Gulf-Africa Duty Free & Travel Retailing by Paramount Publishing Ltd.

M AY 2 0 1 2 • T F WA A P • V O L 2 2 , N O 1

TFWA AP 2012

ADAC pushes p. forward

Dufry’s strong p. presence

Blessing enters TR p.

New & Notable p.

Letter From The Editor

Mending process

espite the ongoing challenges faced in many parts of the Middle East, there are those that are enjoying a slow but steady mending process. Reports from operators out of Egypt and Tunisia, for example, are replete with optimism and a sense of progression—albeit slower than many would perhaps like—toward an end goal that will in no uncertain terms change the lives of millions. In other regions of the Middle East, including the Gulf, airport authorities and operators are pushing ahead with impressive expansion plans that raise aviation to ever higher standards. At the forefront is Abu Dhabi Airports Company (ADAC) with their Midfield Terminal Complex (MTC), planned for completion in 2017. Not only will the MTC terminal building be the largest in the Emirate of Abu Dhabi, it will also be one of the region’s most architecturally impressive structures. Totaling 700,000 square meters in size and visible from a distance of more than 1.5 kilometers, the building boasts a number of firsts. Its central space is comparable to three full-sized football fields, and its ceiling reaches 52 meters at its highest point. Another highly anticipated development in the region is the new Doha International Airport. Certainly none would disagree that Qatar Duty Free has done a stellar job of managing spatial restrictions in its current home to continue growing at an impressively rapid clip, most recently running the successful and innovative Swing Surprises promotion and releasing the newest Shopping Extravaganza in-flight duty free magazine. Apart from high hopes for the new airport, watching how Qatar Duty Free grows into its increased retailing space will no doubt be one of the more exciting stories of the coming months. Another Emirate, Dubai, continues to attract tourists and expats alike. The latest statistics released by the Dubai Statistics Centre (DSC) show a significant increase in population in just the last few months. According to the population clock on the DSC website, there has been an increase of 27,000 since the end of 2011, when the population hit the two million mark. Though Dubai’s inhabitants now number just over two million, this swells to more than three million during each workday. This clearly shows that Dubai is head and shoulders above other Emirates in terms of job opportunities and quality of services. As always there are ups and downs, which is a pattern that the Middle East—and by extension the duty free industry specifically—knows well enough. However, we take heart in the fact that managing setbacks and finding a way to continue growing are talents that both the travel retail industry and the region in general clearly possess. Kind regards,

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. May 2012, Vol. 22, No.1. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2012 Global Marketing Company Ltd.

GULF-AFRICA 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 CONTRIBUTORS Andrew Brooks

ADVERTISING SALES ADVERTISING & MARKETING MANAGER Kim Carrera kim@dutyfreemagazine.ca SENIOR REGIONAL MANAGER Neelma Hasan

Hibah Noor Editor hibah@dutyfreemagazine.ca

nhassan@globalmarketingcom.ca CIRCULATION & SUBSCRIPTION MANAGER Deepa J deepa@globalmarketingcom.ca

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

MAY 2012 • VOL 22, NO 1

Contents 6 8

IN BRIEF Qatar Duty Free celebrates success of Swing Surprises ■ Kuwait's hotel occupancy dips in January ■ Dubai International’s passenger traffic surges by 19% in February

Pushing forward

A strong presence

More than numbers

OPERATOR NEWS: IDFS

Reaching goals Half a year on from Revic Tantoco’s appointment as General Manager of IDFS, the operator implements a number of new processes to better serve consumers

AIRPORT AND AIRLINE INVESTMENT

Investing in the future Given IATA’s recent nod to the Middle East for pushing aviation forward, Gulf-Africa Duty Free examines innovations in the region on the part of airports and airlines alike

THE EDRINGTON GROUP

“Innovation, education and premiumization” In addition to his role in the Americas, André de Almeida is appointed to develop The Edrington Group’s premium brands in the Middle East, North Africa and Turkey

LIQUOR REPORT

OETTINGER DAVIDOFF

Liquid gold Specialty spirits find a home in a market known for its upscale tastes

OPERATOR NEWS: DUBAI DUTY FREE

Gulf-Africa Duty Free takes a look not only at Dubai Duty Free’s Q1 sales stats, but also at what makes the operator one of a kind in travel retail

For Mars ITR’s Jack Tabbers, the favorite category in retail can still benefit from more focused execution

OPERATOR NEWS: DUFRY

Gulf-Africa Duty Free examines Dufry’s 2011 numbers and explores what’s in the pipeline for the Group as a whole and Dufry Sharjah specifically

Room to grow

TOP STORY: ABU DHABI AIRPORTS COMPANY

Even as Abu Dhabi Airports Company looks to 2017 and the Midfield Terminal Complex opening, the operator tells us that in the interim the shopping experience will continue to evolve

MARS ITR

BLESSING

Blessing takes the next step The gift chocolate company’s high-end custom niche is a good fit for the duty free market

New products, new ideas Davidoff’s new store concept, backed by iPad software, matches the pace of its new product launches

CROSSINGS INTERNATIONAL

Growth curve Crossings International benefits from efficiencies of scale and quick turnaround

NEW & NOTABLE Aloha Mix ■ Chupa Chups Binoculars ■ Skin Doctors Range

In Brief

As a part of the promotion, customers spending US$200 or more got two chances to try their hand at an exclusive golf simulator in addition to a chance to enter into a raffle draw to win a Qatar Duty Free gift voucher worth US$20,000

Qatar Duty Free celebrates success of Swing Surprises Qatar Duty Free recently launched its second customer promotion of the year, “Swing Surprises,” at Doha International Airport. As a part of the promotion, customers spending US$200 or more got two chances to try their hand at an exclusive golf simulator installed in the departures area of Doha International Airport in addition to a chance to enter into a raffle draw to win a Qatar Duty Free gift voucher worth US$20,000. Furthermore, customers who tried their hand at the “Longest Drive” or the “Nearest to the Pin” competition running at the Golf Installation got instant discount vouchers for their subsequent purchases. “Getting customer engagement with an activity related promotion in an airport environment is a tried and tested method of extending your customer service parameters and we have managed to successfully implement it with our new Swing

Surprises promotion at Qatar Duty Free. With a majority of boarding gates situated on the first level of Doha International Airport, we decided to have this golf simulator placed close to these gates so as to create some theatre and excitement amongst all passengers at Doha International Airport,” says Keith Hunter, Senior Vice President, Qatar Duty Free. “When we first saw this golf simulator presented to us by Yam Seng Ltd from Singapore, we instantly knew that this had a potential of being a real crowd puller,” Hunter continued. “We immediately expressed our interest to their Head of Marketing Mr. Karan Tuli to plan their first duty free installation with us. As we gear up to move to our new airport, we always endeavor to try different avenues such as this golf simulator and review our customers’ feedback, so we can consider these activities as an important part of our retail offer at the New Doha International Airport.”

Kuwait's hotel occupancy dips in January According to the Kuwait News Agency (KUNA), a specialized economic report by Tameer Real Estate Company showed a downward trend in the hotel sector in Kuwait for the month of January, with the occupancy rate dropping by 3.3 percentage points to settle at 58.1%. The report also indicated that the average daily room price dropped 3.5% during the same month to reach KD 58 (US$208).Despite the yearon-year drop, KUNA noted that overall hotel performance between January 2011 and January 2012 rose 0.7% to 59.3%.

Dubai International’s passenger traffic surges by 19% in February Dubai International’s monthly passenger traffic surpassed the dubai operations. The launch of Emirates Airline’s flights to the 4.5 million mark for the second consecutive month this year African destinations of Lusaka and Harare in February has driwhile freight volumes witnessed an upturn after months of flat ven Africa up the list (35.9%), closely followed by Australasia (+29%) growth. Passenger traffic surged 19% in February—a 16-month and Eastern Europe (+28%). “February marks the twelfth consecutive high—to reach 4,561,147 passengers compared to 3,831,385 recorded in the same month in 2011. This follows the airport’s month with passenger traffic exceeding the record traffic of over 4.8 million passengers in January, propelling four million mark, and with the growth the year to date (February) passenger traffic by 16.4% to 9,413,286. expected to maintain momentum in the The AGCC continued to top the list of regions with the largest coming months we are well on track to increase in total passenger numbers in February (+150,643 pas- achieve the targeted 56.5 million passenger trafsengers), followed by the Indian subcontinent (+140,322), West- fic for 2012,” said Paul Griffiths, CEO of ern Europe (+136,320) and Africa (+110,561 passengers). The Dubai Airports. “The completion of downward trend on Middle Eastern routes continued in Febru- the Concourse 3 project by the end ary (-23,804 passengers) because of the instability in the region. of 2012 is in line with this forecast In terms of percentage passenger growth, South America and will expand Dubai Internahas remained the strongest market (+151.4%), owing to Emirates tional’s capacity at the right time, Airline’s new routes to Rio de Janeiro and Buenos Aires, followed ensuring that our growth continby Russia and CIS (+41.7%) mainly due to the expansion of fly- ues unhindered.”

