Gulf-Africa TFWA WE 2014 by Paramount Publishing Ltd.

OCTOBER 2014 TFWA WE • VOL 24, NO 2

TFWA WE 2014

Doha’s HIA in full swing p.

DDF’s highspeed success p.

IDFS celebrates 25 years p.

Bhatia Traders p. update

MEADFA agenda p.

the new intense fragrance

Letter from the Editor

Converging in

Cannes

t’s time to practice your French, dig out your most stylish sunglasses and order an espresso – the TFWA World Exhibition & Conference is upon us and we’re wasting no time getting into the spirit of the Cannes show. As visitors converge from all around the world, those of us from the Middle East will be seizing the opportunity to address head on the challenges the region has faced over the past 12 months. With pockets of unrest making headlines around the world, businesses have undoubtedly felt the effects. Despite what the news reports may suggest, there are many destinations in the Gulf that remain unaffected. Indeed, many are even enjoying record growth. In addition, countries such as Bahrain are bouncing back with force and are keen to spread the word about how stability is attracting a swathe of new business opportunities. This issue is packed with all the latest news and analysis, from Dubai Duty Free’s US$3 billion sales forecast to Heinemann’s five-year concession at Sharm el-Sheikh International Airport’s Terminal 2, plus more. Indeed, our dedicated team of reporters has been on the phones all summer to gather the latest stories, direct from the decision-makers’ mouths. Among the highlights is our interview with Colm McLoughlin who gives us the lowdown on Dubai International Airport’s Concourse D, opening in early 2015, and divulges the sales results so far for Al Maktoum International (AMI) at Dubai World Central. From Qatar Duty Free, Senior Vice President Keith Hunter shares the details of the second wave of stores that’s set to open at Hamad International Airport. On the other hand, World Duty Free Group tells us how it’s giving travelers the fivestar treatment with its premium promotions and high profile new openings. Its recent venture with Ferrari and Philip Morris at Jordan’s Amman Queen Alia International Airport is a great example of a successful collaboration. Also in this issue, our bag report offers an insight into how bag and luggage suppliers are pulling out all the stops to make sure their designs are snapped up. We’re looking forward to the Aigner pop up store, which will be unveiled in the retail area at Dubai International Airport’s Concourse D in December. As the aviation industry continues to grow in the Gulf and beyond, opportunities for travel retailers abound. This is why the TFWA WE issue of Gulf-Africa Duty Free & Travel Retailing is your indispensible guide to doing business in the region. As always, we’d love to hear your feedback. You can share your thoughts by emailing us at hibah@dutyfreemagazine.ca. Enjoy the issue. Kindest Regards,

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

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Gulf-Africa Duty Free & Travel Retailing (ISSN 0954-0592) is published four times a year (Spring, Fall and Winter) by Global Marketing Company Ltd., 26 Pearl Street, Mississuaga, Ontario L5M 1X2 Canada. It is distributed to duty free operators and distributors in the following countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE, Yemen, Algeria, Azerbaijan, Benin, Cameroon, Cape Verde, Djibouti, Egypt, Ethiopia, Gabon, Ghana, Guinea, Iran, Ivory Coast, Jordan, Kenya, Lebanon, Madagascar, Malawi, Mali, Mauritius, Morocco, Mozambique, Niger, Nigeria, Namibia, Pakistan, Reunion, Senegal, Seychelles, South Africa, Sudan, Syria, Tanzania, Togo, Tunisia, Turkey, Turkmenistan, Uzbekistan and Zaire, as well as to duty free suppliers worldwide. Subscriptions: $200 for one year, $300 for two years and $400 for three years. Art and photographs will not be returned unless accompanied by return postage. The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or editor. October 2014, Vol. 24, No.2. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2014 Global Marketing Company Ltd.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING 26 Pearl Street Mississauga, Ontario L5M 1X2 Canada Tel: 1 905 821 3344; Fax: 1 905 821 2777 www.dutyfreemagazine.ca PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca EDITORIAL DEPARTMENT EDITOR-IN-CHIEF Hibah Noor hibah@dutyfreemagazine.ca EDITOR Wendy Morley wendy@dutyfreemagazine.ca ASSOCIATE EDITOR Ryan White ryan@globalmarketingcom.ca OVERSEAS CORRESPONDENT Claire Malcolm claire@dutyfreemagazine.ca ART DIRECTOR Jessica Hearn jessica@globalmarketingcom.ca CONTRIBUTORS David Nusair Faye Bartle

ADVERTISING SALES ADVERTISING & MARKETING EXECUTIVE Jacqueline Hammill jacqueline@dutyfreemagazine.ca CIRCULATION & SUBSCRIPTION MANAGER Monica Kucharski monica@globalmarketingcom.ca

Introducing

Wood Sage & Sea S alt The Joyful New Scent

OCTOBER 2014 • VOL 24, NO 2

Contents

10 A curated retail experience QATAR DUTY FREE

Qatar Duty Free has orchestrated a world-class shopping environment at Hamad International Airport built around original concepts and international favorites that set a new standard in travel retail

34 Racing ahead in MENA WORLD DUTY FREE GROUP

World Duty Free Group is giving travelers the five-star treatment with its premium promotions and high profile new openings

Duty Free builds 36 Iraq its luxury credentials IRAQ DUTY FREE

Duty Free’s high14 Dubai speed success DUBAI DUTY FREE

With US$3 billion sales forecast by 2018, Dubai Duty Free’s Executive Vice Chairman Colm McLoughlin explains how the retailer is on the fast track to success

presents the 18 IDFS last good buy

INTERNATIONAL DUTY FREE SHOPS

Having undergone an impressive brand refresh drawing on Morocco’s rich heritage, International Duty Free Shops (IDFS) is welcoming a new era of success

22 On the rise

ABU DHABI AIRPORTS

With an exceptional H1 in the books, Abu Dhabi Airports looks to make the second half of the year just as memorable

26 Revolutionizing seaport duty free BHATIA TRADERS

Bhatia Traders is bringing its seaport facilities up to date with libraries, media centers, mini theatres and grooming stations

eyes 30 Heinemann organic growth GEBR. HEINEMANN

Jens Degner, Director Business Development, Gebr. Heinemann brings us up to speed on the company’s activities in MENA together with a sneak peek at its upcoming concession at Sharm el-Sheikh International Airport’s Terminal 2

Enhanced space inside Baghdad International Airport’s newly renovated Nineveh Terminal marks a move towards a higher-end shopping experience that will help boost sales by 30%

growth story 40 Dubai dominates MEADFA MEADFA

Conference 2014 agenda Retail opportunities presented by destination’s ambitious tourism targets and DWC expansion to be hotly debated

East Exclusive 42 Middle looks forward to MIDDLE EAST EXCLUSIVE

bumper 2014 edition

Region’s leading travel retail event attracts new exhibitors and visitors, fuelled by global aviation industry growth

new 46 Breaking ground in the air TOURVEST

Tourvest is not satisfied to just supply an airline with products to sell. It wants to revolutionize in-flight retail, bringing profit to its airline partners and satisfaction to their travelers

48 Engaging the global traveler THE ESTÉE LAUDER COMPANIES

Developing a better understanding of travel retail consumers and ramping up efforts to engage with them is all part of The Estée Lauder Companies’ winning strategy

digit potential 50 Double prompts Middle PUIG

74 Still booming LIQUOR REPORT

Dubai may have led the way, but the entire Gulf region is making a concerted effort to attract more visitors for sports, business, culture and shopping. The effort is paying off for suppliers

East investment

The scent of commercial success is extra sweet for Puig this year as the Barcelona-born fashion and fragrance house celebrates regional growth and 100 years of business

52 Onwards and upwards AMOUAGE

76 On the up and up

BERRY BROS. & RUDD SPIRITS

Berry Bros. & Rudd Spirits sees success in Dubai with the Manse Brae range and a concentration on promotions to increase in-store presence

Amouage prepares to show the next chapter in the Journey saga

back, 78 Looking looking forward INVER HOUSE

Travel 54 International Retail’s path to success INTERNATIONAL TRAVEL RETAIL

50 years of Inver House are commemorated with parties and a limited edition bottling

Lebanon’s International Travel Retail continues to grow from the ground up with a trio of new launches and plans to open in a new market in 2015

84 CIDF extends regional reach CHINA INTERNATIONAL DUTY FREE

56 On the growth path KRAFT FOODS GROUP, INC.

Leading distributor and marketer of Chinese products to worldwide duty free locations, China International Duty Free is growing its Gulf and Africa presence

Kraft Foods Group Inc. takes Americas travel retail by storm and lays plans for future growth in the Gulf and Europe

86 Absolut Warhol comes to life ABSOLUT

leading Middle 64 Mondelez East confectionery MONDELEZ WORLD TRAVEL RETAIL

Deck: In what can only be described as a spectacular display of life imitating art imitating life, Absolut’s Andy Warhol edition will soon be available to the brand’s worldwide collectors

sector growth

Ongoing aviation sector investment and the region’s global hub status are supporting the company’s commercial ambition as it targets the sharing culture for travel retail growth

Berg’s feel 66 Anthon good factor

88 When art meets cigars OETTINGER DAVIDOFF

CEO Hans-Kristian Hoejsgaard feels Davidoff has found its rightful place as a strong member of the global arts community

ANTHON BERG

The popular confectionery brand is winning sales by tapping into the trend for being generous, with bespoke promotions planned for Asia and MENA

68 Inside the bag business

90 Thundering from the cape DISTELL

South Africa’s largest wine and spirits company continues to have an exciting year in travel retail, with multiple launches and relaunches

BAG REPORT

With a host of new products, strategic openings and special events that will lead us into 2015, bag and luggage suppliers are pulling out all the stops to make sure their designs are snapped up

72 Three times a charm DIAGEO GTME

Diageo pulls out all the stops with a fresh, high-profile Johnnie Walker Blue Label activation, new team members and a Johnnie Walker House in Mumbai Airport

Qatar Duty Free

A curated retail

experience by

FAYE BARTLE

Qatar Duty Free has orchestrated a world-class shopping environment at Hamad International Airport built around original concepts and international favorites that set a new standard in travel retail

atar Duty Free officially commenced its operations on May 27 when flag carrier Qatar Airways moved into Hamad International Airport (HIA), prompting the red ribbon to be cut on 40,000 square meters of retail and food and beverage. The grand unveiling has been the subject of much excitement in the travel retail industry in the months leading up to the opening—not least for the team behind the venture. “It is very exciting to see HIA come to life after all the hard work it has taken to reach this point, and to see our vision of a world-class shopping environment at Qatar

Duty Free with globally recognized brands and innovative dining options becoming a reality,” says Keith Hunter, Senior Vice President of Qatar Duty Free. “The positive feedback we have had from passengers passing through the airport and our retail area for the first time has been overwhelming. People are impressed by the unique design and layout of HIA, as well as Qatar Duty Free’s wide variety of bespoke concepts, and boutiques from leading international brands across all categories.” “There are a number of elements that contribute to making our retail area unique, including the combination of recognized global brands such as Harrods, Hugo Boss, Rolex, Hermès and Tag Heuer to name a few, mixed with our original concepts that have been designed and curated to give HIA a distinct identity,” says Hunter.

Exclusive ideas

Keith Hunter, Senior Vice President, Qatar Duty Free

One of QDF’s new bespoke store concepts at HIA is Esquire, a fashion boutique aimed at businessmen that offers a wide range of leathergoods, travel accessories, apparel, skincare and electronics. “The name Esquire was chosen because it immediately denotes a sense of quality and craftsmanship,” says Hunter. “With so many male business travelers passing through our doors on a daily basis it made perfect sense for Qatar Duty Free to have a retail boutique dedicated to them.”

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

There’s also Marmalade Market, which is stocked with epicurean delights including gourmet food gifts, Arabian specialities, tea, coffee, oil, vinegars, honey and preserves. “The Marmalade Market concept is a result of several months of market research that we gathered from passengers traveling through the old Doha airport,” says Hunter. “We asked hundreds of passengers what they felt was missing from the retail mix there and in other regional airports. We were surprised to learn that many people mentioned a lack of regional specialities and gourmet food items—hence Marmalade Market.” HIA also features a chocolate-themed concept counter, Chocology, which serves up everything from fruit dipped in chocolate, to truffles and Godiva’s renowned Chocolixir drink, with Godiva chefs on hand to carve out chocolate creations on request. “Chocology is proving to be one of our guests’ favorite concepts,” says Hunter. “The feedback so far shows that they really enjoy the interaction of watching specially trained Godiva chocolatiers prepare handmade chocolates and appreciate the wide selection of freshly made confectionary on offer.” Additional store concepts include Pulse (consumer electronics store), Bumble Tree (toys), Junction (contemporary fashion), Boulevard (high-fashion accessories) and GMT (Swiss watches).

The grand unveiling of Hamad International Airport been the subject of much excitement in the travel retail industry

Hamad International Airport, Qatar

Dining on location

To satisfy the appetites of shopped-out travelers, the new hub also boasts more than 30 international food and beverage outlets spread over more than 15,000 square meters. From Arabic and Asian cuisine, pizza and pasta, salads, frozen yoghurt, caviar and more, there’s something to suit all tastebuds. “All of this adds to the overall appeal of the retail and dining area,” says Hunter. “We cater for an incredibly diverse clientele with a wide variety of needs and preferences, which is why you will find a broad spectrum of shopping and dining options at HIA. From relaxed casual dining restaurants serving Arabic food and Asian cuisine to handmade chocolates in Chocology or premium cigars at Cedar Room, we have endeavored to provide something for every passenger who passes through the airport. The one element that unites all the Qatar Duty Free outlets at HIA, however, is quality.” Indeed, there could be scope to export QDF’s original store concepts around the world in future. As Hunter says: “I believe that each concept has such a strong identity that any one of them could work in isolation outside of HIA.” For now, regular promotions and special offers are helping to stimulate sales. One of the most popular this year has been the QDF discount voucher booklet that gives passengers 15% off a wide range of products and brands. www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

Qatar Duty Free

As with most new launches, however, the temptation to carry on refining the proposition is only natural—something that Hunter and his team are, so far, managing rather successfully to resist. “We think we have succeeded in creating a feeling of space and flow in and around the outlets at Qatar Duty Free. We want all our passengers to feel comfortable and at ease while enjoying their time at HIA and the feedback so far shows that we have been successful in achieving this goal,” says Hunter. “As for what may need tweaking in the future, we will continue to listen to our guests’ feedback and take on board whatever they may have to say. If we discover that there are elements that need changing, then, of course, we will do everything we can to improve those segments. For now though, based upon the feedback that we have received so far, passengers are very content with the new Qatar Duty Free.”

Up in the air

As Qatar Airways grows its fleet—it has added 10 new routes to its network already this year—it can be a challenge to keep the in-flight retail offer fresh and enticing. “It is very exciting to see how fast the Qatar Airways fleet is growing and to keep up with the pace we are constantly adding new products and promotions to the Qatar Duty Free portfolio,” says Hunter. “In order to facilitate this we regularly send members of our team to key duty free events, such as the annual TFWA Exhibition and Conference in Cannes, to source new and exclusive products. Of course, we look at what other key airports are doing while we are on our travels to ensure we are always ahead of the game.” Key to the strategy is finding ways to engage passengers at various touch points from arriving at the airport to disembarking the flight. “From the moment passengers begin their journey with us, we are engaging with them through a variety of different platforms,” says Hunter. “They are targeted with digital screens and literature such as maps, our retail guide and monthly promotions throughout the airport and, once on board, with in-flight screens about HIA and QDF shopping, as well as our duty free shopping magazine, Extravaganza. Our inflight magazines Oryx and Oryx Premium

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

are another key source of information. Many of our passengers also engage with us on their handsets or tablets at different points throughout their journey via our social media channels that are regularly updated with offers and promotions.” With this year’s biggest launch behind them, however, QDF is ramping up the proposition another notch by bringing in a second wave of gems. “Passengers traveling through the airport later this year and next year will notice a constant evolution of F&B and retail outlets,” says Hunter. “Next on the agenda is the opening of Red – a fun, relaxed café giving the 50s-diner style a modern twist – as well as the launch of Giorgio Armani, Montblanc, Chopard, Eye Q, Bazaar, Armani Junior, Al Motahajiba and Hugo Boss boutiques.” With so much still to come, flying into Qatar has never looked so appealing. 

Break free from category restrictions. Beauty products for shiny hair and radiant skin. Visit us at TFWA World Exhibition 2014 • Mediterranean Village / P14 Contact us for beauty POS solutions: Klaus Mellin • mellin.k@pg.com • www.braun.com/global

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Dubai Duty Free

Dubai Duty Free’s

HIGH-SPEED

SUCCESS With US$3 billion sales forecast by 2018, Dubai Duty Free’s Executive Vice Chairman Colm McLoughlin explains how the retailer is on the fast track to success 14

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

s travel retail giants go, Dubai Duty Free (DDF) is one of the most impressive around. The visionary company with the charming heritage continues to dominate the landscape with its impressive growth, smart strategies and numerous accolades, yet the main man behind the brand, Executive Vice Chairman Colm McLoughlin, couldn’t be more approachable. Indeed, when you talk to McLoughlin, you know you’re going to leave the conversation feeling more intelligent. Wise yet humble, he delivers the facts in a fuss-free way, which is why, when he speaks, people like to sit back and listen. Lucky for us, he has lots to chat about. For starters, Dubai International (DIA) is set to take the mantel as the busiest airport for international passenger traffic by 2015, overtaking London’s Heathrow Airport in the first quarter of 2014. DIA is expected to surpass 70 million passengers this year and ultimately exceed its target of 100 million passengers by 2020. The emirate’s accelerating aviation industry must be enough to test even the most seasoned businessman’s limits.

“It is very exciting to be working at such ‘high speed’ and to be very much part of Dubai’s overall long term strategic plans,” says McLoughlin. “The strategic plan of Dubai Airports and all of its stakeholders, including Dubai Duty Free, is for Dubai’s

two airports to grow significantly with DIA’s capacity increasing to 90 million with the opening of Concourse D in early 2015.” DDF will operate an area of 7,000 square metres in the new concourse, bringing its retail footprint at DIA up to 33,000 square

metres. In its entirety, the new concourse covers some 65,0000 square metres and will be the home of more than 100 airlines that currently operate from DIA’s Terminal 1, Concourse C. The new building, which will be linked to Terminal 1 via an elevated train, is designed around a central atrium, as opposed to the long, linear structures of the nearby concourses. “The overall design is very bright and spacious with some interesting architectural features. There is ‘open gate’ boarding for passengers so traditional holding areas will not exist and passengers can board their flights directly from the gate,” says McLoughlin. “The Dubai Duty Free offer is within the central atrium, along with the food and beverage outlets, making it a very vibrant and dynamic environment that is easily accessible for all passengers. The furthest gate is only a ten-minute walk away.” At the other end of the city, business at Al Maktoum International (AMI) at Dubai World Central, which opened on 27 October 2013, is faring well. Year-to-date, AMI recorded sales of over US$15.5 million,

New product formats designed speciﬁcally for the Travel Retail and Duty Free sectors. This delicious collection contains some of our most decadent recipes including Sticky Toffee and winner of Gold Great Taste 2013, Death by Chocolate.

NEW

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

Dubai Duty Free

Refining the approach

accounting for 1.2% of total DDF revenue. “It is early days yet, but so far we have had very positive feedback,” says McLoughlin. “The new airport will increase the number of airlines it serves in due course, but from a retail point of view, we have 2,500 square meters of retail space and the product listing there seems to work for the passenger mix, but obviously we will continue to monitor this.” Ultimately AMI will handle around 220 million passengers with 65,000 square metres dedicated to retail with a government edict that Dubai Duty Free will operate all of it.

