N O V E M B E R / D E C E M B E R 2 0 1 1 • M E D FA • V O L 2 1 , N O 3
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Dufry retains highest standards p.
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Colm McLoughlin’s p. storied career
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E-cigarettes: The new alternative p.
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MAKE YOUR HOMECOMING A SWEET MOMENT
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Letter from the Editor
Beating the crisis fter speaking to a number of suppliers and operators during the TFWA World Exhibition, we noticed they all shared a similar sentiment about the Middle East: things are tumultuous, but slowly improving. In Africa, there are a number of countries experiencing exceedingly difficult transitions. Nonetheless, there are some pockets that are more stable and give rise to optimism. Thomas Galet, General Manager of Dufry Morocco and West Africa, says his business in the region is flourishing, notwithstanding serious political developments on the Ivory Coast. A new store in Rabat has been planned, and there are numerous Hudson News openings planned for Moroccan airports in the near future. In total, the company operates 19 stores within Morocco, the Ivory Coast and Ghana. To find out more about travel retail news in the region, please turn to our top story. The news gets a little better when looking at the Gulf region… As we were going to press we received an announcement from Abu Dhabi Airports Company (ADAC) about the completion of upgrades to Terminal 1 at Abu Dhabi International Airport. The refurbishment will help the company expand its passenger handling capacity, which in turn will improve the quality of the traveler experience when passing through the terminal. The project took 12 months to complete and was part of a program to expand airport capacity and meet anticipated traffic growth. Longer term expansion plans include building new terminals and facilities. Also in this issue we have interviewed a venerable duty free celebrity: Mr. Colm McLoughlin. The long-time industry veteran took some time to speak to us about his humble beginnings and his 30-year rise at Dubai Duty Free, an illustrious career that deserves to be recognized. We hope you’ll enjoy this issue as much as we enjoyed producing it.
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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. November/December 2011, Vol. 21, No.3. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2011 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 Hibah Noor hibah@dutyfreemagazine.ca CONCESSIONS, LIQUOR & TOBACCO EDITOR Ryan White ryan@dutyfreemagazine.ca MIDDLE EAST CORRESPONDENT Faye Rowe faye@dutyfreemagazine.ca ART DIRECTOR Patrick Balanquit patrick@globalmarketingcom.ca
Kind regards,
ADVERTISING SALES ADVERTISING & MARKETING MANAGER Kim Carrera
Hibah Noor Editor hibah@dutyfreemagazine.ca
kim@dutyfreemagazine.ca SENIOR REGIONAL MANAGER Neelma Hasan nhassan@globalmarketingcom.ca CIRCULATION & SUBSCRIPTION MANAGER Deepa J deepa@globalmarketingcom.ca
www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING
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NOVEMBER/DECEMBER 2011 • VOL 21, NO 3
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24 Contents 10 20
ADAC announces completion of Terminal 1 refurbishment at Abu Dhabi Airport ■ Consortium finalizes Madinah Airport privatization deal ■ RAK Airways introduces flights to Sudan ■ Perfume Holding sets up shop in Dubai ■ Maui Jim gains momentum in Middle East ■ Wandering Monkey delivers entertainment and education ■ Creating royal jewelry for everyone ■ Marketing a fascination with fountain pens that write like ball points
TOP STORY: DUFRY MOROCCO AND WEST AFRICA
The highest standards
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
In his own words Gulf-Africa Duty Free talks to Colm McLoughlin, one of the industry’s true legends, about his start in duty free over four decades ago and the meteoric rise of Dubai Duty Free
IN BRIEF
Dufry Morocco and West Africa ups the ante with new store openings, renovations and customer service initiatives across its 19 store locations
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INTERVIEW: COLM MCLOUGHLIN
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OPERATOR NEWS: SHARJAH DUTY FREE
Snowball effect Renovations to the main store, the opening of two Hudson News locations and positive September passenger numbers bode well for Dufry Sharjah as the year winds down
OPERATOR NEWS: BAHRAIN DUTY FREE
Standing strong Bahrain Duty Free sharpens its focus on customer service, finding no shortage of inspiration during what General Manager Garrett Coogan calls “a difficult year”
Contents
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36 32
OPERATOR NEWS: DUBAI AIRPORTS
Good, better, best Dubai Airport’s passenger numbers rise year over year even as it continues to implement innovations unlike any others present in the Middle East
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OPERATOR NEWS: MIDDLE EAST AIRLINES
Raising the bar Middle East Airlines has done particularly well for itself this year in terms of onboard duty free sales due to its concentration on offering more choice and only the best products
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OPERATOR NEWS: ALDEASA KUWAIT
Building relationships With a new store opening planned and business doing well, Aldeasa Kuwait says it owes it all to the strong bonds it has developed with suppliers and shoppers alike
OPERATOR NEWS: HAMILA DUTY FREE
Fighting the good fight Hamila Duty Free continues to register a series of small victories in the face of declining tourist numbers in Tunisia
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OPERATOR NEWS: DUBAI AIRPORTS AND DUBAI DUTY FREE
A new direction Dubai Duty Free, in cooperation with Dubai Airports and MasterCard, offers travelers a new way to pay
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COMPANY NEWS: dcav8
Ideas led by insight Gulf-Africa Duty Free speaks with Managing Director of dcav8 Hugo Mills about how important it is to get operators thinking outside the box—and outside the store
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
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TFWA WE REVIEW
TFWA World Exhibition attendance up 9% A packed Palais was a perfect testament to the success of the TFWA World Exhibition this year
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Contents
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COMPANY NEWS: PUIG
Brand masters Despite hiccups, sales are up overall for Puig’s huge range of well known brands, and the new rollouts keep coming
COMPANY NEWS: BEAUTÉ PRESTIGE INTERNATIONAL
Elie Saab’s Le Parfum ready for take off Traveller confident Elie Saab’s fashion house fame will rub off on fragrance
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FRAGRANCE NEWS
Fragrant waves
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International Travel Retail takes challenges head on
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Debut in Dubai
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The right mix L’Oréal Consumer Products makes inroads in the Middle East with a varied portfolio
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GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
The spice of life
COMPANY NEWS: PERNOD RICARD GULF
Strength squared
COMPANY NEWS: BERRY BROS. & RUDD SPIRITS
A happy conundrum The increasing popularity of The Glenrothes in the Middle East puts BB&R Spirits in the curiously pleasing position of keeping up with demand for what is an exceptionally rare whisky
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COMPANY NEWS: JAPAN TOBACCO INTERNATIONAL
Steady as she goes The Middle East plays a key role in JTI’s July to September statistics, driving global flagship brand shipment growth
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COMPANY NEWS: KRAFT FOODS WORLD TRAVEL RETAIL (KFWTR)
Fresh from the acquisition of Cadbury, Kraft Foods World Travel Retail is on a roll
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All under one roof
Confectionery Kraftsmanship
LIQUOR REPORT: STANDOUT SPIRITS
Strong sales from operators in the Middle East combined with high demand for Pernod Ricard’s premium spirits combine to boost the supplier’s numbers in the region
COMPANY NEWS: ANTHON BERG
A visit to Anthon Berg’s production facility offers an insightful glimpse into how the Danish confectioner’s products are made from A to Z
Details, details
Whether it’s new packaging, never before seen products or large-scale promotions, spirits suppliers are pulling out all the stops to keep travelers in the Middle East on the edge of their seats
La Prairie covered DDF in a web of coordinated promotions to launch its new skincare product
COMPANY NEWS: L’ORÉAL CONSUMER PRODUCTS
JEWELRY/ACCESSORY NEWS
A focus on materials, process, and quality details marks these accessories, new for 2012
The new distributor signs alcohol deal with Italy’s Cavalli, and there’s more to come
COMPANY NEWS: LA PRAIRIE
Cashing in on the Middle Eastern sweet tooth Goldbar product is ‘in harmony’ with Middle Eastern culture, says Goldkenn
The allure of luxury fragrances continues to be a market maker, from the Middle East to Italy… and beyond
COMPANY NEWS: INTERNATIONAL TRAVEL RETAIL
COMPANY NEWS: GOLDKENN
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COMPANY NEWS: HABANOS
The height of perfection Habanos has a number of new releases out this year that are sure to please even the most demanding cigar aficionados in the Middle East
NEW & NOTABLE Davidoff Puro d'Oro Momentos ■ Bottega Gold ■ Toffifee ■ Neuhaus Dessert Collection
In
Brief
Abu Dhabi Airport’s newly refurbished Terminal 1
ADAC announces completion of Terminal 1 refurbishment at Abu Dhabi Airport
Abu Dhabi Airports Company (ADAC) has announced the completion of the refurbishment and upgrading works of Terminal 1 at Abu Dhabi International Airport, which will expand its passenger handling capacity and ensure the delivery of quality service and experience across the airport. The refurbishment project included the increase of the number of check-in and immigration counters, and the expansion and development of the retail and F&B space. The project was carried over 12 months as part of the program to expand the airport capacity and meet the anticipated traffic growth while completing the longer term expansion plans of the capital’s airport through building new terminals and facilities. The completed project was also designed to deliver a high quality facility and upgraded services in Terminal 1 in line with the Terminal 3 offerings. Ahmed Al Haddabi, COO of ADAC, said: “At Abu Dhabi Airports Company we are constantly striving to elevate the travel experience and ensure clients, whether passengers or airlines, enjoy a unique journey. Driven from this ambition, T1 underwent a thorough and carefully designed upgrade plan to bring it in line with Terminal 3 and ensure that customers using any part of Abu Dhabi International Air-
port will have a refreshing and efficient start or end to their journey.” The renovation plan is part of ADAC’s ongoing plans for the development and expansion of Abu Dhabi International Airport. The Terminal 1 renovation included major design and decorative works increasing the capacity to 34 immigration and passport control counters in departures and arrivals and 54 check-in counters, which is a 40% increase in capacity. The number of E-gates available and the seating capacity have also been increased to keep up with the continuous growth in passenger traffic. The refurbishment works also resulted in the delivery of immigration counters and E-gates that cater to the passengers with special needs, easing their travel experience at Abu Dhabi International Airport. Additionally, passengers will now enjoy an enhanced shopping and dining experience through the newly developed layout of the retail and food & beverage space with an enhanced offering of 27 outlets. The airport hotel and hospitality lounges have also undergone a thorough makeover to deliver a unique product in luxury and convenience now available to all passengers at Abu Dhabi International Airport upon request.
RAK Airways introduces flights to Sudan UAE carrier RAK Airways has marked the expansion of its route network to 10 destinations with the introduction of flights to Khartoum, Sudan. Effective December 15, 2011 RAK Airways will offer three flights a week to Sudan’s capital city. RAK Airways re-launched operations a year ago with two routes to Jeddah, KSA and Calicut, India. Over the last twelve months the airline has focused on extending its route net-
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work across the GCC, Indian sub-continent and North Africa. RAK Airways’ said its entry into Sudan marks a milestone for the airline, which now operates to 10 destinations. In the weeks following the airline’s first anniversary, RAK Airways announced the introduction of flights to Peshawar and Lahore in Pakistan, Kuwait and an increase in frequency to its Doha flights to seven times a week. “We had a clear mandate to fly to 10 des-
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
tinations within one year of re-launching our operations,” said RAK Airways CEO Omar Jahameh. “With the introduction of our flights to Khartoum, we have achieved our objective and laid the foundation for a successful and profitable future for the airline. “Khartoum presents compelling business opportunities and marks our commitment to furthering our presence in North Africa,” concluded Jahameh.
In Brief
Perfume Holding sets up a regional office in Dubai Perfume Holding, a leader in the semiselective segment of the perfume market, has opened up a regional office in Dubai, to increase its share of the Middle East market. It has appointed Emilie Boudal, a three-year veteran of Perfume Holding, as Regional Sales. The office, named Lys Bleu and opened in partnership with Al Fahim Avenue Group, is located in Deira. It will be the company’s key interface with distributors, retailers and travel retail operators. Perfume Holding’s Patrick Malek, Middle East/Africa Sales Director says, "this partnership will enable the group to promote both sell-in and sell-out sales, with a specific focus on a qualitative merchandising work at the point-of-sale." The company says it is setting up a new travel retail division that will be in charge of developing business in the Middle East, giving top priority to developing the Ferrari brand, both with airlines and airports.
Perfume Holding is a fairly new entity. It was created in 2010 by the merger between Morris Profumi and Selective Beauty, two important players in the fragrances and cosmetics industry, and has offices in Paris, Milan and Parma. Perfume Holding portfolio includes brands such as Atkinsons, Ferrari, Benetton, John Galliano, La Perla, Sergio Tacchini, Iceberg and Ducati. The company's two pillar brands are Ferrari and Benetton. The Italian market represents 40% of total sales, followed by the rest of Europe (20%), the Middle East (10%), North America (10%), Asia (7%) and BRIC or Brazil-Russia-IndiaChina (6%). In 2010 alone, Perfume Holding generated revenues of approximately €135 million (US$18.7 million). The Marketing & Creation division is headquartered in France, while the Sales, Finance and Back Office divisions are based in Italy, with a production plant in Parma.
Consortium finalizes Madinah Airport privatization deal As first reported by AMEInfo.com, Saudi Arabia's General Authority of Civil Aviation (GACA) has signed a build-operate-transfer contract with a consortium led by Turkish group TAV Airports for Madinah Airport. This represents the first airport privatization deal in the kingdom. In addition to TAV, the consortium comprises partners Al Rahji and Saudi Oger. The airport's civil work is set to commence in the first half of 2012 and will be completed in three years. The consortium will operate the airport until 2037. The capacity of Madinah Airport will be raised to 8 million passengers per year by increasing the capacity of the existing airport through a new terminal building in addition to other improvements.
Maui Jim gains momentum in Middle East Maui Jim, the specialized eyewear maker that started on the beaches in Hawaii and ended in a large corporation with a cult following, has moved its European Travel Retail Sales Manager, Martine Larroque to Dubai to head up its Middle East division. And shortly, the company will also open a satellite office in Saudi Arabia, says Giles Marks, Director of Global Travel Retail for Maui Jim. "The advantage for us is that Martine is living in Dubai and we'll be able to react quicker to the demands and needs of business in the travel retail sector of the Middle East," Marks says. "It's the old adage of domestic sales driving travel retail sales and in return travel retail sales helping to drive domestic sales… We recently appointed a dedicated merchandiser at Dubai Duty Free, which was long overdue. That's a direct result of Martine living in Dubai, we were able to address that need." Asked about the company's bestsellers in the region, Marks said that while bestsellers are pretty much the same around the world, "for the Middle East I would say the only specific trend is our Neutral Grey lenses are popular, maybe because of the amount of sun. People like darker lenses." He pointed out that Maui Jim is always up against the strength and high profile of fashion brands, but continues to steer the course and do what it does best – high per-
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formance lenses, stylish frames and great customer service - holding steady as it has done for the past 30 years. “So we committed a tremendous amount of resources to customer service, training, the product and our retailers,” he says. The company says that it has probably seen a 50% increase in sales over the last two years and knows how important and beneficial it is to have a dedicated sales person, especially for brands like Maui Jim, which has a story that needs to be told to help demonstrate the lens technology. Maui Jim's technology goes back to 1980 when it saw a need to combat intense glare from the sun and harmful UV while bringing the brilliant colors of the island of Hawaii to life. The fledgling company then engineered the revolutionary PolarizedPlus lens, incorporating it into seven new sunglass styles. In 2006, its new 24,000-square-foot stateof-the-art direct surfacing lab was built to ensure precision prescription optics. A year later, Maui Jim introduced MauiReaders. MauiPassport followed in 2008, offering prescription wearers wide views and outstanding acuity. That same year, its MauiHT lens was introducing with a promise to bring clarity to low-light conditions.The company continues to evolve, most recently introducing MauiGradient single gradient lenses and MauiFlex flexible frames.
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
Giles Marks, Director of Global Travel Retail for Maui Jim
In Brief
Wandering Monkey delivers
entertainment and education
Wandering Monkey’s new stand unveiled at the TFWA show in Cannes, marked the beginning of a new adventure for Wandering Monkey followers. Wandering Monkey’s Jonathan Corbett says: “We are dedicated to providing products that are entertaining, educational, interactive and extremely portable for boys and girls that are three years and up, with a focus on the travel retail market. This year in Cannes 80% of the appointments on the stand were with companies new to Wandering Monkey. We are really starting to increase our visibility in the duty free and travel retail market and are going to continue to do this in all locations.” Working in partnership with customers was a key strategy of the company for 2011 and one that it intends to continue. The success experienced with its joint promotion with Condor Ferries in the ferry’s summer brochure is a testament to retailer and supplier partnership, says Corbett. Wandering Monkey supported games and puzzles for kids onboard as well as a hugely successful coloring competition. Wandering Monkey also won the Airline Retail award at the ARC conference earlier this year for the most promising supplier to In-flight Retail. For more information contact Jonathan Corbett, tel: +44845 0946296 or email: sales@wanderingmonkey.com
Marketing a fascination with fountain pens that write like ball points
David Dayan, International Director, Les Accessoires Travel Retail
The marketers and sellers at Les Accessoires Travel Retail (LATR), Europe’s premier casual-luxury goods distributor, is finding that shoppers continue to have a fascination with fountain pens but what sometimes holds them back is its disadvantages. However, this may soon be history with Parker’s new product, the Ingenuity Collection. “Everybody would like to have a fountain pen but without disadvantages,” says LATR’s International Director, David Dayan. “That’s the reason why Parker launched a new way of writing with the Ingenuity Collection which looks like a fountain pen but with all advantages of a roller ball.” There is a logic behind this: ball pens continue to be the best selling items for LATR “thanks to the price and also its easy writing.” LATR’s other top seller is the Guess Collection, especially its timeless jewel – the bracelet charms. After Guess openings at several airports around the world including Moscow, Sharjah and Montevideo, to help maintain the momentum, LATR showcased Guess Fall 2011 and Spring 2012 jewelry collections in Cannes. Dayan reports that Parker setups are rolling along nicely with six to eight new openings a month and an overall increase of 38%. More than 50 new points of sales have opened in eight months in the Americas, in locations such as Seattle, New York, Washington, Montevideo and Miami. For 2012, this seven-year-old luxury goods distributor is also working with the two companies to offer special collections for in-flight sales and for the cruise line market. Its current hold brands are Lacoste Accessories, Timberland Travel Gear, Puma Sunglasses, Elle Sunglasses and Esprit Sunglasses. Earlier this year, LATR began marketing the well-known European swimwear for men, Vilebrequin. However, it is focusing this product in Europe where it has noticed that the luxury swimwear maker is the preferred brand. Parker’s Ingenuity: A fountain pen with the ease of a roller ball
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GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
In Brief
Creating royal jewelry for everyone Welsh jeweler Clogau Gold, whose handcrafted jewelry sells through 500 outlets worldwide, including via duty free outlets on airlines and in airports, and which is associated very closely with Britain’s royal family, will offer special royal jewelry replica offerings in 2012, the 60th anniversary of the reign of Britain’s monarch, Queen Elizabeth. Clogau is famous for its rare Welsh gold that it has supplied to Britain’s royalty for a hundred years to make royal wedding regalia. Next year, for the anniversary it has teamed up with the Historic Royal Palaces Enterprises to present a portfolio of royal themed jewelry, including the Kensington, Royal Charms and Diamond Jubilee Collections. While the real royal jewelry sees the full use of the rare Welsh gold which has a rose tint to it, Clogau takes a small quantity from a limited supply of the gold and adds it to the products it sells through its worldwide suppliers, giving its jewelry a special air of distinction. It is this use of the royal gold and its association with the royal family that allows the company to command premium prices and offer exclusive and distinctive products, making it an internationally recognized brand. The Clogau mine was originally a copper mine until its owner one day cracked open a rock in 1854 and found it contained gold. Shortly thereafter, the royal family began using Welsh gold in the special jewelry that was made for it. In 1923, the ring made to celebrate the nuptials between Lady Elizabeth Bowes-Lyon and Prince Albert of York, future King George VI, was fashioned from a nugget of pure Welsh Gold from the Clogau St Davids mine in Snowdonia.
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GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
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Top Story: Dufry Morocco and West Africa
The highest standards Dufry Morocco and West Africa ups the ante with new store openings, renovations and customer service initiatives across its 19 store locations RYAN WHITE BY
ufry Morocco and West Africa, business unit 5 of Dufry’s region 2, operates 19 stores within Morocco, the Ivory Coast and Ghana. Gulf-Africa Duty Free recently had the opportunity to speak with Thomas Galet, Deputy Chief Operating Officer of Dufry Morocco and West Africa, about business so far this year and what the operator has planned for the coming months. We discovered that despite political issues in the Ivory Coast, Dufry Morocco and West Africa is flourishing, with a new store in Rabat and numerous Hudson News openings planned for Moroccan airports in the near future. The company is also renovating in the Ivory Coast to ensure that when travelers return in full force the stores are ready. Galet discusses passenger profiles at Dufry Morocco and West Africa’s stores, purchasing trends, training programmes and promotions, effectively providing a glimpse into a region that is clearly as dynamic as any other the world over in terms of duty free and travel retail.
