Americas TFWA WE October 2016 by Paramount Publishing Ltd.

TFWA WE 2016

DUTYFREEMAGAZINE.CA OCTOBER 2016 · TFWA WE · VOL 26 · NO 3

Mega Store unveiled in Punta Arenas p. 20 Dufry renovates in Peru p. 40 Redesign at Toronto Pearson p. 44

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07.09.16 12:23

Chris Pine armanibeauty.com

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LETTER FROM THE EDITOR

Changing

tides T

hey say you cannot truly appreciate the good times unless you have seen the bad, and that might be something for those in travel retail to keep in mind right now. You certainly don’t need me to tell you that there have been difficulties of late, and these difficulties have been seen around the globe. In the Americas, the region hit hardest has been the south, and through no fault of the industry. Economic and political woes, especially in powerful Brazil, have taken the huge growth patterns of the past number of years in South America and turned them on their heads. But all is far from doom and gloom. The Caribbean and the US have been especially vibrant, and Mexico has been a strong country for many companies as well. While a weakened Brazil had been helping to pull the region down, ASUTIL Secretary General José Luis Donagaray and others say the worst is over, and recovery has begun in the country. Meanwhile, a new government in Argentina has already been bringing about positive changes there. Renovated and reconstructed airports have continued to open, with an additional 30,000 square meters of shopping space in Brazil alone. Dufry’s Managing Director of Brazil and Bolivia, Gustavo Fagundes, and René Riedi, the company’s Divisional CEO, Latin America, both offer considerable insight into expansion in South America during this time, discussing the numerous openings leading up to the Rio Olympics and the reopening of Dufry’s store in Peru. In Rivera, instead of hunkering down and waiting for the storm to pass, Siñeriz took a decidedly different approach, greatly increasing floor space and introducing new food concepts. While politics are raging and the economies are reacting and the retailers are making the best of the situation while planning for the future, the suppliers must supply items at prices that customers will continue to buy right now. Some suppliers have done incredibly well throughout the troubled times by diversifying their portfolios and business strategies, whereas others have kept afloat by focusing on their core portfolios. In this issue of Americas Duty Free, you will read about all this and more. We sincerely hope you enjoy. Kindest Regards,

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

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

OCTOBER 2016 · TFWA WE · VOL 26 · NO 3

The Americas Duty Free & Travel Retailing magazine (ISSN 0962-0699) is published four times a year 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 2016, Vol 26. No. 3. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2016 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-IN-CHIEF Hibah Noor hibah@dutyfreemagazine.ca SENIOR EDITOR Wendy Morley wendy@dutyfreemagazine.ca ASSOCIATE EDITOR Jas Ryat jas@dutyfreemagazine.ca ART DIRECTOR Jessica Hearn jessica@globalmarketingcom.ca CONTRIBUTORS Mary Jane Pittilla Katherine Yaun Claire Malcolm

CIRCULATION & SUBSCRIPTION MANAGER accounts@globalmarketingcom.ca

LETTER FROM THE EDITOR

Tiempos

de cambio D

icen que no se pueden apreciar verdaderamente los buenos tiempos, a menos que se hayan visto los malos. Una realidad que debe tener en cuenta actualmente el sector minorista de viajes. No es necesario que me hablen de las dificultades recientes, pues se han hecho patentes en todo el mundo. En las Américas, la región más afectada ha sido el Sur, sin que se pueda culpar a la industria en esa zona. Las tribulaciones económicas y políticas, especialmente en el poderoso Brasil, han afectado los enormes patrones de crecimiento de los últimos años en Suramérica, revirtiendo sus tendencias positivas. Pero no todo es miseria y desolación. El Caribe y los Estados Unidos han estado especialmente vibrantes, mientras que México también ha sido un país de operaciones sólidas para muchas compañías. Mientras que un debilitado Brasil ha contribuido a la crisis de la región; José Luis Donagaray, Secretario General de ASUTIL y otros expertos afirman que ya pasó lo peor, y que ha comenzado la recuperación en ese país. Entretanto, el nuevo gobierno de Argentina ya está llevando a cabo cambios positivos en esa nación suramericana. Además, se siguen inaugurando aeropuertos renovados y

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

reconstruidos, con 30,000 metros cuadrados adicionales de espacio comercial en Brasil solamente. Gustavo Fagundes, Director Gerente de Dufry para Brasil y Bolivia; y René Riedi, Director Ejecutivo de División de la compañía en Latinoamérica; ofrecen considerables informaciones sobre la expansión en Suramérica durante este tiempo, analizando las numerosas inauguraciones previas a las Olimpiadas de Río, y la reapertura de la tienda de Dufry en Perú. Asimismo, en Rivera, en vez de replegarse y esperar a que pase la tormenta, Siñeriz adoptó un método decididamente diferente, incrementando grandemente el espacio de salones de venta e incorporando nuevos conceptos de alimentos. Mientras los políticos se enfurecen, las economías reaccionan, los minoristas tratan de sacarle mejor partido a la situación mientras planifican para el futuro; los suministradores deben proveer mercancías a precios que los clientes seguirán comprando actualmente. A algunos suministradores les ha ido increíblemente bien en estos tiempos difíciles diversificando sus portafolios y estrategias comerciales, mientras que otros se han mantenido a flote enfocándose en sus portafolios principales. En este número de Americas Duty Free, leerá todo lo anterior y mucho más. Espero sinceramente que lo disfruten. Cordialmente,

Hibah Noor Editora en Jefe hibah@dutyfreemagazine.ca

CONTENTS

What’s inside LEAD STORIES 14 Giorgio Armani THE CONQUEST OF AMERICAS BY THE MOST LUXURIOUS COSMETIC COUTURE BRAND

Italian beauty brand Giorgio Armani plans to boost its travel retail footprint across the Americas at an impressive clip as the company seeks to lure high-spending Chinese tourists and to create awareness in the South

20 Mega Store, Chile DUTY-FREE ZONE AT THE END OF THE WORLD IS NOW MEGA-SIZED

Chilean operator Transworld Supply opens Mega Store in Puntas Arenas for Patagoniabound customers

26 Siñeriz Shopping EXPANSION IN RIVERA

Uruguayan operator expands its mega shopping complex with entertainment and a new restaurant, bringing an Olympic-sized economic boost to its decades-long business

32 Monalisa SETTING UP IN ASUNCION

Paraguayan luxury border retailer Monalisa heads west to bring fashion, fine wine into the country’s capital

40 Dufry Peru LAUNCH IN LIMA

After a whirlwind time of renovations and refurbishment, in August Dufry had a Grand Opening of its three new stores in Lima, Peru

44 Toronto Pearson International Airport AN EYE IN THE SKY

Toronto Pearson International Airport has opened 50,000 square feet of travel retail, F&B and relaxation space. Redeveloped by the Greater Toronto Airports Authority, the area includes new restaurants and retail from partners including HMSHost, OTG, Dufry and Paradies Lagardère Travel Retail

FEATURES Clinique partners with Gina Rodriguez Essence’s fragrant fancies L’Oréal makes it happen

64 66 68

YSL rocks in Americas travel retail Lancôme shakes up codes of beauty Sweet smell of success for Rituals

70 72 74

50 Dufry Brazil AGE OF ABUNDANCE

Renovations and expansion leading up to the Olympics led to nearly innumerable opportunities for Dufry to expand and create in Brazil

CONTENTS

LEAD STORIES 54 ASUTIL STEP BY STEP

ASUTIL’s conference this year occurred at a time that was both disheartening and encouraging, with an economy in the region that had bottomed out, but also with positive indicators that cleverly predicted the direction the economy has been going since those days in early June: up

60 FDFA BANNER YEAR

A strong US dollar and a new government have made for a busy year for Canada land border stores and the FDFA, as Executive Director Laurie Karson explains

62 IAADFS SETTING THE STAGE

Michael Payne, Executive Director of IAADFS, discusses the Duty Free Show of the Americas, the economy, and opportunities in the duty free industry

54 60

76 Artco Group ARTCO GROUP APPEALS TO CONSUMER SENSES

Miami-based store planning company Artco Group explains how vital it is to appeal to the customer’s senses to make shopping a more enjoyable and tangible experience

78 Editor’s Choice TRAVELERS’ DELIGHTS

Spring into the new season with a selection of the best and most luxurious treats to lift your mood, as chosen by our Associate Editor

86 Liqueur Report STRENGTH TO STRENGTH

Already a strong region in liqueur sales, the Americas also offers huge potential in the coming years, both from the burgeoning duty free industry in the north and a recovering economy in the south

88 Rum Report TOP SHELF

After years of watching other subcategories dominate the global market, premium aged rum is finally coming into its own

96 Remy THEN AND NOW

A visit to Bruichladdich distillery on Islay reveals a curious juxtaposition between highly traditional and exceptionally unconventional

FEATURES Duc d’O stands out Neuhaus’ Belgian connection

80 84

Questionnaire: Enrique Urioste

110

CONTENTS

LEAD STORIES

97 Brown Forman STRONG HERITAGE The legacy, tradition and authenticity of Brown-Forman’s American whiskey and tequila brands are helping them stay buoyant in troubled waters

98 Diageo MIAMI CRUISE

Diageo’s BAR 396 in Miami was the glamorous setting for 2016’s Global Travel SemiFinal of the Diageo Reserve World Class competition

100 Marie Brizard THE RENAISSANCE

Marie Brizard is going through a rebirth, creating an image in line with its strong tradition of unique quality

102 Edrington PAST & PRESENT

Speyside and Orkney offer two distinct distillery experiences and two distinct whiskies, each with Edrington’s trademark quality

104 Monarq CHASING GROWTH

MONARQ Group reaches far beyond the status quo, continuing to achieve double-digit increases year after year

105 Patron CONTINUED GROWTH

With double-digit sales growth in 2015 and expected in 2016, Patrón is bucking the trend toward slowdown in GTR

106 SPI INNOVATION BREEDS SALES

Stoli® vodka is a pioneer of the premium global spirits market, and especially well positioned for continued success in GTR

108 Davidoff NEW RELEASES

Looking at the enormous number of announcements and releases by Davidoff this year, it’s no surprise that this cigar company continues to hold its lofty place in the world of cigars

108 106

SUPERIORITY. COMPLEX. ROCA PATRÓN HAS A COMPLEX TASTE THAT’S HANDCRAFTED USING A COMPLEX PROCESS. WE SLOW-ROAST THE FINEST WEBER BLUE AGAVE, THEN CRUSH IT WITH A TWO-TON TAHONA STONE WHEEL—AN ANCIENT, LABOR-INTENSIVE METHOD. THE AGAVE JUICE IS THEN FERMENTED AND DISTILLED WITH THE FIBER, RESULTING IN A MULTILAYERED, EARTHY TASTE.

GIORGIO ARMANI

The conquest of Americas by the most luxurious cosmetic couture brand Italian beauty brand Giorgio Armani plans to boost its travel retail footprint across the Americas at an impressive clip as the company seeks to lure high-spending Chinese tourists and to create awareness in the South

s Italian cosmetic couture brand Giorgio Armani rolls out across Americas travel retail, the L’Oréalowned brand’s travel retail chief is in no doubt about why the launch has been so successful so far. It’s down to big, premium retail space, color impact and customer service, says Thibault Tetrel, General Director Giorgio Armani, Ralph Lauren and Designer Fragrances Travel Retail Americas. With an ambitious plan to open 32 doors by end of 2017, and a partnership with six clients only – the team has a strong focus on the US West Coast. Indeed, as Tetrel points out, 12 airports share 90% of the 4.2 million Chinese passengers that became the number two passengers in terms of spending in Americas travel retail. They spend an average of US$1,155 on beauty items when traveling in North America, some 37% of their total shopping budget. And these passengers are “very, very color savvy”, he says.

Giorgio Armani is one of the most renowned brands in China, making it logical that the company focuses first on the Asian cluster. In Asia, both travel retail and local markets are showing double-digit growth. Giorgio Armani lip products multiplied their sales five-fold in four years. “Everywhere the brand is present we are number one in foundation,” adds Tetrel. There are two reasons for this makeup momentum, Marketing Director Marie Dardayrol-Sandevoir believes: first, couture brands such as Giorgio Armani and Yves Saint Laurent have leveraged the popularity of Korean culture, known as Hallyu. They work together with actresses, bloggers, YouTubers, and influencers to get product placement and reviews that create huge demand for the shades used. The markets frequently suffer out of stock after a drama showed a specific shade. Second, Dardayrol-Sandevoir refers to the rise of the “make-up 2.0 culture”. This means that, thanks to the phenom-

enal trend of YouTube tutorials, people have increased the number of products they use and their needs are increasing. Contouring, strobing, baking, eyebrows, nail art…. all these techniques increase dramatically the number of products necessary to create the perfect look.

Customer-centric tailormade approach The travel retail Americas team will have opened all 12 key airport doors in thoroughly selected airports and shops, catering to Asian passengers but also American and European passengers by mid-2017. “We’re going fast and we’re going systematic. But we also go luxurious and customer-centric,” states Tetrel. The company aims to offer the best service for Chinese passengers. This encompasses Mandarin-speaking beauty advisors, POS displays of the product placement in Korean/Chinese drama, product definition in Chinese, gwps adapted to the local market offer, and Beauty Advisor with client at Giorgio Armani flagship store, La Galleria, Hawaii

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

GIORGIO ARMANI

From top left: L’Oréal Group’s team Thibault Tetrel, Marie Dardayrol Sandevoir, Rodrigo Castro, Maria Fernanda Guerrero, Edouard Mariotti, Eugenie Ernst and Rosalina Peral

the assortment with the right shades according to their needs. In addition, the company also offers exclusive products. These include the top-selling travel retail exclusive offers such as a premium palette and duo of Lip Maestro with the two shades Giorgio Armani himself developed with the brand: the 400 red that has been developed to fit all women’s skin tones, and the sheer pink 500.

As Chinese registration authorities are complex, the travel retail team offers avant-premiere exclusive shades the local market cannot get. For example, it will launch Lip Magnet with four iconic shades the local stores cannot carry in the first year. The travel retail team is set to celebrate Chinese New Year with an exclusive retailtainment concept. They have

Skincare catered to Chinese demographic to meet passengers needs

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

already offered an engraving and wrapping service to add value to a gift with personalization. People can add a name, a date, a declaration to their bottle, at a time when “personalization is absolutely key”, explains Dardayrol-Sandevoir. The travel retail footprint is also being developed in the rest of the US and Canada with the opening of Detroit, Atlanta, Miami, Dallas, Montreal, and Boston. In the South, Giorgio Armani will have opened the eight major doors in Latin America by mid-2017. As for the North, the selection process is being made according to the sales potential and to the readiness of the clients to partner with the company in order to offer the best space and the best service to customers. In South America, the challenge is different, notes Dardayrol-Sandevoir. As there is no footprint for the brand except in Mexico City, the company has to create the awareness, working in synergy with local markets to build partnerships with the top 10 beauty magazines, bloggers, YouTubers, and social networks, and to inform people about the exclusive openings in airports. “This is also giving travel retail channel a newer sense of exclusivity and modernity,” she says. Speaking about influencer marketing, Dardayrol-Sandevoir continues: “Bloggers travel, so we have to think about their communication process as a normal cycle for them where they actually comment various times a day their own life, and get out of the silo communication management (having them come to an event, having them communicate about it and that’s it) for a more linear communication process, more natural, where they communicate about the brand each time they get in contact with it, including their trips.” Tetrel believes this strategy benefits the fragrance business as well, where attention to detail in-store is paramount. “We get the premium, most luxurious spaces, and we upgrade our retail expression to the finest level with a strong demand for each detail.” “And we actually can see it in the numbers,” enthuses Tetrel. Giorgio Armani’s fragrance market share has increased significantly during the recent roll-out, influenced by “new, big, premium space, color impact and service”.

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MEGA STORE, CHILE

Duty-free zone at the end of the world is now mega-sized

ravelers passing through Puntas Arenas, Chile, on their way to Patagonia’s Torres del Paine National Park, an Antarctic cruise, or a whale-watching day trip have a big new reason to cheer whether winding down from or gearing up for adventure. Since December 2015, after nearly three years of construction, Chilean operator Transworld Supply opened up to the public its new 5,000-square-meter Mega Store Duty & Tax Free Mall, right in the middle of Antarctica’s peak summer travel season. Known as “the end of the world,” Puntas Arenas attracts trekkers, maritime freight workers, students, and researchers from around the world including India, China, Morocco, France, Italy, Spain, Germany, Croatia, Ireland, Switzerland, Japan, Canada and the United States. It is situated in what is known as Chile’s Magallanes Region, the southernmost and largest region in the country. It is one of the lesser populated regions of Chile but nearly 80% of its inhabitants, or 131,000 citizens, live in Puntas Arenas. The rest of the economic traffic is driven by tourism.

Inside Mega Store, one of the topselling products is fine perfumes

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

Chilean operator Transworld Supply opens Mega Store in Puntas Arenas for Patagonia-bound customers by

KATHERINE YAUN

As an international port city, cargo and cruise ships stop over to port, re-fuel, and rest before making the long voyage back to their home continent. Puntas Arenas is also home to worldrenowned University of Magallanes, an international university system with a major research initiative dedicated to the study of Antarctica and the Sub Antarctic region. Just down the street from the University, Mega Store and the duty-free zone in which it is situated attracts crowds of local residents, researchers, ship crews, and trekkers alike in need of a break from work or play. Anyone who is up for an outing can roam past the mansion-lined Plaza de Armas northward along Avenida Manuel Bulnes, past a series of museums, plazas, parks, the city’s soccer stadium, and on into the duty-free zone for a little shopping can now benefit from a whole new array of product offerings in Mega Store.

New duty-free offerings at the end of the world Americas Duty Free recently sat down with CEO Alan Nandwani to find out more about this new venture and the company’s position in Chile’s duty-free industry. “We opened the store to give people the chance to experience the luxuries of a duty-free store, thus opening horizons and connecting them to the world,” said Nandwani. “We finished up a difficult year economically speaking in Chile but despite this, Mega Store proceeded to open and sales have been quite good since its launch.” Mega Store features eight departments in a locally designed space similar in style to a Miami showroom with clothing, cosmetics and skincare, gourmet edibles, fragrances, luxury gifts, tobacco, wine and spirits, electronics and video games. Top-selling product categories include clothing, perfume, and electronics. “We have many best-selling brands, almost too many

to name, but some of the better known and popular ones include Versace, Desigual, and Guess.” For the December pre-opening celebration, Mega Store’s staff of nearly 70 employees organized a fashion show with performances by local artists and a small cocktail party, even offering a substantial discount on everything in the store that day. A grand opening and inauguration is being planned for later in the year and will feature more fashion and discounts, as well as samples of the store’s selection of fine wines from France, Italy, and Spain. In terms of customer base, Mega Store is most strongly attracting Brazilians and Argentinians. On an average weekend, more than 2,500 vehicles can cross into Chile from the border shared with Argentina. During peak travel season NovemberMarch, international customers contribute to a good portion of the sales. “Perhaps most interestingly, we have been attracting ship crews from around the world,” said Nandwani. “It’s not just Antarctic cruise ships that pass through Puntas Arenas. We also have European and Asian freight and fishing ships that stop over from Thailand, Norway, and other countries.” They stay for a day or two, resupplying the ship with food and fuel and regrouping before the return trip home. “Meanwhile the crew members come in to buy cognac or whisky, souvenirs for their families, and have a pleasant break from their months-long stretches aboard ship,” said Nandwani.

Multi-faceted, multi-generational Chilean business by way of India Nandwani’s family and business history is also centered around that long voyage to Puntas Arenas. At just 16 years old, his grandfather Bhojraj Hotchand immigrated to Chile from India in 1912, becoming one of the first Hindus to arrive in southern Chile. Within 10 years he already had 10 stores to his name as well as commercial ties to the Falkland Islands. Today Hotchand’s children and grandchildren honor his legacy by continuing the holding he founded over a century ago. Owned and operated by Transworld Supply, Mega Store is the latest travel retail venture of its parent company that also owns and operates businesses in the real estate, automotive, electronic imports, clothing, and jewelry categories, with 18 stores in the duty-free zone.

“I’d say that our most lucrative ventures right now are in the real estate category, with automobile sales and automotive parts coming in at a close second,” said Nandwani. Well-known brands such as Mitsubishi, Mahindra, BMW, Audi, Volvo, Toyota, Michelin, and Pirelli have crossed from their showroom and into the streets of Puntas Arenas and beyond. The company has over 10,000 square meters of automotive retail space to show off these brands. It also boasts over 6,000 square meters of retail space in the duty-free zone of Puntas Arenas dedicated to their clothing, jewelry, electronics, and accessories stores featuring brands such as Ray-Ban, Guess, Versace, Pioneer, Sony, Apple, and Valentino. In terms of real estate, Transworld Supply’s holding ENE’s Nandwani operates condominiums, buildings, large tracts of land, and public service offices. A Puntas Arenas hotel is also in the works now. “We will be working on finalizing the property for the remainder of this year and are targeting a January 2017 opening,” said Nandwani. The space will be approximately 5,700 square meters, inclusive of a spa, restaurant, commercial and retail area, and 1500-square-meter convention center.