“February marks the twelfth consecutive month with passenger traffic exceeding the four million mark, and with the growth expected to maintain momentum in the coming months.” Paul Griffiths, CEO of Dubai Airports 6

GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2012

7KH

21/< 62/87,21 WKDW '(/,9(56 3DUWQHUVKLS ZH OLVWHQ WR RXU DLUOLQH SDUWQHUV DQG ZRUN WRJHWKHU 6KDULQJ NQRZOHGJH DQG H[SHULHQFH WR RSWLPLVH RSSRUWXQLWLHV (WKLFDO WUDGLQJ DQG WUDQVSDUHQF\ 3URYHQ ,7 VROXWLRQV LQFOXGLQJ PXOWL PHGLD VDOHV FKDQQHOV 1RQ WUDGLWLRQDO VDOHV YLUWXDO SURGXFWV KRPH GHOLYHU\ SUH RUGHU IRRG EHYHUDJH &RPSUHKHQVLYH FUHZ WUDLQLQJ DQG PDQDJHPHQW UHSRUWV

7+( 8/7,0$7( ,1 )/,*+7 5(7$,/ (;3(5,(1&(

,I \RX DUH LQWHUHVWHG WR Ã&#x20AC; QG RXW PRUH SOHDVH FRQWDFW PD[ ZLOOLDPV#WGI XN FRP

Top Story: Abu Dhabi Airports Company

Even as Abu Dhabi Airports Company looks to 2017 and the Midfield Terminal Complex opening, the operator tells us that in the interim the shopping experience will continue to evolve RYAN WHITE BY

espite continued unrest in pockets of the Middle East, strong passenger numbers and continued investment by a number of airport authorities and operators make it clear that hopes are still high for the future of aviation in the Middle East. At the forefront of the efforts to raise aviation to the next level in the region is Abu Dhabi Airports Company (ADAC) and its Midfield Terminal Complex (MTC), planned for completion in 2017. The MTC’s terminal building will be the largest in the Emirate of Abu Dhabi and one of the region’s most architecturally impressive structures. It will be 700,000 square meters in size and visible from more than 1.5 km away. The central space of the terminal building will be able to hold three full-sized football pitches and will feature a 52-meter-tall ceiling at its highest point. The complex’s retail outlets will be set around an 8,400-square-meter indoor park—

a first for the region—that will host Mediterranean plants at its center and desert landscapes at its edge. Associated support buildings will take up an additional 800,000 square meters, ADAC reports, and will include access to 16–20 aircraft parking stands dedicated to cargo. “The MTC budget has been approved by the Government and the main contractor will be announced imminently,” Dan Cappell, Senior Vice President Commercial at ADAC, told Gulf-Africa Duty Free in early April. “In respect of the commercial work, we started this over three years ago and will be announcing our plans in due course. This is an incredible project that will feature 28,000 square meters of commercial space.”

Staying busy While MTC will no doubt be impressive, its completion is five years off. Richard Isaac, Retail Development Manager at ADAC, tells us that the company’s prime

concerns currently are to ensure that travelers’ shopping needs are being constantly exceeded and that Abu Dhabi International Airport continues to grow in line with passenger numbers in the lead-up to MTC. The latest step in the operator’s ongoing evolution is the recently renovated Terminal 1. The project was carried out over 12 months as part of the programme to expand the airport’s 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. “When Terminal 1 was built there was no duty free—it’s 30 years old. As such, it wasn’t designed with retail in mind,” Isaac explains. “The renovations brought Terminal 1 up to parity with Terminal 3 and has established some of the top retailing standards in the region.” The renovations have also given ADAC a true F&B offering in Terminal 1, which Isaac

Pushing forward

GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2012

asserts was something the space never really had before. Travelers passing through T1 at Abu Dhabi International can now find Costa Sky Bar; a McDonald’s; and a Bricco Café, which is an Italian-themed restaurant. “The refurbishments have really brought to Abu Dhabi what passengers expect from a worldclass airport,” Isaac says. In addition to retail and F&B, at press time ADAC was preparing to open six new hotel reception desks at T1. “It’s another way that we’re offering passengers more convenience at Abu Dhabi Airport,” Isaac asserts. Desks were already in place for Emirates Palace and Jumeirah Group when the refurbishments were completed in the fourth quarter of last year and more hotels will be given dedicated spaces once the new desks are opened.

month of February, totaling 9,263 movements. This growth is due to the new destinations for Etihad, ADAC reports, including the five-times weekly service to Shanghai in China, and the operation of new airlines including Safi Airways of Afghanistan, which now operates four weekly flights to Kabul. The report also showed that cargo shipments are also on the rise, increasing by 13.2% in comparison with the same period last year, with the airport handling 42,860 tons of cargo. Just months after the completion of the new T1, it’s already clear that the refurbishments are a success. Indeed, sales across

Strong passenger numbers, stronger sales Abu Dhabi Airport’s most recently released passenger statistics (February 2012) indicate a double digit growth in passenger traffic of 24.5%, with over one million (1,080,457) passengers passing through the airport for the 8th consecutive month. Aircraft movements also continued to steadily grow with a 3.8% increase for the

the terminals are growing well ahead of the already impressive passenger numbers. “Year to date the first quarter has seen traffic grow +20 % year on year, with retail sales growing a staggering 32.2%, which is an excellent performance,” Cappell says. “The retail growth has been across all categories and reflects the refurbishment of Terminal 1, the width and breadth of the offer at Abu Dhabi International Airport, the value for money we offer to our customers and the ever increasing amount of exclusive product launches and marketing activity our retail partner DFS brings to the business.”

“Year to date the first quarter has seen traffic grow +20 % year on year, with retail sales growing a staggering 32.2%, which is an excellent performance.” Dan Cappell, Senior Vice President Commercial, ADAC

The Midfield Terminal Complex budget has been approved by the Government of Abu Dhabi and the main contractor will be announced in the weeks ahead

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

Top Story: Abu Dhabi Airports Company The Terminal 1 project was carried out over 12 months as part of the program to expand the airport’s capacity and meet the anticipated traffic growth while completing longer-term expansion plans

Helping to grow aviation in the region Given the above statistics, it’s clear the role that passenger numbers play in any operator’s retail growth. As such, ADAC recently organized and hosted the Abu Dhabi Air Expo. The total value of deals signed at the region’s first general aviation exhibition reached above AED 1 billion (US$272.2 million). The show saw more than 10,700 visitors and 105 exhibitors from local, regional and international companies. Abu Dhabi Air Expo witnessed several big announcements, including ADAC’s own agreements with Falcon Aviation Services and R Offices. The show also inaugurated the AOPA UAE as the 70th local AOPA to join the International Association of Aircraft Owner and Pilot Associations (IAOPA).

More to coMe ADAC tells Gulf-Africa Duty Free that more enhancements to the airport are in the works for this year. The company is currently starting work on the next stage of its capacity enhancements by adding a new arrivals building, a transfer security processing unit and a 20-gate bus gate facility due for completion by the end of this year. Cappell tells us that retail, of course, will be a feature of the new facility: “This will add another 4,000 square meters of commercial space, including business class lounges,” he says.

“The renovations brought Terminal 1 to parity with Terminal 3 and has established one of the top retailing standards in the region. This is reflected in the sales performance.” Richard Isaac, Retail Development Manager, ADAC Key developments at the event included Qatar Executive being appointed the newest Bombardier Authorized Service Facility in the Middle East; the announcement of Jet Aviation as “The Best Handler of the Year 2011” by Jepessen; Abu Dhabi Aviation signing an agreement with Mubadala to establish an aviation simulation center and also signing with Agusta Westland to launch an aircraft maintenance centre; Saudi Private Aviation (SPA) confirming that it is now officially the largest single customer of Dassault Falcon 7X aircraft after taking delivery of its fourth trijet; the TBM 850 aircraft— the world’s fastest turboprop—being showcased; The Ministry of Interior showcasing an air ambulance; and Saudi pilot Sami Al Refai revealing that he will be the first Arabian pilot to make a tour around the world starting from Al Bateen Executive Airport in Abu Dhabi next month. The Air Expo also assisted in creating an opportunity to engage the general public and community in its activities, as the show wel-

GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2012

comed more than 600 students from various colleges and institutions in Abu Dhabi invited by ADAC to view what the aviation industry has to offer to the younger generations. “This was the first private jet aviation expo in the Middle East and it was a huge success,” says Cappell. “Delegates from around the world attended with the top brands in private aviation exhibiting some fantastic new innovations.” Isaac notes that despite the great successes ADAC has achieved in recent years, the company isn’t resting on its laurels and understands that perpetual innovation is the way forward in what is a very competitive industry: “Even before we get to MTC, we have to ensure that we’re able to cope with the growth of Abu Dhabi and the airlines. We know that we can’t stay as we are even in the space between now and when MTC is completed. There are already additional enhancement plans that are being looked into to enable us to continue to offer a better experience to passengers over c the next few years to get us to 2017.”

Shopping at Qatar Duty Fr Free is a pleasant and relaxing relaxing experience. W With ith a wide collection of the worldâ&#x20AC;&#x2122; worldâ&#x20AC;&#x2122;ss finest brands, enticing promotions, promotions, and exciting raf raffles, fles, now shopping at Qatar Duty Fr ee e is your destination of choice. Y ou o can win One Million US Dollars in cash or a Luxury Car in our raf fle Free You raffle draws. T ickets for our raf fle draws may be bought online, and will be deliver ed to the addr ess of your choice. Tickets raffle delivered address As one of the fastest gr owing Duty Fr ee operations in the rregion, egion, we ar e committed to of fering you good service and growing Free are offering value for money money.. Our friendly multi-national staf stafff members ar are e available to assist you at all times.

