Americas Duty Free & Travel Retailing (October 2013 Vol. 23, No. 4) by Paramount Publishing Ltd.

October 2013 · TFWA WE· VOL 23 · NO 4

TFWA WE 2013 THE RUM THAT ISN’T JUST AGED; IT’S AGED IN SELECT CASKS RESERVED FOR THE WORLD’S FINEST SINGLE MALT.

Dufry grows p. in Brazil

London Supply’s p. bright future

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Parbel drives p. growth

Special Cognac p. Supplement

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Letter from the Editor

Investing where it matters

he slightly softer growth seen over the last year in Latin American travel retail was a key topic of discussion at June’s ASUTIL conference. The latest sales statistics out of the region still show high single-digit growth in most categories, and even double-digit increases over last year in the case of a few core offerings. Nonetheless, it can’t be denied that momentum has slowed somewhat over the last year or so. The advice proffered by experts at ASUTIL 2013 was continued investment on the part of operators and suppliers as a means of giving the industry in Latin America the push it needs to realize its full potential. If anything, this issue of Americas Duty Free is proof positive that the industry still believes in the region. Clearly, the recent concessions awarded to Dufry in Brazil indicate that the company’s focus on emerging markets hasn’t changed despite slightly subdued spending lately on the part of Brazilians. We cover this important development in our top story on page 20. No less exciting for the industry in Latin America is Flemingo International’s announcement that it was awarded the concession for a coffee and convenience store in Costa Rica’s Juan Santamaria International Airport. While no doubt a small start in the region, Paul Topping tells us on page 28 that the company has a lot more in store for the Americas. And the above is just a taste of a particularly noteworthy section on operator developments across the Americas at large, which includes news on HK Global Duty Free’s purchase of Veneto Duty Free (p. 32); a chat

with LS travel retail North America’s Vadim Motlik about the operator’s new retail and F&B locations at LAX’s Tom Bradley International Terminal (p. 40); an interview with World Duty Free Group’s Pedro Castro and an examination of the operator’s H1 results (p. 48), and much more. Of course, suppliers are also doing their part to keep dynamism high in the region. On page 84, Parbel tells us that its investments in Lancôme, Armani and Yves Saint Laurent have paid off in the Americas to the tune of increasing sales of the brands. Furthermore, on page 94, Division Manager at L’Oréal Travel Retail Americas Consumer Division Sebastien Levi notes that “difficult times are always the best times to experiment with new things, to think out of the box.” Our extensive supplier coverage also delves deeply into spirits and tobacco with a special supplement dedicated to the always luxurydriven Cognac subcategory; a report on gin; and news from innumerable suppliers including Patrón, Rémy Cointreau, Edrington Group, William Grant & Sons, Davidoff and British American Tobacco International to name but a handful. Always a showcase of the industry’s very best new products, this year’s TFWA WE is set to dazzle attendees once again. After reading here about what’s new in Americas travel retail, make sure you take a walk and see for yourself how the industry is investing to ensure its continued growth.

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. October 2013, Vol 23. No. 4. 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 ASSOCIATE EDITOR Melissa Silva melissa@dutyfreemagazine.ca ART DIRECTOR Sarit Scheer sarit.scheer@gmail.com CONTRIBUTORS Andrew Brooks John Guise Cindy Sosroutomo ADVERTISING SALES ADVERTISING & MARKETING MANAGER Kim Carrera kim@dutyfreemagazine.ca CIRCULATION & SUBSCRIPTION MANAGER Deepa J deepa@globalmarketingcom.ca

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All the best, Ryan White Concessions, Liquor and Tobacco Editor ryan@dutyfreemagazine.ca

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Global travel retail excellence www.worlddutyfreegroup.com

Letter from the Editor

Invertir en lo valioso

l crecimiento un poco más moderado que se ha producido desde el año pasado en el sector minorista de viajes latinoamericano, fue un tema vital a tratar en la conferencia de ASUTIL que se llevó a cabo en Punta Cana.Generalmente, las estadísticas más recientes de ventas de la región siguen mostrando un alto crecimiento de un dígito en la mayor parte de las categorías, e incluso de dos con relación al año anterior en el caso de algunas ofertas fundamentales. Sin embargo, no se puede negar que el impulso ha disminuido desde hace un año aproximadamente. El consejo propuesto por los expertos en ASUTIL 2013 fue la inversión continua por parte de operadores y proveedores. Y precisamente este número de Americas Duty Free es una prueba de que la industria está muy a la zaga con respecto a la región, y en espera del regreso de los incrementos de ventas que se lograban hace algunos años. Está claro que las concesiones recientes otorgadas a Dufry en Brasil indican que el enfoque de la compañía en mercados en surgimiento no ha cambiado, a pesar del gasto ligeramente menor por parte de los brasileños. Nuestra publicación le da cobertura

a esta importante noticia en nuestro artículo de fondo de la página 20. No menos estimulante para la industria en Latinoamérica es el anuncio hecho por Flemingo International, con respecto al otorgamiento de la concesión para una tienda de café y artículos misceláneos en el Aeropuerto Internacional Juan Santamaría de Costa Rica. Paul Topping afirma en la página 28 que la compañía tiene mucho más en proyecto para las Américas. Todo lo anterior es sólo una breve muestra de una sección particularmente destacada sobre acontecimientos relacionados con los operadores en las Américas, como noticias sobre la compra de Veneto Duty Free por HK Global Duty Free (p. 32); una conversación con Vadim Motlik, encargado de la operación minorista de viajes de LS en Norteamérica (p. 40); y una entrevista con Pedro Castro de World Duty Free Group (p. 48). Por supuesto, los proveedores también están esforzándose por mantener alto el dinamismo en la región. En la página 84, Parbel revela que sus inversiones en Lancôme, Armani e Yves Saint Laurent, han fructificado en las Américas al ritmo del aumento de las ventas de las marcas. Además, en la página 94 Sebastien Levi, Gerente de la División

del Consumidor de L’Oréal Travel Retail Americas destaca que “los tiempos difíciles son siempre los mejores para experimentar con cosas nuevas, para pensar de forma creativa”. Nuestra amplia cobertura de los proveedores también se enfoca a profundidad en espirituosos y tabaco, dos importantes categorías duty free, con un suplemento especial dedicado al Coñac, la categoría siempre orientada al lujo; un informe sobre la ginebra; y noticias de numerosos proveedores. La exposición TFWA WE de este año, que es siempre una muestra de los mejores productos nuevos de la industria, maravillará nuevamente a los asistentes. Después de leer en nuestra publicación todo lo que se estrena en el sector minorista de viajes de las Américas, asegúrese de ver con sus propios ojos cómo la industria está invirtiendo para garantizar un continuo crecimiento. Un cordial saludo, Ryan White Editor de Concesiones, Licores y Tabaco ryan@dutyfreemagazine.ca

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OCTOBER 2013 • VOL 23, NO 4

Contents 20

46 Seeing red GUESTLOGIX

GuestLogix will provide transaction processing services across the inflight entertainment solution currently in use by Air Canada rouge

TOP STORY – DUFRY

Building out in Brazil

Dufry ushers in “a new era of travel retail” in Brazil with key long-term concessions in newly privatized airports within the country

Construyendo para crecer en Brasil

Dufry inicia “una nueva era del comercio minorista de viajes” en Brasil con vitales concesiones a largo plazo en nuevos aeropuertos privatizados del país

Flemingo breaks in to Central American travel retailing as it continues moving toward its goal of reaching US$2 billion in turnover by 2020

BERNABEL TRADING

EUROSTILE EXTENDED 2 W/ 1 STROKE 60 TO 20 RATIO. 2ND LINE COND 85% W/ .5 STROKE

Americas Duty Free examines WDFG’s Latin America business and how it fits into Autogrill’s recently released H1 2013 numbers

54 Looking within SHOPPING CHINA

Shopping China focuses on personalization inside its stores and continues concentrating on value coupled with variety to ensure that shoppers keep coming back

Moving in, moving on

WORLD DUTY FREE

PREMIUM BRANDS, LLC

FLEMINGO

HK GLOBAL DUTY FREE

Horizon Putting the puzzle together

58 A bright future LONDON SUPPLY

Americas Duty Free speaks with Commercial Manager of London Supply Magdalena Ducos about her optimism for the future

Heading south

HK Global Duty Free takes its specialized knowledge of the Mexican consumer to Belize with the acquisition of Veneto Duty Free

60 The good kind of change PEACE ARCH DUTY FREE

With more traffic, increased sales and major renovation plans, Peace Arch Duty Free President Peter Raju tells Americas Duty Free that he’s optimistic for the second half of the year

On land and at sea

Bernabel Trading readies for the opening of a new 1,200-square-meter store onboard Buquebus’ new ferry and remains optimistic for the business as a whole in 2014

62 Northern exposure IMPORTATIONS GUAY

Dynamism in key categories attracts consumers looking for deals and duty free exclusives to Importations Guay’s stores

A Full Line of New, Top Quality IAADFS American Blend Cigarettes at a Great Value. Taking care of business

THE NUANCE GROUP

A new level

The Nuance Group North America and Toronto Pearson combine to create a dynamic shopping experience that will bring well-known luxury brands to the airport

PORTER AIRLINES

Executive Director of IAADFS Michael Payne tells us that this year’s show was well received and that the organization will again focus on ensuring lots of business gets done at IAADFS 2014

Porter patiently waits

Toronto’s downtown airline is keen to expand, and intently waiting as government decides whether jet service will be part of its future

LS TRAVEL RETAIL NORTH AMERICA LS travel retail North America prepares to open nine retail stores and seven F&B concepts at Los Angeles International Airport’s new Tom Bradley International Terminal

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10/9/2013 10:01:27 AM BRANDS TO MEET EACH AND EVERY ONE OF YOUR CUSTOMERS’ TASTES. 2013-09-17 8:49 AM

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EACH BRAND IS DESIGNED TO BRING OUT THE BEST FOR EVERY WALK OF LIFE.

Monseñor Rodríguez, 654 - Ciudad del Este, PARAGUAY - Tel +595 61 500645 www.monalisa.com.py - www.facebook.com/MonalisaParaguay AMERICAS TFWA WE 2013.indd 11 Americas_Cannes2013.indd 11

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FRONTIER DUTY FREE ASSOCIATION

A team effort

The FDFA continues its government relations work and prepares for the November convention as it builds on its highly successful national marketing campaign

GLOBAL TRAVEL RETAIL SALES

CONFERENCE REVIEW: ASUTIL

Making it count

With impressive growth already in the bag, travel retail’s future is looking bright, especially given the substantial growth taking place in the Asia market

Creating new paths

This year’s ASUTIL conference concentrated on the continued potential of the region and on finding new ways to grow sales in the face of softer year-on-year increases

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L’Oréal Travel Retail Americas Consumer Division is at its best when conditions are most difficult

96 Making the old new again ERNO LASZLO

Premium skincare provider Erno Laszlo looks to make a clean sweep in Asian duty free

98 Another year, another brand INTERPARFUMS USA

Interparfums USA continues to expand by adding Dunhill to its long list of brand partners

Creando nuevas sendas

100 A firm hold in the Americas

COUNTER INTELLIGENCE RETAIL

102 Re-imagining time

La Conferencia ASUTIL de este año se enfocó en el continuo potencial de la región, y en buscar nuevas formas de aumentar las ventas a pesar de los modestos incrementos anuales

94 Bullish in tough times

L’ORÉAL TRAVEL RETAIL AMERICAS CONSUMER DIVISION

PERFUME HOLDING

Perfume Holding sets its sights on improving brand awareness in the region

VICTRONIX SWISS ARMY

Victorinox Swiss Army redesigns its duty free presence and launches a world premiere

Targeting the non-shopper

Americas Duty Free discusses enticing Asian nonshoppers to buy with Director of Counter Intelligence Retail Garry Stasiulevicuis

PARBEL

Look first, launch second

Science and consumer knowledge pave the way to market success for L’Oréal Travel Retail Americas

ESTÉE LAUDER

New—but still known

Clinique reworks its science-based Dramatically Different Moisturizing Lotion, but keeps the trademark texture

103 Best in show FURLA

As Furla continues to achieve astounding growth, it’s new collection for 2014 delivers accordingly

104 105 108 Spring has sprung ACCESSORY NEWS

Bric’s launches Bellagio mobile accessories

T-Tech by Tumi focuses on

SUNGLASS NEWS

Toxic stays ahead of fashion trends n Marcolin designs Acqua, the new collection from Roberto Cavalli

TINTAMAR

TAIRO INTERNATIONAL

BEAUTY BEAT

Tairo takes off

The busy Mexico/Caribbean beauty distributor has a packed schedule of launches

Fresh fragrances

Always considered a showcase for the newest and best in the world of duty free, Cannes will see the launch of a number of top-line fragrances for the season

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Tintamar’s new limited editions for spring bring florals and nautical stripes to TFWA WE in Cannes

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SUPPLIER NEWS Buckley London launches Rose Gold, FourEver and Infinity Collections at Cannes n Philips teams up with Disney to revolutionize the children’s lighting category n Colors and combinations shine in Scorpio’s new watch and jewelry offer n Victoria Collection mixes scents with accessories, function with fashion

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CONFECTIONERY NEWS New Cadbury gondola debuts at Singapore Changi n Amy Wilson joins Hershey Company’s World Travel Retail

LINDT

How sweet it is

Just in time for Cannes, Lindt announced two limited edition tubes scheduled to hit shelves in 2014

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ELECTRONICS REPORT

Technical comfort

With smartphone sales on the rise and comfort accessories in demand, the electronics category is seizing an opportunity for growth

BRAUN

The buzz about Braun

New products and an increased focus on travel retail are key to company growth

SPECIAL REPORT: COGNAC

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COGNAC REPORT

Setting the benchmark

Americas Duty Free speaks with six Cognac brands about the importance of taking the lead when it comes to quality, tradition and innovation in the spirits category

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CAMUS

The epitome of elegance

Camus re-imagines its iconic Elegance range to pay homage to the family’s long tradition of groundbreaking Cognac making

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RÉMY COINTREAU TRAVEL RETAIL AMERICAS

Rarity refined

Rémy Cointreau Travel Retail Americas and DFS partner for the exclusive launch of Louis XIII Rare Cask 42.6 in Americas travel retail to October 31

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COGNAC NEWS Bisquit to mark +68% duty free volume at 2013 TFWA World Exhibition n Hine presents new decanter signed by Andrée Putman n Beam Inc launches Le Voyage de Napoleon in North America Duty Free

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TFWA WE LIQUOR PREVIEW

Room at the top

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DIAGEO GTME

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EDRINGTON GROUP

Americas Duty Free presents a guide to what’s new in spirits at this year’s TFWA World Exhibition

GIN REPORT

The super-premium gin category is growing fast, driven by care in production and some strong promotion

Sky high

A number of famous city skylines get the blue treatment with the new limited edition Johnnie Walker Blue Label skyline range

On the warpath

Edrington Group unleashes the final three expressions from Highland Park’s Warrior Series for global travel retail

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HEINEKEN

The adventure of a lifetime

In one of the more unique airport activations in recent memory, Heineken tempts travelers to drop what they’re doing and head off bravely into the unknown

BRUICHLADDICH

Malt masters

Bruichalddich and brandowner Rémy Cointreau team to give travel retail an exclusive range of five innovative single malts from Islay

PATRÓN SPIRITS

Persistent progress

As Patrón Spirits continues to achieve steady growth in duty free, it continues to overcome category-specific challenges and secure new listings

WILLIAM GRANT & SONS

Triple threat

With the launch of three new Glenfiddich variants, William Grant pays homage to its heritage while responding to travelers’ increasing demand for single malt whisky

LIQUOR NEWS Botran focuses on staff training and tastings to highlight product quality n ALFA Brands confirms new North American listings for its wine & spirits brands n Absolut takes on a deeper character with Absolut Amber n Flor De Caña launches Centenario 25 ultra premium rum exclusively for duty free, announces new look

BRITISH AMERICAN TOBACCO INTERNATIONAL

Bringing brands to life

British American Tobacco International attends this year’s TFWA WE with an eye toward continuing its industry-leading focus on innovation

TOBACCO NEWS Habanos presents Montecristo Double Edmundo at TFWA WE n KT&G to introduce first superslim with capsule technology at TFWA WE

NEW & NOTABLE Mount Gay Black Label n Tic Tac T100 Travel Collection n Smurfs 450g

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Airmall’s Sky Azure offers an extensive drink menu and a selection of seasonally inspired small plates and snacks

In Brief Airmall at BWI Marshall offers travelers a cocktail with a view with opening of Sky Azure by RYAN WHITE Airmall USA, the leading airport concessions developer in North America and operator of the Airmall at Baltimore/Washington International Thurgood Marshall Airport (BWI Marshall), has announced that Sky Azure (74 square meters), a contemporary new cocktail and tapas lounge, is now open to travelers. Offering sweeping views of the airfield, Sky Azure is located pre-security in the airport’s recently renovated second-level Observation Gallery adjacent to the new BC checkpoint. “Sky Azure is a sophisticated new lounge where travelers can relax and enjoy a bite and a cocktail while watching planes arrive and depart on the airfield,” said Brett Kelly, Vice

President of Airmall Maryland. “Since Sky Azure is located pre-security, we anticipate it will become a destination for travelers and locals alike who come to enjoy the exceptional views and unique vibe.” Sky Azure offers an extensive drink menu, including a selection of classic cocktails such as martinis and an old fashioned. Travelers can also sip on the bar’s specialty handcrafted cocktails, including a cinnamon blood orange margarita. The bar menu also includes a wide variety of craft beers and a selection of wines from around the world, which are available by the glass or bottle. In addition, hungry travelers will appreci-

ate the lounge’s selection of seasonally inspired small plates and snacks, including tuna tartare tacos, edamame hummus, ceviche and roast beef crostini. Those looking for a sweet treat can enjoy raspberry crème brulee cheesecake, carrot cake or a selection of dessert drinks like almond crème martini or Irish coffee. “Sky Azure, with its open design and curved bar, fits beautifully in the updated Observation Gallery,” said Paul J. Wiedefeld, BWI Marshall Airport CEO. “From a chic setting and outstanding airfield views to its exceptional cocktail and tapas menu, Sky Azure elevates airport dining to a new level.”

GOL and Delta achieve alliance milestones Twenty months after Delta Air Lines and GOL Airlines announced their enhanced, longterm, exclusive alliance, the companies have highlighted the milestones achieved, noting that the airlines “leveraged the strengths of both carriers to create additional value by establishing a seamless customer experience.” The Delta and GOL commercial team accomplished its immediate objectives, which were to expand the codeshare agreement; provide additional benefits to the airlines’ loyal customers; and offer a consistent experience at airports. Currently GOL has the ability to offer its customers access to the five markets Delta serves between the US and Brazil, which are Brasilia - Atlanta, Rio de Janeiro - Atlanta; and between Sao Paulo and Atlanta, Detroit and New York JFK. Additionally, GOL’s customers from Belo Horizonte; Curitiba; Goiana; and Porto Alegre currently have 14

access to Atlanta and will soon have access to Detroit and JFK. One of the additional milestones of the alliance is the co-location of the airlines. In April, Delta moved from Terminal 1, A Wing to Terminal 2 C Wing of Guarulhos International Airport. For GOL and Delta customers, co-location increases ease of connectivity and facilitates the process of re-checking bags after clearing customs since GOL counters are located immediately after leaving the secured customs area. Furthermore, the alliance set in motion a plan to increase shared benefits to Delta’s and GOL’s most loyal customers. Along with the ability to accrue and redeem flight awards, Delta customers now enjoy complimentary access to GOL’s VIP Lounges in São Paulo and Rio de Janeiro-Galeão International airports. Likewise, Delta Sky Clubs in Atlanta, New York-JFK and Detroit are available to SMILES

Diamond members at no charge. GOL’s SMILES Diamond elite members have now access to priority check-in and boarding on Delta’s flights through Delta’s Sky Priority. Delta’s Diamond, Platinum and Gold Medallion members have access to the same benefits. Delta’s Sky Priority is a series of distinctively branded priority airport services designed for high value customers, allowing them to move quickly through the airport. “This is a period of rapid growth and transformation for Delta and GOL. Brazil is the leading engine for economic growth in Latin America and an increasingly popular travel destination from the US,” said Ed Bastian, President of Delta and member of GOL’s Board of Directors. “These joint achievements represent furthering Delta’s goal to become the best US airline in Latin America and the Caribbean.”

Expanding the codeshare agreement to increase connectivity was a major objective of the Delta Airlines/GOL alliance

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

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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.

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Simply Perfect.

In Brief

Aeromexico unveils first Boeing 787-8 Dreamliner Aeromexico, Mexico’s global airline, recently unveiled its first Boeing 787-8 Dreamliner at its new Maintenance Hangar located at the Mexico City International Airport (AICM). This makes Aeromexico the only national airAeromexico will receive its line—and one of the first carriers worldwide—to serve second and third of nineteen B787-8 airplanes later this year its customers with the airline industry’s most current and well equipped aircraft. The Boeing 787 Dreamliner showcases unique strucThe Dreamliner is powered by General Electric GEnx-1B engines, tural and technological advances. The cabin layout features 32 seats with 180° tilt beds in the Clase Premier Business Class cabin and 211 which feature major advances in building materials, such as a carbon next-generation seats with extra legroom in the Economy Class cabin. fiber structure and high-efficiency equipment and systems to optimize The new jet airliner is also equipped with Sky Interiors LED lighting operational and maintenance costs. All of this translates into significant and windows that are considerably larger than other aircraft of its type, benefits for the environment, with less carbon dioxide emissions and lower noise levels at takeoff and landing. with cabin pressurization to reduce flying fatigue. “We as Mexicans should be proud of the fact that this is the first time This new airplane will also include personal entertainment systems with 16”Elite High Definition Panasonic screens in Clase Premier and a domestic carrier will operate an airplane many other global carriers Eco Monitor Touch Screens in the Economy Class cabin, featuring over do not have,” SAID Grupo Aeromexico CEO Andres Conesa. “The 20 films and 36 television series. It will also include a Moving Maps competitive advantages offered by Aeromexico’s Boeing 787 Dreamliner system providing flight information in real time, a Jukebox application will enhance our customer service.” Aeromexico will receive its second and third of nineteen B787-8 that allows passengers to program their playlists with some of the 1,500 songs featured in the system; iConnect for iPod synchronization with airplanes later this year, to be operated on routes between Mexico the entertainment system; and the Seat Chat system to communicate City and New York and Mexico City and Paris as of October and November, respectively. with other passengers on the plane, among many other advances.

The new facility will serve as the central control for the airline’s operations, with 400 employees overseeing nearly 600 Air Canada flights each day

Air Canada opens state-of-the-art global operations center Air Canada recently announced the opening of a new state-of-theart global Operations Center (OC) in Brampton, Ontario which is expected to significantly improve its operational capabilities and efficiencies. The new facility is the result of a two-year project and will serve as the central control for the airline’s operations, with 400 employees overseeing, on a 24/7 basis, nearly 600 Air Canada flights each day. “Air Canada is already recognized as one of the world’s best airlines and our new, leading-edge OC will further strengthen our position,” said Calin Rovinescu, President and Chief Executive Officer. “This new mission control centre incorporates the latest in technological and other design elements. Further, we can expect

important efficiencies with teams from all areas of the operation— including Operations Control, Flight Dispatch, Airports, Revenue Management, Maintenance, Crew Scheduling, Cargo, Air Canada rouge and Customer Journey Management—working under one roof to get our customers to their destinations safely, on-time and comfortably. The new facility has been completed on-time and within budget. It will be fully operational in the first quarter of 2014 following a period of testing, training and transition. Once in service, it will become the global nerve centre for Air Canada’s operations, ensuring delivery of Air Canada’s schedule and safe transport of approximately 35 million Air Canada customers annually.

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The most recent openings at press time were at Guarulhos Airport Arrivals

Dufry

BUILDING OUT IN

BRAZIL

Dufry ushers in “a new era of travel retail” in Brazil with key long-term concessions in newly privatized airports within the country by RYAN WHITE

ufry recently announced that it has reinforced its presence in Brazil by signing long-term contracts in São Paulo, Brasilia, Viracopos and Natal to operate duty free and duty paid spaces. With the signing of these agreements, which were structured as bid processes or requests for proposal, Dufry has renewed and expanded its contracts in all airports that have been privatized in Brazil to date. Furthermore, Dufry also opened a duty paid shop in Goiânia. All the contracts with the private airport operators have a 10-year duration and will allow Dufry to develop its business in the long-term, the company says. Overall, Dufry will operate 19,702 square meters of retail space in these locations once all the expansion projects in the different airports are completed, representing an increase of 13,626 square meters, or 324%, compared to the 6,076 square meters of store space that Dufry had before the privatization. “With these new agreements, Dufry enters a new phase in the development of the Brazilian travel retail market,” the company said in a press release. “The refurbished and expanded airports will allow creating substantially larger and better retail space and signifi20

cantly improved performance compared to the current situation, where the potential is restricted due to a lack of capacity in the existing infrastructure. As a result, Dufry can create a truly first-class shopping experience for passengers in Brazil, which provides scope for a substantial increase in spend per passenger and overall sales.” The new duty free contracts will be operated through a new joint venture, which will become the platform to develop the duty free business in Brazil going forward. With regard to duty paid, Dufry can considerably expand this sector in Brazil, as well as target the allimportant domestic traveler. Around 90% of all air passengers in Brazil are domestic and the build-up of the duty paid sector will be an important element in the development of the Brazilian business going forward. Based on the new contracts, Dufry has secured long-term agreements in all three airports that were privatized in 2012. Altogether, Dufry will add 10,580 square meters of duty free space and 3,046 square meters in duty paid. Not only will the retail space be substantially bigger, the shops will also have better locations and provide a much better retail experience for the passengers in each

“Overall, we have secured a very strong business in Brazil for the coming decade. With these new contracts, we are ready to start a new era of travel retail in Brazil.” Julian Diaz, CEO, Dufry Group

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s at press time Arrivals

Dufry has a history of operations in Brazil, but the new concessions will add 13,626 square meters to Dufry’s store space, representing an increase of 324%; pictured are Dufy’s existing operations in Brazil

of the airports. “We have been working hard to conclude all these agreements, which were structured as bid processes and requests for proposals,” says Julian Diaz, CEO of Dufry Group. “We have created important partnerships with GRU Airport, Inframerica Group and Aeroportos Brasil Viracopos as a key step in strengthening Dufry’s position in travel retail in Brazil.”

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Long-term contracts in São Paulo On September 1, Dufry signed a 10-year contract with Guarulhos Airport (GRU) to operate the entire duty free space in Terminal 3. In the duty free area of the new Terminal 3 of the airport, which is expected to be concluded in May 2014, Dufry will add 6,860 square meters of retail space. The new space will be comprised of two general travel retail shops in Arrivals and Departures, which will be designed as walkthrough concepts. In addition to that, Dufry will introduce for the first time stand-alone branded boutiques in Brazil. The operator plans to open 15 of these locations. On the duty paid side, Dufry will make a big step forward and introduce new store format in Brazil. A 204-square-meter Hudson store will provide a fresh travel experience, offering a comprehensive selection of convenience items, such as magazines and newspapers, soft drinks, a wide range of snacks, health and beauty aids and other travel convenience items. Overall, Dufry will increase its retail space at GRU to 14,223 square meters from 5,003 square meters, representing an increase of 184%, including expansions and upgrades in Terminal 2. There, Dufry inaugurated its enlarged Arrivals store of 3,142 square meters on August 18 of this year, and the Departures shop will be expanded by 513 square meters in the coming quarters. Once all the new retail space is fully operational, the substantially enlarged offering and the higher quality of the shops are expected to allow for a considerable increase in spend per passenger.

Redesigned airport retailing Dufry signed another 10-year agreement with Inframerica Group to redesign the entire commercial space and operate the duty free and duty paid shops at Juscelino Kubitschek International Airport in Brasilia and at São Gonçalo do Amarante International Airport in Natal. In Brasilia and Natal, Dufry will reformulate the travel retail area of both airports in terms of passenger flow and retail formats with a total retail space of 4,602 square meters, an increase of 3,953 square meters.

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Dufry notes that the new concessions awarded in Brazil will allow for substantially larger and better retail spaces; pictured is the new Arrivals store at Guarulhos Airport

Based on the new contract, Dufry will operate 1,685 square meters of duty free space and 2,917 square meters in duty paid at the two airports. The retail concepts will include multi-category and branded shops, as well as Hudson convenience stores. In Brasilia, Dufry will introduce the walkthrough concept in duty paid with a megastore that is expected to measure 1,600 square meters, a new concept which takes Brasilia’s retail space to world-class standards. Dufry will also bring its Hudson convenience store concept to Brasilia and Natal, with three shops in Brasilia and another two shops in Natal.

“Potential” the buzzword at Viracopos As disclosed on April 5, 2013, Dufry signed an agreement with Aeroportos Brasil Viracopos to operate duty free shops at Viracopos International Airport for 10 years. Viracopos is situated in an area with a cluster of science, technology and industrial companies nearby in the city of Campinas, in the greater São Paulo area, and has access to the best roads in the country. Viracopos airport operates the second-largest air cargo terminal in Brazil and in 2012 welcomed 9 million domestic and international passengers. Dufry is currently operating two duty free shops Viracopos Airport with a total area of 324 square meters, of which one is in the Arrivals area (237 square meters) and the other on the Departures side (87 square meters). Both shops have a general travel retail format. In addition, Viracopos has a duty paid shop measuring 100 square meters. “Guarulhos International Airport in São Paulo is the largest airport in Latin America and the main gateway for foreigners visiting the country and Brazilians traveling abroad,” 22

Diaz continues. “As for Brasilia, this is one of the most important airports for domestic passengers with a significant potential to increase international passenger numbers, and which is expected to have capacity around 40 million passengers by the end of 2014. Natal is one of the most popular tourism destinations in the northeast of Brazil and Viracopos is situated in a scientific, technological and industrial area in the city of Campinas, São Paulo, which has great growth prospects.”

New duty paid shop in Goiânia On August 20, 2013, Dufry opened its first duty paid shop at Santa Genoveva Airport Goiânia, located in the Midwest of Brazil, based on a 5-year contract. The shop measures 92 square meters and will offer the traditional travel retail assortment such as liquors, perfumes and cosmetics, as well as electronics and confectionary. Santa Genoveva Airport in Goiania welcomed 3.1 million domestic passengers in 2012, making it a significant location in terms of the duty paid business. “Brazil has substantial development potential from the economic side,” Dufry said in a recent statement. “Moreover, both, domestic and international tourism in Brazil are very small in relation to the size and the touristic potential of the country.” The operator notes that the privatization of selected airports was an important milestone toward accelerating the build-out of the airport infrastructure in Brazil. “This is only a first step, since the economic development of the country will require substantial further investments to support its growth, not only in airports but in all means of transportation,” the company says.

An opportunity going forward Dufry has structured a joint venture company with Brasif, a major industrial group with various businesses in construction and high street retail, as well as significant experience in travel retail. The new duty free businesses shall be operated through a new joint venture, which shall become the platform to develop the duty free business in Brazil going forward. Dufry will hold 60% of the joint venture in a first step with the possibility to increase its stake to 80% through a call/put option structure until the end of 2014. The joint venture is subject to the approval of the Brazilian antitrust authority. The overall investment of the projects is expected to be around US$250–275 million, including the expected capital expenditure for the space increase, net working capital requirements and the value of the joint venture transactions. “Over the past years, we have identified a substantial potential to improve travel retail commercially in Brazilian airports,” Diaz says. “With these new spaces and the commercial offering and brands that we can now implement, our operations will grow considerably in terms of penetration rate and sales per ticket, and ultimately total sales. We are also making a big step in developing travel retail in Brazil with the introduction of the Hudson concept and the opening of the first walkthrough duty paid shop in Brasilia. “Overall, we have secured a very strong business in Brazil for the coming decade and now is the time to organize ourselves to make the next step in the development of the Brazilian market,” concludes Diaz. “With these new contracts, we are ready to start a new era of travel retail in Brazil.” c

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Dufry The new concessions in Brazil will result in Dufry adding 10,580 square meters of duty free space and 3,046 square meters in duty paid; pictured is the new Arrivals store in Guarulhos Airport

Construyendo para crecer en Brasil Dufry inicia “una nueva era del comercio minorista de viajes” en Brasil con vitales concesiones a largo plazo en nuevos aeropuertos privatizados del país by RYAN WHITE

ufry anunció recientemente la solidificación de su presencia en Brasil con la firma de contratos a largo plazo en São Paulo, Brasilia, Viracopos y Natal para operar establecimientos duty free y con pago de aranceles. Gracias a la firma de esos convenios, estructurados como procesos de licitación o solicitudes de propuestas, Dufry renueva y amplía sus contratos en todos los aeropuertos brasileños que han sido privatizados hasta la fecha. Además, Dufry inauguró una tienda con pago de aranceles en Goiânia. Según afirmó la compañía, en virtud de los contratos con los operadores de aeropuertos privados, que tienen una duración de diez años, Dufry desarrollará su negocio a largo plazo. En general, Dufry operará 19,702 metros cuadrados de espacio para tiendas en esos lugares, una vez que terminen todos los proyectos de expansión en los diferentes aeropuertos, lo cual representa un incremento de 13,626 metros cuadrados, o un 324%, en comparación con los 6,076 metros cuadrados de espacio para tiendas con los que contaba Dufry antes de la privatización. “Con esos nuevos convenios, Dufry entra en

una nueva fase en el desarrollo del mercado minorista de viajes brasileño”, declara un comunicado de prensa de la compañía. “Los aeropuertos remodelados y ampliados propiciarán la creación de un espacio de comercio minorista sustancialmente extenso y mejor, y un rendimiento significativamente mejor en comparación con la situación actual, donde el potencial está restringido a causa de la falta de capacidad en la infraestructura existente. Como resultado, Dufry puede crear una experiencia de compras realmente de primera para los pasajeros en Brasil, lo cual implica la posibilidad de un incremento sustancial en el gasto por pasajeros y en las ventas en general”. Los nuevos contratos duty free serán operados mediante una empresa conjunta, que se convertirá en plataforma para fomentar el progreso del negocio duty free en Brasil. En lo que respecta a los establecimientos con pago de aranceles, Dufry puede ampliar considerablemente este sector en Brasil, así como enfocarse en el siempre importante viajero nacional. Cerca del 90% de los pasajeros de aviones en Brasil son nacionales, y el aumento del sector con pago de aranceles será un elemento importante en el progreso

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The Guarulhos Arrivals openings give a good indication of the direction that Dufry is headed in terms of store design in Brazil

del negocio brasileño. Basándose en los nuevos contratos, Dufry ha logrado convenios a largo plazo en los tres aeropuertos que fueron privatizados en el 2012. Asimismo, Dufry incorporará 10,580 metros cuadrados de espacio duty free y 3,046 metros cuadrados en establecimientos con pago de aranceles. Y el espacio para tiendas no sólo será sustancialmente más grande, sino que los establecimientos también tendrán mejores ubicaciones, y ofrecerán una experiencia de compra mucho mejor para los pasajeros en cada uno de los aeropuertos. “Hemos estado esforzándonos al máximo para concluir todos estos convenios, que se estructuraron como procesos de licitación y solicitudes de propuestas”, explica Julián Díaz, Director Ejecutivo de Dufry Group. “Hemos creado importantes alianzas con el Aeropuerto GRU, Inframerica Group y Aeroportos Brasil Viracopos como paso vital en el fortalecimiento de la posición de Dufry en el sector minorista de viajes en Brasil.”

Contratos a largo plazo en São Paulo El primero de septiembre pasado, Dufry firmó un contrato de diez años con el Aeropuerto Guarulhos (GRU) para operar el espacio total duty free en la Terminal 3. En la zona duty free de la nueva Terminal 3 del aeropuerto, cuya terminación está programada para mayo del 2014, Dufry incorporará 6,860 metros cuadrados de espacio para tiendas. La nueva zona estará compuesta por dos tiendas minoristas de viajes generales en las secciones de Llegadas y Salidas, y serán construidas de acuerdo al concepto de pasillos cubiertos (walkthrough). Además, Dufry pre-

sentará por primera vez boutiques independientes de marca en Brasil. El operador tiene en proyecto la apertura de 15 establecimientos de este tipo. En cuanto a las tiendas con pago de aranceles, Dufry dará un gran paso de avance e introducirá un nuevo formato de establecimientos en Brasil. Una tienda Hudson de 204 metros cuadrados ofrecerá una fresca experiencia de viaje, con una selección integral de artículos misceláneos como revistas y periódicos, refrescos y jugos, una amplia gama de meriendas, mercancías de salud y belleza y otros renglones para viajeros. En general, Dufry incrementará su espacio para tiendas en GRU a 14,223 metros cuadrados, en comparación con los 5,003 metros cuadrados de que disponían anteriormente. Esto representa un crecimiento del 184%, incluyendo las ampliaciones y renovaciones en la Terminal 2, en la que Dufry inauguró su tienda ampliada de 3,142 metros cuadrados en la sección de Llegadas, el 18 de agosto de este año; y la tienda en la sección de Salidas será ampliada en 513 metros cuadrados en los próximos trimestres. Una vez que el nuevo espacio para tiendas sea operable en su totalidad, se espera que la oferta ampliada sustancialmente y la calidad más alta de las tiendas permitan un crecimiento considerable en el gasto por pasajero.

Reformas en tiendas de aeropuertos Dufry suscribió otro convenio de diez años con Inframerica Group para reformar el espacio comercial y operar las tiendas duty free y con pago de aranceles en el Aeropuerto Internacional Juscelino Kubitschek de Brasilia

y el Aeropuerto Internacional São Gonçalo do Amarante en Natal. En Brasilia y Natal, Dufry reformulará el área de tiendas minoristas de viaje de ambos aeropuertos en términos de flujo de pasajeros y formatos minoristas, con un espacio total de 4,602 metros cuadrados, o sea, un incremento de 3,953 metros cuadrados. De acuerdo al nuevo contrato, Dufry operará 1,685 metros cuadrados de espacio duty free y 2,917 metros cuadrados de tiendas con pago de aranceles en ambos aeropuertos. Entre los conceptos a considerar estarán las tiendas de categorías múltiples y las tiendas de marca, así como las Hudson de artículos misceláneos. En Brasilia, Dufry incorporará el concepto de pasillo cubierto (walkthrough) en establecimientos con pago de aranceles con una megatienda que se espera tenga 1,600 metros cuadrados de extensión, un nuevo concepto que eleva el espacio de tiendas minoristas de Brasilia a normas de clase mundial. Dufry también llevará su concepto de tiendas Hudson de artículos misceláneos a Brasilia y Natal, con tres tiendas en Brasilia y otras dos en Natal.