Passion works: Online and regional outreach In addition to real estate development, the company is also committed to the social and economic development of the Magallanes Region of Chile. “We are a very down-to-earth company,” said Nandwani. “We believe in helping the community but not necessarily in advertising when we act as a sponsor. My grandmother used to say when your left hand is doing something don’t let your right hand know about it.” Even so, the company is actively working to increase its online traffic to stay competitive in the digital age. “We hope to empower our position in the virtual universe with the hopes of achieving a stronger connection and communication with our younger generation customers,” said Nandwani. A self-described hobbyist whose craft is his work, Nandwani’s dedication is clear and it permeates throughout the company’s social media reach and into Mega Store’s opening success. “When you do something you like and you do it with passion, it works,” said Nandwani.

An open, airy, and well-lit space was designed to showcase Mega Store’s eight departments: cosmetics and skincare; gourmet edibles; fragrances; luxury gifts; tobacco, wine and spirits; electronics; and video games

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

MEGA STORE, CHILE

Zona duty free en “el fin del mundo” incorpora megatienda de Transworld Supply

Operador chileno Transworld Supply inaugura megatienda en Punta Arenas para clientes que visitan la Patagonia

os viajeros que pasen por Punta Arenas, Chile, camino al Parque Nacional Torres del Paine de Patagonia, los pasajeros de un crucero antártico, o de un recorrido de un día para ver ballenas, tendrán una buena razón de júbilo a la hora de concluir o de prepararse para una aventura. Desde diciembre del 2015, luego de casi tres años de construcción, el operador chileno Transworld Supply inauguró al público su nuevo establecimiento Mega Store Duty & Tax Free Mall, con 5,000 metros cuadrados de extensión, justo en la temporada alta de viajes de verano al Polo Sur. Puntas Arenas, conocida como “el fin del mundo”, atrae a viajeros, obreros de carga marítima, estudiantes e investigadores de países de todo el mundo como India, China, Marruecos, Francia, Italia, España, Alemania, Croacia, Irlanda, Suiza, Japón, Canadá y los Estados Unidos. Está situada en la Región Magallanes de Chile, la zona más sureña y de mayor extensión

del país. Es además una de las regiones menos pobladas de Chile, pero aproximadamente el 80% de sus habitantes (131,000) residen en Puntas Arenas. El resto del tráfico económico es proporcionado por el turismo. Por su característica de ciudad portuaria internacional, las embarcaciones de carga y los cruceros la utilizan para embarque y desembarque, reabastecimiento de combustible y punto de descanso antes del largo viaje de regreso a su continente de destino. Puntas Arenas es también la sede de la Universidad de Magallanes, de prestigio mundial, un sistema universitario internacional con una importante iniciativa de investigaciones dedicada al estudio de la región del Polo Antártico y la región subantártica. Mega Store y la zona duty free donde radica, ubicadas en la misma calle de la Universidad, atraen a residentes locales, investigadores, tripulantes y viajeros por igual en busca de descanso o juegos. Todo el que transite por la Plaza de Armas, rodeada de mansiones, en dirección norte por la Avenida Manuel Bulnes, pasará junto a una serie de museos, plazas, parques, el estadio de fútbol de la ciudad, para luego llegar a la zona duty free, donde los compradores podrán beneficiarse actualmente con una nueva gama de ofertas de productos en Mega Store.

Nuevas ofertas duty free en el fin del mundo

International trekkers and locals alike have been flocking to Mega Store since its opening in December

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

La revista Americas conversó recientemente con Alan Nandwani, Director Ejecutivo de la firma, quien ofreció más detalles sobre su nueva empresa y la posición de la compañía en la industria duty free de Chile. “Inauguramos la tienda para darle al público el disfrute del lujo de una tienda duty free, abriendo así horizontes y conectándolos con el mundo”, expresó Nandwani. “Terminamos un año difícil desde el punto de vista económico, pero, a pesar de

MEGA STORE, CHILE

Negocios chilenos multifacéticos y multigeneracionales con raíces en la India

ello, Mega Store abrió sus puertas y las ventas han ido bastante bien desde su inauguración”. Mega Store cuenta con ocho departamentos en un espacio localmente similar en estilo a una tienda de Miami: ropa; cosméticos y productos para el cuidado de la piel; comestibles gourmet; fragancias; regalos de lujo; tabaco, vinos y espirituosos; electrodomésticos; y videojuegos. Entre las categorías de mayor venta están: ropa, perfumes y electrodomésticos. “Contamos con muchas marcas de gran venta, tantas que resultaría difícil mencionarlas ahora, pero entre algunas de las más conocidas y populares están Versace, Desigual y Guess”. Para la celebración previa a la apertura en diciembre, el equipo de Mega Store, compuesto por unos 70 empleados, organizó un desfile de modas con presentaciones de artistas locales y un pequeño coctel, además de ofrecer descuentos sustanciales en todos los artículos a la venta en la tienda ese día. En estos momentos se planifica una gran apertura e inauguración en los próximos meses, con más modas y descuentos, así como muestras de los excelentes vinos de la selección de la tienda, procedentes de Francia, Italia y España. En lo que respecta a clientela, Mega Store está atrayendo con mayor intensidad a brasileños y argentinos. En una semana promedio, más de 2,500 vehículos pueden entrar a Chile por la frontera que ese país comparte con Argentina. Pero durante la temporada alta de viajes de noviembre a marzo, los clientes internacionales aportan una porción sustancial de las ventas. “Tal vez lo más interesante es que hemos estado atrayendo a tripulaciones de barcos de todo el mundo”, añade Nandwani. “No solamente los cruceros por el Polo Antártico que pasan por Punta Arenas. También tenemos barcos de carga y pesqueros europeos y asiáticos que hacen escala procedentes de Tailandia, Noruega y otros países”. Esos tripulantes permanecen en la ciudad por uno o dos días, durante el reabastecimiento de combustible y de alimentos del barco, para volver a reunirse antes del viaje de regreso. “Mientras esperan, los tripulantes visitan la tienda para comprar coñac o whisky, regalos para sus familias, y disfrutan de un agradable descanso luego de largos meses a bordo”, explica Nandwani. 24

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

La historia de la familia y el negocio de Nandwani también se centra en ese largo viaje a Punta Arenas. Con solo 16 años, su abuelo Bhojraj Hotchand emigró a Chile desde la India en 1912, convirtiéndose en uno de los primeros hindúes que llegaron al sur de Chile. Al cabo de 10 años era propietario de diez tiendas, y había establecido lazos comerciales con las Islas Malvinas (o Falkland). En la actualidad, los hijos y nietos de Hotchand honran su legado trabajando en el negocio que fundó hace más de un siglo. Mega Store, que es propiedad y operación de Transworld Supply, es la empresa minorista de viajes más reciente de su compañía matriz, la cual también posee y opera negocios en las categorías de bienes inmobiliarios, automóviles, importación de electrodomésticos y joyería, con 18 tiendas en la zona duty free. “Diría que nuestras empresas más lucrativas en la actualidad se ubican en la categoría de bienes inmobiliarios, mientras que las ventas de automóviles y piezas de repuesto para los mismos ocupan el segundo lugar”, agrega Nandwani. Marcas conocidas como Mitsubishi, Mahindra, BMW, Audi, Volvo, Toyota, Michelin y Pirelli han pasado por sus salones de venta para transitar por las calles de Punta Arenas y el resto del país. La compañía cuenta con más de 10,000 metros cuadrados de espacio para venta de automóviles de las marcas mencionadas. Además, tiene a su disposición más de 6,000 metros cuadrados de espacio comercial minorista en la zona duty free de Punta Arenas, dedicada a sus tiendas de ropa, joyería, electrodomésticos y accesorios, con marcas como Ray-Ban, Guess, Versace, Pioneer, Sony, Apple y Valentino. En términos de bienes inmobiliarios, ENE Nandwany, sociedad tenedora de Transworld Supply, opera condominios, edificios, grandes extensiones de terreno, y oficinas de servicio público. Además, está construyendo un hotel en Punta Arenas. “Estaremos concluyendo los trabajos en la propiedad el resto de este año, y nos proponemos inaugurarla en enero del 2017”, afirma Nandwani. El hotel tendrá aproximadamente 5,700 metros cuadrados, con spa, restaurante, espacio comercial y minorista, así como un centro de convenciones de 1500 metros cuadrados.

Pasión, dedicación, presencia en línea y regional La compañía, además de la creación de bienes inmobiliarios, tiene el compromiso con el desarrollo social y económico de la Región de Magallanes de Chile. “Somos una compañía realista”, asegura Nandwani. “Creemos en la ayuda a la comunidad, pero no necesariamente en publicidad cuando actuamos como patrocinadores. Mi abuela solía decir: ‘No dejes que tu mano izquierda sepa lo que hace tu mano derecha’”. Aun así, la compañía trabaja activamente para incrementar su tráfico en línea, para mantener la competitividad en la era digital. “Esperamos empoderar nuestra posición en el universo virtual, con la esperanza de lograr una conexión y comunicación más sólida con nuestros clientes más jóvenes”, dice Nandwani. La dedicación de Nandwani, quien se describe como un aficionado cuya habilidad es su trabajo, es clara y se patentiza en la presencia de la compañía en los medios sociales, y en el éxito de apertura de Mega Store. “Cuando haces algo que te gusta y lo hace con pasión, funciona”, concluye Nandwani.

SIÑERIZ SHOPPING

Expansion

in Rivera

The vast size of the Siñeriz Shopping complex can be seen from the sky

The Uruguayan operator expands its mega shopping complex with entertainment and a new restaurant, bringing an Olympic-sized economic boost to its decades-long business by

KATHERINE YAUN

t has a been a busy summer for Uruguayan operator Siñeriz. The familyrun enterprise recently completed its next exciting phase of expansion despite recent social and economic challenges on the Brazil-Uruguay border. The Siñeriz group owns two large stores at the border with Santana do Livramento, Brazil: the flagship duty-free store located within the Siñeriz Shopping mega shopping complex, and the 2,500-square-meter shop in the city center, Siñeriz Free Shop.

CEO and Director of Siñeriz Gandhi Abdullah with Commercial Manager Hilmi H. Abdullah Neto. The pair applauds the opening of La Perdiz within Siñeriz Shopping as well as the 2,500 additional square meters of entertainment and retail services

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

The big opening On June 15 Siñeriz Shopping opened 2,500 additional square meters of entertainment, restaurant and retail space including a new second location for one of Montevideo’s most popular restaurants, La Perdiz. The restaurant originally made popular in the capital can now also be enjoyed by residents and visitors in the border town of Rivera.

Impact of expansion and new restaurant Americas Duty Free recently sat down with CEO and Director Gandhi Abdullah and Commercial Manager Hilmi H. Abdullah Neto to find out how business has been since these new developments in June. “The expansion is a complete success,” says Abdullah. “It has increased traffic by more than 45% in the services area and this has in turn impacted our duty-free sales.” The La Perdiz restaurant is pulling in new customers, too. “The restaurant is so popular that since opening day in June customers have needed a reservation, and that continues to be the case,” says Neto. “It is quickly becoming one of most popular meeting spots in Rivera, just as it is in Montevideo. The nearby children’s entertainment area, which is open to all customers in the shopping complex, is a big contributing factor,” he continues.

“Parents love that they can have a pleasant and relaxing meal while keeping a watchful eye on their children having fun in the play area.” This new 400-square-meter second location offers many of the same beloved menu items including barbecue, pasta and fish. It has two levels, with a main restaurant space on the first level and the second level available for private parties and special events. The nearby kids’ entertainment area is a 150-square-meter space replete with a pirate-ship. The shopping complex contains other features to draw customers, including a megaplex cinema, supermarket, pharmacy and many name-brand outlets. “Overall, the expansion has really exceeded expectations,” says Neto. “We continue to keep our loyal customer base while opening up opportunities for new customers.” Even before this 10-month expansion project, Siñeriz Shopping was one of the largest duty-free stores in Uruguay at 16,000 square meters, 10,000 square meters of duty free shopping and 6,000 square meters of food court, supermarket, services and backstage. Now with this luxe new add-on, Siñeriz is considerably larger, and is enjoying even more recognition and traffic. Meanwhile, over in Rivera’s city center, the Siñeriz group’s original retail store has been drawing customers to the heart

SIÑERIZ SHOPPING

of the city since 1987. Perhaps one of its biggest customer draws is its convenient location on Sarandi Avenue, near International Park (also known as the Plaza Internacional). Established in 1943, this park is divided into two equal parts shared by Brazil and Uruguay, where visitors can move across the border fluidly. “The political climate in Brazil lately has caused people to think more about purchases, travel across the border, and even visit new locations in each country,” says Neto. This is the type of thing locals have been doing for decades. Hilmi Abdullah, the business’s founding father who in 1962 himself crossed into River from São Paulo, Brazil, bought the building and the rights to the wellknown family business and name of Siñeriz in 1980. The original Siñeriz store was founded in 1920 by the Siñeriz family, who immigrated to South America from Spain. The family name quickly became synonymous with quality products and strong customer service. When the Uruguayan government opened up the duty free zone in 1987, Abdullah quickly moved to open the Siñeriz Free Shop with his two sons, Gazi and Gandhi. “Since 1920, the Siñeriz name has been known in Rivera for the quality of products they offer,” says the self-same Gandhi Abdullah, now CEO. “This principle has never been lost and it will be always our objective, to offer the best products and be specialized in every single department.” Indeed, both the city center and flagship stores offer a strong variety of quality products and a steady stream of sales in top-selling categories of wine and perfume. “At the Siñeriz Free Shop in the city center, we concentrate on a mix of principal brands across our top-selling categories. In the winter, our strongest sales are in fine wines and perfumes. We currently have more than 8,000 different labels of wine on offer from the most costeffective Chilean to the most exclusive French labels.” Over at Siñeriz Shopping, sales last peaked in 2014 after its 2012 grand opening. However, with the recent expansion sales have been strong again since June. “We had a huge increase in the number of visitors in the weeks leading up to the opening,” says Abdullah. “We are recognized not only as the biggest duty free center in the country, but now as one of the most specialized ones. With our

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

Outside Siñeriz Free Shop in the city center, crowds of people enjoy crossing the border from Santana do Livramento, Brazil into Rivera, Uruguay, to enjoy an afternoon of duty-free shopping

One of the top-selling categories of sales at the city center shop is fine wines, with imported labels ranging from nearby Chilean vineyards to France, Italy, and other top European labels

La Perdiz restaurant’s new location in Siñeriz Shopping lights up at night

SIÑERIZ SHOPPING

increase in services and attractions, we can offer more advantages to our visitors.”

Expanding on land and online

Inside La Perdiz, the wine flows as customers enjoy a relaxing meal

Crowds make their way through the Siñeriz Shopping complex. From the duty-free shop to a supermarket, cinema, pharmacy, and now a new entertainment area, the popularity of this hotspot is at an all-time high

Children enjoy the new entertainment area with pirate-ship theme just outside La Perdiz

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

Looking ahead at new opportunities, the retailer also plans an additional 4,000-square-meter expansion of its flagship duty free store in 2017, just in time for the fifth anniversary of Siñeriz Shopping’s grand opening. Getting the word out on the recent expansion and these upcoming expansion plans is a top priority. The company has a full-time team dedicated to its presence on the Web and social media. “The result of this effort has been excellent,” says Neto. “People arrive to the store knowing the novelties, promotions and the brands we promote. This means that we are reaching the correct consumer.” In terms of customers, the company is interested in quality over quantity. “For example, we have more than 70,000 followers in Facebook,” says Neto. “But followers also interact, ask questions and want to know what we are doing.” He goes on to reflect on the journey that led to this new peak in Rivera and online. “The original store has weathered some difficult moments, and so has the Siñeriz Shopping complex with the economic crisis in Brazil. But year after year the company has not lost its principles. In every challenge we have seen opportunities and with this new expansion, the opportunities are endless.”

MONALISA

Setting up in Asuncion Paraguayan luxury border retailer Monalisa heads west to bring fashion, fine wine into the country’s capital by

KATHERINE YAUN

Partygoers check out Monalisa’s selection of fine wines.

n August 18 duty-free luxury brand merchant Monalisa celebrated the grand opening of a new storefront in the Paraguayan capital of Asunción. Originally founded in Ciudad del Este, the retailer has been open for business from this new western location since its soft opening in May. In August President and CEO Faisal Hammoud was pleased to celebrate both the store’s grand opening and a successful first three months. Americas Duty Free recently sat down with Hammoud to find out more about this auspicious beginning for Monalisa’s new Asuncion address and learn about upcoming plans to cap off the company’s western expansion. “Sales were a bit light at first but now they have totally exceeded our expectations,” said Hammoud. “The shopping is new, the store is new to the city, and this has all required a period of adaptation to allow our clientele to become accustomed to visiting our store.” Since May, the company has had the opportunity to gauge customers’ habits and attitudes. “They have gradually found the activities they enjoy around the Paseo Galleria (Paseo la Galería) Before the party, the tables are set inside the new store and ready for the guests to arrive.

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

like going to the cinema, dining with friends and family, and now shopping at our new store,” said Hammoud. “Word has gotten out and there is an excitement and buzz surrounding the store’s grand opening,” he added. “It’s not just around the city but also countrywide and across the border. People have caught wind of this new store, the shopping complex it’s in, and the opportunities surrounding them.”

The grand opening and the Galleria Hammoud presided over the grand opening of Monalisa’s new 3,500-square-foot store located within the capital’s Paseo Galleria shopping complex. Balloons, appetizers, and live music, a DJ, and even an opportunity to have your drawing made in the likeness of the Mona Lisa painting marked the occasion as customers, friends, press, and special guests attended the ceremony. Special entertainment included a rousing musical performance by the Recycled Orchestra of Cateura. Directed by Favio Chavez, this orchestra consists of underprivileged children, adolescents and teens from the Bañado Sur community located near the city’s landfill. All of the instruments the kids play are By the end of the evening on August 18, hundreds had gathered to celebrate Monalisa’s grand opening.

visit us TFWA World Exhibition: GREEN VILLAGE M52

MONALISA

made with materials found in the landfill. The Recycled Orchestra has performed around the world, even entertaining royalty. Now, they brought their unique talent and story to a delighted Monalisa audience. To find out more about this group, visit www.recycledorchestracateura.com. In addition to marking the store’s grand opening, this event has focused on facilitating customers’ continued familiarity with the Paseo Galleria. “We hope everyone branches out from this event and continues familiarizing themselves with the whole place,” said Hammoud. “We work very closely with the management team of the Paseo so that this can happen.” The Paseo is owned by Guatemalan-based Blue Tower Group who focuses on telecommunications, energy, and real estate in Guatemala, El Salvador, Costa Rica and now Paraguay. Hammoud is hopeful that Monalisa’s brand new first-floor location in this state-of-the-art complex will lead to new employment opportunities for the capital’s 2.5 million and growing population.

The team of employees who oversee the store’s day-today operations enjoyed the evening’s entertainment.

Faisal Hammoud and Walter Allende preside over the grand opening ceremonies.

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

Faisal Hammoud and Walter Allende preside over the grand opening ceremonies.

The Monalisa management team celebrated months of hard work coming together for the new store’s grand opening.

The Hammoud family and Walter Allende gathered together for the grand opening.

MONALISA

With Monalisa as its latest addition, the Galleria is also continuing to grow due in large part to its location within one of the most rapidly expanding areas of Asuncion, Ycuá Satí. This bustling area is located just south of one of the city’s main thoroughfares, Avenida del Aviadores del Chaco. It will boast nearly 45,000 square meters of retail space across three floors when construction is finished next year. The complex currently offers everything from clothing and accessories, home, and pharmaceutical products to a cinema, bookstore, and supermarket. To learn more, visit www.paseolagaleria.com.

A DJ was on hand to keep the party atmosphere going.

Bringing high fashion to Asuncion Now that Monalisa is part of the Paseo line-up, luxury retail is also available to the patrons of the Asunción complex. Founded in 1972 as a small retail shop, Monalisa developed into a luxury brand retailer with an emphasis on beauty products and a strong presence in Mercosur, the region’s free trade partnership among Argentina, Brazil, Venezuela, Bolivia, Uruguay and Paraguay. Sales in fashion are helping Monalisa gain firm footing as an anchor store in the new shopping complex. Over the past Reigning Miss Paraguay Alma Villagra stops by the grand opening and checks out some of the store’s top fashions.

Part of the evening’s entertainment included the option of having a portrait made in the style of da Vinci’s Mona Lisa.

The fabulous Recycled Orchestra of Cateura directed by Favio Chavez entertained the crowd at Monalisa’s grand opening in Asuncion. The orchestra consists of underprivileged youth from the Bañado Sur community located near the city’s landfill. All of the instruments the kids play are made with materials found in the landfill.

