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

N O V E M B E R 2 0 1 2 • M E D FA & M E E • V O L 2 2 , N O 3

MEDFA & MEE 2012

DXB’s Concourse A p.

WDFG’s Jordan p. operations

Traveller’s strategic sense p.

Interbev’s whisky offerings p.

NOTHING TO DECLARE

Letter from the Editor

Working through t’s never been Gulf-Africa Duty Free & Travel Retailing’s remit to focus on the bad. We have, of course, covered the unrest in MENA as it relates to the duty free industry in the past, but our feeling is that dwelling on the sociopolitical issues in pockets of the region does a disservice to the innumerable suppliers, distributors, airlines, operators and service providers who are still very much gaining ground in this active region of the world. At this year’s TFWA show, President of MEDFA John Sime addressed the media at the organization’s annual Cannes press conference and commented as succinctly as anyone could on the state of affairs as it relates to travel retail: “Obviously it’s a concern to any rightminded individual, but it’s best that we leave politics to the politicians. What will be will be in the region and it will follow whatever process it follows in each individual country. We live in a very dynamic region that’s experienced some unrest over the last 18 months. Our job as retailers is to work through that and try to grow our business.” Indeed, you’ll find this issue of Gulf-Africa Duty Free full of companies that are continuing to grow their businesses. Cliché as it may be, the old adage of doors closing and windows opening is as true now as it ever was, and it’s a common theme in this issue. On page 28, Iraq Duty Free tells us that it feels the country has slowly but surely improved year over year. Given increased foreign investment and a rise in oil production, the operator is hopeful that 2013 will be even better. You can also see on page 34 that among all of LS travel retail’s impressive projects around the world, COO Vincent Romet still considers the Middle East to be a vital piece of the puzzle for the company. On page 40, Middle East Airlines’ Mounir Seifeddine tells us that while big passenger increases weren’t in the cards this year, its largely Lebanese clientele are still purchasing onboard with an eye toward luxury items. On the supplier side, you’ll see on page 64 that Amouage has opened a new shop in Dubai’s Festival City. Also in the Gulf, Pernod Ricard’s David Freeborn is looking forward to some large-scale activations and partnerships with key operators and airlines. He gives us his outlook for Pernod Ricard’s business in the region on page 96. Indeed, there are more success stories in this issue than I could possibly mention here. The best way to learn about the positivity that still abounds in the region is to sit down and dig into this, our 2012 MEDFA issue. Duty free is about solutions to problems, creativity as opposed to stagnation. I look forward to discussing with you how the industry will continue to move forward in the months to come at this year’s MEDFA conference.

Kind regards, Ryan White Concessions, Liquor and Tobacco Editor ryan@dutyfreemagazine.ca

Gulf-Africa Duty Free & Travel Retailing (ISSN 0954-0592) is published four times a year (Spring, Fall and Winter) by Global Marketing Company Ltd., 26 Pearl Street, Mississuaga, Ontario L5M 1X2 Canada. It is distributed to duty free operators and distributors in the following countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE, Yemen, Algeria, Azerbaijan, Benin, Cameroon, Cape Verde, Djibouti, Egypt, Ethiopia, Gabon, Ghana, Guinea, Iran, Ivory Coast, Jordan, Kenya, Lebanon, Madagascar, Malawi, Mali, Mauritius, Morocco, Mozambique, Niger, Nigeria, Namibia, Pakistan, Reunion, Senegal, Seychelles, South Africa, Sudan, Syria, Tanzania, Togo, Tunisia, Turkey, Turkmenistan, Uzbekistan and Zaire, as well as to duty free suppliers worldwide. Subscriptions: $200 for one year, $300 for two years and $400 for three years. Art and photographs will not be returned unless accompanied by return postage. The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or editor. October 2012, Vol. 22, No.2. 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 DUTY FREE & TRAVEL RETAILING 26 Pearl Street Mississauga, Ontario L5M 1X2 Canada Tel: 1 905 821 3344; Fax: 1 905 821 2777 www.dutyfreemagazine.ca PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca

EDITORIAL DEPARTMENT EDITOR Hibah Noor hibah@dutyfreemagazine.ca CONCESSIONS, LIQUOR & TOBACCO EDITOR Ryan White ryan@dutyfreemagazine.ca ASSOCIATE EDITOR Melissa Silva melissa@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 nhassan@globalmarketingcom.ca CIRCULATION & SUBSCRIPTION MANAGER Deepa J deepa@globalmarketingcom.ca

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

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NOVEMBER/DECEMBER 2012 • VOL 22, NO 3

Contents

BOUTIQUES DE MAPUTO DUTY FREE

MIDDLE EAST AIRLINES

JMG-RESEARCH

WORLD DUTY FREE GROUP JORDAN

ETIHAD AIRWAYS

ADAC and Ink announce a collaboration that will result in a new quarterly magazine called AUH designed to connect the Emirate of Abu Dhabi with the world

From impressive inflight sales and a wide variety of duty free product offerings to aircraft and operating system upgrades, Etihad Airways remains unrivaled in the Middle East

DUBAI DUTY FREE

CHANNELS EXHIBITIONS

IN BRIEF

TOP STORY

IDFS TRADING

IRAQ DUTY FREE

30 32 6

LS TRAVEL RETAIL

Tourvest develops online retailing and pre-order strategy ■ International Travel Retail distributes the smell of love ■ Emirates offers first mobile phone service onboard A380 aircraft

Three’s a charm While many are aware of the impending opening of Dubai Duty Free’s new retail operations at Dubai International’s Concourse A, there are a host of other highly anticipated openings coming to the terminal

The value of experience As a result of over a decade in the inflight duty free sales business, IDFS Trading provides its airline partners with a one-stop shop for the best brands

Chasing stability Operations Director at Iraq Duty Free Nabil Moshin Ali tells us that the sociopolitical situation in Iraq is steadily improving, as are sales across the operator’s stores

ABU DHABI AIRPORTS COMPANY

Literary pursuits

Well on their way Dubai Duty Free experiences double-digit sales growth as it heads into the last quarter in pursuit of a US$1.64 billion year-end sales goal for 2012

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Strength in numbers Armed with a new growth strategy, LS travel retail is poised for continued success

Bountiful boutique Closing in on a profitable year, Boutiques de Maputo Duty Free has its sights set high with plans to increase promotional activities and current offerings

Soaring to the top With luxury-oriented passengers and a robust inflight duty free offering, Middle East Airlines is poised for increased sales when passenger numbers return to full force

Understanding the traveler JMG-Research unveiled its annual PAX behaviour study at TFWA WE and spoke with Gulf-Africa Duty Free about the results

Silver lining World Duty Free Group continues to see strong performance in Jordan, largely because of the country’s relative stability amidst pockets of regional unrest

Full speed ahead

Global goals This year’s Middle East Exclusive exhibition, with the backing of a powerful new partnership, takes square aim at worldwide leadership status

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Contents

58 54 58 62 64

A growing concern Delhi Duty Free has gone from strength to strength since it set a new benchmark in Indian travel retail at the capital's airport. And things can only get better

TFWA WE REVIEW

Breaking records TFWA WE 2012 was a huge success, effectively proving the resilience of the industry at a time when the economic situation in Europe is anything but ideal

Ahead of the slump Passenger traffic continues to grow worldwide, but some regions are doing better than others

82 86

ANTHON BERG

PERNOD RICARD GULF

INTERNATIONAL BEVERAGE

AMOUAGE

New horizons For successful luxury perfumer Amouage, there couldn’t be a better time to make the big push into duty free

68 70

MÄURER AND WIRTZ

TUMI

AIRLINES AND AIRPORTS

TRAVELLER LIMITED

DELHI DUTY FREE SERVICES

NEUHAUS

Strategic sense Traveller continues to articulate its portfolio with a carefully thought out market strategy

Strong scented Featuring a highly sought-after ingredient, the latest fragrance from Mäurer and Wirtz is positioned to perform well in the Middle East

Great expectations With its focus on quality and design, Tumi continues to build its travel retail presence

100

Neuhaus stays focused The original inventor of the praline continues to concentrate on quality and uniqueness

The glow of giving Anthon Berg takes gifting to a new level

LIQUOR REPORT

Room to grow The Middle East proves to be full of opportunities for diverse spirits suppliers looking to offer their wares to luxury-oriented travelers from all over the world

Ramping up From Absolut Unique to Chivas Brothers’ Blend and the continuation of The Age Matters campaign, Pernod Ricard Gulf’s David Freeborn tells us there’s a lot to look forward to in the months to come

Picking up on trends From single malts and blended Scotch to luxury spirits and capturing the interest of the Chinese traveler, International Beverage is well poised for success in the MENA region

100

KING’S TOBACCO

102

ROYAL AGIO CIGARS

106

JAPAN TOBACCO INTERNATIONAL

108

NEW & NOTABLE

Seizing the opportunity King’s Tobacco builds its travel retail business from the ground up by fostering strong relationships with its operator partners and concentrating on the quality of its products

Tailored for travel Royal Agio Cigars opens up the duty free market with new travel-oriented products and packages

BRIC’S

Lifelong success With 60 years behind it, Bric’s has mastered the formula for meeting consumer demand

KRAFT FOODS WORLD TRAVEL RETAIL

Kraft conquers Kraft Foods aims to drive growth with a new and innovative category vision along with a robust product offering

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

A commitment to the industry JTI reports heartening results for Q3 on the heels of being recognized by Frontier for its work in promoting cross-category purchases and driving footfall

Ritter Sport mini pouch ■ Tic Tac Collection ■ Surf Rider

In Brief

Emirates offers first mobile phone service onboard A380 aircraft

Mariem Ben Cheikh, CEO of International Travel Retail

International Travel Retail distributes the smell of love Lebanon-born pop superstar Ragheb Alama has launched his first fragrance, a spray EDP for men called Notes D’Amour. Gulf-Africa Duty Free recently spoke with Mariem Ben Cheikh, CEO of International Travel Retail, and learned that the company will be distributing Notes D’Amour in duty free. “The famous Lebanese singer put all his senses of love into a very exciting smell, in a soft and classy bottle and with amazing packaging and design, which makes the fragrance unique and special,” says Ben Cheikh. “It’s meant for men, but I will say it’s really meant for all lovers, as it’s simply the smell of love and elegance.” The fragrance has been developed in France for the “by Ragheb Alama” brand. It is available in a 100ml EDP and started shipping June 7. The woody, magnetic fra-

grance exhibits a combination of Lebanese cedar, jasmine, amber and musk. “After two years of research the result is a fantastic fragrance,” explained Ben Cheikh. “It’s been launched in all domestic markets within the UAE, Gulf and MENA regions. It was an airline exclusive aboard MEA and a travel retail exclusive at Dubai Duty Free for a one-month period.” In 2013 International Travel Retail expects to roll Notes D’Amour out across other duty free locations, including aboard more airlines, both in the Middle East and Europe. Ben Cheikh reports that so far the reception for the fragrance has exceeded expectations and she looks forward to a similar response as it makes its way to other markets. Good news for ladies who love the scent is that a version for the fairer sex will be released in the near future as well.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Emirates recently announced that it is now offering the world’s first inflight mobile phone service onboard an A380 aircraft, setting yet another record for inflight communications. In partnership with Emirates connectivity partner OnAir, passengers aboard Emirates’ A380 aircraft will now be able to stay in touch via phone calls or through the mobile data link on their personal devices with their family, friends and colleagues while inflight. The service is in addition to the OnAir WiFi service already available on Emirates A380 aircraft. The OnAir system allows passengers to use their own mobile phones to make and receive phone calls and text messages from Emirates A380 aircraft inflight, just as they would on the ground, using EDGE/GPRS connections through their mobile service provider. Emirates’ first A380 equipped with the full suite of OnAir connectivity departed from Dubai international Airport to Munich International Airport on October 2 and the first recorded A380 inflight call was placed to China while the aircraft cruised at 11,500 meters above the Gulf. “Our goal on every flight is to exceed our passengers’ expectations. We believe that exceeding expectations should not only apply to our cabin crew’s award-winning inflight service and our SKYTRAX ‘World's Best Airline Inflight Entertainment’ ice system, but also to our passenger’s desire to stay in touch while traveling,” said Patrick Brannelly, Emirates Vice President Corporate Communications Product, Publishing, Digital and Events. “Beginning in 1993 with first passenger satellite phone service to last year with our A380 Wi-Fi system, Emirates has always taken the approach that providing the latest in inflight service and connectivity is a key part of our passengers’ journey. Emirates continues to invest in the most innovative technology possible and promises to keep pushing the boundaries of inflight innovation for the benefit of our passengers.” A passenger enjoying inflight mobile phone service on an A380

S EA SON â&#x20AC;&#x2122; S G REETINGS Evocative scents. Exceptional Gifts.

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In Brief A large-scale Ferrari Essence Oud launch took place at the Dubai Mall earlier this year

Perfume Holding unveils new launches Perfume Holding, a leader in the semi-selective segment of the perfume market, opened up a regional office in Dubai last year, to increase its share of the Middle East market. The company says it is setting up a new travel retail division geared towards developing business in the Middle East, giving top priority to developing the Ferrari brand, both with airlines and airports. Speaking of Ferrari, Perfume Holding just launched Ferrari Essence Oud, which is being called the starting point of the brand’s “rebirth.” Also known as Agarwood, Oud has become coveted in the Middle East, and is the star ingredient of the new fragrance. The packaging features dark red

tones, lending strength and character to its appearance. When launched domestically this past January at the Dubai Mall Shopping Festival podium, Ferrari Essence Oud received outstanding results in UAE, Saudi Arabia and Kuwait. The fragrance is the first launch within the oriental-inspired Essence Collection and shares attributes with Silver Essence, which was launched this summer. This year also saw the addition of Ferrari Red Power to the Ferrari portfolio, and Scuderia Ferrari Fragrances range will welcome two new scents—Racing Red and Black Signature.

Looking ahead to spring 2013, Perfume Holding will launch the Scuderia Club—a new membership that provides members with exclusive offerings.

Tourvest develops online retailing and pre-order strategy With the rise in popularity of sites like Twitter and Facebook and more and more consumers purchasing products online, it’s been clear for some time now that a new opportunity exists for airport and inflight retailers to reach a segment of the population that values the convenience that online shopping and pre-ordering offer. While many are still working out exactly the best way to go about reaching consumers online, Tourvest Duty Free (TDF) has put in place a robust e-commerce strategy that has already proven itself with Virgin Atlantic. The operator has seamlessly integrated a customized online retail concept within Virgin Atlantic’s existing website and passen-

ger communications. Over the last 8 months, TDF has engaged a number of well established e-retailers to bolster the home delivery offering on Virgin Atlantic’s e-commerce site, thereby giving travelers more options and an extra incentive to purchase any number of popular items by earning or using their loyalty miles. “As a concessionaire, we don’t own the passenger,” says Max Williams, TDF’s Vice President Sales & New Business. “When we engage the customer we need to do it via the airline. As such, TDF remains absolutely invisible on the e-commerce section of Virgin Atlantic’s website, although we manage it 100%. It needs to be bespoke and tailored to the airline’s

“When we engage the customer we need to do it via the airline. As such, TDF remains absolutely invisible on the e-commerce section of Virgin Atlantic’s website, although we manage it 100%.” Max Williams, Vice President Sales & New Business, Tourvest Duty Free 12

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

branding, so in that sense we’re very much behind the scenes.” Williams tells us that the plan is working: “In the first month we actually increased traffic to the website by 44%,” he says. “The number of transactions was also up by 44% and web revenue was up by 48%.” The average transaction value at the end of the first month stood at a very solid £55 (US$90). Just as important as the sales results is the fact that TDF also increased its customer database by 25% over the first two months given e-commerce regulations which state that anyone who buys from a company online must register as a user. Williams tells us that TDF doesn’t plan on engaging the consumer in an ad hoc fashion going forward. The idea is to regularly reach out with deals and offers with a monthly email campaign. Furthermore, TDF is honing its social media acumen with the recent hiring of a dedicated web and social media manager. Another prime objective for next year is developing live online chat given its increasing popularity as a customer service tool.

In Brief Launching new flights to London, in addition to the addition of six other destinations recently, has been a factor in Air Arabia’s October passenger increases

Air Arabia passenger traffic grows 22% in October Air Arabia, the first and largest low-cost carrier (LCC) in the Middle East and North Africa, recently announced that it has welcomed 458,316 passengers in October 2012, an increase of over 22% compared to the corresponding month in 2011. The airline also reported that the average seat load factor—passengers as a percentage of total seats available—for the month stood at 80%, registering an increase of 3% over the figure for October 2011. “Combined with Eid break, which is a busy period for air travel across the region, the month of October has seen Air Arabia adding a set of new routes,” said Adel Ali, Group

Chief Executive Officer, Air Arabia. “As we continue expanding into new markets, more customers continue to take full advantage of Air Arabia’s affordable fares, demonstrating Air Arabia’s proven business model and product offering.” Air Arabia recently added six new destinations to its ever growing network: Erbil in Iraq, Uffa and Rostov in Russia, Odessa in the Ukraine, Pristina in Kosovo and Astana in Kazakhstan. The carrier also expanded operations from its Moroccan hub and launched new flights between Morocco and London, bringing Air Arabia’s global network to 81 destinations.

Gulf Air launches mobile check-in Gulf Air, the national carrier of the Kingdom of Bahrain, recently announced that it has introduced mobile check-in. In a few simple clicks customers can now check in using their internet-enabled mobiles from 24 hours in advance to 90 minutes until their flight’s departure. Gulf Air’s Director of Information Technology Dr. Jassim Haji said: “Launching mobile check-in comes as a part of Gulf Air’s business strategy to be on top of the latest trends and technologies so that we can provide our passengers with the most innovative self-service facilities. The mobile check-in facility is linked to the latest airport check-in systems, which Gulf Air has deployed at select airports that are being expanded. As people are becoming more reliant on mobile devices in their day-to-day life, the mobile checkin facility, I am sure, will be well received.” Currently the mobile check-in facility is available in Bahrain, Copenhagen, Doha, Dubai, Frankfurt, London, Larnaca and Paris CDG airports only. Gulf Air notes that more stations will be added as soon as permissions are received from the respective airport authorities.

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Top Story: DXB’s Concourse A High-end wines are particularly popular at the existing Le Clos store at DXB; as such, wines make up about 70% of the offering there

Three’s a charm

RYAN WHITE

MMI and ELR plan a host of F&B and retail concepts set to open in January 2013 at Dubai International’s new Airbus A380-dedicated Concourse A

ubai Duty Free’s outstanding performance at its existing operations at Dubai International has made it abundantly clear that the demographic passing through the airport is ready and willing to spend if the offer is right. And while much has been written about DDF’s new operations at Concourse A, set to open in early 2013, there are a host of other big projects, both F&B and retail, readying for the new concourse. Effectively picking up on the luxury focus of travelers at Dubai International, these new initiatives are sure to drive revenue for both the operators and the airport. Gulf-Africa Duty Free learned from Iain Delaney, General Manager – UAE at Maritime Mercantile International (MMI), that both MMI and Emirates Leisure Retail (ELR)—Dubai-based subsidiaries of the Emirates Group—have been seeing impressive performance at their existing retail and F&B operations and look forward to bringing a number of truly innovative concepts to Concourse A. Following the successful bid for six prime F&B and retail locations at Dubai International's Terminal 3 Concourse A, MMI and ELR have unveiled a series of retail innovations and new F&B concepts for the Middle East. Delaney told us that high on the list of priorities for both MMI and ELR is providing a one-of-a-kind experience for travelers passing through the new Airbus A380-dedicated terminal when it opens in January of 2013. In terms of F&B, travelers passing through the new terminal can

“MMI ELR aims to create the world’s best airport culinary and retail experiences and ultimately enable customers to escape the stresses of travel.” Andrew Day, CEO, MMI & ELR

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

expect to see the first Moët & Chandon Champagne Lounge; the first Giraffe restaurant outside the UK; the first Heineken Lounge outside North America; the first Costa Coffee Metropolitan format in an airport; and an innovative Jack’s Bar & Grill concept. On the retail side, MMI will be opening its second Le Clos luxury wine and spirits outlet, which will be the brand’s flagship store, with an eye toward catering to well heeled passengers from all over the world with a taste for luxury offerings. “ELR is very driven around bringing new concepts into airport travel retail,” Delaney told us. “Our mission statement is based around creating innovative, unique F&B experiences. The company is very aware of the important role that F&B plays in entertaining passengers and fostering positive experiences. “Le Clos, on the other hand, opened its first store in the existing Emirates concourse at Dubai International in 2009 and we won travel retail operator of the year from Frontier in our first year,” Delaney continues. “It’s been a bigger success than we could have possibly imagined and we’re very much looking forward to bringing this concept to T3 Concourse A.”

Innovation informed by experience MMI and ELR, which already operate over 30 outlets across nine domestic and international airports in Australia and the UAE (including all three terminals at Dubai International), see these new sites as a natural extension of both their F&B and travel retail portfolios. “We have a proven track record of running a wide variety of concepts in this environment and are delighted that we have been able to build on our strong relationship with Dubai Airports and significantly increase our presence at Dubai International through a portfolio of powerful global, as well as our own, brands,” said Andrew Day, MMI & ELR Group CEO, upon the official announcement of the news. “ELR’s aim is very clear and simple—to create the world’s best airport culinary and beverage experiences through innovative F&B concepts, delivered in world-class environments and supported by outstanding customer service, 24-7.”

Top Story: DXB’s Concourse A

Sales in the Spirits category are up 14.2% in the first eight months this year as compared to the same period last year

The existing Le Clos store at Dubai International; the new flagship location will open in Concourse A in January 2013

The ELR offer takes into consideration Dubai’s position as an international hub and the brands and concepts have been selected to resonate with passengers and to provide great value experiences to customers, as well as excellent returns to all stakeholders. “The food and beverage element of an airport is about enhancing the traveler’s experience to seamlessly interplay with retail as well as providing a relaxing and enjoyable experience during passenger dwell time,” adds Day. “Our proposed food and beverage offer within the new concourse at Dubai International is designed to complement the multicultural and multinational flavor of Dubai and its visitors, so enhancing the ‘Dubai Experience.’ MMI ELR aims to create the world’s best airport culinary and retail experiences and ultimately enable customers to escape the stresses of travel.” For Delaney’s part, he tells us the new Le Clos flagship store is backed by three years of luxury retailing experience at the first Le Clos store at DXB, not to mention MMI’s years of domestic distribution experience in the Middle East. Indeed, the company has sharpened its travel retail acumen by catering to spirits lovers who are connoisseurs in the highest sense of the word and, just as importantly, have the buying power to back up their taste for rare liquids. Chinese and African consumers are the bread and butter of MMI’s existing Le Clos business at Dubai International largely due to the fact that the Emirate plays a major role in the trade route between the two regions, and Le Clos has over 100 VIP Chinese customers who are regularly purchasing at the existing store. High-end wines are particularly popular with this demographic. As such, the offering at the store is reflective of this, with wines making up about 70% of the mix.

An international brand To better serve its Chinese clientele, Le Clos employs staff fluent in Mandarin. In fact, MMI regularly hosts events in China for its VIP customers featuring expert sommeliers and even special guests from popular Chateaus. “In the last twelve months, we’ve hosted four dinners in China for the VIP group,” Delaney says. “It’s been fantastic in driving loyalty.” Of course, Dubai is an international hub, and in total the customer service representatives at Le Clos speak 17 languages to ensure that most nationalities that pass through Dubai International 20

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

can be served in their native language. And while the events hosted in China are, at the moment, aimed at driving loyalty at the Dubai operations, Delaney hopes the Le Clos concept will be making trips of a different sort in the not too distant future. “What we’re doing now is expanding the footprint within Dubai Airport with an eye toward moving internationally eventually,” Delaney explains. “We have a number of conversations happening at the moment about opening internationally, but the first phase will be expanding our footprint in Dubai with the new terminal and the flagship store.” Not surprisingly, MMI is looking at Asia-Pacific airports as a prime possibility, with Africa and the Indian subcontinent also on the radar. While Delaney couldn’t mention specifics, he did tell us that major airports are the areas of focus as the Le Clos marque is really only sustainable at airports that service a large proportion of highspending international travelers.

