Special Issue TFWA World Exhibition/ FDFA October/November 2013

North American airports shine under INSIDE INSIDER News North America massive redevelopment FDFA updates; Peace Arch invests for success There is no doubt that this LAX, JFK unveiled is the year for North America’s DFS – ups the ante on luxury airports to move into the limelight International Shoppes remodels/ as more and more of the country’s expands at BOS, PHL outdated aviation infrastructure DFA ushers in digital era in MIA benefit from massive infusions of investment and rebuilding. Latin America Following the recent Monalisa, Mannah, Grupo Wisa, Shopping China, Bernabel, completion of billions of dollars London Supply, Las Delicias, of international terminal projects Dufry, Brazil, Rivera Overview in Miami and Atlanta, JFK International Airport Terminal Caribbean 4, operated by JFKIAT, ushered San Juan airport privatization; in a new era in its history in Havana upgrades May with the opening of its $1.4 billion redevelopment expansion that added 346,000-square-feet of space on Concourse D to accommodate Delta Airlines. The centerpiece of the new Tom Bradley International Terminal at Los Angeles In September, Los Angeles International Airport is the 150,000-square-foot Antonio Villaraigosa Pavilion that International Airport began will feature more than 60 premier dining, luxury retail and duty free shops. operations from its $1.9 billion new Tom Bradley International American airport operations, world-class gateway (exclusive On the Kentucky Bourbon Trail Record American whiskey sales Terminal, considered the crown details of which are covered inside interview begins on page 51). lead to booming bourbon tourism jewel of LAX’s $4.1-billion the pages of this issue. Even Havana’s tired old airport is Capital Improvements Program Half of this amount, $25 earmarked for an upgrade. (Phase 1). million, was spent at LAX’s One of the biggest stories Supplier Features Construction and new TBIT, and this amount is in of the year in travel retail in the R. Behn talks about DANZKA remodeling are also taking addition to the $79.8 million spent Americas involved Dufry’s long- Pernod Ricard on the Travel Trail place in U.S. airports in San by concession manager Westfield term contracts to operate the duty Patrón’s Dave Wilson stays the Francisco, Chicago, San Antonio, and its partners, including Dufry’s free concessions in all of Brazil’s course Philadelphia and Boston, among Hudson News, on specialty retail privatized airports, including G. Vigeral: Elizabeth Arden opens others. and dining. DFS unveiled its the lucrative new Terminal in Brazil Unlike in years past, stunning new retail offers in JFK 3 concession at Sao Paulo specialty retail and duty free T4 on Aug. 30 and in LAX on Guaruhos – the largest airport in have been critical components Sept. 18, with SFO to roll out next South America. of the new airport builds, with year. See details Inside Insider. Each of these projects shops enjoying prime positioning Airports throughout the region present opportunities for travel as airport authorities realize the are receiving upgrades. Aerostar retailers and suppliers throughout value of these non-aeronautical Airport Holdings LLC, the joint the region as never before. How revenue streams. venture now operating San Juan’s the industry is taking advantage Airport Retailers are making Luís Muñóz Marín International of these new venues is covered the most of the opportunity. Airport, says it will invest some throughout this issue of Travel “Made in America with Love,” DFS Group, the duty free $1.4 billion over the 40 years of its Markets Insider. We hope you Hot U.S. jewelry brand concessionaire at both LAX, contract as it works to transform find it of interest. Alex and Ani energizes TR JFK T4, and San Francisco Puerto Rico’s flagship airport International Airport, is investing from an obsolete relic of the Lois Pasternak, Plus Products-People-Places $50 million to upgrade its North mid-20th century into a modern Editor/Publisher The Insider View The perfect way to enjoy Patrón is responsibly. © 2013 Patrón Spirits International AG, Schaffhausen, Switzerland. 40% Alc./Vol. NOTES: COLORS: Black,PANTONE 376C Roman FONTS: HelveticaNeueLT Std45Light, Trajan ProBold, Trajan ProRegular, ImpactRegular, HelveticaNeueLT Std55 DATE: 10/1/13-10:04 AM IMAGES: bees_1_up[1].eps,PATRON_SILVER_STAMPS_700ml_18.75_25_SWOP.tif SCALE: LIVE: 16.375”Wx10.75”H PROD: Santi,Dave AveryGross, AD: JOB#: 130153A 100% CREATIVE: STAMPS SILVER OPER: SarahGroff CW: CLIENT: PatrónInternational Hampel,Larry LINE SCREEN: Z -FOLD PROOF: 2 AE: van Ackere, Gerland 133 FILE NAME: TRIM: 16.625”Wx11”H DESC: B:16.875 in T:16.625 in S:16.375 in P4/CBLEED 130153A_YPAT_16.625x11_StampSilver.indd BLEED: PUB: TRAVEL MARKET INSIDER 16.875”Wx11.25”H Mexico, theMexico, home of authentic tequila. The fruits Patrón tequila in ismade batches small in Jalisco, of that craftsmanship arecherished worldwide. Handcrafted inMexico. Coveted worldwide. Simply Perfect.

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COVERCOVER COMMENTARY COMMENTARY P&GBeauty Prestige’s News Alex Botero discusses SecondNorth half American downturns airports slow shine rate underof growth, theTairo potential brings theof Fine Caribbean Fragrances to Orlando in TR Page Page 54 64 but Massivetravel retail redevelopment carries on with innovations CotyLancôme expands Loves in Womenthe Americas: OPI, Page 58 PhilosophyEstee Lauder’s & Lady BCA Gaga 2013 enhanceCampaign: Page 68 Airports,Airports, Concessionaires, Aviation Numbers Numbers, News PagePage 12 12 “We’re Stronger Together.” Page 62 TFWATFWA 2012 2013 World World Exhibition Exhibition PagePage 18 16 Also:Elizabeth New Arden York Yankees,enters Brazil Anna Sui, Page 65 GiorgioPhotographers Armani, hit Lancôme, the Fragrance YSL, NorthNorth America America – U.S. – U.S. & &Canada Canada Palm Scene: Beach John Beauté, Russo, moreNigel Barker SenateNew Bills, era for MIA’s LAX cargo, Page 18 introduce signature scents Page 70 WorldDFS Tourism ups its luxuryAward offer in N. America PagePage 20 20 TobaccoAlso: Essence News Corp., Versace, Page 82 TourismNew “T& AirGalleria Traffic by DFS”numbers brand revealed PagePage 22 24 Burberry, and more AirmallDFA USAushers unveils in digital $10m era atupgrade MIA Page 26 Spirits Features PlanInternational for Pittsburgh Shoppes: concessions PHL and BOS PagePage 26 28 PatrónAlex and – a Anistellar Lifestyle year Jewelry: Page 89 Bacardi’s “Made inbright America future With Love” PagePage 72 90 FDFA:North 2012 America highlights - Canada Page 30 Brown-Forman promotions Page 94 YVRFDFA welcomes marks progressNorth America’s Page 30 BotranSpirits Rums Features debut in Cannes Page 96 1st WorldPeace Arch Duty DF Free invests store for success PagePage 32 32 BeamDANZKA ups the Vodka- TR focus Page 98 More Canadian news Page 34 Wm New Grant owners & Sons: plan big Partnerships PagePage 76100 Latin America & Caribbean VanTorben Gogh Andersen: triples global presence Page 102 Monalisa Group in Ciudad del Este Page 34 Latin America & Caribbean “Mr. DANZKA” comes to Behn Page 78 Grupo Wisa opens 1st La Riviera store ASUTIL 2012 Page 36 SpecialOn the KentuckyFeatures Bourbon Trail Page 80 in Uruguay, reveals new branding Page 36 Pernod Ricard follows BuquebusBernabel expands launches megastore on megaship PagePage 40 38 BT Fashions launches Pickzies Page 106 DFA-Uruguay completes store rollout Page 40 the “Travel Trail” Page 84 On the border in Paraguay: Patrón – New Global COO stays Neutral Mannah brings Group GAP & to Shopping the market China PagePage 42 40 TAG Heuer’s Christian Weissbach: Mannah: new stores & a facelift Page 42 New the vision,course ofnew quality reality & innovation PagePage 86108 London Supply’s Victor Hugo Bonnet Page 42 Edrington Americas opens in Miami Page 90 A visit with Pope Francisco Page 42 Brown-Forman brings Special TMI News Analysis: Buckley Jewellery: Revamps a American Whiskey to the world Page 94 EconomicSpecial factors TMI News slow Analysis: LA travel retail Page 43 classic and introduces Bouton Page 110 SiñerizRivera: Shopping: past, present An exclusive and future interview Page 44 Also: Botran, Rémy, Diageo, withBrazil founder airport Gandhi news Abdullah Page Page 48 46 Confectionery,Wm Grant, Beam, Gifts, MONARQ Accessories PushLas for Delicias San Juan expands Airport to privatizationairport retail PagePage 52 46 Electronics Page 114 CubanDufry tourism dominates up despite in Brazil challenges PagePage 55 48 Supply Side News PeopleConfectionery, News Gifts, Accessories Page 130 SupplySpecial Side TMI Features Interview Electronics Page 96 GoingAerostar Pink forCEO a Cure:discusses the overhaul of Advertising Index Page 112 Estee San Lauder’s Juan’s LMMBCA campaign privatization turns 20 PagePage 60 51 Cuba to upgrade Havana airport Page 53 People News Page 114

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INSIDER

BY THE NUMBERS IATA revises global outlook downward; projects strong growth for 2014 The International Air Transport consolidation and joint ventures), increased Africa and Asia (particularly for cargo) is Association (IATA), at the end of ancillary sales and reduced new entry due also showing promise, although obscured September, revised its 2013 global industry to tight financial markets. Moreover, the somewhat by the cyclical downturn in outlook downwards to $11.7 billion on industry is expected to have a relatively many emerging economies. Passenger revenues of $708 billion. good year even with global economic demand growth of 6.0% is expected to Airline performance continued to growth at 2.0%. Previously 2.0% gross outstrip capacity expansion of 5.3%. improve in the second quarter; however at domestic product (GDP) growth was Europe: European airlines are a slower pace than was expected with the considered the point below which airlines expected to record profits of $1.7 billion, previous projection and will now be below posted losses. up from the previously expected $1.6 the $12.7 billion figure forecast in June. billion, and a considerable improvement This reflects the impact on demand of the Regional Divergence in 2013 on the $400 million profit they made in oil price spike associated with the Syrian North American airlines are 2012, but the EBIT margin of 1.3% is the crisis and disappointing growth in several expected to post the strongest performance weakest among the major regions. Slowly key emerging markets, says IATA. at $4.9 billion in profits (up from the improving performance is driven by long- Performance in 2013 is considerably previously forecast $4.4 billion) for an haul markets and economic stabilization better than the $7.4 billion net profit of Earnings Before Interest and Taxes (EBIT) in the Eurozone, although results vary 2012. The upward trend should continue margin of 4.3%. This is more than double by market. Overall, IATA expects a 4.0% into 2014 when airlines are expected to the $2.3 billion profit of 2012. Along with expansion of passenger demand with only a return a net profit of $16.4 billion. This an improved overall economic outlook, 2.8% increase in capacity. would make 2014 the second strongest year consolidation and international joint Asia-Pacific: The outlook for this century after the record breaking $19.2 ventures on major markets are driving Asia-Pacific airlines is downgraded by billion profit in 2010. efficiency gains. $1.5 billion to $3.1 billion in profits Consumers are benefitting both from largely driven by slower growth among Passenger growth strong expanded networks with more travel the region’s emerging economies. IATA In fact, passenger growth remains options and from significant investments expects robust passenger demand growth of robust at 5.0% for 2013, says IATA, to improve service levels, says IATA. 6.6% to be outstripped by a 6.9% increase although slightly below the 5.3% Passenger demand is expected to grow by in capacity. previously projected and below the 5.3% a modest 2.0% which is the slowest growth Middle East: Middle East carriers growth recorded in 2012. Passenger of any region. But this will outstrip the are expected to post profits of $1.6 numbers are expected to grow to 3.12 1.6% expansion in capacity. billion, marginally ahead of the $1.5 billion—the first time that they have topped Latin America: The outlook for billion previously forecast. The region’s the 3 billion mark. Yields are expected to Latin American carriers is unchanged at efficient hubs continue to support strong be flat for the year (below the 0.3% growth $600 million profits. Economic weakness performance on long-haul markets. And the previously projected). It should however be in Brazil is being offset by performance impact of the Syrian crisis has been limited. noted that load factors are at record highs improvements as a result of restructuring Passenger demand is expected to grow by (80.2%) and yields in the U.S. are above and capacity discipline. The long-haul 10.5%, the strongest among all regions. But pre-recession levels. market between North and South America this will be slightly outstripped by capacity “Overall, the story is largely positive. continues to grow. New connectivity to growth of 11.3%. Profitability continues on an improving trajectory. But we have run into a few Editor/Publisher: Lois R. Pasternak speed bumps. Cargo growth has not In Memoriam: Paul A. Pasternak materialized. Emerging markets have Executive Editor: Michael Pasternak slowed. And the oil price spike has had Editorial Contributors: Larry Luxner, a dampening effect. We do see a more John Gallagher Sales: Robert A. Williams optimistic end to the year. And 2014 is Production Coordinator & Designer: Chris Hetzer shaping up to see profit more than double Design and Production: It’s About Time, Inc. compared to 2012,” said Tony Tyler, Webmaster: Michael Pasternak IATA’s Director General and CEO. Printing by The Printer’s Printer. Ft. Lauderdale, Florida This publication is a special supplement of Travel Markets Insider, published Airline performance remains strong. by Pasternak Communications, Inc., 255 NE 3rd Ave No. 312, Delray Beach, This year, airlines are expected to post the FL. 33444 USA. www.travelmarketsinsider.net same operating margin (3.2%) as in 2006, E-mail: [email protected], [email protected] Tel (561) 908-2119 Fax (561) 908-2257 even with a 54% hike in jet fuel prices. Travel Markets Insider is a weekly newsletter distributed 50 times a year The industry has been able to absorb via e-mail, on a subscription basis only. this enormous cost increase as a result of The annual subscription is US$200. Printed in the USA. All rights reserved. © 2013 by Pasternak Communications, Inc. changes in the industry structure (through

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BY THE NUMBERS

Africa: IATA now forecasts a loss improvement in cargo growth to 3.7% in to see a near doubling of profits to $3.1 of $100 million, down from a previously 2014. billion, although the EBIT margin will still projected profit of $100 million. All regions will see improved be a low 1.9%. The region’s airlines face significant profitability, but 2014 is expected to be Asia-Pacific is expected to see a impediments of high costs, onerous taxes, particularly strong for North American modest improvement in profitability to $3.6 government interference, inefficient fleets, carriers ($6.3 billion net profit, the billion, largely on the back of improved and poor infrastructure. Demand growth industry’s strongest) as the economy cargo performance, the growing Chinese is expected to be 7.8% ahead of a capacity improves. Capacity discipline is expected domestic market and the benefits of expansion of just 5.5%. to see yields improve, bucking the global restructuring in Japan. trend. Middle East carriers are expected The Outlook for 2014 Carriers in Latin America are expected to post a $2.1 billion profit (their highest IATA predicts passenger growth to see profits rise to $1.1 billion. ever), and African airlines should again of a robust 5.8% and a significant European carriers are also expected return a combined profit of $100 million.

ACI: International pax traffic up 5% YTD as of August IATA August Report: Passenger traffic increased almost says ACI. Strong passenger demand +5% for August compared to August 2012, The strong growth in the Middle East growth; record load up 4.8% year-over-year, reports ACI in its and Asia-Pacific is supported by key airport latest Pax Flash. International passenger hubs in Dubai (DXB) and Jakarta (CGK), factors traffic was a leading driver of this growth which continue to experience robust gains for August, up 6.2% over the same month in passenger traffic on a monthly basis. IATA has reported strong global last year, and up 5% year to date for the International passenger traffic at DXB for passenger traffic results for August, total January-August period. August was +23%, with Jakarta’s traffic revenue passenger kilometers (RPKs) up North American airports registered growth at +16%, largely attributed to its 6.8% compared to August 2012, and load a gain of 5.1% in international traffic, burgeoning domestic market of over 42 factors that matched the previous record but domestic traffic was up only 0.2% in million passengers per annum. high of 83.4%. August. Airports in the Latin America- ACI World’s Economics Director International passenger demand was Caribbean region reported international Rafael Echevarne commented, “The above up 7.5% in August vs the year-ago period, traffic up by 6.4%, with domestic traffic average growth in passenger traffic for capacity rose 5.6% vs August 2012 and ahead by 5.7%. the month of August is indicative of the load factor climbed 1.5 percentage points Annualized growth of passenger improvement in air transport demand, to 84.0%. All regions recorded year-over- traffic for the period from September 2012 which is fueled primarily by international year increases in demand. to August 2013 was registered at +2.9%. travel. As global economic conditions North American airlines saw demand In particular, the Middle East and Asia- improve, particularly with respect to the rise 5.1% over a year ago, the slowest Pacific both experienced double digit gains acceleration of GDP growth in Europe growth for any region but still close to of +18.6% and +10.2% respectively in and North America, we are likely to double the year-to-date increase of 2.7%. international passenger traffic. International see correspondingly stronger growth in Its 4.0% rise in capacity pushed the load traffic in Europe in August was up by 4.9%, passenger traffic towards the end of 2013.” factor one percentage point to 88.1%, the highest of any region. Latin American airlines posted a demand rise of 9.8% yoy in August. Although Brazil continues to face deteriorating business confidence, Colombia, Peru and Chile are expanding and the region is also enjoying export activity well above the global trend. Asia-Pacific carriers recorded an increase of 8.6% compared to August 2012. European carriers’ international traffic climbed 5.4% in August yoy; Middle East carriers had the strongest year-over-year traffic growth at 15.1%. The strong demand trend is expected to continue. African airlines’ traffic rose 5.4%, and experienced the only decrease in the load factor.

TFWA/FDFA Issue October/November 2013 14 INSIDER

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Lord Coe and Willie Walsh keynote speakers at 2013 TFWA World Exhibition & Conference

Two high-profile world figures will be keynote speakers during the opening plenary of the TFWA World Exhibition & Conference in Cannes on Monday, Oct. 21, 2013. The theme of the conference this year is A Brand New Challenge. Lord Sebastian Coe, Olympic Gold Medalist and Chairman of the London Organizing Committee for the Olympic Games, will address the various challenges involved in bringing to fruition an extremely complex business plan, Willie Walsh, Lord Sebastien Coe resulting in an unforgettable experience for thousands of visitors and spectators around & Conference the perspectives of two published this spring. The author also the world. individuals who are, without question, at of The Post-Crisis Consumer (2009), The legendary middle-distance the very top of their game. They have each Gerzema is a regular contributor to TED runner, ‘Seb’ Coe, won four Olympic faced challenges which would daunt lesser Events, a global program of conferences medals including Gold in the 1500 meters men and have striven to achieve their goals founded in 1984 as a think-tank for in 1980 and in 1984. After retiring from with the eyes of the world upon them. futurists and thought-leaders under the athletics, he was a Conservative Member We are honored that they have agreed to slogan ‘ideas worth spreading’. of the British Parliament from 1992 - speak at our annual conference and to Erik Juul-Mortensen, President 1997 and became a Life Peer in 2000. share their unique and, I am sure, inspiring TFWA, will present the annual ‘State of the Coe headed the successful London bid to experiences. I believe I speak for all when Industry’ address at the Conference, which host the 2012 Summer Olympics, widely I say we are looking forward to these will be moderated by Stephen Sackur, of considered one of the most successful presentations with great excitement.” BBC HARDtalk. Summer Games of all time. Upon their The third speaker will be the eminent All delegates registered to attend conclusion, he was appointed chairman free-thinker John Gerzema, consultant TFWA World Exhibition in the Palais des of the British Olympic Association in and author of The Athena Doctrine: How Festivals, Cannes (20-25 October 2013) November 2012. Women (And The Men Who Think Like are entitled to participate in the opening The next speaker is one of the most Them) Will Rule The Future, which was Conference. influential figures in civil aviation: Willie Walsh, CEO of International Airlines Group, the holding company of British Airways and Iberia. The former CEO of Aer Lingus, Willie Walsh started his career as a commercial pilot and went on to preside over the merger of two of the largest international airlines in the world. Thom Rankin, TFWA Vice President Conferences & Research: “TFWA is delighted to be able to offer delegates at the 2013 TFWA World Exhibition

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TFWA/FDFA Issue October/November 2013 16 INSIDER THE DUTY FREE & TRAVEL RETAIL PREMIUM EVENT

TFWA WORLD EXHIBITION A brand new world

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New era for LAX as flight ops begin in South Concourse of new TBIT A 150,000-square-foot Great Hall and $80m dining and retail program center LAX’s game-changing new international terminal

The DFS stores are a major component of the luxury retail offer in TBIT’s new 150,000sqf Antonio Villaraigosa Pavilion at LAX.

The opening of the New Tom Bradley Comprised of over 12,000sqf of provides a critical boost to our economy.” International Terminal, which began flight light-emitting-diode (LED) tiles, hundreds Los Angeles World Airports operations on Sept. 18, marks completion of liquid-crystal-display (LCD) screens, a Executive Director Gina Marie Lindsey of Phase 1 of the overall $1.9-billion dedicated control and content management said, “Passenger-friendly terminals and New TBIT Project, which is considered network system, and some 60 ultra-high- conveniences, airplane-friendly taxiways the crown jewel of the $4.1-billion LAX resolution multimedia productions totaling and gates are all ‘must haves’ as airports Capital Improvements Program-Phase 1. more than four hours of original content, around the world compete for the economic The largest public works project in the IEMS sets a new global standard for vitality that world-class airports create. the history of the City of Los Angeles, the airport media systems. Our goal is to modernize LAX to ensure centerpiece of the New TBIT Project is the Funded entirely from LAX’s operating it retains its vital role as the cornerstone 150,000sqf Antonio Villaraigosa Pavilion revenues, capital improvement program of Southern California’s air transportation that will feature more than 60 premier funds, fees from airlines, passenger system.” dining and luxury retail shops – including facility charges, and airport revenue bond 22 local L.A. brands – plus a DFS duty proceeds --no monies from the City’s World-class dining, retail and duty free free program enhanced by a $25 million general fund are being used -- the new Terminal concessions manager upgrade and other world-class amenities. terminal is expected to help LAX retain its Westfield and its partners are investing The new dining and retail collection competitiveness as the premier U.S. West $79.8-million to deliver a world-class will phase-in as concessions transition from Coast international gateway, especially to traveler experience at the New TBIT. With pre-security to post-security. The existing the fast-growing Asia-Pacific region. 31 exciting new options – three times concessions will remain open as the new “The Tom Bradley International more than before – ranging from luxury dining and shops are opened progressively Terminal at LAX is the first and last dining to healthy-and-fresh sit-down to in the coming days and weeks. impression of Los Angeles for nine million grab-and-go, Westfield’s dining collections Another significant feature of the travelers every year,” said Los Angeles will showcase freshness, demonstration New TBIT is one of the most advanced Mayor Eric Garcetti during the opening cooking, and sophisticated architecture, and multimedia Integrated Environmental ceremonies. “This new terminal enhances celebrates local restaurants with culinary Media Systems (IEMS) at a North passenger safety and security, while giving offererings from renowned Top Chefs American airport. Designed to create an travelers the first-class airport experience Michael Voltaggio, duo Susan Feniger and unprecedented passenger experience and a they expect from a world-class city like Mary Sue Milliken, Suzanne Goin, and non-aeronautical revenue source for LAX, Los Angeles. On a local level, this project others whose cuisine reflect Los Angeles’ the IEMS includes seven very large media creates 4,000 construction-related and culture, diversity and trends. features built within the new terminal’s 2,000 new permanent jobs for Angelenos, Blending many of the world’s best interior architecture. helps grow tourism in our city, and known luxury designer brands with a

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Tumi, Victoria’s Secret, Hugo Boss, iStore terminal that can accommodate larger, new- Boutique and Bliss. generation (Group 6) aircraft, such as the “The opening of the New Tom Airbus 380 super jumbo jet and the Boeing Bradley International Terminal marks an 747-8 Intercontinental, as well as the important milestone in the elevation of 150,000sqf Antonio Villaraigosa Pavilion LAX to its rightful status as a world-class (Great Hall). The project adds nearly 1.2 airport,” said Polly Nelson, managing million square feet to double the size of the director of DFS North America. “DFS existing terminal. would like to congratulate the City of Phase 2 of the project, which begins Los Angeles and particularly Gina Marie later this year, includes: demolition of Lindsey and her team at Los Angeles World the existing terminal’s east side gates; Airports on the opening of this incredible new boarding bridges and aircraft aprons new facility. Through its presence in the on the east side of the new terminal; new complex, DFS is very pleased to play upgraded federal customs and immigration its part in this transition and is committed inspection areas; relocation of and upgrade to providing a duty free customer shopping to the federal passenger security screening experience that will place LAX among the area; public art installations; and secured world’s favorite airports for international corridors between Terminal 3, TBIT and travelers.” Terminal 4 so connecting passengers can The New TBIT’s IEMS is comprised of “We are pleased to welcome the first conveniently go from one terminal to the seven architecturally scaled media features travelers into the Villaraigosa Pavilion next. that synchronizes a state-or-the-art content today to delight in this next-generation management system that creates an airport experience,” said Peter S. Lowy, environmental experience based on data and co-chief executive officer of the Westfield passenger interactions. Group. “With flight operations now underway, we look forward to introducing distinctly Los Angeles flavor, Westfield’s passengers to the best local and global retail collection, joined by a $25-million brands as we begin the transition to investment in the duty free program by transform LAX into a global gateway DFS Group, will provide travelers with beyond travelers’ wildest dreams, and we an array of shopping choices in news- look forward to the future of LAX.” and-gifts, specialty retail, and duty free shopping, including shops from local Project Scope institutions such as Fred Segal and Kitson. Phase 1 of the New TBIT Project, Philippe Schaus, Chairman and CEO of Among the other retail boutiques in which broke ground in February 2010, DFS, with former Los Angeles Mayor the new TBIT are Bulgari, Michael Kors, includes north and south concourses with Antonio Villaraigosa at the TBIT media Emporio Armani, Coach, Porsche Design, nine boarding gates on the west side of the unveiling in May.

DFS seriously ups its luxury offer in North America DFS Group has been in the vanguard DFS opened its new retail program devoted to beauty by Gate B23. of the multi-million dollar makeovers at JFK on August 30, followed by the “We have the very first Jo Malone sweeping through North American airports’ official opening of the new Tom Bradley boutique in a North American airport at travel retail venues this past year. The International Terminal at LAX on Sept. 18. JFK, and this first boutique has done very premier luxury travel retailer is investing Improvements at SFO have been ongoing well for us. These past few weeks we had $50 million to upgrade its North American with the bulk of the remodeling to take the opening of the balance of the shops in airport stores in Los Angeles International place in the coming months. the Main Hall, along with a free-standing Airport, San Francisco International “We’re so excited about the new Kiehl’s store, which has been received very Airport and New York’s JFK International retail programs,” DFS Managing Director well.” Airport Terminal 4. North America Polly Nelson told TMI The new DFS Beauty store, a massive “The investment in North America is a month after the JFK openings. DFS 6,600 square feet located in the Center of a great shift in terms of the movement that operates a huge dedicated Beauty Store, a the new Main Hall in the space previously DFS has made in North America over the Spirits & Wine Shop, a Fashion Watch & occupied by a flagship Hudson News, past 12 months. In fact, 95% of our retail Sunglasses shop and a Kiehl’s in the main includes a “fantastic” Prestige Fragrance real estate has or will be renovated in 2013. hall. Terminal 4 also features a Jo Malone area, with a number of brands that have It is quite a big deal,” commented Evan Boutique located further down the new never gone into any airport store before, Lewis, Vice President, Public Relations, Delta Concourse, adjacent to a M.A.C says Nelson. Events and Corporate Communications. Boutique and second DFS duty free store “One of these is Bond No. 9, which

TFWA/FDFA Issue October/November 2013 20 21 October/November 2013 TFWA/FDFA Issue INSIDER

is a New York City brand with fragrances DFS doubles space; debuts new brands and curated fashion assortments from named after different NYC neighborhoods. in LAX Salvatore Ferragamo, Bottega Veneta and The presence of Bond No. 9 fragrances in The space dedicated to duty free Chloé. T4 has been a really exciting ability for in the new Tom Bradley International Keeping the spirit of Los Angeles us to mobilize our airport business. Other Terminal DFS more than doubled, to front and center, DFS has integrated exclusive brands in the prestige fragrance 25,000 square feet, spread over four DFS exclusive and localized concepts within its area are Maison Fondée, Armani Privé, stores. retail floor. An LA-themed spirits tasting Tom Ford, Hugo Boss and L’Occitane, Here, DFS is retailing a broad bar is located adjacent to the Spirits among others. portfolio of luxury brands and products &Wine floor, where travelers are able to “So we have really been able to open across all key luxury categories, including sample featured cocktails. up the offering. We have a very different several firsts to U.S. airport retail: Hublot, For the first time in North America, passenger in JFK than in our West Coast Bottega Veneta and Chloé. DFS Group is also incorporating its airports. They are European, Caribbean and Multiple beauty brands are also Platinum Services (PSC) concierge Middle Eastern, and they very much are big making their North American airport services directly into its airport operations. fragrance buyers. So this area has been a debut via DFS in what is now the largest big success for us.” airport beauty floor in the country. These SFO upgrades still underway In JFK T4 DFS also opened a Spirits newcomers include SK-II, Jurlique, Over the past 12 months, DFS & Wine shop that also sells tobacco and Benefit and Clarisonic, along with relocated much of its fashion business at food: “We really have been able to amplify the LAX debut of Los Angeles’ own San Francisco International Airport into the luxury presentation in this shop. It Smashbox brand. free-standing shops in the concourse, features dark wood tones and a nice club During the media preview held last atmosphere that has resonated very well June in Los Angeles, DFS Managing with the passengers and is enhancing the Director North America Polly Nelson said customer experience here,” she says. it was essential to bring the local element A Fashion Watch and Sunglasses store into the airport, such as San Antonio carries watches from Coach, Michael Kors Wines, which has been in Los Angeles for and Armani, and sunglasses from Gucci to over a hundred years. Tory Burch. “We have a wonderful array In the luxury offer DFS is featuring of brands. It has met with a lot of positive Chopard, Zenith, and Vertu watches and response from customers and is reflected in jewelry, along with full-line fashion the sales as well.” boutiques by Hermès, Gucci, Burberry,

This page: DFS stores at JFK T4 in New York.