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Gulf-Africa Duty Free: Have there been any new store openings or renovations recently? Are any openings or renovations coming up in the near future? If so, could you explain? Thomas Galet, Deputy Chief Operating Officer, Dufry Morocco and West Africa: With the opening of the new terminal at 20
Rabat Airport, a new store opening is planned for the next few days [the end of October – Ed]. The store measures 173-square-meters, with an important choice of brands and articles. Hudson News will also be implemented in 8 airports throughout Morocco. This launch will start in a couple of months and will be finalized during the first semester of 2012. We will sell the traditional ranges that travelers are accustomed to finding at Hudson News, such as magazines, newspapers, candies, chocolate, souvenirs, tobacco per packet and so on. The shops will be between 30- and 100square-meters and will address a real need inside the airport, as there are currently no offers at all for magazines and newspapers in
the boarding area of the Moroccan airports. The Ivory Coast and Ghana also have major projects upcoming in 2012, which include refurbishments and the opening of new stores. GADF: How has business been in the third quarter? How does this compare to the same period last year? TG: Apart from Ivory Coast, where the political situation remains challenging, we have seen a positive development. GADF: In the airports where you operate, what nationalities are purchasing the most? How do you cater to these travelers specifically?
“For 2012, Dufry Morocco and West Africa has a lot of projects— new store openings, including the introduction of the Hudson News concept, the introduction of new brands and shop enlargements.” Thomas Galet, Deputy Chief Operating Officer, Dufry Morocco and West Africa
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
GADF: Can you tell me your top three categories in terms of popularity? TG: The top three categories in terms of sales are tobacco, followed by perfumes and then food.
vice, and not just an article to buy. They want to be advised and assisted when they purchase. As a result, we have put a real emphasis on customer service and implemented training sessions for the staff. In addition, more and more customers are looking for affordable products. Customers traveling on low-cost airlines are increasingly looking for affordable, readyto-eat food such as single chocolate bars, candies, chips and so on. We have introduced new products and brands to cater to this need. An example would be Bahlsen products, which are selling quite well.
GADF: Have you noticed any changes in purchasing habits/trends? Is there anything new that customers are looking for? Is there anything that has sold well in the past that may not be as popular now? TG: Nowadays, customers are looking for ser-
GADF: How are passenger numbers in the airports where you operate? Are sales staying ahead of passenger numbers? TG: We are operating in airports of varying sizes, from very big airports like Casablanca to very small airports like Dakhla. Most of
TG: In Morocco, our most important customer segments are from Western Europe. For the main nationalities, we try to implement specific communications and adapt our assortment to their needs. In the Ivory Coast and Ghana, our customers are mainly people from the two countries themselves or from the sub-region.
That little something extra Dufry plus 1 is an integral part of Dufry’s strategy for customer’s satisfaction and operational efficiency. The programme focuses on the added or “plus” activities that sales associates can provide to ensure that the Dufry customer experience is number one. With the backing of Dufry’s Global COO José Antonio Gea, the programme was launched locally in 2010 by Dufry’s Regional COO for Eurasia, Rene Riedi. The backbone of the programme is the development of Dufry managers at regional and business unit levels as trainers and sales & service champions. The programme was rolled out jointly with Dufry’s regional HR directors and local HR managers in partnership with Retail Operations. The pilot, which took place in Sharjah, originally saw 10 managerial staff become qualified trainers to roll out and deliver the Dufry plus 1 training programme to all sales associates at the airport. Since that time, Dufry plus 1 has been rolled out across numerous regions, resulting in enhanced customer service at innumerable store locations.
the Moroccan airports are showing an important growth in PAX numbers. The situation is the same for Ghana. Passenger traffic in the Ivory Coast hasn’t been great for obvious reasons. In all of our operations, our sales per PAX are growing faster than the PAX numbers themselves. This is due to the important work delivered on training our employees. This year Dufry delivered the Dufry plus 1 training program, which is focused on customer service. GADF: Have there been any major promotions recently? Can you explain the mechanics, the brands involved and the results achieved? TG: A worldwide Dufry promotion began recently in October called “Magical Prices.” This promotion generally lasts for four months and includes 10 discounted bestsellers from the following three categories: perfumes and cosmetics, spirits and food. There are specific gondolas dedicated to the promotion, with communications and promotional material implemented exclusively for this initiative. GADF: Are there any major promotions coming up for the holiday season? Can you explain? TG: For the holiday season there are a multitude of promotions coming up. They include promotions in perfume and cosmetics, spirits and chocolates. These categories are the most in demand during the holiday season. GADF: Have there been any major staff training initiatives recently? If so, what
www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING
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Top Story: Dufry Morocco and West Africa Hudson News will be implemented in 8 airports throughout Morocco (Pictured is the first Hudson News location outside of the US in Puerto Rico)
A match made in heaven The planned Hudson News openings in Morocco are the result of the 2008 Hudson Group merger with Dufry. The transaction included an exchange of shares of Hudson Group's common stock into Dufry equity. In simple terms, Dufry now directly owns 100% of Hudson Group. At the time of the merger, Hudson Group operated 540 dutypaid stores in 70 airports and transportation terminals throughout the United States and Canada. Of course, Dufry’s plan is to give Hudson News a new global presence. With two stores recently opened in Sharjah Airport, the Morocco openings are just the beginning of what will no doubt be a wider rollout worldwide. Commenting in 2008 on the merger of Dufry and Hudson Group, CEO of Dufry Julian Diaz said he was “delighted about this transaction. Hudson sets the standard in duty paid travel retailing. The combination of Hudson's retailing expertise and Dufry's know-how in international markets and global footprint are a perfect match to
create a duty paid news and convenience store concept on an international scale. “Hudson even generates higher returns in duty paid than the average duty free operation, thanks to its focus on travelers' needs,” continued Diaz. “For Dufry, this transaction is a great opportunity to build up a strong position in the duty paid convenience store segment, which complements Dufry's duty free business at a similar profitability.”
“The combination of Hudson's retailing expertise and Dufry's know-how in international markets and global footprint are a perfect match.”
did the sessions cover? TG: There have been a variety of training sessions recently. One of them was called “Advertising and Promotion Tool Training.” The purpose was to implement a new tool that will gather all the promotion and advertising terms and conditions. This new tool will be used by the entire logistic and commercial department. It will allow easy access to statistics and graphics related to all the promotions. On the operational side, an important
Julian Diaz, CEO, Dufry
effort is currently underway by the group to improve customer service. All our employees went through several trainings sessions this year focusing on sales assistance, welcoming the customers, product knowledge, merchandising and so forth. GADF: What do you feel is the biggest opportunity for Dufry Morocco and West Africa going into 2012? Conversely, what do you feel will be the biggest challenge? TG: For 2012, Dufry Morocco and West
Africa has a lot of projects—new store openings, including the introduction of the Hudson News concept, the introduction of new brands and shop enlargements. All of these projects will contribute to further the dynamic development of our business. At the same time, projects like this are always a challenge to implement. It is important that we live up to the high standards that Dufry has set, and I can tell you that the whole team at Dufry Morocco and West Africa is very confident of our success. c
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GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
Interview: Colm McLoughlin Colm McLoughlin with the first batch of the Dubai Duty Free employees in 1983
Colm McLoughlin being awarded the Duty Free Personality of the Year award from TFWA in 1986
In his own BY
RYAN WHITE
words
Gulf-Africa Duty Free talks to Colm McLoughlin, one of the industry’s true legends, about his start in duty free over four decades ago and the meteoric rise of Dubai Duty Free
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he duty free industry is replete with storied careers, but perhaps none is more interesting on so many levels than that of Dubai Duty Free’s Colm McLoughlin. Gulf-Africa Duty Free had the opportunity to sit down for an exclusive interview with Mr. McLoughlin to learn about his humble beginnings and trace the nearly three decades long trajectory of Dubai Duty Free, an operation that today has the distinction of being the world’s single largest airport retailer. Gulf-Africa Duty Free: How did you get started in retail? Colm McLoughlin, Executive Vice Chairman, Dubai Duty Free: When I left secondary school I was supposed to go to university to become a dentist, but I went to England from Ireland for the summer to earn some pocket money because that’s what all the boys used to do. I ended up staying there, much to the disappointment of my father. I did various jobs—I was even a bus conductor for a while. One day I was passing Woolworth’s and I went in and asked for the manager, a man by the name of Ginger Reed. I asked
The opening ceremony of the Dubai Duty Free expansion in 1989 with HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai; HH Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of Dubai Duty Free; Mohi-Din BinHendi; and Colm McLoughlin
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GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
“From the very beginning there was an attitude that quality and genuineness was the priority.” Colm McLoughlin, Executive Vice Chairman, Dubai Duty Free him how I could get a job like his. He said, “Start by sweeping the floor, just like I did.” I did an interview and started as a stock room boy at Woolworth’s on Oxford Street in London. I was with Woolworth’s for seven years and went on to become a store manager there. GADF: When did duty free enter into the picture? CM: While I was still at Woolworth’s I was on holiday in Ireland and I saw a job advertised in the duty free at Shannon. I didn’t understand anything about it but went and did an interview. I was offered a job and went back to Ireland. I started in the duty free business on June 1, 1969. GADF: What was your position in Shannon and how did that job lead to working at Dubai Duty Free? CM: Initially I was the assistant general manager. A couple of years after joining there my boss got a different job within the company and I became the
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Interview: Colm McLoughlin
a high-quality operation—full of integrity, hard-work and customer service. It goes without saying that it’s also high up our list to promote the airport and Dubai itself. When we started the business we had 100 staff. We still have 52 of that original group working for us 28 years later. Dubai Duty Free has a good reputation for minding our staff, and we consider the welfare of our people a very important aspect of our business, which ensures that they’re committed and that they’re as keen on the business as I am. We have 4,000 people working at Dubai Duty Free and many of them have been with us for ten or fifteen years.
The original Irish Trinity: Colm McLoughlin (center), George Horan (left) and John Sutcliffe (right) pictured in 2009
manager. I was there until 1983, when the two civil aviation departments—the one in Dubai and the one in Ireland—did a contract to set up a duty free operation in Dubai. I was one of a team of ten people that went to Dubai in October of 1983 for six months. During those six months I was asked if I would stay and head up the operation in Dubai. I agreed to stay for two years, and two of the people on the original team—John Sutcliffe and George Horan—stayed with me. It’s interesting that the two-year contract was never officially renewed by myself or the government of Dubai, but I’m still here 28 years later! GADF: What about duty free has remained the same for you over the years? What has changed? CM: Well, first of all it’s still good fun. Many of the people I knew when I started are still in the business. Duty free is still very enjoyable for me. In terms of things that have changed, I would say that the industry is a lot more “buzzy.” There’s a lot more marketing now. Of course, the business around the world has gotten considerably larger. Forty years ago a lot of airports didn’t have duty free operations and now you’d be hard pressed to find many that don’t. Along the lines of the industry getting bigger, if you take Dubai Duty Free for example, our total business for the year in 1984 was US$20 million. Our total business this year will be around US$1.46 billion dollars. Additionally, a lot of the rules and regulations have changed along the way. Customs allowances, prices, tax rules and the like are constantly changing. Of course, the range of merchandise in the duty free industry and the offer being made to customers has changed considerably. In the very early days it was alcohol, cigarettes and maybe perfumes. Now shoppers have a much greater selection, including electronics and destination merchandise. Years ago many countries didn’t have arrivals duty free, whereas arrivals in many airports now form an important part of travel retail. In Dubai Duty Free, for example, arrivals accounts for 8% of our sales. In our case, 8% is more than a US$100 million, so it’s significant. Duty free has really made a full circle. At one stage the duty free industry really lost the value aspect for shoppers. People saw that and it affected the business. It’s turned around now and offers some great savings to the people who travel. GADF: Given the changes in the industry over the years, I’m sure your priorities have changed somewhat. What are your priorities these days? CM: The top of Dubai Duty Free’s list is to continue to be seen as
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GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
GADF: Did you have any idea that Dubai Duty Free would grow to the size it is today when you started out? CM: We knew it would be very good. If we were asked to predict at that time that we would be the biggest in the world, we probably wouldn’t have said so. What we would have said is that we would be the best in the world. From the very beginning there was an attitude that quality and genuineness was the priority. When we started, the traffic through Dubai Airport was about 3.5 million people. The traffic last year was 47 million and this year it will be about 51 million. When we started there was no Emirates Airline, whereas last year Emirates carried 29 million of those 47 million passengers. If you had asked us when we started, we couldn’t have predicted the explosion in passenger numbers. Along with the rise in passengers, it’s important to note that our penetration rate is very high. In many airports, good duty free operations regularly achieve penetration of 18 to 20%. Our penetration is just touching 50%. This comes down to being in a great location in the airport, having excellent customer service, offering good value and doing a lot of promotion. GADF: You recently changed posts at Dubai Duty Free, moving from Managing Director to Executive Vice Chairman. On a dayto-day basis, what’s changed for you? CM: I’m a long time in the business and we need to get young people into the position. It’s the same team but positions have been moved around. For me, I think a bit more about where we’re going and what we’re doing in the larger sense. A lot of the day-to-day operations— the signing, the approvals and so on—will be passed on. GADF: What are you most proud of? CM: I’m very happy that Dubai Duty Free has become what it is and has the reputation that it does. I’m pleased that it’s been such a successful business. I’m also very happy that the President of Dubai Airports Company H.H. Sheikh Ahmed bin Saeed Al Maktoum has been so supportive. Naturally, I’m very happy that Dubai Duty Free has won 250 individual awards for excellence. I’m also very happy that 8 years ago we set up our own charitable foundation and regularly support charities around the world. Being the managing director for many years, I’ve also personally been given many awards. Of course, it really has much more to do with the team as a whole than it does myself. We’re a high-quality operation and the only way to sustain this type of business is to have a solid foundation of hardworking staff that has customer service as the top priority. Our people are and always will be the key to Dubai c Duty Free’s success.
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Operator News: Sharjah Duty Free
Earlier this year Dufry Sharjah’s landside departures convenience and luggage shop was converted into one Hudson News location, while the arrivals shop was converted into a second (Pictured is the first Hudson News location outside of the US in Puerto Rico)
Snowball effect
Renovations to the main store, the opening of two Hudson News locations and positive September passenger numbers bode well for Dufry Sharjah as the year winds down BY RYAN WHITE
ome small changes can make a big difference. Just ask Erik van der Veen, Deputy COO of Dufry Sharjah. The company recently got creative with the layout of its main store at Sharjah International Airport by moving the cash points in order to create additional space in the shop’s food section. The space that was freed up can also be used for promotional activities. “We ran a successful scratch and win promotion which triggered increasing penetration,” van der Veen told Gulf-Africa Duty Free. Along with the scratch and win initiative, the operator ran another promotion that invited customers to make a follow-up purchase for rewards. He says that the combination of the two “worked out very positively.”
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here that are considering a Hudson News in their facilities,” van der Veen explains. This latest development is the result of the 2008 Hudson Group merger with Dufry. The transaction included an exchange of shares of Hudson Group's common stock into Dufry equity. In simple terms, Dufry now directly owns 100% of Hudson. At the time of the merger, Hudson Group operated 540 duty-paid stores in 70 airports and transportation terminals throughout the United States and Canada. Of course, Dufry is set to give Hudson News a new global presence, and the opening of the two stores in Sharjah Airport is essentially an early taste of what will eventually be a wider rollout worldwide. The new Hudson News locations take up approximately 260-square-meters in
“In general, we have witnessed positive passenger figures in Sharjah Airport in 2011, which is also reflected in our performance to date.” Erik van der Veen, Deputy COO, Dufry Sharjah
Another change that Dufry Sharjah made this year, although not nearly as small as the one above, was the opening of two Hudson News locations. The operator’s landside departures convenience and luggage shop was converted into one of the Hudson News locations, while the arrivals shop was converted into the second. Notably, these shops mark the first Hudson News locations in the region and serve as “nice contact points in the Middle East for airports 28
Sharjah Airport and feature the same custom-developed concession programs and trend-setting store concepts for which Hudson Group is known. Hudson News’ mix of nationally recognized brands and quality local products, in combination with a distinctly customer-centric business philosophy, are sure to prove popular in Sharjah. No stranger to putting customers first, Dufry has a database that provides regional Dufry-owned stores with useful information
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
on consumer trends throughout its worldwide operations. The folks at Dufry Sharjah regularly consult this information system as a means of tailoring the product mix and pricing to the passengers that are shopping in their stores. “Continuous changes in the passenger profile, because of additional destinations or charter flights, are immediately reacted upon,” explains van der Veen. “For example, we cater to many Russian passengers. These travelers tend to spend more than passengers from, say, Nepal, who also shop at our stores. It’s very important to have detailed information about purchasing habits of a given group of consumers.” The future looks bright for both Dufry Sharjah and the airport itself. A new terminal is planned to handle increased passenger numbers and a second runway is already under construction. In the meantime, though, there’s plenty of positive news to contend with. September inbound passenger traffic was the highest of any month this year and total passenger traffic for the same month stood at 537,472 travelers. This represents a year-on-year increase of nearly 5% over total traffic statistics for the same month last year, when the airport serviced a total of 512,409 passengers. For van der Veen’s part, he’s pleased with what he’s seen at Sharjah, especially considering the fact that travel has declined considerably in some pockets of the Middle East due to unrest. “The impact of the social and political crises in North Africa and the Middle East on Dufry Sharjah is limited,” he explains. “There were some flight cancellations, but in general Sharjah Airport and our operations were not directly impacted. “In general, we have witnessed positive passenger figures in Sharjah Airport in 2011, which is also reflected in our performance c to date,” he concluded.
Operator News: Bahrain Duty Free
Standing strong Bahrain Duty Free sharpens its focus on customer service, finding no shortage of inspiration during what General Manager Garrett Coogan calls “a difficult year” BY RYAN WHITE
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eneral Manager of Bahrain Duty Free (BDF) Garrett Coogan doesn’t mince words when he says that 2011 “has been a difficult year for Bahrain Duty Free.” Despite social and political unrest in the Kingdom that is home to over 1 million people, it’s clear from speaking with Coogan for any length of time that BDF sees the current difficulties as a chance to make some positive changes on the shop floor. The company is currently taking stock by looking at what’s working and what isn’t in order to make improvements aimed at serving the customer better and increasing sales. In fact, seeing as the company has always placed great emphasis on continually evolving essentially every aspect of its operation to better cater to travelers, it’s no stretch to say that despite external circumstances it’s “business as usual,” as Coogan says, for BDF. “Between the challenging environment and with key management changes BDF is busy reviewing its business processes with the goal of ensuring we are implementing the most effective and efficient work practices,” Coogan tells Gulf-Africa Duty Free. “While at the same time under the goal of becoming a truly ‘service excellence’ duty free company we have revisited the BDF strategy, purpose, vision and values which have been introduced under the banner ‘Forward Together’ to all of our teams.” Earlier this year BDF held a special staff gathering at the Regency Inter Continental Hotel, where Coogan revealed the company’s new vision, purpose and values. The event was segmented into two sessions and was attended by over 250 staff members. Key topics discussed included the operator’s vision 30
of being a truly customer-focused travel retail company, being a great place to work and being the premier travel retailer in the Middle East. Coogan also touched on BDF’s purpose: to win and keep customers by offering the best of Bahraini hospitality and a simply better shopping experience. “I am very fortunate that there is an experienced team in place that understands and appreciates Bahrain Duty Free revisiting our vision, purpose and values,” Coogan says. “I am very confident going forward together we will live our values throughout the organization to achieve our vision of becoming a customer-focused travel retail company.”
Bahrain Duty Free has a new vision, purpose and values, and central to all three is the customer
centered on these key categories and the latest initiative, called Autumn Specials, uses signage around the stores to communicate the savings often associated with shopping duty free over downtown stores. Recent popular promotions have included “Buy 2, Get 1 Free” offers, says Coogan. BDF will also release a brand new inflight catalogue in cooperation with Bahrain Air this month. Coogan tells us that a “whole new range of products” will be available for in-flight purchase aboard the carrier.