“Potencial” es la palabra de orden en Viracopos Según informaciones reveladas el 5 de abril del 2013, Dufry firmó un convenio con Aeroportos Brasil Viracopos para operar tiendas duty free en el Aeropuerto Internacional Viracopos durante diez años. Viracopos está ubicado en una zona que cuenta con un grupo de compañías científicas, tecnológicas e industriales cercanas, en la ciudad de Campinas, en la zona del Gran São Paulo, y tiene acceso a las mejores carreteras del país. El aeropuerto de Viracopos opera la segunda terminal de carga

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Dufry notes that the new concessions awarded in Brazil will allow for substantially larger and better retail spaces; pictured is one of Dufry’s current concessions in Brazil

aérea de Brasil y en el 2012 recibió a 9 millones de pasajeros nacionales e internacionales. En la actualidad, Dufry está operando dos tiendas duty free en el Aeropuerto Viracopos con un área total de 324 metros cuadrados; una de ellas en la sección de Llegadas (237 metros cuadrados) y la otra en la de Salidas (87 metros cuadrados). Ambos establecimientos cuentan con un formato minorista de viajes general. Además, Viracopos tiene una tienda con pago de aranceles con 100 metros cuadrados de extensión. “El Aeropuerto Internacional Guarulhos de São Paulo es el mayor de Latinoamérica, y la puerta principal de acceso para los extranjeros que visitan el país, y los brasileños que viajan al extranjero”, añade Díaz. “Al igual que el de Brasilia, es uno de los aeropuertos más importantes para los viajeros nacionales, con un potencial significativo de incrementar la cantidad de pasajeros internacionales. Se espera que tenga una capacidad para 40 millones de pasajeros a fines del 2014. Natal es uno de los destinos turísticos más populares en el nordeste de Brasil, y Viracopos está ubicado en una zona científica, tecnológica e industrial en la ciudad de Campinas, São Paulo, con grandes posibilidades de crecimiento”.

Nueva tienda con pago de aranceles en Goiânia El 20 de agosto del 2013, Dufry inauguró su primera tienda con pago de aranceles en el Aeropuerto Santa Genoveva de Goiânia, ubicado en la zona centro-oeste de Brasil, con un contrato de operación por cinco años. El

establecimiento tiene una extensión de 92 metros cuadrados y ofrecerá el surtido tradicional minorista de viajes como licores, perfumes y cosméticos, así como electrodomésticos y confitería. El Aeropuerto Santa Genoveva en Goiania recibió 3.1 millones de pasajeros nacionales en el 2012, debido a lo cual es un lugar significativo en términos de negocios con pago de aranceles. “Brasil tienen un potencial de desarrollo sustancial en el aspecto económico”, señaló Dufry en una reciente declaración. “Además, tanto el turismo nacional como el internacional en Brasil son muy pequeños en relación con el tamaño y el potencial turístico del país”. El operador puntualiza que la privatización de aeropuertos selectos fue un acontecimiento importante para acelerar la solidificación de la infraestructura aeroportuaria en Brasil. “Es sólo un primer paso, pues el desarrollo económico del país necesitará más inversiones sustanciales para respaldar su crecimiento, no sólo en los aeropuertos sino en todos los medios de transporte”, enfatizó la compañía.

Una oportunidad de avanzar Dufry ha estructurado una empresa conjunta con Brasif, importante grupo industrial con varios negocios en construcción y tiendas en calles principales, así como experiencia significativa en tiendas minoristas de viajes. Los nuevos negocios duty free serán operados por una nueva empresa conjunta, que se convertirá en plataforma para el progreso del negocio duty free en Brasil.

Dufry mantendrá el 60% de la empresa conjunta en un primer paso, con la posibilidad de incrementar sus acciones al 80% mediante una estructura de opción de compra/venta hasta finales del 2014. La empresa conjunta está sujeta a aprobación por parte de la autoridad antimonopolista brasileña. Se espera que la inversión general en los proyectos sea de unos US$250 a 275 millones, incluyendo el gasto esperado de capital para el incremento del espacio, los requisitos de capital de trabajo, y el valor de las transacciones de la empresa conjunta. “En los últimos años hemos identificado un potencial sustancial para mejorar comercialmente el sector minorista de viajes en los aeropuertos brasileños. Con estos nuevos espacios y la oferta comercial y las marcas que podemos implementar ahora, nuestras operaciones se incrementarán considerablemente en términos de índices de penetración y ventas por boleto, así como de ventas totales en última instancia. También estamos dando un gran paso de avance en el desarrollo del sector minorista de viajes en Brasil con la introducción del concepto Hudson y la inauguración de la primera tienda walkthrough con pago de aranceles en Brasilia”, continúa Díaz. “En general, hemos garantizado una operación muy sólida en Brasil para la próxima década y es tiempo de organizarnos para dar el próximo paso en el desarrollo del mercado brasileño. Con estos nuevos contratos, estamos listos para iniciar una nueva era del comercio minorista de viajes en Brasil”, concluye Díaz. c

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Flemingo played a major role in Sao Paolo’s Aeroinvest 2013 event as a Platinum Sponsor

Flemingo

Moving in, moving on by RYAN WHITE

Flemingo breaks in to Central American travel retailing as it continues moving toward its goal of reaching US$2 billion in turnover by 2020

lemingo International is a Dubaibased global travel retail operator with a focus on emerging markets. In the short span of 15 years, Flemingo has established its operations across Asia, Europe and Africa and is now present in more than 26 countries with over 125 outlets. Big news for the operator is that is has recently announced its entry into Central America with a concession for a coffee and convenience outlet in Juan Santamaria International Airport, Costa Rica. “Flemingo has ambitious plans for its convenience format and plans to roll out 200-plus convenience shops in travel retail locations,” says Paul Topping, Flemingo Group Independent Director and Board Member. “Flemingo, through its subsidiary Baltona, introduced the STARTER convenience brand last year at Polish airports as part of its master retail concession. Currently we are operating three such concessions at Gdansk, Rzeszow and Poznan Airports.” As mentioned, the company is now extending the STARTER retail offer to Juan Santamaria International Airport. The space awarded for the concession is 74 square meters and located in the Arrivals hall. Topping told Americas Duty Free in September that the

location is expected to open in the airport in October of this year with a contract term of four years. As with STARTER’s other locations in Poland, the convenience store will carry newspapers and periodicals, travel essentials, personal care products, toiletries, hot and cold beverages, snacks, sandwiches and other foods. “We’ll be focusing on ‘food to go,’” explains Topping, “with the expectation of serving around 4 million passengers. The people we’ll be catering to at Juan Santamaria—namely travelers, airport employees and other workers—are on the move and demand quick service, an easily navigable shop layout and consistent stock availability. Furthermore,

Flemingo has ensured that all of this will be supported by a robust backend technology.”

Global meets local Topping tells us that after studying consumer demographics in the emerging markets that it’s targeting, Flemingo has developed a new convenience format called “Xpress”: “It’s a more evolved version of the STARTER convenience format that focuses less on food to go and more on a robust convenience offering,” he explains. With the tagline “Your Global Local Store,” the Xpress brand is being developed to offer a mix of global and local brands. Indeed, Topping feels that differentiating the offering from other convenience formats in the region’s

“We’ve got a dedicated business development team in place that consists of 15 members who are in the field finding the niche opportunities that we need to realize our objective over the next seven years.” Paul Topping, Flemingo Group Independent Director and Board Member

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Flemingo airports will be an important factor toward making the concept a success. Flemingo expects the Xpress brand to play a major role in upcoming concessions in emerging markets. Americas Duty Free asked Topping if any other opportunities have presented themselves in the Americas and while he couldn’t give specifics, he did tells us that countries such as Paraguay, Chile, Panama, Mexico and Brazil are certainly on Flemingo’s radar given the fact that there is still untapped potential for travel retailers, and especially those adept at navigating the logistical hurdles that sometimes present themselves in emerging markets. As part of its strategy, Flemingo is looking at building a robust sourcing hub in South America to leverage its regional specialties and reduce global dependency in regard to its supply chain. Flemingo also recognizes the importance of developing a destination-related offering in its convenience stores, says Topping. “As such, a hub in South America makes all the more sense,” he explains. “Efficiency when it comes to the supply chain and inventory is key to success in emerging markets,” Topping tells us.

The bigger picture These developments in Central America are, of course, just the latest steps in Flemingo’s aggressive expansion plans. Flemingo has identified 38 countries as part of its emerging market strategy and its growth plans are focused on developing in regions such as Latin America, Central and Eastern Europe, North Africa and South East Asia. In its continued push to grow the business, Flemingo was recently awarded the concession to build, operate and maintain the TangerMed Port Terminal in Tangiers, Morocco. “We’re more than just an airport retailer,” says Topping. “We operate travel retail stores in 14

Flemingo’s STARTER store in Gdansk, Poland; the newest STARTER store will soon be opened in Costa Rica’s Juan Santamaria International Airport

different formats, including airport duty free, border, downtown duty free, seaport, military, diplomatic, luxury retail, travel essentials, F&B outlets and more.” In addition airport retailing, Flemingo is exploring opportunities in the regions mentioned above for its inflight, diplomatic and F&B formats, and Topping says that there is no shortage of opportunities upon which the company is looking to capitalize. “We’ve identified close to 300 master concession opportunities to further build on the synergies between the different formats,” he explains.

Staying on track Indeed, this TFWA WE 2013 marks one year since Flemingo launched its new look at Cannes 2012 and spoke about its plan to reach US$2 billion in turnover by 2020. Since that time, Flemingo opened a new shop in Pretoria, South Africa that measures 1,575 square meters; unveiled two new diplomatic duty free stores in Ghana and Burundi, Africa; launched its online diplomatic services; and refurbished its subsidiary Baltona’s store at Montpellier in addition to the developments in Poland, Morocco and Central America. As if this weren’t enough, Flemingo has also opened

Arrivals and Departures shops in the lounges of the newly integrated NSCB International Terminal at Kolkata. Topping tells us that Flemingo is looking at 25% growth year on year to achieve its target of US$2 billion in turnover by 2020, and that LATAM will play an important role in the company’s plans. As such, Flemingo recently took center stage in Sao Paolo’s Aeroinvest 2013 event as a Platinum Sponsor. The conference took place on August 27 and 28, and played host to major airport and aviation players such as Airbus, SITA, Lufthansa Consulting, IATA and many other airport authorities and airlines. And if 25% year-on-year growth to 2020 seems a difficult feat to achieve, Topping ended our conversation by reminding us that Flemingo has been consistently achieving outstanding growth for the last half-decade: “In the last 5 years, Flemingo has consistently grown over 60% year on year,” he says. “We’re confident that we can achieve our vision of ‘2B BY 2020’—US$2 billion in turnover by 2020. We’ve got a dedicated business development team in place that consists of 15 members who are in the field finding the niche opportunities that we need to realize our objective over the next seven years.” c

The storefront of an existing Flemingo STARTER coffee and convenience store

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Discover the Duty Free World

DUTY Paraguay, Sudamérica

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10/9/2013 10:16:21 AM 2013-09-17 8:57 AM

A Full Line of New, Top Quality HK Global Duty Free American Blend Cigarettes at a Great Value.

Heading South

HKG sees an opportunity to grow sales of its private label tobacco brands, which are already popular with Mexicans traveling to the US, on the border between Mexico and Belize

HK Global Duty Free takes its specialized knowledge of the Mexican by RYAN WHITE consumer to Belize with the acquisition of Veneto Duty Free BRANDS TO MEET EACH AND EVERY ONE OF YOUR CUSTOMERS’ TASTES.

summer, HKGBEST has decided to leave the storesWALK relatively untouched EACH IS DESIGNED TOthat BRING THE FOR EVERY OF LIFE. ate in BRAND the summer, HKG Duty Free announced it suc- OUT

until the busy holiday season is over. At that point HKG will look to cessfully completed negotiations to purchase Veneto Duty renovate in line with current branding in the Southern US. For the Free, which consists of two duty free stores located in the moment, though, the operator will concentrate on replenishing the Commercial Free Zone at the Santa Elena border crossing existing portfolio while adding the important element of its private in Corozal District, Belize. At the same time, HKG Duty Free Belize label tobaccowho brands.appreciates good quality Limited was formed with thesatisfies aim of assuming all existing commercial Pitbull the young, urban go-getter Indeed, HKG has seen success in its existing locations with its operations. and the recognition that success brings. private label tobacco brands, and Huxtable notes that when deciding Alan Huxtable, Vice President, Business Development & Comto purchase Veneto Duty Free,urge the opportunity continue the brands’ mercial Director atbrings HKG, tellsexcitement Americas Duty Free the near Montana tothat thein outdoor thrill-seekers who naturetoto “bring it on”, development with Southern Mexican consumers was an important term, Veneto Duty Free will remain as is, with HKG Duty Free Belize on the water, at the for top of theconsideration. mountain, onheaconcedes bike,that or there on are horseback. While a number of private Limited takingwhether operational control, including replenishment existlabel brands currently being offered in the area by some major duty ing product categories and brands retained, as well as expanding the Flore complements young woman freesophisticated players, HKG has an executive advantage in that it’s one of the few duty assortment. In early 2014, a project will begin to refurbishthe the two stores and a keen andthat a owns flare fun. free operators its for brands. as a means of ensuring that they reflectwith HKG branding andsense standards.of fashion “Tobacco is a big category in Belize so we’ll certainly be targeting Huxtable says that the location of the stores was particularly lineare oflocated the finest American blends at aexplains. value price for those these consumers, ” Huxtable interesting forPolice, HKG: “Theastores at the border between Tobacco In terms other opportunities at the Belize stores, Huxtable Belize and Mexico, meaning that they get customers coming from who work hard and playof harder. notes that electronics is a popular category in the area and HKG Guatemala and Honduras, and even as far as Costa Rica and Panama.” opportunity to expand Veneto’s electronics offering. “We’re Needless to say, though, the bulk of the consumers that visit the For the self made man who celebratessaw hisanhard work and enjoys his ranch life, already a big electronics retailer in the Southern US,” he explains. “It store are from Mexico, a demographic that HKG knows more than we introduce Laredo, no surprises and no compromises. isn’t dramatically developed at the Belize stores at the moment so we a little about given the fact that the operator has carved out a very things never change. certainly see potential. ” respectable duty free business in the Southern US Some catering largely to just In addition to areas where Huxtable feels HKG can add value to Mexican travelers crossing the border into the US. the existing business, he tells us that there are some commonalities “It’s a market that’s very familiar to us,” confirms Huxtable. between HKG and Veneto, particularly in the fashion category. Veneto Given that the purchase of the stores took place near the end of the has done good business in watches and eyewear, and given that HKG is also strong in this category, Huxtable expects “We’re excited about this to be able to access some brands currently not available at for more information opportunity. The stores are the stores in Belize to further the buzz around the category. smaller but they’re extremely call 305.715.0178 “We’re excited about this opportunity,” concludes well located near the main Huxtable. “The stores are smaller but they’re extremely or email info@Horizonbrands.net well located near the main entrance to a busy shopping entrance to a busy shopping complex in the Commercial Free Zone. For now, the big complex in the Commercial news is the acquisition, but come the New Year we should Free Zone.” have some exciting developments regarding renovations Alan Huxtable, Vice President, that will bring the stores up to HKG standards and more Business Development & Commercial brands that we’ll be adding.” c Director, HK Global Duty Free Ad-HorizonPB-210x297.indd 1

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Bernabel Trading’s new store aboard Buquebus’ ferry the Francisco Papa measures 1,200 square meters and offers tourists the best in luxury products across categories

Bernabel Trading

On land

and at sea

by RYAN WHITE

Bernabel Trading readies for the opening of a new 1,200-square-meter store onboard Buquebus’ new ferry and remains optimistic for the business as a whole in 2014

ernabel Trading has carved out a respectable travel retail business in Montevideo, Colonia del Sacramento and Buenos Aires onboard the Buquebus fleet of cruise ships. In Montevideo, Zeinal Hnos. S.A., the original name of the family-run company, 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 (including the latest Francisco Papa opening) aboard the Silvia Ana (two stores), 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 upcoming store opening onboard Buquebus’ brand new ferry, the Francisco Papa. “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 1,000 passengers and 160 cars across Río de la Plata from Montevideo to Buenos Aires and back in a very speedy 2 hours.” At press time, Bernabel Trading was just three weeks away from opening a new 1,200-square-meter duty free store aboard the Francisco Papa. The opening was scheduled to coincide with the ship’s launch on October 2, and Zeinal told us that Buquebus and Bernabel Trading were well aligned in their vision for the shop. “The ship was built in Australia and fea34

tures the highest standards in technology,” he explains. “Similarly, our new store will exceed all expectations in terms 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.

Catering to tourists On the topic of brands and product mix, Zeinal tells Americas Duty Free that Bernabel Trading takes great care in ensuring that it partners with like-minded suppliers—those who are interested in making sure that the in-store experience is up to “demanding customers’ expectations. “Operators, retailers and suppliers have a common goal, so it behooves us to work together to ensure that our customers are

getting luxurious, sophisticated products and dedicated customer service,” he explains. Indeed, this concentration on consumers has shown results. The company cites year-onyear increases in the number of Uruguayan, Argentinean, Chilean, Paraguayan, Brazilian, American and European travelers shopping at its stores. In fact, Zeinal tells us that the area has seen a boom in tourism over the last few years that has boosted traffic in both the seaport and ferry shops considerably. “We’re very fortunate to be located in Río de la Plata given the high proportion of tourists who travel to the southern part of the continent to visit Punta del Este, Montevideo and Colonia del Sacramento, as well as destinations such as Buenos Aires, Argentina and Rio Grande Do Sul, Brazil,” Zeinal explains. “As a result, we cater to nearly 3 million shoppers a year in our stores. “There is a lot of potential for the continued growth of Bernabel Trading’s business,” concludes Zeinal. “We’re expecting the launch of the Francisco Papa to have a great impact on our volumes in 2014 and we look forward to continuing to serve our valued clientele both on land and at sea.” c

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WILDFOX

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The Nuance Group

The GTAA is working with travel retail partner Nuance to create a dynamic shopping experience that will bring well-known luxury brands to guests at Toronto Pearson

A new level

The Nuance Group North America and Toronto Pearson combine to create a dynamic shopping experience that will bring well-known luxury brands to the airport by RYAN WHITE

assengers traveling to international destinations from Toronto’s Pearson Airport will be able to shop enhanced branded retail offerings by the end of the year, reports The Nuance Group. The Greater Toronto Airports Authority (GTAA) is working with travel retail partner Nuance to create a dynamic shopping experience that will bring well-known luxury brands to guests at Toronto Pearson, including Burberry, Coach, Michael Kors, Omega, Gucci, Mont Blanc and Ferragamo. “Nuance and the GTAA are responding with a focus on delivering programs that are dynamic and relevant,” the retailer and airport authority said in a joint press release. “Guests want choice when they are at the airport, including retail and food provided by familiar global and national brands, and an expanded duty free program will do just that with more space dedicated to luxury and fashion brands that are duty and tax free.” “We’re pleased to bring the duty free experience at Toronto Pearson to a new level with our

partner Nuance,” says Pamela Griffith-Jones, Vice President of Guest and Terminal Services for the Greater Toronto Airports Authority. “We know our guests will be excited by the high-end offerings and that a new store concept will give them the airport shopping experience they are looking for. This is another example of how Toronto Pearson is delivering on our brand promise to provide our guests with more branded shopping options.” “Our new, innovative retail concept is a result of our close partnership with Toronto Pearson, and it delivers a totally new shopping experience to guests,” explains Roberto Graziani, Nuance President & CEO. “I would like to take this opportunity to thank the airport management for their trust in Nuance and for their very competent and collaborative approach.” In light of Nuance’s past performance and significant investments in the business, the company’s contract was extended five years. As part of the duty free redevelopment, Nuance will develop over 1,900 square meters of space

in Terminal 1, including 370 square meters of new space. This will be the first deployment of its new global branding and duty free store concept in North America. The store is specially designed for Toronto Pearson and will incorporate global best practices which focus on optimizing store navigation, product visibility and in-store communications. Featuring innovative store furniture, the shop environment is designed to specifically engage with customers and deliver a worldclass shopping experience. “We are excited about the opportunity to further develop the duty free program at Toronto Pearson,” says Richard Rendek, CEO of Nuance North America. “Working closely with the airport, we have designed a shopping experience that will meet local needs. I am confident that our joint efforts will enable us to make a difference in creating a truly outstanding retail environment with a local touch. We look forward to delivering a world-class duty free offering to passengers traveling through Toronto Pearson.” c

Featuring innovative store furniture, the shop environment is designed to specifically engage with customers and deliver a world-class shopping experience

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l partner Nuance ence that will bring at Toronto Pearson

hop environment stomers ence

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10/9/2013 10:16:43 AM 2013-09-17 8:58 AM

Porter Airlines

If approved, Porter Airlines will operate the CS100 jet from Billy Bishop Airport

Porter

PATIENTLY WAITS Toronto’s downtown airline is keen to expand, and intently waiting as government decides whether jet service will be part of its future by RICK LUNDSTROM

Ontario wines are served on Porter aircraft

ven though its image is a nod to the golden era of air travel, Porter Airlines is clearly planning a future of growth and expansion, which is now in a holding pattern as three government entities decide on an important aspect of its plans. Porter is looking to get into the jet age from its home at Billy Bishop Airport in Toronto. That will take approval by The City of Toronto, the Toronto Port Authority and the Federal Government. Recently, Toronto’s City Council voted 29-14 to move ahead with studies and reviews on the affect of extending the runway on Toronto Islands by 168 meters and the affect the Bombardier CS100 jet would have on the surrounding area. The 100-149-passenger CS100, which Porter wants to add to the fleet would be the first jet allowed on the island since a 1983 ban went into affect. As a result, Porter’s service is now limited to 40-passenger turboprops. In late August, Brad Cicero, a spokesperson for the airline, said Porter was hopeful that before end of the year, the various government entities would reach a decision. “We think that the preliminary findings are positive, and back up what we have been saying about the performance of the aircraft and some of the other requirements to operate from this airport,” he said. The CS100, part of Bombardier’s C-Series aircraft is scheduled to go into service in 2014. If approved for service out Billy Bishop Airport, the aircraft would greatly extend the airline’s potential service, opening up

the entire continent of North America, as well as the Caribbean. Currently, Porter’s longest non-stop route is to Myrtle Beach, South Carolina. It operates seasonal service to Halifax via Montreal. Other longer distance destinations include Thunder Bay, Ontario, Chicago, Washington Dulles. St. John’s in Newfoundland also requires and intermediate stop. As government entities pondered the airline’s future expansion, summer passed and Porter’s Bombardier Q400s rolled off the runway at an airport -- named after World War I Ace Billy Bishop -- bound for destinations in the United States and Canada. Flight attendants in pillbox hats handed out generous snack boxes and complimentary cans of Steam Whistle craft beers and Ontario wines. The airline is named after hotel porters, people who have long made life easier for weary travelers by lifting baggage and easing burdens. That philosophy drives the airline’s service, said Cicero. “The whole value proposition, or the Porter Experience, as we like to call it is set

at a premium level,” he said. “We try to make it relatively simple, hassle free, maybe a little retro in a certain sense in terms of what people get for their money.” What passengers get is more than a complimentary snack box with fresh sandwiches, muffins and salads (handled by daily service from Gate Gourmet) and the aforementioned free beverages. The airline’s location gives traveler’s easy access. Located only a couple kilometers from downtown Toronto and close to the financial district, Billy Bishop Airport is connected to mainland the Hanlan’s Point Ferry. Construction is now taking place on a pedestrian tunnel by the Toronto Port Authority, which would connect the island to the mainland by foot. Last year, Porter Airlines carried a total of 2.5 million passengers, a record year for an airline that was formed in 2006. It currently operates a fleet of 26 Q400s laid out in single class 2-2 configurations with a 34-inch seat pitch. If allowed to operate the CS100s, Cicero said Porter would outfit them in two-class cabin. c

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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10/9/2013 10:17:04 AM 2013-09-17 8:59 AM

LS Travel Retail North America

Porsche Design will offer exclusive accessories, including travel accessories, eyewear, watches, jewelry and apparel for both men and women, as well as its own branded fashion collection

WORLD CLASS ON THE WEST COAST A

t press time, LS travel retail North America (LS) was preparing to open its first retail and F&B locations at the new Tom Bradley International Terminal (TBIT) at Los Angeles International Airport (LAX). With over 63 million passengers a year, the ever-growing airport is the sixth busiest in the world and a central gateway for US air travel, especially between the US and the Asia Pacific region. Americas Duty Free sat down with Vadim Motlik, LS’ Chief Development Officer, to talk about the new openings at LAX, the operator’s successes at other North American airports and business in general during the first half of the year. Indeed, the newly renovated TBIT is the center piece of LAX’s US$4 billion Capital Improvements Program, the biggest public works project in the history of Los Angeles. The Terminal features two stunning concourses and 18 gates—9 of which can accommodate the A380—that are able to welcome 4,000 passengers an hour. “LS’ proposed concepts were developed specifically with the LAX traveler in mind,” says Motlik. “We’ve worked closely with all partners, including Westfield, Concourse Concessions Inc., Concessions Management 40

LS travel retail North America prepares to open nine retail stores and seven F&B concepts at Los Angeles International Airport’s new Tom Bradley International Terminal by RYAN WHITE

Inc. (CMI) and our brand partners to develop LS another iStore and a RELAY at George store designs that are in line with TBIT’s stun- Bush Intercontinental Airport in Houston, ning architecture. which demonstrates the consistency of our Westfield Concessions Management is relationship.” in charge of developing the terminal’s nearly “With our new partnership 90,000 square meters of soon to open in LAX TBIT, retail space. Westfield we are diversifying and issued an RFP for retail expanding significantly and F&B locations at TBIT in March 2012, and into F&B, which enables LS teamed up with the us to provide more locally-based Concourse comprehensive solutions Concessions Inc. to win to our airport partners.” a retail package of nine locations—including Vadim Motlik, Chief Development both travel essentials and Officer, LS travel retail North America specialty retail concepts such as Porsche Design, iStore, Malibu Shades, Bienvenida Flowers Targeting shoppers & Gifts and 7-Eleven—and CMI for an F&B Porsche Design, iStore and RELAY are all package of seven restaurants. expected to open this fall in TBIT’s upscale “LS has been working hand-in-hand with Great Hall. This 14,000-square-meter TBIT the Westfield Management team for a few years centerpiece features a spectacular mall-like on some exciting projects,” Motlik explains. architecture and hosts a unique collection “Westfield was our partner when we launched of luxury brands. The Great Hall will offer our first US iStore in Boston Logan Interna- world-class dining, retail shopping and club tional Airport and our first Porsche Design lounge facilities. store at JFK. Last year, Westfield awarded “Unprecedented in North American air-

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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pen at m

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LS Travel Retail North America ports, Porsche Design will reflect LS’s ability to develop specialty retail concepts that are aligned with the brand’s identity while blending in with a unique airport environment,” Motlik told Americas Duty Free. “The store will be a perfect balance between the glamour associated with Los Angeles’ coveted Hollywood and Beverly Hills districts and Porsche’s reputation for quality and craftsmanship.” The store will offer exclusive accessories, including travel accessories, eyewear, watches, jewelry and apparel for both men and women, as well as its own branded fashion collection. Tailored to LAX’s affluent consumer base, Motlik says the assortment will bring a touch of “Deutsche Qualität” to LAX and allow the airport to offer a retail scene comparable to top-quality luxury outlets. Close to Porsche Design, iStore will cater to TBIT’s busy and demanding travelers—specifically 18-29 year-olds and business travelers, which respectively make up 38% and 57% of TBIT’s guests—with solutions ideal for improving the airport and travel experience. Featuring personal mobile devices and “accessories for your digital life,” including tablets, cameras, e-readers and headphones from leading brands Apple, Sony, Bose, Targus and many more, iStore is one of the fastest-growing airport specialty concepts in the region. The only Apple specialist with over four years of experience in North American airports, the brand enjoys a 20-year relationship with Apple and offers a unique shopping experience, allowing travelers to directly interact with mobile technologies. Still in the Great Hall, LS will open a 167-square-meter RELAY store, the operator’s leading news and convenience brand. Indeed, there are 1,300 RELAY stores in 21 countries, including Europe and Asia, making the brand

a truly worldwide phenomenon. The store will provide everything travelers need, from a large selection of media items to snacks, confectionery and beverages. “The store will also feature a large selection of local gifts and souvenirs reflecting the City of Los Angeles and the State of California,” explains Motlik. “As the only true global convenience brand, RELAY will further position TBIT as a world-class international Terminal.” Also opening in the fall, an 80-squaremeter The Economist store—modeled on the eponymous British news magazine—will strengthen the Terminal’s travel essentials offer while bringing variety to the airport. Slightly more geared towards the airport’s 36 million business travelers, the store has been designed to be easily navigated; the open plan and uncluttered display will allow customers to find what they want quickly and efficiently. Following these first four openings, LS will open five additional stores in TBIT next year, including a second iStore, a USA TODAY

The only Apple specialist with over four years of experience in North American airports, iStore enjoys a 20-year relationship with Apple

Travel Zone, the first 7-Eleven location in a US airport and two new kiosks in the Arrivals area: Malibu Shades and Bienvenida Flowers & Gifts.

F&B an important adjunct Also venturing into the F&B business at LAX, LS has partnered with LA-based CMI and won a package of seven restaurants in the Tom Bradley International Terminal. The line-up combines luxury concepts, including Petrossian’s Champagne and Caviar Bar, developed in cooperation with the world’s premier buyer and importer of Russian caviar; national brands such as III Forks, a steak and grill fine dining concept; and local favorites such as James Beach, a Venice Beach staple renowned for serving LA’s best fish tacos. The first restaurants are scheduled to open this fall. “Working with CMI has been a success thus far,” Motlik tells us. “We’ve been managing the business as true partners, and not just a voice on the phone. As a result, we have gotten to know the CMI team face-to-face and have developed sincere relationships, sharing knowledge and best practices. “There is trust and confidence that we have the same objectives,” he added. “We know together we can change the game for airport experiences, both on the landlord and consumer fronts.” Indeed, Motlik tells us that F&B is expected to reach into the double digits for LS in terms of share of total sales by next year, and by that time F&B sales will have grown to six times what they were last year. He tells us that travelers in North America can expect to see much more from LS in this regard in the future. “It’s an interesting growth rate,” Motlik says. “F&B has now become a meaningful piece of business that we intend to continue to grow

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The Economist will feature an open plan and uncluttered display that will allow customers to find what they want quickly and efficiently

LS Travel Retail North America

A USA TODAY Travel Zone store will be opened at TBIT in 2014

where we believe we can make a difference in the experience being provided to travelers.”

The business as a whole A successful year for LS, the first half of 2013 also marked the opening of exciting travel essentials, specialty retail and F&B concepts in both new airports and airports where the company is already operating. At Dallas Fort Worth International Airport’s Terminals A, B and E, LS was awarded eight stores, including iStore, 7-Eleven, Texas Territories, ARTIZAN and Sierra News, which are slated to open later this year. Geppetto’s, a California-based kids concept, as well as a USA TODAY Travel Zone, have already opened. At Detroit Metropolitan Wayne County Airport McNamara Terminal, LS won a retail package of four locations, including The Economist, Porsche Design and Michigan Sports, a concept dedicated to sports aficionados. Furthermore, at Denver International Airport’s Concourse B, LS is launching the 100% local Steve’s Snappin’ Dogs, which offers a large selection of one-of-a-kind hot-dogs and sandwiches, combined with a micro-brewery. At Houston George Bush Intercontinental Airport’s Terminal B, LS recently opened a RELAY and an iStore, and at New York-JFK’s Terminal 8, LS recently opened an iStore and a Porsche Design location. And as if the above weren’t enough, LS just renewed its partnership with Montreal Airport to redevelop its specialty retail program and open new concepts such as the Quebec-based world-class entertainment company Cirque du 44

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Soleil and a Montreal-tailored version of LS’ proprietary Gift & Souvenir brand Discover, called Decouvrir Montreal. “In Los Angeles and everywhere the company operates, LS has been successfully developing programs to enhance the level of engagement of all its platforms, including through a partnership with Gallup, a world leader in measurement of human behavior,” Motlik explains. With the implementation of initiatives such as the Great Manager Program, LS has built what Motlik refers to as “a customer-centric culture and a talent-based development philosophy,” even employing an internal network of certified coaches helping the team develop its inner talents. Considered best-in-class, LS is scoring in the top 10% in the customer service

index of the Gallup survey and in the top 25% in the Gallup Q12 employee engagement index. As evidence of the strong results that LS has achieved in this regard, Motlik tells us that the operator recently won the 2013 Great Workplace Award from Gallup, positioning itself as “one of the most engaging companies in the world.” Multiple criteria were considered when decided which companies would receive the honor, including overall engagement levels and key business metrics, with the end goal being to recognize outstanding companies for their ability to create motivating work environments. “LS travel retail offers well-recognized brands such as RELAY, iStore, USA TODAY Travel Zone, Porsche Design, The Economist and 7-Eleven, which positions us well to continue to grow strongly in retail in North America,” Motlik concluded. “With our new partnership soon to open in LAX TBIT, we are also diversifying and expanding significantly into F&B, which enables us to provide more comprehensive solutions to our airport partners. LS is very excited for what the rest of the year holds and we will continue to dedicate ourselves to designing exceptional airport stores and fostering outstanding customer service.” c

N F

WWW.RO

LS travel retail North America’s 7-Eleven store at TBIT will be the first of its kind in a US airport

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GuestLogix

GuestLogix brings over a decade of expertise as a trusted onboard transaction processing partner to airlines, rail operators and the passenger travel industry

SEEING RED

GuestLogix will provide transaction processing services across the inflight entertainment (IFE) solution currently in use by Air Canada rouge

uestLogix Inc. (TSX: GXI), a leading global provider of onboard retail and payment technology solutions to airlines and the passenger travel industry, recently announced a multi-year payment processing agreement with Canada’s flag carrier Air Canada (TSX: AC) to provide transaction processing services across the inflight entertainment (IFE) solution currently in use by Air Canada rouge. Air Canada rouge is Air Canada’s new leisure airline, part of the new Air Canada Leisure Group, along with Air Canada Vacations. Air Canada rouge operates a fleet of Boeing 767-300ER and Airbus 319 aircraft sporting an attractive new livery and interior designed to reflect the airline’s relaxed and friendly ambience. Initially flights will operate from Toronto and Montreal to vacation spots in Europe and the Caribbean. Air Canada rouge is the only leisure airline that offers a full network of connecting flights, Aeroplan Miles with every flight as well as redemption, and Air Canada Vacations package holidays or flightonly options. The comprehensive payment solution will

allow Air Canada rouge to monetize its player IFE system onboard its existing fleet of Boeing 767-300 and Airbus 319 aircraft, as well as offer secure, PCI-compliant payment processing across its entire fleet to enable the sale of premium entertainment content. Within this agreement, GuestLogix may also act as the merchant of record in any onboard retail scenario that reduces operational complexity. “GuestLogix is proud to partner with Air Canada rouge to deliver a modern and secure onboard retail environment for passengers,” said Brett Proud, President and CEO of GuestLogix. “With inflight entertainment and connectivity solutions evolving at such a rapid rate, GuestLogix is being asked to ensure that certified payment processing becomes a central component to each new solution in virtually every corner of the globe.” Indeed, with the diversity of entertainment options emerging throughout the global airline industry, GuestLogix is rapidly becoming an integral component by integrating seamless, certified, global payment processing capabilities with many of the industry’s largest inflight entertainment and connectivity suppliers and their airline customers.

“GuestLogix is proud to partner with Air Canada rouge to deliver a modern and secure onboard retail environment for passengers.” Brett Proud, President and CEO, GuestLogix 46

by RYAN WHITE

With the launch of Air Canada rouge, the airline has chosen to offer a brand new form of IFE, allowing passengers to stream stored movies, television shows and other entertainment content to their personal devices using Panasonic’s eXW solution. GuestLogix is able to support both of these IFE models in a fully PCI-compliant manner ensuring all payment and sales data are secure. “Based on our research and business plan, it’s clear offering customers world-class entertainment at their fingertips through their own mobile devices is the winning solution both for them and for Air Canada rouge,” said Anton Vidgen, Senior Director, Customer and Technology, Air Canada rouge. “Partnering with GuestLogix ensures the security of payment data for our rouge (economy) customers as they use our player entertainment system and as we gradually build out additional retailing capabilities. We know that with GuestLogix we are using the industry’s most proven onboard payment technology.” GuestLogix brings over a decade of expertise as a trusted onboard transaction processing partner to airlines, rail operators and the passenger travel industry. GuestLogix helps its customers to create, manage, and control onboard retail environments tailored to their needs and their passengers for a truly personalized experience. The company is partnered with global leaders in catering, duty-free and inflight entertainment, offering complete onboard retailing services to airlines and rail operators worldwide. GuestLogix’s global headquarters and centre for product innovation is located in Toronto, Canada, with regional head offices located in Dallas, London and Hong Kong. c

THEMA

THE AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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T H E M AC A L L A N .CO M

THE LAST WORD.

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WDFG’s operations in Cancun, Mexico

World Duty Free Group

PUTTING THE PUZZLE TOGETHER Americas Duty Free examines WDFG’s Latin America business and how it fits into Autogrill’s recently released H1 2013 numbers

edro Castro, International Operations Director at Autogrill-owned World Duty Free Group (WDFG), recently sat down with Americas Duty Free to speak about the company’s latest initiatives in Latin American travel retail. High on the operator’s list of priorities, he said, is a renovation project in Chile’s Santiago Airport that will see arrivals, departures and a number of specialty shops undergo a significant change as a means of better serving traveling consumers. At press time, work on the operator’s main Arrivals duty free shop was scheduled to be completed in early August. At that point, work on WDFG’s Departures duty free store was set to begin. Castro tells us that the project at this location isn’t expected to finish until the end of the year. However, good things come to those who wait, Castro reports, and the work on the Departures store will bring about a spatial increase of approximately 30% when it is completed. “At the same time, we will be renovating our specialty stores—Cava del Vino and Buy Bye—and our duty paid stores in the national terminal,” Castro adds. Indeed, WDFG’s investment in Santiago Airport seems to be well placed. The latest 2013 air traffic statistics (April) indicate that a total of 1,186,446 travelers passed through the airport, of which 534,079 were international 48

passengers, up 1.2% from April 2012. National traffic was up year-on-year for the same month by 18.3%, with the airport servicing 652,367 domestic passengers. Taking a step back and looking at full-year 2012 statistics, though, provides a much clearer picture of the growth in traffic that the airport has experienced over the last year and a half as compared to 2011. In 2012, Santiago Airport welcomed a total of 14,168,282 travelers, an increase of 17.04% compared to the previous year. International traffic increased an impressive 15% year over year, from 5,573,411 travelers in 2011 to 6,753,584 passengers in 2012. Likewise, domestic travel showed sustained growth of 19% over the course of 2012, when the airport welcomed 7,414,698 passengers as compared to 6,232,113 passengers in 2011.

by RYAN WHITE

general state of affairs in Latin American travel retail: “International events such as the FIFA World Cup and Olympic Games being held in Brazil will help drive the overall economy, as well as the travel retail business,” he explained. “Good performances in the global economies of both Chile and Peru mean that these PAX represent a strong customer group in travel retail, which is also very positive.” While Castro declined to give a more detailed analysis of what the second half may hold for WDFG’s Latin American operations, Breakdown of WDFG’s total airport sales by product category

OTHER 13%

First-half results At the time of the interview, Castro wasn’t able to comment on first-half sales statistics, but parent company Autogrill released its H1 2013 results shortly after we spoke, giving a clearer picture of the company’s travel retail & duty free performance. The figures indicated that Autogrill’s travel retail & duty free division posted strong revenues of €922.9 million (US$1.2 billion) in the first half of 2013, up 3.8% on the same period in 2012, or +2% at current rates of exchange. For Castro’s part, he did comment on the

FOOD 12%

PERFUMERY & COSMETICS 44%

TOBACCO 13% LIQUORS 18%

Sales 1H2013 v 1H2012

Perfumery & Cosmetics 3.7% Liquors 2.6% Tobacco -2.1% Food 7.8% Other -8.3%

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World Duty Free Group an Autogrill press statement dated June 30, 2013 addressed the Group’s travel retail business in general, forecasting that “travel retail & duty free revenues in 2013 are expected to be around €2,050 million [US$2,728 million], with EBITDA between €250 million [US$332.7 million] and €260 million [US$346 million] and capital investments in excess of €70 million [US$93.2 million].” Of course, earlier this year Autogrill announced a proportional partial demerger of its travel retail and duty free business, set to take place in October. “The purpose of the demerger is pre-eminently industrial,” the Group said in May. “The formation of two distinct groups focused on their respective Food & Beverage and travel retail & duty free businesses will enable each of them to more effectively pursue its strategies and improve the performance by leveraging its own particular strengths. The separation of the two businesses may make it easier for the financial markets to understand and assess their respective strategies separately, as well as facilitating any industrial alliances in the two markets.” As a result, Autogrill’s consolidated firsthalf results refer to its F&B business only, despite the fact that details were provided about its travel retail & duty free performance. “I’m convinced that the creation of two distinct

Spirits is another popular category across WDFG’s Latin American operations

and independent groups will help release new energy in both businesses and provide greater room for each to express more effectively its strengths and better pursue its objectives,” said Autogrill CEO Gianmario Tondato Da Ruos. “The move will also make it easier for financial markets to understand and assess the specific strategies of each business and will also facilitate the clearer evaluation of

value-creating business combinations as and when these arise. “This half shows marked growth in the airport business,” Tondato Da Ruos said in relation to the first-half numbers. “The trend in the United States was good, and beginning in the second quarter Europe began to gain increasing solidity, with the exception of Italian motorways. Travel retail continues to see excellent income results and strong cash flow generation.”

