glasses with Bluetooth integrated. Another leader in the sunglass market, Maui Jim is also enthusiastic about the company’s double-digit growth in 2013. The company will start off 2014 by showcasing its newly released additions to an existing collection of eyewear. Located in Lahaina, Hawaii, the company is renowned for being a world leader in premium polarized sunglasses, having produced products since 1980. In terms of seeing new developments in the duty free market from Maui Jim, Managing Director Giles Marks explains several changes the company is undergoing, including “The expansion of our ‘Universal Fit’ collection to better serve our Asian consumers, the official release of our ‘pureAIR’ collection – lightness and comfort combined for the ultimate sunglass, combined with our new 2014 marketing campaign to support our customers.” These steps help the company to deliver products to consumers that are focused on benefits and features, as opposed to strictly being a fashion statement. “As a ‘lifestyle’ brand, our best selling products in the Americas include Performance, Sport, Classic styles that are all brought to market utilizing our patented polarizing lens technology,” explains Marks. “Quite frankly, we’re more than just a brand name – customers expect value for their purchase. We’re committed to bringing a full diversified collection to the market. We are constantly introducing unique lens and frame technology.” Marks shares some insight into the evolution of the market, and how Maui Jim is leading through innovation, stating,

Marcolin releases Tom Ford, Diesel and Roberto Cavalli collections Three collections that Marcolin will be showing at the IAADFS show include frames by Tom Ford with bold and provocative designs paired with a range of refined, classic looks. It introduces colors specifically for women, and polarized lenses for men. Diesel’s glasses feature innovative designs and materials, vibrant colors that leverage contrast, and shades expressing the heart and spirit of the collection. Roberto Cavalli’s eyewear designs for the sunglass and eyeglass frames are inspired by the most iconic processes of the Florentine Maison. (www.us.marcolin.com)

160

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

“For our travel retail line, the evolution has been ferocious. This has challenged all brands, including Maui Jim, to push the envelope for cutting edge design and enhanced lens performance.” This type of innovation has lead the company to, for the first time, include television and consumer advertising, as well as advertising in Miami, JFK and Denver airports. Another eyewear company to report growth in 2013 is Marcolin, a company that saw the sale of over 5,500,000 pairs of eyeglasses through 700 models alone in 2012. The company has focused on leveraging brands into retail outlets they already sell into, to increase the size of Marcolin’s brand presence in travel retail outlets. The beginning of 2014 sees the company focus on product lines including Diesel, Kenneth Cole New York, Montblanc, Swarovski and Roberto Cavalli, Timberland and Tom Ford, all focusing on sun-related products. Marcolin will focus its attention on West Coast airports in the Americas, while being strategic about which brands it positions and where, based on its brands’ specific performance overall. A company spokesperson explained that dollar-per-square foot and rotation are big factors that have affected buying trends concerning its products. That is followed by pricing and brand recognition. Marcolin has witnessed a great reception from customers surrounding the re-pricing of the Swarovski brand. From its current collection, three key styles’ prices were dropped by an average of 46%. 

Sourcing Network International

A sharper

future

SNI and Sharper Image work together on Americas travel retail and casino business

SNI revives the Sharper Image brand for the travel and casino retail markets by

HIBAH NOOR

aving just celebrated its 25th anniversary, Sourcing Network International (SNI) has come a long way since siblings Todd and Randall Cohen teamed up with their father Stan to create the company back in 1988. SNI-supplied shops and fashion accessory boutiques, including “Everything’s $10” and “Luxury for Less,” can be found at hundreds of travel and casino outlets, where consumers can purchase a myriad of high-quality brands at affordable prices. 2013 was an especially strong year for SNI, with the company completing a deal with Iconix Brand Group to be the master distributor of the Sharper Image brand to travel retail and casino retail markets. SNI’s years of experience within the industry has uniquely positioned it to successfully transition Sharper Image into these markets. SNI “has the unique ability to provide all of the product and support for anything from a complete branded section to a full store; from planogram to set up,” says Randall Cohen, EVP, SNI. “In essence, we become a ‘one-stop-shop’ to our partners.” SNI is expecting big things from their recent distribution deal, as Cohen notes that Sharper Image “has an 82% brand awareness and is one of the few brands with no difference in awareness based on gender.” Cohen believes that Sharper Image’s product assortment, which contains everything from high-end headphones to iPhone accessories to gadgets of all shapes and sizes, “is perfect for duty free markets,” with the company “initially focusing on store sections, kiosks, and stand-alone displays.” Cohen notes that “the response to date has been nothing short of astonishing.” “While we knew that the brand was hot,” Cohen continues, “the reaction from retailers has blown away our expectations.” Cohen points to the recent media coverage of Sharper Image’s “Betty White’s

Man Cave” campaign along with Megan Fox’s exciting multimedia endorsement as key factors in the brand’s recent resurgence, and notes that SNI is “looking forward to working with duty free retailers individually on programs that will meet their requirements.” The company expects “substantial growth in 2014 with Sharper Image.” Beyond that development, Cohen is excited about the potential of SNI’s fashion accessories brand B-ICONIC. B-ICONIC, which opened its first two outlets in 2012 at Las Vegas’ Excalibur Hotel & Casino and Georgia’s Atlanta Hartsfield-Jackson International Airport, “offers moderately priced women’s and men’s fashion accessories with the look and feel of luxury brands selling at significantly higher prices,” explains Cohen. “Most products fall within the US$10 to US$50 range, making B-ICONIC an affordable destination for all shoppers.” SNI is also expecting big things from their recent deal to distribute Andrew Marc to travel and gaming retail markets. A luxury fashion brand, Andrew Marc, says Cohen, “is positioned in the luxury tier similar to labels such as Cole Haan and Burberry” and offers a wide variety of fashion-related items, including travel bags, sport bags, and small leather accessories. “We believe the duty free customer will welcome the brand with open arms, particularly since the innovative accessories are spot on for the travel retail market.” SNI’s success over the decades has been hard-earned and Cohen credits the company’s endurance to its strong relationships with customers big and small. “For over 25 years,” explains Cohen, “SNI has been providing products and programs with a strong emphasis on service to travel retailers and gaming retail and has developed enduring relationships with our retailer partners.” 

SNI’s fashion accessories brand B-ICONIC opened its first two outlets in 2012 at Las Vegas’ Excalibur Hotel & Casino and Georgia’s Atlanta Hartsfield-Jackson International Airport (pictured)

162

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

SkinSpa 2 treatments. 2Ă&#x2014; better. Better than wax on short hairs. Better than manual exfoliation.

)

Braun GmbH, Dept. IAM-DF, Frankfurter StraĂ&#x;e 145, D-61476 Kronberg, Germany, Tel.: +49 6173 30 2221, E-mail: mellin.k@pg.com, www.braun.com/global

Lindt

Lindt has just launched its first Lindor Limited Edition Tube containing a selection of six flavors

indt is taking an extra sweet approach to this year’s IAADFS Duty Free Show of the Americas. In addition to showcasing its Lindor Limited Editions, the company will also debut its muchanticipated Autumn Global Promo, Swiss Milk Naps and Excellence Minis as part of its expansion in the ‘Sharing Gifting’ segment of travel retail. To create even more buzz around its promotions, a Lindor quiz will offer consumers the chance to win exciting prizes like a camera to record life’s most colorful moments. The Lindor Global Promotions, says Eva-Maria Maute, Marketing Manager of Duty Free, Lindt, exemplify the company’s “unlimited potential in creating emotional, best-selling second placement promotions with its unique seasonal product portfolio.” According to Maute, Lindt is focused on strengthening its foothold in the confectionery and premium chocolate segments. Its recently introduced premium POS concept not only increases brand awareness but also targets specific markets, particularly in the Americas. “For Lindt Duty Free the focus on the Americas region is higher than ever. Our travel retail market share in Latin America is one of our highest for years. In 2014, we

are additionally focusing on exploring North America with a high number of additional POS and Lindt’s best-selling travel retail range,” adds Maute. “As of January, Lindt’s Regional Sales & Market Team has been based in the Americas region in order to be even closer to the company’s highly appreciated trade partners.” All these exciting activities come on the heels of Lindor’s highly successful year in 2013, which saw enormous growth rates all around the world. The company has just launched its first Lindor Limited Edition Tube containing a selection of six flavors. There are two different limited editions for 2014, a pink-colored package for spring featuring the new flavors of Caramel and Stracciatella, and a silver one for autumn, with popular flavors like Milk, Hazelnut, White and Dark, Caramel and Extra Dark 60% Cocoa. Both tubes were designed to make for an eye-catching premium gift for all occasions. As part of the launch, Lindt offers a promotional package comprised of dedicated POS material, an exclusive GWP range and sampling activities that draw consumers’ attention and facilitate sales in shops. High-impact POS materials include a tube display, wall gondola, banner and floor stickers, while the flexible Lindt Promotion Kit allows managers to tailor their

promotional setup – whether dealing with a 4 or 50 square-meter space – precisely to their needs. Managers are also able to utilize a second POS placement, which allows for maximum exposure and effectively sets the stage for sampling. If a second placement is not practical, they are encouraged to implement the use of Lindor ball floor stickers to appeal to customers and lead them directly to shelves. Shelf talkers are then available to communicate product benefits directly to customers. Coupled with the company’s reputation for providing best quality flavor profiles at affordable prices, the POS promo has proven to be a hit among consumers. For the Lindor Spring Flavor Festival, for example, Lindt plays up the theme of Gifting by offering a free Lindor bag with a purchase of any three Lindor tubes. Additional purchases are easily made by combining the bestselling Lindor tubes with new limited edition items. This provides consumers with a mix and match activation through an extended multi-buy option. And now with 2014 well underway, the company is setting high expectations for its Autumn Global Promo, which along with the festive silver Lindor edition, will take top priority at IAADFS. 

Lindt’s much-anticipated Autumn Global Promo will be a focal point during the IAADFS tradeshow

164

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Find out more @NestleITR

I’m travel exclusive... ...perfect for gifting

new Nestlé Swiss Tablets 300g

Confectionery News

Highlights from 2013 include Mars opening a brand new M&Ms shop at Aeropuerto de Santiago de Chile

Mars takes new innovations to the Americas Mars International Travel Retail (MITR) tells Americas Duty Free that innovation, activation and fun are the three key elements behind its ongoing mission to drive confectionery sales growth globally. Indeed, in the Americas specifically, the past year has seen highly successful promotional activity and a brand new M&Ms shop opening at Aeropuerto de Santiago de Chile. 2014 sees more of the same with a fastpaced program of activations and an exciting new range of products being shown to regional buyers at this year’s IAADFS (booth 523). New releases include Celebrations Big Sweet, the new travel retail exclusive 310g Big Sweet designed to represent a giant gift-wrapped chocolate, and Mars Maltesers Teasers, exclusive to travel retail and available in pouch, sharing bag and bucket formats. “These new product innovations and renovations are offered to our customers within the Americas alongside a truly exciting program of activations for 2014,” says Lieke Duijmelings, Marketing Director MITR. “Innovations are vitally important, but equally so is the way we market them to the traveler. There is simply no point having wonderful products sitting on the shelf if no consumers are attracted to them. “In this respect, the Americas region performed very well for us last year with double-digit growth and some incredible results from promotional activity,” she adds. One example of this was the M&Ms Mega Beach Ball campaign in 2013, which saw retailers competing to organize the most unique experience and win a prize. “This year we will have a new range of merchandise products which are the best sellers from around the world,” says Duijmelings. “Our aim for the future is to further accelerate the opportunity with existing locations and we will be announcing the opening of further shops in travel retail very soon.”

Godiva reinforces its authenticity with refined collection reflecting the artistry of Belgian chocolates With a plan to expand Godiva’s presence in Latin America and onboard cruise ships, the company’s Americas travel retail team tells us that it has exciting and compelling innovations to offer this year. New theatre and high-profile promotions will activate these launches, with a new interactivity concept that all travelers will enjoy. This year in Orlando Godiva presents its new collections, “sure to charm and delight our customers worldwide with authentic recipes and unique creations, setting Godiva’s gold standard,” says Diane Buchanan, Travel Retail Regional Manager – Americas/Caribbean at Godiva.

166

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Messages Tout Chocolat is Godiva’s first major launch of the year and can be seen at the 2014 IAADFS exhibition

During the second half of the year, Godiva will celebrate its heritage and craftsmanship with its new Limited Edition: Créations Praliné. This travel retail exclusive is a stylish and refined gift-box, offering 18 exquisite chocolates with four new recipes inspired by Godiva’s signature praliné recipe. Furthermore, at the Godiva booth (823), Buchanan and her team will introduce the first new launch of the year: Messages Tout Chocolat. This travel retail exclusive is offered in a trendy gift box to catch consumers’ eyes. In addition to the above, to bring interactivity to the shop floors, Godiva’s dedicated

visual merchandising team has created enticing theatre elements where travelers will enjoy a unique experience whilst shopping in airports. Finally, to reinforce this travel experience, the much appreciated Godiva Biscuit collection has been entirely redesigned in a sophisticated new livery. Alongside the beautiful collections Godiva will offer throughout the year, the company notes that the Americas team will continue to roll out the Godiva Global Travel Retail concept in the region, with a new opening in Toronto during the first quarter of 2014.

Savour the wave of silky white, milk and dark Belgian Chocolate made from the finest cocoa beans and filled with a creamy hazelnut praliné. Still made in small-batch copper kettles following the original recipe of founders Guy and Lilian, these delicate marbled chocolates are sculptured into distinctive sea shell shapes to bring you to an enhanced chocolate experience, best savoured slowly…

The World’s Favourite Belgian Chocolates

www.guylian.be

Savour the wave of tastes

Duc d’O Chocolaterie

Duc d’O expands

to Americas

Belgian Chocolatier brings sweets to new markets

D Luuk Reijnders, Global Business Director, Duc d’O Chocolaterie

The Duc d’O luxury bag is the company’s best seller in travel retail worldwide

168

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

uc d’O Chocolaterie, the world’s largest producer of flaked chocolate truffles, will debut its products in the Americas at the upcoming IAADFS trade show in Orlando. Asia has traditionally been the best travel retail market for the company, allowing it to develop with key partners for global growth. “For the first time ever, Duc d’O will be present at IAADFS with our own booth,” explains Luuk Reijnders, Global Business Director, Duc d’O. “The Americas travel retail market is huge and demonstrates ample opportunities for growth. We want to maximize the momentum that we have created with our new brand positioning, ‘Untamed Delicacy.’ Enlarging our brand footprint in the Americas is fundamental in our global travel retail strategy.” Duc d’O has initially focused on selling its products in key airports across Europe, Asia and the Middle East, but is now positioning itself for further expansion. “The Duc d’O brand was newly positioned and re-launched at TFWA Cannes in 2013,” continues Reijnders. “In Cannes we received a lot of interest from the travel retail community, as well as from the American operators. This reassured us the potential of the brand for US and South American markets.” Duc d’O will be fine-tuning its distribution route to these new markets with various partners in the coming months. Duc d’O has been creating its chocolate products for 25 years now, becoming one of Belgium’s main producers and exporters, no small task with the country’s history of producing delectable chocolates. The company was founded in 1983 by Mr. Hendrik Verhelst, accomplishing his dream to create his own chocolate products. With a vision of creating high-quality products at affordable prices, the company would see double-digit growth almost every year. Located in Belgium’s Antwerpe region in Kruibeke, the company includes a team of

120 employees that can daily produce 30 tons of chocolate products. Now lead by CEO Eddy Walraevens, the company merged to form GudrunDuc d’O, effectively strengthening its position as the largest producer of flaked truffles worldwide. The company covers the entire globe with 80% of its products exported to over 80 countries worldwide, with Belgium remaining its top priority. At IAADFS, the company will be showcasing its Duc d’O luxury bag, which is described by Reijnders as “our main hero and best seller in the travel retail world.” This product utilizes the company’s vintagestyle packaging for its artisanal products, which has been designed specifically for the modern consumer that looks for authenticity in their products. “Our market research confirms to us that this trend is relevant and upcoming in the American market as well,” explains Reijnders. “We are confident that we can add value to the very competitive confectionery category and drive incremental business for the operators. Duc d’O is a global leader in Belgium flaked truffles and liqueur pralines.” The company plans to create awareness of its chocolates using a strategy combining visibility promotions, product tasting, unique and impactful merchandising materials and shelf presence. Reijnders enthusiasm for growth is shared by Erik de Troyer, Global Sales Manager for Duc d’O. “At TFWA in Cannes, we received strong interest in our brand from major American operators,” he explains. “Based on our international experience we are convinced that American travelers will very much appreciate our authentic products and vintage style positioning. With our first-time presence in Orlando for IAADFS, we underpin our commitment to the Americas travel retail market.” Visit Duc d’O in the main hall at stand 432, at IAADFS. 