TFWA/FDFA Issue October/November 2013 22 Visit the Jack Daniel’s family on the Brown-Forman stand, M70, Green Village.

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23 October/November 2013 TFWA/FDFA Issue INSIDER

reports Nelson. “This year we already have two brand new Gucci stores, two brand new Burberry stores, two brand new Coach stores as well as a new Hermès location. But we are still in the midst of remodeling. We will continue to carry beauty, spirits, tobacco and food. These are still a work in progress that we hope to wrap up in the second quarter next rebranding of its downtown Galleria stores, year.” which took place last month in Hawaii. DFS’ retail logo for its airport concessions New retail logos reflect sense of place – unique to each of the airports in which it DFS’ unveiling of its stunning new operates – integrates a specially designed retail offer at LAX’s TBIT in June also logo and localized retail concepts that will coincided with the reveal of a new retail be used across all 18 retail spaces operated DFS stores in the new TBIT at LAX. logo for LAX in advance of the major by DFS.

DFS Group unveils new “T Galleria by DFS” brand identity

DFS Group’s new traveler-focused ‘T serious investment into store upgrades, the Galleria for DFS’ brand identity, revealed quality of our stores and services are now at a gala event in Waikiki, Hawaii in beautifully aligned with the luxury brands September, is now rolling out on a phased we merchandise. basis to all existing DFS Galleria stores “We feel that these new Gallerias, globally over the next 18 months. With designed specifically for today’s downtown outlets in seven countries and demanding travelers, are now deserving of eleven cities, the global reach of the T a new brand identity that reflects our vision Galleria store network is wider than that In a statement, LVMH Moët Hennessy of the future. After unveiling our first of almost any other multi-brand, luxury Louis Vuitton Group Managing Director rebranded T Galleria here in Waikiki, the retailer, the company noted. Antonio Belloni, emphasized DFS’ next stores to be rebranded this year will At the unveiling in Waikiki DFS expertise with emerging market consumers. be our three stores in Hong Kong and two Group Chairman and Chief Executive “By being at the forefront of trends in in Macau. Officer Philippe Schaus said: “DFS is luxury travel retail, DFS is instrumental in “By year’s end, almost half of our proud to launch its revamped brand identity introducing emerging market customers worldwide Gallerias will be using this new in Waikiki, where we opened a downtown to the world of luxury and to high quality, bold brand identity,” he added. store over 40 years ago. The name T expertly-crafted branded products,” he said. DFS has invested several hundred Galleria pays homage to our core business “DFS has evolved over the last 15 million dollars over the past few years – serving travelers. years to become a highly skilled luxury upgrading downtown Galleria stores and “Our new T Galleria logo is simple, goods retailer, but with a uniquely implementing new design elements and accessible and pronounceable to all. It global approach. DFS curates its product features. is inspired by the notion of flight and selection for tomorrow’s customers from The new look and feel incorporates a movement, resembling the wings of a China, Asia and other emerging markets. wide array of experiences, including beauty modern aircraft. These stores not only offer These consumers are moving rapidly concierge services, luxurious members’ the ultimate assortment of luxury products from their first overseas trips and first lounges, and Masters Series product but also deliver seamless shopping luxury purchases to become extremely exhibitions, which feature the most rare, environments that travelers associate with sophisticated travelers and discerning exclusive and limited editions from the their destinations. Travel retail is the major consumers.” world’s most coveted brands. growth engine driving the luxury retail Commenting on the rebranding of Schaus concluded: “Our luxury sector today and we want our customers the Galleria stores Schaus said: “After 40 traveling customers are at the heart of our to visit DFS airport stores and DFS T years operating our downtown locations, business and are now reflected in the brand Gallerias wherever they are in the world.” the last several of which have involved of our downtown stores: ‘T’ is for traveler.”

TFWA/FDFA Issue October/November 2013 24 DOC-WDF-2000-13 20_40 ADs-Camel100-Base Family-a1.pdf 1 12.03.13 18:19

EVERY CAMEL TELLS A STORY

25 October/November 2013 TFWA/FDFA Issue INSIDER

DFA ushers in digital era with renovated MIA stores

Duty Free Americas has remodeled The video screens also feature a jewelry and sunglasses -- from the back of its top-producing duty free store in Miami central panel that will offer tie-ins with all the store to the front and relocated liquor International Airport’s North Terminal, promotions and HPPs. and tobacco to the back of the store. Sales installing the latest in digital visual “This is the first store where the of both categories spiked up immediately,” merchandising and a redesigned, more digital displays are in place, but we are explained Floyd. open layout. planning to roll this concept out to many DFA also moved the cash registers “The new digital signage and store of our main stores,” commented DFA CEO from the center of the store to the back design we opened in the D15 location had Jerome Falic. wall, which forces shoppers to pass through an immediate impact on sales through-out “It is a much cleaner look. It is the spirits and confectionery areas on their the store,” says Terrance (Terry) Floyd, definitely very attractive. We can run all the way to pay. The space formerly occupied vice president of DFA’s Airport Division. software from the office. And the response by cash tills now houses additional POS The most striking change in the from the vendors has been extremely gondolas. new concept is a vibrant row of 12 High positive,” said Falic. Tobacco products are now positioned Definition TV screens above the fragrance The fragrance wall itself has been behind the cash tills to accommodate the wall running along the front and left side modified, converting from the A-Z non-self-serve legal regulations, but are of the store. The video screens replace alphabetical format in place since the stores clearly identified with a row of attractive traditional transparencies and feature first opened, to a semi-personalized format transparencies. Liquor displays are also looping digital ads and commercials for featuring brand logos atop each bay. fully personalized, says Floyd. fragrances and cosmetic products. Colorful, The store also now offers an expanded DFA is also testing a digital POS compelling and dynamic, the visuals rolling number of personalized beauty gondolas, pricing shelf display system, using software across the screens pull shoppers into the and a “flipped store layout.” that is controlled by corporate. Once rolled store and direct attention to the wide array “We moved our luxury section – out to all the stores, the system can save of top name beauty brands on offer. including watches, leather goods, pens, significant staff time. Falic says that DFA will next invest in the digital merchandising in MIA’s South In August, DFA opened a Terminal, at New York’s JFK airport in new flagship Dior Perfume Terminal 7, and in Atlanta, among other and Cosmetics Boutique in locations. the retail area it operates at “The digital merchandising entailed a the Venetian Macau Resort significant investment,” said Falic. “But we Hotel on the Cotai Strip are really excited about the change. in Macau, China. The 900 sqf shop is the largest Dior “We are continuously looking for boutique within travel retail ways to better merchandise our shops and I worldwide and encompasses think we have now found a great formula. the latest generation of Dior We have better flow and a friendlier counter furniture with a environment in which to shop. And we saw strong focus on dedicated an immediate increase in sales as soon as client service areas. we made the changes.”

TFWA/FDFA Issue October/November 2013 26 27 October/November 2013 TFWA/FDFA Issue INSIDER International Shoppes ups the luxury quotient in Philadelphia and Boston International Shoppes has invested shoes, jewelry and accessories - has opened Michael Caro, vice president of AIRMALL significantly in its duty free stores at in new space, along with new Kiehl’s and Boston. AIRMALL USA manages the retail Philadelphia International Airport (PHL) Montblanc in-store boutiques in a new, program at BOS Terminal E. and Boston Logan International Airport’s 1,620sqf duty free location. “We are also pleased to see the duty (BOS) Terminal E over the past several “These openings are really the last free program at the AIRMALL at BOS months, remodeling existing space and pieces of our Boston project so far. This continue to grow and succeed with the opening new locations. store includes a duty free space, a Michael addition of a second International Shoppes The New York-based family-run Kors boutique, and Kiehl’s and Montblanc unit on Terminal E. These new units further operator, which operates duty free shop-in-shops. Next we will open a Hugo exemplify our commitment to providing stores in PHL, BOS and New York’s Boss stand-alone boutique, which will be travelers with a robust duty free program JFK International Airports, completely the last step this year,” says Greenbaum. and a variety of shopping options at the renovated its four stores in PHL this year. “In the end, we will have Hugo Boss airport.” “Our contract started in 2003 and in and Michael Kors as totally independent International Shoppes became the duty 2011 we signed an extension that required stand-alone boutiques. The Kiehl’s and free operator for the AIRMALL at BOS on the redevelopment of all 4 duty free spaces. Montblanc boutiques are located within the January 1, 2012. We started remodeling the first store in duty free store, but with the way that they Greenbaum tells TMI that the BOS January, followed by a complete remodel of are situated in the store, they appear to be experience has already exceeded IS’ our 3,3000sqf flagship store shortly after,” their own stand-alone boutiques also.” expectations. said IS Vice President Matt Greenbaum. From the corridor, the new “These new boutiques are showing IS also added new categories and configuration looks like a row of five that there is an appetite for some higher personalization throughout the shop, says individual stores, says Greenbaum: end fashion that was not represented at Greenbaum. “Kiehl’s on the left, the duty free entrance, that airport before. It is our first time The flagship PHL store features a then Montblanc, then Michael Kors and opening up a Kiehl’s section and it is our new liquor back wall, a tobacco section Hugo Boss,” he says. first Michael Kors boutique. We hope designed by JTI, and personalized skincare/ “Kiehl’s, Montblanc and Michael that with the success we have with them cosmetics and fragrance departments. The Kors are exciting additions to the retail in Boston we can bring them to the other confection section is also personalized. lineup at the AIRMALL at BOS, and cities we operate in. For us these are new IS also expanded the retail space in we’re pleased to welcome these luxury relationships and new milestones for the the store, increasing the confection section brands to the concessions program,” said company.” from 200sqf to 300sqf, and moving it to the front of the store. “We are enlarging the confection category in all the stores as we are rebuilding them. We also expanded the skin International Shoppes care section to 350sqf from 175sqf,” said has opened three Greenbaum. luxury boutiques at “The airport commission is the AIRMALL at BOS extremely happy with the renovations, Terminal E adjacent and the feedback we are getting from our to its 1,620sqf new duty customers is that they are really excited free store. about the upgrade,” he says. “We are renovating the fourth and final store now, which will be completed before the year is over.” PHL is a hub for US Airways, servicing all the major cities in Europe. The primary international traffic out of Philadelphia is British Air, Air France, and Luftansa. International Shoppes At Boston Logan International expanded and Airport’s Terminal E, International Shoppes remodeled its flagship duty free store at PHL. recently added three new brand boutiques to its retail line-up at the AIRMALL. An 857sqf stand-alone Michael Kors shop – selling classic fashion, handbags,

TFWA/FDFA Issue October/November 2013 28 VODKA WITH ATTITUDE

EST. IN COPENHAGEN

www.danzka.com 29 October/November 2013 TFWA/FDFA Issue INSIDER

FDFA marks progress in legislation, professional development & marketing efforts

The biggest news from Canada’s we are as an industry and our Canadian Frontier Duty Free Association is that the contribution to not only border economies Association is finally nearing the end of its but the overall national retail economy,” years-long negotiations with the Canada says Karson. Border Services Agency over the Strategic U.S. and Canada border cooperation is Review of the Canadian Land Border an ongoing effort, the most recent project business, which its members will hear being the Perimeter Border initiative. more about during the annual Operators Under the current situation in the U.S. Meeting at the 2013 FDFA Convention in government (at press time the U.S. November. government had been “shut down” by the “While the FDFA is very pleased with House of Representatives), Karson suspects the overall results of this ongoing dialogue this initiative is not a key priority at this Pernod Ricard’s Sherri Isherwood, FDFA’s and discussions with CBSA on the duty time: “But we are hopeful that further Laurie Karson, and Anka Raskin from the free shop program and regulations, there progress will transpire in 2014,” she noted. Canadian Breast Cancer Foundation with are a couple of key items that are still being On the operational side, the FDFA a check for $25,000 raised during the Golf addressed,” FDFA Executive Director celebrated a number of successful new Tournament dinner last May. Laurie Karson tells TMI. initiatives over the past year. “CBSA’s Director General, Anne The Association redesigned its lost customer. Thus far, the video has had Kline, will be attending and presenting to Operator Semi-Annual meeting, which over 160,000 unique hits since its launch. the operator membership at our upcoming takes place April or May of every fiscal And operators now have the ability to November 17 Operator’s Meeting to year, taking it from a one day operator’s show the video in their stores via kiosks or discuss the strategic review. We also know meeting to review association objectives, plasma tv’s. We also feature the videos on that CBSA has a mandate to create more initiatives, etc. and this year converting our national website www.dutyfreecanada. consistency with their store audits, which it into a two-day FDFA Business & com and via the newly created duty free review inventory and records. They have Professional Development Summit. YouTube channel – fdfacanada.” completed their verification process this “This summit now focuses on key Karson is also seeing tremendous summer and will begin rolling out their retail business opportunities, workshops growth in the area of operator airport and land border store audits this Fall and educational sessions that are tailored to collaboration, she says. “In my opinion, and into 2014,” she adds. the land border duty free industry – mainly this collaboration is truly the key to the The FDFA is also currently in the facilitated by key subject matter experts in future success of our industry. As one process of developing a co-lobbying dinner the retail world,” explains Karson. During industry voice that works together to solve in Ottawa with key federal bureaucrats this year’s event, the FDFA, in conjunction challenges and capitalize on opportunities, alongside TIAC (Tourism Industry with Pernod Ricard, held its 1st National it is critical that the operator members Association of Canada), says Karson. Duty Free Golf Tournament in honor of the identify our commonalties as retailers “We are hoping to hold a small dinner late Lori Watson in Whistler, BC. instead of not working together due to in early November, the goal of which is to “I am happy to report that we had 70 differences, whether that be size of store or support TIAC’s initiative in their request golf attendees, raised almost $30,000 and regional differences.” to the Canadian federal government to created a new supplier/operator networking Even as she notes its success over allow for approx. an additional $35 million event. We are looking forward to the 2nd the past year, Karson points out that for national marketing spend to the U.S. Annual golf event being held in Kelowna, the FDFA’s biggest challenge remains As most people are aware, the Canadian BC on May 8, 2014,” says Karson. the identification of business priorities. Tourism Commission made a decision The Association’s marketing efforts “Based on last year’s summit, there are several years back to cease national also made important inroads into raising many projects that the FDFA would like to funding to the U.S. in order to focus only the FDFA’s visibility and explaining details examine and implement – including a path on long-haul marketing i.e. to Brazil, about Canada’s duty free program. to purchase or consumer survey, a public China, India, etc. “The allowance video series and relations initiative surrounding a 2014 “While we understand this strategy, public relations campaign launched at the duty free consumer week and future duty we have always believed, as an industry, end of June 2013 has been a tremendous free videos. While all of these initiatives that monies should always be allocated success!” confirms Karson. are meaningful, the board and the operator to market nationally to the U.S. over “Our goal was to create another form members are examining the priorities and above the provincial marketing that of allowance communication to the public required to move our industry forward first, continues annually. By co-hosting such using video. The allowances are very and what can be postponed to later in the a lobbying dinner we also are given an confusing to the general public and if a year or in future years. opportunity to showcase and express who consumer is confused, this translates into a “The other key area of focus is

TFWA/FDFA Issue October/November 2013 30 31 October/November 2013 TFWA/FDFA Issue INSIDER

our ongoing national marketing efforts inform and educate Canadians on key land located, etc.” surrounding consumer awareness to the border duty free messages such as ‘Yes, These and other topics will be general public – specifically our main you can shop at our stores before crossing addressed during the 2013 FDFA customer demographic – Canadians,” says the border,’ the savings that consumers Convention and Exhibition taking place Karson. have when purchasing our wide variety of Nov. 17-20, in Niagara Falls, Ontario. For “It is critical that we continue to product offerings and where our stores are more information visit www.fdfa.ca

Peach Arch Duty Free invests for success and improved business conditions As the newest duty free land operator TMI that he works closely with the local Raju is petitioning the government on on the Canadian side of the border with and provincial governments to improve behalf of all the B.C. land border duty free the U.S., Peace Arch Duty Free Shop business conditions wherever possible. stores, which also include Semiahmoo First President Peter Raju is working hard to He is currently involved with a proposal Nations (Raju’s landlord), West Coast Duty develop his business, and investing heavily to exempt British Columbia’s land border Free Shop, Aldergrove Duty Free Shop, in renovations, new fixtures and exclusive duty free shops from the requirement to Abbotsford Duty Free Shop, Osoyoos / product assortments to maintain growth. purchase liquor through the B.C. Liquor Kingsgate Duty Free Shops and Tobacco He is also not shy about petitioning the Control Board to allow the stores to be Plains Duty Free Shop. government if he thinks that business more competitive against the duty free Laurie D. Karson, executive director conditions can be made better. stores across the border in the U.S. of the Frontier Duty Free Association, “We have only been in business for six He was also involved in convincing adds that the FDFA supports the B.C. years now, and I think we still have a lot of the provincial government to reduce the operators in their quest to ensure that their potential ahead of us to grow,” Raju said of mark-up on liquor in B.C. from 50% to the stores continue to be competitive in the his beautifully appointed and landscaped current 20%. marketplace. 2,415-square-meter store in Surrey, British Columbia, which opened its doors in 2006. As it stands, Peace Arch’s business is up 15% year to date (as of October) over last year, with particularly strong showing in fragrance, cosmetics and luxury goods. Peace Arch’s success has helped drive land border sales in the Pacific Region in the January –August period up approximately 2.8% over the same period last year, more than five times that of any of the other regions tracked by the Canada Border Services Agency’s monthly report. Peace Arch is currently undergoing a major renovation in the cosmetics section, most recently installing new counters for Lancôme and Shiseido. Raju also confirms that he is seeing strong traffic from Asian visitors, including Chinese travelers, big consumers of cosmetics and luxury goods. “We have brought in an all-Asian staff to accommodate this customer,” he says. He credits the completion of construction of the Peace Arch crossing, which tripled the number of lanes across the border, along with more customs officers, to make the process quicker, for the increased traffic. He also works to ensure that the British Columbian stores remain competitive. Not only is Raju continually upgrading his retail property, but he tells

TFWA/FDFA Issue October/November 2013 32 International Association 2014 of Airport Duty Free Stores DutyFree Show of the Americas MarchIAADFS 9–12, AD2014 Orlando World Center Marriott Orlando, Florida, USA

Join us for the business-to-business show for the duty free industry. The Duty Free Show of the Americas offers everything you need to conduct business, all under one roof. See what attendees are saying: “ I was pleased that even more people were present this year than the last two years. We will definitely be back next year. ” “ Excellent gathering of the industry in the Americas. ” “ I was so busy with my clients. I saw 100% of my clients and the show was very productive and a great ROI. ” Visit www.IAADFS.org/DutyFreeShow for more information and registration. 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.

33 October/November 2013 TFWA/FDFA Issue INSIDER

Paraguay’s Monalisa Group: Steady evolution of Ciudad del Este’s most luxurious border department store

The Monalisa Group – which brings all over the world the most prestigious, well-known and come to see the popular brands to its breath-taking flagship Iguazu Waterfalls border store in the duty free shopping (Natural Wonder of mecca in Paraguay’s Ciudad del Este-- the World), just 20 performed well in 2012. Despite political minutes away from and economic factors that affected its Ciudad del Este, and market positively and negatively, the the region now has company continuously innovates and almost four million adapts its business to grow and improve. tourists per year. Monalisa is about Among recent innovations at the point the only–traditional of sale, the Monalisa Group introduced border shop in new personalized spaces for top cosmetics Ciudad del Este. brands such as M·A·C, Bourjois, Clarins, Tourists know that Clinica Dior, Givenchy, Ivo Pitanguy and they will find in one Yves Saint Laurent. place the best brands These brands are now featured on in the world backed the ground floor of the flagship store up by excellent alongside Biotherm, Clinique, Estée service,” he says. Lauder, Lancôme, La Prairie, L’Occitane, In addition L’Oréal Paris, Orlane, Payot, Pupa, Sisley, to the flagship Smashbox, The Body Shop and Vichy, to department store name but a few. in Ciudad del Este, the Monalisa Group 40 years. Most recently, its ground floor According to Monalisa Chairman today has seven Aphrodite Boutiques in the was completely renovated, with a full Faisal Hammoud, Paraguay is currently main shopping malls and strategic points upgrade of the entire cosmetic and perfume experiencing economic growth that has of the capital city, Asunción, as well as an furniture. As an added enhancement, the given rise to very positive expectations, exclusive Montblanc Boutique and plans retailer also introduced a new ambiance helped by the fact the retailer’s border shop for a L´Occitane Boutique to be set up by surround sound system, so shoppers can handles many tourists from neighboring early 2014, says Hammoud. cross the entire floor listening to the same countries. music at a constant volume level. “The Brazilian economy is still Constant upgrade Monalisa has also built two new floors growing, and many of its citizens visit the The Monalisa Group has been at the top of the building, increasing retail Monalisa department store. Tourists from renovating in one way or another for over space by 1000 square meters. On the first floor – which features top name watches, jewelry and leather goods-- Monalisa has updated its Bvlgari and Cartier spaces. Shoppers enjoy an entirely renovated floor with brands such as Breitling, Chopard, Hermès, Jaeger- LeCoultre, Michael Kors, Montblanc, Richard Mille, Swarovski, Tag Heuer and many others. The second floor features the high- tech department with the latest and newest products, and the fourth floor is devoted to fashion with an entirely new area devoted to Polo Ralph Lauren that complements the other brands including Calvin Klein,

TFWA/FDFA Issue October/November 2013 34 INSIDER

Ermenegildo Zegna, Guess, Lacoste, La the most impressive wine and champagne The future Martina, Nautica, Oakley, Tommy Hilfiger offers in the industry in its huge Cave Charif Hammoud adds: “As there and others. area under the ground floor. As an added is still much to be done in our city, it is Monalisa has also completely incentive, Taittinger champagne has been important that we support the efforts of renovated its gourmet restaurant with a named the official FIFA Champagne of the the local authorities, an example being new concept and moved it to the sixth floor Soccer World Cup, and Monalisa is the the project of a second bridge between with a view of the city, offering even more brand’s distributor in Paraguay. Paraguay and Brazil. comfort and better service. Overall, Monalisa sees Paraguay “Our most important achievement In 2012, to celebrate the border and Ciudad del Este as a growing market, over the past year has been to strengthen shop’s 40th anniversary, a complete with much of this growth now coming our relationship with our major group change to the building’s façade was from the international market. The Iguazu suppliers, Coty, Estée Lauder, L´Oreal, undertaken with a replica of Da Vinci’s Waterfalls are a major attraction for LVMH, P&G and others. unique piece of art La Mona Lisa, painted the region that no other border city can “Also, introducing famous and directly on the wall without using canvas offer, and with upcoming events like the important brands to our border shop, for or adhesive. The artwork is currently World Cup and the Olympics in Brazil, example M·A·C recently opened and it awaiting entry in the Guinness Book of the retailer expects to see a significant has been a success, attracting customers to World Records. increase in people visiting the triple purchase not only M·A·C but also other border and Monalisa. products. Perfume brands and champagne Monalisa’s Vice President, Charif “The market is more competitive Monalisa’s most popular product Hammoud says: “It is very important every day but as we are in constant continues to be perfume, the category for Monalisa to maintain what has been communication with our providers, with which it first started. Its top-selling achieved over the past 40 years and keep factories and brands, this gives us the fragrance brands include Boucheron, up-to-date with brands and the latest trends. confidence that we are always up to Calvin Klein, Carolina Herrera, Cartier, Our clients like to see our store with the date and in perfect synergy to deliver Chanel, Davidoff, Giorgio Armani, newest products of each brand, so we need our products to our clients in the best Gucci, Lalique, Lolita Lempicka, Narciso to keep up this pace. There are many very environment, and hope for a good market Rodriguez, Paco Rabanne, Prada, Ralph strong competitors in town today – all of to maintain our growth; always keeping Lauren, Tommy Hilfiger and Versace. them friends – so we do our best to remain our commitments with our partners and our The company also features one of competitive.” customers happy,” he concludes.

35 October/November 2013 TFWA/FDFA Issue INSIDER

Grupo Wisa opens first La Riviera border store in Uruguay and looks south for more expansion

The southern cone division of Panama-based Grupo Wisa opened its first La Riviera flagship store in the Uruguayan border town of Rivera at the end of August. The 800sqm store features an impressive M.A.C beauty boutique in its center, which is exclusive to Rivera and has proven to be a huge draw for the retailer, says Wisa’s Commercial Director for the Southern Cone, Marcelo Montico. “The Brazilian visitors seem to like what we have done and we are spending time talking to them to find out what else they are looking for. Already we have almost 5,000 followers on our Facebook page, only a month after opening the store,” Montico tells TMI. In accordance with city ordinances, the store has maintained the original façade, but Grupo Wisa invested heavily to make the store totally new inside as it rebranded it with its La Riviera concept. The main floor of 600sqm has big brands available and they have also acquired in the border towns of Rio Branco a heavy emphasis on beauty with all the performed well in the first few weeks,” and Acegua. main perfumes and cosmetics brands in says Montico. “In Rio Branco, we will convert the addition to the M.A.C boutique, along with Mauá Free Shop on the main street to a La electronics and other traditional duty free The store was inaugurated at the end Riviera store of approximately 850sqm. At categories. An additional 200sqm of retail of a quarter which has proven difficult for the same time we will start to convert the space on the mezzanine floor specializes in the border business in Uruguay. Montico 600sqm Mauá store in Aceguá to a new La luggage and other travel accessories. reports that revenues in September were Riviera store,” he confirms to TMI. “We are really happy to see the first more in line with last year, following a “With our presence in Rivera, Rio La Riviera façade open on the border. The slow July and August that affected the Branco and Acegua, we are actively selling renovation work, where we combined two whole industry in the region: “The mood is in three cities that account for more than separate stores, took a little longer than now a little more optimistic. The currency 80% of border duty free sales in Uruguay. we originally planned but we are now fluctuations half way through the year Our role now is to consolidate our activities open and doing business. The first few have made the normal border traveler and build a brand that will be seen as a weeks have been excellent and the focus quite nervous. But as the value of the Real leading brand by the Brazilian travelers of the store is on cosmetics, fragrances settled down in September between 2.20 who visit the cities where duty free shops and electronics. We are the exclusive and 2.30, we have seen the visitors coming are permitted.” retailer for the M.A.C brand in the city of back and sales have gone according to Along with consolidating the new Rivera and this is drawing a lot of people plan,” said Montico. operation, Montico will spend the second into the store. We also have the rest of the The Rivera store is the first Grupo half of next year preparing for the opening Wisa company store on the Uruguayan of the first La Riviera mega store on the border up and running. border. With the new store now operational, “We will be opening a 4,000sqm the Group is planning for the next store in the Melancia Mall, which is one developments, says Montico. In the first of the most important developments in the quarter of 2014, the company will start southwest part of Rivera. We expect to get the renovation work in other locations it our store from the developers in May/June

Putting the finishing touches on the outside of Grupa Wisa’s new La Riviera store in Rivera, Uruguay. Note the prominent display of of M.A.C in the entrance. A favorite beauty brand for the Brazilian shoppers, M.A.C has been a huge draw for the one-month-old store.