Brazil’s potential In terms of Brazil specifically, WDFG of course operates travel retail shops in Belem Airport. The operator was awarded a ten-year contract last year and at the time said that it expected the concession to generate overall revenues of over US$30 million in the ten-year span. Indeed, Brazil is a very important travel retail and duty free market, worth an estimated US$900 million. “The country’s rapid growth has boosted airport traffic, with an average annual increase in passenger flows of over 12% for the last eight years,” WDFG said in a stateWDFG’s Cancun operations; here tequila falls under Local Products, a category that has performed particular well for the operator across Latin America

WDFG’s operations in Lima; much like its operations elsewhere in Latin America, P&C is the strongest category in terms of sales

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at TFWA in Cannes

CMY

Please visit us at „Bay Village 11B“!

tions; here tequila cts, a category ticular well for tin America

www.haribo.com

KIDS AND GROWN-UPS LOVE IT SO, THE HAPPY WORLD OF HARIBO AMERICAS TFWA WE 2013.indd 51 Americas_Cannes2013.indd 51

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World Duty Free Group

“International events such as the FIFA World Cup and Olympic Games being held in Brazil will help drive the overall economy, as well as the travel retail business. Good performances in the global economies of both Chile and Peru mean that these PAX represent a strong customer group in travel retail, which is also very positive.” Pedro Castro, International Operations Director, WDFG

ment at the time the tenders were announced. Castro told Americas Duty Free that while WDFG doesn’t currently have any developments to report in the country, the upcoming sporting events mentioned above aren’t the only reason for optimism: “In our view, the privatization of the most important Brazilian airports has opened up opportunities for developing [the] travel retail and duty free business in the region,” he said. “We will be looking into other opportunities with other airports in Brazil.”

Tempting the traveler Of course, suppliers and operators alike are always interested in changing trends in travel retail, and given WDFG’s research-intensive approach to everything from deciding on product mix to determining store layouts, we asked Castro about who has been purchasing in the shops lately. He told us that the top three nationalities in terms of average spend are Russians, Brazilians and Chileans. Those who have read our previous discussions with Castro

will note that Argentineans, previously in the top three at WDFG’s Latin American stores when it comes to high spending nationalities, have been bumped from the list largely due to the devaluation of the Argentinean peso and the resultant decrease in spend on the part of Argentineans. One thing that hasn’t changed for WDFG, however, is its core categories. Castro notes that P&C, Spirits and Local Products remain the top three in terms of sales. We asked about up-and-comers and he told us that brands such as Bare Minerals are breathing new life into cosmetics, while Victoria’s Secret and mid-range fashion watches have also been performing well. In addition to a focus on ensuring that the right products are in the right stores to cater to high-spending passenger demographics, WDFG of course makes a point of running major promotions as a means of increasing basket size and tempting the non-shopper to spend. We ended our conversation with Castro

by asking about what Latin American travelers saw in terms of promotional activities in WDFG’s stores over the summer. Given the strength of Spirits and Local Products, it’s no surprise that these categories were areas of concentration. “Our annual Whisky Fest campaign, which started as a UK initiative, is now global and this year was the first time that our stores in Latin America participated,” he explained. “Other promotions included Viva Peru— focusing on local products—and the Summer Spirits Festival—a WDFG global promotion featuring white spirits such as vodka, white rum and gin.” As part of the Summer Spirits Festival, travelers visiting selected WDFG stores worldwide are invited to learn to make a number of signature cocktails that feature white spirits as the main ingredient. Where permitted, a tasting element is included in the promotion, allowing customers the opportunity to try their creations. In selected worldwide WDFG locations, passengers purchasing two of any of the bottles featured in the promotion receive a GWP and are also invited to take away a recipe card so they can make the cocktail creations featured in the Festival for friends and family at home. While unable to give details on upcoming promotions in Latin America, Castro ended our conversation by noting that WDFG maintains a full calendar of promotional activity, and that travelers in Latin America can expect to be pleasantly surprised during the second half of the year as the holiday season approaches. c

WDFG’s recent promotion, “The Summer Spirits Festival”

WDFG’s operations in Los Cabos

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Shopping China’s flagship store in Pedro Juan Caballero, Paraguay

Shopping China

LOOKING WITHIN

Shopping China focuses on personalization inside its stores and continues concentrating on value coupled with variety to ensure that shoppers keep coming back by RYAN WHITE

hopping China recently told Americas Duty Free that it has seen significant growth in the number of brands that it is working with in several key categories, including spirits, accessories and confectionery. The operator reports a 70% growth in the range across each of the categories and is now working on growing the P&C category in a similar manner. “Our goal is always to incorporate any brands that we work with into all of our stores,” says CEO of Shopping China Felipe Cogorno. “Of course, sometimes that’s not possible so we would then focus on our flagship store in Pedro Juan Caballero, Paraguay. We’ve seen positive results from growing the spirits, accessories and confectionery categories and believe that similar results can be achieved in P&C. “Shopping China is known in the region for carrying all of the best-known worldwide brands, and it’s important that shoppers see this across the whole store, and especially in a category as popular as P&C,” Cogorno added. Another key element in Shopping China’s relationships with its brand partners is ensuring that the products are presented in the best possible light. To this end, the operator has recently undertaken a largescale project in the flagship store that will see all shelving personalized according to brand. When the personalization initiative is complete, Shopping China will then turn its attention toward upgrading displays. Indeed, for many operators, renovations tend to consist of spatial increases where possible, but Cogorno explains that given the fact that Shopping China already has the largest border store in South America, the company can focus on the brands themselves and how they’re presented to the consumer. “To say that our personalization efforts to date have had an amazing effect on the consumer’s perceptions of the brands and the store itself is an understatement,” Cogorno says, “The positive effect can be seen in the sales of the brands. We’ve also seen increasing interest from our supplier partners. As we work with specific brands, we see other brands expressing interest in coming on board and personalizing their spaces as well.”

Rising above adversity As opposed to boosting business, as many would expect, Cogorno tells 54

us that FIFA’s Confederation Cup, which took place in Brazil in June as a prelude to the 2014 FIFA World Cup, actually resulted in fewer cross-border travelers entering the Shopping China’s stores. Given that wait times at the border were longer than usual due to significantly increased traffic, he explains that many travelers decided to forego their trip to Shopping China to save on time.

“I actually envision new stores on the Brazilian side of the border helping our business as they will bring more potential shoppers to the region.” Felipe Cogorno, CEO, Shopping China

Nonetheless, the operator’s sales over the first half of 2013 increased by 20% over the same period last year. “This is a real testament to the work we’ve been doing with our brands,” Cogorno notes. “While a 20% increase in sales isn’t quite as high as we were expecting, we’re still very pleased.” Of course, Shopping China has struggled with the devaluation of the Brazilian Real, which also contributed to a softening of growth over the first half. Nonetheless, Cogorno tells us that the company is committed to using every tool in its arsenal over the second half to make sure sales stay high. Indeed, Shopping China’s successes over the first half in mitigating some difficult circumstances make a good case for the operator’s continued success as the holiday season approaches.

More of what they want At press time, Shopping China was planning a Black Friday promotion in line with last year’s successful event. “Despite being a US holiday,” Cogorno says, “our Brazilian customers are familiar with it. Last year’s

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SOLO LAS MEJORES MARCAS ONLY THE BEST BRANDS

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Shopping China promotion worked very well so we’ll be doing it again this year near the end of September.” Shopping China will offer three full days of promotions at its flagship store with many price-offs reaching up to 50% on popular brands. Last year more than 80,000 shoppers visited the store over the three days of the promotion and the company is expecting similar results this year. “In addition to being known for our variety of products across categories, promotional activity is very important,” Cogorno explains. “One-time shoppers tend to turn into repeat customers when they know they’re getting a great selection at the best price.”

Competing for the customer We asked Cogorno about the Brazilian Government’s decision to place border stores on Brazil’s side of the border, and he told us that for the moment the government is working through the logistics of regulating the stores. After that, he said, it will take some time to build the stores so for the moment it’s not something that’s affecting Shopping China’s business. When the stores are up and running, Cogorno notes that Brazilians purchasing there will likely have to pay taxes on what they buy, meaning that crossing the border to Paraguay will still be a very attractive option. Additionally, Paraguayans pay only a small amount in taxes when purchasing at border stores within Paraguay, meaning that Shopping China will still be able to count on its important Paraguayan clientele base. “I actually envision new stores on the Brazilian side of the border helping our business as they will bring more potential shoppers to the region,” Cogorno says. “As long as we continue to make sure that our offer is competitive with strong promotions and marketing, consumers will search out the option that best meets their needs for variety and pricing.” Finally, the fact that Shopping China has been a fixture along the border between Brazil and Paraguay for the last 80 years certainly goes a long way toward ensuring that consumers will continue to visit its shops despite increasing competition in the region. The company has come a long way since its inception in 1933; in addition to its retail stores in Pedro Juan Caballero and Salto del Guairá, Paraguay, Shopping China runs successful chains of auto parts stores, gas stations and food courts, possesses a large fleet of heavy and light trucks, and utilizes fully computerized warehouses that track orders from the US, Europe, Central America and Asia.

Cogorno tells us that Shopping China’s success has more than a little to do with the way it does business. While the stores are indeed expansive and there’s no doubt the company is a force to be reckoned with in Latin American duty free, Shopping China is still a family-run company with the roots of its business philosophy planted firmly in customer service. “Shopping China’s achievements and successes are due to the tradition that started with the company’s inception in 1933,” Cogorno concludes. “Our customers come to our stores looking for quality and diversity, which we have the responsibility to provide.” c

Shopping China has worked hard on making sure its flagship store contains personalized brand spaces to display the products in the best possible manner

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London Supply’s Puerto Iguazú store pictured as it is today; by the first quarter of 2014 the store will double in size

London Supply

A bright future

ctober is an exciting time for everyone in the industry with TFWA WE—the biggest travel retail exhibition in the world—taking place in Cannes, but for London Supply the annual event marks a particularly exciting time in the company’s evolution. The operator is working in earnest toward the Q1 2014 inauguration of its completely renovated Puerto Iguazú store and will take the opportunity that the exhibition presents to work through the final details of the new brand spaces with its supplier partners. Americas Duty Free sits down with Commercial Manager of London Supply Magdalena Ducos to discuss everything from the new store and sales so far this year to the operator’s ongoing corporate social responsibility work and its famous promotional activities. Ducos tells us that the new Iguazú store will be double the size of the existing location, and while specifics can’t yet be discussed, she assures us that London Supply’s focus on delighting travelers will remain as sharp as ever. Americas Duty Free: How have sales been for London Supply so far in 2013? Magdalena Ducos: The second trimester of the year was really a continuation of what was happening in the first trimester. We’ve seen an important rise in average basket, due largely to the favorable exchange rate at the moment. We also saw a stable sales growth at the end of the last trimester versus the first quarter of the year—about 25%. Of course, apart from the exchange rate helping sales, it’s important to note that our duty free store in Puerto Iguazú is recognized 58

Americas Duty Free speaks with Commercial Manager of London Supply Magdalena Ducos about her optimism for the future by RYAN WHITE

as a tourist attraction in its own right and a nice adjunct to Iguazú Falls National Park. Indeed, we’re humbled that our store has played a part in helping to increase the number of people visiting the area. In fact, many travel agencies include us in their itineraries given our commitment to ensuring that shoppers are always surprised with something new when they enter the store.

London Supply, we’ve done everything from kiosks with samples and games that require shopper participation to choreographed dances that incorporate the clientele and decorations with 200,000 lights that pulse to the beat of the music we’re playing in store. We’ve even recently put on an electronic music party with a DJ, dancers, a bar and an LED dancefloor.

ADF: Speaking of making sure that shoppers see something new every time they enter the store, I know you regularly have some great promotions. Can you tell us which suppliers you’ve worked with lately on the promotional side of things?

ADF: It’s clear that London Supply puts on a great show for shoppers. Can you articulate your philosophy when it comes to this type of activity? MD: The goal is always to get people participating and in this sense we always try to make

“We’re currently working on doubling the size of the Puerto Iguazú store and we’re in the middle of construction now with the inauguration of the new space expected to take place in the first quarter of 2014.” Magdalena Ducos, Commercial Manager, London Supply

MD: Over the last couple of months we’ve worked on a variety of noteworthy promotional activities with our supplier partners, including Pernod Ricard, Big Pony, Kit Kat, Toblerone and Diageo. As is our custom at

our promotions irresistible! Just as we try to pleasantly surprise our clientele, we’ve found that they never cease to surprise us with their joy and passion in enjoying our activations. Stemming from the creative ideas of our

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guazú store the first quarter ble in size

mmercial ena uture

London Supply goes big when it comes to helping supplier partners promote their brands; pictured is a recent activation for Big Pony

President Teddy Taratuty, and thanks to a tireless staff that never ceases to amaze us, we always strive to create emotional connections on a human level. Of course, at the end of the day it’s clear that our focus also makes good business sense given the sales results we achieve and the fact that clients aren’t just remembering that they bought high-end products after leaving our store; they’re also remembering the happy experiences they had. This effect can’t be underestimated when it comes to return visits and recommendations to friends and family. ADF: Can you give us an update on the expansion project for the Iguazú store? MD: As you know, we’re currently working on doubling the size of the store and we’re in the middle of construction now with the inauguration of the new space expected to take place in the first quarter of 2014. We’ve defined the new category spaces and how they’ll look, but of course everyone is going to have to wait until opening day to see for themselves! What I can tell you, though, is that the new space will be aligned with the existing store in terms of our concentration on the element of surprise and fostering an unforgettable experience for shoppers. ADF: Can you give us an update on your corporate social responsibility activities in the Puerto Iguazú community? MD: In March of this year we inaugurated Don José Tararuty Secondary School, following the construction of Doña Mercedes García de Taratuty primary school that we built three years ago in September, 2010. In

this manner, when the children at the primary school graduate they will move on to our secondary school. About 1,200 children are expected to study at the educational complex as a whole, where they’ll receive first-class education, social support, nutritional meals and the opportunity to play soccer on a regulation-sized field, as well as other sports such as basketball, handball, volleyball, karate and more. On another note, I’m happy to report that our Children’s Orchestra now has 150 members who have found a passion for music. Their talent is growing everyday and when you listen to them it’s clear that they’ve got a great future ahead of them. And if the above weren’t enough, we’ve also laid the first bricks for the Teresa de

Calculta Mother and Child Center, which will complete the educational complex by helping both expectant mothers during their pregnancy and those with babies up to 45 days old by giving advice on proper hygiene, nutrition and general care—the end goal being to make sure that every child in the neighborhood is given the right to proper physical and mental development so that they can start primary school at the age of four. As such, we’re really trying to help children from birth straight through to finishing secondary school so that they can start their adult lives at the age of 18 healthy, happy and educated. Finally, we’re also building the Church of the Blessed Juan Pablo II with the objective of rounding out the social necessities of the neighborhood by forming a community full of values that can be passed onto the children. ADF: For the second half of the year, what are you expecting in terms of sales? MD: Our goal is to maintain the healthy sales growth we’ve seen so far this year, and perhaps even improve on this given that the holiday season is always very busy. Of course, this depends to some extent on the exchange rate remaining stable, but we’re generally optimistic given that sales are normally strong in the third and fourth quarters of the year.

Last year’s Christmas decorations at London Supply’s Puerto Iguazú store featured an astonishing 200,000 lights and stand as a perfect example of how the operator goes the extra mile to create an experience for shoppers

ADF: Will you be at Cannes this year? What are your objectives for the show? MD: Of course we’ll be there! Our concentration this year will be to finish our planning for the new store with our supplier partners, from the product mix to making sure that we’re presenting each of our valued partners’ brands in the light that they deserve to be presented. We’re looking forward to seeing friends both new and old as we work toward making the future a reality with the exciting renovations taking place at the Iguazú store. c

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

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The new Shiseido space at Peace Arch Duty Free

Peace Arch Duty Free

The good kind of

CHANGE

With more traffic, increased sales and major renovation plans, Peace Arch Duty Free President Peter Raju tells Americas Duty Free that he’s optimistic for the second half of the year

he Peace Arch Duty Free Shop in Surrey, British Columbia tells Americas Duty Free that it continues to show double digit increases in sales in all categories. As of August 2013, the company’s sales increased by over 15% from the previous year. A testament to the success of Peace Arch’s longstanding commitment to offering high-end products that travelers can’t find at other border stores, the operator reports that the strongest increases have been shown in the cosmetics and luxury goods categories. Peace Arch Duty Free’s facilities were opened in July 2006, and the company’s 2,415-square-meter duty free store is one of the largest in North America. Due to the high volume of traffic and positive sales results, the operator has announced that it is undergoing major renovations in its cosmetics and liquor sections, with Lancôme and Shiseido already having installed new fixtures. The company has allocated CAD$1 million (US$952,000) for the renovations with an eye toward continuing to reflect the luxury shopping experience for which the store is known. President of Peace Arch Duty Free Peter Raju tells Americas Duty Free that despite being recently added to the product mix, Michael Kors handbags and watches have been selling well by virtue of the fact that the brand is exclusive to the operator at that border crossing. “In fact, luxury watches in general is a category that has been performing extremely well,” he adds. In terms of the cosmetics category, Raju tells us that both Shiseido and Estée Lauder have doubled their business at Peace Arch’s store over the first half of this year. “The reason 60

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for the increase in sales across categories has a lot to do with the fact that traffic has increased by about 20% since construction at the Peace Arch crossing was completed,” he explains. “The number of lanes has now tripled at the border and there are more customs officers on hand, making the process much quicker. In relation to the increase in overall traffic, we’re seeing an increase in Asian shoppers specifically, which bodes well for our luxury offerings.” Shiseido has told Raju that their sales at Peace Arch top sales at any other Canadian land border store. With the newly redesigned Shiseido area, which includes more space, bespoke branding and a newly tiled floor, Raju expects shoppers to continue to be drawn to the brand. The spirits category is also performing well for Peace Arch Duty Free and will be included in the upcoming renovations. While exactly what will be done to the category is still being worked out, Raju tells us that the space will be in line with other categories in terms of the focus on luxury. Indeed, Peace Arch Duty Free has tapped into a shopper demographic hungry for highend brands, and if the double-digit increase in sales weren’t enough proof, Raju notes that the most recent statistics on average spend underscore the fact that travelers are responding to the operator’s focus on luxury. The average basket stands at around CAD$60 (US$58), significantly higher than most other Canadian border stores. We spoke with Raju as the summer was coming to a close, and given the fact that the season is a busy time for Peace Arch Duty

by RYAN WHITE

Free, he told us that promotions weren’t much of a concentration. He did, however, point to American Thanksgiving as a time when promotional activity—specifically in the spirits category—will see an uptick. And a little further down a road, of course, as travelers begin their holiday shopping in earnest, they’ll be able to find great deals across categories at Peace Arch Duty Free’s store as the operator makes every effort to capture the imagination of consumers in the gifting spirit. “With the increase in sales that we’ve experienced, the renovations and the busy holiday season coming up, it’s an exciting time for Peace Arch Duty Free,” concludes Raju. “We’re looking forward to pleasantly surprising our clientele in the months to come with the changes we’ll be implementing.” c

The new Lancôme fixture at Peace Arch Duty Free’s store

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e Arch Duty Free

ore

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Importations Guay

In addition to Spirits, P&C is another popular category at Importations Guay’s stores

Northern exposure

A recent Hendrick’s Tea Time promotion is a great example of how Importations Guay makes an effort to differentiate itself from the domestic market through experiential promotions

by RYAN WHITE

mportations Guay operates three border shops in Quebec located at the St-Bernard-de-Lacolle, Stanstead and Stanhope border crossings. Americas Duty Free sat down with Vice President Justin Guay to discuss business at the shops and Canadian land border travel retail in general. “I think generally things have been challenging in Canadian land border duty free over the last couple of years largely due to the exchange rate,” he tells us. “The Canadian Dollar was very strong compared to the US Dollar, but now that’s dipped. In the case of our stores, we’re seeing a small increase in the number of American shoppers lately, but we’re still catering to about 65% Canadians.” Despite the fact that fewer Canadian are shopping lately, Guay says there’s an upside to the increase in American clientele in that they tend to spend on average $20 or $30 more per transaction than Canadians. “Whereas Canadians are more specific about what they buy, we’ve found that Americans like to look around a little bit more and may be swayed by impulse items,” Guay explains. “The challenge is to get more Americans in the store on a sustained basis.”

Keeping it interesting Of course, product mix is key in any duty free store when it comes to attracting clientele, and Importations Guay makes a point of ensuring the offering stays fresh. The operator’s top three categories in terms of sales are Tobacco, P&C and Spirits, and as such Guay tells us that he puts a lot of work into ensuring that important demographics can find the products they’re searching for in these categories. In skincare, Asian favorite Orlane has recently been added and the L’Occitaine range has been expanded given its popularity with consumers. Another clear Asian favorite is Icewine, and Guay tells us that the offering in this subcategory is substantial. “Ensuring that we’re listing travel retail exclusives is another great way to differentiate the offering from the domestic market,” Guay explains. “As such, shoppers can find products like The Balvenie Triple Cask 12, 16 and 18 YO whisky.” In fact, Spirits fans who enter any of Importations Guay’s shops will notice that the category has been very dynamic of late, featuring tried and true favorites such as Maker’s Mark and Jim Beam products, as well as offerings like Macallan 1824 and Oscuro, all of which tap into a trend that Guay has noticed toward aged Scotches and bourbons. Despite traditionally selling a lot of white spirits, another popular subcategory at the stores is dark rum: “Our white rum sales have always been very good, but recently we’ve had some customers asking for more dark rums,” says Guay. “We’ve listed Mount Gay Eclipse and Black Barrel,” he continued. “Pyrat XO was also just listed and we’re planning on listing Pyrat Cask

Dynamism in key categories attracts consumers looking for deals and duty free exclusives to Importations Guay’s stores 1623 as well given the good response to XO.” Of course, this isn’t to say that Importations Guay has taken its sights off white spirits. The operator recently ran a large-scale promotion in cooperation with William Grant & Sons which saw the popular Hendrick’s Gin Tea Time gift packs on offer. In its trademark quirky, curious style, Hendrick’s installed a jumbo Tea Time pack in the Spirits section measuring eight feet tall.

Opportunity knocks As mentioned above, Guay sees great potential in attracting more American shoppers to Canadian land border stores, and says that the National Marketing Campaign, spearheaded by Canada’s Frontier Duty Free Association, has begun to target American cross-border travelers. “The recent allowance videos—as seen on the FDFA Canada Youtube Channel—that were created in English and French as part of the National Marketing Campaign were directed at both Canadian and American shoppers, which is great,” Guay explains. “I don’t think Canada has done enough to promote itself in the US, particularly in the Northern Border States so this is a step in the right direction. It’s about getting the Americans in the stores; once they’re there, they tend to realize pretty quickly that our prices are very competitive with the US domestic market. “I know that the Frontier Duty Free Association has more planned to target US shoppers,” he concludes, “so I’m very hopeful that we’re on the verge of a real step change when it comes to Americans seeing the value offered by Canadian land border duty free.” c

“Whereas Canadians are more specific about what they buy, we’ve found that Americans like to look around a little bit more and may be swayed by impulse items. The challenge is to get more Americans in the store on a sustained basis.” Justin Guay, Vice President, Importations Guay

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IAADFS

TAKING CARE

IN FU

OF BUSINESS Executive Director of IAADFS Michael Payne tells us that this year’s show was well received and that the organization will again focus on ensuring lots of business gets done at IAADFS 2014 by RYAN WHITE

ichael Payne, Executive Director of the International Association of Airport Duty Free Stores (IAADFS), sat down with Americas Duty Free to discuss ongoing plans for the 2014 IAADFS Exhibition. While it was still early (we spoke in late August), Payne did reveal a number of changes that will take place in 2014 while discussing the many merits of the show, which has become a must-attend event during the year for travel retail suppliers and buyers alike from the Americas and beyond.

Americas Duty Free: What was attendee feedback like for this year’s IAADFS exhibition? Michael Payne: We’ve done a very thorough analysis of the feedback and I have to say that it was essentially all very positive. People enjoyed the show and the comments relating to the

“Social events were well received and networking is very important, but these comments about the business conducted are very important because the exhibition is meant to be a business-driven environment.”

Michael Payne, Executive Director, IAADFS

business conducted on the tradeshow floor were very powerful. Social events were well received and networking is very important, but these comments about the business conducted are very important because the exhibition is meant to be a business-driven environment. ADF: Is there anything you’re planning on changing for next year, whether in relation to the social activities or the exhibition itself? MP: I think the social activities on Sunday were very successful, but we didn’t get the attendance we were hoping for at the soccer event, so we’ll be looking at what we can do in this regard next year. We’re also going to try to have extended registration hours, perhaps on Sunday night, because on Monday morning the lineup at registration tends to get unwieldy for a brief period. As for the exhibit hall we are always exploring ideas to improve it and expand it to accommodate space requests. In terms of other changes, we’re going to try to offer more of a variety when it comes to food options, both outside the exhibition hall on inside on the floor. The Gala Dinner feedback was very positive and people seemed to enjoy the evening, so while there may be some small changes it will generally be the same format. Finally, we’ve worked hard to make sure that internet is free in the exhibition hall, and as you know it’s also free in the lobby, but some people were unhappy with the fact that they needed to pay for internet when in their room, so we’re trying to address that. ADF: I know it’s early to be asking, but do you foresee an increase in exhibition space for next year? MP: There was some expansion this year. There are opportunities next year to put more people in the hall, but this really depends on what returning exhibitors want in terms of booth size. If a lot of companies come back to us wanting to increase the booth size, we’ve certainly got some options open. However, it is still very early and in fact we’re just getting ready to mail out registration packets, so by the time TFWE rolls around we should have a

CHR

FROM TO A P

The Ch innovat famous pressin chronog simple o’clock counter

much better idea of where the show is heading in terms of space requirements. ADF: What advice would you give to new exhibitors at IAADFS? MP: I would say as soon as you get the attendance list, which we mail out as soon as we reach a critical mass of buyer attendees, start working with it. There’s not a lot of walkby presence at our show, so it’s important for suppliers to square away their time with the buyers as early as possible. Of course, it’s also important to get your booth design clarified as early as possible. ADF: What would you say to someone who hasn’t yet attended IAADFS but is thinking about it? MP: Certainly one of the big advantages is the positive buyer to supplier ratio—almost two to one. It’s a great opportunity for buyers because they can see a lot of products under one roof over the course of three days. It’s very cost-effective largely because we try to make it predominantly businessto-business. There are some social activities, yes, but for the most part we understand that people are making an investment when they come to Orlando and as such we maintain a clear business focus. ADF: Lastly, what issues or threats are you keeping your eye on in the industry at the moment? MP: The main issues still revolve around the potential changes in January 2014 to liquid and gel restrictions. While it’s an EU-driven initiative, this will of course affect passengers all over the world. Additionally, there are still country-level issues related to the sale and control of tobacco products and we need to ensure that we stay compliant as an industry while at the same time making sure that we educate the traveling public on what products they can purchase and it what quantities and importantly what they can carry through on transfer/connecting flights. c

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The Delta Grand Okanagan in Kelowna, BC, the venue for the next Business and Professional Development Summit

Frontier Duty Free Association

A team effort

by RYAN WHITE

The FDFA continues its government relations work and prepares for the November convention as it builds on its highly successful national marketing campaign

mericas Duty Free recently had the opportunity to speak with Laurie Karson, Executive Director of the Frontier Duty Free Association (FDFA), and Abe Taqtaq, President of the FDFA, about the importance of government relations, the organization’s ongoing national marketing campaign, the upcoming FDFA Convention and the 2014 Business and Professional Development Summit. We learned that whether working with the Canadian Border Services Agency to wrap up the strategic review or developing new projects for the marketing campaign, collaboration is what keeps the land border duty free industry in Canada moving forward at a steady clip. Americas Duty Free: You’ve recently released videos aimed at educating both Canadian and American cross-border travelers about allowances. Can you tell us what the response has been? Laurie Karson: From the end of June to the beginning of August we had over 60,000 unique web visitors, with a healthy 29% of those being Americans. Importantly, we’ve hit almost every US state and Canadian province. When producing the videos, we researched The FDFA’s recent allowance videos have hit the mark in terms of their target audience, with Canadians and Americans making up the lion’s share of the 60,000 views the videos have earned in just over a month Other

France United Kingdom Japan

Canada

United States

the best way to communicate the allowance information, which can sometimes be confusing, and I think this has helped. Furthermore, the videos are available in English and French for Canadian viewers. In terms of Canadian land border duty free, we’re all individual stores but we’re stronger if we work together. The idea of collaboration is important and we’ve been communicating

“In terms of Canadian land border duty free, we’re all individual stores but we’re stronger if we work together.” Laurie Karson, Executive Director, FDFA

this to operator members for quite some time now. In the case of the videos they really listened, and I think the effects of this team effort can be seen with the popularity of the allowance videos. Ten stores are currently featuring the videos on their websites and many more are running the videos on a loop in the stores. Some stores are even looking at the possibility of bringing in information kiosks to help consumers understand how much they’re able to buy. Abe Taqtaq: The videos are certainly a great example of how the stores are really coming on board for the national marketing campaign. The FDFA does its part by fostering awareness of a particular initiative and the stores really give it that extra push. This is definitely a theme we’d like to continue into the next phase of the national marketing campaign. ADF: And we understand that the next phase of the national marketing campaign is already underway, is that correct?

AT: We established a number of short-, medium- and long-term goals that came out of the Business and Professional Development Summit held in May of this year. We’ve already hit the ground running in terms of the research we need to do to meet these goals, and you’ll see initiatives both large and small coming out every few months through to the end of 2014. LK: We recently held a webinar with opera-

tor members to show them what the national marketing campaign has already achieved and to bring them up to speed on some key research being done. We’re happy to note that the operators feel just as strongly as we do about continuing the collaborative effort. It’s clear that we achieve the strongest results when we’re all working together toward a common goal. ADF: You’ve certainly got your plate full with the national marketing campaign, but I understand that you’re continuing to work with the Government of Canada to ensure that land border duty free remains top of mind. LK: Government relations is really first and foremost for the FDFA. We’re regulated by the Canadian Government and our goal is and always has been to make sure that our industry stays vital. Actually, the idea of collaboration is also very important when it comes to government

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“The national marketing campaign is high on our list of priorities, but our number one concern is ensuring good relations with the Canadian Border Services Agency and finalizing the last part of the strategic review that has been ongoing over the last couple of years.” Abe Taqtaq,President, FDFA relations. We’re currently working on an internal collaboration tool whereby the stores can live chat on different issues, whether it be the national marketing campaign or government relations. The tool will have a multimedia component, effectively allowing stores to share photos and other information, so it’s not just text-based. There will also be an update function so that progress on any specific action item can be easily tracked. AT: It’s really about creating a platform and providing a framework for the exchange of ideas. This is critical in business these days, not just in terms of increasing sales but, as Laurie mentioned, in government relations as well. Indeed, the national marketing campaign is high on our list of priorities, but our number one concern is ensuring good relations with the Canadian Border Services Agency and finalizing the last part of the strategic review that has been ongoing over the last couple of years. Of course, within the industry we’ve all always spoken on the phone and communicated by email, but the new internal collaboration tool will add another level of depth to our discussions. It will be an interesting rollout in the sense that it will take some time for people to get used to it, but our vision is to eventually have everyone checking on a daily basis, posting updates on topics of interest and essentially sharing information more easily. ADF: What else can we expect to see from the FDFA in the next year or so in relation to the national marketing campaign? LK: One of the projects we’re very excited about is that at the beginning of the high season we’re going to organize a “duty free week,” which will be given a more official name in the near future. One of the things that really hit home at the Business and Professional Development Summit is that we need to do more work to communicate the unique and positive customer experience that differentiates Canadian land border duty free from domestic retail. As such, the week will be about

shining a spotlight on duty free and showing both current and prospective customers what we’re all about. We’ll have more details on this as work progresses. Additionally, next spring we’ll have a mobile application and a mobile-optimized website developed that will in many ways mirror and reinforce what’s communicated on the www.dutyfreecanada.com website. It will feature border wait times, allowance information, videos and much more. AT: The duty free week is really an extension of what we started a couple of years ago. Now that we have built up awareness considerably, we’re taking it to the next level. We’re thinking of possibly linking it to a charity, having barbecues and just generally making it a really fun week that showcases what our industry is really about and the positive experience that people can expect to have when they walk into our stores. In much the same way, the mobile app is the next logical progression to the website and the work that we’ve done on Facebook over the last two years. We have to remember that we’re dealing with people who are on the go, so it makes sense to offer them the information they need in the palm of their hand. LK: Linked to the upcoming duty free week, we’re also working on a new video that highlights the positive experiences that duty free customers have. We’re staying very true to our original objectives, which included ensuring that we’re concentrating on initiatives that can be implemented industry-wide. Other upcoming activities that are on the to-do list include staff training and polling shoppers and non-shoppers alike. AT: Of course, it’s still very important for us that we get the support of operator members on all of these initiatives, and many of these ideas will be introduced in November at the annual FDFA Convention and presented in more detail at the next Business and Professional Development Summit. We definitely want to move forward with all of these initiatives, so it’s now a matter of discussing with

The FDFA created a number of videos to specifically target English- and French-speaking Canadians, as well as Americans

operators what we should concentrate on in 2014 and what can perhaps be implemented in 2015. ADF: Speaking of the upcoming FDFA Convention and the 2014 Business and Professional Development Summit, can you give me an update on the events? LK: The Business and Professional Development Summit will take place on May 6 and 7, 2014 in Kelowna, BC, with the annual golf tournament, jointly hosted by Pernod Ricard and the FDFA, taking place on May 8. We’re very excited about the upcoming convention, taking place November 17-20 in Niagara Falls, Canada at the Hilton Hotel & Suites. This will be our last year in the wonderful city of Niagara Falls, but at the same time we’re looking forward to Toronto as the 2014 venue and Vancouver as the location for the 2015 convention! c

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

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Global TR Numbers

Making it COUNT

With impressive growth already in the bag, travel retail’s future is looking bright, especially given the substantial growth taking place in the Asia market by MELISSA SILVA

t this year’s TFWA Asia Pacific show in Singapore, Erik Juul Mortensen, President of TFWA, spoke at length about the financial landscape of the travel retail industry today, namely its tremendous growth over the last several years. According to Mortensen, preliminary forecasts for global sales for 2012 are just over US$49 billion and although the forecasts for 2012 are impressive, Mortensen noted there is still some work to do in order to reach the US$64 billion target by 2015.

Crunching the numbers The 2012 result is a 7.5% increase on 2011, and as with previous years, it’s the Asia Pacific region that is the powerhouse of this growth. “Sales [in Asia Pacific] reached US$18.6 billion, up 16.3% on 2011, which is over double the global growth,” said Mortensen. “Indeed, Asia Pacific—with a 37.6% share of global sales—has overtaken Europe to become the biggest single region,” he added. Although Asia Pacific has indeed overtaken Europe as the largest region, according to statistics published by Generation Research, the latter does come relatively close to the top posi68

tion. In 2011 Europe reached US$15.6 billion in sales and dropped -0.6% to US$15.5 billion in 2012. The Americas performed reasonably well in comparison, reaching US$11 billion in 2012, up 4.7% from 2011 (US$10.5 billion). The Middle East and Africa were the lowest performing regions, coming in at US$3.6 billion (+10.5%) and US$631 million (+13.7%). In Asia Pacific, airports generate almost as much in sales value—US$10.5 billion—but this represents only 57% of total sales in the region, an indication of the significant importance of the downtown duty free and tax free outlets, many of which have become known for offering luxury shopping. On a global scale, airport sales totaled US$27.8 billion in 2011 and reached US$29.9 billion in 2012, demonstrating an increase of 7.4%. Sales growth onboard airlines was considerably lower, only reaching US$2.7 billion in 2012, up 1.4% from US$2.7 billion in 2011. Sales dropped for Ferries and other shops bringing in only US$2.4 billion in 2011 and dropping to US$2.3 billion in 2012 (-3.9%). In terms of categories, globally speaking, Fragrances and Cosmetics took the top position in 2012, bringing in US$15.3 billion, a 7.6% increase from US$14.2 billion

in 2011. Wines and Spirits followed closely with US$8.1 billion in 2012, up 6.1% from 2011 (US$7.6 billion), whereas Fashion and Accessories sales increased 11.6% in 2012, totaling US$7.8 billion, up from US$7.0 billion in 2011. Watches, Jewelry and Fine Writing Instruments followed closely, totaling US$5.6 million in 2012, up from US$5.0 billion in 2011, representing a 10.8% increase. The Tobacco, Confectionery & Fine Food and Electronics, Gifts & Other categories demonstrated lower increases from 2011 to 2012—4.6%, 2.3% and 5.8% respectively.