Some Believe All Vo d kas A re Created Equal.

Highest Rated Vodka In the World.* Bold Taste. Velvety Smooth Finish. *Beverage Tasting Institute Rating, 2006, 2007, 2009 and 2010.

www.elitbystoli.com – DRINK WITH CARE. STOLICHNAYA ELIT luxury vodka 40% Alc/Vol. Distilled from grain. ©2014 SPIRITS INTERNATIONAL B.V., STOLICHNAYA, STOLICHNAYA ELIT, ELIT, the triangle Logo and/or the bottle shape are ™ and/or

Feature vodka report p.

14_00163_elit_Martini_A4.indd 1

171

178

DANZKA toasts success p.

of its owner.

188

Tito’s makes its mark p.

190

Vodka spring cocktails 10.02.14p.09:44

Vodka Report

SHINING

STAR

The vodka subcategory shows no signs of slowing down in travel retail; Americas Duty Free looks at what suppliers have in store for traveling vodka lover over 2014 by

RYAN WHITE

odka is, without a doubt, the shining star of the spirits category in travel retail. Accessible and mixble in an almost unlimited number of cocktails, vodka continues to be spirits consumers’ go-to choice, and amid talk of oversaturation and high competition, the subcategory in general continues to outperform. Americas Duty Free speaks with six companies, many of whom are representing multiple vodka brands, to see what 2014 holds.

The Grey Goose Le Fizz bar at Toronto’s Pearson International Airport was part of a large-scale film festival activation in September

Bacardi Global Travel Retail recently unveiled two new luxury gift packs for Grey Goose vodka-- Night Vision and the Grey Goose Chiller

FLYING BEYOND In September of last year, as the movie world descended upon Toronto for its annual film festival, Bacardi Global Travel Retail, in cooperation with duty free retailer Nuance, HMSHost and Toronto Pearson Airport, celebrated the arrival of Hollywood’s finest. Bacardi welcomed travelers at Toronto Pearson with a complimentary Grey Goose Le Fizz cocktail—a refreshing mix of Grey Goose vodka, St-Germain elderflower liqueur, freshly squeezed lime juice and soda water—served in an elegant flute. Also in the Arrivals area, an even more spectacular sight awaited travelers as the bar/restaurant operated by HMSHost was transformed into a Grey Goose bar and restaurant. As well as having the opportunity to enjoy a Grey Goose Le Fizz, travelers could sample the same cocktails being enjoyed by movie stars at exclusive festival parties. Joining forces with the Bacardi Canada team, in the on-trade Bacardi Global Travel Retail gave travelers the opportunity to enjoy a complimentary Grey Goose cocktail in one of several bars, restaurants and clubs which are festival hot spots throughout the city. The cocktail gift voucher came with a Grey Goose festival guide featuring a map of the best places in Toronto to enjoy a cocktail during the Festival. Bacardi also raised the profile of Grey Goose in Departures by driving footfall into the Nuance Departures stores as consumers at the Grey Goose Arrivals bar received a card they could present in-store on their way home to receive an exclusive Grey Goose promotion. Leigh Irvine, Regional Director for the Americas, Bacardi Global Travel Retail, said: “We achieved great results in Toronto last year and set a high bar for us to top in 2013, but thanks to an excellent collaborative effort we’ve created a seamless Grey Goose experience for festival-goers.

Americas Duty Free had the opportunity to speak with Irvine at TFWA WE 2013, and he told us that in addition to a very successful film festival activation in Toronto, innovation is a key focus for the Grey Goose brand, and indeed Bacardi as a whole, going forward. “Our position at the moment is one of unlocking total spirits category growth for Bacardi’s Global Travel Retail division,” he said, “and this splits into two main areas of focus: doing what we currently do better and starting to do things that we haven’t traditionally done.” The first step, says Irvine, refers to Bacardi continuing to focus on its dominant role in white spirits—rum, vodka and gin. “We’re looking at how we can bring more growth to those very healthy categories and our very healthy position within those categories,” he explains. With this in mind, Bacardi Global Travel Retail recently unveiled two new luxury gift packs for Grey Goose vodka. The new packs introduce an unprecedented level of quality and visual impact to gifting in the vodka category with their perfect mix of striking designs, luxurious materials and innovation. Night Vision can be seen in the top bars and clubs around the world and is now exclusively available to purchase in travel retail. Perfect for home entertaining, this luxury decanter makes an impact by lighting up the bottle it’s holding using LED lights hidden in its base. Night Vision is presented in a luxury gift box together with a magnum of Grey Goose vodka and is priced at US$160. A limited edition pack with striking visibility on shelf, the luxury Grey Goose Chiller keeps a 1L bottle of Grey Goose wonderfully cold so that it’s ready to serve when arriving at a party or when traveling. The Grey Goose Chiller contains a 1L bottle of Grey Goose and is priced at US$95.

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

171

Vodka Report

EXCITING ALTERNATIVES Spirits distributor Alexander James & Co. has a lot happening in the world of vodka at this year’s IAADFS exhibition in Orlando. The company currently works with Tito’s Handmade Vodka, Van Gogh Vodka, and Crystal Head Vodka in selected travel retail markets, not to mention a number of other non-vodka spirits brands including Morrison Bowmore, Grand Marnier and Camus Cognac, to name but a few. In terms of the vodka that Alexander James & Co. represents, Sales Manager Curran Zinn tells us that Van Gogh— specifically the Double Espresso and Dutch Caramel variants— continues to perform strongly in travel retail. “Even with a saturation of flavors in the market, consumers still want the superpremium, delicious flavors that they have come to expect from Van Gogh,” Zinn says. Of course, travel retail is very much focused on luxury, and in terms of vodka it doesn’t get much more luxurious than Crystal Head. Says Zinn, the brand “is a super-premium vodka inside a very unique bottle shape, which makes it a very strong contender in the vodka segment. It is very ‘giftable’ and consumers also want it on their bar, so it lends itself perfectly to duty free.” In addition to Van Gogh and Crystal Head’s successes, Alexander James & Co. has seen a significant increase in sales both in the US domestic and US duty free markets from Tito’s Handmade Vodka. “The brand has seen significant double-digit growth and is positioned to continue on this trajectory,” says Zinn. Despite having three high-profile vodkas on its roster, Zinn tells us that each is given the attention it duly deserves, and traveling consumers can expect to see promotions spread throughout the year for all three brands. “Each vodka brand we represent is special and we need to make sure the consumer feels that as well—from the passionate people who make the vodka, to the story it tells, to the message the brand wants to convey,” Zinn concludes. “We’ve endeavored to represent super-premium, non-conflicting vodkas that are new and fresh, giving consumers exciting alternatives.”

172

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Travel retail is very much focused on luxury, and in terms of vodka it doesn’t get much more luxurious than Crystal Head

Alexander James & Co. says that the Double Espresso variant of Van Gogh Vodka has been selling well, in addition to Van Gogh’s Dutch Caramel variety (pictured

KEEPING LIFE INTERESTING Jeannine Wise, Marketing Director for Brown-Forman Global Travel Retail, tells Americas Duty Free that Finlandia Vodka has seen good growth in the US, “especially in travel retail and cruise line channels” largely because of the fact that the brand has “great flavors and a unique positioning that enables it to capture the attention of consumers looking for a product that’s adventurous and somewhat out of the ordinary.” Brown-Forman is currently in the process of developing a new communication platform for the brand that should be rolled out in the next few months. Furthermore, particularly relevant to luxuryminded travel retail consumers is Finlandia Platinum, an ultra premium variant made using a unique birch wood and arctic slow chilled process. In addition to the new communication platform, which will be premiered at IAADFS this year, extending listings for Finlandia Platinum will be a concentration this year. We asked Wise about her thoughts on the Americas region and vodka specifically: “We feel the region will continue to grow and Finlandia along with it,” she explains. “The vodka category in general continues to be strong with results trending in the double digits. “As our audience approaches their 30s, they also approach a pivotal moment in their lives,” Wise continues on the topic of Finlandia’s popularity. “While one half remembers the adventures of their youth, the other accepts the responsibility of adulthood. But what unites them is a fear of ‘is this it?’ and a desire to keep life interesting and rich. Finlandia Vodka comes from a place that cherishes this spirit and wants to raise a glass to anyone looking to keep life interesting.” Brown-Forman is currently in the process of developing a new communication platform for the brand that should be rolled out in the next few months

New both inside and out, Laplandia’s bottle and filtration process have both received a makeover, making it purer than ever

WITHOUT AND WITHIN Global Drinks Finland is also focusing on innovation, having recently announced that Laplandia vodka is now a super premium product both inside—with its award winning smoothness—and outside—boasting a new and delicate snow white appearance. Indeed, Laplandia vodka has recently gone through a ravishing transformation, now being even more authentic and pure than ever. The bottle design has been changed to complete snow white with a touch of gold to better convey the high-end appeal of the liquid within. Furthermore, Global Drinks Finland notes that the water filtration process for Laplandia has also been updated, ensuring that the vodka is purer than ever. The new bottle—and of course its contents—are now available to be listed in global travel retail.

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

173

Vodka Report

ADDING TO THE FAMILY Certainly some of the biggest news in vodka over the last few months was Russian Standard Corporation’s acquisition of Central European Distribution Corporation (CEDC). The development adds more than a dozen brands to Russian Standard Corporation’s portfolio and effectively vaults the company to the position of second-largest vodka producer by volume in the world. The consolidated company has significant scale and breadth on a global basis, with over 34 million 9L cases of products sold annually. Russian Standard is also now one of the world’s leading integrated spirits beverage and sparkling wine businesses with distilleries, production facilities and distribution centers spanning Russia, Poland, Hungary and Italy. Green Mark, one of the major vodka brands now under the Russian Standard Corporation umbrella as a result of the acquisition, sold 6.9 million 9L cases in 2012, and Russian Standard’s General Manager Walter Kooijman tells us that the brand represents a major opportunity as it is a leader in Russia’s competitive mainstream segment and the number four vodka in the world by sales volume. “This is a major development for Russian Standard Corporation in becoming the world’s second-largest vodka company,” says Kooijman. “We have the most authentic vodka portfolio of hero vodkas from Poland and Russia, all with their own unique selling points.” Also as a result of the acquisition, Żubrówka, the legendary Polish vodka brand, has transitioned its US distribution to Russian Standard. Żubrówka, which is marketed as ZU in the United States, will compete in the premium flavored vodka segment. In the US market, Green Mark and Żubrówka will benefit from Russian Standard Vodka’s extensive network of distributors and partners, as well as the company’s unique expertise in growing Russian vodka brands globally. Since launching in the United States in 2005, Russian Standard has invested significantly in sales and marketing infrastructure. For seven consecutive years the brand’s US growth has been recognized by the authoritative spirits journal IMPACT, most recently winning the publication’s coveted “Hot Brand” moniker. One of the many advantages of the acquisition, says Kooijman, is the increased solutions that Russian Standard can provide to travel retailers: “All the brands are a perfect complement to Russian Standard Vodka, Russia’s number one premium vodka and a brand that has enjoyed brilliant performance in travel retail, particularly with regard to Russian Standard Platinum and Russian Standard Gold, both of which are experiencing exponential growth. The other brands are key vodka segment leaders in Russia, CIS and Poland with very interesting new potential now in duty free.” With regard to Russian Standard Original, Platinum and Gold in travel retail specifically, Kooijman tells us that the objective moving forward is to leverage the good distribution that Original and Platinum already have as a means of increasing listings for Russian Standard Gold. Of course, this isn’t to say that Gold hasn’t been well received, as is evidenced by the fact that travel retail makes up about 8% of global volumes, with Platinum and Gold representing more than half of that volume. “We’re seeing exponential growth with Gold’s new embossed bottle,” Kooijman explains. Kooijman ended by telling us that the new brands will be showcased at the Rémy Cointreau Global Travel Retail booth at this year’s IAADFS exhibition, and that buyers have already shown intense interest in the portfolio.

174

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

. Zubrówka and Green Mark, two of the many new additions to the Russian Standard portfolio of vodkas

Vodka Report

THE DIFFERENCE PURITY MAKES “After a few years under our belts in travel retail now, we have a pretty good feel for what resonates with our target audience so we have put together a clear plan to ramp up our efforts in those areas,” says Iceberg Vodka’s Director of Finance/Operations Steve Ciccolini. Given that many travelers are already familiar with Iceberg, building brand presence through effective programming, pricing and merchandising will be the focus for 2014. In terms of promotions, the Iceberg team has a variety of tricks up its sleeve, including GWPs, tastings and targeted pricing promotions, but Ciccolini tells us that the prime objective is always to get the consumer to try the liquid itself. “Iceberg Vodka is made with 100% pure iceberg water that has been harvested from 12,000 year old ‘bergs,’” he explains. “The result is the purest tasting vodka on the market and getting that message across has and will continue to be a challenge—thus the time, effort and marketing dollars spent dedicated to encouraging trial of our product.”

While vodka purists will certainly be interested in how Iceberg is produced, the brand has also ensured that it is front and center in the flavored vodka craze with three unique and recently released Icefusion flavored vodkas: Crème Brule, Chocolate Mint and Cucumber. “They have already been well received in our home market of Canada by a number of our liquor board customers and the consumer response has well exceeded our expectations,” says Ciccolini. Iceberg is currently listed with DFA in the northern US border duty free shops and in most of the key southern Canada-US border crossings. The brand is also listed at Montreal, Vancouver, Calgary and Winnipeg airports, where it has experienced solid double-digit year-over-year growth. With an eye toward securing more listings in the Americas this year, Iceberg will be exhibiting at IAADFS at booth 437. 

Iceberg Vodka is made with 100% pure iceberg water that has been harvested from 12,000 year old icebergs As the name suggests, the water used to make Iceberg Vodka is harvested from icebergs

176

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

DANZKA

A toast to success Family-owned German company Waldemar Behn GmbH expands its horizons with DANZKA Vodka acquisition by

DAVID NUSAIR

hough it’s been selling well since its inception in 1989, DANZKA Vodka saw its profile raised considerably with a 2013 purchase acquisition by family-owned Waldemar Behn GmbH. DANZKA Vodka, which is sold in over 50 markets, joins a range of alcoholic beverages that includes Dooley’s and Kleiner Feigling. Says Torben Vedel Andersen, Global Sales Director, Waldemar Behn, “it’s the biggest investment ever in the history of the company, so the idea is certainly to grow the brand.” DANZKA Vodka’s unique packaging generally sets it apart from its competitors, with the brand’s aluminum bottle designed to withstand rough-and-tumble conditions while also keeping its contents chilled. “DANZKA Vodka is without any doubt the best traveling vodka in the world,” explains Andersen. “No one else can beat that with our packaging.” Furthermore, it doesn’t hurt that the liquid in the bottle is high-quality as well. “It is seriously good vodka; fresh, clean, perfectly distilled, and made from all-natural good flavors,” Andersen explains. Noting that DANZKA is a “shining star on a global scale,” Andersen says that Behn “is committed to growth” and that “the company can really put a lot of the focus behind the brand.” To that end, Behn has come up with a huge promotion designed to work with on the incredible popularity of football in Latin America and worldwide. DANZKA Vodka will be offering a one-ofa-kind bottle design that celebrates soccer, with the DANZKA Vodka Football Festival

Edition scheduled to hit South America’s Duty Free shelves in March. Says Andersen, “the promotions and showcasing will peak in April, May and June.” According to Andersen, duty free is going to play a significant role in increasing DANZKA Vodka’s name recognition across the world. He explains: “The current situation for DANZKA Vodka in Central and South America is that we are very strong in duty free. Behn, says Andersen, is now focused on expanding DANZKA’s reach far beyond its well-established territories. Explaining that 2013 was “a good year with double-digit growth,” Andersen says that DANZKA Vodka has “some domestic strongholds like Peru and a few other markets.” Behn is eager to grow the brand in various other markets, with the company specifically hoping that DANZKA Vodka will break through in North America. “In North America, we are selling in Duty Free,” says Andersen, “but we’re not as big as we are in the Spanish- and Portuguese-speaking parts of the Americas.” As for achieving a breakthrough moment in Canada and the United States, Andersen says that the future is bright. Dufry carries DANZKA Vodka in many of their outlets across the USA, and the product has already started to appear in border shops in Ontario. Andersen is confident that DANZKA Vodka will become a top seller in the Americas in the months and years to come. “I believe the region will continue to grow and vodka will grow ahead of the other categories,” he says. 