Something special Before branching out further, though, MMI has the not insignificant matter of the T3 Concourse A opening to contend with. In line with the Le Clos commitment to offering only the best in products and going the extra mile in terms of customer service, the layout of the flagship store is sure to be a footfall driver. The new location will measure 160 square meters and will feature a real whisky still from a prominent whisky distillery in Scotland as the major centerpiece. The still was shipped to Dubai specifically for the store and specially refinished. Standing five meters high, travelers will walk underneath the still as they enter the store. “It's a nice way of introducing consumers to the story of the Le Clos brand,” says Delaney. Nice indeed. The still is a unique finishing touch appropriate for a retail concept that has been built from the ground up to be anything but ordinary. In fact, Delaney tells us that whether speaking of MMI or ELR's projects, going above and beyond is a matter of priority. “We want to bring consumers something they've never seen before, both on the retail and the F&B side,” he explains. “But more than that, this theme also needs to be fully present in the customer service aspect and the products we sell.”

Top Story: DXB’s Concourse A

Lounging about

The Heineken Lounge at DXB’s Terminal 3, Concourse B just opened in September and will be followed by another lounge in Concourse A next year

he first Heineken Airport Lounge in the Middle East recently opened in Dubai International Terminal 3, Concourse B. Located near Gate B27, the Heineken Airport Lounge at Concourse B brings together the region’s most popular international premium lager with one of the world’s fastest growing international airports, which is also host to the world’s most international airline—Emirates. This is also the first Heineken Airport Lounge in the world outside of North America, following the launch of a single Heineken Airport Lounge in the US and one in Canada. A further Heineken Airport Lounge outlet is planned for Dubai International Terminal 3 Concourse A, scheduled to open in the first quarter of 2013. The Heineken Airport Lounge concept offers a new and refreshing experience to travelers. It combines the convenience and benefit of a traditional bar with the opportunity to escape, through its carefully designed alcoves and seating arrangement. With complimentary Wi-Fi and power points to recharge phones and laptops, as well as daily complimentary newspapers, it also offers a respite for the discerning business traveler. The Heineken Airport Lounge puts a strong emphasis on sports media coverage and customers can now also keep up to date with the latest scores with live screenings throughout the venue, complemented by more general entertainment through the many display screens. The Heineken Airport Lounge offers Heineken and Heineken Extra Cold on tap and in bottles as well as various sizes to suit all thirsts, as well as a broad selection of other alcoholic and non-alcoholic beverages, alongside gourmet snacks and light meals. The food menu consists of traditional international favorites with an emphasis on speedy service for the time-conscious traveler, making it the perfect destination stop before boarding. As mentioned, ELR and Heineken will follow up this launch with the opening of another Heineken Airport Lounge at the new Concourse A (dedicated A380 Terminal) at Dubai International, currently under construction and due to open in the first quarter of 2013. ELR successfully won a total of six food & beverage outlets, including the Heineken Airport Lounge at the new Concourse. Eugene Barry, Senior Vice President Commercial at Dubai Airports, comments: “Emirates Leisure Retail understands the international travel retail business and we are working closely with their team to

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

The Heineken Lounge offers Heineken and Heineken Extra Cold on tap and in bottles, as well as a broad selection of other alcoholic and non-alcoholic beverages

introduce some great new concepts at Terminal 3, Concourse A and B, such as the Heineken Airport Lounge. Bringing this kind of premium brand to Dubai International, one of the world’s largest aviation hubs, together with a business class lounge style experience supports our objective of delighting passengers.” The Heineken Airport Lounge at Dubai International Terminal 3 Concourse B opened on September 6, 2012 and is already proving popular with travelers. “We are delighted to partner with Heineken in bringing a world class brand and its innovations, such as the Heineken Airport Lounge, to Dubai. It reflects our core skills of managing international F&B brands combined with our travel retail—and specifically airport food & beverage—management expertise and experience,” said Andrea Day. “Heineken is a leading international premium brand with enormous international appeal and so creating two outlets at Dubai International—two of only four Heineken Airport Lounges in the world and the first outlets in the Middle East—is a very exciting prospect for us,” Day continued. “The Heineken Airport Lounge concept has been developed specifically for the travel market as an airport bar and a natural extension reinforcing the position of Heineken as the world’s most international premium beer brand. The ELR team has tailored this concept for Dubai International and the initial response has been excellent.”

Top Story: DXB’s Concourse A

Terminal 3 Departures at Dubai International Airport

The numbers say it all

s Iain Delaney told us, the Le Clos concept only works at major airports with a large number of high-spending travelers passing through. As such, Dubai International is the perfect place for such a project. Dubai International is the world’s fourth busiest international aviation hub, and according to the most recently reported statistics, the airport recorded double digit growth in passenger numbers in September. Passenger traffic for the month surged 12.8% to reach 4,780,394 compared to 4,236,587 recorded during the same month in 2011. The strong performance during the first nine months—seven of which recorded double-digit growth—has boosted the year to date traffic by 13.4% to 42,565,340 compared to 37,547,744 recorded during the corresponding period last year.

“So far it’ s been a very good year for Dubai Airports and we have had a great start to the last quarter with a rush of travelers attending a number of international events.” Paul Griffiths, CEO, Dubai Airports Western Europe recorded the largest increase in total passenger numbers in September (+170,934 passengers), followed by the Indian subcontinent (+96,734), the AGCC (+63,226 passengers), and Africa (+58,104 passengers). Contraction in traffic on Middle Eastern routes continued in September (-7,747) as a result of the ongoing situation in certain parts of the region. The strongest markets in terms of percentage passenger growth were South America (+106.3%) driven by new Emirates airline’s 24

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

operations to destinations there, followed by Russia and CIS (+27.7%), Australasia (20.6% ) and North America (+20.1%) as both demand and capacity increased on routes to Dallas, Seattle and Washington that were launched during the year. Aircraft movements in September increased by 3.9% to 27,909 from 26,860 recorded during the same month in 2011. The year-to-date movements totaled 253,973, up 6.2% to 239,243 movements between January and September 2011. Dubai International handled 193,261 tons of cargo in September, an increase of 9.1% over 177,128 tons recorded during the same period in 2011 and marks the highest monthly increase since October 2010. The year to date freight volumes reached 1,674,997 tons compared to 1,615,172 tons handled during the corresponding period last year, an increase of 3.7%. August traffic was also up a healthy 20%. Another milestone came in July of this year, when the airport’s monthly traffic surpassed 5 million passengers for the first time. “July’s traffic volumes mean that an average of 112 passengers passed through our airport every minute of every day,” said Dubai Airports CEO Paul Griffiths. “By 2018, when we expect to complete the expansion of Dubai International, that [number] will soar to just under 170 passengers per minute. That is why we are investing US$7.8 billion in the future of this airport. In turn that investment will drive an increase in aviation’s contributions to Dubai’s GDP from the current US$22 billion to US$45.4 billion in 2020. “So far it’s been a very good year for Dubai Airports and we have had a great start to the last quarter with a rush of travelers attending a number of international events such as the recently concluded Islamic pilgrimage of Hajj, the World Energy Forum and the ongoing Eid in Dubai celebrations,” continued Griffiths. “With the Emirates airline Dubai Rugby Sevens and Dubai International Film Festival lined up in Dubai’s calendar over the next two months, we expect to see the robust growth continue through the remainder of c the year.”

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A cross section of the products that IDFS offers for onboard duty free sale with its airline partners

IDFS Trading

The value of experience BY

RYAN WHITE

As a result of over a decade in the inflight duty free sales business, IDFS Trading provides its airline partners with a one-stop shop for the best brands n addition to its cooperation with Aer Rianta on the highly successful Delhi Duty Free project, IDFS Trading also operates duty free retail concessions onboard a number of major airlines in South Asia. With over 12 years of experience in this field, the company prides itself on understanding its various clients' passengers and tailoring the offering accordingly to maximize sales results. The company considers

“Asia, and particularly South Asia, is going to be one of the key growth drivers worldwide and the region is forecast to be the fastest growing aviation market over the next twenty years.” Chiragh Oberoi, COO, IDFS Trading its core strengths to be its merchandising experience, wide selection of top brands, warehousing and logistics capabilities, inventory management skills and personnel training experience. We recently spoke with Chiragh Oberoi, COO at IDFS Trading, about business so far this year. Above all, he told us that IDFS Trading values being a company that partners can trust by ensuring that the strong retailing tradition started over a decade ago continues to flourish now and in the future. Gulf-Africa Duty Free: What airlines are you currently working with and how are passenger numbers with these carriers? Chiragh Oberoi, COO, IDFS Trading: In 2005, IDFS began its foray into airline duty free with Jet Airways. Subsequently, IDFS also won the inflight duty free concessions contracts for premium carriers such as Air India and Kingfisher Airlines. IDFS has recently been awarded the inflight duty free concession for Maldivian Airlines, commencing this year. We are catering to around 4 million passengers with Jet Airways, 1 million passengers with Kingfisher Airlines and around 4 million passengers with Air 26

India. From Maldivian Airlines we are expecting a load factor of 80%-85% on their routes. IDFS services around 29 inflight destinations around the world. GADF: How are sales performing this year as compared to last year? CO: Due to our healthy relationships with clients, understanding of consumer behavior, infrastructure and innovative practices, overall sales have been on an upward swing and we've achieved a revenue growth of 20% year on year to the end of September. GADF: What are your top three selling categories? Within those categories, what are some popular brands or products? CO: Our top three categories are Spirits, Tobacco and Perfume & Cosmetics. In Spirits, Johnnie Walker Black Label and Chivas Regal 12 year old are our top sellers. Popular tobacco products include Marlboro Lights and Benson & Hedges cigarettes. Finally, in Perfume, passengers are purchasing products from Chanel, Dior and Davidoff, while Estée

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Lauder, Dior and L'Oreal products are hits in Cosmetics. GADF: In terms of purchasing habits, have you noticed any major shifts lately? CO: Yes, we have noticed a pattern shift in the buying behavior of our consumers. There's been a slow move from traditional duty free categories like Spirits and Tobacco towards Jewelry, Fashion and Travel Accessories. More

GADF: Are you introducing any new technology onboard? CO: The POS hand held terminals currently used are crew friendly with cutting edge software in line with recent technological advances. We are also looking at mobile

GADF: Can you give us your opinion on the future of aviation in South Asia? What about inflight retailing specifically? CO: Asia, and particularly South Asia, is going to be one of the key growth drivers

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worldwide and the region is forecast to be the fastest growing aviation market over the next twenty years, with an expected growth of 5 to 6 percent per annum. This will in turn lead to major investments in all sectors of the industry. In terms of sales of new aircraft and business generation, South Asia will account for a major share of global airline traffic within 20 years. As economies start to recover from the recession in the next two to three years it will have a positive impact on airline traffic growth. Regarding the future of inflight retailing, I think it will go beyond the walls of the aircraft's cabin. Cutting edge technology will enable new innovations that will help to extend the relationship between retailer and consumer and go further toward satisfying customer needs and wants at any and all points during the journey. There will be a more customer centric approach in the years to come, I believe, and more retailers and airlines will begin to use the passenger's information—demographics and itineraries, for example—to better tailor not only prodc ucts, but how they're sold.

IC E

GADF: Has IDFS Trading been recognized by the industry lately for the work it does? CO: One of the major recognitions we received recently is being shortlisted as a finalist in the category of “Inflight Retailer of the Year” at the 26th annual Frontier Awards in 2010. The ceremony is considered to be the Oscars of the duty free industry, so we were very proud to receive this nod from Frontier.

GADF: Can you walk us through the training process for inflight sales staff? CO: We have a dedicated team for training cabin crew on inflight duty free processes, including selling techniques, soft skills, brand knowledge and usage of POS hand held terminals. Training also ensures that salespeople have adequate product knowledge, that they are adept at demonstrating merchandise and that they have solid customer service skills. The main purpose of the training is to make sure the crew has a positive mindset and take the “people person” attitude, in addition to being more commercially aware as a means of understanding the bigger picture and how their performance affects the airline as a whole.

GADF: Who are your main customers? CO: Our main customers are Indians. They make up about 65% of passengers who purchase from us. The other 35% of passengers make up nationalities from the rest of the world.

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Iraq Duty Free Across Iraq Duty Free’s operations, Fragrances, Confectionery and Tobacco are the three top-selling categories

Chasing stability

RYAN WHITE

Operations Director at Iraq Duty Free Nabil Moshin Ali tells us that the sociopolitical situation in Iraq is steadily improving, as are sales across the operator’s stores

raq Duty Free—managed by Financial Links, part of the ASK Group of Companies—has operations in Baghdad, Basra and Sulaimaniya Airports. In 2003 ASK was granted the above concessions to 2019, and since that time Iraq Duty Free has been plying its trade and maintaining a generally steady growth in sales despite sociopolitical tensions in the region. In addition to operating duty free stores at the above airports, Iraq Duty Free is also the exclusive distributor of many popular brands within the country and is currently in negotiations with a number of other brands to distribute their products in the Iraqi market. The company has its own warehouses and truck fleet, effectively giving brands that want to enter into Iraq the benefit of a logistically self-sufficient distribution partner. Indeed, Iraq Duty Free ships a wide variety of products to Iraq from Turkey and Dubai on a regular basis and despite well publicized sociopolitical issues in and around the country, Operations Director for Iraq Duty Free Nabil Moshin Ali tells us that both the distribution and duty free businesses are growing.

Iraq Duty Free is managed by Financial Links, part of the ASK Group of Companies

passengers, while at Baghdad Airport, 13,735 passengers departed and 25,975 arrived during the same month. While August 2012 passenger statistics weren’t available for Sulaimaniya Airport, Moshin Ali noted that in 2011 there were 126,873 departing passengers and 121,274 arriving passengers. Although year-on-year comparisons in passenger statistics weren’t available, Moshin Ali did tell us that Iraq Duty Free’s sales in August are up a respectable 18%. Despite this, he said, the sales increases still haven’t

“Our business has been growing and more opportunities are appearing for investment in the country parallel to the growing stability and increasing oil production.” Nabil Moshin Ali, Operations Director, Iraq Duty Free

“The political situation is steadily cooling down,” says Moshin Ali. “Estimates indicate that it will take about 5 years for Iraq to reach complete stability. However, I can tell you that 2012 has been better than 2011, and 2013 is expected to be better than this year. Our business has been growing and more opportunities are appearing for investment in the country parallel to the growing stability and increasing oil production.” At Basra Airport, August 2012 saw 4,784 departing passengers and 6,059 arriving 28

overtaken average traffic increases at the airports where Iraq Duty Free operates, suggesting that the country is experiencing some rather robust increases in traffic this year. Across Iraq Duty Free’s operations at the three airports, Moshin Ali notes that Fragrances, Confectionery and Tobacco are the three top-selling categories. In Perfumery, Hermes, Calvin Klein, Carolina Herrera and Paco Rabanne fragrances are the most popular, while in Confectionery brands such as Mars, Nestlé and Cadbury are the top sellers.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Finally, in Tobacco, Iraq Duty Free is seeing strong sales of Kent cigarettes. Additionally, locally made candies and souvenirs are also popular with the growing number of tourists visiting the country. Despite this, Moshin Ali tells us that Iraqis make up the majority of shoppers at the company’s stores. Given the increase in traffic and spending at Baghdad Airport especially, Iraq Duty Free is committed to making sure that the shopping environment is top notch for travelers. As such, the operator is currently performing some major renovations at Baghdad Airport’s Terminal C Departures store, installing a new marble floor, as well as a new ceiling complete with redesigned lighting fixtures. “The store will be more of an open concept than it was before,” explains Moshin Ali. “In addition to the renovations, we’ll also be adding about 120 square meters of floor space, which will benefit some of our top categories.” The Fragrances, Watches, Electronics, Personal Care, Confectionery, Fashion and Luggage categories will all see increased space when the renovations are complete. Travelers at Baghdad Airport can expect to see the Terminal C Departures work finished by mid-December of this year. “We’re hoping that the new concept will attract more passengers who might normally purchase arrivals duty free at their destination and convince them to take a look at the wide variety of products we offer at our c Departures store,” says Moshin Ali.

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Abu Dhabi Airports Company

The new magazine will be available for free to passengers traveling through Abu Dhabi International Airport

Literary

pursuits

ADAC and Ink announce a collaboration that will result in a new quarterly magazine called AUH designed to connect the Emirate of Abu Dhabi with the world BY RYAN WHITE

bu Dhabi Airports Company (ADAC) and Ink, the media experts in connecting with travelers, have announced that they will launch the first magazine for Abu Dhabi International Airport, which will be called AUH. Aimed at the 1.2 million passengers who are welcomed at the airport each month, the new quarterly magazine will be available from late October. Gulf-Africa Duty Free had the opportunity to speak with Dan Cappell, Senior Vice President Commercial, about the new magazine. She tells us that while little was published before the official announcement, the magazine has been in the works for some time now. “ADAC has been planning to launch an airport magazine for a while and this partnership was borne from an official tender process,” Cappell explains. “Ink was carefully selected following a thorough pitch process involving a number of local and international publishing houses.” AUH will be an innovative travel and lifestyle publication that puts Abu Dhabi at the heart of the world. Editorial begins at the airport, covering its extensive quality services, and then moves on to cover all aspects of life in Abu Dhabi, from entertainment to culture, shopping and nightlife. Stories then travel further afield to highlight the attractions of the UAE, followed by more extensive pieces on short-, mid- and long-haul destinations serviced by Abu Dhabi International Airport. Among other features, the first issue will carry stories on Rome, Sydney, Chicago, Cairo and Nairobi. Of course, Cappell confirms that the retail offer at Abu Dhabi International Airport will be an important part of the magazine: “The idea of the magazine is that of a ‘lifestyle’ type of publication, so naturally the magazine will be highlighting the retail offer,” she explains, “including special offers, exclusives, and so on, with quality photo features on 30

Editorial for AUH begins at the airport, covering its extensive quality services, and then moves on to cover all aspects of life in Abu Dhabi

items available at DFS and other concessions. These components will be published with relevance to seasonality and events.” The new magazine will be available for free to passengers traveling through the airport and, in addition, will be available at selected outlets around Abu Dhabi. “Abu Dhabi is fast establishing itself as one of the most exciting cities in the Middle East and we want the new magazine to reflect that,” said Michael Keating, Executive Creative Director at Ink, upon the official announcement of the magazine. “The magazine is a fantastic opportunity to engage with the thousands of people coming through the airport each day and tell them about all the world-class restaurants, hotels, shopping, entertainment and culture that Abu Dhabi has to offer. “We were given a clean slate to come up with the design for the magazine and as a result have one of the most attractive and innovative layouts I have worked on,” said Keating. “The magazine is going to be fresh and exciting with some fantastic content already planned for the first few editions. We already believe that this is a magazine that we are all going to be very proud of.”

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

“ADAC is looking forward to producing the official Abu Dhabi International Airport magazine, and is delighted to have chosen Ink to be its partner,” said James E. Bennett, Chief Executive Officer at ADAC, upon the announcement of the partnership with Ink. “This magazine is aimed at all travelers arriving, departing or transferring at our airport. Through its experience and ongoing insights, Ink has demonstrated a thorough understanding of this audience, coupled with innovative creative concepts.” Of course, the end goal of any endeavor such as this is to better serve the customers. Cappell tells us that the magazine will not only provide original and useful content, but will also serve as an airport guide. Several pages of each issue will be dedicated to airport maps, facilities and services. Furthermore, the magazine will provide passengers with seasonal features on all network destinations. The magazine’s editor will be Andrew Humphreys, who has previously worked for Time Out International, as well as on Gulf Life, J Magazine for Jazeera Airways and c bmi’s Voyager.

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Dubai Duty Free

Well on their way BY

RYAN WHITE

Dubai Duty Free experiences double-digit sales growth as it heads into the last quarter in pursuit of a US$1.64 billion year-end sales goal for 2012 s Dubai Duty Free headed into a busy last quarter of 2012, sales up to the end of September reached US$1.14 billion, representing a 10% increase over the same period last year. The performance places the operation very much on track for yearend sales of an estimated US$1.64 billion. Perfumes, Liquor and Gold continue to be the top three selling categories at Dubai Duty Free, with sales of Perfumes reaching US$173 million, representing an increase of 15% over last year. With Perfume sales accounting for 15% of total Dubai Duty Free sales, the operator plans to open a second Perfumes and Cosmetics (P&C) retail area in Concourse B at Terminal 3. Covering some 240 square meters, the new shop will be located on the West side of the Concourse and is scheduled to open by the end of the year. Commenting on the top selling category, Colm McLoughlin, Executive Vice Chairman of Dubai Duty Free, said: “We are constantly looking at our retail offer at Dubai International and are constantly looking at enhancing it. In the case of Perfumes and Cosmetics, which are core categories, we have had several developments this year, including the opening of a Jo Malone retail area in Concourse B, the opening of a second Kiehl’s area, this time in Concourse C in Terminal 1, and the installation of a new Tom Ford unit, also in Concourse C. “The opening of a second P&C area in Concourse B later this year will enable us to

Dubai Duty Free’s sunglasses store in Terminal 3 of Dubai International Airport

extend our existing product range and to introduce some new brands that we have not formerly been able to do due to space constraints in the existing shops.” Meanwhile, the second and third rated categories, Liquor and Gold, achieved year-todate sales of US$168 million and US$114 million respectively for the first nine months of the year. Sales of Cosmetics rose by 16% to US$73 million, while Confectionery grew by 17% to US$91 million, accounting for 8% of total revenue. Sales grew across all three terminals, with Terminal 1 sales growing by 9%. Sales in Terminal 2 rose by 15% and Terminal 3

become an annual celebration for all passengers using the airport on that day. “We started this promotion when we celebrated our 20th anniversary in 2003 and it has become a popular day with travelers, some of whom book their flights in order to shop on that day,” says McLoughlin. “Last year, the operation achieved magnificent sales figures of US$24 million—or US$1 million per hour—on the anniversary day, and we are looking forward to trying to break that record.” Apart from the anniversary celebrations, this past August 16 is a good example of just how much activity can happen at Dubai

“We are constantly looking at our retail offer at Dubai International and are constantly looking at enhancing it” Colm McLoughlin, Executive Vice Chairman, Dubai Duty Free

sales were up by 10% over the same period last year. Overall Departure sales have grown by 10% while overall Arrivals duty free sales have risen by 14%. Looking ahead to the remainder of the year, Dubai Duty Free will celebrate its 29th anniversary on December 20 and as usual the operation has plans in place to make this a memorable occasion. For starters, the anniversary day will be marked by a 25% discount on a wide range of merchandise, for what has

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Duty Free’s stores in a single day: As the result of a number of special Eid offers on a variety of products, sales at DDF’s stores on that day alone soared to US$8.25 million. In readiness for the opening of Concourse A in the first quarter of 2013, Dubai Duty Free has recruited 1,053 new staff so far this year and will end the year with around 5,000 employees in total. Of the original 100 staff recruited in 1983, 47 remain c in active service.

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LS Travel Retail

Strength in

numbers

Armed with a new growth strategy, LS travel retail is poised for continued success BY MELISSA SILVA ith a new growth strategy in place, 2012 has proven to be a very profitable year for LS travel retail (LS tr). With a turnover of over €1.1 billion (US$1.4 billion), sales year-to-date compared to last year exceed +20%. This is despite rather flat—and at times—declining traffic in most of the airports where the company operates. “Our global spend per PAX across all our operations has grown by more than 10% and the footfall in our stores across all our operations has increased by more than 25%,” says Vincent Romet, Chief Operating Officer. This impressive performance in a challenging environment—a global economic slowdown, slow growth in passenger traffic and unfavorable weather conditions in Europe—is based on a number of factors: the gain of new air and rail concessions; a desire to acquire new businesses across the continents where the LS tr operates (Asia-Pacific, Europe, Middle East, Africa and North America) and the improved performance of existing networks, with the successful implementation of a number of business initiatives and collaborations.