Welcoming more visitors

Hand in hand with all the new developments springing up in Dubai over the past few years—which include world-class attractions, top hotels and transport links —the emirate has found itself at the centre of a “perfect storm” in the Middle East as a popular destination for tourism. Dubai’s hotels welcomed more than 5.8 million tourists in the first half of 2014, which marks the highest H1 visitor numbers the emirate has ever achieved. It’s a sure sign that the city is well on the way to achieving its target of 20 million annual visitors by 2020 when World Expo will take place. That’s not forgetting that the mega event itself is expected to attract an additional 25 million visitors during the six-month

exhibition period, 70% of which will be from overseas. “It is a very exciting time and we are in a very exciting position in terms of the ongoing plans for the growth in aviation, tourism and infrastructural development in the UAE,” says McLoughlin. “Dubai is a dynamic city and the successful bid of the UAE for Expo 2020 is testament to the long term strategy that is in place to ensure that the UAE is a global destination. The increase in the number of visitors expected to travel to Dubai during Expo 2020 will obviously provide us with a great opportunity to showcase our retail offer, to provide travelers with an exceptional range of quality products at value for money prices.” In the meantime, DDF is constantly reviewing its retail offer across both airports. “These have been busy but exciting times and as a result we have been able to introduce new products and services that underline our position as a first class retailer,” says McLoughlin. “We have worked closely with suppliers to ensure that we have the latest products available and, where possible, that we have travel retail exclusives. We have introduced new technology to ensure that our customers are served quicker and we now employ around 6,000 staff to ensure that the level of customer service continues to be of the highest standard.”

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Currently there are four main source markets (or regions) that account for 75% of DDF’s sales—Europe, the Far East, the Middle East and the Sub-Continent, but as a single nationality Chinese and Indian are the highest. “There are many trends, not least of which is the demand for high-end luxury goods that is being mainly driven by the growth of the Asian travelers and in particular the Chinese,” says McLoughlin. “Chinese passengers currently make up 4% of total traffic at DIA and yet they account for 12% of our sales, so they are obviously big spenders. Our response to this growth has been to recruit 470 Chinese staff, to have specific promotions especially around the time of the Chinese New Year and to increase signage in Mandarin. We also accept the Chinese currency and the Union Pay card, the biggest card in China. “But of course our job is to ensure that all of our passenger needs are catered to and we are equally conscious of providing passengers traveling to the subcontinent with their goods, whether it is Nido powdered milk, of which we sell over 900 tonnes per year, or bars of gold which are purchased as an investment. We try to meet all demands.” DDF’s online business is also growing with almost 3,000 products now available to buy online and collect at the airport. In May 2014, DDF launched a new online shopping portal to help boost sales. Now, customers are able to browse a catalogue of selected products with an option to pre-order online. The items pre-ordered are collected from the airport at the time of travel upon making the payment with a series of collection desks being rolled out across all terminals to ensure easy pick up. “Buying online is obviously a major convenience for travelers who may have limited time to visit the retail offer and we therefore think that this will be a good way to look at incremental sales,” says McLoughlin. Of course, as the scale of the organization grows, so does the team behind it. Due to the massive expansion plans in place, it’s anticipated that in five or six years’ time, DDF will have around 7,000 to 8,000 employees. With DDF’s business growing fast and steady at around 11% each year and US$3 billion sales forecast by 2018, however, some may argue that we’ve only seen a glimpse of what the company, and its loyal family, is capable of. 

International Duty Free Shops

IDFS presents the

last good buy by

FAYE BARTLE

Having undergone an impressive brand refresh drawing on Morocco’s rich heritage, International Duty Free Shops (IDFS) is welcoming a new era of success

Traditional categories account for 92% of IDFS’ sales

Increasing its selection of wines from around the world has paid dividends for IDFS

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

n the fast-paced world of duty free, retailers need to move with the times in order to stay successful. Hitting the right note with consumers, however, can be a challenge when expectations are high and competition is fierce. IDFS is not one to shy away from a challenge though and as such the Morocco-based retailer has implemented a brand repositioning in order to strengthen its standing. The move marks IDFS’ 25th anniversary and, says Executive Vice President Christopher Tantoco, serves to transform the brand to better serve its loyal customer base and “reflect the country’s rich culture and natural beauty.” The upgrade has been carefully orchestrated to channel the heritage of IDFS and provide travelers with an authentic shopping experience at the same time. “Our customers are at the heart of all that we do, so we wanted to create an environment that will remind them of the memorable experiences they had in Morocco,” he explains. “Inspired by Moroccan architecture with a modern twist, our shop designers have created a series of ‘riads’ to highlight each merchandise category and transport customers to the areas they visited in the country while shopping for top-selling brands at the best prices.” To help with showcasing the best of the destination, the retail areas now boast a color palette of rich ivory with sea and sky inspired blues enhanced with classic Moroccan design features. These elements can also be seen in the company’s new logo, which is inspired by the local culture. “The classic diamond shape is used due to its timeless distinction,” says Marketing Manager Candice Medina-Tantoco. Softer in

International Duty Free Shops

IDFS added Michael Kors and Ermenigildo Zegna into the fragrance category during the first half of 2014

IDFS’ store at Casablanca’s Mohammed V Airport

Tobacco is IDFS’ best performing category

shape, the logo is said to reflect the changing environment of travel retail as well as the company’s resilience over a quarter of a century. “An outward extension of the diamond is fused signifying the synergy between IDFS, our partners and our customers, which further reinforces our motto of being your ‘Last good buy before you fly!’,” she explains. All the changes have been applied to the retailer’s flagship location in Casablanca’s Mohammed V Airport. On top of providing a fresh new look, the facelift represents a strategic move to engage customers and win business. “We looked at the emotional connect of the brand with the customers and have strategically repositioned ourselves around this, effectively differentiating IDFS from the competition,” continues Christopher Tantoco. “This emotional connect partnered

with the superb retail experience and the best prices will ultimately drive loyalty and build our business.” All this feeds into IDFS’ overarching goal to stand head and shoulders above the rest. “From a holistic business vantage point, the company has repositioned to be the most competitive in the African region,” says General Manager Roberto A. Hukom. “The thrust is on the redesigned business model, which is anchored on the mission, vision and corporate values of the company. Ultimately, this creates a new dimension for the company’s re-launch under the new management team.”

Perfecting the proposition

When it comes to the product mix, IDFS relies on a tried and tested format, with some added extras.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

“Traditional categories are the most lucrative for IDFS,” says Tantoco. “These include tobacco, wines and spirits, confectionery and fragrances and cosmetics, which together contribute 92% of the global sales of the company.” During the first half of 2014, IDFS successfully launched Michael Kors and Ermenigildo Zegna into the fragrance category, and Starbrook Airlines within confectionery. The best performing category, however, continues to be tobacco. “With a lot of regulatory movement in the European Union to tax tobacco, the relative prices in countries such as France, UK, Ireland and Italy have made our products particularly attractive from a price point perspective,” says Tantoco. “There’s a strong push by suppliers in the cigar category, specifically for roll-your-own tobacco, plus a shift in packing to smaller quantity items that has

IDFS Executive Vice President Christopher Tantoco

Future-proofing the business

IDFS’ store at Casablanca’s Mohammed V Airport

The cigar category is experiencing a strong push at the moment

made this particular sub-category attractive, as most buyers who wish to experiment don’t have to be saddled with huge purchases.” Liquor and wine is another strong performer. “Varying our selection of wines to include more countries and appellations has definitely been advantageous to us,” says Tantoco. Still, with travelers’ shopping needs evolving all the time, it is important to keep a finger on the pulse of changing consumer preferences. “As the majority of our passengers are coming from the EU, certain factors have shaped the shopping needs of passengers in the recent years,” says Tantoco. “The first is continued weakness of economic conditions in the EU, which has made passengers very price conscious. The second is the proliferation of budget airlines and their continued tieups with the Moroccan government that has

brought an influx of passengers with money to burn. In addition, regulatory issues on tobacco have led to duty free prices becoming very competitive. There are also strict regulations on the maximum allowances for products brought into the EU by passengers that have shifted consumer preferences along the lines of those limits.” In order to make the most of the opportunities as they stand, IDFS is working hard to encourage shopping and inspire passengers to make a purchase. “Our customers are at the heart of all that we do,” says Tantoco. “This is why we have made the recent changes in order to create an environment that will maximize dwell time, customer flow and properly present each top-selling brand and product. These factors, combined with the best prices and personalized customer service, are what makes us the leading duty free retailer in Morocco.”

With the landscape growing even more competitive, IDFS is investing in research and analysis to make informed decisions about its future. “We continue to keep our ears on the ground and note the changes taking place in Morocco and in the countries our customers are coming from. We have stepped up the information gathering from our people in the field [the store personnel] so that we can always be attuned to the needs of passengers in every specific location we serve,” says Tantoco. “We listen to suppliers and analyze trends in global consumer preferences and juxtapose that versus our feedback from the stores. We continue to find new products to capture the attention of customers, along with new and innovative means to create value for them when they shop with us.” A vital element is a back to basics approach in terms of overall customer service with enhanced marketing to ensure that the right message is reaching the customers. IDFS also monitors competitor trends, always aiming to stay a step ahead. “We’ve had over 25 years of successfully serving the travelers of Morocco and have always placed a great deal of emphasis on our customers,” says Tantoco. “Serving 10 different airports in the country, with varying types of customers, from returning locals to businessmen and tourists, we have always stayed abreast of their needs. With this in mind, our loyal customers should expect more location-specific marketing and merchandising that will also attract a new audience of younger world travelers who embrace great service and great prices found in one-of-a-kind shops.” Ultimately, the recent changes are not intended to signal a new direction for the company, but merely to ramp up its best attributes. “While we are changing how we look and launching a new logo, we will still adhere to our timeless values, one of which is excellence,” says Tantoco. “Our mission for excellence will strengthen our position in Morocco’s competitive duty free industry, equipping us to serve our customers for another 25 years and strengthening our claim of being the ‘Last good buy before you fly!’” 

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

Abu Dhabi Airports

On the rise by

RYAN WHITE

With an exceptional H1 in the books, Abu Dhabi Airports looks to make the second half of the year just as memorable

Fragrances is the most popular duty free category at Abu Dhabi International Airport

bu Dhabi Airports has had a stellar year so far, with Abu Dhabi Duty Free achieving record sales in the first six months of 2014, reaching AED487.9 million (US$132.8 million), which represents a rise of 11.5% compared to the first six months of 2013 (AED437.6 million, or US$119.1 million). The total number of transactions in the period was just over 2 million, 12.8% higher than the first half of 2013. A number of new retail outlets opened in the first half of 2014, including two new multi-category duty free stores in the newly opened Terminal 3 Bus gate facility & Pier; refurbished UAE Souvenir stores in both Terminals 1 and 3; and the introduction of a new “Fragrances of the World” store in Terminal 1. During this period WHSmith also opened its second store at Abu Dhabi International airport. Terminal 3 also added to its extensive F&B offerings in its T3 pier with international brands such as Lavatazza, Cinnabon,

Flat White, Grab & Flyurban food market Espressamente Illy. Abu Dhabi Duty Free’s popular Big Ticket opened additional locations around the airport, and during the first six months gave away more than AED 18 million (US$4.9 million) in cash and prizes, along the way creating four AED multi-millionaires and two US Dollar millionaires. Furthermore, in March 2014, Abu Dhabi International Airport opened its new “Fragrances by DFS” boutique. The new boutique, located in Terminal 3, is luxuriously designed and spans over 250 square meters. The store displays a range of fragrances from around the world, many of which are exclusively available in the Middle East. “To ensure we continue to offer a world class experience we are constantly working to improve the passenger journey,” Mohammed Al Bulooki, Chief Commercial Officer at Abu Dhabi Airports, tells Gulf-Africa Duty Free in late September. “Together with our concessionaires DFS we have recently commenced Phase 2 of their major upgrade

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

for stores within Terminal 3 that will enable us to offer a wider selection of fine watches, and a larger and more luxurious cosmetics hall to complement their flagship fragrance boutique. “Phase 3 will commence in January 2015 with an upgrade to the beverages, tobacco and confectionary areas, along with the opening of a new Sunglass Zone,” Al Bulooki continues. All of the above developments have contributed to the growth in sales, with the top performing categories being Fragrances, Luxury Fashion and Jewelry. The main drivers behind this, says Abu Dhabi Airports, have been the introduction of new and exclusive fragrance brands, the attractive spring and summer luxury fashion collections in many boutiques and the attractiveness of the offer at Pure Gold Jewelers. And given the popularity of fragrances at Abu Dhabi International Airport, Al Bulooki gave us the inside scoop on the company’s latest promotion in the category: “We have an exciting fragrance launch this

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Abu Dhabi Airports month—the United Arab Emirates very own Yas Perfumes, which we are particularly proud of. We look forward to sharing this brand with the travelling public in Abu Dhabi,” he explains.

Rapid progress

During the first six months of the year, Abu Dhabi Airports also formally commenced the tender process for retail and F&B concessions at the Midfield Terminal Building, which is making rapid progress and will have an annual capacity of 30 million when it opens in 2017. Most of the world’s leading brands are expected to submit bids, and they have been encouraged to make their proposals as innovative and spectacular as possible, supporting the company’s ambition to offer passengers an experience that is second to none. “We are finalizing the overall commercial space footprints and plan to be issuing our next round of RFPs during the fourth quarter,” Al Bulooki says.

Positive indicators

As good as the first half of the year was for Abu Dhabi Airports, early indicators at press time suggest that the second half could be just as exciting. Abu Dhabi International experienced a 21.7% increase in passenger traffic for the month of July. A total of 1,703,995 passengers passed through Abu Dhabi International Airport in July 2014, compared with 1,399,695 in the same

month of 2013. Aircraft movements reached 13,188, representing a 16.1% increase over the 11,355 movements reported in July 2013. Cargo activity was also on the rise in July 2014 recording 67,456 tons handled, a 5.7% increase when compared to July 2013. Commenting on the latest passenger figures, Eng. Ahmad Al Haddabi, Chief Operations Officer at Abu Dhabi Airports, said: “The rate at which passenger numbers are increasing year on year continues to follow a significant upward trend. Looking at July more specifically, the figures were boosted by the Eid Al Fitr holiday, as well as summer holiday season. July also saw Etihad Airways commence its new services to Yerevan in Armenia and to Perth in Australia.” In July 2014, the top five routes from Abu Dhabi International Airport were London Heathrow, Doha, Manila, Bangkok and Jeddah, accounting for 15% of all traffic. “The success of Etihad and its equity partners is making our passenger growth phenomenal and we are doing our best to maximize the space available in our existing terminals to ensure we still provide an excellent customer experience,” Al Bulooki says.

Just getting started

Also boding well for the second half of the year was the August opening of “Starter Supermarket” at Skypark plaza in Abu Dhabi International Airport. The addition will help Abu Dhabi Airports further serve passengers, residents, visitors and employees

around the airport. Skypark Plaza has an ongoing plan to increase and strengthen the retail and food and beverage offering as the surrounding commercial area continues to grow at a rapid rate. This growth is destined to continue to grow in parallel with the developments in the nearby Abu Dhabi Airports’ Business Park, says the company, as new companies continue to set up in the free zone providing a full range of support services to the growing community. The new supermarket will be open daily from 6 am to midnight, seven days a week, and is stocked up with a full range of everyday items, fresh produce and frozen foods. The bakery will serve freshly baked bread daily and customers will be able to pick and choose from a variety of hot and cold meals. A gift and souvenir section will help with any last-minute gift shopping for those special occasions when you just haven’t had time to get to a mall. The supermarket is accessible to all public from the Terminal 3 car park. “We believe there is a growing demand for quality convenience shopping in this location to serve the neighborhood community and so, in line with Abu Dhabi Airports’ strategy to expand Abu Dhabi International Airport’s retail offering and enhance its customers’ experience, Abu Dhabi Airports is progressing with a variety of new ideas, concepts and improvements within this segment,” concludes Al Bulooki. 

Providing a first-class shopping experience for travelers is ADAC’s top priority at Abu Dhabi International Airport

Jewelry is the number three category for Abu Dhabi Duty Free in terms of sales at Abu Dhabi International Airport

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Bhatia Traders

Revolutionizing

seaport duty free by

FAYE BARTLE

Bhatia Traders is bringing its seaport facilities up to date with libraries, media centers, mini theatres and grooming stations

The Bhatia Traders team at the Port of Fujairah

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Bhatia Traders has a presence at six seaports in the UAE

Rajeev Bhatia, Managing Director, Bhatia Traders

eadquartered in Sharjah, Bhatia Traders has carved a niche for itself in the UAE with its impressive network of six seamen’s clubs, seven duty free shops and eight bonded warehouses across six seaports in the UAE. Active since 1969, Bhatia’s popular stop-offs provide a welcome chance for seamen to relax and unwind, catch up with friends and family across the globe and run basic errands. Of course, there’s also the opportunity to shop thanks to convenience-market-style duty free stores selling a multitude of products including gift items, with useful add-ons such as laptop repair services. Now, the company is ramping up the offer in a bid to improve business. “After successfully setting up shops and seamen’s clubs, we are now considering establishing a Seafarer’s Center that will provide additional recreational facilities such as a library, media center, mini theatre and grooming station,” says Managing Director Rajeev Bhatia. “We are also in talks with foreign exchange centres to provide remittance services to seamen who are onboard for months with limited opportunities to send money back to their families.” Due to the popularity of the live band concept in the clubs, Bhatia is also introducing new entertainment facilities including karaoke. “Our customers spend months at sea so once they arrive at the seaports they like to relax and enjoy recreational facilities at the

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Bhatia Traders club,” says Bhatia. “Ours offer Wi-Fi plus an enticing mixture of entertainment and food and beverage options that inspires them to spend more money. Being innovative helps keep the offer fresh and the seamen look forward to visiting us time and time again.” The healthy flow of vessel traffic has provided a constant stream of visitors to the seaports, but this comes as no surprise considering the Arabian Gulf is rated one of the world’s most active international maritime centers. With an increasing number of cruise liners passing through, Bhatia has also seized the opportunity to negotiate major deals with the ship’s captains to replenish their duty free stores. Confectionery, tobacco, local souvenirs and toiletries are the biggest selling items. In terms of future development, Bhatia Traders is preparing feasibility studies for expanding its network to other seaports. While no new openings are being announced just yet, the company is currently working on expanding its facilities at Hamriyah Free Zone in Sharjah. This modern free zone is home to Maritime City, which was set up to cater to the growing needs of the local marine industry. “Currently more than 500 companies are present at Hamriyah Free Zone and most of the ship repair facilities have moved in at their new berths,” says Bhatia. “We have a 200-square-meter convenience store and café. Our future plan is to set up a mobile duty free outlet that will visit the Hamriyah seaport and provide a convenient shopping opportunity to the seamen.” Bhatia Traders’ duty free outlets, bonded warehouses and seamen’s clubs are located in Sharjah, Jebel Ali, Umm Al Quwain, Fujairah, Khorfakkan, Ras Al Khaimah, Ajman and Hamriyah Free Zone. To find out more, visit www.houseofstbhatia.com. 