TFWA/FDFA Issue October/November 2013 36 INSIDER next year and we have three months to fit that the new border shop legislation will as well as making the operation more it out prior to the opening which is planned change the competitive framework in the efficient. At the same time, we will be for October. This will be Wisa’s biggest whole region. However, no one knows aiming to get our new 4,000sqm shop into store in South America and we are planning what will happen and any comments operation. Already we are looking at a to make it very special.” (See rendering on made now are based on rumor. Once the number of projects outside Uruguay and page 44.) legislation is published and the rules of we would like to apply the knowledge we Like most duty free operators in operation are clear, we as a company will have gained in airports in the northern the region, Wisa is observing what is decide our future strategy. Right now, part of South America to airports in this happening on the Brazilian side of the we are developing our shop network region. As a result, we will be looking border regarding the opening of border in Uruguay and we will be looking to at a number of airport tenders that are shops there. “There can be no doubt consolidate that over the next 12 months scheduled to be called.” JG

Grupo Wisa opens first Burberry Boutique; six more to follow in region In addition to opening its first of four its growth strategy designed to consolidate Barranquilla and Bogotá in Colombia. new La Riviera stores on the Uruguayan the business during the years 2013-2014. This is in addition to the Group’s strong border, Grupo Wisa last month launched “In the last couple of years, Grupo presence in Panama’s Tocumen Airport and a state-of-the-art Burberry Boutique in Wisa has also refurnished several stores the rest of Central América,” he notes. Parque Arauco, Santiago, Chile. and opened new ones in Cartagena, According to Juan Luis Correa, Grupo Wisa vice president of corporate affairs, the Group plans to open six more stores in the following months in Bogota, Barbados, Aruba, Centro Andino (Bogota) and in SOHO Mall in Panama City, Panama. “We are very optimistic for the years ahead. Grupo Wisa has been growing at double digit numbers for the last five years as Latin America has been less hit by the world economic crisis than other regions of the world,” says Correa, adding that the company is expanding operations as part of La Riviera adapts its branding for the future Grupo Wisa’s La Riviera stores are Grupo Wisa vice president of corporate identify La Riviera as a chain of luxurious ushering in the new year with an updated, affairs. stores that carries fragances, cosmetics, fine refreshed image and corporate logo as The Grupo Wisa executive says that leather goods, jewelry, high end watches, the major Latin American retail operator the new La Riviera logo incorporates chocolates and electronics. prepares to introduce a new branding brighter new colors in an effort to enhance “We hope this new effort to renew our concept for its stores across the Americas. the main attributes of the brand, creating branding will send the right message to our Two years in the making, the company a long-lasting differentiation factor as it clientele in all the countries in which we says that the goal of the new image is to illustrates the new identity and positioning operate. We have plans to keep expanding make a major visual impact, as it adapts its of the brand. our operations in other countries in the near brand in line with its corporate values and “Our clients and suppliers will future with the purpose to extend our mix improves its lines of communications with benefit from a much more renewed image of high-end products and services to new customers, supliers and the general public. that expresses dynamism, confidence, markets. We are working very actively to “This [new image] is the result of while entertaining with naturalness. We improve and enhance our competitive and years of studies in which La Riviera have no doubt that this effort will enhance comparative advantages to new stages,” intends to consolidate its identity to and improve our relationship with all says Correa. achieve immediate recognition of our the players in this market in which La brand and also to express in a more orderly Riviera is well known for the quality of manner the character and attitudes of the luxurious goods and services it has to our group, under a graphic concept that offer,” says Correa. is by far younger, elegant, modern and With the new branding image, the La cosmopolitan,” explains Juan Luis Correa, Riviera customers will be able to rapidly

37 October/November 2013 TFWA/FDFA Issue INSIDER

Bernabel opens new megastore onboard megaship Francisco

Despite several months of delays from by Liquid Natural Gas, but with a duty add to revenues. Over the next few months its originally expected October 2012 launch free selling floor of more than 1,200 sq we hope to add even more.” date, the long awaited arrival of the $150 meters, the owners claim it is one of the Laffitte says that more than 50% million, 99-meter Buquebus ferry megaship world’s biggest duty free shops on a ferry of the retail space has been allocated from the Incat Shipyard in Tasmania, – if not the largest – and the stunning store to perfumes and cosmetics: “We know Australia finally took place earlier this year dominates the center of the ship. that this is what our Argentinean and and its maiden voyage across the River Martin Laffitte, General Manager at Uruguayan customers are looking for. But Plate between Argentina and Uruguay set Bernabel Trading, the duty free concession we are also giving more space to wines sail in the beginning of October. holders on the Buquebus ferry line, and spirits, confectionery and foodstuffs. One result of the late arrival of the believes that the new ferry will deliver Toys, textiles, sporting goods, tobacco, ferry was a name change. Originally the higher sales than the older ferry stores: electronics, sunglasses and accessories also vessel was to be named Lopez Mena “We feel that with a bigger store and a get a little more room and we feel that we after the owner of the ferry company, but better designed layout, our travelers will have the right balance for our passengers. following the election of Argentine Pope find the shopping experience more pleasant We even have a small play area for Francis in March this year, Buquebus and we are convinced that sales will be children so that parents can shop in relative President Juan Carlos Lopez Mena decided relatively higher than in the older vessels. tranquility.” to name the vessel Francisco in the Pope’s With all this space, we have been able to Although the new ferry will cross honor. bring in some brands that have not been between Argentina and Uruguay nearly an Not only is the Francisco the first here before and add new products to the hour faster than in the past -- the current passenger ferry in the world to be powered best-selling categories and all of this will ferry takes between 3 hours and 3 hours 10 minutes to cross the River, and the new Francisco will ply the route about 50 minutes quicker -- Laffitte says that he is not too worried that the shorter journey will cut into the shopping time. “We have a much bigger store, with a beautiful layout. We don’t think sales will drop. We feel that the passengers will manage their leisure time on board differently to make the most of their time. Remember, we are used to selling to passengers on the Buenos Aires – Colonia route, which only takes an hour on the fast ferry, so as a retailer, we know how to manage the slightly shorter dwell time,” he explains. In spite of the delays—six months were spent on sea trials -- the whole team is really excited about the new store: “We have extended the range of brands we have on sale and we believe that the ferry passenger will really enjoy the new shopping experience,” says Laffitte. JG

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On the Border of Paraguay: Mannah holds its own, Shopping China forges ahead With economic growth of neighbors anticipation as we feel it will be a great biggest border store in South America, Brazil and Argentina slower than analysts year for the border with increasing numbers Cogorno believes that future growth will had predicted, industry entrepreneurs took of tourists from Brazil and further away.” come from improving the way they present notice when Paraguay’s Central Bank Paraguay’s biggest border retailer, the brands to the consumer, not just by announced GDP growth of 14.3% for the Shopping China, has had a solid start to adding space. first six months of the year. Observers the year with sales up an impressive 20% “We have been introducing more are forecasting growth of between 13- during the first six months of the year. personalized displays and merchandising 15% for the full year, crediting soya and According to Shopping China CEO units, and have seen some very impressive meat exports and the whole agricultural Felipe Cogorno, the company has been sales results. It is really interesting to see sector for fueling the country’s economic growing sales despite the difficult situation the effect that a better display has on our expansion. in Brazil. “The revaluation of the Real has customers; suppliers notice the improved The travel retail business on the meant that people are thinking a little more sales as well. When many suppliers see the Paraguayan border is heavily dependent before making purchases, but we continue way consumers react to the new displays of on Brazilian travelers and the recent to improve our own operation, which has their competitors, they want to do the same devaluation of the Real worried operators led to an increase in revenues.” themselves.” in the border towns. Ciudad del Este Instead of opening more retail Shopping China, like other border continues to be the major attraction, space and adding more square meters, operators in the area, is assessing the but in recent years expansion in Pedro Shopping China instead is improving impact on its sales of the proposed Juan Caballero and Salto del Guairá has the management of key categories, says legislation to open duty free stores on the expanded the shopping offer for Brazilian Cogorno. Brazilian side of the shared border. and Argentine tourists. “We have really taken a look at “Although the law has been approved, But 2013 has been a solid year so each category to improve operational the actual legislation that will control what far for The Mannah Group at their airport efficiency. In the first part of the year we can be sold and who can make purchases stores and border shops, with sales in line worked with accessories and wines and and how much they can purchase has not with budget. Company CEO Alejandro spirits; and in both cases we were able to been published. The stores do not yet exist; Mannah says, “Even though Brazil’s increase sales by 70%. We also began to they will not be built until the legislation economy is growing more slowly than import many accessories and liquor/wine is published. There could also be some expected, Paraguay is doing well with brands on a direct basis, which has allowed logistical problems to get the merchandise record economic growth. We have great us to improve the way we promote and to the stores in a timely fashion, in faith in the new president and hope to merchandise these brands.” accordance with customs regulations. see more investment in infrastructure and Perfumes and cosmetics are next on Having said that, we actually feel that the improvements in the country’s principal the agenda. “We are hoping to increase establishment of duty free stores on the airports. We hear that there will be more the number of brands that we buy directly. Brazilian side of our border will be good flights and increased frequencies from Many Brazilian consumers consider us for our business. More tourists will come airlines currently operating – this can only a reference point for confectionery and to shop if there is a bigger selection of be good news for the travel retail business. wines and spirits – we have all the brands stores. Given that we are based in a low “At our border stores, we have been consumers want and we are always looking tax area, we are able to offer tourists very concentrating on better promotional to add to the selection. Our objective is good prices and we are well known for our programs and product launches. Both to position our perfumes and cosmetics promotions and special offers which we increase traffic flow and we are happy business at this same level.” offer throughout the year,” says Cogorno. with the results. We await 2014 with great Since Shopping China is already the “The objective in Paraguay, both in Pedro Juan Caballero and in Salto del Guairá, is to improve the way we present our goods to the consumers and improve the shopping experience.” With its solid history of success in its home market, Shopping China does not rule out looking beyond Paraguay in the Shopping China future. “We may start construction of a new store in Uruguay at the beginning of 2014. The land has been purchased and we are ready to build as soon as we feel the competitive environment is right for further expansion,” confirms Cogorno. JG

TFWA/FDFA Issue October/November 2013 40 41 October/November 2013 TFWA/FDFA Issue INSIDER

London Supply’s Victor Hugo Bonnet: more than half a century in duty free Victor Hugo Bonnet, who opened,” he says. “In those days tobacco company has always adapted and evolved was awarded the ASUTIL Lifetime and liquor were the big sellers. One of with the times. We may have taken some Achievement award at the South American the huge differences was the pace of the gambles but everything seems to have trade association’s annual conference business – the vessels were quite slow and worked out well.” in Punta Cana in June, has worked at the crossings would take much longer than Bonnet points to London Supply’s London Supply, the Argentine travel nowadays.” mega-store at Puerto Iguazu on the border retail specialist, for 56 years. This tenure In the late seventies, London Supply with Brazil and Paraguay as a gamble that probably makes him the longest serving was supplying eight vessels with duty free has paid off big for the company. employee of any duty free operator in the goods. “We opened our duty free store at world. “It was a great time for all in the Puerto Iguazu at one of the worst times Bonnet is a mine of information on the business, and it was not only tobacco and in Argentina’s economic history but we way the duty free and airport management liquor. Merchandise of all types was on sale have made it a great success. Now we are business has developed in Argentina and and foodstuffs were an important category doubling the space available and the shop the rest of Mercosur. back in those days. This is when we started will have more than 6,000sqm of retail He recalls when London Supply supplying Argentine-made perfumes free space by the end of March next year. started as a mainstream ship chandler, of tax and then a few years later we were “Duty free is now the core business supplying Argentine-made goods to vessels able to supply imported fragrances,” he of the London Supply group and Iguazu is calling on Argentine ports. Even now, more continues. the most important outlet but the company than 70 years after the company began “It was very humble beginnings also owns downtown stores in Ushuaia operations, it is still supplying vessels in 19 for the perfume manufacturers. At that and Rio Grande and a recently modernized ports throughout Argentina. time no one could predict that fragrances departures store in Ushuaia International “Back when I started in the company, would become the biggest category in the Airport. the legislation was constantly changing business!” “But the expansion at Iguazu will take and part of my job was to ensure that our Bonnet has seen many changes during the company to another level,” he predicts. company complied with the law. The big his 50-plus years at London Supply: “The JG competition for us at that time was the ship chandlers working out of Montevideo port who were able to benefit from more lax legislation and fewer changes than we had in Argentina.” Bonnet reports that in the sixties, the cruise ship and the ferry business on the River Plate began to grow. “There were even eight- and nine-day cruises from Buenos Aires to Asuncion via the River Paraná and it was on these boats that the first duty free boutiques were London Supply Group Foundation meets with Pope Francisco Members of the London Supply Group showing the Pope the Foundations’s social Mayo Neighborhood. Pope Francisco Foundation had the honor of an audience and educational projects, including the blessed the project and also approved with Pope Francisco in Vatican City on Educational Area in Puerto Iguazu. There, a of the schools built by the Foundation Sept. 25, with the principal objective of complex built and donated to the province in the Primero de Mayo Educational by the Foundation currently looks after Area: the “Doña Mercedes García de the needs of more than 1,000 school-age Taratuty” Primary School and the “Don children. José Taratuty” Secondary School, as well Pope Francisco met with Argentine as the newest construction in the project, duty free operator Teddy Taratuty, the Nursery School “Madre Teresa de his daughter Maria, architect Enrique Calcutta” that will take care of babies Marianetti and the Bishop of the Iguazu from 45 days to 3 years of age and have Diocese Marcelo Martorell in St. Peter’s a classroom for 4-year-old children. The Square, to show the Pope plans for the group also delivered letters and drawings Parish Church “Beato Juan Pablo II” made by the children served by the schools. Maria taratuty, Teddy Taratuty, and Eric Lauzat (Blessed John Paul II) of the Primero de JG with the Pope

TFWA/FDFA Issue October/November 2013 42 43 October/November 2013 TFWA/FDFA Issue INSIDER

Rivera - past, present and future: An observation on the growing importance of Uruguay’s duty free border business By John Gallagher

Rivera and Chuy were the first border has seen the rapid growth of chocolates and face of Rivera is underway. The Melancia cities to be given duty free privileges confectionery and more recently sports and Rivera Mall & Free Shops Complex, in Uruguay almost 26 years ago. Even fashion goods. Officially there are 67 free scheduled to open in October next year, though another four cities have since been shops but there are many other stores in the will be home to two 4,000sqm duty free granted duty free status, Rivera is the city center selling duty-paid merchandise – shops -- one managed by Neutral and the most important and – accounting for more if the price is right the Brazilian tourist will other managed by Grupo Wisa. The mall than 60% of the total sales on Uruguay’s purchase a fashion item or a pair of shoes will also house 70 duty-paid stores. The borders with Brazil --continues to be at to go with the perfume or whisky bought in 22,000sqm development will have parking the vanguard of the border travel retail the duty free shop. for 1,000 cars. Another 32,000sqm business. The arrival of Duty Free Americas in shopping mall project to be built by The town is located a six hour car ride December 2008 was a game changer. The Montevideo-based promoter Garbarino, from Uruguay’s capital Montevideo, but its company opened a 1,900sqm shop on two which would feature a 4,000sqm Duty primary businesses depend on visitors from floors on Avenida Sarandi, the main street Free Americas Uruguay store and a Porto Alegre and other cities in the state of that runs through the city. It was the first 6,000sqm Disco hypermarket, has been Rio Grande do Sul in the south of Brazil store in the town with moving escalators put on hold by the municipal authorities for commercial survival. connecting the upper and lower sales until 2015. The border duty free business in floors. In light of the new competition some With two major “out of town” Uruguay has grown considerably since it traditional retailers sold their stores, but shopping centers, and the possibility of began. Analysts estimate that more than others decided to renovate their shops and a third in the medium-term, there are US$500m of perfumes, liquor, tobacco, widen the selection of goods on offer. questions about the impact these will have confectionery and other categories are sold Faced with the impending arrival of on the historic center of Rivera. Many of in Rivera and the other five cities every international companies, some locally- Rivera’s traditional stores – reacting to year. Sales depend on the Brazil economy based retailers made ambitious investments changing shopping habits of its customers and over the past 25 years, the duty free in their businesses. The owners of Siñeriz, -- have renovated and modernized and store operators have endured the ups and one of the most determined retailers on some are slowly moving from counter downs of a very cyclical business. Avenida Sarandi, went so far as to build service to self-service. Other local stores However, the robust performance of a megastore which today is the biggest have realized the importance of providing the Brazilian economy so far this decade border store in Uruguay. Situated nearly qualified, knowledgeable sales people, has persuaded a number of overseas atop the dividing line between Brazil and and have turned counter service into an companies to invest in the town. Neutral, Uruguay, Siñeriz’s 10,000sqm store-- open important competitive advantage. the biggest chain of stores in Uruguayan now for over a year—is a risk that seems The Brazilian consumer is looking for hands, was sold to a U.S.-based private to be paying off. CEO Gandhi Abdullah keen prices on favorite brands and also for equity company in 2011 and more recently and his commercial team will now renovate special brands that are not available where Panama-based Wisa Group and St Honore their downtown store, which is really he lives. If the small or medium sized store have acquired some smaller retailers. three separate stores measuring close to can give the consumer good prices and the Historically, Rivera’s duty free 2,000sqm. Commercial Director Rafael brands they want, there is no question that operations have been small 200-300sqm Parodi has the herculean task of converting they will survive alongside the mega stores. stores offering a traditional duty free the three units into one and keeping the The megastores will bring more brands and selection of perfumes, cosmetics, wines, stores open at the same time. more variety but the traditional stores can spirits and tobacco. Over the years other At the southwest end of town, another still compete with good prices and a more categories have been added and the town major development likely to change the personalized service.

The traditional Rivera duty free stores must now compete againsts such modern retailers like the new Melancia Mall (rendering).

TFWA/FDFA Issue October/November 2013 44 45 October/November 2013 Monseñor Rodríguez, 654 - Ciudad del Este, PARAGUAY - Tel +595 (061) 500 645 TFWA/FDFA Issue www.monalisa.com.py - facebook.com/MonalisaParaguay INSIDER

Brazil reschedules latest round of airport auctions until November By John Gallagher The Brazilian government will hold experience operating airports handling R$ 4.8 billion with a variable contribution a second round of bidding on airport 20 million passengers. The Federal to the National Civil Aviation Fund privatizations in November after delaying Court disagreed, reducing the minimum (FNAC) of 5% of annual gross revenue. the bid for another month. The Brazilian passenger numbers to 22 million and 12 The Belo Horizonte – Confins airport Civil Aviation Authority (ANAC) was million respectively. currently handles 10.4 million passengers a scheduled to hold an auction to sell a 51% However, the Federal Court approved year (445k international) and INFRAERO stake in the management of Antonio Carlos the Civil Aviation Authority’s proposal forecasts the annual passenger volume Jobim International Airport (Galeão) that winners in the previous round of will reach 43 million by the end of the in Rio de Janeiro, and Tancredo Neves privatizations be limited to a maximum concession period. The minimum bid for International Airport (Confins) in Belo shareholding of 15% in the new bidding Confins has been set at R$1.1 billion Horizonte on October 31, 2013. But the consortiums. Originally the government Following the success of the first government has now confirmed that the tried to eliminate any shareholder involved round of privatizations, the Brazilian auction will take place in the Bovespa – the in a winning consortium in the first government hopes that the minimum São Paolo Stock Exchange -- on November round from participating in this round bids are again surpassed, to raise money 22 instead. of bidding. But the Brazilian pension to support the non-privatized airports As with the earlier airport auctions, funds successfully lobbied to force the controlled by INFRAERO. According to Brazil’s Airport Authority INFRAERO government to allow them a minority stake. ANAC, the winners of the auction will will retain 49% ownership in the privatized For Galeão, Brazil’s second biggest be expected to make a total investment airports. international gateway after Sao Paolo of not less than R$ 8.7 billion during One reason for the delay has been a Guarulhos, ANAC is offering a concession the concession period. The winning series of Federal Court hearings examining period of 25 years with an optional five- consortium will have to invest at least a number of new restrictions that the year extension. For Confins, the concession R$ 5.2 billion at Galeão and approximately Rousseff government had demanded be period will be 30 years, with a five year R$ 3.5 billion at Confines. added to this series of privatization bids. option available. International airport operators The government wanted operators bidding At present, 17.5 million passengers Ferrovial, Spain; AENA, Spain; Aeroports for Rio – Galeão to have experience in per year (4.29m international) use the Rio de Paris, France; Schiphol, Holland; operating airports with more than 35 – Galeão airport, with passenger traffic Fraport, Germany; Corporacion America, million passengers and required those projected to grow to 60 million by 2038. Argentina are expected to take part in the bidding on Belo Horizonte- Confins have The minimum bid for Galeão will be auction, according to various press reports.

Las Delicias to open first airport store Panama-based Las Delicias Duty Free in a rather small new international airport targets,” says Cucalon. is about to take a big step beyond its initial on a small island, but it has the potential The Las Delicias Group is also border business, opening its first travel to grow as a big destination. Our bet is to growing by expanding its product offer. As retail airport store in November. begin in this type of airport in order to keep reported in April, the company first targeted Although the company is not growing to success,” he says. bringing in confectionery, which is already permitted by contract to disclose the The company’s four existing border in place. It has also already successfully location of the new store until it has stores, meanwhile, report an excellent year, introduced branded apparel into the stores, opened, Las Delicias Marketing Director with overall sales up 30% year-to-date over says Cucalon. Mario Luis Cucalon tells TMI that the 2012. Las Delicias operates three stores Next up is Perfume & Cosmetics, a expansion is a long-planned strategic move on the border between Panama and Costa category the company will introduce in for the company. Rica, and one store on the border between December of this year. “We will enter this “We started our business as a border Colombia and Panama. category with a dedicated and specialized duty free store operator, but our goal According to Cucalon, the Delicias team with years of successful experience,” always has been to be an airport duty Paso Canoas store (Costa Rica) had its best Cucalon tells TMI. It plans to expand into free operator. This is our first step in that year ever, reaching 100% growth. Sales at accessories in 2014. direction. It is a big challenge to compete Delicias Guabito (Costa Rica) were up by Because some of the Las Delicias in the airport duty free business, mainly 20% over the same period in 2012. Sales at stores are located in remote areas, the because big operators won’t give a small Delicias Sixaola (Costa Rica) rose by 11%. company had to ensure that it was operator the opportunity to emerge, but we “And our Delicias La Miel store, maximizing its logistics resources in the are finding ways to do it. which has only been open for one year, is most efficient way before expanding into “I can tell you, this first experience is well on track to reach its ambitious sales the new product categories.

TFWA/FDFA Issue October/November 2013 46 47 October/November 2013 TFWA/FDFA Issue INSIDER

Dufry dominates in Brazil travel retail with new contracts and joint venture with Brasif

In one of the biggest news stories of of duty free space and 3,046sqm in duty through Dufry’s strict financial controls, the year in travel retail in the Americas, paid. Not only will the retail space be there would be no dilution in profitability. Dufry Group last month announced that it substantially bigger, but the shops will also “Absolute EBITDA will increase in had signed long-term 10-year contracts in have better locations and provide a much 2014 and group EBITDA margin will be São Paulo, Brasilia, Viracopos and Natal to better retail experience for the passengers maintained (at 14-15%) after a full year of operate duty free and duty paid spaces in in each of the airports, it says. operations,” he said. Brazil’s recently privatized airports, as well “Brazil is an opportunity,” said Diaz, as a duty paid shop in Goiânia. New era for Brazil travel retail adding that until now the company had not Not only did the news solidify the With these new agreements, Dufry been able to implement the full business travel retail giant’s position as the dominant says it is entering a new phase in the plan that it had envisioned back in 2006: travel retail force in the region for the next development of the Brazilian travel “But in a new era of privatized decade – but the added detail that Dufry retail market. The refurbished and airports in Brazil, we can now mitigate the had secured the contracts under a joint expanded airports will allow creating previous lack of commercial capacity and venture with Brasif – the former operator substantially larger and better retail space the low quality of commercial space. It is a of Brazil’s main duty free operations that and significantly improved performance new era for travel retail in Brazil.” sold its business to Dufry in 2006 – assured compared to the current situation, where that the project will encompass a level of the potential is restricted due to a lack of Higher arrivals allowances expertise and local market understanding capacity in the existing infrastructure. As a To further sweeten the impact of the that should go a long way towards assuring result, Dufry says it will be able to create deal, the contract announcement comes success. a truly first class shopping experience for on the heels of news of a substantial All of the new contracts are for 10 passengers in Brazil, which provides scope increase in Brazil’s arrivals duty free years, enough time to allow the company to for a substantial increase in spend per allowance. Only the day before, Brazil’s develop the business long-term, says Dufry. passenger and overall sales. Senate had approved the increase of the Overall, Dufry will operate 19,702sqm Speaking to analysts after announcing allowance from the US$500 limit of today of retail space in these locations once all the news on Sept. 4, Dufry Group CEO to US$1,200. The increase must still be the expansion projects in the different Julián Díaz said that he expected sales to approved by Brazil’s full Congress, which airports are completed, an increase grow a minimum of 20-25% once the new is expected to take place within the next of 324%, or 13,626sqm compared to stores are operational, through improved few months. 6,076sqm before the privatization. infrastructure, product assortment and sales Duty paid is also a hugely important Altogether, Dufry will add 10,580sqm per passenger. Further, he pledged that element of the new contracts, since Dufry can considerably expand this sector in Brazil and tap the important domestic traffic. Around 90% of all air passengers in Brazil are domestic and the build-up of the duty paid sector will be an important element in the development of the Brazilian business going forward, says the company.

Guarulhos São Paulo T3 Critically important is Dufry’s 10- year contract to operate all the duty free at Terminal 3 at Sao Paulo Guarulhos, Brazil’s leading airport. When completed [in May 2014], T3 will handle all of GRU’s international traffic. Dufry reports that it will add 6,860sqm of retail space at T3, divided into two walk-through general travel retail shops in arrival and departure. In addition, Dufry expects to open 15 stand-alone branded boutiques, a new concept in Brazil. On the duty paid side, Dufry will open a 204sqm Hudson store – another new store

TFWA/FDFA Issue October/November 2013 48 49 October/November 2013 TFWA/FDFA Issue INSIDER

format in Brazil, offering a comprehensive selection of convenience items, such as magazines and newspapers, soft drinks, a wide range of snacks, health and beauty aids and other travel convenience items. Overall, Dufry will increase its retail space 184% in Guarulhos Airport to 14,223sqm from 5,003sqm, including the expansion and upgrading in Terminal 2, where Dufry inaugurated its enlarged arrival store of 3,142sqm on August 18, most dramatic increase in size, said Diaz-- Substantial development potential for 2013. The departure shop will be expanded Dufry will introduce the walk-through Viracopos by 513sqm in the coming quarters. concept in duty paid with a 1,600sqm Dufry signed an agreement with São Paulo Guarulhos is the largest mega-store, a new concept “which takes Aeroportos Brasil Viracopos last April to airport in South America. In 2012, the Brasilia’s retail space to world class operate duty free shops at the Viracopos airport welcomed a total of 33 million standards.” Dufry will also open three International Airport for 10 years. Located passengers, of which 12 million were Hudson convenience stores in Brasilia and in an area with a cluster of science, international passengers. two in Natal. technology and industrial companies in the Brazil´s capital, Brasília is the fourth city of Campinas, in the greater São Paulo Brasilia and Natal: Redesign airport largest city in Brazil. In 2012, this airport area, it has access to the best roads in the retailing from the core welcomed 16 million domestic and more country. Viracopos airport operates the 2nd Dufry signed another 10 year than 400,000 international passengers. largest air cargo terminal in Brazil and in agreement with Inframerica Group to Domestically, it serves all major Brazilian 2012 welcomed 9 million domestic and redesign the entire commercial space and cities and all the important airlines, which international passengers. operate the duty free and duty paid shops at makes Brasilia the largest hub in Brazil. Dufry is currently operating two duty Juscelino Kubitschek International Airport This city has also been chosen to be one of free shops in the Viracopos airport terminal in Brasilia and at the São Gonçalo do the 12 host cities of the 2014 World Cup. with a total area of 324sqm-- a 237sqm Amarante International airport in Natal. Inframérica’s infrastructure expansion shop in the arrivals area and an 87sqm shop In Brasilia and Natal, Dufry will calls for 28 gates, up from 13 before the on the departure side. Both shops have a reformulate the travel retail area of both World Cup. Once all infrastructure work is general travel retail format. In addition, airports in terms of passenger flow and completed at the end of 2014, the airport Viracopos has a 100sqm duty paid shop. retail formats with a total retail space of will have a capacity of around 40 million 4,602sqm, an increase of 3,953sqm. passengers. New duty paid shop in Goiânia Based on the new contract, Dufry will Natal, a top tourism destination in On August 20, 2013, Dufry opened operate 1,685sqm of duty free space and Brazil, is the closest airport to Europe in its first duty paid shop at Santa Genoveva 2,917sqm in duty paid at the two airports. terms of geographical location. Airport Goiânia, located in the Midwest The retail concepts will include multi- Natal was privatized in 2011 and is of Brazil, under a 5-year contract. The categories and branded shops as well as expected to be open for the World Cup next shop comprises 92sqm and will offer the Hudson convenience stores. year. The total expected passengers for traditional travel retail assortment such as In Brasilia—which will experience the 2020 will be around 5 million. liquors, perfumes and cosmetics, as well as electronics and confectionery. Santa Genoveva Airport handled 3.1 million domestic passengers in 2012. The Sao Paulo shops are scheduled for completion in Q2 2014, and the rest of the projects are scheduled for completion by the end of 2014.

