Global Travel Retail Magazine MEADFA November 2023 by Paramount Publishing Ltd.

GTRMAG.COM NOVEMBER 2023 MEADFA CONFERENCE VOL 35 · NO 7

When Dufry becomes Avolta p. 10

Dubai Duty Free celebrates 40th anniversary p. 14 Lagardère Travel Retail grows African footprint p. 18 Qatar Duty Free’s magical touch p. 22

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A WORLD OF OIL-INFUSED BEAUTY

Great expectations Letter from the Editor

xcitement is in the air in our industry as travel has returned, bringing a renewed sense of normality. This feeling of things returning to normal has in turn brought optimism. Logically we knew travel would return, but seeing it happen is invigorating. The world we are making our decisions in is quite different from the one we left behind, however. Travelers have new expectations. As Managing Partner and Chairman of the global management consultancy firm Kearney, Alex Liu, suggested in his research-based presentation at TFWA Cannes, this provides opportunities, especially by using non-traditional ways to engage the consumer. As you will read in the article “From Doha with Love,” Qatar Duty Free (QDF) has its finger on the pulse of this new consumer. Its ever-increasing options for shopping and dining encourage travelers to choose Doha as a hub, as they want to take advantage of shopping opportunities. While QDF offers something for everyone, its luxury offerings are truly outstanding. The respective importance of the global regions is changing as well, hinted at by the location of the MEADFA conference this year. Long has Africa been touted as an upcoming region, and that day appears to have come. Retailers including Heinemann and the newly named Avolta are looking to partner with local businesses throughout the continent, adding to local economies while the retailers learn about the individual cities and countries, in addition to the region as a whole. Avolta is the new moniker for the overarching company created by the merger of Dufry and Autogrill. The company sees great opportunity in Africa, especially in providing what is missing in small and medium-sized airports, and the merger means the company can now provide whatever is needed. This year’s MEADFA signifies the beginning of a new era in travel retail on many levels. Never before has the event taken place in Sub-Saharan Africa. Never before have so many operators shown a willingness to invest in the region. Retailers and brands both are making huge commitments to sustainability, something increasingly important to consumers, especially under-40s, who are rapidly becoming the largest group of travelers by age. Whatever this brave new world is bringing, you can be sure Global Travel Retail Magazine will be there with you. Like the rest of the industry, we are excited to ride this post-pandemic wave, investigating and reporting on all that is new. Please enjoy this issue; feel free to share with your colleagues and get in touch to let us know what interests you. We can’t wait to learn more about the burgeoning travel retail business in Africa and bring all the information back to you. We wish you a very successful event in Accra.

Kindest regards,

HIBAH NOOR Editor-in-Chief hibah@gtrmag.com

6 GLOBAL TRAVEL RETAIL MAGAZINE NOVEMBER 2023

NOVEMBER 2023 VOL 35 · NO 7 Global Travel Retail Magazine (ISSN 0962-0699) is published seven times a year by Paramount Publishing Company Inc. The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or the editor. Novemeber/ December 2023, Vol 35. No. 7. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. Paramount Publishing Company Inc.

GLOBAL TRAVEL RETAIL MAGAZINE Tel: 1 905 821 3344 www.gtrmag.com PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca EDITORIAL DEPARTMENT EDITOR-IN-CHIEF Hibah Noor hibah@gtrmag.com DEPUTY EDITOR Laura Shirk laura@gtrmag.com SENIOR WRITER Alison Farrington alison@gtrmag.com SENIOR EDITOR Wendy Morley wendy@gtrmag.com SENIOR EDITOR Mary Jane Pittilla maryjanepittilla@hotmail.com ART DIRECTOR Jessica Hearn jessica@globalmarketingcom.ca

CIRCULATION & SUBSCRIPTION MANAGER accounts@globalmarketingcom.ca

See you there! Mauritius Duty Free Paradise

At Gebr. Heinemann, we turn travel time into valuable time as the most human-centric company in global travel retail. We are looking forward to meeting you in Accra at the MEADFA Conference. Let’s exchange ideas and shape the future of travel retail! www.gebr-heinemann.com

Contents

WHAT’S INSIDE

22 Top Stories 10 Endless opportunities

Avolta CEO Xavier Rossinyol discusses how the company is in an exceptional position to be the consumer-focused business it aims to be, offering whatever is missing for the traveler at airports around the world

18 Arrive like a local

CEO Dag Rasmussen shares Lagardère Travel Retail’s strategy joining three core business streams and how this model is helping the operator to grow its footprint in Africa

22 From Doha with love

ASSOCIATION NEWS 40 A big year

TFWA World Exhibition & Conference 2023 summary; the travel retail industry sees a record number of buyers and landlords at this year’s show, plus a footprint of 25,212 square meters

42 The time has come

Since it is a main gateway to West Africa, Ghana has been described as an optimal choice for this year’s event; traditionally underrepresented in travel retail, investment in the region is at an all-time high

CATEGORY NEWS 44 Golden opportunity

Thabet Musleh, Senior Vice President at Qatar Duty Free, reveals how the retailer’s passion and drive bring a sense of magic to the consumer experience, resulting in ever-increasing sales

With its unique blend of luxury, style and quality, leading jewelry brand L’azurde offers the duty free channel a winning combination that will help to elevate the category

Features

45 Discovering MYSLF

RETAILER NEWS 14 The main event

Yves Saint Laurent’s new range of men’s fragrance is designed as a true generational statement, reflective of a modern representation of masculinity

Since its inception in 1983, Dubai Duty Free has become one of the world’s top retailers; Executive Vice Chairman & CEO Colm McLoughlin tells Global Travel Retail Magazine how the company is celebrating its 40th anniversary

46 Regional expansion and new horizons

26 Diverse potential

48 The ultimate guide to clean beauty

30 Bringing joy

50 A full agenda

With growth in cruise, wholesale, retail and more, Gebr. Heinemann’s global reach continues to expand; currently, the company’s eyes are focused on the Middle East and Africa

ARI Middle East’s CEO Rob Marriot talks to Global Travel Retail Magazine about the company’s bespoke approach to a dynamic region and its brand campaign “Joy On Your Way”

36 Second act

Upgrading its arrivals and departures stores in Babylon Terminal B at Baghdad Airport and expecting a two-fold increase in sales, Iraq Duty Free switches gears to create a more diverse selection

INDUSTRY OUTLOOK 38 Reinvigorating the market

With the industry having survived a global lockdown and its aftermath, Alex Liu, Managing Partner at consulting firm Kearney, sheds light on what will bring greater success in the coming years

8 GLOBAL TRAVEL RETAIL MAGAZINE NOVEMBER 2023

Dubai-based travel retail specialist, BEAUTE LUXE, builds its legacy in Africa, while laying the foundations for a strong presence in India through its partnership with BEAUTY CONCEPTS

A closer look at Mavala’s newly launched skincare-infused make-up range and position as an educational source for identifying beauty concerns and embracing lifestyle practices

An update on Nestlé International Travel Retail’s ambition to make food the number one most purchased category in the channel, plus brand campaigns, category initiatives and sustainability drivers within its VERSE model

54 Destination travel retail

Renowned in the world of luxury cigars, Habanos is zeroing in on global travel retail; it forecasts that around a quarter of the company’s 2023 sales will come from the channel

56 Indominable spirit

The launch of ultra-premium expression Lex by Nemiroff at TFWA Cannes is a sign of strength for the Ukrainian vodka maker; similar to the country, the company’s will is stronger than ever

Retailer News

Endless opportunities Avolta CEO Xavier Rossinyol discusses how the new company is in an exceptional position to be the consumer-focused business it aims to be, offering whatever is missing for the traveler at airports around the world by HIBAH NOOR

n February of 2022 Xavier Rossinyol was announced as CEO of Dufry. Now, after the partnership announcement of Dufry and Autogrill earlier this year and the subsequent creation of a new brand identity, as of October 2023 he is CEO of Avolta. Rossinyol could not be more excited for the future of travel retail, saying, “We’re in the best business in the world. We combine travel, retail and hospitality. It’s in the human DNA to travel. We are a species that likes to explore and travel in the modern way of doing this.” And Rossinyol does not take this world of air travel for granted. “The vast majority of humanity has never traveled by plane,” he says. “The potential isn’t just good today or for the next six months or even the next five years, but the next 50 to 100 years.” For much of the world this mode of travel is still exciting and new. Passenger air travel is little over 100 years old, after all, and it’s been only approximately 50 years since it became more accessible to those other than the wealthy. A few years back it was estimated that every day in China 7,000 people took their first flight ever. This statistic can be extrapolated to other parts of the developing world as new airports are being built, as incomes rise and as the internet makes the world a smaller place.

When the new brand identity was announced, Xavier Rossinyol, CEO, shared, “We see a great opportunity emerging from the changing traveler and customer expectations and their boosted appetite to travel”

Avolta encapsulates the company’s expanded vision and commitment to innovating the traveler-centered experience with enhanced digital engagement

For its new identity, the company used a branding agency in the UK. The agency was given constant direction for nine months. Store branding will be kept the same as before

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Retailer News

Avolta’s CEO Xavier Rossinyol with GTR Magazine’s Hibah Noor post in-person interview

Customer enchantment

Travel giant

In recent years with its acquisition of World Duty Free Group, Hudson and others, Dufry has grown to be the undisputed giant in travel retail. The “business combination” with Autogrill brings travel F&B into the equation, giving the newly named Avolta an incredible advantage. “The advantage of Avolta today is that we have all the retail power of Dufry and all the F&B power of Autogrill and HMSHost,” says Rossinyol. “Now we can be more adaptive, faster for our customers.” He sees some holes in the current

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offer that Avolta will be ready to fill. “The domestic airports need more F&B,” he says. “In some long-haul transit airports you need much more duty free and luxury shopping because travelers have much more time.” With its new capabilities as Avolta, the company can now offer whatever is needed, ultimately benefitting the consumer. “If you have only one part of the business then you’re incentivized to push that business,” he says. “We can now be much more pro consumers and pro travelers.”

This concept of focusing on the needs of the traveler instead of the needs of the business is what Rossinyol feels the industry needs more of, and he says this is the absolute focus at Avolta. “You can’t organize your business thinking what you want or what you want to purchase,” he says. he says. “We need to think about the traveler and what they need and how they need it. We need to think about how we can make the journey as exciting and rewarding as the destination.” In this industry we often hear about who we are targeting, the income, the generation, how to attract Gen Z or provide more luxury. Rossinyol looks at this differently, saying, “We love all generations, all passengers, all social economic backgrounds. We need to adapt to what they need.” Both the challenge and the beauty of this industry, according to Rossinyol, is that every traveler is different. “We need a lot of investment in getting data and information and really understanding the passengers even before they fly,” he says. “Avolta is in 75 countries with 5,500 POS.

Dufry’s new identity was unveiled in front of hundreds of VIP guests during the week of the TFWA World Exhibition & Conference in Cannes last month

We will have exposure to 2.3 million PAX this year. We are the most global company. We have more consumer insights than anyone else in the world. We know about the use of devices and the span of attention the way people experience travel.” Rossinyol also comments on the need for flexibility. “If you design a store for the next 10 years you’re going to fail. I wish we could reconfigure a store every two hours to cater to our passengers.” He says store design must have the capability of being changed several times per year, and that the role of digital is to offer support, “We need to understand the physical location and our salesperson will make the difference.” Creating an atmosphere that the traveler enjoys makes their passage more pleasant and it creates an atmosphere where they are more likely to shop. “It’s not the traveler’s job to buy, it’s our job to enchant them,” says Rossinyol. “If passengers enter a pleasant place, where there is something entertaining to you and for the kids, and someone speaks nicely to you or offers you a sample of a perfume,

your mood completely changes.” Once the traveler is relaxed, more focused and in an improved mood, then that traveler becomes a potential customer.