Bhatia Traders’ convenience-market-style duty free stores

Bhatia Traders’ Seamen’s Club, Fujairah

Inside one of Bhatia Traders’ seamen’s clubs

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Live band nights are popular and kareoke will soon be introduced

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Heinemann A rendering of the Heinemann concession set to open at Sharm el-Sheikh International Airport’s Terminal

HEINEMANN

eyes organic

GROWTH I

Jens Degner, Director Global Business Development, Gebr Heinemann

t’s been a busy year for Gebr Heinemann and with ambitious plans to expand its duty free concession base in airports from 64 to 90 by 2020, things are only just warming up. Currently one of the biggest moves under the spotlight is the five-year concession Heinemann is set to open at Sharm el-Sheikh International Airport’s Terminal 2 this summer. “Together with our Egyptian joint venture partner from Global Brands and EFSCO, we are now in the final phase of negotiations with the airport authority EAC,” says Jens Degner, Director Business Developement, Gebr Heinemann. “As a retailer entering the Egyptian Duty Free business, it is very helpful to have known the market and the customers for more than 20 years due to our long term distribution

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

FAYE BARTLE

(wholesale) experience with Egyptian B2B customers. On top of this, we are using our experience of more than 20 handover projects for airport retail concessions in recent years. In any case, our new business partners can expect a fair, reliable and employee friendly solution, which is in line with our company values and culture.” While Denger is understandably reluctant to reveal the specifics of the new concession until there is official confirmation from the Egyptian authorities, he is able to offer a sneak preview. “Heinemann Egypt will operate three stores,” he said. “The first is a 773-squaremeter core category unit that will showcase a wide choice of international and local merchandise including spirits, wines, tobacco and confectionery. In addition, a 87-square-meter shop will offer Egyptian

Heinemann products alongside a 28-square-meter accessories outlet. There will also be a 143-squaremeter arrivals store featuring the main core categories.” In terms of design, the shops will evoke “desert and marine landscapes”, with a special regional market among the highlights. “This is dedicated to the main customer groups—British, German and Italian,” says Degner. Elsewhere in the region, Heinemann is supporting its Turkish joint venture partner ATÜ Duty Free to look for new business opportunities, including those in Oman and Tunisia. “At TAV-operated Monastir Airport, ATÜ Duty Free (in which TAV is a shareholder) will take over the concession during the summer, followed by a complete refurbishment of the all duty free shops,”

reveals Degner. Heinemann also has a strong presence in the UAE thanks to it Abu Dhabi based team, which has been working exclusively on the Midfield Terminal project since May 2013. “Together with our Abu Dhabi task force, the most experienced and professional executives from Gebr. Heinemann will be involved in Abu Dhabi’s Midfield Terminal tender project, which shows our ambition in this ‘you have to be there’ marketplace,” says Degner. “Our team [in Abu Dhabi] has enjoyed every moment experiencing this beautiful emirate and its people. Every day we are getting valuable insights into the culture, local hospitality, customer needs and remarkable translation of Abu Dhabi’s Vision 2030.” With the submission date for bids for the Midfield Terminal set for October 1, 2014,

A rendering of the Heinemann concession set to open at Sharm el-Sheikh International Airport’s Terminal 2

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Heinemann will undoubtedly be a force to be reckoned with. The company’s dedication to the bid marks just one part of the overall strategy to achieve global growth. “It is our clear target to expand our current duty free concession base in airports from 64 to 90 in 2020,” says Degner. “To reach this goal, we have to go for great business opportunities in all parts of the world, including Sydney and Abu Dhabi’s Midfield Terminal. “We will carefully evaluate every single business opportunity in the region irrespective of whether it is a chance to expand our distribution or retail portfolio,” he adds. “In any case, our footprint across MENA will be based our company goals to retain our status as a leading company in the long term, to expand faster than the international travel retail market as organically as possible.” 

World Duty Free Group

Racing ahead in MENA

World Duty Free Group is giving travelers the five-star treatment with its premium promotions and high profile new openings by

ey to its strategic development, World Duty Free Group (WDFG) is looking for smart ways to build its business in the Middle East and Asia. “Our priority is to develop the current business and to manage growth in a consistent way throughout the region,” says Pedro Castro, International Operations Director. “At the same time, we are looking carefully for any opportunities or tenders that may appeal to us.” The company recently collaborated with Ferrari and Philip Morris to launch a promotion at Jordan’s Amman Queen Alia International Airport. Featuring an eye-catching display of a Formula One Ferrari racing car from the official 2014 team, the promotion was launched exclusively in Jordan with a view to being rolled out in other airports including Hamad 34

FAYE BARTLE

International Airport in Qatar and Dubai International Airport. Castro explains: “Essentially, we are giving a free gift to customers who purchase two cartons of cigarettes, with at least one of the cartons being Marlboro. It has generated a lot of excitement as passengers can touch the car and take photos of themselves next to it. “We are very proud of this activity as it reflects the nature of our relationship with our brand partners. Indeed, we are very proud that we are able to utilize this good relationship by putting together a premium proposition that creates a fantastic environment for our clients and a great atmosphere in the stores. This helps us journey deeper into the kind of experiences we want to deliver to all passengers in Amman.”

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Partnering up

Nurturing relationships with suppliers is vital when it comes to implementing a successful promotion. “In order to develop a consistent relationship with a supplier, the mutual understanding of both parties’ needs is a crucial factor,” says Castro. “We are very proud to have experienced people in our team, working within reliable and strong relationships with our suppliers that we consider our business partners. The local team and the categories in our head office work very closely together and are aligned in order to reach a common goal and fulfill the objectives. Ultimately, it is all about putting in place a great commercial range of products for travelers.” Evaluating the value of a promotion, however, isn’t just a numbers game. “Obviously the success of a promotion is determined by the impact on sales but

Pedro Castro, International Operations Director, World Duty Free Group

World Duty Free Group collaborated with Ferrari and Philip Morris on a promotion at Jordan’s Amman Queen Alia International Airport

this is not the only objective,” says Castro. “We want to create an environment in the store, build brand awareness and display top products with competitive prices for our customers. I think that all these factors make a promotion successful. Of course, and as I mentioned before, it’s all about generating great experiences for our clients that in the end have an impact in the sales.” In the Middle East in particular, suppliers must bear in mind cultural sensitivities and be able to plan accordingly. “For example it is not the same to display a campaign in Saudi than in Jordan—even if the product being launched is the same,” said Castro. “For us, this local taste is crucial in our commercial strategy. This is something that you can see first when you get to the store, as we are operating under the Amman Duty Free brand, and it is also reflected in the commercial offer.”

As shopping behaviors evolve, so does the offer. “The industry is changing rapidly, mainly due to the customer behavior. Nowadays, the client that travels is becoming more exigent,” says Castro. “Travelers have a great product knowledge and care about customer service and competitive prices. This is why we need to make a difference and always focus on excellence, together with an appropriate assortment and a great shop environment. “Currently, we are noticing maturity in passengers’ behavior. The Jordanian is traveling more and is very demanding about the quality of the services and products”.

Conquering the kingdom

One of the most exciting developments on the horizon is the opening of some of WDFG’s new retail spaces in Saudi

Arabia with its partner, the Al Musbah Trading Group. (WDFG originally won a 10-year contract to operate five duty free shops at Riyadh, Jeddah and Dammam airports in 2007). “We are proud of our operations in Saudi Arabia and grateful to the General Authority of Civil Aviation (GACA) and to other authorities from the kingdom for allowing us to open our first operations in Jeddah in 2012,” says Castro. “The strong collaboration with our partner, Al Musbah Trading Group, is key to continue opening additional stores in Riyadh and Dammam in the coming months.” In terms of what the stores will offer, shopping enthusiasts can expect to see WDFG’s enticing format replicated with promotional areas, event sites and a premium design housing core categories and souvenirs as an added extra. “In general we try to work in the same way with all the suppliers,” says Castro. “It is clear that with some of them we can reach special agreements. This is the case for the worldwide exclusive launch of Boss Ma Vie – Amman international airport was one of the hubs included in the launch. We work closely with all the suppliers in each category, however, and I can say that, in general, the relations with our international and local suppliers are excellent.” 

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

Iraq Duty Free

Lacoste’s back wall inside the Nineveh Terminal

} credentials Iraq Duty Free builds its luxury

Sunglasses on display in the newly renovated Nineveh Terminal at Baghdad International Airport

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Enhanced space inside Baghdad International Airport’s newly renovated Nineveh Terminal marks a move towards a higher-end shopping experience that will help boost sales by 30%

raq Duty Free is making the most of opportunities to enhance its proposition following the renovation of Baghdad International Airport’s Nineveh Terminal. The retailer has seized the chance to expand its shops, giving them a facelift in the process. Its duty free shop in the Departures zone has grown from 300 square meters to 506 square meters while the Arrivals shop has increased from 70 square meters to 100 square meters. Both now feature plush fittings and fixtures identical to those used in Iraq Duty Free’s boutiques in the airport’s Babylon Terminal, which underwent renovations in May 2013. “The extra space we received was not wall space but extra depth in the shop,” explains Nabil Mohsin, Director Business Development, Iraq Duty Free. “The wall units have stayed similar to the old layout, so the main advantage for us is the new bit of space that has been allocated for gondolas and promotions. There is also a two by three meter area at the entrance that is intended for podiums for suppliers to use when promoting a new launch or marketing activity.” Beyond the shops, other services in the terminal that have been renewed as part of the upgrade include the baggage belts in the arrivals area. These have been removed completely and replaced with brand new ones. The coffee shop, restaurants and immigration officer’s desks are also new and even the old bathrooms have been ripped out and replaced.

Iraq Duty Free

A five-star vision

Earlier this year, Iraq Duty Free announced plans to open two Levi’s shop-in-shops at the airport. There has been a slight delay in the unveiling of these, however, due to technical issues relating to the product shipment. In the meantime, the space is being used to showcase Caterpillar apparel. In addition, Lacoste has installed a fourmeter-wide back wall with three nesting tables and two accessory towers in the departures duty free shop inside the Nineveh Terminal. Adding more luxury into the mix is a key objective. “The middle class Iraqi passengers are happy with the existing products available but we are missing an opportunity to target those who shop for high-end products,” says Mohsin. “Our vision is to continue welcoming high-end brands into our assortment and we are currently in talks with several luxury product suppliers.” No doubt providing high-ticket items to wealthy travellers will help Iraq Duty Free reach its ambitious 30% sales growth target for 2014. Already, H1 figures show a healthy 23% hike in sales compared to the same period in 2013 (US$3,954,898.36 compared to US$3,035,478.41). Catering to the rise in traffic that is expected to come as a result of Iraqi Airways’ increased operations at the end of the year will no doubt push the retailer even closer to its goal. An important contributing factor to its success is maintaining a slick operation with swift and precise reorder and replenishment of stock. As such, the company has invested in its administration structure and logistics to ensure supplies move from the bonded customs warehouse to the shops speedily and with minimum fuss. “We have a clear vision of the future,” summarizes Moshin. “The retail space in our shops is relatively compact and limited, however, passengers will notice a gradual and steady shift from mass, mid-range products to more high-end, luxurious buys. Existing brands will make way for new ones and will eventually be replaced in order to create the desired environment.” 

The newly renovated Nineveh Terminal at Baghdad International Airport

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

MEADFA

Dubai growth story dominates

MEADFA Conference 2014 agenda

Retail opportunities presented by destination’s ambitious tourism targets and DWC expansion to be hotly debated by

GEMMA GREENWOOD

ubai’s ambitious plans to boost tourism arrivals, create the world’s largest airport and host the World Expo 2020 will set the tone for this year’s Middle East & Africa Duty Free Association (MEADFA) Conference, which takes place at Jumeirah Creekside Hotel from November 24 to 25. “The opportunities presented by the recently-announced expansion of Dubai World Central – Al Maktoum International Airport (DWC) to the tune of US$32 billion are very exciting for the travel retail industry,” says MEADFA President Sean Staunton. “The challenge for the sector is a good one in that we have to keep pace with demand—the number of air passengers passing through Dubai each year will reach at least 100 million by 2020 and 200 million once DWC is fully operational. “Add to that Dubai’s target to attract 20 million tourists by 2020 plus 25 million during the six-month Expo period and the growth potential for Dubai Duty Free (DDF) is phenomenal.”

UAE clout

The emirate’s determination to realize its vision to “position Dubai as the leading tourism destination and commercial hub in the world”, will be addressed in the MEADFA conference’s opening session, presented by Issam Kazim, CEO of the Dubai

Sean Staunton, President, MEADFA: DWC expansion poses “very exciting” opportunities for travel retail

Corporation for Tourism and Commerce Marketing (DCTCM). Kazim will explain how Dubai is mobilizing its key sectors, including retail, to achieve its goals. The opportunities to create a worldclass travel retail offering at DWC will be highlighted in the closing session on day two, presented by Dubai Airports and DDF. The soon-to-be-announced speakers will reveal how the airport’s commercial space will play a vital role in redefining the air passenger experience. Infrastructure developments in neighbouring Abu Dhabi will also be discussed in depth, with Abu Dhabi Airports Company Senior Vice-President Business Development Dan Cappell updating delegates on the retail vision for the new Midfield Terminal Complex (MTC) at Abu Dhabi International Airport, which will include 28,000 square metres of commercial space when completed. “Dubai and Abu Dhabi are very important to a lot of retail travel suppliers so these sessions will provide them with essential information,” says Staunton. A further indication of the UAE’s pulling power was an anticipated boost in delegate numbers to between 540 and 550, he continues. “This will represent the largest number of delegates the conference has ever attracted, with more interest being registered from

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

outside the region, particularly Europe,” he reveals. The delegate count hit the 510-mark at last year’s Doha edition and its previous record, 518, at the 2012 Dubai event, Staunton confirms.

Program highlights

Another standout session planned for the 2014 conference program, which is organized on behalf of MEADFA by TFWA, is ‘A year in travel retail: highlights of 2014 in the Middle East and Africa’, which will outline this year’s travel industry milestones. Opportunities for sector expansion are evident in Egypt, Oman and Kenya where major retail tenders have been announced, says Staunton. On the flipside, the MEADFA Debate will foster lively discussions about whether or not retailers do enough to support suppliers by providing an environment appealing enough to help brands thrive. By the same token, the session ‘Challenges to growth in the Middle East’ will provide a run-down of regulatory and legislative measures that threaten the travel retail sector’s prosperity. “For example, tobacco legislation impacts our industry and we are already working with the relevant authorities to find a winwin situation,” says Staunton. “The MEADFA conference is a good forum for this type of debate, bringing together duty free authorities from all

over the world to exchange ideas, trends and experiences. “We are always keen to hear what is happening in the duty free market in other parts of the world, in order to prepare us for what might happen here.”

Building BRICS

In addition to speaker presentations, MEADFA 2014 will offer workshops based on delegate feedback that last year’s conference format benefitted from this education offering. One session will look at how new developments in technology and connectivity on board aircraft could enhance the in-flight retail experience to new levels. Speakers including John Baumgartner, Director of Business Development at Nordic travel retail specialist Inflight Service Europe AB, Sweden and Gary Mayger, Sales & Business Development Director EMEA at GuestLogix, will cover subjects such as marketing, customer engagement, product range and assortment display. The second workshop, ‘Understanding BRICS travelers’, draws on recent TFWA research studying the buying patterns of travelers from BRIC nations. Counter Intelligence Retail Managing Director Garry Stasiulevicuis will lead the debate on this topic, asking senior industry representatives for their views on whether or not current airport retail offerings are catering well to these lucrative markets and how the Middle East’s duty free sector can get in on the action.

Staunton says that 4% cent of travelers passing through Dubai International were heading to China, but accounted for 12% of Dubai Duty Free’s (DDF’s) business. The Chinese market accounted for 35% of skincare sales and 39% of watch purchases, he revealed. “We have noticed that Chinese passengers used to be very brand conscious, but now they are more price aware,” Staunton notes. “This is our fastest growing market.” Russian travelers remained “significant buyers” he continued, while passengers travelling to the Indian SubContinent commanded DDF’s largest proportion of sales at 22%.

Africa’s potential

Africa is another growth market, with passengers traveling to the continent accounting for 24% of all electronics purchased at DDF. “Around 8% of our passengers flying to Africa represent 12% of our business and these consumers are much more brand driven than they used to be,” says Staunton. “Africa is a very interesting market and one of the conference sessions, ‘Re-imagining Africa’, presented by Brand Leadership Founder Thebe Ikalafeng, will look at African consumer demographics, tastes and disposal income.” Duty free sales in Africa are growing 10.9%, outpacing the global increase of 7.5%. Africa was incorporated into MEADFA (formerly MEDFA) in 2013.

“A number of our members operate in Africa and so it was the natural progression of our association to include the continent,” says Staunton. MEADFA’s three newest members Heinemann Duty Free, Groupe Mado and LS Travel Retail – have a strong African presence, he noted. “As we look to boost our membership, we see gaps for more representation from East and West Africa, particularly Kenya and Nigeria (respectively),” Staunton adds.

Sponsors and supporters

MEADFA 2014 is supported by several partners and sponsors including official airline, Emirates; DDF (gala dinner); Dufry Sharjah (welcome cocktail); and Platinum Sponsors Pernod Ricard, Imperial Tobacco, ARIME, Bahrain Duty Free, Airstyle Travel Retail and Heinemann Duty Free. Staunton says the event was well timed for delegates seeking to maximise business and leisure opportunities during their visit to Dubai given it coincided with travel retail show Middle East Exclusive (November 25 to 27 at Dubai World Trade Centre) and dovetailed with two mega sporting events - the Abu Dhabi Grand Prix (November 23) and Dubai Duty Free World Cup golf tournament (November 26 and 27). “Many of our delegates attend all of these events to make the most of their trip,” he confirms. 

The growth potential of the African duty free market remains a hot topic for debate

The MEADFA conference is the place to “exchange ideas, trends and experiences”

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Middle East Exclusive

New watch and jewelry suppliers are set to exhibit at MEE 2014

MIDDLE EAST EXCLUSIVE looks forward to bumper 2014 edition Region’s leading travel retail event attracts new exhibitors and visitors, fuelled by global aviation industry growth

T by

GEMMA GREENWOOD

he 2014 edition of Middle East Exclusive (MEE) is shaping up to be one of the biggest in the show’s 11-year history, driven by a surge in global aviation market growth, the event’s organizer, Channels Exhibitions, has revealed. “We are on target to secure between 80 and 100 exhibitors, who will represent many more companies, distributors and brands,” says the Dubai-based exhibition specialist’s CEO, Justin Boutros. “This represents a 40% increase in exhibitor numbers compared the 2013 show with many new suppliers coming on board across all categories including tobacco, wines and 42

spirits, jewelry, watches, perfume, fashion and fashion accessories, plus gifts, confectionery and souvenirs.” The swell in business could partly be attributed to a booming aviation market, he says, with the fast-paced growth of airlines and aviation infrastructure in the Middle East playing an influential role. “You only have to look at the number of aircraft Emirates and flydubai are receiving each month to see where demand is coming from,” he comments. “Plus add to that the development of new airport facilities, particularly at Dubai International and the new Dubai World Central (DWC) where large amounts of space is being dedicated to duty free retail.” Emirates Airline is currently receiving at least two ordered aircraft per month on average, while Concourse D at Dubai International is expected to open in Q1, 2015, taking the airport’s capacity to 90 million annually.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

“The airport recently took number one slot for international passenger traffic over London Heathrow,” says Boutros. “Dubai is a major hub for trade and the Middle East’s biggest duty free market by far.”