Global strides In France, the turnover generated on duty free and luxury sales was up by +23% by the end of June due to the acquisition of fashion outlets at Paris airports, the modernization of retail outlets and commercial initiatives undertaken in French airports, particularly in Lyon, not to mention the opening of the site on Réunion Island and good inflight performances. 34

The travel essentials business increased by +3.2% as a result of the effects of transforming and developing the network and especially due to the opening of new concepts—Hubiz on rail networks and TRIBS in airports—as well as winning new calls for tenders. In Germany, business was up by +10%, largely due to the opening of six new airport outlets. Based on this increase, it’s likely that the company’s decision to postpone the opening of nine new sales outlets in Berlin International Airport until March 2013 didn’t have any detrimental effects.

Recent store openings in Paris Charles de Gaulle S4 and AC terminals—Buy Paris Duty Free and Buy Paris Collection

the acquisition of outlets of the shop chain 24 FEE that LS tr acquired in the Czech Republic on January 1, 2012 and the development of sales outlets in the Paul franchise (also in the Czech Republic) the Food Service turnover has increased by +6%. In Romania and Bulgaria, sales rose by +20% as a result of the expansion of the network and activity showed a growth of +10% in Spain, largely due to sales in fashion outlets in Malaga and Alicante. Additionally, LS tr acquired two fashion boutiques Geneva Airport this past March. Despite being affected by a very high Australian dollar and declining book sales, sales in the Pacific region increased by +4.5%, a result of modernizing the shops at La

“Our global spend per PAX across all our operations has grown by more than 10% and the footfall in our stores across all our operations has increased by more than 25%” Vincent Romet, Chief Operating Officer, LS travel retail Business increased by +19% in Poland, thanks to the favorable effects of Euro 2012 with an increase in traffic and the sale of souvenirs. Weakened competition at Warsaw Airport and the expansion of the network with the takeover of three sales outlets also contributed to this increase. Performances recorded in the Czech Republic are especially newsworthy for LS tr, with an increase in sales of +34%. There was a rise of 90% in sales with the purchasing of 16 sales outlets from UG-AIR. The travel essentials turnover increased by +4% despite the decline in press sales, and with

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Tontouta Airport in New Caledonia (+40%) and the revenue generated by the New Zealand retail outlets acquired in the first half of 2011. Business activity continued to develop in Asia in the first half of 2012 due to the favorable growth in traffic and gaining new concessions, specifically 57 extra sales outlets in China, Singapore and Hong Kong. As a result, turnover has increased by +43%. Retail trade in North America has increased by +2%, particularly with the gain of concessions for travel essentials in Boston, Edmonton and Montego Bay, as well as the

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LS Travel Retail

LS recently gained the fashion concession in Terminal 3 at Xi'an Xianyang International Airport, Xi’an, China

success of the iStore concept, despite the shutdown of operations in Winnipeg.

Spotlight on the Middle East The Middle East region alone has been a significant contributor to the success experienced by LS tr this year, with growth in sales from Relay stores at Abu Dhabi International Airport (AUH) exceeding 20% yearto-date compared to the same period last year. New categories experiencing the most growth include personal care, graphic novels and mobile phones/tablet accessories. Existing categories witnessing high numbers include magazines—driven by technology, specifically bookazines—and books, thanks to the success of the Fifty Shades trilogy, of which LS tr has sold over 600 copies. As for future developments, plans are in the works to refurbish two of the existing stores at AUH into the latest generation of the Relay concept. “Due to the continued excellent working relationship with Abu Dhabi Airports Company (ADAC) and with the strong support LS tr receives from ADAC, the company expects the opportunity for additional news stores at AUH,” Romet tells Gulf-Africa Duty Free. In addition, Romet shares that in Bahrain, Jashanmal plans to convert one of its legacy outlets into a Relay store.

On a roll The company’s impressive sales performance has extended to the development realm. The first half of the year was marked by the completion of a number of acquisitions, including DFS WL in the Pacific (New Zealand), Geneva Airport Fashion and duty free businesses at Rome Airport and by the continuation of organic growth and efforts to modernize networks—the opening of Terminal S4 and the link connecting terminals 2A and 2C at Paris CDG and gaining the fashion 36

A new Aelia duty free store at La Tontouta Noumea International Airport

concession in Xi’an, China. Winning food outlet calls for tenders at Frankfurt railway station and travel essentials in Dallas, as well as the call for tenders for “boutiques du quotidien” on the French rail network serve as additional efforts made by LS tr to modernize networks. With recent store openings in Paris Charles de Gaulle S4 and AC terminals—Buy Paris Duty Free and Buy Paris Collection—as well as in New Caledonia, La Reunion and in Prague. The company also plans to renovate its recently acquired stores in Roma, Italy and some stores in existing terminals in Paris, including the 2F Terminal.

the premium products are in the lead. Tobacco is the only category that differs, as growth in the category is generated by new brands, such as Chunghwa or Vogue and the value-for-money brands. Regarding sales, the Chinese contribute the most, followed by the US, Russia, Japan and Algeria. As for the average amount each passenger spends in terms of core categories— Liquor, Tobacco and Perfumes & Cosmetics— China takes the lead, followed by Russia, Algeria, the US and Japan. In terms of Fashion and Accessories, China also comes in first for the amount spent per passenger, followed by Russia, Japan, Korea and the US.

Conquering categories

Giving back

In terms of categories, Perfumes and Cosmetics are still the number one category for the company year-to-date, with Chanel, Dior and Lancôme as the top three brands. Fashion comes in second—a first for LS tr/Aelia— with top brands Hermès, Longchamp and Hugo Boss. This first-time ranking confirms the company’s European leadership in the Fashion category. “Fashion is expanding dramatically,” says Romet. “‘Premiumization’ is still a global trend in all categories, and gifting is also growing strongly.” Third place is shared by Liquor and Tobacco with Johnnie Walker, Chivas Regal and Hennessy as the top brands for Liquor, and Marlboro, Camel and Philip Morris as the top brands for Tobacco. The top-selling brands for the Confectionery category include Toblerone, Lindt and Nestlé Swiss. As a result of experiencing success with its high-end brands across its categories, LS tr hopes to bring high street standards to the airport on a global scale. In Perfumes and Cosmetics, skincare is growing at a much faster rate than perfumes and makeup. In Fashion, luxury and accessories are increasing the most in the category, while in Liquor

Presently, LS tr is offering a number of promotions. Its “Superdeals” cover all categories and most brands on a rolling basis. LS tr typically offers a 20% discount on a selection of top notch liquor brands including Ricard, Laurent Perrier and Bombay Sapphire. The company also offers a “3 for 2” promotion, especially in the confectionery category, including brands like Toblerone, After Eight and Chupa Chups. Also offered is a 30% discount on selected perfumes and cosmetics. Recent promotions include Magnetism by Escada, Hugo Energise by Hugo Boss and Sunflowers by Elizabeth Arden. “We especially focus on exclusive products and ‘avant premiere’ products to make our customers feel special,” says Romet. “Recent exclusive products have included Mugler Show by Thierry Mugler; Beauty to hand by Clarins; a Biotherm set for men; a Lancôme makeup set; and The Eiffel Tower by Grand-Marnier.” With growth across regions and categories, promotional activities don’t seem to be ending anytime soon. And with ample projects on the go and a new strategy in place, LS tr expects that its sales numbers will c continue to do the talking.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

The new feminine fragrance

Boutiques de Maputo Duty Free

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boutique BY

MELISSA SILVA

Closing in on a profitable year, Boutiques de Maputo Duty Free has its sights set high with plans to increase promotional activities and current offerings or almost 20 years, Boutiques de Maputo maintained a strong presence at the Maputo International Airport in Mozambique before the US$132 million expansion and modernization of the airport began back in 2007. Located in the new international terminal, Boutiques de Maputo operates a duty free shop with an area of 270 square meters in addition to a café and lounge. The lounge was specifically designed for what the company calls Commercially Important Passengers (CIP). According to Chairman Abílio Soeiro, sales at the boutique have been good this year, with Fragrances taking the number one spot in terms of bestselling categories. Tobacco follows closely in second, with Wine & Spirits, Cosmetics, Accessories and Skincare doing well respectively. “Next year we aim to sell more spirits because it currently is not our main product,” Soeiro tells Gulf-Africa Duty Free. “Right now we carry Cognac Camus, Moët & Chandon champagne, some brands of whisky and a selection of Portuguese, Spanish and South African wines. We want to expand and include more brands of whisky and other spirits.” With ample gas resources recently discovered in northern Mozambique, Soeiro predicts visitor numbers will increase, and the airport will see more and more travelers arriving with money to invest. Currently, from a geographic standpoint, the bulk of consumers come from South Africa, and Soeiro believes this is a result of Maputo’s better pricing when compared to the airport stores in South Africa. In addition to South Africans, Soeiro has noticed an increase in Portuguese and Angolan customers, as both nationalities are traveling more frequently to Mozambique.

Boutiques de Maputo duty free shop located in the new international terminal at Maputo International Airport in Mozambique Specifically designed for Commercially Important Passengers (CIP), the lounge features a bar

Purposeful promotion Although sales have been good this year, Soeiro understands the importance of engaging regularly in promotional activities to maintain a top position within the market. In line with this mentality, Boutiques de Maputo recently ran promotional activities with French cosmetic company Black Up Cosmetics at the airport, and Soeiro says the brand is doing very well. Looking ahead, Soeiro has a book project in the works, with the hopes of having it available in his boutique. Set to be translated into six languages, the book is titled Thank you, Madiba, with “Madiba” being a 38

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

nickname for Nelson Mandela, who is one of Soeiro’s close friends. “We want to have promotional activities in the café, specifically a book signing when the book is released,” says Soeiro. The book is Soeiro’s personal journey into discovering his origins and family roots. Featuring numerous photographs, Soeiro plans to have the book published in two formats—a larger hardcover version and smaller paperback, ideal for traveling. With plans to have the book available worldwide by May 2013, Soeiro is currently looking for global distributors in addition to having the book sold at his own shop. Soeiro adds that 50% of the book’s proceeds will be donated to various charitable organizations.

Making it count In November 2010 Maputo International Airport's new international passenger terminal was inaugurated. Its construction cost US$75 million and was funded by Chinese company AFECC. The construction on the new domestic terminal, which commenced in April 2011 and ended this past June, was to help alleviate congestion at the international terminal where both domestic and international flights had been departing from since 2010. Operations at the new terminal began in August of this year and the terminal was inaugurated in October. US$32 million of the US$132 million budget was spent on the domestic terminal. Designed to service two million passengers per year, the new domestic terminal is outfitted with two large halls that have been constructed to accommodate 280 passengers in arrivals and 300 in departures. In addition to the new halls, the new terminal features a commercial area, restaurants, a health clinic, pharmacies, 14 checkc in counters and other amenities.

DUBAI I ABU DHABI I QATAR I BEIRUT I BAHRAIN I EGYPT

NEW YORK PARIS PARIS ARI TOKYO SHANGHAI HONG KONG LONDON DUBAI MILAN l EXPLORE TUMI.COM

Middle East Airlines

Soaring

to the top

With luxury-oriented passengers and a robust inflight duty free offering, Middle East Airlines is poised for increased sales when passenger numbers return to full force BY RYAN WHITE

ulf-Africa Duty Free recently had the opportunity to speak with Mounir Seifeddine, Head of Cabin Purchases at Middle East Airlines (MEA), about recent developments as the carrier heads into the fourth quarter. Given only a marginal upswing in passenger numbers this year, inflight duty free purchases remained essentially flat in July and August. Nonetheless, MEA continues to target its traditionally high-spending passengers with proven bestsellers in addition to partnering with Green Cedars Lebanon to aid reforestation efforts in the country. “Year to date—January to August—passenger traffic is up 7% over the same period last year,” Seifeddine tells us. “We’ve added some seasonal routes, but in terms of permanent routes there haven’t been any new additions lately.” Largely as a result of the single-digit increase in passenger numbers, inflight duty free sales have remained essentially flat so far this year. Nonetheless, MEA is coming off of a successful 2011, where inflight sales increased double digits over 2010. Furthermore, Seifeddine says that passengers are continuing to spend, which is a good indication that if and when traffic does increase into the double digits as sociopolitical tensions ease in the region, duty free sales onboard will benefit as well.

Johnnie Walker Black Label is a strong seller aboard Middle East Airlines

While some bestselling products tend to be mainstays in MEA’s inflight retail magazine, the airline carefully tracks the sales of every brand it offers, making regular changes to the mix as a means of ensuring that passengers will always find something new when they travel. One of the more noteworthy listings of late is a special jewel listed as a result of the carrier’s cooperation with an initiative called Green Cedars Lebanon. Proceeds from the sale of the jewel go toward reforestation efforts in the country. In addition to keeping an eye on things such as carbon emissions, MEA feels that more can be done to help the environment. “Lebanon is famous for its cedar trees and it’s a worthy cause,” Seifeddine explains. On the topic of aircraft orders, MEA currently has ten aircraft on order from Airbus. Indeed, carrier’s entire fleet—made up of A330s, A320s and A321s—has been supplied by Airbus. In fact, in January, MEA took delivery of the 5,000th Airbus A320 produced. The historic moment coincided with the A320’s 25th anniversary. In conclusion, Seifeddine noted that passenger numbers tend to ebb and flow anywhere in world, and the outlook for the MENA region in the mid- to long-term is still generally very good. Indeed, the carrier’s commitment to keeping on top of product trends in duty free—combined with the proven track record its passengers have for spending—provides as good an indication as any that when traffic numbers do find their feet, MEA’s inflight duty c free sales will also soar.

“In terms of spirits, Johnnie Walker Black Label is the most popular with passengers. In tobacco, Marlboro cigarettes are the favorite. In beauty, products from Jimmy Choo and Montblanc are selling well. Finally, we’re still seeing strong sales of Swarovski in accessories.” Mounir Seifeddine, Head of Cabin Purchases, Middle East Airlines

Spend per head in terms of duty free aboard MEA’s flights stands at a respectable US$15, with an increase over the average spend seen particularly on flights to and from Africa and within the Gulf region. “We offer a variety of categories for inflight sale,” Seifeddine says. “In terms of spirits, Johnnie Walker Black Label is the most popular with passengers. In tobacco, Marlboro cigarettes are the favorite. In beauty, products from Jimmy Choo and Montblanc are selling well. Finally, we’re still seeing strong sales of Swarovski in accessories.” 40

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

“Legend” from Montblanc

JMG-Research

A perceived lack of time is a common reason why many travelers don’t enter duty free stores, says JMG-Research

Understanding the traveler

RYAN WHITE

JMG-Research unveiled its annual PAX behavior study at TFWA WE and spoke with Gulf-Africa Duty Free about the results MG-Research recently released its annual PAX behavior study. The aim of the research was to analyze what passengers do and don't do, both at the airport and during the flight. Gulf-Africa Duty Free sat down with Jérôme Goldberg, Managing Director of JMGResearch, to get a sense of the results he shared with attendees at this year’s TFWA WE in Cannes.

factors that drive travelers into shops or conversely keep them away; duty free categories to which travelers are drawn and brands that they often purchase; which travelers plan their purchases and which generally buy on impulse; what travelers purchase and for whom, and conversely why they don’t buy; travelers’ perceptions of travel retail pricing versus high street pricing; affinity toward products/brands; travelers’ attitudes toward sales staff; and the

has fine-tuned its understanding of global travelers, with results that look specifically at the differences between arrivals and departures duty free, key categories and social media. Also of note is the fact that results have been broken down between men and women; frequent flyers and infrequent travelers; business and leisure passengers; and legacy carrier passengers and charter or LCC passengers.

Untapped potential

During the ACI-Europe Airport Trading Conference in April, Goldberg noted that if airport authorities, operators and brands address the major reasons travelers have for not entering duty free shops, there is potential for a whopping US$4.5 billion in additional revenues. Obviously, even if only a portion of those travelers who don’t currently enter duty free stores are targeted by the industry and converted into purchasers, the profit potential is significant to say the least. “In the Beauty category, for example, the potential exists for up to US$8.2 billion in additional revenue, provided the industry can properly engage these ‘empty-handed passengers,’” says Goldberg. JMG-Research’s study has actually resulted in five different reports focusing on different geographical locations: Worldwide; Jérôme Goldberg, Managing Director, JMG-Research Europe (including France, Germany, Italy, the Nordic countries, the UK, Spain, the Nether“These days, with more and more people effects of promotions such as GWPs, limited lands and Russia); Asia Pacific (targeting Japan, China, South Korea, Australia, India traveling abroad all over the world, the travel editions and exclusives. retail industry has to find a proper answer to “We monitored 20 different nationalities and Hong Kong, with the last three countries a kaleidoscope of behavioral patterns,” Gold- in Europe, Asia Pacific and the Americas, being new inclusions this year); the Ameriberg told us. “In some cases, there are very sig- interviewing 5,631 international passengers cas (encompassing the United States, Brazil, nificant variations among nationalities and both on their behaviors at global airports and Argentina and Mexico, with these last two the industry needs to be aware of this. It’s been their behavior during flights. We also specif- being new this year); and the Bric countries. proven time and again that understanding ically asked about their last travel experience,” travelers’ necessities is key to increasing sales.” Goldberg explains. “In total, we got 11,262 Customized service And JMG-Research’s PAX study certainly answers from passengers on both departing “JMG-Research also offers subscribers the goes a long way toward fostering a better and returning flights, and consequently related option to ask for ad-hoc analysis,” explains understanding of traveler/shopper behaviors to both arrivals and departures duty free.” Goldberg. “This effectively allows them to by tackling a robust set of topics that include: As compared to last year, JMG-Research focus on specific criteria from our database,

“Our goal is to help airport authorities, operators and brandowners develop well considered solutions based on careful research.”

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

CASABLANCA

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JMG-Research

from all respondents or a specific group, related to specific categories and subcategories, targeting key airports or centering on the departing or arriving passenger.” In addition to the passenger-specific information already mentioned, JMG-Research’s database of airport intelligence is fairly extensive, comprising information from passengers at some 90 airports across various regions of the world. The benefits for brands, says Goldberg, are numerous, from knowing what passengers expect of a specific product category to best understanding how to create impactful products and target specific groups of travelers. For operators, the reports can help improve footfall and conversion, shed light on new cross-selling opportunities and aid in the improvement of the consumer’s overall shopping experience.

The results are in The big unveil for JMG-Research’s results took place during the week of October 21-26 at TFWA WE in Cannes. Goldberg was kind enough to walk us through what was discovered from this year’s undertaking. Gulf-Africa Duty Free learned that while many of the reasons that travelers decide not to enter duty free shops—from stress to time constraints—are no secret to the industry at large, variances among nationalities will no doubt give operators and brands plenty to think about. For example, targeting the well traveled Russian passenger is a clear priority among operators and suppliers. JMG-Research’s study shows that some 35% of Russian passengers answered that they always enter duty free shops when they travel, with 8% never entering. On the other hand, only 8% of American passengers always enter duty free shops when traveling, with a whopping 20% saying that they never enter. Clearly, the implication is that while storeowners and brands in certain airports should be concentrating on Russians within the shops, not enough is being done to capture Americans as they pass by on the way to their gate. Of course, the above is only one example of the results, but it’s easy to see how the industry can team with JMG-Research to dig much deeper. For example, a supplier may want to know what percentage of Brazilian passengers entered stores on their most recent trip. Are there any airports where this figure was considerably higher? What are the brands and operators doing in these airports to capture these travelers and what did the Brazilians purchase? What didn’t they purchase? What airline did they fly? Are our brands listed inflight on these carriers? 44

JMG-Research’s study also delves into inflight duty free and the differences in purchasing habits of travelers that fly on legacy carriers versus LCCs

Focus on P&C: Why non-buyers don’t purchase (n = 1,544) The prices were not interesting 67% The same products were everywhere 40% I couldn’t find what I was looking for 40% There were no affordable products 35% My flight started boarding 22% I couldn’t find my favorite product 19% I couldn’t find my favorite brand 15% The queue to pay was too long 15% Travel restrictions 15% The products were too bulky 13% There was no information on the price 9% The shops weren’t appealing 9%

Focus on Passenger study: Why non-visitors don’t enter duty free stores (n = 2,663) I was not interested in buying anything 53% I did not want to carry anymore items 40% I had no time before proceeding to my gate 39% I just wanted to stay calm 37% I did not want to miss my flight 35% I knew the prices were not interesting 28% Travel restrictions are too much trouble 20% I don’t usually find products in my price range 11% The shops were too far from my gate 11% I wasn’t allowed to buy duty free 9% I couldn’t find the shops 9% I usually can’t find my favorite brand 8%

Indeed, JMG-Research’s work offers myriad possibilities for the industry to focus very specifically on certain demographics or pan out to get a sense of the larger picture as it relates to a certain nationality, geographical area or category.

Looking ahead In November, JMG-Research will be looking specifically at Chinese passengers as a means of providing the industry with data on this increasingly important group. The qualitative portion of the study will focus on a total of 4,500 Chinese international travelers, with 1,500 from Shanghai; 1,500 from Beijing; and 1,500 from second-tier cities. The company will also conduct face-to-face interviews with travelers from the same locations for the qualitative portion of the study. “As a result of such global work, we will

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

be able to highlight what Chinese travelers from different parts of the country have in common when they travel, and conversely what specificities they exhibit— what they like or don’t like, what they expect from airport and inflight duty free, and so on,” Goldberg tells us. “The key benefit for the industry of course, is a better understanding of how to improve the way it engages with the Chinese, both in China and abroad. “In short, the industry now understands that a ‘one size fits all’ mentality no longer works,” Goldberg explains. “The aim of our research isn’t to prove or disprove this because it’s clearly a fact. Our goal is to help airport authorities, operators and brandowners develop well considered solutions based on careful research and, if need be, offer ad-hoc intelligence that lets them convert travelers c into consumers.”

Aldeasa and World Duty Free together, global strength in depth EUROPE - AMERICAS - ASIA - MIDDLE EAST - AFRICA

World Duty Free Group Jordan

In terms of overall sales, the Spirits category comes in at number four for World Duty Free Group Jordan, making up 10% of total sales

Silver lining

World Duty Free Group continues to see strong performance in Jordan, largely because of the country’s relative stability amidst pockets of regional unrest BY RYAN WHITE orld Duty Free Group operates stores in Jordan’s three main airports, Queen Alia, Amman-Marka and King Hussein. Maher Qassad, General Manager at the Jordan operations, tells Gulf-Africa Duty Free that the top selling categories across its operations are Perfumes & Cosmetics, representing around 35% of total sales; Tobacco, making up 30% of total sales; Food & Confectionery, coming in at around 20%; and Spirits, rounding out the top four at 10% of total sales. A whopping 70% of sales are made to Jordanian travelers, with passengers from Kuwait, Egypt and Palestine making up the other 30%. Given the large proportion of Jordanians purchasing at its stores, World Duty Free Group Jordan makes a point of closely watching purchasing habits to ensure that the mix in its stores adequately represents what this important consumer group is looking to buy when traveling. Furthermore, Qassad tells us that given the drop in tourists due to economic circumstances in Europe and sociopolitical unrest in some parts of the Middle East, keeping a close eye on who is purchasing what has become even more important than it was previously. “As a result of situation in the region we have lost some of the European tourists that we normally see and this has had some impact on categories such as souvenirs, perfumes and food,” Qassad says. “However, we have had an increase in spend with some other nationalities, such as Libyans, who have increased their purchasing by over 65%. Syrians are also purchasing around 80% more than they previously were, and Egyptians are spending about 30% more

than they used to. Indeed, this helped us to recover and compensate. “Using our customer insight data, we are able to focus on what these passenger groups like to buy and tailor our retail offer to maximize the opportunity,” he added.

Money for nothing? Of course, a sure way to pique travelers’ interests is through promotional activity, and World Duty Free Group Jordan has made a point of being particularly active in this regard. In August and September the operator ran a very successful campaign called “Buy, Play and Win.” The campaign lasted for 45 days, and with each purchase of US$85, shoppers had the opportunity to enter a draw to win one of three cash prizes given out at the end of the campaign period. Also on offer were a number of instant win prizes across multiple categories. The grand prize winner took home a respectable US$7,000, while the runner up won US$5,000. The third place prize was US$1,000. “This is just one of the many campaigns carried out by the company,” Qassad says. “Various discounts and gifts are also regularly offered throughout the year. This particular promotion, however, helped us to increase our average ticket, which was one of our main objectives.”