Upcoming opportunities Bahrain Airport Company is currently planning an extension of the current airport terminal. The project is scheduled to start mid-2012 with a planned completion date of early 2014. Needless to say, retail space will
“We have revisited the BDF strategy, purpose, vision and values which have been introduced under the banner ‘Forward Together’ to all of our teams.” Garrett Coogan, General Manager, Bahrain Duty Free
Making it happen One concrete way BDF is improving service is through its online interactions with travelers. As part of its three-year strategy, the company will be updating its website, incorporating smart phone-friendly applications and delving deeper into social media. While the above plans are still in the works, another more immediate way that BDF is interacting with consumers is through promotional activities. The operator’s bestselling categories continue to be duty free staples such as perfumes and cosmetics, liquor, tobacco and confectionery. Promotional campaigns have
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
be available in the new area of the airport and the opportunities for BDF in this regard are significant. “Bahrain Airport Company is a very supportive partner that understands fully the added value an excellent duty free experience can bring to Bahrain International Airport,” Coogan says. “Accordingly, we are in discussions with them about major changes to the duty free offer in the terminal. This is a major opportunity for Bahrain Duty Free to upgrade its offer to the customer and to achieve its vision of becoming the premier travel retailer in the Middle East.” c
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Operator News: Dubai Airports
Good, better, best
Dubai Airport’s passenger numbers rise year over year even as it continues to implement innovations unlike any others present in the Middle East BY RYAN WHITE
“Customer service is always a top priority for us.” Paul Griffiths, CEO, Dubai Airports Larry Swann, creator of SnoozeCube (left), and Steve Jones, New Zealand Trade Commissioner for Middle East, Africa and Pakistan
ubai Airports recently released Dubai International’s monthly traffic report for September, which shows a year-on-year growth of 6.2% in passenger numbers. Traffic in September reached 4,236,587 travelers, up 6.2% compared to the 3,988,804 recorded during the same month in 2010. Year-to-date traffic reached 37,547,744, an increase of 7.8% over the corresponding period in 2010. The AGCC recorded the largest increase in total passenger numbers in September (+169,445), followed by Western Europe (+36,916), the Indian subcontinent (+29,261) and Russia and the CIS (+23,431). The contraction in traffic on Middle Eastern routes continued in September (-53,368 passengers), while traffic on African routes was down slightly (-2,048 passengers). The strongest markets in terms of percentage passenger growth were Russia (+33.9%) driven by flydubai expansion in the region, the GCC (+31.9%) as a result of growth in traffic to Saudi Arabia, Eastern Europe (+18.7%) and North America (+17.6%) as both demand and capacity increased on routes to Los Angeles, Houston and New York. “We have had a good year so far in terms of passenger traffic and with the Islamic pilgrimage of Hajj just a few days away, we expect to see already robust passenger numbers surge
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over the coming weeks,” said Dubai Airports CEO Paul Griffiths in a news release at press time. “Customer service is always a top priority for us and we are well prepared to ensure smooth passenger flow across our terminals during Hajj. Like every year, Dubai Airports along with other stakeholders will implement a number of special measures such as deploying additional personnel and dedicated passport control counters to facilitate the movement of thousands of pilgrims who pass through Dubai International.”
Creature comforts As if passengers needed another reason to fly through Dubai International Airport, Dubai Airports recently announced that it has become the first airport in the region to introduce state-of-the-art modular sleeping pods that offer travelers comfort, privacy, entertainment and connectivity. Called the SnoozeCube, each of the accommodation units contains a full-sized bed, a touch-screen television offering a selection of entertainment and music, as well as high speed internet access. The units are connected to the airport’s flight information system to ensure that amidst the rest and relaxation, passengers do not miss their flights. As many as ten of the sound-proofed units have been installed adjacent to Gate 122 at Dubai International’s Terminal 1 and are already proving to be a
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
major attraction. During the pilot phase, the SnoozeCube has been an instant hit with passengers at Dubai International, particularly among transfer/transit passengers with shorter layover times. It can be used on an hourly basis with rates starting from AED 65 (approx. US$ 17.80) per hour for the first four hours.
Lucky number 3 Dubai Airports is also in the midst of a project to build the world’s largest airside facility dedicated to the Airbus A380. The airport authority recently reached out to worldclass food and beverage operators and service providers to submit expressions of interest for providing services at the upcoming Concourse 3. A part of the Terminal 3 complex dedicated for use by Emirates Airline, Concourse 3 will increase Dubai International’s total passenger capacity from the current 60 million per annum to 75 million passengers. It represents an important part of the airport’s infrastructure expansion plan that is driven by rising passenger numbers, which are expected to reach 51 million in 2011. Dubai International is expected to achieve a cumulative annual growth rate of 7.2%, outstripping the industry average forecast of around 5%, and in the process taking the top spot as the busiest hub for international passengers by 2015. c
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Operator News: Middle East Airlines
About 80% of Middle East Airlines’ passengers are Lebanese
Raising the bar
Middle East Airlines has done particularly well for itself this year in terms of onboard duty free sales due to its concentration on offering more choice and only the best products BY RYAN WHITE
n the first half of 2011 Middle East Airlines saw an 11.3% increase in onboard duty free sales as compared to the previous year. Furthermore, the carrier reports that about 15% of its revenue is derived from duty free sales—considerably higher than most other carriers. Gulf-Africa Duty Free spoke with Mounir Seifeddine, Head of Cabin Purchases at Middle East Airlines, to learn what he and his team are doing right to keep sales on the upswing. He told us in no uncertain terms that staff training, a stable of high-end items and a keen knowledge of passenger preferences is what is keeping Middle East Airlines ahead of the competition. “We always try to discuss our onboard duty free sales in light of overall passenger numbers,” says Seifeddine. “This is the only way we can really gauge if we’re staying ahead of the game.” Indeed, onboard sales in the first half were marginally ahead of the carrier’s 10% increase in passengers. Average spend for the first half of this year, which stands at about US$12, is also just slightly above the figure for the first half of 2010. Certainly, given the social and political unrest in some parts of the region this year, Middle East Airlines’ achievements are undoubtedly commendable. When asked about how he manages to keep sales up, Seifeddine cites staff training and incentive programs as indispensable tools: “Across categories we offer some very attractive incentives to our in-flight sales staff,” he explains. “We make sure that if someone is selling well, the commission they see makes a difference to them. If you sell well for an entire month and you only have a couple of dollars extra on your paycheque at the end of the month, there’s not much point in putting work into selling onboard.” The second piece of puzzle as Seifeddine sees it is having the right product mix onboard
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the planes. Middle East Airlines has a reputation for offering the best high-end merchandise and the catalogues are constantly being updated with the latest hot items. Bestsellers include LVMH fragrances, Jimmy Choo scents and Swarovski Aura. Seifeddine told us that in the space of ten days it’s not uncommon for his team to move two or three hundred units of the above products alone. Middle East Airlines has also become known as a benchmark for selling super-premium whiskies in flight. While Johnnie Walker Black Label accounts for a whopping 80% or so of total liquor sales, passengers can also find luxury spirits such as Johnnie Walker Blue and Gold Label, Royal Salute and Dewar’s Signature. In fact, he cites the growth in popularity of super-premium spirits as one of the most exciting trends Johnnie Walker Black Label accounts for about he’s witnessed this year. 80% of total liquor sales onboard Middle East Airlines, but the carrier is noticing a promising Seifeddine notes that passengers trend toward super-premium spirits didn’t just begin to spend more spontaneously. Rather, it was a question of “It is very important to know how Middle East Airlines first identifying an to sell to a particular passenger proopportunity and then taking steps to capi- file, and this is where training and talize on it. “As a Lebanese company we are experience comes in,” Seifeddine convery familiar with our main clientele,” he cludes. “When it comes to purchasnotes. “Lebanese travelers make up about ing high-end items especially, pas80% of our customers, with 15% coming sengers want to be treated well and from the Gulf and the other 5% from Europe.” deal with a salesperson that has a Middle East Airlines knew that Lebanese depth and breadth of knowledge not travelers loved to purchase luxury items, only about the product, but about the and from that point it was a matter of tai- entire category of interest. loring the in-flight offering accordingly and “Luxury items and unrivaled sertraining the salespeople in order to give vice—without both the equation c them strong product knowledge across cat- doesn’t work.” egories. Like any well laid plain, the rest just Swarovski Aura has been a bestseller this fell into place. year onboard Middle East Airlines flights
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
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Operator News: Aldeasa Kuwait
Building relationships With a new store opening planned and business doing well, Aldeasa Kuwait says it owes it all to the strong bonds it has developed with suppliers and shoppers alike
ldeasa Kuwait has a number of operations in Kuwait International Airport: two Bye Bye shops near the gates that contain bestselling products from various categories; one gold store; one location that sells dried fruits; one perfumery/boutique shop; and one general store. While the retail spaces themselves and the products contained within each vary greatly, one thing that remains the same across all of the company’s operations in the airport is the importance that Aldeasa places on developing innovative promotions in conjunction with suppliers. In a recent interview with Gulf-Africa
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Duty Free, CEO of Aldeasa Kuwait Hassan Shishani spoke about what travelers in Kuwait International Airport can expect in terms of promotional activity. He also confirmed that the company is planning on opening a new store during the second half of the year. The location will measure 140square-meters and offer products from traditional duty free categories such as P&C, tobacco and confectionery. “Kuwait International Airport is currently building an extension that will see four gates added,” Shishani says. “The store will be opened in the coming months, but an exact date hasn’t yet been specified.” Shishani tells us that the socio-political
“Kuwait International Airport is currently building an extension that will see four gates added. The store will be opened in the coming months, but an exact date hasn’t yet been specified.” Hassan Shishani, CEO, Aldeasa Kuwait
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RYAN WHITE
situation has been “difficult” this year. As a result, the company continues to concentrate on keeping promotions and product mix in the existing stores predominantly geared toward high spenders such as Indians and Egyptians traveling to Kuwait for both business and pleasure. Aldeasa Kuwait recently ran a scratch and win promotion sponsored by Hugo Boss. Across locations in Kuwait Airport, travelers who spend a minimum of KD 35 (US$126) in P&C or KD 20 (US$72) in confectionery, toys, watches, leather goods, sunglasses, tobacco and/or costume jewelry will receive a scratch card. Grand prizes included two 24karat gold tolas (a unit of measurement equal to 11.6 g), one for each existing store. Just as important to Aldeasa Kuwait as running noteworthy promotions are the partnerships it fosters with suppliers. In fact, Shishani asserts that the company’s relationships with its supplier partners are often the catalyst for new special offers. “Thanks to our close relationship with suppliers, we can offer our customers promotions on star products on a regular basis,” he says. “Needless to say, it’s essential to work together with suppliers in order to offer the c best products at competitive prices.”
From humble beginnings Aldeasa has its roots in 1974, when the company first came to ations in order to develop synergies through efficiency initiatives be. In 1976 Aldeasa opened shops in Spain’s major airports and across the Group. As a result of this process, Aldeasa has prosince that time has continued to grow. Today, Aldeasa is one of gressively taken over the Alpha Retail International activities. Aldeasa has focused on international expansion since 1994, the leading airport retail operators in the world and is part of the Autogrill Group. It has a wide retail portfolio in both Spanish and and the company is active in 20 countries, operating nearly 250 shops. The integration process of Alpha Retail International, a busiinternational airports, as well as historic and cultural sites. With the acquisition of Aldeasa, World Duty Free and Alpha ness unit with operations in five countries, effectively consolidates Group, Autogrill started an integration process of its retail oper- the Group as the leading airport retail operator on both continents. 36
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
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Operator News: Hamila Duty Free
Fighting the good fight Hamila Duty Free continues to register a series small of victories in the face of declining tourist numbers in Tunisia BY RYAN WHITE amila Duty Free Marketing Director Karim Mahjoub calls July “the most important of the year.” Indeed, sales during the month generally represent a significant portion of the company’s total yearly turnover. Unfortunately, in addition to the political and social issues in Tunisia and neighboring Libya, Hamila was hit with another challenge—strikes at Tunise Catering. “Tunise Catering handles our onboard trolleys,” Mahjoub explains. “Their employees were on strike for approximately four months. Furthermore, decreases in monthly passenger numbers to July 2011 sometimes dipped as low as -50%.” Despite these challenges, Hamila Duty Free’s diversified offering—the company sells duty free onboard Tunisair and Nouvelair, on ferries and in numerous landbased stores—helped the operator reach its goals for the month. Spend per head increased 3% on the ferries, 11% on Tunisair and 13% in the company’s port shops. Hamila did its part to try to help sales along this past summer with a promotional action plan that was customized based on the type of traveler—airline or maritime. Hamila invested in targeted and aggressive communication to make sure that passengers knew what was on offer. The plan included distribution of flyers at ports, catalogues on each chair in the ferries and ample magazines in aircraft cabins. The operator went one step further this year by publishing online catalogues on both
H
Tunisair and Nouvelair websites. “We actually prepared ahead of time to try to offset any major problems that could affect our duty free business,” Mahjoub explains. “Fortunately this helped quite a bit with sales.” Hamila concentrated on scaled promotions this summer, with travelers saving more when they bought more. Cigarettes, spirits, and perfumes were key focus categories. Brands from Pernod Ricard, Diageo, Philip Morris, Heineken, Pacific Creation and P&G were just some of the many items
on offer. For Ramadan, Hamila took much the same approach to its promotional activities, although the initiative obviously didn’t extend to the spirits category. Despite recent hardships, Hamila Duty Free remains positive in its outlook. “Since June we’ve seen an increase in the number of Libyan and Algerian visitors to Tunisia,” says Mahjoub. “This does, however, tend to benefit the local market more than duty free. Despite an overall dip in tourism, this is at least one positive sign that we can only hope will mean an eventual increase in other c travelers to the country.”
The state of affairs The depth and breadth of the challenges that companies like Hamila are currently facing was recently illustrated by Director General of the Tunisian National Tourism Board (ONTT) Habib Ammar. He reported a “lack of visibility” for the next period of the tourist season, blaming this vagueness on the lack of accurate tourism-related information. Ammar said last-minute bookings will be crucial to revive Tunisian tourism, particularly given the positive effect that the ousting of Moammar Gaddafi in Libya is expected to have on neighboring Tunisia. He said operations to promote Tunisia as a tourist destination will focus on new and promising sectors such as cultural tourism, thalassotherapy (the use of seawater as a form of therapy) and Saharan tourism. He also announced that talks are underway for the amicable termination of promotional contracts signed between the ONTT and foreign companies, saying that from this point on priority will be given to Tunisian companies, presumably to help mitigate job losses in the country. To August 20, 2011, tourist arrivals to Tunisia reached 2.771 million tourists compared with 4.539 million during the same period in 2010. This represents a staggering drop of 38.9%. As for total overnight stays, hotel occupancy fell by 46.3% to August 20, representing 1,210.3 million Tunisian dinars (US$885.6 million) compared with 2,155 million Tunisian dinars (US$1.57 billion) in 2010 Twenty-four hotels representing 7,544 beds have been closed since January 14, resulting in the loss of 3,019 jobs. The decline in tourism also resulted in the elimination of a significant number of seasonal jobs, particularly in tourist regions most hit by the crisis.
Fortunately for Hamila Duty Free, its diversified business helped offset dips in sales (pictured is one of the company’s stores at Enfidha Airport)
38
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
Crafted with care. Please enjoy responsibly.
Operator News: Dubai Airports and Dubai Duty Free
DXB Connect offers passengers exclusive discounts at Dubai Duty Free, as well as at renowned hotels, spas, F&B outlets and family entertainment venues across Dubai
A new direction
Dubai Duty Free, in cooperation with Dubai Airports and MasterCard, offers travelers a new way to pay BY RYAN WHITE ubai Airports, Dubai Duty Free and MasterCard Worldwide recently announced the launch of DXB Connect, the world’s first airport prepaid MasterCard card aimed primarily at airport clientele. Operated on the MasterCard network and issued by Abu Dhabi Commercial Bank (ADCB) in conjunction with Jade Payments and Global Processing Services, the DXB Connect card offers over 50 million passengers annually traveling through Dubai International a convenient and safe method to make airport purchases in local currency (AED). DXB Connect offers arriving, departing and transiting passengers exclusive discounts at Dubai Duty Free retail outlets, as well as at renowned hotels, spas, F&B outlets and family entertainment venues across Dubai. It also offers global reach as it is accepted everywhere the MasterCard acceptance mark is displayed. As part of the package, the card also comes with a ready to use Etisalat mobile SIM preloaded with an AED 25 credit allowing travelers the convenience of having a local phone number on arrival. DXB Connect cards can be purchased for a one-time fee of AED 95 (US$26) and immediately activated at dedicated card activation stands operated by Dubai Duty Free across all three terminals at Dubai International. Travelers are able to select the amount they wish to load onto the card when activating it. The card can be topped up at specified locations in the airport and very soon also through all Virgin Megastores, UAE Exchange outlets in UAE and online via the DXB Connect
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website. DXB Connect cardholders can access their card balance through IVR, SMS, www.dxbconnect.com and at card activation touch points at Dubai International. The Etisalat prepaid SIM and the DXB Connect prepaid cards are instantly activated at multiple card activation touch points across the airport. This is the first time in the world where a prepaid MasterCard and prepaid mobile SIM have been integrated into a single package for customer convenience. The DXB Connect card provides cardholders with the ability to better manage their finances as they are not able to spend beyond the pre-paid balance amount stored on the card. It is PIN enabled for ATM use and requires cardholders to provide a signature at point of sale terminals. Additionally, like a credit card, it can be cancelled, blocked and re-issued. “Our goal is to continually find innovative ways to create a uniquely positive and memorable service experience for our passengers,” said Paul Griffiths, CEO of Dubai Airports. “Much like the airport itself, the DXB Connect card ticks all the boxes by offering our customers global reach, greater convenience and tremendous value.” “We are very excited about the DXB Connect card and have enjoyed working with Dubai Airports and MasterCard on making it all come together,” said Colm McLoughlin, Executive Vice Chairman, Dubai Duty Free. “The DXB Connect card will offer travelers tremendous opportunities to avail of a pre-paid card that is easy to purchase at Dubai Duty Free and quickly activated. I think that it is going to be very popular with
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
"We are very excited about the DXB Connect card and have enjoyed working with Dubai Airports and MasterCard on making it all come together,” Colm McLoughlin, Executive Vice Chairman, Dubai Duty Free
a diverse mix of travelers.” “As the world’s first dedicated airport prepaid card, the DXB Connect ushers in a new era of convenience customized for travelers visiting the UAE,” said Ramzy Al Amary, Vice President – Abu Dhabi District Manager, MasterCard Worldwide. “DXB Connect cardholders will be powered with the ability to instantly buy, load, activate and use their prepaid cards at the airport and across our global network of 32.7 million acceptance locations. The DXB Connect card provides travelers the advantage of carrying a mode of payment which requires no bank account or annual fees and is more flexible than cash.” The global e-commerce industry is growing quickly, with sales turnover increasing from US$183 billion in 2004 to an estimated US$550 billion by the end of this year. Similarly, the global duty free industry is on the rise with sales turnover increasing some 56% from US$25 billion in 2004 to US$39 c billion in 2010.
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Operator News: dcav8 The world’s largest Trunki, a project dcav8 is currently working on, will offer a playground facility and retailing from the concourse
Ideas led by insight
Gulf-Africa Duty Free speaks with Managing Director of dcav8 Hugo Mills about how important it is to get operators thinking outside the box—and outside the store BY RYAN WHITE ulf-Africa Duty Free recently had the opportunity to speak with Managing Director of dcav8 Hugo Mills about new developments at the company. Most recently, Fred Freeman-Edmondson was brought onboard as Global Shopper Activation Director. Freeman-Edmondson will be driving the retail store activation element of dcav8’s business, having advised some of the largest and most influential global brand and retailers including Diageo, United Biscuits, Coke, M&S and Tesco in shopper led strategy and activation. “This is a real statement of intent about where dcav8 is looking to go,” says Mills of Freeman-Edmondson’s appointment. “We’re looking to bring something that no one else in travel retail really has, which is a very detailed understanding of shopper motivations and the way that retailers can successfully target those motivations.”
G
tive retail strategies can only be developed with a firm understanding of what motivates shoppers. Of course, this is where a detailed examination of the traveler’s entire journey comes into play. “For example, we recognize that the behavior of a business traveler will be significantly different from someone traveling with their family,” explains Mills. “The focus of our work is to show retailers and brands how they can capture these travelers with targeted retail activations at defined touch points throughout the journey.”