Buyer boom

Boutros says the number of visitors attending this year’s MEE, which takes place at the Dubai International Convention and Exhibition Centre (DICEC) from November 25 to 27, was also on the rise, with the total expected to hit the 1,300 mark. “They include duty free buyers from airports, airlines, cruise lines, ships, ship chandlers, border shops, luxury hotels, retailers, importers,” he reveals. “Distributors visit the show from the Middle East, Africa, CIS nations, East Europe, Turkey, Iran, Kazakstan and the Indian sub continent, amongst other countries.” Between 20 and 25 buyers will be hosted by Channels Exhibitions.

His Highness Sheikh Ahmed Al Maktoum (left) and Channels Exhibitions CEO Justin Boutros (middle) meet delegates at MEE 2013

MEE 2014 will secure up to 100 exhibitors, representing a 40% increase on 2013, revealed show organizer, Channels Exhibitions.

“They will represent India, Asia and the ‘Stan’ countries, which are key growth markets for travel retail due to the number of new airlines coming out of these regions,” Boutros explains. Delegates attending the Middle East & Africa Duty Free Association (MEADFA) Conference at Jumeirah Creekside Hotel from November 24 to 25 are also expected to pay a visit to MEE. “MEADFA recommends its members take part,” he says. “The two events complement one another perfectly; we provide the exhibition and the trading opportunities while MEADFA offers the educational program.” MEE, which is the only travel retail show of its kind in the Middle East, is supported by one of the world’s top duty free retailers,

Dubai Duty Free, and staged under the patronage of His Highness Sheikh Ahmed, whose many titles include Chairman and Chief Executive Emirates Airline & Group, President Dubai Civil Aviation Authority and Chairman Dubai Airports. The 2014 edition will be opened with a ribbon-cutting ceremony attended by Sheikh Ahmed if he is available, or a dignitary designated by his office. Boutros says the event’s social program was yet to be finalized but was likely to include an evening networking function or gala dinner.

Onwards and upwards

With the 2014 edition of MEE expecting a strong turnout, Boutros said he was already looking ahead to 2015 when several factors

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Middle East Exclusive will take the show to new heights. The continued development of both the mainstream and low-cost carrier sectors will set the pace for growth, with buyers from independent airlines visiting to source new and innovative products. Channels Exhibitions was also poised to join forces with a “major industry player” he reveals. Details of the partnership are being kept under wraps but Boutros says it would result in a “much bigger show” next year. “I would also like to reiterate to industry suppliers and buyers who make money out of Dubai’s travel retail sector, but don’t attend MEE, to give something back and fly the flag for the emirate by supporting the show,” Boutros concludes. 

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Years of Challenges Ans de DĂŠfis

Tourvest

Breaking new ground in the air

Tourvest is not satisfied to just supply an airline with products to sell; it wants to revolutionize in-flight retail, bringing profit to its airline partners and satisfaction to their travelers by WENDY MORLEY Tourvest prides itself on discovering and carrying unique items that customers love, such as their new line Artisan Beads, a hand-designed collection of traditional artisan and bohemianinspired jewelry

T Joe Harvey, Chief Sales and Marketing Officer at Tourvest, says the company understands the consumer on the move

his has been a year of change for Tourvest, starting with its name, which became Tourvest Inflight Retail Services from Tourvest Duty Free, and adding a simultaneous revamping of its executive team. With that, the company announced its clear plans to establish itself as an industry leader in in-flight retail. If early returns are any indication, the company’s plans are working very well indeed. Its vast collective experience in all areas of the travel retail industry enables the new executive team to help its airline partners remain at the cutting edge. Of course the in-flight division is also part of the greater company Tourvest, the largest travel and tourism company in South Africa. This allows the in-flight division to look at the customer experience from a more holistic, all-encompassing viewpoint and, ironically, create a more personalized approach. Joe Harvey, Tourvest Inflight Retail Services’ Chief Sales and Marketing Officer, says: “We are using an omni-channel retail design, and we’re embracing Big Data and customer personalization. One size doesn’t fit all and recent research shows that 61% of passengers want this. Transformative technologies will herald a new era in the in-flight duty free experience and we are at the forefront.”

A fresh partnership

Tourvest is looking to partner with airlines and strategically work with them to create successful ranges. The goal is to be an integrated component of the airline business and not merely a supplier. Harvey 46

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

says the company is in the right position to achieve this because its team understands the traveler’s complete journey. “We have a new fresh approach, especially around our customer personalization program and tailor-made retail programs. We are open, honest and fully transparent with airlines, and we don’t over promise.” According to Harvey, Tourvest is prepared to push the boundaries of current product and price-point offerings that will effectively separate the company from its competitors. “Our merchandise division constantly seeks out non-traditional travel retail suppliers to add value and innovation,” he says. Indeed, roughly 20% of its 400 suppliers are new to the world of in-flight retail. The company has launched an incredible 161 new brands to British Airways’ line-up including Bio-Effect, Philip Stein Sleep bracelet and Phillips Picoh pix projector. Many of these brands then found their way into other airline catalogs. Now, one step ahead of the in-flight travel retail curve, Tourvest recently launched HD Brows, Kiehls and the American fragrance Bond Number 9, and will soon launch the skincare line Egyptian Magic. Tourvest Inflight Retail Services is focused on creating customized ranges that reflect the airlines’ unique approach, the nuances of different populations and the individual preferences of passengers. Says Harvey, “It’s that intimate knowledge of the consumer on the move that makes Tourvest such a potentially powerful force in in-flight retail.” 

The Estée Lauder Companies

Engaging the global traveler

Developing a better understanding of travel retail consumers and ramping up efforts to engage with them is all part of The Estée Lauder Companies’ winning strategy by

HIBAH NOOR

Clinique Smart Custom-Repair Serum delivers targeted repair to address the skin’s changing needs

hen it comes to fragrance, cosmetics and skincare, understanding consumers and their buying patterns is a vital part of sales success. One could argue that no company in the P&C category knows this better than The Estée Lauder Companies, which has successfully grown its business into a multibrand empire catering to a diverse mix of market segments. Jean-Charles Séité, Vice President, General Manager, Travel Retail Europe, Middle East, Africa, The Estée Lauder Companies, recently spoke to Gulf-Africa Duty Free about the traveling consumer, and steps the company is taking to engage with this important customer on a deeper level. When it comes to travel retail shoppers, says Séité, shopping normally takes on a tried-and-true pattern. “Travelers tend to first look for the brands and products they know and like, and secondly look for new brands and categories such as gifting options. After that, they look for products or sets that are not available in local markets… Traveling consumers are also looking for the same high-touch service that is found

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Jo Malone’s Wood Sage & Sea Salt Collection was introduced to travel retail locations worldwide in September

on the high street, coupled with moments of theatre where at in-store events they may experience and engage with the brand.” Engaging with the brand is an increasingly critical part of the puzzle, stresses Séité, and one way The Estée Lauder Companies is intensifying its interaction with customers is through digital engagement. This modern, high-tech form of interaction marks a growing trend within retail environments and is proving highly successful in strengthening the brand-customer relationship. It provides a host of new opportunities for brands to give customers a very real, tangible and personal way to interact with a brand, and to see the fruits of their labor, often immediately. “Digital engagement with the consumer is a capability that is evolving fast and we are constantly reviewing ways in which to engage with the consumer at another level of communication,” explains Séité. In November 2013, for instance, Estée Lauder held a Modern Muse Digital Activation campaign that empowered consumers. They were encouraged to upload their muse via an iPad as part of an in-store event. “By uploading a quote and photo of who their inspiration was, either directly through the Modern Muse app at counter or by texting,

Tom Ford Velvet Orchid is an uber-feminine variant of the brand’s successful Black Orchid fragrance

the consumer could see their contribution come to life and be streamed on the event plasma screens in real-time,” says Séité. “This type of digital campaign builds brand engagement and advocacy whilst creating relevant content that becomes part of the campaign story.” While communication with the consumer may take on a high-tech form, the customer’s basic needs and desires in the travel retail channel remain unchanged, notes Seite, adding that there aren’t really any new trends being noted in consumer behavior. Customers are still looking for better communication, a better understanding of what travel retail stands for, and what is offered in term of value, savings, exclusive products and gift sets. As a result, a focus for Estée Lauder remains “to clarify all offers for the consumer and ensure that navigation within the department and particularly at our counters is easy both visually and via written communication.” In particular, the company is focused on examining shopping patterns of traveling consumers, and this includes the increasingly important “travel corridors” – such as those in the Middle East and Asia. Understanding these corridors and the people

who use them allows The Estée Lauder Companies to select the right products and strategy for each airport. No longer, notes Séité, is it just about regional relevancy; rather, it is about global corridors that may attract certain key demographics. “Travel corridors of consumers are an important consideration today and as important as regional relevancy,” says Séité. “For instance, where do the Chinese, the Russian and the Brazilian consumers travel and shop? This pushes us to make ourselves aware of the travel patterns of other nationalities as well. Travel retail is becoming more complex in that sense, as we have to react and adapt quickly to new patterns.”

New launches

While effectively engaging customers is clearly an important aspect of sales success, so too is providing them with new and exciting launches to keep their interest alive year in and year out. Here too, The Estée Lauder Companies has a few winners up its sleeve, including three recent launches it is highlighting at this year’s TFWA event in Cannes. On the list is Clinique Smart CustomRepair Serum, which delivers targeted

repair to address the skin’s changing needs. Five years in the making, Clinique touts the Serum as their “most powerful, yet gentle serum… ever developed.” The product harnesses the power of 37 patents to deliver custom repair to both visible and non-visible damage. A 12-week study shows visible improvement in everything from uneven skin tone to lines and wrinkles. The serum’s extensive cocktail of ingredients includes a potent Red Algae cultivated in the Israeli desert, Licorice Extract, as well as Morus Nigra Root Extract and a blend of collagen boosting peptides. Clinique Smart Custom-Repair Serum is already available at Clinique Travel Retail locations in the Middle East and Africa, and the product was launched in Asia Pacific in September. On the fragrance front, the company is rolling out Tom Ford Velvet Orchid, the uber-feminine variant of the brand’s successful Black Orchid fragrance. Velvet Orchid pushes the DNA of the original Black Orchid into new territory: one lavished with notes of cool citrus, dramatic petals, honey and rum. The bottle plays on the iconic, fluted glass of Black Orchid, recast in a new shade of glossy, dark purple touched with black, and adorned with a gold-toned plaque and neck chord. It comes packaged in a ribbed, folding carton in glossy, purple-black, and is finished with a gold-toned name plaque on the front and TF logo stamped on top. The product launched in September at most Tom Ford Beauty travel retail locations. Rounding off recent launches is Jo Malone London’s Wood Sage & Sea Salt – the latest fragrance offering from a perfume brand known for its unexpected fragrance range. The newest addition to the line-up also fits the bill, offering hints of a seaside filled with sea salt, the mineral scent of rugged cliffs and the woody earthiness of sage. Like other Jo Malone scents, the fragrance can be layered – with Jo Malone London’s Lime Basil & Mandarin or Nectarine Blossom & Honey, as two examples – providing retailers with multiple-product selling opportunities. The Wood Sage & Sea Salt Collection was introduced to travel retail locations worldwide in September, and includes a 30ml and 100ml Cologne, a 250ml Body & Hand Wash, a 175ml Body Crème and a 200g Home Candle. 

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

Puig

Double-digit potential prompts

Middle East investment

The Prada Candy Florale display at Heathrow Terminal 5

Patrick Bouchard, Managing Director, Global Travel Retail, Puig

The scent of commercial success is extra sweet for Puig this year as the Barcelona-born fashion and fragrance house celebrates regional growth and 100 years of business

ith the Perfumes & Cosmetics category dominating global duty free and travel retail activity at more than 50% of market share, Puig’s long-established presence in the Middle East market is benefiting from both its reputation and high traffic numbers in numerous retail locations. “We have been celebrating Puig’s 100th anniversary with a campaign of consumer surprises throughout the year, and we have also seen high demand for high-end and premium brands in the Middle East travel retail market, with key retailers giving extra exposure to the category,” says Patrick Bouchard, Managing Director, Global Travel Retail, Puig. “We have also noticed that bringing novelties to the consumer is an important growth lever; however, as brand owners, Puig has to find the right balance between launching and maintaining its core business,” he adds. According to research by Generation, in 2013 the P&C category was an important growth contributor to the global duty

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Valentino Uomo

free industry, generating 8.4% of total sales, which represented a 7% year-on-year increase. “Looking specifically at travel retail, for Puig the main growth levers are investment in point of sale (POS) via ‘retailtainment’ and a multi-dimensioned promotional plan,” he notes. This two-pronged strategy is translating into increased investment into POS activations, with Bouchard citing the example of the Prada Florale campaign at London Heathrow Terminal 5, and a focus on a select number of brands aligned with local market investment and insight into the traveler profile. Strong and sustained Middle East market presence is also key to enhancing the company’s global business portfolio as Bouchard explains: “The Middle East is a strategic region within the global travel retail business unit, accounting for close to 10% of total volume. Along with Asia, it is the only region that has a double-digit growth rate. “It is also part of our expanding brand footprint, especially for Paco Rabanne, Carolina Herrera and, lately, Valentino.” While growth forecasts look positive, Bouchard sees further opportunity for development in the region. “Our Middle East travel retail market share, which currently stands at 8%-plus, is still below overall group market share within travel retail of over 9%.” In July 2014 the company appointed Buddy Abraham as its new General Manager, Travel Retail, Middle East to spearhead regional expansion. As the P&C landscape becomes increasingly competitive, Puig is relying on its well-balanced portfolio to support overall P&C category growth. Says Bouchard: “We have a long-term strategy in place for this strategic channel and have identified regional initiatives for implementation.

Lady Million Eau My Gold! By Paco Rabanne

The latest from the Carolina Herrera 212 franchise, VIP Rosé

“Over the years we have also established good relationships with the key retailers and they know that Puig can bring growth to the P&C category thanks to our innovative products and reputation for quality.” Its strategy for strengthening brand position moving forward includes continued investment in POS initiatives with the allocation of additional beauty advisor resources, investment into fixtures, and, where possible, alignment with local market investment to benefit from the “halo effect.” There’s just one thing on Bouchard’s regional development wish list. “We just need a fair share of space for our story-telling strategy to be implemented at point of sale.” The last quarter of 2014 will see Puig wrap up its 100th anniversary campaign, and second semester activity has another anniversary, for Invictus, as well as the launch of Eau My Gold, part of the One Million franchise, plus sustained promotional efforts for Uomo and development of the Caroline Herrera 212 franchise with a focus on 212 VIP Rosé. 

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Amouage

Onwards and

upwards Amouage prepares to show the next chapter in the Journey saga

mouage showcases the second cycle of the Amouage narrative, “Journey” for man and woman, at TFWA WE in Cannes. For this new launch, Creative Director Christopher Chong pieces together remnants of his personal odyssey and metamorphoses through life. The next chapters of Amouage’s narrative will now delve deeper into the man behind the fragrance as he depicts his “Portraits of a Life.”

Journey for man and woman Amouage

Amouage’s Creative Director Christopher Chong

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

“Our lives play out in fragments,” says Chong. “I am making sense of mine by drawing elements from my experiences and morphing them with other art forms to define, articulate and transcribe my world within the compositions of these fragrances.” Inspired by a love of Shanghai Deco and a passion for Chinese cinema, particularly Film Noir, Chong pays homage to his heritage in his latest creations. With dark tobacco, Journey for Man voyages into the unknown and reveals a chiaroscuro of luminosity and intrigue. Opening with spicy Sichuan pepper amalgamated with rich bergamot, green cardamom and intense neroli bigarade, the fragrance paves the way to a heart defined by a darker facet, structured around the prevailing tones of juniper berries and incense. Pure geraniol enhances the notes with dry, sweet rose and smoky tobacco leaves, accentuating the fragrance’s mysticism. Illuminating the uncertainty of a journey are masculine tones of ambrox, Indian cypriol and tonka bean abstract.

“Journeys are tumultuous and where your path may lead is uncertain, almost enchantingly so,” explains Chong. “While Journey for Man takes an intrepid leap into the unknown, Journey for Woman is a quiet, observing traveler that first lays out a path.” Journey for Woman opens with a composition of osmanthus, apricot, jasmine tea, nutmeg and cardamom. The heart is comprised with a floral accord of Indian jasmine sambac abstract, freesia and mimosa, highlighted by honey from Provence and dry cedar wood. An unforgettable encounter is evoked in the base with radiant Saffron from Iran and pipe tobacco blended with daring undertones of leather, vanilla, cypriol and musks. The enigmatic fragrances are presented in Amouage’s iconic glass crystal bottles in an opulent red hue with luxurious gold tone sides. The caps of both the men’s and women’s bottles are plated in 24 carat gold and accented with crimson Swarovski crystals. Lustrous gold boxes house the bottles and are illustrated to symbolize a journey with red Oriental radial patterns inspired by a compass. 

International Travel Retail Le Grand Amour by Ragheb Alama

International Travel Retail’s path to success

Cavalli Collection Wine

Lebanon’s International Travel Retail continues to grow from the ground up with a trio of new launches and plans to open in a new market in 2015

arving something of a niche for itself in the business, International Travel Retail is taking a considered approach to growth by developing the Roberto Cavalli Vodka and Wine range and building its perfume portfolio. This year sees the launch of a new women’s perfume, El Hob El Kebir, which translates as “the biggest love”. Further to this, in 2015 we can look forward to a special edition Ragheb Alama perfume Le Grand Amour that is launching just for fans and is already being described as a collector’s item. The company will also be unveiling a flavored vodka in the Roberto Cavalli Vodka and Wine range. “Cavalli Vodka is experiencing double digit growth and it has been listed in new duty free outlets at Geneva International Airport, Zurich Airport and Istanbul Atatürk Airport,” says Mariem Ben Cheikh, CEO, International Travel Retail. “In addition, we are working on the launch of an exclusive perfume range for an important group that I cannot reveal the name of just yet. We will start by developing a new teenage perfume brand with them and, following on from this, there will be make-up.” When it comes to working with suppliers, the aim is to chase quality over quantity. “I am 100% dedicated to Roberto Cavalli

Vodka and developing the perfumes,” says Ben Cheikh. “This takes up so much of my time that I’m not able to work with any new suppliers as, if I can’t take good care of the brands I currently have, then I prefer not to take on any more. It’s not a question of quantity but quality for us.” When asked what makes a good partnership, Ben Cheikh responds from the heart: “Hard work confidence, love, conviction and respect.” But then we’d expect nothing less from the businesswoman that has always injected a dose of passion into anything she turns her hand to. “My biggest challenge was to succeed starting from zero after 10 years heading up my ex-company,” she says. “It’s amazing but I realize now the courage I had and thanks to God I can say I did it!” It takes a determined personality to strike out on their own in such a competitive landscape but Ben Cheikh references her self confidence and faith for guiding her through the challenging times. Of course, she also relies on a team of loyal employees who are dedicated to helping her achieve her goals. Indeed, International Travel Retail is unique in that it has had same team in place since the business launched in 2011. “My faithful team is very active and the employees are bringing great results,” says Ben Cheikh. “I am traveling most of the time

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

and they are taking good care of our needs from the office.” The company’s major aim for 2015 is to open in a new market with either Asia or the US as the desired target. Keeping up with category trends plays a vital role in ensuring the proposition is relevant. “I am always present at the major exhibitions and conferences and read e-news in order to stay updated,” she says. “I also enjoy close relationships with my clients so I am always up-to-date with what’s important to them.” As many retailers will testify, it’s insight and attention to detail such as this that’s worth its weight in gold. 

Mariem Ben Cheikh, CEO, International Travel Retail

Kraft Foods Group, Inc.