Now you can use your Qmiles to pay for Free at Qatar Duty Free. your Duty Fr ee e shopping s Free. card Just show your Privilege Club car d at the checkout counter and pay for all your shopping with Qmiles.

www www.qatardutyfree.com.qa .qatar dutyfr ee.com.qa

One of Dufry’s many shops at Sharjah Airport

Operator News: Dufry

The year ahead

A strong presence

Gulf-Africa Duty Free examines Dufry’s 2011 numbers and explores what’s in the pipeline for the Group as a whole and Dufry Sharjah specifically BY RYAN WHITE ust prior to publication, Dufry announced that in 2011 the Group generated a turnover growth of 16.5% on constant FX rates, and gross margin went up for the eighth consecutive year to 58.2%. EBITDA increased by 26.9% on constant FX rates to CHF 435.5 million and EBITDA margin improved by 100 basis points to 14.1%. Like-for-like growth contributed 7.5% to turnover growth in 2011. In a statement

added close to 10,000 square meters to its overall retail space by adding new locations and expanding existing operations. Main developments are the addition of 2,500 square meters in Mexico, 700 square meters in Brazil, 450 square meters on Roatan Island in Honduras and around 6,000 square meters in 25 locations in the US. In regard to operations in Sharjah specifically, COO of Dufry Sharjah Erik van der Veen told Gulf-Africa Duty Free that 2011 was a

“The integration and ramp up of the new businesses will be a priority for 2012 to generate synergies and to maximize cash generation.” Julian Diaz, CEO, Dufry Group

Dufry noted that this “is a very strong performance considering the negative impacts of the political turmoil in North Africa, the snowstorms in the US in January 2011 and the effect of the bankruptcy of Mexicana in Mexico.” Acquisitions contributed 6.7% to turnover growth. In August 2011, Dufry acquired airport duty free operations in several emerging markets, namely Argentina, Uruguay, Ecuador, Armenia and Martinique, as well as a logistics platform in South America. With the acquisitions, Dufry further strengthened its position in the travel retail market and further diversified its operations into emerging countries. “The new operations provide substantial synergy potential, and its realization will contribute to EBITDA in the next years,” the Group said. The expansion of Dufry’s operations through winning new concessions and expanding existing locations generated a net increase of 2.3% in turnover. Dufry 12

good year for operations in the region: “We had some great months in 2011, especially the months where people historically travel a lot, such as Ramadan. Spend per PAX was good. “Some changes on the shop floor were also made, including moving the cash desks and creating a bit of additional space both for ease of movement and promotional floor units,” he continued. “This, combined with the passenger behavior, certainly helped to increase penetration and footfall.”

GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2012

“For 2012, we already laid the groundwork to expand our footprint in Eurasia,” says CEO of Dufry Group Julian Diaz. “We signed an agreement to enter the Indian market where we will operate an innovative concept named Hudson News Café in the Delhi Metro and we also signed a contract to operate duty paid retail at Chengdu airport in China. Last but not least, we also acquired 51% of a local travel retail operator at Sheremetyevo airport in Moscow in January 2012. “The integration and ramp up of the new businesses will be a priority for 2012 to generate synergies and to maximize cash generation,” he continued. “Both will contribute to a significant deleveraging, which in turn will provide room for further growth. “As for growing organically, prospects remain healthy with around 5% international global passenger growth expected for 2012. Having said this, on a regional level the deviation from this number can be significant. In Northern Africa, the transition to new political structures that started a year ago will continue and if this can be managed in an orderly fashion, growth prospects for this region are intact.” As for future plans at Dufry Sharjah, van der Veen tells Gulf-Africa Duty Free that the company is planning a new warehouse on a plot of land measuring 9,500-squaremeters near Sharjah Airport. The company’s current warehousing facilities are spread across three different locations on the airport grounds. The new building will effectively consolidate warehousing operations into one location, improving efficiency and bringing down costs. “We’ll also be implementing logistical software that will help to locate product and do inventory,” explained van der Veen. “The way it is now, doing inventory takes a long time. The new warehouse will considerably speed up the process. In general, a lot of the day-to-day activities related to the c warehouse will become a lot easier.”

“We had some great months in 2011, especially the months where people historically travel a lot, such as Ramadan. Some changes on the shop floor were also made. This certainly helped to increase penetration and footfall.” Erik van der Veen, Deputy COO, Dufry Sharjah

Operator News: Dubai Duty Free

More than numbers

Dubai Duty Free’s Gold Shop in Terminal 1 of Dubai International Airport—the category performed well for the operator during Q1 2012

Gulf-Africa Duty Free takes a look not only at Dubai Duty Free’s Q1 sales stats, BY RYAN WHITE but also at what makes the operator one of a kind in travel retail ubai Duty Free recently announced first quarter sales of US$390 million, representing a 14% increase over the same period last year and signaling a positive year ahead for the airport retailer. Sales across all three terminals showed an upward trend, with increases of 15% year to date in Terminal 1, a 21% increase in Terminal 2 and a 12% increase in sales in Terminal 3, which is dedicated to Emirates Airline. Liquor, Perfume and Gold held on to the top three spots category-wise in the first quarter of the year. Perfume sales reached US$58 million, representing a 22% increase in sales over the first quarter in 2011. Other categories showing robust growth included Confectionary, up by 20% to reach US$31 million. Electronics rose by 19% to US$29 million, while Cosmetics sales rose by 23% to reach US$26 million. Commenting on the sales so far this year, Colm McLoughlin, Executive Vice Chairman of Dubai Duty Free, said: “We have had a very good start to the year and are very much on track for our sales forecast of US$1.64 billion. Terminal 3 continues to be the biggest in terms of accumulative sales and accounts for almost 58% of our total turnover. However,

the average spend of passengers in Terminal 1, which accounts for 35% of sales, is higher. “The continued growth of flydubai has provided us with an opportunity to boost sales in Terminal 2, which accounts for over 7% of our sales and is growing. Overall the Chinese passengers are continuing to dominate the sale of high-end products, such as luxury watches and fashion. However, they are also buying more midrange brands across these categories,” he added. Recruitment at Dubai Duty Free continued in the first quarter of 2012 with 230 new sales assistants appointed, bringing the level of employees to 4,013. A recent exhibitor at

the UAE Careers Fair, Dubai Duty Free has an ongoing policy of recruiting UAE Nationals and says it will continue with its recruitment plans for the remainder of the year. Of course, in addition to being the single biggest airport retailer in the world, Dubai Duty Free also takes part in numerous events and initiatives throughout the world, whether as a participant, host or through donations to worthy causes. The story of Dubai Duty Free’s retailing legacy is well known. Below Gulf-Africa Duty Free examines some of the other reasons why Dubai Duty Free is one of the most dynamic operators on the worldwide travel retail scene.

“We have had a very good start to the year and are very much on track for our sales forecast of US$1.64 billion. Terminal 3 continues to be the biggest in terms of accumulative sales and accounts for almost 58% of our total turnover.” Colm McLoughlin, Executive Vice Chairman, Dubai Duty Free

A very special Finest Surprise Draw The Dubai World Cup, held for the third time at the iconic Meydan Racecourse on March 31, provided racing fans with one of the greatest races of the evening when Cityscape, ridden by British jockey James Doyle, made a thrilling turn to claim the US$5 million Dubai Duty Free Race (Group 1). As Group 1 race sponsor of the Dubai World Cup 2012, Dubai Duty Free entertained over 160 guests in the Meydan Grandstand. The elegant suite overlooked the racetrack providing guests with an excellent vantage point from which to view the night’s proceedings. 14

GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2012

The evening, which featured a series of entertainment between the 9 races, culminated with the opening ceremony and fireworks display, staged directly before the Dubai Duty Free race. As part of the evening’s celebration, Dubai Duty Free conducted a special Finest Surprise draw and announced the winner of a top of the range luxury car, a Bentley Continental Flying Spur. The draw was conducted directly after the Dubai Duty Free race by George Horan and Sinead El Sibai. The car was won by Ali Mallah, a Lebanese national from Dubai with ticket no. 0335 in Series 1484.

Olympia Pineda and Camia Arellano (center) prior to their departure to Antarctica with (from left) Bernard Creed, Colm McLoughlin, George Horan, Sinead El Sibai

The adventure of a lifetime In a bid to raise awareness and create environmental ambassadors within its operation, Dubai Duty Free sponsored two of its employees to participate in the International Antarctic Expedition 2012 expedition led by the renowned polar explorer and environmentalist Robert Swan, OBE. Olympia Pineda, Manager - Corporate Responsibility at Dubai Duty Free, and retail assistant Camia Arellano were selected by the organization to join a group of over 70 individuals from around the world who make up the expedition team. In addition to exploring the Antarctic Peninsula, the team will experience Sir Robert’s personal leadership and sustainability programme. The 16-day journey commenced on February 27 from Ushuaia in Argentina and ended on March 13.

Commenting on the expedition, Colm McLoughlin said: “We are proud that our staff members Olympia Pineda and Camia Arellano are representing Dubai Duty Free in the International Antarctic Expedition 2012. Being ambassadors of Dubai Duty Free, I believe they will gain substantial and comprehensive environmental knowledge while on this expedition. It is an opportunity of a lifetime. On their return they will continue to work and inspire their colleagues by sharing the experiences and challenges they have encountered in their journey.” The opportunity to participate in the International Antarctic Expedition 2012 was the result of a presentation made by Sir Robert Swan last May when he enthralled an audience of over 100 Dubai Duty Free management and staff with his account of his numerous treks across both the North and South Poles.

Well deserved recognition At the 2nd annual Dubai Airports HSE Excellence Awards for Contractors, Dubai Airports recognized the invaluable contributions made by contractors, companies and employees across the airport who have consistently demonstrated excellence in health, safety and environment. A new addition to this year’s awards featured the Dubai Airports CEO Award with Dubai Duty Free receiving the Best Stakeholders Team award. The award was presented by Dubai Airports CEO Paul Griffiths to Dubai Duty Free’s Colm McLoughlin. Dubai Duty Free won the Best Stakeholders Team based on its participation in Dubai Airports Clean-Up Day held on October 20, 2011, a project which aimed to clean specific locations in and around the airport. Dubai Duty Free is a long time supporter of various cleanup activities in the UAE as part of its corporate responsibility role, which has recently included participation in the Clean-Up Arabia campaign last November and the DDF Clean-Up drive around its premises in December, which was part of the Emirates Environmental Group Clean-Up UAE.