DANZKA Vodka will be rolling out footballthemed bottles throughout 2014

DANZKA Vodka’s unique packaging ensures that it stands out among its competition

178

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

“I believe the region will continue to grow [for DANZKA] and vodka will grow ahead of the other categories.” TORBEN VEDEL ANDERSEN, GLOBAL SALES DIRECTOR, WALDEMAR BEHN

Russiaâ&#x20AC;&#x2122;s

premium vodka

Vodka News MONARQ Group keeps improving its presence in the Americas Its name inspired by the Monarch butterfly, MONARQ Group has established itself as a one-stop-shop for the distribution and marketing of many leading alcoholic beverages. The company boasts a wide range of top-selling spirits, wines and beers, including Heineken, Bowmore Single Malt Whiskey and Jefferson’s Bourbon. In terms of travel retail plans for 2014, Robert de Monchy, Founder, MONARQ Group, says that the company is looking to maintain its growth in the Caribbean while accelerating its presence in Latin America. MONARQ is additionally seeking to increase its exposure and sales in the United States duty free market, with de Monchy noting that cruise ships are going to be a big priority for the company over the next 12 months. Noting that vodka is a segmented category from both a trade and consumer perspective, de Monchy says that MONARQ has products designed to fit every budget and occasion. The crown jewel of MONARQ’s vodka portfolio is Crystal Head Vodka, which is a premium vodka that’s bottled in a clear glass container in the shape of a human skull. In addition to its Purity Vodka, which is the world’s most awarded premium vodka, Monarq’s stable includes the Organic Prairie Vodka and Zubrowka (also known as Bison Grass Vodka), as well as UV Vodka’s flavor range. Monarq’s status as a top-tier distributor has ensured that its roster of vodkas has remained consistent over time, with sales for most of the company’s offshoots remaining steady or growing on a year-over-year basis. De Monchy especially points to Crystal Head Vodka’s success in Latin America as a benchmark for the company, and says that MONARQ’s presence at this year’s IAADFS Duty Free Show of the Americas has been designed to showcase brands both old and new—including, in terms of the latter, Prairie Organic Vodka’s new Cucumber variant.

180

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Explaining that the company has recently listed Purity Vodka with Panama’s Grupo Wisa, de Monchy says that MONARQ has “recently added listings with London S u p p l y, S h o p p i n g China and Kraudal, with numerous listings on the Uruguay-Brazil border.” It’s clear that MONARQ has barely scratched the surface in terms of fulfilling its potential, which can only mean more variety for vodka fans. “There is a choice for everyone,” de Monchy tells us.

Prairie Vodka and UV Vodka’s Apple variant, two of the vodkas in MONARQ’s spirits portfolio

Please visit us at IAADFS in the Bacchus booth 1336.

Vodka News

Bacchus brings Beluga Vodka to IAADFS after overseas success First produced in 2002, Beluga Vodka has quickly managed to carve out a place for itself in the increasingly competitive vodka market. The spirit, which is distributed by Bacchus out of Miami, is produced at Siberia’s famed Mariinsky Distillery, where the vodka goes through a resting process that lasts between 30 and 90 days. Though very well-known in Europe and the Middle East, Beluga Vodka remains a relatively unknown entity in the Americas, says Tom Browne, MD of Bacchus. However, Beluga has established itself as Russia’s best-selling super premium vodka, which is no small feat in a country that boasts thousands of different vodka brands. Browne believes that the time is right for Beluga to break into the Americas, and says that the brand has already shown promise at its inaugural location in the region, World Duty Free Group’s store in Cancun International Airport. Bacchus is planning a series of promotions to increase Beluga’s brand-name recognition throughout the region in addition to the presence of well trained staff in certain outlets to “explain key knowledge about the brand to the customers,” says Browne. He believes that Beluga stands out among its competitors because of a number of innovative aspects related to its production, including the use of water sourced from a 300-meter-deep artesian well in Siberia and

a malt-wheat spirit that’s fermented without any synthetic additives. Bacchus has big plans for this year’s IAADFS show, says Browne, with the company bringing four Beluga variants to the exhibition: Noble, Transatlantic, Allure and Gold. Additionally, Bacchus will be showing off new innovations designed specifically for the travel retail market, including special leather packages and a bottle adorned with bonus glasses. “We are very excited about the introduction of Beluga Vodka to the duty free markets in the Americas in 2014,” says Browne. “We invite IAADFS attendees to visit us at booth 1336 to learn more about Beluga Vodka.” Beluga Noble is one of four varieties of vodka that Beluga will make available in the Americas travel retail market

Ultimat vodka continues to show growth for brandowner Patrón Ultimat is packaged in a slick, eye-catching cobalt-blue crystal decanter

182

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Owned by Patrón Spirits International, Ultimat Vodka is riding high over the past several years. The brand, which originated in Poland, has posted significant increases in duty-free volume in the Americas, with a large chunk of those sales emerging from cruise lines in the region. Says Greg Cohen, Spokesperson, Patrón Spirits International, Ultimat is “particularly doing well at duty free in several Caribbean islands, including St Maarten.” Patrón is hardly ready to grow complacent, however, with the company continually working to develop impactful promotional opportunities for all its brands. This includes tasting and sampling programs designed to showcase the high quality of Patrón’s various spirits, with customers afforded the opportunity to try the products for themselves—including Ultimat. Cohen believes that Ultimat’s uniqueness sets it apart from its many competitors, with the vodka developed from a one-of-akind combination of wheat, rye, and potato. “It’s an exquisite combination of taste and beauty that vodka fans simply won’t find in any other brand,” says Cohen.

For 2014, Patrón is looking to continue the momentum of stellar sales in the Americas by placing Ultimat in more duty free locations. Cohen says that the brand’s memorable packaging ensures that it stands out among other offerings, with the vodka bottled in a cobalt-blue crystal decanter that’s “skillfully designed and meticulously inspected to ensure its quality.” And although the company isn’t planning to showcase any new vodka items at the IAADFS Duty Free Show of the Americas, Cohen notes that Ultimat will certainly be among the ultra-premium spirits that Patrón will showcase at the exhibition. According to Cohen, however, vodka remains a priority for Patrón Spirits International. Though it’s an extremely competitive field, Cohen notes that vodka remains a favorite among consumers and believes that the category will continue to grow for that exact reason. “We see great potential for this brand,” he concludes.

Vodka News Stolichnaya is one of the top-selling vodka brands on the planet

Stoli Group embarks on a collaboration with the L.A. Gay & Lesbian Center In business since 1901, Stolichnaya is an internationally recognized brand of vodka that boasts well over a dozen different varieties, including Stoli Blueberi, Stoli Chocolate Razberi and Stoli Ohranj. It’s a brand that has steadily grown over the years, due in no small part to the company’s ongoing commitment to important social issues. Stoli Group’s latest such initiative is a partnership with the LA Gay & Lesbian Center, with the collaboration designed to combat inequality by assisting in the development of LGBT leaders around the globe. Stoli will donate US$300,000 to support the Center’s Leadership Learn Act Build (LAB) program, which trains the next generation of LGBT leaders to build strong connections, effectively advocate for equal rights and fight anti-LGBT ballot measures. “We stand with the LGBT community in the fight for equality, and are proud to be working with the LA Gay & Lesbian Center to make our joint vision possible,” says John Esposito, President, Stoli Group USA. 184

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Ladoga Group brings its line of prestigious vodkas to the Americas As one of Russia’s biggest alcohol producers, Ladoga Group has become a large corporation that employs over 1,000 people and comprises a number of enterprises all over Europe. The company, based out of St. Petersburg, Russia, is best known for its Imperial Collection of premium vodka, with the line including products like Imperial Collection Gold, Imperial Collection Golden Snow and Imperial Collection Faberge. The latter has recently been introduced to the travel retail market in the Americas by Ladoga collaborator Prowood Wine and Spirits, which is also responsible for distributing such well-regarded products as Black Mamba Spiced Rum, Tequila Bracero and Arman XO Cognac. With sales growing slowly but steadily over the past several years, Ladoga Group is eager to push for a more aggressive presence in the Americas duty free sector. Says Ruslan Grigoryev, Development Director, Ladoga Group, the company has beefed up its global exposure with appearances “in many famous international and local magazines and online promotions.” The company’s prestige has certainly benefited by its success at a number of international tasting competitions, with the aforementioned Imperial Collection Faberge beverage winning the Double Gold Medal two years in a row at the Beverly Hills International Spirits Awards ceremony. Grigoryev believes that recent growth in the economy will “push up spending on luxury products,” which should prove beneficial to the success of Ladoga’s line of prestige vodkas. This will be especially important for sales of the company’s Imperial Collection Faberge vodka, as the product is often set at a price point far above the typical amount for a spirit of this nature. Anchored by the products’ unique design and high quality, Grigoryev predicts that the Imperial Collection will find a foothold in the market by the mid-point of 2014. With the all-important IAADFS Duty Free Show of the Americas just around the corner, Grigoryev says that Ladoga Group will be presenting their wares alongside Prowood Wine and Spirits’ line of products at booth #1104. Ladoga Group offers a number of different vodkas, including Imperial Collection Gold

The company’s flagship brand is the award-winning Imperial Collection Faberge

Tito’s Handmade Vodka

Served straight

Tito Beveridge, founder and owner of Tito’s Handmade Vodka, with his dog Roscoe

up Tito’s Handmade Vodka has recently secured a number of American border store listings, including International Shoppes, DFA, Nuance, Dufry, America’s Buckaroo, Fairn and Swanson, AMMEX Inc. and Pac Can Travel Retai

After cornering the market in Big Country, Austinbased Tito’s Handmade Vodka sets its sights on the Americas and beyond by

“Tito’s Handmade Vodka is a high quality product at an affordable price. We want you to pay for the quality, not a fancy package. We are American-made and owned.”

JOHN MCDONNELL, MANAGING DIRECTOR – INTERNATIONAL, TITO’S HANDMADE VODKA

188

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

eave it to the Texans to go big or go home. This is exactly what Tito Beveridge, founder and Master Distiller of Tito’s Handmade Vodka, took to heart when he started the company in Austin, Texas. What started out as a hobby for flavoring vodka turned into a passion for Tito. After using old moonshine stills as a guide and creating a homemade pot still, Beveridge and his team have since developed a super premium vodka that the LA Times once described as “exceptionally clean, pure and almost devoid of aromas.” According to John McDonnell, Managing Director – International for Tito’s Handmade Vodka, the distinguishing factor of the company’s vodka is the fact that it’s made entirely from corn mash. It’s also distilled six times in pot stills, gluten-free and handcrafted versus mass-produced. And the fact that it’s microdistilled in an old-fashioned pot still, just like fine single malt scotches and high-end French cognacs, makes it even more unique. “Tito’s Handmade Vodka is a high quality product at an affordable price. We want you to pay for the quality, not a fancy pack-

ACINDY SOSROUTOMO

age. We are American-made and owned,” McDonnell says. With such strong product in place, it’s no wonder the response to the company’s recent launch in the duty free market in the Americas has been so overwhelmingly positive. McDonnell says the feedback was “better than we anticipated in the American border shops and airports”, which eventually led to many new listings including International Shoppes, DFA, Nuance, Dufry, America’s Buckaroo, Fairn and Swanson, AMMEX Inc., and Pac Can Travel Retail. “The Americas will continue to grow as more Americans start to travel,” McDonnell adds. “Our population is growing and Generation X and Ys are more adventurous than the Boomers.” And what of the vodka category itself? Does McDonnell see bright days ahead? Though he admits to seeing some fatigue when it comes to new flavors, “vodka as a category will continue to grow due to the mixability appeal.” Tito’s Handmade Vodka is gearing up for the IAADFS show in Orlando, where it plans to showcase its new gluten-free back label. 

Vodka Spring Cocktails

That’s the

Spirit It’s that time of year again, when duty free takes center stage at the annual IAADFS exhibition. We’re toasting the event with delicious cocktails from this year’s top vodka brands, all of which will keep you extra chilled this spring season.

The Absolut Bellini

Ultimat Espresso Martini

• 1 part Absolut Vodka • 1 part peach purée • Champagne

• • • • •

METHOD To make peach purée, peel and slice peaches and mix in a food processor with simple syrup to taste. Pour vodka and purée into a chilled champagne glass and top with champagne.

1 ½ oz Ultimat Ultra-Premium Vodka ½ oz Patron XO Café coffee liqueur ½ oz Irish Cream ½ shot of espresso A splash of heavy cream

METHOD In a shaker filled with ice, mix vodka, coffee liqueur, Irish Cream, espresso and heavy cream. Shake well and strain into a martini glass. Garnish with three coffee beans.

The Texas Sipper • • • •

Finlandia Cosmo • • • •

2 oz Finlandia Vodka ½ oz Triple Sec A splash of cranberry juice A dash of lime juice

METHOD Shake vodka, Triple Sec and cranberry juice and pour in a martini glass. Top with lime juice and garnish with fresh berries.

190

AMERICAS DUTY FREE & TRAVEL RETAILING

1 ½ oz Tito’s Handmade Vodka ¼ oz St. Germaine elderflower liqueur 2 oz fresh grapefruit juice 1 oz grapefruit soda

METHOD Shake vodka, elderflower liqueur and grapefruit juice over ice. Strain into a glass filled with ice and top with grapefruit soda. Garnish with a single mint leaf.

Proximo Spirits

Three Olives Elvis Presley Coconut Water Flavored Vodka will make its debut at IAADFS 2014 *Should be slightly larger than the other two

spirited

Three Olives Marilyn Monroe Strawberry Vodka was launched in 2013 to rave reviews

Three Olives Naked is another one of the range’s bestselling variants

success Proximo Spirits builds on its growing portfolio with a new Elvis Presley themed vodka offering from Three Olives by

DAVID NUSAIR

ased in New Jersey, Proximo Spirits has grown in leaps and bounds since launching less than a decade ago. The company’s portfolio now includes a number of premium brands and its products have become a staple within duty free outlets all over the world. As a result, Proximo’s continuing efforts to expand its reach in the travel retail market have been met with great success, says Kenneth Chapman, Strategic Account Manager, Proximo Spirits. Following the successful launch of Three Olives Marilyn Monroe™ Strawberry Vodka in 2013, Proximo is readying a new product inspired by the life of Elvis Presley™. Entitled Three Olives® Elvis Presley Coconut Water Flavored Vodka, the alcoholic beverage has been designed to capitalize on Presley’s enduring status as a pop-culture icon and the current coconut-water craze. The flavored vodka drink can be consumed in any number of Hawaiian and Elvis-themed mixed drinks. Says Chapman, Proximo is expecting Three Olives Elvis Presley Coconut Water Vodka, which is set for a March 1 launch date, to sell significantly more than the Marilyn Monroe Strawberry Vodka due to Elvis’ status as “the most collected icon in the world.” And although other coconut water-themed alcoholic drinks have been flooding the market, Chapman believes

192

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

that Proximo’s beverage is a cut above its competitors because it is coconut infused rather than artificially flavored. Continues Matt Wieder, Director of National Accounts, Proximo Spirits, the “fun, innovative” flavors of the Elvis Presley Coconut Water and Marilyn Monroe Strawberry Vodka should continue Three Olives’ growth and momentum in the duty-free arena. Wieder also notes that the Marilyn and Elvis estates have been very supportive of the releases, with Proximo expecting big things from the imminent launch of the Presley beverage. The drink figures prominently in Proximo’s plans to vastly expand its presence in the duty free market, says Chapman. “A lot of people don’t even know how big a portfolio we have,” he notes, and explains that the company boasts a number of popular, wellknown brands under its umbrella, including José Cuervo Tequila, Kraken Black Spiced Rum and 1800 Tequila to name a few. The big priority for Proximo in 2014 is to grow its

brands and distribution in the marketplace, with the company striving to ensure that its customers get “a great deal in travel retail.” In terms of increasing the company’s exposure, Wieder says that Proximo is preparing a number of new point-of-sale programs designed to meet its customers’ needs. Among other initiatives, the company will be offering the Marilyn Monroe and Elvis Presley offerings in collectible packages, while various other Three Olives products, including its 80 proof, unflavored vodka, called simply Three Olives Naked, will be made available in packs geared exclusively towards the duty free market. Noting that the United States and Canada are hot-button duty free locations for Proximo, Wieder says that the company will continue to explore the best ways to further its reach and exposure in those territories. Wieder and Chapman are excited to show off Proximo’s wares at the annual IAAFDS convention, where the company will be holding court at booth #1111. 