On the

growth

path

Kraft Foods Group Inc. takes Americas travel retail by storm and lays plans for future growth in the Gulf and Europe by

HIBAH NOOR

raft Foods Group Inc. has taken a focused approach to travel retail, both with regard to regions of concentration and the products it offers. As befits a channel as unique as duty free, the company is looking at what elements of its strong portfolio—which includes such confectionery favorites as Planters peanuts, Kraft Caramels, Maxwell House International, Jet-Puffed marshmallows, Gevalia coffee and many more—fit best in which stores and then moving aggressively to secure shelf space in key areas of the Americas, particularly in Central and South America. Martin Caminos, Commercial Director, Kraft Foods Group, Inc., tells Americas Duty Free that while the company's brands are available in some duty free outlets, there is plenty of room to grow: "We are currently developing our brands through local and regional travel retailers, mostly located in Mexico, Central and South America border

Planters is a leading snack brand with a portfolio that includes peanuts, cashews, pistachios and nutrition mixes

areas and major airports,” he says. “Our brands are present in some airports and exclusive resorts in the Caribbean region, and we are expanding to Central America, Mexico and North America. Although our brands do not have a significant presence in the Gulf and Asia markets today, both offer potential for brand exposure and growth." Indeed, Kraft Foods Group Inc. is banking on the significant fame of its brands in the domestic market to help it make inroads in travel retail. Planters is a leading snack brand with a portfolio that includes peanuts, cashews, pistachios and nutrition mixes, while Maxwell House International and Gevalia offer a variety of exclusive, premium and mixed coffee flavors that come in very attractive packaging. Furthermore, Kraft Caramels and Jet-Puffed Marshmallows provide solutions for both personal consumption and gifting opportunities, certainly a key consideration for the duty free channel. "All of these brands have extensive dis-

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

tribution in the US retail marketplace and a presence in many retail markets through export from the US," Caminos explains. "All of our products enjoy incredible brand equity and prestige developed throughout many decades in the retail marketplace in the US and international markets, creating a strong foundation for success in the travel retail segment."

Catching their eyes

As with any other company looking to make its mark in duty free, Kraft Foods Inc. is keenly aware that grabbing consumers' attention from the outset is key for closing the sales. As such, everything from packaging to placement within the stores is up for consideration. Kraft Foods Group Inc. is also looking at dedicated furniture if space permits, as well as seasonal presentations for holidays such as Christmas and Easter. And with regard to promoting the products, Caminos notes that a collaborative approach works best: "Brands, retailers and

airport operators can work together through developing specific promotions, displays and sampling opportunities whenever possible. Of course, further to this we will also work with retailers to better accommodate their own commercial plans by collaborating to find novel solutions for new or renovated stores."

Staying competitive

Martin Caminos, Commercial Director, Kraft Foods Group, Inc.

Maxwell House International offers a variety of exclusive, premium and mixed coffee flavors

With retailers now coming on board given the strong growth of the confectionery category in recent years and the continued potential that it shows, competition is heating up as more and more confectioners enter travel retail to try to get a piece of the pie. Fortunately for Kraft Foods Group Inc., while it participates in the sugar confectionery category, it also has a strong collection of brands that fall into other subcategories. For Caminos, this flexibility is one of the keys to competing with other brands. “Although we participate in the confectionery category with Kraft Caramels, our portfolio also includes snacks, with Planters, and coffee, with Maxwell House and Gevalia in the Americas,” he says. “This positions us very well to compete.” For Kraft Foods Group Inc., the future is wide open. The company already has a limited presence on airlines and cruise lines as Planters is an obvious fit for both since it offers a snacking opportunity for any time of the day and comes in convenient sizes and flavors. Caminos notes that this as a possible growth area for the future. For the moment, though, with plenty of ground yet to cover in duty free in the Americas, the company hasn't even scratched the surface in terms of growth potential given its strong stable of known and loved brands.

Opportunities abound

And Kraft Foods Group Inc. isn't stopping at the Americas. Caminos tells us that there's plenty of opportunities in other areas of the world as well. The Gulf is another booming emerging market and while Europe has taken a back seat recently to the exciting growth stories in other regions, it is still a large, established aviation market and a key region of concentration for duty free retailers and suppliers. “Our plans for the rest of 2014 include an aggressive geographic expansion through distributors in the travel retail stores in the Americas, and we are already working to expand the presence of our brands in Europe and the Gulf in 2015,” Caminos concludes. 

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

Supplier News Innovation & Insight leads the way at Hershey’s The Hershey Company is strengthening its innovative, insightsdriven portfolio in travel retail, and this includes two travel retail exclusives being presented at the 2014 TFWA World Exhibition. The new products are a result of Hershey’s insights development process, which the company recently expanded by becoming the sole confectionery sponsor of the 2014 Global Shopper Study. The study was conducted by Counter Intelligence Retail (CIR) and surveyed 20,000 passengers from 75 nationalities in 15 global airports. Hershey’s 2014 launches focus on gifting and snacking occasions. As Steve Bentz, General Manager World Travel Retail, The Hershey Company, explains, “Gifting remains an important purchase motivator in the confectionery category; six in 10 confection buyers purchase for a gift… It is also important to leverage the snacking usage occasion to increase basket rings and conversion. Seventy-five percent of non-gift purchases are for self-consumption.” The innovative new products being announced at the Cannes show (stand M53, Green Village) include: Brookside Gift Boxes, Hershey’s Kisses Caramel and Lancaster Caramel Soft Crèmes. Hershey’s will also continue to offer innovative product/pack-

aging solutions that leverage insights to drive both snacking and gifting performance at retail.

The innovative new products unveiled at the TFWA WE show include: Brookside Gift Boxes, Hershey’s Kisses Caramel and Lancaster Caramel Soft Crèmes

New Smart Casual line from luxury brand Paul&Shark Luxury sportswear brand Paul&Shark presents its new Spring-Summer 2015 Men’s Collection at this year’s Cannes event (stand RH16, Riviera Village). As always, the essence of Paul & Shark shines through thanks to “made in Italy” precious fabrics, utmost quality and experimentation with new materials. With a focus on travel retail, the collection highlights a new Smart Casual line, providing a link between Luxury and Sportswear, and designed to offer a comfortable but refined total look. Says Paul&Shark Worldwide Travel Retail Director Catherine Bonelli: “The collection overall is extensive but the unique element about Paul&Shark is the company’s ability to take any item within the offer and customize it to meet a specific retailer’s requirement – for example, the length of a shirt, a particular color, or special embroidery.” Apart from Smart Casual, the Spring-Summer line also offers a Luxury Collection made of high-quality materials combined with hand-made tailoring. Starting this season, the line is individually identified with a new golden Paul&Shark Luxury garment logo on a solid blue background. The Sportswear line goes beyond active sportswear, using materials that don’t traditionally belong to the sports world and that combine style and performance. The line includes Competition, inspired by the sailing world, with technical garments for sports enthusiasts, and Kipawa, also inspired by the sailing scene, and deriving its name from a wonderful vintage boat. Last but not least, there is Capri, the summer capsule collection, which delivers summer colors and materials such as cotton and linen. A new addition is the Travel Shirt, presented in a bag made of the same fabric and color – perfect for travel and yet elegant at the same time. And not to be missed are Paul&Shark’s many accessories, such as full grain leather loafers and belts, including reversible belts supplied with a moving buckle. There are also scarves made of cashmere or linen, soft ties, and swimwear – in both colorful and classic designs.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Paul & Shark exhibits its new SpringSummer 2015 Men’s Collection

Supplier News

Tins and Towers among new offerings at Ritter

Duracell is a leader in the growing global battery market

During TFWA WE, Ritter Sport will present three new Ritter Sport chocolate items that it has added to its Sport’s Travel Retail Exclusive Range. Available in exclusive travel retail packaging is the Ritter Sport Choco Cubes Tin. It comes in a single or double pack, with 20 or 40 chocolate cubes, weighing 160g or 320 grams, respectively. Included are typical flavors, with each cube coming individually wrapped. The tin makes the perfect gift for loved ones. For those looking for a snack on the go or to share with friends, the company presents Ritter Sport 65g Tower, containing six 65g bars of five assorted flavors and weighing 390g. Additionally, Ritter Sport’s many top-selling travel retail exclusive items will still be available, including the Ritter Sport Mini Pouch, Ritter Sport 100g Tower and Ritter Sport Mini Tower. Ritter Sport will be exhibiting at stand L39, Green Village.

DURACELL MAKES ITS WAY INTO TRAVEL RETAIL Procter & Gamble owns many brands apart from Braun, and this year Braun travel retail will be introducing one of them—Duracell batteries—in Cannes. The global battery market is huge and keeps growing, with Duracell as a market leader, according to the company. The reasons for market growth include the following: 85% of homes contain disposable batteries and an average household owns around 30 battery-operated devices; 99% of consumers know Duracell; and a large percentage of battery purchases—especially in travel retail —are impulse-driven. Procter & Gamble is confident that adding Duracell batteries to a travel retail store’s portfolio will help boost sales and profit per square metre. To facilitate purchasing, the process uses the same shipping line as that of Braun products. To discover the potential of this underestimated category, visit Braun at booth P14, Mediterranean Village.

Ritter Sport Choco Cubes Tin

Frey gets personal – with chocolate Swiss chocolate manufacturer Chocolat Frey AG is launching novel new chocolate pralines that convey a personalized message—‘Message for you.’ Creating what the company calls “emotional moments of joy,” the innovative pralines come in a beautifully designed box and are labelled with a number of personal messages. The gift—a travel retail exclusive—can be used to make a homecoming a little sweeter, to say goodbye to a good friend, or, simply, to say thank you. It is an exclusive chocolate gift that can easily be individualized to one’s personal needs. Customers can create over 600 personalized messages by rotating and combining the carefully wrapped chocolate pralines. Simply open the box, arrange the pralines into the preferred message, place them into the three windows and seal the box. Three unique box designs allow a customer to match the gift with different emotions or occasions. There is a classic restrained masculine design, best suited for close friends or colleagues; a fresh and

bluish design that has more of a youthful, homemade appeal; and finally a neo-romantic, highly emotional design with a floral pattern that is more feminine. Customers can also choose between two sizes. The large box contains 12 pralines while the smaller box comes in a stick format with four pieces of chocolate. The innovative gifts are currently exclusively available in selected Heinemann duty free shops in Europe.

Chocolat Frey offers ‘Message for you’

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Supplier News

MARS to kick off brand new vision at spectacular evening event “A confectionery event unparalleled in Cannes” is what Mars International Travel Retail (MITR) is promising for the evening of October 28, when it will announce a brand new category vision and strategy for confectionery in travel retail. It’s a vision that can double the confectionery category in airports by 2020, says the company. Attended by key industry influencers, the event will include a “Trinity” panel discussion as well as a host of interactive, fun activities. Also on the agenda is a presentation showing exactly how the confectionery category can double its business. “At Mars ITR (we) consider that confectionery is still underperforming compared to other product groups,” says Manon de Gunst, the company’s Global Category Development Manager International Travel Retail. “The key is to hook into what we see as untapped potential through a new strategy and drivers for growth that aim to increase footfall—because confectionery is one of the strongest drivers here—increase browser-to-buyer conversion rates and grow the basket size.” The focus of the evening, which takes place at the city’s Baoli Club, will be on adding value to every party within the Trinity with a strategy based on a shopper-centric approach that takes into account the traveler’s mindset and emotions. “This is not going to be another ‘how to merchandize brands within a specific category’ program but a totally new way of working within travel retail,” stresses de Gunst. “It’s about tapping into the emotional drivers of consumers in-store and taking into account trends such as the increase in LCCs (particularly in Asia), deregulation in countries such as China which create new requirements from travelers, increasing middle classes in regions such as China, Asia Pacific and India.”

MITR’s new lines will be supported by a compelling program of activations and promotions

MITR undertook consumer research at nine key airports globally, interviewing and observing more than 5,000 travelers of all nationalities over a four-month period and examining mindset, behavior, influencers, etc. The result is a strategy that MITR says offers “a radically different approach to retailing patterns in travel retail.” As well, MITR will be launching exciting new travel retail exclusives at its stand (Bay Village 9), including new M&Ms pouches and fun mugs; multi-pack bars; sharing boxes and sharing bags for all core brands. These new lines will be supported by a compelling program of activations and promotions—all designed to support the company’s new vision.

4711: New anniversary launches for a heritage brand This year in Cannes, iconic German fragrance house MÄURER & WIRTZ will showcase its celebratory anniversary launches for its 4711 brand. October 8, 2014 marked the 222nd anniversary of 4711, and to celebrate, MÄURER & WIRTZ is launching three new products and exciting fragrance experiences in the travel retail channel. This includes the new 4711 Acqua Colonia Miniature Set, available for purchase as a worldwide travel retail exclu-

The Artist Edition 2014 will be available as a limited edition

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

sive in addition to its presence on the German domestic market. The brand’s five best-loved fragrances come in miniature Molanus bottles (a special bottle shape for 4711) that appear to be floating in a transparent gift box. The product is ideal as a travel companion or to share with friends. Its soft launch took place this past March, and the set will be on display at MÄURER & WIRTZ’s stand in Cannes before rolling out fully. The brand’s Nostalgia Tin—another new launch—contains the 4711 Original Eau de Cologne in an exclusive metal tin, while the new Artist Edition 2014—an 800ml bottle turned into a genuine work of art—pays homage to the iconic 4711 Original Eau de Cologne. The Artist Edition 2014 will be available as a limited edition, with only 472 pieces of each artist’s design available (944 pieces of both designs in total). The Artist Edition 2014 has been available since October 8 and is being sold exclusively at the House of 4711 in Cologne and the 4711 store at the Cologne Airport. “2014 is a special year for 4711,” comments Jan Marcel Katuin, Director International Sales, MÄURER & WIRTZ. “The brand is 222 years old, which is a grand and almost unique heritage for a fragrance house. We are especially proud to be launching these SKUs in Travel Retail and are especially delighted that our incredibly limited edition Artist Tin 2014 will feature in travel retail in our 4711 store at Cologne Airport.” MÄURER & WIRTZ is exhibiting at stand K50, Green Village.

Mondelez World Travel Retail

The new Toblerone Crushed Corn variant launching in Q4 2014

Mondelez

leads Middle East

confectionery sector growth

Ongoing aviation sector investment and the region’s global hub status are supporting the company’s commercial ambition as it targets the sharing culture for travel retail growth CLAIRE MALCOLM by

Jaya Singh, Regional Director, Middle East & Asia Pacific, Mondelez WTR

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

itting pretty in second place in the performance rankings having recently jumped one place from third, but with its eye very much on the top spot, Mondelez World Travel Retail (Mondelez WTR) is outperforming category forecasts for the region. “According to the latest TRIQ report by Generation, confectionery in the region grew by +32% in value terms and Mondelez WTR was clearly driving this growth with +47% in Q1 2014 against the same period last year,” says Jaya Singh, Regional Director, Middle East & Asia Pacific, Mondelez WTR. “This means that we contributed 22% of the growth in the region, more than any confectionery supplier. It’s particularly gratifying to see this happen in such a dynamic and rapidly growing region. We set ourselves the target of hitting a number of KPIs in the region— most notably to outgrow category growth, overall market growth and passenger growth—and we’ve achieved those targets,” he adds. Singh has high expectations for the region moving forward, as he explains: “Based on recent results we feel confident that we have the right formula in place. The pace of change and growth in the region is such that there is naturally going to be occasional disruption but this is often necessary. Take the runway closure in Dubai earlier this year—while that situation may not have been ideal for anyone it was 100% the right thing to do in order to provide a platform for future traffic growth.” While Dubai tops the leaderboard in terms of location performance and infrastructure investment, Singh also flags several other growth destinations. “Abu Dhabi, Doha and Muscat are making great strides. Doha Airport has a fantastic footprint, and despite some initial challenges, sales are now blossoming. Muscat is also

Mondelez’s Cadbury display at Dubai Duty Free

seeing a tremendous growth in pax numbers which has translated into a very dynamic environment,” he says. “With airlines also in an expansionary mindset, investing heavily in fleet growth, airports aren’t merely stealing market share from one another, they are growing the overall market,” he adds.

Geographical prominence

Continued investment into the region has been the primary catalyst for market development and growth, but there is another reason, as Singh explains: “One of the most exciting things about this part of the world is something no amount of money can buy—its amazing location. With advances in aircraft technology, you can now fly anywhere in the world from the Gulf region. It truly is blessed by its location and traveling internationally from here is faster and cheaper. “This is already beginning to manifest itself in the duty free business, not only in the form of sales growth but also the quality of retail. The region’s airports are increasingly becoming showcases to a truly global audience for the biggest brands and attracting interest from all the major retailers.” He uses the recent Abu Dhabi Midfield Terminal tenders as an example. “The scope of Abu Dhabi Airports Company’s (ADAC) ambition has been huge, attracting very serious bids from all the global retailers. They know that this region is fast becoming the shop window to the world. Where once airports in this region were used only by very specific travelers for specific routes I think we’re seeing the dawn of this area becoming the world’s aviation hub,” he comments.

Final quarter focus

Q4 is set to be a busy final quarter for Mondelez with the new Toblerone Crushed Corn hitting the shelves, and the company has high expectations for the launch. The focus for Cannes will be new product developments (NPDs), which this year will also include travel retail exclusives Toblerone Tiny Mono 300g and Milka Chocolate Wafer.

Says Singh: “It’s very much core to our approach to support the launch of NPDs with in-store executions and HPPs. We’re constantly challenging ourselves to drive forward the standards of promotional execution, and I think its fair to say we are category leaders in this regard, as well as one of the more innovative companies in the entire travel retail industry.” Mondelez has also picked up on a regional preference for sharing formats with individually wrapped products particularly well received according to Singh. “This sharing culture is huge with some of the major nationalities in the region, for example Indians,” he notes. “The launch of Toblerone Tiny Mono 300g is an example of a product we have developed to leverage this trend by providing more choice in a perfect sharing format. We can then enhance the attraction of the product more through multibuy-driven activations. Everything we do in this regard is looking to dovetail our approach with shopper habits,” he continues.

Insight driven

This is supported by a strong internal culture where the team is constantly looking for insights. Says Singh: “It’s key to any retail -oriented business. Our category vision—Delighting Travelers—was based on more than 10,000 interviews with shoppers, as well as hundreds of retailer and airport consultations. “There are certain aspects of retail that are fairly well understood, but then there are others where we are still on a voyage of understanding. Shopper motivation is one such area which is in a constant state of flux and evolution. “As society and lifestyles change, so do shopper motivations, and this is something that can have a huge, direct impact on the entire segmentation of the category. Even greater understanding of insights into motivation could lead to far more effective category and store layout, which will drive commercial performance for all stakeholders,” he adds. 