Growing where you are

For Rossinyol, growing business isn’t necessarily about expanding into new territories; rather, it can be about the company expanding its offerings where it already operates. “We can grow our existing businesses in the places that we are,” he says. “We don’t have our three businesses — duty free, duty paid and F&B — everywhere.” In this respect, the merger has offered all but endless opportunities for Avolta. Rossinyol sees strong potential in most regions, to satisfy different needs. “We are leaders in the Americas and EMEA. Asia Pacific is where we can grow the most, but Latin America and North America are places of opportunity.” While he calls Asia Pacific “a big game changer,” he adds the potential in the Middle East and Africa is “massive” saying, “I think growth in MEA over the next 20 years is going to be faster than in

others. This region is as big as China. The difference is that it’s not one country but 50 countries.” The issue for the retailer in this region will be finding countries with the right political stability. It will also take some time to learn the local trends. “Africa has some global trends but then some that are exclusive to Africa and to the specific country. But in places with more tourists sales will be driven by international travelers that would have a similar profile as they would have in Europe,” he says. “This also depends on the age of the population. The younger generation sometimes are not different around the world because of the digital engagement.” Some of the smaller airports in Africa offer more opportunity because they currently have little to offer the traveler. “We don’t have F&B in Africa yet,” says Rossinyol. “Africa has huge potential, but they have smaller airports. In small airports they don’t offer everything, or the offer is very fragmented. At Avolta we offer a one-key solution adapted to the size of the airport, where we can have duty free, duty paid and F&B.”

www.gtrmag.com GLOBAL TRAVEL RETAIL MAGAZINE NOVEMBER 2023 13

Retailer News

The main

event Since its inception in 1983, Dubai Duty Free established itself as one of the world’s most important travel retailers. Executive Vice Chairman and CEO Colm McLoughlin tells Global Travel Retail Magazine how the company is celebrating its milestone 40th anniversary by HIBAH NOOR

ubai Duty Free will be celebrating its 40th anniversary this year, and with each passing year the retailer continues to grow. During the first seven months of 2023 compared to the same time period in 2022, Dubai Duty Free saw a 34% increase in sales, reaching US$1.23 billion. As of writing, that figure had climbed to US$1.33 billion, which is 32.59% higher than the same period last year and 7.63% higher than pre-pandemic in 2019. Executive Vice Chairman and CEO Colm McLoughlin states that he is positive the retailer will meet its target of AED7.5 billion — over US$2 billion — by the end of the year.

Top categories

The top five categories at Dubai Duty Free tend to be dissimilar to those in most travel retailers, especially with the inclusion

Dubai Duty Free’s executive dream team

14 GLOBAL TRAVEL RETAIL MAGAZINE NOVEMBER 2023

Colm McLoughlin, Executive Vice Chairman and CEO, Dubai Duty Free

of gold, which is a big seller for the retailer. McLoughlin says the top five categories so far in 2023 are perfumes, liquor, gold, cigarettes & tobacco, and electronics. In numbers, perfumes sales reached US$219 million, representing a 26% increase. Sales of liquor were up by 20% at US$189 million, while gold sales increased by 30% over the same period last year, with sales amounting to US$129 million. Cigarettes & tobacco increased by 35% with sales totalling US$125 million, while electronics came in fifth place with sales of US$106 million, representing a 39% increase.

Millennium Millionaire and Finest Surprise

The Dubai Duty Free Millennium Millionaire draw, which began in 1999, continues to grow in popularity, as does the Finest Surprise promotion. “More and more participants are purchasing tickets both in store and online,” says McLoughlin. “One factor in its steady growth can be attributed to the trust and confidence of our customers in the promotions. This behavior reflects the significant progress in ticket sales, with an increase of 12% compared to the 2022 sales figure.” Another reason for the continued growth of these contests is Dubai Duty Free’s use of digital marketing tools, email campaigns in particular, says McLoughlin.

Dubai Duty Free believes that it will meet its target of AED7.5 billion — over US$2 billion — by the end of the year in time for it’s 40th anniversary

Retailer News

Leading up to the anniversary day, Dubai Duty Free will offer a host of activities to create excitement

“As one of the most strategic digital tools, Dubai Duty Free uses email communications with over 377,000 records in its database. The email campaigns greatly help to increase online sales, which represent 64% of overall Millennium Millionaire and Finest Surprise ticket sales. The average daily online sale is US$82,000.” According to McLoughlin, email marketing boosts sales by 200% to 300%. “As an example, the email to promote Millennium Millionaire Series 426 in June this year drove over US$300,000 in sales in less than a day, which is triple compared to average daily sales on regular days,” he says.

40th anniversary promotions

In December of this year, Dubai Duty Free will celebrate 40 years in business, and it is not marking the landmark anniversary quietly. McLoughlin says, “Plans are in place to make our 40th anniversary a memorable occasion.” The celebrations will feature a series of promotional activities involving customers, suppliers, and staff, as Dubai Duty Free’s way of saying “Thank you for helping us reach this milestone year.” On the day, a wide range of merchandise will be offered at a 25% discount; this promotion will continue for three days, from midnight on December 17 until midnight on December 20. McLoughlin states this is an annual celebratory event for passengers traveling through Dubai International and Al Maktoum International. With the exception of gold, electronics and select fashion brands, this three-day 25% discount applies to all major categories, including the Dubai Duty Free Millennium Millionaire and Finest Surprise tickets. Shoppers do not have to visit the airport to receive this discount, as it also applies to online shopping — 16 GLOBAL TRAVEL RETAIL MAGAZINE NOVEMBER 2023

using Dubai Duty Free's Click & Collect service and Dubai Duty Free's Home Delivery service — available to UAE residents. Dubai Duty Free will run a special “Shop & Win” promotion, where customers who spend a minimum amount will have the opportunity to win gold with a 40th anniversary mark. “There will be 40 winners per week over four weeks,” says McLoughlin. “We have worked closely with our suppliers to create a range of products and promotions that would link their brand exclusively with this milestone event,” he continues. “Currently we have over 25 products lined up from major categories such as liquor, perfumes and cosmetics, cigarettes and tobacco, gold, confectionery, and delicatessen.” A special range of merchandise and corporate gifts will also mark the anniversary, and the Finest Surprise luxury car promotion will feature a special Bentley.

The lead-up and anniversary itself

Leading up to the anniversary day, which is December 20, the company will offer a whirlwind of activities to whip up excitement. These include fun activations on social media, with CGI video content as one example. Dubai Duty Free will invite print and online coverage in various trade publications and key UAE media, and it will hold a black-tie gala. The company commissioned a high-profile celebratory publication from The Moodie Davitt Report, with distribution to multiple audiences in print and online. This publication will showcase highlights of the Dubai Duty Free story so far and look ahead at what’s to come. “We have also negotiated a series of anniversary day supplements with different trade publications and key UAE media to coincide with the anniversary date,” he says.

An Irish radio station, Clare FM, will create a podcast documentary capturing Dubai Duty Free’s history and four decades of retailing success, with the support of the retailer. “On the anniversary day itself, December 20, Dubai Duty Free will ensure a party-like atmosphere throughout the retail operation, including a celebratory cake cutting, a Millennium Millionaire and Finest Surprise draw, and a staff surprise draw,” says McLoughlin. Finally, as the anniversary draws to a close, Dubai Duty Free will host a “glittering” gala as a “thank you” to those who have contributed to the company’s success. McLoughlin says, “It will be an evening of celebration with entertainment and fine dining that is sure to take you down memory lane.”

He also attributes his success to his business values, represented by an adage learned from his father: “‘Keep your feet on the ground, act normal, treat people well, and you’ll be rewarded tenfold.’ And I think that is true. The right attitude will always carry you far in business,” he says. After 54 years, has McLoughlin had enough? “As I usually tell people, I haven’t finished the job yet,” he says. “At 80 I still enjoy going to work and get huge satisfaction out of it. I have enjoyed very much what I have been doing, and I am enjoying very much the fact that Dubai Duty Free continues to grow. There are no strict rules about retiring. I talk to myself about it every year, and then I let it pass for another year.”

54 years in the industry, 40 with Dubai Duty Free

After 40 years of continuously growing success, McLoughlin says of the coming era, “I think the future is going to be terrific. Dubai Duty Free is a brand that continues to excel and grow, one of the most trusted and recognized in the UAE. Even after 40 years, we are constantly looking at our retail offer at Dubai International and Al Maktoum International airports, enhancing it, and pursuing innovation and sustainability. We always seek a more forward way of thinking and seek to improve our service to our customers.” As the population of Dubai is forecast to reach five million, McLoughlin says his forecast for Dubai Duty Free 10 years from now would be annual sales of about US$3 billion with 7,000 to 8,000 staff members, and possibly another hotel. “We already own one hotel, and we already own a tennis stadium. We are currently looking at probably enlarging that and upgrading our tennis tournament. Within our tennis stadium, we have several restaurants, including The Irish Village. We have two outlets now in Dubai, we might have more!”

The term “industry veteran” doesn’t begin to cover Colm McLoughlin’s stellar career. With 54 years in duty free under his belt, he has been with Dubai Duty Free since its inception. “Forty years ago, in 1983, I never visualized for one second that I would be here 40 years later, and I feel very privileged to be so,” he says. “Although I never expected my tenure to be so long, I’ve been thrilled by the success. I feel very fortunate that I was given unbelievable trust to head up this organization and carry it through. And now, coming up to the 40th anniversary, I reflect very positively and honestly. I don’t regret one minute of my time here.” McLoughlin does not want anyone to get the impression that he created this retail giant alone, however. “The growth and development of Dubai Duty Free are due to several factors, not least of which is the tremendous support I have receive from H.H. Sheikh Ahmed bin Saeed Al Maktoum, who is a superstar,” he says. “Also, I praise all our 5,200 staff, who were the best in the industry, and lastly, I thank my wife Breeda and my family for their support down the years.”

The next 40 years

The Dubai Duty Free Millennium Millionaire draw began in 1999 and continues to grow in popularity www.gtrmag.com GLOBAL TRAVEL RETAIL MAGAZINE NOVEMBER 2023 17

Retailer News

Arrive like a local CEO Dag Rasmussen discusses Lagardère Travel Retail’s new strategy joining three core business streams, and how this business model is helping the operator grow its footprint in Africa

by ALISON FARRINGTON

agardère Travel Retail is on a mission to crack underserved markets with hybrid and localized concepts in new key locations such as West Africa and Northern Spain according to CEO Dag Rasmussen, who tells Global Travel Retail Magazine about the importance of flexing the company’s three business lines to fit the location. Newly inked partnerships with Tastes on the Fly, Time Out Market, Marché and an expanded collaboration with Inflyter mean Lagardère Travel Retail is both bolstering its foodservice operations and joining the dots for a digital strategy that functions between its three core business streams: duty free, foodservice and traveler essentials. But it’s what these elements bring

Dag Rasmussen, CEO, Lagardère Travel Retail with GTR Magazine’s Alison Farrington

18 GLOBAL TRAVEL RETAIL MAGAZINE NOVEMBER 2023

collectively and holistically to the traveler experience that will impact future growth, says Rasmussen.