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

three months, fashion brands that have been selling well in the store include Prêt-à-Porter, M Missoni, Red Valentino, Just Cavalli, Versace Collection, Emporio Armani, Tommy Tailored, Givenchy, Armani Jeans. Accessories sales have also been taking off with brands such as Dudalina, La Martina, Michael Kors, Ralph Lauren, Oakley, Desigual, Nautica, 7 Jean, Guess, DKNY, Carter’s, Oshkosh, Abercrombie & Fitch, and Hollister. “We know that the Asuncion fashion market is very stylish, very high-end, and appreciates international brands with a taste for European styles,” said Hammoud. Entering into its 44th year of business, Monalisa also specializes in an array of cosmetics and fragrances. Current top sellers in the cosmetics category include J.Lo fragrance, Lancôme eyeliner, Clinique skin solution, and J.F. Lazartigue hair conditioner. The 297-square-meter retail space in Asuncion is also allowing Monalisa to provide its clients with more offerings like casual and sportswear, children’s clothing, and items for the home and kitchen. The company is also in the process of adding watches and jewelry to its line-up.

MONALISA

The red carpet is set in the style of the Louvre Museum in Paris, France, giving guests the opportunity to pose alongside da Vinci’s famous “Mona Lisa” painting of Lisa del Giacondo.

The cave and a café “In the coming months we plan on opening an exclusive bodega for our fine wines within our Monalisa Asuncion location called The Cave,” said Hammoud. The Cave Monalisa is one of the principle attractions of Monalisa’s original store in Ciudad del Este, with more than 70,000 bottles from some of the principle international vineyards. There, Monalisa features wine labels from different regions of France, Italy, Spain, Hungary, Portugal, and South Africa among others. “The Cave in Ciudad del Este is well known among visitors and residents across the Mercosur, said Hammoud. “We want to open a smaller, but just as well-known and appreciated version in Monalisa’s new location in the Paseo Galleria. We want to offer our customers in the capital city some of the best wine labels in our collection.” The company had a preview of its wine list available during the August 18 grand opening and will soon be stocking the new store with those labels. Monalisa also wants to create a relaxed atmosphere for its customers with a café project that is in progress. “Café Monalisa will be a place for our customers who appreciate a good cup of coffee to relax before or after a pleasant time out shopping,” said Hammoud. The addition of the The Cave and Café Monalisa will certainly draw in new customers. As word continues to spread about Monalisa’s new store in Asuncion, Hammoud is also confident that

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

its client base will continue to grow through some of its ongoing promotions such as product demonstrations, press events, seasonal fashion shows, and make-up application workshops. The Paseo Galleria is also continuing to expand with the construction of two new office towers, which the company expects will attract more traffic to Monalisa as well. “The store is quite dynamic and we want to transfer this sensibility to our clients and visitors,” said Hammoud. “We want the Monalisa in Asuncion to bring to the capital city the high level of customer service and brand offerings that our customers in Ciudad del Este have come to know. The new Monalisa is an extension of what we offer there and we’ve built it to fulfill the needs of our clients and friends in Asuncion.” The spotlight is on the exterior of Monalisa’s new store in Asuncion for its grand opening.

COGNAC FINE CHAMPAGNE

LEGACY BUILDER

ART DE VIVRE

TRAVEL RETAIL EXCLUSIVE

DUFRY PERU

(L-R) Juan José Salmón, Chief Executive Officer of Lima Airport Partners (LAP), Sabine Trenk. Chief Operations and Commercial Officer of LAP and Rene Riedi, Chief Executive Officer, Latin America, for Dufry

Launch in Lima L ima, Peru’s Jorge Chavez International Airport was earmarked a few years ago as one of the fastest-growing airports globally. From 2009 to 2015 annual passenger numbers at the airport doubled, from under 8.8 million to nearly 17.6 million. Of this number, 45% are international passengers.

After a whirlwind time of renovations and refurbishment, in August Dufry had a Grand Opening of its three new stores in Lima, Peru by

WENDY MORLEY

Double the space Dufry’s acquisition of World Duty Free last year gave the company greater access to this growing market. The retailing giant lost no time in renovating and remodeling to bring the airport’s stores up to its standards as part of the company’s global plan to offer all Dufry customers a “world class experience.” The new Lima Duty Free store brings a sense of place through its design and its offer

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

Dufry’s three stores, inaugurated in August of this year, comprise 3,025 square meters: The main departure duty free walk-through store is 2,370 square meters, the arrivals duty free walk-through store is 530 square meters and the express store is 120 square meters.

Support from the airport As an integral part of the equation in travel retail, the airport has done its part to help ensure success for these new ventures. “Dufry has worked very actively with the airport to design the walkthrough store. Lima Airport Partners (LAP) was of immense help to find a solution with respect to the corridor, which requires a width of at least 10 meters,” says Rene Riedi, Dufry’s Chief Executive Officer, Latin America. “LAP came up with the idea to change the location of the corridor and to locate it on the right side past security, respecting this 10-meter requirement.” The airport also worked with the regulatory authority in order to allow for some variances in respect to the width of the walkways through the store. “LAP is an active partner, suggesting ideas to improve the performance of our stores. We enjoy an excellent and fruitful relationship with the airport,” confirms Riedi.

GALAXY® is a registered trademark. ©MARS 2016.

DUFRY PERU

The inauguration was met with a month of promotions, and a full promotional calendar is of utmost importance to Dufry

The integration of the Lima Duty Free operation into the Dufry system has now been successfully completed, says Riedi. “The store functions as per our standard processes and procedures. The inauguration of the renovated and expanded stores marks basically the end of this integration process. The local team has shown great effort in making this project happen within the set timeframe.”

Committed to offer and promotions Of course, the key to success in airport retail is promotions. The store launched a Grand Opening Scratch & Win promotion, offering different levels of discounts to the winners. As part of the grand opening, Dufry offered Pisco tastings, promotions and discounts of up to 30% on numerous items while preparing for more promotions in the coming months. “A priority for us is promotions and activations and making sure that we have a full promotional calendar throughout the year,” says Riedi. “During the last quarter of the year, we will launch the Dufry Global Promotion, with attractive price discounts across all categories.” The company is also committed to an interesting offer. To this end, it introduced 15 new brands, seven of which are new to Peru and as such not available in the domestic market. “Over the next couple of months we will focus on studying the performance of each section of the store and initiate corrective measures where we feel it is needed.”

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

Dufry had the help of LAP to help bring the walkthrough concept to life

Strong sense of place Dufry understands well that travelers enjoy a sense of place in their shopping surroundings and also like to be offered items that reflect the place they have been visiting. Lima Duty Free’s new walkthrough design leads passengers through a complex mix of reflections and images that represent the dynamic and changing character of the city of Lima. “Passengers will find a unique area dedicated to local destination products,” says Riedi. “The concept is called ‘Thinking Peru’ and is designed to deliver a strong sense of place and local identity.” The design is based on elements inherent to the Peruvian culture. A colorful lattice across the ceiling brings to mind the famous local textile, completing the atmosphere and evoking the warmth and hospitality Peruvians are famous for. This is the place to find a perfect souvenir, from a bottle of Pisco produced by one of the most distinguished distilleries in the country to chocolate produced from the famous Peruvian cacao to delicious turrones and world renowned alfajores. “One of the local products we will promote particularly is Pisco,” says Riedi. “A spirit distilled from grapes, Pisco is a famous national drink and a favorite with our customers. We have included in our store concept two tasting bars where interested passengers can taste a Pisco Sour, a popular cocktail.”

Staying the course While the past year has not been strong for the regional economy, Riedi says this has not influenced Dufry in any negative way. “On the contrary, we have always

been very committed with respect to CAPEX investment in renovation and expansion of our stores. The crisis in South America has been mainly due to currency volatility and has not really influenced our plans. As we are witnessing more stable currencies these days, we believe we are well prepared for a possible recovery.” The opening of Lima Duty Free was presided over by Riedi, Juan José Salmón, Chief Executive Officer of Lima Airport Partners (LAP), and Sabine Trenk. Chief Operations and Commercial Officer of LAP. “For us the renovation and expansion of our new Lima Duty Free commercial space is a clear commitment to long-term investment in one of the major airports in which we operate in Latin America,” said Riedi at the stores’ launch in August. “With these new stores, we have completely renewed and updated our offer at Jorge Chávez International Airport. We seek to bring together a wide range of designs from the most exclusive brands, without losing local essence and flavor. In addition, the expansion of the commercial space allows us to offer our customers a much more exciting in-store experience, which includes brands that wouldn’t normally be found on the high street.” Mr. Riedi continued: “We thank LAP for the trust they have placed in Dufry, and we are proud of what we have achieved in collaboration with this important partner. We look forward to passengers enjoying the new commercial offer, and to continuing to work closely with this airport for many years to come.”

TORONTO PEARSON

An eye in

the sky Toronto Pearson International Airport has opened 50,000 square feet of travel retail, F&B and relaxation space. Redeveloped by the Greater Toronto Airports Authority, the area includes new restaurants and retail from partners including HMSHost, OTG, Dufry and Paradies Lagardère Travel Retail.

reater Toronto Airports Authority (GTAA), the operator of Toronto Pearson International Airport, continues to redefine its passenger experience with the complete redesign of 50,000 square feet of retail space in Terminal 3. Just in time for the summer travel peak, this revitalized space marks the next step in the evolution of Terminal 3 and further For passenger comfort, the new space incorporates a large skylight, dubbed the Eye in the Sky, bringing natural light into an area filled with comfortable seating, charging stations integrated into tables, LED trees, and other whimsical elements aimed at easing travel stress

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

demonstrates Toronto Pearson’s leadership in bringing a variety of the most sought-after dining and retail establishments for all types of passengers. To celebrate this opening, passengers were treated to multicultural dance performances representing several international destinations serviced in Terminal 3 along with free sampling at dining locations and gifts with purchase at retail stores. Located just past security, this convenient new area offers passengers places to relax and features places to shop and dine from airport partners HMSHost, OTG, Dufry and Paradies Lagardère Travel Retail. Dufry’s duty free store features brands like TAG-Heuer, Rado, Omega, Tissot and Longines, while Discover Canada provides passengers with Canadian souvenirs and durable travel essentials. From children’s clothing to travel backpacks, this store aims to help prepare any passenger for their trip. The iStore offers the latest in mobile and digital lifestyle products from a wide selection of brands. Lolë is a Canadian company featuring bold activewear clothing for women. Relay carries books, magazines, newspapers, soft drinks, candy, snack and confectionery, lottery tickets, electronics, health and beauty essentials, phone cards, gift and souvenirs, apparel and travel accessories. Meanwhile, in F&B, Beerhive offers passengers an array of local and international drafts to pair with an expansive menu of contemporary and classic dining options. Smoke’s Burritorie serves burritos stuffed with ingredients like pork, carne asada chorizo, conchinita chicken and Smoke’s signature rice, beans, sour cream, cheese, and other fresh ingredients. Smashburger is a leading fast-casual upscale burger restaurant known for its fresh, 100% certified grilled Angus beef burgers, creating an upscale quality burger packed with flavor and served

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TORONTO PEARSON

Dufry’s duty free store features brands like TAGHeuer, Rado, Omega, Tissot and Longines, while Discover Canada provides passengers with Canadian souvenirs and durable travel essentials

at a great value. This location will feature full breakfast and lunch options as well as local food staple poutine. Shanghai 360 features authentic Chinese cuisine in a quickservice format. Diners will also be able to enjoy a bowl of traditional noodle soup from the fresh noodle bar. Wrapping up the F&B offer is Tim Horton’s, the Canadian staple cafe offering fresh coffee, donuts, and food. Opening soon to service passengers is CIBC, is a full-service banking centre. For passenger comfort, the new space incorporates a large skylight, dubbed the Eye in the Sky, bringing natural light into an area filled with comfortable seating, charging stations integrated into tables, LED trees, and other whimsical elements aimed at easing travel stress. The design language incorporated throughout this new section improves wayfinding by creating intuitive flows for the passenger, the airport operator said. Updated amenities seek to improve accessibility and passenger comfort, and the digitally enhanced network of large Samsung screens and back-end Cisco technology provide passengers with flight information.

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

The Terminal 3 Enhancement Project, expected to be complete in 2017, will improve passenger flow, introduce new and refreshed facilities and retail offerings, and better meet the needs of airport users today and in the future. “The newly redesigned space in Terminal 3 marks another major milestone in our work to ensure every element of the airport becomes one that enhances the passenger experience,” said Scott Collier, Vice President, Customer and Terminal Services, GTAA. “Passengers want a relaxing space to unwind before a trip, they want to charge their devices, and a variety of places to eat and shop. This new entry to the gates delivers on that in a big way.” Commenting on the project from an airline perspective, Ed Baklor, WestJet’s Senior Vice-President, Guest Experience, said: “On behalf of nearly 12,000 WestJetters, I would like to offer my congratulations to our partners at Toronto Pearson International Airport on the completion of this amazing revitalization of T3… The airport experience is a very important part of the journey and there’s no question that these new shops, restaurants and facilities will greatly enhance the airport experience for WestJet guests.”

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TORONTO PEARSON

Stanis Smith, Executive Vice President of engineering and design firm Stantec, said: “At the beginning of this project the GTAA challenged the Stantec team to transform and revitalize Terminal 3. We responded by designing a passenger-focused space, full of natural light, unique features, and exciting retail and food offerings. The most significant design feature of this space is the dramatic skylight, which we call the Eye in the Sky. The Eye in the Sky brings natural light into the space, creates a comfortable and calming environment, and brings a wow factor to the airport. We believe that this transformation of Terminal 3 sets a global standard, and will meet and exceed passenger expectations and the demands of 21st century air travel.” “The effort the teams put forth at the newly designed space at Terminal 3 was a tremendous feat that took unprecedented dedication, collaboration and teamwork,” said Kieran Hawe, Senior Vice President and Area Manager Toronto, at construction firm EllisDon. “We are privileged to have been part of this effort and successful delivery.”

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

To celebrate the opening of the new space, passengers were treated to free sampling at dining locations and gifts with purchase at retail stores

With 41 million passengers in 2015, Toronto Pearson is Canada’s largest airport, and North America’s second-largest international passenger airport, as measured by the total number of annual international passengers.

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DUFRY BRAZIL

Age of abundance

Renovations and expansion leading up to the Olympics led to nearly innumerable opportunities for Dufry to expand and create in Brazil by WENDY MORLEY

hen Brazil was awarded two major global sporting events in quick succession, it was big news for the country’s airports. As the company with by far the most stores in these airports, it was also big news for Dufry. “Both the World Cup and the Olympics brought many opportunities to Brazil, especially in terms of infrastructure,” says Gustavo Fagundes, Managing Director, Brazil and Bolivia. “In order to attend the increased demand, the main Brazilian airports had to adapt and expand. In parallel, the airports’ privatizations, which started in 2012, had already introduced a new view on the airport’s competitiveness and revenue generation, which helped to increase the relevance of the commercial activities. So Dufry benefited with both extended and enhanced retail spaces.”

Now that the process is complete, he says: “The outcome is competitive airports with tremendous infrastructure, under world-class standards.” He adds that Dufry’s positive relationship with the landlords enabled the company to develop and maximize the shops’ layouts, “with dedicated retail spaces created to reach the full potential in terms of productivity for duty free and duty paid operations.” RioGaleão Airport underwent a massive expansion, opening just weeks before the first guests began arriving for the Olympics. This offered a huge opportunity for Dufry; the company opened a number of new stores including duty free, duty paid – an area the company is targeting across the country with its new “Dufy Shopping” megastore concept – and a brand boutique area, with four new shops covering almost 900 square

Dufry Shopping is Dufry’s new duty paid mega store concept geared to the domestic traveler

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

Dufry’s new Destination Shop recreates the feel of Rio’s most popular tourist destinations and offers main local brands of casual and beachwear at competitive prices

meters for luxury brands such as Salvatore Ferragamo, Hugo Boss, Michael Kors and Polo Ralph Lauren. The company is also reassessing its Hudson space at the airport, to maximize the convenience concept. And there is more to come. “In May we announced the contract extension in Rio and São Paulo, securing the biggest contracts in the country, to 2023 for the duty free operations and 2021 for the duty paid,” says Fagundes. “We also have a new agreement to operate a ‘Destination Shop,’ over 600 square meters, located in the departure area of the remodeled Terminal 2.” The shop features thematic concepts designed to recreate the local atmosphere, with visuals of Rio’s most popular tourist spots, iconic beaches and seafront in patterns and textures in the floors and walls. “The shop presents a premium offer of the main

DUFRY BRAZIL

local brands of casual and beachwear, at competitive prices when compared with local high street.” The company has also been busy at Viracopos International Airport, São Paulo, opening nine duty paid shops, four brand boutiques, three specialized shops, a Dufry Shopping megastore and a Rio2016 kiosk. “We are also planning to introduce the Hudson concept in Viracopos, thus maximizing the duty paid potential in one of the main hubs in Brazil.” Dufry has also added shops in at least five smaller airports, which mainly serve the domestic market. “The incremental retail space added through direct negotiations with landlords will be focused in the rollout of our main duty paid concepts, Dufry Shopping and Hudson,” says Fagundes.

Retailer of the Olympics Dufry was the official retailer for the Olympics, opening 18 Rio2016 shops and three shops-in-shop. The first opened in May of 2015, and all remained open until the end of the Paralympics Games in September 2016. Dufry also had a dedicated Olympic area in all duty free, Dufry Shopping and Hudson stores, reaching approximately 50 points of sale. The company developed an integrated marketing campaign specific to the Olympics, with activations and promotions in partnership with the main airports, especially RioGaleao. Fagundes notes that having had the World Cup in Brazil was helpful for preparation, and World Duty Free also

offered wisdom after its experience with the London 2012 Olympics. Dufry had the opportunity to plan together with the Olympic Committee several key decisions toward the assortment and price positioning, and opening the first store over a year early was also helpful.

Economic difficulties Since bidding for the Olympics, Brazil has fallen into a deep economic crisis, which has lowered business performance throughout all regions and sectors. Fagundes says while getting through times like these requires greater discipline, opportunities continue to arise and the upswing will come. “The performance in Brazil has been recording an ongoing relative improvement quarter by quarter due to a softer BRL/USD. In the second quarter, the scenario for BRL currency showed an important improvement as the economic and political scenario began to stabilize. While it’s too early to analyze sales from the Olympic period, Fagundes says, the potential was there to see an upswing around the country and not just in the host city. “The event attracts foreign visitors, but also Brazilians from other states. Dufry is well positioned to capture this incremental flow not only in Rio, but also in most of the departing locations, through Hudson and Dufry Shopping.” Brazilians didn’t all attend the Olympics, of course, but according to Fagundes, most of them continued to travel. “The main message here is that, despite the crisis in Brazil and the FX issue affect-

ing our operations, the impact from the Olympics should be positive in the sense that we can have an upside potential from the incremental traffic during the period.”

The future is now Business carries on after the Olympics are over, and Dufry has its goals. “For our operations in Brazil, we are confident that we will keep up the gradual improvement we’ve seen over the past quarters due to a better performance of the BRL vs the USD, in addition to the positive prospects on the political and economical fronts. Going forward, after the conclusion of the main investment phase in the Brazilian airport structure, our focus will be on driving further productivity growth in the locations where we opened new stores or expanded existing ones, and to consolidate the new retail concepts recently introduced in the country. “We will continue to focus on driving organic growth globally, with a whole array of operational and marketing initiatives such as the refurbishment plan to refresh our stores, the brand plan to drive sales and to encourage customers to spend more.” While the idea of hosting big sporting events such as the Olympics can be divisive, Fagundes says it’s important to mention the benefits achieved for the country. “As was the case with the World Cup, the Olympics will definitely help to set Brazil as a solid tourist destination in the future, boosting passenger traffic in the local airports, not only internationally but also domestically.”

Dufry’s Rio2016 stores offered an extensive selection of branded items

Dufry was the official store of the Rio Olympics, with 18 Rio2016 shops, three shopsin-shop and dedicated areas in duty free, Hudson and Dufry Shopping stores

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

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LIFE AT ITS BEST

ASUTIL REVIEW

Step by step

hile attendance was down at ASUTIL’s 20th conference, held at the Sheraton Santiago Hotel & Convention Center in Santiago de Chile, Secretary General José Luis Donagaray is pleased with the turnout of 290, given the economic climate of the region, the number of acquisitions in the industry and the fact that the location was a little more difficult for some delegates to get to than the previous year’s location in Panama. The schedule this year was different than in years past, with the conference and networking sessions flipping on days one and two, in order to allow for the varied travel schedules of delegates. According to Donagaray, this change was very well received and the response to the event was positive, although Friday’s networking session was quiet. This is something the association will be considering for next year, he says.

Day one The conference on day one offered many familiar faces, although the President’s

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

address was made by ASUTIL’s new President, Dufry Brasil’s Gustavo Fagundes. He discussed Brazil’s economic downturn, saying that the industry must be “resilient,” always keeping an eye toward heading in the right direction. “Brazil is facing a very difficult situation,” Fagundes noted. “My approach is a business-oriented approach; we’re business people, we’re not here to pick a side in politics.” He noted that Brazil’s GDP in the first quarter of 2016 was one of the worst ever. That being said, however, both Fagundes during the conference and Donagaray in a recent interview said they see light on the horizon. After a virtual freefall versus the US dollar, the Brazilian Real has stabilized. Since ASUTIL in early June, the economy has shown modest but continuous improvement. In addition, in early September President Rousseff was impeached; an action that most business people in the region see as positive. Since ASUTIL, too, the Olympics were held in Rio. New construction leading up to the event created more than 30,000 square meters of new stores, and an additional 1 million people visited the region.