William Grant & Sons

Made for

TRAVELERS William Grant & Sons focuses on travel retail exclusive ranges with emphasis on core brands at this year’s IAADFS exhibition by RYAN WHITE

illiam Grant & Sons (WGS) invites all at the Duty Free Show of the Americas this year to toast a record year of success in the Americas during 2013 at stand N100. At this year’s Orlando show, WGS will be focusing on exclusive editions for travel retail, seen as essential in customer engagement within the airport environment, with the new Glenfiddich Cask Collection being the highlight. The booth will feature The Living Cask display, exemplifying how WGS can best display the new Glenfiddich Cask Collection in store. WGS continues to raise the bar in consumer engagement with first class-brand activations for core brands Glenfiddich, The Balvenie and Hendrick’s Gin. All core brands reported growth rates significantly above category in value and volume. Within the Americas region, 2014 will see top-level activations for all three brands across North and South America designed to actively engage, educate, delight and seduce the traveling consumer. “Overall our business in the Americas was very strong in 2013. Through the dynamism of our portfolio, and the strength of our partnerships in the region, William Grant & Sons GTR is looking forward to another excellent performance in 2014,” says Regional Director of North America, Stephen Corrigan.

Committed to travel retail

The focus for The Balvenie Single Malt Scotch Whisky this year is in-store activations promoting the travel retail exclusive Triple Cask range

194

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

The focus for Glenfiddich Single Malt Scotch Whisky is the launch of the new travel retail exclusive Cask Collection range, which launches with Dufry into Brazil, JFK, San Francisco, Los Angeles and throughout Canada starting April 1. “In Rio, we will have our biggest high-profile brand activation in South America to date with the launch of Cask Collection along with its airport dress up. The timing is aligned with the global launch for GTR and falls right before the

World Cup during the month of May,” says WGS Regional Director Jose Castellvi. Exclusive to travel retail, the Glenfiddich Cask Collection has been crafted to offer three distinct flavor profiles, achieved by maturation in a variety of oak casks and finished in specially created Solera vats. Each is designed to appeal to the varied preferences of single malt drinkers. Glenfiddich Select Cask is an elegant whisky with layers of sweetness, spice and hints of citrus, matured in hand-selected aged bourbon, European oak and red wine casks to impart a beautifully soft taste. Glenfiddich Reserve Cask is matured in distinctive Spanish sherry casks used for their mellow and rich flavor characteristics. Deliciously smooth and silky, the whisky is sweet and spicy, with a complex flavor that evolves in the glass. Glenfiddich Vintage Cask is matured in European Oak and American Bourbon casks to impart a smoky, peaty taste that lingers intriguingly with intermingled leafy, floral undertones. It is inspired by the first Glenfiddich spirit that flowed from the stills in 1887, when barley was traditionally malted in kilns at the distillery over furnaces fueled with dried local peat, infusing the whisky with a unique smokiness. Continuing to show its commitment to global travel retail, WGS is also introducing Glenfiddich 25 Year Old as an exclusive variant for the industry. Launching later this year, it will replace Glenfiddich 30 Year Old in travel retail. This expression will be available only in Asian domestic markets, while a Glenfiddich 26 Year Old is being produced for other domestic markets. The message behind Glenfiddich 25 Year Old is one of elegance and luxury, from the paper ribbon tamper-evident seal that gives a hand-applied look and feel to the varnished natural oak stopper with inlaid gold metal disk featuring the Glenfiddich Stag icon, gold screen printed age statement and filigree embellishment.

gift box is made up of three individual 20cl bottles containing Glenfiddich Age of Discovery Madeira Cask Finish, Glenfiddich Age of Discovery Bourbon Cask Reserve and Glenfiddich Age of Discovery Red Wine Cask Finish. This is an ideal gift for the discerning drinker, keen to expand on his/her whisky-tasting adventure.

Three’s company

WGS will coordinate with Dufry Brazil in the new Sao Paulo terminal in May 2014, right before the World Cup arrives, on a new Hendrick’s promotion

The bottle is presented in a beautiful red lined box with a high quality booklet giving product and family stories. Glenfiddich 25 Year Old is made to a classic recipe, matured in American Oak and European Oak Casks for a minimum of 25 years. An invitingly sweet, oaky aroma with hints of lime marmalade and luscious dried fruits, the taste is creamy, velvety smooth and slightly spicy. Also new for buyers in the Americas is the Glenfiddich Age of Discovery Collection Gift Pack, offering global travelers an exclusive chance to experience a range of three pioneering 19 year old whiskies. Celebrating the remarkable pioneering spirit of early adventurers, the beautifully presented

The focus for The Balvenie Single Malt Scotch Whisky this year is in-store activations promoting the travel retail exclusive Triple Cask range, comprising three unique variants—12 year old, 16 year old and 25 year old. Created to offer international travelers the opportunity to discover more from a differentiated range of handcrafted single malt whiskies, the range offers expressions of The Balvenie that have matured in the three most traditional types of cask—firstfill bourbon, refill bourbon and sherry, all in a large wooden vessel known as a marrying tun.

For the curious Outstanding growth for the world’s leading super premium gin continues in travel retail thanks to a program of high profile theatrical promotions and activities that highlight the unique manufacturing process and taste of Hendrick’s. 2014 holds more amazing concepts for activation and WGS says that it looks forward to greater partnerships in order to make consumer engagement come alive. One example is the opportunity with Dufry Brazil in the new Sao Paulo terminal,

which will come to life in May 2014, right before the World Cup arrives. Following the success of the travel retail exclusive Tea Time Martini gift pack, WGS will also be showcasing the new Teatime Pack for 2014.

But wait, there’s more! Of course, WGS has a large stable of popular brands, and the company notes that more innovation will follow in 2014. In the case of Tullamore DEW, for example, WGS reports that the brand maintains momentum in an increasingly competitive Irish whiskey market. The focus for the Americas will be around St. Patrick’s Day as well as bringing the campaign to life in high-profile brand activations in key outlets. For Grant’s Blended Scotch Whisky— now the world’s number three brand in retail value according to IWSR—the focus continues to be premiumization. To support the complete range of Grant’s whiskies, William Grant & Sons continues to install a new range of wall bays at key airports across the globe with a series of high-profile sampling activities. WGS also reports that Sailor Jerry continues to enjoy growth with distribution limited to locations where listings are supported by strong domestic on- and off-trade presence. Both are supported by impactful and entertaining promotions and sampling activity. Finally, WGS notes that it is steadily increasing the number of brands it offers apart from whisky, for example Milagro and Monkey Shoulder. The launch and roll out of these brands is scheduled to start in 2014. 

Exclusive to travel retail, the Glenfiddich Cask Collection has been crafted to offer three distinct flavor profiles, achieved by maturation in a variety of oak casks and finished in specially created Solera vats www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

195

Liqueurs Report

SWEET

The Luxardo family of liqueurs is now working with MONARQ Group given the distributor’s expertise in the world of duty free

SUCCESS

Americas Duty Free looks at the liqueurs subcategory and examines how brands are vying for attention in the competitive travel retail channel RYAN WHITE by

ome mixing is becoming more and more popular with consumers, and in addition to ensuring that you’re stocked up on the basics—a few good bottles of vodka, rum, gin and whisky—liqueurs have also earned their place in home bars as key elements in a diverse number of classic cocktails. Americas Duty Free speaks with a number of liqueur brands to see what’s new in travel retail for 2014.

Liqueurs in Latin America Robert de Monchy, Founder and Managing Director of MONARQ Group, tells Americas Duty Free that IAADFS is an important platform to showcase new brands, references and promotions. This year, among its balanced portfolio across the spirits category, MONARQ will be featuring the increasingly popular Luxardo range of liqueurs. “We are in the process of finalizing a number of new distribution agreements with excellent brands,” de Monchy tells us, “but I can confirm that we are now working with Luxardo, whose range of liqueurs includes the superior quality Amaretto di Saschira and an amazing range of cherrybased products, like Maraschino and Sangue

196

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Morlacco. The Luxardo family actually owns the largest number of special Maraschino cherry trees in the world.” In other MONARQ news related specifically to the world of liqueurs, de Monchy tells Americas Duty Free that Limoncello Di Capri was recently listed with Argentinean operator London Supply. In fact, MONARQ has begun a large-scale tasting initiative for the brand with special frozen sorbet machines throughout South America. “Education is a very important way of ensuring that a brand is top of mind when consumers next enter a duty free store,” he explains.

In terms of what he expects from the travel retail side of MONARQ’s business in 2014, de Monchy is hopeful: “There will be ups and downs, but generally speaking the socio-economic indicators suggest that there will be an upward trend,” he says. With regard to liqueurs specifically, de Monchy notes that given the category’s important place in home bars as a main ingredient for mixing, the future also looks bright: “The liqueur category has always been quite vibrant, with lots of new offerings that certainly represent an opportunity for increased sales in travel retail.”

New look for a classic range German spirits company Waldemar Behn will be introducing a dynamic new design for its Dooley’s Original Toffee Cream Liqueur to its customers in the Americas at IAADFS. The bottles were originally introduced at TFWA WE 2013 and according to the company, the response to the new design for Dooley’s, the most awarded cream liqueur in the world, was overwhelmingly positive. “In Cannes we presented the new closeto-revolutionary design of the Dooley’s family. The reaction was marvelous and the feedback was overwhelming. And we are sure to receive similar feedback when presenting Dooley´s for the first time at IAADFS in Orlando. We are certain that this new design matches the high quality of

the content. Dooley’s Original Toffee Cream Liqueur is a superb blend of Belgian toffee, Dutch cream and vodka,” says Waldemar Behn President Rüdiger Behn. Dooley´s continues to add to its awardwinning reputation, with the Cathay Pacific Hong Kong International Wine & Spirit Competition honoring the Original Toffee Cream Liqueur variant with a Gold Medal in October and the 2013 Liqueurs Masters bestowing a Gold Medal in the cream segment in November. The Cathay Pacific committee highlighted the outstanding taste and uniqueness that is considered the benchmark in its category. Good news for liqueur lovers is that the Dooley’s portfolio is also expanding. Behn

has introduced its latest seasonal flavor, Dooley’s Winter Chocolate, which is already a big seller in the Northern European market where it was tested this year. Dooley’s Winter Chocolate joins another seasonal flavor that has proven very popular, Dooley´s Tropic Summer. “Dooley’s Winter Chocolate was a positive surprise, not just due to the design, but most importantly because of the contents. Winter Chocolate is already testing positively at the border shops on the Danish-German border where we have had reorders,” Behn notes. Dooley’s plans on bringing the seasonal flavors to the Americas travel retail scene this year given their strong performance in other markets.

The newly redesigned Dooley’s Toffee Cream Liqueur range will be exhibited at this year’s IAADFS exhibition, along with a new seasonal surprise from the brand

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

197

Liqueurs Report

South Africa’s most famous export Marius Fouche, Managing Director of Travel Retail/Duty Free at Amarula brandowner Distell tells Americas Duty Free that the company’s focus in 2014 will be to “continue to expand support for Amarula Cream” in Latin America. Arguably one of South Africa’s most famous exports, the brand—celebrating its 25th anniversary this year—has proven very appealing across a range of Latin American markets. “Our plan is to maintain the strong momentum already achieved,” notes Fouche. Of course, new variants and special packaging go a long way toward maintaining momentum in travel retail, and Distell has both planned for Amarula this year. “We’ll be introducing Amarula Gold from the second quarter,” says Fouche. The new variant is described as a pure, golden, non-cream spirit that goes to the very essence of the exotic African marula taste with a very special and unique character. Like Amarula Cream, it is also made from hand-harvested marula fruit that is fermented into a marula wine and then double-distilled and aged in oak for 24 months. Fouche says that “it really is a whole new taste experience with an alluring hint of spice.”

In North America, the focus will remain on Amarula Cream given strong sales over the past year. Distell has developed a special two-pack of 1-liter bottles for sale aboard Starboard cruise ships. “Well-designed and easy to carry, it has proved very successful with travelers and we expect growth to continue at double-digit levels,” Fouche says. Education is also important to Distell when it comes to the Amarula brand. As such, the company will continue to run tasting initiatives in Latin America, with Fouche telling us that sampling is one of the most effective ways of converting newcomers on the spot. Along with the tastings, Distell tends to amplify merchandising and promotional offers, and in related news the company will be working closely with Dufry at its new Sao Paolo stores in the lead-up to the FIFA World Cup. At this year’s IAADFS exhibition, attendees can see Amarula Cream and Amarula Gold for themselves at booth 1105. Whisky fans will also find something to enjoy, with the company exhibiting single malt and Scotch brands from the Burn Stewart Distillers portfolio, which includes Bunnahabhain single malts and a new Black Bottle Whisky blend in a revamped black bottle that hearkens back to the brand’s roots.

The new Amarula Cream two-pack (right), available on Starboard cruises, and Amarula Gold, a new pure, golden, non-cream spirit that goes to the very essence of the exotic African marula taste

198

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

This is gold, darling! Stansfeld Scott has announced the rollout of Chila ‘Orchata in the Caribbean duty free channel. Chila ‘Orchata takes the popular beverage Horchata and delivers a rumbased liqueur with an extra twist. Tr a d i t i o n a l l y horchata is made with chufas (also known as tigernuts) and originates from Valencia, Spain. Legend has it that the name “Horchata” is linked to a time when James I the Conqueror, King of Aragon, exclaimed “Aixo es or xata!”— Chila ‘Orchata’s popularity be partially attributed or “This is gold, can to its versatility; Chila is darling!”—up on perfect on the rocks and sampling the sweet also delicious in cocktails milky beverage. Horchata has several non-alcoholic adaptations across Latin American with varying ingredients, flavors and recipes. Almonds, sesame seeds, rice, barley and milk are all considered delicious substitutes for the traditional chufas. Chila ‘Orchata is a unique blend of Virgin Islands rum, real dairy cream and a sprinkle of exotic cinnamon and offers a value alternative to Horchata offerings. Horchata-based liqueurs are outselling many of their rivals in the US and are responsible for over a quarter of total liqueur growth, says Stansfeld Scott. Chila ‘Orchata has another unique selling point—its exotic cinnamon flavor. Over 50% of total liqueur category growth has come from cinnamonflavored spirits and Chila ‘Orchata is a part of this hot trend. Dawn Lambert, Portfolio Director of Stansfeld Scott Inc, added: “Chila ‘Orchata’s popularity can be partially attributed to its versatility. The fact that Chila is perfect on the rocks and also delicious in cocktails makes it a perfect complement to our portfolio.” For 2014, says Lambert, Chila will continue to be placed in new markets throughout the Caribbean.

Rhuby is currently ironing out the details of a Breast Cancer awareness program for October 2014 with a major inflight retailer, although no details can yet be released

Drambuie 15 is described as a connoisseur expression of Drambuie, drawn from the company’s finest selection of 15 year old Speyside malts

If you like Scotch…

New kid on the block Rhuby is an all-natural rhubarb liqueur that is relatively new on the travel retail scene in the Americas. Ylva Binder, Founder and Owner of Rhuby, tells us that in addition to being a shoe-in for capturing the oft underserved female travel retail liquor consumer, the deliciously pink liqueur is part of a very worthy cause. “We run a charity called ‘Pink Your Drink,’” she explains. “It is a charity aimed at supporting women in the industry while simultaneously raising awareness and money towards breast cancer. One in four women are affected by the disease, and assisting and supporting research is something that I personally have an interest in.” Binder tells us that Rhuby is currently ironing out the details of a Breast Cancer awareness program for October 2014 with a major inflight retailer, although no details can yet be released. TFWA WE was Binder’s—and Rhuby’s—first introduction to duty free and she feels that the uniqueness of her liqueur will be its key to success in the channel.