Holistic approach

Lagardère Travel Retail recently won the tender to operate master concessions at six of Aena’s Northern Spain airports: Bilbao, Santiago de Compostela, Santander, Asturias, Vigo and La Coruna. This will give the retailer a foothold in the Spanish duty free market for the first time. Rasmussen explains there are two main elements with the new concessions in Spain. “The first is that it's a master concession, which means we will be operating all three business lines. It's not only the duty free, it's also foodservice and travel essentials. This is really something which resonates, it will allow us with Aena to create something truly holistic for the future. “Our customers buy across stores at the airport, and we want them to have this holistic experience that has a more local appeal. It's a great playground because we have six airports where we will have this master concession. It's relatively small in terms of duty free, but we have the other two business lines which creates a great network – it’s a key area for development.” With this new Northern Spain foothold, Lagardère plans to dial up its sense of place strategy. “Thanks to our local Spanish team, we want to enhance the sense of place at these locations. I often take the example of Palermo, in Sicily, where in the duty free store 60% of sales come from products made in Italy. And when we opened in Catania, which is also in Sicily, it's a different offer, specific to this very city, so we have this contrast, this strategy of being very different,” he explains. Rasmussen’s strategy for Spain is to differentiate the offer between the new footprint of stores, but keep it authentic. “Some will be similar obviously, but it needs to be local and authentic; if you have the same store over and over again, you get bored and when you're bored you don't tend to spend,” he adds.

Bilbao Airport is one of the six new Aena tenders won by Lagardère Travel Retail in Northern Spain

Lagardère Travel Retail will expand in West Africa with a master concession agreement at Cotonou International Airport, Benin

“It’s a hyper-local approach, but it’s basically the same region. We're starting now with the takeover of the duty free stores in November and December and the foodservices will come progressively at some airports; it depends on the end of the existing concessions.”

Advanced digital service

Another opportunity to talk “holistically” to the traveler is via Lagardère’s newly expanded partnership with digital platform Inflyter, which is now operational across eight key European hubs: Geneva, Rome, Nice, Warsaw, London Luton, London City, Luxembourg and Prague. The partnership, initiated in 2021 during the pandemic and upgraded in July, has been a test for new innovative ways to engage customers. It is now entering into a new phase as traffic has returned. In advance of traveling, customers passing through these airports are now able to browse the full catalogue of duty free items in core categories, using the Inflyter e-commerce platform.

“Inflyter is a very important tool to allow us to take away some of the decision-making – say for food or wine purchases – for customers who might find the choice intimidating. “This kind of digital tool is becoming critical; it helps our staff become more relevant because depending on the origin of travelers, some people prefer to be helped by staff and others prefer to be left alone. So, we are very glad to have access to tools that give our customers something different but without the same type of service,” says Rasmussen. He notes the Inflyter partnership adds value in terms of pre-order opportunities, “to leverage CRM in how we approach customers before they travel.”

F&B partnerships

Lagardère is committed to investing in its foodservice division and new F&B brand partnerships such as Marché, Time Out Market, as well as its new Tastes on the Fly acquisition. This will help to boost the retailer’s overarching hyper-local strategy in key locations. www.gtrmag.com GLOBAL TRAVEL RETAIL MAGAZINE NOVEMBER 2023 19

Retailer News

The Time Out Market acquisition will provide an opportunity to roll out street food combined with media promotions at key airport locations

The retailer is committed to investing in its foodservice division and new F&B brand partnerships such as Marché

Both Marché and Time Out Market are international foodservice concepts, but bring the local element to Lagardère Travel Retail’s F&B offer at a time when passengers are demanding this attention to detail for dining options. “Time Out Market is obviously a brand we believe in very strongly, and the media element is a great fit for airports. It's a great way to partner because the concept is all about the consistency of the hyper-localization theme — the company sources the best local brands and brings them to the airport as one package,” explains Rasmussen. “Now that we have acquired Marché as well, this can be a compliment to existing offers,” he adds. The company wants to grow the retail footprint for Marché, which is currently mainly in Europe and Singapore, in line with the natural F&B trend, which can add a lot of potential. In addition, North American food operator Tastes on the Fly was welcomed into the Lagardère foodservices operation in September 2023. Further to acquiring the US specialist with its five-airport portfolio of stores, Rasmussen says roll out plans are being finalized and the market-style approach of mixing food and retail is a perfect fit for Lagardère’s growth strategy.

owned company, and will be managed through a joint venture company, Lagardère Travel Retail Keyla, which is co-owned by Lagardère Travel Retail and local partner Keyla Distribution. The commercial offer, slated to open in 2024, will comprise of arrival and departure duty free stores, a convenience store and a dining area. The F&B concept includes a central IROKO bar which calls upon the famous Beninese sacred Iroko tree for cultural inspiration. This new location for Lagardère will open with several stores across the company’s three business lines. It joins the retailer’s other operations in West Africa at airports in Gambia, Senegal and Mauritania, as well as Gabon and Tanzania. Opening in Benin is an opportunity for Lagardère Travel Retail to continue to support local communities, says Rasmussen. “With the new operations in Benin, we want to offer the latest retail concepts and furniture, while offering employment to local people to run the stores and concessions. We have a strong local team to work with the communities to bring their food and artisan craftsmanship to life at the airport. That’s the plan – the region is getting more sophisticated, and it will be interesting to hear more about it at the MEADFA Conference.” Working alongside a local distribution partner is key for future growth in Benin adds Frédéric Chevalier, COO EMEA & Chief Transformation Officer, Lagardère Travel Retail, “We look forward to helping raise the shopping and dining experience through our unrivalled holistic approach to passenger needs. By working closely together with Keyla, we want to support SAB in raising its standards of excellence and appeal to international travelers. We have significant growth ambitions for our operations on the African continent and these new operations in Benin will continue to consolidate our position as a leading international travel retailer in the region."

Africa expansion

Lagardère Travel Retail has increased focus on expansion into Africa, according to Rasmussen, who says the region’s low singledigit PAX growth forecasts belie the real potential here. “When you look at the 2% to 3% passenger growth forecasts, it doesn’t really reflect the true potential of this region. We have just closed on a deal to operate the master concession in Benin, at Cotonou International Airport, the main airport that serves this growing country flanked by Togo and Nigeria in West Africa,” he says. The operations at Cotonou International Airport are in partnership with Société des Aéroports du Benin (SAB), a state-

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Retailer News

FROM DOHA

with love by HIBAH NOOR

In business we always talk numbers, and numbers are important. But for Qatar Duty Free Senior Vice President Thabet Musleh, numbers are the inevitable conclusion to his team’s passion and drive. It is this passion and the company’s high standards that bring a sense of magic to the customer experience, and it is the successful creation of magic that results in QDF’s ever-increasing sales

Qatar Duty Free Senior Vice President Thabet Musleh

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his year marks a new era for Qatar Duty Free; in recognition of its own growth trajectory, the operator has appointed two new senior executives to its leadership team. Grant Fleming joins the business as Vice President, Food & Beverage and Nuno Moreira as Vice President, Strategy & Commercial. Both report to Thabet Musleh, Qatar Duty Free Senior Vice President, and both are now based in Doha.

Musleh states that with the tremendous growth QDF has seen over the past three years, it is time to bring in some talented people to help continue that growth. “I think with Grant and Nuno, we’ve got two amazing guys who will come in and take QDF to the next level,” he says. “They are not going to be the only two; there will be more additions to the team in the next couple of months. This is about growing the business. We will continue to invest in the people we’ve currently got, and we will continue to go out and look for talent, because QDF’s standards are high. And that standard also encompasses our people.” Musleh has yet to announce the next F&B outlets, though more are certainly on the way. “Based on the great work that we’ve done and the recognition that

Although the airport is located in the Middle East, this is not QDF’s market. QDF says 85% of the retailer’s business comes from Asia, the UK and the Americas, and they therefore market globally rather than locally

over competitors.” QDF is the first retailer in the industry to receive awards for their F&B and retail. we’ve received being ‘Airport of the Year’ for F&B from The Moodie Davitt Report, it’s about how we maintain it and how we continue to grow,” he says. “QDF prides itself on being a dynamic business that always evolves. We always look at what we do and how we can do it better. Now it just means we’ve got more eyes looking at these opportunities.” Thanks to its business model working with QDF, Doha Airport — recognized by Skytrax as having the World’s Best Airport Shopping in 2023 — has become a true shopping destination. For this reason, travelers are making a point of choosing HIA as their transit airport, and Musleh’s team is able to see this clearly. “As part of the trinity model we get access to which routes people are booking, and we can see we are gaining market share

Truly something for everyone

While luxury dominates the conversation in travel retail and QDF does indeed have a superior luxury offering, for this operator, it’s important to offer something for everyone, not just the wealthy tourist or business traveler. “Unfortunately, the luxury segment tends to get a lot of coverage, more than the non-luxury segment,” says Musleh. “But we have something for everyone.” This thinking extends from the airport’s retail offer to its F&B outlets. “We have Chapati from US$2 a meal to our US$500 degustation menu in Louis Vuitton,” says Musleh. “In retail we have perfumes for US$20 and a perfume we’ll be launching soon, which is €140,000 (US$148,000). This year alone we opened the brand-new Coach store and the

brand-new Michael Kors store. And as an exclusive he shares, “in Q1 next year we will open a new Lacoste store. We’re also working on the sunglasses category. So, we really do have something for everyone, and I don’t think there are many other airports out there in the world that have the same.”

Global marketing

Although the airport is located in the Middle East, this is not QDF’s market. Musleh says 85% of the retailer’s business comes from Asia, the UK and the Americas, and they therefore market globally rather than locally. “It’s really important for us how we market the business in these home destinations to share with people that we have something for them when they transit through Doha,” he says. For these global marketing efforts, QDF is working with influencers, with a focus on social media. Musleh says that while many people see social media as a

www.gtrmag.com GLOBAL TRAVEL RETAIL MAGAZINE NOVEMBER 2023 23

Retailer News can tell you is far more valuable than any report they could show you. The challenge we have today is that as the business has gotten bigger and bigger, just keeping up with everyone’s names is challenging, but I don’t forget faces.”

Where the magic happens

QDF’s Thabet Musleh with GTR Magazine’s Hibah Noor during an interview at TFWA World Exhibition & Conference

threat, he sees it instead as a facilitator. “I believe the team is using Instagram, Snapchat and Facebook.” Brand ambassadors are another important marketing tool for the retailer, “We have ambassadors working for us who use the product, talk about the product and then engage with the product,” he says. QDF even brought some of these ambassadors to Cannes. These ambassadors walk around the event and post to social media, getting their followers and QDF customers excited and involved. “We work a lot with global influencers, be it from Asia, from the UK, from America and South Africa — directly and indirectly.” While these influencers and brand ambassadors undoubtedly reach a younger audience, for QDF it’s not about the age. The “Millennial” was the target for travel retail marketing in years past and “Gen Z” is the new target, but this is

not the case for Musleh. “We don’t look at Gen Z, we don’t look at Gen X, we don’t look at Gen Y. We look at travelers. Every traveler has a need, and we look at how we fulfill that need. Simple.”