“Foreigners are more important to us today than ever,” Fagundes said. “Now we need to learn how to sell to them.” Other speakers the first day included Donagaray; Peter Mohn, CEO of m1ndset, who presented valuable statistics on the expected growth of travel in the region, how shoppers decide to purchase and the hot topic of Millennials; Past President Enrique Urioste CEO of Neutral Duty Free, who discussed what his company has been doing to keep moving during this very difficult economic time at the Brazil border; and the session concluded with Olga San Jacinto, Director of Google Latin America, who offered a glimpse into technological changes coming down the pipe. Wednesday night’s opening cocktail was hosted by Pernod Ricard, and coffee breaks throughout the event were sponsored by Americas Duty Free magazine and Godiva.

Day two Carlos Melconian, appointed President of Argentina’s National Bank in December of last year, began day two with a provoca-

ASUTIL REVIEW

tive question: Are we heading in the right direction? He then offered information that would help businesses to make decision that would keep their compasses leading them forward. Next Sandro Fernandes, COO, RIOGALEÃO Airport, discussed the airport’s reconstruction and preparation for the Olympics. Alongside him, Vivianne Nunnes, Commercial Director, Dufry Brasil, underscored the importance of enticing customers. Cyrille Beauviche, Commercial Director, Dufry LATAM, took the stage next to discuss new openings in the region, and used the new opening in Peru to illustrate the need for emotion in the stores. Guillermo D’Andrea, Marketing Professor, IAE Business School next told attendees that travelers seek more value from their duty free experience. “This world has changed, and so too has changed the relationship with the consumer.” The conference’s final speaker was Roberto Canessa, one of the 16 survivors of the infamous Uruguayan Air Force Flight 571, which crashed in the Andes mountains on October 13, 1972. His story was one of inspiration and perseverance in the face of almost insurmountable odds – a story that clearly moved attendees and one from which everyone in the audience was able to extract meaning, whether personally or professionally.

In closing Jose Luis Donagaray, Secretary General of ASUTIL, took the stage for the closing ceremony and presented this year’s lifetime achievement award to industry icon Teddy Taratuty, CEO of London Supply.

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

ASUTIL REVIEW

Rio de Janeiro was the city put forward as the location for next year’s event, but Donagaray will not confirm until the press conference in Cannes. He does express his conviction that slowly but surely, the region is recovering, and will do so by 2018. “As we spoke about in the conference, we just have to move step by step in the right direction,” he says.

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

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FDFA

BANNER YEAR A strong US dollar and a new government have made for a busy year for Canada land border stores and the FDFA, as Executive Director Laurie Karson explains by

WENDY MORLEY

Executive Director Laurie Karson says this year’s convention will offer some special experiences

This year’s FDFA convention is back in Toronto after a year in Vancouver. The theme this year is Canada - a celebration

Americas Duty Free: This has been the first year with a new government in Canada. Any developments? Laurie Karson: The new Liberal Government has certainly created a positive buzz in Ottawa in terms of establishing meetings and a fresh perspective on all key issues. Due to the election process, MPs started later than normal in terms of having offices established, so while the FDFA has met with at least a dozen new Liberal MPs to reiterate who we are as an industry, we hope to meet with many more in late 2016 and certainly throughout 2017. It is critical that our government officials and decision makers understand the economic importance of our duty free shops and the industry’s supplier network to the overall economy.

LK: Statistically we are about 6 to 7% higher than last year and much can be contributed to the US dollar.

ADF: How have numbers been at the border? LK: Numbers have been good. As an example, July sales stats show that Ontario continues to see double-digit increases since last year. We hope to see this positive trend continue.

ADF: The convention will be back in Toronto this year. What will be the focus? LK: Great question. We are going to focus on Canada and all things Canada – truly a celebration of the greatest country on earth. Delegates will experience not only a host of great fun evening events, both on Monday and Tuesday of the convention, but the gala will really focus on Canadian décor, food and overall experience.

ADF: How much has the high US dollar helped Canadian border stores?

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

ADF: How has the retail certification program progressed? How many people have been certified and how do the operators feel about the program? What are the next phases? LK: The certification program is still going well with over 45 employees and/or managers having participated in the program. We hope to continue to play up the core certification – Duty Free 101 – before embarking on other tailored learning programs. We encourage supplier members and their employees to take the course so they have a better understanding of the program as well.

ADF: Can you tell me about any planned events? LK: Well, as per usual, we will kick off the show with the Welcome Reception. This year with a Canadian theme. On Monday, the first night of the show, we have an amazing event hosted by JTI, for which we have rented out Toronto’s famous Horseshoe Tavern. Our very own Jeff Orson from PMA will perform alongside one of Canada’s funniest comics, Jennifer Grant. It’s a private and free event for our delegates. The second night, Tuesday, Proximo Spirits is hosting an incredible Rolling Stones Fun Night at Pacific Junction Hotel, where delegates will enjoy Jose Cuervo Cocktails with the theme of the Rolling Stones Flight 72 experience. It’s going to be an amazing show, with the pinnacle being the Wednesday night gala and post gala events. ADF: How will the delegate numbers compare to last year’s? LK: Everyone is signing up as expected – but there is room left should anyone like to join.

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UPDATE FROM IAADFS

IAADFS President Alberto “Pancho” Motta cuts the ribbon to open the trade show floor. Sadly, he passed just days later

Setting the stage Michael Payne, Executive Director of IAADFS, discusses the Duty Free Show of the Americas, the economy, and opportunities in the duty free industry by

WENDY MORLEY

Americas Duty Free: Can you please tell me the final figures for IAADFS 2016? How many delegates, how many booths, how many new exhibitors, floor space? Michael Payne: The total registration was 2422, total square footage was 66,382 and we had 178 exhibitors, of which 41 were new exhibitors. ADF: While the US and Caribbean did great in 2016, LATAM could not say the same. How did this affect the show? MP: We certainly experienced some challenges due to the economy and currency exchange issues, which impacted our buyer and supplier numbers. But it wasn’t just due to Latin America. Global companies are feeling economic pressure in Europe, Russia and other places. This spotty economic picture will likely continue into 2017.

Michael Payne, Executive Director of IAADFS, sees opportunity in every area of travel retail

ADF: How do you feel the new speaking events were received? MP: I think very well.

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

We will be expanding on them going forward. We definitely started a little too early but we knew that going in – we had already publicized the opening time for the Tradeshow and appointments had been made. But overall really good feedback. ADF: Any requests for changes to the schedule, dates, setup, location or other aspects of the event? What is your response to these requests? MP: We always receive suggestions on aspects of the trade show including location options, other dates, shorter hours, longer hours and the list goes on. We seriously evaluate and consider all the feedback and take steps to incorporate changes wherever it will improve the value people receive from participating. ADF: Will you be making any changes to next year’s event? MP: We are currently planning for next year and will probably have some changes to format and other areas but it’s a bit premature to spell that out. ADF: What about this year’s event elicited the most positive responses? MP: I would say the educational sessions and, depending on who you speak with, the business and social components.

ADF: Have you heard about how satisfied the exhibitors were with the number of buyers and with their ability to see them and have meetings? MP: Some exhibitors felt there were fewer buyers. Consolidations and the economy did have some impact but overall the number of buyers was very close to the previous year. I do think many left earlier than usual and the last day was light, so I think that added to the perception. ADF: What do you think are a few of the greatest challenges to duty free in the Americas right now? MP: No question the economy remains a challenge. More effective ways to use technology and the growing capability of passengers to price compare and question the value proposition presents challenges. Also, security issues and associated negative impact on dwell time and potential government obstacles on our business are areas to watch closely. ADF: What do you see happening in the LATAM region over the rest of 2016 and 2017? MP: Continued economic challenges, more infrastructure development in spite of that and a continued eye on the longterm benefits and opportunity that duty free/travel retail offers in the Americas. ADF: Where do you see most growth opportunities coming from over the next few years? MP: In my view, every sector: airport, cruise, border – all will provide growth. Nothing but opportunity. ADF: What do you think the industry as a whole needs to do to ensure success and continued growth? MP: Focus on growing passenger penetration rates. We barely touch the universe of travelers passing through airports who could be converted to customers. Continued infrastructure improvements and attractive, diverse product offerings with competitive pricing will encourage more spend.  ADF: Finally, IAADFS and the industry in general suffered a devastating loss this year, immediately after the show. Can you please tell me how Erasmo Orillac is doing in the new position? MP: The loss of Pancho was devastating on so many levels to so many people. He was taken way too soon and had such a positive impact on people’s lives. He was a great and close friend. We are fortunate to have Erasmo elected as Chairman by the Board. Erasmo brings an in-depth history and knowledge of the industry and region to his position and is doing an excellent job in his role as Chair in a difficult economic time for the region. It has not been easy personally, as he and Pancho were very close business associates and personal friends. Erasmo is committed to the IAADFS and has already initiated several activities designed to move the Association forward. We will benefit from his leadership. The Board has come together in a strong way on IAADFS activities so this is reassuring.

S TA N D M 4 1 Green Village

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

LANCÔME

Shaking up the codes of beauty

DFS Hawaii Galleria – Entrance Space DFS Hawaii Galleria – Lancôme Counter

to 35-year-olds, so-called millennials, today are marked both by the global financial crisis and the digital reinvention of the world. Françoise Lehmann, General Manager, Lancôme International explains how this “hybrid generation lives in an environment that celebrates the past – the return of retro, the resurgent enthusiasm for craftsmanship expertise, the explosion of DIY tutorials – and the ultra-modern: a common globalized culture, the growing instantaneity of information and emotions, galloping digitalization.” Lancôme is shaking up the conventions for this “in-between generation” by launching unprecedented products that seek to unlock the “inexhaustible energy of today’s women” and “break the rules of make-up thanks to its cocktail of innovations” as Lehmann leaves us to discover Lancôme millennial launches.

Meeting the skin concerns of the modern world

World-leading cosmetics brand Lancôme is eyeing today’s millennial generation with two major new products and unique animation concepts, seeking to tap into their hectic lifestyles 64

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

For this highly informed millennial generation, Lancôme is revolutionizing the conventions of moisturizer with the introduction of the new Énergie de Vie “Liquid Care” technology. Powerful and innovative, this star product meets the skin concerns of the modern world with an effective yet easy-to-use ritual, giving women a much-needed energy boost.

Énergie de Vie is an entirely reinvented skincare routine

a surprising biphasic formula pairing pigments with lip care oils, and a unique cushion applicator. The make-up result combines adjustable-intensity and vibrant sheer color with satin shine, in a super-soft and non-sticky texture. The Juicy Shaker texture fuses with lips on application, thanks to four complementary oils which offer lips a smooth and plumped-up look: peach kernel oil softens and nourishes; sweet almond oil leaves lips supple and restructured; cranberry oil is antioxidant, protective and restorative of skin’s protective barrier; and musk rose oil regenerates and soothes. Thanks to its original biphasic formula, Juicy Shaker combines comfort with the color impact of perfectly dosed pigments in many vibrant shades with an adjustable finish. A dispersant agent guarantees uniform pigment diffusion when the texture is shaken, for perfect color distribution on application. Dubbed unexpected and explosive, the Juicy Shaker ad campaign stars two millennial ambassadresses, Lupita Nyong’o and Lily Collins, who are captured in a moment of spontaneous laughter by photographers Mert Alas and Marcus Piggott.

“Shake Your Beauty” animation in the Americas

Juicy Shaker is a lip gloss line with an unprecedented shake it application

Énergie de Vie offers a simple and effective three-step routine for fresh and re-energized skin. First, the smoothing and plumping Pearly Lotion contains a myriad of translucent and evanescent pearls of multiple sizes. On the skin, the nourishing feel of oil is paired with the freshness of water, for a splash of energy. Second, the smoothing and glow-boosting “Liquid Care”, an all-in-one skincare, is designed to be as fresh as a lotion, as concentrated as a serum and as moisturizing as a cream. Thanks to energizing natural and active ingredients, this star product leaves skin fresh and radiant and delivers smoothing and plumping effects. Third, the overnight recovery Sleeping Mask is a repairing skincare product to be applied after a busy day or as an emergency treatment. Its texture breaks into water on the skin, lowering its temperature by 1.8C° for an intense feeling of freshness. Its formula helps to reinforce the skin’s natural barrier and maintain its optimal moisture levels.

Unprecedented shake it application In a second product designed for the millennial generation, Lancôme has invented Juicy Shaker, described as a rule-breaker designed to playfully shake up the codes of make-up thanks to its cocktail of innovations. Juicy Shaker features an unprecedented shake it application,

Lancôme Travel Retail Americas General Manager, Gianguido Bianco explains how the brand created a Big Bang concept called “Shake Your Beauty”, capable of presenting Énergie de Vie and Juicy Shaker on one creative and inviting stage. In his own words, Bianco describes the animation as “an incredibly clever and efficient design that allowed millennials to discover Lancôme in an unexpected way.” The Shake Your Beauty concept presents the new Lancôme experience through its “Sharing Table” retail element, the brand’s sense of modernity, and the invitation to be playful and generate unforgettable memories through exposure to products and color. Bianco explains how “millennials today demand products that actually work, therefore Lancôme has designated a central place in this animation for consumers to test and share. Consumers want to try before they buy, the reason why Lancôme is bringing products out in the open to allow customers to discover and play.” The animation kicked off with DFS during the month of August, and will continue to roll out in all Americas Duty Free regions, maximizing the summer moment to introduce these launches. In DFS America, the brand aimed to cater to predominant millennial Asian passengers, incorporating eye-catching elements and services provided by Lancôme Beauty Advisors: • In Hawaii, the event started with a Juice Bar at the store’s entrance, promoters to attract travelers, and a make-up specialist to introduce fresh make-up effects and new skincare routines to visitors. • In Los Angeles and San Francisco airports, the candies and color impact on Lancôme counters became a key attractive expression of this animation, coupled with itinerant trolleys full of Juicy Shaker visuals and color impact. Lancôme is ready to continue its leading success by offering the right products, in the right retail spirit and with the right “loud” messages – Bianco invites us to stay tuned for results as the industry “is shaken with Lancôme’s Énergie de Vie and Juicy Shaker”.

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

â&#x20AC;&#x201A;ESSENCE CORP.

Fragrant fancies Luxury beauty distributor Essence Corp. offers hottest new fragrances to spray on your skin this coming season 3 2

1 4

5 3. Dylan Blue by Versace: This fougere fragrance is encased in bright blue and gold bottle. The lines of the bottle are clean-cut with the iconic symbol of Versace, the Medusa. Once again, the allusion to the Mediterranean Sea and its culture is apparent 1. Montblanc Legend Spirit: This new fragrance for men reveals a more casual and unguarded aspect of the Montblanc Legend man. Inspired by all forms and shades of white, from snow to marble, the fresh, virile and intense fragrance is a woody aromatic 2. Coach the Fragrance: This fragrance embodies the Coach spirit, an all-American girl who is modern and authentic. The bottle design references Coachâ&#x20AC;&#x2122;s design codes. A leather hangtag dangles from the side, the signature turn lock handbag closure is reinvented as an atomizer and the horse and carriage motif is emblazoned on the glass

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

4. Missoni Eau de Toilette: This fresh and feminine fragrance comes in a glass bottle that reflects the precious design of the original edp. It is refreshed with warm and sunny colors in oranges and yellows. The golden band around the bottle recalls the woven threads of Missoni fabric 5. My Burberry Black: This rich amber-colored fragrance bottle is finished with an elevated horn-look lid and hand-tied black gabardine knot inspired by the Burberry trench coat. Top notes comprise jasmine flower; middle notes are candied roses and peach nectar; and base notes include amber patchouli

L’ORÉAL CONSUMER DIVISION

Infallible Matte Max is L’Oréal Paris’ first ever designer applicator lip pen to create a sculpted ombré look

Making it

happen Make-up is the promising growth category for the French beauty giant L’Oréal’s Consumer Division with its market-leading brands L’Oréal Paris and Maybelline

’Oréal Paris and Maybelline are the leading make-up brands in the world – and they are also growing ahead of market trend within the travel retail business. According to Emilie Poisson, L’Oréal Travel Retail Americas Consumer Division’s General Manager, make-up is a gamechanging category in travel retail and possibly the greatest source of growth for the years to come. In 2015, the total beauty travel retail market in the Americas decreased by 8.4% versus a year ago. During these challenging times, make-up as a category has been resilient and performed ahead of other beauty categories. While the fragrance category struggled a lot (down 11%), followed by skin care (down 2%), the make-up retail market in the Ameri-

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

Maybelline’s new travel retail exclusive “NEW YORK ESSENTIALS”, a stylish pouch, make-up novelties and bestsellers combined with insights about the hottest districts in town

cas resisted well at 0.8% down versus the year before (Source: Generation 2015). In the challenging environment of the Travel Retail Americas market, L’Oréal Paris and Maybelline have been successfully performing ahead of the beauty market. As Poisson explains: “This has to do with the fact that both are affordable, high quality on-trend brands that are the perfect offer for more price-sensitive consumers.” The consumer demands driving this growth vary both across and within markets, meaning there is no single, distinctive customer profile. For example, L’Oréal’s diverse brand portfolio has been developed to answer the needs of consumers of all ages, income levels, and nationalities. For L’Oréal Paris and Maybelline spe-

cifically, these brands are targeting midto lower-tier consumers that are a growing group in airports. However, wealthier people also buy the brands. Today, travelers are no longer only looking for luxury products, and traveling is becoming more accessible for less wealthy people who are seeking more affordable brands. With a variety of products and shades, L’Oréal Paris and Maybelline address different consumer needs, from the Brazilian consumers, looking for more daring colors and matte shades, to the Asian travelers, more present in North America and representing the fastest-growing group, looking for lipsticks in Nude shades and light colors. Millennials are also key for the L’Oréal Group, and in particular for L’Oréal Paris and Maybelline, says Poisson. Both

L’Oréal Paris has introduced the MAKEUP GENIUS, the first virtual app that applies make-up to your picture

L’Oréal Paris has launched four trendy travel exclusive THE LOOKS ON THE GO sets that make every woman a makeup designer, a true artist

brands respond to the latest make-up trends with the latest innovations. They are both active in digital and social media, such as Instagram and with bloggers. L’Oréal Paris has also introduced the first virtual make-up tester on the beauty market, the Make-up Genius. This simple smartphone application allows you to try different make-up looks and products and see them move with you in real time. Virtual make-up try-on has never been more real. Maybelline targets millennials as the affordable brand capturing New York’s energy, edge and style. The number one make-up brand in the world is completely reinventing itself with a fresh brand slogan, perfectly capturing the new energy that infuses the brand: “Make It Happen”. This new direction is driven by a strong consumer insight changing the world of beauty. Millennials nowadays aren’t content to just take life as it comes. They want to change things. And Maybelline gives them the tools and the confidence to MAKE IT – whatever IT might be – HAPPEN.

Meanwhile, L’Oréal Paris, as the number one beauty brand, is committed to bringing women true value in quality, performance, satisfaction, trust and service. As the second-ranked make-up brand in the world after Maybelline, L’Oréal Paris provides more than just colors – it is about confidence and passion. L’Oréal Paris Makeup Designer aims to offer the widest color ranges in all finishes and effects in order to provide a total make-up look with color coordination for each woman. In 2017, L’Oréal Paris Makeup Designer will elevate itself with more premium packs and shades of its staple Color Riche Matte collection, part of the Color Riche franchise, the worldwide leader in lipstick with over 30 years of color authority. The brand will also recruit new and younger consumers with its Infaillible Paint innovation – super-charged pigments for the most vibrant opaque colors, at the heart of the current trends. Innovation in travel retail is a key focus for the French beauty group. Travel exclusive novelties include L’Oréal Paris

LOOKS ON THE GO sets for a complete, high-end offer of make-up designer looks, launched in June 2016. The four trendy on-the-go looks – Rock Noir, Nude Elegance, Red Carpet, and Sculpt Art – each consist of three products nestled in an elegant pouch. For Maybelline, the travel retail exclusive collection “NEW YORK ESSENTIALS”, consisting of six pouches, was launched in June 2016. The stylish pouches embody the new energy that infuses the brand – “MAKE IT HAPPEN” – by offering make-up novelties and bestsellers combined with insights about the hottest districts in New York City, at a very affordable price. With the right make-up portfolio mix of classics, innovation and travel exclusive offers, Poisson is confident that the L’Oréal Consumer Product Division will continue to successfully tackle the economic challenges within the Americas region and build a strong foundation for growth for its group.

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

YVES SAINT LAURENT

YSL ROCKS

in Travel Retail Americas!