Putting theory into practice Over the course of the last two years, dcav8 has become Swiss-based Nestlé International Travel Retail’s dedicated shopper marketing and design agency. dcav8 recently worked with the confectionery giant on a project dubbed “The Perfect Store.” The initiative is ground-
“ The focus of our work is to show retailers and brands how they can capture travelers with targeted retail activations at defined touch points throughout the journey.” Hugo Mills, Managing Director, dcav8
Indeed, most operators concentrate almost solely on in-store activations and communications because it is such an important touchstone in the trajectory of a traveler’s journey. However, Mills tells us that there are innumerable untapped possibilities both before and after passengers arrive at a store. dcav8 is in the midst of conducting some truly groundbreaking traveler profiling and segmenting. The theory is that truly effec42
breaking not just in terms of its concept of creating a perfect store environment for confectionery, but also because Nestlé has taken a leadership position beyond confectionery. “The Perfect Store targets non-confectionery shoppers and confectionery shoppers alike in a much more holistic way with solutions that are built entirely on shopper intelligence conducted from studies over the last twelve months,” Mills explains. “By
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
extension, this is something that will certainly help all retailers in terms of drawing consumers to a specific category.” dcav8 is also currently in talks with various airports throughout the Middle East about developing a series of activations. One idea currently on the table is called the “Rehydration Center.” The project will involve perfumes and cosmetics brands and will engage transit passengers moving between the east and west. The Rehydration Center will provide a suite of services aimed at building airport loyalty. “We want passengers to think, ‘When I travel, I want to pass through this airport,’” says Mills. “The concept is about refreshment, relaxing and well-being. It is important to note that the Rehydration Center is not merely an idea, but rather it is a project based on actual insight – MENA has always been the platform for innovation and bold new initiatives such as this.” Another exciting new venture dcav8 is working on as appointed creative agency for Trunki is to launch the world’s first Trunki store. Mills believes there is an opportunity to create more engagement opportunities for children to have fun and parents to feel relaxed while traveling. “Trunki is a stunning product that is rapidly expanding globally, and they have approached dcav8 to help put it firmly in the global shop window,” Mills says. “dcav8 has developed a truly spectacular retail concept which we plan to unveil in the coming weeks.” To start the launch with Trunki, dcav8 is looking to partner with a retailer and airport authority to unveil the world’s largest Trunki, which also offers playground facility and retailing from the concourse. “It’s about working together to create a truly unique experience,” concludes Mills. “It’s also about numerous brands collaborating under one umbrella to entice travelers to become involved in something different which they may have otherwise passed by. We’re looking forward to implementing these and many other groundbreaking projects in 2012.” c
Industry News
Mixed signals
While passenger statistics in the Middle East were positive in August, industry organizations offer up unsettling news with regard to travel to and from North Africa assenger traffic across the MENA region was a mixed bag of sorts in August, with Africa performing poorly and the Middle East maintaining steady growth. While figures often vary slightly depending on the organization, Airports Council International (ACI), the International Air Transport Association (IATA) and the UAE’s General Civil Aviation Authority (GCAA) all pointed to moderate growth in the Middle East. A worrying statistic, however, is that both ACI and IATA have Africa in the red and note that worldwide increases in passenger numbers have weakened. According to the most recent data available at press time, ACI statistics indicate that 2.9% more passengers passed through airports worldwide in August 2011 compared to a year earlier. International traffic grew by 4.3%, whereas domestic passengers increased moderately at 1.7%. Unfortunately, the modest increases seen in many areas of the world didn’t extend to North Africa. ACI noted that Africa continues to represent “a significant drag on international passenger numbers” as confidence in North Africa as a safe tourist destination, especially in Tunisia and Egypt, has not been restored yet. According to ACI the region declined by 15% in August, while the more significant international passenger segment dropped by over 20%. In the Middle East, however, the situation was much different. ACI reported a 9.2% increase in total traffic across its Middle East airports as compared to the same month in 2010. ACI’s figure echoed the August 2011 statistics released by the UAE’s General Civil Aviation Authority (GCAA). During the month, GCAA airports recorded a 4.8% increase in traffic movements compared to August 2011. Movements totaled 56,100 at an average of 1,810 air traffic movements each day.
P
12%
TOTAL PASSENGER GROWTH BY REGION
10%
Source: IATA
BY
RYAN WHITE
Not surprisingly, Dubai came in first place with 24,934 traffic movements. Over flights stood next 12,959 movements. Abu Dhabi was in third place with 8,443 air traffic movements. Sharjah Airport ranked fourth with 5,124 movements. Local flights between UAE airports took the fifth spot with 3,516 movements. Al Maktoum International witnessed 406 movements, Fujairah International Airport witnessed 328 movements and Ras Al Khaimah International Airport had 223 air traffic movements. Al Ain Airport took up the rear with 167 air traffic movements. The International Air Transport Association indicated a good month for the Middle East as well, noting that while European airlines stood out in August as having achieved the strongest growth in international passenger traffic in August, the next fastest growth region, the Middle East, achieved 6.7% growth in international passenger numbers. "The industry has shifted gears downward. The pace of growth in passenger markets has dipped and the freight business is now shrinking at a faster pace. With business and consumer confidence continuing to slump globally there is not a lot of optimism for improved conditions any time soon," said IATA Director General c Tony Tyler in a statement.
ACI’S TOTAL MONTHLY PASSENGER STATISTICS FOR AUGUST 2011 Source: ACI
REGION AFR ASP EUR LAC MEA NAM ACI
MONTH 7 041 79 102 120 222 22 350 2 141 100 853 331 710
% YOY YTD AUGUST 2011 (15.2) 49 293 3.6 572 339 4.5 787 139 3.5 172 375 9.2 16 850 1.8 733 779 2.9 2 331 775
% YOY (14.9) 3.8 8.3 8.2 11.4 2.7 4.8
YE AUGUST 2011 80 578 854 958 1 152 403 253 113 24 817 1 083 394 3 449 264
11.5% 9.8%
JULY
AUGUST
8.5% 7.4%
8%
6.8%
7.0% 6.0%
6%
4.9 %
4.2%
4%
4.9 %
4.2%
2.9%
2.8%
2% 0
44
0.9 % AFRICA
ASIA/PACIFIC
EUROPE
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
LATIN AMERICA
MIDDLE EAST
NORTH AMERICA
INDUSTRY
% YOY (6.9) 5.4 7.4 8.2 12.9 3.4 5.4
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TFWA WE Review
T
he 27th annual week-long TFWA World Exhibition duty free and travel retail trade show closed on September 23 in the Palais des Festivals et des Congres, Cannes, France. A total of 5,868 trade delegates participated in the exhibition and conference event, up 9% from last year, from 2,737 companies. This compares with a final figure of 5,398 people from 2,570 companies last year. Of that total, 1,818 (+15%) were key duty free operators and retailers from 548 companies (+9%). The most significant areas of growth were in delegations from Asia at +15% and Europe at +11%, with +13% from Africa, +4% from the Americas and a drop of 6% from the Middle East and 12% fewer from Oceania.
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The TFWA World Exhibition attracted a total of 5,868 delegates from around the world
TFWA
World
Exhibition attendance up 9% A packed Palais was a perfect testament to the success of the TFWA World Exhibition this year
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
TFWA WE Review
The conference saw a line-up of charismatic and knowledgeable speakers to kick off the tradeshow
A positive mood prevailed throughout the show as visitors flocked in from all over the world to see the latest products exhibited by 457 exhibiting companies, of which 37 were new to the show or returning after an absence. The ‘A Brand New World’ themed tradeshow got off to a damp start with a range of leisure activities on Sunday September 18 which were affected by heavy rain. Golf, jogging, hiking, pétanque, and – new this year – beach volleyball, a perfume workshop and a wine tasting experience, gave over 225 delegates a relaxed and enjoyable start to the week. That evening at the rather windswept Opening Cocktail on the terrace of the Palm Beach, 1,380 attendees caught up with friends and acquaintances old and new. Fabulous fireworks lit the event courtesy of the City of Cannes. The Conference on Monday 19 was attended by 888 – a record attendance and a lucky number in China – attracted by the excellent speakers: Kofi Annan, former Secretary General of the UN, Michele Norsa, CEO Salvatore Ferragamo, Stephane Garelli, Professor at the International Institute for Management Development and Erik Juul-Mortensen, TFWA President.
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The Opening Cocktail was hosted by TFWA, held at the Palm Beach and concluded with elaborate fireworks
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2010
EST. 1757
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TFWA WE Review
With 457 exhibitors located in the Palais, the trade floor was buzzing with excitement
At least 160 delegates were given a stimulating and informative briefing on three diverse channels at the Airline, Cruise and Ferry Workshop on Tuesday 20, by Magnus Ehrenberg, Chief Executive of Ehrenberg Kommunikation, Trevor Moore, Buying & Merchandising Director of Harding Brothers, Raphael Bejar, CEO Airsavings and Pierre Freyssinet, CEO Uleo Holding. The Asia Pacific Workshop on Wednesday 21 focused on ‘Emerging Asia.’ Around 200 delegates were given a rousing briefing on these dynamic markets by Marion Buttler, Regional Director Europe of the Pacific Asia Travel Association. Sunil Tuli, President Asia Pacific Travel Retail Association, Peter Mohn, Partner m1nd-set and Mathieu Vanhalst, International Sales Manager, TFWA. The Scene private after-hours venue staged special celebrations on Wednesday to mark its 10th anniversary including a huge birthday cake. On Thursday 22 evening the White Cats performed live before a packed audience of show delegates. However the social highlight of the week was Le Premium Evening at the Palm Beach with a premium seated dinner for 900 guests and a thrilling private concert by famous singer-songwriter James Blunt in stunning surroundings. Next year TFWA World Exhibition will take place October 21-26 in Cannes. Before then members of the duty free and travel retail community will assemble at the MEDFA Conference on November 21-22 in Dubai and at TFWA Asia Pacific & GATE c ONE2ONE May 13-17 in Singapore.
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GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
Flying high with and
NEW!
invites you to discover the new KINDER FRIENDS and KINDER MIX assortments designed exclusively for travel retail. Bursting with Kinder goodness, the KINDER FRIENDS 250g pouch contains bite-size Kinder Bueno, Kinder Chocolate, Kinder Country and Schoko-Bons. The new KINDER MIX 420g offers a wonderful selection of Kinder Maxi, Kinder Schoko Bons and Kinder Bueno bars in a unique packaging that will delight all the Kinder fans!
Company News: Puig
Carolina Herrera’s 212 VIP Men “retail-tainment” activity organized by Puig, Abu Dhabi Airport
Brand masters Despite hiccups, sales are up overall for Puig’s huge range of well known brands, and the new rollouts keep coming
he fragrance category this year has been growing,” says Patrick Bouchard, Travel Retail General Manager for Puig. Bouchard says the category continues to play an important role within the larger perfumes and cosmetics offering, especially in certain markets such as Europe and Latin America. “It’s really a true growth contributor in the P&C category,” he says. The shop trend globally is at 13%, Bouchard says. The strength is driven primarily by markets in the Americas, where sales are up 20% overall and markets like Brazil are doing outstandingly well. “Europe has also shown a good growth at around 10%,” he says. The bad news is coming from the Middle East and North Africa, where political turmoil has hit markets such as Tunisia, Egypt and Syria. On the other hand places like Dubai have been doing very well. The end result? “Positive growth altogether,” Bouchard says. Puig owns fashion houses Carolina Herrera, Paco Rabanne and Nina Ricci, in addition to marketing licensed and proprietary brands. Prada, which is probably the best known of Puig’s brands, is operated through a joint venture that holds the license for Prada beauty products. Puig also has license agreements for brands like Adolfo Dominguez and Comme des Garçons, retail names including Mango, Zara and Massimo Dutti – and its reach even extends to celebrities like Antonio Banderas and Shakira. The biggest brand for Puig in terms of market share remains Carolina Herrera, which has a global market share of over three points, hinging on its strength in Latin America. In terms of growth, Paco Rabanne
“T
52
is the star, with market share close to 3% in global travel retail. “Keep in mind that according to Generation research ‘today’ is the best selling masculine line, which has never happened for us before,” Bouchard says. “It has really established itself as a top brand over the last three years.” Bouchard attributes that success to a broad marketing campaign, including instore activities that have drawn attention, increased shop penetration and generated market excitement around the brand.
Staying active Last year Puig undertook an important activity campaign around Lady Million and 1 Million together with Distilleria Bottega’s Prosecco. “That was one of the first crosscategory activities that we’ve done,” Bouchard says. “It created a lot of excitement.” Another successful cross-category activity was undertaken for Paco Rabbane last year over a span of 10 months. “We put together under one roof the fragrance, watches, the sunglasses and the famous Paco dresses. This was definitely one of the most successful promotions that we’ve had.” In fact World Duty Free, Autogrill’s UK travel retail arm, didn’t want it to end. So Puig teamed up with them on a temporary three-month “pop-up shop” for Paco Rabanne at London’s Heathrow Airport. “We’re very specific with our assortment, in the sense that we don’t want to list our brands in all the different doors unless it matches well with the shopper profile – and makes sense in the region,” Bouchard says. “As one example, Nina Ricci is a key brand in Russia, so we put more emphasis on that brand in that market, as opposed to another brand like Carolina Herrera.”
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
BY
HIBAH NOOR
Dubai gives a twist to this strategy, given the huge mix of nationalities that transit through. Here, Bouchard says, they see the Russian travelers opting for Nina Ricci, Europeans going for Paco Rabanne, Middle Easterners going for Paco Rabanne and Carolina Herrera, and British travelers going for Prada. This is a year of consolidation for Valentino, Bouchard says, and the brand’s recent rollout of Valentina will continue into 2012. Valentina was created by master perfumers Olivier Cresp and Alberto Morillas. The bouquet blends an Italian floral oriental featuring Calabrian bergamot and white Alba truffles, along with jasmine, Amalfi orange blossom and tuberose, offset by wild strawberries and a mix of cedar and c amber. Puig rolls out Valentino’s Valentina this year
“Last ggood buy before bbeforre you fly” 22 YE YEARS A S CELEBRATING AR CELEBRA ATING TING MILE M MILESTONES STONE NES
Company News: Beauté Prestige International
Elie Saab’s
Lebanese Designer Elie Saab
Le Parfum ready for take off Traveller confident Elie Saab’s fashion house fame will rub off on fragrance BY HIBAH NOOR f sales in ground duty free stores and major fashion centers of the world are any indication, Beirut-born haute couture designer Elie Saab’s very first perfume should be soaring sky high in more ways than one, as it makes its inflight debut among airlines in November. Elie Saab Le Parfum, as it is called, the fragrance is already in the top five sellers among female duty free shoppers in the Middle East, says its travel retail distributor Traveller Limited. The fragrance is part of the coterie of none other than Beauté Prestige International (BPI), which describes its mission as developing “through time, in the selective perfumery market, the spirit and the vision of highly talented creators.” The other perfumes it carries are Issey Miyake, Jean Paul Gaultier and Narciso Rodriguez.
I
eral Manager, does not find it surprising that the first perfume from Elie Saab will be a hit. “It’s the dream of every woman to be seen in an Elie Saab gown…. The feedback received on the fragrance has been very positive. There is a non-stop demand from the local market and landed doors.” There is an element of marketing logic behind his confidence. After all, Elie Saab was the first Lebanese designer to dress an Oscar winner, Halle Berry, in 2002. She received her best actress award dressed in a Saab burgundy gown, after which the Lebanese designer's
“It’s the dream of every woman to be seen in an Elie Saab gown… The feedback received on the fragrance has been very positive. There is a non-stop demand from the local market and landed doors.” Rami Madi, General Manager, Traveller
Florian d’Hauteville, Regional Sales Manager of BPI expects Elie Saab Le Parfum to soon become one of the main perfume houses in the industry. If anybody, he should know. D’Hauteville has been working for BPI in the Middle East and Africa for about a year, after spending many years in the European duty free business. Already, he says, “With the support of many operators we have been able to faithfully translate the DNA of the fashion house and present the fragrance in a very qualitative way.” A confident Rami Madi, Traveller’s Gen54
clothes became the rage in Hollywood. However, Madi is going the extra step to create what he calls “excellent exposure and exclusive positioning” in most key airline magazines. In order to maximize brand awareness, he says, the company has planned media investments to be in sync with the local markets and duty free promotions and advertising. In addition, Traveller has designed special cabin crew promotions along with passenger promotions, customized to support the brand and tailored for the different airlines. Traveller
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
reps found that the fragrance and the brand generated a flurry of excitement and interest among the cabin crew. The fragrance of course has received immediate success in the Mideast, given that Elie Saab is a native-born Middle Easterner whose life has fired the imagination of local youngsters. He launched his first designer label when he was only 18 – he had been sewing since he was a child, knowing very early on, as he told the media, that haute couture would be his life and his future. While his main workshop is in Lebanon, he has workshops in Milan and Paris, the two fashion capitals of the world. In the words of Madi, in addition to the exceptional quality that Elie Saab symbolizes, “due to the origin of the designer we are confident that the fragrance will be an exceptional success in all Middle East regions with no exception on the destination.” Of course, one cannot play down the fact that Traveller Limited itself is a highly successful inflight services company within the renowned Chalhoub Group, and a preferred distributor for several brands and airlines alike. Based in Jebel Ali, Dubai, Traveller proudly markets itself as the distributor that has taken “luxury to the skies.” It has been providing customized services and supplying inflight programs to airlines in the c Mideast for 23 years.
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Fragrance News
From pen to perfume
Fragrance
Italian writing products manufacturer Montegrappa first opened for business in Bassano del Grappa in 1912. In its first century the Italian brand has managed to establish a broad international presence and reputation. Now Montegrappa has introduced a fragrance line called NeroUno. “NeroUno brings you an inspiring and calming scent that creates a feeling of unlimited freedom, the kind of feeling that you only experience high up on the peaks of Monte Grappa Mountain,” reads the company’s description. NeroUno combines herbs and spices from Monte Grappa mountain with Mediterranean citrus aromas and wood oils, blended by Montegrappa’s master perfumers in Italy. The fragrance is available in 50ml and 100ml Eau de Toilette, and in a 100ml After Shave Spray, as well as through a complementary line of shower and shaving products. “Each item in the NeroUno collection represents the ethos of Montegrappa,” the company says, “the essence of Italy in an objet d’art.”
waves
The allure of luxury fragrances continues to be a market maker, from the Middle East to Italy… and beyond
The Oudh opportunity
Dubai-based oriental perfumer Ajmal Perfumes is set to benefit from a new awareness of Oudh based fragrances in western markets. Oudh (also known as agarwood) is a dark resinous heartwood that forms in aquilaria and gyrinops trees, which are large evergreens native to Southeast Asia. “With all the international brands trying to enter the Oudh based fragrance category, initially this would be a worry, because it’s something we specialize in and these companies come in with deep pockets," says Abdulla Ajmal, General Manager, Ajmal Perfumes. Instead, he says, he is optimistic because the arrival of multiple players within this category is going to boost the whole industry. “It’s created more awareness. If you look at Tom Ford and the Armani Privé, they have brought Oudh to a larger audience and that has helped brands like Ajmal who have years of experience with the product and sell not only Oudh based fragrances but also products for the home like Oudh in the form of incense to reach further.” Ajmal says. “Newer clientele who never would’ve tried some of our fragrances are more inclined to do it because of the exposure given by the big brands.” Ajmal says that new Ambre Fruite and Ambre Pimente unisex fragrances are also ready to hit the duty free shelves and that the company is making good inroads with airlines around the world. During the Middle Eastern crisis, he says, people didn’t travel to the countries that they normally would. “They came to the UAE instead of going elsewhere, which benefited us tremendously. People from Saudi Arabia, Qatar and Kuwait flocked to the UAE due to which the malls were packed. Normally July/August is the quietest time in terms of business. This year was different with mainly Arabs from the GCC that were coming in.”
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GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
Luxury lineage Beauty powerhouse Coty Prestige, offers the first fragrance collection of Bottega Veneta, one of the world’s premium designer brands, which will hit Bottega Veneta’s boutiques in the United Arab Emirates, Saudi Arabia, Qatar, Kuwait and Bahrain in November with a rollout scheduled in select specialty and department stores as of December 2011. The same strategy will be applicable in the Middle East's travel retail operations where location will play a key role in highlighting the exclusiveness of this very premium product. The fragrance will also be available in the region’s key airlines with some starting as early as November and others following at the beginning of 2012. Bottega Veneta Eau de Parfum juice, a creation of Robertet’s Michel Almairac, is described as a “leathery, floral chypre.” The company says that it “aims to evoke the olfactory language of the Venetian countryside – fresh meadows, mown hay, flowers, earth and wood – with the gentle richness of leather crafted by a master artisan.” Bottega Veneta will be available as an Eau de Parfum, a body cream, a body lotion and a shower gel.
Fragrance News
Coach’s Poppy goes floral This fall, Coach introduces the new Poppy Flower to its fragrance collection. Poppy Flower mixes fruits with soft florals to explore the romantic side of the Coach Poppy. Designed to inspire a mood of whimsical beauty, Poppy Flower is a chic, feminine blend, which takes fruits and florals to a unique place by layering them between fresh herbal notes and warm hints of musk and exotic woods. “Coach Poppy Flower has been created around the Poppy aesthetic, incorporating a fresh and lighthearted spirit with a kaleidoscope of sparkling fruity notes,” says Karyn Khoury, Estée Lauder Companies Senior Vice President of Corporate Fragrance Development Worldwide. “The Poppy girl is bright and bold—and instantly memorable. It follows then that her fragrance is equally unique and unforgettable.”
Estée Lauder and Tory Burch announce fragrance partnership
FREYWILLE HEADQUARTERS: Gumpendorfer Straße 81 | Tel.: +43-1-599 25 - 450 www.freywille.com | vienna, austria
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Aramis and Designer Fragrances, a division of The Estée Lauder Companies Inc. and Tory Burch announced the signing of a multi-year agreement for the exclusive worldwide license of the Tory Burch fragrance business. This partnership marks Tory Burch’s first venture into the beauty industry. Launched in 2004, Tory Burch is an American sportswear brand with an eclectic sensibility and an attainable price point. “Tory Burch is more than an innovative designer; she’s a lifestyle brand. Tory empowers women with her clothes, creativity and experimentation of modern designs,” says Veronique GabaiPinsky, Global Brand President, Aramis and Designer Fragrances. “She has an inspiring and affordable sensibility that we know will transcend into the fragrance industry.” “I’m thrilled to partner with The Estée Lauder Companies, an iconic company that has been a tremendous inspiration to me in business and philanthropy,” says CEO and Designer Tory Burch. “Fragrance is a natural extension of our brand — we will create unique fragrances that complement a woman’s innate beauty. Fragrance is a part of my daily routine, and it evokes strong memories of my mother and grandmother. I still remember their favorite scents." The first Tory Burch fragrance products are expected to be introduced in 2013.