Talking with staff

Earlier this year, Musleh told Global Travel Retail Magazine that he walks the shop floor at least once or twice every day. If this sounds like he’s simply playing his role as SVP, this is far from the case. Rather, he is looking at how the experience is as a customer. “I look for products, I look for cleanliness, how the shops are laid out. More importantly, I talk to the staff,” he says. “The staff are the most important in any business. And spending two or three minutes a day with somebody in liquor who knows what they’re talking about is better than spending two or three hours looking at reports. The information they

One of QDF’s recent openings include a new Dolce & Gabbana boutique; the retailer will have more large openings in coming months

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Little makes Musleh as happy as when he sees customers enjoying experiences in the stores, because that is the goal. “That’s what we live for, that’s what we wake up every day to go out and do. When I see that in real life, I love it.” When asked for a story to illustrate this, Musleh says he has “millions” of stories, but adds that it is not about one story. “By giving you one story I’m identifying one piece of magic,” he says. “I’m really proud to say that magic happens 100, 200 times a day in our shops. We have a “no hard sell” attitude, so if customers come in and don’t find what they’re looking for, it’s fine for them to walk out without buying. If you force them to buy something and they regret it then they never come back. It’s all about giving great customer experience.” After nine years with the company and 20 in the industry, Musleh is driven by love. And he is driven by the recognition that so many of his colleagues feel the same way. “I love my company. I love the people I work for. I love the people I work with. And that’s what drives me every morning. When I wake up and I know that we’ve got a great team, a great company, a great organization, that gives me the energy to do what we do every day. I’m one of 5,000 people. I’m really proud that I’ve got a lot of people that feel the same way because I see it in their behavior and I see it in what they do day in and day out.”

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Retailer News

Diverse potential

Gebr. Heinemann’s global reach continues to expand, with growth in cruise, wholesale, retail and more. Currently, company eyes are turned to the Middle East and Africa, among other regions, where opportunities abound by HIBAH NOOR In Istanbul, Gebr. Heinemann and its JV partners offer everything from a single source, managing the center and operating the stores

ith a consistent flurry of announcements, in recent years Gebr. Heinemann has grown significantly in its locations, channels and ventures around the world; whether in joint ventures or on its own, the Hamburg-based multi-generational company operates clear around the globe. Currently, its collective eyes are set, among other regions, on the Middle East and Africa, which Bernard Schlafstein, Gebr. Heinemann Director Sales Middle East and Africa, describes as “booming, with great potential.”

“Countries in this region are transforming their economies and becoming more important as business travel destinations,” Schlafstein says. “We will continue to grow in this area and are open to different business models in airports, border shops, wholesale and more.” Gebr. Heinemann is already present in the Middle East, where many of the company’s most important business activities are currently taking place in Istanbul and Tel Aviv, according to Schlafstein. In Istanbul, Gebr. Heinemann operates with its joint venture partners Unifree and ATÜ. This location offers a good indica-

Bernard Schlafstein, Gebr. Heinemann Director Sales Middle East and Africa

tion of how well the company operates in partnerships, and also how it can traverse across different operating models. “The special feature of the Turkish hub airport, which opened in 2019, is that we, together with our partners, offer everything from a single source,” says Schlafstein. “We take responsibility for center management, as well as operating retail shops with international and national brands of outstanding quality. All categories are covered, a high level of service is guaranteed, and logistics as well as promotions are organized.”

Middle East commitment

Wearing one of its many supply chain hats, Heinemann is the main distributor for Mauritius Duty Free Paradise

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Gebr. Heinemann has underlined its commitment to the Middle East region by opening an office in Dubai in October of this year. “This will allow us to be even more responsive to the market and to be directly available to deal with enquiries, especially when it comes to supplying key

Retailer News

accounts,” says Schlafstein. In addition, Gebr. Heinemann’s cooperation with Cruise Saudi has now begun, with a retail offer on board that includes a wide range of products from categories such as perfume & cosmetics, confectionery, fashion & accessories and watches & jewelry. When the cruise liner Aroya sets sail next year, the travel retailer will operate a total of six stores on the new cruise ship.

Sustainability

Elsewhere, the concept of sustainability is becoming increasingly important in the MEA region, as reflected in the MEADFA program. “Companies need to find answers to customers’ increasing demands for sustainability in retail,” explains Schlafstein. “We have the necessary expertise and, together with our partners, we want to provide the necessary impetus.” This multi-generational, family-owned company has already established a way of thinking that will lead to success in this area, as its business plans always include the next generation rather than the next few months or years. “Sustainability is therefore an integral part of our corporate strategy,” says Schlafstein. “We can offer solutions in this area, for example in the area of supply chain, products or other topics.”

Luxury

In the Middle East, liquor & tobacco and perfume & cosmetics are the top categories, according to Schlafstein, who says the categories fashion & accessories and watches & jewelry are also growing

strongly. “The success in MEA is strong in these categories because Asians are an important target group together with passengers from Arab countries and Europe,” says Schlafstein. “Luxury and exclusive brands are increasingly appealing to travelers in the MEA region. And as part of our spectacular assortment, we have ever-changing offers that are exclusive to travel retail.” Schlafstein adds that the company is bringing local brands and a sense of place to the stores. This reflects the airports’ desire to differentiate themselves and become more recognizable to travelers. “Local brands can play an important role in this, although they are not the main drivers of sales,” he says.

Africa potential

MEADFA has chosen well by holding its conference in Ghana this year. Now, more than ever, the industry is opening up to the potential on this continent, and Gebr. Heinemann is no exception. “As far as Africa is concerned, we are convinced that the market for travel retail is opening up and offers enormous potential,” says Schlafstein. “In many cases, we work together with local partners. In this way, we combine local expertise with sound know-how in travel retail. We as Gebr. Heinemann see many opportunities and we are already moving full steam ahead to develop this region. This development is a matter of concern for the entire company.” According to company estimates, the annual market growth in the region is in the double-digit percentage range. Travelers in the region value the opportunity to

Travelers shopping at the airport in Angola value the opportunity to find international brands and appreciate the guarantee of being able to purchase original goods at duty free prices

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find international brands and appreciate the guarantee of being able to purchase original goods at duty free prices. “In Africa, we are of course pursuing our strategy of channel diversification,” he says. “We plan to grow as a retailer, in wholesale, with the border shop business and with innovative business models.”

Large and diverse

Throughout the world, “Africa” often gets lumped into one pot as if the continent did not have different countries, cultures and challenges. For Schlafstein, this diversity makes local partnerships especially important. “When we talk about the Middle East and Africa, we are talking about almost 60 countries,” he says. “It’s an enormously diverse region with very different challenges. That is why we value the local expertise of strong partners and are open to partnerships in different models — as a wholesaler or in joint ventures.”

MEADFA

Gebr. Heinemann and Heinemann retail are both Gold sponsors of the MEADFA Conference this year, as strong supporters. “There is no doubt that MEADFA is extremely valuable to our industry as it provides the opportunity to learn about upcoming developments and to network with peers and partners,” says Schlafstein. He adds that the company welcomes the conference’s chosen location. “Africa undoubtedly offers a lot of potential for the travel retail market, so we very much welcome the fact that the conference is being held in Accra. This highlights the importance of Africa without diminishing the importance of the Middle East.”

Retailer News

Bringing joy ARI Middle East’s Rob Marriott talks to GTR Magazine about the company’s bespoke approach to a dynamic region and its new brand identity campaign: Joy On Your Way by ALISON FARRINGTON

ARI Middle East’s Chief Executive Rob Marriott has seen a lot of growth in ARIME and the region itself in the past three decades

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ARIME’s focus on luxury categories such as jewelry in Bahrain Duty Free is part of its bespoke approach

RI Middle East (ARIME) has just celebrated its 30th anniversary and for ARIME’s Chief Executive Rob Marriott, that three decades have passed since its first location opened in Bahrain showcases just how much the company has grown in line with this fast-paced region. After taking up the group role 18 months ago further to his role as CEO at Muscat Duty Free, Marriott says he has learned quickly that the Middle East is a very dynamic region. “It moves at tremendous pace, and we need to move with it, in order to accommodate the constantly changing passenger profile.” ARIME has ventures in Bahrain, Cyprus, Lebanon, Oman, Qatar and Saudi Arabia. It’s an impressive regional stronghold and each location represents its own opportunities for growth and investment potential. “Each location is different. It’s a bespoke ‘by business’ operation, and we need to make sure the offer is right in each one,” says Marriott. “ARIME operates a collaborative partnership model, and each of our stores and partnerships is tailor-made; one size certainly doesn’t fit all.” In ARI’s most recent trading update for FY2022, the Middle East region delivered strong results following a solid overall performance for 2021. The Bahrain business traded ahead of forecast while the Riyadh T5 operation performed well, with the domestic terminal faring better than the international terminal during the pandemic, due to the international travel restrictions. Marriott says he is cautiously optimistic about the end of year performance, “2022 was a good year to rebound and 2023 is shaping up to be double digits ahead. I would hope to be back to 100% of pre-pandemic sales for 2023, but we have some way to go.”

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Retailer News

The wide aisles and luxury offer make for a premium experience at Bahrain Duty Free

Bahrain focus

Bahrain Duty Free recently opened a new store location focused on the region’s best-selling travel retail brands and exclusives. “In July, we opened a new liquor & tobacco store, to make it easier for passengers going into the lounges not to miss the retail experience. It’s an amazing facility there and now the retail offer is more easily accessible,” he says. “Retail space here is at a premium and it’s great to see that brands are investing in activations again,” says Marriott. We keep adapting and brands are showing more confidence; we are ensuring that there’s a return for them too. Yes, there have been challenges post-Covid, but brands are on the front foot again, they want to support their business in this region which is so dynamic.”

New space in Abu Dhabi

Marriott is excited about the opening of Abu Dhabi’s new terminal, and with good reason. The 742,000 square-meter Terminal A is expected to open in November of this year, enabling the airport to service 45 million PAX annually. This new terminal, which will feature an array of world-class amenities, will have 163 retail and F&B locations. “The Middle East is always exciting; there’s lots coming to market,” Marriott says. Sense of place has become increasingly important in the travel retail atmosphere, and ARIME has ensured passengers will notice it. “Passengers feel as if they’re in Abu Dhabi, from the sense of place, the beach, the ocean etc. It’s the newest, most luxury example of what we can do here. The space allows us to give a full offer across those categories – all the main brands want to be there. It’s a major opening and will be a world leader for its proposition.”

New branding

ARI recently launched its new brand identity campaign, which celebrates, expresses and attempts to elicit joy. “We’ve just rolled out our new ARI brand supported by an emotive expression of ‘Joy On Your Way,’” says Marriott. “Our new brand framework and strategy will deliver clarity, cohesion and consistency across the ARI estate. It marries our strategic ambitions, vision, mission and customer value proposition (CVP). ‘Joy’ is an uplifting mes-

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sage; it’s the glue that combines all the elements of our business under one framework.” Marriott has found meaning in this brand message on a professional and personal level. “For me it’s the cultural piece that shows a global attention to detail. How do you make sure the passenger flying to the Indian sub-continent at 2am from Oman Airport has the best experience, compared to another passenger traveling at 10am when everyone is around? It’s a cultural approach to experience, delivered through joy.”