JV with Brasif Dufry has structured a 60/40 joint venture company with Brasif. The new duty free businesses shall be operated through a new joint venture, which shall become the platform to develop the duty free business in Brazil going forward. Dufry has the possibility to up its stake in the JV to 80% through a call/put option structure until the end of 2014. The joint venture is subject to the approval of the Brazilian antitrust authority.

TFWA/FDFA Issue October/November 2013 50 INSIDER

Overhaul of San Juan’s LMM at center of Puerto Rico tourism promotion efforts as ASUR Group begins $1.4 billion upgrade of privatized airport by Larry Luxner

Puerto Rico’s infrastructure, yet there was visiting Puerto Ricans — which generally a lot of skepticism by the people of Puerto means people who don’t spend much Rico whether a private company would money. Of the remaining 18%, some 90% do the job better,” he said. “We are not come from the U.S. mainland, 4% from the Mexican. Aerostar is a 100% Puerto Rican neighboring Dominican Republic, 2% from company established in Puerto Rico.” Europe and 1% from Canada. He further clarified that “the The average passenger transiting government didn’t sell the airport. The LMM spends $2.70, compared to $7.80 agreement we signed is a lease to manage per passenger in Cancún and $14 at Miami Agustín Arellano, CEO of Aerostar Airport and operate this airport for the next 40 International Airport, he said, noting that Holdings, the Mexican-led consortium years.” “we are almost in last place in the whole renovating San Juan’s Luís Muñoz Marín Arellano — proudly showing off the U.S. airport system in terms of per- International Airport. FAA certificate authorizing his company to passenger spending.” operate LMM — has worked as a private Arellano said certain items like liquor SAN JUAN — Mexican aviation pilot, air traffic controller and general — especially rum — should be promoted executive Agustín Arellano wants to director of air traffic services for the at LMM. Taxes make other products like transform Puerto Rico’s flagship airport Mexican government during his 32-year fragrances and cosmetics uncompetitive, from an obsolete relic of the mid-20th career. The Guadalajara native relocated meaning mainland-bound passengers will century into a modern world-class gateway to Puerto Rico two years ago from Brazil, just wait until they arrive in Miami, New — much like he’s done for Cancún and where ASUR ultimately failed in a bid to York or other gateway cities to buy those eight other airports throughout southeastern manage the international airports of São items. Mexico. Paulo, Campinas and Brasília. He said Dufry, which operates 12 Arellano, 57, is general manager of “Normally when you sign an airport stores at LMM, will expand to 15 shops Aerostar Airport Holdings LLC, which is concession it requires new construction. when the remodeling is finished by the joint venture now operating San Juan’s Here it’s the opposite. You have a huge December 2015 or January 2016. Dufry’s Luís Muñóz Marín International Airport. facility that was in some way left out. contract expires in 2029. At present, the Aerostar is a 50-50 venture between New You have 2.8 million square feet. Cancún airport has 121 food, beverage, retail and York-based Highstar Capital and Grupo handles twice the number of passengers duty free concessions. Aeroportuario del Sureste (ASUR), which with only one-third the size. There’s a lot of “We’re going to completely change manages nine Mexican airports. wasted space here, and some areas — like the way this airport deals with retail. It’s Aerostar signed the lease contract for Terminal E — have been closed for more a very old airport from the 1950s that has LMM on July 24, 2012, but didn’t close than six years.” been renovated in different generations. No on the transaction until this past February. The airport now handles 8.5 million profile was ever made of passengers’ needs. Under the deal, Aerostar agreed to pay the passengers a year, and Arellano says his goal We’ll establish the same system we have Puerto Rico Ports Authority (PRPA) $615 is to increase that by at least 2% a year. in our Mexican airports so we can offer million upfront, plus annual payments The problem, he explained, is that passengers a very appealing commercial of $2.5 million and 5% of annual gross 82% of those passengers are Puerto Ricans mix.” revenues between years six and 30, rising to 10% of annual gross revenues from year 31 to year 40. The PRPA will receive a total of $552.5 million over the 40-year life of the concession, during which time Aerostar Dufry liquor and expects to invest nearly $1.4 billion. retail shop at San “We started to negotiate this contract Juan’s Luís Muñoz with the previous administration, but we Marín International got caught up in the political campaign Airport. and the transition to a new government and a different political party,” Arellano explained during a recent interview at his office just across from the American Airlines ticket counter at LMM. “This airport is an essential part of

51 October/November 2013 TFWA/FDFA Issue INSIDER

Arellano added: “The only way we and construction of a connector between B gum and cigarette butts which have stained can make a profit from this is by increasing and C to D, which houses small commuter the floors and contributed to an overall the number of passengers coming through, airlines. image of decay over the years. To remedy and having an appealing commercial offer “Passengers are going to see a the situation, Aerostar began a campaign so they’ll spend more. But if you have modern, high-quality airport — just the asking both passengers and employees two restaurants facing each other and they same as Cancún,” Arellano said. “There not to throw gum on the floor. Likewise, both sell pizzas, this is not the way to do will be construction all over the airport. electronic ashtrays that absorb cigarette business at the airport.” There’s just no other way to modernize it. smoke have been installed in smoking areas During the first phase of LMM’s Construction will be running 24/7.” throughout the airport. overhaul, which lasts from September 2013 So far, he said, Aerostar has created “The jet bridges were in very to July 2014, Terminal D — which houses 225 direct and 475 indirect jobs at LMM. bad shape because they had not been American Airlines — will be completely By July 2014, it expects to employ as many maintained properly. We had to change remodeled. So will Terminal A, which is as 1,500 people directly and indirectly. seven rotundas because the floors were home to JetBlue and which was built in For now, Aerostar has made a number falling down,” he said. “We also took away 2007 and then left unused for five years. of crucial cosmetic and structural fixes all the old signage and have installed new This is a reflection of the two airlines’ to LMM, which was inaugurated in 1955 signage similar to Cancún, with brighter changing fortunes at LMM. Back in 2007, and later renamed for Puerto Rico’s colors and far more efficient presentation.” American and its regional airline, American first Commonwealth-era governor, Luís The overall renovation at LMM Eagle, operated 114 flights a day out of Muñóz Marín. This includes $350,000 on coincides with efforts by Puerto Rico San Juan. But once the decision was made landscaping, $450,000 for new boarding to upgrade the island’s smaller airports to move its Caribbean hub to Miami, bridges, $250,000 on lighting, $300,000 as well. In May, PRPA announced $110 operations were gradually reduced to the on escalators, $600,000 on energy million in capital improvements over point where AA now has only 14 flights infrastructure and $450,000 on a free WiFi the next four years to revamp airports in a day here; American Eagle’s operations network throughout the airport, which Ponce, Aguadilla and Mayagüez. First off officially ceased on March 31 of this year. should be available by year’s end. in the renovation efforts is Aguadilla’s JetBlue, meanwhile, has stepped Aerostar also invested $3.5 million in Rafael Hernández Airport, whose up its flights and now flies from the upgrading the parking lot; cars were stolen control tower and aircraft rescue area are U.S. mainland to not only San Juan but from the previous parking garage, he said, being remodeled to meet federal airport Aguadilla and Ponce as well. JetBlue because of inadequate lighting. requirements. also offers routes from San Juan to Santo Aerostar has also had to repair the JetBlue recently increased its Domingo, St. Maarten and Punta Cana. damage left by airport workers opposed to frequency between Orlando and Ponce’s The second phase, from November the privatization. Mercedita Airport with an additional daily 2013 to December 2014, involves shutting “There were 421 chairs vandalized flight. The added round-trip represents an Terminal B — which is now occupied because union people didn’t want to leave $11.9 million economic boost for the Ponce by Delta, US Airways and United — and the premises,” he said. “They sliced the region, said PRPA’s Suárez. JetBlue also remodeling it, and constructing a new seats with knives, so we’re repairing all offers a direct flight to New York’s JFK out screening point between B and C. of them. But it takes time because local of Ponce, which — combined with service The third phase, lasting from January factories can only make 50 seats per week.” to Orlando — draws about 900 passengers to December 2015, will see Terminal C Arellano said one of LMM’s biggest to Mercedita daily. closed, Terminal B brought back to life, problems is the proliferation of bubble In August, the Commonwealth government launched its latest institutional slogan — “All-Star Island” — to be used by travel agencies worldwide to promote the island as “one of the best places in the world to invest.” Featuring a single star, the launch will represent the administration’s economic development efforts, Gov. Alejandro García-Padilla announced during the Aug. 22 unveiling at the Puerto Rico Convention Center. This “Puerto Rico All-Star Island” concept will be backed by a $2 million multimedia campaign. Likewise, the governor has just signed a new incentives package into law to spur activity in the Puerto Rico cruise

JetBlue aircraft parked at the airline’s new terminal at San Juan’s Luís Muñoz Marín International Airport, San Juan.

TFWA/FDFA Issue October/November 2013 52 INSIDER

Cuba upgrades Havana airport By Larry Luxner With tourism numbers booming, the told Cubadebate the eastern part of the not only on Havana and Varadero but on Castro regime has decided to invest $10.2 terminal will be upgraded to accommodate its many offshore islands as well. Cayo million to improve operations at Havana’s larger airplanes, and that 190,000 square Guillermo and Cayo Coco were among overcrowded José Martí International feet (17,500 square meters) of new roofing the first to be developed, but back in the Airport. has already been installed. early 1990s, there wasn’t even a bridge or In 2012, nearly 3 million tourists Terminal 3 is the most modern of road connecting them to Ciego de Avila or came to Cuba, led by Canada, which José Marti’s terminals. It was built with nearby Morón. A stone road was quickly alone provided more than one million Canadian aid at a cost of $93 million, built, followed by an international airport visitors. During the first half of 2013, Cuba and inaugurated in 1998 in a ceremony in Cayo Coco for direct flights, then a welcomed 1.6 million foreigners — mostly involving Fidel Castro and Canada’s then- marina and later on a small port — Puerto Canadians, Brits, Germans and Argentines, premier, Jean Chretien. However, it hasn’t Casasa — to handle barges and boats up to according to the government’s Oficina kept up with increasing traffic since then, 2,400 tons. Nacional de Estadísticas. and seems to be straining at the seams Today, the area boasts 17 beachfront The Varadero beach resort alone with long waits at check-in, immigration, hotels and villas with a combined now has 50 hotels with 20,200 rooms and security and baggage claim. 6,000 rooms operated by major hotel receives more than 40% of the foreign Cubadebate said the terminal has as conglomerates such as Meliá, Tryp, visitors who come to Cuba. many as 1,800 to 2,000 travelers passing Iberostar and Pestana. The Havana Reporter, an English- through at times, a number that can rise to Meanwhile, a new air carrier language semiweekly newspaper, said 2,500 if people accompanying passengers — Sunrise Airways — has received the upgrade at José Martí will include to the airport are factored in. permission to operate charter flights eight footbridges for boarding and the “The current design only allows between Cuba and nearby Haiti. expansion of a parking lot outside Terminal for the terminal to accommodate 1,400 The twice-weekly private service will 3. Government website Cubadebate added passengers, a number lower than the real operate using 19-seat Jetstream 32 aircraft that the project also calls for new walkways, volume that exists in these moments, which between Port-au-Prince and Holguín, additional check-in counters, lighting and hurts the quality of service,” the website beginning sometime this autumn. This is the air-conditioning improvements and systems said, noting that 2.5 million travelers pass second new international route for Sunrise, to conserve water and electricity. through Terminal 3 each year. which launched new service between Cap- Airport director Juan Carlos Quintana Cuba is focusing tourism efforts Haitien and Providenciales in August. ship sector. Law 80 extends the 2011 should be pushing its cultural heritage between $690 and $780 for a round-trip incentives packaged passed by the previous and its historic architecture as well as ticket to the island. administration of Gov. Luís Fortuño, its reputation as a Caribbean center for “Working together with the adding four incentives to increase cruise financial and medical services. government, we can pressure airlines to ships’ homeport frequency and duration in To that end, ASUR has been lobbying fly to Puerto Rico,” said Arellano. “But Puerto Rico. hard to bring in more airlines. On July 17, it’s very difficult to self-promote the The first gives a discount increase of Colombia’s Avianca began flying three destination if you don’t have the demand.” $1.50 per passenger if the homeport ship times a week between Bogotá and San PRPA Executive Director Victor sails before 4 p.m. The second offers an Juan, using the same plane that flies the Suárez said the last year a Mexican airline additional $1.50 if ships dock before 11 Bogotá-Cancún route. Arellano said the did business with Puerto Rico was 2000, a.m., with a minimum stay at port of at company is also negotiating with Brazil’s when Mexicana de Aviación discontinued least eight hours. The third gives a 50-cent Gol for direct flights between São Paulo flights to and from San Juan. increase per passenger if the homeport and San Juan. “Puerto Rico’s economic development ship includes another Puerto Rico port, Spain’s Iberia also plans to increase depends greatly on how we interact with such as Ponce, during a week-long its presence in Puerto Rico, with new other countries, and the first step, without itinerary, and the fourth extends a further routes connecting LMM to neighboring a doubt, should be connecting with our discount of 50 cents per passenger for destinations in the Caribbean. The airline Latin American neighbors,” Suárez said homeport ships that embark or disembark had drastically reduced its presence in San at a press conference, noting that Mexico from a Puerto Rico port more than once Juan in December 2012 after financial today ranks as the second-largest economy a week. The goal: to bring back four-day problems forced it to restructure. Iberia in Latin America, and the third-largest cruise trips. eliminated various key routes — including economy in the Americas after the United Said Arellano: “If you continue to a direct flight between San Juan and States and Brazil. “For many years, Puerto promote Puerto Rico as another Caribbean Madrid — though it kept other routes Rico ignored Latin America’s emerging destination with beautiful beaches and sun, between San Juan and Miami. economy, and today these countries have you’ll lose out to the competition, because In May, Mexico City-based Interjet become areas of major economic focus. For you’ll be promoting the same product all began serving the Puerto Rico market after this reason it is important that Puerto Rico the other islands are doing.” a 14-year absence, with 150 passengers is accessible to the world, and each day Instead, he suggests, Puerto Rico aboard the first chartered flight paying bring more tourists from different places.”

53 October/November 2013 TFWA/FDFA Issue INSIDER

Tairo brings the Caribbean to Orlando to fete its top-performing BAs

Miami-based beauty specialist brands. Demonstrating the respect that the group enjoyed a lovely Spanish tapas company Tairo International feted and Tairo holds for its retail partners, the event dinner, and was entertained by Tairo’s very honored its top performing Beauty was held in the beautiful Ritz-Carlton own version of “American Idol,” with Advisors from throughout the Caribbean Orlando Hotel, and included an array of impromptu Karaoke singing performed by and duty free Mexico markets with an wonderful dinners, a shopping trip and guests. Even Tairo President Robert Bassan elegant yet fun-filled seminar in Orlando, even a free day at Disney World. got into the act. Florida in mid-September. Tairo’s Seminar kicked off on a casual Friday saw a full day of product About 100 Beauty Advisors and note, as the BAs flew in from all parts of presentations and trainings. In another customer buyers were invited for a 5-day the Caribbean and were offered some time show of appreciation to the BAs, Tairo visit to Florida’s vacation-land, to learn to unwind before the serious trainings provided a series of beauty treatments about the latest client and product news began the next day. Under the theme of throughout the day, including mini-facials, from the Tairo International portfolio of “Bringing the Caribbean to Orlando,” manicures and make-overs.

TFWA/FDFA Issue October/November 2013 54 55 October/November 2013 TFWA/FDFA Issue INSIDER

Dinner that night was a gala event at competing teams answering questions was the rollout of Tairo’s special one of Orlando’s most welcoming Italian about the products they had been shown. Facebook page designed exclusively for restaurants, in preparation for Saturday’s In an especially touching moment, the the company’s BAs. First announced full day of play at Disney World, which Tairo team paid special tribute to Mercedes during its Marketing Meeting in Orlando was deemed a great success by all who Diaz, who was retiring from the industry last April, the page has attracted a attended. after spending the last 25 years with Sears solid following of “friends” who post On Sunday, an intense preview of in Mexico. wonderful news and photos of their many of the new fragrances in the Tairo The remainder of the day was spent instore events. Participation on the page portfolio – from such major suppliers shopping in one of Orlando’s famed malls, is by invitation only, and assures the as P&G Prestige and Coty – was before dinner and departures the following privacy of all who use it, notes Tairo complemented by a hilarious version of day. A great event all around! President Robert Bassan. the TV game show, Family Feud, with One special highlight of the Seminar

TFWA/FDFA Issue October/November 2013 56 THE 1ST ANTI-AGING CARE* TO CHALLENGE A LASER SESSION

NEW REVITALIFT

RE-PLUMPS / RE-FIRMS / REFINES

EFFICACY TESTED AGAINST ONE LASER SESSION: FOR THE 1ST TIME THE EFFICACY OF OUR SKINCARE USED DURING 8 WEEKS WAS COMPARED WITH ONE LASER SESSION ON CROW’S FEET.

“AN INSTANT MAKE-OVER FOR MY SKIN.” Andie MacDowell.

57 October/November 2013 TFWA/FDFA Issue

TravelMarketInsider_RevLaserRenew_8.5x11.indd 1 8/28/13 2:04 PM INSIDER

Lancôme Loves Women

Lancôme treated travel retail “This is a very important collaboration customers throughout the Americas to a that is helping to build Lancôme’s number of highly impactful and successful legitimacy in the fashion segment,” animations that promoted its three pillars explains Josephine Katz-Trataris, – fragrance, skincare and make-up – and Lancôme Fragrances Product Manager delighted women everywhere they were at L’Oréal Luxe Travel Retail Americas held. (Parbel). “Elbaz is very well-known and In DFS Hawaii in August, Lancôme influential and he was given free-range to edition of the Color Design 5 Shadow & presented Hypnôse Puts on a Show, its design the collection. The adorable teaser Liner Palette, Lancôme’s “it” eyeshadow highly anticipated collaboration with video campaign that was created prior collection, also restyled by Alber Elbaz. designer Alber Elbaz, the acclaimed to the launch went completely viral, and Perhaps the most interesting element whimsical fashion designer who lent his generated interest from all nationalities. of the animation is that Lancôme did not joyful design genius to Lancôme’s best- “The Japanese visitors to Hawaii love have its usual HPP space in which to hold selling mascaras. Alber Elbaz redressed makeup and the heritage of the brand and the event, so the company completely Lancôme’s four bestselling Hypnôse regard Alber Elbaz as one of the hottest redecorated its own space within the store mascaras -- Hypnôse Doll Lashes, Hypnôse fashion designers, so the event was such a instead. Star, Hypnôse Drama and Définicil -- in huge success that the Collection sold out “The results were so impactful, we hearts, polka dots, stars, and roses for the completely within a couple of weeks,” she will do this again and roll it out to all of our summer. says. The collection also incuded a limited flagship stores,” says Katz-Trataris. “Our space became a ‘Brand Cathedral,’ and we were able to exploit every bit of space— down to the red carpet on the floor, cut-out visuals all over the shop and a full window display.”

DFS Hawaii

Catering to the global shopper fragrances convey a certain personality. We In an even wider-ranging animation, see the woman who uses La vie est belle as Parbel launched its Lancôme Loves Women a happy, natural beauty; the Trésor woman program as a way to support its three main as a vibrant, passionate, romantic beauty; fragrance brands – Trésor, Trésor Midnight and the Trésor Midnight Rose woman is Rose, and Le vie est belle – and then tied a seductive, charming and mischievous them into a suggested make-up look and beauty. Our experts then developed a make- skincare routine. up look for each of these profiles, and “We like to say that women come recommended a skincare routine for each.” to Lancôme to find beauty and leave To wrap the entire program together, happy,” says Katz-Trataris. “Each of these Lancôme produced a booklet that explained in detail how to achieve each of these looks (romantic, seductive, luminously International Skincare Experts and Make-Up natural), and filled with make-up artists’ Artists in Cancun used the Lancôme Loves Women booklets to advise customers on their tricks, behind the scenes tips and other beauty routines. information, and translated it into five

TFWA/FDFA Issue October/November 2013 58 NATURALLY IRRESISTIBLE

NEW FLEUR DE FIGUIER FRESH FRAGRANT WATER

WWW.ROGER-GALLET.COM 59 October/November 2013 TFWA/FDFA Issue

RGCannesMagazine_216x279.4.indd 1 9/27/13 3:03 PM INSIDER

languages – English, Spanish, Portuguese, new segment Chinese and Russian. in skincare. “Beauty Advisors used the booklets Rather than as a tutorial and gave them to customers ‘whitening,’ it to take home. It was a huge success. is correcting Lancôme’s obsession is to cater to the color tone,” she global customer!” she added. explains. Lancôme’s biggest launch for Dreamtone the rest of 2013 and into 2014 is for is rolling out DreamTone Customized Skin Tone now, with the Correcting Serum, which it says is a full impact breakthrough color correcting skin planned for tone product adapted to three different 2014. On the pigment profiles. It fights dark spots, schedule for this quarter are animations at Aldeasa Peru (above), Bernabel (below). provides uniformity and corrects color Penha, in the Caribbean in October; with irregularities and is available in three Dufry Brazil, Dufry Argentina and Aldeasa versions to work on fair, medium or dark Chile in November and December in South skin tones. Imperfections like redness, America, and with Host Atlanta in October sallowness and acne marks are visibly and DFA in October and November in reduced, says the company. North America. “We see Dreamtone as pioneering a

L’Oreal starts travel retail roll out of Clarisonic Skin Cleansing System

L’Oreal is rolling out the Clarisonic spa professionals, and was acquired by There are three sets to choose from. Skin Cleansing System to select travel L’Oreal at the end of 2011. Now the brand The Clarisonic Aria Sonic Skin retail venues, and has just installed its first is expanding its reach to the home market, Cleansing Brush comes with three speeds, Clarisonic airport counter in the new LAX including launching in travel retail – as a real-time battery-life indicator, USB- TBIT terminal with DFS. it claims to be transforming the skin care enabled pLink charger, and a drying stand Developed by a team of engineers industry. that converts to a charging station when and entrepreneurs in Seattle, Washington, Teaming up with L’Oréal’s R & D coupled with the pLink charger. Speed 1 is Clarisonic is a device that uses proprietary team, the Clarisonic system is evolving into for compromised or fragile skin; speed 2 sonic technology to cleanse the skin. A a comprehensive approach to taking care of is a universal for all skin types and speed pioneering innovation, the Clarisonic Pro the skin. 3 offers extra power to loosen and remove Sonic Skin Cleansing System was initially The company explains that, unlike set-in debris, says the company (and offers developed for skin care professionals to spinning devices, Clarisonic’s patented 35% more cleaning power than speed 2). use in treatment. It has quickly became sonic technology works with skin’s natural The two-speed (gentle and universal) the #1 cleansing brush recommended by elasticity, removing deep-seated impurities Mia 2 Facial Sonic Cleansing Brush is leading dermatologists, aestheticians and from pores and priming skin to better lightweight, compact and equipped with a absorb topical treatments, which transform travel case. skin texture, reducing the appearance of The Clarisonic Plus Sonic Skin pore size and creating a softer, smoother, Cleansing Brush offers a total face more radiant complexion. and body experience.The Plus can be The Clarisonic Sonic Method can be customized with three different speeds for modified to deliver two complementary facial cleansing, plus a body mode with modes of action that meet specific a three-minute setting with unique body treatment goals. Its clinical results have brush head. shown increased product absorption and six Clarisonic offers uniquely designed times better removal of makeup, dirt and interchangeable brush heads for all models oil than cleansing with hands alone. and cleansers formulated specifically for use with sonic technology giving customers a customized cleansing experience. The brushes gently exfoliate and remove dead skin cells.

TFWA/FDFA Issue October/November 2013 60 61 October/November 2013 TFWA/FDFA Issue INSIDER The Estée Lauder Companies 2013 BCA Campaign: “We’re Stronger Together”

The Estée Lauder Companies “It’s no secret that when a breast Campaign was inspired by that same launched its 2013 Breast Cancer Awareness cancer is diagnosed at an early stage and passion and its potential to affect real (BCA) Campaign: “Let’s Defeat Breast is localized, 90 percent survive more than change in the lives of real people and Cancer. We’re Stronger Together.” on five years beyond their diagnosis. Yet, families who are touched by this disease. October 1. in many areas of the world, awareness Our goal is to have this year’s Campaign This year’s initiative is expanding lags tragically far behind, and stigma and resonate in every corner of the world, public focus beyond awareness of the access to care remain critical issues. In raise significant funds, empower people disease and encourages individuals around the U.S., despite widespread awareness to share their strength and bring us closer the world to take specific actions that of the disease, many women still fail to than ever before to a world without breast support breast health and move forward have potentially life-saving mammograms, cancer.” towards the ultimate goal of a world eat healthy foods and get enough rest “We are partnering again with Estée without breast cancer. and exercise—our Campaign tackles this Lauder Spokesmodel Elizabeth Hurley To date, The BCA Campaign has challenge head on,” he says. and our devoted World Pink Ribbon raised more than $48 million to support Central to the 2013 BCA Campaign is Ambassadors, several of whom will global research, education and medical a global social experience that is inviting take on more dynamic roles this year. services. This year’s BCA Campaign is people from all around the world to create New BCA Campaign social and digital committed to raising $5 million to support their own “Circles of Strength” comprised programs will feature a social experience breast cancer research, education and of friends, family, co-workers and loved that invites people from all around the medical services worldwide. ones to rally around any action — large world to create their own ‘Circles of “But Action doesn’t happen alone. or small — that might advance us toward Strength’ consisting of their friends, When we join together…We’re Stronger eradicating breast cancer all together. family, co-workers and loved ones who Together,” says William P. Lauder. These Circles will be incorporated can comment, share and rally around any More than two decades ago when into a larger, curated experience on action — large or small — that might Evelyn H. Lauder co-created the Pink BCAcampaign.com that will pull in advance us toward eradicating breast Ribbon and launched The BCA Campaign, thematic content from channels like cancer all together.” she was led by the knowledge that Instagram or Twitter, via the hashtag In addition, Estée Lauder will make eradicating breast cancer could “never be #BCAStrength. The goal is to enable a donation to The Breast Cancer Research done by any one person.” She envisioned people to feel “stronger together” within Foundation for the sale of the Limited a worldwide movement that empowered their own defined groups, and as part of a Edition Aveda Hand Relief with Rosemary people from Seattle to Shanghai. larger global community. Mint aroma in select Travel Retail locations “This spirit of unity and camaraderie Individual Circles can agree to make in the Americas during the month of is at the heart of our 2013 BCA Campaign; healthy lifestyle changes and join together October. Estée Lauder also introduced a it opens the door to an exciting new to raise funds for BCRF — a donation Breast Cancer Awareness edition of the era, one that expands our focus beyond of $50 funds approximately one hour of New Advanced Night Repair Synchronized awareness and sparks both action and long- critical, lifesaving research. Recovery Complex II paired with a Pink term commitment. This year, The Estée Fabrizio Freda, President and Ribbon Bracelet and charm, for sale in Lauder Companies’ employees, customers, CEO of The Estée Lauder Companies select Travel Retail locations in Europe, the retailers, doctors, researchers and many said, “Every year around the world, our Middle East and Africa. This year, the Pink other partners will come together in employees, consumers and retail partners Ribbon charm includes a touch of blue ‘Circles of Strength’ as we work to defeat come together with great enthusiasm to represent the approximately 1% of all breast cancer through action, education and and passion to participate in The BCA breast cancer cases in the United States that medical research,” said Lauder. Campaign. Our vision for this year’s are diagnosed in men.