“There has never been a period in the history of our industry when the potential to grow our business has been greater.” Erik Juul Mortensen, President of TFWA

The perfect strategy In addition to talking numbers, “striving for perfection” was overarching theme at this year’s TFWA Asia Pacific, a strategy aimed

GULF-AFRICA DUTY FREE & TRAVEL RETAILING TFAP MAY 2013

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at keeping travelers happy and sales healthy. Mortensen made sure to identify “striving” as the key term when discussing how to execute this ambitious strategy. “I think anyone who works in our industry will agree that perfection is an unattainable goal. The job is never done,” he said. “There’s no final completion. I think therefore, the most important or most relevant word in this theme is ‘striving,’ or working as hard as possible to achieve our goals.” As Mortensen explained, the present challenge for the industry is for retailers, operators and suppliers to stay determined and ultimately maintain the momentum and dynamism of the industry. According to Mortensen, the point of this effort isn’t to create one momentous breakthrough; it’s meant to gradually allow for continual improvements. “This striving… can easily be achieved through the accumulated effect of small, daily, incremental improvements and efforts, which taken together can lead to big successes,” Mortensen said. “And I think asking ourselves the question ‘what if?’ is a great way to start.” Mortensen suggests retailers ask themselves, “what if my supply chain was 10% more efficient?” or, “what if my store design and configuration gave me 10% more space productivity?” Most importantly for retailers, he suggests the question, “what if the way my customers paid for their goods meant they never had to queue for more than a minute or two?” According to Mortensen the same line of questioning must be applied to suppliers as well: “If I’m a supplier, what if my sales consultants could be 10% more effective? What if my promotions could be 10% more relevant and motivating?” Aside from strategies and growth-inspired questioning, Mortensen outlines that several aspects of the industry itself have contributed to the growth achieved this year and will continue to do so in years to come, namely the industry’s ever-increasing understanding of what motivates travelers to become shoppers and its targeted products and promotions. “[Furthermore], thanks to the fact that shopping is now a social activity, not just a necessity, [and] thanks above all to the World Wide Web that allows us to get closer than ever before to our potential customers,” he added. With the above factors working to the industry’s advantage and the global growth achieved in 2012, Mortensen’s concluding statement sums up the future landscape of travel retail most effectively: “There has never been a period in the history of our industry when the potential to grow our business has been greater.” c

Global Market Share (2012) - Categories Electronics, Gifts & Other 9.8%

Watches, Jewellery & Fine Writing 11.4%

Wines & Spirits 16.4%

Fashion & Accessories 15.9%

Confectionary & Fine Food 8.4%

Fragrances & Cosmetics 31.1% Tobacco Goods 7.1%

Global Market Share (2012) - Sales Channel Other Shops 29.1%

Airport Shops 60.5% Ferries 4.6% Airlines 5.6%

Global Market Share (2012) - Regions Middle East 7.3% Europe 31.4%

Asia Pacific 37.7%

Africa 1.3%

Americas 22.3%

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

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The Dufry-hosted Gala Dinner took place on the beach and featured a variety of cocktail creations from the dinner’s co-host Brugal rum

Conference Review: ASUTIL

CREATING NEW PATHS

This year’s ASUTIL conference concentrated on the continued potential of the region and on finding new ways to grow sales in the face of softer year-on-year increases by RYAN WHITE

his year’s ASUTIL conference, which took place in June, was again a success despite slightly softer growth coming out of the South American travel retail industry. The conference portion of ASUTIL 2013 kicked off with the Welcome and Official Opening by Jose Carlos Rosa, President of ASUTIL. “In reality, we need to create new paths. None of us has a map. What we’re doing here is speaking about these new paths and coming up with new ideas,” he said. “In Latin America, things continue to grow, but not at the same rate as previously seen. However, I think the Olympics and the FIFA World Cup are two events that are going to put South America in the spotlight once again.” In relation to the above, Rosa noted that South America is an expensive vacation destination when compared to the US or Europe, hinting at further opportunity for the region to make itself a more attractive place for tourists. Another topic of importance that he mentioned was the need to invest in technology. “Clearly for us in duty free,” he concluded, “we need to look for new paths. The world is changing quickly. The above points are simply a way of getting us started in discussing what we can change for the benefit of the industry as a whole. In the end it’s all about serving our clients. They’re the reason we’re here in the first place.” 70

Subdued growth Rosa’s talk was followed by Secretary-General of ASUTIL Jose Luis Donagaray’s Statement of the Affairs of ASUTIL and the Industry. He noted that attendance was up this year by 11% and thanked all for their support of the organization. Across 12 countries and 15 member operators in the first quarter of 2012 versus the same period in 2011, Donagaray said that sales were up 7.8%, while passengers increased 11% for the period. Finally, he reported that average ticket was up 4.8%. In terms of category growth, Donagaray presented the following statistics: P&C (+12.9%); Spirits (+9.9%); Tobacco (+7.3%); Confectionery (+8.5%); and Electronics (+1.8%). He also touched on the theme of this year’s conference: “We’re not growing double digits anymore for the first time since 2009,” he explained. “Quite simply, this is the reason we need to find new ways of doing things. Our continued growth depends upon it.” Carlos Loaiza of Camara de Empresarios de Free Shops de Uruguay next took the stage. He discussed the current economic situation as it relates to travel retail in the country. “One of the biggest challenges consists in the coming duty free stores on Brazil’s side of the border,” he noted. “As such, it’s important that there is a level playing field and that Uruguay’s border stores are competitive in their pricing and offer.”

The Latin American shopper After a coffee break sponsored by Americas Duty Free magazine and Godiva, Vice President of ASUTIL Cynthia Barreto presented Partner and Co-Founder of m1ndset Peter Mohn, who discussed a number of insights

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place on the tail creations m

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Conference Review: ASUTIL

related directly to travel retail that were beneficial for operators and suppliers alike. Mohn note d that there is “huge potential” with Brazil and that the coming sporting events in the country only increase that potential. However, his study encompassed eight different airports across Latin America, including both Latin American and non-Latin American travelers. Interestingly, the survey found that 32% of Latin Americans arrive three hours or more before their flight. “That’s a fantastic opportunity as we all know,” Mohn said. Furthermore, 56% of Latin Americans like to “shop and browse” when at the airport, while other nationalities prefer to eat and drink. Notably, a quarter of travelers surveyed are using their smartphones, which Mohn says presents another big opportunity that ties in nicely to Jose Carlos Rosa’s assertion that operators need to invest more in technology. m1ndset also found that 41% of Latin American travelers purchase duty free every time they travel as compared to 21% of travelers of other nationalities. Despite this, Mohn noted that it’s still very important to increase the “attractiveness and relevance” of the duty free offer as a means of capturing the nonshopping traveler.

Delighting travelers Anna Szentivanyl, Manager of Customer Marketing at Mondelez International, next took the stage to discuss the topic of Delighting Travelers. She noted that there are three 72

core challenges that all suppliers and operators face: that there are not enough people actually entering travel retail stores; that those who do buy aren’t spending enough; and that people don’t come back to duty free often enough. “There is an opportunity for US$3 billion in growth in the confectionery category over the next three years,” she said. “We need to make sure that we have strong brands that will stop people and pull them into the store. We can also play with people’s sensations, including tasting, smell and look and feel. “We also need to understand cross-category purchases,” she added. “We should make sure that there are little touchpoints that will make people increase their basket sizes.” Szentivanyl also noted that signposting and navigation are both important in ensuring that people who don’t have a lot of time can quickly purchase what they want. “Some environmental changes in store will benefit everyone,” she concluded.

Wrapping up The conference portion of ASUTIL 2013 wrapped up with a talk from Carlos Melconian, Director of M&S Consultores. He discussed the economic situation in Latin America in detail with a specific focus on Argentina and Brazil. Melconian was followed

The conference portion of this year’s ASUTIL event was well attended on both days given a strong roster of speakers from varied disciplines

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by Joe Arellano, Patron Tequila’s Vice President of Travel Retail and Latin America. His talk focused on finding new ways to grow sales in travel retail through cooperation among landlords, retailers and suppliers in the face of the increasing popularity of online shopping. Arturo Valenzuela, Professor at Georgetown University, then took the stage to give the keynote address, titled “Latin America: Continent of the XXI Century.” The lifetime achievement award was then presented to Victor Hugo Bonnet. “Thank you very much to ASUTIL for this well deserved award!” Bonnet quipped. He went on to speak about the good work that London Supply has done in Argentina, noting that a business’ responsibility is to be involved in the community and help build a country. Vice President of ASUTIL Cynthia Barreto then took the stage to close the conference. She thanked the speakers and attendees and gave a short summary of points of interest related to travel retail in Latin America. She underlined the importance of having a differentiated offering from domestic retail. After the conference, Americas Duty Free had the opportunity to speak with Jose Luis Donagaray about how he feels the 2013 event went. “We’re very happy with this year’s event,” Donagaray told us. “The caliber of speakers was excellent and I think we gleaned a lot of useful information for our industry. “Furthermore, the attendees I’ve spoken to have told me that they enjoyed the event and the venue, so I think it was a success.” c

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

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As always, ASUTIL made sure that guests were afforded the opportunity to network in a more relaxed setting during numerous social activities

Conference Review: ASUTIL

CREANDO NUEVAS SENDAS

La Conferencia ASUTIL de este año se enfocó en el continuo potencial de la región, y en buscar nuevas formas de aumentar las ventas a pesar de los modestos incrementos anuales by RYAN WHITE

a Conferencia ASUTIL de este año, que se llevó a cabo en junio pasado, fue nuevamente un éxito, a pesar de las cifras más modestas que reportó el sector minorista de viajes en Suramérica. La sección de ASUTIL 2013 dedicada a la conferencia se inició con la Bienvenida y Apertura Oficial a cargo de José Carlos Rosa, Presidente de ASUTIL. “En realidad, es necesario crear nuevas sendas. Ninguno de nosotros tiene un mapa. Lo que hacemos acá es hablar sobre esas nuevas sendas y formular nuevas ideas”, expresó Rosa. “En Latinoamérica las operaciones siguen creciendo, pero no al mismo ritmo que vimos previamente. Sin embargo, creo que las Olimpiadas y la Copa Mundial de la FIFA son dos acontecimientos que volverán a ubicar una vez más a Suramérica como foco de atención”. En relación con lo anterior, Rosa destacó que Suramérica es un costoso destino de vacaciones cuando se compara con los Estados Unidos o Europa, y aludió a la creación de más oportunidades a fin de que la región sea un sitio más atractivo para los turistas. Otro tema de importancia mencionado por el alto funcionario de ASUTIL fue la necesidad de invertir en tecnología. “Claramente, el sector duty free tiene que buscar nuevas sendas. El mundo cambia rápidamente. Las cuestiones anteriores son simplemente una forma de iniciar el análisis de lo que podemos cambiar 74

para el beneficio de la industria en general. Al final lo más importante es el servicio a nuestros clientes. En definitiva, ellos son la razón por la cual existimos”, concluyó.

Un modesto crecimiento Al discurso de Rosa le siguió la Declaración del Estado de ASUTIL y de la Industria, a cargo de José Luis Donagaray, Secretario General de ASUTIL, quien reveló que la asistencia aumentó este año en un 11%, y les agradeció a todos su apoyo a la organización. Donagaray agregó que en 12 países y 15 operadores miembros, durante el primer trimestre del 2012 y en comparación con el mismo período del 2011, las ventas aumentaron en un 7.8%; mientras que el tráfico de pasajeros se incrementó durante el período en un 11%. Asimismo, reportó que el promedio de ventas aumentó en un 4.8%. En términos de crecimiento por categorías, Donagaray presentó las siguientes estadísticas: perfumería y cosméticos (+12.9%); espirituosos (+9.9%); tabaco (+7.3%); confitería (+8.5%); y artícu-

los electrónicos (+1.8%). Además, trató el tema de la conferencia de este año: “Por primera vez desde el 2009 no hemos reportado dobles dígitos de crecimiento. Simplemente, esta es la razón por la cual es necesario buscar nuevos caminos de operación. De ello depende la continuidad de nuestro crecimiento”, explicó. Carlos Loaiza, de la Cámara de Empresarios de Free Shops de Uruguay fue el próximo ponente, y habló acerca de la situación económica actual y su relación con el sector minorista de viajes en ese país. “Uno de los mayores retos consiste en las nuevas tiendas duty free que se abrirán en el lado de la frontera perteneciente a Brasil”, destacó. “Por tanto, es importante que exista una igualdad de

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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Conference Review: ASUTIL

condiciones y que las tiendas de frontera de Uruguay sean competitivas en sus precios y sus ofertas”.

El comprador latinoamericano Después del receso para tomar café, patrocinado por la revista Americas Duty Free y Godiva, Cynthia Barreto, Vicepresidenta de ASUTIL, presentó a Peter Mohn, Socio y Cofundador de m1ndset, quien habló acerca de su estudio de varias cuestiones relacionadas directamente con el sector minorista de viajes, beneficiosas tanto para operadores como para proveedores. Mohn enfatizó en la existencia de un “enorme potencial” con Brasil, y que los próximos eventos deportivos en esa nación sólo incrementarán ese potencial. Sin embargo, su estudio abarcó ocho aeropuertos diferentes de Latinoamérica, con tráfico de viajeros latinoamericanos y de otros países. La investigación llegó a una conclusión interesante: el 32% de los latinoamericanos llegan con tres horas o más de antelación a sus vuelos. “Una oportunidad fantástica, como todos sabemos”, expresó Mohn. Por su parte, al 56% de los latinoamericanos les gusta “comprar y observar” durante su estancia en los aeropuertos, mientras otras nacionalidades prefieren comer y beber. Notablemente, el 25% de los viajeros encuestados usan sus teléfonos inteligentes, un hecho que, según Mohn, constituye otra gran oportunidad, que se corresponde perfectamente con el planteamiento de José Carlos Rosa referente a que los operadores deben invertir más en 76

tecnología. m1ndset también descubrió que el 41% de los latinoamericanos compran artículos duty free cada vez que viajan, en comparación con el 21% de pasajeros de otras nacionalidades. A pesar de esto, Mohn agregó que sigue siendo muy importante incrementar “el atractivo y relevancia” de la oferta duty free como medio de captar a los viajeros que no compran.

Deleitar a los viajeros Anna Szentivanyl, Gerente de Mercadotecnia del Cliente de Mondelez International fue la próxima ponente, y se enfocó en el tema “Deleitar a los viajeros”. La experta aseguró que existen tres retos principales que enfrentan todos los proveedores y operadores: en la actualidad no entran muchas personas en las tiendas del sector minorista de viajes; los que compran no gastan lo suficiente; los clientes no regresan con suficiente frecuencia a las tiendas duty free. “Hay una oportunidad de crecimiento de US$3 mil millones en la categoría de confituras en los próximos tres años”, afirmó. “Es necesario garantizar que contemos con marcas fuertes que atraigan a los viajeros para que entren a la tienda. También podemos apelar a las sensaciones humanas como el gusto, el olfato, y la apariencia y el tacto”. “También es necesario entender las ventas en categorías múltiples”, añadió. “Debemos garantizar que existan pequeños puntos de

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Conference Review: ASUTIL contacto que hagan incrementar la cantidad de productos que compran los clientes”. Szentivanyl destacó además que la señalización y navegación son aspectos importantes para garantizar que los viajeros que no disponen de mucho tiempo puedan comprar rápidamente lo que desean. “Algunos cambios ambientales en la tienda serán beneficiosos para todos”, concluyó.

La porción de ASUTIL 2013 correspondiente a la conferencia concluyó con una charla a cargo de Carlos Melconian, Director de M&S Consultores, quien se refirió en detalle a la situación económica de Latinoamérica, con énfasis especial en Argentina y Brasil. A Melconian le siguió Joe Arellano, Vicepresidente para el Sector Minorista de Viajes y Latinoamérica de Patrón Tequila. Su ponencia se enfocó en nuevas formas de incrementar las ventas en el sector minorista de viajes por medio de la cooperación entre dueños de propiedades, comerciantes minoristas y proveedores ante la creciente popularidad de las compras por Internet. Luego, Arturo Valenzuela, profesor de la

Universidad de Georgetown, tuvo a su cargo el discurso principal, titulado “Latinoamérica: continente del siglo XXI”. Posteriormente, se realizó la entrega de un premio a Víctor Hugo Bonnet por su destacada trayectoria en el sector. “Muchas gracias a ASUTIL por otorgar este premio merecido”, expresó Bonnet, quien se refirió al buen trabajo que ha realizado London Supply en Argentina, destacando que la responsabilidad de todo negocio es participar en la comunidad y contribuir a la construcción del país. A continuación, Cynthia Barreto, Vicepresidenta de ASUTIL, procedió a pronunciar el discurso de clausura, donde agradeció a oradores y asistentes, y ofreció un breve resumen de puntos de interés relacionados con el sector minorista de viajes en Latinoamérica, subrayando la importancia de contar con una oferta diferente a los comercios minoristas nacionales. Al término de la conferencia, Americas Duty Free tuvo la oportunidad de hablar con José Luis Donagaray para saber su opinión sobre el evento 2013. “Nos sentimos felices con el evento de este año. El calibre de los oradores fue excelente, y creo que aportaron información muy útil para la industria”, dijo Donagaray. “Además, los asistentes con quienes hablé me expresaron su satisfacción con el evento y su sede, por lo que creo que todo fue un éxito”, agregó el alto funcionario de ASUTIL. Donagaray confirmó además que probablemente ASUTIL 2014 se llevará a cabo en Suramérica, pero aclaró que aun no han sido confirmados el lugar ni el país. c

Just as last year, coffee breaks for the 2013 ASUTIL conference were sponsored by Americas Duty Free and Godiva

La clausura

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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04/09/13

Counter Intelligence Retail TOUCHPOINTS TO CONNECT WITH NON-SHOPPERS 1. At home booking

5. Instore activity

2. Journey to airport

6. At fixture

3. The airport process

7. On board retail

4. Airside communication

8. In destination

There are multiple opportunities to connect with non-shoppers throughout the journey

TargeTing THE NON-SHOPPER D

espite worldwide economic woes, the worldwide travel retail industry was worth a whopping US$49 billion in sales in 2012, with that number expected to rise to US$64 billion by 2015. Of course, responsible for our collective success to date are the dedicated shopper/travelers—a good many of them Asian, as we well know—who frequent our stores and buy our products. However, an entirely different group, the non-shoppers, may be responsible for helping us reach the lofty goal of US$64 billion in sales over the next couple of years if we can effectively entice them with our offer. Indeed, non-shoppers are arguably the most important demographic for travel retail’s continued growth, and Americas Duty Free recently spoke with Director of Counter Intelligence Retail (CIR) Garry Stasiulevicuis about a recent study that CIR performed related to global Asian non-shoppers specifically. The study identified and discussed three major barriers to shopping in travel retail—“lost relevance,” “other activities” and “value perception”—before going on to suggest ways that retailers and suppliers can overcome these barriers as a means of improving sales.

The breakdown Stasiulevicuis’ data suggest that a whopping 51% of Asian travelers (Chinese, Japanese, Korean, Taiwanese and Indian) do not purchase in global duty free. Moreover, the information CIR has collected indicates that many of these travelers are traditionally the type of people that travel retail targets: A quarter of them are frequent flyers and 36% are businesspeople. Why, then, are they not spending? A closer look at the data as it relates to each nationality provides a clearer picture. While Chinese non-shoppers tend to be business travelers and frequent flyers, they are also younger travelers who tend to avoid shopping in duty free. Japanese non-shoppers are also frequent flyers and business travelers, but are older, meaning that they also tend to avoid shopping in travel retail. Korean non-shoppers tend to be infrequent leisure travelers, and Taiwanese non-shoppers are also leisure travelers who pass through airports infrequently, with the majority being female.

Why they don’t buy As mentioned, lost relevance, other activities and value perception were the top three responses given by the non-shopping Asian travelers surveyed by CIR. Stasiulevicuis explained each of the answers to us: “Those who cited lost relevance as a reason for not shopping indicated 80

Americas Duty Free discusses enticing Asian non-shoppers to buy with Director of Counter Intelligence Retail Garry Stasiulevicuis by RYAN WHITE

that travel retail had lost its appeal; that it does not offer anything different in terms of range; and that while the store design may be high-end, there is a lack of attention given to basic execution,” he said. “Some respondents also told us that they don’t shop because airports now offer a significant number of opportunities to help passengers spend time, work and even leave the airport altogether, which falls under the other activities category,” he continued. “Finally, some respondents

“With the value benefit to purchasing in duty free becoming more and more of a challenge, point-of-difference offerings are critical to attract shoppers that believe there is no advantage to them shopping and buying in the airport.” Garry Stasiulevicuis, Director, Counter Intelligence Retail

told us that travel retail’s once obvious value perception has eroded as products are available elsewhere, with promotion impacting the value message.” Lost relevance was cited by Chinese, Japanese, Taiwanese and Indian respondents; Koreans and Indians noted that other activities kept them from shopping duty free; and value perception was the defining issue for the Japanese non-shoppers surveyed. Out of the total number of respondents, 35% cited lost relevance; 31% other activities; and 26% value perception.

Addressing lost relevance The good news for retailers and suppliers is that CIR sees numerous opportunities to address the above barriers to travel retail shopping. In addition to on-concourse and in-store communications, touchpoints where travelers should be prompted include during booking; on the way to the airport; onboard the aircraft; and at the destination. “In order for retailers and suppliers to attract travelers to purchase in duty free stores investment is needed into delivering a product range and customer service experience that they cannot receive anywhere

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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10/9/2013 10:29:33 AM 2013-09-25 5:39 PM

Counter Intelligence Retail BARRIERS TO DUTY FREE SHOPPING FOR NON-SHOPPING ASIANS ASIAN NON-SHOPPER

CHINESE

JAPANESE

KOREAN

TAIWANESE

INDIAN

travelers until they’ve cleared security,” he says.

Communicating value

Lost Relevance 35%

In much the same way as communication is key to both Other Activities 31% Lost Relevance Other Activities Lost Relevance dispelling the perception that travel retail offers nothing new Value Perception 26% and enticing travelers distracted by other activities to enter the else,” Stasiulevicuis says with regard to lost relevance. “Travelers need stores, CIR says that duty free’s value proposition must be clearly comto better understand the benefit of them purchasing on that trip as the municated outside the shops. Stasiulevicuis notes that 73% of Asian non-shoppers tend to relax perception is that the range available is exactly the same as back home in the seating areas at their gates, and that this is a great place for or even in some cases a reduced range. “With the value benefit to purchasing in duty free becoming more retailers and suppliers to start a dialogue. “Furthermore, 61% of Asian and more of a challenge, point-of-difference offerings are critical to attract these shoppers that believe there is no advantage to them shopASIAN NON-SHOPPERS AT A GLANCE ping and buying in the airport,” he continues. For suppliers specifically, Stasiulevicuis tells us that a concentraCHINA • Business travellers & Frequent flyers tion on exclusive launches and duty free-specific packaging will help • Younger travellers especially avoid shopping in DF travelers understand the points of difference between duty free and domestic retailing. He gives Absolut Unique, a limited edition release JAPAN from Absolut that offered travelers the chance to purchase a one-of• Business travellers & Frequent flyers a-kind bottle, as a great example of how suppliers can capture the • Older travellers are more likely to avoid DF imagination of travelers and make them feel like they’re being offered something special. SOUTH KOREA • Leisure travellers Interrupting the journey • Infrequent flyers With airports becoming destinations in their own right, it’s no wonder that for a segment of travelers, duty free gets put on the back burner. TAIWAN CIR notes that retailers and suppliers need to ensure that they’re con• Females more likely to avoid • Leisure travellers & Infrequent flyers stantly reminding travelers of the reasons they should be visiting duty free on their trips. Examples include compelling signage and promotion on concourse INDIA and experiential retailing, incorporating events like tastings for those • Business travellers (46%) travelers who enjoy the participating in activities as opposed to simply shopping. CIR also notes that communicating these types of events on boarding passes and in in-flight magazines will help keep duty free non-shoppers visit F&B outlets at some point during their journey,” top-of-mind. “L’Oreal Luxe has invested extensively into understanding and Stasiulevicuis adds, “opening up the opportunity to drive mutual benefits targeting the Asian traveler with established brands such as Lancôme for F&B outlets and duty free stores by offering price-off vouchers to and Kiehl’s,” Stasiulevicuis explains. “They understand the importance drive footfall and conversion.” And while there’s a lot of talk about high-spending Asian travelers, of creating ‘experiences’ for Asian travelers.” As can likely be guessed at this point, CIR believes that communica- Stasiulevicuis notes that they tend to set aside a significant portion of tion is the key to unlocking the potential in non-shoppers. Stasiulevicuis time at their destinations specifically for shopping, meaning that travel notes that a lot of strong solutions already exist, but many of them are retail’s value proposition is of the utmost importance. Furthermore, only visible to shoppers when they’re already inside the store. “The Chinese shoppers in particular are known to research their purchases most effective place to communicate to travelers is while they’re inside before the journey to ensure that they’re getting the best price. “Indeed, Asian travelers are big spenders, but our research indithe airport, as shopping is relatively low on the list of priorities for cates that they’re not spending as much as they could in travel retail,” Stasiulevicuis concludes. “They’ve got plenty of other opportunities to WORLDWIDE NON-SHOPPERS BY REGION spend during their travels, so it’s really about travel retailers making sure they’ve got the right range with the latest stock, that they’re offering AMERICAS EUROPE MIDDLE EAST ASIA the best customer service experience and perhaps most importantly 57% 51% 45% 51% that they’re communicating the benefits of shopping duty free in the right places to entice non-shoppers to enter the stores and make a As can be seen, Asian travelers have one of the highest instances of purchase.” c non-shopping, marking a clear opportunity for retailers and suppliers Lost Relevance Value Perception

Other Activities Lost Relevance

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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Parbel

LOOK FIRST,

by HIBAH NOOR

LAUNCH SECOND Science and consumer knowledge pave the way to market success for L’Oréal Travel Retail Americas

o far, 2013 has been a good year for L’Oréal Travel Retail Americas, Parbel in its stated goal to drive sustainable growth and conquer market share, says CEO Javier Labarta. “We achieved a growth 1.5 times faster than a market which was growing at a positive single-digit growth in the first semester, and this is allowing us to grow our market share,” he mentions. The growth has been fueled by L’Oréal Travel Retail’s most recognized and iconic brands, such as Lancôme, Armani and Yves Saint Laurent (YSL), Labarta says. But in addition, other up-and-comers such as Kiehl’s and Viktor & Rolf are punching above their weight thanks to their extremely strong growth figures. He also points out that the growth is manifesting itself across all three main product axes—fragrances, makeup and skincare—a reassuring sign that not all of the travel retail Americas eggs are in one basket. Growth to date has come primarily in the West Coast airport locations within the United States, but L’Oréal Travel Retail Americas has also noticed that areas where the key nationalities—namely Brazilians and Chinese—are traveling are also pushing hefty sales increases. The growth is being sustained by a consistent focus on pillar brands such as Génifique and Absolue skincare for Lancôme, Armani Acqua di Gio pour Homme, Armani Code and Ralph Lauren Polo Blue fragrances, as well as the L’Homme fragrance franchise and the travel

Javier Labarta, CEO, L’Oréal Travel Retail Americas

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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The biggest launch for second semester is Ralph Lauren’s Polo Red

retail exclusive palettes from YSL. The other major contributor to positive results for 2013 has been a large number of outstanding launches. Lancôme has been maintaining the very successful momentum of the La Vie est Belle fragrance, with a strong launch in Brazil. Giorgio Armani, the iconic Italian designer brand, has continued its inroads in the luxury sphere with the relaunch of Eau Pour Homme and the introduction of Eau de Nuit, described as “a new classic of singular elegance.” YSL has contributed its own statement in the feminine fragrance segment with the launch of Manifesto, a new perfume that has been developed with an eye to building on the brand’s signature presence. The second semester will be extremely dynamic as well, Labarta promises, as the company continues with steady new launches, driven by the dedication to science that is a core element in L’Oréal Group’s approach to the market. “As you know, research and development has always been one of the pillars of the L’Oréal Group,” he says. “We have over three thousand researchers across the globe, and thanks to them we are able to offer the most innovative products. In this spirit, Lancôme has been able to translate a widely held beauty ideal for women joined to a scientific reality, with the introduction of DreamTone, a new skincare dark spot corrector which gives women a solution in their quest for ideal, perfectly balanced skin tone.” To reinforce its leadership in the mascara makeup segment, Lancôme has revisited Lancôme introduces DreamTone, a new skincare dark spot corrector which gives women a balanced skin tone

10/9/2013 10:29:40 AM 2013-09-25 5:39 PM

its four high-profile bestselling mascaras in collaboration with well known fashion designer Alber Elbaz, who has set himself the task of melding the twin concepts of luxury and joy in the new limited edition called “Hypnôse Puts On a Show.” Labarta adds that the packaging of Trésor will continue to be revisited with a view to developing the associations of luxury that the feminine fragrance category is known for. On the men’s side, Labarta says the biggest launch will be Ralph Lauren’s Polo Red, “a story of speed, adrenaline and seduction, which brings a new intensity to the brand.” Boosted by strong visuals and an engaging form of in-store “retailtainment”—in addition to the character of the scent itself—Labarta expects the Red Polo fragrance to conquer new territory in the masculine fragrance market. And Diesel will be returning to its roots with the launch of Fuel For Life Spirit, which is “a more intense and sophisticated version of the classic Fuel For Life, a pillar of this irreverent brand.” Labarta also highlights a milestone for Armani—the first opening in the Americas travel retail segment of Armani Privé, the brand’s premium line of Haute Couture fragrances, in the recently renovated JFK T4 store. This opening has come about under the auspices of a business partnership with DFS. L’Oréal Travel Retail Americas is adding Clarisonic to its repertoire as well, a top and fast-growing premium brand in the skincare devices category in the US. This addition will add bench depth to the service experience enjoyed by customers at the company’s luxury counters. All of the brands under his purview have been very active this year, but he singles out the Armani Acqua for Life campaign as especially noteworthy. “We ran this campaign for the third year in a row, with the best results to date,” he says proudly. “This is a particularly meaningful initiative and a true commitment from the brand, as every perfume purchased translates into a donation to improve access to clean and healthy water in deprived areas around the globe.” Also worthy of mention has been a two-airport animation operated for YSL, where a cocktail bar was set up in LAX and Montreal airports for the L’Homme franchise. Trained bartenders offered travelers nonalcoholic cocktails inspired by the fragrance’s aromatic notes. And the Polo Red retailtainment in the second semester will feature an iPad driving game developed exclusively for the launch, based on the cinematic commercial depicting brand ambassador Nacho Figueras in a black sports car chasing a speedboat. “This interactive element will be a very impactful and engaging way for customers to discover the story of speed, adrenaline and seduction behind the fragrance,” Labarta says.

Think global

Diesel will be returning to its roots with the launch of Fuel For Life Spirit

concerns of each nationality in terms of product assortment and service by working closely with retailers and field staff. The service to traveler-focused expertise is of particular relevance in airports. “We serve them wherever they travel to make sure our offers address their needs anywhere they go. “That traveler-centered focus is reinforced every day in any animation or launch we plan to do in travel retail Americas,” he continues. “It’s extremely important to us to address each passenger according to their own specific needs. Therefore it’s strategic for us to better understand and know their behavior needs, their expectations in beauty, and so on. This is the insight behind the service in our distribution channel. “L’Oréal has always been a partner for the operators in travel retail, and this strategy reinforces our approach of working closer to them.” c

Parbel will be adding a top and fast-growing premium brand in the skincare devices category in the US called Clarisonic to its portfolio

Customer service has played a pivotal role in the strategy of honing excellence at point of sale, giving the company a true competitive edge, Labarta mentions. “This isn’t something new for L’Oréal Luxe. We’ve been working on how to offer the best service to each traveler, according to their preferences. But based on the significance that the level of service has in sales in the luxury market, we have decided to further increase the service in the duty free channel in the Americas. Our objective is to offer them what they need and expect, no matter in which airport they travel, all in partnership with our retailers, who are also key actors in this approach.” One key to success of our brands has been the company’s active focus on delivering to the needs and www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

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Clinique

New—but still known

Clinique reworks its science-based Dramatically Different Moisturizing Lotion, but keeps the trademark texture

linique has been eager to get the word out about two new travel retail exclusive sets that feature its new Dramatically Different Moisturizing Lotion+ (DDML+). DDML+ is Clinique’s bestselling moisture lotion. The company says that continued use will make skin more resistant to degradation by external factors. The formulation is allergy tested and is 100% fragrance free. More is new with DDML+ than just the travel retail exclusives. The DDML formula has been revised to offer double the moisturization levels—without any extra oil—and a 54% improvement in the skin’s barrier strength after eight weeks of use. The trademark velvety texture is unchanged. The new sets became available at Clinique counters at travel retail locations across the Asia Pacific, Europe, the Middle East and Africa in July, with the Americas following in August. Below we present a Q&A discussion with Janet Pardo, Clinique’s Senior Vice President, Global Product Development. Q: So many people have grown to love DDML over the years. Why would you change the formula, today?

Janet Pardo, Senior Vice President, Global Product Development, Clinique

JP: Clinique is consistently researching new ingredients and technology to modernize its products and ensure clients receive the maximum benefits. The world has changed since DDML was launched in 1968, and consumers need more from their daily moisturizer. As a leader in the skincare industry, it’s Clinique’s duty to provide a solution. We work closely with our formulating dermatologists Dr. David and Dr. Catherine Orentreich to learn about people’s current skin care needs. Their patients have noted skin sensitivities caused by environmental assaults that the doctors have diagnosed as a weakened skin barrier. Clinique treats dermatological concerns so it was our duty to reformulate the Dramatically Different Moisturizing Lotion in order to help skin keep in the healthy essentials and better resist environmental influences. Q: Is it true that the creamier the texture, the better it moisturizes? JP: False. While it might seem logical that the thicker the cream, the more effective it is, the question is: effective at what? It is certainly more occlusive, which means it sits on the skin’s surface and may prevent moisture from escaping. Q: Should women use different types of moisturizers at different stages of their lives? For example, are lotions more targeted for teens and creamier formulas targeted for women? JP: This isn’t necessarily true. Skincare technology has made dramatic strides in recent decades, so light weight moisturizers can be packed with powerful ingredients that work elegantly and invisibly, no matter what your age. It really depends on the user’s preference and what end benefit she is looking to achieve.

Q: Why doesn’t the new Dramatically Different Moisturizing Lotion+ contain sunscreen? JP: Dramatically Different Moisturizing Lotion+ is for use twice daily; morning and night. Sunscreen is for use during the day when skin might be exposed to the sun’s rays. Also, when you add sunscreen ingredients, you change the texture of a product. Loyal DDML users have always been profoundly attached to its inimitable texture—and that is a delicate aspect of any well made formula. However, since the new Dramatically Different Moisturizing Lotion+ is very lightweight, we always advise using a moisturizer with SPF on top of the lotion, especially if you are not using a foundation with sunscreen. Q: What does “balance” mean in the context of great skin? JP: Physiologically speaking, balance has to do with the proper ratio of oil and water in the skin, so that it’s neither dry and irritated, nor greasy due to over-active oil glands. Clear, hydrated, calm skin that functions unimpeded is skin in balance. That’s healthy skin. Q: Clinique products are allergy tested. What is the difference between “hypoallergenic” and “allergy tested?” JP: Although the word “hypoallergenic” appears on many beauty products, there’s no agreement on what it really means which is why we set our own standards for ensuring skin’s comfort. All Clinique skin care products are allergy tested by a medical research organization under a dermatologist’s supervision. Each formula is tested on 600 people twelve times for a total of 7,200 applications. If a single one of those 600 shows an allergic reaction, the formula is rejected. c

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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Earlier this year, Maggy’s Beauty Emporium in Aruba held its annual Beauty Festival, and Tairo hosted the Yves Saint Laurent and Biotherm brands during the event

Tairo International

TAIRO takes off The busy Mexico/Caribbean beauty distributor has a packed schedule of launches

remium beauty products distributor Tairo International hosted its second Beauty Advisor Seminar September 19-23 at the Ritz Carlton in Orlando, Florida. Some 100 Beauty Advisors and Buyers from across the Caribbean and Mexico were in attendance. The seminar featured presentations covering the new fall initiatives, along with dinners and social outings that enabled participants to network with their peers. Tairo has been busy with other events too. In June, Maggy’s Beauty Emporium in Aruba held its annual Beauty Festival, and Tairo hosted the Yves Saint Laurent (YSL) and Biotherm brands there. Tairo enriched the experience by bringing along International Makeup and Skincare Specialist Linda Caselle, and both brands offered makeup counter animations. There was also a workshop for YSL Beauté and a “Live like a Man” workshop featuring Biotherm’s men’s products. During the makeup application sessions, YSL customers experienced the brand’s new travel retail exclusive palettes, the Touche Éclat foundation and the RPC Vernis à Lèvres lipstick. Both workshops enabled customers to learn about the products, giving them a better understanding of which products worked best on their skin type. Tairo says customers appreciated the opportunity to try out these luxury brands and enjoyed the variety of products on offer. Tairo is certainly managing a packed slate of launches these days. P&G released Boss Jour Pour Femme in September, while Coty Prestige rolled out Roberto Cavalli Acqua and Just Cavalli Men in the same month and has Downtown Calvin Klein, Encounter Fresh 88

and Marc Jacobs coming up in October and Roberto Cavalli Nero Assoluto in November. Under the Coty Beauty banner, October will see the launch of Beyonce Heat World Tour, November is set aside for Katy Perry Killer Queen and Nautica Voyage N-83, and Guess Girl Belle and Guess Night for Men follow in December. Of Boss Jour Pour Femme, Boss Parfums says the scent “has been created to reflect three important female facets—light, inspiration and elegant composure.” For the light facet, grapefruit flower has been combined with lime, while the inspirational notes are developed from freesia and lily of the valley, complemented with honeysuckle. For the elegant composure theming, a richer, muskier finish is assembled out of earthy white birch and amber notes. Gwyneth Paltrow is the face for the new fragrance. Just Cavalli Men was created by Master Perfumers Domitille Bertier and Clément Gabarry of IFF Co. Described as a fresh leathery wood composition, the fragrance starts with a strong note of wild pimento, a pepper noted for its association with masculinity and virility. Heart notes of vetiver wood follow quickly, and the scent closes with base notes of smooth leather. The face of the fragrance is rising young Brazilian model Marlon Texeira. Downtown Calvin Klein, available as of July, is a floral woody fragrance with top notes of Italian cedrat, bergamot and Tunisian neroli, processing into mid notes that lay pink peppercorn over contrasting violet leaf and gardenia petals. The dry base rests on Texan cedarwood built up with accents of incense, vetiver and warm velvet musks. Actress Rooney Mara is

Just Cavalli Men is a fresh leathery wood composition created by Master Perfumers Domitille Bertier and Clément Gabarry of IFF Co

Gwyneth Paltrow is the face for the new Boss Jour Pour Femme fragrance

the face of the campaign, which includes TV spots directed by David Fincher. The Katy Perry “Killer Queen” series of fragrances includes a range of Eaux de Parfum along with Body Lotion and Shower Gel. Killer Queen takes as its theming Katy Perry’s rebellious and unconventional sensibility. The fragrance was created by IFF’s Laurent Le Guernec and is based on the red velvet flower. Top notes of wild berry, dark plum and bergamot yield to the center of red velvet flower, which is complemented by natural jasmine sambac and rainbow plumeria, and the exit is accompanied by base notes of cashmeran, natural patchouli heart and liquid praline. Tairo will be supporting each launch with ongoing promotional events throughout the region. c

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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altrow is the e new Boss Jour me fragrance

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Beauty Beat: Fragrances

Fresh fragrances

Always considered a showcase for the newest and best in the world of duty free, Cannes will see the launch of a number of top-line fragrances for the season Burberry Brit Rhythm Company: Essence Corp. Description: The iconic fragrance features top notes of basil verveina, cardamom and juniper berries, with heart notes that contain black leather, patchouli and styrax resin. The base notes contain cedarwood, incense and tonka bean. The flacon is made of smoked glass with a studded feel.

Guess Girl Belle Company: Coty Beauty Description: Award-winning 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. Boucheron Place Vendôme Company: Essence Corp. Description: A floriental woody eau de parfum composed by Olivier Cresp and Nathalie Lorson that reflects the brand’s rich heritage.