Dubai Airports CEO Paul Griffiths presenting the Best Stakeholders Team Award to Colm McLoughlin

Giving back Dubai Duty Free’s support for Hand in Hand for Haiti, the travel retail industry-funded educational initiative, went a step further as the operator earlier this year announced a donation by the Dubai Duty Free Foundation of US$500,000 to finance a new Sports Complex at the Lycee Jean Baptiste Pointe du Sable School in the town of Saint Marc. The announcement, which was made at the Trinity Forum conference in Seoul by George Horan, President of Dubai Duty Free, had the full support of H.H. Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of Dubai Duty Free, and the Dubai Duty Free Foundation board, which is headed by Colm McLoughlin, Executive Vice Chairman of Dubai Duty Free. “Dubai Duty Free, through our Foundation and through staff initiatives, responded quickly to the Hand in Hand for Haiti initiative as it struck a chord with us, especially as its aim was to better the

lives of children through education, which is one of the objectives of our Foundation,” said McLoughlin. This latest donation will provide funding for a Dubai Duty Free Sports Complex at the Lycee school, which will offer pupils and the wider community in Saint Marc an outstanding sports and leisure facility. Facilities will include an international regulation soccer pitch, a six-lane athletic track, a basketball court and a volleyball court. “We are delighted to announce that the Dubai Duty Free Foundation will help in building this fantastic new Sports Complex, which will enhance the lives of the pupils as well as the wider community who can avail of its facilities,” said McLoughlin. “Hand in Hand for Haiti has done a tremendous job in driving forward the completion of the Lycee School in such a short space of time. We are looking forward to seeing the development of the new Sports Complex and see it become a focal point for the community.” c azine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

The new store at Rabat Sale Airport, opened January 21, will be the site of a new Wine and Cigar concept store scheduled to launch later this year

Operator News: IDFS

Reaching goals

Half a year on from Revic Tantoco’s appointment as General Manager of IDFS, the operator implements a number of new processes to better serve consumers BY RYAN WHITE

ate last year International Duty Free Shops (IDFS), headquartered in Morocco, announced the appointment of Revic Tantoco as General Manager. She told GulfAfrica Duty Free at the time that she planned on “streamlining the company through a concentration on business development, fostering a good relationship with the Government of Morocco, ensuring the sustainability of the business as a whole, meeting the company’s financial objectives and making sure all departments are aligned toward the common goal of continued growth.” Half a year on, we learned that many of the organizational changes Tantoco previously mentioned have already taken place at IDFS, along with the development of a new corporate image. Furthermore, we learned that despite an overall dip in travelers to Morocco’s airports, IDFS continues to grow sales ahead of passenger numbers.

Gulf-Africa Duty Free: How are the new processes that you’ve implemented working out? What changes have now been made and what changes are upcoming? Revic Tantoco, General Manager, IDFS: After two years of continuous review and study we were able to successfully implement our new organizational structure in the first quarter of this year, and because of this our reporting and implementation processes are now more efficient. We also started the rollout of our new enterprise resource planning system, called Epicor, and it will be fully implemented by June. We expect this will result in faster data processing and prompt decision making. Aside from the above, IDFS also introduced its new corporate image this year, which encompasses a new-look logo, a sharpened vision and new store concepts, which we plan on launching over the next two years. 16

GADF: Can you tell me how business has been since the beginning of the year as compared to the same period last year? RT: Business is good. Despite a –9% IDFS’s open concept store at Casablanca’s 2; the operator will be opening a Watch decline in passengers, we were able to Terminal and Jewelry Boutique at this location in June post a positive sales growth of 6% for the first two months of the year compared meters, opened in Casablanca Terminal 2. to the same period last year. This year we’ll also open up a new Wine and Cigar concept store measuring about 54 GADF: What promotions are you featur- square meters in the new Rabat Sale Airport, ing at the moment? which opened on January 21. RT: We are launching our first ever tie-up with Ryanair, to be implemented in Marrakech, GADF: How is the sociopolitical situation Agadir and Tanger. We are offering 15% dis- in Morocco at the moment? counts exclusively for Ryanair passengers RT: Despite the publicized uprisings in areas from May to July. We feel that this will increase of the MENA region the situation in Morocco our customer traffic by about +20% and we remains calm and the country is generally are projecting an increase in sales of about doing fine. +10% during the promotional period. GADF: You mentioned a dip in passenger GADF: Are there any renovations or store numbers. Of the airports where you operopenings that I should know about? ate, where are passenger numbers the RT: We are starting discussions now regard- strongest? ing the implementation of Japan Tobacco RT: Of all airports where we operate, International’s (JTI) “Category Solution” in Casablanca has the strongest passenger numMarrakech, designed to significantly change bers, serving 49% of the total passenger trafthe way tobacco is displayed in-store. We are fic of all Moroccan airports. The main nationworking closely with JTI and the launch is alities we are catering to are the French, which planned for around July. This is a very excit- represent 38% of total passenger traffic at the ing development for us and it is the first time airport, and other Europeans, which represent we’re working on a joint project like this. 45% of the total passenBy June we’ll also have our first Watch and ger traffic at Casablanca c Jewelry Boutique, measuring 38 square Airport.

“After two years of continuous review and study we were able to successfully implement our new organizational structure in the first quarter of this year.”

GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2012

Revic Tantoco, General Manager, IDFS

Airport and Airline Investment

Investing in the future

Given IATA’s recent nod to the Middle East for pushing aviation forward, Gulf-Africa Duty Free examines innovations in the region on the part of airports and airlines alike BY RYAN WHITE he International Air Transport Association’s (IATA) 2012 forecast indicates that Middle Eastern carriers are expected to see profits of US$500 million this year. An indication of the region’s success in aviation is that this figure was upgraded from the previously forecast US$300 million. Indeed, financial performance was already seen to be better than previously expected in 2011, with an upgrade from US$400 million to US$1 billion. There can be no doubt that the commitment many governments and airport authorities in the Middle East have shown toward investing in aviation is a key factor in the region’s success. Indeed, upon the release of the amended forecast IATA’s Director General and CEO Tony Tyler called on other areas of the world to work on developing a sustained commitment to aviation much like that which has been seen in the Middle East. “Today’s industry situation reinforces the need for governments to take a more strategic approach to aviation with competitiveness—enabling policies that will deliver broad economic benefits,” he said. “This has been tried, tested and proven by many governments in Asia and the Middle East. Europe, India, the US and others should take note.” Middle Eastern airports and airlines—both large and small—have proven that an eye toward the future is one of the biggest factors in determining success. Below Gulf-Africa Duty Free looks at some of the recent aviation and airport-related developments across the region that will help to ensure the market continues to grow ahead of the trend for years to come.

The AIA award comes on top of other accolades recently bestowed on Etihad, including World’s Best First Class in the annual Skytrax survey and World’s Leading Airline at the World Travel Awards

“Today’s industry situation reinforces the need for governments to take a more strategic approach to aviation with competitiveness. This has been tried, tested and proven by many governments in Asia and the Middle East.” Tony Tyler, Director General and CEO, IATA 18

GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2012

A banner year

ull-year 2011 passenger traffic reached record numbers at Muscat International Airport. For the first time in history passenger numbers exceeded 6 million, with a total of 6.4 million passengers traveling through the airport in 2011 compared to 5.7 million passengers in 2010, representing a year-on-year increase of 12%. Over the last two years, passenger traffic through Muscat International Airport has increased 42%. As a result, the number of cars parking at the airport has also greatly increased. Muscat Airport notes that during peak hours the roads leading to the airport and car parks are jammed with cars. Oman Airports Management Company (OAMC) has announced that it will further increase parking capacity this year and adjust tar-

iffs. OAMC expects that these changes will reduce traffic congestion, especially during peak hours. The changes are also designed to position short term parking closest to the terminal, with medium and long term parking farther away. As a result, the tariffs for Car Parks 1 and 2 were increased from February 1, 2012. The tariff for Car Park 3, the one farthest away from the terminal, remained unchanged. Of course, dealing with capacity will be less of an issue when construction on the new Muscat International Airport reaches completion in 2014. The airport will be able to handle 12 million passengers annually, and further expansions are planned in three subsequent phases, which will ultimately boost the airport’s capacity to 24, 36 and 48 million passengers as required.

What growing pains?

tihad Airways, the national airline of the United Arab Emirates, recently won the award for Fastest Growing Airline in the Middle East at the 2012 Athens International Airport (AIA) Airline Marketing Workshop. In its 12th year, the annual AIA workshop presents awards to airlines that have demonstrated rapid and successful development over the past 12 months. More than 150 travel managers, human resource directors, facility managers and travel buyers of medium and large companies involved in the Greek travel management field voted for the award. “Etihad Airways is just eight years old and in that short timeframe, our airline has established itself as one of the world’s leading airlines,” said Dimitrios Karagkioules, Etihad Airways Country Manager for Greece. “The airline is growing rapidly, and we are delighted to see our major investment in Greece paying off as we link this historic and ancient city with the rest of our global network. In the months and years ahead we will continue to set new benchmarks as we inaugurate routes and roll out more and more innovative ways to further improve our offering in Greece and elsewhere on our network.” The award comes on top of other accolades recently bestowed on the airline, including World’s Best First Class, as judged by over 18 million air travelers worldwide in the annual Skytrax survey, and World’s Leading Airline for the third consecutive year at the World Travel Awards.

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

Airport and Airline Investment

“Hello Tomorrow” mirates recently launched a new global brand platform and direction, themed "Hello Tomorrow,” which positions the global airline as the enabler of global connectivity and meaningful experiences. Emirates is embarking on an integrated marketing communications campaign with a new brand promise as the company continues its evolution from a travel brand to a global lifestyle brand. "Our new corporate image and global marketing campaign both underline the confidence we have in our existing products and services, and the vision we have for the future growth of the airline," said Sir Maurice Flanagan, Vice Chairman of Emirates Airline & Group. “Emirates is not just offering a way to connect people from point A to point B, but is the catalyst to connect people’s hopes, dreams and aspirations.” Emirates notes that as the world becomes more interconnected, borders are being blurred

and people are more mobile and globally focused than ever before. They are connecting, creating and sharing ideas that are propelling the world forward. Emirates, slated to become the world’s largest airline by 2015, calls these global individuals “globalistas.” “Globalistas represent individuals who are looking and living for new experiences,” the airline said. “They are well traveled, or have aspirations to join the ranks of the well-traveled. The globalista is not defined by typical demographic statistics but by the places they have visited and the experiences they have shared. They embrace the unlimited possibility of the future and are open to an invitation to try the unfamiliar—Emirates is the brand that is enabling this global lifestyle.” The campaign features print, TV and digital advertising, including some iconic billboards in New York’s Times Square and Milan’s central train station. Emirates’ website has also been refreshed to reflect the

Emirates’ new global brand platform positions the global airline as an enabler of global connectivity and meaningful experiences

“Hello Tomorrow” messaging. Beyond a look, Emirates says that the spirit of the brand and its evolution is being embedded internally, as is a focus on driving increased consumer engagement in what is “new, fresh and innovative in the world, empowering people to explore, engage and live.”