“The real point of difference with Rhuby is the overt and open target towards a sophisticated and elegant female consumer,” Binder explains. “Most alcoholic beverages are aimed at men. I have worked in the industry for many years and I’ve often felt there was nothing I would feel proud ordering at the bar—something which was overtly feminine.” In addition to the inflight talks currently ongoing, Binder is in negotiations with two other travel retailers in the Americas to eventually list Rhuby. It’s early days for the brand, but clearly interest is high on the part of buyers. “For the moment we’re continuing to focus on Rhuby and on the Pink Your Drink initiative,” Binder says. “Right now it’s about ensuring Rhuby gets the foothold necessary from which it can grow; I have a very straight and narrow focus this early on in the brand’s development. Rhuby has only been around for two years, and we need to learn to walk before we rush into new adventures.”

Drambuie’s focus in 2014 will be on Drambuie 15, the latest variant in the Drambuie range designed to appeal to discerning malt whisky drinkers. Indeed, Drambuie 15 is described as a connoisseur expression of Drambuie, drawn from the company’s finest selection of 15 year old Speyside malts. Selected for their soft, complex fragrance and flavor, the rare Speyside malts ideally complement and balance the herbs and spicy aromas of Drambuie’s famed secret recipe. Given the decidedly rare ingredients in Drambuie 15, Will Birkin, Regional Manager, Global Travel India, Middle East, Africa and Asia, tells us that tastings and education are of prime importance to the variant’s success in travel retail. “In January we ran a visibility and sampling promotion with DFA in JFK, which is the second of our major promotions in the key North American airports,” says Birkin. “The key point of difference is the liquid. Liqueurs are essentially a category better termed ‘all other’ in that on the whole the liquids are mostly different. We are the only predominantly Scotch whisky-based liquid in liqueurs.” Birkin’s opinion on the continued growth of the liqueurs subcategory in duty free is that it will be largely determined by the degree to which the cruise channel bounces back. “Airport sales will remain robust with the liqueurs category largely running in line with total liquor,” he explains. Nonetheless, Drambuie 15 certainly has a unique selling point among its competitors, ensuring that interest in the variant will continue to be high. “Drambuie 15 is completely unique and a brand many Scotch drinkers are now beginning to adopt post trial,” Birkin explains. “If you like Scotch chances are you will like Drambuie 15 .” 

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

199

Grand Marnier

Grand Marnier goes global New offerings reinvigorate the classic liqueur and ensure its place on the home bars of traveling consumers in the Americas and across the globe

rand Marnier is truly one of the global leaders in the traditional liqueur category in Americas travel retail, but the company is always striving for new ways to grow in terms of better visibility, competitive pricing and compelling activations. “We want to develop our super-premium offering through the cuvees Louis Alexander and Quintessence,” explains Anne-Claire Delamarre, Regional Director Duty Free and Latin America, Grand Marnier. The company’s unique blend of cognac allows the creation of a vertical range of cuvees with cognacs aged longer. Delamarre believes that this range of cuvees and specifically the newly redesigned Louis Alexander is a perfect fit for Americas travel retail, answering two main operator challenges for the company: premiumization and differentiation. Grand Marnier will be offering a wide range of promotions in 2014, depending on the individual requirements of the operator and its clientele, including tastings, GWPs and price-off promotions. “In Cancun, we

ran a very successful promotion last winter aligning our creative with the Cancun destination beach/vacation atmosphere,” states Delamarre. The brand has strong consumer awareness, and its customers already know it as a premium orange liqueur offering. At the upcoming IAADFS show in Orlando, Grand Marnier will showcase its new travel retail product, the cuvee Louis Alexander. This new product was developed as a tribute to the creator of Grand Marnier liqueur Louis-Alexandre Marnier Lapostolle, who was known for adding cognac to his Grand Marnier. “The cuvee Louis Alexander contains more cognac and is aged longer than the classic Grand Marnier liqueur, which results in a superb expression offering bolder and intense cognac tasting notes with a long finish enhanced by flavors of candied oranges,” explains Delamarre. This product will be launched in travel retail before being extended to the rest of the world. Grand Marnier already has 100% distribution in the travel retail market in North America, but has identified opportunities

(from left) Grand Marnier’s original bottle, the 100 Cuvee du Centenaire and Quintessence cuvee liqueurs that will be available at IAADFS 2014

200

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

for distribution on some borders and will work towards solidifying these in the coming year. Delamarre feels this region will continue to grow along with international travel and the travel retail sector. “The liqueur sector is more established in North America, and therefore less likely to see huge leaps in growth over the short term. However, there are still opportunities for growth for the category from usage as cocktails become more and more popular.” A new travel retail communication campaign was started by the company in September 2013, which aims to win over a new target audience of Asians and Russians who aren’t overly familiar with the brand. The initiative also aims to refresh brand recognition with Americans and Europeans. This direction was taken to emphasize Grand Marnier’s French origins while showcasing its exclusive blend of fine cognacs. It was first presented in France at Charles de Gaulle Airport and is now extending to the rest of the world. With a renewed push to reinvigorate brand loyalty worldwide, Grand Marnier is reminding its customers that its products provide a sophisticated tasting experience, whether on the rocks or in a cocktail. “For example, in a Grand Margarita, Grand Marnier adds flavors and smoothness to the traditional cocktail,” explains Delamarre. “We ran tests and found out that most people prefer a Margarita made with a Grand Marnier than a Margarita made with a triple sec.” 

Rémy Cointreau

From the ground

Rémy Martin launches Cellar Master’s Selection, a new exclusive travel retail range of cognacs

hen Rémy Cointreau decided to launch its new travel retail exclusive Rémy Martin Cellar Master’s Selection, a new duty free line of premium cognacs that celebrates the aromatic diversity of the Domaine de Merpins, home of the aging cellars for Rémy Martin’s eaux-de-vie, the company started right from the cellar where the cognac is aged. Rémy Cointreau identified two cellars, cellars 16 and 28, which have characteristics that allow for the creation of two cognacs with specific flavor profiles—Rémy Martin Prime Cellar Selection Cellar No. 16 and Rémy Martin Reserve Cellar Selection Cellar No. 28. The cognac from Cellar 16 will replace Rémy’s current VSOP and the Cellar 28’s will replace the company’s XO. Cellar 16 is above ground and has upper tiers. The location of Cellar 16 and its upper tiers will allow the new casks to be exposed to hot summer temperatures. This helps to accelerate the ageing of the cognac to produce a more full bodied spirit with hints of brown sugar, apple pie and intense vanilla notes, François Van Aal, Area Director – Americas at Rémy Cointreau, told Americas Duty Free.

Cellar 28, on the other hand, is underground. The cellar’s location allows the cognac aging in old casks to be kept at a more constant temperature and humidity. As a result, this will produce a silkier taste reminiscent of candied fruits. The new line was a response to demands from Rémy Cointreau’s travel retail partners and is indicative of the company’s commitment to the duty free market. Van Aal says the move is a big step for the company, but it has already received a positive reaction from travel retail operators. He is confident it will likewise be well received by consumers. “We’re not coming out with a new range and increasing the price by 25%,” he said. “It’s the same brand, same bottle, same price—a little bit more intense and silkier taste, but we believe 90% of the consumers will follow us on this journey; and we believe we can recruit new customers to the brand, which will lead to a growth in demand overall.” Importantly, consumers will still recognize the products given that they have many of the same subtle design cues as the VSOP and XO products; the same Remy Martin DNA. “We’ve done everything possible to have the consumer recognize the brand by having the same iconic frosted black VSOP bottle and the same iconic sun-shaped XO bottle,” he added. “So just by retaining these design aspects, people understand what the product is. Also important is the fact that the new range is going to have the same retail price as the current range.”

Rémy Martin Prime Cellar Selection Cellar No. 16 is a cognac with full bodied spirit with hints of brown sugar, apple pie and intense vanilla notes

“We have strived to provide two exclusive, unique products for today’s travel retail cognac drinkers who are well informed and keenly understand the history and creation process of the drinks they consume.” FRANCOIS VAN AAL, AREA DIRECTOR – AMERICAS, RÉMY COINTREAU

With its new Cellar Master Selection line, Rémy Cointreau is able to offer a win-win situation for travel retail operators, because they are no longer competing against domestic retailers on product selection. It is also a win for consumers, who will receive an entirely new product with the Rémy Martin quality and craftsmanship that they have come to know that is not available in their home markets. The products will be launched in the Americas on April 1 of this year, then being released to Europe and Asia during the same period next year given the fact that the cellar master can only produce limited quantity cases of the new range this year. Van Aal ended our conversation by stressing that Rémy Martin Cellar Master’s Selection is designed to be a new and different experience for cognac connoisseurs in travel retail. “They are neither better nor less enjoyable,” he explains. “Nor are they younger or older; they are simply unique. We have strived to provide two exclusive, unique products for today’s travel retail cognac drinkers who are well informed and keenly understand the history and creation process of the drinks they consume.”  Rémy Martin Reserve Cellar Selection Cellar No. 28 is described as a cognac that offers up a silky taste reminiscent of candied fruits

202

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Please visit us at booth 400 A during the 2014 IAADFS exhibition in Orlando

Brown-Forman

Woodford Reserve and Jack Daniel’s are two brands that are leading the way in Brown-Forman’s North American Whiskey Initiative in global travel retail

It’s all in the

BARREL Brown-Forman Travel Retail adds wood to its North American Whiskey initiative as Master Distiller Chris Morris offers barrel tutorials at IAADFS by RYAN WHITE

Brown-Forman Global Travel Retail began its North American Whiskey Initiative a few years ago to call attention to the company’s unparalleled history in the development of American whiskies. Indeed, the company’s founding brand, Old Forester, in 1870 became the first whiskey bottled in the United States, and Brown-Forman currently stands as the major player in the global travel retail North American Whiskey category, led by Jack Daniel’s and Woodford Reserve. The Brown-Forman portfolio of North American Whiskies will be featured nightly in the Club of the Americas with an emphasis on cocktail classics. “We’re really excited about North American whiskies for a number of reasons,” Jim Perry, Managing Director of Brown-Forman Travel Retail, tells Americas Duty Free. “We see huge growth potential for the category in global travel retail and the North American Whiskey Initiative is really about ensuring that Brown-Forman spearheads that growth. With brands like Jack Daniel’s, Woodford Reserve, Old Forester and Collingwood to name but a few, we expect to continue to lead this exciting push forward.” Indeed, Brown-Forman certainly knows a thing or two about whiskey: “We are the oldest spirits company in the US,” Chris Morris tells us. “We were founded in 1870 as an American whiskey company. Our founding brand was Old Forrester—the first bottle of bourbon in the US. “We’ve had the longest held licenses to make whiskey, bourbon and Canadian whiskey in the US, and we are the only whiskey company in the world that makes our own barrels,” he continues. “Furthermore, the barrels used for each whiskey in the family are different, so consumers can visually CHRIS MORRIS, MASTER DISTILLER, BROWN-FORMAN see the difference between a Jack Daniels and Woodford Reserve, for example. What we’re really trying to do is start a dialogue on flavor. There is a lot of education that is involved, but I think it’s really starting to resonate with consumers.” Brown-Forman invites attendees to be part of the dialogue by participating in Chris Morris’ tutorials at stand 1409 during the IAADFS exhibition. 

uick, what’s the most important contributor to the overall quality of whiskey? If you said the barrel you would be joining the growing ranks of aficionados who loudly tout the often overlooked contribution that wood plays in the making of a fine whiskey. “My take is that the barrel is responsible for 100% of the color and the overwhelming majority of the taste of American whiskies. Really good American whiskies simply wouldn’t be the same if it weren’t for wood, specifically American White Oak,” explains Chris Morris, Brown-Forman’s Master Distiller and spirits historian. The vital role that wood and the barrel plays in the whiskeymaking process will be one of the areas of focus for Brown-Forman Travel Retail at the IAADFS Show in Orlando this March; the latest entry in their ongoing North American Whiskey Initiative. Master Distiller Chris Morris will be offering daily tutorials on whiskey barrels at 12:00 noon, Monday through Wednesday (March 10 – 12). The tutorials will include a discussion of the wood used in barrel making in the United States (American White Oak, by US law), the various toasting and charring methods and a sampling of new whiskies during various stages of maturation. Attendance at the tutorials will be on a first-come basis and the session will last approximately an hour.

“What we’re really trying to do is start a dialogue on flavor. There is a lot of education that is involved, but I think it’s really starting to resonate with consumers.”

204

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Haleybrooke International

Shine bright

like a diamond Haleybrooke gets set to unveil Russian Diamond Vodka and other lavish spirits at the annual IAADFS show

iquor distributor Haleybrooke International will be adding some sparkle to the upcoming International Association of Airport Duty Free Stores show as it gets set to launch the spirit that recently took gold at the esteemed 2013 San Francisco World Spirits competition, Russian Diamond Vodka. “Our big launch at IAADFS is Russian Diamond Vodka, which is genuine Russian vodka produced at the Rodnik Distillery outside of Moscow, one of the oldest in Russia, using water from the Mytishchi springs used for making vodka since the Russia of Tsars,” says Patrick Nilson, President of Haleybrooke International. “The bottle itself is beautiful, tall and slim, with diamondthemed shoulders and a long neck, and the label is velvet with metallic lettering.”

Louis Royer cognac, represented by Haleybrooke International in travel retail markets worldwide, has been awarded many prestigious awards in its 160-year history

Bottega Nero is a chocolate cream liqueur from Italy, which Haleybrooke International will launch at the upcoming IAADFS show.

206

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Travelers at Canadian border store Importations Guay cannot miss Patrón Tequila’s high-profile signage

Haleybrooke will also raise the curtain on Bottega Nero, a chocolate cream liqueur from Italy, just right for chocolate lovers. Haleybrooke has built a strong portfolio of quality spirits through a number of distribution partnerships and is a key player in the duty free market. Nilson says the company will spotlight other key brands at the annual trade show, including Freixenet, Bottega, Louis Royer cognac, Don Q rum and Paul Sapin wines. This year marks Haleybrooke’s 14th year at IAADFS, being held March 9-12 in Orlando. “IAADFS is a great show for us,” says Nilson, calling the exhibition an opportune time to meet with the top travel retail operators from North, Central and South America, as well as the Caribbean. “We get to see so many of our customers in less than a week,” he explains. “Of course we like to

visit them in their home markets as well but it would take months to go and see everyone that comes to our booth during the show.” Special promotions over the past few months have boosted the company’s profile, he says: “In North America we have been promoting Louis Royer with a backpack, which has been very popular and we will continue through 2014.” Nilson says 2013 saw the company quite active in Canada, especially with Patrón Tequila, whose grand displays give the brands “great visibility at the border stores as well as at Vancouver Airport.” Overall, Haleybrooke International reports substantial growth for its products in the Americas duty free market. Patron is up 34% in Canadian duty free stores and Bottega brands are also on the upswing. In the US, Louis Royer cognac upped its profile in 2013 with several new listings, and Freixenet Cava for Spain is expanding, with a significant boost from cruise lines and the diplomat business. Sales of Chabot Armagnac are also delivering healthy numbers, even with Armagnac being a smaller category in duty free. Nilson says Paul Sapin wines, in unique, unbreakable multi-layer PET bottles, have been reviewed favorably by Haleybrooke customers, who say they are perfect for the traveling consumer given that the bottles are a third lighter than glass. Haleybrooke also recently signed on with Destileria Serralles, a rum producer in Ponce, Puerto Rico. Nilson noted that consumers will no doubt find a new favorite in Don Q’s Gran Añejo rum, presented in a sleek bottle and gift box that will retail for US$55. Attendees to this year’s IAADFS exhibition can learn more about Don Q, and indeed the entire Haleybrooke portfolio, by visiting booth 207. 

Russian Diamond Vodka is genuine Russian vodka produced at the Rodnik Distillery outside of Moscow, one of the oldest in Russia

Botran Rum While other rums are traditionally fermented for up to 36 hours, Botran rums ferment for five full days.

Botran’s distillery in the mountains of Quetzaltenango, Guatemala is where the company produces rums made from virgin sugar cane honey.

An international brand

Botran continues its expansion into new markets on the back of brand values that include tradition, craftsmanship and authenticity

ometimes the most successful companies are the ones that keep it in the family. Take Botran aged rums, for example, which has been producing high quality rums for over 60 years. Founded by five brothers who emigrated from Spain to Guatemala, the company has since grown to become one of Central America’s biggest success stories, with Guatemala, Panama and Colombia leading market growth in the region. As a brand “built on authenticity,” it’s only fitting that Botran’s foothold is strongest in its home market. But despite its long family history and healthy domestic sales, it’s still considered a small brand in terms of global expansion, which the company only ventured into three years ago. According to Frank Quiñones, Managing Director, International Business for Industrias Licoreras de Guatemala (ILG), creator of Botran Aged

Rums, this slow and steady growth is not without good reason. “We are still in the building phase with our existing customers, and until we feel that we are doing the best job possible with Botran, we really don’t want to expand too far,” he said. “For us, doing the best job possible means that all staff members are fully educated on Botran so that they, in turn, feel comfortable educating their customers. Once we feel an account has all the tools it needs to succeed, we then move onto another.”