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Among the new products being featured in travel retail from The Estee Lauder Companies in Cannes are: Estée Lauder Modern Muse Estée Lauder unveils Modern Muse, a new fragrance that is inspired by the intriguing duality of today’s woman and complements every aspect of her dynamic life. The Lush Floral Woody scent is a new concept in fragrance, composed of subtle contrasts and bold contradictions. Its innovative “dual- impression” structure invites women to connect with the fragrance through two contrasting aspects: Sparkling Jasmine Accord and a Sleek Woods Accord. “We built Modern Muse by carefully selecting every ingredient to reflect the personality, style and distinctive femininity of today’s woman,” said Karyn Khoury, Senior Vice President, Corporate Fragrance Development Worldwide, The Estée Lauder Companies. “The ‘dual-impression’ creative approach offers each woman the opportunity to connect with the fragrance in her own way. Some will focus on the sparkling floral elements of the fragrance, while others will view the warm, rich woodiness as the defining facet.” Available in the Americas as of September

Michael Kors Collection Designer Michael Kors launches his first global beauty lifestyle collection, three individual fragrances and color assortments, one to represent each of the Michael Kors woman’s changing moods. Sporty, Sexy, and Glam. “The Michael Kors sense of beauty is a heightened reality,” says Michael Kors. “It’s a way for women to accentuate each of their moods.” Three major fragrance statements and color capsules comprise the collection, with coordinating body and sun offerings for an all-over dewy, sun- kissed look. Available from October 2013.

Clinique: A Different Nail Enamel Six years in the making, Clinique introduces a pioneering innovation to the nail enamel industry: A Different Nail Enamel for Sensitive Skins is formulated to minimize skin sensitivity. It is dermatologist tested, ophthalmologist tested and appropriate for sensitive skins and sensitive eyes. The formula is balanced to maintain a high shine and streak free application, is quick drying and available is a wide variety of colors. A Different Nail Enamel for Sensitive Skins will be available from October 2013 at Clinique counters in Travel Retail locations worldwide.

Clinique Repairwear Laser Clinique developed Repairwear Laser Focus Serum to address lines and wrinkles, a leading skin care concern. The NEW Repairwear Laser Focus Smooths, Restores, Corrects – a newly reformulated serum that delivers twice the smoothing results as before, says Clinique. Containing new skin resurfacing technology that encourages gentle yet effective exfoliation to reveal smoother, more radiant looking skin, it is said to deliver 63% of the visible wrinkle reducing power of a dermatological laser in just 12 weeks. Available from now at Clinique counters in Travel Retail worldwide.

DKNY Be Delicious Skin Introducing DKNY Be Delicious Skin Hydrating Eau de Toilette, a first-of- its-kind innovation, each spritz of DKNY Be Delicious delivers all-over body skin-boosting benefits to optimize the look and feel of bare skin. Be Delicious Skin contains “Apple Fusion Complex”, a proprietary blend of ingredients that help moisturize, smooth and brighten the body for softness and a natural radiant glow. DKNY Be Delicious fragrance also introduces a new creative campaign staring model Marloes Horst. Available at selected Travel Retail locations in the Americas from October 2013.

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Elizabeth Arden goes South to Brazil New operation in center of São Paulo gives access to all channels of distribution

Gilles Vigeral, long a familiar figure O’Boticario. “There are a few small manufacture their own brands and have in the Americas travel retail scene for perfumeries and really one department more than 2,700 owned and franchised U.S. beauty brand Elizabeth Arden, has store for prestige fragrances,” says Vigeral. stores in Brazil. They only sell what they been managing distributor markets in the “If you only focus on this sector, you don’t manufacture. So in the end, that means Americas for Elizabeth Arden and now, really have a money making business. We the retail opportunity is reduced to less as of the beginning of this year, is also in think growth in Brazil requires playing than 25% of the market. And what we call charge of the company’s new Brazilian outside the traditional retail channel.” the prestige channel is thousands of small affiliate. Arden’s “recipe” for success entails perfumeries all over the country -- with “Establishing an affiliate operation in being present in all of the country’s quality that can go from A to F.” Brazil was a project that was five years in channels of distribution, he says. Vigeral says he is very pleased with the making,” Vigeral, General Manager, “You have prestige and you have the the results of the new operation, even after Americas Distributor Market & Brazil, mass, the drugstores, which are strong. being open less than a year: “We put a lot tells TMI. CVS Caremark acquired Brazil’s Drogaria of research and analysis into the market “Brazil is a very complicated market. Onofre chain just this year. And you also before opening. We mapped out all the It took nearly one year just to set up have e-commerce internet sales, which challenges. Once we decided to go ahead the office – which we moved into last are quite powerful. Brazil not only has and enter the country, we had to set up the summer.” the Sephora web but it has many smaller affiliate from scratch, recruiting people, “Inflation is more or less under control websites, which work quite nicely. and opening an office, which we did on but the tax and financial policies are very “And then there are Brazil’s direct July 1 in the center of São Paulo. And the complicated – on all companies not just sales giants like Natura and Jequiti. Direct team is really what we envisioned—it is foreign companies – and each state has sales are critically important in Brazil. You totally marketing, so we can really focus on different policies. You must consider all need to have a portfolio that will allow you our strength, which is sales and marketing.” the tax implications of an action from sales to go into each one of these channels of Sales have been extremely promising to supply chain and distribution before distribution. And this is where I think that to date, says Vigeral, with exceptionally proceeding. But if you have done your Arden has good potential.” strong results from Arden’s Britney Spears planning correctly it goes much smoother. Elizabeth Arden plans to make inroads fragrance franchise. We did our research, went slowly and in all channels and in fact has signed an “We are very happy with our results came in with a very focused strategy,” he agreement with the fast-growing, catalog with Britney Spears, which is one of the explains. and direct sales retailer Jequiti, which top 3 brands sold in the market. Vigeral believes that Arden entered is owned by a big local Brazilian media “We have developed a specific the market at a good time: “Brazil may group, Grupo Silvio Santos. strategy which allows us to be present not be as good a market as it was two or “Direct sales generate more than 50% in each channel of distribution. The three years ago, but still gives considerable of Brazil’s beauty market. If you are not Justin Bieber fragrances are also doing opportunities for a company such as there, you are nowhere in Brazil. The other extraordinarily well, followed by a nice Arden.” 50% is in retail sales, and here there is only response to the Taylor Swift brand. And Brazil’s prestige beauty business one player which controls 50% of the pie,” we will soon launch our flagship Elizabeth – on the retail store level – represents a says Vigeral. Arden brand, including the new Untold very small percentage of fragrance sales “O’Boticario represents close to 50% fragrance.” when excluding one of the local giant of the sales in the retail channel. They LP

Untold by Elizabeth Arden – a multi-faceted “luxurious and modern rendition of a sensual floral composition” is Elizabeth Arden’s biggest fragrance pillar launch in nearly two decades, and began shipping this summer. Untold is a modern interpretation of a woman, which will bring younger consumers to the franchise. The scent, created by Clement Gavarry of International Flavors & Fragrances is built around five facets of a woman, reflected also in the multi-faceted bottle: vibrant (pink pepper and bergamot), unpredictable ( pear and blackcurrant), refined ( gardenia and jasmine ), mysterious (patchouli and sandalwood), and sensual (amber and musk).

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Consumers love Versace Eros reports Essence Corp.

Versace’s Eros, the brand’s very sexy men’s fragrance and first men’s fragrance launch in five years that was unveiled in Cannes last year, has been a resounding success story since then in the Americas travel retail market. “The fragrance remains a top seller for many consecutive months,” says Heloisa Pereira, Brand Manager for Versace at Miami-based Essence Corp., which distributes the brand in the Americas travel retail market. “In fact, it was the #1 selling men’s fragrance in Maggy’s in Aruba for both August and September.” She adds: “Eros, the God of Love, has the ability to make people fall in love with his bow and arrow. Versace Eros has the same ability. Consumers are falling in love with this scent that is UltraFemme in Cancun sensual on the skin and has a unique aura,” she tells TMI. “Versace Eros interprets the sublime masculinity and you’ll find his epic image dominated by an extremely virile and vigorous man surrounded by a unique shade of custom-made blue at the points of sale,” she says. The fresh, clean scent features a unique blending of Mint Leaves, Italian Lemon Zest and Green Apple, with a sensual heart developed by fusing intriguing and enveloping notes of Tonka Bean, Amber, Vanilla and Geranium. Cedarwood, Vetyver and Oak Moss dry down to an intense base.

Penha in Aruba

Vanity First in St. Martin DFA in Punta Cana Burberry captures the music vibe with Brit Rhythm for Men

Burberry’s latest launch, Brit Rhythm for men, combines the themes of scent and sound, inspired by live music and the youthful party scene. “Sexy and provocative, Brit Rhythm is inspired by the exhilaration and adrenaline of live music and the electric energy of the crowd,” says Christopher Bailey, Burberry Chief Creative Officer. Burberry Brit Rhythm is launching now in the Americas travel retail market through Essence Corp. with important displays in Puerto Rico, Santo Domingo, St Thomas, Curaçao and Grand Cayman airports, according to Essence Corp. Brand Manager Clarisa Orlanski. “We currently also have an animation going on with International Shoppes at JFK, Philadelphia and Boston airports,” she tells TMI. The fragrance opens with top notes of fresh basil verveina, spicy cardamom and a shot of juniper berries, followed by a heart of leather, patchouli and styrax resin. The sexy base notes include cedarwood, incense and warm tonka bean.

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Photographer to the Stars John Russo launches a luxury scent

One of the newest luxury fragrances in fresh and clean.’ I then came up with the the celebrity panorama has been created by idea to create two amazing scents that are a photographer to the stars who has become not too heavy, long lasting and very fresh.” a star himself. The result, which he says took several Hollywood-based John Russo, one years to perfect, is Photograph. of the top celebrity/fashion photographers Photograph Women is described as in the world, has launched a men’s and an intoxicating, watery, fruity, white floral women’s set of fragrances called, fittingly, scent that is very feminine and clean. Photograph. The top notes are freesia, melon, peach, Russo’s work has been featured on grapefruit and lemon. Its middle notes are covers of Vogue, Elle, Harper’s Bazaar, comprised of muguet (Lily of the Valley), Glamour, Marie Claire, GQ and Esquire, rose, lavender and gardenia with musky, and his famous subjects include such amber dry down. luminaries as Brad Pitt, Gwyneth Paltrow, Photograph Men favors an earthy, Angelina Jolie, Julia Roberts, Leonardo woody vibe with top notes of mandarin, DiCaprio, Jessica Beil and George orange, bergamot, lemon and bay oil, a Clooney. His advertising campaigns range heart of lavender, ginger, leather and clove from Hugo Boss to Bombardier Jets. with a musky, smoky tobacco base note. Russo says that his fragrances started Russo shot the campaign for John Russo out as promotional gifts for his famous Photograph last December in Paris, photography subjects. featuring two Brazilian Supermodels, “On shoots I would always hear Gui Fedrizzi (the new Face of Guess) and Glamour” with a modern twist. celebrities saying ‘I wish I had a fragrance Marilia Moreno. Photograph launched first in the I could wear every day that was not too His scents and packaging, he says, boutiques of the exclusive Montage Hotels, heavy and something that always smelled embody the spirit of “Old Hollywood as a feature fragrance. It is now rolling out to major cosmetics and beauty retailers, with Russo personally touring to promote the fragrance, says sales director Miguel Vargas. Russo does not limit his photography work only to the rich and famous, by the way. In addition to launching his new fragrance, he is in the midst of producing a charity book called “100 Making a Difference.” John has been working with CNN Human Rights correspondent Elizabeth Chambers on the book, which is a collection of stories about passionate human beings who are dedicated to improving the lives of others through their charitable work. Russo has photographed Michelle Obama, Maria Shriver, Marlo Thomas, Mark Wahlberg, Jenny McCarthy, Blake Mycoskie, Madonna Coffman, Prince Edward, Goldie Hawn, Jeff Bridges, and Sophia Loren for the book. One hundred percent of the proceeds go to charity. The book is expected to be finished by the end of 2013. For a glimpse of the dedicated subjects of the book, visit www.100makingadifference.com For more information about the John Russo fragrances, please contact Miguel. [email protected]

TFWA/FDFA Issue October/November 2013 68 be very. like perry.

introducing a new 69fragrance October/November for men 2013 TFWA/FDFA Issue INSIDER

Demeter captures the essence of New York City in the Nigel Barker Signature Collection of Fine Fragrances

Demeter Fragrance Library has The Nigel Barker Signature Wall Street. The third captures the essence launched a new category of fragrance Collection is inspired specifically by of the City as New York Nights. offerings, with a collection of scents based Nigel’s photography, says Crames, and “Demeter, meanwhile, perfectly on celebrity fashion photographer Nigel framed by Demeter’s unique approach to captures the attitudes and character of Barker. fragrance, which is grounded in the scents different New York neighborhoods and For the past 20+ years, Nigel Barker that surround us every day. events, in the way only Demeter can. Each has been involved in the worlds of “So it is natural that New York fragrance, while complex, is grounded fashion, beauty and entertainment. City, the home base for both Nigel and in an olfactory reality that represents its The internationally renowned fashion Demeter, provides the subject matter namesake in a manner anyone can connect photographer, best known as a judge on for the first three Signature fragrances,” with and understand,” says Crames. “America’s Next Top Model,” is now the Crames tells TMI. Each scent contains concrete host of model competition show “The Each of the sleek, chic black bottles elements of the aspect or neighborhood Face.” in the collection is wrapped on three sides of New York it represents, and in Mark Crames, president of Demeter by Nigel’s very personal photography, that the traditional Demeter style, all the Fragrance Library, says that Barker draws is said to capture the energy and infinite fragrances are linear, meaning they on all these threads for the launch of the possibilities that New York represents. express their nature immediately, and do Nigel Barker Signature Collection of Two of the first three fragrances in the not change over time, despite their more Fine Fragrances by Demeter Fragrance collection are named after iconic New complex construction and Eau de Toilette Library. York City locations—Times Square and formulation.

TFWA/FDFA Issue October/November 2013 70 INSIDER captures the essence of New York City in the Nigel Barker Signature Collection of Fine Fragrances

NEW YORK NIGHTS: If the Signature TIMES SQUARE: Many consider Times energy, but layered with depth and Collection has a Signature fragrance, this Square to be the center of the world; subtlety, capturing the quintessential is it. certainly many New Yorker’s agree. strength and diversity that Times Square “Nigel met the challenge of visually Crames says that the steep challenge represents,” says Crames. capturing the style, sleekness and was “capturing the 24/7/365 hustle and raw power of New York City at night, bustle of the beating heart of the City that WALL STREET: “This is what Money defining in imagery the essence of Never Sleeps, in both imagery and scent. should smell like,” says Crames. “Wall New York. Demeter met the olfactory Nigel created the perfect impressionistic Street represents the epitome of power challenge with a unique and very sensual image of the bright lights of Times and wealth, the very name itself being blend unlike anything else: sexy Ylang Square, defining its infinite sense of synonymous with banking, money and Ylang and Red Poppies, earthy and spicy possibility. Inspired by Nigel, we sought finance. Nigel perfectly captured the Tobacco Leaves, sweet and sensuous to capture the essential energy of Times essence of Wall Street in a fabulous Black Vanilla Bean, all offset with Square, and its disparate and conflicting image of the iconic Wall Street Bull. That powdery Coca Petals, a touch of Cool elements, by creating an experience of image inspired us to use Wall Street as the Frost, and the clean finish of Vetiver,” both synchonicity and conflict.” masculine entry in the initial Collection, says Crames. The fragrance features Tuberose, with a unique blend of Vanilla Bean, “We captured the endless Neroli and Ylang Ylang intertwined with Black Peppercorns, Herbs and Oakmoss possibilities of a New York night in Patchouli and Vetiver. highlighted by intense Patchouli, and scent,” he says. “This fragrance is bursting with subtle citrus nuances.”

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Alex and Ani: Made in America with Love Hot U.S. jewelry brand brings its positive energy to travel retail

In its Mission Statement, Rhode that tells the Island-based lifestyle brand Alex and Ani story of the notes that it offers eco-friendly, positive brand and energy products that adorn the body, the meaning enlighten the mind and empower the spirit. behind the Pretty words, but the symbology- symbol on the laden, patented expandable bangles, charm. And designed by Carolyn Rafaelian, Founder we have more and Creative Director -- who comes inflight listings from a family of jewelry makers -- and coming,” says handmade in America from recycled Kalweit. materials, are appealing to wearers from In the the U.S. to Portugal to Japan in a big way, U.S., Alex and and paving the way for an incursion into Ani currently the international market and travel retail operates over channel. 35 of its own According to Dr. Christian Kalweit, stores, has Vice President of International Business over 1,200 Development at Alex and Ani, named after retail points- Rafaelian’s two oldest daughters, the Alex of-sale (POS) and Ani Path of Life charm bangle is the and is sold in Bloomingdale’s, Nordstrom, top selling product in TAP Portugal’s watch Henri Bendel and fine jewelry stores like 2011 to build the international business, and jewelry onboard listing. The brand is Hannoush chain. will have a 10-person staff by the end of also available in Canada, Japan, Ireland “It is very interesting that our fashion this year, half handling marketing and (including in Dublin Airport), Spain, and jewelry is listed in a store like Hannoush, public relations, business development the UK, as well as in South Korea and the which normally only carries fine, precious and sales, based out of the company’s Philippines, Egypt and Kuwait. It also has jewelry,” says Kalweit about the brand, in recently renovated SoHo showroom and an impressive presence in the Caribbean. which individual bangles begin at around office in New York City and the rest of the “We created an exclusive expandable $24 and range to about $158 for a set of staff handling operations and sales, based bangle set of 3 for the airlines, featuring a bangles. in the Cranston, Rhode Island corporate lifestyle image with a model, a narrative Kalweit, who joined the company in headquarters. Describing itself as a lifestyle brand, every Alex and Ani product is handmade from recycled materials in America and available in different finishes, Russian Gold or Russian Silver. Every bangle is meant to tell a story. “Alex and Ani jewelry is versatile, it can reflect your mood, making it also very personal for the wearer. Customers are loyal to the brand because the symbols of the charms resonate with them. Our patented sliding clasp mechanism fits any size wrist. Customers wear bangles that reflect their personality and individual traits and often stack the bangles,” explains Valeria Severini, international business development manager. The charms cover the gamut of categories and interests, from classic symbols such as the Om, Peace, Four Leaf Clover, Love and Tree of Life symbols, A compact version of the Ani and Alex symbol wall captures the spirit of the brand in a shop in Panama.

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to esoteric symbols of Claddagh, Seven Ani bangles is an important element in its is a priority. It offers us great brand exposure Swords and Lotus Peace Petals; from appeal, Kalweit explains. and is a strategic market for us,” he says. “We religious symbols, to universal 3D shapes; “The price point appeals to customers. hope to be in Cannes next year and develop from collections such as Take Flight, They are drawn to their meaningful charm new business relationships. We will handle Because I Love You and Spiritual Armor to and add to their collection. Admirers can be Duty Free ourselves, it is like a territory for Places We Love, the bangles have a broad seen wearing as many as 18-20 Alex and Ani us.” and growing appeal. Alex and Ani has even bangles,” he says. As it is, the company has been in teamed up with various licensee partners, Looking at the international market, discussions with some of the largest Duty such as Disney, to create charm bangles, Kalweit says that for the short term, the goal Free and travel retail groups, among others, among others, under licensing agreements, is to further develop the markets in which with positive response. It is also regularly and has an entire collection of bangles that they are now, and to continue finding the best contacted by international distributors looking benefit different non-profit groups through distributors and business partners to enter to represent the brand overseas. their Charity by Design division. new markets. Long-term, the company would For more information about carrying the How wide is the appeal? According to consider setting up its own international Alex and Ani brand please contact Dr. Kalweit a company profile in the April issue of INC. operations. directly at [email protected]. magazine, Alex and Ani grew from $4.5 “Travel Retail fits in this strategy and million in sales in 2010 to an impressive $80 million in 2012. This year, the company is Special Furniture for Travel Retail: projecting revenues of $200 million. While the Alex and Ani boutiques require “The fact that people spend time significant space to showcase all the choosing the bangles seem to give it some available symbols, and use ‘Bangle intrinsic value,” says Severini. “It makes our Bartenders’ trained to spend time with customers fall in love with the brand.” customers to help create meaningful sets, “We get calls, emails and letters all Kalweit’s group has created a customized the time and are constantly reaching the self-serve tower (Pretty Girl) for venues customer on a personal level, creating a very like airports and cruise ships that takes up strong connection. We have also published a much less space yet incorporates all the book, Path of Life: Why I Wear my Alex and elements that are on the larger symbol wall. Ani, that explains the meaning behind each The unit features LED lights and an iPad charm and recounts individual, personal with interactive elements so that people can stories of our fans, explaining the meaning browse through the different symbols, learn behind their collection,” adds Kalweit. about the meanings of the symbols, and “The meanings and the symbols are create their own sets. It can hold as many the fruits of very deep research by Designer as 1,200 pieces and showcase 100 different Carolyn Rafaelian, ” says Severini. “All of SKUs. our boutiques and many of our shop in shops “We have found that where people really feature a symbol wall, displaying the three understand the full concept, sales are words behind the charms. We have a definite much higher. Basically, we are trying to spiritual side to the brand, which adds to the create the same experience without the strength of our appeal and is a strong point ‘Bangle Bartenders’ sales associates for of differentiation from other brands.” the consumer in the airport,” says Valeria The accessible price of the Alex and Severini.

Alex and Ani makes inroads in the Caribbean through DGI Group

In a world that is dominated by large Colombian Emeralds. It also enjoys a very tapped into something that is incredibly commercial groups it is important to keep big business in the Puerto Rico domestic attractive; it almost has an iconic power to finding interesting brands and projects that market. it,” says Demir. need somebody to bring them forward into “We are listed in selective distribution “Since 2008 there has been a need the marketplace, says Haygo Demir, president with many fine jewelry retailers, and have for jewelry retailers to have products at of DGI Group, which distributes luxury positioned the brand, within a fine jewelry accessible price points. But Alex and Ani goods and jewelry to cruise ships and travel environment. We may not be using gold, is much more than well priced, it has a retail venues throughout the Caribbean and but we feel that our message is as precious meaning to it. The meaning allows women Alaska. DGI is seeing huge acceptance of the as some of these precious metals used by to code their own story with it. It has Alex and Ani jewelry in this region. other brands,” says Demir. charms and symbols and meanings that The brand is currently listed in more “I saw something special with the allow someone to tell her story and the than 30 Caribbean travel retail doors, with Alex and Ani brand since I first discovered story of her family, and reflect her own a presence is all the key tourism markets it several years ago. I think that designer interests, and I think this has resonated and stores like Little Switzerland and and company founder Carolyn Rafaelian deeply with the consumer.

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One on One with Rüdiger Behn, Managing Director Waldemar Behn aims to double volume of new acquisition DANZKA Vodka in next five years

DANZKA Vodka – Vodka with Attitude - is duty-paid markets. a premium brand totally committed and “First of all we want devoted to this business.” to make sure that all current Speaking to Travel Markets Insider DANZKA accounts are about the award-winning Danish vodka satisfied with Behn as in the aluminum bottle, Behn said the their new supplier. The purchase of DANZKA vodka plays an hand-over transition important role in the company’s overall period has been portfolio, particularly in duty free/travel quite smooth so far. retail, where DANZKA has strong sales. Nevertheless, our “With the purchase of DANZKA aim is to constantly Vodka we were able to close two open gaps improve our services simultaneously: We closed the vodka- to our customers gap in our portfolio of unique brands and at every level. The Rüdiger Behn, we reduced dependency on the German second task is to Waldemar Behn GmbH Managing Director market. Furthermore, DANZKA Vodka has define a very clear a strong market share and a high reputation brand–message, German family liquor company in the growing DF/TR market,” says which will be Waldemar Behn GmbH, fresh off its Rüdiger Behn. communicated at acquisition of DANZKA vodka, the largest “DANZKA Vodka will open up doors every single point of investment in the 121-year history of the for a couple of our other unique brands sale. company, is bringing a full range of its in several markets. Specifically, Dooley’s “In the middle award-winning spirits to its new larger Original Toffee Liqueur, certainly the and long term we will stand at the Tax Free World Exhibition in most awarded cream liqueur in the world, work on increasing Cannes. will benefit from the strong tail-wind of the distribution of “We are very proud to present DANZKA Vodka.” DANZKA Vodka in DANZKA Vodka that we acquired late Behn reports that the transfer of the DF/TR market as spring 2013,” says Rüdiger Behn, Managing ownership from Belvedere Duty Free well as investing in a Director. “We have doubled our stand size to Waldemar Behn GmbH has so far few strategic targeted as to be able to present DANZKA Vodka in gone smoothly and the new owners have duty-paid markets,” the way we wish it to be seen by the Duty clear plans to expand the distribution of Behn says. Free and Travel Retail business worldwide. DANZKA in both duty free and specific With his last name Behn in the name of the company, Rüdiger says there are definitely advantages to being a family- owned company in the marketplace. “There are two core advantages working with a family-owned company: long-term-perspective and very short-term decision making,” he tells TMI. “In a lot of listed big companies, it’s just the opposite. Furthermore you can rely on the credibility and hand-shake- quality of the owners and consequently of the decision-making managers,” he says. “Even in a five-year period of time Waldemar Behn will be a middle-sized family–owned company offering the market a handful of unique brands and a fair alternative to key players. Should the market condition be favorable, our aim should be to double our current volume.” Even though DANZKA Vodka is a DANZKA Vodka at Copenhagen Airport in August recent purchase for Behn, Rüdiger says

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100062PTR_16_5x11_6_TMI.indd 1 9/30/10 4:30 PM International Duty Free announces the further expansion of its warehouse facilities, moving to a new location with 35,000 square feet of space, 7,000 of which are temperature controlled! Our new office and warehouse is located at Flagler Station, a new commercial complex near all major highways connecting Sea Ports, Airports, and Shipping Lines in South Florida. We continue to be the best Warehousing and Logistics provider capable of quickly reacting and adjusting to the needs of our customers; we are also warehousing the GWP/POS for major brands, allowing for product (liquor) to be shipped with promotions in a timely basis to the travel retail shops. Also, we have the ability to clear Liquor and Tobacco samples that are shipped from overseas brand owners for trade shows and conventions.

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www.intdutyfree.com 77 October/November 2013 TFWA/FDFA Issue INSIDER

the company has been following the brand “DANZKA Vodka has been the since its beginnings, and hopes to use that biggest investment during the 121 years familiarity to bring the vodka to new levels of our company. We have observed the of sales and awareness. development of the brand from its very first days in 1989. Being owned by several companies during its short life-time, the brand was not able to reveal its true potential. We are confident that we can bring the brand to the level where it could have been already.” “We have been working hard to upgrade and fine-tune the communication platform to reflect the true attitude of DANZKA Vodka,” added Rüdiger Behn. “We look forward to presenting this to all our friends and customers.” The DANZKA Vodka brand will be displayed at stand H52, Green Village, together with a focused range of Waldemar Behn’s other unique brands, dedicated to Torben Vedel Andersen and Rüdiger Behn The DANZKA Vodka Football Festival Global Duty Free and Travel Retail. shake hands bringing “Mr. DANZKA” to Edition will be featured in select duty Waldemar Behn GmbH. free markets in 2014.

“Mr. DANZKA” comes to Behn

When Waldemar Behn GmbH quality appearances in Cannes in October, where to find us – and we appreciate being purchased DANZKA vodka in spring 2013, at IAADFS in March 2014 and TFAP back now in Ontario but hopefully in other it also brought along “Mr. DANZKA” in Singapore in May, we will be well provinces as well during and after FDFA. Torben Vedel Andersen as Global Sales underway. In five years from now, I hope We have teamed up with Peter Sainsbury’s Director. Andersen, who has a long history and believe we will have doubled the DF Company and are also working our with the brand, tells TMI that he thinks the global volume, and then I can call Mr. Dooley’s and Salzburg/Nannerl lines in new ownership will propel Danzka to far Behn and tell him I want to go on part- Canada and look forward to attend FDFA in greater levels of success. time,” he says. November,” says Andersen. “From my point of view, the sale Duty free will be at the center of “DANZKA Vodka Limited Editions to the Behn group means that DANZKA Andersen’s ambitious goals for DANZKA have over the years been celebrating Vodka finally has found a home; the brand vodka. Design, Denmark, The World and now we is not being sold again. We can think long “The Duty Free Channel has always wish to celebrate the greatest sport on Earth term and have real visions where we wish been a cornerstone for DANZKA Vodka with our Football Festival Edition that will to see DANZKA Vodka years ahead. With and will continue to be top priority whilst be featured in selected duty free markets Waldemar Behn GmbH, DANZKA Vodka selected core markets will enjoy much in 2014. This will be the most colorful is the Global Jewel in the Crown –and that more focus. DF/TRE is core and in the DANZKA Vodka edition ever!” will be clearly visible –hopefully already in future our unique duty free peak position Overall, Andersen says DANZKA Cannes,” says Andersen. will be aligned to achieve more balance vodka fits in very well with the entire Behn After moving over to the company in with domestic market efforts,” he says. portfolio. May, Andersen says he has been helping “DANZKA Vodka is a global brand “Waldemar Behn GmbH’s portfolio transition the brand to its new German in Duty Free and Travel Retail, which by is loaded with creative brands, Kleiner owners. far is our core market at present, but we are Feigling in Germany is the Party brand, “My short term goal was to growing nicely in Russia, Vietnam, Korea, Dooley’s Cream liqueurs are fantastic finalize the transition with all our good Peru to mention some.” quality and the (especially with the new customers. This has been done without In the Americas, DANZKA vodka development) packaging is contemporary, any loss of any account with great help has reentered the Canadian duty free young, fresh dynamic, Figenza the Ultra- from an outstanding back office team in market and has a special DANZKA vodka premium Vodka, based on Figs –total new Eckernförde. The next step is to boost promotion tied in with next summer’s thinking. In this family, DANZKA vodka DANZKA Vodka in core markets and World Cup in Brazil. – Vodka with Attitude - fits like a hand in fill the gaps where we do not sell yet. In “We re-entered the Canadian duty free a glove. We are truly A World of Unique this we are progressing well and with market because we get many requests asking Brands.”