Value for customers

Marriot says ARIME is focused on making authentic and emotional connections to its customers through a bespoke approach, and not just a homogenous one. “To this end, in 2020 we constructed our new customer value proposition, which includes principles such as value, convenience, gifting solutions, brand range and, importantly, bespoke concepts and sense of place.” With over 70 initiatives around the world, the company has worked hard to deliver over the last 18 months and the teams are now in the process of evolving ARI’s value proposition. “We identified areas where we can do more, do better, enhance our engagement across every touchpoint, from before people travel to online to in-store to point of payment and after-sales service too. It’s about engaging better or in new ways.” New brands are coming to market and Marriott affirms the priority of taking the opportunity to showcase them as soon as possible. “We are very excited to be getting new beauty bands such as Charlotte Tilbury,” he says. “Anything that our customers want is what we aim to get for them. Some are very clear they want to come in for a special product or others want guidance. It’s about giving them an informed decision. This is where personalization techniques such as gifting, engraving stations or brand activations, such as Toblerone’s named sleeve, allow us to give a bit of extra joy to their experience. Our mantra is giving something you can’t get elsewhere, delivering the wow factor, offering a personalized service. It all adds to the overall experience.” Marriott adds that liquor remains an integral part of the business. “It’s very fast moving. We are sensitive to the trends of the region and that means working closely with our brand partners,” he says.

1 million shade trees distributed to cocoa-farming families*

*In 2022, Nestlé Cocoa Plan distributed over one million forest and fruit trees to farmers, supporting biodiversity on cocoa farms.

Retailer News

Digital progression

Personalization also means a digital approach that is constantly evolving in line with the passenger. “ARI has a very strong ecommerce offer focused on beauty, liquor, fashion and accessories – online shopping that adds value for the customer,” says Marriott. “The ‘Joy On Your Way’ theme is all about that personal and value approach.” In keeping with the bespoke concept the company manifests, Marriott says the Middle East behaves differently to Europe and digital plays such an important part in capturing the regional culture. ARIME is investing in more digital solutions from social media to new platforms. The company has recently set up a new digital centre of excellence in Ireland. “This is the base to understand what the full opportunity is for us across all our different locations at ARI,” explains Marriot. “We are also looking at our Shop and Collect, Shop and Go services, leading in what we offer for our passengers looking for that convenience. We know that arrivals is more successful than departures and it’s helping us to learn from these insights and plan for future locations. Also coming soon is Delivery to Seat — these processes are easier to navigate where we’ve got partnerships with airlines.” Marriot says ARI is always looking ahead, identifying what the new generation of customer wants, “So for Gen Z and millennials, we need to adapt in each segment, giving them the offer they want. Whether it’s digital promotions when they get near the airport or more cohesive thinking with our partners, ultimately, it’s about getting our customers to understand how much more they can do with us. We want to bring joy across the whole traveler journey by joining the dots.”

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NEW GM, TR SALES AND SERVICES

Adrian

As Abu Dhabi’s new terminal Bradshaw, General inches closer to opening, ARI Manager, has chosen a new GM to head TRSS a new joint venture between ARI Middle East (ARIME), and local partners, Travel Retail Sales and Services (TRSS). Adrian Bradshaw has been announced as General Manager, TRSS, which will operate the perfume, cosmetics, jewelry and sunglasses categories at Terminal A. Bradshaw will assume his new role later this year. Bradshaw comes to Abu Dhabi directly from his role as General Manager, Beirut Duty Free; before that position he held senior roles at ARI and elsewhere, including Alshaya Group, Marks & Spencer, and as Senior Vice President at Qatar Distribution Company. In a recent release, Rob Marriott, CEO of ARIME, welcomed Bradshaw to the role, expressing delight in the appointment and confidence that he would continue to drive growth in this position as he has in Beirut. At the announcement, Bradshaw stated his feeling of privilege at being offered the position. “As General Manager of ARI’s newest operation in Abu Dhabi at such a pivotal time for the business, I look forward to immersing myself in this exciting new venture and unlocking the huge potential that awaits. I would like to take this opportunity to thank my exceptional team in Lebanon. Their dedication and brilliance have been instrumental in our shared successes over the last number of years,” he stated.

Partnerships with major spirits brands are a key offer for ARIME’s stores at Cyprus Airport

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Retailer News

A look at Babylon Terminal at Baghdad International Airport

S E C O N D AC T After completing most of the Samarra Terminal upgrade, Iraq Duty Free switches gears to create an exciting shopping experience in Babylon Terminal B at Baghdad Airport, expecting a two-fold increase in sales

raq Duty Free (IDF) is upgrading its departures store in Babylon Terminal B at Baghdad Airport to create more space and a broader offer, to be followed by the arrival store at Samarra, according to the company. These renovations “will enhance the pre-flight experience for international travelers at Baghdad International Airport and create a great shopping experience that seamlessly blends modernity with the rich identity of our brands,” says a spokesperson at IDF. The renovated areas will include all categories, but will highlight the retailer’s largest offer, perfumes and confectionery, located in the most visible section of the store. “Interspersed throughout the floor will be gondolas for accessories, cosmetics, watches and other categories,” says the spokesperson. “In addition, we will upgrade separate sections for liquors, tobacco, souvenirs and travel accessories in the rear section of the store.” For the renovations, IDF has focused efforts on its most popular product categories of fragrances and spirits. “Most travelers' spending habits are on perfumes

36 GLOBAL TRAVEL RETAIL MAGAZINE NOVEMBER 2023

by ALISON FARRINGTON

and liquors, which represent the largest percentage of our sales at Iraq Duty Free, followed by confectionery and other categories,” adds the spokesperson.

Full steam ahead

The renovation of the IDF stores at the Babylon Terminal is ahead of schedule. This is thanks to the timely completion of the Samarra Terminal 3 departure store upgrade, which opened in January 2023 and has contributed “promising results” so far this year. The Samarra Terminal departure store upgrade, which has been a key focus for Iraq Duty Free, is almost completed. “We have been focused on upgrading our retail spaces with new design and fixtures,” says the source. “In terms of investment, we have renovated all our existing shops to international standards with the exception of one still to come, in the departures area for the international concourse known as Babylon. It is due to open in the first quarter of 2024.” Sales will not be affected during the renovations, says the company, explaining

IDF has prepared a temporary store that will serve its customers during renovation work. “Our expectations are that sales will be doubled with the new-look stores, due to the expansion of most category sections and inclusion of new brands as well.”

PAX increasing

Average passenger numbers are very good and increasing all the time, confirmed IDF. “The number of international passengers traveling through Baghdad Airport per year is around 3.5 million to 4 million. Iraqi airport travelers are dominated by Iraqi nationals, representing around 70% of travelers. Expats and other nationalities represent around 30% of travelers from various countries,” he says. A diverse range of airlines operate at Baghdad, and many international airlines fly out of the Babylon Terminal. These include Emirates, Qatar Airways, Royal Jordanian, Turkish Airlines, Fly Dubai, Gulf Air, Middle East Airlines, Fly Baghdad, Ur Airlines, Pegasus, Sham Wings, Egypt Air, Air Arabia, Tailwind Airlines, Fly Nas and more.

Industry Outlook

Reinvigorating

the market

After the travel industry managed to survive the global lockdown and begin making its way through the aftermath, Kearney Managing Partner Alex Liu discusses what will bring greater success in coming years

Alex Liu, Managing Partner & Chairman at global management consulting firm Kearney

by WENDY MORLEY

nce our industry had weathered the Covid hurricane, one positive as business returned was increased perperson spend, thanks to “revenge buying.” But this seems to be over. According to Alex Liu, Managing Partner and Chairman of global management consultancy Kearney, spend per person in 2022 was down -29% when compared to 2021, and down 10.5% even when compared to 2019. Additionally, the travel retail market as a whole in 2022 was still down -26% from 2019, though it must be noted that global borders were not yet fully opened until early in 2023. Liu’s report was based on research his firm completed for TFWA, and his presentation was part of the workshop The TFWA Airport Forum, which included presentations by Isabel Zarza, CEO Southern Europe, Dufry, Svetlana Simeonova, Head of Commercial, Fraport Bulgaria, and Fraser Brown, Retail Director, Heathrow. Kearney’s research confirmed something we’ve all heard before, that consumers no longer see travel retail’s value proposition as meeting their expectations, with over half of travelers stating their perception that travel retail prices do not compare to those of domestic retail. But one third of travelers also state that the assortment offered does not meet their needs. And the conversion rate remains very low, with 5% to 10% of airport travelers shopping in airport duty free stores.

While airport shopping is always limited by things operators cannot control, mainly dwell time, still Kearney’s research shows two-thirds of passengers are dissatisfied with either the price or assortment offered, and this percentage excludes those who have no interest in buying.

Two opportunities

As is always stated in business circles, with challenges come opportunities. So, now we know the doom and gloom, what can be done about it? The first of two opportunities identified by Liu is to recognize the new traveler and make sure to provide what that traveler is seeking. Who is the new traveler and what do they seek? In 2022 Millennials and Gen Z made up approximately one-third of air travelers. By 2025 this percentage will reach over 50. These travelers more than any other are looking for an experience as a key reason to purchase. While for Baby Boomers and Generation X “Experience” was Chart 1

38 GLOBAL TRAVEL RETAIL MAGAZINE NOVEMBER 2023

an important aspect of the decision to buy for 14% and 27% of respondents respectively, for Millennials and Gen Z those percentages increased to 37% and 40%. Liu suggests that the key to success is to focus on the traveler. Greater sales will come about by offering more competitive pricing, which would encourage 55% more people to buy; an exclusive assortment, which would bring a 37% increase in sales; immersive experience, which increases the chances of buying by 32%, and delivery, which would help drive 17% more purchases.

The Pentarchy

The second opportunity noted by Liu to increase sales in travel retail is to take the trilogy and turn it into a pentarchy. He spoke of the friction currently present among all stakeholders in the airport shopping environment, stating that carriers and digital media partners are missing from the collaborative equation. At the center of this pentarchy is the traveler. Then, Liu believes, the pentarchy of retailers, airports and brands need to create a more collaborative approach creating joint ventures, apps, and other more creative, less transactional agreements. “The broader you think, the more competitive you are,” says Liu.

Chart 2

Chart 3

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big year

Association News

TFWA World Exhibition sees record number of buyers and landlords this year

by HIBAH NOOR

he TFWA World Exhibition & Conference hosted a total of 7,385 visitors this year – a figure that is up 23% from 6,017 in 2022. The figure compares to 7,531 visitors at the 2019 event, which remains the visitor attendance record. However, in the key sector of buyers and landlords, the 2023 event set a new record attendance of 2,761 delegates, a significant increase of 15% on the 2019 figure. 1,762 delegates were in the audience for the TFWA World Conference, which took place on October 2. 177 delegates attended the Airport Forum workshop on October 3, while 125 attended the Duty Free: Trusted, Transparent, Secure workshop on October 4. With a large number of brands hosting bigger stands than in previous years, the 2023 exhibition occupied a new record footprint of 25,212 square meters, up from 20,751 square meters in 2022 and 23,443 square meters in 2019. 450 companies exhibited, 92 of which were new exhibitors. These first-time exhibitors came from eight sectors and from as far afield as Uruguay, Jordan and Peru. Having facilitated a total of 2,066 onsite meetings throughout the week, the TFWA ONE2ONE meeting service once again proved to be a welcome element of the TFWA World Exhibition & Conference. Innovation was high on the agenda

at TFWA i.lab in the Golden Village of the Palais des Festivals. The ideas hub, which was sponsored by Alipay, JCDecaux and BW Confidential, featured 15 participating companies. Well-attended social events once again confirmed that face-to-face networking opportunities remain a top priority for industry colleagues across all sectors. 1,588 guests attended TFWA’s Opening Cocktail event at Carlton Beach, while a peak of 686 guests enjoyed the TFWA Lounge after-work sessions. The nighttime attendance at the TFWA Lounge reached a peak on Wednesday night, with 2,238 guests enjoying the hospitality of main partner Qatar Duty Free and a wide range of refreshments courtesy of TFWA’s valued sponsors. “We thought that the mood was great at TFWA World Exhibition & Conference 2022, but the atmosphere this year has reached another level," Erik JuulMortensen, TFWA President. "Beyond just the large number of attendees, it is the spirit that we have seen that has been remarkable – the quality of the exhibition and those attending it has been outstanding. It is particularly gratifying to be able to welcome delegates from all parts of the world once again, and there is no doubt that TFWA World Exhibition & Conference has fully returned to being a truly global event.”