The Botran difference The buzz around Botran’s family of rums has been steadily building in travel retail thanks to the brand’s impeccable reputation and world-class products, namely Botran Reserva Blanca, Botran Reserva and Botran Solera 1893. Indeed, Botran was named Best

CINDY SOSROUTOMO

Distillery of the Year in 2013 by Congreso Mundial del Ron (The World Congress of Rum), which certainly speaks to the quality of liquid inside the bottles. Its unique method of rum production combines both European traditions (like Spain’s unique Solera aging system) and local distillation techniques passed down from the Mayans. Botran is also one of the only rum producers in the world to grow its own sugar cane, from which “virgin honey” is extracted and later distilled. “Most commercial rums are made from molasses, which is the somewhat burnt after-product of creating sugar. Virgin honey, on the other hand, gives a beautiful depth and richness of flavor,” Quiñones says. “Botran is completely vertically integrated, owning everything from the sugar cane fields to the aging facility, which allows us to control quality at every step.”

Coming to the Americas Botran’s “three family members” include Botran Reserva Blanca, Botran Reserva, and Botran Solera 1893.

With a new focus on travel retail, Botran continues to make inroads by increasing its presence in major cities. In the US, it first focused its efforts in such destinations as New York, Miami, Atlanta, Chicago and Los Angeles, followed by an expansion into duty free, most notably in Miami and New York. According to Quiñones, though economies are still weakened by recession, the US economy is still the biggest in the world and premium categories, including dark rum, are forecast to grow. “The US has discerning, well-informed, curious customers and the culture of travel is deeply embedded. In turn, the Americas duty free industry is very engaged and focused on success,” he notes. “We do feel that the Americas will continue to expand. In fact, we are betting on it.” 

www.fireballwhisky.com PLEASE DRINK FIREBALL RESPONSIBLY BEBA FIREBALL CON RESPONSABILIDAD Please visit us at IAADFS at the Stansfeld Scott Stand #201 and Chase International Stand #1111 WHISKY WITH NATURAL CINNAMON FLAVOR, 33% ALC/VOL (66 PROOF), IMPORTED FROM CANADA BY SAZERAC CO., FRANKFORT, KY

Heineken

GETTING CRAFTY IN DUTY

Going into 2014, Heineken is looking for unique concepts—such as their “Beers of the World” displays—that will strengthen their brand throughout South America.

FREE H Heineken has big things planned for 2014, including the release of a new craft beer and a continued emphasis in global duty free on the popular Heineken brand

The introduction of Radler (beer and lemonade mix) variants of brands such as Amstel (pictured) and Fosters will be a concentration for Heineken in 2014

210

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

eineken’s reputation as one of the largest and most reliable brewers in the world has been hard-earned, and the company has no interest in resting on its laurels as it goes into 2014. Officially in 193 countries, Heineken has become a global brand that continues to grow and expand with each passing year. The company’s reach is now far beyond that of local pubs or liquor stores, with the Heineken brand now a prominent player across a myriad of markets. Explains Sean McNaughten, Manager, Global Duty Free and Travel Retail, “we’ve got five main channels that we’re focusing on; that is, airlines, cruise lines, ferries and military. And our latest focus, which is border retail.” With the recent craft beer craze showing no signs of fading, Heineken is looking to expand their reach in this niche market. To that end, the company will be introducing a New Zealand brand that’s been in existence for almost 150 years. “It’s called Monteith’s and it was started in 1868,” explains McNaughten, “so it’s actually a craft beer with true heritage.” Monteith’s carries almost two dozen different varieties and Heineken has an eye toward launching six in duty free stores, with, says McNaughten, “a view of maybe in the future bringing in seasonal beers and offering more choice.” Heineken is also excited about the possibilities afforded by the Radler style of beer, with this unique product, which is a mixture of beer and lemon juice, growing in popularity significantly over the last few years. Radler has already been met with tremendous success in Europe and Africa, and Heineken is, says McNaughten, “developing it as a beer style and taking it to the Americas.” The company will accomplish this by

using local brands to launch the drink, with Heineken subsidiary Sagres being used to introduce Radler to the Portuguese market, for example. Going into 2014, Heineken is looking for unique concepts that will strengthen their brand throughout South America. One such innovation is the company’s “Beers of the World” displays that have already been installed in five Uruguay-based duty free shops. The fixtures, which provide vendors with colorful options for displaying Heineken’s various products and brands, have been such a hit that another three are scheduled to be unveiled in the coming months. Heineken’s top priority for the new year is South America’s cruise ship market, because, explains McNaughten, “we know how many new ships are going to be launched” and “we know how much opportunity there will be.” The company is, as such, actively exploring new ways to get their products to vacationing consumers—with the introduction of Radler (beer and lemonade mix) variants of brands, including Amstel and Fosters, plus the emergence of various craft beers playing a key role in Heineken’s 2014 strategy. Heineken’s growth in the 21st century looks to continue in the months and years ahead, and McNaughten says that the company is especially enthusiastic about an “exciting new secondary packaging that really jumps out at you on the shelf.” McNaughten concluded by telling us that he believes Heineken has a leg up over “competitor brewers who don’t have a single brand that they can really put all their effort behind. They have to pick and choose and go by region. “We’re single-minded about Heineken globally,” he says. 

Diageo GTME

“The richness of travel” Diageo brings two travel retail exclusive Johnnie Walker variants and a decadent Baileys variant to the IAADFS exhibition in Orlando by RYAN WHITE

iageo GTME is heading to this year’s IAADFS exhibition with, as per usual, a stable of strong new releases—this time across two very popular brands. From a delectable new Baileys variant to two duty free exclusive Johnnie Walker offerings, travelers are sure to have a number of new choices this year when shopping at their favorite duty free stores.

Baileys

Two icons meet

Baileys, the brand that brought about an innovation in Irish whiskey with cream, recently launched their newest innovation in travel retail outlets: Baileys Chocolat Luxe. Travel retail is among the first markets globally to launch Baileys Chocolat Luxe, leading the way in bringing this world-class fusion of luxurious Belgian chocolate, Irish whiskey and cream to shoppers. The blend has taken over three years to craft, resulting in a rich molten chocolate drink experience that brings together neverbefore paired favorites into a single decadent treat. Indeed, Baileys Chocolat Luxe delivers an authentic chocolate experience—from the “snap” of the first piece right through to the rich cocoa aftertaste. Steve White, Global Marketing Director of Diageo Global Travel and Middle East, says: “The Diageo GTME team is thrilled to be among the first to bring Baileys Chocolat Luxe to shoppers, highlighting global travel’s importance in launching new products to consumers.”

For travelers looking for something very high-end, Johnnie Walker Blue Label and Alfred Dunhill, two iconic British luxury houses, have joined forces to create a Johnnie Walker Blue Label and Alfred Dunhill travel retail exclusive gift pack. The gift pack forms part of a limited edition collection inspired by the pioneering spirit of John Walker and Alfred Dunhill and their journeys from Britain to the four corners of the world. To celebrate the launch of this travel retail exclusive gift pack, Johnnie Walker Blue Label and Alfred Dunhill pop-ups have been installed in some of the world’s busiest airports to showcase the beautifully crafted pack and offer samples to travelers. “With the Johnnie Walker Blue Label limited edition travel retail exclusive gift pack designed by Alfred Dunhill, two British icons celebrate a shared journey towards achieving the extraordinary,” says Steve White. “It is therefore fitting that a travel retail exclusive gift pack has been created for global travelers to enjoy on their own great journeys.”

A significant development in drinks alchemy, Baileys Chocolat Luxe combines luxurious ingredients which include Madagascan vanilla and over 30 grams of real Belgian chocolate per bottle

To celebrate the launch of this travel retail exclusive gift pack, Johnnie Walker Blue Label and Alfred Dunhill pop-ups have been installed in some of the world’s busiest airports

212

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

The third of three Finally, for collectors, Diageo will also be featuring The Royal Route at IAADFS, the jewel in the crown of its new and exclusive range, the Johnnie Walker Explorers’ Club Collection. The completed line-up of blends is supported by both promotional and permanent store displays, as well as dedicated experiential pop-up clubs in the world’s leading airports. This is underpinned by a significant advertising campaign in, and also outside of, the travel retail channel. The Royal Route is inspired by the majestic history and the sights of the royal trading route, famed for bringing the luxuries of the world to the hands of Kings. “The Johnnie Walker Explorers’ Club Collection - The Royal Route is indeed fit for kings,” explains Steve White. “It is the pinnacle and culmination of the series and with it we are celebrating the richness of travel and exploration today,” he continues. “As a trusted companion to adventure, we are certain it will inspire new and bold journeys in today’s world travelers.”  The Royal Route is inspired by the majestic history and the sights of the royal trading route, famed for bringing the luxuries of the world to the hands of Kings

Liquor News

Pyrat Rum’s XO Reserve is just one variant in the Pyrat range of rums owned by Patrón Spirits International

Pryat Rum increases sales by 31% in global duty free Last year was a phenomenal year for Patrón Spirits International, owners of Pyrat Rum, with sales in the duty free market increasing 31% worldwide. “Consumers appreciate and enjoy this high-quality, ultra-premium spirit, and clearly retailers are starting to recognize the potential of this unique luxury brand,” stated Greg Cohen, Spokesperson for Patrón Spirits International. Pyrat Rums are renowned for their rich amber color and complex taste and aroma of oak wood, vanilla, orange and sugarcane. The rums are smooth, gentle on the palette and not heavy or harsh. The brand is produced in the Caribbean, an ideal climate for some of its key ingreThe wooden presentation case for Camus’ 1983 Fins Bois reflects the care and attention to detail that the distillers used in producing the vintage within

dients, including sugarcane. Many of the rums are aged using a combination individually selected French Limousin and specially toasted American oak barrels, which helps to produce rich and smooth flavor complexities not found in many other rums. The company handcrafts their ultrapremium Pyrat Cask 1623 and Pyrat XO Reserve rum, which take their name from the old English spelling of “pirate,” and the variants are blended and handbottled in the Caribbean. Production of Pyrat Rum follows unique and traditional methods for aging, resulting

in an elegant and distinctive ultrapremium spirit. The company offers cocktail recipes and more information about the product line on its website at www.pyratrum.com.

Camus Rarissimes Range debuts 1983 vintage Fin Bois Cognac Camus, the world’s largest independent and family-owned cognac house, has presented a new design for its Rarissimes range of products, including the newly released 1983 Fins Bois Cognac. Using high-quality materials, pure-lined packaging and timeless style, Camus wanted to reflect its iconic brand identity as it celebrates its 150th anniversary. The 1983 Fin Bois Cognac comes in a wooden presentation case which features a copper and oak finish, in a refined tribute to nature along with the craftsmen who make the spirit. Highlighting the contemporary character of the brand and the company’s rich history, the Fins Bois’ style and design are gracefully discreet, allowing for the antique gold robe, dressed with amber tints of rare cognac, in an edition run of only 990 bottles. This vintage comes from a year of heavy hailstorms, followed by a very hot summer. The 1983 harvest was distilled the year of the 120th anniversary of the House of Camus. The company’s expertise, partnered with the passage of time, has combined to reveal the harmony of the Fins Bois with its notes of fruit, vanilla and spice. It features a nose that is open and complex, combining nutmeg aromas with orange zest and sweet spice mixed in, backed with subtle hints of undergrowth. The palate is balanced, rounded and dense, with a velvety-smooth finish. The Camus’ Rarissimes collection comes from one of the few cognac houses that offer distinct vintages, giving connoisseurs the opportunity to acquire bottles of an extraordinary quality that guarantee an exceptional tasting experience. The cognacs in this collection are selected to mark a special vintage, vineyard or event, and the Rarissimes range’s “seal of rarity” distinguishes them as special cognacs. As the name suggests, all Rarissimes products are available in limited editions, and celebrate the aromatic alchemy of the cognac within.

214

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Fraternity Spirits World extends portfolio at Orlando trade show To launch 2014, Fraternity Spirits World will be highlighting its recently introduced rum— Marqués de Cuba Habanero—at its booth at the Duty Free Show of the Americas. The rum is steeped in history, with its origins being traced back to the 1700’s. When Spanish ships were arriving in the New World colonies in 1700 loaded with products from Spain, one of the most popular products was sweet wine that was stored in barrels, which were later emptied after use. These empty barrels would then be used to distill alcohol, being filled with Chinguirito, which is rum that was produced in Mexico. The barrels were then shipped back to Spain. The rum would age in the sweet wine barrels during the trip back to Spain, while also absorbing wood flavors and aromas, giving it special characteristics. It would become a very popular rum back in Spain, which local producers saw as a threat to the sales of their existEl Ron Prohibido, Marqués de Cuba Habanero, the latest rum release from Fraternity Spirits World

ing products. Consequently, the King of Spain prohibited the production of this rum in the New World. Chinguirito was also known as Habanero, because the last stop on the way back to Spain from the New World was Habana, Cuba. Another Fraternity Spirits product that will debut in Orlando is 99,000 Hours, a special commemorative edition premium tequila aged in single Kentucky oak barrels for 18 months and double-distilled in the traditional Corralejo Charente method of using copper and column stills. This premium tequila is presented in a rounded carafe-style bottle designed to drink either on the rocks in cocktails or neat. “Sales of tequila in the Americas are growing above the average for spirits generally, according to the latest Nielsen reports,” stated Raffaele Berardi, Managing Director for Fraternity Spirits. “We are certainly seeing that trend reflected in our own business and are continuing to experience very encouraging results for the Tequilera Corralejo portfolio in domestic and travel markets.”

MacDuff International brings Islay Mist, Grand Macnish and Lauder’s to IAADFS Show MacDuff International will showcase its historical Scotch whisky brands Islay Mist, Grand Macnish and Lauder’s at the IAADFS Duty Free Show of the Americas in March for the first time in the company’s history. MacDuff has a history of exhibiting at TFWA shows in Cannes and Singapore, but this is the first time the company will be attending IAADFS. Domestic and travel retail markets across North and South America will have all three brands made available to them. Highlights of the line that will be seen at the show include recent additions to the ranges such as Islay Mist Peated Reserve and Lauder’s Queen Mary spirits. Created by second-generation Master Blender Gilmour Burnett, Islay Mist Peated Reserve remains faithful to almost 100 years of tradition of Islay Mist, while maintaining the brand’s world-recognized, signature balance between Islay malt and softer mainland whiskies with an added smoky kick. It is presented in a premium bottle previously only used for Islay Mist 12 Year Old and Islay Mist 17 Year Old, featuring the 1,000 year-old Great Seal of Islay embossed on the neck.

Lauder’s Scotch whisky was originally created in 1834 at the Royal Lochnagar Vaults in Glasgow, Scotland, making it one of the oldest blended scotch whiskies in existence. A select number of aged malt and grain whiskies are chosen by Burnett to create Lauder’s Queen Mary, combining to form a smooth but full-bodied blend with hints of sherry. Lauder’s Queen Mary celebrates Scotland and Glasgow’s engineering past, when Archibald Lauder began selling his whiskies in 19th century Glasgow, when the city was the engineering capital of the world.

Islay Mist Peated Reserve from MacDuff debuts in Orlando in March 2014.

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

215

Liquor News

Sauza 901 Tequila takes back the night with Justin Timberlake Sauza has announced the formation of a long-term co-branded partnership with Justin Timberlake, one of the world’s most popular music icons. Effective immediately, Beam Global (manufacturer of Sauza) is partnering with Timberlake to launch Sauza 901, a super smooth, triple-distilled 100% agave tequila named for the “time of night when the night gets interesting” according to Sauza, as well as being the telephone area code for Timberlake’s hometown of Memphis, TN. After visiting Jalisco, Mexico on a personal trip, the tequila heartland of the world, Timberlake’s interest was piqued and a love of the product developed. He was inspired by the passion and craftsmanship of fine tequila that he wanted to bring that

same passion and craftsmanship to his fans through a personally designed brand. He created 901 as a premium bottle of super-premium tequila, and after several years of sharing it with his fans as his own personal brand, he turned to Beam Global as the owners of one of the largest tequila houses in Mexico – Casa Sauza – as a way to reach fans worldwide. Sauza 901 tequila is ready to launch in the United States marketplace in 2014, and the company is excited to bring this new product to market. The brand will be backed by a robust digital and social campaign, with Timberlake boasting a Twitter following of over 30 million people. His upcoming “20/20 Experience” concert tour will help in bringing the brand to his fans worldwide.