Out with the old… World Duty Free Group Jordan recently opened up a new store in Departures at Queen Alia Airport, giving passengers a chance to purchase any last-minute items that they may have forgotten before they board their flights. Furthermore, the big news out of Jordan is, of course, the new international terminal at

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Food & Confectionery makes up around 20% of World Duty Free Group Jordan’s sales

Queen Alia, scheduled to open in 2013. Qassad notes that World Duty Free Group Jordan is currently working on a plan to ensure that the transition from the old terminal to the new one is as seamless as possible. “The new store will measure 3,300 square meters and we will host an event at the time of the store’s inauguration,” Name explains. We ended the conversation by asking Qassad about his thoughts on the future of aviation and airport retailing in Jordan, particularly given the tensions experienced of late in many pockets of the MENA region. As is often the case in the industry, he explained that difficult situations tend to have their silver linings. “There were moments when our business was affected when some of the countries around Jordan experienced airport closures or delayed flights, but the stability of Jordan meant that the airports here saw an increase in transit passengers, which benefited our business,” he says. “In spite of the current situation we are very optimistic and Jordan is one of the most stable countries in this area.” c

Etihad Airways A Manchester City-branded A330-200 aircraft in Etihad’s signature sky blue color

Full speed ahead

MELISSA SILVA

From impressive inflight sales and a wide variety of duty free product offerings to aircraft and operating system upgrades, Etihad Airways remains unrivaled in the Middle East tihad Airways, the national airline of the United Arab Emirates and the fastest growing commercial airline in the world, has been establishing an enviable track record since its inception in November 2003. Having a combined network of 321 destinations—more than any other Middle East airline—with partners that include airberlin, Air Seychelles, Aer Lingus and Virgin Australia, Etihad is continually increasing its global recognition. Serving 86 destinations in 56 countries, the airline has experienced an impressive increase in passenger numbers this year. Between January and August 2012, the airline served 28% more travelers than it did during the same period last year, bringing numbers up to 6.76 million from 5.28 million. Seat factor also increased +3.2% points to 78.3% seats up from 75.1% in 2011. Good news for the airline’s inflight duty free arm is that an increase in passengers generally brings more opportunity for onboard duty free sales. Etihad’s year-to-date sales increased 46% from last year. “This represents an important ancillary revenue stream,” says Anna Claire Brownell, Inflight Duty Free Manager, Etihad Airways. With more people traveling with Etihad and purchasing onboard, the airline must be doing something right. Offering high-end products is one way the airline is ensuring that its luxury-driven clientele continue to spend.

Opulent offerings Etihad offers a wide selection of inflight duty free, which is operated by the airline itself, from product selection to its shopping guide publication and logistics. The impressive increase in sales this year is a result of a combination of factors: the shift in the look and feel of Eti48

had’s publication; a strong focus on developing an onboard sales culture; and the airline’s quick response time to the change in consumer needs and wants. Brownell feels these factors are integral to Etihad’s success with its inflight sales. With luxury as the ongoing focus, the airline’s current offering includes Kilian, Tom Ford, Designer Shaik, Dior, Givenchy and Roberto Cavalli, all of which are proving to be quite popular with travelers. Other products offered are Etihad’s exclusive Sephora range, as well as Lipsmackers and Buckley jewelry. “Etihad’s aircraft models and ‘Made in UAE’ products, such as Sougha’s cosmetic bags handcrafted by Emirati ladies, are also popular as souvenirs and gifts,” says Brownell.

On heavy rotation Having luxury product offerings is one thing, but even with top-notch brands, routine offerings can become stale and cause passengers to lose interest. As a means of maintaining consumer interest, Etihad continuously refreshes its product mix. “Because our publication is published every four months—the most frequent in the region—our guests have access to the latest products, as hot ticket items will change every time our product listing changes,” says Brownell. And just as Etihad takes care to update its stable of high-end products, the airline’s fleet is also constantly being upgraded. Etihad strives to fly with only the best in show, which is why the airline is always looking at changing up its aircraft offering. Most notable among aircraft arrivals set to be delivered between 2014 and 2020 are 41 Boeing 787s. Equally noteworthy will be the arrival of 10 Airbus A380 aircraft, the largest passenger aircraft in the world.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Back in December 2011, Boeing and Etihad announced an order for 10 Boeing 7879 Dreamliners and two Boeing 777 Freighters. Valued at a combined US$2.8 billion at current list prices, the December order will bring the airline order book for the 787-9 to a total of 41 aircraft, making Etihad the world's largest airline customer of the 787-9. Three 777ER aircraft have been delivered this year. One more will be delivered before end of year, and between 2014 and 2020, Etihad will receive six more 777ERs. The airline also has two freighters on order with an unspecified delivery date. Etihad Airways Chief Executive Officer James Hogan is confident the 787s will have a significant impact on the airline’s operating efficiencies and passenger experience, since both the Boeing 787 Dreamliner and the 777 Freighter offer attractive operating economics.

Route rejuvenation With new aircraft on the way, adding new routes and increasing frequency is the only logical next step. In terms of revenue, top routes for the airline include London, Bangkok, Munich, Paris and Casablanca. In regards to Casablanca, Etihad recently announced its plan to increase the number of daily flights to the Moroccan city beginning March 28, 2013. The airline currently flies five times a week between Abu Dhabi and Casablanca. This past June marked the seventh anniversary of operations to Casablanca. Other frequency increases include daily flights between Brisbane and Abu Dhabi starting from February 1, 2013, and daily flights to Tokyo beginning April 2, 2013. Notably, Etihad was the first Middle Eastern carrier to launch operations to the Japanese capital in March 2010.

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Etihad Airways

Etihad’s Diamond First Class offers passengers high-end spirits such as wine, champagne or premium whisky and rum cocktails

Switching Gears It’s clear that Etihad makes a concerted effort to stay at the forefront in every aspect of its business, and Gulf-Africa Duty Free learned that this passion for excellence has also brought about some significant changes in the airline’s operating system. Etihad started implementing its latest tranche of Sabre software following the billion dollar technology agreement signed by the two companies last year. As part of Etihad Airways’ ongoing drive to create the world’s most efficient airline technology infrastructure, it adopted Sabre’s codeshare, network and fleet management software to enhance planning and scheduling operations. These new capabilities complement the Sabre technology already in use—including passenger reservations software—and allow for the seamless flow of data between the systems. In turn, this will enhance efficiencies in areas such as scheduling, slot planning, route optimization and passenger connectivity. Etihad’s Sabre Revenue Integrity Service has gone live, now operating in near real time, which allows the airline to further improve the screening of bookings and management of cancellations and no shows due to erroneous, duplicate or redundant bookings. “The Big Switch,” as Etihad calls it, will transform all Passenger Services Systems (PSS) by integrating them into one userfriendly platform called SabreSonic, which will support reservations and ticketing, airports, ecommerce and inventory. The system will streamline work processes, enhance the guest experience, provide opportunities for increased revenue and reduce technology costs. Etihad Airways is also Sabre’s launch partner for the network manager software, a program that allows airlines to make intelligent schedule adjustments to improve connectivity through hubs. The fine-tuning of schedules allows the airline to maximize connecting-traffic revenue while delivering the best possible service to passengers. 50

(from left) Etihad Airways’ Michael Venus, Vice President Corporate Affairs, Aubrey Tiedt, Vice President Guest Services; Peter Baumgartner, Chief Commercial Officer; Lee Shave, Vice President Guest Experience; and Hareb Almuhairy, Vice President UAE Sales, accept the World Travel Award for Middle East’s Leading Airline 2012

These recent changes mean Sabre is now Etihad Airways’ sole technology provider for planning and scheduling. Indeed, the airline believes this fact will help it achieve its international network expansion and revenue targets.

Honorable mentions A host of recent awards indicate that in addition to the passengers, the industry at large is paying attention to the hard work Etihad has put into its business. At the 2012 World Travel Awards Middle East, Etihad picked up a total of four awards: Middle East’s Leading Airline, Leading Airline First Class, Leading Airline In-Flight Entertainment and Leading Cabin Staff. At the 2012 Business Traveler Middle East Awards, the airline picked up awards for Airline with the Best Economy Class and Airline with the Best Cabin Crew. And at the 2012 Skytrax World Airline Awards, Etihad took home a total of three awards: Best First Class, Best First Class Seats and Best First Class Catering. Looking forward, Etihad has no plans of slowing down. The airline recently signed a new multimillion dollar agreement to extend

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Anna Claire Brownell, Inflight Duty Free Manager, Etihad Airways

its Melbourne Etihad Stadium sponsorship to 2019. At the end of the contract, Etihad will have celebrated its tenth consecutive year of sponsorship. With this latest development raising the airline’s profile in Australia, combined with its improved operating system and numerous new aircraft on the way, there’s no denying that Etihad is sanguine about prospects for its future as the airline of choice for travelers in the Middle East. c

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Channels Exhibitions

Global goals This year’s Middle East Exclusive exhibition, with the backing of a powerful new partnership, takes square aim at worldwide leadership status BY

HIBAH NOOR

he ninth Middle East Exclusive (MEE) exhibition will be held November 25-27 at the Dubai World Trade Centre, concurrently with this year’s Middle East Duty Free Association (MEDFA) conference, with MEDFA in a close partnership role. Justin Boutros, Managing Director of Channels Exhibitions, which is organizing the event, says that this year’s MEE will be significantly larger than previous iterations, thanks to aggressive growth plans and massive industry support. “We already have 75 exhibitors, including some major brands, and we expect a final total above 100,” Boutros says. “Next year we will see growth accelerate even further as MEE makes the breakthrough from being the most important regional exhibition to establishing itself as a key event on the world stage too.” Those ambitions are helped by the fact that Dubai and the entire Middle East are already global centers of the duty free industry. Boutros also believes that the generally positive economic outlook in the Middle East is another factor, with duty free suppliers in the region enjoying what he describes as exponential growth. Another indication of the MEE exhibition’s growth is that the exhibition space for this year is 20% larger, with companies continuing to request stands quite close to the exhibition date. Boutros expects that MEE will fill a full hall this year for the first time ever, and is already considering options for increased capacity for next year’s event. A complete list of exhibitors along with the categories will be available on the MEE website (www.middleeastexclusive.com). Boutros notes that the tobacco and jewelry categories are especially strong, with companies launching competitive marketing campaigns.

Middle East Exclusive will host its ninth tradeshow in conjunction with the MEDFA conference this year

Another first for this year’s event: the 2012 MEE is being presented as a full partnership between MEDFA and Channels Exhibitions. “This is a really important development, and both MEDFA and Channels are very excited about seeing the show grow significantly,” Boutros says. “In particular, MEDFA, as one of the world’s most prestigious and successful duty free associations, is incredibly supportive.” Boutros says that MEDFA shares the belief that the Middle East, as an established center for the global duty free industry, is the logical place for an exhibition well on its way to achieving worldwide status. “Importantly MEE is now not just for the region, but also for the entire international industry—after all Dubai is well established as the business center and meeting point between east and west. So MEE is ideally placed to host visitors from every region.” The fact that more buyers will be on hand this year reflects not only MEDFA’s support as a full partner, Boutros says, but is also a result of increased awareness and interest in the industry generally. This year MEE includes a VIP program for top buyers and duty free operators, and the show is also being publicized much more widely to an international audience. “Of course we won’t know the final visitor numbers until the final day, but pre-registrations are already well

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

up on what we normally expect so we feel very confident that MEE 2012 will live up to its promise and be our best attended event by quite a big margin,” Boutros says. Boutros believes that one major benefit of running MEE 2012 in tandem with the MEDFA Conference—and with the Dubai Duty Free Golf Tournament, part of Dubai Duty Free week—is that with social events, dinners and evening occasions carefully timed, MEE and MEDFA attendees can attend every event and not have to choose between competing alternatives. “Networking and socializing are such important aspects of both the show and the conference, and this year’s fully co-ordinated program will maximize the opportunities for everyone taking part,” Boutros says. “A very full week of activities has been arranged and we hope it will be very enjoyable and relaxing as well as very profitable for those taking part.” The benefit to exhibitors? “Without question MEE is seen by buyers and duty free operators as one of the most important productsourcing events and an opportunity to connect with all their key suppliers,” Boutros says. “For any company that wants to supply the travel retail sector MEE is the perfect platform. All the industry’s key players are coming together under one roof, so exhibiting and taking part in all the social opporc tunities is a fantastic opportunity.”

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Delhi Duty Free

A growing concern

Delhi Duty Free is keen to tap the strong potential of the perfume and cosmetics category

Delhi Duty Free has gone from strength to strength since it set a new benchmark in Indian travel retail at the capital’s airport. And things can only get better BY P. CONVERY

t may have been a steep learning curve for Delhi Duty Free Services (DDFS) at Indira Gandhi International Airport’s Terminal 3, with logistical issues looming largest among the obstacles to overcome. But the retailer has shown great resilience and a deftness of touch since it opened for business just over two years ago, and is now firmly on a growth path. “Our financial year started in April, and for the past three months our sales are well up on last year – 13% higher than 2011,” says Steve O’Connor, Chief Executive, DDFS. “From January [2011] to January [2012] we’re up 33% on the previous year.” “All the categories are doing well,” he says. “Confectionery has shown the biggest jump as a percentage, but it was pretty low originally. Liquor is a high-value, high-volume business for us, so if we’re growing it at 1% or 5%, it’s the smallest percentage-point growth, but the value is bigger. It’s the biggest part of our business, so even if the growth is a few percent, it’s worth a couple of million dollars. And we’re growing it – particularly in arrivals.” 54

One trend within the liquor category that O’Connor is keen to encourage is greater consumption of white spirits. “There’s quite a lot in our pier outlets now,” he says. “But India’s mainly a brown spirit market because it’s all to do with the Duty Free’s entry into India’s travel-retail market image. So what we’re Delhi has been a game-changer for the Indian industry seeing is people looking for more premium spirits as they look growing wine sales at Delhi. He says the for differentiation from your standard buy- unreliability of domestic suppliers – both in ers, and younger affluent travelers moving terms of quality and authenticity – give DDFS a natural edge over the downtown into vodkas and premium vodkas as well. “Again, it’s a differentiation, but in this competition. “The thing in India is that you don’t case it’s one between old and new. We don’t always want to be drinking what our dads know if wine has been handled correctly. One drank! When you’re in your early 20s, you’re of the benefits of buying it in duty free is that looking to differentiate yourself from the old customers know it’s been handled properly man, so there is a move into liqueurs, and throughout the process in terms of storage and logistics, whereas downtown, people into white spirits particularly.” O’Connor also sees “huge” potential for are reluctant to spend a lot on wine, and a

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

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lot of our customers say to us that they buy their wine in London, Dubai or other places and bring it back. For us, the idea is to capture that market, and to give them variety within the price point that they want. “It’s a cultural thing, and it takes some time to develop the market. We’ve seen it with malt whiskies: if people have the variety, people start collecting and want to try different ones, and it becomes a hobby.” O’Connor says that fielding an adequate range in any category is a vital means of driving sales, and that it’s no different for wine, even if many brands and bottles play a largely supporting role. “We need to have the range there to give people the comfort factor,” he says. “It’s like having a tank of watches – with most brands, two or three of the lines are the ones that are going to sell, but if you fill your tank with those two or three, people will look and say, ‘They’re all the same – there’s no choice’. But

O’Connor says: “We’ve moved away a little bit from brand promotions and gone forward with more generic promotions for all categories. So at the moment we’re giving away a Mini Cooper. You spend US$50 and you get a free raffle ticket for the car. That works across all the brands, so we don’t see a spike in sales of just one particular line or supplier, but growth across all categories.” He also says another key to DDFS’s success has been its staff training, adding that the company’s headcount – currently 550 – will increase to more than 600 by year’s end. “First, we work with the brands themselves,” he explains, “so we have a lot of brand ambassadors and promoters dedicated to specific brands, and we train them and brush them up on the knowledge. “Secondly, we do internal training in selling skills and cross-selling. We also share a lot of information with our staff and we get other promoters to highlight their categories

The retailer is expanding its already spacious operations at Delhi airport, adding new space and staff

if you put in another 60 watches – they might be slow movers – but the consumer feels they’ve had a choice. “Wines in arrivals is the same – you have to give customers the option even if they don’t spend time there browsing [different varietals and vintages], because they’ve just flown in and want to go home.” Presenting the right range is something DDFS is also working on in the tea category, which O’Connor says is a big business with plenty of potential for growth. DDFS is running a number of surveys with different agencies over the next couple of months to make sure it gets its tea proposition right. O’Connor says it’s vital for the retailer to identify its tea customers and be sure that what it does corresponds with what they want. “If it’s not, we can rejig it,” he says. DDFS is keen not only to focus on individual categories, but also on lifting sales across the breadth of its entire offer. 56

to other staff, so somebody on Pernod will be talking to the perfumes and cosmetics promoters, telling them what’s new. That means someone in perfume and cosmetics will be aware of the launch of new products [outside their own category]. We’re always trying to link up and cross-sell internally. “We’re a lot more attentive with staff and staff training,” he says, “especially in arrivals, where we concentrate on speed in moving customers through the process, because they’re tired and just want to get out of the airport. We make sure our staff there is very quick and very attentive, and we’re adding more cash registers in arrivals to support that.” DDFS’s arrivals business accounts for about 60% of its sales, and O’Connor says the retailer is bringing new brands into arrivals that it doesn’t offer in departures. “We’ve got almost 2,000 square meter of space in arrivals, and we’re looking to expand it,” O’Connor says. “We’re talking about this to the airport right now.”

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Perhaps influenced by The Nuance Group (India)’s success with inbound electronics sales, he says DDFS has also submitted a bid to start selling televisions in arrivals. “We’re optimistically waiting to see what happens,” he says. “It’s another string to our bow and could be a valuable add-on for the consumer.” Other plans that DDFS is focusing on in arrivals include a new 50 square meter store and a possible ice-cream concept. “We’re in the process of opening [the 50 square meter store] in September,” O’Connor says. “It’ll have all our main categories and will be fairly generic in fixtures and fit-out, as we’re looking to focus on brands and concepts – perhaps Pernod with a liquor shop, or Diageo with a liquor shop, or maybe a wine cellar. Or maybe with one of the perfume and cosmetics brands doing something unique for women – perhaps a make-up area. We’re trying to come up with something different and iconic.” And DDFS is growing its footprint in departures, too. O’Connor says the company has just opened a 20 square meter cosmetics store dedicated to the MAC brand, and that its next expansion will come in the form of two mobile sales units. “We’re hoping to get them into the piers,” he says, adding that they should be up and running by the end of August. “We’ll have one in each pier and we’ll be able to link them in to the busy gates. And if that’s successful, we’ll look at putting one into arrivals. We can roam around as people are purchasing and maybe get impulse sales as well.” However the global economy affects Indian travel retail (O’Connor points out that even a ratings agency’s recent downgrade of the country’s GDP forecast still saw it growing at 5.5%), DDFS seems assured of a bright future at the capital’s hub airport. “There’s nothing in India that isn’t going to grow,” he says. “It’s just a matter of when and how long you’re willing to wait and go through the process. We [Aer Rianta – O’Connor’s former employer] went into Qatar when they only had three planes. Now look at it. When we went into Dubai, people thought we were mad. But if you put the commitment and the time in, you reap the rewards down the line, because you build up the relationships the confidence and the local knowledge, and it stands you in good stead. There’s no opportunity that’s too small in India.” And at Delhi’s T3, it seems, there’s no c opportunity that’s too big.

TFWA WE Review

Breaking records

TFWA WE 2012 was a huge success, effectively proving the resilience of the industry at a time when the economic situation in Europe is anything but ideal BY RYAN WHITE

FWA World Exhibition, which closed on Friday, October 26, 2012 in the Palais des Festivals in Cannes, exceeded expectations across the board, reports the organization. A record 462 exhibiting companies, of which 39 were new to the show or returning after an absence, displayed thousands of products at this the 28th show, compared with 457 companies last year. For the first time, the number of trade visitors to the exhibition and conference event exceeded 6,000. A total of 6,074 people—up 4% from last year—from 2,877 companies (+5%) visited the exhibition during the week. This compares with a final figure of 5,868 people from 2,737 companies last year. Of the above total, 4,260 (70%) were key duty free and travel retail operators, landlords and agents from 1,726 companies. The top ten originating countries of the visitors were France, UK, Germany, UAE, USA, Korea, Russia, Netherlands, Spain and Italy. The Conference on Monday, October 22, entitled “A Brand New Dimension,” was attended by a record 894 people who crowded into the auditorium to hear fascinating presentations by Dr. Madeleine Albright, former U.S. Secretary of State and Chair of the Albright

The Conference on Monday, October 22, entitled “A Brand New Dimension,” was attended by a record 894 people

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

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TFWA WE Review

From supplier events to TFWA-organized evenings, the 2012 Cannes show provided plenty of opportunities for networking

Stonebridge Group; Jean-Charles Decaux, CEO of JCDecaux; Kjell A. Nordstrom, economist and author; and Erik Juul-Mortensen, TFWA President. The two focus workshops organized by TFWA were fully booked, with the Airline and Retailer Workshop entitled “Touchpoints: communicating with customers in travel retail” attracting 149 people and the “China, Russia and Brazil Market Watch” drawing in 167 delegates. The week started with a range of pleasant leisure activities on Sunday, October 21, which were designed to get delegates re-acquainted with business colleagues. Golf, jogging, hiking, pétanque, a perfume workshop, a wine tasting and soccer gave over 280 delegates the chance to network. The elegant Opening Cocktail at the Palm Beach, attended by 1,406 people (more than last year), was lit by a fireworks display courtesy of the City of Cannes. The Scene private after-hours venue was moved to a smart new location at La Gare Maritime. On Thursday evening the White Cats performed live before a packed audience of show delegates. The most glamorous event organized by TFWA during the week for about 800 guests was Le Premium Evening on Thursday, October 25 at the Palm Beach. The theme of the event was “Viva la Vida” and an energetic display of Hispanic music and dancing by Manolo and the Gypsy Guitars was enjoyed by all. A number of popular technological aids were installed this year for the benefit of all delegates, including navigation touchscreens in the exhibition villages, Apps for Blackberrys and iPhones, an online TFWA Product Showcase and an online TFWA Press Photo Service. Next year TFWA World Exhibition will take place from October 20 to 25 in Cannes. Before then members of the duty free and travel retail community will assemble at the MEDFA Conference on November 26 and 27 in Dubai; at the inaugural Industry Conference on China in Beijing from March 5 to 7, organized by TFWA and APTRA; and at the TFWA Asia Pacific Conference & Exhibition from c May 12 to 16 in Singapore. 60

Given the sheer number of exhibitors at the show, attendees walking the floor saw no shortage of new and innovative products

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Airlines and Airports

Ahead of the slump

Passenger traffic continues to grow worldwide, but some regions are doing better than others BY ANDREW BROOKS t the end of September, the International Air Transport Association (IATA) turned in its global traffic figures for the month of August, which showed a continuing decline in demand for air transport, although with “significant regional variations.” As with the July figures, Ramadan exerted an influence on the traffic numbers, helping to drive a “positive distortion” that saw overall figures rise by

region for August as demand rose 7.3% compared with August 2011. Europe also recorded strong growth in demand at 5.6%, a slight rise over July’s 4.7%. European carriers have continued to increase capacity on international flights despite recessionary conditions in Europe. Demand in Africa rose 3.2%, the Asia-Pacific rate was 2.9% and North American carriers experienced a rise in demand of 0.5% over August 2011 (and over July of this year).