TFWA/FDFA Issue October/November 2013 78 LIVE COMFORTABLY. DRINK RESPONSIBLY.

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©2013 SOUTHERN COMFORT. SOUTHERN COMFORT IS A 79REGISTERED TRADEMARK. ALL RIGHTSOctober/November RESERVED. 2013 TFWA/FDFA Issue INSIDER

Bourbon, bourbon everywhere and every drop to drink On the Kentucky Bourbon Trail with Michael Pasternak

Woodford Reserve bourbon pouring straight out of the barrel at Woodford Reserve Distillery, a National Historic Landmark.

American whiskey, with bourbon In travel retail, companies like More than 500,000 people visited setting the trend, had one of its best years Brown-Forman, Beam Global, Campari, Kentucky Bourbon Trail distilleries ever in 2012 with the momentum not and Diageo, among others, are selling their last year, the first time that tourism slowing down in 2013. American whiskeys to consumers in all attraction has broken the half-million Look on the shelves on stores both in corners of the world, but these whiskeys all mark since its inception in 1999. The the U.S. domestic and travel retail stores began in America, and more specifically in new attendance record of 509,292 is around the globe and you will see bourbon Kentucky (except for Tennessee Whiskey a 15 percent increase over 2011, with and other American whiskeys enjoying Jack Daniel’s). travelers from all 50 states and more than increased visibility and space. It is almost not surprising that along 50 countries making the journey, said In 2012, for the first time in years, with this bourbon boom has come a boom Adam Johnson, Director of the Kentucky whiskey sales increased faster than those in bourbon tourism: a growing number Bourbon Trail experience. “We are of vodka, gin, tequila and other spirits, of people are traveling to see where their happily overwhelmed,” Johnson said. according to the Distilled Spirits Council favorite whiskeys are created. “Our legendary distilleries are doing more of the United States (DISCUS). Last year’s The Kentucky Bourbon Trail, than ever to welcome Bourbon visitors 3.6 percent growth in sales of U.S. whiskey officially made up of seven distilleries and give them a first-hand, educational was the biggest increase in 30 years, and (with one more on the way) in the state and interactive look at the art and science nearly 17 million 9-liter cases of Bourbon where more than 95 percent of the world’s behind our timeless craft.” were sold in the United States, generating bourbon supply comes from, also had a The Bourbon journey features Four over $2.2 billion in revenue for distillers. record year in 2012. Roses and Wild Turkey in Lawrenceburg;

Stills at the Maker’s Mark Distillery, one of the stops on the Tourists line up outside Maker’s Mark in May to Kentucky Bourbon Trail. Photo by Christophe Jammet. take a tour of the distillery.

TFWA/FDFA Issue October/November 2013 80 Please visit Master Distiller and Spirits Historian, Chris Morris, at the Brown-Forman Stand (M70, Green Village) for a spirited discussion on American Whiskeys. He will be conducting daily American Whiskey Master Classes during the following times;

Monday 21st • 12 – 1pm Tuesday 22nd • 2 – 3pm Wednesday 23rd • 12 – 1pm

Please Experience American Whiskey Responsibly. 2013 Brown-Forman, Jack Daniel’s, Old No 7, Silver Select, Gentleman Jack and Woodford Reserve are registered trademarks. All rights reserved.

81 October/November 2013 TFWA/FDFA Issue INSIDER

The Kentucky Distillers’ Associations “passport” The tour of the Maker’s Mark Distillery ends program rewards visitors with stamps when they with a taste of bourbon from the famous red-wax visit each of the seven (soon to be eight) distilleries sealed bottle. Photo by Christophe Jammet. that make up the Kentucky Bourbon Trail.

Heaven Hill’s Bourbon Heritage Center Since purchasing the Wild Turkey of stills, barrel warehouses, and related in Bardstown; Jim Beam in Clermont; brand in 2009, Gruppo Campari has made infrastructure to support the expanding Maker’s Mark in Loretto; Town Branch significant financial commitments to the operations. in Lexington and Woodford Reserve distillery’s operations and its employees In travel retail, Woodford Reserve in Versailles. Heaven Hill’s new Evan that have surpassed more than $100 and Jack Daniel’s are both part of Brown- Williams Bourbon Experience will be the million. In 2011, the Company unveiled Forman’s American Whiskey portfolio eighth official Kentucky Bourbon Trail stop a $50 million expansion at the distillery, along with its flagship brand Old Forester. – and the first in Louisville – when it opens more than doubling the plant’s production Brown-Forman has recently made an later this year downtown. capabilities. This was coupled with the effort to place its American whiskeys front According to the Kentucky Distillers’ opening of several new barrel warehouses and center in consumer’s minds in travel Association’s “passport” program, which over the past several years. In 2014, Wild retail locations throughout the world. rewards visitors with stamps from the Turkey will open a new state-of-the-art Earlier this year, the world’s first Bourbon Trail distilleries, 18,360 people Visitor Center. Jack’s Bar & Grill opened in Dubai visited all seven destinations last year, a 56 This summer Brown-Forman International airport. In September, Brown- percent increase from 2011. A University Corporation announced that it intends to Forman expanded its American whiskey of Louisville economic study estimated that expand the Woodford Reserve Distillery push into the UK with World Duty Free each person who completes the tour spends to meet expected growing global demand Group with the opening of American $737 on average. for its super premium Woodford Reserve Whiskey bars in Heathrow, Stansted, The Kentucky Bourbon Trail was even Kentucky Bourbon. The more than $35 Gatwick and Manchester Airports. included in National Geographic’s Drives million investment includes the addition of International Shoppes has embraced of a Lifetime Series. CNN International last three new warehouses capable of housing American whiskeys with space at JFK year named visiting the distilleries on the more than 165,000 barrels of bourbon. dedicated to Brown-Forman’s American Kentucky Bourbon Trail tour as one of the More than 135,000 tourists visited whiskeys, as well as Beam’s portfolio of “10 Classic American Experiences.” Woodford Reserve in 2012. bourbons, and Campari’s Wild Turkey. With bourbon hotter than ever, the While not technically a bourbon and With Maker’s Mark, Knob Creek, Bakers, bourbon companies are investing in their not from Kentucky, Brown-Forman’s Basil Hayden’s, and Bookers, Beam’s distilleries for both tourists and to increase Jack Daniel’s distillery will be expanding portfolio of super-premium bourbons will levels of production. also in response to global demand for its also be an increased focus for the company Four Roses, Jim Beam and Maker’s Tennessee Whiskey. It received 250,000 in travel retail, said Antony Kime, Beam Mark unveiled new and improved tourism visitors in 2012. The more than $100 EMEA Travel Retail & Licensing Business experiences in 2012. million investment includes the addition Manager earlier in the year.

Right: A wall devoted to American Bourbons in International Shoppes’ JFK Terminal 1. The author dips his own bottle of Maker’s Mark Center: In September Brown-Forman opened American Whiskey bars in Heathrow, Stansted, Gatwick in red wax at the Maker’s Mark Distillery gift and Manchester Airports with World Duty Free. shop. Photo by Christophe Jammet

TFWA/FDFA Issue October/November 2013 82 INSIDER

83 October/November 2013 TFWA/FDFA Issue INSIDER

Pernod Ricard: Maintaining momentum on the “travel trail” Pernod Ricard Americas Travel “We see some challenges, but we Retail’s Antonio Suarez has new also see some great opportunities for us. responsibilities since becoming Brazilians like to travel. Duty free arrivals Commercial Director this fall, but he also represents a considerable savings to them has a clear vision of how his company can versus what they spend in their domestic maintain its momentum going forward. markets. That business will still be there. Through its portfolio of duty free exclusive “On the inflation/devaluation side we products, innovation and the “travel trail,” have challenges. On the positive side we Suarez says Pernod Ricard is in the perfect are getting ready for the World Cup. We position to increase its duty free business in are working with Dufry in preparing for the region. the World Cup. They are in preparations to “We are really excited with the open a new store and terminal in Guarulhos momentum we have. We finished last fiscal Airport.” Pernod Ricard ATR’s Antonio Suarez and year with very high single digit/almost In North America, airport construction Franck Lapeyre at the launch of Chivas double-digit growth versus the previous has also negatively affected Pernod Brothers Blend last year in Miami. year. Fortunately a lot of that growth is Ricard’s business, says Suarez. being driven by our duty free business,” says “Airport remodels in JFK and LAX advantage of the “travel trails.” These Suarez. “This region made a very important primarily are impacting business. There has are routes the company has identified contribution, not necessarily so much in been a shuffling around of terminals. We with particularly strong travel patterns volume, but in value. I think we are taking are optimistic that the year will finish fine, among specific nationalities. The back the right approach with premiumization, and but right now the challenge is what can we and forth travel between New York and by raising our prices a bit.” do to make up some of that lost business?” the Dominican Republic is the first route In his new position, Suarez is he says. Pernod is targeting, where the focus is on managing all the duty free business in the Pernod Ricard is looking to duty Chivas Brothers. Americas for Pernod Ricard. He has a team free exclusives and, for the first time, a “We know there are specific trails. We of eleven key account managers throughout duty free exclusive merchandizing unit, to know that the JFK-Dominican Republic- the Americas who works with the major provide new sales opportunities. JFK route is important because we know clients on a day to day basis. “We are one of the few companies the number of Dominicans that live in New “My responsibility will be to seek that has a duty free exclusive in Glenlivet, York and how many flights go back and out new opportunities for the future, and in Chivas, in Absolut, in Ballantine’s. forth every day.” discover how we can drive their business, What if we consolidated all these duty free Suarez says the goal is to touch the our business, their value and our value exclusives and merchandize this concept consumer at all points along the way together,” he says. together?” he says. including the departure business, the One of the largest challenges for “Consumers, especially international inflight business, and the arrival business. Suarez and Pernod Ricard is the currency travelers, are always looking for duty free “Working with our partners with Pernod exchange situation in Brazil. exclusives. I think we will still be able to Ricard USA in New York, specifically in “For the last few years Brazil has been brand correctly with the merchandising the Washington Heights area, we are going very important to our business, especially units. If travelers are looking for duty free to potentially activate in the on-premise and since the exchange rate favored Brazilians exclusives, for things that are unique, give the off-premise. We will also activate the and Brazilians were really traveling to them what they want, and put it together in off-premise in Santo Domingo, which we the U.S. and back. Because of the duty one area.” manage. We are taking all the points on the free arrivals business and the allocation The company will be offering the consumer journey and trying to develop that they are allowed it was great for us. The duty free exclusive merchandizing unit in business of the travel trail. Real definitely has taken a turn from last Cannes and in Orlando. “It is something that would tie the summer to this year. It is not expected to “The retailer could potentially create a consumer between what they are doing at get any better any time soon,” he says. duty free exclusive area, an area within the home in Washington Heights, what they are Even with a weaker Real, Suarez is store where consumers can get items that doing at the airport, on a plane, when they optimistic about the Brazilian consumer. they can’t get back home. It goes back to arrive, when they are in the Dominican innovation. It may work; it may not work. Republic. We are trying new ideas.” “We are trying to solidify the equity The just released duty free exclusive of the brand of Chivas. If you drink Chivas Absolut Amber is another innovation. in New York, or if you buy Chivas in “Absolut Amber is extremely New York, you can buy it at the airport, innovative in terms of challenging the you can buy it on the plane, you can buy vodka category. In my opinion Absolut it on arrival, and you can buy it in the Amber is a game-changer. And I am proud Dominican Republic and vice versa. We that it is being launched in duty free.” don’t want to lose the consumer anywhere Pernod Ricard also wants to take along that trail.” Absolut Amber at JFK T7 with Duty Free Americas

TFWA/FDFA Issue October/November 2013 84 INSIDER

Bacardi GTR focuses on premiumized innovation

Bacardi Global Travel Retail has commercial growth and long term growth. airport or the border shop business, is to been given a much clearer role within the We are trying to give the traveler a be the best strategic partner we can with organization of Bacardi, acting as both a different reason to purchase other than just the Brazilian domestic business. We work test market and a showcase for its brands, the traditional one of price. This message very closely with them regarding their says Leigh Irvine, Regional Director- must be positioned the right way and we brand plans and strategies for the year, and Americas, Bacardi Global Travel Retail. are certainly not in the business of trying to dovetail what we can add and how best to “Our place in the Bacardi universe shrink anyone’s business,” he says. execute that in the marketplace,” he says. has become significantly enhanced through Irvine does not think that Two-for-one “We are super excited about the the change in leadership and strategic deals are completely in the past in duty free new Sao Paulo refit and the Grey Goose direction. The focus on travel retail and the stores, but he would like to see that time personalization that is going in there. It role that we play within the organization coming. is an investment we are proud of and we has changed a lot already and will continue “If we are really serious about getting think it will make a real difference for to change. The marketplace will start to see to that place, the onus rests with the brand the brand in that city. We are optimistic the results of that change over the next 18 companies to come up with a solution for it will provide a template for similar months,” says Irvine, who reports to Mike what can replace that volume-driving, executions around Brazil when those Birch, BGTR Managing Director since value-driving element of a retailer’s refits happen.” 2012. Ed Shirley became Bacardi Limited’s business. I understand the pressures. You BGTR now has responsibility for the CEO in March 2012. need people to take the gamble and test and Brazilian border business with Paraguay “There is always a fine balance of the trial stuff. There are going to be failures and Uruguay with the company seeing brand-building role the travel retail channel along the way, but I think there will be growth led by the Brazilian consumer. plays versus the commercial role. There enough successes over time to move in that In North America, Irvine is is now more emphasis on doing the right direction.” particularly proud of its partnership with things for the brands for the long term. The past year has been good for HMSHost in Toronto for the Toronto There is more of a laboratory/best in class/ BGTR commercially, even as the company International Film Festival (TIFF), that best practice environment. Let’s be slightly has dealt with a stagnant economy and gave travelers arriving at Toronto Pearson more adventurous in our thinking.” lagging consumer confidence. Airport in September a complimentary Irvine says the travel retail channel “In a difficult environment we are Grey Goose Le Fizz cocktail and several already has proven successes since the doing well. We are having a healthy special promotions. new leadership came onboard, with more return to growth after some pruning of The Grey Goose theme was carried innovations coming in the near future. our business and strategically deciding over into the transformed bar/restaurant “The Bombay Sapphire Electro Pack where we want to play. We want to play in operated by HMS Host in the Arrivals area, is a big accolade for our marketing team. places where we can represent our brands where travelers could sample three of the There is more coming from a product as well as possible, not based purely on cocktails being served at exclusive Festival innovation perspective be it secondary a price platform; where we can deliver parties. Also in the bar was a big screen packaging, value-added package or new premiumization and differentiation in a where travelers could catch-up on Festival liquid, which is going to make our next meaningful way; where the right consumer news, alongside films demonstrating how fiscal year pretty exciting. We are building is. We are building a pretty sophisticated to make the Grey Goose cocktails. a pipeline of new news and we are about to matrix of targeting that allows us to make Outside of the airport, BGTR joined take the end off the pipeline.” much more informed accurate decisions forces with the Bacardi Canada team to Moving towards premiumization about where to place our bets.” give visitors the opportunity to enjoy a and differentiation is also a clear goal for “There is still a slight trade-down complimentary Grey Goose cocktail in Bacardi, says Irvine. tendency within the North American one of several bars, restaurants and clubs “This direction will lead to consumer. It is very understandable. which were Festival hot spots throughout Passenger numbers are the city. The cocktail gift voucher came good. Confidence is just with a Grey Goose Festival Guide featuring a bit slow to rebound,” he a map of the best places in Toronto to adds. enjoy a cocktail during the Festival and on In South America the reverse are the recipes for this year’s Irvine points positively to cocktails. BGTR’s cooperation with Bacardi also raised the profile of its domestic operations in Grey Goose in the airport Departures area, Brazil. driving footfall into the Nuance Departures “Our primary role stores as consumers at the Arrivals bar in Brazil, because of the received a card which they could present nature of the arrivals in-store on their way home to receive an business within the exclusive Grey Goose promotion.

85 October/November 2013 TFWA/FDFA Issue INSIDER

One on One with Dave Wilson Patrón stays the course with quality and innovation

“Probably the biggest adjustment for healthy in the U.S.,” he says. “Through me, notwithstanding the travel, has been the first half of the year internationally our learning the international business. You business is up 16 percent plus. We continue approach it a little bit from a U.S. mindset to open up new markets; we continue to and you realize very quickly, as you get get new distribution. Our business is very into various parts of the world, that you healthy. Strategically for us international can’t assume anything. Luckily we have and duty free are just so important. We are great distributor partners and I’ve got a very bullish about that business.” great management team,” says Wilson, who Looking ahead, Wilson says Patrón is based in Switzerland. will focus on innovation. Wilson has also been surprised at the “We do have a number of brand attention that is paid to detail at Patrón, extensions planned for 2014. We are going even as scale has multiplied. to continue to leverage marketing expertise “The first place I visited was Patrón’s and our sales expertise. Other companies production facility in Mexico. As an come out with a brand a month. That is ‘outsider’ looking at Patrón you can’t not Patrón. We’ve done great diligence to Dave Wilson, help but marvel at the way it marketed ensure that when we roll out a brand it is President of Patron’s international operations the brand. But I didn’t really know how really targeted and has a great opportunity and Global COO true Patrón stayed to its core relative to to succeed. We’ll have a number of brands the way it produces the brand today. I that I think will be extremely successful.” Ninety days into his reign as President assumed with scale that there would be a “We are going to look at line of Patrón’s international operations and different process, potentially there would extensions, particularly on the XO line. But Global Chief Operating Officer, industry be efficiencies that the company would we are not going to just introduce a flavor veteran Dave Wilson says he is thrilled like to leverage. What I discovered quickly for flavor’s sake. We will make sure it is with the opportunity before him. -- and I guess this is the beauty of private well thought out, researched, and that the Wilson, who replaced John ownership -- was the company really quality of the brand really speaks to the McDonnell at the end of May, joined stays true to the way the brand has been Patrón name.” Patrón Spirits from Brandmuscle (Centiv) produced from day one. Patrón’s latest innovation, the duty where for the past seven years he has “It is quite a story and a story that we free exclusive Gran Patrón Piedra, which served as President of the company’s don’t tell as loudly and as consistently as was launched in Orlando at the IAADFS beverage alcohol group. His 33-year career we should, but we are going to rectify that Duty Free Show, will make its Cannes in the spirits industry also included stints at so that people understand the quality.” debut at TFWA World Exhibition. Joseph E. Seagram & Sons, National Wine Wilson joined Patrón in the middle of “Piedra has done quite well and we and Spirits, and Southern Wine & Spirits. another year of growth. are very pleased with the rollout. It is an “It is a really good team here at “It has been another very strong year, exquisite package and a fantastic product. Patrón. I knew a number of the managers, particularly our international business. We We are very pleased with the results to particularly here in the U.S., from my are going against a price increase last year, date. We will be looking to expand it to Seagram background. So that made it so there is a little bit of phasing going on, beyond travel retail sometime next year.” very comfortable for me to hit the ground but fundamentally the brand is extremely Wilson has already decided there is running,” Wilson told TMI in September. “It is a very challenging position, but the management team made the transition smooth for me,” he added. Since joining the company, Wilson Patrón ice bar at has been traveling throughout the world the DFS store at learning more about the duty free industry. the Gala unveiling “The duty free channel is something of the new TBIT Terminal at LAX new to me. Duty free is strategically last June. critical to how we launched the brand internationally,” he says. “Obviously I still have a lot to learn and I am working on understanding the route to market and getting a chance to meet our distributors.” Wilson says the largest adjustment to his new position has been not looking at the business from just a U.S. perspective.

TFWA/FDFA Issue October/November 2013 86 INSIDER

Glenfiddich launches new TR Exclusive Cask Collection

Glenfiddich unveiled the Glenfiddich when barley was traditionally malted in portant channel Cask Collection, a new range of three kilns at the distillery over furnaces fuelled for Glenfiddich. whiskies released exclusively for travel with dried local peat. Global travelers retail customers. Glenfiddich Select Cask The characteristics of each whisky are are looking for and Glenfiddich Reserve Cask will be the result of maturation in a variety of oak exclusive gifts available from September 1 in DFS and casks, followed by a finish in one of three and a dis- Heinemann outlets. The third expression in newly installed and specially created Cask tinct range the range, Glenfiddich Vintage Cask, will be Collection Solera vats. The Solera pro- of products introduced in early 2014. The full range will cess, pioneered by Glenfiddich in 1998 to which they be available to all global travel retailers by create its 15 Year Old, marries handpicked can’t buy April 2014. single malt whiskies together for at least domesti- In North America William Grant & Sons two months. The process guarantees the cally, mak- Travel Retail Director North America Steve continuity of the whisky’s flavor and taste ing this the Corrigan says the plan is to launch Glenfid- by ensuring each vat is never less than half natural en- dich Cask Collection with DFS in LAX, full and is constantly replenished. The new vironment JFK, and SFO on November 1. handcrafted wooden vats, created exclu- to launch Unveiled at a time when global de- sively for the Cask Collection, will join the Glenfid- mand for single malts continues to soar, original Solera vat in Warehouse 8 at the dich’s the Glenfiddich Cask Collection offers heart of The Glenfiddich Distillery, which premium three distinct flavor profiles. Glenfiddich this year celebrates its 60th anniversary. collection Select Cask, matured in hand-selected aged Commenting on the launch of the of rich and Bourbon, European oak and red wine casks, Glenfiddich Cask Collection Glenfiddich’s mellow single malts.” offers sweetness, spice and hints of citrus. Malt Master, Brian Kinsman said: “Creating Glenfiddich Select Cask and Glenfiddich Glenfiddich Reserve Cask is matured in whisky isn’t only about age, it’s about per- Reserve Cask are presented in Glenfiddich’s distinctive Spanish sherry casks used for sonal taste and flavor, and the Glenfiddich iconic 1 liter triangular bottle. Glenfiddich their mellow and rich flavor characteristics. Cask Collection has evolved to give Glen- Vintage Cask is available in a 70cl bottle. Glenfiddich Vintage Cask is matured in fiddich drinkers the perfect combination of Each is ABV of 40%. European Oak and American Bourbon casks quality, satisfaction and choice. Glenfiddich Corrigan is excited about the Cask Col- to impart a smoky, peaty taste. It is inspired has a long and illustrious history of innova- lection and the potential that it has in North by the first Glenfiddich spirit from 1887, tion within the single malt category and America, particularly with DFS. these latest additions allow us to “The best news is that in 2013 DFS offer single malt aficionados the did some capital investment in the North best of both worlds – a range of America region. They put capital invest- age and no age whiskies crafted ment behind all three of their airports, for their innovative flavor including San Francisco. Finally in 2013 I profiles.” think that this region, which was lagging Rita Greenwood, Managing behind Asia operations, is finally going to Director of Global Travel Retail be up to the standards of the other regions,” at William Grant & Sons added: says Corrigan. “We are continuing to see global “Based on what I am seeing from DFS, whisky demand steadily increase this is why you invest in a strategic relation- as both emerging and more ma- ship. North America hasn’t really been ture markets experience growth. delivering to the levels that we would all Combined with the customer like. Now they have stepped up [with major profile of today’s discerning investments]. The dividends are just about Glenfiddich is featured at the new DFS global traveler, this makes global to pay off significantly starting hopefully store at LAX TBIT. travel retail a strategically im- quarter four of this year and into 2014.” one word that describes how Patrón does Attending the TFWA World Exhibition things. in Cannes for the first time, Wilson says he “Quality. Everywhere I turn at is looking forward to meeting customers Patrón, whether it is our people, the way from around the world. we produce our products, packaging, the “Duty free is an extremely important advertising, it screams quality. When we do channel to us. We are committed to it something, we do it first class. I’ve really strategically. We think there is still great come to appreciate the way Patrón executes opportunity for growth, not only the tequila events. There is a Patrón way. I’m in awe line but for the balance of our portfolio. The duty free exclusive Gran Patrón Piedra of this company and very flattered and That will certainly be a priority. TFWA is was launched exclusively in Panama with honored to have the opportunity to lead it.” going to be a good opportunity.” Grupo Wisa’s La Riviera stores in August.

87 October/November 2013 TFWA/FDFA Issue INSIDER

Exciting new brand additions help balance MONARQ Group’s steadily growing spirits portfolio

Liquor distribution and marketing MONARQ’s balanced portfolio, enabling The brands that MONARQ represents company MONARQ Group has added the company not to rely too heavily on one are now available with operators throughout some innovative brands to its portfolio, as it or two brands for a majority of sales. the Americas, he notes. celebrates healthy growth and the opening “Our main drivers have been established “We are currently launching FRUTTA of a new Miami office in 2013, according brands like Heineken, Disaronno and Bols Winespirit with Neutral stores on the Uru- to MONARQ Group Managing Director/ but the Morrison Bowmore malt whisky guay – Brazil border. We are doing several Owner Robert de Monchy. portfolio and Crystal Head Vodka are promotions for Heineken with London Sup- “For 2013, MONARQ is showing a simi- star performers, outpacing the rest of the ply, to which we have successfully added lar trend as previous years with continued portfolio’s growth. Besides these, brands Desperados tequila flavored beer. London double digit growth. Growth has been or- like Molinari Sambuca, La Fée absinthe and Supply also added La Fée Blanche, a clear ganic as well as through the addition of new Fernet Branca have been showing continu- absinthe. Purity Vodka recently became brands to the portfolio,” he says. “We wel- ous solid growth,” he says. available in Grupo Wisa’s La Riviera comed a number of exciting and innovative MONARQ’s growth in the region has stores in Panama, Colombia and Mexico. new brands to our portfolio. Most notably, been so strong that the company opened a To expand its huge success, Crystal Head UV Vodka and Prairie Organic Vodka from new office in Miami. Vodka will soon have a special bulkhead Phillip’s Distilling, Jefferson’s ‘very small “We are very pleased with the perfor- display at Shopping China. Furthermore, we batch bourbon whisky’, the innovative mance of this new office. Obviously its are doing a number of special promotions FRUTTA Winespirit – Aperitivo Mediter- central location in the region is ideal for do- with the Duty Free St Thomas’ stores with, raneo - and the super premium Champagne ing business and traveling. Besides that, we amongst others, our malt whisky portfolio Barons de Rothschild.” are now in a much better position to service Bowmore, Auchentoshan and Glen Garioch De Monchy says the new brands add to USA Duty Free,” explains de Monchy. plus Atlantico Rum.”