House of Lanson launches Extra Age Brut champagne Based in Reims, France, the House of Lanson has been producing Champagne since 1760. Its newest release, Extra Age Brut, is a blend of Chardonnay (40%) and Pinot Noir (60%) from selected “grand cru” and “premier cru” vineyards married into one new product. Lanson has chosen to use non-malolactic fermentation in its aging process, a choice which preserves the purity and freshness of the fruit and requires superior expertise to bring the wines to a perfect state of maturity. The company has followed this process for its entire history, using the strategy to its advantage in producing world-class Champagne. The company received recognition from Queen Victoria in 1900, in the form of a Royal Warrant as official supplier to the Court of England, a distinction Lanson has maintained for over 100 years. Prepared by Jean-Paul Gandon, a winemaker for House of Lanson since 1986, Extra Age Brut marks the 250th anniversary of the company and has an extra period of aging. It matures for over five years to bring the wine to its ultimate expression. Extra Age Brut has a vibrant straw yellow color with fine bubbles. Notes of yellow and dried fruit combine with fragrances of honey, biscuit and sweet spices to develop a powerful and complex aromatic palette. Lanson is distributed and managed by Stansfeld Scott Inc. in the Caribbean, a company with offices in both Florida and Barbados to serve their customers’ needs. Their knowledge and understanding of the cultural mix and diversity of the region has allowed them to work with more than 100 independent distribution companies in more than 33 countries. 216

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Extra Age Brut champagne from House of Lanson marks the 250th anniversary of the company

WEBB sees profits double in 2013 World Equity Brand Builders (WEBB) is a leading distributor and marketer of premium wines and spirits across the Caribbean, duty free, cruise lines and the Americas at large. The company works with such brands as The Macallan, The Famous Grouse, Highland Park, Cutty Sark, Brugal, Armand de Brignac, Luc Belaire, Tito’s Handmade Vodka, Mionetto, Licor 43 and Blanton’s Bourbon. Given the high-profile brands WEBB works with and their knowledge of the spirits business, it’s no surprise that business doubled in the Caribbean region last year. To further grow their business, the company has added two new brands to its portfolio: Disaronno and Tia Maria, which will be marketed and distributed by WEBB in the Caribbean, on cruise lines and in North America duty free. WEBB recently partnered with The Edrington Group to open new offices in Brickell, Miami. The opening marks the commitment of both companies to achieve growth in the region. The offices will serve as business hubs for the companies, as well as being used as a training facility for brand ambassadors, distributors and sales teams across the region. Some new company appointments include Anette Mourier as Marketing Manager for key duty free accounts and Sandy Welch as Trade Marketing Manager. Mourier comes from Seagrams in London, while Welch comes from Pernod Ricard. The company will be showcasing their full portfolio of products, including premium wines and spirits, at this year’s IAADFS. WEBB will also host two key events: a Speakeasy event on Monday and an Italian night on Tuesday. Attendees are invited to visit the company’s booth at IAADFS for full details

The WEBB team (from left): Juan Jidy, Finance and Marketing Analyst; Anette Mourier, Senior Marketing Manager; Phillip Jarrell, Sales Director; Sandy Welch; Trade Marketing Manager; Andy Consuegra, Managing Director; Mercedes Velasco, Customer Service Director; Kenneth Pfeiffer, Finance Director; Kimberly Epstein, Marketing Intern; and Enrique Guzmann, Logistics and Warehouse Manager.

As the result of a partnership with MONARQ Group, La Fée Absinthe will be available in the Americas

La Fée Absinthe expands its reach into the Americas market Through a partnership with MONARQ Group, La Fée Absinthe will be available across the Americas to cruise ship operators and border stores in the Caribbean and Latin America throughout 2014. “La Fée Absinthe has had a strong presence in global duty free for many years, which currently includes listings with World Duty Free Group, Dubai Duty Free and Dufry,” explained George Rowley, Founder of La Fée Absinthe. “We have seen consumers become increasingly more aware of traditional French absinthe, but what sets La Fée apart is our association with Le Musée de l’Absinthe.” Indeed, La Fée specializes in Absinthe, producing six different varieties that offer consumers options, from mainstream to ultra-premium. Rowley considers La Fée to be a pioneer of absinthe’s modern renaissance. The company plans to showcase two new products at IAADFS in Orlando this March: the newly refined La Fée Parisienne, a Verte Absinthe Superieure bottled

at 68% ABV, and La Fée Absinthe Blanche, a Blanche Absinthe Superieure bottled at 53% ABV. Made with 100% natural ingredients, Parisienne is now also packaged in a UV-resistant bottle to protect its delicate natural color. “La Fée pioneered absinthe’s renaissance ever since they started distilling in France in 2000,” explained Rowley. The company worked closely with Marie-Claude Delahaye, Founder of Musée de l’Absinthe, to fully ensure authenticity and quality. MONARQ Group has partnered with many duty free retail outlets/operators recently, including adding the following countries to its roster of retailers: Trinidad, Barbados, Cayman Islands, US Virgin Islands, St. Maarten, St. Kitts, Antigua, Argentina, Costa Rica, Panama and finally Paraguay. “With Brazil hosting the World Cup this year and the Olympics in Rio de Janeiro in 2016, there are more opportunities for growth,” stated de Monchy of the recent developments the company has seen in South American countries. www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

217

Liquor News

Bottega wins Best Buy Onboard Product at ISPY 2014 Bottega is celebrating a great start to 2014 with the company being awarded “Best Buy Onboard Product” at the ISPY Airlines Convention that took place January 12-17at the Brighton Hilton Metropole Hotel in Brighton, UK. This year marks the ninth time that Bottega, hailing from Bibano, Italy, has been awarded by the organization. After originally focusing on airline crews alone, ISPY has grown to become an event bringing together all inflight retail stakeholders, including buyers and suppliers of top airlines, who now get the opportunity to network and improve their collaborations. The show offered Bottega an opportunity to present its products to flight attendants and managers, allowing them to deepen their knowledge of Bottega products by tasting its wines, grappas

and liqueurs. During the event, several prizes were awarded to highlight the performances of commercial airlines and their crew. Among these prizes is the award granted to Bottega for its Gold sparkling wine product in the “birillo” (20 cl) version. This award is added to an already impressive list of awards granted to this sparkling white wine, which is characterized by the golden livery of the bottle. Inside this decorated bottle is a fresh and elegant Prosecco Doc, obtained by the white vinification of Glera grapes that are grown in the Valdobbiadene Hills near the Venetian pre-Alps. This area is known for its perfect climate for this native grape variety. Hand-harvested grapes are softly pressed in the winery, after which fermentation takes place in stainless steel containers at low temperature to preserve the wine’s freshness.

Bottega Gold’s award winning sparkling white wine in its classic gold bottle

Diego Zamora Group brings in new blood The Cartagena, Colombia based Diego Zamora Group has announced the addition of Antony Kime to their team as Global Duty Free Director as part of the company’s international growth plan. This addition will help ensure that the company’s portfolio of products will continue to expand, already including brands such as Licor 43, Villa Massa Limoncello, Ramon Bilbao and Mar de Frades. Diego Zamora Group is a 100% family-owned Spanish company that was founded in 1945. Its principal aim was commercializing its flagship brand Licor 43, which was first produced in 1920. Through partnerships with its distributor Zadibe, and its international subsidiary Zamora International, the company’s products are available in over 65 markets around the world. Reporting to Thomas Clamens, Managing Director International for Diego

218

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Zamora Group, Kime will be in charge of global strategy development and execution in travel retail and duty free. “Antony brings extensive relevant experience to Diego Zamora, after his tenure as EMEA and North America Travel Retail Manager at Beam Global,” explains Clamens. “He will focus on increasing the

opportunities for consumers to experience and buy our brands in this important channel for our business. Many of our brands, including Licor 43, are experiencing rapid global growth. Antony will concentrate on building awareness and driving value in key locations around the globe.”

Antony Kime, the newly named Global Duty Free Director for Diego Zamora is shown here with a selection of the company’s bottled products

Macallan leads the way for Edrington’s impressive growth The Edrington Group reported a sales increase of 20% in 2013 for the Americas, specifically from the United States, Mexico, Brazil and the Caribbean. The company’s strongest performing product was The Macallan brand, driven by both domestic and travel retail growth. Brugal 1888 also performed well for the company as the result of increased distribution efforts in travel retail. “Through our travel retail distributor Remy Cointreau TRA, our aim is to work with travel retail shoppers who believe in our portfolio and the premium brand offer we bring to their stores and to consumers,” explains Juan Gentile, Area Director for Latin America and Duty Free Americas for Edrington. “We have been focusing on growing our visibility and education with our key brands in place where we can support our brands and where we are well represented.” In addition to recently opening an office in Miami with distribution partner WEBB (World Equity Brand Builders), the company plans to push ahead into Latin America with the upcoming World Cup being showing increased potential for sales. For the US, Canada, Latin America and the Caribbean, Edrington feels that their superpremium spirits will continue to perform ahead of expectations. “Our aim is to reach the key nationalities of consumers in the Americas at every opportunity when traveling and to showcase our brands in order to educate them while encouraging them to try and purchase,” says Gentile. “Travel retail’s role is to act as a showcase and in some cases a test market for our brands.” At IAADFS in Orlando, the company will be showing its new single malt whiskies, including Highland Park Warriors Collection, an exclusive to travel retail, and the Cutty Sark Prohibition Collection. “The big challenge is to keep up with consumer expectations,” explains Gentile. “Travel retail is a premium retail environment where consumers expect to find exclusive products which are different from their domestic retailers. They are looking for brand experiences and for more information. We are seeing many operators in the region rebuilding their stores to improve the environment and shopping experience.”

South African wine exports reach new high Setting new records over their 2012 export figures, South African wines saw a 26% increase in exports in 2013. Volumes sold in reached new highs of 525.7 million liters of wine exported from the country. Strong growth from year to year occurred in established and newer markets, in particular in the United Kingdom, which is still the largest market for South African wines. Counting at just over one-fifth of exports, the United Kingdom rose 21% to 111.2 million liters. Volumes to Germany, a country where South Africa is the largest supplier from the New World, increased by 24% to 96.5 million liters of wine in 2013. Exports to Russia increased 18% to 37.3 million liters of wine. Siobhan Thompson, the new CEO of Wines of South Africa (WOSA), attributes the dramatic increase in exports to the country’s bumper harvest in 2013 that had allowed South African products to fill the gap created by a poor European harvest, as well as new efforts to penetrate existing markets. Thompson explains that the substantial growth in Russian sales was partly due to the result of the European harvest shortfall, where in some instances yields were the lowest in 40 years. “This was also the reason South African sales to wine-producing countries such as France, Italy and Spain increased so dramatically,” continues Thompson. Sales to the United States increased by 37%, buoyed by newly established distribution efforts and positive media exposure. The US is currently the world’s biggest market for wines. Strong gains have also been achieved in Denmark, Japan, Thailand and the United Arab Emirates.

Edrington Group’s Highland Park Warrior Collection of single malt Scotch whisky.

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

219

Japan Tobacco International

STAYING

RYAN WHITE

STRONG by

Japan Tobacco International achieves doubledigit growth in its full-year 2013 earnings, with market share increasing in many key regions

apan Tobacco International (JTI) has reported its sales results of 2013, indicating that January to December 2013 adjusted EBITDA at constant foreign exchange achieved double-digit growth of 11.3% driven by a continued increase in revenue. Core revenue at constant foreign exchange increased 6.1% driven by strong price/mix, more than compensating for a 4.6% decline in total shipment volume. JTI notes that this decline was due to industry contraction in a number of markets, as well as trade inventory adjustments, partly offset by an impressive fine cut volume growth of 18.4%. Despite Winstonâ&#x20AC;&#x2122;s momentum over the period, global flagship brand (GFB) shipment volume declined 0.8%. For the period of October to December 2013 specifically, total shipment volume declined 3.2% due to continued industry contraction in a number of markets. GFB shipment volume increased 3.1% mainly due to a favorable comparison versus the same quarter the prior year. Adjusted EBITDA at constant foreign exchange grew 11.9% driven by solid revenue growth. Finally, core revenue at constant foreign exchange increased 10.3% as a result of strong price/ mix. Year-on-year market share continued to grow in most key markets, including France, Italy, Spain, Taiwan, Turkey and the UK. In Russia, total share of value and GFB share of the market continued to increase. From January to December 2013, JTI reports that core revenue at constant foreign exchange grew US$708 million (+6.1%) as a result of US$1,083 million (+9.3%) in price/ mix improvement, partially offset by negative volume. Adjusted EBITDA at constant foreign exchange increased US$469 million (+11.3%) driven by US$1,066 million (+25.7%) in price/mix improvement. For the period of October to December 2013, core revenue at constant foreign exchange increased US$304 million (+10.3%) as a result of positive price/mix of US$347 220

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

JTI performed strongly in 2013, largely due to the performance of its global flagship brands (pictured are Camel and Winston cigarettes)

million (+11.7%), more than compensating for negative volume. Adjusted EBITDA at constant foreign exchange grew US$113 million (+11.9%), driven by US$344 million (+36.2%) in price/mix improvement.

Global flagship brands For the period of October to December 2013, Winston shipment volume increased 5.1% as a result of continued growth in the Benelux, the Caucasus markets, France, Germany, Kazakhstan, Middle East and Africa, Russia, Taiwan and Turkey. Camel shipment volume declined 0.8% due to industry contraction in Spain and down-trading in Turkey. Mevius shipment volume declined 3.7%, mainly due to down-trading in Taiwan and industry contraction in Korea, partially offset by growth in South East Asian markets. LD shipment volume grew 5.5% driven by growth in the Caucasus markets, Hungary, Kazakhstan, Middle East and Africa, and Turkey.

Twelve-month performance For the full year, JTI reports that total shipment volume declined 4.6% to 416.4 billion cigarette equivalent units, mainly due to industry contraction in a number of markets and trade inventory adjustments. Total shipment volume grew in the Benelux, the Caucasus markets, Czech Republic, France, Germany, Hungary, South East Asian markets, Sudan, Sweden, Taiwan and Turkey. GFB shipment volume declined 0.8% to 266.6 billion cigarette equivalent units, despite the volume growth in Austria, the Caucasus markets, Czech Republic, Germany, Hungary, Kazakhstan, Middle East and Africa, Romania, South East Asian markets, Sweden, Taiwan and Turkey. On a reported basis, core revenue increased 3.9% to US$12,273 million and adjusted EBITDA grew 7.5% to US$4,623 million. ď&#x201A;¨

JANUARY-DECEMBER 2013 RESULTS JAN-MAR

APR-JUN

JUL-SEP

OCT-DEC JAN-DEC

Total shipment volume (billions of units)

92.6 (-6.4%)

109.0 (-3.9%)

109.6 (-5.1%)

105.1 (-3.2%)

416.4 (-4.6%)

GFB shipment volume (billions of units)

58.4 (-4.5%)

69.5 (-0.3%)

70.3 (-1.8%)

68.4 (+3.1%)

266.6 (-0.8%)

Core Revenue (millions of US$)

2,729 (-0.1%)

3,112 (+3.8%)

3,227 (+3.3%)

3,206 (+8.2%)

12,273 (+3.9%)

[Reference] Core Revenue at constant FX (millions of US$)

2,734 (+2.1%)

3,131 (+5.8%)

3,230 (+5.7%)

3,267 (+10.3%)

12,362 (+6.1%)

Habanos

Celebrating

craftsmanship

A focus on quality and tradition can be seen in essentially every aspect of the latest releases in Habanos’ Partagás and Montecristo cigar lines by

RYAN WHITE For the very first Partagás Gran Reserva release, care was taken to ensure every element accurately represents the quality for which the brand is known, from the tobacco used to bespoke presentation box

H The latest release in the Montecristo line, Double Edmundo, will allow for the full spectrum of aromas and flavors to be enjoyed in a smoking time of about an hour

abanos has a history of crafting handmade cigars aimed directly at aficionados, and the company’s two latest releases work perfectly for the traditionally luxury-driven travel retail market. Tradition is also a very important hallmark that duty free shoppers look for, and in the cigar world, few brands can boast as rich a heritage as the Partagás and Montecristo lines. Indeed, with the very first Gran Reserva in the Partagás line and Double Edmundo, the newest variant in the Montecristo family, already popping up in travel retail outlets around the globe, it’s safe to say that although the year has just begun, Habanos has already firmly planted itself in the hearts and minds of traveling cigar lovers everywhere.