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.

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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.

Montblanc Legend Intense Company: Essence Corp. Description: Montblanc Legend Intense is a modern interpretation of the Legend scent with a spicier and warmer twist. The bottle features a metallic, carbon-colored body finished with the famous Montblanc emblem on the cap.

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.

AMERICAS AMERICAS DUTY DUTY FREE FREE & & TRAVEL TRAVEL RETAILING RETAILING OCTOBER OCTOBER 2013 2013

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VM:Layout 3

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10/9/2013 10:34:17 AM 2013-09-17 10:43 AM

Beauty Beat: Fragrances Elie Saab Le Parfum Eau De Parfum Intense Company: Beaute Prestige International Description: Eau de Parfum Intense is the third and newest version of Elie Saab’s fragrance. It opens with a burst of orange blossom. The heart note contains ylang-ylang combined with the sweetness of rose honey. The base note rounds off with patchouli and an ambery accord Modern Muse Company: Estée Lauder Description: Modern Muse is a new floral woody fragrance that is inspired by the intriguing dynamic life of today’s woman.

Minajesty by Nicki Minaj Company: Elizabeth Arden Description: This sultry floral scent comprises fruits and fresh florals draped in vanilla and pure musks. The fragrance opens with peach, red currant and lemon blossom. The heart is made from magnolia and pink frangipani and tiger orchid. The fragrance is concluded with tonka and vanilla wrapped in white musk.

Justin Bieber The Key Company: Elizabeth Arden Description: The fruity floral musk fragrance appeals to the senses with a burst of juicy fruits and a floral heart. The dry down blends musks and exotic precious woods with decadent notes of vanilla. The packaging is inspired by Bieber’s appreciation of cutting edge fashion and technology. It’s modern, fresh and true to Bieber’s authentic style. Joy Forever by Jean Patou Company: Designer Parfums Description: A new floral perfume containing the key original ingredients of Jean Patou’s fragrance, Joy, offering up notes of rose de mai and jasmine—the secret blend of Patou fragrances but now blended with a modern twist. Perfect for both day and night. Aigner No1 Sport by Aigner Parfums Company: Designer Parfums Description: No1 Sport is a sport fragrance that embodies strength, confidence and good taste, says the company. This is a scent that references the original Aigner No1 and reflects an active lifestyle, which can be described as fresher, livelier and cleaner, yet designed to complement his power and energy. 92 92

Solinote Fleur de Cerisier Cherry Blossom Company: Parfums Corania Description: A fragrance designed to celebrate the first beautiful spring days of the year, Solinote Fleur de Cerisier - Cherry Blossom offers up fresh and sweet floral notes enhanced by fruity tones—a feminine perfume with spring tones.

DKNY Be Delicious Skin Hydrating Edt Company: Estée Lauder Description: This celebrated fragrance is now reinvented with the “Apple Fusion Complex,” a blend of skin-loving ingredients that are clinically proven to help moisturize, smooth and brighten the body for a more seductive, more daring, more provocative all-over feel.

AMERICAS AMERICAS DUTY DUTY FREE FREE & & TRAVEL TRAVEL RETAILING RETAILING OCTOBER OCTOBER 2013 2013

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2014

International Association of Airport Duty Free Stores

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Americas March 9 –12, 2014

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Join us for the business-to-business show for the duty free industry. The Duty Free Show of the Americas offers everything you need to conduct business, all under one roof. See what attendees are saying:

“ I was pleased that even more people were present this year than the last two years. We will definitely be back next year. ” “ Excellent gathering of the industry in the Americas. ” “ I was so busy with my clients. I saw 100% of my clients and the show was very productive and a great ROI. ” Visit www.IAADFS.org/DutyFreeShow for more information and registration. The Duty Free Show of the Americas is hosted by the International Association of Airport Duty Free Stores, representing the duty free industry for more than 45 years.

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10/9/2013 10:34:31 AM 2013-09-17 9:14 AM

L’Oréal Consumer

BULLISH in tough times L’Oréal Travel Retail Americas Consumer Division is at its best when conditions are most difficult by HIBAH NOOR

“T

his has definitely been a challenging year,” says Sebastien Levi, Division Manager. “But that makes it exciting and interesting for us. Crisis or difficult times are always the best times to experiment with new things, to think out of the box.” Levi follows through on the upbeat tone by explaining that L’Oréal Travel Retail Americas Consumer Division plans to continue to focus on bringing new solutions and new offers to market, despite overall economic uncertainty and more than one politically troubled territory in its bailiwick. Despite adversity, the division is steadily increasing the shop penetration of its brands (L’Oréal Paris, The Body Shop, Roger Gallet, Maybelline and Essie), and thereby generating additional sales in the area. Levi says: “The goal has been more than ever to keep innovating and keep up with big launches on all our brands.” The key to success is animations and promotions, where the division has traditionally been strong. “These are two different things. To play qualitative animation and qualitative HPPS, especially on L’Oréal Paris or Roger Gallet, whose launch of the range “Fleur de Figuier” (consisting of one fragrance, soaps and body lotion) has been particularly impactful and successful in Panama with Grupo Wisa and in Buenos Aires and Montevideo with Dufry. What is also needed, especially for L’Oréal Paris and The Body Shop, is promotions,” Levi says. He singles out 20% off and buy-two-get-one-free promos on specific lines under the Body Shop banner as especially positive. “We’re the division that can do that—it’s our DNA. We can do promotions without it jeopardizing the image of the brand.” Additionally, pricing promotions are especially effective with specific customer segments. Paradoxically, Levi says that the Consumer Division is now in the position of having to pull out all its innovative and promotional savvy in order to introduce to the duty free market its hair care range Hair Expertise. Hair care is also part of the DNA of L’Oréal Group, but it’s a category that the division’s customers aren’t used to seeing in this channel. “We strongly believe it’s now time to do it, the demand is there.” “L’Oréal Paris Hair Expertise—hair masks, shampoo, wax etc.–this is the premium of the mid-market,” Levi says. “I’ve never seen such a reception from the customers. It’s spectacular.” The ranges were rolled out in June/July with Mona Lisa, Bright Star, Bernabel, IOSC Argentina and IOSC Uruguay, with more comprehensive rollouts to come with additional South American operators. Levi says the launches so far have required minimal floor space, with maximum impact in terms of visibility in the store and sales. “The first feedback is very positive in all the stores where we’re present,” Levi says. At press time the Consumer Division had sellout results only since July, and feedback from beauty advisors, field staff and buyers has been extremely upbeat. 94

L’Oréal Paris Hair Expertise offers hair care such as hair masks, shampoo and wax and has had an exceptional response from travelers in the Americas

L’Oréal Paris is in its element in South America, where the hair care range is well established on the domestic front in all major Latin American countries. Levi says that Brazilian women’s hair care regimens are very similar to the skincare regimens of Japanese women in that both tend to have five or six separate SKUs that they use on a regular basis in their routine. “This is very exciting for us,” Levi says. “Our specific range Hair Expertise isn’t present in the Latin America local market–what they have there is a little more mass– to mid-market. So we’re offering something exclusive to the travelers. Indeed, the range is only available in the North American and Mexican local markets.” The market presence in travel retail is reinforced with a standalone fixture presented in English, Spanish and Portuguese. “This is purely about gaining additional sales,” Levi says. “There are always customers who will just forget their shampoo, but on top of that there are also some people who are just in the mood to purchase a good product.” These customers are good prospects everywhere in Latin America, Levi says, and their buying behavior will be reinforced by the credibility of L’Oréal Paris in hair care.

Impulse power L’Oréal Paris is the right brand to elicit last-minute purchase behavior at points of sale, Levi says. “We’ve seen in many stores how operators capture and boost additional sales at the cashier level. You have many customers that go to one specific category, like tobacco, alcohol etc. Then they go to the cashier—but they haven’t gone to the beauty category.” To generate those additional sales, Levi says it’s more likely that a customer will opt for the additional US$10-$15 purchase of a L’Oréal Paris product rather than a higher-ticket item from another category. To beef up the POS presence, L’Oréal Travel Retail Americas Consumer Division is currently working with London Supply and Dufry Uruguay on deodorants or shaving foams close to the cashiers, in addition to selling L’Oréal Paris products at the cashiers in Ezeiza

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airport. The division has also had some successful POS promotions working with Dufry on accessible products like The Body Shop’s Mini Body Butters in the third quarter. Similar initiatives are slated for the fourth quarter, targeting L’Oréal Paris wipes at the cash till with Dufry throughout the Americas. “We believe more than ever that the impulse purchase can be a good business driver, not only with chocolates or small bottles of alcohol, but also for cosmetics within an affordable price range, like L’Oréal Paris or Body Shop products,” Levi says. “And we’re happy to offer some solutions to the operators, with the right merchandising tools. It’ll happen on an operator-by-operator and even store-by-store basis, as every situation is different. Because in some stores it’s impossible.” With that objective in mind, the Consumer Division has recently redesigned the concept of a Maybelline cash wrap with a tighter range of travel sets, mascara, lipstick and a single eye shadow in one of Bernabel’s boats. “We strongly believe this is the path to explore and expand the presence of Maybelline,” Levi says. The results have been very positive, generating additional sales to the category, and it will lead to the expansion of the brand with this operator. Beyond this specific approach there is major opportunity for Maybelline in travel retail in South America, where it’s already present in Bogota and Cancun and has just started in Brazilian airports with travel sets. It’s worth noting that Maybelline is the local market leader in Argentina, Uruguay and Chile, Levi adds. Finally, The Consumer Division is also always looking at ways to capitalize on the fast-moving nail market. In response to the great market presence of nail bars, it is leaning on the New York Essie brand. In travel retail Essie has a range of over 70 nail colors in addition to nail solutions and treatments, accessories and hand treatments. Essie products are all made without DBP, formaldehyde and toluene, come with a wide brush for easier application, and feature a bottle design that helps to minimize waste. The Consumer Division took Essie onboard at the end of last year, and has already launched the brand in Bogota with Motta, in Barbados and Sao Paolo with Dufry, Mona Lisa in Paraguay and Ultrafemme in Mexico, and it has great ambitions for this brand in 2014. “Overall, we strongly believe that each one of our brands is able to contribute to the division’s mission, which is to increase shop penetration and generate additional sales, and 2013 has been a very exciting year in that regards, with many new developments,” Levi says. “We now look forward to a very positive 2014, with the continuous implementation of our strategy.” c

To beef up the POS presence, L’Oréal’s Consumer Division is working with Dufry on accessible products like The Body Shop’s Mini Body Butters in the third quarter of 2013

In response to the great market presence of nail bars, Essie is being launched in travel retail and offers a range of over 70 nail colors in addition to nail solutions and treatments, accessories and hand treatments

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

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Last fall Charles Denton re-opened “The Institute” in Manhattan which was originally opened in 1939 and offered personalized Erno Lazslo cosmetic dermatological preparations to cure individual skin conditions. The original facility was an extremely exclusive members-only club

Erno Laszlo

Laszlo’s iconic bla is a “phenomeno Taiwan, where so pieces sell every

MAKING THE OLD NEW AGAIN

Premium skincare provider Erno Laszlo looks to make a clean sweep in Asian duty free by HIBAH NOOR Charles Denton, CEO of Erno Laszlo has been successfully leading his newly acquired company

harles Denton, CEO of the renowned high-end skincare brand Erno Laszlo, can look back on a successful three years since he purchased the decades-old company and committed it to a thoroughgoing relaunch. “Erno Laszlo has 85 years of kept promises, three generations of customers,” Denton says. “My vision was to revive some of the iconic items, following up and capitalizing on the other formulas.” The company currently has 50 SKUs in all, after Denton told the company’s employees that it would be up to them which products were worth keeping. And duty free has become a major element in the rebuilding program for Denton, after he appointed MarieClothilde Brulé as Vice President of International and Travel Retail Sales last year. When Denton purchased the company he asked the team to tell him which products they really believed in—and he put it in the form of a challenge. “I said ‘I’m going to discontinue everything, you have a month to Duty free veteran Marie-Clothilde Brulé was argue what we bring appointed Vice President of International and Travel Retail Sales of Erno Laszlo last year back.’ People that had 96

An elaborate Erno Laszlo display at Mitsukoshi department store in Tainan City, Taiwan

been with the business for 30 or 40 years, to people who had just arrived—it was the younger and the older perspective. We ended up with 40 products. Those are the 40 products we relaunched, and those were the products that had the integrity that everyone believed in.” Denton was interested to find that those 40 products were the ones most closely aligned with Dr. Laszlo’s founding principles. At the top of the Erno Lazslo product list, Denton says, is the brand’s trademark cleansing products and ritual, originally established by the eponymous brand founder—who was a medical doctor—85 years ago. “We call this the best cleansing system—and it has been recognized as the best cleansing system in the world,” Denton says. The system starts with an individual Skin Personality Profile developed by an Erno Lazslo specialist. The twice-daily ritual includes a Water Wash Technique which includes the application of hot “Treatment Water” followed by cold tap water. This process flushes away toxins, and promotes cell renewal and collagen production. The products employed in the cleansing ritual include the Phelityl Pre-Cleansing Oil, the Sea Mud Deep Cleansing Bar, the Active Phelityl Intensive Cream and the Shake-it Tinted Treatment. These are backed up by a specialized line of masks, serums and anti-blemish treatments, which help to reinforce the overall efficacy of the ritual. The skincare products maintain the brand’s legacy of using botanicals, fruit acids and essential fatty acids, an approach that Dr. Lazslo helped to pioneer. New products have been developed in the corrective firming, anti-wrinkle and brightening ranges, but Denton has taken care of maintaining the brand’s trademark offerings, such as Phormula 3-9, a repair and strengthening line originally developed for Marilyn Monroe and also put to good use by screen icons such as Greta Garbo and Audrey Hepburn. This collection today includes the healing Repair Balm, Repair Cream and Repair Serum. Erno Lazslo says that Phormula 3-9 “restores skin that is stressed, dulled, and dried by lifestyle and environmental factors.” It works by sealing the formula’s science-based ingredients within a “Health Dome” that acts as a second skin and enables Phormula 3-9 to provide intense oxygenation and rehydration. Because Erno Laszlo sources ingredients from all over the world, managing demand can be a challenge. “When we say we’re going out of stock, we mean it,” Denton says. “When our top four items including the [Phormula] 3-9 product ran out of stock it took us two months to get them back. It’s hard to predict the demand which is compounding all the time. When we sell 10 units one month, the next month we sell

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“The Institute” pened in Lazslo ns to cure al facility was nly club

Mitsukoshi wan

Laszlo’s iconic black soap is a “phenomenon” in Taiwan, where some 200 pieces sell every day

20, the following month we sell 40. It’s quite difficult to manage the demand. We like to launch in a market and get some sort of pattern so we can predict the demand.” Much of the product lineup is made by hand, which adds to the challenge of staying on top of market pull. But it also makes for a close, well knit workforce, Denton says. “We’re quite a small team. We’re fifty altogether, and a lot of them have been with us for 40 years—and they look 20 years younger.”

The reopened institute occupies 10,000 square feet in New York’s SoHo district, with a retail concept and, on the level below, a treatment room

A new openness Last fall Denton re-opened “The Institute” in Manhattan. Originally opened in 1939, The Institute offered personalized Erno Lazslo cosmetic dermatological preparations to cure individual skin conditions. The original facility was an extremely exclusive members-only club for the New York and global elite. To gain membership, an applicant required recommendations from at least two existing members, and in 1954 membership was frozen at 25,000. The reopened institute occupies 10,000 square feet in New York’s SoHo district, with a retail concept and, on the level below, a treatment room. Skincare treatments follow Dr. Laszlo’s original signature principles, although in its new incarnation The Institute has foregone the original’s rigorous exclusivity and is now open to anyone. While part of Denton’s original relaunch strategy involved actually closing up shop in certain markets, when it comes to duty free the emphasis currently is definitely on growth, and on building on successful domestic markets. Erno Laszlo is well established and recognized in major US doors like Saks, Neiman Marcus and Nordstrom, but the strong Asian pull is undeniable, with Asians accounting for some 80% of Erno Laszlo customers. This trend is boosted by the brand’s generational longevity, which means that customers from decades past are passing on their brand loyalty to the next generations. And the experience in Vancouver’s Holt Renfrew store, where over 80% of buyers are Asian, only reinforces the importance of the Asian purchaser. “Why are we getting the success in Asia?” Denton says. “It’s not because we’re a phenomenon; it’s because when people try the product they understand the ritual they commit to it and it gets results. In Americas social media is a bit like a revelation, but in Asia they’re more interested in the community, sharing their news, informative stuff. We don’t pay people, it’s word of mouth.” Denton believes that the brand is ripe for much greater success in

Asia, with a number of initiatives underway that leverage its already established presence in the Hong Kong domestic channel, where it is featured in five stores as well as at two Harvey Nichols counters. Taipei, where the brand opened six months ago, is one the latest conquests. “Chanel is number nine and we are number eight in the Sogo Taipei store,” Denton says. “No one knew the brand in Taipei before this.” Denton says that the iconic Laszlo black soap is a “phenomenon” in Taiwan, where some 200 pieces sell every day. “When we opened Taiwan we didn’t know it was going to be that hot,” he says. “Since our successful Tax Free exhibition in Singapore, we are now following up on our meetings, expecting listings mainly on Asian airlines as Asia is one of our main focus points,” says MarieClothilde Brulé. “We are strengthening our presence in Hong Kong and in Taiwan respectively, adding three more doors in Hong Kong in the fourth quarter on the local market—resulting in nine doors by the end of the year—and working on four new openings in Taiwan.” Laszlo has also recently launched aboard Starboard Cruise, with the line moving one of their ships to cover all of Asia, from China to Korea to Singapore. Erno Laszlo’s duty free road map has followed up the brand’s market accomplishments with submissions to Singapore Airlines, Eva Air, Dragon Air and China Airlines. Brulé says that all four have responded enthusiastically to Laszlo’s planned positioning of its Sea Mud Soap and Pre-cleansing Oil cleansing duo. Nuance-Watson Singapore is also upbeat, and Brulé believes that if the operator maintains its perfumes and cosmetics concession at Changi, Erno Laszlo will have prominent billing in the new stores. She adds that the brand is also in discussions with Everrich in Taiwan looking ahead to the first quarter of 2014. “This is the beginning of a great success story in duty free Asia,” she says. c

Sogo Taipei is where the brand opened six months ago, and is one of it’s latest conquests www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

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Interparfums USA

Interparfums USA partners up with Dunhill to unveil Custom

ANOTHER YEAR, ANOTHER BRAND Interparfums USA continues to expand by adding Dunhill to its long list of brand partners by HIBAH NOOR

ou can never accuse Interparfums USA of resting on its laurels. The fragrance and beauty company, which over its 30-year history has formed partnerships with the likes of Anna Sui, Banana Republic and Gap makes a conscious effort to add new brands to its portfolio. As a result, business is on the up and up with sales figures growing year-over-year. Its latest addition is Dunhill, the British luxury goods brand that specializes in readyto-wear and bespoke menswear, leather goods and accessories. According to Walter Johnsen Director of Global Communications, Interparfums USA, the company took over from P&G earlier this year and became Dunhill’s official partner on April 1. “We are thrilled to partner with Dunhill,” Johnsen says. “It’s a great prestige brand with an illustrious history; a brand that at its roots is about invention and innovation and very masculine and sophisticated. In the development of the new fragrance, we looked at Dunhill’s roots and started a new beginning from the foundation of Dunhill history.” Although Dunhill fashion is in limited distribution in the local market of the Americas, Johnsen has complete confidence of the brands success and enhanced visibility in the region due to a strong Interparfums marketing and sales team coupled with great distributor partners in the region. “Working with an entrepreneurial spirit makes us flexible. We can react quickly to market demand,” Johnsen adds. “This is our strength. We know how to respond to the needs of our local market partners while providing for a global landscape requirement.” The plan for Dunhill’s new fragrance called Custom will be to launch simultaneously in the local market and travel retail in the Americas. As a British brand, it has already carved niche markets where British influence is strongest; Canada, India and South Africa in addition to markets in Asian and Middle East regions. By focusing on the Americas, Interparfums aims to fill the gaps in Dunhill’s global presence. 98

“Our goal is to expand awareness and build the brand in the Americas; to recapture Dunhill’s sterling reputation and recognition in the region,” adds Johnsen. Interparfums USA is currently working with an agency to create an effective advertising campaign. The fragrance’s name and ambassador will be unveiled during the TFWA World Exhibition. The 100ml bottle will be priced at US$75 and will make its official debut in spring 2014. In Latin America, Interparfums USA’s biggest brand is currently Gap, whose US$35 price tag for a 100ml fragrance makes it highly accessible to the masses. Gap, as a brand and a fragrance, is performing especially well in Brazil, Argentina and Uruguay, with Paraguay also seeing expansion. Further cementing its strong presence in Latin America are two new his and her fragrances, launched worldwide in recent months. Gap Established 1969 Bright comes in a pink, high-gloss bottle topped by a silver

cap that replicates the 1969 premium denim button. The ultra-feminine fragrance features a burst of crisp fruits enveloped with lily, fresh muguet and fluorescent musk. Also recently unveiled is the Gap Established 1969 Electric for men, a fragrance that “conveys the attitude of the brand – lively and optimistic”. The package is similar to Bright – though blue, not pink – while its signature aquatic scent comes infused with black pepper and blue cedar wood. c

In Latin America, Interparfums USA’s biggest brand is currently Gap which is rolling out Gap Established 1969 Bright and Gap Established 1969 Electric for men

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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. 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 100

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.” c

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Victorinox has overhauled its bestselling model and renamed it the Chrono Classic 1/100th

Victorinox

RE-IMAGINING

TIME

Victorinox Swiss Army redesigns its duty free presence and launches a world premiere by HIBAH NOOR

ictorinox Swiss Army is known for reliable timeless products. But ask a person to name those products and they’ll likely name the European company’s iconic pocket knives and cutlery with their distinctive red and white cross insignia. The company wants travelers to think of another example of Swiss craftsmanship -- its wrist watches. More than half of Victorinox’s turnover still comes from its classic Swiss Army Knives and cutlery, an area the company has been involved in since the nineteenth century. But watches are a close second at 20% of company turnover. It also produces travel gear and personal fragrances. Victorinox has done well in the Americas market for a number of years where the company enjoys “a solid presence” according to Victorinox Swiss Army CEO Alexander M. Bennouna. It has also made significant developments in Asia and Europe over the same period. In South America, high retail taxes have caused many travelers to buy the company’s watches and accessories in duty free markets according to Bennouna. He added that high-

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quality duty free products are also becoming something that travelers expect as part of their holiday experience. “We have noticed in the past few years that consumers now view travel retail and duty free as an important part of the trip in itself. They not only want to shop, but also try, taste, discover and most importantly experience,” he says. That has led Victorinox to expand and upgrade its points-of-sale featuring its red and white cross logo in the duty free areas of South American and European airports as well its onboard offerings on flights in countries such as China. Bennouna notes that the company’s brand has also benefited from airports building dedicated retail environments for accessories that have allowed Victorinox to showcase the “quality and functionality” of the brand’s products. One of the company’s bestselling models is its Chrono Classic. “The Chrono Classic is both timeless and sporty and recognizable by the fluid forms of its case,” Bennouna says. “This sober but sophisticated styling combines simplicity and quality at an affordable price.” The company has recently overhauled the watch and renamed it the Chrono Classic 1/100th. The watch comes with a new FM13D quartz movement developed by Swiss watch movement design firm, Soprod. The new movement allows the Chrono to transform from a classic watch to a chronograph – accurate to 1/100th of a second – with a double push on the crown. At the same time the watch maintains the sober aesthetic that has become a trademark of Victorinox Swiss Army’s watches. Once the chronograph is started, the watch’s date indicator then becomes a counter at zero position. The red central hand displays the seconds while the watch’s other two hands count out the minutes and hours respectively. Another click of the watch and the wearer can return to the watch’s normal time-keeping

function, at the same time the chronograph is still running. The world premiere 100th/second display is numerical and powered by two rotating discs. The innovation required collaboration between Victorinox and Soprod to improve the movement to ensure its accuracy. Other features include a large-date perpetual calendar and a 41mm brush polished stainless-steel case. The model also carries the classic Swiss Army Officer’s Knife guilloche at the top of the watch face. It is available in two colors dark grey (with “Black Ice” PVD) and champagne (with Gold PVD). Bennouna says that he expects that Victorinox’s products will continue to give the company the best growth opportunities in the duty free and travel markets in the Americas over the next year. “All Victorinox Swiss Army timepieces share a common set of characteristics, which give them our distinctive status. High quality, innovative design and multi-purpose functions make [them] reliable companions for life. In a globalized world where expectations and needs are increasing in complexity, relying on a Victorinox product is certainly reassuring.” c Alexander M. Bennouna, CEO, Victorinox Swiss Army

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selling model c 1/100th

H NOOR

Furla

Best in show

Furla’s Icon line features new silhouettes for 2014, with new external closure details, an extra front pocket and detachable shoulder strap, pictured here in “vitamina”

by MELISSA SILVA

As Furla continues to achieve astounding growth, it’s new collection for 2014 delivers accordingly

Animal prints remain prominent for Furla, though more subtly introduced, with new cocco nappato creating leopard, panther and snake looks

t this year’s TFWA World Exhibition in Cannes, Furla will display its Spring/Summer 2014 collection. The collection’s color scheme is heavily influenced by nature and themes of weather, light and shade, and incorporates different materials. The popular animal prints remain in the new collection, though more subtly, with jaguar-printed leather and new cocco nappato creating leopard, panther and snake looks. Throughout the collection hardware has been upgraded with the Furla padlock reshaped with a new round classic lock on all styles except the gomma gel line. For travel retail, several models are expected to be highlights, all of which are separated into Furla’s Basic, Icon, Premium, Fashion, Candy and Business & Travel lines. Furla’s Basic line includes new upgraded and carryover shapes refreshed in cocco nappato, plus a new sporty style in perforated saffiano traforato. A new range of totes come in a variety of bright and neutral tones to create a visual impact. Available in saffiano, perforated saffiano, saffiano spirale and a special metallic look, colors include pergamena, luna, atlantic, menta, petalo, magnolia and sole. The totes are available in two sizes. This season, Furla’s Icon line sees the introduction of both new and updated s h ap e s , w it h new pochettes in coco and per-

forated leather and new medium shoulder bag styles in petalo and acero with external pockets. Iconic styles include a bold and practical Dome shaped bag in medium and large sizes with triple pockets and a detachable shoulder strap. A Pony Lux version is available, but the leather option is more likely to be at travel retail favorite, as it combines strong and neutral colors such as Atlantic, vitamina and sole with petalo, acero and choco. This style also includes an animal print line in jaguar printed pony hair, cavallino st giaguaro and vit st cervo leather. New silhouettes include a medium satchel, cross body and shoulder strap with new external closure details and an extra front pocket and detachable shoulder strap. Colorways include area, vitamina, petalo and sole. Furla’s Premium segment includes both carryover and new shapes. There is a new hobo and tote style with external pockets. Strong new shapes in soft cervo with two front pockets and simple flap functionality on top are secured with a Magnetic snap. Furla’s Fashion line has been expanded with new silhouettes and materials such as a stunning metallic and nappa leather theme in luna and petalo combined with gold or silver. A new shape is the mini crossbody in seasonal colors atlantic, vitamina and verve. New from Furla’s iconic Candy Line is the gomma gel collection, which includes a complete range of bags, shoes and accessories. Spring/ Summer 2014 will see a new Vanilla line with mini satchel with saffiano contrast materials. Colors include menta, rugiada and ink. The collection also features a new printed gomma gel satchel and mini cross body in cocco stampato, rugiada, magnolia and alba colorways and a new stripe theme combining gomma gel with nappa leather. Seasonal materials such as straw and cork are also used. The Business & Travel line offers five styles including a medium tote and travel bag, backpack, business tote and hobo. All fold flat for easy transport and come in a variety of colors including: Atlantic, fiamma, new cognac, onyx and petalo. Materials used range from 100% saffiano leather to combinations of saffiano with nylon and nappa. With a solid portfolio and an abundant addition for Spring/Summer 2014, it’s no wonder Furla’s growth has been through the roof over the last few years. “Furla’s travel retail category has registered a significant growth in the past two years,” says Gerry Munday, Director of Travel Retail. “The growth has been quite phenomenal, increasing by 93% from 2011 to 2012 with the number of doors up from 57 to 120.” Munday asserts that it’s Furla’s reliance on the quality and content of each collection that enables the brand to continue developing its presence in travel retail and ambitious plans for 2014. “I’m delighted to say that Spring/Summer 2014 does come up to all expectations and I and the team are very much looking forward to presenting it in Cannes this year.” c www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

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Accessory News

Bric’s launches Bellagio

Bric’s Bellagio collection is offered in four different color combinations: olive trimmed with cognac leather, cream-trimmed with cognac leather, pink trimmed with cognac leather and black trimmed with black leather

Italian luxury luggage and accessories brand Bric’s has launched Bellagio, its new luggage collection. The new collection features classic, iconic silhouettes redesigned using new ultra-light, durable materials. The pieces in the collection can be mixed and matched with pieces in Bric’s current collections. Some of the collection’s durable materials include: rainproof and selfhealing YYK zippers; ergonomically designed Japanese wheels that swivel 360 degrees; metal-hinged dividing panels, which allow for multiple interior compartments and easy cleaning; and retractable trolley handles that adjust to three positions. In terms of aesthetics, the collection is offered in four different color combinations: olive trimmed with cognac leather,

cream-trimmed with cognac leather, pink trimmed with cognac leather and black trimmed with black leather. Other features include matching Tuscan leather luggage tags and an internal card holder as well as interior suit hooks with locking hangers.

Bellagio features multiple interior compartments including suit hooks with locking hangers

T-Tech by Tumi focuses on mobile accessories T-Tech by Tumi has enjoyed a strong year so far, with a noticeable sales increase in the smartphone accessory category, likely a result of the current global growth of mobile accessories. “Smartphones and tablets are now an indispensible and integrated part of our technological ecosystem,” says Cameron Trice, Jasco Executive Vice President of Marketing and Product Development. “Based on recent trends and projected revenue in the industry, I would argue that by the year 2015, over 40% of the total projected revenue for mobile accessories will be generated by smartphone accessories.” Trice feels that the growth of smartphones and smartphone accessories has significantly influenced both retailer buying trends and consumer trends. “Consumers who purchase a smartphone or tablet from an instore location are anticipated to spend nearly three times as much on add-on accessories compared to consumers who make their purchase through an online channel,” says Trice. “However, many of the aftermarket accessory purchases occur online, leaving an opportunity for retailers to boost their mobile accessory offerings.” Trice adds that recent retailer buying trends stress the importance of offering a diverse line of mobile accessories at various price levels online and offline. Regarding consumers, specifically in the Americas, Trice feels that functionality is essential, but aesthetics and design play a crucial role. “Mobile accessories [that] emphasize style speak to [a consumer’s] identity and enhance [their] on-the-go lifestyle. T-Tech by Tumi accessories allow form and function to work together, rather than comT-Tech has experienced a growing demand for mobile accessories pete.” utilizing Bluetooth connectivity, such as its Bluetooth Keyboard With smart104

phones influencing retailer and consumer trends, it comes as no surprise that T-Tech’s bestsellers have become equally influenced by these technologically advanced devices. “Our bestselling products include T-Tech by Tumi smartphone and tablet cases T-Tech by Tumi’s bestsellers currently include its smartphone cases available in a variety of colors and materials outfitted with leather, wicker, travertine and reclaimed wood patterns and textures,” says Trice. “We are also experiencing a growing demand for mobile accessories utilizing Bluetooth connectivity.” This demand had led to the development of T-Tech’s existing audio line as well as growing its Bluetooth connected product line, which will both launch in time for the 2014 Consumer Electronics Show. Speaking of shows, to ensure it maintains relevance, T-Tech makes attending industry tradeshows—like the Consumer Electronics Show and other duty free shows—a priority, as both provide valuable opportunities to gauge sentiment on new product introductions. “Reactions from key influencers and media deliver instrumental qualitative data that supports our design decisions,” says Trice. Attending tradeshows also supports T-Tech’s marketing strategy, as the shows provide opportunities to target potential buyers and industry influencers. “Roughly 30% of our marketing efforts cater specifically to the travel and duty free industry—including print and digital,” explains Trice. Latin America and Asia-Pacific provide the greatest opportunities for growth for T-Tech in 2014. “Mobile communication continues to infiltrate as data-based services provide meaningful opportunities in the public and private sector,” says Trice. “We are excited to be at the forefront of a new wave of global growth within the accessory category.”

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mpartments gers

martphone

Sunglass News

Marcolin designs Acqua, the new collection from Roberto Cavalli

Toxic stays ahead of fashion trends

“Stilla” features slim upper rims and its temples feature two crystal drops that frame the logo

Marcolin has created Acqua, the new capsule collection from Roberto Cavalli inspired by water. Designed for a free, determined and elegant woman, the new collection features three models which mirror the new Roberto Cavalli perfume. Of the new designs is “Acqua” (RC781S), featuring a wide and feminine shape, a metal logo and rims which accentuate the solid acetate frames. Acqua comes in four different colors with matching shaded lenses. Also from the collection is “Hydra” (RC782S), which features linear metal frames available in gold, palladium and bronze and are combined with color transparencies. “Stilla” (RC783S) completes the collection with its frontal portion supported by slim upper rims. Its profile is slim and sophisticated and its ornate temples feature two crystal drops framing the logo. In other company news, Marcolin hosted its Latin America and Travel Retail division in its New York headquarters for buying week in August, where it presented

new SILMO 2013 and Special Projects collections to key distributors and retail accounts. Marcolin displayed its new sun and optical models set for release in January 2014 from several brands including CoverGirl Eyewear, Diesel Shades, DSquared² Eyewear, Just Cavalli Eyewear, Kenneth Cole New York, Kenneth Cole Reaction, Marcolin Eyewear, Montblanc Eyewear, Roberto Cavalli Eyewear, Swarovski, Timberland, Tod’s Eyewear and Tom Ford. Marcolin representatives attended a cocktail hour and presentation by Marcolin USA CEO Fabrizio Gamberini, prior to a showing of the Off Broadway interactive show Fuerza Bruta at the Daryl Roth Theatre in Union Square, followed by a private dinner. In addition, clients were also invited to attend the evening session of the US Open at the Billie Jean King National Tennis Center and the Arthur Ashe Stadium in Queens, NY.

Although fairly new to travel retail, luxury polarized sunglass and eyewear brand Toxic—launched in 1998 by parent company Opticaset—has had a strong year so far, with sales up 30% compared to last year. Currently only present only in North America, the brand is looking to expand its business globally. In order to stay relevant, the team at Toxic continually researches new trends which are then incorporated into its collections. “As a result, the Toxic brand is always ahead of fashion tendencies,” says David Ifrah, President, Opticaset. With consumers looking for more fashionable frames and quality lenses at competitive prices, Toxic is right on point to meet these demands. “Fashionable frames and good quality lenses sold at affordable prices—this is what Toxic stands for,” says Ifrah. In addition, Toxic’s personal touches, namely ensuring Toxic designs and models fit perfectly on each customer’s face, increase the brand’s appeal.

Toxic’s new collection features on-trend detailing such as tortoise shell, metal accents and polarized lenses

For Toxic, part of maintaining relevance in the category involves applying innovation both in business practices and the products themselves. “Being innovative is important for our company,” says Ifrah. Toxic’s LCD (TLCD) models feature a unique design with seven adjustable levels and excellent UV protection. “By using new technology we have made a revolutionary design that allows customers to adjust the transparency of the polarized lenses they’ve purchased.” “Acqua” features a wide and feminine shape, a metal logo and rims which accentuate the solid acetate frames www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

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Sunglass News

Marchon adds G-Star Raw to its portfolio for Cannes At this year’s TFWA World Exhibition in Cannes, Marchon will display the new sunglass collections from several brands and will also introduce a new brand—G-Star Raw. “Our stand design has been changed to display our duty free-recommended assortments and merchandising guidelines on back walls and will also feature a new gondola concept,” says Erwan Le Guennec, International Travel Retail Director, Marchon Amsterdam. Since the end of last year, Marchon’s dedicated travel retail team has focused on developing its sales in duty free, which has proven successful since it’s achieved double-digit

growth this year when compared to the same period in 2012. “We are currently discussing how to open additional doors and introduce new brands to the market with our current partners and new accounts,” says Le Guennec. Part of increasing sales involves meeting consumer demands and current trends, which Marchon does via its design teams. “Our design teams work closely with our licensors to ensure that our collections express the DNA of each brand and incorporate their latest fashion trends as well as technological innovations from the eyewear industry,” says Le Guennec. One of the trends Le Guennec has noticed recently

is the increasing demand for polarized lenses, a trend Marchon has incorporated into several collections. Currently in the Americas, Marchon’s top performing sunglass brands include ck Calvin Klein, Lacoste, Michael Kors, Nike and Salvatore Ferragamo. By investing in airport signage advertising and in-store visuals, Marchon hopes to maintain the top positions of these brands and further growth in the Americas and other regions. “We expect high growth in all regions, benefiting from the strong demand for our brands and the development of our distribution,” Le Guennec says.

Michael Kors and Lacoste are two of Marchon’s top performing brands in the Americas

Mondottica soars with Ted Baker and other brands The designer and distributor of high fashion eyewear brands, Mondottica is exhibiting for the second time at TFWA World Exhibition in Cannes (Red Village, K20). Mondottica significantly improved its travel retail distribution this year, particularly for the Ted Baker brand. With airport listings at Manchester, Prestwick and Cardiff with Ted Baker, Converse and Christian Lacroix, as well as airline listings with Aer Lingus, Condor, Myanmar Airways, Cebu Pacific and Air Niugini, Mondottica is steadily increasing its presence in travel retail. “We are delighted to once again be exhibiting at TFWA World Exhibition to launch our new brand and our new season’s premium collections,” says Julie Hawkins, Sales Manager. “We have had a successful year and we are extremely confident that this [success] will continue.” Some of Mondottica’s current brands include: Cacharel, a new brand for Mondottica this year, features feminine shapes. The brand was created in 1962 in the Southern French city of Nimes, named after founder Jean Bousquet’s favorite local bird. Christian Lacroix delivers high-fashion styling and bespoke designs that reflect the creativity and design details that have contributed to giving the name its iconic status. Hackett, inspired by Hackett’s “Bespoke” tailoring service, offers the Hackett London Bespoke Sunglass collection, which features quality nylon polarized lenses and designs inspired by traditional British dress with a modern twist. Pepe Jeans London Eyewear collection features designs in an array of colors and offers male, female and unisex models. 106

Converse eyewear offers bold colors and the signature star logo in three collections—the Converse Backstage collection, the Converse Star collection and the Converse Heritage collection.

Mondottica exhibits its host of brands during the TFWA WE

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s host of WA WE

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Tintamar

Spring has

RYAN WHITE

Tintamar’s newest limited editions range varies from fresh florals and nautical stripes to traditional prints and shimmering metallics

SPRUNG

Tintamar’s new limited editions for spring bring florals and nautical stripes to TFWA WE in Cannes

intamar has established itself in the industry as the ingenious small accessories and leather goods maker. Founded in 2003 by Edith Petit, the brand designs, makes and distributes stylish problem-solving bags, recognized for their practical and aesthetic qualities, which make their owners’ lives easier every day, on trips or for their hobbies. The company was named after an island in the French Caribbean which has since become a make-believe place of inspiration and creation for bags ready to take out on the streets throughout the world. Ahead of this year’s TFWA WE in Cannes, the company announced the launch of the new season’s limited editions range, varying from fresh florals and nautical stripes to traditional prints and shimmering metallics in a world tour of color and style. English Garden, in delicate pinks and turquoises against a white background, has been applied to the best-selling VIP One bag organizer and the small cross-over “pochette bandouliere.”