2012
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Company News: International Travel Retail
International Travel Retail takes challenges head on
BY
HIBAH NOOR
The new distributor signs alcohol deal with Italy’s Cavalli, and there’s more to come he founder of one of the newest travel retail distributors, Mariem Mersni Ben Cheikh, says that despite the challenges she has faced while doing business in one of the toughest regions of the world, she is now confident that her company is ready to soar. Beirut-based International Travel Retail has in fact signed a contract to distribute the vodka and wine brand of Italy’s favorite designer, Roberto Cavalli, and is negotiating contracts with other brands. If that isn’t enough, she is also negotiating with a Lebanese superstar to create a brand perfume and with a large French fragrance company for exclusive distribution rights. Ben Cheikh is hoping to have some important announcements around these toward the end of 2011. “Other brands that contacted me are under discussions for a deal that I hope to conclude before the end of the year,” says Ben Cheikh. “My goal is to distribute to the airline and duty free shops of the region. I already have relations with operators because of the past nine years of the partnership I’ve had with them and my membership in MEDFA [Middle East Duty Free Association] for the past five years. I am talking about Dubai Duty Free, Emirates, Qatar Duty Free, Qatar Airways, Etihad, MEA, Saudi Airlines, Beirut Duty Free…” After all, she spent nine years with the well-known and large duty free operator, Hamila, as Managing Director, before moving on to Cowrie as CEO and shareholder, but realizing in a short time that it was time for her to strike out on her own, use the contacts that she had so carefully nurtured over the years and set up shop in the
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“My goal is to distribute to the airline and duty free shops of the region.” Mariem Mersni Ben Cheikh, CEO, International Duty Free country she knows best, Lebanon. And she did, setting up shop in downtown Beirut with six people: her PA, an accountant, a business developer and two sales reps, one for North Africa and one for the Gulf and of course, herself. The Mideast and Gulf region, she points out, is bigger than North Africa as a whole. In a letter to her contacts in the industry, with whom she formed a relationship over a decade, she reaffirmed how the move was the right thing for her to do and also because she was heading back to the destination of her heart, Lebanon. Part of the letter reads: “Duty free business is my knowledge, my passion and after 10 years of hard work I can say that I am really addicted to this field… I am very happy to continue my professional career with you all.” International Travel Retail Offshore SAL is based in the Makassed Building on Fosh Street in downtown Beirut. Ben Cheikh can be reached at 961 1 985820 or at mariem.bencheikh@travelretail.me. c
Skincare News Traveller signs PIA, Shiseido deals Traveller Limited, a renowned in-flight services company within the well-established 50-year-old Chalhoub Group, has two important announcements to make: it has begun providing its services to Pakistan International Airways (PIA) and has signed a distribution deal with Shiseido, the Japanese skincare and cosmetics company that is a fixture in the most exclusive skincare establishments. Although Traveller is geared to airlines in Middle East, it also deals with non-Middle Eastern but regional based airlines. Traveller Limited’s General Manager, Rami Madi, says that two years ago it began servicing airlines based in Iran, both Mahan Air and Iran Air, followed by PIA this year. Part of Traveller’s strategy is to analyze the passenger profile of airlines before offering it specific products anyway. “We are open to working with all the airlines in the Middle East and the Near East,” Madi says. “Doing business with PIA was just another step for us… we are confident our new associations will flourish.” The Shiseido deal is pegged to distributing the well-known skincare and cosmetics company’s products on airlines in the Mideast. Shiseido, which is publicly listed,
started in Japan in 1872, and today operates worldwide, with centers in several European cities as well. It was born in Tokyo’s Ginza district as Japan’s first Western-style pharmacy, at a time when herbal
Shiseido Bio-Performance Super Corrective Serum
Shiseido Benefiance Wrinkle Resist 24 Day Cream SPF 15
medicine was the norm, founded by the 23-year-old chief pharmacist of a navy hospital, Arinobu Kukuhara. He picked the name from the famous Chinese book of fortune telling Yi Ching. The addition of Shiseido to Traveller’s coterie of renowned products is another feather in its cap, as it continues to strengthen its reputation of being the preferred and
reliable choice for airlines in the Mideast region. It provides brands with support in terms of implementing a marketing calendar for the supplier and only offers products to airlines after identifying and analyzing passenger profiles. It also helps in designing and implementing onboard sales procedures and then monitors the performance of the product.
Estée Lauder introduces Clinique Repairwear Laser Focus All-Smooth Makeup SPF 15 Clinique introduces a new foundation that creates a flawless complexion, softening the appearance of lines and wrinkles immediately and over time, and working to prevent the visible signs of aging. The new Clinique Repairwear Laser Focus All-Smooth Makeup SPF 15 incorporates Clinique's advanced patented technology from its powerhouse de-aging serum, Repairwear Laser Focus Wrinkle & UV Damage Corrector. The result is an ultimate de-aging foundation that softens lines and covers imperfections. Repairwear Laser Focus All-Smooth Makeup SPF 15 is also formulated with ingredients that prevent and repair visible UV damage, one of the leading culprits of lines and wrinkles. This foundation addresses past UV damage, with Ultrasomes that grad-
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ually and visibly help repair damage resulting from direct UV exposure. A cocktail of ingredients works to minimize the appearance of damage. Whey Protein helps minimize the appearance of lines and wrinkles, while Siegesbeckia Orientalis Extract and Palimitoyl Oligopeptide help to plump up and fill in lines. Supporting ingredients to protect the skin include Vitamin E to provide antioxidant protection and SPF 15 to help protect skin from future UV damage. Taking a 360° approach to age prevention, Repairwear Laser Focus All-Smooth Makeup SPF 15 will improve the texture of the skin while working to prevent future damage. The foundation is available at Clinique travel retail locations in Europe, the Middle East and Africa.
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
Company News: La Prairie
Another mega promotion took place in Dubai Duty Free
Debut in Dubai La Prairie covered DDF in a web of coordinated promotions to launch its new skincare product
he Cellular Power Infusion launch held at Dubai Duty Free (DDF) in October demonstrated how effective a concentrated, co-ordinated mesh of multi-site promotional activities can be in propelling a new product onto the market and building awareness. According to Mohamad Al Khalil, La Prairie Regional Manager Middle East/India, the intense activities around the launch of its new skincare product attracted around 150 passengers each day, recruiting new customers and diverting traffic to the perfumes and cosmetics shop and to La Prairie’s counter in particular. La Prairie daily sales averages increased by 48%, and La Prairie ranked as the number two in DDF in skincare during the launch period. Meanwhile, sales in other categories benefited from the ‘spillover’ effect of the Cellular Power Infusion promotion. “Customers were attracted by the promotion and were excited by Cellular Power Infusion, the combination of high tech and luxury,” Al Khalil says. “They appreciated the service and the consultation that was provided, especially because the promotion had a private consultation area.” The Cellular Power Infusion launch included activities at DDF Terminal 1 and Terminal 3. For Terminal 1, a “Circle Promotion” ran in October, featuring a 24-square-metre circular stand in the middle of the concourse. At Terminal 3 a multilayered strategy brought a range of overlapping activities. In addition to large pillar advertisements and a wall promotion, a four-site tables promotion and a Mega Outpost were created. The Mega Outpost was operated 50 metres away from the DDF cosmetics shop, which provided a separate sell point. The outpost covered 21-square-metres and featured a private consultation area where customers could receive a Cellular Power Infusion application.
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HIBAH NOOR
Full product information, covering main technologies, usage, expected results and link sales with other ranges, was provided to customers, and all of the beauty advisors were trained in special sales skills at a regional conference. Always of interest at DDF is the mix of nationalities and their different responses to any given product or promotion: Al Khalil says that the Cellular Power Infusion launch proved to be of particular interest to Chinese, Russian, European and Arab travelers.
Skin science Dr. Sven Gohla, Vice President Research and Development for La Prairie, says that Cellular Power Infusion works in three ways. “The significance of Cellular Power Infusion lies in the development of a radical threepronged approach that simultaneously treats the key factors that contribute to skin aging: loss of energy, handicapped functionality of skin cells and a general weakening of skin tissue. It enabled us to produce a truly gamechanging skin treatment that dramatically slows down the aging process by striking at every aspect of the skin’s makeup.” La Prairie says that Cellular Power Infusion reverses energy loss within cells by activating cellular power stations and securing a continuous flow of energy to the cells, stimulates epidermal stem cells, allowing new cells to rise to the surface, triggers natural renewal of skin cells and protects against environmental stress. It also supports the rebuild-
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
For DDF’s Terminal 1, a “Circle Promotion” ran October 1-15
ing of the skin’s structure and the renewal of skin tissue, and helps reintegrate cells in aging skin to restore firmness and elasticity and reduce the appearance of lines and wrinkles. The key ingredients in Cellular Power Infusion include Swiss snow algae, which shields against environmental stress and energy loss, a skin renewal peptide that strengthens the skin’s own renewal mechanisms, and phyto stem cell extract, which helps to delay the aging of c epidermal stem cells. La Prairie’s Cellular Power Infusion
Fernando A lonso - F1 0 G P B ah rain
N a t u r a l
B o r n
W i n n e r
the new sport fragrance
Company News: L’Oréal Consumer Products
The
right mix
L’Oréal Consumer Products makes inroads in the Middle East with a varied portfolio BY HIBAH NOOR ur major development in the Middle East has been getting The Body Shop brand into the airport stores,” says Jacques Berger, Travel Retail Marketing Director, L’Oréal Consumer Products. “In the Middle East we have introduced The Body Shop brand in some new countries like Jordan and Egypt and will introduce it in Lebanon very soon. “The Body Shop is available worldwide in 150 countries.” The brand is also in the local market in 66 countries and in 2,500 standalone stores worldwide, Berger adds. “We hesitated a little bit about what to put on the shelves at first,” Berger says, “but after a while we discovered that the retailers prefer the body butters and all the body products. This is the way to hook the consumers.” The Body Shop brand is especially well suited for gifting, Berger says. The “Create Your Own” concept, introduced last October, allows the consumer to create their own tailored gift set by picking two Body Shop products and then receiving a third complimentary product. The complimentary item can be a mini shower gel or mini body butter. In addition to The Body Shop, L’Oréal Consumer Products handles Roger Gallet, Maybelline and L’Oréal Paris. The latter is a good partner for The Body Shop, according to Berger: in fact The Body Shop was first introduced to the Middle East market following on the success that the L’Oréal Paris brand enjoyed there. “The link between The Body Shop and L’Oréal Paris lies in the fact that they are two affordable brands which are in the airports to attract new consumers,” he says. “The idea is to bring additional business to the operators.” Travel retail remains an ideal market for luxury products, and Berger believes that because more and more people are traveling, operators continue to need brands like The Body Shop and L’Oréal Paris to attract new categories of buyers and increase revenue. L’Oréal Paris is number one in Jordan, but Dubai is definitely one of the most important Middle Eastern markets for the brand. It’s in all the terminals at the airport, and is backed up by 16 on-site beauty advisors. “We have huge promotions,” Berger says. “Most of the time it’s skincare because skincare is more successful than makeup at this airport.” There are a lot of Chinese travelers who transit through
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“The link between The Body Shop and L’Oréal Paris lies in the fact that they are two affordable brands which are in the airports to attract new consumers.” Jacques Berger, Travel Retail Marketing Director, L’Oréal Consumer Products
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Revitalift Repair 10 combats 10 signs of aging, including UV damage
Dubai, and they favor whitening products, and a lot of routines like toners and cleaners. Revitalift is one of the top sellers, and its market momentum was reinforced with the recent introduction of Revitalift Repair 10, which combats 10 signs of aging, including UV damage. The Revitalift line also includes Revitalift Program, which Berger says is the number one SKU worldwide. In addition to anti-aging products, mascaras are one of the strong suits for L’Oréal Paris, and the brand introduced two new sets at TFWA WE this year. Mega Volume Collagene 24 Hour introduced new collagen biospheres for added lash volume, boasting an expansion factor of nine in addition to its 24-hour effectiveness. False Lash Telescopic delivers lengthening in addition to a false lash effect, based on the linking and binding of 1.2mm microfibers to create a telescopic ladder. At TFWA WE L’Oréal also introduced a new promotional tool for retailers that leverages digital technology and the Internet. It features a large-screen monitor and enables digital marketing content to be controlled over the Internet. “We can change advertising from our office in all the airports around the world,” Berger says. “We can adapt to the type of travelers coming through the airport: for example, for Dubai Airport if there’s a flight coming from China we can make sure that the advertising is in Chinese with subtitles.” The unit is already in use in Paris, with French, English, Chinese and Russian options. Germany will follow soon, and L’Oréal is already sizc ing up other promising venues.
The World Travel Retail, Duty Free & Luxury Goods Exhibition
Where buyers and brands do business Taking place in Dubai – the commercial heart of the UAE and the wider Middle East – Middle East Exclusive is the definitive travel retail and duty free event, for the most dynamic air transport region in the world. Middle East Exclusive showcases duty free brands, luxury goods, and new products for travel retail buyers, duty free outlets, agents and decision makers, who are keen to source high quality goods for the region’s thriving travel retail sector.
The travel retail world comes to Dubai! Take part in this special event – which includes business networking opportunities and a unique VIP buyers’ programme – and build your sales in this booming marketplace. For Stand Booking and to know more about the Hosted Buyers programme, please contact the organiser, Channels Exhibitions, PO Box 55254, Dubai, United Arab Emirates. Telephone +971 (0)4 282 4737, or email info@middleeastexclusive.com
27-29 February 2012 Dubai World Trade Centre middleeastexclusive.com
Venue
Supported by
Company News: Anthon Berg
All under one roof
Inside the trendy and unique Anthon Berg offices
A visit to Anthon Berg’s production facility offers an insightful glimpse into how the Danish confectioner’s products are made from A to Z elicate plums are covered in home-made marzipan, dipped in dark chocolate and sealed in shiny bags. Chocolate shells are filled with fine liqueurs and carefully monitored to ensure the absolute right temperature. Senior Brand Manager Rikke Groenborg Crown takes us on a tour through Anthon Berg’s production area on one of her daily visits to the facility.
D
When a holiday or business traveler picks up a pack of Anthon Berg’s little liqueurfilled chocolate bottles, they are buying more than just chocolate. They are purchasing a testament to the company’s innovative and diligent work ethic, which goes into every item it manufactures. There are many hours of teamwork involved in the innovation and production that happens at the company’s Copenhagen facility. The marketing and sales departments are situated in the same building, guaranteeing quality-conscious travelers the best chocolate experience possible. “Everybody working at Anthon Berg takes pride in ensuring high quality at all stages of the production chain – just as the young Gustav Berg promised his father when he assumed responsibility of the chocolate 68
company in 1901,” explains Crown. Back then, the company was small and production was overseen by the manager. Today, Anthon Berg is a large operation with international sales. Yet one can still bump into senior managers and marketing personnel at the roaster or conching machines on the production floor. Crown arrives on the scene to talk to colleagues who helped her develop and produce a large version of the popular chocolate liqueur bottles, normally only five centimetres high.
YOU CAN NEVER BE TOO GENEROUS The fact that a large company like Anthon Berg has both production and innovation under the same roof has a big impact on the final product. It influences the day-to-
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
day work of all involved. The production department, for instance, is involved in the development of new products every step of the way and can feed back ideas and suggestions for improvement. Likewise, the marketing and innovation departments often visit the production section, especially during development periods. This proximity allows each department to follow every step in the manufacturing process. So when the marketing department asks the innovation department to develop something new, they can actually view the production process together and obtain feedback from the specialists. The result is a very open company with a great deal of interaction among its employees. “It is much easier to develop new products when all the departments are closely connected. When the marketing or innovation department comes up with a new idea and starts developing it, we can have daily direct contact with the chocolate specialists in production. The ease of that process ensures that knowledge of what is feasible and what is not – because of the beans, machines or ingredients – is always
Anthon Berg staff producing a large version of the popular chocolate liqueur bottles, normally only five centimetres high
Anthon Berg offices and facility in Copenhagen
instantly balanced with the needs of the sales and marketing departments,” explains Innovation Director Lars Christensen. At Anthon Berg, each department has a very good understanding of the other. “When the manufacturing takes place in another country, the physical distance often also creates a mental distance. But here you can experience all stages of production. For the marketing and innovation departments this means that you can always take a look inside the production department and see how work is progressing, which gives us a better understanding of what is feasible. To use a popular phrase we can actually walk the talk – we don’t just sit in marketing and sales and talk,” Crown says. This cross-departmental teamwork also allows ideas to be developed much quicker, using every available competence from the start. It means that ways can be found to realize a fantastic idea that is difficult to execute. It might even lead to a result that is better than the initial idea. “Literally all the chocolates in our Anthon Berg portfolio are the result of teamwork as well as visits to each other’s desks and the production area. It is easy to visualize the end-product when you can follow the creative process and the craftsmanship. You become proud of the product, because you have followed it from A to Z, and at the end you get to see the result in true life – not just a picture of it. Being under the same roof creates a vivid feeling of solidarity and shared responsibility. Everyone really wants to succeed,” explains Crown.
During Crown’s visit she drops in on the team that helped her create a large chocolate liqueur bottle. “It was actually quite easy to do,” Crown says. “I came up with the idea, went down to the production department, asked if it was possible to make such a large bottle and, being the excellent craftsmen they are, they went to work to create the mould right away.” The bottle has been produced and will be used for marketing purposes, as well as a special prize in a competition being held at Copenhagen airport and open to all travelers passing through. At Anthon Berg, the marketing and innovation departments can play with ideas that are somewhat out of the ordinary and almost instantly have the support of the craftsmen from the production department. Strong cross-department teamwork and mutual understanding, enthusiasm and respect for each other’s skills are all cen-
tral to the company’s success. “The possibility to combine the marketing and sales departments’ consumer insight with the know-how of quality chocolate production and support from the innovation department provides a great basis for developing interesting new products that meet the needs and wishes of both the trade and the consumers,” says Crown. “Through our consumer panel and focus groups, as well as Facebook, we have a direct dialogue with our consumers,” continues Crown. “This gives us a great insight into their desires, and we take this knowledge with us when we meet to discuss ideas, future products and even packaging. Because of our cross-department teamwork, there is relatively little distance between consumer and product. And we believe this is one of the important factors behind the success of c the Anthon Berg brand.”
The making of Anthon Berg chocolates
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Toblerone is by far the bestselling brand for KFWTR
Company News: Kraft Foods World Travel Retail (KFWTR)
Confectionery Kraftsmanship BY
HIBAH NOOR
Fresh from the acquisition of Cadbury, Kraft Foods World Travel Retail is on a roll ndreas Fehr, Managing Director of Travel Retail & European Export for Kraft Foods World Travel Retail (KFWTR), has reason to be well pleased with how things have worked out over the past year. Things are coming together for KFWTR – literally. “Last year we were celebrating the combined presence of KFWTR and Cadbury’s International Travel Retail at our TFWA WE stand,” he says. “This year in June we celebrated another important milestone in the integration process of the two companies and Kraft Foods and Cadbury legally became one organization. I’ve been delighted by the smoothness of the transition process. We now move forward with a single vision for the channel.” The merger will increase KFWTR’s ability to work with travel retail partners around the world, Fehr believes, in addition to boosting the momentum of the confectionery category overall. “Our one clear aim has been to excite and engage international travelers. In this past year I believe we have achieved this. We have pushed the boundaries of confectionery retailing a little further each time.” KFWTR’s performance this year has been an improvement on 2010, which Fehr, like so many others in travel retail, pegs as a recovery year. While the market is growing, however, the growth rate for the category is lagging behind the rates achieved by luxury goods, which themselves are rebounding from the heavier hit they took during the recession.
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“The category has evolved quite nicely,” Fehr says. “There’s a lot of big players that have decided to come into this market, and they’re really mixing up the category. There’s always room for good strong brands in this industry.” Toblerone is by far the bestselling brand for KFWTR, Fehr says. But the company’s stable of “beautiful and priceless” brands, now of course including Cadbury, are all growing fast. The integration with Cadbury has yielded a much more balanced mix overall, which Fehr sees as only a plus. “Toblerone used to be a high proportion of our business, but now we have more of a balance. It’s good not to rely on one brand.” Moving forward, Fehr sets a high priority on strategic in-store product placement, backed up by strong market research. “We have the insights that prove that confectionery is a classically impulse category, and if it’s strategically placed and if you have multiple touch points, these can drive the performance of the category.” The Middle East is a very promising market, says Jaya Singh, KFWTR’s Region Director, Middle East & Asia Pacific World Travel Retail. “The potential in the Middle East is enormous: we’ve seen growth in this region significantly double up year on year,” he says. The nationality profile in the region is diverse, but does tend to gravitate toward
“There’s a lot of big [confectionery] players that have decided to come into this market, and they’re really mixing up the category. There’s always room for good strong brands in this industry.” Andreas Fehr, Managing Director of Travel Retail & European Export, KFWTR 70
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
This year in June Kraft Foods and Cadbury legally became one
sweet products, Singh says. One of the two primary demographics is made up of expats from the Indian subcontinent who work in the Middle East. These customers like sweet products and are already quite familiar with brands like Cadbury. “There is a confectionery culture behind them,” as Singh puts it. The second element in the demographic are the residents of the region, who, Singh says, also have a similarly sweet-oriented culture. For confectionery retailers, these customers are even better because they are also strongly oriented toward gift-giving. Further elements in the mix are European expats occupying managerial positions in the region and, as in many other markets, a new and notable influx of Chinese travelers. The latter transit through Dubai in particular on their way to Africa, where China has been investing heavily in resource-rich countries. Per capita consumption by Chinese nationals lags behind those of Indian nationals, Singh says, but this is still an emerging consumer profile. On the product side, KFWTR has added new products from Cadbury, Toblerone and Milka. The biscuit category in particular is showing great promise with the pending addition of six travel retail entries under the Oreo banner. Consumer research has identified a high level of Oreo awareness among travelers, which makes the brand a fruitful
ESSENTIAL COMMUNICA UNICA ATIONS TION TIONS
MEDIA MEDIA
kknowledge nowledge ge C CLIENT L IENT understanding u nderrsstta anding Essential Communications is an independent Public Relations agency specialising in the travel retail and duty free industryy. Established for over ten years, our goal is to raise the profile of the companies we represent in the international and regional media. At Essential Commun u ications, the client always come first and we will bend over backwards to put together a proposal that meets your needs...and your budget. Flexibility is the name of our game, so if ward press release program or an all singing, all dancing media you’re looking for a simple, straightforw campaign, we’ll give you a no-nonsense solution to your needs. And..we do it with a smile.