The beat of YSL Beauty pulses throughout travel retail Americas, as the edgy Parisian brand achieves stratospheric growth in the region’s Asiandriven points of sale 70

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

SL Beauty, the young, edgy, luxury beauty brand, is undeniably rocking the beauty industry. The self-acclaimed, “most subversive Parisian couture brand” lives and breathes the motto: “No compromise, your own rules, now.” YSL Beauty aims to write its own rules, accelerating its two-year, double-digit

worldwide growth. The brand recorded an +18% sales upswing in 2015 and has already reached +20% for the year to June 2016. From Paris to Hong Kong via Los Angeles, YSL Beauty’s success is being celebrated around the globe. The sales breakdown for the year to June 2016 is as follows. In Europe, the brand continues to rank among the top 10

beauty brands in strong markets such as France, the UK and Spain. YSL continues to soar in Asia’s dynamic market, growing at +63%. In North America, a continent that directly impacts the momentum of the brand in travel retail Americas, YSL Beauty is accelerating at +21% in the year to June in the United States and +54% in the year to May in Canada. The brand recorded an impressive 31% sales surge in the travel retail channel at the closing of the first semester. YSL Beauty’s Travel Retail Americas team is also conquering new rankings, as the brand has grown two times faster than the market in the last two years. What drives this outstanding performance? For YSL Beauty, the answer is twofold. Both fragrances and cosmetics contribute to these impressive figures. In travel retail Americas, YSL Beauty has embraced its daring heritage and injected it with a dose of rock and roll to tell the story of who the YSL Woman is today. In 2015, the brand launched its successful, addictive coffee floral fragrance, Black Opium. Dubbed a force to be reckoned with both worldwide and in travel retail Americas, it instantly became the number one YSL fragrance in key retailers, such as Dufry Argentina. This year, the brand continues to build its feminine portfolio with the 2016 launch of Mon Paris, an illuminating yet dark, modern chypre set to hit stores in travel retail Americas this fall, exuding notes of warm patchouli and the datura flower. The YSL woman in the advertising campaign is living for the moment and wildly in love. Mon Paris has already gained worldwide momentum, and has even tested well with Asian passengers, who have a great appreciation for both

the juice and the story, according to the company. Turning to YSL make-up, the category grew 12 points above the market in the year to June 2016 in travel retail Americas – with Asian-driven points of sale booming at +44% versus a market of -2%. The lip category is “exploding” at +53% in the year to June, says the firm. Rouge Volupte Shine, the brand’s most recent launch and number one make-up franchise in all of Japan, is growing at +274% in travel retail Americas’ Asian POS. So what is the key to YSL Beauty’s chart-topping success in travel retail Americas? The brand attributes much of the success to one single factor: a fluid customer journey from departure to destination and back. The journey begins in Asia, where YSL Beauty is one of the hottest must-have brands for make-up lovers. Becoming the second largest growth contributor to the brand’s worldwide success, Japan stacks double-digit growth year after year – this semester being no different at +52% in the year to June. Just three years after the brand was launched In China, YSL is growing at +124% in the same period. China has already become the fifth country in growth contribution and is helping to drive YSL’s youth recruitment. Continuing the momentum, YSL Beauty is set to open 20 new doors in China in 2016. In the vital, trend-setting country of South Korea, YSL Beauty is the number one beauty brand in sales per door, recording a strong +92% growth in the year to June. Popular destinations such as the hip California cities of Los Angeles and San Francisco, all the way to Hawaii, have become especially strategic for the growing brand due to its passenger profile.

Rouge Volupte Shine is the brand’s most recent launch and number one makeup franchise in all of Japan

With consumer centricity at its core, YSL Beauty in travel retail Americas emulates the same excellent customer service, aligns strategic product assortments, and mirrors Asia’s launch calendar in order to provide a seamless customer journey. From bricks-and-mortar to cyberspace, the brand’s initiatives in-store and through digital and social media platforms aim to reach the right customers, at the right moment, with the right content. Meaningful interaction at points of sale across travel retail Americas extends to all aspects of the customer experience, from service to engagement. Animations during key festivities and travel peaks are also vital when discovering the YSL brand, the company notes. YSL Beauty has successfully integrated personalization through animation partnerships with Google Glass technology and engraving personalization, providing customers with personalized make-up tutorials to recreate at home, and engraved gifts to bring back to their loved ones. So what’s next for YSL Beauty in the region? Yves Saint Laurent Beauty General Manager of Travel Retail Americas, Jose Luis Lacunza, comments: “We need to keep up the incredible momentum we started two years ago. The brand is so hot; the time to jump in is now or never. It’s time to accelerate our growth and our roll-out plan.” Lacunza confirmed the brand would triple the number of Asian-driven POS throughout travel retail Americas in the next three years. “YSL Beauty is here to rock, and the beat’s not dropping anytime soon,” concludes the company.

Yves Saint Laurent builds its feminine portfolio with the launch of Mon Paris www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

ESTÉE LAUDER

force with An empowering

to be reckoned

Clinique has partnered with the award-winning American actress and philanthropist Gina Rodriguez for the brand’s new Difference Makers campaign. Here, she tells her empowering story

American actress Gina Rodriguez partners with Clinique for new Difference Makers campaign

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

stée Lauder-owned beauty brand Clinique has unveiled its new Clinique Difference Makers campaign. The campaign’s mission is to inspire confidence in women and empower them to make a difference in the world, either in their community or in their personal life, through the storytelling of six women from around the world: Gina Rodriguez, Erendira Ibarra, Victoria Pendleton, Jessica Nkosi, Nazan Eckes, and Ning Chang. Together with Clinique, these women, who are all making a difference in their community, will share their personal message of change, helping to champion others to do the same. These women are inspirations in their own right and prove that one change really can make a difference. Here, Americas Duty Free highlights one of the campaign’s Difference Makers – award-winning Hispanic actress Gina Rodriguez, a staunch advocate for education, who shares her philosophy of life and the reasons why she joined the campaign. Rodriguez’ life mantra is the driving force behind her success, not only in her illustrious career, but in her personal life as well. “Today is going to be a great day. I can and I will.” Her father had Rodriguez repeat those words to herself in the mirror before school. Rodriguez’ family knew that education would be a reckoning force against all the barriers that would stand in her way. Rodriguez understands first-hand how education provides children with the tools to dream big and break barriers. Growing up in Chicago, she witnessed the detrimental effect the vicious cycle of poverty can have on children, and with the guidance of her family, learned that the only way to break through it is with education. Despite her red carpet accolades, Rodriguez utilizes her celebrity to make an impact in low-income communities by promoting education. She believes that her education broke down barriers, opening the path for her to achieve success, and knows that education leads to empowerment. She feels that education inspires a sense of confidence and self-worth, which frees youth from the illusion of invisible shackles placed upon them. As a member of the Board of Directors for the Hispanic Scholarship Fund, Rodriguez wants children to run into their lives with full force, and not away from it. Rodriguez continues to make a difference by empowering those who come from less privileged backgrounds to look to education as a key to success. “A role model, a leader, a philanthropist, and an empowering force to be reckoned with, Gina Rodriguez is a true Difference Maker,” said Clinique of its latest campaign star.

how to seek out financial aid, so we were never limited because of financial reasons. This allowed us all to go to our desired universities. I am very fond of the work HSF does for many communities and wanted to be a part of that change. It was a true honor when they asked me to join the board.” Turning to her partnership with Clinique, Rodriguez says Clinique All About Eyes is the one product that instantly makes her feel confident, saying it makes her “feel natural with a sweet boost”. So how did Rodriguez first learn about the brand? “Stored in my parents’ bathroom was the classic Clinique soap and Super Defense daily moisturizer. My mother never wore much make-up and she lived by these two products so much that they became the vision of my mother in my head. My mother preached about being natural, and in my eyes, Clinique was always such an elegant brand. I just loved it.” Make-up is clearly important to Rodriguez. “In my acting career, make-up allows me to transform. Whether from young to old, time period, or into a creature, or just my general appearance, make-up is vital. In my everyday life, make-up adds to who I am; however, it does not define me. Make-up allows me to creatively express myself. It is a tool for fun and adventure.” Rodriguez believes that for every woman, the role of cosmetics in her life changes. “Some of us love to use the smallest amount of make-up, and others love to explore the different range of what cosmetics can be creatively.” The star of the hit series “Jane the Virgin” concludes: “Great skin and make-up have a positive impact every day. It feels great to wake up in the morning and love what I see.”

A dream come true When Clinique approached Rodriguez to feature in the campaign, the actress said the “stars were perfectly aligned”. She said: “Clinique wants to tell a story. They want to make a difference... Clinique wants to leave a blueprint in history that changes the way we think, act, and participate in life.” She adds: “This project excited me to my core because this was my opportunity to give back a part of me. I am able to discuss an issue that lives close to my heart. It seemed like a dream come true.” Describing the path that led her to work with the Hispanic Scholarship Fund, she said: “My sisters and I were all recipients of the Hispanic Scholarship Fund at some point during our education. In turn, my parents made us aware of the organization. What was extremely helpful was the fact that my parents knew

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

RITUALS

The sweet smell

of success

Rituals is all action as it targets the US market, where it sees huge potential for the fast-expanding beauty brand by

“T

he USA is by far the biggest opportunity for us,” says Neil Ebbutt, Director Wholesale, Rituals Cosmetics, who is spearheading the beauty brand’s travel retail expansion in this huge market. “Our presence in the domestic market there is really helping our brand awareness. In September we opened a stand-alone store on New York’s Fifth Avenue and another in Grand Central Station. In addition, we have a nationwide distribution with Barneys department stores and Cos skincare stores, and an ongoing dialogue with a number of high-profile cosmetics retailers, to further increase the distribution and awareness on the back of an excellent performance in Europe, the Middle East and Africa.” In addition, Ebbutt notes that Radisson hotels also carry the Rituals amenity products globally, which includes 121 hotels in North and South America. He says this kind of high-profile presence significantly enhances interest in Rituals within the US travel retail market. The European travel retail channel has been the brand’s strongest region for growth over the past 12 months, thanks to “huge support” from customers such as Dufry, World Duty Free and Gebr Heinemann, as well as some strong local partners like Kappe and IDF. Now, Ebbutt’s attention is turning to the Middle East and Africa for a distribution boost. “We are starting to look harder at growing our distribution in the Middle East and North Africa travel retail markets. We recently opened a stand-alone store in the Mall of the Emirates in Dubai and Marina Mall in Abu Dhabi, which has boosted our brand profile in the UAE. We have a distributor there now, so we are in a position to deliver against our ambitions for this region.”

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

HIBAH NOOR

Rituals is already present in all travel retail channels, and one area for growth is with the cruise ship sector. Harding Retail has been a very important customer in this channel.

Travel retail exclusives essential to portfolio The defining rationale behind Rituals products is to transform everyday personal grooming and homecare routines into meaningful rituals. This means that the brand has an almost universal appeal to both men and women, explains Ebbutt. The core customers are mainly women in the 25 to 45 year age bracket, but men are becoming increasingly important customers, particularly for its gift, shaving and skincare products. Travel retail exclusives are essential skus in the product portfolio, notes Ebbutt. In spring this year the company launched seven product packs exclusively for travel retail. “They have done exceptionally well, far exceeding our expectations,” he enthuses. “I am sure this is partly to do with the fact that the products we offered were not just exclusive, but also highly relevant to travelers because they focus on skin and hand care, which long haul travel does have a huge effect on.” Ebbutt believes that the other big factor behind the success of these products is the fact that the company first conducted extensive social media-driven research, asking Rituals users what they’d like to find if it were to put together a collection for them when traveling or on holiday. When it comes to retailing, the strategy is essentially a dual one, says Ebbutt. The firm aims to be both a wholesale supplier for shop-in-shop retail through the major duty and tax free concession operators and also has stand-alone Rituals stores in airports operated in partnership with these same companies. Rituals currently has just over 120 shop-in-shops in airports

Rituals is already present in all travel retail channels, and one area for growth is with the cruise ship sector

worldwide. The most recent began trading in September at World Duty Free’s store in London Gatwick South Terminal. The five airport standalone shops include Amsterdam Schiphol, London Stansted and Zurich and two airport spas, with another three in the pipeline before the end of 2016. “These stores perform exceptionally well and, of course, the extra space means we can offer a very much wider range from our product portfolio,” enthuses Ebbutt. Turning to how Rituals appeals to the vitally important millennial consumer, Ebbutt is clear. “I think we got there first with them. Millennials are famously more concerned with lifestyle and well-being and less interested in acquiring things as opposed to having experiences. Rituals’ entire product philosophy has

always spoken to that kind of motivation, and while we don’t target millennials overtly, we know from our own customer analysis that our products appeal to them.” Rituals’ travel retail best-sellers have been the new Travel Retail Exclusives, launched in April 2016. Beyond these seven new skus, the brand performs strongly in four complementary product categories on the duty free perfumes and cosmetics floor: bath, body, home and gift. As it looks ahead to the TFWA World Exhibition in Cannes, the company’s main focus will be its Ritual of Sakura range, which was relaunched in spring 2016, and on its Home Collection, spanning products such as fragrance sticks and scented candles in elegant glass jars.

The European travel retail channel has been the brand’s strongest region for growth over the past 12 months, thanks to “huge support” from customers such as Dufry, World Duty Free and Gebr Heinemann

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

ARTCO GROUP

Artco Group appeals to consumer senses by

JAS RYAT

La Parfumerie in the Bahamas offers a luxury boutique feel for shoppers

Miami-based store planning company Artco Group explains how vital it is to appeal to the customer’s senses to make shopping a more enjoyable and tangible experience

tore planning for the duty free industry is ever-evolving to meet client and consumer needs, according to Karen Estrada, Director of Luxury Goods at Artco Group. Appealing to the senses in-store has put the Miami-based store planning specialist at the forefront of the industry. The company creates the concept the client has in mind by researching every aspect of the project. “We are the store planner, meaning that we study the product, we study the location, we study the space. We do not charge for this service and we study all the components of their budget. We put together a store that makes sense for the consumer and the store owner,” Estrada exclusively tells Americas Duty Free. Artco Group manufactures custom woodwork and store fixtures. The company consists of experts from a variety of backgrounds who work together to provide cost-effective, quality service and craftsmanship. Estrada helps clients streamline their

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

boutiques to make sure the customer has the full experience. She believes that appealing to the customer’s senses intuitively makes shopping a more enjoyable and tangible experience. For example, Estrada has used the sense of smell to appeal to the consumer’s subconscious mind. “By incorporating smell, the consumer feels relaxed and has more of an inviting feel when entering the store,” she says. Artco uses new materials that give a pleasant look and touch. A lot of clients are switching to materials like laminate that give a wood-finish look, but are made

of plastic. This ensures that product will last up to 10 years. Choosing the right paint also helps create the mood the shop is trying to achieve, she adds. According to Estrada, the duty free industry changes every three years. With 13 years of experience, Estrada has learned to navigate through the evolving trends. “By engaging the consumer’s senses, they are more likely to make decisions based on emotions than on budget. This will create more impulse purchases and will have them coming back for more, thus creating more business for my clients,” she concludes.

Karen Estrada, Director of Luxury Goods at Artco Group, demonstrates how colors can enhance the consumer’s shopping experience

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EDITOR’S CHOICE

Travelers’ delights Spring into the new season with a selection of the best and most luxurious treats to lift your mood, as chosen by our Associate Editor by

JAS RYAT

2 4

1. Old Pulteney 1990 single cask: Old Pulteney Single Malt Scotch Whisky has unveiled Old Pulteney 1990 single cask. Bottled in 70cl at 58.9% abv, this liquid is drawn from a single second fill exbourbon cask (no 441), which was laid down to mature in 1990 2. Braun Silk-Expert IPL: Silk-Expert IPL offers an alternative to surface shaving and root hair removal. Silk-Expert is an energy-based hair removal method that uses intense pulsed light (IPL) technology that emits gentle pulses of light beneath the surface of the skin. It has been designed for easy use even across hard to reach areas

5. Jelly Belly Candy Company Super Hero Gift Boxes: The Jelly Belly Super Hero Collection expands to include The Flash and Aquaman together on the Justice League 5-Flavor Gift Box, shipping in 12-count cases. New packaging captures the excitement of fans throughout the year

3. Neuhaus Belgian Chocolate Moments collection: This Neuhaus collection includes the smooth classic truffle that comes in elegant packaging. These colorful, square boxes are the perfect small premium gift containing 150g of chocolate

6. Tea Forté Teas From The Heart: This selection of soothing teas is suitable for any time of day. Each tea is a blend of aromatic flowers, fruits, herbs and leaves, and comes in a heart-shaped box, the company’s best-selling packaging

4. Godiva Anniversary Collection Truffles: To celebrate Godiva’s 90th birthday, the Anniversary Collection Truffles is a culinary journey through both new and traditional tastes and textures, crafted to surprise and delight. Created by Chef Chocolatier Ilse Wilmots, the collection features classic, mousse and multi-texture truffle pieces

7. The Gourmet Nut Co: This range of flavored cashew nuts is hand roasted using natural flavors and preservatives. They can be enjoyed in baked goods, salads or on their own with a cheese platter. Available in 135g bags, the cashews feature flavors like Southern Style BBQ and are ideal for snacking on-the-go

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

14 13 10

8. Radley SS17 Travel Exclusive collection: This new handbag collection consists of Radley’s nostalgic Paper Trail print, looking back at lazy days and carefree British summers; a delightful spotty summer print; and even Radley’s signature dog has been given a spotty makeover as an oversized bag charm 9. Alpina Seastrong Diver Heritage: This highly regarded diving watch is back in the Alpina Collection. Admirers of the retro look will go for the traditional light-dark contrast design. Alpina is known for luxury sport watches that operate with precision and reliability in the most demanding sporting environments 10. Go Travel: The travel accessories specialist introduces its updated travel adapter range. From two-pin European Shucko plugs to three-pin alternatives, the range features polycarbonate casing that is thermal-resistant and withstands temperatures to 125°C. The improved design prevents misuse and increased protection for users

12. Aigner cross-body bag: This new It bag is inspired by the shape of vintage saddle bags. The cross-body style features delicate and modern elements in light gold, and its small size makes it a universal bag that is easy to carry. It is available in taupe and black colors 13. Furla Travel Retail Exclusive bag: Bags become more functional than ever with softer and lighter materials as the Furla Spring/Summer 2017 collection takes a journey to distant lands, inspired by Arabian architecture, tribal prints, hot desert sun, lush country floral colors and wild animal coats 14. Aeon Jewellery: Aeon Jewellery launches its new collection to meet the layering and stacking demand. The new collection focuses on a whimsical assortment of sweet charm necklaces and bracelets, all aiming to express love, luck and guidance to those that wear them

11. Dooley’s Liquorice: Dooley’s presents a subtle blend of premium vodka, which introduces a luxurious new flavor sensation of Dutch cream and superior Belgian toffee with a hint of refreshing liquorice www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

DUC D’O

On a mission

to stand out Now owned by a major chocolate producer, Belgian truffle specialist Chocolaterie Duc d’O is set to go places in travel retail

Duc d’ O launched new packaging for its chocolates at the TFWA WE in Cannes last year

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

hocolaterie Duc d’O, the world’s biggest manufacturer of flaked truffle chocolates, has an exciting future ahead of it as part of a large confectionery group. Following its acquisition by the Baronie Group at the end of 2014, Duc d’O launched new packaging at the TFWA World Exhibition in October 2015 to enhance the products’ stand-out on the shelves. The packaging design centers on the unique characteristics of the truffle: each truffle is rustic, irregular, and rough in appearance, and this translates into a wooden touch and feel to evoke the authenticity and craftsmanship behind the product. The packs are now color coded, so that the consumer can readily identify the product range. They also feature bigger, clearer visuals, and importantly, they emphasize the brand’s proud Belgian roots. The company does a lot of cross promotions and cross merchandizing, and tries to create different user occasions to boost the attraction of the product. For example, the white chocolate truffles with strawberries can be enjoyed with a glass of Champagne. This type of promotion has been staged with different travel retail operators “We are trying to group the products together,” explains Global Travel Retail Manager Erik De Troyer. “Our dark chocolate goes extremely well with Burgundy or a glass of Merlot, a very robust, strong wine, but also with Cognac and brandy. So we’re looking at a lot of cross promotions and merchandizing activities to get the message across to people.” The product range targets affordable

luxury gifting. A bag of truffles, depending upon the market, retails at US$14, and a 200g box is priced at about US$12, which is designed to sit competitively alongside other premium brands. Duc d’O wants to bring something special to travel retail with its artisanal truffles. “We have an original product, and this is also what we want to bring to travel retail,” says De Troyer. “I think it’s important when passengers come into the airport that they can find excitement, activities, that they can taste and discover new things, and then traveling becomes a rich experience that is to the benefit of the travel retail industry. Of course you need to have the big must-have brands, but you need to keep space for niche and special brands to bring excitement and novelty to the category. That’s why at Singapore Changi Airport and other airports we have created wooden fixtures – a storeready fixture that has a wooden touch and feel about it, with nice product visuals that are appealing to the passengers. This works, because it brings something new and exciting to the confectionery category, and also to the overall travel experience.” Following the pack re-launch in

Cannes, the company organized sampling activities at airports to boost brand awareness. “It was extremely successful. With every activity at key airports we saw quite strong uplifts in sales. For example, with Heinemann at Frankfurt Airport, we had big tables dressed with the look and feel of Duc d’O, which were highly visible outside the normal fixtures in the confectionery category. We had a person there doing tastings and activities, putting the brand message across.” The company’s strategy as a small brand is to be in the key international airports with many Asian passengers, who are big purchasers of the brand. The products are also popular with Russian travelers, and the brand performs well in Northern Europe. Travel retail makes up 25% of the company’s business. Europe is still the most important region, and it works with Heinemann and Belgian Sky Shops, as well as Schiphol Airport Retail, WDFG, and Dufry. In Asia, where the brand has been well-established for the last decade in locations such as Changi, Seoul and Hong Kong, the products are presented in a very qualitative way. In the Middle East the brand is listed at Dubai Duty

Free, and in the Americas it has a border shop presence with the likes of Shopping China, Neutral, and Monalisa. Asia remains one of its key, strategic markets, not only for Duc d’O but also because the brand is part of the Baronie Group, one of the top three chocolate producers in Europe. The group has 11 factories, €650 million (US$739 million) turnover, and a vast portfolio of brands and products. Thanks to the group’s industrial might, Duc d’O is set to branch into new segments. Today, gifting is the brand’s priority, but the wider group boasts many snacking, sharing, and self-consumption products, so the next step for Duc d’O is to bring other consumer moments to the range, while keeping the focus on gifting. “If you look at the big fixtures we have in Asia, we have a lot of room to bring variety to the range,” says De Troyer. “By doing so we will be widening the consumer profile of our brand. Today it’s adult-driven, it’s people who really appreciate high quality products. But we also want to attract a younger consumer, and I think by bringing these new concepts to market, this will definitely help to increase awareness and to reach a wider consumer profile.”