A complementary color scheme, Flowers Spray has been used for the Easy Travel Vanity Bag which, with its three generous zipped compartments and carrying handles, will keep all of a lady’s toiletries and make-up clean and accessible wherever she travels. Additionally, Acid Flowers, a zesty yellow flower on a white background with yellow details, has been designed for the VIP One, Access Mini and small cross-over bags for a burst of spring freshness. Moving away from florals, the Vichy gingham check version of the toiletries bags comes in “outremer” dark blue for the capacious men’s Vanity Bag and either pink or turquoise for the lady’s version. Additionally, the rich deep colors of southern France are reflected in the Provence prints applied to the VIP One and small cross-over bag offered in “flamand rose” dressed with pink details and tags or in “outremer’ blue edged with vibrant orange. Moving from France to America the Ban-

dana in red or blue paisley pattern has been applied to the VIP One, the small cross-over and the Vanity Bag. Adding a touch of glamour to the collection, Tintamar has also produced the VIP One, the mini and the small crossover purses in Sun Powder, offering a choice of lustrous bronze, silver or gold. Finally, as a perfect gift for lovers, there is a special VIP One in plain black nylon decorated with a Be My Valentine “Love” motif. Tintamar will exhibit the limited edition collections alongside an assortment of its core Intelligent Daily Bags at TFWA World Exhibition on stand RB8 in Riviera Village from October 21 to 25.

The rich deep colors of southern France are reflected in the Provence prints applied to the VIP One and small cross-over bag offered in “flamand rose”

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Supplier News

The Philips Disney products will be co-branded and sold through a variety of the companies’ retail channels

Philips teams up with Disney to revolutionize the children’s lighting category Royal Philips recently announced the creation of a portfolio of innovative, inspiring and playful lighting products designed to bring the Disney magic to life for kids and families through lighting. “Combining Philips’ expertise in lighting with Disney’s beloved characters will harness the power of light to make children’s bedrooms a more imaginative place for them to read, play and sleep,” the company notes. This development represents the latest achievement in Philips’ journey to transform the home lighting experience and make it digital. The products will be co-branded and sold through a variety of complementary Philips and Disney retail channels starting in Europe and the US from September, with Asia and Canada to follow later this year. The Philips Disney portfolio range includes breakthrough concepts in connected lighting that allow children to interact with Disney stories and characters. Indeed, the connected lighting concept allows children and parents to connect e-books with their lighting to interactively create a magical lighting experience that makes reading more fun and allows families to become fully immersed in the story. The range also includes lights featuring “light that comforts,” such as nightlights that emit a gentle glow, to products designed to help promote a regular sleep pattern for children. “With innovation and inspiration at its core, this collaboration fuses Disney’s unrivalled ability to create characters and stories that spark the imagination of children of all ages with our lighting innovation leadership. Together, we will deliver an exciting portfolio of advanced and interactive lighting solutions that the whole family can enjoy,” comments Eric Rondolat, Chief Executive Officer of Philips Lighting. “It is our ambition to become the category leader known for bringing digital and immersive lighting experiences to the children’s bedroom.”

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“This product range is a perfect illustration of how Disney storytelling can extend into children’s bedrooms through an innovative and compelling consumer product offering,” adds Simon Philips, Executive Vice President & General Manager, Disney Consumer Products, The Walt Disney Company EMEA. “We are proud to work with Philips to help create positive and comforting reading and bedtime environments for families.” As of November of this year Philips will be introducing the first products out of the Philips Disney portfolio to travel retail, starting with the Philips Disney Softpals, designed to scare away little ones’ bad dreams. “With the Philips LED SoftPals range you can set bedtime rituals and be assured that your child won’t get scared in the night if they wake up. The perfect night time friends, the Philips LED SoftPals—in the form of classic Minnie and Mickey, and Monster’s Inc. stars Sulley and Mike characters—will help even the most nervous of children feel safe at night,” says Melvin Broekaart, Head of Global Travel Retail. Philips Global Travel Retail can be found at Blue Village G6 during TFWA WE.

Buckley London launches Rose Gold, FourEver and Infinity Collections at Cannes Building on the best selling and award winning Russian Trio and I Love You bracelet designs, Buckley London will be extending the collection with a selection of new rose gold styles which will be unveiled at TFWA WE in Cannes this October. The new collections incorporate rose gold plating with Buckley London’s signature micropavé detailing, using beautiful Austrian and high quality cubic zirconia crystals. The Rose Gold Elegant Twist collection incorporates a rhodium-plated detail throughout, whilst the modern and inspired Sleek Sparkle Stacker collection incorporates Buckley London’s signature pavé crystals with rhodium-plated charms. The Rose Gold Bezel collection offers a chunky bracelet with white crystals tightly knit together to form gorgeous sparkling bezel accents. A complementary styled necklace and earrings complete this collection. In related news, Buckley London has also announced the launch of the FourEver and Infinity Interchangeable Earring Collections. These beautiful interchangeable collections allow the wearer to become their very own creative designer, changing their look with up to 16 different combinations. Each collection starts out with a rhodium micropavé crystal surround, and comes with different variations of complementary solitaire and round stud designs that are made to fit together perfectly, taking the solitaire stud from simple elegance to sparkling glamour. The FourEver collection comes with a selection of pearl and gold-plated studs, as well as black and white crystal solitaire studs. The Infinity collection comes with additions of pink, blue, yellow and red crystals, bringing this collection to eight sets for a combination of up to 16 different looks. Both sets are made from the highest quality materials and are presented in a delightful gift box. They are hypoallergenic and nickel safe, and come with a 1-year international warranty. Attendees to this year’s TFWA WE in Cannes can visit Buckley London at Red Village H4.

Buckley’s sleek Sparkle Stacker collection

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Colors and combinations shine in Scorpio’s new watch and jewelry offer Scorpio Worldwide invites attendees at this year’s TFWA WE to visit them at Mediterranean Village P8 for the latest in innovation in the watch and jewelry category. The company is offering latest collections from highly successful brands such as Aviator, Sturmanski, Timberland, Montine and Pierre Cardin, as well as adding new lines and putting more focus on re-emerging brands such as Beverly Hills Polo Club. Scorpio’s iconic Aviator range is exclusively designed and manufactured for travel retail, with the philosophy of building reliable watches that meet the rigorous standards of time instruments at an affordable price point (US$95 - $195). New models in Cannes include gents World Time and World Cities watches in various colorways, along with Ladies models with either interchangeable straps or bezels. The latter offers a gorgeous sparkling evening watch with plain or crystal set bezels in two designs—perfect for making an impression on a night out. Also new at the stand, Timberland introduces a new “Campton watch” for gents, while fashionable models in the increasingly popular designer Beverly Hills Polo Club range include gents models with striped straps in blue and red or black and grey. Ladies versions are also offered for BHPC and Montine, including models with trendy oversized faces with Roman numerals in popular rose gold. Jewelry sets continue to be an inflight and travel retail favorite, notes Scorpio. Pierre Cardin and Andre Piasso are both exclusive brands for the sector, offering fashionable and versatile jewelry sets at affordable price points, whilst Hot Diamonds will unveil their latest price-busting offering exclusively for inflight. The Andre Piasso collection, at competitive entry price points, offers a fabulous choice of contemporary sets and individual pieces, from a pretty rhodium-plated petal bracelet and bi-colored gold and silver rose necklace to full jewelry sets including two pendants and four pairs of earrings in various designs. Expected to be particularly popular is

Victoria Collection mixes scents with accessories, function with fashion

a heart pendant with six interchangeable colored heart-shaped discs which insert inside for a different daily look. Colored stones are another feature for the coming season, with both Andre Piasso and Pierre Cardin offering set options with different colored stone combinations of earrings and pendants. Additionally, Pierre Cardin offers watch and jewelry gift sets for ground shops with floor fixtures and countertop display units. All pieces are hypoallergenic and nickel-free compliant, and come in sophisticated, modern packaging that is perfect for airlines and ground stores. Finally, Scorpio has announced the addition of a new brand on the stand, Lydia, which offers manmade pearl necklaces, pendants earrings and bracelet options, all in different colors. The Andre Piasso collection includes a popular heart pendant with six interchangeable colored heart-shaped discs which insert inside for a different daily look

Saffiano leather, noted for its exceptional suppleness, the structured bag features trend-accented styling. The matte black and the silver cloud versions are offered for customers who want a wear-everywhere basic, while the ultraviolet piece is available “to channel your inner it girl.” Additionally—and of special interest for the travel retail and duty free channel—the brand has introduced a range of travel essentials. The signature cosmetics cases aim to balance the need for immediate practicality and functionality with the desire for strong fashion values. This collection is available in multiple shapes and sizes and is aimed at the traveling customer striking the perfect balance between must-have function and runway-worthy panache.

This season Victoria’s Secret has set its sights on mixing its signature fragrances and contemporary glamour-styled accessories through the new Victoria Collection, available at Victoria’s Secret Beauty and Accessories. The new collection introduces pairings that the brand says combine the iconic scents with fashion-forward accessory stylings. The Victoria fragrance is a formula created with premium perfumers from both sides of the pond—Paris and New York. The rose-scented floral mixes the brand’s exclusive Victoria Rose blend with fresh fruit accents and crème brûlée. “The result is totally irresistible,” the brand says. “A statement scent that’s equal parts play- Victoria’s Secret introduces a range of travel essentials fully chic and timelessly sexy. The attention to detail extends to the bottle design, luxe enough to display and all tied up with an iconic handcrafted bow.” As the complimentary accessory, its signature “Victoria Tote” has been created to combine luxury accents with classic styling. Made of genuine

The Victoria Tote is a trend-setting accessory

The floral Victoria fragrance

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Confectionery News

New Cadbury gondola debuts at Singapore Changi Mondelez World Travel Retail (MWTR) has joined forces with confectionery retailer FNA to debut its new Cadbury gondola at Singapore Changi Airport. Positioned at the open side along the main walkway of FNA’s The Cocoa Trees confectionery outlet in Terminal 2,

MWTR’s new Cadbury gondola brings the joy of the brand to the retail shop floor. By deconstructing the brand’s DNA and passing it through a creative filter, MWTR has developed a retail merchandising unit which brings Cadbury to life in a fun way and welcomes travelers to Joyville. Key elements of the Cadbury gondola include giant Cadbury chocolate chunks, the newly created Cadbury aero plane visual and most importantly, a Cadbury purple color scheme. The new gondola offers an eye-catching entrance to the store and an easy-to-navigate

retail experience for shoppers. For Mondelez WTR, the gondola’s Singapore debut also addresses two key pillars of the company’s Delighting Travelers category vision: More Shoppers and More Often. The unit’s prominent position in the store, next to the main walkthrough path, creates an inviting entrance, thus attracting more shoppers to the overall confectionery offer. In addition, an easy-to-navigate layout, with clear segmentation of products into gifting and snacking offers, encourages shoppers to return more often. By creating a memorable in-store shopping experience, the Cadbury gondola also increases the likelihood of travelers re-visiting the store on a future joyful journey. “The Cadbury gondola clearly stands out as it communicates ‘joy’ for the brand and sets an unprecedented standard in the way we merchandise products,” says a spokesperson for FNA. “Placing it at the entrance has definitely helped to attract travelers and drive footfall to our store.

Cadbury’s unique merchandising unit offers an eye-catching entrance to the store and an easy-to-navigate retail experience for shoppers

Kinder introduces new brand mascot Kinder Pilot, the brand new mascot for the Kinder confectionery brand, is set to fly into airport stores worldwide in 2014. With his smart pilot’s hat and flying goggles, the new brand mascot will be a symbol of air travel. Highly visible, Kinder Pilot will be an ambassador in travel retail for the Kinder brand. A 360-degree platform has been developed around this character to guarantee a unique shopping experience. Dedicated gifting articles of Kinder Surprise T7 and Kinder Chocolate have been developed which will be supported by traffic-generating point-of-sale materials and interactive in-store activations. This new portfolio is the culmination of a process in which exclusivity and innovation have been the key factors driving development, and the Ferrero management team is confident that there will be more in the future. “Kinder is the chocolate especially designed for kids,” says Francois Godin, Managing Director, Ferrero Travel Market. “We must play a leading role in the channel and become the first choice for all those parents who want to bring back some joy to their kids. It is a huge opportunity both for us and for the trade.” At the TFWA World Exhibition in October (Green Village, J35), Ferrero Travel Market will unveil the first two new travel retail exclusive products: a Kinder Pilot plush toy carrying a backpack filled with 150g of delicious Kinder chocolate and a Kinder Pilot plastic character containing seven Kinder Surprises. These new products from the famous Kinder brand will be supported by in-store displays and point of sale materials to maximize visibility and boost sales, including aircraft-shaped display racks in white, blue and orange—Kinder’s signature colors. 112 112

The colorful Kinder POS material will be applied consistently all over the world allowing for instant recognition and brand loyalty. The innovative promotional material will include an in-store digital experience to entertain consumers with graphics telling the story of Kinder Pilot on his travels. The restyled Kinder Surprise T7 will soon be joined by his fellows in a variety of themed hats. “The Kinder pilot character is an innovative marketing tool for the Kinder brand which will be used to strengthen the brand identity, create engagement and forge an emotional bond with customers,” says Godin. “Our aim is to use the Kinder Pilot to expand our portfolio in travel retail in an entertaining way which will appeal particularly in the gifting segment.”

The Kinder Pilot will hit shelves next year

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Perfetti Van Melle brings several novelties to Cannes Perfetti Van Melle (PVM) divides its travel retail range into two broad areas: snacking and gifting, with the former dividing into self consumption and sharing, and the latter informal and formal. Within its product matrix, where lines are further divided into adults and children, the company has identified a number of opportunities for product development, particularly for sales of snacking items at the point of sale or checkout. At TFWA World Exhibition this year (Mediterranean Village, P17) the company is introducing several new lines which it believes are perfect for till point sales. These include Mentos Gum Bottles in white sweet mint and white green mint, with each handy container including 65 pieces; Mentos Pouch Bag, a brightly colored premium re-sealable pouch bag containing 175g Mentos Dragees in a mint, fruit and strawberry mix; and Smint Spearmint, offered in a redesigned dispenser of 120 pieces, ideal for snacking and sharing and the perfect till point sales item. To support the products, PVM is also offering retailers a checkout merchandising unit which can be filled with a wide range of products alongside PVM sugar confectionery. “We realize the value of checkout merchandising units for confectionery sales in particular, but of course PVM does not offer every need in this sector, so we are offering a unit that can include a variety of products including chocolate, jellies, savory snacks, etc.,” says Susan de Vree, Global Travel Retail Manager. Both floor standing and counter top units are offered. In the on-shelf offer, PVM has

also identified new gifting opportunities for adults and children. These include Mentos Jumboroll Dutch Design, a new look for a classic favorite to revitalize sales. This is the first limited edition pack designs for Mentos mint dragees. The first is a typical Dutch design from PVM’s home country, but future offers could include tailor-made designs for specific retailers or regions. Also new is a Chupa Chups Mega Chups Limited Edition, containing 15 assorted flavor lollipops. The Megachups covering foil is replaced with a new look funky design reminiscent of a disco ball. The new Mini Mix Bag contains a mix of Chupa Chups, Mentos and Fruittella. Ideal for use as a pencil case or toiletries bag, versions come in Glamorous Mix for girls and Cool Mix for boys. Lastly, the new Chupa Chups Smurf House is perfect for kids who love the new Smurfs 2 film. Each house-shaped pack contains six strawberry lollipops, four Smurfines and one game. The Chupa Chups Smurf

House follows the huge sellout success of the Smurfs Markers. PVM believes enticing consumers into the retail area through bright, colorful and fun merchandising units is essential. New for airports, and on show on the stand in Cannes, is a bright Chupa Chups and Mentos branded truck in which children can sit next to a fun character to have their photo taken. The unit carries a wide variety of Chupa Chups and Mentos products and takes up little floor space (H 1300mm x W 950mm x L 1960mm).

To support Perfetti’s new products, the company is offering retailers a checkout merchandising unit which can be filled with a wide range of products alongside PVM sugar confectionery

Amy Wilson joins Hershey Company’s World Travel Retail

Amy Wilson is Hershey’s Category Strategist

Hershey Company’s World Travel Retail has appointed Amy Wilson as its new Category Strategist. Wilson will be responsible for fueling confectionery category growth through insights and collaboration with retail partners on total confection category solutions in all duty free channels across all regions. Wilson previously served as a Category Insights Manager for The Hershey Company. She will be based at Hershey World Travel headquarters in Hershey, Pa. “I look forward to partnering with our retailers to utilize knowledge and insights to create an improved shopping experience in the confection category,” says Wilson. “Creating excitement for the shopper and delivering innovative solutions for the category will capture new demand.” Hershey World Travel Retail General Manager Steve Bentz has expressed his excitement to have Wilson join his team. “We are delighted to welcome Amy to the team, who joins us at a key time in our continued development,” Bentz says. “Amy brings significant category management experience to the team. She will be a resource for both sales and retailers globally.”

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Lindt The Lindt travel retail Promotion Kit features a flexible layout that allows managers to tailor the promotional setup precisely to their needs

How sweet it is

Just in time for Cannes, Lindt launches two limited edition tubes, scheduled to hit shelves in 2014

t’s hard to believe just how far Lindt has come from its humble beginnings as a small pastry shop in Zurich in 1845. Back then, confectioner David SprüngliSchwarz and his 29-year-old son Rudolf Sprüngli-Ammann were the only ones holding the reins. Today, the company has grown to include six production sites in Europe, two in the US and distribution and sales companies on four continents, with a wide selection of products listed in more than 100 countries around the world. Lindt’s delectable chocolate-based products are the main reason for its success, starting from father and son’s homemade pralines in the 19th century to the recently debuted Lindt Wafer, which comes complete with smooth hazelnut filling. Lindor is by far the top key franchise of Lindt, with over 4,700 chocolate balls consumed every minute around the world. With a wide flavor spectrum and global brand potential, Lindor market share has doubled over the last few years. And now, Lindt has introduced yet another innovative product on the market: the Lindor Limited Edition Tube containing an exquisite selection of six different Lindor flavors. Two different tubes will be available—a pink-colored package for Spring, featuring the new flavors of Caramel and Stracciatella, and a silver one for the cooler months of autumn, which includes popular flavors like Milk, Hazelnut, White and Dark, as well as Caramel and Extra Dark 60% Cocoa. Both elegant and functional, the tubes make an eye-catching and delicious gift for all occasions. The company is banking on a number of factors to help drive sales of these limited edi116

tion products. For one thing, Lindor enjoys a high level of brand recognition worldwide, with Lindor Assorted being the best-selling Lindor product in the travel retail segment. Furthermore, the fact that they’re available for only a short time will hopefully attract existing Lindor consumers to add the tubes to their collection. Lastly, the company can rely on its reputation for providing quality flavor profiles at affordable prices, and the fact that these tubes feature six different flavors will also be a key selling point. To kickstart the launch of the Spring Flavour Mix, the company is offering a promotional package comprised of dedicated POS material, an exclusive GWP and indulgent sampling activities that will draw consumers’ attention and facilitate sales in shops. Highimpact and visually appealing POS materials include a tube display, wall gondola, banner and floor stickers. With its chocolate-colored wooden and golden elements, the travel retail Lindt Promotion Kit is another impactful way to set up at the POS. Its flexible layout allows managers to tailor their promotional setup precisely to their needs. Whether dealing with a 4- or 50 square-meter promotion space at a multibrand POS, the modular Lindt Promotion Kit provides instant and maximum brand impact in any environment. And if that weren’t enough, the Lindor tube display can be placed at its center for optimum effect. A second POS placement allows for maximum exposure and effectively sets the stage for sampling. If a second POS placement is not practical at a location, it’s recommended to implement the use of Lindor

by CINDY SOSROUTOMO

ball floor stickers to grab customers’ attention and lead them to the shelf. Shelf talkers can then communicate to them product benefits as a way to support sales. Finally, there’s no better way to generate buzz than by offering free gifts, something the company knows only too well. For the Lindor Spring Flavour Festival, Lindt is offering an exclusive Lindor bag for free with a purchase of any three Lindor tubes. Managers can encourage additional purchases by combining the bestselling Lindor tubes with the new limited edition items. As a result, consumers are provided with a mix & match activation through an extended multi-buy option of their favorite Lindor tubes with the new Lindor limited edition offering. The new Lindor Tube Spring Mix (398g) will be available February 2014. The limited edition for Autumn (400g) will hit shelves in August 2014. c Lindt is introducing two new limited edition tubes with different flavors—a pink-colored package for Spring and a silver one for the cooler months of autumn

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Electronic Report Travel Blue decided to expand its bestselling travel pillow collection, adding a new range of children’s travel pillows

TECHNICAL COMFORT With smartphone sales on the rise and comfort accessories in demand, the electronics category is seizing an opportunity for growth by MELISSA SILVA

The electronics category seems to have been governed by two predominant themes this year—technological convenience and comfort when traveling. With smartphone sales on the rise and traveler numbers steadily increasing, the category is faced with both a challenge and an opportunity: the challenge to meet traveler’s technological and comfort needs and the opportunity to increase the number of impulse purchases. Go Travel has noticed the increasing number of smartphone users and understands that almost every traveler today has a smartphone, tablet and in most cases, both. “Most travelers now carry smartphones or tablets and this has presented a huge spike in sales for associated accessories,” says David Lomas, Director, Go Travel. “Consumers want convenience and opt for clever and useful gadgets and accessories that not only appeal visually, but are both affordable and useful, too.” With more and more travelers investing in expensive electronic devices, it’s only logical that the need for accessories will increase, thus creating a profitable opportunity for the electronic and accessory categories. But of course, it’s not just travelers that have an interest in electronic devices and

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accessories—buyers are showing equal interest. “First and foremost, buyers have become more interested in electronics accessories,” says Lomas. “In the past, the category was more of a necessary evil than the buoyant category which it has now become. Electronic buyers are more open to the fantastic opportunity it presents to drive quick and often impulse purchase sales.”

The proof is in the product In response to the current demand for smartphone accessories, Go Travel developed its Power Bank range, which will be launched at this year’s TFWA World Exhibition in Cannes. The range offers a selection of two devices that allow for charging electronic devices on the go. “[The Power Bank range] is an ideal

lightweight, emergency backup when you don’t have access to power,” says Lomas. The first of the Power Bank range’s two devices is small, slim and compact, making it ideal for traveling as it doesn’t add extra weight. The second is a larger, high-capacity, rechargeable external power source with two 5V USB outputs that are powerful enough to charge two devices simultaneously. Go Travel’s Power Bank range is compatible with all USB charging devices, and can charge all smartphones, cameras and tablets. Because of the significant rise in demand for associated accessories, Go Travel has gone so far as to increase its research and development budget over the last couple of years. “This is predominantly due to the unrelenting penetration of tablets and smartphone devices in the global marketplace,” says Lomas. “Most of our innovations in electronics look to provide simple, convenient solutions that allow travelers to use their devices wherever they travel in the world.” Travel accessories brand Travel Blue has also taken note of the current demand for smartphone accessories and has acted accord-

In response to the demand for smartphone accessories, Go Travel developed its Power Bank range, which offers a selection of two devices that allow for charging electronic devices on-the-go AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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Travel Blue’s new TECH range features a total of 130 products, including travel adaptors

ingly. At this year’s TFWA World Exhibition (Red Village M24), Travel Blue will unveil its new TECH range, which features a total of 130 products. Developed over the course of 18 months, Travel Blue executed an extensive development program, which resulted in the new range. Designed to meet travelers’ charging needs, TECH offers universal charging and offers a product selection that includes adaptors, USB chargers, headphones, speakers and cables. “There are a good number of electronic and electrical products on the market, but we felt that no brand was offering a complete range of items to cover every ‘Connect and Charge’ need,” says Jonathan Smith, Head of Travel Retail, Travel Blue. “We wanted to come up with a range that was all-encompassing, easy to select and buy, and straightforward, yet at the same time met all the demands and standards of the modern-day traveler.”

2,500 travelers around the world to determine what factors were required to create the ideal neck pillow. This research led to Cabeau’s highly-successful Evolution Pillow. “We feel like the pillow we’ve developed—because it has the opinion of 2,500 plus travelers behind it—is the pillow of the people,” says David Sternlight, Founder, Cabeau. “The feedback we’ve received has been nothing short of phenomenal.” In addition to its original memory foam version, Cabeau’s Evolution Pillow is also available in a microbead and Lycra pairing at a lower price point, giving travelers more choice. “A lot of travelers don’t know exactly what they want,” says Lomas. “We’re trying to find out what people are going to want in the future, not only what they need right now.

Ultimately, our goal is to have travelers rested by the time they get off the plane.” Noticing the demand for comfortable neck pillows, Travel Blue also decided to expand its bestselling travel pillow collection, adding a new range of children’s travel pillows, which will be launched in Cannes. The new pillows are available in several animal designs, including a cat, dog, penguin, elephant and a panda. Although the travel pillow is Cabeau’s primary venture, the company has also expanded into additional comfort accessories for traveling with its new Midnight Magic Sleep Mask, featuring a patented adjustable nose bridge. “Most sleep masks are one-size-fits-all,” says Sternlight. “Some masks claim a complete blackout, and although that may be true with someone who has a perfectly shaped button nose, there are thousands of different nose shapes in the world.” With this realization, Cabeau conducted market research and developed a mask with an adjustable nose bridge that moulds and holds around any nose shape. “Unless the mask fits perfectly around your nose, you’re going to have light coming in,” explains Sternlight. “So we put a padded strip inside the nose bridge, which can mould to the nose perfectly.” The Midnight Magic Sleep Mask is the first mask in the world that guarantees a complete blackout on any nose shape. As today’s technological landscape continues to improve with new phones, tablets and other gadgets on the rise, it doesn’t seem like the demand for related accessories is going to slow down anytime soon. Likewise, with the number of travelers increasing globally, comfort accessories will also continue to be in demand, which can only mean one thing for brands in the category: room for growth. c

The quest for comfort Aside from the rise in smartphone and tablet accessory purchases, other accessories—those geared more towards physical comfort while traveling—are on the rise, such as neck pillows and eye masks. Although staple items for most travelers, neck pillows and eye masks aren’t exactly novelties in the industry, but finding the right quality and fit has become a recent demand of more and more travelers. Although relatively new to travel retail, travel accessory company Cabeau has made creating a comfortable neck pillow its mission. The company spent 18 months conducting survey-based research at airports with over

Cabeau’s highly successful Evolution Pillow is available in both memory foam and in a microbead and Lycra combination

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Braun

THE BUZZ

ABOUT BRAUN

New products and an increased focus on travel retail are key to company growth by HIBAH NOOR

hen it comes to personal care only the best products will do, a sentiment that Braun adheres to in all its endeavors. Its three newest products – all of which will be showcased at this year’s TFWA World Exhibition in Cannes – are certainly no exception. And according to Kathrin Mellin, Travel Retail Marketing for Braun, the ‘buzz’ about its latest shaver is at an all-time high. “Our biggest innovation in decades has been the recently launched °CoolTec shaver with its unique cooling bar in the shaver head,” she says. “Through research activities, we concluded that sensitive skin is an issue for a lot of men. The °CoolTec features innovative thermo-electric cooling technology that actively cools down the skin during the shaving process, preventing skin irritation and adding a tingling of freshness to the skin.” The shaver also won the 2013 reddot product design award, one of the most prestigious industrial design awards worldwide. For the ladies, the new Satin Hair 7 hair straightener is also picking up steam, thanks to built-in sensors that ensure perfect results and ultimate heat protection. This SensoCare technology ‘reads’ hair at 20x per second to detect moisture levels, which then automatically adapts to an ideal temperature for smooth, longer-lasting styles. And equally exciting is Braun’s Silk-épil SkinSpa, a unique combination of the company’s top Silk-épil epilator with a skin-refining attachment that sweeps away dry skin cells. In addition to preventing ingrown hair, it also activates the skin’s natural regeneration process to ensure skin beauty, smoothness and radiance. “Lady grooming is a key category for Braun, which is why we dove deeper into the world of female beauty rituals. Approximately 60-70% of women exfoliate their body, over 50% do it once a month or even more often,” adds Mellin. Long synonymous with personal care and grooming, it’s obvious from these three products alone that Braun shows no signs of slowing down. The company is represented in all major domestic markets in the Americas and 120

Braun’s new °CoolTec shaver

has strong distribution with duty free retailwon the 2013 reddot product design award, one of the ers that carry electronics and the electronic most prestigious industrial personal care category in Latin America. Howdesign awards worldwide ever, as Wolf Ayen, Sales Agent Travel Retail, points out, there are still many retailers that “We hope to profit from the positive atmodo not sell the category for various reasons. “We consider this as a mistake since market sphere and overall economic growth linked to research data clearly proves that electronics is the 2014 FIFA World Cup in Brazil. Surely the among the most sought after categories that large number of visitors passing through the consumers expect to buy and find in travel airports and thus duty free shops will increase our sales,” she says. “In addition, many shop retail,” he says. For retailers who do carry electronics, owners are likely to update their shop interiAyen identifies smart phones, tablets and their ors and the product presentation in order to corresponding accessories as core categories. make both more appealing to consumers. The Retailers are giving more space to electronics attractive display solutions we offer to opera“since there is a clear consumer demand and tors throughout the Americas can certainly expectation to find them in duty free.” He also contribute to that.” c noted the upward trend towards private label products to increase margin, as well as a shift from a technical or product feature perspective to product benefits and gifting. With this new focus comes new strategy, something the company has already thought out. “Our key objective is to make the category more accessible to consumers by improving shopper navigation at the point-of-sale. Also, the way to communicate to a travel retail consumer who is not necessarily an electronics shopper is quite different compared to a domestic shopper. Our clear intention is to lower purchase barriers for consumers and to foster impulse buying in cooperation with our retail partners,” Ayen adds. Assuming that all major markets, including that of travel retail, continue regular economic development, then Mellin fully expects steady company growth in the Americas. What will Silk-épil SkinSpa is a combination of Braun’s drive more business in the region, she notes, top Silk-épil epilator with a skin-refining is full assortment at shelf, touch and feel units, attachment that sweeps away dry skin cells permanent secondary locations, promotional plans embedded in The new Satin Hair 7 hair straightener seasonal highlights features built-in sensors that ensure perfect and continued staff results and ultimate heat protection training. And as for which region offers the greatest growth this year and beyond? No surprise here, it’s Brazil.

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Special Report: Cognac

Since its founding in 1765, the House of Hennessy has been known equally for having the largest selection of eaux-de-vie in the world and unparalleled expertise in the art of blending, an art that has been refined through seven generations of master blenders from the Fillioux family. Paradis Imperial is the ultimate expression of a blend that was first created as a birthday gift for Tzar Alexander I in 1818, commissioned by his mother, the Empress of Russia. This exquisite blend pays homage to its roots in both the Imperial Court of Russia as well as the Hennessy Paradis cellars, which house the oldest and rarest eaux-de-vie, Paradis Imperial is the blend of more than 100 of Hennessy’s eaux-de-vie from the 19th and 20th centuries, singled out immediately after distillation to develop and evolve in the most exceptional way. “A cognac unlike any other thanks to its elegant, subtle refinement.” Yann Fillioux, Hennessy Master Blender

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Introducing Le Voyage de Napoleon,® a new collection from Courvoisier,® available exclusively in Travel Retail. This portfolio captures the brand’s rich, pioneering heritage, forever linked to one of the most famous travellers in history. Courvoisier® was one of the few luxuries Napoleon brought with him when he was sent into exile. Thus it became known as ‘The Cognac of Napoleon’, a title that proudly adorns every bottle to this day. This special edition trio of our renowned VS, VSOP and XO cognacs will appeal to loyalists and discerning drinkers alike.

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Cognac Report

SETTING THE

benchmark Americas Duty Free speaks with six Cognac brands about the importance of taking the lead when it comes to quality, tradition and innovation in the spirits category by RYAN WHITE

ognac has a reputation that is, in many ways, the epitome of what many spirits strive for in the travel retail market. Universally lauded as a drink for luxury-driven connoisseurs and steeped in centuries of history and tradition, Cognac is recognized as a spirit for those who appreciate the very best of the best. Fortunately for travelers on the hunt for luxury spirits, the Cognac houses that are currently well placed in duty free have never been afraid creating special editions that consistently raise the bar in terms of quality and high-end appeal. Americas Duty Free speaks with six popular Cognacs to discover how they continue to entice an increasingly discerning consumer demographic in the airports of the Americas and beyond.

fantastic way of reminding consumers that they’re purchasing a product that is, in many ways, inimitable. To this end Hennessy has introduced the newest addition to its prestige range of cognacs: Hennessy Paradis Impérial. Blending centuries of heritage with exquisite

connoisseurs. Paradis Impérial is a blend of more than 100 of the finest eaux-de-vie from the 19th and 20th centuries, boasting an elegant, subtle refinement. During the rigorous selection process for Hennessy Paradis Impérial, only the most refined and balanced eaux-de-vie, which represent less than 1% of any given vintage, are selected. The Master Blender and his Tasting Committee singled out these eaux-de-vie immediately after distillation to develop and evolve in the most exceptional way. Inspired by Hennessy Paradis, also a blend of more than 100 different eaux-de-vie, Paradis Impérial blends even more delicate eaux-devie, the youngest of which is 30 years old. The blend is described by Yann Fillioux as “a Cognac unlike any other thanks to its elegant, subtle refinement.” Intense and delicate, light and rich, Paradis

Plume Frapin’s carafe is adorned with two quills on its sides and topped with an ornate stopper featuring two more interlaced quills in rose golden pewter with 18 carat rose gold

The difference tradition makes Of course, for a Cognac as highly regarded as Hennessy, including a nod to the brand’s rich history in a new release is certainly a

Hennessy’s Paradis Impérial is a blend of more than 100 of the finest eaux-de-vie from the 19th and 20th centuries, boasting an elegant, subtle refinement

refinement, the release of this incomparable marque celebrates a 200-year old story steeped in elegance and tradition. On December 24, 1818, Dowager Empress of Russia Maria Federovna asked Maison Hennessy to produce its most exceptional cognac as a birthday present for her son Tsar Alexander I. Nearly 200 years later, Hennessy pays tribute to this bespoke royal gift with the release of Paradis Imperial. Inspired by the imperial creation of his ancestor, current Master Blender Yann Fillioux recreated the blend as the ultimate endowment for luxury

Impérial boasts a flavor made up of subtle notes of jasmine and orange blossom spiced with smoky accents that create a unique balance. On the point of tradition, Hennessy tells Americas Duty Free that Paradis Impérial has been created to allow consumers access to a luxury experience that was first had by the most important members of the Russian Impérial Court from the 19th Century. Paradis Impérial is sold in a stunning decanter made of crystalline glass designed by Stéphanie Balini, an award-winning French Baccarat designer who is known for her poetic

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Cognac Report and precise mastery of working with crystal. The vessel boasts the iconic Hennessy shape, and the crystal cabochon tops an 18-carat gold and silver collar. Each decanter is individually numbered and is included in a luxurious gift box. No stranger to the concept of tradition, The House of Frapin was established in 1270 in the southwest of France and to this day uses the image of a quill as an homage to François Rabelais, son of Antoine Rabelais and Anne-Catherine Frapin. The House of Frapin has announced the release of Plume Frapin, made from around twenty eaux-de-vie and produced uniquely from the Ugni Blanc grape variety grown in the 240 hectares of vineyard around the Château Fontpinot, as the latest in its continuing tribute its ancestors. This Premier Cru Cognac (100% Grande Champagne) has been aged for over 60 years in hundred-year-old barrels in order to allow its perfect balance to develop, and has since been stored in the Pierre Frapin cellars. On tasting, this cognac reveals notes of candied fruits (oranges, apricots and ﬁgs) and liquorice, while its strong and complex bouquet reveals woody aromas in the mouth, reﬂecting its vivid amber color. To celebrate its prestigious origins, the

pers, Plume Frapin has been produced in a limited series of just 500 numbered bottles. “Plume Frapin, and indeed all of our cognacs, are supreme quality products coming only from our vineyard,” says Jean-Pierre Cointreau, CEO of Cognac Frapin. “This allows us to control every step of the production process from the vineyard to the bottle.” Frapin is concentrating on Asia, Europe and North America when it comes to duty free, and Cointreau tells us that a recent award for the best cognac tasted at the International Spirits Competition in July has helped create a buzz around the brand. To learn more about Plume Frapin, as well as the company’s other products, Cognac Frapin invites attendees to the year’s TFWA WE to visit its stand at Blue Village AA5.

Recognition from one’s peers Indeed, recognition from spirits industry experts is inarguably just as important as tradition when it comes to building buzz around a brand, and Louis Royer has had an exceptional year when it comes to awards and accolades. Louis Royer Force 53, a relatively new expression that comes in a compact 500ml bottle in a very contemporary metal mesh canister,

medal at the third annual Challenge to the Best French Wines and Spirits for Asia. Since its launch in 2006, Louis Royer Extra has received more than 10 Gold medals, including the 2011 trophy at the prestigious Hong Kong International Wine and Spirit Competition, a ﬁtting testament to the quality of this very special liquid. Philippe Pichetto, Louis Royer Export Manager – Americas, tells us that the company is keeping the momentum high, having recently appointed Anthony Rocher and Jennifer Manez as Brand Ambassadors based in New York. “They’ve done tastings and/or trainings in over 20 airport and border store outlets in the region over the past year,” he explains. And in terms of securing listings, Pichetto tells us that Haleybrooke International, Louis Royer’s duty free agent in the Americas, is moving forward aggressively, having secured “many new listings in the market.” “Canadian duty free has always been a good market for Louis Royer,” explains Roger Thompson, Vice President of Haleybrooke International. “Our business continues to expand, with new airport and border shop listings. We’re expecting that 2013 will be our best year to date for Louis Royer in Canada.” Finally, President of Haleybrooke International Patrick Nilson adds that consumers in Asia are just as enamored with the brand as the judges of spirits competitions seem to be: “Louis Royer Cognac is very strong in China, so our business has grown very quickly in the last two years with outlets that have Chinese traffic. Sales of XO and Extra have been especially strong.”