Snapshots of the industry in action at this year TFWA World Exhibition and Conference in Cannes, France

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www.gtrmag.com GLOBAL TRAVEL RETAIL MAGAZINE NOVEMBER 2023 41

Association News Sustainability, CSR and zero tolerance against illicit trade are all issues top of mind for MEADFA President Sherif Toulan, Vice President Rob Marriot and Sustainability Lead Munif Mohammed

THE TIME HAS COME

As a continent, Africa has long been neglected in the travel retail industry. MEADFA President Sherif Toulan has made a point of changing that, and major stakeholders in the industry are now seeing the incredible potential in the region

by WENDY MORLEY

ince Sherif Toulan became President of the Middle East & Africa Duty Free Association (MEADFA), he has recognized that much of Africa has not truly been represented by the association, and he immediately began making plans to address that. During the MEADFA press conference at TFWA WE in Cannes, Toulan stated, “The Middle East and Africa are at the forefront of recovery. By the end of this year international traffic will be at 97.3% globally; in Africa that number will be 98.6%. I am confident it will do even better.” Developing Africa is a priority for the association, according to Toulan, saying that Ghana was an optimal choice for the event location as it’s a main gateway to West Africa, which is a growing subregion. “Gambia, Senegal, Ghana, Nigeria are all growing,” he stated, adding that African airports have the potential to greatly increase their non-aeronautical income. “Investments in the region and quality of airports is at an all-time high,” stated Toulan. “We are sensing great opportunity, and we are facing the future in this region with confidence.” 42 GLOBAL TRAVEL RETAIL MAGAZINE NOVEMBER 2023

MEADFA Conference

Managed by TFWA, the annual event will take place at the Kempinski Hotel Gold Coast City and will mark the first time it has been hosted in West Africa. “If we don’t go to Africa now, when will we do it?” Toulan has asked. The MEADFA Conference is known for its networking opportunities, and this year’s will offer a packed social program with ample opportunity to network. Social gatherings include an opening cocktail on Sunday, a gala dinner on Monday and networking coffee breaks and lunches throughout the event. Topics at the conference this year include the development of aviation and related industries in Africa, the rebuilding of the business model for airport retail, a progress report on sustainability in the region, catering to the African shopper and tracking the post-COVID MEA traveler. These topics will be discussed by some of the most esteemed stakeholders in travel, travel retail and industry, including representatives from both airports and operators in the region. The conference has full support from retailers and major global brands, many of whom, as reported elsewhere in this issue,

At the press conference in Cannes, MEADFA President Sherif Toulan stated in reference to Africa that it’s time for the industry to “walk the talk”

are making growth and expansion in Africa a top priority in their strategies.

Growing right

Of particular importance to MEADFA is to ensure that the standards and priorities of the industry are upheld. To help ensure this, the association is asking for everyone’s support. Last year MEADFA’s subcommittee on sustainability was created, headed by Munif Mohammed, CEO Lagardère Travel Retail Saudi Arabia. Mohammed states that the subcommittee is seeking to engage with those in the industry; a survey has been sent to all members with 28 detailed questions, for which full analysis will be completed. Participation was moderate, but the hope is with further engagement will come greater involvement. Topics included in the survey — and which will continue to be addressed by MEADFA throughout the entire region — include the environment, treatment of employees, child labor, and a focus on more responsible products.

Your best duty free experience

Jewelry

Golden

opportunity With its unique blend of luxury, style, quality and value, plus the ability to create personalized and exclusive items, L’azurde offers the travel retail channel a winning combination that will help elevate the jewelry category by WENDY MORLEY

L’azurde produces a staggering 400 new designs in the busier months, averaging out to 3000 per year

or those outside of the Middle East and North Africa it might be surprising to hear Saudibased L’azurde is the fourth largest jewelry manufacturer in the world. For those within that region, it’s no surprise at all. The brand is renowned in MENA for its quality and value, and if CEO Selim Chidiac has anything to say about it (he certainly does), before long, the brand will be recognizable around the globe, because no other company can do what it does. Founded in 1980, L’azurde has seen ever-growing success because of the astonishing value it offers — its jewelry is made with solid 18k and 21k gold and often features diamonds for a surprisingly low price — and for its second-to-none design team. The company’s mission is to constantly redefine and advance in the jewelry industry. L’azurde produces 400 new designs each month, releasing more than 3,000 unique designs each year. Its experience and heritage of creativity combined with an unrivaled ability to produce and distribute allow for opportunities that simply don’t exist with other companies. “Our award-winning designers and model makers are at the heart of what L’azurde does,” says Chidiac. “We design original, superior quality classic and contemporary jewelry for every moment 44 GLOBAL TRAVEL RETAIL MAGAZINE NOVEMBER 2023

in a women’s life, creating a signature style that offers elegance and uniqueness for every occasion.”

L’azurde CEO Selim Chidiac is excited to bring L’azurde into the travel retail channel

L’azurde around the world

While the brand might be best known closer to home, its global footprint has already been increasing in size. L’azurde jewelry is now available in 45 countries in third-party retailers. And the company is ready to grow to a virtually infinite size, as its ability to both produce and distribute are two of its many superior assets. “Our supply chain is second to none,” he says. “If you order from anywhere in the world, you will receive your jewelry in seven days.”

The move to travel retail

With the goal of bringing L’azurde to every country around the globe, Chidiac has decided that travel retail is an important channel to master. To this end, this year he brought in global businesswoman and travel retail expert Martine Larroque. “We’re very excited about this new venture,” says Chidiac. “We will do it step by step, starting small but reasonable, and growing.” With the company’s heavyweight design and production team able to produce new pieces on a dime, L’azurde is in a unique position to create luxury

exclusives for travel retailers. We all know one of the keys to success in travel retail is customization and personalization, and L’azurde is already adept at this. “With our design team, we can create exclusives easily,” says Chidiac. “No problem.” While his goal is certainly to achieve in the channel for L’azurde and retailers both, another goal is to strengthen the jewelry category. “Our legacy will support the category as a whole, by offering great value in quality gold. This is the essence of the brand: history and quality.” In addition to duty free, cruise seems like a channel with great opportunities for the brand. “Cruise is our number one prioirty this year, and we are already seeing progress,” he adds. According to Chidiac, the response from operators in Cannes was execptional. The company received positive attention at the show from both press and retailers.

Beauty

The YSL MYSLF pop-up debuted at Amsterdam Airport Schiphol; it presented at all TREMEAI airports throughout main cities including Paris, London, Istanbul and Dubai

Discovering MYSLF Yves Saint Laurent’s new range of men’s fragrance is designed as a true generational statement, reflective of a modern representation of masculinity

ves Saint Laurent has launched a new range of men’s fragrance: MYSLF. As the luxury brand’s first floral woody scent, it is designed as a true generational statement, reflective of a modern representation of masculinity. The sleek, minimalist glass bottle comes in an elegant black monochrome, Yves Saint Laurent’s signature color. The edgy design, containing recycled glass, is fully sustainable. Bottles are 100% refillable in all formats, ensuring a reduced impact on natural resources while aligning with the commitments and expectations of a new generation of consumers. Opening with an intensely fresh bergamot accord, the scent deep dives into the complexity of orange blossom, before giving way to the subtly woody base notes of patchouli heart. Actor Austin Butler has been named the fragrance ambassador of MYSLF. Launched on September 1, MYSLF will have unprecedented visibility in all Europe and the Middle East airports with more than 400 animations. A retailtainment space is offering a journey of self-discovery through three

different experiences: “Find Yourself,” an innovative interactive game, where users have to find words that represent them the most. “Themselves Behind” invites visitors to explore the creation of the fragrance, guided by Austin Butler and the perfumers. Finally, the “Myself Lab” provides a personalized experience, where consumers can customize their bottles with an UV printer. Along with full blast media coverage across channels, MYSLF presented at all TREMEAI airports, throughout main

cities including Paris, London, Istanbul and Dubai, from September until the end of October. Speaking about the retail space at Istanbul Airport with Unifree Duty Free, Jens Peter Peuckert, Director of Marketing, Gebr. Heinemann says, “MYSLF is a modern fragrance that resonates with today’s world and offers an olfactory adventure at the crossroads of tradition and innovation. This new pop-up store is reflecting the notion perfectly. In line with our mission statement, it provides travelers with an unforgettable and personal experiences. Furthermore, it serves as a testament to our fruitful collaboration with Yves Saint Laurent Beauty.”

The YSL MYSLF pop-up at Istanbul Airport

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Beauty

With an ambitious goal of 35 stores in India by next year, BEAUTE LUXE and BEAUTY CONCEPTS are working in tandem to redefine the luxury shopping experience in the country

BEAUTE LUXE on African anchorage and Indian horizons Dubai-based travel retail specialist, BEAUTE LUXE, continues to build its legacy in Africa while laying the foundations for a strong presence in India through a strategic partnership with BEAUTY CONCEPTS A robust foundation on African local markets

According to CEO David Dayan, the tale of BEAUTE LUXE in Africa is one of strategic adaptation and robust growth. With his travel retail expertise, Dayan founded the company in 2019 with the ambition to conquer the African travel retail market. However, the COVID-19 pandemic necessitated a shift towards local markets. In collaboration with L'Oréal, BEAUTE LUXE introduced dermo-cosmetic brands such as La Roche-Posay and CeraVe in Africa, opening wholesale stores and warehouses in Rwanda, Burundi, and Uganda. This initiative aimed to efficiently supply local pharmacies, and allowed the company to create solid roots on the African continent, forging strong ties with local communities and meeting a growing need for quality dermocosmetic products.

Dynamic re-engagement in African travel retail

With the easing of travel restrictions, BEAUTE LUXE reactivated its travel retail operations, bolstering its presence in more than 100 duty free shops across Africa. The company expanded its brand portfolio, incorporating prestigious names and catering to a varied demand in perfumery and skincare products. The company points out that Africa, with its burgeoning market, offers fertile ground, especially in the perfume sector dominating the travel retail market. However, the skincare sector, although underrepresented, is seen as a growth avenue, signaling untapped potential that BEAUTE LUXE aspires to develop.

Strategic partnership in India: The union with BEAUTY CONCEPTS

Fortified by its success in Africa, BEAUTE LUXE is now eyeing the Indian market through its partnership with BEAUTY CONCEPTS. This collaboration was inaugurated at the TFWA World Exhibition last year in Cannes, laying the foundations for a fruit-

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ful joint venture. The partnership envisions developing a network of BEAUTE LUXE stores in India, specifically targeting the duty paid market. The opening of the first store in Kolkata was, David Dayan says, a resounding success, catalyzing the opening of 20 more stores across India, with a vision for even greater expansion on the horizon. The partnership with BEAUTY CONCEPTS, which brings deep understanding of the Indian market, is central to this expansion, offering a synergy between local knowledge and BEAUTE LUXE’s global expertise.