Duc d’O POS units in Kuala Lumpur International Airport, Malaysia

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CONFECTIONERY NEWS

PVM to make mouths water in Cannes Perfetti Van Melle (PVM) has added a selection of new sweets, mints and gum to its highly regarded portfolio of sugar confectionery, which it will be showing at the upcoming TFWA World Exhibition & Conference. New and notable is the Mini Mentos Passport Kit that consists of a ‘real’ kids passport with a contact page, games and drawings inside, two stamps, three crayons, a sheet filled with travel themed stickers, and; of course, candy: seven rolls of Mini Mentos in the flavors cola, orange, lemon, and strawberry. Also new is the Chupa Chups Treasury Box, comprising a treasure chest containing 10 fruity lollipops as well as a treasure map with games on the back. Children can have great fun hunting the treasure, refilling the chest and hiding it again. Made especially for girls is the Toiletry Bag, which is not only a pleasure to look at, but also contains a wonderful item: a colorful hair extension that makes for a unique hairstyle. The package

consists of a Trolls decorated toiletry bag, a pink hair extension, along with12 Chupa Chups mini lollipops. Perfect for travel retail is the Chupa Chups Trolls Tin Gift Pack, and its beautiful design is as attractive as its content. Available in three eye-catching designs and filled with eight fruity lollipops, kids will want to collect them all. For Mentos Choco, each jumbo roll contains six endlessly tasty Mentos Choco rolls. An exceptional addition to the existing flavors of Mentos Jumbo Roll. A chewing gum made with a natural green tea liquid filling, the unique composition of the new Mentos gum flavors allows for a true taste sensation over and over again. Available in three new flavors: Pure Fresh Mint Euca, Pure Fresh Spearmint, and Pure White Sweet Mint, each is packaged in quantities of 45 pieces. With these flavors we complete the assortment to a total of 6 flavors to meet the travelers need for immediate freshness.

Each jumbo roll contains six endlessly tasty Mentos Choco rolls

Lindt to celebrate summer in Cannes with fresh Lindor flavor Lindt & Sprüngli will debut a limited-edition Lindor Mango & Cream Limited Summer Edition flavor exclusively in the travel retail channel at the TFWA World Exhibition in Cannes (Stand number: Marine Village R5 and R7). Peter Zehnder, head of Lindt & Sprüngli’s global duty free division, said: “This new flavor, of delicious white chocolate encasing smooth melting mango and cream is truly stunning, and offers chocolate lovers a divine taste of tropical paradise. Mango is very much a flavor of the moment, and mango and cream is the perfect complement to the other flavors.” Lindor Mango & Cream will feature in an eye-catching summery yellow limited-edition 387g tube. The product will be promoted via the Lindor Flavour Festival marketing initiative at various outlets. This will include bespoke POS communication and live sampling of the new variety at airports around the globe. Zehnder said that Lindor’s limited editions had been best-sellers worldwide, generating sales growth in double digits. In 2016, a further boost to sales was achieved by an international promotional program called Flavour Festival which was launched to answer consumers’ calls for variety, and to highlight the breadth of flavors. Attention-grabbing ‘flavor pillars’, displaying a colorful tower of Lindor flavors and other promotional elements, underpinned the success of the promotion. These included a gwp mix-and-match bag, which allowed consumers to carry home their own selection of three tubes, paired with an attractive introductory price offer. Zehnder continued: “This new limited edition features another innovative and on-trend flavor and will add another level of excitement to the Lindor experience. We are certain it will prove equally

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

as popular as our previous travel retail exclusives, and will boost sales of this much-loved best-seller.” The new limited edition will be available from February 2017.

Lindor Mango & Cream is a limited-edition summer product consisting of white chocolate encasing smooth, on-trend mango and cream (Photo credit: Chocoladefabriken Lindt & Sprüngli)

Ricola gears up for travel retail growth and targets market gap Swiss herb confectionery specialist Ricola will be introducing at TFWA World Exhibition three new skus that address consumer requests for smaller pack sizes for individual consumption during travel (stand number: Mediterranean Village N15). All three products are exclusive to travel retail. Ricola, which has placed a new focus on travel retail over the past two years, offers the confectionery category a unique product portfolio, with its new launches filling a gap in the marketplace, according to Andreas Reckart, Ricola Head of Travel Retail and Middle East. “Our USP is that Ricola is not just another sugar confectionery brand,” he said. “Ricola has built its reputation as the world’s leading supplier of herb drops and candy, which we are positioning as a Herbal Travel Essential, perfect for soothing travelers’ voice- and throat-related issues caused by dry cabin air, air conditioning, climate changes, illness, etc.” To date, Ricola’s travel retail offer has followed the standard pattern of gifting and sharing products, but extensive research revealed an untapped niche, as Reckart explained. “Consumers told us that

they like to purchase Ricola in travel retail to take with them and use immediately. This made us realize that Ricola products follow a different dynamic than other confectionery brands; we are different and we need to capitalize on this.” The result is three new products in smaller pack sizes that are totally exclusive to travel retail. “Not only do they address this important immediate need from the consumer, they also meet the clear demand from travelers for products which are exclusive to the channel.” While details on the new lines are not yet available, Reckart confirmed that they would reflect the company decision to move away from using domestic packaging in travel retail.

Dedicated spaces (Hamad International Airport pictured) in the brand’s signature red color have been set up to encourage people to engage in four themed benches, where passengers can take a break

KitKat breaks global airport campaign Nestlé International Travel Retail has launched its 2016 global KitKat campaign “However you break, share it” in celebration of the diverse people who take a break around the world. The global Celebrate the Breakers campaign is running in selected airports and will roll out throughout the year to over 50 locations worldwide, including Rio, Paris, Doha, and Singapore. Dedicated spaces in the brand’s signature red color have been set up to encourage people to engage in four themed benches, where passengers can take a break. A Social Sharing Break bench is equipped with a whiteboard for personalized messages; a soft Relaxing Break bench features a footrest; a Music Break bench incorporates piano key seats; and a Sports Break bench comes complete with football and net. Travelers are encouraged to capture their airport break moment with a KitKat selfie stick, available upon purchase, and share their experience with family and friends on social media using the #mybreak hashtag. Stewart Dryburgh, Nestlé International Travel Retail General Manager, explained: “KitKat is a brand that creates natural, engaging and immersive brand activations that benefit everyone. Shoppers receive a unique experience, retailers gain increased foot fall and conversion rates, and KitKat strengthens its fanbase by being part of positive, break-related experiences. That’s why we constantly strive to keep our concepts innovative with shopper engagement at the heart.”

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NEUHAUS

The Belgian

connection by

CLAIRE MALCOLM

The gourmet collection is already selling well in Asia, as well as Europe and the US

In 2015, Neuhaus celebrated the life and works of another renowned Belgian, the artist René Magritte

ith 22 window collections released every year, premium chocolate company Neuhaus has a ganache, praline or gift for every occasion. “Innovation is a major part of our brand DNA, but for travel retail we obviously can’t showcase the full extent of what we do, so innovative airport exclusives are that give a new experience to customers are extremely important and our new Flavours of the World collection does just that,” says Philip Geeraert, Director International Sales, Neuhaus. “Our maître chocolatier has shared his own travel impressions and played with different ingredients from around the world to create a unique collection in which he has incorporated Belgian speculoos biscuits, Canadian maple syrup, jasmine from India, Japanese matcha and vanilla and banana from Madagascar. It’s a great way to discover our gourmet flavours and is already doing very well already in Asia, as well as Europe and the US,” he adds. This level of innovation is crucial to maintaining a competitive edge in a well-populated marketplace, and Geeraert believes this is key to retaining existing customers as well as winning new ones. It’s been a positive last 12 months for the company, as he explains: “We’ve seen fantastic results in the US, had a great year in Europe and then more mixed results in Asia. We also had a fantastic

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

With 22 window collections released every year, premium chocolate company Neuhaus has a ganache, praline or gift for every occasion

Orlando fair this year, the best in 10 years of participation. “As we all know, some airports come with their own challenges while others are driving the category, but overall we saw positive growth last year and we expect a good 2016.” In order to accelerate this growth, innovation comes into play yet again, with Geeraert identifying localisation as one trend with the potential to either positively influence or potentially negatively impact development. “Besides global brands, travelers are starting to buy more local products. We are seeing this impact in terms of shelf space, and there in also growth in the functional health products segment, in some Asian airports, which is a new category with strong performance,” he says. “On the plus side, the total retail space in airports is growing and, specific to the traveling consumer, we have also refreshed our souvenir destination collection, which we have made more colorful with added impact, whilst still elegant. And in the markets where we have launched, we are seeing a good response,” he adds. A fun side of the Neuhaus portfolio is storytelling through its Belgian connection. Says Geeraert: “So we have our Smurfs gift boxes, for example, and we have also worked with Tintin, another great Belgian character.” He says that these collections appeal to

a different consumer, who collects or likes to secretly relive their childhood. In 2015, Neuhaus celebrated the life and works of another renowned Belgian – René Magritte - to tie in with the 50th anniversary of his passing, creating a duo of special gift boxes with a distinctive cover. Geeraert also says that snacking is growing and is a nice “shelf perk”. “These small items are a little treat, and travellers who know the brand but want something for themselves can pick up a snack on impulse, although some nationalities, like the Japanese, will still pick up 10 boxes as gifts.”

Philip Geeraert, Director International Sales, Neuhaus

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LIQUEUR REPORT

Licor 43’s recent activation in Las Vegas was, by all accounts, a huge success

Strength to strength Already a strong region in liqueur sales, the Americas also offers huge potential in the coming years, both from the burgeoning duty free industry in the north and a recovering economy in the south by

WENDY MORLEY

mericas tends to be a crucial region for international liqueurs, and this certainly holds true for companies Disaronno, Distell and Diego Zamora. While the Brazilian market in particular and South American markets in general have been challenging over the past year, the western hemisphere remains strong.

Pushing hard into the region Licor 43’s main base is in Europe, but parent company Diego Zamora is seeing strong growth across the board, “Our year-todate numbers are +34% versus 2015,” says Antony Kime, Diego Zamora’s Global Duty Free Director. “The Americas comes from a lower base than Europe, but is delivering some strong results of +30% despite the challenges in Brazil right now.” While these numbers reflect the company’s business overall, Diego Zamora’s GTR business is also robust, with +22% growth in 2016 versus

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

the previous year. “With some strong activity based around our core brands I expect this to continue,” says Kime. North America currently offers the biggest opportunity to the company, including Mexico and the Caribbean. “EWTRA is helping us invest towards our goals in the cruise business,” Kime says. “Licor 43 is getting great traction and we are now focused on also improving traction for Villa Massa Limoncello and Ramon Bilbao wines.” Despite double-digit growth, like other companies Diego Zamora was hit by the slowdown in travel retail this year. “We continue to push hard with visibility and activations, and we’re also looking at pack sizes to offer something different and at differing prices,” says Kime. The brightest lights in the western hemisphere are in the US and Caribbean, both of which have had stellar years. “The US and Caribbean are both exciting, however we have only just begun in these markets. Many more opportunities are just presenting themselves now in the US airports and cruise business.” Kime feels keeping focused on building the visibility of the brands is of utmost importance, and thus any activations are primarily about building consumer awareness and trial of Diego Zamora’s products. “In Las Vegas in July we had an HPP activation right outside the store – the first major activation in the airport. All reports say the activation was a huge success. “

Thanks to the success of both Disaronno’s Roberto Cavalli edition and Disaronno Riserva, shown here, Illva Saronno saw growth of 48% over the past year

Becoming an Icon For Illva Saronno’s high-profile Disaronno and Tia Maria liqueurs, the US, Canada and the Caribbean are especially strong subregions in the Americas, and Domenico Toni, International Sales Director at Illva Saronno SpA, feels LATAM also offers good potential for growth. “At the moment, the macroeconomic situation affected the development of both brands in Brazil, but we are still growing in Mexico (Disaronno) and Argentina (Tia Maria), while markets like Chile, Peru, Colombia could be important markets for Illva brands in the near future.” The past year has been very successful thanks to the launch of the Disaronno Robert Cavalli edition and Disaronno Riserva, says Toni. “In GTR, The Roberto Cavalli edition achieved +30% versus last years Versace edition, which was already very successful. Globally, growth was 48% in domestic and travel retail.“ Both these editions were part of the Icon project, an annual partnership launching its fourth edition in 2016. Much hype surrounds each launch, and interest grows with each passing year. “We expect 2016 to be equally if not more prosperous,” Toni says. “The new collaboration will be on shelf from October this year. We have secured listings in key airports globally.” The company will be relying heavily on social media with this new launch, sharing content on BeOriginale.com, Facebook and Instagram. “On BeOriginale.com, content will showcase the themes of our dressed bottle in terms of being ‘originale,’ meaning innovative, creative – a pioneer in a stylish and irreverent way,” says Toni. Activations will also be important. “We will continue to invest in high-profile activations such as the highly successful wallspace takeover and tasting in partnership with International Shoppes at JFK T1 in November and December last year. This created huge interest in the Disaronno Sour cocktail, which we are continuing to focus on this year with sampling programs at key domestic and travel retail outlets.”

The elephant is more than a symbol for Amarula. The brand sponsored the recent Elephant Parade in Sau Paulo, which drew attention to the horrific scale of poaching of these great beasts in Africa. Since 2002, the Amarula Trust has funded initiatives that preserve Africa’s wildlife through its sponsorship of conservation research. “Earlier this year we joined forces with acclaimed conservationist and Wildlife Direct CEO Dr. Paula Kahumbu, and named her as the global ambassador for the Amarula Trust,” says D’Araujo. At the opposite end of the Americas, Canada is another major market for the brand, which is also seeing growth in Mexico and the Caribbean. “We have seen a phenomenal increase in our business in Mexico in the past six months, and we are also experiencing success in the Caribbean, where sales have sharply risen since January. This year has been positive; we are trending at +10%. This follows a very tough 2015, which also impacted many other alcoholic beverages,” says Sulkes. The US is top of the company’s list of target markets. “Recently, we have been greatly encouraged by the stronger connections in popular culture between the people of the United States and Africa. We hope this renewed interest in Africa will draw consumers to the exotic charm of the continent, its people, its cultures, wildlife and, of course, Amarula,” says Sulkes. Amarula is the largest exported spirit brand on the African continent, and its many international awards confirm its place on the global stage. Amarula will be launching its new bottle in South American travel retail this year, exclusive to duty free until January 2017. Rollout to other markets will follow. The bottle features new design elements that subtly suggest an African elephant’s head. It will be available in several sizes including 50 ml, 200ml, 350ml, 375ml, 700ml, 750ml, 1000ml and 1140ml. “In addition to the new bottle, we are planning an immersive experience for the travel retail environment unlike any other,” says Sulkes. “Africa has always been rooted in the brand’s DNA and so we’re harnessing a technology that will allow us to bring the Amarula story to life in a more visceral manner.”

African eminence The exotic nature of Amarula Cream and Amarula Gold, combined with their high quality and careful placement in travel retail and other select retail channels are the secrets to their success in the Americas, according to Distell’s Global General Manager for Amarula, Dino D’Araujo and Distell’s General Manager Americas Travel Retail, Sylvia Sulkes. “South America is the historical stronghold for the brand, especially Brazil. It was here that Amarula made its first foray off its home continent in 1994, and Brazilians have developed an affinity with the brand’s African provenance over time.”

Amarula will soon be launching an exciting immersive experience in travel retail

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RUM REPORT

TOP

SHELF After years of watching other subcategories dominate the global market, premium aged rum is finally coming into its own by

WENDY MORLEY

Ron Abuelo’s Finish Collection introduces a concept to the premium rum category that had formerly reserved for whisky

hile rum has traditionally held a reputation as a party drink, numerous spirits prognosticators say it’s time for aged craft rum to ascend to its rightful place on the upper shelf, to be discovered, enjoyed and savored by spirits fans who prefer a more complex flavor profile. Despite flat sales of rum by volume over the past year, value increased by about 11%, according to IWSR. This says people are choosing to spend more money for better quality, a reality in line with trends in other subcategories and one that bodes well for travel retail.

Turning rum on its head Ricardo March, Vice President, Varela Imports Inc, producers of Ron Abuelo, feels rum is indeed on the verge of a serious breakthrough. “I believe all companies are investing strongly in the rum category because they understand the future will be there,” he says. “People are looking at rums the same way they used to look at wines.” The slowdown in South America has not really affected Varela. “We haven’t seen a slowdown; maybe what you see is saturation, which is normal when a category becomes hot. Everybody wants to be part of it, but at the end of the day the companies with history and who control 100% the production of their product are the ones that remain.” March confirms that the US is the market for success. “Yes, the US is hot once again and if you really want an international brand you have to make it in that country. Paraphrasing Frank Sinatra, if you make it there, you make it anywhere.” Along with Europe, March says the US offers the biggest opportunity right now. “Consumers in these locations understand the rum category,” he says. This year, Varela has launched a completely unique product. Whereas it’s quite common for a whisky to be finished in casks that had contained any number of different liquids, this is gener-

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

ally not the case for rum. This year, Ron Abuelo turned that on its head with its release of the Finish Collection, consisting of three rums finished in Oloroso sherry (Oloroso), port (Tawny) and Cognac (Napolean). March says this release has been a huge success. “We passed every number we had forecast within the first six months.” The company is releasing a three-pack of the Finish Collection as a duty free exclusive.

Looking north Komal Samaroo, Executive Chairman, Demerara Distillers Limited & Subsidiaries, creator of El Dorado rum, believes the market for aged craft rums is wide open: “Aged rums are relatively new, having only been introduced in the global marketplace a couple of decades ago. Since then, distillers have been building up inventory and several brands have introduced a number of aged rums to the market. At the same time consumers from the millennial generation have increasingly been attracted to the category and the variety it offers.” While all premium spirits have been affected by the economic downturn in South America, Samaroo says the market for premium rum in the region has been in its infancy and so the subcategory has not been overly affected. “The largest premium spirits market is the US, and demand for aged rums continues to be strong in this market,” he says. “Caribbean travel retail is also buoyant, while other markets like Canada and some European territories continue to show steady growth.” The brand’s growth as a whole has also been steady, in the mid to higher single-digit range during 2015 and 2016. As with many brands, Demerara is looking north right now. “North American travel retail is a relatively untapped opportunity. We continue to increase the availability of our brand by achieving greater numbers of outlets, and will be seeking to expand this,” Samaroo says. A new sponsorship will help the

RUM REPORT

Demerara is finding new opportunities to expand into the North American market

company in this regard. “The El Dorado Rum brand has begun as partner with the organizers of CPLT20, a cricket tournament held annually in the Caribbean. This year one of the venues for the matches was in Florida. These matches have a large following, especially among those of Caribbean origin. This provides a huge sampling opportunity. We held several in-store activations.” He confirms that the company’s usual Gift with Purchase program will again be offered in several retail outlets throughout the Caribbean and North America.

Expanding the ultra-premium experience

bodes well for the brand.” With a legacy of five generations, a strong global distribution network and a broad range of quality offerings, Flor de Caña is strongly positioned to capitalize on this trend and indeed is experiencing healthy growth in the US market. “This growth is driven both by rum drinkers looking to trade up to ultrapremium rums and from brown spirit drinkers looking for a new aged-spirit experience.” In 2014, the company’s entire portfolio underwent a package redesign, underlining its heritage and higher quality credentials. “Our Centenario expressions are bottled with French glass, Portuguese stoppers and labels from Barbados,” says Bazan. “Last year, we launched a new look and feel for the brand, along with a new brand platform: ‘Land Made, Legacy Refined,’ which allows us to tell the 125-year-old story of Flor de Caña, the family that created it and the single estate process through which it is produced.” Bazan says we can expect more initiatives in the coming year.