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

Anthon Berg

Anthon Berg’s

feel good

factor

FAYE BARTLE

Peter Dige, Travel Retail Director, Anthon Berg

The popular confectionery brand is winning sales by tapping into the trend for being generous, with bespoke promotions planned for Asia and MENA

nthon Berg’s tagline, “you can never be too generous” is going down a treat with consumers. Indeed, the Danish confectionery brand’s award-winning Generosity brand universe is winning fans around the world by tapping into the current “mega” trend for being good to others. “By taking the brand in this direction, we offer the consumers the opportunity to bring home chocolate or a chocolate gift and the chance to be generous to someone at the same time,” says Toms Group/Anthon Berg Travel Retail Director Peter Dige. “One of our most successful marketing activities we are running at the moment is the ‘ribbon promotion,’ where the travelers can create a personalized silk gift ribbon with their own message to wrap around a chocolate gift. It’s been such a big hit that we are planning to introduce more promotions that highlight the brand message in the Fall. We will also be unveiling new multi-buy deals.” Making an emotional connection to consumers has undoubtedly helped the brand to stand out in the market. The success is the result of a concerted effort by owner company Toms Group A/S to develop Anthon

Berg in travel retail and expand its business in the channel. “At the moment, launching the right products and strengthening the relationships with our partners is key,” says Dige. Asia and the Middle East are clear targets for growth and the company admits to funneling both time and money into the destinations where it foresees the biggest return on investment. “These two regions have the biggest growth potential due to the increase in passenger numbers and the airport expansion programs that are taking place there,” says Dige. “Fortunately we have a strong partnership with Focus Network Asia, which is going to be pivotal in helping us achieve our goals.” In MENA, Generosity will be activated within the next 12 months through various promotions that are yet to be revealed, although it’s guaranteed that value will be a key part of the proposition. “Regarding product development, we try to hit upon the magic price points,” says Dige. “It has to be just right for shoppers in a market that is recovering after the recession. Besides launching the right products at the right price, we will also continue work-

ing actively and creatively with our brand universe, as we have seen amazing results from the attention it has gained in stores.” Once of the most successful promotions for the brand has been the Anthon Berg Generous Chocolate Upgrader, which scanned passenger’s boarding cards and offered them a free chocolate upgrade if they had been assigned a bad seat on the plane. Goodie bags including items such as neck pillows and eye masks were brought to travelers at a promotional stand at the airport. The promotion was rolled out in the Nordic region in travel retail in the Fall of 2013 and globally from the beginning of this year. Looking to the future, we can expect more clever marketing with new products to boot. “Generally you will be seeing more Generosity and feel good concepts wrapped around our premium chocolates,” says Dige. “As Generosity has proven to be a great success, we will continue down this line with in-store sales promotions as well as more brand activating activities to boost the brand and give the consumers a great shopping experience.” Finally, sweet-toothed buyers should keep an eye out for the new ingredient that’s been added to Anthon Berg’s chocolate liqueurs, which the company will be showing at TFWA World Exhibition & Conference in Cannes.  Anthon Berg’s bestselling 26-piece Chocolate Liqueur bottles

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

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Inside the bag business

Bag Report

An important focus of Coccinelle’s Autumn Winter 2014/15 collection is in the detail—expect to see satin—gold finishes, elegant buckles and decorative snap closures aplenty

Coccinelle’s Autumn Winter 2014/15 collection is themed around a “Classic Revolution” with modern yet timeless designs with a touch of glamour. Special materials such as pony skin, python print leather and trend animal prints provide a modern twist to classic shapes The Carlotta bag from Aigner’s Fall & Winter 2014/15 collection

With a host of new products, strategic openings and special events that will lead us into 2015, bag and luggage suppliers are pulling out all the stops to make sure their designs are snapped up by

FAYE BARTLE

tyle savvy shoppers are proving harder to please as they search the globe for the latest fashion accessories from the most coveted brands. The good news is that travel retail is fast becoming the go-to channel for bagging those special purchases they may not be able to get hold of on the high street.

“Consumers are becoming more and more educated when it comes to traveling and they want the best. They don’t simply shop for impulse buys—purchases are often planned in advance,” says Geoffrey Gysin, Senior Vice-President Europe, Middle East & Africa, Tumi. It comes as no surprise then that Tumi is experiencing a high demand for travel retail exclusive products, which it is only too happy to cater to. “Consumers also want convenience when it comes to purchasing, so it is important that we are where they are and offer them what they need,” adds Gysin. “In this regard we adapt our assortments to their needs and we try to develop our retail and wholesale network to ensure that we are where the consumer wants to buy.” Of course, travel retail presents a double whammy for Tumi, whose luggage collections are not only ideal for the channel but also the consumer profile that it targets. What’s more, there always seems to be some-

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

thing new for shoppers to covet. Indeed, the Fall/Winter collection is now in store and September saw the launch of Sinclair, Tumi’s premier women’s business bag collection. This season also marks the unveiling of two new collections. The first is Tumi Tegra-Lite Max, which is the latest addition to the bestselling Tegra-Lite line-up of hard-side travel cases. Each item features an inward-flexing front pocket—unusual for a hard-side—that is designed to house easy-access essentials. The second new collection is Tumi CFX, an 11-piece premium collection of high-performance soft travel bags and accessories, which will appear in select doors from October 2014. “Tumi continues to listen to its customers and to respond with stylish and innovative solutions that make their business and personal lives easier,” says Gysin. “We respond to trends such as personalization by offering monograms. In addition, in this digital age we have broadened our range of briefcases and backpacks with integral protective

Tegra-Lite Max is the latest addition to Tumi’s bestselling Tegra-Lite line-up of durable and functional hard-side travel cases made from light yet tough Tegris

All items in Tumi’s Tegra-Lite Max collection feature an inward-flexing front pocket, which provides additional packing capacity for items such as toiletries, jackets and passports

The Coccinelle store at Rome Fiumicino International Airport

pockets for laptops and tablets. Lastly, we have added an Add-a-Bag sleeve to many of our totes and briefcases so that they can be attached to the handle of wheeled pieces, making it possible to manage several items with one hand. In essence, Tumi evolves in line with demand and even anticipates what the customer will appreciate and require.” Crossing over to the fashion realm, suppliers are striving to capture people’s imagination. Aigner, which will celebrate its 50th anniversary in 2015, is seizing the opportunity to make a big splash with a multitude of new openings and marketing activities planned to mark the occasion. “In December this year, we are launching the SS 2015 campaign with an international top model and, further to that, we are having a fashion show with other anniversary events taking place around the world,” says Amanda Garbarino, Travel Retail Manager, Etienne Aigner. “This will help to strengthen brand awareness and build customer demand.” The brand’s commitment to high quality is easy to see from its The Leather Collection Autumn/Winter 2014-15 created by Senior Designer Christian Beck. By incorporating modern technology and styles into signature pieces from the Aigner archives, the collection takes on a vintage look with modern details such as extra larger zippers and graphic embossed effects that are sure to be a big hit with style conscious consumers. High-flying female shoppers are also being targeted by Coccinelle, which prides itself on producing stylish yet functional bags as affordable luxuries. Headquartered in Parma, Coccinelle has been in business since 1978. The company produces four collections a year, including a wide range of bags, shoes, small leather goods and accessories such as scarves, watches and hats. Already working with key accounts in Europe with more than 30 POS in high profile airports in Europe, Coccinelle is now focusing on adding more high profile locations to its portfolio including downtown duty free stores. “In Asia, we have just opened a 27-squaremeter space at the region’s biggest duty free store, the Ever Rich Golden Lake Plaza on Greater Kinmen Island,” says Emanuele Mazziotta, Head of Travel Retail, Coccinelle. “We see scope for further expansion in Asia and the Middle East too.”

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

Bag Report

A model holding the Cybill bag from Aigner’s Fall & Winter 2014/15 collection

Arm candy ambition

The founding principles of Tumi include design excellence, unparalleled quality, technical innovation, functional superiority and world-class customer service

With so many innovations for consumers to discover, it’s key that suppliers are gaining the exposure they desire in the channel. Market penetration is a key focus for Aigner. “We want to expand in the Middle East by boosting our presence at airports,” says Garbarino. “Our new POS at Concourse D at Dubai International Airport, for instance, will be our forth corner at the hub. We will also be adding new listings with Etihad.” Further to this, an Aigner pop up store will be unveiled in the retail area at Dubai Airport’s Concourse D in December. “Aigner created 50 unique pieces in exotic leathers from stingray to alligator and each piece will be displayed in a glass case,” said Garbarino. “A total of 20 of these can be found at chosen locations in the Middle East from December.” Coccinelle is already well established among European consumers and is hoping to make the most of its growing fan base in Asia. “The brand has started its journey towards international recognition by implementing a selective distribution strategy, opening our own boutiques and franchised

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

mono-brand stores around the world,” says Mazziotta. The plan is to continue to offer a versatile collection that “speaks to a variety of consumers,” including the traveler. “On top of catering to the needs of different markets, which translates into the sizes of the bags, the length of shoulder straps and special colors, our aim is to maintain a consistent image around the world thanks to some iconic pieces,” said Mazziotta. “In the Middle East, large, functional designs with precious details generally perform well in travel retail. Messenger bags and shopping bags are also always in demand. Small leather goods, such as wallets and cosmetic pouches, are also easy sellers and really meet travelers’ needs.” Tumi has been expanding its presence in travel retail considerably over the past few years with new stores opening in Asia (including in Taiwan, China and Malaysia), Europe, North America and, the region that presents the biggest test of all, the Middle East. “The challenge for Tumi in MENA is increasing our brand awareness in the region,” said Gysin. “Recently we had an outpost—an out-of-store podium—in the high-traffic Central Galleria, Mirdif City Center in Dubai with our digital concierge display, which was a great success with a marked increase in sales and visibility. Hostesses introduced consumers to the product features of the new Alpha 2 collection and encouraged them to explore further in the Tumi store nearby. Pending negotiations, we are hoping to move the outpost to Abu Dhabi and achieve a similar increase in awareness there.” Of course, airport stores are an important part of the vision for growth. “The new terminals in Qatar and Dubai will drive growth in the Middle East and Tumi will be part of it,” said Gysin. “We are also working on a new project in Beirut. Plus, there are retail stores opening in Saudi Arabia, which is a huge potential market and needs to be explored. Our collaboration with the Saudi Falcons racing team gives us excellent visibility in the region and beyond.” Marking its 40th anniversary in 2015 gives Tumi good reason to celebrate and the special events planned are sure to give other luxury brands a run for their money. Until then, we can all look forward to Tumi’s Spring/Summer collection, which is already in production and will be rolled out globally in its stores in 2015. When we asked for a sneak peek, Gysin politely refused and chose to keep us all guessing for now. 

Diageo GTME

Three times a charm by

RYAN WHITE

Craig Norwell has been appointed Strategy & Global Customer Director, Diageo GTME Peter Fairbrother has been appointed Global Marketing Director, Diageo GTME

Diageo pulls out all the stops with a fresh, highprofile Johnnie Walker Blue Label activation, new team members and a Johnnie Walker House in Mumbai Airport

iageo is hard at work in duty free bringing traveling consumers rare experiences to go along with their favorite brands. Perhaps the biggest news recently from Diageo’s giant Johnnie Walker brand is that Jude Law will star in a Johnnie Walker Blue Label short film. In conjunction with the project, Diageo Global Travel has unveiled a series of high-profile airport activations that showcase the successful short film, also starring Giancarlo Giannini, called “The Gentleman’s Wager.” The film, which already has over 28 million views, has come to life in travel retail through luxurious installations in key airports across the globe, including Taiwan, South Korea, Japan, Hong Kong and Singapore. Travelers can learn about Johnnie Walker Blue Label with the opportunity to watch the film and taste the rare liquid in the ultimate shopping experience. The activations include striking brand units that reflect the distinctive design cues of the film, including wooden panels reminiscent of the hand-crafted boat and visuals of Jude Law looking out at a beautiful ocean, with the film itself displayed through large digital screens that capture the attention of busy travelers and create a highly engaging retail environment. At select locations, trained brand ambassadors will guide travelers through a Johnnie Walker Blue Label taste journey. Peter Fairbrother, Global Marketing

Each Johnnie Walker House is an exploration of the brand’s heritage, inviting guests to embark on a multi-sensory mentoring journey; pictured is the new Johnnie Walker House in Mumbai Airport

Director, Diageo Global Travel and Middle East, says: “The luxurious installations and film preview bring the brand to life and enable our luxury consumers to enter the aspirational world of Johnnie Walker Blue Label.”

Strengthening the team

While continuing to promote its brands in this high-profile way, Diageo is strengthening its travel retail team. Doug Bagley, Managing Director of Diageo Global Travel and Middle East (GTME), recently announced two appointments to his senior leadership team based in Singapore. Peter Fairbrother is appointed Global Marketing Director, GTME and will spearhead all brand and marketing activities in travel retail globally, in support of the global growth strategy of the business. He previously held the position of White Spirits Director and was responsible for Diageo’s global Reserve Vodka and Gin portfolios. Peter has held a number of key management positions during his 20-year tenure in Diageo, and replaces Steve White, who has returned to Diageo UK to the position of Marketing Director, Africa Regional Markets. Craig Norwell is appointed Strategy & Global Customer Director, GTME. Having joined Diageo four years ago, he most recently held the role of Route to Consumer Director for Diageo Asia Pacific. In his new role, Craig will lead business development

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

in the burgeoning travel retail channel globally in order to leverage the exciting growth opportunities within the industry. “Travel retail is a vitally important channel for Diageo—it is where we build our luxury brands and set the benchmark for retail excellence,” said Bagley upon announcing the appointments. “I am delighted to have Peter and Craig on board.”

The house that Johnnie Walker built

Finally, Diageo has announced a new Johnnie Walker House in Mumbai Airport. Johnnie Walker Houses are an exclusive collection of Scotch whisky embassies outside of Scotland. Established by the world’s number one Scotch whisky brand, Johnnie Walker, the first House opened in Shanghai, China in 2011, followed by Beijing, China in 2012 and Seoul, South Korea in 2013. Each Johnnie Walker House is an exploration of the brand’s heritage, inviting guests to embark on a multi-sensory mentoring journey. The Houses are a celebration of luxurious whisky experiences that inspire progressive individuals to come together and create new cultural expressions globally. Innovation is at the heart of the Houses with exclusive whiskey collections at each location. To learn more about any of these initiatives, or to see what else Diageo has planned for travel retail across the liquor category, attendees to TFWA WE are invited to visit booth M38 in Red Village. 

Liquor report

Still booming

Dubai may have led the way, but the entire Gulf region is making a concerted effort to attract more visitors for sports, business, culture and shopping. The effort is paying off for suppliers

WENDY MORLEY

ourism and business travel in the Middle East are skyrocketing, with new airports being built and existing airports getting ever busier. This is good news for the duty free industry in the region. For suppliers, a little effort spent on promotions results in sales figures that seem to just keep climbing.

Going for gold

For Kentucky-based Brown-Forman, results in the Gulf have been superb, especially in the UAE, Egypt and Israel. Sales of its giant Jack Daniel’s brand, the third bestselling liquor brand in the world, have grown significantly since the company’s fiscal year-end in May. Two new Jack Daniel’s products were launched in the region this year; Jack Daniel’s Tennessee Honey was launched in several markets and will soon be branching out to more. Jack Daniel’s No.27 Gold Tennessee Whiskey was launched in Dubai Duty Free (DDF) on September 1, and is part of a huge promotion with that retailer. The “Win a Kilo of Gold” promotion in DDF has given the brand superb exposure. “Combined with the launch of Jack Daniel’s No.27 Gold Tennessee Whiskey, this promotion has successfully targeted several of our key nationalities and regions: Indians, Chinese, Russians and Africans,” says Tony McIver, Area Director MENA/Israel, The Jack Daniel’s No. 27 Gold Tennessee Whiskey promotion has provided BrownForman with key insights into its market’s preferences and buying habits Tony McIver, Area Director MENA/Israel, Global Travel Retail Brown-Forman, expects sales of superpremium Jack Daniel’s family members such as No.27 Gold to increase in the Gulf region

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Global Travel Retail Brown-Forman. “In planning this promotion, we aimed to create a sense of theater with something new and innovative. By doing so, we have gained some key insights into our consumer’s preferences and buying habits, and this will help us to further improve and tailor our promotions in the future.” Brown-Forman sees a real trend in the region toward whiskey, and this is supported by DDF’s monthly reports. This trend is influenced by competitive discounting and value-added promotions (VAPs). In DDF, Brown-Forman has reintroduced Jack Daniel’s Gentleman Jack VAP, which includes two, one-liter bottles of Jack Daniel’s Old No.7 and a complimentary 375 mL bottle of Gentleman Jack. Introducing customers to Gentleman Jack encourages the purchase and also encourages customers to trade up on their next purchase. In the coming months, McIver expects sales of super-premium Jack Daniel’s members such as Gentleman Jack, Silver Select, Sinatra Select and No.27 Gold to increase. He also feels that the introduction of Jack Daniel’s Tennessee Honey will attract a wider range of consumers and continue to grow in sales. The company also has more promotions planned throughout peak periods in the travel calendar. As well, in partnership with DDF, Brown-Forman is working to drive traffic into Jack’s Bar & Grill in Dubai International Airport Concourse A. “Passengers have the opportunity to get their Jack Daniel’s bottle engraved with a personalized message while they have a meal or a drink,” says McIver. Visit Brown-Forman in Cannes in Green Village M 70 + 65.