“The support that we have receivved from Essential Communic icatio ions has ex exxcceede ded our expectatio ons. Havin ng sold successfully in nto travel reta re tail channel for many years, we enlis isted Essential Communicatio ions in n early 2010 to develop a focused travel retaill PR campaign. Our exisstin ng customers are delighted and witthin n weeks we gain a ned new customers as a dirrect result of our PR. We contin nue to be impressed witith the depth of knowledge and contacts that Essential Communications has been able to sha h re re witith us.” Rebecca Harwood Lincoln, Global Travel Retail Directorr,, Polaroid P Eyewear
“Scorpio Disstributors appoin nted Essential Communications in n 2006 as part rt of an up upg pgra rade ded marketin ng strategy. They provide us witth a frie endly, effi ficcient, pro ro-a o-activve e serv rvviic ice and, cert rta tainly ly resent excellent for Sco orpio, repre value for money.” Stua uart McGuire, Gr Stuart Group Managing Directo torr, Scorpio Distributors D Ltd ‘Essential Communiccations has proved to be a vitital part of the success and gro rowth of Counter in ntelligence Retailil in the channel. Always quic ick to to re respond to our needs, the reach the company has provided us has ensured we we e’ve always had the right amount of exposure and th the most appropriate coverage at the right tim me’.
“Essential Communications has been in nstrumental in n us achieviin ng the hig th igher profile that we seek as we continue to build the business globally. The profile is essential to us in in sec ecuri rin ing th the co confi fid dence de ce of of both new and existing cruiseline customers as well as the various constituent elements of the supply chain in all of the various territtories in which we operate. From trade press to corporate profi filles, from in nterviews with the main department heads to national assistance with our recruitment drive, Essential Communicatio io on ns has been totally professional and innovativve in n its approach.” Harold Gittelmon, Managing Director, Harding Brotthers he Retail LLtd
is, Managing ging Garry Stasiulevicuis, Directorr, Counter Intelligence Inntelligence Retailil
Rowena Holland Essential Communications 110 Falconwood Road Croydon Surreyy, CR0 9BD, UK
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Company News: Kraft Foods World Travel Retail (KFWTR)
Oreo is the newest addition to the KFWTR diverse portfolio
avenue for products that cover all the strongest segments, from snacking to gifting. Oreo represents a ‘full-spectrum’ travel retail gifting entry, with something for the premium and informal gifting segments, as well as snacking, sharing and self-reward.
“The potential in the Middle East is enormous: we’ve seen growth in this region significantly double up year on year.”
A study in sweet In some recent research, KFWTR surveyed some 1,200 passengers from the seven top buying nationalities to determine which items and categories were best suited for cash till point sales. KFWTR created what it called a “stimulus board” representing non-brand-specific product categories. Confectionery lines included products from Nestlé, Mars, Lindt, Ferrero, Godiva, Perfetti and from Kraft. Other categories represented were travel accessories, liquor, cosmetics, and others normally associated with till point sales. “In our travel-retail-specific cash till study we saw differences among nationalities and traveler type when it comes to details, but there were clear patterns within the total sample,” says Anna Somogyi, Senior Brand
Jaya Singh, Region Director, Middle East & Asia Pacific World Travel Retail, KFWTR Manager, KFWTR. “Shoppers are going through on a similar ‘mood-hierarchy’ while queuing, and their needs should be translated into relevant product offers.” In Cannes, KFWTR launched their Cash Till Advisor Application, using their new shopper insights to address retailers’ locationspecific requirements and deliver a solution that can be tailored in real time during a meeting. “We aren’t only focusing on the cash till,” Somogyi says. “We aim to be the expert
“In our travel-retail-specific cash till study we saw differences among nationalities and traveler type when it comes to details, but there were clear patterns within the total sample.” Anna Somogyi, Senior Brand Manager, KFWTR 72
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
for the entire shopper journey. In Cannes our ‘Insight into Action’ video had its premiere. The film analyzes the behavior of an average passenger in a representative travel retail environment. Based on analysis of 40,000 passenger movements and 3,300 interviews with global travelers, we selected key actionable insights, and show these during the video.” Somogyi says that the video enables retailers to put themselves in the shoes of a passenger and experience the impact of the airport surroundings, the store, the category layout, the product offer, the promotional mechanism and the cash till environment. “For us the key challenge is to highlight those insights to our retailer partners that can be activated in their store and turned into growth,” Fehr says. “We continue to invest in understanding the travelers, turning knowledge into outstanding innovation, eye-catching in-store execution, exciting promotions and, finally, but not least, into strategic cooperation with our retail partners c to grow the business.”
Company News: Goldkenn
Cashing in on the Middle Eastern sweet tooth BY
Goldkenn’s Swiss Kiss
Goldbar product is ‘in harmony’ with Middle Eastern culture, says Goldkenn
s the Swiss chocolatier Goldkenn gets ready to celebrate its 30th anniversary next year, it has decided to introduce its world-famous product in a culture where sweets are a tradition – the Middle East. In fact, says the company, one of its main products, Goldbar, fits right in with the Middle Eastern taste buds. As other retail brands from Europe and North America are realizing, Middle East is the place to be for market expansion, whether they are fragrances, cosmetics, fashion items or even specialized sunglasses. Says Yves Linder, the CEO of Goldkenn, "the potential is huge in the Middle East and every year we have succeeded in introducing new destinations. The Goldbar product is a product line that fits in and is in harmony with Middle Eastern culture." The Goldbar product goes back to the origin of the company in 1980, when Steven Goldstein and Christian Belce Kennedy decided to set up Goldkenn by combining both family names. Goldbar itself was wrapped in a packaging that combined two well-known symbols of Switzerland, banks and chocolates. Today, Goldkenn enjoys a worldwide reputation for innovative chocolates, particularly its flagship Goldbar product. At the Tax Free World Association (TFWA) show held in Cannes earlier this year, easily the most important gathering of the duty-free sector, Goldkenn introduced three limited edition chocolates to celebrate the 30th anniversary of the original Goldbar chocolate next year. There are three limited edition Goldbars including Swissness, Premium and Cacao, representing the fundamentals of Goldkenn. The wrappers for these limited editions were designed by artist Emmanuelle Fuchs and will be launched in April 2012. "Since 30 years, our Goldbar chocolates are the flagship of the company," says Linder. “This limited edition marks a significant step in the success and history of Goldkenn.”
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n oldken ar by G Goldb
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The revam ped Choco late Club C ollection
HIBAH NOOR
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
At Cannes, the company also introduced a completely redesigned Chocolate Club Collection product, which consists of three exclusive boxes containing 12 extra fine crispy crêpes with a premium filling. The recipes were also adjusted, says the company, to provide "even more indulgence and sweetness to the product." The three flavors in the new Chocolate Club Collection are Praline, Cappuccino and Selection. Each box was covered with a luxurious sleeve, however for the Asian market the sleeve is colored red. These will be launched in February 2012. The last of the three products Goldkenn plans to introduce next year is called Swiss Kiss, a gold heartshaped box containing the selection of seven premium Swiss milk chocolate hearts filled with praline (77g), with each chocolate wrapped individually in a foil. The launch date for Swiss Kiss is April 2012. For this November, Goldkenn is introducing Swiss Gold wrapped in an updated packaging made of shiny gold. This is the company's existing product, praline filled and enrobed in a Swiss quality milk chocolate. However, the company says that it has also updated and improved on the original recipe. "The splitting of products has been modified though the quantity not affected," says Linder. "The development is positive. 2012 will be rich with these new products and due to the celebration of the 30th anniversary.” Goldkenn was among the earliest pioneers to develop successfully a new market category for chocolates, in the airport retail market, and then quickly moving into a second groundbreaking market, namely sales on board passenger aircraft, what is generally referred to as inflight sales. Today, its chocolates are sold in more than 250 international airports and duty-free shops, on board approximately 50 airc lines, as well as on some cruise ships.
Confectionery News Perfetti’s exotic fruit flavors invade Mideast In one big sweep, the world’s third largest, privately held confectionery manufacturer has left its footprint in the Mideast, with more to go. Perfetti van Melle has placed its world famous sugar confectionery and chewing gums in Jordan and Kuwait, with the Kingdom of Saudi Arabia as its next destination. Already, its products are all over the Mideast in the domestic market. “The Middle Eastern region is important for us,” says Mark Laros, Global Travel Retail Director for Perfetti van Melle. “After Europe, this is our most important region. Arabs have a sweet tooth, they’re all into sugar confectionery and chewing gum. If you look at our market share globally, in the Middle East they are amongst the highest. For the mid long term it looks very promising for us.” Making a dent in duty free travel retail is a coup for Perfetti because chocolate confectionery still dominates the sector. Laros says that when it comes to chocolates, there are several global brands such as Nestlé, Kraft and so on. In sugar confectionery, he adds, there are six. And Perfetti has two of these six. To break into and establish itself firmly in the Mideast, Perfetti had to take into account cultural likes and dislikes. While not exclusively developing products for the Mideast, the company found that it already had products that met the Arab palate. “We looked at cultural diversity in the Middle East,” says Laros. “For example, fruity flavors do well, mint flavors not as much… They [Middle Easterners] love fruit flavors… exotic fruit flavors, for example watermelon, mangoes, etc. The bestsellers in the Middle East are Mega Chups, Chewing gum with fruity flavors and Chupa Chups backpacks.” Laros adds: “The world’s most famous lollipop, Chupa Chups appeals to people of all ages and nationalities – and in particular kids, thanks to the fun and friendly gift packaging. Every year the company endeavors to bring its travel retail customers new, innovative and different concepts that will leap off the shelves and into consumer’s baskets.”
Chupa Chups develops special new toy format for children
Brand relaunch for M&M's will further drive conversion in travel retail Mars International Travel Retail's (ITR) M&M's has developed a new visual identity designed to capture the fun spirit of its personality and also to maximize conversion within the travel retail channel. Announced at this year's TFWA Show in Cannes, the new look follows extensive research undertaken by the Mars ITR team to ensure that M&M's will further drive category growth across the 100+ countries where it is available. Confectionery is a key driver of footfall and Mars ITR believes it is the strongest category for impulse purchases in travel retail, having a huge untapped potential in penetration, conversion and average basket sizes in the channel. This potential is illustrated by Mars ITR's finding that only 16% of all travelers buy chocolate, whilst 90% say that they love it. Jack Tabbers, General Manager, Mars ITR, explains the strategy: "From extensive market research we learned that clear signposting with only a few recognizable 'beacon' brands is the best way to attract new buyers to the category. We also learned that brand color is one of the strongest drivers of impulse. "With this new look we are optimizing the power of M&M's - the global number one in confectionery - in a sophisticated way, building on what the traveler already knows about the brand. The new look sees the characters brought to life in a variety of entertaining and unique executions featuring the new eyecatching yellow theme and these components will be activated at critical points along the consumer journey. We have ensured that the identity is expressed in a way that unlocks the fun spirit of the brand, engaging the shopper and, through a variety of different formats and executions, is adaptable enough
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to meet with all specific requirements of retail locations around the globe. I believe this approach will increase conversion as shoppers engage with the high recognition levels of M&M's –second only to Santa Claus in the US - and enjoy an amazing shopping experience that they'll remember and tell their friends about. I guess you could call it our 'go home happy' strategy." The new identity is part of a sustained commitment from Mars ITR to drive category growth, which Tabbers emphasizes is an underexploited opportunity for the whole industry: "Retailing is entering a new era. The pace of development of new technology, particularly in mobile communication, makes global trends more conveniently available and so retailers and brands need to work closely together to engage shoppers, provide amazing experiences and, by doing that, drive conversion. "We're confident that with these new-look visual formats and identity we will continue to drive the strong double-digit growth we've enjoyed year on year – whilst continuing to increase brand equity across the M&M's range." M&M’s is a bestseller for Mars ITR
Jewelry/Accessory News
Details, details A focus on materials, process, and quality details marks these accessories, new for 2012
BY
HIBAH NOOR
Surprising connections ally has unveiled its Spring/Summer 2012 Collection, which “explores a modern romance in which streamlined sportswear silhouettes meet precious, petalstrewn fabrics.” Leveraging Bally’s 160-year heritage of leather craftsmanship, and themed around Karlheinz Weinberger’s photographs of 1960s working-class teenagers, the collection is based on the notion of unexpected juxtaposition. Joint Creative Directors Michael Herz and Graeme Fidler have created laser-cut soft leather that simulates perforated sports mesh in knee-length coats of meadow green, glacier blue and gentian yellow, simple A-line day dresses crafted from hand-embroidered lace and cotton-jersey t-shirts inset at the shoulders with padded leather motocross panels. The second collection by Herz and Fidler brings a couture-luxe approach to modern dressing. It is tailored to the need for chic clothes that aren’t too formal. Iconic womenswear tropes – the trapeze dress, the shell top, the pencil skirt, the cardigan jacket, the collarless
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coat – are reworked with a range of embellishing techniques to create a feeling of drama. New features for this season include a three-dimensional print effect using embroidery and appliqué, which has been applied by hand. Increased texture is imparted to printed fabrics – which tend to look flat – with embroidered leather swirls, sequin-embroidered tulle and geometric crystal shards. “Hero pieces” range from a simple strapless lace dress appliquéd with lace and leather petals to a draped leather, one-shouldered monochrome dress. A sage leather and chiffon T-shirt encrusted with embroidered, mirrored glass-like shards is paired with a pared-back white leather pencil skirt, while a sleeveless day dress has a built-in sequin-stringed necklace and is printed with a trompe l’oeil version of the same. The natural motifs of petals and leaves are reflected in the use of
natural fabrics such as Swiss cotton poplin, Spring/Summer 2012 Collection soft nappa Bally leather, silk crèpe de chine and mercerised cotton and silk lace across a color palette of peony, rosemary, misty grey, wood bark and azure blue. For shoes, Herz and Fidler have started with the cat’s-cradle sandal that is featured on Bally’s 1951 centenary poster and reworked it into a series of “barely there” pieces at every heel height. Bally’s new bags for 2012 come in three shapes: pouch, A-frame and boxy clutch, and are highlighted by strings of leather sequins, lace-embroidered petals, swirls of appliqué filo rolls and mirrored shards. Each bag sports a mountain goat mascot motif. Bally Spring/Summer 2012 Collection
New Tateossian exclusives for fall ateossian announces exclusive inflight offerings on Emirates, Qatar and Saudi Airlines. Paying a style tribute to the bracelet stacking look, Tateossian has some great additions for fall on Emirates Airlines. For the Tateossian Women a stacking set is a rich dark blue smooth Italian
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Tateossian Diamond dust cufflinks are new to Saudi Airlines
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leather bracelet with an elegant rhodium plated clasp combined with a semi precious beaded bracelet made with turquoise, labradorite and sodalite. A slick leather bracelet set is offered to the Tateossian Man. Starting with the smooth black Italian leather bracelet followed by a textured brown Italian braided bracelet. Both pieces are finished with a signature Tateossian rhodium plated clasps for a truly masculine look. Both sets are exclusive to Emirates for US$99 and will be available from January 2012. New to Saudi
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
Airlines is the Tateossian Diamond dust cufflinks. Each cufflink sparkles with three carats of genuine diamond dust set in a rose gold plated case. These beautiful and striking cufflinks reflect the Tateossian manner of using precious materials in unusual way. Available for SAR 995 (US$265) onboard Saudi Airlines from November 2011.
The Soft Leather bracelet will be available onboard Qatar Airways
The Gold of Royalty Every piece of Clogau Gold jewellery contains a touch of rare Welsh gold as used to make generations of wedding rings for the British Royal Family.
www www.clogau.co www.clogau.com om
Jewelry/Accessory News
Heart Beat Collection
Constant beat rédérique Constant Genève has introduced the new Heart Beat Manufacture GMT Automatic. In the continuing tradition of the Heart Beat Collection, the Heart Beat Manufacture GMT Automatic comes in six models, each model a limited edition of 1,888 pieces for the stainless steel versions and 188 pieces for the 18K gold versions, all delivered in a wooden gift box. The watches have a new second time zone functionality, a 42-hour power reserve, a diameter of 30.50mm, 27 jewels, KIF antishock system, Glucydur balance and a Nivarox balance spring. Bridges of the move-
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ment are decorated with Côtes de Genève and perlage, and have anglage and rhodiage finishing. Each dial has a second time zone counter and day/night indicator at the 12 o’clock position, a Heart Beat aperture at the 6 o’clock position and black oxidized hands. The design promotes adjustment of time zones through the crown, eliminating a separate pusher. The wearer turns the crown clockwise to set both time zones, counter-clockwise to move only the central hands. The Heart Beat Collection dates back to 1994. The purpose was to distinguish the mechanical Frédérique Constant watches
from their battery-operated counterparts. The watches have a dial aperture at the position of the balance wheel to show that the movement inside is mechanical. The balance wheel beats 28,800 times per hour. The balance wheel rotates clockwise and counterclockwise on its axis in a large ruby jewel, with the rotation controlled by the hairspring, which constantly coils and uncoils and is visible through the open eye of the Heart Beat. In 2004, Frédérique Constant joined the fraternity of Swiss watch makers that develop and produce their movements in-house. From that point, it has aggressively developed and advanced its own movement program.
Furla set for major travel retail expansion wenty-eight new locations were gained by Furla this year at the TFWA World Exhibition. “It was the best show ever for the brand,” says Head of Travel Retail Gerry Munday. “We trebled our appointments over last year and the response from buyers to the new collection was extremely positive.” New business includes an exclusive listing onboard Emirates Airline starting in December for a ‘Nera’ Italian made black nappa leather small shoulder bag with chain, perfect for day or evening use. Additionally, Furla’s Spring Summer 2012 Collection will be going into Antalya T1 with Net Urart-Nuance, with Autumn Winter 2012 additionally listed in T2. Furla’s SS12 range is also going to sea with Star Cruises via a new agreement with Valiram. TFWA World Exhibition came at the close of an extremely active year for Furla in travel retail, with refurbished shops open-
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ing at Milan Malpensa T1 Schengen with “To now have another 28 probable listDufrital; Turin via Sagat; Munich T2 with ings on top of this, all from one week in Eurotrade; and Beijing T3 with Sunrise. Cannes, is just fantastic.” notes Munday. “Next year we already have a number of 2012 promises to be an excepmulti-brand and personalized corners tional year for the Furla brand. scheduled to open, with operators “We’re planning on exhibiting including World Duty Free (East Midboth at the Duty Free Show lands, Newcastle and Manchester T1 of the Americas in Orlando and T2); Gebr Heinemann (Oslo as we continue to develop and Ekaterinburg Airports); CTC our Americas business, The Nera leather (Paphos Airport); Airest Collezioni and of course TFWA Asia bag will be available exclusively on (Glasgow Airport); and Duty Pacific in Singapore,” Emirates Airline Free Philippines (Fiesta Mall sums up Munday. c Complex),” continues Munday. “We also have a new opening confirmed with The Nuance Group, North America, for a shop in shop in Las Vegas T3. This will be for the Autumn Winter 2012 collection, which we’re very excited about.”
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
Liquor Report: Standout Spirits
The
spice of
life
Whether it’s new packaging, never before seen products or large-scale promotions, spirits suppliers are pulling out all the stops to keep travelers in the Middle East on the edge of their seats RYAN WHITE
C
BY
onsumer preferences aren’t static, and thankfully for globetrotters the travel retail industry is especially good at staying ahead of trends and treating duty free shoppers to new and exciting experiences. Gulf-Africa Duty Free recently spoke with International Beverage Holdings, Bacardi Global Travel Retail and Brown-Forman about how they’re going about pleasing discerning spirits lovers in the Middle East. Among the latest developments from these suppliers are new liveries for two iconic whisky brands, the introduction of a new spiced rum with a big heart and a collaboration between two American legends.