Pisco Lablanco officially debuts in world markets With the news earlier this year that the Today the farm and cellar of Lablanco is United States officially recognized Pisco located in the old valley of Ica, next to the as a distinctive product of Peru and Chile, Ica River. Peruvian company Pisco Lablanco hopes to Pisco is distilled using a “Falca,” a distill now make inroads into the U.S. and inter- created in Peru by the first Spanish who national markets with its line of premium arrived in the country. A “Falca” distillation spirits. process can take between 10 and 12 hours This summer, the Federal Register for 3,000 liters of wine. amended the distilled spirits standards of The Inca, Pisco Lablanco’s classic line, There are four levels of Peruvian pisco. identity regulations to include Pisco as a is ideal for preparing traditional cocktails Puro is made from a single variety of grape, type of brandy and a distinctive product of such as Pisco Sour and Chilcano, says mostly Quebranta. Aromáticas is made Peru and Chile. According to the United Saldias. from Muscat or Muscat-derived grape States-Peru Trade Promotion Agreement “Both drinks were tasted during the varieties. Mosto Verde is distilled from and the United States-Chile Free Trade ASUTIL Conference and were very well partially fermented must, that needs to be Agreement respectively, the U.S. recog- received, especially Chilcano, which was distilled before the fermentation process has nized “Pisco Perú” as a distinctive product ideal for hot weather being a refreshing completely transformed sugars into alcohol. of Peru and “Pisco Chileno” as a distinctive cocktail. The Inca line comes in 750cc Acholado is blended from the must of sev- product of Chile. bottles of 40% in Quebranta varieties eral varieties of grape. Pisco Lablanco has a long history in (Grape Pisquera) and Acholado (pisco The Inca line requires 5 liters of Mosto Latin America that predates the founding grapes Multi Blend),” he says. “In the same to create one liter of pisco. However, of Peru. line are thumbnail Inca 50cc ideal for ho- Lablanco’s top line, Great Heritage, requires Pisco Lablanco is a natural product of tels, as souvenirs or gifts, as we can supply 14 liters of Mosto for one liter of pisco. Peru, says Carlos Arturo Mejia Perez, Pisco in packs of 4 units.” “Our top line is our Great Heritage, a Lablanco owner, who says his descendants “There are different qualities of pisco,” Green Mosto Quebranta variety. It is unique were among the first to make pisco in Peru. explains Pisco Lablanco’s Mejia Perez. in its kind for its quality and noble soft The ancestors of Lablanco cellar founded “From each kind of grape you get a different green wine distillate,” says Saldias. the city of Ica early in the 17th century, and pisco. This is a pure, natural product. The Pisco Lablanco hopes to export the began production of wine and wine distil- alcohol and the water come from the same Great Heritage line internationally, and has late for the Church. The distillate eventu- grape, we don’t add any kind of additives. entered into the U.S. market with listings ally became known as Pisco since it was That is why when you drink our pisco, the via restaurants in San Francisco. shipped from the port of Pisco and exported next day you are completely fine. No hang- For more information about Pisco outside Peru, says Carlos M. Saldias, Pisco over. You can take it pure. You can make Lablanco contact Carlos Saldias at export@ Lablanco export manager. pisco sour. You can make cocktails,” he says. piscolablanco.com.

TFWA/FDFA Issue October/November 2013 88 89 October/November 2013 TFWA/FDFA Issue INSIDER

Edrington Americas opens office in Miami to be closer to market

Edrington Americas opened an office part of that strategy,” he says. Edrington’s Miami location also in Miami in September to be closer to its “Today we are focusing on three allows the company to be closer to Rémy customers and distributors in the region, markets here. One is in Mexico. The Contreau Travel Retail Americas, which says Juan Gentile, Area Director Latin second important market is Brazil. The distributes the Edrington portfolio in America and Duty Free Americas for third market is Chile.” travel retail throughout the rest of the Edrington Americas. Each of these three markets is strong region. Gentile, who leads a team of four with different brands from the Edrington “The idea to build the office here concentrating on the domestic Latin portfolio, says Gentile. was to help Rémy better deliver our plans American market, Americas travel retail, In Mexico, Edrington is doubling its and be closer to the customer. We want to and the Caribbean, says the new office will volume for The Macallan. be closer to the stores and start to build a improve communication and efficiencies “Mexico for us is very important. better knowledge and a connection to the between Edrington and its partners. We have big plans for the market. Mexico customer,” he says. “Bringing the company to the region is Macallan, with some Cutty Sark and While Edrington and Rémy Cointreau provides a lot of opportunities for us Famous Grouse.” USA are ending their domestic partnership to understand the region better, for us “The second important market is effective March 31, 2014, the travel retail to feel more comfortable, and to have Brazil. Brazil is a more difficult market relationship will remain in effect. the proximity to the markets and the because we are still smaller. We are “In travel retail we want to customers,” says Gentile, who previously reviewing our strategy there, but our focus keep working with them. Our brands managed the region from Argentina with there is the potential to grow Macallan and complement each other and we work very travel retail managed from the UK. Cutty Sark.” well together. Rémy has the expertise “We are closer to the market and Chile is much more of a dark rum and the proximity to the customer. Our closer to the head office in New York, market with Brugal rum a perfect fit in the objective is to keep working with them for The Edrington Group USA, where we get country, says Gentile. the long-term.” support and human resources. Now we “Chile is a simple market but it is By moving to Miami, Edrington aims decided to incorporate travel retail and growing in whisky and dark rums. We are to improve its visibility in travel retail, says Latam into the Americas. So that is why we relaunching now with a new distributor Gentile. opened the office here in Miami.” for both Famous Grouse and Brugal along In one highly visible recent activity Gentile says Edrington’s company with investment plans. We have a lot of in the channel, Brugal sponsored the focus is on the emerging markets of the expectations to do well in Chile.” Gala dinner at the ASUTIL Conference in world with some important markets in the The Caribbean is also a strong focus Punta Cana, Dominican Republic in June, Americas. for Edrington in the region. which paid off with increased visibility “The vision of the company is “The Caribbean is a very important immediately for the brand and company. that future growth needs to come from area for us, because the biggest market “We achieved five new listings on emerging markets: Latam, Africa, and Asia for us here is the U.S. We want to follow Brugal 1888 after the Gala. When you and the Middle East. And travel retail is the U.S. tourists going into the Caribbean. present the brand and the operators can see World Equity Brand Builders (WEBB), it and feel it and taste it, they realize it is an which handles distribution for Edrington excellent product,” he says. in the Caribbean, helps us deliver our “Our goal is to show the distributors visibility of the high-end products in the that we are serious about growing our key islands where we see the U.S. tourists. brands. Before we were a serious company, It is very important for the Caribbean we did not neglect the market, but we strategy to build our brands in the U.S. had other priorities. Now is the moment market.” to show the markets and our distributors Edrington and WEBB work so closely around here we are serious about this together that WEBB is sharing space in market. We really want to grow. We are Edringtron’s new office in Miami. going to be an important player in the future. We are with Macallan. We are with Juan Gentile, Area Director Latin America some of our brands. We want to really build and Duty Free Americas at Edrington our whole portfolio. Americas with Juan Campos, Brugal Brand “Our objective is to build up our Development Manager, The Edrington image. That is why we did the event Group USA at the Brugal-sponsored gala in ASUTIL. Because we need to show at the ASUTIL Conference in Punta Cana, customers that we are serious and are going Dominican Republic in June. to do good things.”

TFWA/FDFA Issue October/November 2013 90 113 91 October/November April 2013 2013 TFWA/FDF IAADFS/MHAA Issue Issue INSIDER

Mount Gay Black Barrel launches in Cannes

Rémy Cointreau Global This two-fold distilling and ageing depth of flavor combined with a 310-year Travel Retail is introducing process, dubbed the 2x2 difference, delivers heritage. These real and charted historical Mount Gay Black Barrel, mellow aromas of bold spice, toasted wood, foundations resonate with today’s consum- a small batch, handcrafted oaky vanilla, caramel and candied fruits. ers who are seeking something individual, rum, in Cannes. Mount Gay Black Barrel scored 94 something different from the standard aged Already an award-winner, points in Paul Pacult’s respected Ultimate brown spirits and something of exceptional Mount Gay Black Barrel Spirits Challenge 2013 and was described quality.” (43% ABV) is made as “excellent” and “highly recommended.” The new design features an engraving from blending single Black Barrel also received a Gold Medal in that pays homage to the rum’s origins, a column and double the 2013 San Francisco Spirits Competition. Barbados certificate of origin and a unique copper pot distillates, “The rum category is booming at the numbered bottle. Details about the raw ma- which have both been moment, especially the premium plus sub- terials and the production process appear on aged first in toasted category. It grew by around 12% in 2012 the back and the label carries the signature oak barrels and then compared with the previous year, according of the Mount Gay Master Blender, Allen finished in charred to IWSR. Premium crafted brown spirits Smith, as a mark of authenticity. bourbon oak barrels. showed the strongest growth in several mar- Mount Gay Black Barrel is debuting Mount Gay Black kets including travel retail,” says Matthew in stores worldwide from September and Barrel uses a high pro- Hodges, Marketing and Business Develop- will appear first in travel retail in Western portion of the intensely ment Director, Rémy Cointreau GTR. Europe and Australia at a RRP of €34. aromatic, expensive “Mount Gay has the credentials to Rémy Cointreau GTR will exhibit its ‘double pot distillate’ compete in the super-premium segment portfolio of products in the Marine Village to add complexity and and with Mount Gay Black Barrel we have Foyer 1A. depth of flavor. a matured rum which offers exceptional

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TFWA/FDFA Issue October/November 2013 92 INSIDER

DFS and Diageo launch Famous City Skylines Limited Edition Johnnie Walker Blue Label Range

Diageo Global Travel last month flying consumers. Tailoring a product to the 2013 in DFS airport stores in Singapore revealed a limited edition range of Johnnie local market is a mark of our commitment Changi, Hong Kong International, Mumbai Walker Blue Label bottles that are available to offering innovation and differentiation Chhatrapati Shivaji, San Francisco Interna- only at the airport stores of the DFS Group. to our travelers,” says Steve White, Global tional, Los Angeles International, New York The bottles are engraved with designs Marketing Director of Diageo Global Travel JFK and Auckland International Airports, at inspired by the skylines of some of the and Middle East. a recommended retail price of US$399 (or world’s most famous cities, from New York John Hoover, Senior Vice President of local equivalent) for 1 liter. to Hong Kong. Global Merchandising - Spirits, The handcrafted range consists of seven Wine, Tobacco, Food and Gifts for city editions, each bearing an individually DFS Group said, “It is an honor etched skyline design. The seven cities fea- to be the first travel retailer in the tured are: Singapore, Hong Kong, Mumbai, world selected to launch this San Francisco, Los Angeles, New York special range. We are confident and Auckland. Accompanied by a bespoke that these exceptional bottles, sleeve, the bottles are individually num- which capture the spirit and bered and available in limited quantity only energy of some of the most in the cities that inspired them. iconic destinations where DFS “We know that travelers love to bring is found, will delight world back unique mementos from their journeys travelers.” which serve as a beautiful reminder of the The seven city editions of experience. The Johnnie Walker Blue Label Johnnie Walker Blue Label will skyline range meets that need for our high- be available from September

BEYOND LUXURY

93 October/November 2013 TFWA/FDFA Issue INSIDER

Brown-Forman brings American Whiskey to the world As the world’s number one supplier Old Forester as an outstanding whiskey something unique or exclusive it gets of American Whiskey, Brown-Forman’s that many consumers cannot find in their harder and harder to make sure brand focus on the category in travel retail is the home markets, thus bringing a unique, communication stays on message. A obvious course of action, says Jim Perry, semi-exclusive, authentic bourbon to travel continued difficult challenge is profitability Brown-Forman Senior Vice President retail.” and the ever increasing margin and Global Travel Retail. Brown-Forman’s entire portfolio investment demands. This past year saw Brown-Forman leads the American performed positively in the channel last a return to irrational concession bidding Whiskey category both in volume and year, says Perry. and related demands for retailer margin value, with its travel retail market share at “The past year was very good and enhancement. The Travel Retail channel over 60%. we are very pleased with how Brown- will only work for the long-term if all “Our task is to educate consumers Forman’s brands have performed. Our Jack parties recognize that everyone needs around the world about the quality and Daniel’s brand grew to become the fourth to make a satisfactory return and that unique characteristics of American largest spirits brand in travel retail, with our ultimate, mutual goal is to sell more Whiskey. Other whiskey categories have Finlandia Vodka holding down the number product, not real estate.” had a 100+ year head start. We are just fourteen spot,” he says. A number of travel retail appointments getting started. The great news is that other “The last year witnessed several made this summer demonstrates the suppliers also have excellent American major accomplishments for Brown- increased importance that Brown-Forman Whiskey offerings and we welcome Forman. Our Jack Daniel’s Sinatra Select is placing on the channel. working with them to mutually grow our launched to wide acclaim and has done “It means that the future is bright for category,” says Perry. very well, with consumers around the Brown-Forman Travel Retail,” says Perry. “We are very active in marketing the world recognizing its quality and telling us “Over the last few years we have full range of American Whiskey in travel that the brand can easily participate in the significantly increased our travel retail retail. Our actions include increasing the ultra-premium category. We also continued investment via an expanding team. We are promotion of our award winning Woodford our geographically managed roll out of also now becoming an organization that is Reserve brand, creating pop-up-stores and Jack Daniel’s Tennessee Honey, with more attracting the best talent we have inside the shop-in-shops and increasing the use of and more markets coming online. Another company. At the same time we have also in-store promoters to educate consumers very exciting development was the opening increased our investment in new product about American Whiskey.” of the first ever Jack’s Bar and Grill in the offerings, new packaging, geographic Brown-Forman has high expectations new concourse at Dubai Duty Free.” expansion and new experiential marketing for its American whiskeys in travel retail. While the market continues to grow, campaigns. All of these investments are “We expect Woodford Reserve to be the usual challenges remain, both good and already showing positive returns with the number one super-premium, bourbon bad, says Perry. offerings such as 2012’s London Gold whiskey in travel retail. Old Forester “The good challenge is how do you Medal, Jack Daniel’s Sinatra Select, is a leading premium bourbon whiskey bring our brands to consumers all over the Woodford Reserve Double Oak, and Jack and will introduce consumers to the long world in ways that are both captivating Daniel’s Master Distiller. The future should history of bourbon distilling. We will offer and unique. With every retailer demanding be a lot of fun.”

Brown-Forman Travel Retail’s emphasis on its American Whiskey portfolio will be spotlighted by the attendance of noted Woodford Reserve Master Distiller and Spirits Historian Chris Morris during the TFWA Conference in Cannes this October. Morris will be the first Brown- Forman Master Distiller to attend the TFWA show in over a decade. Morris is also the master distiller for Brown- Forman’s Old Forester, Early Times and Collingwood, the Canadian Whiskey. Morris will be conducting daily whiskey seminars on the Brown-Forman stand (M-70, Green Village). Attendance is limited and space can be reserved by contacting Kristy Brown at [email protected].

TFWA/FDFA Issue October/November 2013 94 INSIDER

Rémy Cointreau GTR to launch TR exclusive Bruichladdich collection in September 2012 and has spent the last little,” says Jim McEwan, Master Distiller, year working with the management team to Bruichladdich prepare for this autumn’s launch “We believe that terroir matters more The backbone of the range, Bruichlad- than anything. Indeed that is our credo and dich The Organic Scottish Barley (50% our guiding principle. Our whisky is the ABV 1litre), is an unpeated malt made from product of the land in which the barley is finest Scottish barley and is the only organic grown, the local water, the sharp sea air and Islay malt. the slow unhurried distillation and aging Bruichladdich Bere Barley 2006 (50% process in our warehouses on the banks of ABV 70cl) is a limited edition of unpeated Loch Indall.” single malt made entirely from barley Matthew Hodges, Marketing and Busi- grown on the island. Bruichladdich Black ness Development Director, Rémy Coin- Art (49.2% ABV 70cl) is a cult cask secret treau GTR: “Malt whisky, of which Islay creation which will be on very limited malts are a key element, is the fastest grow- release. In contrast to its fellows this ex- ing market segment at around +10% annual pression is dressed entirely in black with the growth according to IWSR. It is a dynamic six-pointed star, symbol of magic and the market for brands and for connoisseurs and black arts, as its talisman. collectors who are presented with a fine Bruichladdich will also unveil Port selection of aged and blended malts each Rémy Cointreau GTR will unveil Charlotte PC11 (59.5% ABV 70cl), a with its own characteristics. In Bruichlad- a unique collection of five travel retail limited edition of heavily peated single malt dich they will find a dram of excellent exclusive single malt Scotch whiskies from Scotch whisky. The fifth expression in the quality with an interesting heritage – the Bruichladdich, the exclusive distillery on collection, the limited edition Octomore 6.2 resurrected distillery, the original distillation the Hebridean island of Islay off the west (58.2% ABV 70cl) is matured in cognac equipment, the provenance of the barley. coast of Scotland. casks and said to be the most heavily peated “We are also positioning Bruichlad- Founded in 1881, the Bruichladdich malt whisky on the planet. dich to appeal to the gift-buyer looking for distillery maintained limited production “Our aim at Bruichladdich is to cre- something out of the ordinary and to the until 1994 when it was closed by its former ate single malt whiskies of exceptional adventurous consumer looking for a more owners. Six years later it was brought back quality and outstanding flavor which will contemporary approach to malt whisky. We to life by a small group of enthusiastic be savored and enjoyed purely on their are thrilled with the outcome so far and we investors. own merits, unconstrained by age state- look forward to an extraordinary future for Rémy Cointreau acquired the distillery ments which promise much and guarantee Bruichladdich in global travel retail.”

Botran Rum wins major awards at 2013 International Rum Conference; will now display “Denomination of Protected Origin – Guatemalan Rum” seal on bottle Botran Rum won a number of major name of a region or geographical area and occur under the Solera System. awards at the 2013 International Rum serves to designate, distinguish and protect Botran Aged Rums – Botran Añejo 8, Conference in Madrid, including “Distillery a product based on its special characteristics Botran Añejo 12, Botran Añejo Reserva and of the Year,” which was given in recogni- derived, essentially, from the territory where Botran Añejo Solera 1893 – are covered by tion of Botran’s careful aging process. it is made, considering natural, climate and the Guatemalan Rum DPO. Botran also won awards in the “Extra Aged human factors. Superior Rum, 11-15 Years” category where This designation, obtained through the Botran Añejo Reserva took the silver medal; efforts of the Guatemalan Association of while Botran Añejo Solera 1893 won the Spirits and Liquors Manufacturers (AN- gold medal in the “Premium Aged Rum, FAL), gives new added value to Guatema- 16-20 Years” category. lan aged rums. They now join the exclusive Like Champagne, the name given only to ranks of products distinguished by the sparkling wines produced in France under “Denomination of Protected Origin” desig- the méthode champenoise, and Cognac, nation. The DPO also protects them from originating in the city of Cognac, France, imitations by specifying requirements for the aged rums from Guatemala will now geographical and soil characteristics, sugar display the “Denomination of Protected cane varieties, the cane syrup extraction Origin – Guatemalan Rum” seal. A Denomi- process, fermentation and distillation, and nation of Protected Origin (DPO) has the climate conditions under which aging must

95 October/November 2013 TFWA/FDFA Issue INSIDER

Mondelez WTR: Growth through Innovation Mondelez WTR brings a range of new Milka Oreo Big Size Tablet lovingly com- events in 2014 with the launch of new products to the TFWA World Exhibition bines two world-class brands in one deli- Milka Champiolada 300g, a limited edition designed to drive growth in the total con- cious product, while the new Cadbury Dairy Alpine milk chocolate tablet with coconut fectionery category in 2014, the company’s Milk tablet range is set to bring joy to every flakes. 20th anniversary year. traveler’s journey. There’s the sweetest gift The new travel retail exclusive Cadbury “As we look forward to our 20th an- offer from Bertie Bassett, too, and watch Dairy Milk tablet range includes classic niversary next year, I firmly believe that this space for exciting news from travel favorites, Cadbury Dairy Milk, Cadbury Mondelez WTR has never been stronger retail icon Toblerone. Visit us in Cannes to Dairy Milk Whole Nut and Cadbury Dairy or more innovative. The launch of our find out more and to experience these deli- Milk Fruit & Nut presented in a new format category vision Delighting Travelers last cious novelties for yourself.” and packaging design, unique to the chan- year has re-focused our efforts, and a host Milka Oreo Big Size tablet offers a nel. of new products destined for the travel retail combination of Alpine market in 2014 will allow us to successfully milk chocolate and address the three key pillars of this vision: crunchy whole Oreo More Shoppers, More Spend, More Often,” biscuits with milk and says Andreas Fehr, Managing Director of chocolate cream to Mondelez WTR. deliver a completely Nicole Hatt, Manager Category Market- new product. ing adds: “There’s plenty to entice and Milka celebrates delight travelers in the new product line-up. the upcoming football Nestlé ITR uses Perfect Store and product development to meet needs of mature and emerging markets Nestlé ITR is bringing its shopper-centric Continual investment to better understand on global brands like KitKat, Nestlé Swiss approach and Perfect Store category initia- the shopper also drives NITR’s product offer. and Smarties, alongside a portfolio that bet- tive to an ever demanding global passenger The company is leveraging the expertise of ter meets the needs of the regional shopper within an environment that it claims is its parent company – the world’s number through key brands such as Quality Street becoming increasingly polarized between one food and beverage company - to look at and Baci. mature and emerging regions. This year in introducing new categories into the channel This philosophy is reflected in a new look Cannes (Gold Village Go3) NITR reveals while adapting its confectionery range to stand which combines sophisticated elegance how it is turning this challenge into an op- better meet the needs of new, emerging and with strong brand messaging and imagery. portunity, broadening and adapting its offer existing global travel shoppers with global Nestlé also celebrates its link up with Google to suit the needs of both existing and new brands and key regional brands. on the launch of its new Android operating travel shoppers. Fuelled by insight, the 2014 product range system called KitKat. The heart of NITR’s strategy is its Perfect reflects a shopper-centric approach centered Store initiative, which has delivered on its promise to generate incremental sales growth for participating retail partners, both for Industry veterans Gray and Murray form a Sweet confectionery and other categories within the store. The continually evolving concept Partnership for 1875 Sweet Discovery offers new insights on the changing behavior, needs and motivations of shopper nationali- Chris Gray’s new confectionery com- Gray is now developing confectionery ties when fed into the 3 step process which pany Beyond Chocolate Australia and Gerry products in the 1875 Sweet Discovery drives this category initiative. Murray’s Traveller’s Trove agency recently lineup as well as providing private label NITR, using its 12-month Perfect Store announced an agreement where TT will manufacturing to some key travel destina- project in Schiphol Airport, will demonstrate represent BCA’s 1875 Sweet Discovery tions. The 1875 Sweet Discovery range to customers how Perfect Store is having a and Joy Sweets in Travel Retail. The deal consists of a tropical fruits, berries and nuts positive impact on all the basic metrics of brings together two veterans of the travel smothered in chocolate and presented in a measuring retail success. retail confectionery business with a wealth selection of premium pack options. “The Schiphol project has demonstrated of experience. 12 months on the sustainability of Perfect Gray previously worked with brands Store in terms of delivering incremental sales ranging from Cocoa Farm chocolate growth for the confectionery category and to Patons Macadamia, and Murray the total store … [as we introduce] the latest spent 15 years with such top brands as activations aimed at overcoming the barriers Godiva and Neuhaus before founding to purchase and converting more shoppers Traveller’s Trove two years ago as a into buyers,’’ says NITR global head of sales consulting and brand representation Alan Brennan. agency.

TFWA/FDFA Issue October/November 2013 96 97 October/November 2013 TFWA/FDFA Issue INSIDER

Perfetti Van Melle introduces new lines in Cannes to fill market gaps Perfetti Van Melle is introducing several and gifting. Snacking is further broken into the retail area through bright, new lines it believes are perfect for till point self-consumption and sharing, and gifting colorful and fun merchan- sales at TFWA World Exhibition this year divided into informal and formal. Within its dising units is essential. (Mediterranean Village, P17). product matrix, where lines are further di- New for airports, and The items include: Mentos Gum Bottles vided into adult and children, the company on show on the stand – in white sweet mint and white green mint; has identified a number of opportunities in Cannes, is a super Mentos Pouch Bag – Mentos Dragees in for product development – particularly for bright Chupa Chups and three flavors: mint, fruit and strawberry sales of snacking items at the point of sale Mentos branded truck mix; and a new look dispenser for Smint or checkout. in which children can sit Spearmint. In the on-shelf offer, PVM has also iden- next to a fun character to To support the products, PVM is also tified new gifting opportunities for adults have their photo taken. The unit offering retailers a checkout merchandising and children. carries a wide variety of Chupa unit, which can be filled with a wide range These include: Mentos Jumboroll Dutch Chups and Mentos products of products alongside PVM sugar confec- Design – the first limited edition pack and takes up little floor space tionery. designs for Mentos mint dragees; Chupa ( H 1300mm x W 950mm x L “We realize the value of checkout mer- Chups Mega Chups Limited Edition – the 1960mm). chandising units for confectionery sales in Megachups covering foil is replaced with Says de Vree: ‘We all know particular, but of course PVM does not offer a new look funky design reminiscent of that attracting passengers into the every need in this sector, so we are offering a disco-ball; Mini Mix Bag – each see retail shop is the first hurdle. We a unit that can include a variety of products through reusable bag contains a mix of also know that bright, colorful including chocolate, jellies, savory snacks, Chupa Chups, Mentos and Fruittella and merchandising units such as this etc,” says Global Travel Retail Manager carries an RSP of Euros 10. Chupa Chups work....especially in enticing PVM Susan de Vree. Both floor standing Smurf House, each house-shaped pack con- families into the retail area. Our and counter top units are offered. tains 6 strawberry lollipops, four Smurfines new truck has the added value Perfetti Van Melle divides its travel and a game. that children can actually sit inside retail range into two broad areas: snacking PVM believes enticing consumers into which makes a great photo opportunity.”

Mars celebrates in Cannes with new innovations Mars International Travel Retail (MITR) Candy Dispensers and a new travel retail Director Lieke Duijmelings. continues to drive confectionery sales exclusive design has been introduced to “Combined with an exciting program of growth through innovation with a number replace the original M&M’s Car Dispenser. activations designed to attract, engage and of category exclusive launches for 2014. Mars has a number of activations delight the consumer, we are on track for a Focusing on key brands M&Ms, Celebra- planned around the theme of personal mes- very busy and successful 2014.” tions, and Maltesers, the offer targets the saging and gifting for 2014. In Cannes the fast moving family and informal gifting highlight is the new travel retail exclusive sectors with specific items appealing to the Big Sweet, the 310g box has been designed souvenir/destination shopper. All the new to represent a giant gift-wrapped chocolate. innovations can be seen on the Mars Inter- Customers can choose boxes with one of national Travel Retail stand at TFWA World three appropriate gift tags – heart, gift box Exhibition (Bay Village – Stand Bay 9). or star shaped – allowing them to write their For 2014 MITR is putting additional own personal message. emphasis on souvenir gifting with items Brand new to the sector is the exclusive developed both for general tourist destina- Maltesers Teasers range – offered in pouch, tions and specific airport retail locations. sharing bag and bucket formats. The offer includes a range of M&Ms Travel “These new product innovations and Mugs with general travel designs featuring renovations for 2014 are at the heart of our airport themes and specific location themed promise to continue delivering exclusive mugs for the M&M’s shop-in-shops. items based on world leading brands to our A range of colorful City specific M&Ms travel customers,” says Mars Marketing

TFWA/FDFA Issue October/November 2013 98 99 October/November 2013 TFWA/FDFA Issue INSIDER

Hershey to debut new TR exclusives in Cannes

The Hershey Company’s World Travel products: pouch of White Peanut Butter partners,” says Bentz. “Consumers enjoy Retail team will be featuring Hershey’s Cup Miniatures and Reese’s Pieces candy the unique dark chocolate and fruit flavors Brookside brand along with two new Travel in a re-sealable pouch. The Reese’s brand combination Brookside offers.” Retail Exclusive (TREX) items from Reese’s was recently recognized as a top global The kosher, gluten free, treats include in Cannes. Hershey TREX items will begin chocolate brand by Euromonitor. three varieties coated in dark chocolate: shipping in the first quarter of 2014. The new TREX Reese’s items are an Pomegranate; Acai and Blueberry; and Goji The Hershey Company is introducing a important addition to the Hershey World and Raspberry. new line of TREX items featuring Reese’s Travel Retail portfolio, says the company. Brookside was first introduced in travel “We are thrilled to further expand our retail at the Cocoa Trees Stores in Changi portfolio with the launch of these additional International Airport in Singapore, and travel retail exclusive items at Cannes. continues to roll out to duty free and travel These items provide an excellent opportu- retail outlets worldwide. nity for retailers around the world to offer “Sales in the Cocoa Trees Stores have iconic Hershey brands tailored to the con- been excellent. Brookside has proven its ap- sumers in this channel,” says Steve Bentz, peal with consumers beyond North America General Manager World Travel Retail, The and we are excited about the brand’s poten- Hershey Company. tial in the travel retail channel,” said Bentz. “Increasingly, consumers are looking Brookside is currently available at for convenient snacking while traveling, travel retail outlets throughout Asia and the and that’s one of the reasons Brookside has Americas and will soon be added to stores done incredibly well for our travel retail in Brazil, Argentina and Uruguay.