Broker’s President and Managing Director Martin Dawson expects this holiday season to be a busy one for his company

Turkish delight

Overall business for Broker’s has been extremely good in 2014. In the company’s 16 years of existence each year’s sales have only gone up, and this will be another record year. In fact, Broker’s sales have increased over 30% every year for the past five. The company has just won some significant listings, both on- and off-trade. In duty free, the focus of Broker’s President and Managing Director Martin Dawson is on Turkey. He says the country is especially strong in duty free, and is extremely popular for Russian tourists. Though sanctions against Russia have meant little growth in this specific segment of the market this year, Dawson says business on the whole in duty free is still good. The company does not take part in many promotions, but offers a twin pack of two, one-liter bottles that does well in Nuance. Since gin is becoming more popular with the 25-to-40 age group, it has become the spirit to watch this year, and Dawson expects a very good holiday season.

they will benefit from increased turnover and profit. Some retailers are moving faster than others, but eventually most will have a more favourable outlook for wine. Then the other trend is that the wine consumer is becoming unafraid to try wines from new and interesting parts of the world with which they are not so familiar – for example South Africa, which has perfect growing conditions and has been making wines for over 300 years.” Looking to fill those shelves with more well-respected wines, Diverse Flavours has recently added to its portfolio Groot Constantia and Ghost Corner wines, some of which will be presented at TFWA WE in Cannes. Groot Constantia is South Africa’s first and oldest winery, dating to 1685, when a piece of land was granted to the first Governor of the Cape, Simon Van de Stel, who named the farm Constantia. He chose the location for its favourable soils and mountain slopes gently cooled by the ocean breezes of False Bay. Thus began the South African wine industry, and Constantia wines gained a reputation around the world for their superior quality. Each year Groot Constantia receives 300,000 visitors, and is one of the big six tourist destinations on the Cape. At Cannes, Diverse Flavours will showcase six of this winery’s selections: the Gouverneurs Reserve Red, Pinotage, Shiraz, Sauvignon Blanc, Blanc de Noir, and its legendary Grand Constance Dessert wine. Also showing for the first time will be wines from Ghost Corner, South Africa’s most southerly winery. In the Elim Ward, lying inland from this dramatic coastline, lie the vineyards where David Nieuwoudt is making the most of excellent growing conditions, cooling southeasterly breezes and extreme climate. The deep lime-rich soil with plentiful slate and gravel deposits are perfect for growing Semillon, Sauvignon Blanc, and Pinot Noir grapes. Diverse Flavours is working on some travel retail packaging and exclusives for the coming year, but meantime has been focusing on launches, promotions and training sessions throughout MENA and Asia. “Over the next year we will have many launches in these regions, and will host big events to support them,” says Budd. New and current wines will be on view in Red Village, L34.  Groot Constantia is South Africa’s first and oldest winery, established in 1685

Dramatic rise from the Cape

Anthony Budd, Managing Director of Diverse Flavours, is excited about how well his company has done this year, both in Asia and the Middle East. “Business has been fantastic!” he says. “We’ve gained more listings in duty free shops and on airlines for pouring. We’ve introduced estate wines from Avondale, Cederberg, Deetlefs, Ernie Els, Eagles’ Nest, Hidden Valley, Mt Vernon, Napier and Raats Family Wines. In some cases this is the first time operators have seen a South African wine. The response and cooperation have been excellent.” Promotions at Dubai Duty Free have proven very successful for Ernie Els, Cederberg and Raats Family wines. Budd describes his forecast for the region as “extremely optimistic!” He says, “I think the trend for purchasing wine has already taken hold. I foresee that retailers will increase their space for wines, and www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

Berry Bros. & Rudd Spirits

On the

Johnny Roberts, Asia Business Director at Berry Bros. & Rudd Spirits, samples a vintage from The Glenrothes

up and up Berry Bros. & Rudd Spirits sees success in Dubai with the Manse Brae range and a concentration on promotions to increase in-store presence by RYAN WHITE

erry Bros. & Rudd Spirits’ (BBR) business in the Gulf has been picking up given a the high-profile launch of the Manse Brae range last year and the region’s penchant for luxury products in general. The Manse Brae range is a series of whiskies exclusively for the international travel retail channel that celebrates the spiritual home of The Glenrothes. Named after the street on which Rothes House stands, Manse Brae comprises Manse Reserve, Elders’ Reserve and Minister’s Reserve. Rothes House was formerly the Minister’s home, known as the Manse, overlooking the town below. This was where the Elders of the Kirk would meet. The history of Glenrothes Distillery is inextricably linked with the Church of Scotland: the United Presbyterian Church of the nearby village of Archiestown lent the sum of £600 (US$928)—equivalent to £50,000 (US$77,323) today—to the distillery in its infancy, without which the distillery would never have been built. But it’s more than the rich history that makes this launch special; Manse Brae marks the first time that The Glenrothes has released an entirely new range of whiskies specially bottled for travel retail. The range also benefits from new packaging with a new presentation for The Glenrothes. In fact, the new design won World’s Best Design at the World Whiskies Awards 2013. Asia Business Director for BBR Johnny Roberts tells Gulf-Africa Duty Free that in addition to the new range, the company’s strategy when it comes to promotion has played a role in the increasing popularity of The Glenrothes in the Gulf. “We are seeing success in Dubai where we have a more consistent approach to mer-

chandising and have utilized several GWPs to grow presence in the store,” he explains. “The Glenrothes is growing at double-digit rates and we expect this trend to continue over the medium term.” Certainly helping BBR get the word out about its brands is the fact that late last year the company was in the spotlight at Dubai International in a window display in the luxurious Dubai Duty Free retail area located in the First Class lounge in Concourse A, which is dedicated to the Emirates A380 fleet. In addition to a selection of Berrys’ Own Selection single cask whiskies and as a result of a collaboration with Edrington Fix Middle East, the Dubai Duty Free First Class offer included The Glenrothes Extraordinary Cask 1970. The following rare and single cask whiskies were included in the exclusive selection: Berrys’ Own Selection Isle of Jura 1976, 35YO; Berrys’ Own Selection Glen Grant 1974, 37YO; Berrys’ Own Selection Glenlivet 1973, 38YO; and Berrys’ Own Selection North of Scotland Grain 1973, 38YO. “The lounge was the first travel retail outlet to sell The Glenrothes XO cask from 1970. There are only 179 bottles globally and Emirates has already sold two,” Roberts says. “We are continually seeking opportunities to broaden our foot print whilst making sure that the brand is ready to enter new markets.” Importantly for BBR, Roberts says he doesn’t see things slowing down in the near future: “Our travel retail business in the Gulf measures favorably with growth we are experiencing in Asia and Europe. The passenger and airport growth in this region is incredible. We expect this trend to continue and we believe it will lead to growth opportunities for our brands.” 

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

The Glenrothes Manse Brae range, exclusive to travel retail

Inver House

Looking back, looking forward

50 years of Inver House are commemorated with parties and a limited edition bottling by WENDY MORLEY

The history

The year was 1964. One of the oldest distilleries in the US, Publiker Industries of Philadelphia, had been selling its popular whiskies since 1913. In order to ensure a good supply of its recent addition, Inver House Rare blended Scotch whisky, the company purchased a disused paper mill in Airdrie, and Inver House Distillers was born. Publiker Industries soon constructed a fully integrated production operation, including malting, malt and grain distilling, warehousing, bottling and a cooperage. Before long Inver House Distillers was a going concern, steadily growing throughout the 1960s and ‘70s, but after the death of Publiker’s driving force Sy Newman in 1976, the company went into a period of decline. The turnaround came in 1988, when Scottish directors of the distillery led a management buyout. That same year, Inver House purchased Knockdhu Distillery. Throughout the 1990s, Inver House acquired a number of other distilleries including Speyburn, Pulteney, Balblair and Balmenach, which together with Knockdhu created the blend that makes up the company’s iconic blended whisky, Hankey Bannister. The turn of the millennium brought a new chapter for the now thriving company, as it was acquired by an investment arm of its former customer, the TCC group.

Inver House and parent company Thai Beverage held a glamorous party at the Assembly Rooms in Edinburgh for current and former staff and their partners plus other guests

The celebration

After 50 years of highs and lows, Inver House deserves a celebration, and a celebration it is having. June of this year brought a 1960s-themed party for current and former staff, along with their partners and other guests. The glamorous bash was held at the Assembly Rooms in Edinburgh. Later in the summer the Scotch whisky industry held a reception for the company at the Archerfield Links in East Lothian. While parties are a fun part of its semicentennial commemorations, the company is also taking a more reflective approach. An archivist is using never-before-seen records along with memories and mementos from former staff and the Airdrie community at large to create a definitive history. This will result in a beautiful 50th anniversary book. A whisky company would be remiss if it had a grand anniversary without a bottling, and indeed, Inver House’s 50 years of existence will be memorialized with a special limited edition whisky. This liquid is a blend of 10-year-old whiskies from Old Pulteney, Balblair, Speyburn, Knockdhu, Balmenach and the pièce de résistance, a hint of 50-year-old Hankey Bannister. While celebrating its past, Inver House has its eyes set clearly on the future. The company is continuously growing in sales and reach. Its whiskies are available in over 90 countries around the world. Production

Formerly a paper mill, this building was purchased by Publiker Industries and turned into Inver House Distillers in 1964

Graham Stevenson, Managing Director of Inver House, thanked current and former staff

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

is higher than ever, and the company has recently invested GBP 4 million (US$6.72 million) at the Speyburn distillery, doubling its capacity. And its successes continue. This year Inver House won an impressive 22 medals in the prestigious International Wine and Spirits Competition, including two Gold Outstanding accolades for Hankey Bannister Original and Balblair’s Vintage 1983. Inver House Distillers’ Managing Director Graham Stevenson commented: “We are immensely proud of the successful business over the past 50 years. Our thanks go to every member of the Inver House team past and present. Looking back and celebrating our journey has been a great pleasure, but 2014 is also about raising a glass to the future of Inver House Distillers. We are very much looking forward to what lies ahead for our business over the next 50 years and beyond.” 

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Liquor News

The partnership between Bacardi’s Grey Goose and Sir Richard Branson’s Virgin Galactic was announced at New York City’s Rose Space Center and Hayden Planetarium

FLYING FAR BEYOND

If anyone embodies the spirit of Grey Goose’s “Fly Beyond” campaign, it is Sir Richard Branson. A true visionary who has pushed the boundaries his entire life, achieving incredible success not only in business but also through activities such as attempting to circumnavigate the earth in a hot air balloon or earning the world record for crossing the English Channel in an amphibious vehicle, he will next cross an extraordinary boundary: that of the earth’s atmosphere alongside his passengers on the first-ever commercial flight into space. It’s appropriate then, that Sir Branson’s commercial space travel company Virgin Galactic should form a partnership with Bacardi’s Grey Goose. This official partnership was announced by Sir Branson at the Virgin Disruptors, a thoughtleadership series sponsored by The Virgin Group. The announcement, which took place at the Rose Space Center and Hayden Planetarium in New York City, was made alongside Virgin Galactic CEO George Whitesides, Bacardi Global Category Director for Premium White Spirits Ben Farlow and Grey Goose Creator and Maître de Chai François Thibault. This groundbreaking partnership will mean more than just the announcement of a shared philosophy. Grey Goose will celebrate the extraordinary achievement through iconic media, exclusive content, experiential events, limited editions and consumer retail. The super-premium vodka brand will also hold exclusive sponsorship activity at the Virgin Galactic launch location at Spaceport America, New Mexico. Those on board this virgin flight will enjoy signature cocktails made with the exceptional liquid. “We are delighted that Grey Goose is joining us as a partner on our incredible journey. This evening of disruptive and rich debate about the future of travel, a wonderful celebration of human achievement, is at the heart of the Virgin GalacticGrey Goose partnership. We share a passionate pursuit of the extraordinary, which we look forward to celebrating together as the world’s first commercial spaceline builds and grows,” says Branson.

Three new Irish beverages The Avalon Group Inc., creators of the award-winning The Wild Geese Irish Whiskey Collection, recently announced three new premium products. The Wild Geese Irish Honey Liqueur offers whiskey drinkers a brand new alternative and a milder introduction for those who do not yet consider themselves whiskey enthusiasts. Its secret recipe is inspired by Saint Gobnait, Ireland’s patron saint of beekeepers. The Wild Geese Irish Honey Liqueur bottle is appropriately decorated with a stylish modified bee seal. Untamed Irish Vodka is distilled from grain and Irish apples. Its second distillation helps it achieve optimal purity and a distinct, smooth taste. That distinct flavor makes it ideal for cocktails or shots. Untamed Irish Vodka is presented in a bottle that features spectacular chrome wings meant to symbolize the unbroken Irish spirit. The Exiles Irish Gin is a product from a team led by an eighth generation ginmaker whose family has been distilling gin for more than 300 years. The gin is distilled five times and the result is a smooth and floral flavor. The Exiles Irish Gin is infused with the essence of Ireland including red clover flowers, rowan berries, honeysuckle flowers, bog myrtle and shamrock.

Protégé wants the world to know the Irish create a selection of fine spirits

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Imperial Collection Super Premium Russian Vodka is available at Selective Venues & Retailers DISTILLED AND BOTTLED IN RUSSIA BY LADOGA GROUP

WWW.LADOGASPB.COM

Liquor News

Slashes of signature red Campari, the vibrant red spirit from Milan, is quintessentially Italian. It is at once both modern and historical, with an instantly recognizable bottle, label, and especially color. Its color along with its bitter, fruity flavor made it an ingredient in famous cocktails such as the Negroni. Campari’s fans are more likely to highlight the taste by drinking it mixed simply with soda water. In existence and with an unchanged recipe since 1860, Campari has just introduced its very first travel retail exclusive packaging. In this arresting design, the bottle is intersected by thin, intersecting slashes, the same color as the liquid inside. The concept of this distinctive and eye-catching design combines two Milanese icons: the brilliant red of Campari and the striking architecture of the city. The clean lines, surprising execution and elegance of the exclusive package speak to those attracted by beauty and fashion. Andy Holmes, Gruppo Campari Global Travel Retail Director, says: “We want to celebrate our signature brand in the Aperitif category, applying a specific and unique package to it in global travel retail. We took inspiration from the iconic Italian design and we applied it to this special glorifier. It’s elevating and more inspiring than ever, fully representing the passionate character of Campari.” Campari, an aperitif both a part of and above fashion and trends, is distributed in over 190 countries. Nearly three million nine-liter cases are sold globally each year.

Slashes of Campari’s signature red bring to mind Milan’s striking architecture

DANZKA’s new Apple flavor was developed because the company saw the flavor was truly desired in the marketplace

Enjoy a premium appletini Award-winning premium Danish vodka DANZKA is almost as well known for its flavor selection as for its sleek bottle design based on a cocktail shaker that is perfect for traveling because it doesn’t break. At TFWA WE in Cannes, the company is launching its first new flavor in 10 years, DANZKA Apple. The previous most recent flavor launch was the popular DANZKA Cranraz. “DANZKA Apple is a very important flavor for us,” says Rudger Behn, Managing Director, Waldemar Behn GmbH. “DANZKA Apple was not developed because we had to come up with something new; it was developed because we see a real desire for the apple flavor. We are going to the root of basic but delicious flavors.” Torben Vedel Andersen, Global Sales Director for Waldemar Behn, suggests that with the popularity of the appletini around the world, DANZKA Apple makes an obvious choice. “Appletinis are standard in drinks menus in bars around the world,” he says. “DANZKA Apple makes a refreshing appletini with simple but delicious flavors. Now there is a premium apple vodka to feature in high-quality appletini.” He adds that the new flavor will be available for tasting in Cannes at H52 Green Village. This newest addition to the DANZKA line has already received a gold medal in the “Fifty Best Vodka” awards this September. It will be ready to ship after its launch in Cannes, and will be on shelves January 1, 2015. 82

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

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China International Duty Free

The duty free exclusive variant of one of CIDF’s star products, Diaoyutai, with its highly distinctive yellow packaging

CLAIRE MALCOLM

CIDF extends regional reach Leading distributor and marketer of Chinese products to worldwide duty free locations, China International Duty Free is growing its Gulf and Africa presence

urrently supplying over 50 international airports, cruise liners and border shops with premium Chinese products, China International Duty Free (CIDF) has experienced continued strong year-onyear growth according to Andras Froemel, Regional Director, EMEA. “In terms of sales results we have doubled both our portfolio and volume in a number of locations since 2013 and have expanded to more than 15 additional global locations since the beginning of 2014,” he says. “Whether it be multi-destination or single-site operators, we are seeing them dedicate more and more space to the segment,” he adds. The Gulf region is a very active market for CIDF, as Froemel explains: “We see solid growth in the Gulf, particularly in Doha and Abu Dhabi, where we have more than seven brands in both destinations. Dubai is also very important as it has significant Chinese passenger traffic. “We recently listed with Dufry in Africa, including Algeria, Ghana, the Ivory Coast and Nigeria, where our products have just gone on shelf to cater for the immigrant residents and workforce. Direct connec-

tions between these locations and China make a big difference to the performance of our products.” Expectations for the final quarter of the year are positive, with CIDF anticipating strong sales across both the tobacco and baijiu (Chinese spirit) segments with a wide and varied portfolio of goods on offer, as Froemel explains: “We have a range of different price points in order to cater to as many different types of Chinese consumer as possible. “In the low to mid-priced section, Ashima, Yuxi Red King Size and YunYan Special are among the top sellers. Moving up, Yuxi Harmony International, which is a duty free exclusive, performs very well. In the premium category we find that Baisha Harmonization and Diaoyutai consistently rank at the top in terms of sales value.” CIDF’s baijiu bestseller is TianZhiLan, which it recently launched in DFS Hong Kong and Dubai Duty Free. “As a midpriced baijiu it is very popular with our Chinese consumers as the current market trend sees a turn away from super-premium baijius such as Maotai,” remarks Froemel.

Expanding horizons

The company dedicates a lot of time to researching its target market and staying up-to-date on changing preferences, which it sees as a vital element to remaining competitive within the segment. Says Froemel: “This relatively new market in duty free is evolving very quickly and we are seeing increasing sophistication in the Chinese tourist market with a rise in

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

the number of passengers travelling independently and moving away from organized group travel. “These consumers are turning their attention to what could be considered more remote and exotic locations for leisure holidays. While much of Africa is business traveler oriented, places like Tanzania are opening up for more adventurous travelers.” Interestingly, Froemel flags growing Chinese tourist interest in cruise vacations. “It’s a big market and looks very promising. They like to cruise to places like Korea and Japan.”

Eye-catching design

Gifting is another pillar of CIDF’s portfolio mix, as Froemel elaborates: “The significance of gift-giving among the Chinese is something that we always take into account when evaluating different locations. It is one of the main motivations behind the purchase of our most high-end and exclusive products. “We try to appeal to as many different Chinese consumers as possible, from the experienced, adventurous and wealthy leisure tourist to the migrant worker. This is one of the reasons why we work towards listings in locations that may first appear to be far-flung, but which show real results.” Packaging is key to sales with eye-catching Chinese design motifs a staple across all marketing campaign material in order to stand out in what is a very crowded tobacco segment. “GWPs and specially designed multipack offers are very popular with our target market so we do our best to invest strategically in these activities,” he says.

Chinese New Year promotional material for Qatar Duty Free

Yanghe baijiu dislay at Dubai Duty Free

“Chinese consumers are also driven by product status. In cigarette gifting they usually give high-end value products, however if the product is exclusive and has distinctive packaging like Ashima Gold, it can also be considered as a token gift.” CIDF has also recorded a marked increase in the distribution of Diaoyutai since the start of the year. The renowned Beijing guesthouse carries the same name, where Madame Mao once resided and which Michelle Obama has also visited produces this super premium brand. The brand launched a duty free exclusive variant in a highly distinctive yellow pack, which has swiftly become a “star product.” “We have had success in the past with exclusive destination sleeves as well, which are a hit with passengers looking to bring back high-end tobacco products as special souvenirs or gifts,” says Froemel. The company also picks up on seasonal occasions and produces specially designed multipacks for Chinese New Year incorporating traditional colors and motifs. With the Chinese Mid-Autumn Festival about to commence, CIDF has a number of GWPs ready for launch. Says Froemel: “We are looking forward to the second Golden Week of Chinese travel and have a great line-up of items for different locations, including travel adaptors, portable battery chargers, iPad covers and a traditional dice and cup game.

TianZhiLan and M3—both of which have been launched in various locations, including with DFS in Hong Kong as well as Changi and Dubai Duty Free. “We’ve also expanded our distribution of our Liqun products to duty free locations in Japan and Baisha Harmonization to the Maldives and Middle East locations,” adds Froemel. Coming up over the next six months will be an expansion of the baijiu portfolio to include two new variants from the XiJi-

angJiu range, with South Korea the launch destination. “With regard to tobacco, we are also examining the market potential of Slims and Nano variants, which would be a new product segment in the Chinese cigarette market,” he comments. CIDF is also keeping a close eye on developments in the domestic e-cigarette industry, and although it hasn’t taken off among Chinese consumers just yet, is one to watch. 

Andras Froemel, Regional Director, EMEA, China International Duty Free

On the shelf

Other new products making an impact include two variants of Yanghe baijiu—

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Absolut

Absolut Warhol

comes to life In what can only be described as a spectacular display of life imitating art imitating life, Absolut’s Andy Warhol edition will soon be available to the brand’s worldwide collectors by WENDY MORLEY

bsolut has been strongly associated with art since 1986, when it first commissioned Andy Warhol to create a work based on the iconic vodka brand. Warhol, who was the leading figure in the contemporary art and culture movement and whose influence endures to this day, was famous for his depictions of everyday objects and events. Therefore Warhol may have been the obvious choice to help Absolut usher in an era of collaborative efforts with distinguished artists.

A vodka history in art

To celebrate nearly 30 years of its strong association with art, Absolut has come full circle with its Andy Warhol edition

Since that time Absolut has commissioned more than 850 works by over 550 notable artists, and that vast collection is now permanently displayed in Sweden’s Historical Museum of Wine and Spirits. The seemingly endless array of artists Absolut has collaborated with includes Keith Haring, Kenny Sharf, Damien Hirst, Jean-Paul Gaultier, Louise Bourgeois, Stella McCartney, Versace and Swedish House Mafia. Earlier this year, the company collaborated with Brazilian illustrator Rafael Grampá on Absolut Karnival, an orange-blossom and passion-fruit-flavored beverage that is the company’s latest global travel retail limited-edition product.