Continued investment in valued brands
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iddle Eastern travelers are known for their love of whisky, and International Beverage Holdings (Interbev) is breathing new life into some promising brands with package redesigns and special editions that were introduced at this year’s TFWA WE in Cannes in September. The standout Old Pulteney single malt whisky and Hankey Bannister blended Scotch whisky have been boldly redesigned. In addition, a special two-pack of Hankey Bannister Original and 12 Year Old was recently introduced and has been performing well in the Middle East. Old Pulteney, which is one of the fastest growing malts in the industry, has revealed a vibrant new design with a bolder logo to drive a premium message and improve retail
display while at the same time retaining Old Pulteney’s distinctive bottle shape and “Maritime Malt” positioning. “Old Pulteney is distilled in Wick, Scotland,” says James Bateman, Global Travel Retail Manager at Interbev. “In fact, there are no other Scotch whisky distilleries there, so we’ve communicated Old Pulteney’s unique origins on the bottle. We’ve also taken the boat and put it to the back so that it can be seen through the front of the bottle. These changes, combined with the redesign of the words ‘Old Pulteney,’ have resulted in much more shelf standout.” Hankey Bannister blended Scotch whisky has unveiled a striking, super-premium presentation pack of its 21 year old “Partner’s Reserve” that features an elegant black box, proprietary bottle and gold embossed label. The new limited edition Hankey Bannister 25 year old “Partnership Blend” was also previewed in Cannes. It comes beautifully encased in a Lochinver decanter and luxurious bordeaux-red presentation box. This new expression has been specially selected by Master Blender Stuart Harvey using the very finest non-peated single malts, resulting in a distinctively delicate and smooth flavor. Interbev is banking on increased traction in Asia duty free with the above super-premium Hankey Bannister offerings. Bateman told Gulf-Africa Duty Free that in the Middle East, The new presentation of Hankey Bannister 21 year old “Partner’s Reserve” features an elegant black box, proprietary bottle and gold embossed label
Hankey Bannister Original and 12 Year Old expressions are very popular, particularly with Indian travelers. “For the Gulf we’ve introduced a gift pack featuring two one-liter bottles—Hankey Bannister Original and 12 Year Old,” Bateman explains. “It offers a savings to shoppers and has already been launched in airports in Dubai and Sharjah to great effect. “Duty free is a great channel for us to generate awareness of these brands,” Bateman continues. “Hankey Bannister is a very regional brand that is popular in India. As such, it’s also popular with Indians living and working in Dubai, which helps us develop in the Middle East.” Old Pulteney has revealed a vibrant new design with a bolder logo to drive a premium message and improve retail display
Jack Daniel’s was prominently displayed throughout Dubai Airport during the Harley Davidson promotion
Michael Schmidt, Dubai Duty Free Manager – Retail Sales; Tony McIver, Brown-Forman Area Director Middle East & North Africa; and George Horan, President of Dubai Duty Free, stand alongside the special Jack Daniel’s/Harley-Davidson Fat Boy motorcycle
Two icons take the stage
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hat happens when you take two iconic American brands—Jack Daniel’s and Harley-Davidson— and put them together in a giveaway promotion in one of the world’s busiest airports? Tony McIver, Brown-Forman’s Area Director Middle East & North Africa, answers: “It was a remarkably successful promotion with sales up over fifty percent,” he said. Refreshingly simple in its build-up and execution, the promotion allowed each person purchasing a Jack Daniel’s product at Dubai Duty Free during September a chance at winning a Harley-Davidson Fat Boy motorcycle. The winner was Fitim Sokoci of Kosovo. McIver stated that Dubai Duty Free was extremely proactive in promoting the Harley-Davidson giveaway, noting that Terminal 1 featured customized Jack Daniel’s furniture along with promotional signage across the entire airport. “Of course, having a Harley-Davidson Fat Boy motorcycle customized with Jack Daniel’s logos and images—including the familiar Old No. 7—so prominently displayed in the airport helped encourage participation,” McIver said. The draw was conducted by McIver together
The heart of the matter
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t this year’s TFWA WE, Bacardi Global Travel Retail launched Bacardi OakHeart. On the verge of its 150th anniversary, the company says that the introduction of Bacardi OakHeart “reaffirms the brand’s leadership position in rum with expressions now across all rum segments— traditional, flavored and spiced.” Bacardi OakHeart is a smooth, spiced spirit drink of premium rum with a hint of smokiness and a unique velvet like smoothness. Straight from the heart of charred American white oak barrels, this expertly blended premium spirit drink contains selected flavors and spices that are sure to pique travelers’ interests. “We’ve had a very good response to OakHeart from operators in the Middle East,” says Hauke Marquardt, Bacardi’s Travel Retail Regional Director for Central and Eastern Europe, as well as the Middle East. “There’s a palpable excitement around the product. The packaging is very unique, so I think it will make people stop and have a look. Sampling, where permitted, will be a key part of the launch, and when consumers taste the liquid we think OakHeart will have an even bigger impact.”
Bacardi OakHeart begins with rums mellowed in charred American white oak barrels and blended together to create the perfect base. Selected flavors and spices such as cinnamon, nutmeg, honey and vanilla are then added to this blend. The result is a bold, spiced spirit drink of premium rum with an amber hue, a hint of smokiness and unique velvet-like smoothness. Rich and oaky on the nose, with aromas of smoke and dried fruit, Bacardi OakHeart has robust flavor with a hint of maple and honey followed by vanilla and caramel. Every aspect of Bacardi OakHeart was developed in collaboration with thousands of consumers and hundreds of bartenders. More than 2,700 names were considered before OakHeart was selected, a process that took more than two years. The OakHeart name draws on the charred oak barrels used to create this premium rum and in studies consumers and bartenders associated the name with strength of character, unwavering loyalty and the kind of friend they’d like to be and have. No doubt to the delight of spirits lovers in the Middle East, Bacardi OakHeart was launched in October. “In locations where
with Dubai Duty Free officials headed by Colm McLoughlin, Executive Vice Chairman; George Horan, President; and Sharon Beecham, Manager – Purchasing & Vendor Support. Brown-Forman has taken great strides in growing not only Jack Daniel’s, but the entire Jack Daniel’s family of brands in the Middle East. The company recently introduced Gentleman Jack to a whole new group of consumers in the region’s duty free market by offering a 375 ml bottle of Gentleman Jack free with the purchase of two liters of Jack Daniel’s. “This promotion has proved to be a huge success everywhere we have run it,” McIver asserts. While Jack Daniel’s Old No. 7 has grown tremendously in the region for Brown-Forman, the increasing popularity of Gentleman Jack is proof that there is great potential for JD variants and other brands in the region. The company will list the Jack Daniel’s 1954 Gold Medal bottles and Woodford Reserve Special Finishes in MMI’s Le Clos outlet in Dubai Airport in the near future.
Straight from the heart of charred American white oak barrels, Bacardi OakHeart contains selected flavors and spices such as cinnamon, nutmeg, honey and vanilla
sampling isn’t available, travelers in the region can expect a number of exciting activations in the near future,” says Marquardt. “Bacardi OakHeart a phenomenal product and we’ll be investing heavily in it, not only in the c Middle East but around the world.”
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Liquor News Patrón rides high in the Middle East While the breakout success of Patrón Silver Tequila over the last few years in duty free is hard to match, Patrón Spirits International reports that XO Cafe has been met with open arms by the industry in the Middle East, not to mention in the rest of the world. The most recent Gulf operator to list the product is Dubai Duty Free and Greg Cohen, spokesperson for Patrón, says that XO Cafe is proving very popular across the region: “In 2011 we’ve listed the product in duty free in Qatar, Cypress and Beirut,” he notes. Patrón XO Cafe is an extraordinary blend of
ultra premium tequila and the pure, natural essence of the finest coffee. The taste is dry, not sweet as with most low proof coffee liqueurs. The higher proof brings out the flavor of the pure coffee essence and the ultra premium tequila. It is excellent for sipping as well as a premium ingredient in a cocktail or as a unique and delicious dessert topping. Patrón says that it will continue to pursue new listings in the Middle East into the new year. The company is also developing a number of new GWP promotions that will be implemented worldwide in the coming months.
About Patrón Spirits International
This year Patrón XO Cafe has been listed in duty free in Qatar, Cypress and Beirut
Patrón Spirits International is one of the fastest-growing companies in the global beverage alcohol industry. The company’s flagship brand, Patrón tequila, is an ultra-premium luxury white spirit that’s delicious on the rocks and mixes flawlessly into most any cocktail. From the highest-quality Weber Blue agave plants grown in the highlands of Jalisco, Mexico, to the centuries-old distillation process, to the signed, handcrafted glass bottles, Patrón is produced with unparalleled attention to sophistication and detail. Tequilas in the Patrón portfolio consist of Gran Patrón Burdeos, Gran Patrón Platinum, Patrón Silver, Patrón Reposado and Patrón Añejo. The company also produces Patrón XO Cafe and Patrón Citrónge (extra fine orange liqueur), as well as Pyrat Caribbean rums, and Ultimat vodka from Poland.
The Balvenie Forty named “Best Single Malt Scotch Whisky 35-40 Years” by 2012 Whisky Bible Awards The Balvenie Forty Batch Two has received high acclaim at the 2012 Whisky Bible Awards. The rare whisky has been named the “Best Single Malt Scotch Whisky 35-40 Years.” The Whisky Bible Awards is a high profile blind tasting competition which culminates in the publication of the world’s biggest-selling whisky book—The Whisky Bible. Jim Murray, one of the leading commentators on world whiskies and author of The Whisky Bible, nosed and tasted 1,210 new whiskies and re-tasted examples from over 200 distilleries for the 2012 edition of the book. Murray comments on The Balvenie Forty:
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“Unless you have a good two hours that you know will be uninterrupted and unspoiled by cooking and other extraneous aromas, don’t even think about opening this bottle. Once you have, sit back and experience something just a little special.” Commenting on the win, the longest serving Malt Master in the industry, The Balvenie Malt Master David Stewart, remarked: “To have this precious whisky win such a prominent award is a fantastic achievement for The Balvenie, and something I am very proud of. Jim Murray’s Whisky Bible is a much respected authority within the industry and this recog-
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
Only 150 hand-numbered bottles of The Balvenie Forty Batch Two were available worldwide
nition speaks volumes for the dedication of our team of talented craftspeople at The Balvenie Distillery.” Each batch of The Balvenie Forty is a marriage of rare whiskies from Balvenie Distillery. Presented in a bespoke wooden box, handmade in oak by Scottish craftsman Sam Chinnery and hand-engraved by Sam’s father, only 150 handnumbered bottles of The Balvenie Forty Batch Two were available worldwide.
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Liquor News
White Gold
Belvédère Duty Free strengthens its presence looks for continued in the Middle East success in travel retail Torben Vedel Andersen, Director of Global Duty Free at White Gold broke into duty free and travel retail just two years ago and has already seen some impressive successes. The company’s products are now listed in Gebr Heinemann and Aer Rianta International stores worldwide, as well as with Dufry shops in Russia. “We are currently in negotiations with other operators such as DFS Group, Aldeasa - WDF, The Nuance Group, B&S Paul Global, Weitnauer, ATU Duty Free and many others, who seem to be very positive about the idea of launching of our main brands, White Gold Black Edition vodka, White Gold vodka and Russian Gold vodka,” says a spokesperson for the company. White Gold says that given the growth of the vodka subcategory, especially in duty free, it sees a great opportunity for its brands as they continue to penetrate the channel. Currently working on its own to supply clients and organize activities, the company is interested in meeting with experienced distributors to discuss increasing the reach of its brands. “Our brands have a perfect presentation and are known for their quality,” the company says. “We’re looking for a company with sufficient sales and marketing strength to drive our brands into this competitive market and share in White Gold’s success.” Indeed, the company’s products are getting noticed on the world stage. According to a recent IWSR report, vodka brand Gzhelka, produced and distributed by White Gold, is a new entrant on the list of the top 20 vodka brands worldwide. The company’s latest offering is a new variant called White Gold Black Edition. The limited edition spirit comes in a sleek black bottle and is triple-filtered in black coal and a silver ion filter for crystal clarity and a pleasant palate. The variant is designed to appeal to trendy clubgoers, with a design that pays tribute to the traditional cues of the original spirit while communicating a sense of modernity and mystery.
Belvédère Duty Free, tells us that the company has made great strides over the last year in the Middle East. All of Belvédère’s core brands—Sobieski Vodka, Marie Brizzard Liqueurs, Danzka Vodka and Gautier Cognac—are now listed at Dubai Duty Free, and listings are also being secured in other airports across the region. “The Middle East is a fast growing business for us and becoming ever more significant in all aspects,” Andersen explains. “Marie Brizard Liqueurs have been significant in their category for many years in the region, so we are building our other core brands on the entry that the liqueurs have provided. “Our vodka range, which includes Sobieski and Danzka, is well distributed and rapidly growing,” he continues. “As regional travel grows in importance, we’re confident that our brands will grow as well, both in volume and distribution.” Belvédère’s most recent releases across its spirits ranges include Gautier Napoleon, a blend of eaux-de-vie aged between 6 and 25 years from the four premiers crus of the Cognac region; Sobieski Estate, a super premium vodka in an elegant signature bottle; and ultra premium Marie Brizard liqueurs Chocolat Royal and Grand Orange.
“The Middle East is a fast growing business for us and becoming ever more significant in all aspects.”
White Gold Black Edition is triple-filtered in black coal and a silver ion filter for crystal clarity and a pleasant palate
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GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
Torben Vedel Andersen, Director of Global Duty Free, Belvédère Duty Free
Estate (top right), a new ultra premium vodka from Sobieski, and Marie Brizzard Grand Orange, just two of the many new releases in Belvédère Duty Free’s strong portfolio
Liquor News
World of Patria develops new super-premium portfolio for travel retail Established travel retail wine and beer distributor World of Patria International (WOPI) is expanding its offer with a specially selected portfolio of premium and super-premium spirits and wines. Working primarily with independent and niche companies to create an offer that is unique within the category, the company has recently signed an exclusive global travel retail distribution deal with Chinggis Khan Vodka and with Inish Turk Beg Irish whiskey for selected markets. The development follows the appointment earlier this year of Director Kevin Baker, who has brought unparalleled experience of the spirits business to WOPI. Following more than 20 years’ service with IDV/Diageo and Brown-Forman, reaching the position of Global Key Accounts Director Travel Retail, Baker is well placed to lead the portfolio development. “Our business has developed very quickly since being founded in 2006 and we now enjoy extensive coverage for our beer and wine portfolio on ferries, cruise lines and airports,” says WOPI Managing Director Rob Nichols. “However, we felt that there is a significant opportunity to develop a premium/super premium spirits offering, and Kevin, with his significant credentials within the industry, is the perfect man for the job.” In a short space of time, WOPI has taken on distribution for a number of brands including globally for The Last Drop Distillers and the Duncan Taylor Scotch Whisky range; and for Europe and the Americas, Orbis Aged World Whiskey, Wemyss Malt Whiskies, Darnley’s View Gin and Sir George Potstill Brandy. “Travelers are increasingly looking not just to trade up in travel retail, but to find niche brands that they are less familiar with. We’re a young and vibrant company looking to partner with equally dynamic and exciting brands that bring something new to the table,” says Baker. “In many cases—Chinggis Khan and Inish Turk Beg for example— these are completely new entrants to the travel retail channel. “Critically, we’re also very aware that travelers are keen to find products not available in their home market and are working with brandowners to develop limited editions and exclusives, such as Orbis Aged World Whiskey and Wemyss Single Cask Malt Whiskies.” With a secure and growing business in European travel retail, WOPI is now looking to further expand into both the Americas and Middle East/Asia and will be exhibiting at next year’s Duty Free Show of the Americas.
“We’re a young and vibrant company looking to partner with equally dynamic and exciting brands that bring something new to the table,” Kevin Baker, Director, World of Patria International
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Company News: Pernod Ricard Gulf
Strength squared
Strong sales from operators in the Middle East combined with high demand for Pernod Ricard’s premium spirits combine to boost the supplier’s numbers in the region BY RYAN WHITE ulf-Africa Duty Free recently had the pleasure of sitting down with David Freeborn, Managing Director of Pernod Ricard Gulf. He told us that despite some downtrading over the last couple of years in the region, the company’s focus is back on its premium offerings given the strong airport traffic and duty free sales statistics coming out of many locations in the Middle East. As with any supplier, Pernod Ricard Gulf’s concentration lies in growing ahead of operators. Given a strong stable of whiskies—inarguably the spirit of choice in the Middle East—that includes Ballantine’s, Chivas Regal and Royal Salute, it’s no surprise that Pernod Ricard has seen stellar results in the first half of the year. “From an operator perspective, Dubai Duty Free, Abu Dhabi Duty Free and Qatar Duty Free all announced very strong first six months of the year,” Freeborn explains. “The knock-on effect from our perspective is that we’ve seen good growth across our entire portfolio. If you take Dubai Duty Free as an example, their liquor business over the first
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seems poised to take an even bigger share of the premium whisky market. Ultra-premium spirits such as Royal Salute are also on Pernod Ricard Gulf’s radar. In fact, the brand is part of the supplier’s premiumization program, the primary function of which is to educate consumers and possibly facilitate a trade-up. In terms of added value for shoppers, Pernod Ricard and Chivas Regal are launching an innovative campaign in travel retail in partnership with private nightclub Le Baron. The campaign, dubbed “The Art of Hosting,” includes a limited edition gift pack, in-store displays and an exclusive website. The Chivas Regal 12 Year Old Le Baron limited edition gift-pack launches this November in travel retail outlets across Europe, Asia and the Gulf, and will reach the US in March 2012. It will retail at the standard Chivas Regal 12 Year Old price and in selected markets the bottle will come with a digital card containing a unique code that will allow travelers access to locked content and the ability to download an exclusive ten track playlist, selected and mixed by the Le Baron Club DJ. The site also showcases seven short films featuring the Le Baron gen-
“We’re constantly asking ourselves what we can do to build brand equity, drive volume and gain market share.”
David Freeborn, Managing Director, Pernod Ricard Gulf
six months of 2011 was up about 17% in value terms at retail. Obviously what we want is to be ahead of that 17%, which in Dubai Duty Free’s case we are.” While the volume brand in Pernod Ricard Gulf ’s portfolio is Ballantine’s, premium brands like Chivas Regal 12 Year Old and 18 Year Old are driving value. Freeborn says that Chivas 18 has been gaining some very good traction over the last two years or so. At this stage in the game, given increasing duty free sales in general in the region, the brand 90
tlemen, Andre and Lionel, advising users on how to be the ultimate host. In addition to the above, Chivas Regal 12 Year Old has produced 20 bespoke trunk bars—the ultimate hosting package, which will be used wholly for travel retail competition prizes. Created by prestigious French luxury trunk
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
company Pinel and Pinel, the trunk bar includes a bottle of Chivas Regal 12YO, four branded glasses, a cocktail shaker, a music docking station and an iPad 2. Other activities include a GWP of a branded trolley bag or holdall. Global activations aside, Freeborn also places great importance on developing local promotions: “Pernod Ricard Gulf also has an obligation to deliver activations that we can develop on a local basis. For example, we initiated a promotional campaign in Dubai called Chivas Art where we commissioned three local artists to give us their interpretation of Chivas 12, 18 and 25. “Travelers who purchased Chivas entered a prize draw to win one of the three works of art,” he continues. “It worked very well and gave us access to some very interesting data from the travelers that participated.” Freeborn says that shoppers in the Middle East can expect more—both globally and locally—from Pernod Ricard Gulf throughout 2012. “We’re constantly asking ourselves what we can do to build brand equity, drive volume and gain market share. Fortunately for travelers, this results in some phenomenal products and promotions. We’re looking forward to delivering more of the c same in the future.” The Chivas Regal 12 Year Old Le Baron limited edition gift-pack launches this November in travel retail outlets across Europe, Asia and the Gulf, and will reach the US in March 2012
erving ving the Gulf and beyond
Company News: Berry Bros. & Rudd Spirits
region,” Roberts says. Fortunately for BB&R Spirits, Asians are known for their love of whiskies and penchant for ultra-premium brands. Just as important is the fact that Middle Eastern travelers have a reputation of their own for being fans of luxurious brown spirits. “Dubai Duty Free’s nine-month sales to the end of September exceeded US$1 billion. This also reflects a very positive trend,” Roberts continued.
Challenges and opportunities
The increasing popularity of The Glenrothes in the Middle East puts BB&R Spirits in the curiously pleasing position of keeping up with demand for what is an exceptionally rare whisky
A happy
conundrum ulf-Africa Duty Free recently had the opportunity to speak with Johnny Roberts, Asia Business Director at Berry Bros. & Rudd (BB&R) Spirits, about the company’s business in the Middle East. Quite simply, he told us unequivocally that it’s growing. The Glenrothes, BB&R Spirit’s high-end Speyside Single Malt, has proven to be the company’s bread and butter in the Middle East and is now listed in five major airports there. With a range of expressions available and momentum gaining, Roberts sees great potential for the future of the brand in the Gulf.