“The world’s airports served more than 5.4 billion passengers in 2011, growing by 5.3% from 2010. This is ongoing evidence of the sheer size of the global aviation market as well as the perseverance of the industry as a whole.” Angela Gittens, Director General, ACI World 5.1%. When Ramadan is adjusted for, IATA says that the underlying numbers remain flat, and that since January the net expansion has only been 1.2%. Carriers were in a cautious mood, limiting capacity growth to 4.1%, which helped to drive load factors to 82.1%. “Passenger markets have not grown since June and global air freight volumes are below previous year levels,” said IATA’s Director General and CEO Tony Tyler. “In the face of these adverse conditions, disciplined capacity management has kept load factors high. There are always opportunities and some parts of the world are growing. But, overall, trading conditions are tough.” In terms of international passenger traffic, Middle Eastern carriers were the strongest performers globally. IATA says that they are continuing to expand rapidly, especially on long-haul segments. The August growth rate was 16.7% compared with the same month last year, although IATA notes that the figure for August 2011 could have been artificially low as Ramadan covered the whole of that month. Capacity increases for August ran at 13.3%. Latin America was the second strongest 62

IATA notes that airline industry fortunes tend to reflect the state of the global economy. “Sluggish growth in the US, the continuing sovereign debt crisis in Europe and concerns over the slowdown in the Chinese economy are taking their toll on both business and consumer confidence,” said Tyler.“Airlines have responded with, among other things, careful capacity management. While global passenger traffic was

traffic, and also unsurprisingly found an overall upward trend of 5%. ACI’s more optimistic gloss on the numbers does point out that the bulk of the worldwide increase comes from the emerging markets. ACI’s focus is on airports, so its analysis gives a more specific idea of where growth is occurring, and where demand is falling behind. The major airports in Asia seem to have been the star performers in ACI’s analysis. Jakarta, Bangkok and Singapore led the way, with double digit gains of 25.7%, 11.4% and 10.9% respectively. Dubai and Istanbul also turned in outstanding growth figures, both registering over 20% for August. “On the whole, growth in passenger traffic has remained relatively consistent from month to month with overall growth rates in the realm of 4% over the last twelve months,” said ACI Economics Director Rafael Echevarne. “Thus, air transport has been immune to the downside risks that have persisted in the global economy throughout 2011 and 2012. However, even with strong demand in emerging markets fuelling this growth, this phenomenon is not indefinite.” Stepping back for a year-over-year view, ACI published its 2011 World Annual Traffic Report in October. The annual survey reinforces a certain degree of optimism, finding that the upward momentum that re-established itself following the 2008-2009 recession continued through 2011, a year it describes as “plagued with economic uncertainty, natural disasters and sociopolitical upheaval.” Latin American airports led the way with 8.5% growth in traffic, and the Middle East came close behind at 7.7%.

“There are always opportunities and some parts of the world are growing. But, overall, trading conditions are tough.” Tony Tyler, Director General and CEO, IATA up 5.1% on the previous August, capacity increases trailed with a 4.1% expansion. Along with this, conserving cash and controlling costs are the focus of most airlines as they await more favorable economic conditions.” Airports Council International (ACI) also released its August figures for passenger

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

“The world’s airports served more than 5.4 billion passengers in 2011, growing by 5.3% from 2010,” said ACI World’s Director General, Angela Gittens. “This is ongoing evidence of the sheer size of the global aviation market as well as the perseverance c of the industry as a whole.”

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Amouage

New horizons For successful luxury perfumer Amouage, there couldn’t be a better time to make the big push into duty free

his is a very exciting time for Amouage,” says David Crickmore, CEO of the renowned luxury perfumer. “We recently opened our first mono-brand shop in Southeast Asia in Kuala Lumpur, Malaysia, along with another new shop in Dubai’s Festival City, our fourth in the UAE. The Middle East launch of our new mainline fragrance ‘Interlude’ for men and women in July has also proved to be another incredible success.” The near future promises to add to Crickmore’s list. In December, Amouage will officially inaugurate its new factory and visitors’ centre in Oman, which Crickmore says is intended to become a staple tourist destination. The two-storey perfumery will also house the brand’s corporate offices and feature a retail shop where tourists can immerse themselves in the Amouage brand and the process by which the fragrances are created.

“

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

HIBAH NOOR

Currently, Crickmore says, Amouage is running at a total capacity of 6,500 bottles per week, but this is already lagging behind market demand and predicted sales targets. The new factory will give the company a capacity of 20,000 bottles per week, which should provide a good degree of futureproofing. Another new development in the offing is the launch around year’s end of limited edition bottles of the Amouage cult fragrances “Lyric” and “Jubilation,” complete with flacons bedecked with Swarovski crystals. Amouage also plans a further expansion of its leather goods collection, Crickmore says, introducing new leather qualities including exotics such as python in dynamic color ways, and other new exclusive prints and colors in the basic nappa and calf ranges. “Next year,” Crickmore says, “we’ll introduce one of our best-selling fragrances, ‘Honour,’ as a bath and body collection to include

Amouage

complementary body creams, shower gels and soaps. This is another way for our customers to enjoy this beautiful white floral fragrance while layering the skin with nourishing ingredients to keep it soft and supple.” “Interlude,” the brand’s new mainline fragrance, has been well received, Crickmore says, and sales are continuing to build. Amouage’s offerings have always tended to do very well in travel retail and duty free, he says, which isn’t a surprise given the luxury positioning, plus the company’s focus on creating international fragrances that will have market appeal across multiple regions. “All our other fragrances have enjoyed strong performance in duty free and travel retail, and we’re confident that Interlude will not disappoint, since early results are very encouraging,” Crickmore says, pointing out that the company’s total duty free business is growing at 41% year-on-year. The new dedicated space in Dubai Duty Free is bringing “huge increases,” he adds.

Old meets new Crickmore believes that Amouage has established a solid reputation for reinventing familiar scents. In Interlude, he says, the classic frankincense and myrrh, with their spiritual/religious overtones, have been given a contemporary reinterpretation with the fragrance house’s characteristic streak of sophistication. Interlude Woman is described as a floral chypre, and Interlude Man as a spicy, woody fragrance. “The introspective creations evoke an air of disorder while composing a sense of balance and tranquility,” is the Amouage description— “peace when all around is chaos, as we find in our world at this moment.” Christopher Chong, Amouage’s Creative Director, describes Interlude as evoking an air of disorder while maintaining a sense of balance and tranquility through the inventive use of frankincense and myrrh. “I interpret what I see and feel into scents,” he says. “All the social and natural chaos and disorder surrounding us today can be translated to a much more intimate level. The interlude moment is a reflection of all the trials and tribulations one overcomes to attain personal satisfaction and achievement.” Interlude is positioned as “an orchestrated blend of technical skill and creative integrity.” The Interlude Woman floral chypre is accented to portray an interlude moment of unity and serenity. The top notes combine the sweetness of bergamot and bitter tones of grapefruit to create a mood of tension, which the heart masks strands of rose, frankincense and sandalwood with an unconventional mix of nut, coffee, kiwi, honey and agarwood. Rounding out the foundation is a rich mélange of amber and vanilla which add warmth to the fragrance’s various contradicting accords. In Interlude Man, bergamot, oregano and pimento berry oil are countpoised by aromatic notes of amber, frankincense, cistus and myrrh. In the base, foundational notes of leather, agarwood smoke, patchouli and sandalwood add texture and additional strokes of depth. With Interlude, Amouage’s signature glass crystal bottles are rendered in a deep midnight blue hue with gold-plated detailing, accented with a sapphire blue Swarovski crystal. A color-intensive

design on the packaging carries an abstract and conceptual representation of “orderly chaos.” The fragrance is available in 50ml and 100ml eau de parfum.

Cracking Cannes The time was right for Amouage to exhibit at TFWA WE in Cannes, Crickmore says. “Both the brand and the business have grown significantly over the last five years, and we feel we’re now at the point where this exhibition will be beneficial to us, as there are many buyers who are still unaware of our global presence and success.” Amouage has reached the point where it has developed and consolidated its global footprint, building its expansion strategy with the opening of standalone shops in key opinion-forming cities around the world, Crickmore says. “We believe that this is the right time for the brand to explore new pastures in travel retail and duty free.” He and his team had a full agenda of meetings planned with potential new buyers in Cannes, with particular attention on duty free. Given its premium positioning, Amouage doesn’t do a lot of promotional work such as incentives or giveaways. That said, the brand is very serious about marketing and invests heavily in strategically placed PR and advertising campaigns. At the moment, of course, most of this is going to build Interlude. Crickmore says the Interlude POS reflects “the fragrance’s inspiration of taking one moment

“We believe that this is the right time for the brand to explore new pastures in travel retail and duty free.”

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

David Crickmore, CEO, Amouage in time to compose internal harmony from external chaos.” The Gulf duty free markets are Amouage’s strongest performing at present. Muscat Duty Free and Dubai Duty Free are the biggest performers but Crickmore says that Abu Dhabi and other regional centers are also on the rise. Duty free in Singapore is also performing especially well. Amouage is widely available in duty free throughout the Gulf both on the ground and in the air, and through Singapore, Malaysia and Indonesia. “Our travel retail base is constantly growing and developing and we intend further rollouts,” Crickmore says. “We’re continually assessing new markets for duty free and we intend to grow this aspect of our business into locations where the brand will be given the space and presence we require.” Asia is growing in importance for Amouage, which is now actively seeking a broader reach across the region. “We perform extremely well in Singapore and Malaysia and we hope to capitalize on those successes by extending our reach into some of the downtown Gallerias in markets like Taiwan, Guam, Saipan, etc. These are all active targets for the coming year as well as other Far Eastern locations.” Amouage has been sold in duty free—in a small way—from its inception, Crickmore says. “But in recent years, we’ve addressed the markets in travel retail more seriously and we feel ready now to face c the world.”

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Traveller Limited

Strategic sense

ANDREW BROOKS

Traveller continues to articulate its portfolio with a carefully thought out market strategy

he maturing of Traveller’s inflight services portfolio has been the product of years of development and expansion, says General Manager Rami Madi. At this point the market offering is diverse and extensive, but Madi hastens to add that the company is always open to new possibilities. “[We] keep an eye on the latest developments, brand launches and performance metrics to gauge whether the addition of one or more brands to our portfolio would add value to our clients—whilst of course enhancing our bottom-line profitability.” Traveller is currently in talks with some novelty brands, and Madi promises that the industry will be updated when the company decides that the time is right. “We always strive to present to our clients a stand-out product offering that matches their passenger profile and adds value to their overall inflight retail experience,” Madi says. This year, Traveller worked with one of its main suppliers to introduce Tom Ford’s “Neroli Portofino” exclusively aboard the Saudi Arabian Airlines global network through the March-June period. Madi says that sales results were outstanding, and demonstrated that the key to inflight sales success is offering the right product to the right passenger. Another major introduction took place in July with the listing of four “Jo Malone” references aboard Etihad Airways, a regional exclusive. “We were very lucky in terms of the launch timing as it was right around the London Olympics, and this allowed us to make the most of the summer two-way traffic flow,” Madi says. During the same period, Traveller collaborated with Saudi Arabian Airlines to offer travelers three select fragrances that had not been launched anywhere in the Middle East at the time of listing, and that up to that point were available only to a few very selective points of sale in Europe. The fragrances were Velvet Love, Velvet Patchouli and Velvet Wood from the Dolce & Gabbana Velvet Collection, and Madi says the trio turned in excellent sales results. When asked about bestseller brands, Madi replies that Traveller regards all of its brands as bestsellers, and that the performance of each brand onboard an airline is closely linked to its success at the local market level, be it within the region or globally. Despite the boost such success provides, Traveller still regards advertising as pivotal to its business, Madi adds. “Because we supply many of the perfumes Four Jo Malone references were introduced on Etihad Airways as a regional exclusive in July

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Traveller collaborated with Saudi Arabian Airlines to offer travelers three select fragrances that had not been launched anywhere in the Middle East including Velvet Love, Velvet Patchouli and Velvet Wood from the Dolce & Gabbana Velvet Collection

and cosmetics references to our clients, we always make sure that we have a certain number of pages allocated to us so we can feature the various products and brands in the airline’s inflight brochure. We also try to run different passenger promotions in line with our clients’ preferences.” Madi prefers not to identify the company’s top-performing airlines or routes. “All the airlines we work with are very important to us as they represent the core of Traveller’s business model,” he says. “Quite frankly, we don’t measure an airline’s individual success in terms of how high its sales are compared to other airlines, since the fleet and passenger numbers per airline vary widely and are the main factor that helps determine what the sales might be like.” Each airline has a unique passenger profile, and with Traveller playing the role of distributor to the airlines, it tries to customize its offer to fit each airline’s demographics to maximize onboard sales.

Local know-how Madi says that Traveller’s deep knowledge of the luxury market, combined with a fine-tuned feel for local customs and traditions, helped to ensure the successful launch of the brand’s Voile Noir and Voile Blanc fragrances, which are aimed specifically at the Arab consumer. Both references are exclusive to airlines, which means passengers traveling on the airlines where they’re listed have a chance to purchase a new and different product that can’t be found elsewhere in the duty free channel or through domestic outlets. The Voile Noir women’s product and Voile Blanc for men were developed according to a detailed advance plan to create a fragrance based on traditional Arab oils that also featured an Oriental flavoring. The initial steps of the process involved a lot of sampling of different scents, and the eventual selection of the final two from among a long list of contenders. The names were determined up front, and the design of the

“We always strive to present to our clients a stand-out product offering that matches their passenger profile and adds value to their overall inflight retail experience.” Rami Madi, General Manager, Traveller Traveller worked with Estée Lauder to introduce Tom Ford’s Neroli Portofino exclusively aboard the Saudi Arabian Airlines global network through the March-June period

flacons was similarly rigorous. “Basically we wanted to present to the consumer a luxury brand, a luxury product,” Madi says. “So it was very important for us to come up with a bottle that was very modern, very novel, something contemporary at the same time and something that fits onboard.” The Oriental accent was an important element in the selection of the “Voile” branding. “We had to cross ideas—East meets West,” Madi says. “The name is Western. It’s a French name that puts the Western signature on the product, but the connotation is very much Oriental. So that way it links to the region.” “Voile” means “veil,” a traditional garment, usually black, worn by women in the Gulf countries to cover the hair, reflecting modesty, yet at the same time conjuring an image of mystery and allure. Voile Noir and Voile Blanc were launched in March and are sold in the 100ml size at a retail price of US$85. After the Saudi Arabian Airlines launch, they were progressively introduced on other airlines in the region, including Qatar Airways, Oman Air and Kuwait Airways. Voile Blanc is also slated to launch with Etihad in November. Since these were both completely new offerings that were unavailable through the domestic channel and thus without the added exposure fragrances usually benefit from, Traveller chose a campaign based on advertising visuals in the airlines’ inflight magazines. “We launched rather provocative advertising visuals onboard the airlines,” is how Madi puts it. The visuals feature a female dressed in black, whose face is partially covered with a square, gold-colored veil-like mask with metallic ornamentation, while the male face sports traditional Arabic dress, all in white.

The company has already started work on an extension to the Voile project, and Madi says details will be shared with travel retail colleagues shortly. Traveller continues to work with its suppliers to offer exclusive product references to the airlines it works with, Madi says. Exclusivity can mean availability in travel retail only, availability onboard a single airline on a regional and/or global basis, or an early launch prior to other airlines or markets. Crew incentives are obviously one key element in Traveller’s success in the inflight niche. “We try to work as closely as possible with our partners on keeping the crew incentivized through various means,” Madi says. “This year, for instance, we ran two initiatives—one with Etihad Airways and the other with Saudi Arabian Airlines—that stood out and were very much appreciated by the crew.” On Etihad, Traveller awarded 31 iPads through the month of May, with an award every day to the crew member with the highest sales that day. On Saudi Arabian Airlines, Traveller worked with Faces, one of the largest beauty retailers in the Middle East, to present 100 vouchers worth SR500 (US$133.19) each to individual crew members who achieved the best sales results. Traveller conducts several crew training sessions every year, covering product knowledge and sales techniques, among other topics. “Since onboard sales aren’t a main responsibility for the cabin crew, it’s very important to keep them engaged and updated on the latest product details and selling tips,” Madi says. Traveller has worked intensively with Etihad Airways this year to train some 700 crew members so far on various perfumes and cosmetics references. The brand has also run a training session for Qatar Airways crew, and plans to work with the airline again in December for a “more intensive and tailor-made” crew training week. On the business side, this year Traveller boosted its commercial task force with the appointment of Maysan El Hajeb as Head of the Commercial Department. In addition to her background in the luxury and beauty market, El Hajeb brings to the job the added value c of her experience in travel retail. Traveller’s unique Voile Noir and Voile Blanc fragrances are available to its clientele in the Middle East

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In the last couple of years, Kipling has enjoyed huge success in travel retail

Mäurer and Wirtz

Strong scented

Featuring a highly sought-after ingredient, the latest fragrance from Mäurer and Wirtz is positioned to perform well in the Middle East MELISSA SILVA BY

A visual from the Secret Mission advertising campaign, featuring Charles Schumann

enowned house of perfumes Mäurer and Wirtz recently launched its latest fragrance “Secret Mission” in its luxury men’s line “Baldessarini.” Said to “separate the men from the boys,” the composition was created in cooperation with the prominent fragrance house International Flavors and Fragrances (IFF). “The idea behind the new fragrance is that every man has a secret mission,” says Martin Schlösser, Area Manager for the Middle East, Asia Pacific and Mäurer and Wirtz. Working closely with Mr. Baldessarini, the new fragrance was created with the distinct and signature Baldessarini scent in mind. Schlösser feels the fragrance will meet the requirements of the target consumer—a mature, cosmopolitan and sophisticated man— and is also confident that existing fans will respond well. “For our customers it is important the new fragrance of Secret Mission has the distinctive signature of Baldessarini—masculinity, authenticity, serenity,” Schlösser tells Gulf-Africa Duty Free. “With

As for promotional activities, Mäurer and Wirtz is focusing on below-the-line marketing, concentrating heavily on in-store activities, which Schlösser feels will attract a lot of consumer attention and international interest. “We attach great importance to trade promotion,” Schlösser says. “We are planning on incorporating a lot of decorative elements into our promotion podiums as well as fragrance advisors at point of sale in order to more effectively engage our customers.” In terms of media, Mäurer and Wirtz is running different communication campaigns in various countries to better promote the fragrance. “In order to reach the highest amount of consumer contacts with our communication strategy, we’ve become focused on public relations, online marketing, print and event marketing as well as out-ofhome campaigns,” says Schlösser. “The biggest amount of our media activities involves magazine advertising for the relevant target group.” Certainly not hindering the fragrance’s success is Charles Schumann, the distinctive face of Baldessarini fragrance, who helps provide the campaign with a masculine aura. Additionally, Mäurer and Wirtz have launched two gift sets with an exclusive offer—the Secret Mission bodycare range, which includes a shower gel, deodorant, aftershave and eau de toilettes. Gift with purchase offers will also be presented, which feature caps and t-shirts, both of which have been fashioned to reflect and complement the essence of Secret Mission.

“For our customers it is important the new fragrance of Secret Mission has the distinctive signature of Baldessarini—masculinity, authenticity, serenity.” Martin Schlösser, Area Manager Middle East and Asia Pacific, Mäurer and Wirtz Secret Mission, we present our customers with a familiar, yet new and unique fragrance.” The fragrance opens with a blend of bergamot and basil, combined with fresh cypress, and builds to a heart of cardamom, geranium leaves and lavender. The base completes the masculine composition with patchouli, warm musk and Oriental oud wood. The bottle resembles metal, featuring blue, metalized and translucent glass, and was created by the studio of renowned artist Peter Schmidt. 70

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

“Secret Mission,” the latest fragrance from Baldessarini

The fragrance is performing very well in the Middle East thanks to its ingredients, specifically oud—an element that Schlösser says is quite popular in the region. “The Middle East in general is a novelty-driven market,” Schlösser says. “When it comes to preferences for male fragrances, strong and c long-lasting perfumes are at the top of the list.”

Supplier News

Heartstrings necklace made with silver and rose gold

Golden touch Welsh jewelry company Clogau has been creating jewelry featuring a touch of rare, Welsh gold for over 20 years. In travel retail, the brand has been making a place for itself thanks to its unique offerings. In the Middle East market, Clogau has developed a strong presence as a result of its airline listing with Qatar Airways; the brand’s first airline listing in the region. “We are very excited about promoting our brand on a bigger scale,” says David Butler, Head of International Sales, Clogau. “Our first airport listing in Cyprus has been very successful, especially our range of 18 carat gold items, and we hope that this strategy can be duplicated in the large Middle East airports.” Net sales in travel retail are up 15% over last year, and the brand’s airline listings have sold particularly well due to the Queen’s Diamond Jubilee year. Butler says the support from the industry—specifically airlines and publications—has been “excellent.” With no changes currently implemented into the brand’s business model for the travel retail market, Butler says Clogau is working on developing innovative ways to “tell the Clogau story in airports and other land-based businesses.” With a new airport-ready showcase with a built-in iPad, featuring an app that provides interactive information to the customer, the brand seems to be well on its way to being innovative. “It will play promotional videos by default

Kensington locket made with yellow and rose gold

David Butler, Head of International Sales for Clogau

and then offer the user brand presentations and detailed information on the jewelry in the showcase,” Butler says. “It’s designed to be very easy to use and to give the brand story in short, interesting video clips that will hopefully inspire the user to buy.” In addition, Butler has recently developed the app further by making it available in different languages. “For an airport like Dubai, the information can be changed from English to Arabic depending on the consumer’s preference.” With no changes in buying trends over the last few years to report, Clogau plans to continue implementing its overall strategy in terms of design and price point. Butler does note that he has witnessed

the higher-priced items performing quite well, such as the brand’s 18-carat gold range. Sales of the range are doing well at Cyprus Airport, according to Butler. Speaking of the items themselves, the brand has recently launched its new Heartstrings Collection, which is based on the harp, the national instrument of Wales. The brand ambassador for this range is Claire Jones, the former official Royal harpist for His Royal Highness the Prince of Wales, Prince Charles. Jones wore an exclusive piece from the Royal Roses range when she performed at the wedding of their Royal Highnesses The Duke and Duchess of Cambridge. “The story is a perfect fit for us as Claire is Welsh, she has Royal connections and she plays a beautiful gold plated Salvi harp,” says Butler. “Many of our pieces have lovely stories attached to them and I think that this is part of the success of the brand.”

On the go The MD Graphic bag is lightweight and features elaborate graphics

Italian leather goods and travel items brand Mandarina Duck has a lot to offer with its new Spring/Summer 2013 Collection, which is said to feature comfortable, hard-wearing, soft-touch materials and uniquely designed spaces for storing laptops, tablets and Smartphones. The Nomad backpack is made of soft, ecoleather and includes an extractable helmet carrier net for bikers. The backpack features a sheared and shaped aluminum buckle. From the Town range, the business shoulder

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

bag is made of eco- The Nomad backpack leather and nylon and features soft, features accessory eco-leather and extractable helmet holders and new carrier net for bikers metal hardware. Wallets from the Furrow range are made with a combination of fabrics and innovative printed textures said to be as unique and distinctive as fingerprints. The wallets also feature patchwork landscapes. The MD Graphic is designed for use at home or while on holiday, thanks to its lightweight construction. The bag features Wallets from the special graphics, a Furrow range feature designs and new MD logo and unique a combination transparent material. of fabrics

Heritage inspired Cerruti 1881 produces ready-to-wear lines for men and women as well as fragances, leather goods, watches, jewelry, eyewear (sunglasses and corrective eyewear), ties, shoes, leg The Cubo pen wear and writing instruments, as well as a casual is the flagship pen of the 2012 wear range and jeans for men and women. Cerruti writing Known for its textile innovation, avant-garde, yet collection timeless style, the fashion house’s upcoming season features a wide range of tie models, colors and patterns, from the classic club to the silk-knitted tie. Made in France, each tie endures 28 manufacturing steps before it is available for sale. New from the tie range is the Paisley Collection, featuring a variety of models printed with large and small patterns. The collection is inspired by 1950’s style elements. From its leather goods collection are two new models—Sophie and Boston. Sophie is a jacquard/patent bag for women, ideal for both everyday use and for traveling and is available in beige, blue and black. Regarded as the “business icon bag,” Boston features printed calf leather, front and back pockets, as well as inner laptop organizers. Boston is available in black and taupe. Cerruti’s writing instrument collection is composed of a wide range of products, namely its Cubo and Heritage pens. Nominated for a design award, Cubo is the flagship pen of the 2012 Cerruti writing collection. Characterized by black-lacquered cubes, Cubo is connected by a chrome-colored barrel and is availHeritage features able as a fountain pen and rollerball pen a simple, yet modern design with a matching key ring. and offers a Heritage features a simple, yet modcomfortable grip ern design and offers a comfortable grip. It is available in three color combinations: silver/black, black/gold and gun/silver. Depending on the chosen color, Heritage is available as a ballpoint pen or fountain pen.