Past and present intersect

Andy Warhol’s original piece commissioned by Absolut in 1986

Given Absolut’s rich and ever-growing evolution since its first collaborative effort with Andy Warhol, the company decided the timing was right to celebrate its chosen direction. Fittingly, Absolut drew on that rich history and developed a tribute to its very first commission with the newly released Andy Warhol Edition. Johan Rudström, Global Marketing Director at Absolut Vodka, says: “The Andy Warhol Edition transforms Warhol’s original painting into

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

the three-dimensional shape of the Absolut bottle and allows for anyone to bring home their very own Warhol.” The company indicates that to support the launch of the new Andy Warhol Edition, it will soon be adding two more fresh concepts to its stable of supportive organizations: the Andy Warhol Art Exchange by Absolut, and the Warhol Spirit by Absolut in New York. A portion of the proceeds generated by these organizations will go as royalties to The Andy Warhol Foundation for the Visual Arts, a non-profit, charitable organization established in 1987 with a mission to advance the visual arts. Today, the organization is recognized as being among the leading supporters of contemporary art. Absolut Vodka is manufactured exclusively in the company’s home base of Sweden and is the fourth largest premium spirits brand in the world. While the Andy Warhol Edition is not an exclusive to the travel retail industry, it will be made available for global travel retail along with other worldwide retailers in October, 2014.  Earlier this year, Absolut created a distinctly Brazilian travel retail limited edition

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Davidoff

When art meets cigars CEO Hans-Kristian Hoejsgaard feels Davidoff has found its rightful place as a strong member of the global arts community

igars and art are a natural pairing, says Oettinger Davidoff CEO Hans-Kristian Hoejsgaard. “Everything about cigars is made by hand —the cigar itself, the humidor,” he says. And cigar aficionados, he has noticed, have a connection to the art world. “From our database we know that many of our customers are interested in art,” he says. “Some are very big art collectors.” In 2011, the year Hoejsgaard came on as CEO, the company was reviewing its sponsorships. Oettinger Davidoff had two CEO Hans-Kristian Hoejsgaard has spearheaded the unique relationship between Davidoff, Art Basel and the art world at large

WENDY MORLEY

major global sponsorships in music and sports that were coming up for review. Since he had realized how much sense the association would make, Hoejsgaard suggested looking at Art Basel. It was a perfect fit, he thought. The two companies have the same home, Basel, Switzerland, they are both global and Hoejsgaard had observed this art-cigar connection. Art Basel, an organization begun in 1970, stages three art shows annually, in Basel, Hong Kong and Miami. It is now considered the premier international art show in the world, providing a platform for hundreds of artists and galleries each year. The organization’s role, as it states, is to bring together artists, galleries, collectors and public institutions, recognizing the importance of these members of the arts community and their involvement with each other. Over the course of three or four days at each location, Art Basel does just that, and also invites the public at large to experience what art can do. While money certainly exchanges hands in the art world, art organizations are not businesses and they normally spend a great deal of effort and energy trying to find sponsors. One can only imagine the offices of Art Basel that day in 2011 when the phone call came from Davidoff that the company was interested in a large sponsorship role. With that, Davidoff became one of Art Basel’s main sponsors, along with Absolut, Audemars Piguet, Axa Art and Netjets. Thus began Davidoff ’s connection with

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Dominican artist Polibio Diaz works with video, performance art and photography, as seen here with his “Entrada a la Ile Saint-Louis”

the art world. But it certainly was just the beginning. Davidoff and its CEO Hoejsgaard were not satisfied with just throwing in money as a sponsor. If the company were to involve itself, it would jump in with both feet.

The Davidoff Art Initiative

Davidoff has a strong relationship with the Caribbean, especially the Dominican Republic. The company’s tobaccos are grown there and its cigars are crafted there. Of the company’s more than 3,500 employees worldwide, 1,800 of them are located in the Dominican Republic and Honduras. Oettinger Davidoff as a company feels strongly the need to give back to the community. In 2011 it already had a number of social initiatives that address those who live there, and has always enjoyed a positive relationship with the area’s residents. Meanwhile, Hoejsgaard was well aware that the Caribbean has a vibrant art community often overshadowed by that of bigger countries. Given its new association with Art Basel, the company saw the next logical step in its social responsibility evolution was to found the Davidoff Art Initiative. Announced during Art Basel Miami in December of 2012, the Davidoff Art Initiative came into being with the help of András Szántó, a lecturer at Columbia University and a consultant in areas of art, business and strategy. He helped define what was possible and helped the company write the strategy.

Davidoff’s Collector’s Lounge at Art Basel in Hong Kong was home to the company’s first two commissioned cigar boxes

The initiative rests on four pillars

The strategy Szántó helped to write was based upon four pillars. The first pillar and nucleus of the initiative is the art residency in the Dominican Republic, where emerging and mid-career artists will be offered an opportunity to spend an extended period of time working in a different social and creative environment from their own. “The Davidoff Art Residency serves as a conduit for professional mobility, cultural immersion and creative exchange,” says Hoejsgaard. The groundbreaking took place in March of this year and the first five visiting guests, chosen from a pool of applicants from around the world, will stay there from January until April, 2015. The second pillar is to send Caribbean artists to art residencies. As Davidoff brings talented artists from around the world to the Caribbean, it will also be sending Caribbean artists around the world. A total of five artists from the region each year will be sent to residencies abroad, one each to the International Studio & Curatorial Program (ISCP) in Brooklyn, the Künstlerhaus Bethanien in Berlin and Red Gate in Beijing. This program will soon extend to another residency in Europe plus one in South America. The third pillar is to provide small grants for arts organizations in the Caribbean. Some recent examples include a grant to an art school, allowing the building of a floor, to an art magazine in St. Vincent that

had been run completely by volunteers, providing enough to hire an employee, and to a photography conference, allowing organizers to invite international exhibitors. The fourth and final pillar is to commission artworks by Caribbean artists. This year Davidoff commissioned an artist to create cigar boxes for a special limited edition. This limited edition cigar was released during Art Basel Hong Kong this year in the Davidoff lounge. For Davidoff this is about something beyond corporate daily life. The company has begun holding informational art dialogues for collectors, though Hoejsgaard is quick to point out they are not experts. They have a field of experts—an international advisory panel—who help them choose worthy artists and also suggest to artists that they apply. The hope is that each year Davidoff will be able to assist artists from all over the world who work in many types of visual art. Hoejsgaard feels that in art the company has found its place of equilibrium between commercial, corporate and corporate responsibility. Davidoff is becoming firmly established as part of the art community and he feels it’s gratifying to help artists. “You have to take a long-term view with sponsorship,” he says. “Every year Davidoff will help 10 artists to experience the world and learn from others.” 

Jorge Pineda is an artist from the Dominican Republic chosen for Davidoff’s residency program

The centerpiece of the Davidoff Art Initiative is its residency, built at the Altos de Chavón School of Art and Design

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Distell

Amarula Gold has had many activations and promotions throughout its first year, and these are continuing

THUNDERING

FROM THE CAPE

ike the elephant proudly displayed on its label, Amarula, the famous South African cream liqueur made using the marula fruit, charged onto the global spirits scene in 1989. It soon became the number-one cream liqueur in some parts of the world and the second in line in many others. Twenty-five years later, its noncreamy sister Amarula Gold launched globally in March of this year, and travel retail was an important part of Distell’s plan for the brand’s global launch. Sales of Amarula and Amarula gold have grown substantially throughout the world, including within the Gulf-Africa region. The company has held many promotions, and sales at Dubai Duty Free in particular have been excellent since the Amarula Gold launch. Distell continues to hold activations for Amarula and Amarula Gold. The brand will be reactivated in November at OR Tambo and Cape Town International Airports. Sales have been consistently growing at Big Five Duty Free outlets in South Africa.

More than just Amarula

Amarula Gold has been the company’s focus this year in travel retail, but it is far from being Distell’s only offering in this market. The company is seeing success with its Bisquit Cognac in the Gulf region, and its wine sales, always substantial in the domestic market, have been increasing in travel retail as well. Bisquit XO Rose Gold launched this fall, and its launch is the focus of one promotion taking place in October at Dubai 90

Bisquit Rose Gold XO is launching at TFWA WE Cannes, and will have activations in travel retail to announce its launch

South Africa’s largest wine and spirits company continues to have an exciting year in travel retail, with multiple launches and relaunches by

WENDY MORLEY

Duty Free. For this promotion, customers who purchase two bottles of Bisquit Cognac will receive a gift with purchase. October has also been the scene of a promotion for Bain’s Cape Mountain whisky at OR Tambo International Airport in Johannesburg. Travelers are able to engage with the brand and can win a 50mL Bain’s miniature by successfully passing a ball through a Bain’s water maze. This activation highlights the connection between Bain’s Cape Mountain whisky and the fresh mountain waters of the brand’s namesake, a mountain valley called Bainskloof. Customers can also receive a 50mL gift-withpurchase miniature. Bain’s Cape Mountain whisky has been getting a lot of attention since winning the gold medal for best grain whisky in the 2013 World Whiskies Awards, and should continue to do so in travel retail.

A big, black, bold relaunch

Great excitement has surrounded the relaunch of Black Bottle whisky. Soon after its first appearance 1879, Black Bottle developed a following for the rich, smoky whisky in its namesake black bottle sourced from Germany. Despite its name, however, the brand appeared in a green bottle for most of its existence, starting when World War I cut the company off from its supplier. Black Bottle whisky is going back to its roots. The design of the new black bottle was inspired by an archival version from 1906. While the blend of the whisky had changed over the years, the blend, too, is going back

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

to its origins. The brand’s new retro expression won the World’s Best Relaunch Award at 2014’s World Whisky Design awards. The new one-liter Black Bottle will be presented at a trade launch event at TFWA Cannes in October. Bisquit will also launch a limited edition product for Chinese New Year. The Year of the Goat limited edition will be revealed at TFWA WE Cannes. 

Great excitement surrounds the relaunch of Black Bottle whisky, back in its namesake vessel and with a recipe to match

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Tobacco News

Elegant, slim and modern Imperial Tobacco is launching two new products this fall, and both of the company’s new launches are sophisticated and current. Davidoff Superslims’ revitalized version is sleek and chic. These refined and contemporary cigarettes are presented in graceful packages with embossed quilted textures and current colors that bring to mind confidence and sophistication. Davidoff Superslims are available in three new variants. Violet will replace the current Gold (6mg), Rosé will replace Silver (3mg), and White will remain the same color but with new packaging (1mg). Whereas these three choices are being offered with Davidoff’s modern new packaging, the cigarettes themselves are not changing. Davidoff Superslims have enjoyed a prelaunch at Hong Kong International Airport. This location was chosen by the company because of its importance as an international hub in addition to its key passenger profiles and the ease of employing activations there. This new product will formally launch at TFWA WE Cannes, and will be rolled out progressively in global travel retail after that point. “We replaced the current Superslims Line with the new Violet and White offers exclusively at Hong Kong International Airport from May through August, supported by brand ambassadors and an awareness-creating merchandising approach,” says Christian Muenstermann, Trade Marketing Director of Global Duty Free for Imperial. “We received very positive feedback from our pioneer market at HKIA.” Not satisfied with one modern and cosmopolitan launch, Imperial is also relaunching the iconic French cigarette, Gauloises. An especially popular brand with French and German travelers, Gauloises also sees strong sales in the Gulf region and through North Africa, Turkey and Egypt. The new image is the next step in the cigarette’s ongoing transformation from a typically classic French brand to one that oozes modernist France and is known worldwide as the numberone French cigarette brand. The new tagline is “Vive Le Moment,” which translates as “live for the moment.”

Imperial’s classic French cigarette, Gauloises, is becoming a modernist French cigarette

Davidoff Superslims have graceful new packages with embossed textures and contemporary colors

The new Gauloises will launch in France in December, rolling out worldwide from spring 2015 onwards. The new design will be supported by a strong consumer advertising campaign based on the theme “Vive Le Moment,” with dynamic key visuals and slogans such as: “Wrong flight, wrong hotel, new friends.” The new Davidoff Superslims and the new Gauloises will be displayed at Imperial Tobacco’s booth at Gold village stand GO6 at the TFWA World Exhibition in Cannes.

A new cigar and a new display Royal AGIO Cigars is offering a new addition to its Balmoral Dominican Selection, and the company has also created a new gondola in order to feature the line in travel retail. The new model of cigar is short but sturdy, matching the current consumer’s desire for a cigar full of flavor but without the time commitment. This Short Corona contains a fully aromatic and perfectly balanced blend of Dominican and Brazilian tobaccos, offering a satisfying smoking experience with hints of vanilla, coffee and cedar. Each cigar is individually packed in cellophane in order to guarantee optimal quality. In some global travel retail locations, this new Short Corona can be found featured along with other members of the Balmoral Dominican Selection on the company’s new gondola. This gondola, perfect for limited airport space, measures a compact 65 x 55 x 140cm and has a generous storage area at its base. The new gondola is designed to inspire and intrigue the consumer, inviting him or her to use the senses of sight, hearing and touch to interact with the brand. While built to showcase the Balmoral Dominican Selection, this gondola provides an outstanding showcase for the popular and growing short-filler segment. 92

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Popping the flavor capsule in ESSE CHANGE cigarettes is a fun part of the smoking experience for the consumer

NEW ACQUISITIONS In September, General Cigar Company of Virginia, United States, acquired two other cigar companies and a Cigar and Blend Specialist too. First the company acquired Miami-based Toraño Family Cigar Company on September 11, 2014. This acquisition is expected to not only strengthen General Cigar’s international and domestic market positions, but also to enhance its portfolio and overall product mix. Toraño’s history dates back to Cuba in 1916 and includes virtually every area of the industry including manufacturing and growing its own tobacco. The portfolio includes Casa Toraño, Reserva and the popular Exodus in addition to the Vault and Master Collections, which will apparently remain unchanged. Less than a week later, on September 17, 2014, General Cigar announced both the acquisition of Leccia Tobacco Company and the hiring of Sam Leccia as the company’s Cigar and Blend Specialist as an appropriate addition to the unconventional Foundry Tobacco Company. General will immediately begin marketing and distributing Leccia’s Black, White and Luchador lines. Last year General Cigar formed the Foundry Tobacco Company, a whimsical if not eccentric division that was the brainchild of General’s Creative Director Michael Giannini. His inspiration was Victorian-era science fiction and other oddities. Foundry’s cigars and cigar boxes are unique and playful, and the design has a feel that’s somehow both antique and futuristic. Foundry is the perfect home for the Leccia Tobacco Company. Sam Leccia was not raised in the cigar industry; he became fascinated with it as an adult, studied the craft and promptly turned it on its head. In Leccia’s new role with General Cigar he will continue to develop his brands and will also be expected to create fresh new premium cigar products. Foundry Tobacco Company is an eccentric division that was the brainchild of General’s Creative Director Michael Giannini, and a perfect home for its unconventional new Cigar and Blend Specialist Sam Leccia

Fun and flavorful KT&G is offering a fun way to add a new interesting flavor to its ESSE superslim brand of cigarette. Its new ESSE CHANGE is the first cigarette in the market with super-slim capsule technology. The brand offers two flavors in one cigarette, maximizing the freshness as a popping of the capsule provides a burst of apple-mint flavor. Capsule popping is a fun part of the smoking experience for the consumer. This product, which comes in both a 1mg and a 4mg tar version, has been a huge success in Korea, and is now being offered in a number of other countries. Another super-slim cigarette offered by KT&G is the BOHEM Cigar Mini. At 84 mm in length, this extra-long superslim item is part cigarette and part cigar, with 20% premium cigar leaf. Its special cigarette paper is also made of cigar leaf. The BOHEM has a full flavor that complements a stylish urban consumer. This product is offered in two varieties, with 1mg and 5mg of tar. The BOHEM Cigar Mini is currently sold in Japan and Nigeria, and is extending its distribution coverage worldwide.

The extra-long BOHEME Cigar Mini

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Questionnaire

ALL ABOUT

Colm McLoughlin, Executive Vice Chairman, Dubai Duty Free

Q: Where were you born and raised? A: I was born in Ballinasloe in County. Galway, Ireland and raised there along with my two brothers and two sisters. Q: If you attended post-secondary school, what did you study? A: I attended Garbally College in Galway. The plan was to study to be a dentist after finishing, but I then spent a summer in London and decided to stay on. Q: Are you married? Do you have children? A: My wife Breeda and I have three children. Our son Niall lives and works in Dubai while our daughters Tyna and Mandy live in Brighton. Mandy and her husband Mike have two children, Erin and Ethan. Q: What is your favorite movie? A: I remember a film called “Random Harvest,” starring Ronald Colman and Greer Garson, about a soldier who loses his memory. Q: What is the last book you read? A: I am Pilgrim by Terry Hayes. According to The Guardian it is “the only thriller you need to read this year.” Q: What would you choose as your last meal? A: I would choose lamb cutlets, baked potato and peas, followed by apple tart and ice cream! Q: Your favourite drink? A: Coffee mainly, and the occasional beer Q: Do you have a passion in your life (or more than one)? What? A: I have many passions; I love Dubai Duty Free, having been here 31 years. I enjoy coming to work and seeing our staff progress in their careers. I love sports, including golf,

tennis and rugby. Family is a great passion of mine; Breeda and I see our families as often as possible. Q: Do you have a pet (or more than one)? If so, what animal and name? A: I was going to say Breeda is my pet! We look after a stray cat that just turned up at our house, which we call Minxy. Q: Do you prefer country or city? A: I like both in equal measure. Q: Where is your favorite place to vacation? A: Breeda and I had a terrific holiday in New Zealand with some friends and would love to go back. I enjoy traveling around Ireland, and also driving around rural America. The scenery is stunning and the people are very friendly.

extraordinary person interested in every aspect of life in the emirate. My boss, H.H. Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of Dubai Duty Free, is a superstar who manages to fit more into a day than most people would in a month. Q: Which historical figure do you most admire? A: Nelson Mandela did a lot of good. I also admire Irish political figures Michael Collins and Eamon DeValera, who paved the way for modern Ireland. However, the person I most admire is my father, who lived to be 92. Q: Where and when were you happiest in your life? A: I am very happy right here and now!

Q: What’s the first thing you do in a new place? A: I get a map, find my bearings and walk around to see the sights. I like exploring new places very much.

Q: What in the world would you most like to change? A: The level of terrorism and violence in the world today is worrying, with constant threats of war.

Q: If you could choose any place in the world to live, where would it be? A: I’ve lived in Dubai for more than 31 years. It’s a great place to live and work. I also love going to our home in Brighton where our two daughters live along with our grandchildren, and I feel very much at home in Ireland.

Q: What about yourself would you most like to change? A: I wish I had never smoked, so would change that if I could go back in time.

Q: Which living person do you most admire? A: I have great admiration for the ruling family in Dubai. They’ve made incredible changes over the past 30 years and transformed the lives of everyone living here. H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, is an

GULF-AFRICA DUTY FREE & TRAVEL RETAILING OCTOBER 2014

Q: What is the most important piece of advice anyone ever gave you? A: My father told me to work hard, be honest and look after people when you can. I have tried to abide by this counsel. Q: What is something about you that most people would find surprising? A: Any one of these: I was the number-one squash player in many clubs, I was captain of two golf clubs here in Dubai, I competed in the All Ireland Toastmasters competition and I have a light aircraft pilot’s license. 

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