A year of firsts Partagás, created in 1845, is one of the most widely recognized Habanos brands among demanding cigar smokers. In recognition of the brand’s status, Habanos has released the first Gran Reserva in the Partagás line. For the production of this Gran Reserva, only the best tobacco leaves were selected from the well known tobacco-growing region of Vuelta Abajo, Cuba. These leaves, notes Habanos, have been subjected to a long and meticulous five-year ageing process. For this release, Lusitanias (ring gauge 49 x 194mm in length) is the majestic vitola that Habanos has chosen to enhance the richness and aroma that characterize the Partagás blend. The Ligero leaves used in the blend of this first Partagás Gran Reserva come from the San Juan y Martinez (D.O.P) tobacco district, where the rich San Juan soils provide the blend with the Partagás

222

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

brand’s distinctive strength. The Seco leaves, meanwhile, have been selected from the San Luis (D.O.P) tobacco district, effectively providing an unparalleled aroma to the tobacco. Perfect for collectors, the Gran Reserva Partagás Lusitanias, conceived with enthusiasts in mind, has a single production of 5,000 individually numbered cases, each containing 15 units. Furthermore, in a nod to the increasing importance of technology in marketing, Habanos has included a QR code for the new release, included both on the box and on the back of each cigar’s band. Well aware of the need to evolve as the years progress, Habanos notes that both functional and aesthetic enhancements will be a regular feature in every future Partagás release.

Unmatched to this day There’s no doubt that Montecristo is a Habanos brand that connoisseurs all over the world have come to know and love as a benchmark for quality and unmatched flavor, and over the years Habanos has introduced a number of Montecristo vitolas—including Edmundo and Petit Edmundo—to meet a variety of smoking needs. This year, Habanos continues to roll out the latest in the Montecristo range of handmade cigars: Double Edmundo (ring gauge 50, length 155 mm). Habanos notes that the latest release in the line will allow for the full spectrum of aromas and flavors to be enjoyed in a smoking time of about an hour. Notably, the Montecristo Double Edmundo incorporates the new Montecristo band and is sold in Semi Boite Nature (SBN) boxes of 10 and 25 units that contain a new bofetón—a protective leaf paper. The side of each box also contains a papeleta—a rectangular brand seal—so they can be easily identified in store. 

Tobacco News

Rocky Patel Premium Cigars is set to unveil its new foil packaging for its premium brands, including Decade (pictured), Vintage 1990, Vintage 1999 and The Edge Lite

ALFA Brands enhances tobacco lineup for IAADFS Duty free distributor ALFA Brands has ramped up its arsenal of tobacco products and is set to introduce several new additions at the IAADFS in March. Watch for the shiny new foil packs from Rocky Patel Premium Cigars at booth 532. The foil packs for Rocky Patel’s premium handmade cigars guarantee freshness and display the cigars smartly in a ziplock Boveda humidified pack. Available in a display of 20 two packs or a display of 10 four packs, the new packaging features Rocky Patel’s premium brands, including Decade, Vintage 1990, Vintage 1999 and The Edge Lite. The New Jersey-based distributor will also be rolling out the red carpet for Ashton products, as it launches its Savoy Executive Series. First-rate craftsmanship, along with Savoy’s hallmark quality and value, makes for a premium product that will be a strong addition to humidor collections. Available in four finishes and three sizes each, retail prices for the classy “Aging Chests” range from US$325-$525.

Additionally, Dublin cigar maker Peterson will unveil a new selection of tobacco with tantalizing notes and eye-catching packaging. Peterson’s Irish Cream fuses salted caramel and a light spice for a well-aged collection of filler tobacco from Indonesia, Brazil and Mexico. Irish Whiskey adds in bold notes of charred oak and chestnuts to create a hearty collection of piquant Brazilian, Mexican and Indonesian filler tobaccos. To round out the mix, Peterson introduces a Natural flavor, which consists of a smooth Sumatra wrapper encompassing a medley of filler tobaccos that are reminiscent of toasted nuts and sweet cream in an earthy package. Also at the IAADFS is the newly launched Ashton Small Cigars Connecticut Edition 100% Premium Tobacco. On the heels of notable gains for Ashton Small Cigars, this new category is crafted in the European Union and feature smooth blonde Connecticut wrappers encapsulating a creamy blend of Dominican tobaccos.

Peterson is rounding out its cigarillo line with a few new tasty flavors: Irish Cream (pictured), Irish Whiskey and Natural

Marlboro celebrates the Year of the Horse with Chinese New Year Special Edition 2014 Philip Morris International Duty Free has introduced a unique, limited-time Marlboro design to celebrate the 2014 Chinese New Year. This Marlboro limited pack edition design has been created to celebrate the Year of the Horse and to compliment traditions of Chinese adult smokers. The new soft-touch pack fuses traditional patterns and modern design elements. The 10-packs are crafted in a special easy-to-carry packaging format for ease of travel and festive gifting. This initiative is being supported through impactful merchandising to create a festive Chinese New Year atmosphere in airport retail outlets and to accentuate the beauty of the pack design. The limited edition is distributed exclusively in Beijing, Hong-Kong, Shanghai, Singapore, Japan, Dubai and Qatar airports, as well as in China border shops. 224

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

The most recent Marlboro limited pack edition design has been created to celebrate the Year of the Horse and to compliment traditions of Chinese adult smokers

J Cortès Cigars bolsters travel retail division

Belgium’s J Cortès Cigars has expanded its team with the addition of Thomas Gryson as Worldwide Travel Retail Coordinator. Gryson joined a year ago and will now work with major key accounts and customers in travel retail, and will liaise closely with export managers. In an effort to reinforce its export team, J Cortès Cigars takes on a more focused dedication to travel retail. And it comes just in time—the longtime premium cigar exporter is expected to reveal a new travel retail exclusive under the Neos brand at TFWA in Singapore in May.

Agio Cigars

Offering something

special

RYAN WHITE

Perennial favorite Panter brand cigars will be on hand at Agio’s booth in Cannes this year, along with other popular brands such as Mehari’s

Agio Cigars exhibits at IAADFS this year with a clear focus on travel retail exclusives and capturing the gifting occasion The Balmoral Dominican Selection assortment box has won multiple industry awards and has established itself as a favorite gifting item; the offering will be Agio’s core concentration at IAADFS

gio Cigars will be exhibiting at this year’s IAADFS exhibition, and Export Manager Gertrude Stormink tells Americas Duty Free that the company has a number of products that are sure to have attendees buzzing. Chief among the new offerings that the company will showcase this year are Balmoral Dominican Selection Cigars in the new Corona size and Agio Tip Sweet Cigars. Of course, cigar fans will be able to find popular international Agio brands Mehari’s and Panter at the booth as well. Agio’s other new offering at IAADFS this year, Balmoral Dominican Selection Cigars in a Corona size, is the result of the company’s commitment to ensuring that it meets the modern smoking needs of cigar consumers. This short but sturdy cigar brings an explosion of flavor without being too time consuming to smoke, and with a blend of Dominican and Brazilian tobacco, aficionados can be sure that they’re getting the best. “Each cigar is individually packaged in cellophane to guarantee optimum quality,” Stormink explains. “Furthermore, despite its length, it offers a full, aromatic and perfectly balanced smoking experience. Hints of vanilla, coffee and cedar offer a mild but full taste. It’s a very rewarding cigar!” 226

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Of course, fans of Agio’s products will know that the Balmoral Dominican Selection was originally launched in 2001. Twelve years later, the range has established itself as one of the best-selling offerings in the industry. From the Small Panatela to the Churchill Tubo size, each of the cigars is made in the Dominican Republic using the finest quality tobaccos. “And for those consumers who can’t decide on which size Balmoral Dominican Selection to choose, we’ve developed a beautiful assortment box,” Stormink tells us. “It contains a wide selection of cigar sizes to suit any taste.” Agio last year won two awards—one from Frontier and one from DFNI—for its Balmoral Dominican Selection assortment box. Always mindful of ensuring giftability in travel retail, the company has enjoyed successful listings of the assortment box onboard KLM Royal Dutch Airlines in the Holland Herald inflight magazine. “We’ve also been focusing on Agio Tip Cigars in travel retail as it’s a very established brand with worldwide distribution,” says Stormink. “Indeed, Agio Tip Cigars have proven to be very popular with enthusiasts the world over.” The latest addition to the Agio Tip Family, Agio Tip Sweet, boasts a java wrapper and a filter that guarantees a mild taste and

aroma. Furthermore, the product is offered in a bespoke tin, perfect for capturing the gifting occasion.

A clear focus Agio Cigars is concentrating on major airport hubs to ensure continued growth in travel retail. “Travelers are spending time in the retail shops and looking for cigars and cigarillos as a gift or to treat themselves,” says Stormink. She also tells us that in the months to come, offering travel retail exclusive packs and giftable items will be a continued focus for Agio Cigars: “We’re always trying to fulfill the demands of consumers by offering attractive and convenient travel retail packs and exclusive travel retail gift boxes.” Despite challenges in some regions with regard to the display of tobacco products, Agio Cigars is confident that it will experience continued growth in travel retail. Indeed, where applicable, the company runs promotions that feature price-offs and GWPs as a means of keeping excitement high around the products.

New & Notable

Balblair Vintage 1999 Company: Interbev Group Description: The nose of the signature Balblair is floral and fragrant featuring green apples, citrus fruits and vanilla. On the palate, honey and vanilla notes are combined with a rich spiciness and sweet toffee, resulting in a full bodied Vintage. The long lasting, smooth finish is sweet and spicy Booth: 609

LIQUOR AND TOBACCO: Beehive V.S.O.P Premium Reserve French Brandy Company: Stansfeld Scott Inc. Description: Born in 1852, Beehive has been distilled from a selection of the best French grapes and is matured and aged in the finest tradition. Beehive’s premium quality is recognized by experts and its unique bottle is now available with attractive gift packaging Booth: 201

Caorunn Gin Company: Interbev Description: A perfectly balanced, superpremium small batch Scottish Gin infused with hand-picked botanicals, inspired by Celtic tradition Booth: 609

Bardinet French Brandy VSOP Company: Stansfeld Scott Inc. Description: Established in 1857, Bardinet has specialized in aging and blending the finest French brandies in its own cellars near Bordeaux. Passion and know-how are at the heart of its exceptional quality recognized all over the world; and new premium packaging emphasizes their commitment to quality Booth: 201 Iceberg IceFusion Flavored Vodkas Company: Canadian Iceberg Vodka Corp Description: Iceberg IceFusion Flavored Vodkas now available in Crème Brule, Chocolate Mint and Cucumber. These three unique flavors can be enjoyed as chilled ‘ice shots’, on the rocks or mixed in distinctive, one-of-a-kind cocktails Booth: 427

Hardys Stamp of Australia Company: Stansfeld Scott Inc. Description: The Hardys Stamp range blends grape varieties from diverse regions, producing outstandingly delicious wines. Stamp has enhanced their labels as part of an initiative to create one “global identity” with consistent branding across their portfolio Booth: 201

Jose Cuervo Cinge Cinnamon Tequila Company: Proximo Spirits Description: Jose Cuervo Especial Silver Tequila is infused with natural Mexican cinnamon and other spices. The 35% ABV (70 Proof) is a natural shooter drink, which helps reinforce Cuervo’s relevancy as a shooter brand to a new generation of millennial consumers. Imported by Proximo Spirits and distributed by Chase International Booth: 1111

Fireball Cinnamon Whisky Company: Stansfeld Scott Inc. Description: A spicy smooth Canadian whisky liqueur and one of the fastest-growing brands of the year, Fireball Cinnamon Whisky is gaining traction in the Caribbean Booth: 201

CONFECTIONERY:

ACCESSORIES: Mentos Animal Money Company: Perfetti Van Melle Global Travel Retail Description: Available in four different flavors including Strawberry, Lemon, Cola and Orange, these Mentos feature in an animal piggy bank. Offered in three animal choices—Lion, Zebra, or Elephant—these chewy sweets are a great gift product for any child that loves animals Booth: 1105 Sencha Naturals - Green Tea + C Company: Sencha Naturals (ALFA Brands Duty Free Agent for North America) Description: ALFA Brands will be launching a new product at IAADFS from Sencha Naturals - Green Tea + C Effervescent Drink Mix with Vitamin C (300% DV), available in original, dragon fruit and citrus ginger. The mix dissolves easily in water and provides immune support thanks to the vitamin C organic matcha green tea. All products from Sencha Naturals are GMO, gluten and wheat free, vegan and contain 10mg of caffeine per packet Booth: 532

Chupa Chups Animal Mega Chups Company: Perfetti Van Melle Global Travel Retail Description: Slightly smaller than the existing Mega Chupa Chups and targeting young children, these fun animal head outers each hold ten flavored lollipops. With three different animals to choose from, including a giraffe, rhino and panda, along with a different colored stick for each animal, they are a perfect gift for any child Booth: 1105 3.5oz Jelly Belly Pink Camo Bag Mix Company: Jelly Belly Candy Company (ALFA Brands Duty Free Agent for North America) Description: The new Pink Camo Beans bag makes for fun “his ‘n hers” options. Jelly Belly Charities will donate 25¢ per Pink Camo Beans bag sold to support wounded US veterans and their families Booth: 532

Tabasco Dark Chocolate Jelly Beans Company: Jelly Belly Candy Company (ALFA Brands Duty Free Agent for North America) Description: Sweet meets spicy in a whole new way! Jelly Belly jelly beans are now spiced with Tabasco brand seasonings and smothered in rich dark chocolate. The 4.15 oz gift box features a fun bottle shaped inner tray which mimics the shape of a traditional Tabasco brand bottle Booth: 532

Key To Your Heart collection Company: Buckley London Description: The collection consists of a padlock bangle and pendant with a key-shaped charm. The polished bangle features a pave-heart shaped padlock, which acts as a clasp, and is set with cubic zirconia for additional sparkle. The first set is available in 18k rose gold platting Booth: 835

Sweetheart collection Company: Buckley London Description: The new Sweetheart collection is available in gold, rose gold and rhodium colored tones. Each of the crafted steel mesh designs is finished with a heart charm, handset with over 20 pristine crystals Booth: 835 TECH by Travel Blue Company: Travel Blue Description: The new TECH by Travel Blue range has been designed to meet every possible solution to connect and charge traveler’s USB devices worldwide with a product selection that includes adaptors, USB chargers, headphones, speakers and cables Booth: 901 www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

229

The Last Word

The industry’s

furry friends Americas Duty Free gives industry executives the chance to shine the light on their most loyal companions

here’s no doubt that you can learn a lot about someone from their pet. For this year’s Last Word segment of the IAADFS issue, Americas Duty Free thought it would be nice to include some pictures of familiar industry faces with their animal companions. In addition to being welcomed home by family and friends after a trip, the below executives are greeted by a wagging tail. Can you guess who belongs to whom!?

MATCH THE DOG WITH THEIR HUMAN! Cassandra Cassar, Vice President Information Systems, Beler Holdings Inc

Jim Perry, Managing Director, Brown-Forman Travel Retail

Lacho, with a fresh beard trim

Otis, looking quite debonair

Ryan White, Concessions, Liquor and Tobacco Editor, Americas Duty Free

Birds don’t phase Sully one bit

It looks like poor Chuck’s Superman suit might be one size too small

Diane Buchanan, International Travel Retail Regional Manager – Americas and Caribbean, Godiva

We’re pretty sure that Rigsby (left) and Nico have treats on their minds

Jessica Hearn, Art Director, Americas Duty Free

230

AMERICAS DUTY FREE & TRAVEL RETAILING MARCH 2014

Marco Lares, Director of Sales for the Americas at Perfume Holding, doesn’t have a pet but was kind enough to send us a picture of something that purrs nonetheless!

If you want that ball, you’ll have to go through Buddy to get it!

ANSWERS: Cassandra and Sully / Jim and Chuck / Ryan and Lacho / Diane and Buddy, / Laurie and Otis / Jessica, Rigsby and Nico

Laurie Karson, Executive Director, Frontier Duty Free Association