The Sophie bag is a jacquard/patent bag for women, ideal for both everyday use and for traveling

Cerruti’s Boston, the “business icon bag,” features printed calf leather, front and back pockets, as well as inner laptop organizers

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

Tumi

The Alpha Bravo Knox Backpack in navy, iron and café

Great expectations With its focus on quality and design, Tumi continues to build its travel retail presence

remium lifestyle, accessories and travel brand Tumi has been making strides to strengthen its presence in the travel retail sector, a sector that the company feels is integral to achieving strong growth. With retailers becoming more conscious of industry-wide trends—specifically pieces that are lightweight, and feature four wheels and hard cases—it’s up to the brand to consciously increase its appeal. Other current trends include business cases that can be adapted to different uses and accommodate tablet computing. As a means of meeting these trends and addressing the demand for lightweight, highquality goods, Tumi turned to innovation and created Tegra-Lite. The line features pieces made from advanced material with a unique structure that offers form control, flexibility, and increased tensile strength. “Tumi has developed lighter luggage pieces that can withstand the rigors of temperature, pressure and shock,” says a Tumi spokesperson. Released earlier this year, Tegra-Lite is made from Tegris, which features a polypropylene thermoplastic composite material created by Milliken for use in lifesaving armor, NASCAR race cars and protective gear for NFL players. Tegris is an extruded filament that can be woven into fabric and then pressed into hard sheets. The Tumi/Milliken partnership with Tegris has been in development for several years. The product is exclusive to Tumi for travel and accessory products around the world. Tegris provides up to 15x the impact resistance of typical thermoplastic composites and maintains this level of performance at low temperatures (-40°C). Because it is 100% polypropylene, Tegris offers significant

MELISSA SILVA

weight reduction compared to other higher density, glass-filled composites. The Tegra-Lite collection includes twoand four-wheeled carry-ons and several four-wheeled packing cases. Each piece is fully lined and features Tumi’s proprietary and award-winning design components. This lightweight, hardside case is designed for longer trips and the large interior includes a removable garment sleeve. One technological and functional advancement of Tegra-Lite is the patented X-Brace 45 handle system that adds structural rigidity to the case and prevents damage to the handle. The cases are lined and feature interior accessory pockets and tie-down straps, TSA integrated locks and exterior bumpers for added protection.

The backpack features Tumi’s robust ballistic nylon FXT material, two zipped side pockets, three zipped front pockets and a top zip for access to the large interior space. It has a top carrying handle, identification tag and padded shoulder straps for added comfort. The special navy, iron and café palette of colors for the Alpha Bravo Knox Backpack is available exclusively in travel retail outlets in Asia Pacific the Americas, Europe, the Middle East and Africa. To help promote its products further, Tumi feels the most “brand-enhancing media” is the construction and execution of a “beautiful Tumi point of sale” and the caliber and quality of the product itself. “This physical embodiment reassures the customer that wherever they find Tumi goods, whether they are in Milan, Johannesburg, Taipei or anywhere else, they are holding quality and excellence in their hands,” c says the spokesperson.

Tapping the trends To ensure it stays on-trend, Tumi engages in ongoing discussions with its customers. “They tell us via social media, traditional mail, in-store feedback and our formal customer panels how their needs are evolving and what they expect in Tumi products,” the spokesperson tells Gulf-Africa Duty Free. In the Middle East, all of the brand’s categories are performing well, including travel, day bags, mobile accessories and small leather goods. In addition, trends in the region seem to mirror what is trending globally. “There’s strong demand for our core collections and great appreciation for our premium category,” says the spokesperson. Speaking of its core collections, the Alpha Bravo Knox Backpack saw the inclusion of a new color palette this fall, featuring navy, iron and café. These special edition colors, which are exclusive to travel retail, add a modern aesthetic to the design. The organizational compartments enable the pieces to support work, leisure and weekend getaways.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

A medium Trip Packing Case in Graphite from Tumi’s innovative Tegra-Lite collection

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brilliance

Business is Brilliant with Maui Jim® How can it be otherwise? Maui Jim offers the utmost in protection from glare as well as extraordinary clarity and color enhancement, all courtesty of our patented PolarizedPlus2® lens technology. And now they are available in more must-have styles than ever! Add Maui Jim to your Duty Free shop and see just how brilliant business can be. For more information, please contact Giles Marks, Director of Duty Free Sales, at gmarks@mauijim.com.

Bric’s

Lifelong success With 60 years behind it, Bric’s has mastered the formula for meeting consumer demand BY MELISSA SILVA

remium travel goods brand Bric's is celebrating its 60th anniversary this year and in commemoration, recently introduced the Life 60° limited edition collection. The collection is meant to serve as the company’s tribute to its iconic Life line, which is performing exceptionally well thanks to the release of new models and augmented brand visibility. Strengthening its position is the company’s mandate to use unique materials to create equally unique products, a mandate that began back in 1952 when Mario Briccola launched the brand. The Life products, particularly the travel items, account for most of Bric’s global success. The company aims to meet the expectations of increasingly demanding consumers by combining functionality, strength and elegance in its designs. “The product that best represents the relation between quality, look and performance is the compound trolley, a great example of lightness and convenience,” says Michele Maccapani, Duty Free and Travel Retail Manager, Bric’s. Made without a metal frame or stiff parts, the trolley features moustang, a special material that is doubled with a polyethylene-foam layer for added strength. Bric’s focuses on lightness (maximum weight is 2.8 kg for the cabin trolley), flexibility and versatility, which derives from the material’s own memory features—the material’s ability to reassume its original shape. Trimmings are made of vegetable tanned Tuscan leather, the Bric’s logo is hot-stamped on a leather patch, and all metal parts are made of gilt nickel. The lines are clean with large front pockets. The famous Japanese Hinomoto wheels provide good slide and quietness. The trolley, like all the other Life items, is available in grey, dark brown, olive and dove grey, as well as in the seasonal hues. Maccapani says that the Life collection is also performing particularly well in the Middle East, along with Sintesis, a polycarbonate collection with leather trimmings. With strong demand in the region for luxury and Italian-made goods, the brand seems poised for growth. Bric's also offers Life Pelle, a dedicated business line designed for professionals. The line provides a broad range including trolleys, tote bags, briefcases, shoulder bags,

purses and small leatherware, available in black, brown and dark brown. Life Pelle is doing well for the brand. All the products are made of vegetable tanned leather, which produces a natural color thanks to the natural extracts gathered from the mimosa, quebracho and chestnut trees. The tanned leather is environment-friendly and allows the skin to age without spoiling. Available in two sizes, the Life Pelle trolley reproduces the same concept as the Life cabin trolley—leather coupled with a polyethylene foam layer to maximize strength.

Advertising visuals for Bric’s Life and Life Pelle collections

Anniversary increases “Life’s 60th anniversary is recording a good response on the market,” says Maccapani. “Globally we are increasing about 5% with peaks of growth in the US and in the emerging Asia market.” Regarded as chic and refined, Life 60° offers classic olive green moustang with black leather accents and trimmings, as well as a browned-metal “Bric’s 60” logo. As the demand for pieces that are lightweight and made from technical materials increases, Bric’s has responded with its Polycarbonate collection. In the past two years Bric’s launched an initiative to study and optimize all the components of polycarbonate travel bags, working in particular on lighter wheel holders, a new pull-handle, smaller feet and new interiors. The result is the four-wheel cabin trolley from Bric’s Pininfarina line, part of the BP1 collection. The cabin trolley weighs in at 2.4 kg. Pininfarina has also just launched a new range of briefcases and shoulder bags. These products, which feature sophisticated detailing, new materials, leather trimmings and waterproof zippers, were designed specifically in response to current consumer demand. Made of a polyamide fabric, obtained through jacquard processing with a sturdy, single-thread nylon yarn, the products in the collection have front pockets for papers, phone, palmtop and pens; side pockets with key-strip; inside computer and iPad case; small pockets for SIM and micro-SD; ergonomic anti-skid straps for the shoulder bags; customized plastic and metal zip pullers. The collection is available in black and olive.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Beyond the bags, Bric’s is developing new projects in several different countries, in particular with DFS at Hong Kong International Airport. Although economic conditions have been unfavorable lately, Bric’s remains optimistic about growth prospects for the brand worldwide—primarily in Brazil, Russia, India and South Africa. “It is possible to do business also in difficult times,” says Roberto Briccola, General Manager, Bric’s. “Our founder has always claimed that ‘we must believe in what we do.’ We do believe in what we are doing and are more than ever committed to put in place this outstanding c project.” Bric’s Pininfarina trolley made with ultra-light polycarbonate

Pininfarina Briefcase

Kraft Foods World Travel Retail

Kraft conquers

Kraft Foods aims to drive growth with a new and innovative category vision along with a robust product offering his year at the TFWA World Exhibition in Cannes, Kraft Foods World Travel Retail (KFWTR) launched a new category vision along with a new product lineup, as well as new offers from its leading regional brands, Marabou, Freia and Stimorol. The company revealed new items in chocolate, gum, candy and biscuits. “From a new ‘out of the blue’ Toblerone taste sensation to the unique and colorful Bassett’s Travel Mix soft jelly candies, there’s plenty to excite and delight travelers’ taste buds around the world,” says Nicole Hatt, Manager Category Marketing, KFWTR.

Toblerone Crunchy Almonds in a 400g tablet

‘Out of the blue’ Toblerone experience Travel retail icon Toblerone presents two new offers for 2013— Toblerone Crunchy Almonds and the limited edition Toblerone Tin Box. Toblerone Crunchy Almonds delivers a new taste experience for the channel’s most popular chocolate brand. The traditional recipe of Toblerone milk chocolate is enriched with caramelized almonds and a touch of salt. Designed for informal gifting, Crunchy Almonds is available in two product sizes: the iconic 400g tablet and a 6x100g gift box. For more formal gifting, the limited edition Toblerone Tin Box contains 34 individually wrapped Tiny Milk Toblerone and a red, blue and gold color scheme, enhancing shelf presence.

New Flake offers expand Cadbury range Cadbury will extend its travel retail range with new offers from popular sub-brand Flake. The Flake Present Box is an affordable addition to the informal gifting segment, offering 10 crumbly Cadbury Flake sticks in travel-exclusive packaging. For the snacking and sharing segment, Flake Bag presents miniature Cadbury Flakes in a convenient bag format for on-the-go consumption.

Unique offers from the alpine world of Milka Well known for its flavor innovation, this year Milka is delivering not only new taste and textures, but also products from multiple product categories: chocolate, candy and biscuits. 78

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Milka Luflée Caramel offers an aerated Alpine milk chocolate tablet with a liquid caramel filling in unique bubbly shapes, for self-consumption or informal sharing. Milka Toffee is a combination of Milka Alpine milk chocolate surrounding soft, chewy caramel with a liquid chocolate center. The convenient pouch format is suitable for sharing at home or on-the-go. Finally, Milka Choco Wafer offers crispy wafers with a cocoa filling covered in Milka Alpine milk chocolate and has been developed exclusively for cash-till placements.

Daim Snax adds extra crunch In 2013, Daim will enter the growing snacking self-consumption segment with the new Daim Snax. A mix of crunchy Daim caramel pieces, cornflakes and milk chocolate, Daim Snax is presented in a convenient bag format for on-the-go snacking. This new addition, which has been designed specifically for cash-till placement, addresses a new consumer need, while strengthening the Daim travel retail portfolio.

Trident meets key travelers’ needs Whether it’s refreshment, stress relief, social interaction or simple pleasure, gum consumers are driven by a broad range of needs which influence their purchasing decisions. In 2013 the “freshness gum” segment will be targeted with a new travel retail exclusive offer from Trident, which is the world’s top chewing gum brand. Multi-packs featuring five individually wrapped packs of Trident’s bestselling flavors—peppermint, spearmint and strawberry—have been designed to address the “everyday refreshment” segment. In addition, product designs in the “pleasure gum” segment will be revamped next year to encourage travelers to make last-minute, incremental purchases.

Bassett’s adds more fun to travel retail range This year, Bassett’s is extending its popular travel exclusive range with the introduction of a new product specifically developed for the channel: Bassett’s Travel Mix. The mix features soft jellies with fruit flavors in travel-related shapes—planes, cars, boats and trains. The candies are available in two formats: a large sharing box and an impulse bag format. Also new is Bassett’s Sour Winegums in an easy-to-snack and share-bag format. Aimed to entice impulse buyers, the candies offer a tangy snack that can c be enjoyed at home or on-the-go. Bassett’s Travel Mix featuring a colorful mix of soft jellies with fruit flavors in travel-related shapes

Neuhaus New Precious Collection features unique pralines in new shapes and fillings

ANDREW BROOKS

The original inventor of the praline continues to concentrate on quality and uniqueness

euhaus keeps close tabs on the quality of its production processes—a market differentiator for the brand— by conducting production at its single site in Brussels, Belgium. “This is the only production facility we have worldwide,” says Gerry Murray, Head of Travel Retail, Neuhaus. That single-minded focus on quality is one reason that trademark products such as the Neuhaus Collection, a travel retail bestseller, continue to deliver exceptional growth results, Murray says. The Neuhaus Ballotin is also a travel retail star, Murray adds, addressing consumer demand for a more traditional gift purchase. The success that the brand is enjoying in travel retail has prompted

Neuhaus to begin devoting more resources to building the brand in this channel, where it has had a presence for more than 20 years. Earlier this year, Neuhaus extended its travel retail range with the introduction of two smaller sized gift-oriented versions of the Neuhaus Collection, a 12-piece box and a three-box multipack, each with enclosed brochures describing the different confections. The addition of the two new variants enables Neuhaus to offer a broader range of options to traveling consumers, providing choices that will accommodate the stretched budgets that have become more typical in today’s economic climate. New for Neuhaus is the Precious Collection, which has been created especially for the 100th anniversary of the advent of the praline, which

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

was invented in 1912 by Jean Neuhaus Jr., the grandson of the company’s founder. “The pralines look like unique little gems in refined, stylish shapes that are in keeping with their delicious filling, ensuring that perfect mouthmelting chocolate heaven experience,” says the company. “Like any other Neuhaus praline, the pralines in our new collection have each been given a unique name of their own.” Divine, shaped like a half moon, contains soft caramel and slivers of hazelnut in milk chocolate. Rubis, shaped like a precious stone, is a ganache based on a dark origin chocolate from Papua New Guinea with an intense aroma, and is covered in extra-dark chocolate. Perle is rendered in a pearl shape and contains the aroma of Italian Ristretto coffee in a ganache, covered in dark chocolate. The cubeshaped Glamour has a coat of dark chocolate around a traditional praliné à l’ancienne, with a smooth flavor and the added texture of Black Sea hazelnut slivers. Jade, shaped like a tear, is hand-signed by the Neuhaus Maître Chocolatier and combines milk chocolate with a ganache of sweet acacia honey, balanced with small slivers of walnut from Grenoble. The collection is housed in a keepsake box which also encloses a detailed brochure that provides historical information on the centenary of the praline, the Precious concept and the process used to create the new collection. The box itself is presented in an exclusive shopping bag purpose-designed for this collection. The collection was made available through all Neuhaus boutiques and travel retail outlets on October 1. c

insight

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Perfect Store evaluation

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Providing shopper insight activations that deliver results

Anthon Berg

The

Anthon Berg Truffles in premium bags for gifting, sharing or self-indulgence, with window cylinders for formal purchases

glow of giving BY

ANDREW BROOKS

Anthon Berg takes gifting to a new level onfectionery brand Anthon Berg continues to fill in its lineup in the Middle East travel retail market, says the company’s Travel Retail Director, Peter Dige. “We have already listed our world-famous chocolate liqueurs and other products containing alcohol in the Middle East, and have now also listed a number of our non-alcoholic products with different customers in the region.” The push is being backed up with the presence of three brand ambassadors, who were hired to help develop visibility in select outlets and conduct in-store promotional activities. The strategy seems to be bearing fruit, as sales in the Middle East rose 16% in the first eight months of 2012 compared with the same period last year. The fact that Anthon Berg was recently listed in Jordan is likely to add to that momentum. This degree of success probably reflects the fact that since 2009 Anthon Berg has had a specific strategy tailored for the Middle East travel retail market. This strategy will be pursued through 2015, Dige says, at which time Anthon Berg’s overall strategy for the travel retail side will be reviewed and new goals established. Economic conditions have impacted buying trends: Dige has noticed that while customers used to take a “bigger is better” approach, reduced budgets have prompted a move to smaller sizes at lower price points, which has prompted Anthon Berg to make appropriate changes to its assortment. At the same time, Dige says that Generous, the new Anthon Berg brand universe, is seeking to establish market momentum for the gift-giving impulse, building on what it sees as an international mega-trend toward generosity and consumer engagement, and a backlash against the self-centered “having” impulse. The trend reflects Anthon Berg’s own beginnings in 1884, when the company’s founder would hand out free treats to customers lined up outside his Copenhagen shop. Launched in Cannes last year and bearing the tagline “you can never be too generous,” the new brand identity has gained a lot of attention in the industry and has already garnered some international awards, Dige says. To maintain the market mindshare that Generous has already won, Anthon Berg plans to launch some new and innovative promotional

activities in 2012, Dige says. The move back to “bigger is better” may turn out to have been very well timed. “We see the confectionery category growing stronger despite the economic situation,” Dige says. “We continue to bring news to the market, to make sure that we keep the ball rolling.” In 2013 Anthon Berg plans to present a new variant of its Chocolate Liqueurs—in liquid form. The brand is presenting four of the most popular cocktails in the world in tiny, high-quality dark chocolate bottles, in 15and 26-piece boxed sets. Dige says that the bottles stand out in vibrant colors, and on the front they display the specific cocktails inside, which include the Cosmopolitan, the Margarita, the Strawberry Daiquiri and a new drink—the Kicking Mojito. Anthon Berg is already promoting the new liquid cocktails with the distribution of press materials, and has likewise begun a publicity blitz on an upcoming new product for 2013—Sweet Moments Milk Chocolate Truffles. These are an extension of Anthon Berg’s successful Sweet Moments line of individually wrapped chocolates in premium bags. The line is targeted at the gifting, sharing and self-indulgence purchase. It is also available in window cylinder format for formal purchase occac sions, Dige says.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Anthon Berg’s Chocolate Cocktails featuring dark chocolate with liquid cocktail fillings in 15- and 26-piece boxed sets

Confectionery News Contemporary confections For Chocolat Frey, sales in the Middle Eastern travel retail market are doing well, reflecting the double-digit growth that the company is experiencing in all the markets where it’s active, says the company’s Export Manager Travel Retail, Jacques Isler. Dubai and Cairo in particular are the top performing airport locations in the region. “We’ve had good success with our new item, which we introduced in Cannes last year, the Chocobloc 5x100g assorted gift pack,” Isler says. “Apart from this, sales of our Chocobloc 400g range have increased remarkably, as well as our pralines and the classic large 300g bars.” When it comes to promotional activities, Chocolat Frey tends to emphasize tastings at airports around the world, reinforcing this approach with gift-with-purchase initiatives in select regions, Asia in particular. This year, Isler says, the company has also focused on “more classic” activities. Isler finds that sharing and informal gifting are, as ever, the mainstays in travel retail, and he expects this trend to

continue into the future. Accordingly, Chocolat Frey’s new product development strategy remains focused on this segment of the market. Recently, Isler and his team presented three new SKUs in the Praline range offered in “modern, fresh and elegant packaging.” Also new are Chocolat Frey’s 180g Crunchy Bars, which contain over 30% nuts and are offered in three chocolate flavors: milk-hazelnut, dark-hazelnut and white with almonds. “These are sure to drive any nut-lover crazy,” says Isler. The brand has also redesigned its 500g Chocobloc Mini pouches, one of its bestselling products. “We’re sure that the new, modern and eye-catching look will appeal to our customers and consumers and generate more sales,” says Isler. One of the pouches will be filled with the

Newer and nuttier

sweet, chocolate-based products,” says James Kfouri, Sales Director Australia/SE Asia, Paramount Farms. “There’s a real need to offer products that meet the demand for healthier savory snacks which, at the same time, are still fun to eat and are tasty. The Wonderful Pistachio brand is perfectly placed to meet that need, each portion offering a variety of vitamins, minerals and beneficial nutrients.” The product line is equally suited for gifting in its premium packaging formats, he says. Currently the top snack nut brand in the US and sold in more than 30 countries, Wonderful Pistachio has ambitious goals for travel retail. “We’re already listed with existing Wonderful Pistachio formats with Dubai Duty Free, Al Musbah in Saudi Arabia and Muscat Duty Free, where the product sells very well,” says Kfouri. “Our goal is to expand distribution globally with our travel retail range, initially targeting key

Following its travel retail debut at TFWA Asia Pacific this year, Paramount Farms recently brought its Wonderful Pistachio brand to Cannes with a new range developed exclusively for the channel. With product already available in Middle East outlets, including Dubai Duty Free, the company aims to capitalize on the growing snack and sharing sector of the confectionery and food category with its Wonderful Pistachio brand of health-conscious pistachio and almond products, all grown, processed and packaged in California. Recently introduced were two new exclusive pack sizes: a 300g pack of Roasted & Salted pistachios and a 275g pack of Salt & Pepper pistachios, both available for US$9.50. They will be offered in re-sealable, stand-up pouches and carry a global travel retail exclusive logo. In addition, Paramount will promote its existing 510g gift bag, which for travel retail will include a hang-tag with multilingual nutrition and ingredient details. “The snacking and sharing sector of the confectionery/food category in travel retail continues on an upward curve, but currently the choices are pretty much restricted to 84

bestselling Chocobloc Mini Milk flavor and the other will contain an assortment of four chocolate flavors: milk, dark 72%, white and milk-orange.

Chocolat Frey’s Praline TrioPack featuring assorted praline chocolates

Wonderful Pistachios in Salt and Pepper and Roasted Salted flavors

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

retailers in the Middle East and Asia, where there is particular consumer demand for pistachios and strong gifting culture. From there we’ll focus on building sales in the Americas and Europe.” The new pack sizes aren’t available on the domestic market, giving retailers a differentiator. “We’re in the process of developing specific merchandising units for the range which will create further brand awareness and make self-selection very straightforward,” Kfouri says. Paramount Farms also offers a Wonderful Almonds range.

With the Best Ingredients, the Tasty side of Travelling. S VISIT U 65, TH C AT BOO EAST E MIDDL IVE S EXCLU 1 20 2

For further information please contact Mrs. Katharina Tyrolt at k.tyrolt@ritter-sport.de or Mr. Alexander Noack at a.noack@ritter-sport.de

www.ritter-sport.com

Liquor Report

Room

to grow BY

RYAN WHITE

The Middle East proves to be full of opportunities for diverse spirits suppliers looking to offer their wares to luxury-oriented travelers from all over the world

The success of Gautier Cognac in the Middle East is proof that there is potential for Belvédère’s entire range of spirits in the region

he Middle Eastern market is as diverse as the travelers who visit it, and Gulf-Africa Duty Free recently spoke with three spirits suppliers who have their eyes on this emerging market. From the success of Belvédère Duty Free’s wide ranging portfolio to the latest in luxury from Brown-Forman’s wildly popular Jack Daniel’s brand and H. Mounier’s Prince Hubert de Polignac, it’s clear that there is still room for c growth in the Gulf.