“Pride and prosperity” irport International Group (AIG), the Jordanian consortium responsible for the rehabilitation, expansion and operation of the Queen Alia International Airport (QAIA), recently announced the addition of flights with Royal Falcon Airlines, an Amman-based carrier. The airline, operating for the first time from QAIA, will service a number of regional destinations, including weekly flights to Jeddah, Najjaf, Mosul and Abu Dhabi. The airport’s most recent statistics (February 2012) showed passenger numbers surpassing

425,000, an increase of 22% compared to the same month last year. Aircraft movements grew 9% to over 4,700 movements. The total amount of transiting cargo was registered around 6,700 tons, representing a 12% increase over the same period last year. Over the last several years, the airport has experienced continuous growth in passenger traffic. Recognizing that the growth has put strains on the current facilities, AIG has so far spent US$100 million on renovating the existing infrastructure. “The group has been working closely with its partners to add new services, equipment and trained staff to make the passenger expe-

rience as pleasant, efficient and comfortable as possible, despite limited available resources and ongoing construction,” AIG says. At the same time as QAIA tries to cope with increasing passenger numbers, building of the new, state-of-the-art passenger terminal continues at a site adjacent to the current airport. “The terminal will have a capacity of 9 million passengers annually, with operational readiness expected to be reached by the end of 2012,” says AIG. “The US$750 million terminal will be a significant contribution to the development of QAIA as a niche hub that will serve as a source of pride and prosperity for c all Jordanians.” Work is ongoing on the new passenger terminal at Queen Alia International Airport in Jordan; the project is expected to finish later this year

GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2012

Blessing

Blessing takes the next step The gift chocolate company’s high-end custom niche is a good fit for the duty free market lessing is an upscale full-service chocolate and souvenir gift niche player that was founded in 1996 by sisters Rana Kotaiche Najjar and Rima Kotaiche El-Husseini in Beirut, Lebanon. Today the company remains based in its country of origin, but has expanded its regional presence and also boasts operations in Saudi Arabia, Bahrain and the United Arab Emirates.

700 square meter mezzanine level storage area and an 1,100 square meter inventory space. That was the same year that Blessing opened a shop in Riyadh, Saudi Arabia, and a boutique in Bahrain. Blessing Dubai followed in March of last year, and Blessing Khobar two months after that. The steady pace of expansion has positioned Blessing well for its entry into the Middle Eastern duty free market, a debut that the two founders look

“In the past decade, Blessing has managed to establish itself as one of the top premium gifts and chocolates providers in the region.” Rima Kotaiche El-Husseini, Blessing CEO and co-founder

When Blessing started out it offered customized gifts and chocolates, and it was only in 2000 that it evolved into its present form, also providing exclusive products and services for special events, says El-Husseini. It was around this time that the company began to receive offers from potential franchisees and partners in the Gulf region, opening the door for expansion. In 2009, Blessing expanded with the addition of 1,100 square meters of showroom and workshop space, on top of the 22

GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2012

HIBAH NOOR

forward to with confidence. “In the past decade, Blessing has managed to establish itself as one of the top premium gifts and chocolate providers in the region,” says El-Husseini. The company now has 41 employees, most of them based in Beirut. Given the highly diversified product range, Blessing has subcontracted an additional 30 specialists who provide product-specific skills and expertise. Blessing’s chocolate offering features a blend of Belgian chocolate with a range of more than 150 fillings. A recent addition has been the complete Teuscher Chocolates selection from Switzerland. Blessing has exclusive distribution rights for Teuscher in Lebanon, Saudi Arabia, Bahrain and the UAE. Custom baby gifts and souvenirs are also sold. “A baby theme is followed all the way, and it is completed with the decorated baby chocolates, trays

Blessing

and home setting decoration,” says El-Husseini. Blessing also customizes wedding gifts and decorates wedding chocolates to customer request, reinforced by a broad range of wedding cards and invitations designed to match wedding themes and colors. Blessing also provides a selection of corporate gifts, giveaways for corporate events, end-of-year staff gifts and end-ofseason client gifts. Here as elsewhere, full customization is available. Finally, Blessing has a selection of seasonal products tailored for major religious holidays and personal milestones such as baptisms and graduations. The company sells its products through three channels. The Classical Blessing Collection is a cash-and-carry section where customers can pick up any of the Blessing retail line items from the shelf. Classical Special Events is also cash-and-carry, and

enables customers to choose from Blessing products off the shelf for special personal occasions such as anniversaries, weddings, births, graduations, etc.

The custom fit Blessing’s unique positioning is probably best exemplified by its “one of a kind, tailor made” section. Consisting of a separate room arranged with salon-style seating, this is where the customer is received in a private and comfortable environment. It’s here, says El-Husseini, that the two founders can develop special, individually customized themes oneon-one with the customer, creating “one24

of-a-kind personal series of items for very special occasions.” Research and development is conducted by the Blessing Creative Division, which has been developed over the past decade and consists of the two founders, assisted by a team of specialists. The Production Division is in charge of implementing the designs of the Creative Division. “Our workshops include some of the finest craftsmen and craftswomen and artisans, all of whom form part of a significant and scalable supply chain,” says El Husseini. To date, Blessing has marketed itself mainly through word of mouth and also by maintaining a high level of visibility at events. Its domestic market sales are strong, growing at 20% year-over-year, which is another reason El-Husseini is so optimistic about entering the dutyfree market. It helps that the current Blessing client base is well suited to travel retail, being composed mainly of middle- and high-income customers, in addition to businesses. El-Husseini’s optimism received a further boost from the reception she received from buyers during the MEDFA conference. “The feedback I received at MEDFA was excellent,” she says. “In fact it exceeded my expectations. I’m in the process of preparing a set of samples for presentation based on the request of three major buyers in the region.”

GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2012

El-Husseini believes that Blessing is well adapted to the premium end of the market, thanks to its focus on souvenir gifts that can be adapted to different cultures. The fact that chocolate can be included with gifts also enables cross selling within one product, El-Husseini says, and places Blessing in a unique market niche. “Most gift souvenirs don’t have any utility; you either consume the chocolate and dispose of the box or you buy a small gadget that isn’t really useful. The availability of the ‘premium chocolate souvenir gift’ is simply non-existent.” For duty free, Blessing is designing products in collections, each covering a range of items suitable for all ages and budgets. “There will be at least an oriental collection, with embroidered rich colored velvet materials, a modern collection marrying acrylic material with the oriental metal workmanship and a leather collection for the more serious buyers,” El-Husseini says. “The packaging is going to be colorful and fun, specially made for the travel retail world.” c

Company News: Mars

Room

to grow

Mars ITR recently launched two branded store-in-stores at Changi’s Terminals 1 and 3

For Mars ITR’s Jack Tabbers, the favorite category in retail can still benefit from more focused execution BY HIBAH NOOR

he confectionery category has one huge, obvious advantage: most people in most parts of the world have a sweet tooth, at least to some degree. That advantage is something that Mars ITR can work with in building the foundations of success in the Asian duty free market, where prospects for success are reinforced by a healthy dose of know-how, according to Jack Tabbers, General Manager, Mars ITR. “The category in Asia is progressing very well,” Tabbers says. “It’s absolutely a fastgrowing business, mainly driven by the fact that the Asians understand how to sell confectionery at an airport. They’ve learned quickly from the European executions and they really are taking it to the next level.” Tabbers points to Singapore’s Changi International Airport as an example, with the positioning driven by the understanding that driving the impulse buy is key to success. “A lot of European retailers are more and more putting chocolate as a grocery execution in their store,” Tabbers says. “I don’t think that’s the way of the future. It doesn’t really attract consumers. You only buy chocolate for a few simple reasons—for yourself if you’re hungry or when you’re on a trip with your family, to keep your kids quiet or as a gift.” The entrepreneurial Asian mindset means that retailers here forge very direct relationships with airport authorities, with less emphasis on price considerations above all else. “If you walk into a European airport, it’s all about price, price, price,” Tabbers says. “Duty free in Europe hardly exists due to the 26

disappearing of all the boundaries. If you go to Asia, price is not that relevant because the availability on the domestic market is less as well.” For Tabbers, price is well down the list as a purchase driver in confectionery, with the category’s firm position as a favorite and its high brand recognition around the world motivating buyers, along with the massive impulse factor. There’s still a lot of work that can be done to build confectionery’s presence and sales performance, Tabbers believes. He says the category is still focused too strongly on value and is still too oriented towards buyers who are making pre-planned purchases. One strategy to build on the category’s inherent strengths, he says, is to leverage the high degree of brand loyalty among buyers by presenting the confectionery offer through two or three “hero” brands that can create a vivid sense of engagement and in-store theater. Mars has developed a series of merchandising programs that can be tailored to the unique needs and challenges of different locations. These range from a core presentation for smaller locations to a large-scale tailored store-in-store platform for major airports. Tabbers and his team have already worked with some of the more innovative retail partners at airports to reinforce the shopping experience and increase footfall, conversion and basket size. One notable example is the recent launch of the M&M’s store-in-store at JFK

GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2012

International Airport, in cooperation with DFA and the New York Port Authority. Mars ITR recently launched two branded store-in-stores at Changi’s Terminals 1 and 3, with discussions now underway for a third store in Terminal 2 that will be larger than either of the others. The Changi venues have been very successful since their launches in October 2011 (T1) and January 2012 (T3), and Mars is looking at using Changi as a pilot for further rollouts in other major Asia hubs in Kuala Lumpur, Thailand, Korea and China. “Any airport where passengers exceed 45 million is a potential target for us.” The discussions that led to the new Changi stores came about as a result of what Tabbers believes is an inherent entrepreneurialism in the Asian market, a trait that augurs well for future innovation and success. “I held a presentation in Cannes last year which was all about driving conversion and how the next phase of what we’d like to do is create new store concepts. After that Changi Airport came to us and wanted to develop stores with us.” “They’re willing to take risks—they just c do it.”