Flor de Caña has seen double-digit growth over the past decade and is now available in more than 50 countries. “The brand has been doing very well in the US and other key markets,” says Rodrigo Bazan, Global Travel Retail Manager, Flor de Caña. “Year-to-date our portfolio is experiencing growth rates at more than double ultra-premium rum segment growth.” This success is due in part to the premiumization finally happening within the rum category, despite its slow adoption of the idea. “As a result there has been a proliferation of new entries and innovation, which is serving to increase awareness and expanded choices for consumers.” While this trend has caused increased competition, Bazan says it also creates opportunity as the market increases. “Consumers are learning to enjoy the flavor and character of sipping rums neat or on the rocks. Education on the quality and taste profiles of these finer rums will be key to get consumers to trade up or to move across from other ultra premium categories,” he says, adding: “The growing preference for authentic brands, Flor de Caña’s entire portfolio recently underwent a package redesign, and the company launched a new look and feel for the brand with its “Land Made, Legacy Refined” initiative true stories and undiluted quality

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

LIQUOR NEWS

Disaronno launches new limited edition Icon bottle with fashion house ETRO Since its first Icon edition in 2013, Disaronno has kept the world on edge each fall waiting for its next surprising ensemble. This year, Disaronno’s unique look was designed by renowned fashion house ETRO. The annual Icon project benefits Disaronno’s ongoing charity partner Fashion 4 Development, sponsored by the United Nations. As was the case in previous years’ designs by Italian fashion brands Moschino, Versace and Roberto Cavalli, a portion of the proceeds from sales of the DISARONNO wears ETRO collection will be donated to the development of this unique project to develop the textile trade and fight poverty in Africa. The DISARONNO wears ETRO design draws inspiration from the brand’s Autumn/Winter 2016 season and features striking paisley done in vibrant blue, orange and gold hues. The exclusive limited edition 50cl bottle is available from the beginning of October in major travel retailers globally, supported by activations and promotions, including tasting bars. Again this year, the designer edition will also be available in six different coordinated mini bottles, which will be offered in packs of three. “There is always a huge amount of hype surrounding each year’s new launch, and it’s something our partners, retailers, and consumers get very excited about,” says International Sales Director Domenico Toni. “The Disaronno ICON bottles are perfectly suited for travel retail, with their strong shelf appeal, collectability factor and unique design all being key sales drivers. The previous three Icon editions have all achieved better-than-expected results in travel retail and we anticipate another successful year for DISARONNO wears ETRO.” The new limited edition icon bottle will be showcased at this year’s TFWA World Exhibition on the Illva Saronno stand (Green Village, M52).

Lauder’s new Oloroso Cask and Ruby Cask releases helped the company’s sales explode up 36% throughout the year 2015

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

Disaronno by ETRO is the fourth in Milan’s famous liqueur brand’s Icon project, which supports Fashion 4 Development

MacDuff goes from strength to strength MacDuff’s blended whisky brand Lauder’s Finest Scotch whisky jumped a massive 36% in retail sales for the full year of 2015, moving up two places in the blended Scotch category, to ninth. This growth is especially meaningful since it came at a time when the category itself was shrinking. Lauder’s growth was helped by the addition of two unique cask finishes to the range: Lauder’s Oloroso Cask and Lauder’s Ruby Cask. The company has plans to launch a super-premium 25-year-old version of Lauder’s as a strictly limited edition at the TFWA World Exhibition in Cannes. Its Islay Mist and Grand Macnish brands also saw growth, pushing the parent company MacDuff International from seventh to sixth place in the list of global suppliers. Islay Mist was recently awarded a gold medal at the International Spirits Competition 2016. In addition, following 2015’s one-off release of Islay Mist 8-year-old Manzanilla La Gitana Cask Finish, a second unique cask finish will be unveiled at Cannes. This year the company also announced a strategic partnership with Inchdairnie, “Scotland’s most modern new single malt distillery.” This offers MacDuff a unique single malt for the future and allows the company to sustain the growth of Lauder’s, Grand Macnish and Islay Mist.

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LIQUOR NEWS

DANZKA sets itself firmly as the image of design

WGS reveals new packaging in Cannes

DANZKA’s family of award-winning vodka has been joined by an elegant new member. DANZKA THE SPIRIT, a brand-new, pure vodka created using the original traditions of vodka distilling, will be presented during a traditional Danish Frokost on Monday, October 3, between 3 to 5 pm at the Waldemar Behn booth, H52 Green village. At the Frokost will be Rüdiger Behn, Managing Director, Waldemar Behn, GmbH and fourth-generation distiller, together with Timothy Jacob Jensen, Chief Designer of Jacob Jensen Design, who together developed the new vodka combining the highest distilling arts with Scandinavian design traditions. “DANZKA THE SPIRIT began as an idea between friends by the beautiful Limfjord in Denmark,” explains Rüdiger Behn, Managing Director, Waldemar Behn, GmbH. “It will be our pleasure to introduce you to DANZKA THE SPIRIT in Cannes, where we can explain the full story behind this remarkable new spirit.” DANZKA has had a very successful year in travel retail in 2016, with expanded volume, distribution and facings/listings worldwide, with Middle East, Asia and Australia showing particularly strong potential. The company also introduced a striking new campaign in Denmark, created by Jacob Jensen Design and underlining the message that DANZKA THE SPIRIT is the “Design vodka,” bringing the brand back to its roots with its unique aluminum bottle that both sets the consumer apart from the crowd visually and chills faster. Also at Cannes, DANZKA is introducing a 4 x 1L briefcase-style pack, a 4 x 30mL gift- pack of DANZKA miniatures (The Original, Apple, Citrus, CranRaz), and a new luxurious flavor: DOOLEY´s: Liquorice is a subtle blend of premium vodka, Dutch cream and superior Belgian Toffee with a hint of licorice.

In time for the TFWA World Exhibition and Conference, William Grant & Sons (WGS) is offering new and refreshed packaging in key collections in its portfolio, and also offering glimpses into its fun and unique activations from Hendrick’s Gin and Monkey Shoulder blended Scotch malt whisky. The highlight for the company this year is the new packaging for Glenfiddich Cask Collection, exclusive to global travel retail. WGS will also be revealing a new pack for Drambuie Scotch liqueur. Drambuie is a truly beloved brand that was acquired by WGS in late 2014. While beloved, the brand is clearly associated with a certain era, and the company has spent the nearly two years since the acquisition examining the best way to connect the brand to a new generation. A new presentation is the first step, and this will be showcased in Cannes. The company is also introducing new packaging for Tullamore D.E.W Cider Cask Finish Irish whiskey and Tullamore D.E.W. Phoenix Irish whiskey. Both of these special Irish whiskey variants are exclusive to global travel retail and offer a perfect choice for impulse purchasing, says WGS’ Global Travel Retail Managing Director Ed Cottrell. “Constantly reviewing and refreshing the portfolio is absolutely necessary if we are to ensure the total offer is right for our travel retail partners and, in turn, their customers. The changes and additions this year sit alongside our most recent collections such as Grant’s Elementary, a GTR exclusive range, and brands such as Glenfiddich, The Balvenie, House of Hazelwood, Monkey Shoulder and Hendrick’s Gin, which create a compelling and undeniably ‘must-stock’ offer.”

In addition to its new DANZKA THE SPIRIT, the company is launching a new, luxurious flavor: Dooley’s Liqourice

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

A well-known brand, Drambuie is associated with a certain era; its new look is WGS’ first step toward reaching a new generation

Patrón Spirits introduces new GTR-exclusive Cask Collection Sherry Añejo

Patrón’s new Cask Collection Sherry Añejo tequila will be a travel retail exclusive when released in early 2017, later being released in select domestic markets

Patrón Spirits never disappoints in its offerings at TFWA World Exhibition in Cannes, and this year is no different. Each year the company showcases unique offerings including innovative travel retail exclusive offers; this year that includes the new Patrón Cask Collection Sherry Añejo tequila. As the Patrón signature, this ultra-premium spirit is made with only the highest quality 100 percent Weber Blue Agave, steam baked in brick ovens for three days and then crushed using the age-old “tahona” process, which provides a rich, roasted-agave flavor to the resultant liquid. This is mixed with tequila made with roller mills, distilled and then aged. This tequila is aged for more than two years in oak barrels from Spain that had previously been used to produce Oloroso sherry, producing a truly unique añejo tequila characterized by a bright, medium-gold color and a complex aroma of pecans, fresh-cooked agave, light butter, and dried fruits. The taste is of pecans, lightly toasted oak, caramel, raisins, light vanilla, and a hint of butter. A very limited, exclusive allocation of Patrón Cask Collection Sherry Añejo was produced exclusively for release in global duty free in early 2017. There will be a broader release in select domestic markets in the future. Patrón Spirits will also be showcasing its new 1L bottles exclusive to travel retail at TFWA WE in Cannes, and will also feature its entire portfolio of ultra-premium tequilas and liqueurs. John Kilmartin, Vice President, Global Travel Retail at Patrón Spirits International, confirms that travel retail continues to play a vital role at the company. “This is why we’re committed to offer unique duty free exclusive products and packages in this important retail channel,” he says.

EWTRA to represent Sazerac portfolio In spring of 2016, Edrington WEBB Travel Americas (EWTRA) was awarded Southern Comfort, which had been recently acquired by The Sazerac Company, to represent in travel retail in the Americas. As of October 2016, the Miami-based EWTRA will begin distribution and marketing for more key brands from the Sazerac portfolio in the duty free and cruise line sectors, including Buffalo Trace Bourbon, Blanton’s Bourbon, Eagle Rare Bourbon and Fireball Cinnamon Whisky, all of which will join Sazerac’s Southern Comfort and Paddy Irish Whiskey. Sazerac is one of New Orleans’ oldest American family owned, privately held companies, with offices throughout the US and in Montreal. Andy Consuegra, CEO of EWTRA, says the Sazerac brands are an excellent fit within the company’s portfolio, and believes the new relationship will further position both companies as preeminent players in travel retail channel in the Americas. Since its birth in January of 2015, EWTRA has seen great organic growth. To continue this growth and prepare for the new

brands, the company has made several organizational changes and brought on a number of new people for key positions in the company and on the board.

Andy Consuegra, CEO of EWTRA, with a few of Sazerac’s products being represented by the company in travel retail, including important American heritage brand Southern Comfort

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REMY

Then and now A visit to Bruichladdich distillery on Islay reveals a curious juxtaposition between highly traditional and exceptionally unconventional by WENDY MORLEY

The whitewashed buildings of Bruichladdich, overlooking Islay’s inland sea, Loch Indaal

he drive to Bruichladdich distillery is one of narrow walled roads, quaint cottages and sea vistas over Loch Indaal. The distillery, there in its old whitewashed glory, holds court over the village of the same name. The brilliant turquoise blue sign at the entrance gives the first hint that things might be just a little different from what they were upon its creation in 1881. As is the case with many distilleries in Scotland, Bruichladdich was supported by the town from its inception. The machinery invested in by William, John and Robert Harvey, the founding brothers, was state of the art and the distillery itself had quite different components from other Islay distilleries; the brothers had learned a thing or two through their family’s heritage as distillers in Glasgow. That then-state-of-the-art equipment continues to play an important role at the distillery today. Built to exceptionally high standard, it incorporated several new ideas, and was specifically designed to produce the purest spirit possible from tall, elegant stills. But while the whisky itself was well received, many tribulations faced the distillery in its first 120 years or so, including infighting of partners, hostile takeovers and a couple of closures. Bruichladdich went through a series of owners during this time.

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

The concept of terroir brought to whisky The distillery’s renaissance began in the year 2000. Two things characterized Bruichladdich’s reawakening. First, the company continued to use the distillery’s original equipment. Second, the new owners brought the concept of terroir. The barley is grown locally on Islay as much as possible, and is all grown in Scotland. Bruichladdich keeps close record of all the barley it uses, noting differences between fields. (One local barley grower’s name is James Brown. At Bruichladdich they refer to him as “The Godfather of Soil.”) Because locally sourced ingredients and terroir are all incredibly important at Bruichladdich, those who worked at the distillery before the Rémy Cointreau acquisition of 2012 were thrilled to find that the spirits company not only supported this concept philosophically, they also supported it financially.

This attention to detail, willingness to go the extra distance and to accept the importance of artisanal methods rarely used these days set the scene for truly unique products such as Bruichladdich Bere Barley – a whisky that uses rare Orkney barley with far lower yield, which also messes up the equipment, but which produces a unique product that really cannot be found elsewhere. If any of this has left doubt of the distillery’s unique place in the whisky world, Bruichladdich’s product design should clear that up entirely. The bottles and tubes are slick and modern, many in that striking shade of Bruichladdich blue.

Rémy understands the importance of tradition Shortly after the acquisition, when the company found that the original equipment needed serious repair in order to function at high capacity, Rémy Cointreau made the decision to rebuild to original specifications as opposed to replacing with modern equipment. They brought tool and die makers to the distillery and recreated the original parts piece by piece, allowing for the whisky to be made the same today as it was in 1881.

My visit included a delicious tasting straight from the barrel, hand delivered by Bruichladdich Master Distiller Adam Hannett himself. More exciting? This extremely limited edition will be a travel retail exclusive

BROWN FORMAN

Strong heritage The legacy, tradition and authenticity of BrownForman’s American whiskey and tequila brands are helping them stay buoyant in troubled waters by

WENDY MORLEY

rown-Forman is in the enviable position of having the best-known brand of American whiskey in the world at a time when this subcategory is one of the few bright lights in global travel retail. “American whiskies continue in high demand around the world both in domestic and in travel retail markets,” says Eric Helms, Marketing Director, Brown-Forman Global Travel Retail. “We have focused our efforts on Jack Daniel’s Old No. 7 as well as Jack Daniel’s Tennessee Honey and Woodford Reserve.”

Challenges in the south While Brown-Forman’s brands have stayed strong globally, Helms says Brazil is still a challenging environment due to its fluctuating economy and the strong American dollar, a trend that continues from 2015 in that country and elsewhere. Despite tenuous conditions in Brazil, however, Helms says American whiskey is still growing domestically in the country. “We feel this will carry over into the travel retail segment both for passengers traveling out of the country and when they make purchases at arrival shops when they return,” he says. As a recent introduction on the scene, Woodford Reserve Bourbon has continued to grow at a promising pace in Brazil and elsewhere in South America. The northern part of the hemisphere, meanwhile, has been doing especially well. “Jack Daniel’s and Woodford Reserve remain strong in the US and we are pleased with the travel retail reaction to Old Forester,” says Helms, who also remarks that the Caribbean market has been transformed. “In the Caribbean, the taste profile for travelers has dramatically changed for the better. It used to be that cruise lines and island visits

Brown-Forman’s focus over the past year has been Jack Daniel’s 150th anniversary, in addition to Jack Daniel’s Tennessee Honey and Woodford Reserve

were all about cheap rum and beer but that isn’t necessarily the case any longer. Cruise travelers – like their international counterparts – insist on authenticity and lean heavily toward premium spirits. We have capitalized on this trend by working with our cruise line partners to showcase our American whiskey portfolio and to develop innovative cocktail recipes.”

Outperforming the market While American whiskey has continued to do incredibly well around the world, the same cannot be said for other spirits such as tequila, although Brown-Forman’s ultra-premium tequila brand Herradura is holding its own. “As with most spirits that are not American whiskey, tequila has been dealing with some real challenges lately,” says Helms. “Last year the entire category was down double digits, and it remains sluggish so far in 2016. Herradura is somewhat of a bright spot among tequilas, however; even at a premium price it is outperforming the category. Just like Jack Daniel’s and Woodford Reserve, Herradura is authentic, offers premium value and is just a great tasting tequila.” While the US and Mexico remain the primary markets for tequila, Herradura is showing growth in Latin America as well as several markets in Europe and Australia.

Brown-Forman is no stranger to activations and promotions, especially with its Jack Daniel’s family. “We are in the midst of a year-long celebration of the Jack Daniel Distillery 150th Anniversary Celebration. We have a variety of promotions and activations in conjunction with this event in markets around the world,” says Helms. The company has many announcements in the coming months and will surely have a great many more events on the horizon.

While as a category tequila is down in double digits in 2015-2016, Herradura is outperforming the category and showing growth in LATAM and other global markets

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DIAGEO

Miami cruise Diageo’s BAR 396 in Miami was the glamorous setting for 2016’s Global Travel Semi-Final of the Diageo Reserve World Class competition by

WENDY MORLEY

Winner Andrej Malic, wowing the judges with his creation and his personality during the competition at Diageo’s BAR 396

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

he Diageo Reserve World Class Bartender of the Year competition, launched in 2009, has a mandate to elevate and celebrate the craft of bartending. Each year Diageo judges choose a bartender to represent a dozens of countries around the world. Each of these bartenders gathers to compete in the final, held in a different city each year. Since its inception, Diageo World Class has reached an incredible 250,000 bartenders, helping to elevate bartending as a craft and as a

career around the globe, and that number continues to grow. In addition to the bartenders who represent their respective countries in this competition, a cruise line bartender is chosen to represent the cruise industry. The Diageo World Class cruise line program takes place over many months each year, training cruise line bartenders in the art and craft of bartending, from learning how necessary it is to use top-quality ingredients such as those in the Diageo Reserve line, to making spectacular

The three cruise line semi-finalists celebrate as winner Andrej Malic, of Celebrity Cruises, takes the trophy

cocktails, to the importance of creating a fun, welcoming and entertaining atmosphere for their passengers. This year’s cruise line competition saw the biggest number of entries to date, and it all narrowed down to the three semifinalists, who competed at a glamorous event in Diageo BAR 396 in Miami. Marc McArthur, Norwegian Cruise Lines, from South Africa Andrej Malic, Celebrity Cruises, from Bosnia and Herzegovina Angelo Sinopen, Holland America Line, from the Philippines The three competitors were judged by a panel of the industry’s elite experts including Julio Cabrera, Master Mixologist; David Molina, Head Mixologist for Diageo BAR 396 and Marcy Rudershausen, Senior Master of Whisky for Diageo. This year’s competition focused more on creativity than on beating the clock. For the first test, called “Before and After,” competitors had 10 minutes to create a unique aperitif and digestif. For the second test, “Pool Party,” competitors were given the names of a famous couple to create drinks for, pretending they had arrived for a casual and fun event. The judges said all the drinks created tasted fantastic, but one bartender shone above the rest for his engaging and entertaining style, and that was Andrej Malic, crowned Cruise Finalist and representing the travel industry at the World Class finals in a few weeks. Lorenzo Davidoiu, Director of Food and Beverage Operations of Celebrity Cruises, was thrilled with Andrej’s win, but said the entire experience working in partnership with Diageo on the World Class concept has truly elevated the experience aboard Celebrity’s ships. “Our passengers are savvy travelers,” he says. “They are looking for a story. Our bartenders can now create an emotional connection with our passengers. An uneducated bartender cannot do this. A great drink starts with great ingredients, which Diageo offers, but they also offer great training. It really brings the bartending on our ships and therefore our entire passenger experience to a whole new level. Diageo World Class really raises the bar.” Davidoiu went on to say how proud he was of Andrej. “He has been phenomenal. I’ve been really impressed. His creativity and personality really came through.”

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MARIE BRIZARD

THE RENAISSANCE Marie Brizard is going through a rebirth, creating an image in line with its strong tradition of unique quality by WENDY MORLEY

Gautier VS has been chosen the World’s Best VS Cognac two years running at the World Cognac Awards

he past year has been huge for Marie Brizard Wine & Spirits (MBWS); the company, which is over 250 years old, has been going through a complete rebranding, with a new company name, new designs, new launches, new marketing plans, new packaging, and the hiring of a new Global Travel Retail Director, Kevin Baker. The company happened to do this overhaul during a difficult time in global travel retail, however, so Baker has had his work cut out for him. “Indeed, 2015 was a tough year,” he admits, “but the second half of 2016 has shown signs of slow but steady recovery, mainly in the border stores channel.” The Caribbean has also been growing for the company, especially in sales of Gautier Cognac. The company has new listings in Trinidad and is in talks for a number of others.

Getting established “We’ve been incredibly busy,” Baker says. “It’s been a year of introductions and sharing great relaunch plans with our customers, all while working on exciting new activations for them. We’ve received very positive feedback, and now we have

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to make it happen and convert it into listings and sales! That said, customers seem to have been rather cautious when it comes to new products from smaller suppliers and we hope that the signs of recovery augur well for us.” While the company has a substantial and impressive portfolio, a few items stand out as the most major brands. “The ‘Double Gold’ awardwinning Sobieski Vodka continues to be a major brand on the southern borders, due to our great development in Brazil domestic market,” says Baker. “Gautier, the World’s Best Cognac for two consecutive years, is the fourth bestselling brand nationally in Canada and number one in Quebec, so it is an important focus brand for airports and northern border stores.” The company will also focus on its groundbreaking Shotka for the southern borders.

while working on exciting new promotional activations for 2017,” says Baker. “You could call the TFWA WE in Cannes and the FDFA in Toronto big activations for us.” Nicolas Guillant, President of Marie Brizard, says the company is continuing to focus on its core portfolio. “We see potential growth with our Sobieski brand, and we’re launching Fruits and Wines across the U.S. this summer. Our William Peel Scotch whisky brand is huge but is unknown to Americans, so we see a possibility for growth there as well.” The relaunch of the newly redesigned Marie Brizard brand – well known to bartenders around the globe – is coming in early 2017.