Across

the board

For many operators, the mention of Belvédère Duty Free likely brings to mind images of DANZKA Vodka, known across the globe as “the world’s best travelling vodka,” or Bruce Willis’ tongue-in-cheek ad spots for Sobieski Vodka. However, with a stable of brands that also includes Marie Brizard liqueurs, William Peel whisky and Gautier Cognac among others, the company is very much more than a one-trick pony. Torben Vedel Andersen, Sales Director of Global Duty Free at Belvédère Duty Free, tells us that while either DANZKA Vodka or Sobieski Vodka tend to lead the portfolio in terms of sales in any given market, Belvédère has been experiencing phenomenal growth across its entire spirits lineup in the Middle East. “Since the last MEDFA conference we’ve really had a constructive year together with Focus Brands, our friends and distribution partners in the Emirates,” Andersen says. “We’ve been expanding the portfolio in the region very nicely.” The business has grown dramatically, both in duty free and the on trade. Belvédère has secured key accounts such as Qatar Duty Free and Dubai Duty Free and is 86

“The Middle East is very multifaceted and cosmopolitan, which is probably why our entire range is doing well. There’s a consumer for everything that we offer.” Torben Vedel Andersen, Sales Director of Global Duty Free, Belvédère Duty Free seeing solid increases over last year. Andersen tells us that the goal is consistent and continued growth over the long term. It’s no surprise that Belvédère’s three best known marques, DANZKA Vodka, Sobieski Vodka and Marie Brizard liqueurs, are performing well in the region. However, William Peel whisky, a brand that is extremely popular in France, is also picking up steam as well. Another exciting development to come out of the region for Belvédère is its listing of the Gautier Cognac range at Dubai Duty Free. The Gautier range offers a variety of price points for consumers, from an affordable VS all the way up to the US$2,000-a-bottle Eden. In addition to being a bit of a coup for the company to be listed at an operation the likes of Dubai Duty Free, the development really highlights the opportunity in the Middle East for Belvédère’s entire portfolio. “The Middle East is very multifaceted and cosmopolitan, which is probably why our entire range is doing well,” Andersen explains. “There’s a consumer for everything that we offer, from white spirits drinkers from Russia, brown spirits fans from the Middle East and China or wine aficionados from Europe. We’re determined to seize this opportunity and continue building our brands – along with Focus Brands – in this dynamic market.”

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

DANZKA Vodka, known as “the world’s best traveling vodka,” has seen great success in the Middle East

Liquor Report

Hand selected by Master Distiller Jeff Arnett, the “Sinatra barrels” used to make the product were crafted to provide an extra full character and darker rich amber color

Honoring

bottle. The premium package also includes a specially designed gift box and book telling the story of the legendary Jack Daniel’s and Frank Sinatra relationship. Commenting on the special At the launch of Jack Daniel’s Sinatra Select Jack Daniel’s offering honoring in Cannes, attendees his father, Frank Sinatra, Jr. said, were treated to an appearance by “Dad would be very flattered by the Frank Sinatra Jr. association. This fine Tennessee Whiskey, or Old No. 7 as he referred to it, was a favorite part of my father’s life and he loved both sharing it with his friends and introducing it to new acquaintances. I’m very pleased to continue to be a part of the Jack Daniel’s family and feel the introduction of Sinatra Select is an appropriate tribute As mentioned, brown spirits are certainly as we near my father’s 100th birthday in 2015.” According to Jim Perry, Managing Direcbig in the Middle East, and having an established name like Jack Daniel’s has certainly tor for Brown-Forman Travel Retail, the helped Brown-Forman in the region. Better idea for a Jack Daniel’s premium whiskey to than one established name is two, and at this salute “Ol’ Blue Eyes” has been suggested for year’s TFWA exhibition in Cannes Brown-For- many years. “It was common knowledge both within man made a big announcement regarding the the entertainment industry and in the world next Jack Daniel’s variant to hit duty free. In recognition of the relationship between of Jack Daniel’s that Frank was one of Jack’s two American icons, Jack Daniel’s Tennessee biggest and most loyal fans,” Perry said. “He Whiskey, in association with Frank Sinatra often referred to his favorite whiskey as the Enterprises (FSE), is launching a new ultra- ‘Nectar of the Gods.’ In discussing this spepremium expression exclusively in travel retail. cial edition Jack Daniel’s, the Sinatra family Crafted from special “Sinatra barrels,” Jack responded with a great deal of enthusiasm. Daniel’s Sinatra Select is bottled at 90 proof All Frank’s children were vocal and encourand comes in a specially designed one-liter aging in their endorsement. We feel that Jack

Ol’ Blue Eyes

Keeping luxury at the forefront

H. Mounier hosted a launch party for a new Prince Hubert de Polignac expression at this year’s TFWA WE in the appropriately luxurious Carlton Hotel

Just as popular in the Middle East as brown spirits is luxury and opulence, and there was no shortage of these characteristics at H. Mounier’s stand at this year’s TFWA WE in Cannes. Perhaps most notably for the company this year, Prince Hubert de Polignac and T.T. Trunks combined their skills to design a trunk reflecting an alliance between cognac and poker. Gulf-Africa Duty Free attended the launch of the new trunk at the appropriately luxurious Carlton Hotel in Cannes, and in addition to the exquisite liquid in the decanter, the packaging is truly a sight to behold. H. Mounier told us that to celebrate the alliance, the cellar master wanted to reveal his most original brandies, secretly preserved in the paradise of the House of Polignac. The magic of very long aging has given this exceptional blend of Grande Champagne cognac an intense aromatic richness, combined with the vivacity of aromas of candied citrus, delicately enhanced by notes of dried fruit. Its finish is described as “intense and captivating, characterized by extreme finesse.”

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Daniel’s Sinatra Select will quickly become a cherished item for your home bar and encourage folks to enjoy this superb whiskey.” Hand selected by Master Distiller Jeff Arnett, the “Sinatra barrels” used to make the product were crafted to provide an extra full character and darker rich amber color by exposing the spirit to extra layers of toasted wood on the inner surface of the barrels. The extra rich barrels were mingled with classic Old No. 7 Tennessee Whiskey and bottled at 90 proof, resulting in a character that is full of oak and spice notes with an exceedingly smooth vanilla finish. “The smooth, bold character of the whiskey is meant to embody the smooth, bold character of the man,” said Brown-Forman. Also new at the H. Mounier stand was an exceptional new decanter of Prince Hubert de Polignac Extra Cognac. A rare spirit for true Cognac lovers, the variant is presented in a prestige gold and black box adorned with the company crest. This new Extra Cognac is offered in a gracefully rounded decanter that jealously guards the Grande Champagne Cognac within. In the mouth, the Prince Hubert de Polignac Extra reveals exceptional smoothness and aromatic depth. Long years of aging give this Cognac the characteristic mellow roundness of the Charente terroir. Its deep golden robe with amber glints offers hints of vanilla, cinnamon and almonds, with candied fruit and spice aromas beneath. While obviously perfect for the Asian market, the large number of Chinese travelers to the Middle East certainly makes these offerings applicable to the region as well, while the packaging of the new T.T. Trunks collaboration is sure to pique the interest of c any fan of luxury spirits.

Fine Cut Distinctively Smooth Taste

Each of the Fine Cut blends is unique, consisting of different tobacco varieties cut forty-six times per inch. Discover your blend.

For Tobacco Trade Use Only

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Liquor News

St-Rémy VSOP High Proof is a new variant of the highly coveted French Brandy, exclusive for the rest of the year to Dubai Duty Free

Rémy Cointreau targets Middle East and Turkey with two exclusive new releases Recently at this year’s TFWA WE in Cannes, Rémy Cointreau Global Travel Retail exhibited the 2013 limited edition Rémy Martin VSOP Cannes; St Rémy à la Crême, which has to date been seen only in Canada; the Metaxa 5 Stars Rising Sun Limited Edition, a new design for Russian Standard Gold and the new Piper Heidsieck range. Matthew Hodges, Marketing and Business Development Director for Rémy Cointreau Global Travel Retail, tells us that worldwide business has generally been brisk over the first half, but it’s particularly apparent that the Middle East and Turkey are areas that have seen a significant bit of activity from the supplier of late. Rémy Cointreau recently announced that it launched St-Rémy VSOP 90 Proof as a 90

limited edition exclusive to Dubai International Airport for the rest of this year. St-Rémy is the world’s finest French Brandy and the winner of numerous awards. A masterful blend of wines from some of the best vineyards in France, it is distilled and aged in cellars deep in the Chateaux de La Loire. St-Rémy VSOP High Proof is a powerful new addition to this successful collection, which includes VSOP and XO expressions, and is expected to blaze a trail for St-Remy in global travel retail. Amber in color, highlighted by golden hues, it is appealing to the eye and distinctive on the palate. Decades spent aging in small oak barrels have lent it pronounced wood aromas with hints of leather and tobacco. Things are no less exciting in Turkey,

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

where the House of Metaxa has designed a special limited edition specifically for the Nuance Group boutiques at Antalya. Metaxa 5 Stars Rising Sun 2012 Collector's Edition is emblazoned with a bright yellow sun marked with the “Salamina Warrior,” the emblem of the House. The distinctive blue belt bearing the five stars declares the style of the spirit. Furthermore, the amber color of the liquid can be admired through a transparent vertical Metaxa mark that adorns the back of the bottle. In recognition of a growing partnership with the House of Metaxa and with Rémy Cointreau, Nuance Antalya reserved a six-month period of exclusivity for this limited edition, and they are currently making it available in nine boutiques across Antalya airport.

The world’s international exhibition for travel retail, duty free and luxury goods

MEE 2012 is the new premier event for the world’s duty free, travel retail and luxury goods market. MEE 2012 brings the world’s travel retail industry to its fastest growing and most successful region. MEE 2012 will be the highlight of a packed week of travel retail events in Dubai, including the MEDFA Conference and Dubai Duty Free World Golf Cup.

Middle East Exclusive 25-27 November 2012 Dubai World Trade Centre

Now jointly presented by MEDFA (Middle East Duty Free Association) in partnership with Channels Exhibitions For online registration visit MiddleEastExclusive.com or contact us at Channels Exhibitions on +971 (0)4 282 4737, or email channels@channelexhibitions.com

Channels Exhibitions, PO Box 55254, Dubai, United Arab Emirates. Tel. +971 (0)4 282 4737. Fax. +971 (0) 282 5757. ChannelsExhibitions.com

Liquor News

Patrón Tequila adds new duty free listings across the globe

The Glenfiddich Crystal Stag gondola was unveiled at the Delhi Duty Free shops on Friday, October 5

Glenfiddich unveils the prized Crystal Stag Gondola at Delhi Duty Free Delhi Duty Free, India’s largest duty free retail space at T3 at IGI Airport has continued its tradition of firsts. The operator has announced that it is the first duty free in the Indian subcontinent to place the Glenfiddich Crystal Stag Gondola in its shops. The gondola was unveiled at the Delhi Duty Free shops on Friday, October 5. Weighing 422 kg, including 70 kg of beautifully polished lead crystal glass, the crystal gondola is a one of a kind structure and is closer to a piece of art; combining the skills of designers, sculptors, glass artists, carpenters and coppersmiths. Most importantly, the gondola brings the pioneering spirit of Glenfiddich to life by expressing the incredible natural resources and great craftsmanship that give every single drop of the world’s most awarded single malt its unmistakable character. “This creative gondola is placed only at few priority airports worldwide,” said Neeraj Sharma, Global Travel Retail – India

Subcontinent Manager, William Grants & Sons. “We are happy to now introduce this gondola at Delhi Duty Free shop, one of the most popular and prime duty free shops in the Indian Subcontinent region. This is a significant investment from our side, symbolizing the importance that Delhi Duty Free has for Glenfiddich’s business in global travel retail. Known to create masterpieces, the introduction of the Crystal Stag Gondola marks yet another innovation brought in by the brand Glenfiddich for the true connoisseur.” “We are delighted to be one of the few duty free shops in the world, and the only one in the Indian subcontinent, to have this superb and unique Glenfiddich Crystal Stag Gondola placed at our shops. The Indian travelers have always appreciated the exclusivity and variety we have offered at our shops and we are confident that the shopping experience at Delhi Duty Free will be enhanced by this rare and exquisite feature from William Grants & Sons.”

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Patrón Tequila, one of the fastest growing ultra premium luxury spirits in the world, has just confirmed new travel retail listings in airports across the globe, including most recently Tokyo Narita Airport (via NNA Retailing). “Narita is definitely one of the crown jewels in our global duty free footprint,” said John McDonnell, COO at Patrón Spirits International. “The spirits offering at Narita has long been dominated by brown spirits and local products, and so a listing for Patrón there is enormously significant. It’s undisputed proof that Patrón Tequila has earned recognition by duty free operators and consumers as a high-quality luxury spirit.” Starting in November, NNA Retailing will offer Patrón Silver, Patrón Reposado, Patrón Añejo, Gran Patrón Platinum and Patrón XO Cafe coffee liqueur in Narita’s Terminal 1 and 2. Also in Asia, Patrón has recently confirmed listings for Patrón Tequilas, Patrón XO Café and Pyrat Rum at Seoul Incheon Airport (via Indulge Korea.) Patrón Silver and Patrón Reposado have also entered duty free in Cambodia with Dufry. And at TTL in Taiwan, Patrón Silver, Reposado, Añejo and Patrón XO Cafe will be available starting late next month. Furthermore, travelers in Armenia, Belgrade, Milan and Morocco can now find Patrón products at Dufry stores in those countries’ gateway airports. Patrón Silver, Patrón XO Café and Pyrat rum are also newly available at Helsinki Airport via Finnair. In the Middle East, Patrón Silver, Patrón Añejo, Patrón XO Cafe and Ultimat vodka have also recently been listed at Muscat Duty Free in Oman. Finally, in South America, new listings for Patrón Silver, Patrón Reposado, Patrón Añejo and Gran Patrón Platinum have recently been confirmed with Dufry for airports in Ecuador (Guayaquil), Argentina (Ezeiza and Aeroparque) and Uruguay (Montevideo and Punta del Este). “It’s very exciting to see the momentum behind our brands all across the globe,” added McDonnell. “Consumers clearly have an affinity for our products, and duty free operators have discovered the profit potential never before seen in the white spirits category.” It’s clear from the recent listings of Patrón’s products that retailers in traditionally brown spirits markets are now well aware of the profit potential of white spirits

Liquor News

Highland Park exclusive travel retail

releases win at Travel Retail Masters

Fearless Norse explorers sailed in magnificent handcrafted oak longboats to colonize Orkney; the most famous of those longboats, the Drakkar, inspired this release by Highland Park

Highland Park has paid tribute to its rich Norse heritage with the launch of two exclusive global travel retail expressions, Highland Park Leif Eriksson and Highland Park Drakkar, both of which secured awards at The Travel Retail Masters 2012. Drakkar took a Master and Leif Eriksson a Silver in the industry honors for travel retail, which are organized by The Drinks Business magazine. Highland Park Leif Eriksson celebrates the achievement of the first European traveler to reach America over a thousand years ago. Thought to have been born in Iceland circa AD970, the courageous Leif Eriksson set out from the Orkney Islands north of mainland Scotland at the dawn of the 11th century to make the perilous crossing of the North Atlantic and establish settlements in Labrador and Newfoundland, a feat which earned him the nickname “Leif the Lucky.” Highland Park Leif Eriksson, a tribute to the bravery of the early explorer, owes its distinctive flavor and color to Orkney’s unique aromatic peat combined with maturation in American oak casks from both bourbon and sherry. Yellow gold in color, Highland Park Leif Eriksson (40% ABV) has a honey-tinged sweetness of orange blossom on the nose with suggestions of vanilla, spicy dried oak, mango and melon. Soft vanilla and sweet barley on the palate with a hint of grape, it has a finish of Muscovado sweetness balanced by wisps of Orcadian peat smoke. Orkney has been associated with the Vikings since the 8th century when fearless Norse explorers sailed in magnificent handcrafted oak longboats to colonize the islands. This heritage also inspired the second release,

Highland Park Drakkar. The Drakkar is the best known of the spectacular longships used by the Vikings as vessels of war. Created for kings and adorned with fearsome figureheads, they were symbols of great Scandinavian power and highly valued by their owners. Rich amber in color, Highland Park Drakkar is a wonderfully warm and honeyed single malt whisky which has acquired much of its flavor from the casks in which it has lain and also from the sweet smoke from the peat of Orkney, its island home, which permeated the drying grain. On the nose Highland Park Drakkar (40% ABV) offers notes of dried fruits with a cherry blossom accent. Pine nuts arrive first before an orange citrus kick, then classic wisps of heather smoke drift through. On the palate orchard fruits come to the front with cherry and orange being the most prominent. The finish is long and lingering, perfectly balanced. "Highland Park continues to perform well and has established itself as a strong brand in travel retail and these latest introductions, exclusive to travel retail, acknowledge this strength,” says Steven Sleigh, Area Director Global Travel Retail, The Edrington Group. “The distinctive design profile of both products, which hark back to intrepid Viking adventures, will mark them out on the shelf as something very special. Both Highland Park Leif Eriksson and Drakkar are single malts of exceptional character and heritage, which will appeal both to shoppers buying for themselves and those looking for a distinctive premium gift." Highland Park Leif Eriksson will retail at around €63 (US$83). Highland Park Drakkar is available only in selected outlets operated by Heinemann and World Duty Free and is exclusive to travel retail. The one-liter bottle will be presented at a recommended price of €39.99 (US$52).

Prowood offers premium Arman Cognac from France, Kilikia brandy from Ararat California-based Prowood Wine & Spirits’ (PWS) offering is steeped in the mystique and luxury of premium spirits. The company’s brands are led by the aromatic and spicy but delicate Arman Cognac from France and an Armenian brandy called Kilikia, made from finest grapes grown in the Ararat Region. PWS is billing Arman Cognac, available in both the XO and VSOP expressions, as the jewel in its portfolio—the “Signature of a Royal Man.” The company says Arman Extra Old Cognac is a blend of a hundred rare and selected eauxde-vie from the premier growing areas of France kept in oak barrels for 20 to 50 years to achieve perfection. Kilikia brandy, on the other hand, is available in the XO expression and is named after the Armenian kingdom called Kilikia or “Little Armenia.” This Brandy is aged for 10 years. After tastings, experts described it as strong yet delicate, while at the same time leaving a definite hint of toasted 94

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

PWS is billing Arman Cognac as the jewel in its portfolio, while Kilikia brandy is aged for 10 years and described as strong yet delicate with hints of toasted wood and cinnamon

wood and a touch of cinnamon. “Since we established PWS in 2003, we have continued to expand the portfolio by responding to consumer's desire for quality and exceptionally smooth spirits,” says PWS owner and President Henrik Sargsyan. “And that is why we observe the market situation with attention, to do our best to provide quality spirits with excellent taste and one-of-a-kind packaging.” In the US, the company also actively targets different markets with strong promotional media support and sponsorships. It sponsored the USA and World Bartenders' Championship in 2006 and participated in the "internationally spirited vodka sipumentary." The company says that over the past few years it also has become one of the largest importers and distributors of Russian vodka in the US.

Pernod Ricard Gulf

ABSOLUT Unique is another new variant that will see strong support from Pernod Ricard’s Gulf region

rom the new ABSOLUT Unique and Chivas Brothers’ Blend offerings to partnerships with Etihad and DFS centered on the Abu Dhabi Formula One Grand Prix, Pernod Ricard certainly has a lot on its plate in the Middle East. Nonetheless, you won’t hear Managing Director of Pernod Ricard Gulf David Freeborn complaining—business is good, key operator partners are performing well and passengers are leaning toward more premium expressions. Gulf-Africa Duty Free: How has business has been? David Freeborn, Managing Director, Pernod Ricard Gulf: Things have been very positive across the region with a continuing trend towards the higher end of the portfolio. Whilst the retail environment has become increasingly competitive we do have strong brands in key categories, which has helped ensure we have been able to keep our business moving forward. Dubai remains strong. The flydubai impact, especially over holiday periods, has definitely supported growth. In addition, the political issues in North Africa & Levant appear to have driven higher traffic into the Gulf and Dubai has been a key destination. However, both Abu Dhabi and Qatar have benefited from passenger traffic growth. Whilst three key airlines are still investing heavily on aviation infrastructure you really have to admire their marketing. GADF: When will ABSOLUT Unique hit shelves in the Middle East? Do you have anything special planned? DF: ABSOLUT Unique will be available in the following stores from September: Dubai Duty Free, Bahrain Duty Free, Oman Duty Free and Qatar Duty Free, and in DFS Abu Dhabi from October 2012. This will be supported by in-store installations and we are planning tastings for Abu Dhabi.

GADF: We’ve spoken before about taking worldwide promotions and tweaking them for regional specificity. Can you give me any examples of recent activations where you’ve done this? Are there any upcoming promotions planned that will have a regional spin? DF: In July 2012 we launched the second phase of The Age Matters campaign in Dubai International Airport. The campaign uses motion and 3D innovation to capture consumers’ attention and we are able to empower consumers with knowledge about age statements so that they fully understand the value of what they are buying. For this second phase of the campaign, we have secured light boxes, digital faces and two standalone mechanized displays within Terminal 3 and a complete transit corridor takeover connecting Terminals 1 and 3 with 3D elements in wall wrappings and light boxes. Through the activation, consumers will be encouraged to look for age statements on Scotch whisky via point-of-sale materials, advertising and public relations. Along with the tagline “Great Things Take Time” and iconic images including the Great Pyramid and Terracotta Army, the Guaranteed Age Whisky logo will be visible in all artwork, which is also included on all Chivas Brothers brands that carry an age statement. GADF: Is there any major cooperation with airport authorities or operators upcoming? DF: We have again just signed off with Etihad around the Etihad Abu Dhabi Formula One Grand Prix and G.H. Mumm association. I do believe this is the perfect partnership, linking G.H. Mumm as the onboard Champagne, also available in the Etihad First and Business Class lounges. DFS have been great supporters of the initiative in Abu Dhabi Duty Free as well, so we get a great link running from the airline through the airport retail environment and then into the

“The environment can be very competitive now, almost to the point of cluttered. Therefore we need promotional activation that is designed to cut through this and have the shopper stopped in their tracks.” David Freeborn, Managing Director, Pernod Ricard Gulf GADF: The new Chivas Brothers Blend has got to be something that will pique travelers’ interests in the Middle East… DF: The Chivas Brothers Blend is a key global initiative for this year, and we will be supporting this locally, especially bearing in mind the strength of the super premium Scotch whisky category in the wider region. We have every confidence that the Chivas Brother Blend will be a huge success. 96

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

actual domestic market itself. Whilst it may be an obvious association there are a lot of people at many different touch points all very much on the same wavelength, which just shows how well these associations can be done if the desire is there. c

Pernod Ricard is expecting great things from the new Chivas Brothers’ Blend in the whiskydriven Middle East

in t e r n at io n a l asso o f airp c iat io n o rt d u t y fr ee sto re s

2013

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Pack your bags to join us for the most important week for your business. “I’ve been attending for over 25 years and it always pays for me to be present.” “Exceeded all expectations, we will be back in 2013 for sure.” “Very impressed with the show in terms of the decision makers that attend this event.” - 2012 Attendees

The Duty Free Show of the Americas is THE place to do business, with all primary show events taking place in one venue. Visit www.iaadfs.org/dutyfreeshow for more information and registration, or call +1-202-367-1184 for assistance. The Duty Free Show of the Americas is hosted by the International Association of Airport Duty Free Stores, representing the duty free industry for more than 45 years.

International Beverage

Picking up on trends BY

RYAN WHITE

From single malts and blended Scotch to luxury spirits and capturing the interest of the Chinese traveler, International Beverage is well poised for success in the MENA region ulf-Africa Duty Free took time at the recent TFWA exhibition to sit down with James Bateman, Global Travel Retail Manager at International Beverage, to discuss business in the MENA region. With a portfolio of spirits that includes blended Scotch, single malts and even baijiu (a Chinese white spirit steadily gaining in popularity worldwide), International Beverage appears well poised to grow its business on the back of the continued popularity of whisky and the increasing number of Chinese travelers visiting the region. “Our business has historically been focused on the Gulf but is now growing across North Africa and the Levant too,” Bateman told us. “Our regional focus on Scotch is twofold: the first is about supplying blended Scotch whiskies such as Hankey Bannister, while the second is about opening up awareness of our premium single malt Scotch range.” Bateman tells us that Muscat Duty Free, Qatar Duty Free and Beirut Duty Free have all been on top of the trend toward single

malts. In fact, the operators are trying several of International Beverage’s single malt whiskies. While these aren’t mainstream, high-volume spirits, Bateman is pleased to get on shelf and work with the operators, seeing the listings as perhaps the first step in what would ideally become a long relationship. “It’s a question of building up the education of the retail staff where single malts are concerned so that they can then pass on that knowledge with confidence to curious consumers,” Bateman explains. “That investment of time into relationships is an important part of our business.” One of the more unique listings that International Beverage has secured at Beirut Duty Free is the Old Pulteney “WK” travel retail series of single malts. Earlier this year the third and final release in the WK series, called WK217 Spectrum, was released. The WK range celebrates the illustrious fishing heritage of Wick and Caithness where the award-winning spirit is distilled. WK217 Spectrum follows WK499 Isabella Fortuna (Cask Strength) launched in 2010 and WK209 Good Hope launched in 2011. Also at Beirut Duty Free is the Balblair Vintages range of single malts. The latest release, Balblair 1996, replaces the very popular 1995 Vintage and is available exclusively through global travel retail in one-liter bottles. As with every expression, Balblair 1996 is un-chillfiltered, naturally colored and bottled at 46% ABV for maximum flavor delivery.