”DRINKS ARE ON ME”

YOU CAN NEVER BE TOO GENEROUS

The Edrington Group

“Innovation, education and premiumization”

In addition to his role in the Americas, André de Almeida is appointed to develop The Edrington Group’s premium brands in the Middle East, North Africa and Turkey BY RYAN WHITE he Edrington Group recently announced that it has made changes among the senior management responsible for duty free and travel retail in the Middle East to accelerate the development of its premium portfolio in the region and to give more of a concentration to Africa and emerging markets. As of April 1 André de Almeida, Commercial Area Director, assumed responsibility for all domestic and duty free in the Middle East, North Africa and Turkey in addition to his existing responsibility for duty free in the Americas. Sub-Saharan Africa remains the responsibility of Keith Bonnington, Europe is managed by Steven Sleigh and Asia travel retail is managed by Ryan Hill. “I am looking forward to developing The Edrington Group brands in the Gulf states, in Turkey and North Africa and to working closely with retailers and our distribution partners across the region,” de Almeida said. “We have introduced recently many innovations in our product portfolio including several travel retail exclusives, which have been well received in Europe, the Americas and Asia and which I am confident will be very successful here.”

A focus on premium brands High on de Almeida’s agenda will be positioning the Group’s portfolio of high-end brands, namely The Macallan, Highland Park, The Famous Grouse, Cutty Sark and Brugal, in the Middle East. Edrington says that promoting The Macallan will be a matter of emphasizing its super-premium credentials as “one of the most sought-after malt whiskies in the world.” High praise for The Macallan from a region that certainly knows its whisky is the fact that some truly rare expressions of The Macallan were snapped up by consumers at HKIA recently. The rarest and most exclusive expression to have been offered for sale was a unique bottle of The Macallan Fine and Rare 1949 which retailed at HK$338,800 (US$43,435). Additionally, three bottles of The Macallan in Lalique III rare limited edition were supplied to HKIA and at last count two were purchased at HK$288,000 (US$36,923) each. Finally, all 10 bottles of The Macallan Masters of Photography II Albert Watson Edition allocated to Sky Connection were sold within five days of being put on shelf at HK$12,800 (US$1,641) each. De Almeida will also develop opportunities for 28

GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2012

consumers to engage with The Famous Grouse family, which includes The Famous Grouse Finest, The Black Grouse, The Snow Grouse and—the most recent addition—The Naked Grouse. Already an award-winner in domestic markets, The Naked Grouse contains two of the world’s most renowned malts, Highland Park and The Macallan, which have been slow-matured in sundried Spanish sweet sherry casks—the most expensive in the world— to give the blend unrivalled smoothness. De Almeida will also seek opportunities to promote the Highland Park single malt, Cutty Sark blended scotch and Brugal rum, which have been successful in other countries and are now expected to make a mark in this region. “I am delighted with the opportunity to develop The Edrington Group’s brands across a wider region and look forward to meeting our distribution partners, customers and consumers across the next few months. We are investing both time and resources within the duty free channel and this will continue

“Our focus is on innovation, education and premiumization, and I hope to find operators with the desire to develop the quality of the shopping experience and the willingness to work more closely with us.” Andre de Almeida, Commercial Area Director, The Edrington Group to be reflected in our approach. Our focus is on innovation, education and premiumization and I hope to find operators with the desire to develop the quality of the shopping experience and the willingness c to work more closely with us.”

Scuba Series diving masks have an integrated waterproof digital/video camera

The Macallan will be a big focus for The Edrington Group in the Middle East, North Africa and Turkey; pictured is The Macallan 1824 range, exclusive to global travel retail

“Last ggood buy before befor b re you fly” 22 YE YEARS A S CELEBRATING AR CELEBRA ATING TING MILE M MILESTONES STONE NES

Liquor Report

Bacardi’s “Ace Rafa” promotion/game stand in Dubai Duty Free

Liquid gold

Specialty spirits find a home in a market known for its upscale tastes he Gulf market is one of the most prestige-oriented in the world, whether in duty free or domestic. As such it is uniquely susceptible to the charms of high-end and limited edition spirits, and distillers haven’t been slow to position themselves to take full advantage of this highly competitive and rewarding market niche. For Berry Bros. & Rudd Spirits (BBR), the key strategic brand in the Gulf-Mideast travel retail market is The Glenrothes, a Speyside Single Malt Whisky. Over the past three years, BBR has introduced the brand to a number of airports in the region, and after an expansion of distribution over the last 12 months all major hubs in the Gulf, Middle East and Africa are now covered. The sales growth that has resulted from this intensification of coverage has been very strong, says Johnny Roberts, Asia Business Director, Berry Bros. & Rudd Spirits. “Customers are very positive about The Glenrothes, from the unique range of Vintage and Reserves through to the round bottle, handwritten label and elegant Single Malt,” says Roberts. “The Berry Brothers & Rudd ownership endorses the quality of the product [and] customers trust a company that has been selling fine wines and fine spirits since 1698.” Business is doing well in the Gulf, Middle East and Africa, Roberts says, with The Glen-

rothes experiencing double-digit growth last year. That trend is expected to continue this year as the distribution network expands. The growth is helped by the fact that passenger numbers are increasing across the region, especially in the key regional hubs. With the improvement in certain economic indicators, the growth should continue, Roberts says. Bacardí rum celebrates its 150th anniversary in 2012, and a full slate of activities is planned to commemorate the milestone, including some signal promotions in the Gulf. In Dubai in June, a series of special onpack offers and airport displays will be underscored by the Mideast launch of a US$2000 limited edition decanter of Bacardí rum. Themed with the tagline “150 years of Legendary Parties,” the celebrations will be marked at Dubai Duty Free with images from Bacardí’s history. Glassware featuring vintage Bacardí advertising will be available to customers as an on-pack offer with purchases of Bacardí Superior Rum. Perhaps the most notable element of the celebrations will be Ron Bacardí de Maestros de Ron, Vintage, MMXII, a limited edition blend of rums aged in oak barrels for 20 years and finished in 60-year-old Cognac barrels. Housed in a hand-blown 500 ml crystal decanter housed in a leather case, the bottle retails for US$2000. The vintage has been created by eight Maestros de Ron, who are all Bacardí family members.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2012

ANDREW BROOKS

“Ever since Don Facundo Bacardí Massó revolutionized the world of spirits with the creation of Bacardí rum in 1862, Bacardí has been bringing people together to enjoy the very best cocktails at legendary parties,” says Vinay Golikeri, Bacardí Global Travel Retail Marketing Director. “In 2012 we will be celebrating 150 years of legendary parties with a year-long series of exciting Bacardí programs that will engage consumers and drive footfall throughout global travel retail. It’s the perfect way to celebrate the 150th birthday of a remarkable company and a revolutionary rum.” The “150 Years’ celebrations follow on from the “Champions Drink Responsibly” promotional campaign that Bacardí ran for the first time in travel retail in Dubai Duty Free this past February. Coinciding with the Dubai Duty Free Tennis Championships in February and March, the promotion featured a specially developed online tennis game featuring tennis superstar Rafael “Rafa” Nadal, who is Bacardí’s Global Social Responsibility Ambassador. Travelers and tennis fans of legal drinking age were challenged to “Ace Rafa” in the online game, serving against his online character using “RoboServ,” a 12foot-tall tennis serving robot, to deliver their serves. Nadal’s character was developed using photos of him shot in his hometown in Mallorca, and, uniquely, the player himself— not a computer-generated equivalent—

The Jack Daniel’s Master Distiller Series, launched at the 2012 IAADFS exhibition and soon to be rolled out worldwide

reacted to each serve as though in a real game. Winners who “aced” the tennis champion were then entered into a free prize draw to win the opportunity to meet—and maybe even ace—Nadal in person in Mallorca. The “Champions Drink Responsibly” campaign was originally launched in 2008, when it featured seven-time Formula 1 World Champion Michael Schumacher with the message “Drinking and Driving Don’t Mix.”