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The Asian connection Likely the first thing to catch readers’ attention is the fact that Roberts handles the Asia region for BB&R Spirits. However, he notes that given the large number of Asians traveling to the Middle East, and indeed all over the world, he actually has quite a stake in making sure The Glenrothes gains a firm foothold in the Gulf. “A very positive sign is the increasing number of Asian consumers traveling through the 92
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To date only a small number of The Glenrothes Vintages has been released, such is the exceptional quality required by the distillery before deciding to bottle the liquid. As a result, each vintage is, by definition, rare and finite and only available on allocation. Each vintage has its own unique personality, and remarkably, of the vintages produced to date more than half are no longer available. The Glenrothes is distilled in some of the tallest stills on Speyside at an unusually slow rate, ensuring an elegant and fruity spirit. In addition, maturation in a combination of Sherry-seasoned and refill oak casks develops the balance and complexity of the whisky’s flavors, a mélange of ripe fruits, juicy citrus notes, creamy vanilla and hints of exotic spices that has proven very popular with whisky aficionados the world over. Indeed, this obsession with quality represents both The Glenrothes biggest potential for future growth in the Middle East and its biggest obstacle, says Roberts. “The opportunity is there for BB&R Spirits to grow presence in retail in the Middle East through the ranging of multiple expressions of The Glenrothes,” he explains. “Ironically this is also one of our greatest challenges: As a limited release Single Malt—we only use 2% of the distillery output in The Glenrothes Vintages—stocks are continually under pressure.” BB&R Spirits is currently discussing the introduction of new expressions with some regional airports in the Middle East. The important point, says Roberts, is that the balance of expressions be appropriate for each airport’s passenger profile. This way, travelers can enjoy vintages from different years.
Promoting the brand In terms of promotion, Roberts notes that The Glenrothes 10cl miniature is popular as a gift with purchase. “It is ideal to share with friends or as a gift,” he says. Given the popularity of the GWP, BB&R Spirits will continue with this promotion in the months to come in selected airports in the Middle East. BB&R Spirits also continues to focus on education through promoters in Dubai Duty Free. Roberts cites education as a very important factor in terms of enabling consumers to understand The Glenrothes, particularly in environments where sampling is not possible. The buzzword for BB&R Spirits in the Middle East certainly seems to be “potential.” While the region only represents a relatively small portion of overall sales of The Glenrothes, positive indicators coming out of the Gulf have given Roberts cause of optimism. “We believe there is good potential for future growth in the Middle East as airports emerge as transit hubs and tourists return to destinations such c as Dubai.” To date only a small number of The Glenrothes Vintages has been released, such is the exceptional quality required by the distillery before deciding to bottle the liquid
Company News: Japan Tobacco International
One of JTI’s Mild Sevenbranded smoking lounges; shipment volume of the Mild Seven brand declined 5.2% due to temporary loss of competitive pricing in Korea
Steady as she goes The Middle East plays a key role in JTI’s July to September statistics, driving global flagship brand shipment growth BY RYAN WHITE apan Tobacco International (JTI) continued to report solid revenues in the third quarter of 2011, with core net sales growing 19.3%, largely driven by strong pricing and global flagship brand (GFB) shipment volume growth. At constant rates of exchange, both core net sales and core net sales per thousand cigarettes increased by 12.5%. Furthermore, GFB shipment volume grew 5.8% driven by Russia, the Middle East, Italy and Poland. For the first nine months of the year (January to September), core net sales increased 12.8% driven by strong pricing and GFB shipment volume growth. At constant rates of exchange, core net sales grew 8.4% and core net sales per thousand cigarettes increased 8.3% during the same period. GFB shipment volume growth accelerated to 4.1% driven by Russia, the Middle East, Italy and Turkey. Year-on-year market share grew in all key markets, says JTI, namely Turkey, Italy, Taiwan, France, Russia, Spain and the UK.
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Shipment volume by cluster: July to September 2011 In South and West Europe, JTI reports that GFB shipment volume continued to grow 2.4% while total shipment volume increased 1.5% as a result of momentum in Italy being partly offset by continued industry contraction in Spain. Market share increased in Italy, France and Spain. GFB shipment volume growth accelerated to 9.3% in North and Central Europe, says JTI, driven by strong performance in Poland. Furthermore, shipment volume increased 4.2% and was supported by a favorable comparison resulting from trade inventory adjustments in 2010 in the UK. Market share grew in Poland and the UK. In JTI’s CIS+ region, GFB shipment volume showed 94
a strong increase of 5.6%, predominantly driven by Russia, while total shipment volume declined 4.4%. The GFB increase could not offset the decline in low-end local brands in Russia and continued industry contraction in the Ukraine. JTI says that market share increased in Russia. In the rest of the world, GFB shipment volume growth accelerated to 8.0% and total shipment volume increased 6.0% driven by growth in the Middle East. Market share grew in Turkey, Taiwan and Malaysia.
Global Flagship Brands For Winston, shipment volume growth accelerated to 10.1% as a result of momentum in the Middle East, Russia, Italy and Turkey. For Camel, however, shipment volume declined 2.0% due to market downtrading in South and Western Europe. Shipment volume of the Mild Seven brand declined 5.2% due to temporary loss of competitive pricing in Korea, says JTI. LD proved to be a standout, with shipment volume increasing 14.6% due largely to momentum in Russia and Poland.
Nine-month performance From January to September, core net sales increased 12.8% to US$8,466 million driven by pricing, GFB shipment volume growth and favorable currency exchange movements, reports JTI. At constant rates of exchange, core net sales increased by 8.4%. GFB shipment growth accelerated to 4.1% driven by Russia, the Middle East, Italy and Turkey. Total shipment volume remained stable at 319.6 billion cigarettes. Growth momentum in the Middle East, Italy, Romania and Taiwan was offset by lower shipments in the Ukraine, Spain and Greece due to industry contraction. In Russia, GFB volumes kept growing while c low-end local brands declined.
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
From July to September, shipment volumes of Camel declined 2.0% due to market down-trading in South and Western Europe The Middle East was a standout for Winston—the brand’s shipment volume growth grew to 10.1% due to momentum in the Middle East, Russia, Italy and Turkey
Company News: Habanos
Ramón Allones is characterized by its intense flavor, making it preferred by smokers who seek full bodied cigars
The height of perfection
Habanos has a number of new releases out this year that are sure to please even the most demanding cigar aficionados in the Middle East abanos wowed attendees at this year’s TFWA WE with a selection of new products available in worldwide duty free. Among the company’s flagship offerings for 2011 are the new Partagas Serie D no. 5, which complements the existing Serie D range, and a number of limited edition vitolas including Cohiba 1966, Short Hoyo Pirámides from Hoyo de Monterrey and Allones Extra from Ramón Allones.
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Partagas Serie D no. 5 After Habanos’ recent introduction of Partagás Serie E, a brand very much appreciated historically by smokers who enjoy intense flavors, the company has now released Serie D. The vitola of the new Partagás Serie D No. 5 (50 ring gauge x 110 mm length) formed part of the 2008 Limited Edition and Habanos notes that it was very much appreciated by those smokers who wanted to enjoy all the flavor of a Partagás Serie D. Habanos says that the character of Partagás compressed in this short format will reveal its aroma and allow for the enjoyment of its intense flavor in a format that is shorter in length and with a smoking time of around 20 minutes. According to Habanos, the cigar is “truly adapted to the new circumstances that affect the smokers around the world.”
Cohiba 1966 Cohiba 1966 (52 ring gauge x 166 mm length) is a limited edition commemorating the 45th anniversary of Cohiba, the flagship brand of Habanos. The 10 Habanos have been made totally by hand using a selection of tobacco leaves aged for a minimum of two years from the plantations of San Juan y Martínez (D.O.P) and San Luis 96
(D.O.P) in the Vuelta Abajo (D.O.P) zone of Cuba, aged for a minimum of two years. Habanos notes that the Cohiba 1966 limited edition has been produced in very small quantities. All the Habanos were made by expert rollers in Cuba in order to create this exquisite Habano for the most distinguished smokers.
Short Hoyo Pirámides
BY
RYAN WHITE
The new Partagás Serie D No. 5 (50 ring gauge x 110 mm length) is one of the many new products that will be available worldwide from Habanos
ized by its intense flavor, making it preferred by smokers who seek full bodied cigars with exquisite aromas. Connoisseurs are sure to appreciate this rare offering given that Ramón Allones, first created in 1837, is one of Habanos’ oldest brands. As with all the company’s limited editions, the Allones Extra offering is characterized by vitolas that do not appear in the usual range of the brand portfolio, and which are distinguished by the careful selection of leaves—wrappers, fillers and binders—that have been aged for a period c of at least 2 years.
The Short Hoyo Pirámides limited edition is designed for the best connoisseurs and enthusiasts of the Hoyo de Monterrey brand. Short Hoyo Pirámides is a Habano of ideal dimensions, making this limited edition an invaluable gift for those who prefer Habanos of lighter flavors and for newcomers to the world of Habanos cigars. The smooth and complex flavor of the blend and the delicate aroma can now be enjoyed in the new FiguBesides being lovers of luxury products in general, rado format. many Middle Eastern travelers are particularly As can be expected, all the fond of Habanos cigars. Gulf-Africa Duty Free Habanos in this limited edition were spoke with Ana López García, Director of Marketing made completely by hand by expert at Habanos, about what these new releases mean rollers using tobacco leaves carefor the company’s business in the Middle East. fully cultivated and selected. The “The duty free market, and specifically travel retail Short Hoyo Pirámides is currently in the Middle East, is very important for Habanos,” available worldwide.
The importance of Middle Eastern duty free
Allones Extra Allones Extra (44 ring gauge x 143 mm length) marks the first time that Ramón Allones has been given a limited edition treatment. Habanos notes that the brand is character-
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
Lopez Garcia told us. “In fact, travel retail represents about 25% of our sales in the Middle East. “Duty free shoppers, and cigar aficionados in particular, love to see new, exciting luxury products and I think these latest releases are perfect for the traveler who wants to pick up something truly unique.”
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4
Tobacco News Arnold André
releases new products available in duty free Apart from the recent formation of the Tobacco House of Sweden, one thing that’s certainly helping Arnold André remain competitive is its stable of bestselling products. The company recently released Handelsgold Sweet Chocolate Cigarillos. While chocolate is certainly a popular flavor, Arnold André also offers other Handelsgold taste variations such as Peach, Cherry, Vanilla and Classic. Arnold André reports that international sales have tripled since the introduction of Handelsgold Sweets. The attractive price, trendy aromas and attention grabbing presentation at the POS have reportedly resulted in price-sensitive smokers spontaneously picking Handelsgold Sweets. The Sweets are in especially high demand in the Netherlands, Sweden, Greece and Eastern Europe, says Arnold André, and Austrian and Swiss smokers have also acquired a taste for them. The new Sweet Chocolate flavor has a sweetened mouthpiece, a pleasurable chocolate aroma and a dark wrapper. The product is available in a 5-pack for a very competitive price. Depending on available space, there are several forms of merchandising presentation available: a large Handelsgold Tower, a Handelsgold dispenser, a counter display or a shelf unit. “The dispenser has been a particularly effective way of selling Handelsgold Sweets,” explains Konstanze Marth, Export Manager at Arnold André. “It brings to mind a dispenser in some discount or bulk stores. Combined with the very competitive price, this means that a lot of people reach in a grab a cigar or two when at the counter.” In addition to Handelsgold, Marth asserts that Clubmaster Minis are still performing very well. The Clubmaster Mini line includes Superior Vanilla, Mini Vanilla Filter, Mini Sumatra and the recently released Clubmaster Chocolate variety. “A lot of competitors have incorporated chocolate in some way or another, but it’s very hard to get a good flavor,” Marth explains. “With the new chocolate-flavored Clubmaster Minis, we worked really hard to get a pleasing chocolate taste and aroma. The product has already proven itself domestically in Germany and it is now available worldwide.
Clubmaster Mini cigarillos continue to be one of Arnold André’s most successful ranges; a chocolate flavored variant was recently introduced (Pictured: Clubmaster Mini Vanilla) Handelsgold Sweet Chocolate Cigarillos are the latest flavored product in the range; other bestsellers from Handelsgold include Peach, Cherry, Vanilla and Classic varieties
J. Cortès releases new travel retail exclusive packaging
Emmanuel Ghesquière, Export Manager at J. Cortès, told GulfAfrica Duty Free recently that the company has released two new travel retail exclusive box sets for its Sumatra and Dominican wrapper cigarillos. Each box set contains 5 packs, with 10 cigarillos in each pack. “We’ve had a strong presence at duty free trade shows in recent years and to continue getting attention in this market, we developed a travel retail exclusive presentation,” Ghesquière said. The box sets were revealed at the TFWA WE in Cannes and various operators from across the Middle East have already shown interest. Ghesquière is also planning on being present at next year’s IAADFS exhibition in Orlando, noting that last year— his first time at the show—was very positive. “Innovation is extremely important, especially in this market,” Ghesquière told us. “Travelers around the world can expect more innovative duty free-specific products from J. Cortès in 2012.” 98
GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011
The new travel retail exclusive 5-packs from J. Cortès; both the Sumatra wrapper (left) and Dominican wrapper (right) varieties are shown
The Fifty-One starter kit will retail in duty free for about US$100; a refill cartridge costs US$3 and each can last as long as two pack of traditional cigarettes
Publicly traded pioneer leads electronic cigarette industry
Davidoff sees
success with Puro D’Oro Momentos Davidoff tells Gulf-Africa Duty Free that Puro D’Oro Momentos have received a warm reply in duty free since their launch late last year. Davidoff calls the cigars perfect for “aficionados who, despite being pressed for time, do not wish to forgo the exquisite experience of a spirited and emphatically aromatic Dominican Puro.” Puro D’Oro Momentos boast Davidoff Yamasá wrapper leaves in combination with Dominican binder and the filler tobaccos, making for a spicy, full-bodied smoke with hints of coffee and spices. Davidoff’s Puro The Puro D’Oro cigar line continues to generate D’Oro Momentos strong demand among passengers in the Middle East and Gulf markets. Indeed, the product has been launched via Dubai Duty Free, ATU Duty Free, Syria Duty Free and many others. More channels will come online as the year progresses, asserts Davidoff.
Since 2008, electronic cigarettes have become increasingly popular as an alternative to smoking traditional tobacco cigarettes given the fact that e-cigarettes can be used virtually anywhere. At the forefront of this burgeoning movement is pioneering ecigarette company Vapor Corp. [OTCBB: VPCO], which offers a range of e-cigarette brands—from the rechargeable Fifty-One brand to the disposable Krave brand—to satisfy the varied needs of virtually any smoker. “Vapor Corp.’s e-cigarette brands are distinct from many other e-cigarettes available today, both in terms of the quality and the cutting-edge technology employed,” says Adam Frija, Director of Business Development at Vapor Corp. “Our electronic cigarettes do not emit any second-hand smoke. Instead, our products emit an odorless vapor. Our electronic cigarettes look like, taste like and feel like a cigarette, but they aren't cigarettes." The filter of the Fifty-One contains flavoring, nicotine and an atomizer that essentially vaporizes the nicotine. When you inhale, a microcomputer activates the atomizer and the battery (contained in the white part of the e-cigarette). The end of the Fifty-One even glows when you puff it. Over the last 3 years, Vapor Corp. has crossed into virtually every distribution channel available in the US, such as convenience stores, tobacco shops and supermarket chains. The company also sells direct-to-consumer on its website and has carved out a very respectable niche selling in mall kiosks throughout the US. The worldwide duty free channel is attractive to a company like Vapor Corp. for two main reasons, says Frija: “First of all, airports are very high-traffic areas for retail, which is what any company looks for. Furthermore, e-cigarettes are a perfect fit for the duty-free customer, for the busy traveler on the go. Vapor Corp. has increased its business exponentially year over year since its inception and I have no doubt that both the traveling public and the duty free industry will see immense value in our brands.”
KT&G sets its sights on the Middle East
Given the success of its cigarette brands in Asia duty free, KT&G’s Kelly Song tells Gulf-Africa Duty Free that high-end lines such as ESSE and BOHEM may be a good fit for the Middle East
In a recent conversation with Kelly Song of KT&G, Gulf-Africa Duty Free learned that the company has set its sights on the Middle East for possible future expansion plans. “Our products have proven to be extremely popular in Asia, both in duty free and domestically,” said Song. “We feel that the Middle East may be a good fit our high-quality cigarette lines.” While no concrete plans have yet been laid, KT&G says it remains open to speaking to operators in the Middle East about the possibility of listing its products in the region. Most recently at this year’s TFWA WE in Cannes, KT&G featured the flagship ESSE and BOHEM brands as well as the new brand RAISON. KT&G also showcased the ESSE Compact Slim and ESSE AURA (flavored superslim) brands. Along with its super-slim brand, KT&G is targeting young adult consumers with king size RAISON and BOHEM cigarettes. ESSE sales volume and brand awareness has been growing strongly, KT&G says. ESSE is now sold in more than 40 countries in the super-slim category, appealing to young, trendsetting customers in their 20s. As the female smoker category grows and health awareness spreads, the super-slim, lowtar cigarette market is growing, helping to drive ESSE sales. Selling well in South Korea, the RAISON brand is targeted at consumers in their early 20s. “RAISON provides a clean and smooth fulfillment of smoking through dual charcoal filter and herb flavor,” KT&G says. BOHEM is made with 30% premium cigar leaves and is designed for “delicate smokers who prefer sweet and profound aromas.” The vintage style package design reflects “smokers with a bohemian spirit who have a chic style, professional careers and self-confidence.” www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING
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New & Notable BY
KIM CARRERA
LIQUOR AND TOBACCO Il de Ré Cliffside Cellar Company: Camus Wines & Spirits Description: Cliffside Cellar is drawn from eaux-de-vie, grown, distilled and aged on the Island of Ré, the most westerly part of Cognac AOC. Distinctively marine and mellow, Cliffside Cellar undergoes final maturation in a cellar deep in the Fort de la Prée
Davidoff Puro d'Oro Momentos Company: Oettinger Davidoff Group Description: Davidoff Puro d'Oro Momentos are hand-rolled in Davidoff Yamasá wrapper leaf, which in combination with the Dominican binder and the filler tobaccos makes for a spicy, full-bodied smoke with hints of coffee and spices
Prince Hubert de Polignac Company: H.Mounier Description: The Polignac Cognac House has introduced a brand new range that includes VS, VSOP and XO cognacs. The packaging contains a new striking logo that evokes two intertwined swords, symbolizing the noble and historic values of the brand
Bottega Gold company: Distilleria Bottega Description: Bottega Gold is a special Prosecco, which features an aromatic bouquet that is emphasized by the sparkling of the fresh mist, giving the wine an intriguing taste of Golden apple, pineapple and mango
Balmoral Dominican Selection Churchill Tubos Company: Agio Cigars Description: The cigars are finished with a Connecticut seed and a light-brown wrapper from Ecuador. Each cigar is individually packed in cellophane to optimize humidity control and is presented in a tin tube for both protection and convenience
CONFECTIONERY Neuhaus Dessert Collection Company: Neuhaus Description: This collection consists of delicious flavors such as a crème brûlée, sabayon, tarte tatin, tiramisu and moelleux au chocolat chocolate cake with a creamy centre
Cocoa Truffles ballotin 200g Company: Guylian Description: Guylian presents the new 200g Cocoa Truffles ballotin. The collection contains 23 pieces of high quality Belgian chocolates, perfect for sharing
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Unzip a new skin feeling that lasts, in one stroke. Silk ĂŠpil 7 Dual Epilator s
Epilator with
Braun GmbH, Dept. IAM-DF, Frankfurter StraĂ&#x;e 145, D-61476 Kronberg, Germany, Tel.: +49 6173 30 2221, E-mail: mellin.k@pg.com, www.braun.com/global
New & Notable HANDBAGS AND TRAVEL ACCESSORIES
CONFECTIONERY Toffifee
2012 Olympic mascots and toys
Company: Storck Travel Retail Ltd Description: A crunchy hazelnut in caramel with nougat cream and a drop of dark chocolate on top. A combination that's perfect for every taste
Company: Whitehouse Travel Retail Description: Whitehouse Travel Retail has picked up the exclusive agreement to distribute Olympics 2012 mascots and toys in UK travel retail. The collection includes a full range of mascots, plush and collectibles including playing cards, keyring and pen sets
Mentos 3-layer packs Company: Perfetti van Melle Description: Designed to deliver a longer lasting flavor, a unique chewing experience and lasting freshness through the textured gel, the middle layer Green tea extracts help purify the breath. Available in pure fresh mint and fruity fresh red apple, pineapple and mango
Spring/Summer 2012 Collection Company: Furla Description: The collection mixes bags with shoulder straps to create unique pieces for the womanâ&#x20AC;&#x2122;s wardrobe
WATCHES Jacques Farel Kids Gift Packs Company: Harston Group Description: The Champion set is a perfect combination of fun and style for boys. The set includes five interchangeable straps; available with a trendy silver dial and is water resistant up to 30 meters
Elisa Company: Fratelli Rossetti Description: An authentic expression of the Fratelli Rossetti identity, Elisa carries the signature of the welt, a discrete hallmark which is an intentional reference to the shoe world
Jacques Lemans Porto for Men Company: Harston Group Description: These sporty chronographs feature a striking dial design and exudes quality with its solid stainless steel case, special hardened mineral crystex and a high grade caoutchoucgrain leather or rubber strap with Jacques Lemans lettering
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Spring/Summer 2012 Collection Company: MCM Description: MCMâ&#x20AC;&#x2122;s Spring Summer 2012 Collection repositions the brand at a new premium level with enhanced quality materials and improved detailing throughout. This color inspired collection offers a wider choice of styles and designs, creating an offer that caters to all profiles and age ranges
never look your age again
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