Opportunity abounds International Beverage has just scratched the surface in the MENA region, and a number of new developments at the company are set to continue targeting three important opportunities in duty free: the powerful attraction of exclusive WK217 Spectrum (pictured) follows WK499 Isabella Fortuna (Cask Strength) launched in 2010 and WK209 Good Hope launched in 2011

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Old Pulteney 40YO picks up on two important trends in travel retail—rare, luxurious spirits and single malts

luxury spirits, the increasing appetite for single malts and the Chinese traveler. Old Pulteney 40YO was just showcased at TFWA WE for the first time to an excellent response. While only around 300 bottles are available worldwide in all channels, Bateman sees this latest—and rarest—expression of Old Pulteney as perfect for travel retail. “Normally with a product this limited and high value, you may not necessarily make it available to duty free, but because airports have become such premium environments, we hope to secure some listings in travel retail across the region,” he explains. While the above may indeed go a long way toward piquing the interest of the well heeled Chinese traveler passing through the Gulf, Bateman reminded us that International Beverage also has a range of wholly owned and produced baijius from its Yulinquan Distillery in Yunnan, China. “Business is going well in the MENA region and we’re pleased to be working with some wonderful operator partners in the region,” Bateman concluded. “It’s clear to everyone that the blended Scotch whisky market is booming and it’s nice to see some operators taking an interest in the evergrowing single malt segment. Fortunately for us, we’ve got a number of great brands to suit most every type of whisky lover and we’re confident that business in the region will only c improve as we move into 2013.” International Beverage has a range of wholly owned and produced baijius from its Yulinquan Distillery in Yunnan, China

King’s Tobacco

Pictured is Merilyn Pink; King’s Tobacco is now beginning a rollout of a new menthol variety that will makes its way to the Middle East after its launch in Europe

GWPs ar e pictured a big part of Kin g’s Tobac is a prom co’s stra otion th at gives te custome gy; rs a free t-

shirt

Seizing the opportunity BY

RYAN WHITE

King’s Tobacco builds its travel retail business from the ground up by fostering strong relationships with its operator partners and concentrating on the quality of its products ulf-Africa Duty Free recently had the opportunity to sit down with Ivan Milev, Duty Free and Travel Retail Manager at King’s Tobacco. We discussed business in the MENA region specifically and found that within this emerging market, opportunities abound at more than just the big names in airport retailing. Indeed, King’s Tobacco has found success by building strong relationships with smaller operators as it continues to establish itself as a player in travel retail’s tobacco category. King’s Tobacco’s main clients in the Middle East include Jordanian Duty Free, Iraq Duty Free, Lavyam Sanal in Israel and Azerbaijan Duty Free. While King’s Tobacco has been concentrating on The King Red and Blue varieties at the above stores, the company recently announced the launch of the Merilyn Menthol cigarettes in select markets. “The brand targets female smokers given its clean menthol taste,” says Milev. “Merilyn Menthol will be launched first in some European duty free shops with a rollout in the Middle East and Asia to follow shortly thereafter.” In terms of the existing listings in the Middle East, we asked Milev how sales have been. He told is that despite regional unrest, particularly in Syria and Iran, the brands are performing well. Top selling products include Corsair Red and Blue varieties with Jordanian Duty Free and The King Slim White and Black offerings at the Iranian border. In fact, Milev tells us that for King’s Tobacco, opportunities still abound in the region. In fact, the company has just opened a local office in Erbil, Iraq and is currently working on establishing a domestic distribution system in the country. “As a young company we are very happy with the listings we’ve achieved and the sales results we’ve seen,” Milev explains. “Our perspective is that there is a lot of promise in the region and we’re currently exploring ways to tap this potential to its full extent. The new office in Iraq is a perfect example of this.”

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GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

North Africa has also become a major focus for King’s Tobacco in recent years. Milev points out the domestic and duty free markets in Egypt and Lybia as particularly interesting for the company. “We are already seeing great results there and have established some loyal customers,” he says. “King’s Tobacco products will also be available in Tunisia, Morocco and the Sudan in the next few months.” As a means of grabbing attention in store, King’s Tobacco often runs GWP promotions. Milev asserts that particularly good results in this regard have been seen at Jordanian Duty Free stores. Another option for operators are branded gondolas. Indeed, King’s Tobacco has a track record of working with operators to develop meaningful category solutions toward the end goals of giving travelers what they want and keeping the tobacco category fresh. Milev concluded our conversation by noting that the successes that King’s Tobacco has enjoyed in travel retail in recent years really begins with the quality of the product. “Our cigarettes contain a selection of the finest tobaccos from around the world,” he explains, “but the point of difference in terms of taste is that we also use a percentage of special Bulgarian tobacco in our products. Consumers are becoming more and more discerning when it comes to their purchases, and it’s important that we set ourselves apart from the pack.” At this year’s Middle East Exclusive tradeshow, held in conjunction with the MEDFA conference, King’s Tobacco will be exhibiting at stand D32. The company has a history with the exhibition and has seen good results in past years, Milev explains. “We’ve participated at the Middle East Exclusive exhibition for a few years now and as a result have gotten some contracts, so we’ll certainly be back this year,” he says. “We’re looking forward to making new contacts again this year and continuing what we feel has been a very successful beginning in duty c free for King’s Tobacco products.” The King is the company’s flagship brand

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For more ore information: information: please contact BelvĂŠdĂ¨re BelvĂŠ Duty Free at dutyfree@belvedere.dk e e@belv edere.dk or +45 36 98 30 00, dutyfree.belvedere.dk k

Royal Agio Cigars

Tailored for travel

Royal Agio Cigars opens up the duty free market with new traveloriented products and packages BY

ANDREW BROOKS

he Dutch cigar manufacturer Royal Agio Cigars is planning to put its best brands forward this year on the international travel retail stage by introducing a series of travel retail exclusive packs. “For our customers, the travel retail and duty free operators, we are preparing innovative concepts to improve the presentation and visibility of our category in their shops,” says Export Manager Stephan Qarimi. The brands in question are Agio Tip, Mehari’s, Panter and Balmoral. In particular, Agio is aiming to highlight the Short Corona addition to the Balmoral Dominican Selection line. Described as a “short but sturdy cigar,” the new product offers the busy customer a satisfying smoke within a convenient time window, a key consideration when traveling. Based on a unique blend of Dominican and Brazilian tobaccos, each cigar is individually packaged in cellophane, which preserves the cigar’s quality over a longer time frame, another important factor for the traveling consumer. “Despite its length, this cigar offers a full aromatic and perfectly balanced smoking experience,” Royal Agio says. “With hints of vanilla, coffee and cedar you will perceive a mild but full taste—rewarding in every sense.” Also slated for release are the Panter travel retail exclusive packs. Following several different launches in the past few years—including the Dessert range—Royal Agio has expanded the Panter brand successfully. Qarimi says that Panter is now a household name in more than 100 countries across the globe, with a strong position among the top ten leading cigarillo brands in the world. The completely restyled Panter Travel Retail Exclusive packs are designed to increase the communication of the brand values, thereby improving the hand-value of the pack. “The market for small cigars has grown rapidly in recent years,” Qarimi says. “Consumers are selecting the Panter cigarillos for their convenient size and shorter smoking time.” Royal Agio produces and sells 750 million cigars annually, mainly though its own sales channels in western and southern Europe. Agio also exports to over 100 countries around the world. Founded in 1904, it is still a family-owned business. The tobacco industry these days is one fraught with restrictions, which vary from market to market and country to country. “On displays we often have to publish health warnings and sometimes we’re limited in the use of our visuals, as well as branding on the displays, and/or gondolas,” Qarimi says.

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GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

The Short Corona, new to the Balmoral Dominican Selection, is tailored for travel

“We are also limited in terms of the promotions we can execute—gift with purchase/price-offs, etc. But the duty free tobacco category has always been considered to be a major footfall driver, and accordingly at Royal Agio we always find a way to compensate for any restrictions on advertising, promotions, or displays by offering travel retail exclusives, special packaging designs and limited editions.” In particular, Royal Agio Cigars has always been seen as a strong player when it comes to packaging design, and in the travel retail market consumers have been found to be especially responsive to attractive products and packaging. And of course there are always the travel retail events. “Agio Cigars is always pleased to participate at events like MEDFA or the TFWA show, because it offers us great possibilities to present our cigar brands to our international travel retail and duty free customers,” Qarimi says. “Besides, it’s an excellent opportunity to meet journalists and international relations working in this innovative and particular segment c of the industry.”

Tobacco News Davidoff releases

new 2012 limited edition Davidoff recently introduced its Davidoff Limited Edition 2012 cigar. The premium product takes the form of a “White Edition,” as the Limited Edition has once before. The accent is on design, with the cigar’s dark wrapper leaf contrasting with the white band, which features Davidoff lettering in gold ink. The cigar also has a white band at the foot with “2012” inscribed in motherof-pearl. Davidoff notes that the Robusto Gordo format supports the graphic harmony. Davidoff says that a strong and full-bodied taste is the hallmark of the new Limited Edition. The filler tobaccos, drawn from a range of growing regions in the Dominican Republic, have been aged for six years before being combined. The addition of the Piloto binder leaf and the Dominican Criollo wrapper leaf enhance the cigar’s aroma and complex notes in the finish. Available in the Middle East as of October, the Davidoff “White Edition” 2012 comes in a white enameled box, proThe filler tobaccos for the Davidoff Limited Edition 2012 duced in a limited, individually were drawn from a range of growing regions in the Dominican Republic and aged for six years numbered run of 8,000.

Villiger navigates rules and regulations in UAE One big challenge for Switzerland-based Villiger is the implementation of new tobacco regulations in the UAE countries. “The main problem is that governments and health authorities consider cigars as cigarettes although they are two completely different products,” says Villiger’s Export Manager Lydia Garcia. Having become a party to the WHO Framework Convention on Tobacco Control in 2005, in 2009 the UAE took the step of drafting a federal law that bans the importation of tobacco and tobacco byproducts unless specific standard requirements are met. These conditions include clear written and printed graphic health warnings on packaging and a ban on the advertising, promotion and sponsorship of tobacco products. The law hasn’t yet been enacted and remains in draft form. The new rules add another obstacle for Villiger, but the company, which is well represented throughout the Middle East, has proven to be resilient. Within the UAE Villiger’s products are shelved in Dubai Duty Free and Abu Dhabi, and they are also on sale in nearby Bahrain and in Qatar, where sales are doing especially well, rising by more than 15% compared to last year. Villiger is also sold in Egypt. “There are at least four operators and we supply all of them,” Garcia says. 104

Garcia reports that Villiger has new listings in Abu Dhabi Duty Free. One is the Saphir Mini, which Villiger describes as a medium-strength cigarillo with a natural wrapper and “a harmonious blend of spicy oriental tobacco.” The Red Mini is a mild and slightly aromatic cigarillo featuring an “exquisite” tobacco blend. Both brands, which will be launched through Villiger’s importers in Dubai, will be displayed prominently at MEDFA. Garcia notes that there is a strong potential market in the region for aromatic cigarillo products as well. Promotions featuring gift with purchase are one favored market approach that Villiger employs to boost product sales in the Middle East, Garcia says. These are well received by consumers in the region as elsewhere, and the success is boosted by ensuring that the gifts themselves are high quality. Priorities for the coming months include a stronger focus on in-store displays and activities with a view to boosting shelf rotation and consumer penetration. Garcia says that Villiger is also working on improving store visibility and listings.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Villiger’s Saphir Mini and Red Mini, newly listed in Abu Dhabi Duty Free

Ray Tobacco focuses on quality to build its brands Despite experiencing a slowdown during the first half of 2012 thanks to unfavorable economic conditions, the second half of 2012 has proven to be quite successful for Ray Tobacco International. With more than 50 duty free outlets in Egypt and a strong presence in Libya, Tunisia, Beirut, Turkey, Romania, Bulgaria and Greece, Ray also maintains a good position in South East Asia. Looking forward, Ray hopes to strengthen its presence in the Americas. Regarding its product lineup, Ray recently added Esti Slims and Jackman to its portfolio. Ray’s own whisky brand Walton is doing very well in the Middle East region along with Walton beer, and in 2013 the brand will be releasing a dark beer in addition to expanding its current listings. Ray Tobacco has seen particular success in Egypt recently, with listings in some 50 points of sale—both airports and border stores—over the last few months. Other new travel retail listings include Australia, Cyprus and Turkey. “We’re also working on Dubai, Israel and Beirut,” says Chris Pfister, Export Director for Ray Tobacco, “but nothing has been confirmed yet. At the moment our duty free business is about 50% airports and 50% border stores. We do very well at border stores in the Middle East and I think many of these locations often get overlooked by suppliers. “We try to make really good cigarettes from a quality standpoint, by always selecting good tobaccos. Within this low-price segment, we are the higher-end brand,” says Pfister. “Even in this price segment, you can have a quality difference.” Presently, Ray’s Walton Whisky is on display alongside Pernod Ricard’s Chivas Regal at Cairo Airport. “People try Walton and they’re surprised at the quality when they know the price,” says Pfister. “They can hardly imagine that at this price you can have such a good whiskey. That makes people come back. We’d rather start with low margins and build up the brand, which allows us to attract customers and keep them because of the quality.”

Ray Tobacco has seen particular success in Egypt recently, with listings in some 50 points of sale—both airports and border stores—over the last few months

Bommidala concentrates on proactive promotions Tobacco producer and distributor Bommidala is introducing the new Nano variant of its Dzire brand into Dubai Duty Free and also across the broader Middle Eastern market. The Nano variant will be one of the key products that Bommidala will be highlighting at MEDFA. The company has been selling through the Dubai Duty Free departures outlet for the last few years, and Bommidala Vice President Naveen Natarajan says consumer response has been very encouraging, in particular for the roll-your-own (RYO) brand Rolon. This brand comes in two flavors—Mango and Standard. To date, Bommidala’s Super Slims and RYO brands are selling well, Natarajan says, and he expects the Nano version to add to the market momentum once the brand’s introduction has been completed. Overall, the market for Bommidala products is growing, Natarajan says. In particular, Bommidala is enjoying success with

its Ruby Super Slims range in the Iran and Iraq markets. The emerging trend, Natarajan says, favors shorter super slim cigarettes with a length of 84mm, with packaging that is designed to be smaller as part of the on-trend positioning. “As a USP to the product for the Nano versions, we’re using ventilated dual charcoal filters so that there’s reduction on the tar/nicotine/carbon monoxide levels when compared to the normal acetate filters being used predominantly by most of the players,” Natarajan says. “From our experience the best promotions in duty free are the buy-one-get-one-free promotions, because the traveler either visits the retail outlets with a preconceived brand of choice to buy, or makes a quick decision on value for price buys,” says Natarajan. “Other promos like gifts attached to packs sell too.” This year the company has been able to register a 7% growth rate yearover-year compared with 2011. Natarajan says that once Nano is on shelf he expects that rate to enter double-digit territory.

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

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Japan Tobacco International

JTI believes that tobacco products as a whole can drive footfall into the store for an overall benefit, and the company’s recent Frontier Award is proof that the industry agrees

A commitment

MELISSA SILVA

to the industry

JTI reports heartening results for Q3 on the heels of being recognized by Frontier for its work in promoting cross-category purchases and driving footfall

espite a challenging environment, Japan Tobacco International’s (JTI) Global Flagship Brands (GFB) and total shipments have increased this year along with market share in key regions. According to the company’s most recent statistics, from July to September 2012, GFB shipment volume grew 1.4%, driven predominantly by Russia, Kazakhstan and other CIS+ markets, as well as Turkey, in spite of the challenging business environment affecting industry volume, notably in Western Europe. Total shipment volume grew 0.7%, including the effect of the acquisitions of Haggar Cigarette & Tobacco Factory Ltd. (HCTF) and Gryson. GFB shipment volume growth and strong pricing resulted in 1.0% increase in core revenue and at constant rates of exchange, core revenue5 grew 9.8% and core revenue per thousand cigarettes increased 9.0%. From January-September 2012, total shipment volume grew across all clusters driven by GFB growth and acquisitions. In European countries, total shipment volume grew 1.2%. GFB shipment volume grew 5.1% driven by Russia, Turkey, Kazakhstan and other CIS+ markets. Core revenue increased 4.6%, driven by strong pricing and volume growth. At constant rates of exchange, core revenue grew 12.1% and core revenue per thousand cigarettes increased 9.2%. Year-on-year market

106

share grew in the key markets of Turkey, Spain, Italy, France and Taiwan. In terms of total shipment volume and GFB shipment volume for South and West Europe, both decreased 4.8% and 4.9% respectively due to ongoing industry contraction and an unfavorable economic environment in Italy and Spain. However, market share gains were made in Spain, Italy, France and Greece. In North and Central Europe, total shipment volume increased 0.5% driven by GFB growth in most markets. GFB shipment volume increased 1.6%, notably in Poland, Sweden and Austria. Market share grew in Poland and Germany. Regarding CIS+ markets, total shipment volume decreased 2.8% mainly due to decline of low-end local brands in Russia. This was partially offset by 6.5% GFB shipment volume growth in Russia and other CIS+ markets such as the Caucasus and Uzbekistan. In Russia the company’s share of value and GFB market share grew driven by continued momentum. Overall year-on-year market share decreased. Looking at the Rest-of-the-World, total shipment volume increased 8.4% largely driven by the acquisition of HCTF whereas, on an organic basis, volume grew 3.9%. GFB shipment volume decreased 2.2% amid the on-going political instability in the Middle East. In Turkey and Taiwan, GFB volume and market share grew. Looking closely at the performance of JTI’s GFBs from July to September 2012, Winston shipment volume increased 1.8% driven by Russia and Turkey. This increase largely compensated for a decline in the

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Middle East. Regarding Camel, shipment volume decreased 3.4% due to industry contraction and an unfavorable economic environment in Italy and Spain. Mild Seven saw an increase of 5.2% driven by volume recovery after the May 2011 price increase in Korea, and LD shipment volume increased 6.9% driven by momentum in Turkey, the Caucasus and Kazakhstan.

Driving footfall In related news, an innovative duty free merchandising strategy developed by JTI has swept the Best Supplier of the Year 2012 Award at a leading industry event hosted by Frontier at the Hotel Martinez in Cannes during the recent TFWA exhibition. The award highlights the many initiatives JTI has taken to support its tobacco brands in duty free stores. “Most of all, it describes in detail the success of the pioneering strategy developed to help grow cross-category sales in duty free,” JTI said. “This successfully demonstrates how tobacco products as a whole can benefit the entire tax and duty free industry through their ability to drive footfall into the store. Increased footfall leads to increase more sales and additional purchases,” the company continued. “For some time now travel retailers have acknowledged that tobacco is probably the most effective footfall generator in the entire portfolio of products. What we’ve done is to design a proven strategy for converting that footfall into consumer purchasing, right across the store’s range of core products,” said David Francis, General Manager and Vice President of JTI Worldwide Duty Free. c

MEDIA

knowledge CLIENT understanding

New & Notable SKINCARE Elixir 7.9 Youth Intensifier Company: Yves Rocher Description: Features seven plants and nine anti-aging patents and delivers concentrated antiaging power to the skin with one single drop. Designed for application in the morning and evening, Elixir 7.9 can also be applied underneath day cream for increased rejuvenating effects

White Flash Company: La Colline Description: La Colline bills White Flash as “the first light-creating cure, with three synergistic skincare formulas that take action to reveal, brighten and unify a fair, radiant complexion.” The selective action of LUX-Factor (Lightening Ultimate X-Factor) on pigmentation spots, combined with the anti-aging properties of the CMAge Complex brightens and evens the complexion

CONFECTIONERY

“M” Cream Company: 3LAB Inc. Description: “M” Cream is the first cosmetic product to contain stem cells from the rare Uttweiler Spatlauber Swiss apple, so rare that only three trees remain in existence, according to the company. This luxury skin de-stressing cream works to increase resiliency and cellular turnover “while giving the skin a naturally radiant glow from the inside out”

ACCESSORIES

Ritter Sport mini pouch Company: Ritter Sport Description: The Ritter Sport mini pouch contains ten mini bars of six assorted flavors and weighs 167g in total. A perfect impulse purchase for a snack on the go or to share with friends

Butlers 125g Jameson Truffles Company: Butlers Chocolate Description: Creamy milk chocolate truffles flavored with the distinctive taste of Jameson Irish Whiskey

Tic Tac Collection Company: Ferrero Description: New to travel retail, the Tic Tac 234g collection contains 60 minis in fresh mint, spearmint, orange and acerola cherry

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GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

Surf Rider Company: Maui Jim Description: Premium polarized sunglasses for sports and active lifestyle. Available in black with blue interior and neutral grey super thin glass lenses, black stripe with neutral grey lenses, and tortoise with HCL bronze lenses

Butterfly Twists Company: MCG Consultants Description: An inflight exclusive, Butterfly Twists feature unique packaging and includes a portable travel pouch to fit easily in a handbag or clutch. The new Butterfly Twists are available in black and two-tone cream colors featuring a quilted design, patented toe cap and bow

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New & Notable

FRAGRANCES So Elixir Purple Company: Yves Rocher Description: The new fragrance is built around the central note of tuberose, creating a fresh, herbal and fruity composition. So Elixir Purple opens with bergamot essential oil and continues with tuberose. The fragrance rounds off with benzoin, vanilla, tonka beans, frankincense, patchouli and woody notes, providing a woody trail

Zippo The Woman Company: Mavive Description: Following the success of masculine fragrances The Original and On The Road, Zippo presents its The Woman fragrance for the feminine side

Michael Kors Gold Rose

True Reflection by Kim Kardashian

Company: Estée Lauder Description: Inspired by the success of Michael Kors Gold scent, the Rose Edition exclusive “signature” bouquet is revealed through five floral facets including tuberose, rose centifolia, muguet, peony and gardenia. Additional notes include pink pepper combined with waterlily, raspberry and michelia

Company: Five Star Fragrance Company Description: An oriental fragrance that opens with a burst of sparkling Italian bergamot, plum and peach. The floral heart offers a mix of night blooming gardenia, chocolate orchid and lotus flower, while the earthy finish of textured woods, patchouli and skin musk rounds out the scent

Trussardi My Land Company: ITF Description: Main themes for the fragrance include a sense of travel and homecoming. The name is intended to evoke “the power and pride of being comfortable with yourself and appreciating the cosmopolitan spirit of your town,” specifically referencing the relationship between the Trussardi brand and the city of Milan

Gold Diva by Roberto Verino Company: Perfumes & Diseño Description: The floral, fruity fragrance was created by Véronique Nyberg and is encased in a delicate transparent mauve bottle. The outer packaging sports mauve and pink hues on the bright box evoking the fruits and flowers that make up the fragrance

Vintage Bloom by Jessica Simpson Company: Parlux Fragrances Description: The new fragrance from Jessica Simpson is a soft floral harmony of garden flowers. Created by acclaimed perfumer Stephanie Hakes at Ungerer and Company, Vintage Bloom captures the scent of a freshly cut bouquet of fragrant blossoms

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GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2012

They sell as good as they taste

Mars ITR is a leading player in the confectionery category. We combine insights, vision and global strength with powerful brands to create fantastic in store opportunities. Take M&M’s for instance, the great promotions, shop in shop concepts and fun merchandising makes the brand a very powerful sales driver. Contact your local account manager and see what M&M’s can do for you!

Let’s face it, if consumers can’t resist M, how can you?

The new Arabian fragrance for women