Best foot forward Promotion is essential to market survival and expansion, in the Gulf as much as anywhere else. But promotion only goes so far if it isn’t backed up by a rolling schedule of new product launches, combined with a constant redevelopment and reworking of existing brands that have proven their worth as market leaders. Brands as recognized as Bacardí and The Glenrothes have absorbed that lesson, and they and other well known names demonstrate the value of new rollouts by never resting on their laurels. To take another example, in March of this year Brown-Forman Travel Retail unveiled the long awaited Jack Daniel’s Master Distiller’s Collection at the 2012 IAADFS

The Glenrothes Bar, the first of its kind in the UAE, launched in November at The Fairmont Dubai

show in Orlando, Florida. The collection commemorates founder Jack Daniel and the six other Master Distillers who have made Old No. 7 since the whisky was launched in 1866. The collection is launching worldwide as a travel retail exclusive in its initial stages. The plan is to honor a different Master Distiller each year. The collection is housed in a special gift box bearing the likeness of the Master Distiller being honored. Each bottle in the collection is sequentially numbered on the back label with the chronological ranking of the designated individual being recognized featured prominently on the front label. For the IAADFS launch, current master distiller Jeff Arnett was in attendance, discussing the series and the Master Distiller lineage, as well as answering whisky-related questions. To back up the strength of The Glenrothes in duty free, BBR has selectively increased its presence in the domestic market, Roberts says. One example is the opening last November of The Glenrothes Bar at Cigar Bar & Cin Cin at The Fairmont Dubai. The venue is

the first dedicated Glenrothes Single Malt bar in the UAE. The opening festivities included a Glenrothes Vintage dinner for 30 guests at the bar, which is decorated with photos of The Glenrothes distillery, the bottle and the Speyside area. The opening came as part of a weeklong program that included training for 60 Dubai Duty Free staff members, a tasting for the Dubai Malt Whisky Society and training for Fairmont staff. Now The Glenrothes is available at no fewer than 40 locations in Dubai alone, Roberts says. BBR focuses a lot of investment on training and educating staff so that they can give customers informed introductions to The Glenrothes. BBR also runs value-added promotions with high-quality leather sports bags and miniatures. The 100 ml (3.4 fl. oz.) miniature has proven its worth as a popular and effective promotional tool, Roberts says. He adds that plans for The Glenrothes include the introduction of Vintage 1991 in selected Gulf, Mideast and African travel retail locations, along with a very limited number of c exclusive older vintages

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

Liquor News Russian Standard Vodka extends “Vodka as it should be” promotion to Middle East Russian Standard Vodka launched its “Vodka as it should be” campaign in the Middle East with a high profile promotion in January at Beirut Airport in Lebanon, which serviced an impressive 5.6 million passengers in 2011. A classical ballerina and a violinist performed during busy times at a special promotional stand in the busiest part of the retail complex. Meanwhile a bartender explained the ethos of the brand to traveling consumers and served Russian Standard Original cocktails including the Vodka Tonic and the Moscow Mule. The “Vodka as it should be” campaign in travel retail brings to life the real Russian vodka experience by offering a portfolio of authentic Russian vodkas of excellent quality: Russian Standard Original, Russian Standard Gold, Russian Standard Platinum and IMPERIA. In addition, customers purchasing two bottles of Russian Standard Gold, Russian Standard Platinum or IMPERIA took home a beautiful gift box of Russian Standard miniatures explaining the legend of the brand to help them appreciate the breadth and quality of the range. Walter Kooijman, Commercial Director Global DF & APAC, Russian Standard Vodka, commented: “Today’s consumers are looking for authentic products. We want them to experience real Russian vodka of superb clarity and excellent flavor. Russian Standard Vodka is the product of the finest ingredients and rigorous attention to detail in the distillation process. We have combined centuries-old traditions with state-of the-art distilling processes to produce a portfolio of authentic Russian non-flavored vodkas, each with its unique character.”

Commenting on the special promotion, Matthew Hodges, Marketing and Business Development Director, Rémy Cointreau GTR, which distributes the brand in Middle East markets, said: “Passengers love to be entertained in airports and we have found that activations such as ‘Vodka as it should be’ enable us to engage with passengers as they shop. They are faced with a confusing array of brands and products in travel retail, many apparently authentic and appealing. Well-informed promotional staff help them to steer them through the ordinary to the extraordinary—to Russian Standard Vodka.”

Customers purchasing two bottles of Russian Standard Gold, Platinum or IMPERIA Vodka took home a beautiful gift box of Russian Standard miniatures

FIX Wines & Spirits to distribute Cutty Sark in selected MENA markets In a recent conversation with Céline Cabannes, Marketing Manager of Cyprus-based FIX Wines & Spirits, Gulf-Africa Duty Free learned that the company is ramping up its presence in the Middle East and Africa with a stable of well known brands—the most recent of which is Cutty Sark. Starting June 6, FIX will act as a distribution platform for the brand in Dubai, Abu Dhabi, the northern Emirates, Bahrain, Qatar, Oman, Iraq, Syria, Lebanon, Jordan, Israel, Egypt, Morocco and Tunisia. “We act as a distribution platform for suppliers in the region, leveraging our knowledge to ensure that the brands are distributed by quality local distributors,” says Cabannes. “Our regional expertise allows us to

GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2012

help suppliers accomplish goals that would otherwise be difficult to reach due to logistics and resource challenges.” Indeed, with a stable of over 700 SKUs that includes brands from Beam Global and The Edrington Group, it’s clear that brandowners see FIX Wines & Spirits as a key partner when it comes to cracking the very lucrative Middle Eastern and African markets. In addition to continuing to ply its trade in the region, Cabannes tells us that the company is now using social media sites such as LinkedIn to communicate new developments. “People have heard through the brands about the great things we’ve been doing in the region but many may not associate these developments with the name FIX Wines & Spirits,” Cabannes adds. Starting June 6, FIX will act as a distribution platform for the brand in Dubai, Abu Dhabi, the northern Emirates, Bahrain, Qatar, Oman, Iraq, Syria, Lebanon, Jordan, Israel, Egypt, Morocco and Tunisia

Company News: Oettinger Davidoff

New products, new ideas Davidoff’s new store concept, backed by iPad sofware, matches the pace of its new product launches BY ANDREW BROOKS

The orange he Oettinger Davidoff Group’s travel retail and duty free operation has “Emociones” box is a good coverage in the Gulf-Mideast market, with listings in all the major chromatic departure duty free and travel retail outlets in the region. Thanks to the sheer pas- for Davidoff, calculated to maximize shelf senger volumes in Dubai, Davidoff’s sales throughput is increasing substandout stantially at Dubai Duty Free, says Susanne Lüthi, Area Sales Manager, Travel Retail Middle East for the Oettinger Davidoff Group. Additionally, significant growth is being recorded in other operations in the region, including but not limited to Abu Dhabi, Muscat Duty Free and Qatar Duty Free. Despite political upheaval in some parts of the Gulf and Middle East market, Lüthi says that trends for 2012 are on the positive side of the scale. And regardless of political and other externalities beyond its control, Davidoff continues to maintain a steady pace of new product launches with the strategic goal of always having offerings for the full range of customer tastes and preferences. Davidoff ’s best sellers in duty free and travel retail are Davidoff 2000, Davidoff Primeros and the Davidoff Puro D’Oro line, which was introduced at the end of 2010. However, Christian Vonthron, Senior Vice President, Duty Free and Travel Retail, points out that in the lower price segment Camacho Honduran cigars are also doing well, as well as Zino Platinum, which was just beefed up with the successful launch of the Z-Class in May. The Z-Class has a stronger flavor than Davidoff ’s Zino Platinum Crown or Scepter lines and is built around a Dominican Wrapper, a Peruvian binder and filler cultivated in Honduras and Nicaragua. Notable new releases for travel retail include Davidoff “Emociones,” a small, handrolled long-filler cigar designed to cater to the busy, traveling customer who doesn’t have time for a full-length smoke but still wants a full-bodied experience. The EmoCrafted with the ciones product is exclusive to duty free. Each package of five cigars is colored bright busy traveler in orange for maximum shelf standout. This use of this new color is a departure for mind, Puro D’Oro Momentos come Davidoff, Vonthron says. Emociones cigars feature a blend of pure Dominican tobacin a special tin cos in a San Vicente Seco binder wrapped with a Criollo wrapper. Davidoff has also added “Momentos” to the successful Puro D’Oro line. Housed in a Davidoff tin, each cigar features the Puro D’Oro hallmark golden cigar band. This product is also aimed at the busy consumer who doesn’t have a lot of time to spare but who also doesn’t want to settle for a second-rate smoke. The Momentos cigar features the Davidoff Yamasá wrapper leaf and a Dominican binder. Davidoff ’s innovations aren’t limited to the introduction of new products. On December 1, 2011, Davidoff presented a new Flagship Store concept at the redesigned Airside Center at Zürich Airport. At the center of the 60-square-meter store is a 30-square-meter walk-in humidor with broad glass frontage. The interior decoration features warm shades and wooden lamellae that develop an ambiance suggestive of the Dominican Republic, the country of origin for Davidoff cigars. “The opening of the Davidoff Flagship Store at Zurich Airport is also signaling the roll-out of the new store concept around the globe, and underscores the importance of both the duty free and travel retail channel and the new global retail strategy of the Oettinger Davidoff Group,” the company said in making the announcement. “The new store concept will be implemented progressively all over the world, including smaller back-wall or shelf units,” Vonthron adds. Davidoff is also working on a new iPad application which Vonthron says will be used in connection with the new Davidoff Flagship concept stores. The application will enable consumers to access more information about Davidoff and its complete product line. It will be able to match products to individual users based on user responses to a short series of questions about smoking preferences and habits. The software will also pinpoint the Davidoff Flagship store nearc est to the user.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2012

SIGNUPNOW! Subscribe to Asia Duty Free & Travel Retailing magazine and its monthly eNewsletter to keep you informed of the latest news. Simply fill out and return this subscription card to the following address, or fax with your credit card details to +1 905-821-2777

One Year – 1 issue and 12 eNewsletters

US$ 6 0

.00

Two Years – 2 issues and 24 eNewsletters

US$ 8 0

.00

Please contact Deepa J at +1 905-821-3344 ext.#21 or email deepa@globalmarketingcom.ca Mail check made payable to Global Marketing Company Ltd.:

SUBSCRIPTION FORM

company name

Asia Duty Free & Travel Retailing magazine 26 Pearl Street Mississauga,Ontario,Canada L5M 1X2 Tel:1-905-821-3344 Fax:1-905-821-2777 email: deepa@globalmarketingcom.ca

name

mailing address

❑ city

province/state

country

postal code/zip

(

) area code

(

phone

) area code

❑1

year US $60.00 1 magazine Issue & 12 eNewsletters

❑2

year US $80.00 2 magazine Issues & 24 eNewsletters

fax

❑

Enclosed is a check or money order made payable to Global Marketing Company Ltd.