Ferrero to launch Tic Tac Neuhaus celebrates Souvenir Collection the Year of the Horse Ferrero Travel Market will unveil in flexible project dedicated to souvenir hunt- To build on the success of the previous Cannes an expanded Tic Tac travel retail ex- ers and Tic Tac fans. Consumers browsing Chinese New Year collections Neuhaus cre- clusive portfolio that will appeal to souvenir in travel retail stores will have the chance ated a limited edition box to celebrate the hunters. to complete their set of Tic Tac collectable Year of the Horse. The new Tic Tac T100 Travel Collection packs as they travel around the world. These Answering the demand of the Chinese comprises nine collectable 49g packs of the travel packs simply cannot be purchased on consumer for a Chinese New Year product, Tic Tac white mouth freshener mints, each the high street giving them added appeal as Neuhaus created a box with red and golden representing a different country. gift items. design with a horse. The design brings har- The Tic Tac T100 sleeve designs now in- “Our main clients to whom we pre- mony in the unity of the Neuhaus Chinese clude Germany, Great Britain, Hong Kong, presented the project have been extremely New Year collection, says the company. Singapore, India, Brazil, Canada, USA positive about the new collection. They told This special gift box will present a and the Caribbean. The design project is us that this time we have really cracked selection of Neuhaus’ best-selling pralines intended to be flexible and further destina- it: we have made a souvenir, a destina- in Asia. tion sleeves can be added to the collection tion pack, a collectable pack, with an offer The arrival of the Year of the Horse as available. which is very cross-generational and cross- will be celebrated on Friday January 31, Each sleeve bears the name of the coun- geographical.” 2014. The limited edition box contains 16 try, a graphic illustration of a national land- chocolates, net weight: 200g. The product mark and the bright, eye-catching colors of is available for shipment as from October the country’s flag. 15, 2013. The nine Tic Tac T100 layouts are designed to be listed as a full set, not as individual country-specific listings, and together they make a bright and attractive offer on shelf. Consumers will be able to purchase one or more SKUs from the set making the collection an excellent traffic generator in- store, says the company. Alberto Donnini, Marketing Director, Ferrero Travel Market: “The Tic Tac T100 Travel Collection is a very innovative and

TFWA/FDFA Issue October/November 2013 100 FlyInStyle is a social airport app that helps passengers find fun things to do at the airport like instant deals, new product launches, happy hours, and more!

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101 October/November 2013 TFWA/FDFA Issue INSIDER

Imperial Tobacco reveals new global design for Davidoff Imperial Tobacco reveals the new of the pack design; it’s a brand that does not sumer journey, and revealing more about global design for Davidoff at TFWA World sit still,” says Nicole Peiler, Trade Mar- the history of the Davidoff brand. Exhibition this year (Gold Village Go6). keting & Marketing Operations Manager While the Davidoff cigarette blend Offering smokers ‘a touch of luxury for Global Duty Free. “This latest rejuvenation remains unchanged, subtle improvements everyday,’ this pack and carton rejuvenation will fascinate shoppers with its new haptic have been made to the filter tipping, in line retains the key iconic design elements of experience and design detail which clearly with the overall upgrading of the brand. Davidoff, while adding sophisticated design meets the traveler’s needs for luxurious “The new Davidoff design is contem- elements and detail that takes the brand to a design, premium quality and pleasurable porary, sophisticated and dynamic,” contin- new luxury level, says the company. experience.” ues Peiler. ‘While retaining all the personal- “The success of Davidoff globally is The new design builds on the heritage ity of Davidoff, the new look gives travelers in part due to the continuous advancement of the brand incorporating both the ZD icon what they are looking for; a prestigious, on the front as a silver ‘hallmark’ and the luxurious experience which leads through ZD signature on the reverse as a reassurance from the outer carton to the cigarette itself.” of a sophisticated smoking moment. Addi- “The introduction is being supported tional text elements, such as ‘Geneva 1926’ by activations and promotions globally and reinforce the heritage of the line. Including as always we will be offering customers both the Davidoff Premium and Slims lines, a robust support plan which will be tailor the packs themselves combine smooth and made to the individual market,” says Peiler. engraved textures to create a soft, silky “For retailers, highlighting their shelves ‘haptic’ touch that is quite unique. For with this new exquisite design enables travel retail, the carton interior develops the customers to ‘unwrap the moment’ and our heritage story further, prolonging the con- customers to ‘unwrap success’.”

Scorpio Worldwide gives the ThumbsUp! to travel retail

Scorpio is adding to its inflight offer keep an eye on internet activities. Discreetly Smart Control Ferrari Enzo - Controlled with a brand new range of innovative prod- installing onto any Windows PC, this covert by a Smartphone, this car is an ideal gift ucts from Thumbs Up!, a British design and device monitors every keystroke, detects for either a child, or a car enthusiast. With developer of toys and gadgets that offers a keywords and passwords, and remembers a free downloadable Driving App, this flash variety of products for both adults and chil- all websites visited. Ferrari will take you to the heart of Italy. dren. The range, which is available inflight Compatible with iPhones 3, 4 and 5, iPad from Scorpio Worldwide includes: Eye Scope for iPhone 4-5-- Get up close touch, iPad 1 and 2 and android devices. and personal with this iPhone zoom lens. Aqua Case – A form-fitting waterproof Simply click onto your existing iPhone 4 or Touch Speaker- A Smartphone Speaker case that will safeguard an iPhone from the 5 to achieve detailed pictures. that uses new-to-market Near Field Audio elements. Guaranteed waterproof to depths technology to pick up the phone’s frequency of 0.7m, this is a must have for any traveler Smart Control Sky Helicopter - Con- and amplify the sound. With no wires, this that doesn’t want restrictions on where they trolled by a Smartphone, this helicopter is handy little speaker is compatible with can use their phone. ideal for both adults and children. With a most smart phones and a perfect gift for any free downloadable Smart Control App, this music lover. SpyCobra Deluxe - This is the perfect sky helicopter is a little more James Bond gadget for parents or employers that want to than your regular flying machine. Compat- ible with iPhones 3,4 &5, iPad touch, iPad 1 & 2, and android devices.

TFWA/FDFA Issue October/November 2013 102 BRANDS TO MEET EACH AND EVERY ONE OF YOUR CUSTOMERS’ TASTES. EACH BRAND IS DESIGNED TO BRING OUT THE BEST FOR EVERY WALK OF LIFE.

Pitbull satisfies the young, urban go-getter who appreciates good quality and the recognition that success brings.

Montana brings excitement to the outdoor thrill-seekers who urge nature to “bring it on”, whether on the water, at the top of the mountain, on a bike, or on horseback.

Flore complements the young and sophisticated executive woman with a keen sense of fashion and a flare for fun.

Police, a line of the finest American Tobacco blends at a value price for those who work hard and play harder.

For the self made man who celebrates his hard work and enjoys his ranch life, we introduce Laredo, no surprises and no compromises. Some things just never change.

for more information call 305.715.0178 or email [email protected]

103 October/November 2013 TFWA/FDFA Issue INSIDER

Flo Accessories appoints Sea & Sky Inflight Supply, debuts in Cannes Innovative travel and gift company our business inflight – particularly for the Flo Accessories has appointed Sea & Sky Flo Fragrance Atomizer which we believe is Inflight Supply as its inflight agent for all a ‘must-stock’ item,” says Flo head of travel markets outside the U.S., UK and Ireland, retail Oren Goshen. and will be exhibiting its portfolio in The company says that the Flo Fra- Cannes. grance Atomizer is the only type on the Sea & Sky Inflight Supply will offer market with a glass holder, which means the the full range of Flo Accessories products fragrance inside is not affected by chemi- to the airline sector, including the unique cal reaction or temperature. Easy to wash 100% universal Flo Fragrance Atomizer; out and clean, the Flo Fragrance Atomizer Organizer Pouch, Crystal Travel Nail File is 100% universal and can be used on all Set and Celebrity LED Mirror, all of which designs of fragrance bottles, even those will be shown by Flo on the Sea & Sky without a spray nozzle. Enquiries: Inflight Supply stand at TFWA World Exhi- [email protected]. bition (Blue Village G31). “Sea & Sky Inflight Supply … has a fantastic reputation internationally and is, we believe, very well positioned to build

Beauty & Travel Accessories

Worldwide Launch at the TFWA PERFUME JEWELRY LINE!

Come visit us at Sea & Sky booth G31 – Blue Village

TFWA/FDFA Issue October/November 2013 104 Happy 18th Birthday to Screaming Color!!

Ivan Mora thanks the Duty Free Industry for its unconditional support.

Chicago-born, Ecuador-raised Ivan Mora Screaming Color is also a supporter of is the genius behind one of the most successful a variety of charitable organizations in Panama graphics agencies in Miami, Florida. Since 1984 that provide shelter, medical assistance and carephoto lab Ivan has been building his extensive expertise. to underpriviledged children and the elderly. This is a commitment of love and a way of Screaming Color was established in 1995 giving back to the country that opened the door specializing in duratrans (transparencies), HPP, for Ivan to excel in what he loves best. banner stands and floor graphics, as well as store fixtures, trade show displays and a lot more. One of the favorite organizations is the Bolivar Asylum in Panama, helping the elderly Ivan attributes his success to experience, who have been abandoned. Please join this hard work and common sense. His core team valuable cause at www.screamingcolor.com. consists of 20+ years’ experience in the print and production industry; the team will work as many hours as necessary to satisfy the customer requirements. And, Ivan assures that Screaming Color continues researching and investing in the latest innovative technologies in order to surpass the customer’s expectations.

Additionally, Ivan Mora’s undying photo lab Faith has been a great factor to his continued success. It has www.screamingcolor.com given him the capacity to serve, be humble, and appreciate all that comes [email protected] his way. 8208 NW 64th St. Miami, Fl 33166 • 305-592-7858 photo 105 October/November lab 2013 TFWA/FDFA Issue INSIDER

Formula 1 world champion joins Braun as global ambassador

Braun has teamed up with triple delighted to have Sebastian as our new Formula 1 world champion Sebastian ambassador. He is an impressive man who Vettel as the new global ambassador for has achieved his dream through hard work, Braun’s male power grooming range. The preparation, perseverance and the ultimate announcement was made this summer at the performance. He is a leader in his sports. Formula 1 Circuit of Spa-Francorchamps, Like Max Braun, our founder, Sebastian where Sebastian Vettel said: “I grew up with has relentlessly pursued his dream. He is an the Braun brand [and] I have always been inspiration to millions of men and the ideal amazed by how much technology goes into person to represent Braun.” Braun shavers. It’s just like in Formula 1, Sebastian will be the face of the new the latest technology, the finest design and Braun shaver campaign “Hold on to your guaranteed durability. They simply do what Dreams” starting this autumn. you expect from them. I’m proud to be the In Cannes Braun is featuring its ambassador for Braun male grooming.” °CoolTec shavers, Silk-épil 7 SkinSpa, and Braun’s Global Marketing Direc- the Satin Hair 7 SensoCare styler. tor, Lakis Vasileiadis, says “We are truly With its °CoolTec shaver Braun has developed a shaver that addresses shaving irritation right away during the shave. The secret element in the °CoolTec shavers is Silk-épil 7 SkinSpa combines two Braun’s innovative Thermo-Electric-Cool- state of the art beauty treatments. Braun’s ing technology (TEC). CoolTec features a epilator removes unwanted hair while the cutting-edge aluminium cooling bar in the exfoliation brush removes dead skin cells. shaver head that actively cools down the With the Satin Hair 7 SensoCare skin during the shaving process and directs styler, Built-in sensors read the hair 20x heat away from the skin. °CoolTec recently per second to detect the moisture levels of won the 2013 reddot product design award, every strand and automatically adapt to the arguably the most prestigious industrial ideal temperature for smooth, longer-lasting design award in the world. styles.

TAG Heuer celebrates 50th anniversary of its iconic Carrera watch series with special events throughout the Americas It has been a very busy month for TAG racing spirit, while the inside reflected the the story of the birth of this flagship series Heuer in the Americas. The Swiss luxury modern 60’s design that set the theme for and its inspiration, the legendary Carrera watch brand celebrated the 50th anniversary the celebration of the history of the Carrera Panamericana race of Mexico. On display of its iconic Carrera watch series with spe- series. and to the great delight of all the guests was cial events throughout the region, including The Rally del Chaco is one of Para- the Lancia D24, the car Juan Manuel Fangio combining it with the opening of the brand’s guay’s most important sports events where won this race with in 1963. first TAG Heuer Boutique in Peru. even the rain could not deter the attendance With the presence of important mo- On Sept. 27, TAG Heuer and retail of nearly 20,000 people who came to enjoy torsports figures such as Facundo Regalia, partner G&G Joyeros welcomed 1000 the all-day rally experience. Esteban Guerrieri, Franco Nestor Girolami, guests to a spectacular venue design that In Argentina on Oct. 2, with an event at Mauro Giallombardo, Juan de Benedictis honored the opening of the boutique in Peru the Faena Arts Center, TAG Heuer, and its and Gaston Mazzacane, TAG Heuer evoked along with a Vintage Cars Exhibition (Ford Argentine distributor DARSSA, celebrated the golden age of motor sports. Guests also GT, Cobra Shelby, Porsche Carrera and the 50th anniversary of the Carrera series shared the evening with Sergio Lapegüe Audi 100) incorporated in a tunnel of time, with a special cocktail event where guests and Antonio Mandiola, Juan Manuel Fan- as guests passed though each era of the had the unique opportunity to experience gio’s Foundation President. iconic TAG Heuer Carrera’s history. Just a week earlier, on Sept. 22, TAG Heuer and retail partner Della Poletti celebrated the 50 years of the iconic TAG Heuer Carrera series at Paraguay’s Rally TAG Heuer opened its first boutique in del Chaco car race event attended by nearly Peru at the end of September. 20,000 people. The TAG Heuer and Della Poletti tent was centrally located next to the racing paddocks in the VIP area. The outside of the tent was decorated in full

TFWA/FDFA Issue October/November 2013 106 Puts skin irritation on ice. st World’s 1 shaver with active cooling technology.

107 October/November 2013 TFWA/FDFA Issue Braun GmbH, Dept. IAM-DF, Frankfurter Straße 145, D-61476 Kronberg, Germany, Tel.: +49 6173 30 2221, E-mail: [email protected], www.braun.com/global INSIDER

CTI brings top European brands to Americas TR channel

Duty free/duty paid specialist CTI technical advancements. developed in Switzerland, patented inter- International, which brought the globally CTI is most excited about the athletics- nationally and comply with all the relevant recognized Sharper Image and Brookstone oriented Sennheiser Adidas Sports Line inter-national safety regulations, and have brands to duty free, has now introduced two Headphones. Sweat and water-resistant, the won many top international awards. of Europe’s top electronics brands to the product range includes four models of rug- Other new additions to the CTI portfo- travel retail channel in the Americas. ged headphones designed to accommodate lio include gift products and office accesso- CTI is now featuring German audio the needs of all athletes, says Muller. ries from Troika and sunglasses and readers brand Sennheiser, one of the leading “CTI is now expanding its portfolio from B+D (Buch + Deichmann). producers of headphones and microphones with more exclusive brands and products For more information, please contact in the world, as well as travel adapters and not commonly found in the local market. Rodolfo Muller, rmuller@ctiinternation- USB chargers from market-leading Swiss We are also devoting special attention to algroup.com or Victor Garcia, victor@ company SKROSS. merchandising options,” he adds. ctiintrnationalgroup.com. “CTI introduced both brands to the For SKROSS, the leading manufactur- industry in the Americas at the Duty Free er of travel adapters and chargers now sold Show of the Americas in Orlando in April,” in more than 150 countries, CTI has devel- reports Rodolfo Muller, CTI Sales Man- oped a selection of gondolas and display ager Travel Retail Worldwide and Product units, under the new slogan Simple-Safe- Development Advisor. Swiss, that are demonstrating significant “We are focusing on both North increases at the point of sales. and South America with these brands. “We have been experimenting with Sennheiser is already listed in Argentina offering a range of travel adapter/charging and Uruguay with personalized space and solutions instead of offering only one-two we are finalizing orders with some other models and have seen sales increase geo- major players at this time,” he adds. metrically,” explains Muller. Sennheiser, a leading global brand, Display units range from hanging wall began building microphones in 1946 and to counter units, attractive open plexi glass released the world’s first open microphones and metal displays, and two- and four-sided in 1968, a revolutionary development in floor units. the field. The company introduced wireless SKROSS invented and patented in microphones in the 1980s and has since 2002 the world’s first single-piece World won numerous awards – including an Oscar Adapter with its all-in-one country-slider from the Motion Picture Academy and an system. The patented, globally certified, Emmy from the television industry – for its award-winning originals from SKROSS are TRDG unveils range of must-have electronics Travel Retail Distribution Group, Inc. for use in Europe. throughout the United States, the United (TRDG), a leading specialist in travel-relat- TRDG’s Armand Ventura is also very Kingdom and Hong Kong. Its distribution ed accessories for notebook computer, PDA excited about the latest addition to the com- facilities stretch from the United States and and cellular phone users, adds yet another pany’s proprietary POGO line of chargers, Canada to Europe, South America and the must-have electronics device to its broad adapters and converters: a credit-card-sized Middle East. portfolio of products for the traveler. Portable Power Card Smart Phone Charger TRDG also has exclusive worldwide TRDG has just been appointed the w/Lighting Adapter small enough to fit in distribution rights to several major brands worldwide travel retail distributor for Trak- a wallet. The power bank for most smart and develops its own suite of products. It dot Luggage, a device that uses advanced phones, it features a built-in output, is all- offers a full line of accessories for every location technology to keep track of your in-one and ready to go, and includes Micro major notebook computer, PDA and cellular luggage when you travel. It works anywhere to Lighting Adapter to work with iPhone 5, phone, as well as a full line of travel clocks, cellular phones work and can be linked iPad Mini and iPad. games and audio solutions. The company to multiple phones. Designed to provide TRDG also reports tremendous re- also provides a wide array of free-standing Airport specific location information for sponse to the line of Polar travel and health and wall display options. TRDG’s POGO your checked luggage, the service entails a monitoring electronics, unveiled in Orlando and logoed products are sold in Airline one-time activation fee of $8.99 and annual in April. carts, Hotel Gift Shops, On-board Cruise network fee of $12.99, plus the cost of the TRDG, with over thirteen years’ ex- Ship Gift Shops, Duty Free Stores, Airport device. perience and more than 2,000 business and Gift News Stand and Highway Gift Shops. It employs newly patented mico-elec- retail customers worldwide, supplies OEM tronics and ground-based cellular telephone accessories and solutions to leading national technologies to track and report its position and multinational companies. on the ground even while inside metal Started in 1992 as International Mar- containers, such as cars, hardened suitcases, keting, TRDG has grown into a successful and parked aircraft. It is FCC approved and global distribution and marketing enter- approved by Conformité Européenne (CE) prise. Based in Florida, TRDG has offices

TFWA/FDFA Issue October/November 2013 108 Come see us in C annes 109• Y ellow October/November Village F572013 TFWA/FDFA Issue INSIDER

Buckley Jewellery launches Pop Up Shop in Heathrow Airport Buckley Jewellery Limited has ing screen printed crystals on glass, with Sam McDermid, Brand Director for launched a unique pop up shop in Heathrow the ambiance enhanced by the attractive BOUTON said, “We wanted to connect Terminal 1 in October, which Americas complementary gift box options on show. with our consumers and create a fun, social representative Katherine Patch-Sleipnes, of The pop up shop also features a unique buying experience that goes beyond just the International Brand Builders, is looking to interactive photo-call area with an ornate till point. The photo booth will be a way for repeat in key American locations. frame suspended from the ceiling where customers to linger in a bejeweled environ- The Buckley pop up shop features the the customers can choose from a variety of ment and connect with the brand through company’s three brands: Buckley London “fashionable” props and jewelry to try on. social media.” and Attwood and Sawyer, both fashion cos- They will then have the option to get their tume jewelry brands and BOUTON jewelry, photo taken where it will be uploaded onto Buckley London launches Rose Gold the latest brand to the successful portfolio, the relevant brands social channels, includ- Collections at Cannes featuring sterling silver with 18 carat gold, ing Facebook and Twitter. This will be a fun Building on its best-selling and award rose gold, rhodium or black rhodium plating way that customers can try on the jewelry winning Russian Trio and I Love You and featuring hand set simulated stones. and show off their new purchases to friends bracelet designs, Buckley London will be The luxurious pop up shop layout will and family. Weekly prizes for the best photo extending the collection with a selection of feature crystal accents throughout, includ- will also be offered. new rose gold styles which will be unveiled at TFWA in Cannes. The new collections incorporate rose gold plating with Buckley London’s signature micropavé detailing, us- ing Austrian and high quality cubic zirconia crystals. The Rose Gold Elegant Twist collection incorporates a rhodium plated detail throughout, and the modern inspired Sleek Sparkle Stacker collection incor- porates Buckley London’s signature pavé crystals with rhodium plated charms. The Rose Gold Bezel collection offers a chunky bracelet with white crystals tightly knit together to form sparkling bezel accents. A complementary styled necklace and earrings complete the collection. The award-winning Buckley London is now sold worldwide and listed on more than 135 airlines inflight and at over 600 Travalo to unveil the new Pearl at TFWA Cannes retail locations including 75 international airports around the globe. The new Travalo Pearl highlights Swarovski Edition and Skyline, Swarovski micro-engineering and elegant simplic- Edition. ity, says the company. In a departure from The Pearl carries over 70 sprays of Misaki’s Pearlity its superlight travel atomizer models to fragrance and can be refilled time and time Collection celebrates date, the Pearl is a more substantial model again, is available in three colors and, like with an innovative new spray system that all Travalo fragrance sprays, the Pearl is ap- pearls as treasures of requires no cap and can be used easily with proved to carry on board air flights. one hand. Visit the Travalo team at Yellow Vil- nature The Pearl feels luxurious to hold and is lage, Stand D37 at TFWA World Exhibition Misaki reveals the Pearlity collection pitched at a higher price point (£29.99, $50, or contact [email protected]. of jewelry in Cannes, which it says was in- Euro 34.99) making it the ideal unisex gift. spired by a “return to essentials” approach, The Pearl, with its patented Genie-S refill where pearls are celebrated as treasures of system, also offers Travel Retail channels nature. The collection showcases Misaki’s an entirely different model, price point and expertise as a pearl jewelry brand, hand sales proposition than in the past. picking the most beautiful pearls to inte- First launched in 2009, Travalo has grate into its creations: Freshwater Cultured won numerous prestigious beauty and pearls, Tahiti pearls, South Sea pearls, design awards including: a Cosmopolitan Mother of Pearl and Misaki’s technologi- Beauty Award, Elle Beauty IT List (for cally advanced Handmade X-Treme Lustre Best New Innovation in 2012) and Style pearls. Best Beauty Buy in 2012. The Pearl takes About thirty themes comprise the col- pride of place in the Travalo portfolio at lection, which combines skilled craftsman- TFWA Cannes this year alongside the ship with a distinct sense of innovative and Excel, Touch, Skyline, Touch Rollerball, luxurious design. Misaki is exhibiting at Stand E26, Yellow Village.

TFWA/FDFA Issue October/November 2013 110 Advertiser’s Index

Alex and Ani 73 Grey Goose Vodka 21 Perry Ellis Fragrances 67 American Whiskey Collection 79 Horizon Premium Brands 103 Polo Red 4-5 Attenza Duty Free 39 IAADFS 2014 33 Premier Global Trading 112 Botran Rum 83 International Duty Free 77 Prowood Wine and Spirits 91 Braun 107 Jack Daniel’s 23 Remy Cointreau TR 10 Burberry 69 JTI - Camel 25 Roger and Gallet 59 Courvoisier 19 La Fée 89 Screaming Color 105 DANZKA Vodka 29 Lancôme IFC-3 Shopping China 41 Demeter Fragrance Library 71-72 La Riviera 11 Southern Comfort 81 Dooley’s 92-93 Las Delicias Duty Free 47 TAG Heuer 15 Dufry Americas 49 London Supply 43 Tairo International 55 Duty Free Americas 27 L’Oréal Paris 57 TFWA 17 Estee Lauder Breast Cancer Awareness 61, 63 Mercedes Benz Fragrance 31 Travel Retail Distribution Group 109 FDFA 111 Monalisa Group 45 Versace 13 FLO 104 Mondelez 97 worldclassbrands 75 flyinstyle 101 Patrón Tequila Cover YSL 6-7 Furla IBC Perfetti Van Melle 159 Glenfiddich Cask Collection 8-9

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111 October/November 2013 TFWA/FDFA Issue INSIDER

PEOPLE NEWS McShane will serve as managing director, USA. He is succeeded by Brandon Orlane S.A.’s most charming Christine ANZSEA, based in Sydney, and Trevor Bayock, co-founder of Faros Infrastructure Mazy officially steps down from her Smith as managing director, NA, based in Partners, a private investment firm based position as Export Manager Western Hong Kong. “The Asia Pacific area remains in London and Darien, Ct. His background Hemisphere at the Paris company to start key to Brown-Forman’s long-term growth includes development, engineering, her retirement the week before Cannes. strategy,” said Mark McCallum, executive banking, investments, company operations On behalf of the travel retail industry vice president, Europe/Africa/Asia Pacific/ and fund management in a broad throughout the Americas, we wish her Travel Retail, Brown-Forman Corporation. range of sectors, including oil and gas, much enjoyment in her new life. She can “These changes are being made to further transportation and energy. be reached at [email protected] strengthen our organizational focus and allocation of resources against our strategic Aviation specialist Randall H. Walker, Marshall Farrer, current managing priorities in this vast region.” who formerly led Las Vegas McCarran director of Brown-Forman Australia, International Airport as director of the New Zealand, will return to the company’s Airports Council International (ACI) has Clark County Dept. of Aviation before his Louisville, KY headquarters later this year appointed Martine Ohayon as Director retirement in June, has joined Hudson after four successful years at the helm of Communications and Events, based at Group’s Advisory Board of Directors. the company’s second largest market as ACI World in Montreal, Canada. She joins measured by net sales. Farrer’s relocation ACI after 18 years at the International Diana Herrera has acquired South was announced on Oct. 10 along with the Air Transport Association (IATA). She Florida imaging firm Associated Photo news of a restructuring of Brown-Forman’s succeeds Cheryl Marcell, who left ACI & Imaging – AP Imaging – from former Asia Pacific (APAC) region into two new in June to become Deputy Director for owner Larry Apple, who retired on July regions, effective November 1, 2013. Business Development at Norman Y. 1. Herrera had been vice president of The existing Asia Pacific region will be Mineta San Jose International Airport. the company for the last 10 years. The restructured into the Australia, New Zealand, company is an important partner of many and Southeast Asia region (ANZSEA) After 21 years, Mark Knight has stepped luxury brands in the region for their travel and the North Asia region (NA). Michael down as President and CEO of AIRMALL retail advertising needs.

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TFWA/FDFA Issue October/November 2013 112 113 October/November 2013 TFWA/FDFA Issue INSIDER

PEOPLE NEWS

Alain Bonardo, one of the pioneers of Marco Lares was recruited by Italian- retail excellence across ARI’s operations the Duty Free industry, will be retiring at French fragrance company Perfume worldwide. ARI’s business units in North the end of December 2013, when Bonardo Holding as Director of Sales for the America and in China will also report Travel Retail will officially cease activity as Americas, effective immediately. Lares directly to him. Agent for Duty Free confectionery suppliers has been representing luxury fashion Frey and Villars; both companies-- Chocolat brands for the past 15 years, the last The Hershey Company’s World Travel Frey SA and Villars Maître Chocolatier 5+ as International Sales/Travel Retail Retail business has appointed Amy Wilson --will be handling their duty free activities Manager for Marcolin Eyewear, where to the position of Category Strategist. internally as of Jan. 1, 2014. he represented luxury fashion names Tom Wilson will be responsible for fueling Former Nestle executive Clive de la Roche, Ford, Montblanc, Swarovski, Diesel, confectionery category growth through who has represented the Frey and Villars Ferrari and Roberto Cavalli, among other insights and collaboration with retail brands for Bonardo in the Americas, has collections. Lares will be leading Perfume partners on total confection category confirmed to TMI that he also will be Holding’s sales efforts and operations, solutions in all duty free channels across all retiring at the end of the this year. focusing on local markets in North regions, says the company. America, Latin America/ Caribbean and Gita Sekhri has joined Marcolin USA in Travel Retail. Pamela Gill Alabaster has joined The the position of area sales manager, Latin Estée Lauder Companies Inc. to lead its America & Travel Retail. Sekhri brings Aer Rianta International (ARI) has global Corporate Responsibility function. extensive experience as former commercial promoted Gerry Crawford to the position Alabaster joins ELC from L’Oréal USA, director for Bentrani Dominican Republic of Director, Retail Operations. where she held various senior leadership and regional sales manager for Swatch In this new role, reporting to ARI Chief marketing and management roles, most Group. She will be based out of Marcolin’s Executive Jack MacGowan, Crawford recently serving as Senior Vice President Miami offices. will have responsibility for delivering Corporate Communications, Sustainable enhanced and more consistent standards of Development & Public Affairs.

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