Targeting travelers

Louis Royer XO (pictured) has been selling well in Asia, and Louis Royer Extra recently won a Gold medal at the third annual Challenge to the Best French Wines and Spirits for Asia

house of Frapin chose to give this cuvee a presentation worthy of a ﬁne jewel—an elegant carafe, unique in form and adorned with two quills on its sides and topped with an ornate stopper featuring two more interlaced quills in rose golden pewter with 18 carat rose gold. Marking a truly rare ﬁnd for travel retail shop124

recently secured a Double Gold medal at the San Francisco World Spirits Competition (SFWSC). Also at the SFWSC this year, Louis Royer XO and Louis Royer Extra both received Gold medals. In fact, Louis Royer Extra is also making waves in Asia, having this year won a Gold

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Just as Louis Royer and Haleybrooke International, Dobbé Cognac tells Americas Duty Free that it understands the importance of the travel retail channel. As a result, the company has created a special Duo Pack aimed at travelers that will be sold speciﬁcally in airport duty free stores. The pack contains two 500mL bottles, one VS and one VSOP. Dobbé will be premiering Dobbé Cognac owns its own vineyard and distillery, and boasts a large stock of aged eaux-de-vie, setting the brand apart from many other Cognacs

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Maison Dupuy’s latest release, Auguste, is housed in a mouth-blown crystal decanter, making the offering perfect for discerning travel retail consumers

the pack at this year’s TFWA WE at its stand in Marine Village R5. Much like the House of Frapin, Dobbé Cognac owns its own vineyard and distillery, and boasts a large stock of aged eaux-de-vie, setting the brand apart from many other Cognacs. The Dobbé family has been producing fine Cognac for eight generations, ensuring that the quality of the liquid is paralleled only by the tradition employed in its production. Importantly for duty free buyers, Dobbé Cognac distributes a large portfolio of premium spirits that includes liqueurs and wines in addition to Cognac. “With Dobbé Cognac specifically we’re targeting both traditional and new Cognac connoisseurs all over the world,” says Virginie Dobbé, Marketing Manager for Dobbé Cognac. “Our aim with the Dobbé Cognac brand specifically is to create a positive and strong image in which tradition and modernity intermingle,” she continues. “We invite attendees to the TFWA exhibition this year to stop by our stand to see this intriguing mix of Old World knowledge and modern flair.” Indeed, Cannes will be a Cognac lover’s dream as a number of suppliers are releasing new products. Maison Dupuy, owned by Cognac House THS Bache-Gabrielsen S.A., has announced that it will be introducing its latest and most precious release, Auguste, at this year’s TFWA WE in Cannes. Hinting at the quality of the liquid within, Auguste is housed in a mouth-blown crystal decanter, making the offering perfect for discerning travel retail consumers. The eaux-de-vies that make up Auguste date from the 1910s, with the youngest being from the 1940s. “Auguste is the ultimate symbol of Maison Dupuy’s century and a half of experience, and the culmination of everything we have learned

since the House was created in 1852,” says could need (brushes, mane comb, curry comb, the company. “Auguste is the essence of cover and more). Of course, also nestled the finest eaux-de-vie the Cognac region within the trunk is a precious carafe conhas to offer.” taining an exceptional blend of very old Indeed, as a result of the rare eaux-de-vie vintage cognacs. used in its production, Auguste is a deep, This Grande Champagne blend reveals an rich amber. Nosing reveals delicate hints incredibly rich palette of aromas, with candied of wood, iris and jasmine, reflecting the citrus fruit notes accented with dashes of rich, large concentration of Grande Champagne dried fruit. This intense, entrancing bouquet used. The palate is described as smooth and is rounded off with an extremely refined hint full-bodied, with flavors ranging from rich, of rancio. Taking the spirit of exclusivity that jammy fruit to spicy hints of pepper. underpins any Cognac house’s activities in Attendees to this year’s TFWA WE in travel retail to a new level, Prince Hubert Cannes will be able to see Auguste for de Polignac has thus far created only two of themselves, as well as the entire Cognac these trunks, noting that any future editions Dupuy range, at Bache-Gabrielsen’s booth will have to be made to order as creating the in Blue Village D1. Knight Trunk requires 180 hours of work from Finally, Maison Prince Hubert de experienced craftsmen. Nonetheless, with the Polignac has unveiled its latest creation demand for ultra-premium Cognacs at an allinspired by the world of equestrianism: the time high in travel retail, there’s no doubt that “Knight Trunk.” The very first Knight Trunk there’s a niche market of Cognac aficionados went under the hammer at the 8th annual willing to pay for the privilege of owning such La Part des Anges auction on September a rare item. c 19. Organized by the BNIC, the National Interprofessional Federation for Cognac, this annual event brings together some of Cognac’s most prestigious names—valued customers, highprofile collectors and journalists from all over the world—to participate in an auction featuring some truly exceptional lots. A joint initiative launched in a spirit of generosity and solidarity, all profits from the auction go to charity. Prince Hubert de Polignac notes that the Knight Trunk was well received at the auction for the same reasons that duty free will likely embrace it in Cannes. Packed into a sumptuous The “Knight Trunk” is Prince Hubert de Polignac’s latest creation, inspired by the world of equestrianism case are all the accessories a rider www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

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Camus

(from left) The XO and VS variants from Camus’ newly redesigned Elegance range

The epitome of elegance

Camus re-imagines its iconic Elegance range to pay homage to the family’s long tradition of groundbreaking Cognac making by RYAN WHITE

he largest independent Cognac house to remain within the founding family, Camus celebrates its 150th anniversary this year. For the occasion, the company has revealed a new, clean-cut design for its iconic Elegance range. In the world of cognac, creating a brand in 1863 was daring. In 2005, designing a range, namely Elegance, bottled in a minimalist design that ignored the traditional codes of cognac, was no less revolutionary. Now, eight years after its inception, the range has been re-imagined. A high level of precision, refinement and very close attention to detail have gone into creating the design, the packaging and the whole atmosphere of the new Elegance range, notes Camus. Each bottle now bears the signature of Cyril Camus, creator of the range and heir to the family heritage. Furthermore, the new gift boxes depict the outline of the Château du Plessis, home of the Camus family, with its iconic stained-glass dome. The grapes on the packaging symbolize where the Camus family of winegrowers comes from and the strong call of the land which gives their Cognac its distinctive aromas. In an impactful, clean design, the iconic Camus clover leaf is now engraved into the glass bottles of the Elegance VS and VSOP variants as a reminder of the first ever bottles sold in 1863 and the importance of all the hard work—from one generation to the next—that goes into crafting Camus Cognacs. Each bottle also now has a screw cap and a unique QR code, serving both to guard against counterfeiting and to provide consumers with an opportunity to further their knowledge and experience in real time via a direct link to Camus’ website, its Youtube channel and its Facebook page.

Four special creations The Elegance range consists of four very special variants: VS, VSOP, XO

and Extra. The VS bottle boasts a light-colored and slightly iridescent label chosen for the youngest cognac in the range. Described as fresh and vibrant, and made from a selection of wines from different crus that present distinct aromatic potential, VS Elegance is slowly doubledistilled exclusively in 25hl-capacity charentais potstills. The eaux-de-vie that have been carefully blended into the VSOP variant are necessarily more mature than those used to make VS Elegance. The label is darker, but still bright with a metallic finish. The elegant lines of the bottle are the same as for the VS, with the packaging designed to form a triptych representing the dome of the Plessis, the CAMUS family home. The very pure and clear-cut design of the XO variant openly pays homage to the Plessis, and features the signature of Cyril Camus embossed in the glass. In an atmosphere of luxury and achievement, it is the flamboyant transparency made from the gold and amber highlights of this precious selection of eaux-de-vie, resulting from years of patience, which shines through. Finally, emblematic cognac of the range, Extra Elegance is exceptional, having received numerous awards, both for the richness and subtlety of its aromas and for the outline of its innovative and timeless decanter. This blend is composed of eaux-de-vie mainly from the Borderies, Grande Champagne and Petite Champagne areas, carefully selected for their superb aging potential and complementary richness. “Elegance is the refinement of our blends and the beautiful way our products are presented,” says Cyril Camus. “Elegance defines the places where they are best enjoyed. In today’s world, elegance is a must and the term is perfect to describe what I wanted this range to become.” Attendees at to this year’s TFWA WE in Cannes can find the newly redesigned Elegance range, as well as the rest of Camus’ award-winning portfolio, at the Cognac Camus stand in Blue Village F11. c

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TFWA CANNES 2013 - BLUE VILLAGE AA5

Plume Frapin Exceptional Cognac in a limited series of 500 numbered decanters The very quintessence of the savoir-faire of the Cellar Masters who built the Frapin name, Plume frapin is a prestige Cognac. In homage to Franรงois Rabelais, son of Antoine Rabelais ans Anne-Catherine Frapin, the Cognachouse took the image of the quill. This Premier Cru Cognac 100 % Grande Champagne has been produced uniquely on the 240 hectares vineyard around Chateau Fontpinot, distilled and aged on this Frapin single estate. The terroir, the art of blending, patience and respect for nature make Plume Frapin an exceptional Cognac.

BP 1, F-16130 SEGONZAC

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Rémy Cointreau

Louis XIII Rare Cask 42.6 is only the second distinctive barrel in the venerable Cognac’s nearly 140-year history to be judged worthy of the Rare Cask moniker

RARITY

REFINED

Rémy Cointreau Travel Retail Americas and DFS partner for the exclusive launch of Louis XIII Rare Cask 42.6 in Americas travel retail to October 31 by RYAN WHITE

émy Cointreau Travel Retail Americas has announced that for the launch of Louis XIII Rare Cask 42.6 in Americas duty free, DFS North America will have exclusivity until October 31. The news was officially unveiled at LAX’s Tom Bradley International Terminal in a ceremony attended by DFS and Rémy Cointreau Travel Retail Americas. The product is housed in DFS’ Rare Pillar showcase, and is revealed by pulling aside outer display panels designed to be similar to the coffret that contains the decanter. “As the ultimate expression of the House of Rémy Martin, Louis XIII Rare Cask 42.6 contains unparalleled craftsmanship, richness and aromatic intensity unlike any other competitor. We are confident connoisseurs worldwide will feel an immediate connection with our ultra premium spirit. Rémy Cointreau Travel Retail Americas is certain this launch plan will help further strengthen and grow our continuous partnership with DFS North America and worldwide as a key operator,” stated Edwin Garcia, Marketing Director, Rémy Cointreau Travel Retail Americas.

The perfect balance Louis XIII Rare Cask 42.6 is only the second distinctive barrel in the venerable Cognac’s nearly 140-year history to be judged worthy of the Rare Cask moniker, reflecting the complex unpredictability of nature as well as the contributions of four generations of gifted cellar masters. The rare blend offers an exquisite taste profile featuring an incredible richness and aromatic intensity, and an alcoholic strength of 42.6% ABV, slightly higher than the 40% of classic Louis XIII. This exceptional tierçon contains only enough cognac to produce 738 decanters of Rare Cask 42.6, which have been distributed to a select list of retailers worldwide. Each decanter is engraved with a unique number from 001 to 738.

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Pierrette Trichet, Cellar Master of the House of Rémy Martin, first discovered this particular cask in 2009 during her usual tastings of the outstanding 40- to 100-year old eaux-de-vie aging in casks set aside for inclusion in the prestigious Louis XIII blend. Noting its distinctive aromatic complexity, she began to follow its evolution more closely. However, as cognac is a living, mysterious product, nature had yet to perfect her masterpiece. In the fall of 2012, Pierrette and Deputy Cellar Master Baptiste Loiseau revisited the contents of the cask and discovered it had finally achieved its long-awaited perfect point of balance. Louis XIII Rare Cask 42.6 celebrates the classic Louis XIII blend of 1,200 eaux-de-vie, 100 years in the making, here featuring salient aromas that are unique to this one precious cask. Discovered in the fall, it appropriately features autumnal notes of plum and dates, mingling with flavors of gingerbread, prune stone and ginger, and punctuated by a final touch of tobacco leaf.

The looks to match The iconic black crystal decanter for the Louis XIII Rare Cask collection was created

exclusively by Baccarat, utilizing all the skill and expertise of the famed crystal house’s talented masters. The decanter owes its shape to the famous Louis XIII bottle whose original design was inspired by a metal flask discovered on the site of a 16th century battle. A team of more than 20 master craftsmen complete more than 50 steps in creating a single Rare Cask decanter, all of which must be carried out while maintaining the opaque crystal at a constant temperature. The Louis XIII Rare Cask 42.6 decanter is distinguished by its fine detailing, beautifully adorned with a 22 carat rose gold neck with delicately engraved quatrefoil patterns on both sides. “DFS is pleased to continue our long standing relationship with Rémy Martin and our mutual commitment to rare and extraordinary bottles,” says Polly Nelson, DFS North America Managing Director. “In the past several years we have had success with bottles such as the Rémy Martin Louis XIII Black Pearl for US$55,000. Rémy Martin will be featured as part of our premium spirits in the new DFS locations in the new terminal at Los Angeles International Airport. We are looking forward to even more partnerships and success in the years to come.” c

(from left) Rémy Cointreau Travel Retail Americas Sales Manager Tam Nguyen; DFS Group CFO Mark James; DFS North America Managing Director Polly Nelson; Los Angeles World Airports Managing Director Media and Public Relations Mary Grady; DFS North America Operations Control Director Nicolas Landinez; Rémy Cointreau Travel Retail Americas Marketing Director Edwin Garcia; and DFS North America General Manager Los Angeles International Airport Robert Calzadilla at the recent Louis XIII Rare Cask event at LAX’s TBIT

AMERICAS DUTY FREE & TRAVEL RETAILING TFAP OCTOBER 2013

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Cognac News by RYAN WHITE

Bisquit’s success over the past 12 months is attributed partly to its expanded listings in key airports and tourist locations in Moscow, Singapore, Dubai, Taipei and Seoul

Le Voyage de Napoleon is a collection of Courvoisier’s renowned VS, VSOP and XO (pictured) cognacs and is designed to appeal to modern, discerning consumers

Bisquit to mark +68% duty free volume at 2013 TFWA World Exhibition Bisquit is set to mark the annual TFWA World Exhibition in Cannes, France with an annual duty free growth of +68% in volume, nearly double the previous year’s sales. The company will be exhibiting at the Distell booth located at Yellow Village E30 for the duration of the exhibition. Bisquit’s success over the past 12 months is attributed partly to its expanded listings in key airports and tourist locations in Moscow, Singapore, Dubai, Taipei and Seoul. The House has also strengthened support of its existing listings through activation programs, including cognac tastings and high-end gift packs for selected markets. Indeed, Bisquit has introduced a number of product innovations available in duty free, including Bisquit Prestige, the House’s

first 21st century expression with a unique bottle design and taste profile; the Experience Bisquit Coffret, which addresses travelers’ needs for gifting and impulse purchases; and the exclusive Bisquit XO Gold, a limited edition of 1,819 decanters embellished by hand. “We are looking forward to our time at TFWA—the most important show for duty free in the world—and to sharing in the tremendous duty free growth that the House has had over the last year,” said Vincent Chappe, President of the House of Bisquit Cognac. “As the knowledge about Bisquit expands, demand for our authentic cognacs is growing and we are pleased to be present in an ever-increasing number of duty free outlets.”

Hine presents new decanter signed by Andrée Putman For its 250th anniversary, Cognac Hine has unveiled Hine 250, an exceptional cognac presented in a Baccarat crystal decanter signed by Andrée Putman. The offering is a limited edition in every sense of the words, with only 250 bottles available worldwide. “I had to choose a cognac with exceptional qualities,” says Eric Forget, Hine’s Cellar Master. His choice led him to a barrel containing an eau-de-vie selected in 1953 by François and Robert Hine, who were then running the company. The particularly difficult weather conditions of this great year have given this cognac qualities which enabled it to acquire an outstanding longevity. “This Grande Champagne cognac needed 60 years to reach its peak and it is the most exquisite cognac that I have ever tasted since I have been at Hine. The fine harmony of its aromas presents a great richness of fruity flavors which are quite extraordinary for its age,” continues Forget.

The Hine 250 decanter, crafted by Andrée Putman, perfectly reflects the Putman studio’s philosophy of elegance combined with simplicity. Hine 250 is nestled in an elegant but playful presentation case that is designed to, as Olivia Putman puts it, “have a second life” as a luxury jewelry box. Only 250 bottles of Hine 250 are available throughout the world, making it limited edition in every sense

Beam Inc launches Courvoisier Le Voyage de Napoleon in North America duty free Beam Inc recently launched Le Voyage de Napoleon, Courvoisier’s new exclusive duty free offering, across North American airports following its successful launch earlier in the year in European and Dubai duty free. Showcased at TFWA Cannes and IAADFS, Le Voyage de Napoleon is a collection of Courvoisier’s renowned VS, VSOP and XO cognacs and is designed to appeal to modern, discerning consumers whilst tapping into the growing trend towards luxury products. Inspired by one of the most famous travelers in history, the collection is presented in distinctive and opulent packaging inspired by the journeys of Napoleon, a figure intrinsically linked to Courvoisier’s rich, pioneering heritage. Featuring a linear design incorporating gold, burgundy and black across the range, the packaging celebrates the star that the French conqueror called upon for luck at the start of each battle. Beam Inc Director of US, Mexico and Caribbean Duty Free Jose Aponte says: “Duty free is an important channel for Beam and provides a great platform to showcase our brands to a global audience. “Le Voyage de Napoleon collection will appeal to Courvoisier loyalists as it offers the key expressions across the price range and the luxurious presentation reflects the quality, tradition and craftsmanship of Courvoisier,” he continues. “Its exclusivity makes it more desirable for duty free shoppers who look for luxury brands with a point of difference to those in domestic markets.”

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TFWA Liquor Preview

NEW ON THE

TRADESHOW FLOOR Americas Duty Free presents a guide to what’s new in spirits at this year’s TFWA World Exhibition by RYAN WHITE

FWA WE has long been known as the world’s premier duty free event, and one look at this year’s exhibitor list makes it clear that the 2013 exhibition won’t disappoint. Below Americas Duty Free presents a guide to what’s new in the dynamic world of spirits in Cannes this year.

SPI Group

Stand: Blue Village, D3 New product(s) featured: Stolichnaya Night Edition Description: In the daylight, Stoli Night Edition appears to be bottled in a minimalistic, frosted glass vessel that is simple and reserved. The front label has a subtle, almost hidden pattern that absorbs the energy of light throughout the day. When the lights go out, the exclusive bottle releases a beautiful, radiant pattern using special glow-in-the-dark ink. Stoli Night Edition will be available in travel retail from October to December 2013. Contact: spispirits-info@spi-group.com

Constellation Brands Barton & Guestier

Stand: Yellow Village, D42 New product(s) featured: Thomas Barton Réserve Saint-Julien, B&G Réserve 1725 Description: Thomas Barton Réserve Saint-Julien is a new prestigious French AOC in the high-end range of Bordeaux wines. Exclusive for duty free and the on trade, Thomas Barton is a homage to the founder of the Barton & Guestier. B&G Réserve 1725, one of the oldest B&G brands, is still a worldwide bestseller today. Available in AOC Bordeaux Red and White, the range now features a new, eye-catching label for travel retail. Contact: Marina Julien, Marketing and Travel Retail Manager (marina.julien@barton-guestier.com)

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Stand: Yellow Village, D26 New product(s) featured: Inniskillin Reserve range Description: Constellation Brands is very excited to be launching its brand new Inniskillin Reserve Icewine, developed specifically for travel retail. These Icewines will be available in all airport and airlines globally, focusing on the following key varietals: Oak Aged Vidal, Riesling, Cabernet Franc and a brand new Sparkling Cabernet Franc Icewine. Contact: Amanda Dolotowicz, Business Development Manager - Travel Retail (amanda.dolotowicz@cbrands.com)

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Angus Dundee Distillers

Stand: Green Village, L55 New product(s) featured: Tomintoul Single Sherry Cask 1977 Speyside Single Malt Scotch Whisky Description: This rare single Sherry cask release has been bottled in an attractive 70cl decanter style bottle and is presented in a stylish gift box. The whisky was distilled on the April 12, 1977 and has matured ever since in Sherry cask number 3691. Bottled this summer at 54.9% ABV, the whisky has not been chill-filtered so as to retain its full flavors. Only 297 bottles were produced and each bottle has been individually numbered. Contact: Duncan Baldwin, Regional Director (dbaldwin@angusdundee.co.uk)

William Grant & Sons

Stand: Gold Village, GO 2 New product(s) featured: Glenfiddich Cask Collection Select Cask and Reserve Cask Description: Glenfiddich Cask Collection Select Cask is an elegant single malt matured in specially handselected aged Bourbon, European Oak and Californian Red wine casks and married in Glenfiddich’s unique Cask Collection Solera Vat for an extra smooth and complex flavor. For Reserve Cask, a rich single malt is matured in specially reserved Sherry casks and married in the unique Glenfiddich Cask Collection Solera Vat to create an exceptionally deep and mellow whisky with layers of warm vanilla, deep rich fruits and subtle oaky tannins. Contact: Ian Taylor, Global Marketing Manager – Global Travel Retail (ian.taylor@wgrant.com)

World of Patria International

Stand: Blue Village, G13 New product(s) featured: Chase Rhubarb Vodka, William Chase book pack Description: Herefordshire rhubarb is slow cooked then marinated with award winning Chase Vodka in copper pot stills before being distilled a fourth time to infuse the flavors. More rhubarb is then macerated and filtered to leave a delicate pink color. Initially a limited edition, Chase Rhubarb Vodka has been so successful that it is now available in 70cl bottles. An unusual yet delicious combination, Chase Rhubarb Vodka is a perfect addition for travel retail. Additionally, a brilliant trio pack designed to look like a Union Jack book, this William Chase adventure includes Chase Vodka, Chase Marmalade Vodka and Williams Gin. It’s the perfect travel retail gift. Contact: Rob Nichols, Managing Director (rob@worldofpatria.com)

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TFWA Liquor Preview

Tequilera Corralejo Brown-Forman Travel Retail

Stand: Green Village, M70 New product(s) featured: Jack Daniel’s Master Distiller’s Collection: Jess Motlow Edition Description: Launched in March 2012, the Jack Daniel’s Master Distiller’s Collection was created to honor the seven master distillers who have crafted Old No.7 since the iconic whiskey’s 1866 inception in Lynchburg, TN. This, the newest edition, is the second in the collection and is designed to honor Jack Daniel’s second Master Distiller Jess Motlow. The offering will be a travel retail exclusive. Contact: Rick Bubenhofer (rick_bubenhofer@b-f.com)

Stand: Blue Village, E1 New product(s) featured: Marques De Cuba Habanero Rum Description: By the year 1700, Spanish ships were arriving in the New World colonies loaded with products from Spain. One popular product was sweet wine stored in barrels, which were later emptied after use. These empty barrels were filled with Chinguirito, which is rum that was produced in Mexico, and shipped back to Spain. Now, Fraternity Spirits World is revitalizing this very special rum and making it available to travel retail globally. Contact: Raffaele Berardi, Managing Director (raffaeleb@tequilacorralejo.com.mx)

Ian Macleod Distillers

Stand: Red Village, L7 New product(s) featured: Glengoyne 35 YO Highland Single Malt Scotch Whisky, Wincarnis 1887 liqueur Description: Glengoyne 35 YO’s bespoke hand-blown crystal decanter has been engraved with gold inlay and is individually numbered on its gold collar. Presented in a solid oak lacquered gull wing box with a hand-stitched “Bentley Red” leather interior and base, the gift box also comes complete with an individually numbered leather book. Wincarnis 1887 liqueur is based on a modern interpretation of a classic Victorian recipe for Wincarnis Tonic Wine. Sharing many of the same ingredients, Wincarnis 1887 liqueur has been created specifically for today’s palate, produced with the same care and attention for quality and taste. Contact: Andy Lane, Travel Retail Director (andy.lane@ianmacleod.com) 134

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VIS IT U S AT GR AT AY D

CAN NES TFW A

T ’AL HE UN BIO D N H ERBE R OT EL, G SUI RUE TE DES , SER B

97 POINTS AT THE ULTIMATE SPIRITS CHALLENGE, NEW YORK

“Broker’s Gin is extraordinary. We give it our highest recommendation.” F. Paul Pacult, Chairman of the Judges.

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Gin Report

Diageo GTME sees Tanqueray 10 as a great travel retail vehicle

Grupo Wisa we’re in Tocumen International Airport in Panama, in El Dorado International in Bogotá and San Andrés Airport, and in Mexico at Benito Juarez International.” All four locations feature the one-liter size at US$39 retail. In October Ungava will have fullpage coverage in all La Riviera outlets through its house magazine, and a full month of free tastings is planned in Tocumen. In Puerto Rico, Ungava has been placed in San Juan for cruise arrivals, and in Rafael Hernandez International Airport in Aguadilla. Work with London Supply generated a placement in Iguazú Falls Duty Free, where Camus Wines & Spirts directed a big promotion for Ungava in April featuring Brand Ambassador Joshua Groom. “The April promotion wasn’t an off-price—we don’t want to do that with a new brand,” Olaiz says. “So we brought Joshua there and he made a new cocktail, ‘Ungava Terere,’ which is by ANDREW BROOKS a mate-infusion-based cocktail.” Another promotion took place in September, and Camus is working on The super-premium gin category is growing fast, driven other regional concoctions. by care in production and some strong promotion Considering the fact that the first results are only now Canada, at stores along the he gin market is as fast-growing as coming in, Olaiz says that international border between any on the spirits side, and supersales have been good. First the two countries, and with premium products are continuing impressions from Grupo an especially strong presto shake up the market. In travel retail in the Wisa were above the ence in the provinces of Americas, the category continues to expand, expectations of both the Ontario and Quebec. Elseand recent years have seen a proliferation of operator and the brand. where around the world, brands that are enjoying good market growth “This isn’t an advanced the brand has a presence despite economic bumps in the road. category in Latin Amerin Barbados Airport Duty One of these is Broker’s Gin, which is disica but it’s starting to Free, as well as in Turkey, tilled in a 200-year-old distillery near Birmingbuild now,” Olaiz says. Kaliningrad and Iceland. ham, England. Broker’s is made to a recipe The influence of Spain Ungava is another that’s as old as the distillery in traditional helps as premium gin brand that has an copper pot stills. In addition to juniper beris a huge category in active agenda in travel ries, the process uses a total of ten traditional that country. Inroads retail. The yellow-hued botanicals, as well as spring water sourced at Caorunn’s one-liter bottle are especially strong all-natural gin includes the site, yielding a dry spirit that the brand calls launched in May of this year in upscale restaurants Inuktitut script on the “a gin of outstanding flavor and smoothness.” and bars in Mexico, where Ungava lands label, evoking its northern Canadian characPresident Martin Dawson notes that Broker’s on the market in October, and in Colombia ter, and has been making rapid inroads in the has won more top awards in international (starting March 2014), which is absorbing Americas, says Fabien Olaiz, Area Director, competitions over the last ten years than any 15,000 cases a year. Camus Wines and Spirits, Latin America other gin on the market. There’s also a steady drumbeat of small and Caribbean. Broker’s Gin is expanding its presence in launches in the Caribbean, including Mar“We’re moving ahead with the domestic the global travel retail and duty free markets, tinique (duty free now, domestic coming), markets in the Americas,” Olaiz says. “But Dawson says. Currently the brand is available Surinam, Curacao and Cuba (domestic by we’re already in the duty free market: with in the North American market in the US and

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Hendrick’s is well positioned in the super premium gin category

December 2013 and duty free by 2014). At the Punta Cana Senses Duty Free stores, the product is now available, and it boasts large facings in the Barcelo and Princess Hotel Duty Free stores, Olaiz says.

Market acceleration “Gin is a growing category which is being fuelled by the super-premium brands,” says Pamela Dinh, Diageo Global Travel and Middle East (GTME) Brand Manager for Vodka, Gins and Liqueurs. “With Tanqueray 10, we have an exceptionally strong brand that enables us to develop the opportunity in travel retail, and we have plans to put some exciting new investment behind it in the second half of the year.” She advises that accelerated permanent travel retail merchandising is on the way. The International Wine and Spirits Report (ISWR) analysis for 2012 indicates that Tanqueray 10 is growing ahead of the category, at 9% compared to the 4% growth for gins overall in travel retail. Tanqueray is the second largest gin by volume in the domestic market in the Americas, according to IWSR’s 2011 analysis. “In the travel retail channel we benefit from a big halo effect from that,” Dinh says. “It means that half of GTME’s Tanqueray volumes come from the Americas.” Launched in 2009, Caorunn Gin is a superpremium handcrafted gin distilled with a unique infusion of five Celtic botanicals, says Ibolya Bakos-Tonner, Brand Manager of Caorunn Gin for International Beverage Holdings Ltd. It’s the world’s only gin to be created at a traditional working malt distillery in the

Speyside region of the Scottish Highlands, and is currently the third bestselling super premium gin brand in the UK. Caorunn has also enjoyed success in Europe, the US, Canada and New Zealand. Caorunn is a relative newcomer to travel retail and duty free, with its first foray being a launch into the Scottish travel retail channel in 2011, says BakosTonner. The brand was rolled out to major UK airports in 2012, supported by light boxes at London Heathrow and London Gatwick. Over the course of this year the brand has also been offered to some European duty free customers, including Cyprus, Turkey, Iceland, Belgium and Spain. “We launched the Caorunn one-liter bottle in May 2013, promoting it at Glasgow, Aberdeen, London Gatwick and London Stansted Airports,” Bakos-Tonner says. “We were running branded sampling activities offering Caorunn’s signature G&T with a slice of red apple to bring to life Caorunn’s aromatic taste, and also participated in the Summer Drink festival with bespoke stands, tasting and value added gifts.” Caorunn is now the third largest super premium gin brand at UK airports, and the fifth biggest worldwide, again by IWSR analyses. The leader in the super premium category worldwide is Hendrick’s Gin according to IWSR, and it continues to grow at pace. The range of products is unusually small—Hendrick’s Gin in one-liter bottles and the Hendrick’s Tea Time Pack, which is currently available across a range of GTR operators. “Hendrick’s continues to innovate and

develop the most outlandish experiential activities,” says Ian Taylor, Global Marketing Manager, William Grant & Sons Ltd. In May and June a new experiential activation, the “Stereoscope Theatre,” landed in Singapore Changi Airport Terminal 1. The activation offered travelers a vintage theatre display with a Victorian 3D Stereoscopic viewer depicting the Hendrick’s production story, photo opportunities, “box office” tastings and of course a chance to purchase the Limited Edition Tea Time gifting Pack. “In August Hendrick’s pushed even further into the unexpected and offered passengers in Hamburg airport the opportunity to sample a Hendrick’s & Tonic, not in a glass but in a vaporized form inside a personal ‘Sensory Helmet,’ called the Hendrick’s GOSH machine,” Taylor says. “It’s the focus on premium, unrepeatable personal experiences that ensures that even as Hendrick’s continues to grow at pace, it remains firmly entrenched in the super premium category and never acts in a mainstream or standard manner.” Broker’s Gin has a strategic duty free partnership with the Underberg Group, which will represent the brand at the upcoming TFWA WE in Cannes, Dawson says. Broker’s will be a big part of an exceptionally strong lineup that Underberg has planned for this year’s version of the landmark trade fair. For Ungava, Cannes will represent an opportunity to consolidate, as the brand isn’t “new” any more. “The major operators will be there,” Olaiz says. “They’ll see the new cocktails, and we’ll talk about what we plan to do together with them for 2014.” Tanqueray will be a focus of GTME’s discussions on gin with its customers in Cannes this year, according to Pamela Dinh. Dinh says the growth of Tanqueray 10 is being driven by its performance in the Americas travel market, which is up 40% on last year. c

Ungava’s recent promotion in Iguazú Falls, Argentina featured Brand Ambassador Joshua Groom

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Diageo GTME

SKY HIGH

The seven cities featured on the Johnnie Walker Blue Label skyline range are Singapore, Hong Kong, Mumbai, San Francisco, Los Angeles, New York and Auckland

A number of famous city skylines get the blue treatment with the new limited edition Johnnie Walker Blue Label skyline range by RYAN WHITE

head of this year’s Cannes show, Diageo Global Travel revealed a limited edition range of Johnnie Walker Blue Label bottles engraved with designs inspired by the skylines of some of the world’s most famous cities, from New York to Hong Kong. The handcrafted range consists of seven city editions, each bearing an individually etched skyline design that has been filled with golden liquid blended by skilled craftsmen. The seven cities featured are Singapore, Hong Kong, Mumbai, San Francisco, Los Angeles, New York and Auckland. Accompanied by a bespoke sleeve, each bottle celebrates the unique craftsmanship of Johnnie Walker Blue Label, in which just 1 in 10,000 casks of the house’s rarest whiskies are handpicked by the master blender to create the exquisite blend. The bottles are individually numbered and available in limited quantity only in the cities that inspired them, reflecting the rarity and exclusivity of Johnnie Walker Blue Label. The seven city editions are available only at the airport stores of the DFS Group. “We know that travelers love to bring back unique mementos from their journeys which serve as a beautiful reminder of the experience,” says Steve White, Global Marketing Director of Diageo Global Travel and Middle East. “The Johnnie Walker Blue Label skyline range meets that need for our high-flying consumers. Tailoring a product to the local market is a mark of our commitment to offering innovation and differentiation to our travelers.” “It is an honor to be the first travel retailer in the world selected to launch this special range,” added John Hoover, Senior Vice President of Global Merchandising - Spirits, Wine, Tobacco, Food and Gifts for DFS Group. “We are confident that these exceptional bottles, which capture the spirit and energy of some of the most iconic destinations where DFS is found, will delight world travelers.” 138

“We know that travelers love to bring back unique mementos from their journeys which serve as a beautiful reminder of the experience. Tailoring a product to the local market is a mark of our commitment to offering innovation and differentiation to our travelers.” Steve White, Global Marketing Director, Diageo Global Travel and Middle East

The seven city editions of Johnnie Walker Blue Label will be available from September 2013 in DFS airport stores in Singapore Changi, Hong Kong International, Mumbai Chhatrapati Shivaji, San Francisco International, Los Angeles International, New York JFK and Auckland International Airports at a recommended retail price of US$399 (or local equivalent) for 1 liter. c

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Edrington Group

On the WARPATH Edrington Group unleashes the final three expressions from Highland Park’s Warrior Series for global travel retail

by RYAN WHITE

The last three additions to Highland Park’s highly acclaimed Warrior Series: (from left) Sigurd, Ragnvald and Thorfinn

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men, whose remains are buried in St Magnus Cathedral on Orkney. The six whiskies which make up the series are driven collectively by their flavor, says Edrington, allowing Highland Park to take the palate on a taste journey like no other. While the final three additions continue to offer a spectrum of flavor grounded in Highland Park’s gently smoky but surprisingly sweet character, the taste journey has been amplified by the increasing quantity of European oak sherry seasoned casks. This allows Sigurd, Ragnvald and Thorfinn to deliver more complex, richer and sweeter flavors. However, the flavor profile isn’t the only thing that becomes richer and more dramatic; the style of the packaging reflects the specific casks used in each expression and the scarcity and rarity of the whisky. Both Sigurd and Ragnvald are presented in decorative wooden boxes, while Thorfinn comes housed in a striking piano black box with distinctive gold detailing.

drington Group, brandowner of the multi award-winning single malt whisky Highland Park, is set to unleash the second battalion from its global travel retail army with the release of the final three expressions from The Warrior Series. Previously exclusive to European travel retail, the latest additions to The Warrior Series have been released through global travel retail channels from early September. Sigurd, the fourth in this range of single malt whiskies, will be unleashed first, closely followed into battle by Ragnvald. Finally, when Thorfinn hits the shelves in October the army of warriors will be complete. Sigurd is considered amongst the strongest and most courageous warriors, and ultimately one of the most feared Viking earls featured in the Orkneyinga Saga, while Ragnvald is arguably the most famous and pioneering of all Vikings to enter unchartered waters. Nephew of Earl Magnus, Ragnvald was most at home aboard his longship undertaking his many great expeditions throughout the Middle East and even Asia. Finally, Thorfinn was a man of much power and influence, who at one stage controlled the whole of the Orkney Islands. The Orkneyinga Saga described him as a great chief, the tallest and strongest of

The successful launch of the first three Warrior expressions—Einar, Svein and Harald—earlier in the year saw all three bottlings win Gold at the Scotch Whisky Masters Awards 2013. The trio also collected a number of medals at the Sixth International Wine & Spirits Competition, with Svein taking a coveted Gold medal and Harald and Einar both receiving Silver Outstanding awards. “The initial introduction of The Warrior Series has been extremely positive and the recent accolades highlight just how strong the individual whiskies are,” says Gerry Tosh, Global Marketing Manager for Highland Park. “We’re confident that the final three expressions in the series will further bolster Highland Park’s position in the travel retail arena. This eye catching collection not only looks spectacular, but we are confident that the whisky will continue to grow our awardwinning reputation.” “The Warrior Series has been one of Maxxium’s most successful travel retail launches ever and has already exceeded our own expectations,” Glen Williams, Managing Director of Maxxium Travel Retail, adds. “Completing the range is very exciting as we now have the opportunity to replicate this success with the new expressions.” Attendees at this year’s TFWA WE are invited to visit Maxxium Travel Retail’s booth at Mediterranean Village N7 to get up close and personal not only with Highland Park’s Warrior Series, but also with Edrington Group’s other award-winning spirits, including The Macallan single malt Scotch whisky, The Famous Grouse blended Scotch whisky and Brugal rum. c

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advertisement removed for legal reasons

Heineken’s Departure Roulette activation at New YorkJFK Airport invited travelers to step out of their comfort zones and head off to an unplanned destination

Heineken

The adventure of a lifetime by RYAN WHITE

In one of the more unique airport activations in recent memory, Heineken tempts travelers to drop what they’re doing and head off bravely into the unknown

eineken USA piqued the interest of travelers this summer with a sense of adventure through a new airport campaign called “Departure Roulette,” effectively creating an amazing real-life, real-time social experiment activation at JFK Airport in July, marking the latest twist on Heineken’s global “Voyage” activation. Passengers were invited at random to press a button on an old style flight clicker board in return for promising they would cancel their current flight plans and head off instead immediately for the destination that appeared on the board. The first lucky participant was Greg Vositis, a student from the University of Connecticut who, instead of traveling to Vienna at 5:15 pm to visit his grandparents, ended up flying to Cyprus later that evening for two nights with paid accommodation and US$2000 to cover expenses. Heineken also arranged a flight from Cyprus to Vienna later that same week and from Vienna back to New York on August 25 to tie in with Greg’s original plans. Seven other lucky travelers also won trips to destinations that included Portugal, Thailand and Laos. “Although this is not a duty free activation as such, as a global brand Heineken takes a holistic approach that engages seamlessly across all channels in all markets,” says Natascha Waterbeek, Marketing Manager at Heineken Global Duty Free. “Heineken is the number one premium international beer available in 198 countries around the world; therefore, airlines and airports with their international nature are a strategic fit and perfect channel for us. We want to inspire our consumers to be resourceful and open to the world. 142

A focus on innovation “Innovation is at the heart of how we are redefining the beer category throughout travel retail with specially designed concepts that make the category into much more of a premium proposition than in the past,” Waterbeek continued. “In airports we are growing the number of Heineken bars and lounges at the world’s leading hubs, as well as delivering excitement with events like this one at JFK. On ferries and at border stores we’re creating standout at point of purchase with travel-specific designs like Beers of the World displays, which introduce our broader range of portfolio brands next to Heineken, appealing to the traveler’s mindset in situ. “On cruise ships we’re really seeing the commercial benefits of bringing a spirit of entertainment through bar staff training to create the perfect pouring ritual via the ‘Heineken Star Serve onboard edition,’” she added. “We’re actively developing much more innovation as a core aspect of our strategy in travel retail and will be revealing details of some of these at TFWA in Cannes in October.”

situations when he loses his pet goat. As a true man of the world, he knows how to navigate this new world with ease, even if he finds himself in unfamiliar territory. The integrated campaign comprises four further editions showing different men being tested to see what they are made of in situations that are way beyond their comfort zone. Launched globally on June 3, the first episode featured Rikar, a Spanish waiter, being dropped off in the middle of Alaska with only a tuxedo and plane tickets. On July 1 the second edition showed Stavros, a yoga teacher and dancer from Greece, reacting to being plunged into the middle of Cambodia, blindfolded and presented with a giant yellow duck boat. And there’s a twist to the video, as our man of the world’s birthday happens to fall in the middle of his legendary journey. Running since July 22 is the third intrepid traveler—a New Yorker dropped in Morocco where after lugging a massive block of ice, he comes to face the importance of letting go to become a true traveler rather than a tourist like those he sees on the tour buses around him. c

Going global The JFK activation was inspired by the current global multimedia campaign Voyage, the fifth installment of the Heineken “Legends” platform, featuring the original legend “Dropped” in a remote outpost in colorful India and finding himself in awkward and bizarre

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Bruichladdich

Malt masters by WHITE byRYAN Ryan W hite

Bruichalddich and brandowner Rémy Cointreau team to give travel retail an exclusive range of five innovative single malts from Islay

ust ahead of this year’s TFWA WE, Bruichladdich and brandowner Rémy Cointreau have introduced an exclusive global travel retail range of five single malt Scotch whisky expressions. The backbone of the range, Bruichladdich Organic Scottish Barley (50% ABV, 1 liter), is an unpeated malt made from finest Scottish barley and is the only organic Islay malt. It is presented in a bottle with matching cylinder gift box in stunning aqua, a color which challenges the convention of muted tones for malt whisky and will come to signal the presence of this new approach to the category. Bruichladdich Bere Barley 2006 (50% ABV, 70 cl) is a limited edition of unpeated single malt made entirely from barley grown on the island. The new team at Bruichladdich made a commitment to local farmers at the start to treat them as partners and to buy their produce. Now, for the first time in the island’s history, the distillery can boast malts made from 100% Islay barley. The expression is presented in a clear bottle paired with a discreet silver cylinder gift box. Bere is one of the world’s oldest domestic cereals with Scottish antecedents that stretch back more than 6,000 years. Quite different to modern varieties, it produces hopelessly small yields and is difficult to grow and harvest.