❑

Bill me

❑

SIGN ME UP! I would like to receive a subscription to Asia Duty Free & Travel Retailing magazine

expiry date

credit card number

signature Payment in U.S. funds must accompany this subscription card.

Crossings International

The business end: logistics is a major factor in the company’s success

Growth curve

ANDREW BROOKS

Crossings International benefits from efficiencies of scale and quick turnaround

rossings International is present in 38 countries, with a total of 76 duty free outlets, most of them in airports. The East African countries of Kenya, Tanzania, Ethiopia and Uganda are doing especially well, along with South Africa and the Indian Ocean islands. Crossings is the official distributor for major tobacco manufacturers such as JTI, PMI, BAT and Imperial Tobacco, and the company lays claim to 95% of the tobacco segment in Africa. Crossings also supplies Al Fakher Shisha Tobacco to the duty free channel globally. In addition to tobacco, the company distributes major confectionery brands such as Perfetti Van Melle’s Mentos, Guylian, Ferrero Rocher and Supreme. Also on the list is Korres Natural products (natural cosmetics and fragrances) from Greece, and Crossings’ own “Columbus” line of handrolled cigars. “Tobacco is the major category in our distribution,” says Crossings Managing Director Salim Mohammed. “Most of the airports in Africa are fairly small, and they mostly focus on tobacco, spirits, confectionery and perfumes—hence we have almost a 30% share of space for tobacco in most of the outlets we cater to.” The company started out in 2007 and has enjoyed substantial growth since then, despite the worldwide economic recession that kicked in soon after the company was launched. Crossings International has grown eightfold and experienced 22% growth in 2011 compared with 2010. Air passenger traffic is growing well across Africa, and while exact numbers are difficult to get from 36

the airports, Mohammed estimates that the rate of growth is somewhere around 15% across the continent. Many African airports are in the process of upgrading their terminal facilities, or have completed improvements recently, and the associated duty free areas within the airports have been improved as a result. Ethiopia Terminal 1 is undergoing expansion, and a brand new terminal now under construction at Kenya’s Nairobi Airport will open next year. Economies of scale are slowly transforming the duty free market in favor of companies like Crossings, Mohammed says. “In the past, duty free operators used to deal directly with manufacturers. Due to low volume, the majority of the manufacturers weren’t interested in supplying many small outlets directly. And besides, it used to take a minimum of three months from the date of order to get the required products delivered. We’re able to service all of our customers within three to seven days.” With the majority of its airports now connected through Emirates Airlines, delivery to customers is now much more efficient. Crossings currently services its customers twice a month on average. “Duty free operators are very happy with our service,” Mohammed says. “Since they’re only three to five days away in terms of getting their shipments from us, they don’t have to invest heavily in stock or spend a lot to carry inventory.”

The combination of efficient traffic, better and more retail space in improved airport venues, higher frequency of delivery and virtually zero out-of-stocks for any items distributed by Crossings, means that the company’s business volume is growing aggressively. The operators, too, are benefiting from the higher sales numbers for products supplied through Crossings, Mohammed adds. The company hasn’t yet carried out any major promotions in Africa, although during last year’s FIFA World Cup in South Africa Crossings did promote some major tobacco brands with multipack price-off promotions, which generated positive sales results. The confectionery category is boosted through regular promotions carried out throughout the Christmas season. Crossings International started out with two staff members in 2007 and now has 14. The perfumes and cosmetics team is also due to be enlarged as a result of growth in that c line of business, Mohammed says.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2012 The Crossings team on site

Tobacco News

Just in time for TFWA AP in Singapore, Monus has announced the launch of two line extensions for the best-selling brand: FAST Black and White

Monus continues growth in duty free, announces extensions in FAST cigarette range Established in 1993, Monus was originally engaged in wholesale commodity trading. In 1999, a strategic decision was taken to create a cigarette brand using the company name. The brand FAST was launched two years later and in 2002 became the most sold cigarette in Serbia and Montenegro. Today Monus boasts a modern, automated cigarette manufacturing plant, producing 10,000 sticks per minute, with six manufacturing lines and the capacity to pack 4,000 kg of cut tobacco per hour. Monus exports 150,000,000 cigarettes per month while selling an additional 300,000,000 sticks domestically. The company has also been certified for 9001:2008 ISO standards. A strategic management decision was made in 2009 to increase exports and to enter the travel retail and duty free business. The company now exports cigarettes to Greece, Montenegro, Macedonia, Albania, and Bosnia and Herzegovina. In European travel retail specifically, Monus currently works with Dufry Serbia and Hellenic Duty Free in Greece. In Africa, Monus cooperates with duty free operators at airports in Uganda, Tanzania, Kenya and Ethiopia. In the Middle East, Monus has successfully launched Herald cigarettes at Abu Dhabi International airport through DFS and is currently in negotiations with other key operators in the region to further expand the availability of its product throughout the region. Monus also entered the Asia Pacific market with Monus Slims Aroma's (strawberry, grape and apple) in cooperation with duty

free shops in the Philippines, Vietnam, Laos and Macau. Just in time for TFWA AP in Singapore, Monus has announced the launch of two FAST line extensions for the best-selling brand: FAST Black and White. The company says that the new offerings are “characterized by a modern pack, new look cigarettes and an improved blend.” "In addition to the launch of the new extensions in the FAST range, we’re currently in the developmental stage for a new brand in the super premium segment," explains Zika Zorkic, General Manager of Monus. "At Monus we pride ourselves on innovation and for this reason continually seek to offer our customers more choices.”

JTI opens biggest ever smoking lounge in Dubai Japan Tobacco International (JTI) and Dubai International recently inaugurated five smoking lounges, aiming to offer to the passengers traveling from Dubai Airport a unique experience. This global travel hub now joins a select group of international airports like Munich, Zurich, Moscow, Kuala Lumpur and Geneva, providing passengers with a refined and relaxing environment to pause before boarding while enhancing the airport environment for non-smokers. “The Smoking Lounge concept was created in 2003 as we were looking for a solution to accommodate smokers and nonsmokers in the airports—a top priority for JTI. Since then, this innovative concept has been implemented in 21 airports around the world that have a combined traffic of more than 300 million passengers per year,” said David Francis, General Manager Worldwide Duty Free Vice President at JTI. “The Smoking Lounges proved to be a win-win solution for all parties—smokers are enjoying a break in a pleasant environment especially designed

for them, non-smokers benefit from a smokefree environment and the airport is providing travelers with a high quality service,” he added. The five smoking lounges at Dubai International have a total floor area of more than 600 square meters and are located in all three terminals, Terminal 1 offering the largest airport Smoking Lounge worldwide with a surface of 250 square meters. “This is just one more way in which Dubai Airports is striving to cater to the varying needs of the over 50 million passengers who travel through Dubai International every year. The lounge provides passengers who smoke with a well-ventilated and comfort-

able place to relax while ensuring our nonsmoking passengers can continue to experience a completely smoke-free airport environment,” said Eugene Barry, Senior Vice President Commercial at Dubai Airports. The initiative was achieved through JCDecaux Dicon. Commenting on the partnership, Emmanuel Russel, CEO Middle East & Africa at JCDecaux, said: “This is a remarkable service that was complex to execute but will effectively enhance passenger experience upon completion. We are glad to facilitate this project, and will continue to add value for our partners through innovative concepts, services and solutions.”

The five smoking lounges at Dubai International are located in all three terminals, with Terminal 1 offering the largest airport smoking lounge worldwide www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

CONFECTIONERY Souvenir Company: Godiva Chocolatier Description: An assortment of Godiva chocolate pieces in a Gold Rigid Box covered with a sleeve of different destinations. The souvenir box serves as a destination memento. The box contains 15 Godiva chocolates and is also available with 16 different destination sleeves Booth: H2

Chupa Chups Binocular

New & Notable

Company: Perfetti van Melle Global Travel Retail Description: This pair of working binoculars includes a Chupa Chups lollipop— “an ideal gift to keep children amused while travelling and on holiday” Booth: N3

Aloha Mix Company: Hawaiian Host Description: Aloha Mix includes an assortment of individually wrapped macadamia favorites including Hawaiian Host Signature Chocolate Macadamias, hand-selected macadamias covered in Hawaiian Host’s secret milk chocolate recipe, and MacNut Crunch, a combination of diced macadamias, rice and milk chocolate Booth: P13

ACCESSORIES

Lip Smackers Company: Scorpio Distributors Description: Popular lip balms in multipacks for the travel retail market. Each balm has its own scent and flavor— including Coca Cola, Sprite, Fanta and other well known names Booth: K28

Skin Doctors Range Company: Scorpio Distributors Description: Skin Doctors Cosmeceuticals bridges the gap between traditional cosmetics and cosmetic surgery by offering professional strength and science-based skincare treatments. The product range is formulated for specific skin problems Booth: K28

GULF-AFRICA DUTY FREE & TRAVEL RETAILING MAY 2012

LIQUOR Follador Prosecco Selection Company: World of Patria International Description: The Follador family has joined traditional vineyard cultivation with modern production techniques to create Follador’s Superior Line of wines, which includes 4 DOCGs in the “Torri di Credazzo” Cuvée, Cartizze, Brut and Extra-Dry categories Booth: A26

The Balvenie Tun 1401 Company: William Grant & Sons Description: This expression includes rare liquid from a number of casks selected by the industry's longest-serving Malt Master, David Stewart, and married in Tun 1401 at The Balvenie distillery Booth: K 21

Success in ITR comes in many colours.

As one of the leading confectionery players in ITR, you’ll find Mars’ brands at almost every travel location across the world. Focusing on the key purchase motivations our stunning product portfolio, containing the nr. 1 and nr. 2 brands M&M’s and Snickers, is backed by creative merchandising driving the purchase decision. Our combination of insight, category vision and global strength enables us to optimize the effectiveness of our unmatched portfolio of global favourites. Finally, we continue to develop exciting new concepts. For example, we now have all Wrigley products fully integrated into our ITR program, creating even more opportunities to drive your business.