Future ambitions and continued expansion

With an ambitious goal of 35 stores in India by next year, BEAUTE LUXE and BEAUTY CONCEPTS are working in tandem to redefine the luxury shopping experience in the country. At the same time, the BEAUTE LUXE team, still committed in Africa, continues to explore opportunities to strengthen both travel retail and local markets. The frequent travels of the team between Africa and India symbolize a well-orchestrated global strategy aimed at optimizing operations in these key markets. David Dayan's long-term vision is that of a company that not only meets the needs of local consumers but also continues to innovate in the travel retail sector, promising a bright future for BEAUTE LUXE on the international stage. With the easing of travel restrictions, BEAUTE LUXE reactivated its travel retail operations, bolstering its presence in more than 100 duty free shops across Africa

Beauty

The ultimate guide to clean beauty A closer look at Mavala’s newly launched skincareinfused make-up range and position as an educational source for identifying beauty concerns and embracing lifestyle practices

by LAURA SHIRK

arlier this year, among a new slate of products to the market, Swiss beauty brand Mavala introduced the Mini Bio-Color collection, its first range of bio-sourced nail polishes which are made up of 85% natural-origin ingredients. Based on a more natural formula with raw materials of plant and mineral origin, the collection features 12 shades and provides long-lasting hold and shine. According to the company, the addition of fortifying silicone improves the quality of nails. The line is now available in global travel retail. With 60 years of expertise, Mavala follows a philosophy dedicated to care and beauty and sells more than 12 million products annually worldwide. Available in more than 100 countries on five continents, it offers 700 SKUs translated into 30 languages. Founded on the concept of problem-solution since its beginning, the brand’s portfolio delivers clean beauty solutions from head-to-hand-to-toe.

Mavala’s Perfect Concealer stimulates blood microcirculation and comes in ergonomic and eco-designed packaging

Skincare-infused make-up

Newly launched, Mavala’s skincareinfused make-up range includes Serum Foundation, Perfect Concealer and Magic Powder. Said to beautify and unify complexion, Serum Foundation comes in eight shades and is based on a formula full of active ingredients including the Swiss Mallow flower to smooth skin. Targeting dark circles and imperfections, Perfect Concealer stimulates blood microcirculation, strengthens the skin barrier and is described as offering the power of two serums in one concealer. It comes in ergonomic and eco-designed packaging. Both new products have been clinically shown to improve the quality and appearance of skin within one month of application. Finally, suitable for all skin tones, Magic Powder features an anti-blue light benefit to protect skin against urban and digital pollution. According to Doris Maute Bobillier, CEO at Mavala, with beauty and wellness becoming more interconnected, there is a stronger focus on products’ ability not only to enhance natural appearance, but also promote mental and physical wellbeing. This often leads to a brand experience centered on trusted values. With consumers increasingly concerned about the environmental impact of beauty products, Maute Bobillier says Mavala is exploring eco-friendly packaging, sustainable sourcing of ingredients and green manufacturing practices to align with this trend, as well as AI tools.

Mavala’s Magic Powder features an anti-blue light benefit

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Based on a formula full of active ingredients, Mavala’s Serum Foundation is available in eight shades

Educational tools and lifestyle practices

More than a beauty brand, Mavala serves as an educational source for exercise, hygiene and lifestyle practices. The company designs traveler-friendly product sets that feature multi-lingual explanations or QR codes that link to educational videos and information. These materials cover topics such as hand exercises, skincare routines, how-tos and habits for healthy nails and skin. Speaking about how the company promotes its educational side in travel retail Maute Bobillier comments, “The brand has always put emphasis on teaching users about how to identify their skin, nail or lash concerns, both online and offline, to inform and engage consumers, including travelers. This includes via brochures, in-store displays and digital media where advice related to its beauty and wellbeing products are shared, as well as exclusive live demonstrations that offer travelers a relaxing and educational experience at the same time.” Global Travel Retail Magazine spoke with Hélène de Chastenet, Area Sales Manager at Mavala, in Cannes last month about the launch of the brand’s skin-infused make-up range. In line with Maute Bobillier’s comments, de Chastenet said, “What is important at Mavala is that we want to use caring ingredients in every product. This includes our make-up line.” Speaking from experience, de Chastenet added that women who use Serum Foundation and Perfect Concealer find the products easy to apply and benefit from greater skin vitality.

EXPANDING HORIZONS!

Confectionery & Fine Foods

A full agenda: category growth and cross-category penetration

An update on Nestlé International Travel Retail’s ambition to make food the number one most purchased category in the channel; plus, brand campaigns, category initiatives and sustainability drivers within its VERSE model by LAURA SHIRK

Based on two points of differentiation – gifting and sense of place – Nestlé is releasing an updated line of KitKat gift packs that highlight six select destinations

t this year’s TFWA Cannes World Exhibition & Conference in October, Nestlé revealed key initiatives to further drive its ambition to make food the number one most purchased category in travel retail. The company launched significant brand and category initiatives within its VERSE model (Value, Engagement, Regeneration, Sustainability, Execution) including eight channel exclusive products, as it strives “to accelerate industry growth by tapping into unmet consumer needs within the vast opportunity offered by the wider food category.” Ahead of the annual show, Stewart Dryburgh, General Manager at Nestlé International Travel Retail (NITR) said, “We are delighted to report that m1ndset research for H1 2023 shows that the purchase penetration of food – including confectionery – has increased from 30% to 35% of duty free buyers. This is the fastest growth of any category. Critically, we are seeing this growth from both confectionery and non-confectionery with

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additional sales being incremental; in other words, with zero cannibalization.” He also pointed out that while confectionery continues to be “the beating heart of food,” it is the non-confectionery sector – including vitamins, minerals and health supplements (VMHS) – that reports the fastest growth across all travel retail subcategories.

Together We Grow sustainability platform and cocoa traceability

Among the travel retail exclusive initiatives launched in Cannes, the premium brand Nestlé Sustainably Sourced Cocoa seeks to recruit the younger generation and features a variety of chocolate flavors in both tablet format (170-grams and 270grams) and a 48-piece sharing bag. Nestlé Sustainably Sourced Cocoa is made from 100% sustainably sourced cocoa through the company’s Nestlé Cocoa Plan. “The range will drive incremental sales by attracting the fastest-growing consumer segments – notably Gen Z – into confectionery,” said Dryburgh.

To further support sustainability, the company launched a category platform called “Together We Grow.” Described by Nicola Wells, Head of Category Development, as a communications platform that works across the consumer journey, from pre-trip digital assets to ultra-flexible instore merchandising solutions, including gondolas made from 100% recycled material, adaptable shelves and interchangeable side panels to ensure longevity of use. The travel retail-specific sustainability platform adapts to brand messaging and product display. According to Wells, the merchandising concept showcases multiple brands tailored to passenger mix, with clear proof points on the positive impact of programs such as the Nestlé Cocoa Plan. “Together We Grow meets the needs of consumers, brands and retailers alike. It’s a response to the increasing concern among shoppers about greenwashing. They want to know that brands are doing what they say, and so we’re leading with proof points across our press and in-store.

Nestlé Sustainably Sourced Cocoa is made from 100% sustainably sourced cocoa through the company’s Nestlé Cocoa Plan

A sign of development in Nestlé’s commitment to achieve 100% recyclable or reusable packaging by 2025, KitKat snacking and sharing lines now consist of paper pouches

The gondola engages travelers at all points of the consumer journey and enables brands and retailers to demonstrate their sustainability credentials,” shared Wells. “It also gives Nestlé a platform to execute retailer-specific objectives. Many retailers find it difficult to communicate sustainability in an impactful way, and so this is something they can get behind.” Nestlé Sustainably Sourced Cocoa will replace the Nestlé Swiss range and is a direct result of the company’s work to support cocoa farmers and their communities which is accredited by the Rainforest Alliance. Launched in 2009, the Nestlé Cocoa Plan is based on three pillars: better farming, better lives and better cocoa. The plan aims to improve the way that cocoa is grown and the livelihoods of the farmers; to improve the lives of the women and children in cocoa-growing families; and to improve the traceability of cocoa. Nestlé is on a mission to achieve full traceability of all cocoa products by 2025. Eighty percent of the company’s cocoa supply this year – approximately

250,000 tons – came from nine countries and over 150,000 farmers.

KitKat’s “Live Your Best Break”

During a press event at the exhibition, Aura Sanchez Farrera, Global Head of Marketing, NITR, presented a list of Nestlé’s priorities, which include to build KitKat into a travel icon, compete in gifting, unleash coffee, establish VMHS and meet local consumer needs. The company’s agenda is full and Nestlé is on its way to crossing off a number of its to-dos. This year, Nestlé is completing the KitKat Senses collection with two new innovations: KitKat Senses Cookie Dough tablet and KitKat Senses Mini Moments – Milk & Lotus, which will launch in collaboration with Lotus Biscoff and replace current Mini Moments and Mini Dessert SKUs. A sign of development in Nestlé’s commitment to achieve 100% recyclable or reusable packaging by 2025, KitKat snacking and sharing lines now consist of paper pouches. Plus, in the works and based on two points of differentiation –

gifting and sense of place – is an updated line of gift packs that highlight six select destinations. Launched at the end of 2022, Sanchez Farrera noted that the industry-specific “Live Your Best Break” campaign amplifies the voice of KitKat and has affirmed NITR’s digitally-driven approach to engagement. With the purpose to increase sales and generate brand awareness pretrip (via digital assets), in-transit (via media screens, permanent visibility and a shop-in-shop concept) and post-trip (via social media and influencers) at select international airports, the campaign delivers tailored messages during each stage of the travel experience. “Live Your Best Break” kicked off last year and ran November 1 – December 31 worldwide. The campaign reached passengers via digital touchpoints throughout the consumer journey. During the nine-week period, the campaign recorded 135.1 million cumulative impressions, exceeding its target of 86.6 million. On a global scale, it delivered an overall clickthru-rate of 2.36%. “The campaign was not just a win for NITR, but also a win-win for travel retail consumers and retailers. Digital technology, when harnessed to our key marketing messages transforms the accuracy and efficiency with which we reach potential customers and enriches the quality of our impact on them. ‘Live Your Best Break’ was also timelier, as consumers were in travel planning mode and therefore, more capable of immediate response than traditional static media that is disconnected from their travel frame of mind,” explained Sanchez Farrera.

Travel, health and wellness

Speaking about regional and global opportunities for growth in the coffee and wellbeing (VMHS) subcategories, Sanchez Farrera introduced two new blends to the Nescafé collection: Nescafé Farmer’s Origins Colombia and Nescafé Farmer’s Origins Latin America. According to Nestlé, the additions enable retailers to offer five distinct product ranges to meet all consumer profiles. As shared by Nestlé, consumers are 1.5x more likely to buy coffee versus confectionery and wellbeing is rapidly rising as a common priority post-pandemic. Sanchez Farrera also elaborated on NITR’s partnership with Dufry to bring

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Confectionery & Fine Foods

they can’t buy in the domestic market. It’s about giving the consumer something that they can’t get elsewhere. “When entering products into travel retail that the consumer is not expecting, it’s about pre-trip awareness – making travelers aware of what is available – so they know what to look for and understand why they want it,” Wells told Global Travel Retail Magazine during a follow up interview in Cannes.