Focus for the coming year The company will focus on a few different things during the end of 2016 and into 2017. “The relaunch of Marie Brizard and our Heroes range – Anisette, Apry, Parfait Amour, Jolie Cherry and Finesse Orange – will be our focus for 2017 with a highend image that naturally fits with the duty free experience. Our new drinks strategy introduces signature cocktails in which Marie Brizard is the hero brand: Marie Zest, Marie Love and Marie Crusta will all feature, showing consumers how to make simple, great-tasting cocktails.” The coming year promises to be just as busy for the company as developments progress to the next level. “2016 has been a development year for us; we continue to implement promotions as before

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

Along with the new bottle, new logo and new marketing campaign, Marie Brizard is launching a series of cocktails featuring one of its liquids as the main ingredient

DIAGEO BAILEYS XC

For the

ladies Diageo is releasing a BAILEYS travel retail exclusive with the taste, appearance, activations and displays that have the feel of chic sophistication

here are few iiquors so unique and beloved that a brand name specifies the liquid itself, but BAILEYS is one. When the Diageo travel retail team announced that this year a whole new BAILEYS would be released exclusively in the channel at IAADFS in Orlando, therefore, the news was especially exciting. “BAILEYS XC is a groundbreaking innovation that blends cream from BAILEYS with Cognac of unquestionable quality for a smooth, indulgent flavor and a new taste experience for liqueur lovers,” says Arnout Boele, Customer Marketing Director Americas of Diageo Global Travel. “In travel retail, we know our target consumers are looking for new and unique offerings from brands they trust, such as BAILEYS. While in the past we have been able to deliver new innovations from BAILEYS, never before have we been able to offer them a premium product that is exclusive to travel retail from this brand.” With BAILEYS XC, Diageo is able to offer a premium product for travelers as well as tapping into the growing appreciation for Cognac.

Creating an engaging shopping experience BAILEYS XC is clearly being marketed toward women, but Boele says this is not

Beautiful displays attract customers with the feel of French luxury, and sampling will be a key aspect of Diageo’s support

new. “Since the early 1970s when BAILEYS was developed, it was created for female consumers at a time when there few options available for them. With BAILEYS XC we are continuing this legacy of pioneering innovative products from the most loved female spirits brand.” The challenge for Diageo is to transform the shopping experience from one that is functional to one that is emotional, engaging and attractive. “We are facing this challenge head-on with innovations such as BAILEYS XC,” Boele says. “Inspired by timeless French sophistication and the growing popularity of luxury liqueurs among shoppers in duty free, the smooth liquid is presented in a stunning, intricately designed, blue and gold bottle featuring an eye-catching hologram effect.”

Perfect for gifting Pop-up retail experiences, retail furniture and display units will be modeled along these same lines, attracting shoppers with the feel of French luxury. “Ultimately, BAILEYS XC is designed to appeal to those shoppers looking for something unique and indulgent,” says Boele. BAILEYS XC itself, the packaging and the displays all announce that this new item is the perfect gift for a woman. “We have begun rolling out this beautiful liquid in top airports across the globe and are

The luxurious liquid is presented in a stunning, intricately designed, blue and gold bottle featuring an eye-catching hologram effect

particularly excited about the upcoming Christmas season. BAILEYS XC activations will offer the air of timeless sophistication of French luxury, showcasing high quality ingredients combined with the contemporary chicness of BAILEYS,” says Boele. He affirms that the launch will be strongly supported by Diageo. “As with the majority of Diageo product launches, we are committed to supporting our customers in making sure BAILEYS XC is a success with consumers,” says Boele. “Beautiful disruptive and engaging retail experiences will be put in place to attract consumers to the liquor category and sampling will be a key part of our marketing, allowing consumers to appreciate the products unique taste. Our expectation is that BAILEYS XC will be a big success, particularly during Christmas and key holiday seasons.”

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EDRINGTON

The Macallan guide Kat allows the extraordinary experience to continue in the tasting room in Easter Elchies House

Past &

Present The Macallan: Old and New The Macallan is nestled in the rolling hills of Speyside; this is reflected in the design of the new distillery and welcome center currently being built, with its rolling, undulating roof. Non-traditional to be certain, but the whisky is steeped in tradition. My tour begins in the original Easter Elchies House, built in 1751 and the first of six “pillars” of Macallan whisky. Of the estate’s 270 acres, 90 still grow barley for special The Macallan releases. The water source remains the original wells on the property. From Easter Elchies House we move through every step of The Macallan creation from barley to bottling. Edrington makes a huge investment in its wood, creating all casks and planting two trees for every one it fells. With a career beginning in a cooperage, Master of Wood Stuart MacPherson brings vast knowledge of the characteristics of wood and the flavors imparted. The Macallan’s Master Distiller, too, worked his way through ever-more-responsible positions, starting as a shift worker in warehousing. One can’t help but think his lifelong experience every step of the way offers something special to the whisky. Macallan never uses caramel and never will. Following my distillery tour and a lesson on wood and casks, I’m offered a some extraordinary experiences: tasting The Macallan through a secret hole in the floor that opens to a cask; watching men filling casks with freshly distilled whisky;

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Speyside and Orkney offer two distinct distillery experiences and two distinct whiskies, each with Edrington’s trademark quality by WENDY MORLEY

tasting the whisky streaming into a trough to be married, and even tasting from the marrying barrel. Finally, I see the truck driving the fine liquid to bottling before heading back to Easter Elchies House for a fine tasting, including the luscious travel retail exclusive Rare Cask Black.

Highland Park, from the land of Vikings Orkney Island, north of the Scottish mainland, is rich in Viking heritage. Vikings were skilled farmers and craftsmen, and Highland Park celebrates this heritage in its range. Like the domestically released Valhalla collection, the travel retail Warrior Series is a nod to the Vikings of old. Due to its location, history and nature, Highland Park retains a truly original character, and has won “Best Spirit in the World” three times. One of the very few distilleries to malt its own barley, its

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

Highland Park is one of only a few distilleries to malt its own barley, hand turning it on the malting floor and then peating it on the smoke floor

employees hand turn it on the malting floor and then smoke it with local peat. Orkney peat does not contain tree roots, as trees do not grow naturally on these islands; rather, it contains heather and sphagnum moss. According to Patricia, my extremely knowledgeable guide, this creates a uniquely smooth flavor, as tree roots provide an acrid taste. Edrington builds all its casks new, and then sends them for sherry fill. All casks at Highland Park have been used for Oloroso sherry, providing richness, color and dried fruit character to the resulting whisky. Patricia led me through luscious, long, chewy tastings of Highland Park 12, 15,18, 21 and 30YO. Interestingly, she had me drink them out of order, according to which tastes she felt would be one after the other. My favorite was the 21. No, maybe the 18. Actually, they were all wonderful.

+125% DUTY FREE SALES INCREASE IN 2 YEARS ***

Nยบ1 INTERNATIONAL FRUIT LIQUEUR IN GERMANY ** Nยบ1 LIQUEUR IN THE NETHERLANDS ** FASTEST GROWING LIQUEUR IN BRAZIL * FASTEST GROWING LIQUEUR IN MEXICO * OVER 600,000 CASES WORLDWIDE IN 2014 ***

* IWSR 2014, liqueurs traditional category ** The Nielsen company, retail August 2015 *** Internal sources

Please drink responsibly.

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MONARQ

Chasing growth

Gosling’s Black Rum and Ginger Beer are new additions to the MONARQ portfolio

MONARQ Group reaches far beyond the status quo, continuing to achieve doubledigit increases year after year by

WENDY MORLEY

MONARQ will offer a Tomatin Highland single malt whisky duty free special-value pack at year-end

obert de Monchy, Founder and CEO of MONARQ Group, just might have a secret painting in an attic somewhere of an unsuccessful man. Just as the fictional Dorian Grey continued to stay young while his portrait grew old, de Monchy’s business continues to see substantial growth while many others are stalling.

Double-digit growth continues “Our overall duty free/travel retail business has enjoyed a double-digit growth in the past year versus the previous year,” he confirms. “This increase has mainly come from the Caribbean and US duty free. The star performers have been Heineken, our whisky portfolio including single malt Scotch whiskies, Bourbon and other American whiskey brands, Bols liqueurs and the Quintessential Brands London Dry Gin portfolio.” De Monchy believes the worst may have passed for South America though

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actual recovery is still a way off. ”The general slowdown in some South American markets, most notably Brazil and its borders, has not seen much of a rebound yet, although the decline has kind of bottomed out, it seems.” he says. “On the other hand, a number of Pacto Andino markets, most notably Chile, Peru and Colombia in addition to Central America and Mexico, continue to perform well.”

Seeking opportunities But opportunities are always to be found. “The shipchandling business to both cruise and commercial vessels has increased substantially throughout recent years, especially in Miami and Panama,” de Monchy says. “The duty free retail business on the piers is different from destination to destination. Some ports are up and others are flat or down, depending on the arrival numbers and the average spend per person.” At IAADFS this year MONARQ launched the Quintessential Brands gin

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

portfolio, to which Thomas Dakin small batch gin was recently added. “This Gin portfolio has become quite important for us because it’s a uniquely innovative and well-balanced portfolio of the highest quality gins. “The portfolio’s brands each have a distinctive role in the gin spectrum. Greenall’s is since 1761 the oldest London Dry Gin brand in the world, Opihr is an oriental spiced gin, Thomas Dakin a small-batch gin and Bloom is a floral, feminine oriented, gin. Recently, Greenall’s, Opihr and Thomas Dakin have been listed by London Supply in Argentina. We are currently in process of finalizing a few other new duty free listings.” The company also introduced its new single malt Scotch whisky portfolio at IAADFS. “Our Scotch whisky portfolio consists of distinctively different, highly recognized independent brands such as Benromach, Kilchoman, Tomatin, Tullibardine and Tamdhu, all of which have excellent acceptance throughout the region,” he says.

New additions Recently, MONARQ added Gosling’s Bermuda Rum and Ginger Beer to its portfolio, and the company is also now handling the Berry Bros. & Rudd portfolio with a focus on iconic The Glenrothes Speyside single malt whisky, of which two new duty free exclusives, Robur Reserve and Manse Reserve, will be introduced in the Americas. Promotions are always important, and de Monchy confirms there will be plenty to come. “We will keep doing our successful Limoncello di Capri sorbet machine promotions with London Supply, SMT and several accounts on the UruguayBrazil border,” he says. “We are running a number of special promotions with Heineken during the year. We will also introduce a number of unique limited editions of Tomatin Highland single malt Scotch whisky and offer a duty free special-value-added pack for year-end.” De Monchy says in duty free the company will maintain its focus on the current portfolio, in which single malt whisky, rum and gin will each play a prominent role. “Since innovation is in our DNA, we will likely bring a few unique spirits brands to the region.”

PATRÓN

Continued

growth by

With double-digit sales growth in 2015 and expected in 2016, Patrón is bucking the trend toward slowdown in GTR

Promotions and product innovations keep Patrón high on the radar of travelers

WENDY MORLEY

ales growth can continue at a high rate even in a soft market, and Patrón Spirits proves it. “Globally we enjoyed double digit growth in travel retail in 2015 and are on track to also post double digit growth through H1 2016,” says John Kilmartin, VP Global Travel Retail at Patrón Spirits International. “The Americas have led the way. This is our strongest region, followed by Europe.” The Americas will always be the key region for Patrón, and Kilmartin suggests the company will redouble its efforts and focus in this important market. The Middle East and Asia Pacific have proven to be a little more challenging for the company, as a result of ongoing economic and political factors in those regions. “Political and economic factors have impacted on our H1 performance in the Middle East, but we are optimistic that we will get the region back on track through H2,” says Kilmartin. “In APAC we have some very strong pockets and we will concentrate our efforts in those key markets in order to deliver our 2016 targets.” As the luxury market in particular has shown weakness throughout the world, Patron has seen a slight decline in its highest-end Gran Patrón line, but not

in its core portfolio – keeping in mind that even the company’s core portfolio is superpremium. “The decline in the luxury market has not impacted on sales of our core Patrón tequilas,” says Kilmartin. “We have proceeded with the introduction of our new 1-litre-sized bottle for travel retail as planned for our core tequila line and our Patrón XO assortment, in order to provide customers with an even greater incentive to purchase.” Travel retail continues to be an important market for the company, and Patrón continues to prove it with its always-evolving offerings in the channel. “Notably, our new 1L bottle for the core Patrón tequila line and Patrón XO Cafe are exclusive to duty free,” says Kilmartin. “We’ve also introduced a limited edition 1L Patrón Silver bottle and limited edition gift tins. In addition, we recently launched

our Patrón Extra Añejo 5 Años exclusive to travel retail. Our activity and growth in this channel is truly just starting!” he adds, hinting that there is a great deal more to come in this area. That much is apparent, considering the numerous limited edition and special releases in the channel in recent years. Promotions and activations are a constant for the company, as is product innovation. Combined, these two forces help result in the continued growth year on year. “Patrón was built on a spirit of innovation and we’re constantly evaluating trends and consumer interests,” says Kilmartin. “That’s exactly what led us to introduce our exclusive 1L size in duty free, our Patrón Extra Añejo 5 Años, and other special offerings such as the beautiful Patrón en Lalique introduced last year.”

While Americas continues to be the strongest region for Patrón, the brand is growing elsewhere, including UK, as shown here at Heathrow

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SPI

SPI’s Global Duty Free & Travel Retail Director Jean Paul Aucher sees luxury choices like the exclusive elit Ushuaïa as key to future success in GTR

INNOVATION BREEDS SALES

hile the global travel retail industry has had its challenges over the past year. Jean Paul Aucher, SPI’s Global Duty Free & Travel Retail Director, says this is merely a reflection of the spirits market in general. “Economic and geopolitical realities and

Innovations based on consumers’ evolving preferences continue to keep Stoli’s sales brisk despite a softened market

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Stoli® vodka is a pioneer of the premium global spirits market, and especially well positioned for continued success in GTR by

WENDY MORLEY

currency fluctuations all play a part,” he says. “Managing it is just a matter of accepting that this business is always cyclical and to hold firm.” Despite the down cycle, SPI is seeing positive results in GTR, especially in the UK and Europe. Dayna Dennington, Regional Director North & Central America – Caribbean Duty Free adds that while the Americas is currently a challenging region, North America is still the leading travel retail market for Stoli, “It is also the region where we anticipate the most growth in the next few years, as we still see great untapped brand potential in the category. Our continued focus on the region has brought us closer to our target of being in the top 10 US international airports, on cruise ships and in border stores in the North and South.” She admits that the vodka category is suffering, flavors in particular. “Many vodka brands have seen declining sales with resultant delisting. As whisky becomes more popular it’s even more pertinent for us to narrow our flavor portfolio, focus on providing innovative products and offer great promotions.” Promotions, new products and packaging innovations are a given for SPI. “There is no doubt that the vodka category is becoming increasingly crowded with brands and products; thus the competition for space is ever more challenging,” says Aucher. “On the plus side, vodka is still a dynamic category where we see great opportunity. The trend is still very much toward exclusive lines, limited editions and premiumization.” Innova-

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

tions such as the Stoli® Night Edition series and Stoli® Gluten Free are imperative to the company’s success. “The launch of Stoli Gluten Free continues Stoli’s commitment to innovation and pioneering heritage through its 80-year history, and is an example of how we evolve with consumers’ preferences through expanding our product line. We believe Stoli Gluten Free is an incredible opportunity, and that it will help us continue to grow our market share.” While North America is a stronghold and Stoli is doing relatively well in a difficult Middle East, Asia is the main longterm growth market, says Aucher. “Asia represents real untapped potential for us, particularly in markets such as China, South Korea and Taiwan. We are making a conscious effort to build the Stoli brand in Asia, and particularly in China. We do see potential in the medium-long term, specifically for premium offers and innovative lines such as flavors and packaging.” While the luxury industry has taken a hit and the focus has turned more toward value-based products, SPI has not seen this. “Our elit® Vodka from The House of Stoli® has stood out amongst vodkas as an ultra-luxury brand and the portfolio has continued to broaden over the past year with limited and special editions. This year also saw the second limited edition version of our unique collaboration with Palladium Hotel Group’s Ushuaïa Ibiza Beach Hotel to create a signature bottle. Sales have been most impressive.”

FIND MOLINARI AT TFWA CANNES, GREEN VILLAGE J57.

L A S T I T A L I A N D I V A. Anise, passion, Italian character and a brand known all over the world: these are the ingredients that make Molinari Sambuca Extra an admired international star. www.molinari.it

DAVIDOFF

At Davidoff’s Ladies Masterclasses, women find a comfortable meeting place where they can learn about cigars, from seed to enjoyment

New releases Looking at the enormous number of announcements and releases by Davidoff this year, it’s no surprise that this cigar company continues to hold its lofty place in the world of cigars by WENDY MORLEY

his has been a year of a seemingly endless series of announcements by Oettinger Davidoff. In addition to a number of new cigars, the company has released a newly designed line of accessories, a beautiful new Limited Art Edition humidor and launched its Art in Lounges program. In truth, one would need an entire magazine devoted to Davidoff in order to give space to everything the company has been up to in just the past few months. Here’s a small sample.

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New line of accessories

Women’s Masterclasses

Davidoff has revamped its accessories line through a cigar-inspired design developed in collaboration with Swiss architecture and design agency Atelier Oï. Based in La Neuveville - Switzerland, Atelier Oï has been striving to create a new transdisciplinary design genre and skills to play with materials, shapes and functions. The rollout of this new design across the accessory range is true to Davidoff ’s values of craftsmanship and timelessness, with a contemporary touch of elegance.

Davidoff ’s Ladies Masterclasses were founded to create a place where women can meet without being disturbed, while discovering new things about the cigar world, from the choice of cigar to the lighting and cutting, right through to the enjoyment. These Masterclasses have been held in major cities, including Amsterdam, Brussels, London, Madrid, Vienna and Zurich as well as in Dominican Republic, the home of Davidoff cigars. The most recent addition was Barce-

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

The perfect marriage of art and cigars is presented for the second year in a row, with The Davidoff Limited Art Edition

Escurio and Nicaragua lines. Participants enjoyed a pairing session with selected champagnes, white and red wines, rums, specially prepared cocktails, chocolate and coffee.

Part of the revenues generated by the Davidoff Limited Art Edition 2016 will be dedicated to sustaining the Davidoff Art Initiative and supporting artists from the Caribbean.

Limited Art Edition 2016: Olivia McGilchrist

lona, where more than 40 women met in the beautiful gardens of Can Travi, set in an authentic 17th-century Catalonian farmhouse. The program included a short introduction to the entire process, from the seeding, harvesting and blending of the tobacco to the handcrafting of the cigars in the Dominican Republic. The participants were able to sample different blends and formats available in Davidoff ’s wide range of cigars, from the mild Davidoff No. 2 and ‘2000’ to the more complex and intense Winston Churchill,

For the second year in a row, Davidoff has chosen an artist and a work to be featured on its Limited Art Edition. The Davidoff Limited Art Edition 2016 is limited to 7,000 unique boxes, each featuring an exclusive still extracted from McGilchrist’s video “from many sides.” Olivia McGilchrist is a JamaicanFrench visual artist whose works explore themes of translocation and issues of Caribbean cultural identity. Each box will carry 10 exquisitely flavorful and well-balanced perfecto cigars, an exceptional format, which only 10 experienced Davidoff torcedores (cigar rollers) are able to craft. A highly limited run of Collector’s Editions were released during Art Basel in June, consisting of one of 16 numbered editions of the commissioned video, a cigar box featuring a unique still image from the video, and a signed certificate by the artist, Visitors also had the opportunity to immerse themselves in a 3D virtual reality video piece by McGilchrist.

Davidoff’s new line of accessories was developed in collaboration with Swiss architecture and design agency Atelier Oï

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

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QUESTIONNAIRE

ALL ABOUT

Enrique Urioste, CEO, Neutral Free Shop

Where were you born and raised? Montevideo, Uruguay

If you attended post-secondary school, what did you study? Law and a Masters in Holland

Are you married? Do you have children? Yes, I am married to Dolores and have three children: Tomas 18, Milagros 16 and Bautista 12 What is your favorite movie? The Godfather

What is the last book you read? The Great Divide by Joseph Stiglitz

What would you choose as your last meal? Sushi

Your favourite drink? Red wine (Malbec)

Do you have a passion in your life (or more than one)? What? Adventure motorcycle ride, skiing and sailing

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Do you have a pet (or more than one)? If so, what animal and name? Two dogs. They are dogs from Burdeos and named Whisky and Dorka Do you prefer country or city? I love both, depending on mood and kind of program

What is your favourite place to vacation? Sailing the Mediterranean Sea

What’s the first thing you do in a new place? Try to understand the local culture as fast as possible If you could choose any place in the world to live, where would it be? Miami or Madrid

Which living person do you most admire? No specific one

Which historical figure do you most admire? Churchill & Pope John Paul II

AMERICAS DUTY FREE & TRAVEL RETAILING OCTOBER 2016

Where and when were you happiest in your life? The moment my kids were born

What in the world would you most like to change? Poverty and unequal opportunities

What about yourself would you most like to change? Not to take things so personally

What is the most important piece of advice anyone ever gave you? There is nothing you can’t achieve if you really want it What is something about you that most people would find surprising? I always smile to life and almost always life smiles back to me