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(clockwise from top left) Black Art; Bere Barley 2006; Octomore 6.2; Port Charlotte PC11; and Organic Scottish Barley—the new travel retail exclusive range from Bruichladdich

The dense, rich grist also plays havoc with the Victorian machinery used by Bruichladdich, but the end result is what Rémy Cointreau calls “a fascinating, uber-provenance single malt whisky.” The secret alchemy of the boutique distillery has also produced Bruichladdich Black Art (49.2% ABV, 70 cl), a cult cask secret creation which will be on very limited release. In contrast to its fellows this expression is dressed entirely in black with the six-pointed star, symbol of magic and the black arts, as its talisman. For those with a taste for the peated flavor often associated with the Hebrides, Bruichladdich will unveil Port Charlotte PC11 (59.5% ABV, 70 cl), a limited edition of heavily peated single malt Scotch whisky. It is presented in a clear bottle with black and orange gift tin, which only hints at the depths of flavor in store. The fifth expression in the collection, Octomore 6.2 (58.2% ABV, 70 cl) is said to be the most heavily peated malt whisky on the planet. “It packs a punch like an iron fist in a velvet glove,” says Rémy Cointreau, yet the painstakingly slow distillation process imbues the spirit with marine notes of honey and lemon. Matured in cognac casks, this limited edition is likely to be high on the list of whisky

collectors and connoisseurs. Once again, the presentation—black with red accents—is sophisticated and yet mysterious. “Malt whisky, of which Islay malts are a key element, is the fastest growing market segment at around +10% annual growth according to IWSR,” says Matthew Hodges, Marketing and Business Development Director, Rémy Cointreau GTR. “It is a dynamic market for brands and for connoisseurs and collectors who are presented with a fine selection of aged and blended malts, each with its own characteristics. In Bruichladdich they will find a dram of excellent quality with an interesting heritage—the resurrected distillery, the original distillation equipment, the provenance of the barley. “We are also positioning Bruichladdich to appeal to the gift-buyer looking for something out of the ordinary and to the adventurous consumer looking for a more contemporary approach to malt whisky,” concludes Hodges. “We are thrilled with the outcome so far and we look forward to an extraordinary future for Bruichladdich in global travel retail.” To learn more about the new Bruichladdich range, TFWA WE attendees are invited to visit Rémy Cointreau’s stand at Marine Village Foyer 1A.

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The “Mix-It” bar in T3 at Changi Airport this past summer, which showcased the new Gran Patrón Piedra

Patrón

Persistent PROGRESS

by MELISSA SILVA

As Patrón Spirits continues to achieve steady growth in duty free, it continues to overcome categoryspecific challenges and secure new listings

pirits giant Patrón is no stranger to growth. As its international duty free business continues to be a significant driver of its overall success, Patron remains committed to the channel, welcoming both challenges and changes. With the arrival of new President - International and COO Dave Wilson, new listings and an exciting line-up for the TFWA World Exhibition in Cannes, it’s clear the company is continuing to move in a very positive direction. Having achieved startling growth in a relatively short period of time, Patrón is continually faced with one particular challenge—how to maintain the dynamism and growth of each brand in its portfolio. “That’s the challenge that all growing businesses face,” says Wilson.

course we have a full scope of activity in the global domestic market as well, and that helps drive awareness and motivate purchasing in the travel retail channel,” adds Wilson. Even while Patrón continues to grow at a steady pace, it isn’t free from challenges— namely the challenge that comes with keeping customers educated. “The main challenge for us in travel retail… is the need to continually educate consumers about our product and about the category,” says Wilson. “Patrón tequila is a high-quality, handmade, sophisticated and versatile luxury spirit that’s delicious on its own and mixes into any number of cocktails—that’s our core message and our ambition is to effectively communicate that.” Indeed, Patrón attempts to transform each

“We have an incredible team at Patrón—it’s truly one of the reasons I was so excited to join the company—and everyone everyday is focused on making sure we give consumers compelling reasons to embrace our products.” Dave Wilson, President - International and COO, Patrón Spirits International

“The key to keeping our brands relevant and dynamic is to never become complacent and never lose sight of the basics.” Wilson credits his team as key to achieving this goal. “We have an incredible team at Patrón—it’s truly one of the reasons I was so excited to join the company—and everyone everyday is focused on making sure we give consumers compelling reasons to embrace our products,” Wilson says.

Staying relevant For Patrón, maintaining the relevancy of its portfolio in duty free involves executing an array of initiatives, from creating exciting programs, tastings and mixology demonstrations to producing innovative advertising, GWP offers and attractive initiatives. “And of

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challenge it encounters into an opportunity for future success. Wilson cites the Tequila subcategory as an example. “Patrón is an evolving and growing category within duty free,” he explains. “As such there is still reluctance on the part of certain operators to allocate either prime in-store or on-shelf positioning for the category. However, once operators understand the viability and profitability of Patrón, it is easier to justify the prime positioning,” says Wilson. Wilson also believes that there is further potential to be exploited with the introduction of Patrón’s high-end Gran Patrón Platinum, Gran Patrón Piedra and Gran Patrón Burdeos tequilas where an operator has appropriate space and has specifically developed a connoisseur concept for ultra-premium high spend-

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ing consumers. “Such consumers are always looking for new ways of expressing themselves and these products truly complement their discerning tastes,” says Wilson. In terms of products, Patrón will be showcasing its entire portfolio of ultra-premium spirits at this year’s TFWA WE in Cannes. “We’re particularly excited to introduce our new Gran Patrón Piedra, which will be making its Cannes debut,” says Wilson. This handcrafted tequila is an extra añejo, created entirely by the ancient “tahona” process. As far as listings go, Patrón recently entered Hong Kong International Airport and Tokyo Haneda and is very excited about the success each listing is set to bring. The company also recently added Maldives Airport and has several new airport listings for Patrón XO Cafe and Patrón XO Cafe Dark Cocoa, including Amsterdam, Athens, Prague, London City, Uruguay, Cancun, Mexico City and Panama. As 2014 approaches, Patrón plans to continue developing stronger relationships and deepening its portfolio’s commercial relevance with its duty free partners. “I’m very much looking forward to attending the Cannes show and meeting our valued duty free partners,” concludes Wilson. c

Gran Patrón Piedra, Patron’s latest high-end tequila launched earlier this year, is sure to attract a lot of attention at the Cannes show this year

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William Grant

TRIPLE

THREAT With the launch of three new Glenfiddich variants, William Grant pays homage to its heritage while responding to travelers’ increasing demand for single malt whisky by MELISSA SILVA

lenfiddich has launched a new range of three whiskies called the Glenfiddich Cask Collection. Released exclusively for travel retail, Glenfiddich Select Cask and Glenfiddich Reserve Cask are currently available in DFS and Heinemann outlets, while the third expression in the range, Glenfiddich Vintage Cask, will be introduced in early 2014. The full range will be available to all global travel retailers by April 2014. Each Cask Collection single malt Scotch whisky has an ABV of 40%. Glenfiddich Select Cask and Glenfiddich Reserve Cask are presented in Glenfiddich’s iconic one-liter triangular bottle. Glenfiddich Vintage Cask is available in a 70cl bottle, packaged in an attractive presentation box. Unveiled at a time when global demand for single malts continues to increase, the Glenfiddich Cask Collection has been crafted to offer three distinct flavor profiles. “Creating whisky isn’t only about age, it’s about personal

“Creating whisky isn’t only about age, it’s about personal taste and flavor, and the Glenfiddich Cask Collection has evolved to give Glenfiddich drinkers the perfect combination of quality, satisfaction and choice.” Brian Kinsman, Glenfiddich’s Malt Master. 150

The Glenfiddich Cask Collection features three distinct flavor profiles—Glenfiddich Select Cask and Glenfiddich Reserve Cask and Glenfiddich Vintage Cask (not pictured)

taste and flavor, and the Glenfiddich Cask Collection has evolved to give Glenfiddich drinkers the perfect combination of quality, satisfaction and choice,” says Brian Kinsman, Glenfiddich’s Malt Master. Glenfiddich Select Cask features layers of sweetness, spice and hints of citrus, and is matured in hand-selected aged Bourbon, European oak and red wine casks to impart a soft taste. Glenfiddich Reserve Cask is matured in distinctive Spanish sherry casks used for their mellow and rich flavor characteristics. Smooth-tasting, the whisky is sweet and spicy with a complex flavor. The last of the three variants is Glenfiddich Vintage Cask. Matured in European Oak and American Bourbon casks to impart a smoky, peaty taste that intermingles with leafy, floral undertones, Glenfiddich Vintage Cask is inspired by the first Glenfiddich spirit made in 1887. The new Cask Collection Vintage Cask liquid reflects this legacy by balancing a delicate but discernible peaty note with the characteristic fruity, sweet Glenfiddich spirit, essentially playing homage to the original taste profile. “Glenfiddich has a long and illustrious history of innovation within the single malt category and these latest additions allow us to offer single malt aficionados the best of both worlds—a range of age and no age whiskies crafted for their innovative flavor profiles,” says Kinsman.

Innovative taste The characteristics of each whisky are the result of maturation in a variety of oak casks,

followed by a finish in one of three newly installed and specially created Cask Collection Solera vats. The Solera process marries handpicked single malt whiskies together for at least two months, creating rich, balanced whiskies with complex flavors. The process guarantees the continuity of the whisky’s flavor and taste by ensuring each vat is never less than half full and is constantly replenished. The new handcrafted wooden vats will join the original Solera vat in the atmospheric Warehouse 8 at the heart of The Glenfiddich Distillery, which this year celebrates its 60th anniversary. “The Glenfiddich Cask Collection is an important development in the evolution of our much loved brand,” says Peter Gordon, Director of William Grant and Sons. Gordon adds that as a family run business it can influence its whisky making freely, which is why it has an unrivalled amount of whisky stock allowing for innovation via three new expressions. “We are continuing to see global whisky demand steadily increase as both emerging and more mature markets experience growth,” says Rita Greenwood, Managing Director of Global Travel Retail at William Grant & Sons. “Combined with the customer profile of today’s discerning global traveler, this makes global travel retail a strategically important channel for Glenfiddich.” With travelers looking for exclusive gifts and a distinct range of products which can’t be purchased domestically, travel retail is not only the ideal environment for Glenfiddich, but also one that promises continued success for the brand. c

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Liquor News Botran focuses on staff training and tastings to highlight product quality Botran Rum will once again be present at this year’s TFWA WE in Cannes showcasing its portfolio of awardwinning rums, which includes Botran Reserva, Botran Solera 1893 and Botran Reserva Blanca. Fresh off a new listing at Duty Free St. Thomas, Botran has a strong schedule of trade education seminars led by Brand Ambassador Isabel Medina planned over the second half of the year that will set the groundwork for tasting initiatives throughout travel retail. “Isabel travels from Guatemala specifically for these seminars,” says Frank Quiñones, Commercial Director of Exports for Botran Rum. He tells us that a lot of time and talent is invested in training and tastings because the best way for consumers and store staff to understand the superb quality of Botran’s rums is to taste them. “More often than not, tasting is the key to converting travelers in duty free,” he says. Quiñones tells Americas Duty Free that he sees a

lot of potential for Botran in Peru, Chile and the US— particularly in Miami and New York. Botran’s priority is to crack these duty free markets, and despite competition from the large liquor suppliers, Quiñones remains resolute in his belief in the value that the family-owned brand can bring to operators. Of course, given Botran’s presence at Cannes, Europe is also a major focus and Quiñones is expecting new developments in the region over the next twelve months. “For such a small company, we feel that we have done a good job, but I will be the first to tell you that we really have to fight to gain attention,” he says. “Once we achieve this we do well by and for our partners, but we really have to struggle for recognition. Marketing-wise, we are working hard to accelerate our brand’s notoriety while remaining true to ourselves.” Attendees to this year’s TFWA WE can visit Botran at Yellow Village G45 to see the company’s portfolio of Guatemalan rums for themselves.

Botran Rum’s Solera 1893, produced using the Botran family’s proprietary Solera aging process, is just one of three rums that will be featured at Botran’s stand during this year’s TFWA WE

ALFA Brands confirms new North American listings for its wine & spirits brands Duty Free agent ALFA Brands has announced a number of news listings for its wine & spirits brands in travel retail. Consumers can now find Piedmont Distillers’ Midnight Moon Moonshine at Pac Can Duty Free Store in Blaine, WA; at various DFA stores along the Canadian border; at AMMEX in Detroit; at SMT Duty Free in Puerto Rico; and in all Ontario duty free border stores where the brand has been enjoying incredible success, says President of ALFA Brands Franco Gabriele. In addition to the above, Pillitteri Estates Winery wines are now available for onboard sale on selected airlines through DFASS and on Air Canada flights. VICE Vodka Icewine has also been listed by DFASS and onboard Air Canada flights, as well as in the Ontario duty free border stores of Johnstown, Thousand Islands and Peninsula, and at Quebec duty free border stores Importations Guay and Boutique Hors Taxes De L’est. Most recently, Cocoa Vino Chocolate Wines, available in Chocolate, Cherry Royale and Mint Chocolate varieties, have seen successful introductions along the Canadian border with new listings. Of course, once the products are in the stores ALFA Brands runs frequent promotions to ensure the brands remain top of mind with traveling consumers. Gabriele tells Americas Duty Free that Pillitteri Estates Winery, Diamond Estates Wines & Spirits and Colio Estate Wines all run regular tastings along the Canadian Border, and plans 152

are currently in place to enlist the other wineries to do the same. “At Peninsula Duty Free, Diamond Estates Wines & Spirits recently ran a consumer promotion with its 20 Bees Icewine, and Piera Martellozzo Italian Wines were also promoted recently at selected DFA stores,” Gabriele added. “Along the Northern border DFA also ran a tasting program in conjunction with Iceberg Vodka.” While ALFA Brands won’t be exhibiting at this year’s TFWA exhibition, Gabriele tells us that in addition to spirits, there’s no shortage news on the distributor’s products in other categories. See the confectionery and tobacco sections of this issue for more news on brands such as Jelly Belly, Torie & Howard Organic Hard Candies, Pretzel Pete, SENCHA Green Tea Leaf Mints and Rocky Patel cigars. Consumers can now find Piedmont Distillers’ Midnight Moon Moonshine at Pac Can Duty Free Store in Blaine, WA; at various DFA stores along the Canadian border; at AMMEX in Detroit; at SMT Duty Free in Puerto Rico; and in all Ontario duty free border stores

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Absolut takes on a deeper character with Absolut Amber

Absolut is challenging the status quo with the new Absolut Amber by taking the essence of Absolut and adding a rich, complex character from gently roasted oak wood. Absolut Amber is a transformative new product that breaks down the traditional boundaries of white and dark spirits. Designed to challenge the convention of any occasion, from a relaxing evening with friends to the warm-up act for a busy night, Absolut Amber elevates an ordinary social moment into something extraordinary. Created by a unique method of exposing Absolut to a variety of different oak types to produce oak barrel-aged spirits, Absolut Amber is blended with oak macerated spirits. Absolut Amber has a natural amber color with a mellow and oaky taste while retaining the quality and smoothness of its original form. The result is an exceptional drinking experience unlike any other.

The key factor to the character of Absolut Amber is the carefully selected blend of Swedish, American and Bourbon oak spirits combined with oak macerated spirits. “While experimenting with resting Absolut in oak, we explored various methods of barrelaging, types of oak and ways to use macerations before landing on the perfect blend,” says Master Blender Per Hermansson. Absolut Amber combines the smoothness of the vodka with the rich, complex character of dark spirits. The variant offers up a rich aroma of caramel, vanilla and roasted oak, followed by a touch of smoke. Absolut Amber is currently available in Panama travel retail and select on-premise venues. The variant will also be available in North American travel retail from September 1 at JFK, Miami and Dallas International Airports with other markets to be confirmed in the coming months.

Absolut Amber combines the smoothness of the vodka with the rich, complex character of dark spirits

Flor De Caña launches Centenario 25 ultra premium rum exclusively for duty free, announces new look Flor de Caña has announced the launch of Centenario 25, an ultra premium rum that will be available exclusively in duty free stores. The new rum, which will retail for US$140, features the elegant new package design that Flor de Caña is introducing across its brand portfolio in response to the growing worldwide popularity of the brand, whose rums have been distilled and traditionally crafted from estate-grown sugar cane by the same family in Nicaragua since 1890. Indeed, Flor de Caña has seen a double-digit growth year over year for the past decade and is now available in 40 countries. The brand is on track to sell more than 1 million cases in 2013.

“Flor de Caña’s new Centenario 25 rum is our crown jewel,” said Paul Caffrey, Global Brand Development Manager of Flor de Caña. “It showcases Flor de Caña as unique, modern and ultra premium—exactly what we need to appeal to our growing fan base around the world.” Flor de Caña’s new Centenario 25 ultrapremium rum, an exciting addition to the brand’s Centenario Collection, features unique packaging. The black-and-gold label features an abstraction of the Nicaraguan volcano, while the rum itself seems to float in the bottle that sports sharp, beveled edges and a heavy solid-glass base. The premium cork closure is topped with an embossed

Flor de Caña gold medal coin. And as mentioned above, the other variants in the Flor de Caña family will sport a new look at this year’s TFWA WE. While continuing to produce the same high-quality rum that the brand has built a sterling reputation upon, Flor de Caña’s new bottles emphasize the brand’s logo, age and prestigious awards. The quality of the glass has been enhanced and the bottles are etched with stalks of sugar cane. The brand’s origin is evoked by superimposing the logo over a volcano, a reminder that Flor de Caña is the rum of Nicaragua, “the land of lakes and volcanoes.”

The new packaging of the Flor de Caña family, with the recently launched ultra premium Centenario 25 on the far right

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Liquor News

El Dorado rums sweep the IWSC El Dorado 8 YO rum has surprised its competitors by winning the Best Rum trophy at the 2013 International Wine and Spirits Competition (IWSC). In addition to the above wine, El Dorado Special Reserve 15 YO and El Dorado 12 YO both won Gold Outstanding trophies. El Dorado 21 YO won a Gold trophy while El Dorado 5 YO and 3 YO won Silver Outstanding honors. In judging El Dorado 8 YO, the judges described the product as “amber gold” with “very complex aromas combining orange pekoe tea, roasting nuts—Brazil, walnut and pecan—and smooth caramel.” The judges went on to note that “this complexity rolls around in the mouth achieving a wonderful balance of aged richness, and a superb integrated sweet/bitter balance that is outstanding. The finish is long and evolves beautifully—a fantastic product.” El Dorado 15 YO, the flagship brand of Demerara Distillers Ltd., also boasts the distinction of being the only rum ever to have won the Best Rum in the World title a record eight times since 1998 at IWSC. The rum has also won the IWSC Gold Medal a remarkable 12 times between 1998 and 2013. “Demerara Distillers has always been committed to producing the finest quality products for its customers the world over,” says Komal Samaroo, Vice President of International Marketing at Demerara Distillers Ltd. “The fact that its rums have gained sustained international acclaim is testimony to the company’s commitment to quality and excellence.”

El Dorado 15 YO (pictured) is the only rum ever to have won the Best Rum in the World title a record eight times at IWSC since 1998, but it was El Dorado 8 YO that won the Best Rum trophy at this year’s IWSC

Scorpion Mezcal targets lovers of high-end liquids Since 1996, Douglas French, Owner and Master Distiller of Scorpion Mezcal SA de CV, has been educating consumers and the spirits industry at large about mezcal, one of Mexico’s most famous, but perhaps least understood, exports. Indeed, mezcal has a depth and breadth of tradition that rivals any Scotch or Cognac, and French is hoping that his Scorpion Mezcal brand will pave the way for a deeper understanding of the spirit in general in travel retail. “In Mexico there are about 180 varieties of agave, which is the plant used to make mezcal,” explains French. “Approximately 30 of these varieties are able to be fermented and distilled into mezcal.” The multitude of different agave types that can be used to make mezcal results in a range of complex spirits that each have their own special characteristics while at the same time still falling under the mezcal umbrella. It’s easy to see how the spirit could be perfect for aficionados who enjoy exploring the way different ingredients and production processes change liquids. In fact, the agave used to make mezcal takes anywhere from 7 to 15 years to mature, meaning that even an unaged mezcal has years of patience and craftsmanship behind it. One way that Scorpion is tapping into the trend toward exploring the nuances of a given liquid is to offer a special gift pack for duty free that features four 200mL bottles, each containing mezcal made with a different agave type. “This gives people the opportunity to sit down and note the differing flavor profiles of each,” French explains. “The gift pack is made especially for duty free and select high-end stores.”

Scorpion Mezcal has already made some important inroads in travel retail in Australia and Paraguay, and French notes that there has been increasing awareness of the products in the Caribbean and other Latin American countries. “We’re positioning the brand as the highest quality mezcal that we can,” French explains. “Our products have won numerous Gold and Platinum medals from prestigious spirits challenges around the world, including the Beverage Tasting Institute. We feel Scorpion’s high-end appeal is perfect for duty free and we’re looking forward to increasing our presence in this very important channel.”

Scorpion Mezcal has created a special gift pack for duty free that features four 200ml bottles, each containing mezcal made with a different agave type

Underberg features a new Asbach vintage, a mini Amarula bottle and special gift tin at TFWA WE At this year’s TFWA WE in Cannes, Underberg will be showcasing the new Asbach’s Johann Wolfgang von Goethe Vintage Reserve 1952. The vintage marks Asbach’s 120th anniversary and pays homage Johann Wolfgang von Goethe’s visit to Asbach’s home town on August 15, 1814. Underberg will also be showcasing a new member of the Amarula family, namely the new 200ml bottle, which is designed to hold two single serves of the popular South African spirit. In addition to the above, Underberg has a variety of other brands that are performing well in travel retail, including XUXU, the fruity-fresh strawberry drink; PITÚ, a Brazilian sugar cane spirit; Schlumberger, an Austrian sparkling wine; and the company’s famous and eponymously named herbal digestive. In fact, both XUXU and a special Underberg travel pack were recently listed at Dubai Duty Free, marking a major step for the supplier into Middle Eastern travel retail. Attendees to this year’s exhibition are invited to Red Village K19 to see all of Underberg’s offerings, including a new limited edition Underberg gift tin celebrating Brazil, which follows previous iterations of the tin dedicated to South Africa, Austria and Denmark. 154

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The packaging of Asbach’s Johann Wolfgang von AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2013Goethe Vintage Reserve 1952 fits perfectly with the rarity of the liquid inside; the offering is one of many new products showcased by Underberg this year

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British American Tobacco International

BRINGING BRANDS TO LIFE

British American Tobacco International attends this year’s TFWA WE with an eye toward continuing by RYAN WHITE its industry-leading focus on innovation

oming off a solid sales performance for the first half of 2013 that saw group revenue increase by 4% at constant rates of exchange and an increasing market share driven by global drive brands (GDBs) in its top 40 markets, British American Tobacco International (BATI) will be exhibiting at this year’s TFWA World Exhibition in its familiar location on the Bay Terrace. In previous years at TFWA, BATI has made a concerted effort to bring innovation, new thinking and a positive outlook on the tobacco category to the show, and the company tells us that this year will be no different. BATI’s space at this year’s exhibition will focus on bringing brands to life through a set of dedicated areas, revealing the nature of each of the brands in the company’s particularly strong portfolio. The objective, says BATI, is to give guests a glimpse of how this approach can be brought to life in the airport environment. “In order to continuously develop the category and further grow our business we permanently face the challenge of attracting adult tobacco consumers to our brands,” says recently appointed General Manager of BATI Christian Löwe. “Therefore, we need to drive adult smoker awareness, interest and relevance, and of course satisfy consumer moments.”

In 2013, the Showcase—a regular feature of BATI’s Cannes experience—will take customers on a journey that demonstrates BATI’s ongoing commitment to the channel and approach dedicated to innovation and growth. Continuing from previous years, BATI will demonstrate how it is catering to the different shopper modalities in travel retail through unique and exciting in-store displays and activations.

Continued focus on innovation Key product highlights to look out for at the BATI stand this year include Lucky Strike Patterson, a packaging redesign that includes a contemporary take on the iconic logo; a new Vogue exclusive offer perfect for those adult travelers looking for gifting solutions or a souvenir; and the latest filter innovation from BATI pioneered by Kent. As mentioned, BATI’s GDBs, which include Dunhill, Lucky Strike, Pall Mall and Kent, drove market share growth in the company’s top 40 markets over the first six months of 2013. Collectively the company’s GDBs achieved a good volume growth of 2.3%, and BATI is set to continue the momentum with the showcase of a special Lucky Strike Pack redesign.

“In a channel as important and as premium as travel retail, we are constantly reinventing retailing with the aim of creating category excitement, not only for our own business, but for the benefit of our business partners.” Christian Löwe, General Manager, British American Tobacco International

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Lucky Strike Patterson is a tribute to R.A. Patterson, who founded the R.A. Patterson Tobacco Company in Richmond, Virginia in the 1850s.

Lucky Strike Patterson was conceived to communicate its legacy as the true expression of an authentic smoking experience. The redesign is a tribute to R.A. Patterson, who founded the R.A. Patterson Tobacco Company in Richmond, Virginia in the 1850s. Indeed, his vision of creating only the most rewarding taste inspires what BATI does to this very day. Among other elements, one main feature of the new design consists in the resurrection of Lucky Strike’s famous “Luckies” nickname in the top left corner of the packs. The packs also feature a redesigned logo that is a modern vision of the very first Lucky Strike roundel that appeared on the R.A. Patterson Tobacco Company’s tins over a century ago. While BATI hasn’t specified yet where Lucky Strike Patterson will be available in travel retail, the brand’s first-half success in such diverse markets as Argentina, the Philippines, Germany, France and Poland certainly bodes well for the redesigned packaging upon its release. “The new positioning anchors the brand to its true meaning and story—a story that exists beyond advertising, a true tale of ingenuity and honest craftsmanship,” the company says. Indeed, BATI’s continued support of Tax Free World Association and TFWA WE specifically, as well as the company’s continued success in the channel, is a fitting reflection of its positive approach to the category and constant eye toward innovation. “In a channel as important and as premium as travel retail, we are constantly reinventing retailing with the aim of creating category excitement, not only for our own business, but for the benefit of our business partners, many of whom we are looking forward to meeting at Cannes this year,” concludes Löwe. c

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Oettinger Davidoff

The Toro variety of Davidoff’s new Nicaragua cigar line; Short Corona and Robusto sizes are also available

THE SPIRIT OF EXPLORATION The new Davidoff Nicaragua Puro Cigar range marks the company’s expansion into new regional taste experiences by RYAN WHITE

avidoff Cigars recently unveiled its first Nicaraguan cigar line, Davidoff Nicaragua, at a New York City pre-launch event on June 20, 2013. Inspired by Zino Davidoff ’s pioneering spirit, Davidoff Cigars has made it a mission to delight cigar aficionados by bringing them a variety of taste experiences and cigar pleasures. “This is a major step for Davidoff to expand to a new territory,” explains Oettinger Davidoff Group CEO Hans-Kristian Hoejsgaard. “Davidoff ’s mission is to bring aficionados delightful experiences— regardless of territory.” Davidoff master blenders, led by Hendrik “Henke” Kelner, went on an exploration for a new type of blend that would stimulate both the bitter and sweet taste buds. The team embarked on an adventure searching for tobacco across the world’s renowned tobacco regions that would enable the creation of such a cigar. The relentless pursuit for the right blend paid off when they discovered that a blend crafted with the finest leaves from plants grown in the fiery volcanic soil of the Esteli, Condega, Jalapa and Ometepe regions of Nicaragua created just the right balance of sweet and bitter notes to tantalize the palate.

Exploration, adventure and discovery It took time, patience and perseverance to create the perfect conditions in which to craft these fine cigars. Ten years were needed for the preparation, curing and aging to tame the wilder tendencies of the Nicaraguan tobacco, and to deliver an exceptional blend with all the intensity, excitement and refined sophistication aficionados would expect from Davidoff. As with all Davidoff Cigars, and to guarantee its quality and exceptional craftsmanship, the new Nicaragua range is hand-rolled in Davidoff ’s Dominican facilities by expert rollers.

The Nicaragua experience The 100% Puro Nicaraguan blend combines a 10-year-old Habano Seed Nicaragua Rosado wrapper in a beautiful color, with a binder from Jalapa and a filler blend of tobaccos from Esteli, Condega and Ometepe. The range comes in three sizes: Toro (5 ½ inches; 54 RG); Robusto (5 inches; 50 RG) and Short Corona (3 ¾ inches; 46 RG). Davidoff notes that the new range was very well received by aficionados who had a chance to experience it. In a blind taste test conducted at the Art of Smoke in Germany, Davidoff Nicaragua ranked as of the five best cigars ever tested across all tobacco origins and blends. The official launch of Davidoff Nicaragua took place during IPCPR (USA) followed by Inter-tabac (Germany) in September 2013. The three formats—Toro, Robusto and Short Corona—were available at Davidoff-appointed merchants/depositaries in the US from July and worldwide from September. To complement the cigar range, Davidoff will be introducing innovative accessories, including a stylishly crafted new limited edition humidor, Davidoff ’s first jet flame lighter and a punch cutter. Limited to only 250 pieces worldwide, the unique Davidoff Nicaragua Humidor is the central piece of the line. In the shape of a triangle, 158

“This is a major step for Davidoff to expand to a new territory. Davidoff’s mission is to bring aficionados delightful experiences— regardless of territory.” Hans-Kristian Hoejsgaard, CEO, Oettinger Davidoff Group

inspired by the volcanoes of Nicaragua, this Humidor can flexibly accommodate up to 50 cigars in different formats thanks to its movable separators. It boasts a removable top, which unveils a compartment to host cigar accessories. The Limited Edition Belicoso Puro Cigar, one of the rarest cigars Davidoff has ever produced, will be released with the Humidor and limited to only 12,500 pieces worldwide. The Nicaragua double blade cutter, made entirely of stainless steel, will allow aficionados to fully discover the intensity of the new Davidoff Nicaragua blend, while the Nicaragua Jetflame lighter will allow cigar lovers to light their cigars in even the most extreme conditions. “Davidoff Nicaragua has been crafted to delight today’s adventurous aficionados who are in the mood to discover new and exciting experiences to fill their time beautifully. These superb cigars combine the signature Davidoff refinement with all the intriguing intensity of Nicaraguan tobacco,” notes Charles Awad, Senior Vice President Global Marketing and Innovation at Oettinger Davidoff Group. c

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2013 The line also includes a range of accessories consisting of a cigar cutter and the first ever Davidoff Jetflame lighter

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Tobacco News

This year at TFWA WE, Habanos introduces the latest in the Montecristo range of handmade cigars: Double Edmundo (ring gauge 50, length 155 mm)

Habanos presents Montecristo Double Edmundo at TFWA WE 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 at TFWA WE, Habanos introduces the latest in the Montecristo

range of handmade cigars: Double Edmundo (ring gauge 50, length 155 mm). Habanos notes that the latest release 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. Attendees to the year’s TFWA WE can see the new Moncristo Double Edmundo, along with a number of other iconic Habanos brands, at the company’s stand in Bay Village 23.

KT&G

to introduce first superslim with capsule technology at TFWA WE Jihyun Choi, Overseas Brand Department Manager for KT&G, tells Americas Duty Free that the first half of 2013 has been busy for the company. In addition to securing a listing in Antalya Airport in Turkey and launching the popular Esse brand of cigarettes in no fewer than 10 European countries, KT&G also plans on launching a new line extension called Esse Change at TFWA WE this year. “Esse is KT&G’s number one brand,” Choi tells us. “In fact, it’s the number one selling superslim

cigarette brand in the world, having sold more than 120 billion sticks since the brand’s inception. Esse is sold in 45 countries, including France, Russia, the United States and China. The brand is also very popular in the Middle East.” Given the success of Esse, it’s no wonder that KT&G is focusing on this brand when it comes to innovation this year in Cannes. Esse Change features a capsule in the filter that allows adult smokers to change the flavor to menthol with a simple click of the

“People are also looking for options with lower tar and nicotine, which is a positive for KT&G as we’ve been focused on this trend for some time.” Jihyun Choi, Overseas Brand Department Manager, KT&G

The new Esse Change is particularly noteworthy because it’s the very first superslim cigarette in the world to feature a capsule in the filter

capsule. While capsule technology has been around for some time now—and indeed Choi tells us that KT&G was a pioneer in this regard—Esse Change is particularly noteworthy because it’s the very first superslim cigarette in the world to feature a capsule in the filter. Esse Change has 1 mg of tar and 0.1 mg of nicotine. We asked Choi about the company’s business as a whole and increasing tobacco regulations in some countries. She told us that while the environment has become challenging in some regions, growth in other regions is helping to offset any losses. “Markets are growing in some

countries such as China, India and Indonesia,” she explains. “As disposable income in these countries increases, the desire for better cigarettes is growing. People are also looking for options with lower tar and nicotine, which is a positive for KT&G as we’ve been focused on this trend for some time.” Choi invites attendees to this year’s TFWA WE to visit KT&G at Marine Village S14, where the company will have a capsule display zone that allows visitors to experience KT&G’s latest innovations for themselves by clicking and smelling the change that capsule technology can make.

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

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New & Notable LIQUOR

Rémy Martin VSOP Cannes Film Festival Limited Edition Company: Rémy Cointreau Description: The Rémy Martin VSOP Cannes Film Festival Limited Edition is available exclusively at major international airports. In this special edition, the Centaur, emblem of Rémy Martin Fine Champagne Cognac, joins the Golden Palm, symbol of the annual Film Festival, ascending the famous steps of the Palais des Festivals Booth: Marine Village Foyer 1A

CONFECTIONARY Truffes Signature 16pcs Company: Godiva Chocolatier Description: Confectionary lovers from around the world can now indulge their palate with the new Godiva Truffles Signature gift set Booth: Yellow Village F33

Laplandia Vodka Company: Global Drinks Finland Description: Laplandia Vodka is a premium product both inside with its award winning smoothness, and outside expressing its delicate snow white Lappish appearance. Laplandia vodka has recently gone through a ravishing transformation, making it even more authentic and pure than ever. With its design changed to complete snow white with a touch of gold, and its content being smoother than before following a revolutionary update in water filtration

Tic Tac T100 Travel Collection Company: Ferrero Description: The new Tic Tac T100 Travel Collection includes nine collectable 49 g packs of the famously cool Tic Tac white mouth freshener mints, each representing a different country. The Tic Tac T100 sleeve designs include Germany, Great Britain, Hong Kong, Singapore, India, Brazil, Canada, USA and the Caribbean Booth: Green Village J 35

Mount Gay Black Barrel Company: Rémy Cointreau Description: Mount Gay Black Barrel (43% ABV) is a fullbodied aged rum which owes its quality to three centuries of rum craftsmanship, innovation and refinement. Black Barrel is crafted in the signature Mount Gay style, using the finest sugar cane molasses and pure water filtered through the coral heart of Barbados to bring softness and refinement Booth: Marine Village Foyer 1A

The Hello Kitty Large Ceramic Candy Dish Company: ALFA Brands Description: The Jelly Belly Hello Kitty bean-shaped candy dish features Hello Kitty peeking over the top of the ceramic Jelly Belly bean-shaped dish. A refillable treasure, the dish comes with a 1 oz. starter bag of the Jelly Belly Hello Kitty Favorite Flavors Mix

Smurfs 450g Company: Haribo GmbH & Co. Description: With a combination of the brand’s popular strawberry and raspberry flavors, this product is intended primarily for children. A musthave for all Smurf lovers Booth: Bay Village 11B 160 160

AMERICAS DUTY DUTY FREE FREE & & TRAVEL TRAVEL RETAILING RETAILING OCTOBER OCTOBER 2013 2013 AMERICAS

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New & Notable Jelly Belly Ultra Gift Box Company: Jelly Belly Candy Company Description: The new box creates a splash with gold foil accents and bold colors, wrapped with a royal purple band. Lift the top to uncover 20 assorted Jelly Belly jelly bean flavors

Classic Jelly Belly Glass Jar Company: Jelly Belly Description: Jelly Belly Candy Company unveils the new Classic Jelly Belly Glass Jar. The 14.5-ounce jar has a removable lid and an etched Jelly Belly logo on one side and comes filled with jelly beans in 49 assorted flavors Starmix 500g Company: Haribo GmbH & Co. Description: Starmix is known for its iconic mix of shapes and its range of jelly and foam sweets. Flavors include orange, lemon, raspberry, pineapple and cola Booth: Bay Village 11B

ACCESSORIES

B bag Company: ISANTI Description: B bag is the new creation by ISANTI, made with printed pattern waterproof and anti-scratch material. Handles are finely trimmed with natural color leather that matches perfectly with the wide range of colors offered in this unique and functional collection Booth: Blue Village C18

Battue Light Company: Hunting World Description: The new line will use the Battue material without the urethane foam backing, making for a bag that is easy to fold. Battue Light Duffle is foldable, packable and lightweight Booth: Green Village M67 Pilota Jacket Company: Confezioni Spa – PAL ZILERI Description: A crease-proof blazer made with exclusive fabric by Biella woolen mill Fratelli Tallia di Delfino in waffle weave mohair. The Pilota Jacket is presented in original packaging and is perfect for any occasion Booth: Bay Village B1

Morgan & Oates Abstract Floral wraps Company: Morgan & Oates Description: A unique range of Abstract Floral wraps with a 90% merino and 10% cashmere mix. Now available in new variations: pink and grey, blue and sand Booth: Med Village P19 162

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