Food Reimagined Nestlé has added two new blends to its Nescafé collection: Nescafé Farmer’s Origins Colombia and Nescafé Farmer’s Origins Latin America

health and wellness brand Solgar to travel retail. The two teamed up with Nestlé Health Science to launch Solgar at the retailer’s shop-in-shop concept Mind, Body & Soul. The six-month trial started in April at Zurich Airport and Athens International Airport; both airports are home to one of Dufry’s 20 global innovation stores used to test-run new projects. “There is compelling evidence that VMHS products can offer support and benefits for travelers,” said Sanchez Farrera in an earlier statement. “These range from supporting immunity and the digestive system when visiting different countries to helping with sleep issues, balancing and boosting energy levels and maintaining nutritional balance during dietary changes.” Solgar features more than 300 products in over 60 countries globally. While it is the first wellness brand to be trialed in travel retail, the Nestlé portfolio includes

multiple leading brands such as Vital Proteins, Garden of Life and Nature’s Bounty, all of which are seen as offering potential in the channel. When it comes to VMHS – while still at the test and learn stage – Nestlé is set on portfolio and geographical expansion post-pilot program. Right now, the company is testing to learn more about the size of this opportunity and figure out the best way to execute it. Similar to coffee, Nestlé is following a consumer-led approach to identify needs on a regional basis and across nationalities to tailor its offer to passenger mix. “The trick is to think about the location and then tailor the assortment to that; and take it on a regional basis in terms of non-confectionery. The assortment will vary per region depending on the different consumer needs. For example, coffee is strong in the Middle East. We can offer consumers something

Alongside category development, twotime winner at the 2023 Frontier Awards – named “Supplier of the Year” and “Star Food & Confectionery Product of the Year” for Smarties Cool Creatures – NITR is examining cross-category potential. Delivering on the Execution segment of its VERSE model, Nestlé will soon be unveiling a future-focused Food Reimagined store concept and design created in partnership with Portland Design. Described as the antidote to apathy, the layout promises to optimize space, consolidate flavors and showcase local brands. The design concept brings together multiple subcategories like hot drinks, VMHS and local in one place and acts as a “hope destination” for travel, health and wellness. “We talk a lot about why food is important – about why it should be prioritized and given more space. But, people ask how do you do this? [Food Reimagined] is a thought leadership piece on offering a solution. It is not one-size fits all; there will be elements that people will want to use. It’s a way of thinking and a set of principles about improving the flow of the overall store and what to put where in order to drive cross-category between global and local,” said Wells.

Nestlé Sustainably Sourced Cocoa Dark Chocolate (270-grams)

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Spirits & Tobacco

Destination travel retail

Habanos, S.A. presented a new travel humidor, dedicated to the Hoyo de Monterrey brand, with its Destinos vitola, at the gala dinner held as part of the TFWA World Exhibition & Conference in Cannes, France

Habanos is renowned in the world of luxury cigars, and the GTR channel is especially important for the Cuban company. In 2019 more than 25% of the company’s sales came from travel retail, and it will again approach that figure by the end of 2023

by WENDY MORLEY

or some companies, their travel retail channel strategy is mostly about helping to ensure their brand or a specific launch get more visibility around the world. For others, the channel is an important part of their overall sales. For Habanos SA it’s clearly the latter; in pre-pandemic times over 25% of the company’s business volume arose from duty free and travel retail. Maritza Carrillo, Co-President of Habanos SA, says naturally production at the famous Cuban cigar company was affected by the pandemic. “As happened

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around the world, we had to close factories or work with reduced staff at certain times.” According to data from Tabacuba, the corporation that manages everything related to the agricultural and manufacturing aspects of Cuban tobacco, Habanos, SA is expected to see a moderate improvement in 2023 given the current agricultural campaign and status of the factories, which are all open. “However, the current global context does not allow accurate forecasts to be made due to the recurrent appearance of

new variants of coronavirus that could continue to affect it,” says Carrillo. “We continue to work to resolve any adverse circumstances as soon as possible and recover the export levels of 2019.” As travel retail is such an important part of Habanos SA's business, bringing this volume to pre-pandemic levels in this channel is of particular importance.

Growing concern

Sales and volume for Habanos SA in the travel retail channel were on an upward trajectory from 2017 through 2019. It goes without saying that the channel was affected negatively in 2020. Carrillo says 2021 brought signs of recovery, which increased in 2022. “Little by little the relevance of this channel is recovering, and the performance from airport duty free and travel retail has reached +35% (value sales) vs 2021, representing the 23% in

Maritza Carrillo, Co-President of Habanos, SA is proud of her team’s work; the strategy of the company and the strength of its portfolio makes her optimisic about the future

value of the total Habanos market,” she says. The company has identified the entire Asia Pacific region as the greatest opportunity in the channel in the medium term. “This is the region where demand has grown the most and where activity for these channels has not yet been 100% reactivated,” Carrillo says.

Habano Festival and new releases

The annual Habano Festival is an incredibley important event that the company is proud to hold. “This year has once again been a success, and this was demonstrated

by both the attendance by aficionados and the collection from the humidor auction. We achieved a new record of more than 11 million euros,” Carrillo says. “We are working again to surprise our aficionados, but let us do it in due time. What we can guarantee is that the Habano Festival never disappoints.” Habanos releases its novelties during the festival each year, and this year was no exception. The main launches at this year’s festival were Montecristo: Montecristo Open Slam, Bolívar: New Gold Medal and Partagás: Línea Maestra. These star brands were featured during the three

most important nights of the festival. The company also launched Romeo y Julieta Cupidos and Partagás Aliados for sale at La Casa del Habano and Habanos Specialist, expanded the portfolio of La Gloria Cubana with its new Turquinos vitola, and offered a new trendy Vegueros option, the Centrogordos vitola. “In Cannes we also introduced a new exclusive to the duty free and travel retail channels: the new travel humidor Hoyo de Monterrey Destinos,” says Carrillo. “We are sure that these novelties, together with other surprises we revealed throughout the year, will delight all Habano lovers.”

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Spirits & Tobacco

spirit

I N D O M I TA B L E

The invasion of Ukraine has caused much hardship, and those at Nemiroff Vodka have had to put in more effort when performing virtually any task, but as the launch of LEX at TFWA Cannes has shown, like the country, the company’s will is stronger than ever by WENDY MORLEY With 13 filtrations, LEX by Nemiroff is an ultra-premium vodka being released as a travel retail exclusive

he theme for the launch of LEX by Nemiroff at TFWA WE in Cannes this year was “Freedom to be,” and that could not be more appropriate as it grows through a terrible storm. The famous Ukranian vodka was born in its namesake Nemyriv, a historic agricultural town and one of the oldest cities in the Vinnytska oblast in 1872. As with all businesses, the Nemiroff distillery became state-owned as of the 1917 revolution and subsequent creation of the Soviet Union. After more than 70 years, Nemiroff, which ceased operation upon being nationalized, was granted one of the first licences independent of the Soviet Union in 1991. Since then, production has taken place a few hundred meters from the original distillery. In 2020, Nemiroff was the first company to privatize its alcohol distillery after the government monopoly. Currently, Nemiroff is finalizing reconstruction. Like the country, the company has refused to bow down. Last year was Nemiroff ’s 150-year anniversary. Before the invasion, the company had vast celebrations planned. For

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now, CEO Yuriy Sorochynskiy, says, these celebrations are “on hold.” Historically, the area has a very good tourism market, he says, with strong Jewish cultural roots. “I look forward to welcoming many visitors on that day,” he adds.

Gaining recognition and regions

Nemiroff Vodka has always been strongest in Europe, but recently the company has been signing more and more distribution agreements in other regions. It is now available in 80 countries worldwide, and that number is growing. Before the invasion, Nemiroff was one of the top 10 global vodka brands and one of the top three vodka suppliers of duty free stores, and has won more than 130 prestigious spirits competitions. “We are looking to grow,” says Sorochynskiy. “In travel retail, we are now mostly in Europe and the Middle East. In North America we are still domestic. Cruise is a good channel for us; currently we are doing very well on Viking in the Baltics. Travel retail is an important channel for us.”

Yuriy Sorochynskiy, CEO of Nemiroff, says the company’s goal with LEX by Nemiroff is to achieve perfection in every bottle

New launches

Nemiroff has proven itself to be adept at creating unique products. At TFWA WE in 2019, the company introduced The Inked Collection, with all natural flavors. Bold Orange, Wild Cranberry and Burning Pear are included in the collection, which takes inspiration from the creative force and energy behind tattoos. “As much as possible we source locally,” says Sorochynskiy. “For example, we harvest our own cranberries for the Wild Cranberry flavor.” These flavors continue to be a travel retail feature. In 2022, to celebrate a first Ukrainian moon mission and Ukrainian satellite Sich-2-30’s launch into orbit, the company launched Nemiroff Moon Edition, with extra distillation. Sorochynskiy said at the time, “A new era of space exploration

Spirits & Tobacco

The new distillery is being built in Nemyriv; the hope is that soon the company’s delayed 150-year anniversary can join with the opening of the new distillery for an even bigger celebration

At the launch event for LEX by Nemiroff in Cannes, renowned Ukrainian singer-songwriter Maryna Krut performed

is beginning – tourists discover space in rockets, and Ukraine is on the way to restore its status as a space state.” At TFWA WE this year, Nemiroff launched the travel retail exclusive LEX by Nemiroff, an ultra-premium vodka that Sorochynskiy calls “a testament to innovation, craftsmanship, and a commitment to excellence.” Nemiroff ’s vodkas always feature an exceptional number of filtrations, but the production process for LEX by Nemiroff outdoes them all, with 13 filtration stages including silver, platinum, shungite, and amber. The amber filtration process is particularly noteworthy, imparting enhanced smoothness, improved clarity, flavor enhancement, and a captivating golden or amber hue to the vodka. “We are doing activations, but the invasion has brought challenges,” explains Sorochynskiy. “It takes double the time to get products out, and people can’t easily cross the border.” Especially given these conditions, the launch event in Cannes was a testament to the company. It took place at a stunning location, with exceptional cocktails, created by Nemiroff Brand Ambassador Yulia Terletska, being poured against the setting sun. The event, envisioned by a Ukrainian art director, featured silver orbs, moving screens, a talented Ukrainian DJ and, the pièce de résistance, a performance by renowned Ukrainian

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singer-songwriter Maryna Krut, who accompanied herself on the bandura, a traditional Ukrainian instrument.

Local and sustainable

Sustainability has never been more important to consumers, but for Nemiroff, it has always been important. “Sustainability is part of company’s values, our DNA,” says Sorochynskiy. “We source all our grains in Ukraine, and any other ingredients possible.” But this is just a small part of what Nemiroff focuses on in its sustainability efforts. The company has obtained a grant from the EU for a biogas project at the distillery, taking waste and reusing it as fuel.

All parts of the bottle are created with sustainability in mind, including using recycled glass and the Guala closure made from ocean waste. Nemiroff also takes pains to decrease water consumption and use alternative sources of power. “This is a very important part of our company,” says Sorochynskiy.

Global support

Again, like its country, Nemiroff has seen encouraging support and warm words from around the world. “We had a lot of requests from different partners for the Ukranian flag to be put on our products,” he says, and this the company did. “This has offered us some opportunities.”

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